Document:

Exhibit 10.4

 

mEMbership
Interest Purchase Agreement 

 

This Membership Interest
Purchase Agreement (this “Agreement”) is entered into as of January 17, 2018 (the “Effective Date”),
by and among Mobile Science Technologies, Inc., a Georgia corporation (“Buyer”), Meridian Waste Solutions, Inc., a
New York corporation (“Parent”); Jefferson Patrick Locke (“Locke”) and Jonathan Moore Lewis (“Lewis”)
(collectively the “Sellers” and each individually sometimes a “Seller”).  Buyer and the Sellers
are referred to collectively herein as the “Parties” and each a “Party”.

 

BACKGROUND FACTS

 

Locke and Lewis own
all legal and beneficial right, title and interest in and to all of the membership interests in Red X Medical LLC, a Georgia limited
liability company (“Company”).

 

The Company owns and
operates a medical waste disposal business (the “Business”).

 

Buyer desires to purchase
and acquire from Sellers all of the issued and outstanding membership interests of the Company, and Sellers desire to sell all
of the issued and outstanding membership interests of the Company to Buyer, all in accordance with the terms and conditions set
forth in this Agreement.

 

Parent as the sole
shareholder of Buyer will be materially benefitted from Sellers’ performance of their obligations hereunder, and as such
has agreed to be bound by certain terms of this Agreement.

 

RECITAL OF CONSIDERATION

 

Now, therefore, in
consideration of the premises and the mutual covenants and agreements contained herein, the receipt and sufficiency of which is
hereby acknowledged, the Parties, intending to be legally bound, agree as follows:

 

Section
1

DEFINITIONS AND USAGE

 

1.1 Definitions. 
For purposes of this Agreement, except as otherwise expressly provided herein or unless the context otherwise requires, initially
capitalized terms used in this Agreement have the meanings set forth in Schedule 1.1.

 

1.2 Interpretation
and Usage.  In this Agreement, unless a clear contrary intention appears: (a) the singular number includes the plural
number and vice versa; (b) reference to any Person includes such Person’s successors and assigns but, if applicable, only
if such successors and assigns are not prohibited by this Agreement, and reference to a Person in a particular capacity excludes
such Person in any other capacity or individually; (c) reference to any gender includes the other gender and the neutral, as applicable;
(d) reference to any agreement, document or instrument means such agreement, document or instrument as amended or modified and
in effect from time to time in accordance with the terms thereof; (e) reference to any Legal Requirement means such Legal Requirement
as amended, modified, codified, replaced or reenacted, in whole or in part, and in effect from time to time, including rules and
regulations promulgated thereunder, and reference to any section or other provision of any Legal Requirement means that provision
of such Legal Requirement from time to time in effect and constituting the substantive amendment, modification, codification, replacement
or reenactment of such section or other provision; (f) “hereunder,” “hereof,” “hereto,” and
words of similar import will be deemed references to this Agreement as a whole and not to any particular Section or other provision
hereof or any Exhibit or Schedule attached hereto; (g) “including” (and with correlative meaning “include”
and “includes”) means including, without limiting the generality of any description preceding such term, and will be
deemed to be followed by the words “without limitation”; (h) Section headings are provided for convenience of reference
only and will not affect the construction or interpretation of any provision hereof; (i) any references to “Section”,
“Schedule” or “Exhibit” followed by a number or letter or combination of the two refers to the corresponding
Section, Schedule or Exhibit of or to this Agreement; (j) with respect to the determination of any period of time, “from”
means “from and including” and “to” means “to but excluding”; and (k) references to documents,
instruments or agreements will be deemed to refer as well to all addenda, exhibits, schedules or amendments thereto.

 

    	 	-1-	 

     

    

 

1.3 Legal
Representation of the Parties.  This Agreement was negotiated by the Parties with the benefit of legal representation,
and any rule of construction or interpretation otherwise requiring this Agreement to be construed or interpreted against any Party
will not apply to any construction or interpretation hereof.

 

1.4 Incorporation
by Reference.  The Parties agree that the Background Facts set forth above are true and correct and are hereby incorporated
herein by this reference.

 

Section
2

PURCHASE OF THE MEMBERSHIP INTERESTS FROM THE SELLERS

 

2.1 Purchase
and Sale of Membership Interests. On and subject to the terms and conditions of this Agreement, Buyer agrees to purchase from
Sellers, and Sellers agree to sell to Buyer, all of the membership interests in the Company (the “Membership Interests”),
free and clear of all Liens, for the consideration specified in Section 2.2.

 

2.2 Purchase
Price (“Purchase Price”).

 

		A.	Tranche I. For and in consideration of the sale,
assignment, transfer and conveyance of the Membership Interests by Sellers, on the sixtieth (60th) day after Closing,
Buyer shall reimburse Richie Stephens for all documented direct operating costs of the Company as well as all costs incurred by
the Company in obtaining any Permit to allow the Company to operate a medical waste disposal facility on the Real Property (as
hereinafter defined) described in the Real Estate Purchase Contract (as hereinafter defined), such reimbursement not exceed the
sum of Seventy Five Thousand and no/100ths Dollars ($75,000.00);

 

		B.	Tranche II. For and in consideration of the sale, assignment, transfer and conveyance of
the Membership Interests by Sellers, so long as the Post Closing Contingencies set forth in Section 5.3 hereof have been satisfied
by the Contingency Deadline (as defined in Section 5.3), and subject to the provisions of Section 7.7 hereof, then within thirty
(30) days of the fulfillment of the Tranche II Post Closing Contingencies, (a) Parent will issue to the Sellers One Hundred
Thousand (100,000) shares of Parent’s restricted common stock, par value $0.025 per share (the “Initial Purchase Price
Shares”) and (b) Buyer will pay to the Sellers in cash the sum of Two Hundred Thousand and no/100ths Dollars ($200,000.00)
via wire transfer. The funds and shares to be paid pursuant to this subparagraph, if any, shall be distributed among Sellers as
set forth on Schedule 2.2.

 

    	 	-2-	 

     

    

 

		C.	Tranche III. For and in consideration of the
sale, assignment, transfer and conveyance of the Membership Interests by Sellers, so long as the Remaining Post Closing Contingencies
set forth in Section 5.3 hereof have been satisfied by the Contingency Deadline (as defined in Section 5.3), and subject to the
provisions of Section 7.7 hereof, then on March 1st of 2020, 2021 and 2022, the Buyer shall pay a cash bonus (the “Cash
Bonus”) to Sellers equal twenty five percent (25%) of the positive combined earnings before interest, taxes and depreciation,
excluding Accounts Receivables and capital expenditures as determined by the Company’s accountants (the “Positive
CA EBITDA”) of the Company as determined by the Company’s for the immediately preceding calendar year. Each date on
which any Cash Bonus is to be paid shall be hereinafter referred to as a “Cash Bonus Payment Date”. The Cash Bonus
shall be distributed among Sellers as set forth on Schedule 2.2.

 

		D.	Tranche IV. For and in consideration of the sale, assignment, transfer and conveyance of
the Membership Interests by Sellers, so long as the Remaining Post Closing Contingencies set forth in Section 5.3 hereof have been
satisfied by the Contingency Deadline (as defined in Section 5.3), and subject to the provisions of Section 7.7 hereof, then on
or before April 1, 2020, Parent shall issue to Sellers, shares of Parent’s restricted common stock (the “Tranche IV
Shares”) with a value (the “Tranche IV Share Value”) equal to the product of five multiplied by the result of
the following computation: the Combined Entities Positive CA EBITDA for calendar year 2019, if any, (x) plus the amount by which
the earnings before interest, taxes and depreciation, excluding Accounts Receivables and capital expenditures, as determined by
the Company’s accountants (“CA EBITDA”), of the Combined Entities for calendar year 2018 exceeds ($454,000.00)
OR (y) less the amount by which the Combined Entities’ CA EBITDA for calendar year 2018 is less than ($454,000.00), whichever
is applicable, AND, (z) less the Cash Bonus, if any, to be paid on March 1, 2020. Notwithstanding anything to the contrary contained
in this Section 2.2D, no Tranche IV Shares shall be issued pursuant to this Section 2.2D unless the Company shall have a Positive
CA EBITDA for the 2019 calendar year. The Tranche IV Shares shall be distributed among Sellers as set forth on Schedule 2.2.

 

The number
of Tranche IV Shares to be issued as set forth herein shall be calculated by dividing the Tranche IV Share Value by the VWAP of
the Parent’s restricted common stock as of the last Trading Day prior April 1, 2020. “VWAP” means, for a particular
date, the volume-weighted average price of the Common Stock on the principal market on which the common stock is traded (the “Principal
Market”) for a particular Trading Day as reported by Bloomberg. “Trading Day” means any day during which the
Principal Market shall be open for business.

 

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		E.	Tranche V. For and in consideration of the sale, assignment, transfer and conveyance of
the Membership Interests by Sellers, so long as the Remaining Post Closing Contingencies set forth in Section 5.3 hereof have been
satisfied by the Contingency Deadline (as defined in Section 5.3), and subject to the provisions of Section 7.7 hereof, then, on
April 1st of 2021, 2022, 2023 and 2024 (each an “Anniversary Earnout Payment Date”), Parent shall issue
to Sellers shares of the Parent’s restricted common stock (the “Tranche V Shares”) based upon a value (the “Tranche
V Share Value(s)”) equal to product of the Applicable Year Multiplier (as hereinafter defined) multiplied by the positive
difference between the Positive CA EBITDA of the Combined Entities for the immediately preceding calendar year, if any, less (y)
the applicable Cash Bonus, if any, paid on the immediately preceding Cash Bonus Payment Date and (z) less the CA EBITDA of the
Combined Entities for the calendar year immediately preceding such immediately preceding calendar year. The “Applicable Year
Multiplier” to be used in calculating the Tranche V Share Values shall be 4 for the1st Anniversary Earnout Payment Date (April
1, 2021), 3 for the 2nd Anniversary Earnout Payment Date (April 1, 2022), 2 for the 3rd Anniversary Earnout
Payment Date (April 1, 2023), and 1 for the fourth Anniversary Earnout Payment Date (April 1, 2024). Notwithstanding anything to
the contrary contained in this Section 2.2E, no Tranche V Shares shall be issued on any Anniversary Earnout Payment Date unless
the Combined Entities shall have had a Positive CA EBITDA for the calendar year immediately preceding such Anniversary Earnout
Payment Date. The Tranche V Shares, if issued, shall be distributed among Sellers as set forth on Schedule 2.2.

 

The number
of Tranche V Shares to be issued as set forth herein shall be calculated by dividing the Tranche V Share Value for the applicable
Anniversary Earnout Payment Date by the VWAP of the Parent’s restricted common stock as of the last Trading Day prior to
the applicable Anniversary Earnout Payment Date. “VWAP” means, for a particular date, the volume-weighted average price
of the Common Stock on the principal market on which the common stock is traded (the “Principal Market”) for a particular
Trading Day as reported by Bloomberg. “Trading Day” means any day during which the Principal Market shall be open for
business.

 

		F.	Tranche VI. For and in consideration of the sale, assignment, transfer and conveyance of the Membership
Interests by Sellers, so long as the Remaining Post Closing Contingencies set forth in Section 5.3 hereof have been satisfied by
the Contingency Deadline (as defined in Section 5.3), and subject to the provisions of Section 7.7 hereof, then, upon the Company’s
closing (each such closing to be referred to as a “Large Entity Closing”) of any acquisition on or before December
31, 2022 of any third party entity (“Large Acquired Entity”) which is then engaged primarily in a business directly
competitive with the Business for a purchase price which includes the Parent’s issuance of more than Twenty Five Thousand
(25,000) shares of the Parent’s restricted common stock, then:

 

(i) On the
sixtieth day after any such Large Entity Closing, (a) Buyer shall pay to Sellers, in cash, an amount equal to two percent (2.0%)
of the portion of the Net Large Entity Purchase Price paid in cash at the Large Entity Closing by Buyer; and, (b) Parent shall
issue to Sellers an amount of shares of Parent’s restricted common stock equal to two percent (2.0%) of the shares of Parent’s
restricted common stock issued to the sellers of such Large Acquired Entity at the Large Entity Closing; and

 

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 (ii) Commencing April 1, 2019, and continuing on the 1st day of April for each consecutive year, through and including April 1, 2023 (each such date to be referred to as a Tranche VI Payment Date, Parent shall issue to Sellers shares of the Parent’s restricted common stock (the “Tranche VI” Shares”) based upon a value (the “Tranche VI Share Value(s)”) equal to two percent (2.0%) of such Large Acquired Entity’s Positive CA EBITDA for any immediately preceding calendar year, or portion of such immediately preceding calendar, year during which such Large Acquired Entity was owned by Buyer.

 

The Tranche
VI Shares, if issued, shall be distributed among Sellers as set forth on Schedule 2.2.

 

The number
of Tranche VI Shares to be issued as set forth herein shall be calculated by dividing the Tranche VI Share Value for the applicable
Tranche VI Payment Date by the VWAP of the Parent’s restricted common stock as of the last Trading Day prior to the applicable
Tranche VI Payment Date. “VWAP” means, for a particular date, the volume-weighted average price of the Common Stock
on the principal market on which the common stock is traded (the “Principal Market”) for a particular Trading Day as
reported by Bloomberg. “Trading Day” means any day during which the Principal Market shall be open for business.

  

2.3 Closing
Date. Unless Buyer and Sellers otherwise agree, the purchase and sale of the Membership Interests will take place by facsimile
transmission or by electronic mail in PDF format of all required documents (with the original executed documents to be delivered
by overnight courier) to the offices of Richard J. Dreger, located at 11660 Alpharetta Highway, Building 700, Suite 730, Roswell,
Georgia 30076, and will occur within at least five Business Days after satisfaction of the required conditions as set forth in
this Agreement (“Closing Date” or “Closing”).  At Closing, all of Sellers’ right,
title and interest in and to the Membership Interests and in any such right, title or interest that Sellers may have or had with
respect to the Business will be transferred and conveyed to Buyer free and clear of all Liens.

 

2.4 Payment
of Current Sellers Liabilities; Retained Liabilities.

 

(a) Schedule
2.4 (to be updated immediately prior to Closing) lists, in each case to the extent applicable: (i) the amount of the
aggregate Indebtedness of the Company outstanding on the Closing Date; (ii) the aggregate amount of all undischarged judgments
against the Company; (iii) the aggregate amount of all obligations secured by Tax liens against the Company, (iv) the total
of the aggregate mortgage debt secured by, and the judgment liens encumbering, and the federal Tax liens filed against, any of
the Assets, including the Properties, (v) the amount of any and all Liabilities or obligations of the Company pursuant to any employment
Contract, severance agreement or Contract, any bonus program or plan, all Employee Benefit Plans and all other employee benefit
plans and other employee benefits, and any  Liability relating to payroll, vacation, sick leave, workers' compensation, unemployment
benefits, pension benefits, employee stock option or profit-sharing plans, health care plans or benefits or any other employee
plans or benefits of any kind for the current or former employees of the Company; (vi) any Liability arising out of or relating
to services performed by the Company in connection with the Business before the Closing Date; (vii) any Liability under the Company
Contract that arises after the Closing Date out of or relating to any Breach or other action that occurred before the Closing Date;
(viii) any Liability under any Excluded Contract; (ix) any Liability for Taxes including (A) any Taxes relating to or arising
as a result of the operation of the Business prior to the Closing Date, (B) any Taxes that will arise as a result of the sale
of the Membership Interests pursuant to this Agreement and (C) any deferred Taxes of any nature; (x) any Environmental, Health
and Safety Liability arising out of or relating to the operation of the Business and the operation and occupation of the Properties
or the leasing, ownership or operation of any Asset; (xi) (A) any Liability under any employment, severance, retention or termination
agreement with any employee of the Company, (B) any Liability arising out of or relating to any employee grievance whether or not
the affected employees are hired by Buyer; and (C) any Liability to indemnify, reimburse or advance amounts to any officer, director,
member, manager, employee or agent of the Company; (xii) any Liability arising out of any Proceeding or Current Litigation with
respect to the Company, the Business or the Assets, (xiii) any Liability arising out of or resulting from either Seller’s
or the Company’s compliance or noncompliance with any Legal Requirement or Order of any Governmental Body; (xiv) any Liability
of Sellers under this Agreement or any other document executed in connection with the Contemplated Transactions; (xv) any known
accrued Liability of the Company based upon such Seller's acts or omissions, or the Company’s acts or omissions occurring
prior to the Closing Date; (subsections (i)-(xvi), collectively “Current Sellers Liabilities” and each a “Current
Seller Liability”). 

 

    	 	-5-	 

     

    

 

(b) At
Closing, Sellers will pay all Current Seller Liabilities not previously discharged by such Seller.  At Closing, Sellers will
promptly obtain a release and discharge of all Indebtedness and all Current Seller Liabilities and will file all applicable lien
discharges and releases from such creditors and deliver copies of such filings to Buyer, except for the liens created by the bank
loans set forth in Section 2.4, which will continue to be liabilities of the Company.  In addition, at Closing Sellers
shall also pay: (i) all Indebtedness and Liabilities of every kind or nature of the Company as of the Closing; (ii) all Liabilities,
costs, fees and expenses associated with, resulting from or associated with any Proceeding or other litigation matter of the Company
pending as of the Closing; and (iii) all Indebtedness and Liabilities of every kind or nature of the Company as of the Closing,
not disclosed on Schedule 2.4 (collectively, subsections (i) – (iv) and the Current Seller Liabilities, the
“Retained Liabilities”). All Retained Liabilities not paid at Closing shall remain the exclusive responsibility
of Sellers and will be assigned to, retained, paid, performed and discharged exclusively by Sellers and will not be retained by
the Company nor assumed or acquired by, or conveyed or transferred to, Buyer or any Related Person of Buyer.  Sellers shall
at all times indemnify, defend and hold Buyer and any Related Person of Buyer and the Company harmless from and against any claim
or liability arising from the Retained Liabilities and Current Seller Liabilities.

 

2.5 Closing
Obligations.

 

(a) Deliveries
by Sellers.  At the Closing, Sellers will deliver to Buyer: (i) the various certificates, instruments, and documents referred
to in Section 6.1; and (ii) certificates representing all of the issued and outstanding Membership Interests of the Company,
endorsed in blank or duly executed assignment documents in form and substance approved by Buyer.

 

(b) Deliveries
by Buyer.  At the Closing, Buyer will deliver to Sellers: (i) the various certificates, instruments, and documents referred
to in Section 6.2; and (ii) the applicable consideration specified in Section 2.2.

 

    	 	-6-	 

     

    

 

2.6 Intentionally
Omitted.

 

2.7 Closing
Costs; Expenses. 

 

(a) Sellers
agree to pay all documentary stamp tax or other transfer taxes relating to the transfer of the Membership Interests to Buyer. Sellers
shall be solely responsible for all State or Federal income Taxes or similar Taxes imposed on Sellers as a result of the Contemplated
Transactions. Sellers acknowledge and agree that neither the Buyer nor the Company shall have a duty or obligation to pay any Taxes
attributable to Sellers as a result of the purchase and sale of the Membership Interests.

 

(b) Each
Party shall be solely responsible for any legal or accounting fees, brokerage or finders’ fees or agents’ commissions
or other similar payments incurred by or agreed to by such Party in connection with the execution and delivery of this Agreement
or the completion of the Contemplated Transactions.

 

Section
3

REPRESENTATIONS AND WARRANTIES CONCERNING

PURCHASE AND SALE OF THE MEMBERSHIP INTERESTS OF THE COMPANY

 

3.1 Representations
and Warranties of Sellers.  In order to induce Buyer to enter into this Agreement and consummate the Contemplated Transactions,
each Seller represents and warrants to Buyer as follows (except otherwise disclosed on the Schedules) as follows with respect to
such Seller:

 

(a) Authorization
of Transaction.  Such Seller has all right, power and capacity to execute and deliver this Agreement, and all other agreements,
documents and written instruments to be executed by such Seller in connection with the Contemplated Transactions, and to perform
his obligations under this Agreement and all such other agreements, documents and written instruments.

 

(b) No
Conflict with Restrictions; No Default.  To Sellers’ Knowledge, neither the execution, delivery, and performance
of this Agreement nor such Seller’s performance of and compliance with the terms and provisions contemplated hereby (i) will
conflict with, violate, or result in a Breach of any of the terms, covenants, conditions, or provisions of any Legal Requirements
in effect on the date hereof applicable to, or any Order, Consent or Governmental Authorization of any Governmental Body directed
to, or binding on such Seller, (ii) will conflict with, violate, result in a Breach of, or constitute a default under any of the
terms, conditions, or provisions of any agreement or instrument to which, such Seller is a party or by which such Seller is or
may be bound or to which any of their properties or assets are subject, (iii) will conflict with, violate, result in a Breach of,
constitute a default under (whether with notice or lapse of time or both), accelerate or permit the acceleration of the performance
required by, give to others any material interests or rights, or require any Consent under any indenture, mortgage, lease agreement,
or instrument to which such Seller is a party or by which such Seller or such Seller’s property or assets is or may be bound,
or (iv) will result in the creation or imposition of any Lien upon any of the Properties or Assets of the Company, or upon the
Membership Interests, or cause Buyer (or any Related Person thereof) or the Company to become subject to, or to become liable for
the payment of, any Tax for which liability has accrued prior to the date of Closing.

 

(c) Consents;
Governmental Authorizations.  Except as set forth on Schedule 3.1(c), such Seller is not required to give
any notice to, or obtain any Consent from, any Person in connection with the execution and delivery of this Agreement or the consummation
of any of the Contemplated Transactions.  Any registration, declaration, or filing with, or Consent, or Governmental Authorization
or Order by any Governmental Body that is required in connection with the valid execution, delivery, acceptance, and performance
by such Seller under this Agreement or the consummation by such Seller of any transaction contemplated hereby has been completed,
made, or obtained on or before the Closing Date.

 

    	 	-7-	 

     

    

 

(d) Litigation. 
Except as set forth in Schedule 3.1(d), there are no Proceedings pending or, to the Knowledge of such Seller, threatened
against or affecting such Seller or any of their properties, assets, rights, or Business in any court or before or by any Governmental
Body that could, if adversely determined (or, in the case of an investigation, could lead to any Proceeding that could, if adversely
determined), reasonably be expected to materially impair such Seller’s ability to perform their obligations under this Agreement
or to have a Material Adverse Effect on the Company; and such Seller has not received any currently effective notice of any default;
and such Seller is not in default, under any applicable Order of any Governmental Body that could reasonably be expected to impair
such Seller’s ability to perform its obligations under this Agreement or to have a Material Adverse Effect on the Company.

 

(e) Brokers’
Fees.  Except as set forth on Schedule 3.1(e), such Seller has no Liability or obligation to pay any fees
or commissions to any broker, finder, or agent with respect to the Contemplated Transactions.

 

(f) Membership
Interests.  As of the Closing Date, such Seller holds and will hold of record and own and will own beneficially all of
the issued and outstanding Membership Interests of the Company, free and clear of any restrictions on transfer, Taxes, Liens, options,
warrants, purchase rights, contracts, commitments, equities, claims, and demands.  Such Seller is not a party to any option,
warrant, purchase right, or other Contract or commitment that could require such Seller to sell, transfer, or otherwise dispose
of any Membership Interests or other equity interests of the Company (other than this Agreement).  Such Seller is not a party
to any voting trust, proxy, or other agreement or understanding with respect to the voting of any Membership Interests.  At
Closing, upon payment of the Purchase Price as herein provided pursuant to Section 2.2A and B, good and valid title to such
Seller’s Membership Interests described in Section 4.2 will pass to Buyer, free and clear of all Liens), restrictions
on transfer (other than any restrictions under the Securities Act and state securities laws), Taxes, options, warrants, purchase
rights, contracts, commitments, equities, claims, and demands.  Such Seller’s Membership Interest is not certificated.

 

(g) Valid
Offering.  Assuming the accuracy of the representations and warranties of Buyer set forth herein, the offer, sale,
and issuance of the Membership Interests of the Company as contemplated herein will be exempt from the registration requirements
of the Securities Act, and will be exempt from registration and qualification under the registration or qualification requirements
of all applicable state securities laws. Such Seller has not taken and will not take any action that would cause the loss of any
such exemption.  Assuming the accuracy of the representations and warranties of Buyer set forth herein, the offer,
sale, exchange, and issuance of the Membership Interests of the Company as contemplated herein will comply with all applicable
Legal Requirements.

 

(h) Investment
Intent.  Such Seller is acquiring the Initial Purchase Price Shares, the Tranche IV Shares, the Tranche V Sharers and
the Tranche VI Shares (collectively the “Purchase Price Shares”) for their own account with the present intention of
holding such securities for purposes of investment, and that they each have no intention of distributing such Purchase Price Shares
or selling, transferring or otherwise disposing of such Purchase Price Shares in a public distribution, in any of such instances,
in violation of the federal securities laws of the United States of America.

 

    	 	-8-	 

     

    

 

(i) Resale
Limitations.  Such Seller is fully aware of the restrictions on sale, transferability and assignment of the Purchase Price
Shares, and that he must bear the economic risk of retaining ownership of such securities for an indefinite period of time. Such
Seller is aware that (a) the Purchase Price Shares will not be registered under the Securities Act; and (b) because the issuance
of the Purchase Price Shares has not been registered under the Securities Act, an investment in the Purchase Price Shares cannot
be readily liquidated if the holder desires to do so, but rather may be required to be held indefinitely.

 

(j) Information
on Sellers.  Such Seller is an “accredited investor,” as such term is defined in Regulation D promulgated
under the Securities Act, or is otherwise experienced in investments and business matters, has made investments of a speculative
nature and has such knowledge and experience in financial, tax and other business matters as to enable him to evaluate the merits
and risks of, and to make an informed investment decision with respect to, this Agreement.  Such Seller understands that his
or its acquisition of the Purchase Price Shares is a speculative investment, and such Seller represents that he is able to bear
the risk of such investment for an indefinite period, and can afford a complete loss thereof. 

 

3.2 Representations
and Warranties of Buyer and Parent.  In order to induce Sellers to enter into this Agreement and consummate the Contemplated
Transactions, Buyer and Parent represent and warrant to Sellers that the statements contained in this Section 3.2 are correct
and complete (except otherwise disclosed on the Schedules):

 

(a) Organization
of Buyer.  Buyer is a corporation duly organized, validly existing, and in good standing under the laws of the State of
Georgia. Buyer is duly authorized to conduct business and is in good standing under the laws of each jurisdiction where such qualification
is required.  Parent is a corporation duly, validly existing, and in good standing under the laws of the State of New York. 
Parent is duly authorized to conduct business and is in good standing under the laws of each jurisdiction where such qualification
is required.

 

(b) Authorization
of Transaction.  Buyer and Parent have full power and authority to execute and deliver this Agreement, and all other agreements
and written instruments to which Buyer and Parent are parties as contemplated hereby, and to perform its obligations hereunder
and thereunder.  This Agreement, and such other agreements and written instruments, constitute the valid and legally binding
obligation of Buyer and Parent, as applicable, enforceable in accordance with its terms and conditions, except as enforcement thereof
may be limited by applicable Insolvency Laws.  The execution, delivery, and performance of this Agreement and all other agreements
contemplated hereby have been duly authorized by Buyer and Parent. Buyer and Parent have all right, power and capacity to execute
and deliver this Agreement, and all other agreements, documents and written instruments to be executed by Buyer and Parent, as
applicable, in connection with the Contemplated Transactions, and to perform their obligations under this Agreement and all such
other agreements, documents and written instruments.

 

(c) Litigation. 
There are no Proceedings pending or, to the Knowledge of Buyer, threatened against or affecting Buyer or Parent or any of their
properties, assets, rights, or Business in any court or before or by any Governmental Body that could, if adversely determined
(or, in the case of an investigation, could lead to any Proceeding that could, if adversely determined), reasonably be expected
to materially impair Buyer’s or Parent’s ability to perform its obligations under this Agreement; and Buyer or Parent
have not received any currently effective notice of any default; and Buyer or Parent is not in default, under any applicable Order
of any Governmental Body that could reasonably be expected to impair Buyer’s or Parent’s ability to perform their obligations
under this Agreement.

 

(d) Brokers’
Fees.  Buyer and Parent have no Liability or obligation to pay any fees or commissions to any broker, finder, or agent
with respect to the Contemplated Transactions.

 

    	 	-9-	 

     

    

 

(e) No
Conflict with Restrictions; No Default.  Other than as set forth in Schedule 3.2(e), neither the execution,
delivery, and performance of this Agreement nor Buyer’s or Parent’s performance of and compliance with the terms and
provisions contemplated hereby (i) will conflict with, violate, or result in a Breach of any of the terms, covenants, conditions
or provisions of any Legal Requirements in effect on the date hereof applicable to, or any Order, Consent or Governmental Authorization
of any Governmental Body directed to, or binding on such Buyer or Parent, (ii) will conflict with, violate, result in a Breach
of, or constitute a default under any of the terms, conditions, or provisions of any agreement or instrument to which Buyer or
Parent is a party or by which Buyer or Parent is or may be bound or to which any of their properties or assets are subject, or
(iii) will conflict with, violate, result in a Breach of, constitute a default under (whether with notice or lapse of time or both),
accelerate or permit the acceleration of the performance required by, give to others any material interests or rights, or require
any Consent under any indenture, mortgage, lease agreement, or instrument to which such Buyer or Parent is a party or by which
such Buyer or Parent or such Buyer’s or Parent’s property or assets are or may be bound.

 

(f) Consents;
Governmental Authorizations.  Except as set forth on Schedule 3.2(f), Buyer and Parent are not required
to give any notice to, or obtain any Consent from, any Person in connection with the execution and delivery of this Agreement or
the consummation of any of the Contemplated Transactions.  Any registration, or filing with, or Consent, or Governmental Authorization
or Order by any Governmental Body that is required in connection with the valid execution, delivery, acceptance, and performance
by such Buyer or Parent under this Agreement or the consummation by such Buyer or Parent of any transaction contemplated hereby
has been completed, made or obtained on or before the Closing Date.

 

(g) Investment
Intent.  Such Buyer is acquiring the Membership Interests for its own account with the present intention of holding such
securities for purposes of investment, and that the Buyer has no intention of distributing such Membership Interests or selling,
transferring or otherwise disposing of such Membership Interests in a public distribution, in any of such instances, in violation
of the federal securities laws of the United States of America.

 

(h) Resale
Limitations.  Such Buyer is fully aware of the restrictions on sale, transferability and assignment of the Membership
Interests, and that Buyer must bear the economic risk of retaining ownership of such securities for an indefinite period of time.
Such Buyer is aware that (a) the Membership Interests will not be registered under the Securities Act; and (b) because the issuance
of the Membership Interests has not been registered under the Securities Act, an investment in the Membership Interests cannot
be readily liquidated if the Buyer desires to do so, but rather may be required to be held indefinitely.

 

(i) Information
on Buyer.  Buyer is an “accredited investor,” as such term is defined in Regulation D promulgated under the
Securities Act, or is otherwise experienced in investments and business matters, has made investments of a speculative nature and
has such knowledge and experience in financial, tax and other business matters as to enable Buyer to evaluate the merits and risks
of, and to make an informed investment decision with respect to, this Agreement. Buyer understands that its acquisition of
the Membership Interests is a speculative investment, and Buyer represents that he is able to bear the risk of such investment
for an indefinite period, and can afford a complete loss thereof.

 

    	 	-10-	 

     

    

 

SECTION 4

REPRESENTATIONS AND WARRANTIES
CONCERNING THE COMPANY

 

Sellers represent and
warrant to Buyer that the statements contained in this Section 4 are true, correct and complete as of the Effective Date
and as of the Closing Date, except as set forth in the disclosure schedule delivered by Sellers to Buyer on the date hereof (the
“Disclosure Schedule”).  The Disclosure Schedule will be arranged in paragraphs corresponding to the lettered
and numbered paragraphs contained in this Section 4.

 

4.1 Organization,
Qualification, and Power.  The Company is a limited liability company duly organized, validly existing, and in good standing
under the laws of the State of Georgia. To Sellers’ Knowledge the Company is duly authorized to conduct business and is in
good standing under the laws of each jurisdiction where such qualification is required.  The Company has full power and authority
and all licenses, Consents, Permits, Approvals, and authorizations necessary to carry on the Business in which the Company is engaged
and to own and use the Property owned and used by the Company. Schedule 4.1 lists the members, managers, directors
and officers of the Company. Sellers have delivered to Buyer copies all of operating agreements, articles of organization, certificates
of good standing, and all other corporate documents of the Company, all of which are correct and complete.  The Company is
not in default under or in violation of any provision of its Organizational Documents.

 

4.2 Capitalization.
(i) One Hundred Percent (100%) membership interests of the Company are issued and outstanding. All of the issued and
outstanding Membership Interests have been duly authorized, are validly issued, fully paid, and nonassessable.  The
Membership Interests are held of record by the Sellers free and clean of any restriction on transfer, Taxes, Liens, options,
warrants, purchase rights, contracts, commitments, equities, claims and demands (except restrictions under the Securities Act
and state securities laws).  Except as set forth on Schedule 4.2, no other Person has any right, title or
interest in or to the Membership Interests or any other equity interest of the Company.  There are no outstanding or
authorized options, warrants, purchase rights, subscription rights, conversion rights, exchange rights, or other contracts or
commitments that could require the Company to issue, sell, or otherwise cause to become outstanding any of its membership
interests or any other equity interest or other security.  There are no outstanding or authorized appreciation, phantom
stock, profit participation, or similar rights with respect to the Company.  There are no voting trusts, proxies, or
other agreements or understandings with respect to the voting of the Membership Interests. Schedule 4.2
contains and complete and accurate capitalization of the Company and the respective ownership of the Membership Interests by
the Sellers.  The Sellers are the sole members of the Company.  

 

4.3 No
Conflict; Consents.

 

(a) Except
as set forth on Schedule 4.3(a), neither the execution and delivery of this Agreement by Sellers, nor the consummation
or performance of any of the Contemplated Transactions will, directly or indirectly (with or without notice or lapse of time):
(i) Breach or otherwise conflict with any provision of the Organizational Documents of the Company, or contravene any resolution
adopted by the officers, managers, or members of the Company; (ii) Breach or otherwise conflict with any Legal Requirement or Order
to which the Company may be subject or give any Governmental Body or other Person the right to challenge the Contemplated Transactions
or to exercise any remedy or obtain any relief under any Legal Requirement or any Order to which the Company may be subject; (iii)
Breach or otherwise conflict with or result in a violation or Breach of any of the terms or requirements of, or give any Governmental
Body the right to revoke, withdraw, suspend, cancel, terminate or modify, any Governmental Authorization that is held or being
applied for by or on behalf of the Company or that otherwise relates to the Company or the Assets, Properties or the Business of
the Company; (iv) cause Buyer (or any Related Person thereof) to become subject to, or to become liable for the payment of, any
Tax, which accrued prior to the date of Closing; (v) Breach or otherwise conflict with any provision of, or give any Person the
right to declare a default or exercise any remedy under, or to accelerate the maturity or performance of, or payment under, or
to cancel, terminate or modify, any contract or agreement to which the  Company is a party or by which the Company  is
bound; or (vi) result in the imposition or creation of any Lien on any of the Company’s Business, or Assets, including the
Properties.

 

    	 	-11-	 

     

    

 

(b) Except
as set forth on Schedule 4.3(b), the Company is not required to give any notice to, or obtain any Consent from, any
Person in connection with the execution and delivery of this Agreement or the consummation of any of the Contemplated Transactions,
including any Consent required in order to preserve and maintain all Governmental Authorizations required for the ownership and
continued operation of the Business of the Company either before or after Closing and the consummation of the Contemplated Transactions.
Any registration, declaration, or filing with, or Consent, or Governmental Authorization or Order by, any Governmental Body with
respect to the Company that is required in connection with the consummation of the Contemplated Transactions has been completed,
made, or obtained on or before the Closing Date.

 

4.4 Brokers’
Fees.  The Company has no Liability or obligation to pay any fees or commissions to any broker, finder, or agent with
respect to the Contemplated Transactions.

 

4.5 Books
and Records.  The books, records, financial statements and other financial records of the Company, all of which have been
made available to Buyer, are complete and correct and represent actual, bona fide transactions and have been maintained in accordance
with sound business practices and GAAP. 

 

4.6 Title
to Assets.  The Company has good and marketable title to all of the Assets, free and clear of all Liens. The Assets are
not leased and the Company has not otherwise granted to any Person the right to use, operate or own the Assets or any portion thereof. 
There are no outstanding options, rights of first offer or rights of first refusal to purchase any of Assets, or any portion thereof,
or interest therein.  The Assets of the Company constitute all the Assets, tangible and intangible, of any nature whatsoever,
necessary to operate the Business in the manner presently operated by the Company and include all of the operating assets of the
Company.

 

4.7 Description
of Assets.  The assets of the company constitute only (a) the Properties (b) the Company Contracts, (c) the Permits,
Approvals, Consents, Governmental Authorizations, licenses and other permits and approvals obtained to date by the Sellers or that
will be obtained by Sellers prior to Closing to conduct the Business of the Company, including all right, title and interest thereto,
as set forth on Schedule 4.7(c), (d) all data, documentation, books and records related to the Company or Business,
including research and engineering reports and drawings, permit records, title reports and policies, surveys relating to the Properties,
correspondence and all other similar documents and records, including all right, title and interest thereto, as set forth on Schedule
4.7(d), (e) all Intangible Personal Property, (f) the Tangible Personal Property listed on Schedule 4.7(f),
and (g) the Intellectual Property Assets (collectively, the “Assets”).  Complete and correct copies of
all the documentation related to the Assets have been provided to Buyer.  The Company owns no other assets.

 

4.8 Condition
of Tangible Personal Property.  Except as disclosed on Schedule 4.8, (a) each item of Tangible Personal
Property (including all Tangible Personal Property set forth on Schedule 4.7(f)) is in good repair and good operating condition,
ordinary wear and tear excepted, is suitable for immediate use in the Ordinary Course of Business, is free from latent and patent
defects and is being operated and maintained in all material respects in accordance with industry standards and prescribed operating
instructions (if any) necessary to ensure the effectiveness of equipment warranties and/or service plans, and (b) no item of Tangible
Personal Property is in need of repair or replacement other than as part of routine maintenance in the Ordinary Course of Business. 
All Tangible Personal Property owned or leased by the Company are and will be as of Closing in the possession of the Company.

 

    	 	-12-	 

     

    

 

4.9 Subsidiaries. 
The Company does not own and have no right to acquire, directly or indirectly, any outstanding capital stock of, or other equity
interests in, any Person.

 

4.10 No
Adverse Change.  Since the formation of the Company, there has not been any Material Adverse Change in the Business,
operations, prospects, Assets, results of operations or condition (financial or other) of the Company, and, to the Knowledge of
Sellers, no event has occurred or circumstance exists that may result in such a Material Adverse Change.  Neither Sellers
nor the Company have received any notice or other communication (written or oral) from any Governmental Body or any other Person
regarding the ability of the Company to own or operate the Business or the Assets, or the intention of any Governmental Body to
challenge or oppose the Company’s ownership or operation of the Business or the Assets. No action has been taken by the Sellers,
the Company or any other officer, director, manager, or member that would have a Material Adverse Effect on the Company or the
Contemplated Transactions or the Business, and the Company has conducted the Business only in the Ordinary Course of Business. 
Without limiting the generality of the foregoing, since July 1, 2017:

 

(a) the
Company has not sold, leased, transferred, or assigned any of its Assets, tangible or intangible;

 

(b) except
for the Company Contracts and except as set forth on Schedule 4.10(b), the Company has not entered into any agreement,
Contract, lease, or license (or series of related agreements, contracts, leases, and licenses) outside the Ordinary Course of Business;

 

(c) except
as set forth on Schedule 4.10(c), no party (including the Company) has accelerated, terminated, modified, given rise
to a notice of default, or cancelled any agreement, Contract, lease, Permit, Governmental Authorization, or license (or series
of related agreements, contracts, leases, and licenses) to which the Company is a party or by which it is bound or which affect
the Company and or the Assets and Business;

 

(d) the
Company has not granted any Liens, which will continue to be liabilities of the Company, upon any of its Assets, tangible or intangible;

 

(e) except
as set forth on Schedule 4.10(e), the Company has not made any capital expenditure (or series of related capital
expenditures) outside the Ordinary Course of Business;

 

(f) The
Company has not made any capital investment in, any loan to, or any acquisition of the securities or assets of, any other Person
(or series of related capital investments, loans, and acquisitions);

 

(g) except
as set forth on Schedule 4.10(g), the Company has not issued any note, bond, or other debt security or created, incurred,
assumed, or guaranteed any indebtedness for borrowed money or capitalized lease obligation;

 

(h) there
has been no acceleration of Accounts Receivable, (ii) delay or postponement of the payment of accounts payable or other Liabilities,
or (iii) change in any material respect in the Company’s practices in connection with the payment of accounts payable in
respect of purchases from suppliers;

 

    	 	-13-	 

     

    

 

(i) the
Company has not cancelled, compromised, waived, or released any right or claim (or series of related rights and claims) or suffered
any extraordinary loss;

 

(j) the
Company has not transferred, assigned, or granted any license or sublicense of any rights under or with respect to any Intellectual
Property Assets;

 

(k) except
as set forth on Schedule 4.10(k), there has been no change made or authorized in the Organizational Documents of
the Company;

 

(l) the
Company has not issued, sold, pledged or otherwise disposed of any of its equity interests, or granted any options, warrants, or
other rights to purchase or obtain (including upon conversion, exchange, or exercise) any of equity interests or securities;

 

(m) Except
as shown on Schedule 4.10(m), the Company has not declared or set aside any dividend with respect to its equity interests
(whether in cash or in kind) or redeemed, purchased, or otherwise acquired any of its equity interests;

 

(n) except
as set forth on Schedule 4.10(n), the Company has not experienced any damage, destruction, or loss (whether or not
covered by insurance) to its property and Assets, including any Property or any Business;

 

(o) except
as set forth on Schedule 4.10(o), the Company has not made any loan to, or entered into any other transaction with,
any of its members, managers, officers, directors, or employees;

 

(p) except
as set forth on Schedule 4.10(p), the Company has not entered into any employment Contract, severance or other benefit
agreement, consulting agreement or collective bargaining agreement, written or oral, or modified the terms of any existing such
Contract or agreement;

 

(q) the
Company has not granted any increase in the base compensation of any of its officers, directors, members, managers or employees
outside the Ordinary Course of Business;

 

(r) the
Company has not adopted, amended, modified, or terminated any bonus, profit sharing, incentive, severance, or other plan, contract,
or commitment for the benefit of any of its members, managers, officers, directors and employees (or taken any such action with
respect to any other Employee Benefit Plan);

 

(s) the
Company has not made any other change in employment terms for any of its directors, officers, members, managers and employees outside
the Ordinary Course of Business;

 

(t) the
Company has not made or pledged to make any charitable or other capital contribution;

 

(u) there
has not been any other material occurrence, event, incident, action, failure to act, or transaction outside the Ordinary Course
of Business involving the Company;

 

(v) except
as set forth on Schedule 4.10(v), the Company has not discharged, in whole or in part, a material Liability or Lien
outside the Ordinary Course of Business;

 

    	 	-14-	 

     

    

 

(w) there
has been no indication by any customer or supplier of the Business of an intention to discontinue or change the terms of its relationship
with the Company or the Business;

 

(x) the
Company has not disclosed any Confidential Information, except as to provide to its Independent Contractors who are subject to
similar confidentiality provisions;

 

(y) there
has been no change in the accounting methods, principles or practices for financial accounting with respect to the Company (except
for those changes required by the Company’s independent auditors to comply with GAAP) or for IRS reporting purposes; and

 

(z) neither
the Sellers nor the Company have committed to do any of the foregoing.

 

4.11 Undisclosed
Liabilities; Financial Statements; Accounts Receivable. 

 

(a) Except
as specifically disclosed on Schedule 4.11(a), the Company has not incurred any Liability (and there is no Basis
for any present or future action, suit, proceeding, hearing, investigation, charge, complaint, claim, or demand against any of
the Company giving rise to any Liability), except for the Current Seller Liabilities and Retained Liabilities to be paid by Sellers
at Closing pursuant to Section 2.4 (none of which results from, arises out of, relates to, is in the nature of, or was caused
by any Breach of contract, Breach of warranty, tort, infringement, or violation of any Legal Requirement.)

 

(b) Schedule
4.11(b) sets forth the following financial statements (collectively, the “Financial Statements”): (a)
unaudited balance sheets and statements of income, changes in stockholders’ equity, and cash flow (the “Most Recent
Financial Statements”) as of and for the twelve (12) months ended November 1, 2017 (the “Most Recent Fiscal
Month End”), for the Company.  In addition, on or before Closing, Sellers will provide Buyer with the Closing Balance
Sheet in accordance with Section 6.1(j).  The Closing Balance Sheet and the Financial Statements (including the
notes thereto) have been prepared in accordance with GAAP applied on a consistent basis throughout the periods covered thereby,
present fairly the financial condition of the Company as of such dates and the results of operations of the Company for such periods,
are correct and complete, and are consistent with the books and records of the Company (which books and records are correct and
complete); provided, however, that the Most Recent Financial Statements are subject to normal year-end adjustments
(which will not be material individually or in the aggregate) and lack footnotes and other presentation items.

 

(c) All
Accounts Receivable that are reflected in the Financial Statements and/or in the business records of the Company represent valid
obligations arising from sales actually made or services actually performed by the Company in the Ordinary Course of Business.
Except as set forth in Schedule 4.11(c), there is no contest, defense or right of set-off currently being claimed or, to
the Knowledge of Sellers, expected to be claimed, by any account debtor with respect to any Account Receivable, or any part thereof. 

 

4.12 Permits.

 

(a) Schedule
4.12(a) contains (i) a complete and accurate list of all permits, licenses, Consents, Governmental Authorizations and Approvals
owned by the Company that are necessary or required to own, construct, operate and develop the Business, the Assets and the Properties
(collectively, the “Permits”). Schedule 4.12(a) also contains a complete and accurate list of
all permits, Governmental Authorizations, Consents, licenses, and approvals for which the Company or Sellers have made application
with respect to the ownership, operation, construction, and development of the Business and the Properties where such application
is still pending as of the date hereof and at Closing.  The Company has not received any notice (written or oral) from any
Governmental Body of rejection of any such application or any notice (written or oral) that any such application is being considered
for rejection. Each Permit is valid and in full force and effect.  The Permits listed or required to be listed in Schedule
4.12(a) and 4.7(c) collectively constitute all of the Permits necessary or required to permit the Company to lawfully conduct
and operate each Business on each Property in accordance with all Legal Requirements. The Company is, and at all times has been,
in full compliance with all of the terms and requirements of each Permit listed or required to be listed in Schedule 4.12(a)
and 4.7(c). 

 

    	 	-15-	 

     

    

 

(b) Sellers
have delivered, or has caused to be delivered, to Buyer (or its Representatives) copies of (i) all Permits and Approvals and applications
therefor referred to above in this Section 4.12 and in Section 4.7, and (ii) all other correspondence between Sellers
or the Company (or their Representatives) and the applicable Governmental Bodies in connection with such Permits and applications
therefor.

 

(c) No
event has occurred or circumstance exists that may (with or without notice or lapse of time) (A) constitute or result directly
or indirectly in a violation of or a failure to comply with any term or requirement of any Permit listed or required to be listed
in Schedule 4.12(a) and 4.7(c) or (B) result directly or indirectly in the revocation, withdrawal, suspension,
cancellation or termination of, or any modification to, any Permit or Approval.

 

(d) Neither
Sellers nor the Company has received any notice or other communication (whether oral or written) from any Governmental Body or
any other Person regarding (A) any actual, alleged, possible or potential violation of or failure to comply with any term or requirement
of any Permit or (B) any actual, proposed, possible or potential revocation, withdrawal, suspension, cancellation, termination
of or modification to any Permit; and

 

(e) All
applications required to have been filed for the renewal of the Governmental Authorizations listed or required to be listed in
Schedule 4.12(a) and 4.7(c) have been duly filed on a timely basis with the appropriate Governmental Bodies, and
all other filings required to have been made with respect to such Permits have been duly made on a timely basis with the appropriate
Governmental Bodies.

 

4.13 Governmental
Authorizations.

 

(a) Schedule
4.13(a) contains a complete and accurate list of each Governmental Authorization (including document title or name, issuing
authority and identifying number) held by the Company or the Sellers that relates in any way to the Company, the Assets, including
the Properties, or the Business.  Sellers have delivered to Buyer a true and complete copy of all such Governmental Authorizations.
Each Governmental Authorization listed or required to be listed on Schedule 4.13(a) is valid and in full force and
effect.  The Company has at all times since the formation of the Company has been in compliance with all of the terms and
requirements of each Governmental Authorization identified or required to be identified on Schedule 4.13(a). 
No event has occurred or circumstance exists that may (with or without notice or lapse of time) (a) constitute or result directly
or indirectly in a material violation of or a material failure to comply with any term or requirement of any Governmental Authorization
listed or required to be listed on Schedule 4.13(a), or (b) result directly or indirectly in the revocation, withdrawal,
suspension, cancellation or termination of, or any modification to, any Governmental Authorization listed or required to be listed
on Schedule 4.13(a).

 

    	 	-16-	 

     

    

 

(b) Neither
the Company nor the Sellers have received at any time since the formation of the Company any notice or other communication (whether
oral or written) from any Governmental Body or any other Person regarding (i) any actual, alleged, possible or potential violation
of or failure to comply with any term or requirement of any Governmental Authorization relating to the Company, any Business or
the Assets, including any Property, or (ii) any actual, proposed, possible or potential revocation, withdrawal, suspension, cancellation,
termination of or modification to any Governmental Authorization relating to the Company, the Business or the Assets, including
the Properties.  Any registration, declaration, or filing with, or Consent, or other Governmental Authorization or order by,
any Governmental Body that is required in connection with the valid execution, delivery, acceptance, and performance by Sellers
and the Company under this Agreement, or the consummation by Sellers of any Contemplated transaction under this Agreement, have
been or will be completed, made, or obtained on or before the Closing Date.

 

(c) All
applications required to have been filed for the renewal of the Governmental Authorizations listed or required to be listed on
Schedule 4.13(a) have been duly filed on a timely basis with the appropriate Governmental Bodies, and all other filings
required to have been made with respect to such Governmental Authorizations have been duly made on a timely basis with the appropriate
Governmental Bodies.

 

(d) The
Governmental Authorizations listed or required to be listed on Schedule 4.13(a) collectively constitute all
of the Governmental Authorizations necessary to permit the Company to lawfully own, operate, construct and develop each Business
on each Property and to otherwise operate and conduct the Business in the manner in which the Company is currently conducted. Such
Governmental Authorizations also collectively constitute all of the Governmental Authorizations necessary to permit the Company
to own, occupy, operate, improve, develop and use the Assets, including the Properties, and the Business in the manner in which
the Company currently own occupy, operate, improve, develop and use the Assets, including the Properties and operate the Business,
and are valid and in full force and effect.

 

4.14 Compliance
With Legal Requirements.

 

(a) Except
as set forth in Schedule 4.14, (i) the Company is, and at all times have been, in full compliance with each Legal
Requirement that is or was applicable to it or to the conduct or operation of the Business or the ownership or use of any of their
Assets, including the Properties; (ii) no event has occurred or circumstance exists that (with or without notice or lapse of time)
(A) may constitute or result in a violation by the Company of, or a failure on the part of the Company to comply with, any Legal
Requirement or (B) may give rise to any obligation on the part of the Company to undertake, or to bear all or any portion of the
cost of, any Remedial Action of any nature; and (iii) neither the Sellers nor the Company has received any notice or other communication
(whether oral or written) from any Governmental Body or any other Person regarding (A) any actual, alleged, possible or potential
violation of, or failure to comply with, any Legal Requirement or (B) any actual, alleged, possible or potential obligation on
the part of the Company to undertake, or to bear all or any portion of the cost of, any Remedial Action of any nature.

 

4.15 Tax
Matters.

 

(a) From
the date of their organization, each of the Company has been taxed and treated as a partnership under subchapter K of the Code
for federal and/or state income tax purposes.

 

    	 	-17-	 

     

    

 

(b) The
Company has filed all Tax Returns that they were required to file under applicable Legal Requirements and regulations. All such
Tax Returns were correct and complete in all respects and have been prepared in substantial compliance with all applicable laws
and regulations. All Taxes due and owing by the Company (whether or not shown on any Tax Return) have been paid. The Company is
not currently the beneficiary of any extension of time within which to file any Tax Return. No claim has ever been made by an authority
in a jurisdiction where the Company does not file Tax Returns that it is or may be subject to taxation by that jurisdiction. There
are no Liens for Taxes (other than Taxes not yet due and payable) upon any of the Assets of the Company. As of the Closing Date,
the Company will have paid all Taxes (other than Taxes not yet due and payable) and with respect to any Taxes that are not yet
due and payable as of the Closing Date, the Company has adequately reserved for such Taxes, except as described on Schedule
4.15(b).

 

(c) The
Company has withheld and paid all Taxes required to have been withheld and paid in connection with any amounts paid or owing to
any employee, independent contractor, creditor, member, or other third party.

 

(d) Neither
Sellers, nor any member, manager, director or officer (or employee responsible for Tax matters) of the Company, expect any authority
to assess any additional Taxes for any period for which Tax Returns have been filed. No foreign, federal, state, or local tax audits
or administrative or judicial Tax proceedings are pending or being conducted with respect to the Company. The Company has not received
from any foreign, federal, state, or local taxing authority (including jurisdictions where the Company has not filed Tax Returns)
any (i) written notice indicating an intent to open an audit or other review, (ii) request for information related to Tax matters,
or (iii) notice of deficiency or proposed adjustment for any amount of Tax proposed, asserted, or assessed by any taxing authority
against the Company.

 

(e) Schedule
4.15(e) sets forth all federal, state, local, and foreign income Tax Returns filed with respect to the Company for taxable
periods ended on or after the formation of Company, indicates whether those Tax Returns that have been audited, and indicates those
Tax Returns that currently are the subject of audit. Sellers have delivered to Buyer correct and complete copies of all federal
income Tax Returns, examination reports, and statements of deficiencies assessed against or agreed to by the Company filed or received
since the formation of the Company.

 

(f) The
Company has not waived any statute of limitations in respect of Taxes or agreed to any extension of time with respect to a Tax
assessment or deficiency.

 

(g) The
Company is not a party to any agreement, contract, arrangement or plan that has resulted or would result, separately or in the
aggregate, in the payment of (i) any “excess parachute payment” within the meaning of Code Section 280G (or any corresponding
provision of state, local or foreign Tax law) and (ii) any amount that will not be fully deductible as a result of Code Section
162(m) (or any corresponding provision of state, local or foreign Tax law). The Company has not been a United States real
property holding corporation within the meaning of Code Section 897(c)(2) during the applicable period specified in Code Section
897(c)(1)(A)(ii).

 

(h) The
Company is not a party to or bound by any Tax allocation or sharing agreement. The Company (i) has not been a member of an Affiliated
Group filing a consolidated federal income Tax Return or (ii) has Liability for the Taxes of any Person under Treasury Regulations
Section 1.1502-6 (or any similar provision of state, local, or foreign law), as a transferee or successor, by contract, or otherwise.

 

(i) Schedule
4.15(i) sets forth the tax basis of the Company in its depreciable assets as of December 31, 2016, the most recent
practicable date, as well as on an estimated pro forma basis immediately prior to the Closing (without giving effect to the
consummation of the Contemplated Transactions).

 

    	 	-18-	 

     

    

 

(j) Except
as set forth on Schedule 4.15(j), the unpaid Taxes of the Company (i) did not, as of the most recent fiscal month
end of the Company, exceed the reserve for Tax Liability (rather than any reserve for deferred Taxes established to reflect timing
differences between book and Tax income) set forth on the face of the most recent balance sheet of the Company and (ii) do not
exceed that reserve as adjusted for the passage of time through the Closing Date in accordance with the past custom and practice
of the Company in filing its Tax Returns. Since the date of the most recent balance sheet of the Company, the Company has not incurred
any liability for Taxes arising from extraordinary gains or losses, as that term is used in GAAP, outside the Ordinary Course of
Business consistent with past custom and practice.

 

(k) The
Company will not be required to include any item of income in, or exclude any item of deduction from, taxable income for any taxable
period (or portion thereof) ending after the Closing Date as a result of any: (i) change in method of accounting for a taxable
period ending on or prior to the Closing Date, (ii) “closing agreement” as described in Code Section 7121 (or any corresponding
or similar provision of state, local or foreign income Tax law) executed on or prior to the Closing Date, (iii) intercompany
transactions or any excess loss account described in Treasury Regulations under Code Section 1502 (or any corresponding or similar
provision of state, local or foreign income Tax law), (iv) installment sale or open transaction disposition made on or prior
to the Closing Date, or (v) prepaid amount received on or prior to the Closing Date.

 

4.16 Condition
of the Properties.

 

(i) To
Sellers’ Knowledge, there are no structural deficiencies or latent or patent defects affecting any of the Improvements on
any Property and there are no facts or conditions affecting any of the Improvements which would, individually or in the aggregate,
interfere in any respect with the use or occupancy of the Improvements or any portion thereof.

 

(ii) To
Sellers’ Knowledge, there is no condemnation, expropriation or other proceeding in eminent domain, pending or threatened,
affecting any of the Properties or any portion thereof or interest therein.  To Sellers’ Knowledge, there is no injunction,
decree, order, writ or judgment outstanding, nor any claims, litigation, administrative actions or similar proceedings, pending
or threatened, relating to the ownership, lease, use or occupancy of each Property or any portion thereof.

 

(iii) Schedule
4.16(iii) lists each Real Property Lease to which the Company is a party.  Each Real Property Lease is legal, valid,
binding, enforceable and in full force and effect. Except as set forth on Schedule 4.16(iii), the Contemplated Transactions
do not require the Consent of any other party to such Real Property Lease, will not result in a Breach of or default under such
Real Property Lease, and will not otherwise cause such Real Property Lease to cease to be legal, valid, binding, enforceable and
in full force and effect on identical terms following the Closing. The possession and quiet enjoyment of the any Property under
any Real Property Lease has not been disturbed and there are no currently unresolved disputes with respect to such Real Property
Lease.  Neither the Company, nor, to the Knowledge of either Seller, any other party to such Real Property Lease, is in Breach
or default under the Real Property Lease, and, to the Knowledge of either Seller, no event has occurred or circumstance exists
which, with the delivery of notice, the passage of time or both, would constitute such a Breach or default, or permit the termination,
modification or acceleration of rent under such Real Property Lease. No security deposit or portion thereof deposited with respect
to such Real Property Lease has been applied in respect of a breach or default under such Real Property Lease which has not been
redeposited in full. The Company does not owe, or will owe in the future, any brokerage commissions or finder’s fees with
respect to such Real Property Lease.  Except as shown on Schedule 4.16(iii), the other party to each Real Property
Lease is not an affiliate of, and otherwise does not have any economic interest in Sellers or its respective Related Persons. 
Except as shown on Schedule 4.16(iii), neither Sellers nor the Company has subleased, licensed or otherwise granted
any Person the right to use or occupy any Property or any portion thereof. Except as shown on Schedule 4.16(iii),
neither Sellers nor the Company has collaterally assigned or granted any other security interest in any Property subject to a Real
Property Lease or any interest therein.  Except as shown on Schedule 4.16(iii), there are no Liens or other
encumbrances on the estate or interest created by any Real Property Lease.

 

    	 	-19-	 

     

    

 

(iv) Each
Property has legal access to a public right-of-way. Neither Sellers nor the Company shall grant, convey, dispose of, sell, encumber,
assign or transfer any interest in any Property, including but not limited to any contract, option, lease, easement, or other agreement
granting any interest whatsoever in the Properties, without the prior written consent of Buyer, which consent shall not be unreasonably
withheld or delayed. 

 

4.17 Conveyance
of Entire Interest In the Company and the Assets.  At Closing, all of Sellers’ right, title and interest in and
to the Membership Interests and in such right, title or interest that Sellers may have or had with respect to the Business and
the Assets of the Company, including the Properties of the Company will be transferred and conveyed to Buyer free and clear of
all Liens.

 

4.18 Contracts.

 

(a) The
only Contracts to which the Company is a party are described in Schedule 4.18(a) (“Company Contracts”),
and correct and complete copies of all such Contracts have been provided to Buyer.

 

(b) The
Sellers do not have and may not acquire any rights under the Company Contracts, and Sellers do not have and will not become subject
to any obligation or Liability under the Company Contracts, that relates to the Business of the Company.

 

(c) Except
as set forth on Schedule 4.18(c), the Company Contracts are legal, valid, binding, enforceable, and in full force
and effect (except as enforcement thereof may be limited by applicable Insolvency Laws), and will continue to be legal, valid,
binding, enforceable, and in full force and effect on identical terms following the consummation of the Contemplated Transactions;
(ii) none of the Company Contracts will upon completion or performance thereof have a Material Adverse Effect on the Business,
Assets or condition of the Company or the ownership, operation, construction and development of the Business by the Company; (iii)
the Company is, and at all times have been, in compliance with all applicable terms and requirements of the Company Contracts;
(iv) no event has occurred or circumstance exists that (with or without notice or lapse of time) may contravene, conflict with
or result in a Breach of, or give the Company or other Person the right to declare a default or exercise any remedy under, or to
accelerate the maturity or performance of, or payment under, or to cancel, terminate or modify, the Company Contracts; (v) no party
to the Company Contracts has threatened to terminate its business relationship with the Company for any reason; (vi) Neither Sellers
or the Company have given to or received from any other Person any notice or other communication (whether oral or written) regarding
the actual, alleged, possible or potential Breach of the Company Contracts; and (vii) no event has occurred or circumstance exists
under or by virtue of the Company Contracts that (with or without notice or lapse of time) would cause the creation of any Lien
affecting any of the Assets.

 

(d) There
are no renegotiations of, attempts to renegotiate or outstanding rights to renegotiate any material amounts paid or payable to
the Company under the Company Contracts with any Person having the contractual or statutory right to demand or require such renegotiation
and no such Person has made written demand for such renegotiation.

 

    	 	-20-	 

     

    

 

(e) Any
Company Contracts relating to the sale or provision of services by the Company has been entered into in the Ordinary Course of
Business of the Company and has been entered into without the commission of any act alone or in concert with any other Person,
or any consideration having been paid or promised, that is or would be in violation of any Legal Requirement.

 

4.19 Powers
of Attorney.  There are no outstanding powers of attorney executed on behalf of the Company, except as may be contained
within loan documents or lease agreements.

 

4.20 Litigation. 
Except as set forth in Schedule 4.20 (which lists pending or threatened Proceedings, all of which are referred to
as “Current Litigation Matters”), there is no pending or, to Sellers’ Knowledge, threatened Proceeding:
(i) by or against the Company; (ii) that otherwise relates to or may affect the Business of, or any of the Assets owned or used
by, the Company; or (iii) that challenges, or that may have the effect of preventing, delaying, making illegal or otherwise interfering
with, any of the Contemplated Transactions, the Business or the Assets, or the ownership, construction, development, or operation
of any of the Properties in furtherance of the Business.  To Sellers’ Knowledge no event has occurred or circumstance
exists that is reasonably likely to give rise to or serve as a Basis for the commencement of any such Proceeding.  Except
as set forth in Schedule 4.20, (i) there is no Order to which the Company, the Business or any of the Assets is subject
or that in any way relates to or could reasonably be expected to affect the Company, the Business or the Assets, or the ownership,
construction, development, or operation of the Properties; and (ii) no officer, director, member, manager, agent or employee of
the Company is subject to any Order that prohibits such officer, director member, manager, agent or employee from engaging in or
continuing any conduct, activity or practice relating to the Business of the Company.  Except as set forth on Schedule
4.20, (i) each of Sellers and the Company is, and at all times have been, in compliance with all of the terms and requirements
of any Order, (ii) no event has occurred or circumstance exists that is reasonably likely to constitute or result in (with or without
notice or lapse of time) a violation of or failure to comply with any term or requirement of any such Order, and (iii) neither
Sellers nor the Company has received any notice or other communication (whether written or oral) from any Governmental Body or
any other Person regarding any actual, alleged, possible or potential violation of, or failure to comply with, any term or requirement
of any such Order.

 

4.21 Employees.
 Schedule 4.21 sets forth for all employees of the Company:  the (i) name, (ii) job title, (iii) date
of hiring or engagement, (iv) date of commencement of employment or engagement, (v) current compensation paid or payable and any
change in compensation since the formation of the Company, (vi) sick and vacation leave that is accrued but unused, (vii) service
credited for purposes of vesting and eligibility to participate under any Employee Benefit Plan, or any other employee benefit
plan and (viii) details of any disciplinary problems within the past two (2) years. No retired employees of the Company, or their
dependents, are receiving benefits or are scheduled to receive benefits in the future from the Company. No officer, director, agent,
member, manager, employee, consultant, or independent contractor of the Company is bound by any Contract that purports to limit
the ability of such officer, director, member, manager, agent, employee, consultant, or independent contractor (a) to engage in
or continue or perform any conduct, activity, duties or practice relating to the Business of the Company or (b) to assign to the
Company or to any other Person any rights to any invention, improvement, or discovery. No former or current officer, director,
member, manager, agent, employee, consultant, or independent contractor of the Company is a party to, or is otherwise bound by,
any Contract that in any way adversely affected, affects, or will affect the ability of the Company to conduct the Business as
heretofore carried on by the Company. All salaries, wages and other compensation and benefits payable to each officer, director,
agent, member, manager, employee, consultant, or independent contractor of the Company has been accrued and paid by the Company
when due for all periods through the Closing Date and will have been paid by the Company when due for all periods through the Closing
Date. The employment of each employee who is employed by the Company can be terminated by the Company upon not more than fourteen
(14) days’ notice without severance, penalty or premium, other than payment of accrued salaries, wages and vacation benefits.
Except as set forth on Schedule 4.21, the Company does not own or maintain any Employee Benefit Plan pursuant to which any employee
or former employee is entitled to benefits that the Company maintains, to which the Company contributes or has any obligation to
contribute, or with respect to which the Company has any Liability or potential Liability  Neither Sellers nor the Company
have violated the Worker Adjustment and Retraining Notification Act (the “WARN Act”) or any similar state or
local Legal Requirement.

 

    	 	-21-	 

     

    

 

4.22 Labor
Disputes; Compliance.

 

(a) The
Company has complied in all respects at all times with all Legal Requirements, including all Occupational Safety and Health Laws,
relating to employment practices, terms and conditions of employment, equal employment opportunity, nondiscrimination, immigration,
wages, hours, benefits, payment of social security and similar Taxes, collective bargaining and other requirements under applicable
Legal Requirements.  The Company is not liable for the payment of any Taxes, including any social security and similar Taxes,
fines, penalties, interest, back wages, front pay, liquidated or compensatory damages, exemplary damages or other amounts, however
designated, for failure to comply with any of the foregoing Legal Requirements.

 

(b) The
Company has not been, and are not now, a party to any collective bargaining agreement or other labor Contract.  There has
not been, there is not presently pending or existing, and to Seller’s Knowledge, there is not threatened, any strike, slowdown,
picketing, work stoppage or employee grievance process involving the Company.  No event has occurred or circumstance exists
that could provide the Basis for any work stoppage or other labor dispute. There has not been, there is not presently pending or
existing, and, to the Knowledge of Sellers, there is not overtly threatened any Proceeding, charge, grievance proceeding or other
claim against or affecting the Company (or any director, officer, manager, member or employee thereof) relating to the actual or
alleged violation of any Legal Requirement pertaining to labor relations or employment matters, including any charge or complaint
filed by an employee or union with the National Labor Relations Board, the Equal Employment Opportunity Commission or any comparable
Governmental Body, and there is no organizational activity or other labor dispute against or affecting the Company or the Business. 
There is no organizational activity or other labor dispute against or affecting the Business or the Company and no application
or petition for an election of or for certification of a collective bargaining agent is pending.  No grievance or arbitration
Proceeding exists that might have a Material Adverse Effect upon the Company or the conduct of the Business.  Neither the
Company nor the Sellers have been served notice of, and Sellers and the Company does not otherwise have Knowledge of, any grievance
or arbitration Proceeding by any employee of the Company that might have an adverse effect upon the Company, the Assets or the
conduct of the Business.  There has been no charge of discrimination filed against or, to Sellers’ Knowledge, threatened
against the Company with the Equal Employment Opportunity Commission or similar Governmental Body. There is no lockout by the Company
of any employees of the Company, and no such action is contemplated by Sellers or the Company.

 

4.23 Employee
Benefits.  Except as set forth on Schedule 4.23, the Company does not own or maintain any Employee Benefit
Plan pursuant to which any employee or former employee is entitled to benefits that the Company maintains, to which the Company
contributes, or has any obligation to contribute, or with respect to which the Company has any Liability or potential Liability. 
Except as set forth on Schedule 4.23, the Company does not maintain, contribute to or have an obligation to contribute to, or have
any Liability or potential Liability with respect to, any Employee Welfare Benefit Plan (as defined by ERISA) providing health
or life insurance or other welfare-type benefits for current or future retired or terminated directors, officers or employees (or
any spouse or other dependent thereof) of the Company other than in accordance with COBRA.

 

    	 	-22-	 

     

    

 

4.24 Guaranties. 
Except as set forth on Schedule 4.24, the Company is not a guarantor and is not otherwise liable for any Liability
or obligation (including Indebtedness) of any other Person.

 

4.25 Environmental
Matters.

 

(a) Except
as disclosed on Schedule 4.25, (i) the Company has not treated, stored, disposed of, arranged for or permitted the
disposal of, transported, handled, manufactured, distributed, or released any substance, including without limitation any Hazardous
Material, or owned or operated any property or facility (and no such property or facility is contaminated by any such substance)
so as to give rise to any current or future Liabilities, including any Liability for fines, penalties, response costs, corrective
action costs, personal injury, property damage, natural resources damages or attorney’s fees, pursuant to the Comprehensive
Environmental Response, Compensation and Liability Act of 1980, as amended (“CERCLA”), the Solid Waste Disposal
Act, as amended (“SWDA”) or any other Environmental Laws; (ii) to the Knowledge of the Sellers, the Properties
do not now contain nor have the Properties contained any underground storage tanks or Hazardous Material; (iii) neither this Agreement
nor the consummation of the Contemplated Transactions will result in any obligations for site investigation or cleanup, or notification
to or consent of government agencies or third parties, pursuant to any of the so-called “transaction-triggered” or
“responsible property transfer” Environmental Laws; and (iv) the Company has not assumed, or has otherwise become subject
to, any Liability, including without limitation any obligation for corrective or Remedial Action, of any other Person relating
to Environmental Laws.

 

(b) Except
as disclosed on Schedule 4.25, (i) the Company has complied in all respects, and are presently in compliance in all
respects, with all applicable Environmental Laws pertaining to the ownership and operation of the Assets, the Properties and the
Business, (ii) neither Sellers nor the Company has received any communication alleging that they are not in compliance with any
Environmental Law, (iii) neither Sellers nor the Company has taken any action that could reasonably result in any Liability (other
than minor Liabilities of nominal or no financial or other consequence) relating to (1) the environmental conditions on, under,
or about the Properties or any real property that is presently owned, leased or otherwise used by the Company, or upon which the
Company locates its Tangible Personal Property; or (2) the present use, management, handling, transport, treatment, generation,
storage, disposal or release of any Hazardous Material.  There are no pending or threatened Proceedings of any nature resulting
from any Environmental, Health and Safety Liabilities or arising under or pursuant to any Environmental Law with respect to or
affecting the Company, the Business, the Properties or any of the Assets of the Company. No Property contains wetlands, vegetation,
animal species or significant historic/archaeological sites which are subject to special regulations or limitations under any Legal
Requirement.  To the Knowledge of the Sellers, no unacceptable material has deposited or buried on or under the Properties
in violation of any Permit, Governmental Authorization or Legal Requirement; no toxic wastes or Hazardous Materials have been deposited,
disposed of, stored, generated or released on or from the Properties, and there are no cemeteries, grave sites or other burial
sites located on the Properties.

 

4.26 Certain
Business Relationships with the Company.  Except as disclosed on Schedule 4.26, neither Sellers, nor their
Related Persons, nor the officers, directors, managers, members and employees of the Company has been involved in any business
arrangement or relationship with the Company within the past twelve (12) months, and neither Sellers, nor their Related Persons,
nor the officers, directors, employees, members, managers, directors and officers of the Company owns any material asset, tangible
or intangible, which is used in the Business of the Company. Neither the Company nor its Related Persons, their respective officers,
employees, members, managers, directors and officers of the Company nor any Sellers nor any Related Person of any of them owns,
or has owned, of record or as a beneficial owner, an equity interest or any other financial or profit interest in any Person that
has (a) had business dealings or a material financial interest in any transaction with the Company other than business dealings
or transactions disclosed in Schedule 4.26, each of which has been conducted in the Ordinary Course of Business with
the Company at substantially prevailing market prices and on substantially prevailing market terms or (b) engaged in competition
with the Company with respect to any line of the products or services of the Company in any market presently served by the Company. 
Except as set forth in Schedule 4.26, neither the Company nor its Related Persons, their respective officers, employees,
members, managers, directors and officers of the Company, nor the Sellers nor any Related Person of any of them is a party to any
Contract with, or has any claim or right against, the Company.

 

    	 	-23-	 

     

    

 

4.27 Intellectual
Property.  Schedule 4.27 contains a complete and accurate list and summary of all Intellectual Property
owned or possessed by the Company, or which the Company has the right to use pursuant to a valid and enforceable, written license,
sublicense, agreement, or permission (collectively and together with the Intangible Personal Property, the “Intellectual
Property Assets”).  Such Intellectual Property Assets constitute all of the Intellectual Property necessary for
the operation of the Business of the Company as presently conducted.  The Intellectual Property Assets do not infringe
on the intellectual property rights of any Person.  The Company is the owner or licensee of all right, title and interest
in and to each of the Intellectual Property Assets, free and clear of all Liens.  The Company has the right to use all of
the Intellectual Property Assets without payment to any third party.  The Company owns or has the right to use pursuant to
ownership, license, sublicense, agreement, permission or free and unrestricted availability to general public all of the Intellectual
Property Assets used by the Company.  The Company has not interfered with, infringed upon, misappropriated, or otherwise come
into conflict with any Intellectual Property rights of third parties, and neither Sellers, nor the Company, or their respective
members, managers, directors and officers and employees has ever received any charge, complaint, claim, demand, or notice alleging
any such interference, infringement, misappropriation, or violation (including any claim that the Company must license or refrain
from using any intellectual property rights of any third party).  To the Knowledge of Sellers, no third party has interfered
with, infringed upon, misappropriated, or otherwise come into conflict with any proprietary intellectual property rights of the
Company.

 

4.28 Corrupt
Practices.  Except in compliance with all Legal Requirements or as set forth in the contracts listed in Schedule 4.28,
neither the Sellers, the Company, nor any of their Related Persons, or each of their respective officers, directors, employees
or agents, have, directly or indirectly, ever made, offered or agreed to offer anything of value to (a) any employees, Representatives
or agents of any customers of Sellers or the Company for the purpose of attracting business to Sellers or the Company or (b) any
domestic governmental official, political party or candidate for government office or any of their employees, Representatives or
agents.

 

4.29 Solvency. 
Neither Sellers nor the Company is Insolvent and neither the Sellers nor the Company has proposed a compromise or arrangement to
its creditors generally, had any petition in bankruptcy filed against it, filed a petition or undertaken any action proceeding
to be declared bankrupt, to liquidate its assets or to be dissolved.  The Contemplated Transactions will not cause the Company
to become Insolvent or to be unable to satisfy and pay its debts and obligations generally as they come due.

 

4.30 Operating
Agreement.  Attached hereto as Schedule 4.30 is a true and correct copy of the Operating Agreement (the
“Operating Agreement”) for the Company.  The Operating Agreement is in full force and effect and has not been
rescinded, modified or amended in any way.

 

4.31 States
in which doing Business.  The Company operates the Business only within the State of Georgia.

 

    	 	-24-	 

     

    

 

4.32 Disclosure.

 

(a) No
representation or warranty or other statement made by Sellers in this Agreement, the Schedules, the certificates delivered pursuant
to this Agreement or otherwise in connection with the Contemplated Transactions contains any untrue statement or omits to state
a material fact necessary to make any of them, in light of the circumstances in which it was made, not misleading.

 

(b)  Sellers
have no Knowledge of any fact that has specific application to the Company (other than general economic or industry conditions)
and that may materially adversely affect the assets, business, prospects, financial condition or results of operations of the Company
that has not been set forth in this Agreement or the Schedules.

 

4.33  Real
Estate Purchase Contract. Schedule 4.33 contains a true, correct and complete copy of the Real Estate Purchase
Contract. The Real Estate Purchase Contract is in full force and effect and has not been modified or amended other than as set
forth in Schedule 4.33.

 

SECTION 5

COVENANTS

 

5.1 General. 
The Parties will cooperate reasonably with each other and with their respective Representatives in connection with any steps required
to be taken as part of their respective obligations under this Agreement, and will (a) furnish upon reasonable request to each
other such further information, (b) execute and deliver to each other such other documents, and (c) do such other acts and things,
all as any other Party may reasonably request for the purpose of carrying out the intent of this Agreement and the Contemplated
Transactions.  In case at any time after the Closing any further action is necessary or desirable to carry out the purposes
of this Agreement, each of the Parties will take such further action (including the execution and delivery of such further instruments
and documents) as any other Party reasonably may request, all at the sole cost and expense of the requesting Party (unless the
requesting Party is entitled to indemnification therefor under Section 7 or unless such cost or expense is the obligation
of the non-requesting Party under this Agreement).  Sellers acknowledge and agree that, from and after the Closing, Buyer
will be entitled to possession of all documents, books, records (including Tax records), Permits, Governmental Authorizations,
certificates of title, agreements, Company Contracts, Organizational Documents, financial data and all other documents of any sort
relating to the Company (all of the forgoing, the “Company’s Documents”).

 

5.2 Inspection
Period.  Prior to the Closing (the “Inspection Period”), the Buyer shall have the inspection rights
set forth in this Section 5.2.  Buyer shall have the Inspection Period within which to physically inspect the Assets, including
the Properties, and the Company Documents and to conduct its due diligence with respect to the Assets, including the Properties,
the Business and the Company.  Buyer and Buyer’s officers, directors, employees, consultants, agents and attorneys and
other authorized representatives, shall have the right to reasonable access to the Assets, the Properties and Company Documents
and to all records of Sellers and the Company related thereto, including without limitation title information, property information,
surveys, maintenance records, environmental assessment reports, engineering reports and any other information of the Company, the
Business and the Assets, at reasonable times during the Inspection Period for the purpose of inspecting the Assets, including the
Properties, and the Business, and  conducting all studies, tests, inspections and measurements of all kinds as deemed reasonably
necessary by Buyer, reviewing the books and records of Sellers and the Company concerning the Company, the Business and the Assets,
including the Properties, and otherwise conducting its due diligence review of the Company, the Business, and the Assets, including
the Properties.  Sellers shall cooperate with and assist Buyer in making such inspections and reviews and in obtaining copies
of any documentation related to the Company, the Business, and the Assets and Properties, including the review and inspection of
any and all Permits, Approvals, Consents, licenses, Governmental Authorizations and other permits and approvals necessary or required
for the Company to own, operate, construct and develop the Business and in accordance with such other applicable local, state and
federal Legal Requirements.  Sellers shall make available to Buyer such of the foregoing as may be in Sellers’ possession,
or the Company’s possession, in order to facilitate Buyer’s due diligence.  Sellers shall give Buyer any authorizations
which may be required by Buyer in order to gain access to records or other information pertaining to the Company, the Assets, including
the Properties, and the Business, or the use thereof maintained by any third party, Governmental Body or organizations.  Buyer
shall, prior to the expiration of the Inspection Period, notify Sellers of the Company Contract that Buyer does not wish for the
Company to continue to be a party thereto and be bound thereby (“Excluded Contracts”).

 

    	 	-25-	 

     

    

 

5.3 Post
Closing Contingencies.

 

(a )Notwithstanding
anything to the contrary contained herein, Sellers shall not be entitled to, and shall forfeit, any and all rights to Tranche II
of the Purchase Price, unless, on or before December 31, 2018 (the “Contingency Deadline”), (a) the Company has closed
on the purchase of that certain real property (the “Real Property”) described in that certain Real Estate Purchase
Agreement (the “Real Estate Purchase Contract”) entered into by the Kennesaw/75 Venture, L.P., a Georgia limited liability
company, “Seller”, and CCMR Limited Partnership, a Georgia limited partnership, as “Purchaser” , on or
about December 7, 2017 on terms at least as favorable to the Company as contained in the Real Estate Purchase Contract, and (b)
the Company has obtained all Permits required for the operation of a medical waste disposal facility at the Real Property (jointly
the “Tranche II Post Closing Contingencies”).

 

(b) Notwithstanding
anything to the contrary contained herein, Sellers shall not be entitled to, and shall forfeit, any and all rights to Tranche III,
IV, V or VI of the Purchase Price, unless, on or before the Contingency Deadline, (a) the Tranche II Post Closing Contingencies
shall have been satisfied and (b) the Company has constructed a fully operational medical waste disposal facility on the Real Property
and has obtained all Permits to operate such facility as a medical waste disposal facility (jointly the “Remaining Post Closing
Contingencies”).

 

5.4 Transition.

 

(a) Sellers
and its Related Persons will not take any action that is designed or intended to have the effect of discouraging any lessor, licensor,
vendor, customer, supplier, or other business associate of the Company from maintaining the same business relationships with the
Company after the Closing as it maintained with the Company or Sellers prior to the Closing.  The Parties will cooperate to
provide each other with reasonable information systems support to permit a smooth transfer of business operations between the Parties. 
In such regard, Sellers will provide Buyer with all information and systems support in connection with the operation of the Company
and the Business.  Such assistance shall include electronic, computer and other system assistance. Sellers will refer all
customer inquiries relating to the Business of the Company to Buyer from and after the Closing.

 

(b) From
and after the Effective Date and continuing for ninety days after Closing, the Parties will cooperate to provide each other with
reasonable information systems support to permit a smooth transfer of the operations of the Business.  In such regard, during
such ninety (90) day period, Sellers will provide Buyer with reasonable billing and other information systems support in connection
with the operation by Buyer of the Business.  Such assistance shall include electronic, computer and other system assistance. 
Sellers also agree to advise and assist Buyer with respect to any and all local community and government programs, Proceedings,
introductions, and arrangements relating to the Business.  Sellers will cooperate with and assist Buyer with any submission
of any proposals to any Governmental Bodies and to provide the services necessary to procure all Permits, Approvals, Governmental
Authorizations, Contracts, orders, Consents, licenses, assignments, and approvals from the State of Georgia for the Company to
have the right to own, operate, construct, and develop the Business in the Buyer’s sole discretion, including without limitation,
assistance with the completion of all applicable filings, submissions, registrations and all other requirements relating thereto,
and attendance at all meetings, public hearings and any other Proceedings with applicable Governmental Bodies, or their Representatives,
at Buyer’s reasonable request. From and after the Effective Date, Sellers will agree to devote the time and attention necessary
to the business and affairs of the Company and shall give Buyer the benefit of Sellers’ special knowledge, skill and business
expertise to promote the Company’s business interests in the marketplace. All services to be provided to Buyer, and the Company,
as applicable, and all actions taken by Sellers will be in accordance with all Legal Requirements. The services to be provided
by the Sellers to Buyer and the Company pursuant to this Agreement shall be exclusive to Buyer and the Company, and Sellers will
not provide, either directly or indirectly, similar services to any other Person.

 

    	 	-26-	 

     

    

 

5.5 Confidentiality.

 

(a) Sellers
hereby acknowledge and agree that, through their ownership or operation of the Company, have occupied positions of trust and confidence
with respect to the Company and the Business up to the date hereof and has had access to, and have become familiar with, the confidential
and non-public information of the Company and the Business any and all other confidential or proprietary information concerning
the affairs or conduct of the Company and the Business prior to the date hereof, whether prepared by or on behalf of the Sellers
or the Company (collectively, the “Confidential Information”).

 

(b) Sellers
hereby acknowledge and agree that the protection of the Confidential Information of the Company is necessary to protect and preserve
the value of the Company and the Business and Assets of the Company, and that without such protection, Buyer would not have entered
into this Agreement and consummated the Contemplated Transactions.  Accordingly, subject to the provisions of Section 5.5(c),
Sellers hereby covenant and agree, for themselves, their Representatives and Related Persons and their successors and permitted
assigns, that, without the prior written consent of Buyer (which consent will be at the Buyer’s absolute discretion to give
or withhold), Sellers will not, nor will Sellers cause or permit any of their Representatives or Related Persons to, at any time
on or after the Closing Date, directly or indirectly, disclose to any Person or use for their own account or benefit or for the
account or benefit of any other Person any Confidential Information, except as required under their agreements with its Independent
Contractors, Sales Representatives and Consultants, all of which have signed confidentiality provisions in their current agreements
with the Company.

 

(c) The
provisions of Section 5.5(b) will not apply to any Confidential Information (i) that the Sellers can demonstrate with documentary
evidence is generally known to, and available for use by, the public other than as a result of the Breach of this Agreement or
any other agreement pursuant to which any Person (including Sellers or any Representative or Related Person thereof) owes any duty
of confidentiality to the other Party or previously owed any duty of confidentiality to Buyer; (ii) that is required to be disclosed
pursuant to Legal Requirement or an Order, or (iii) that the Sellers can reasonably determine is necessary to be disclosed to a
Representative of Sellers in order for Sellers to perform their covenants and obligations, or to enforce its rights against Buyer,
under this Agreement or any related agreement (and then only to the extent necessary to perform such covenants and obligations
or to enforce such rights).  If Sellers (including any Representative or Related Person thereof) become compelled by a Legal
Requirement or any order to disclose any Confidential Information, Sellers will provide Buyer with prompt written notice of such
requirement so that Buyer may seek a protective order or other remedy in respect of such compelled disclosure.  If such a
protective order or other remedy is not obtained by or is not available to Buyer, then Sellers will be responsible for ensuring
that only the minimum portion of such Confidential Information that is legally required to be disclosed is so disclosed, and Sellers
will use all reasonable efforts to obtain assurances that confidential treatment will be given to such Confidential Information. 
Sellers acknowledge their responsibility to ensure that their Representatives and agents who are given, or now have, access to
the Confidential Information will comply with the terms of this Section 5.5.  Sellers shall be liable for any
Breach of this Agreement caused by its Representatives and agents.

 

    	 	-27-	 

     

    

 

5.6 Injunctive
Relief.  The Parties acknowledge and agree that (a) each of the provisions of Sections 5.1, 5.4, 5.5, 5.8, 5.9, 5.10,
5.12 and 5.13 are reasonable and necessary to protect the legitimate business interests of the Parties and their Related Persons,
(b) any violation of any such covenant contained in Sections 5.1, 5.4, 5.5, 5.8, 5.9, 5.10, 5.12 and 5.13 would result in
irreparable injury to the Parties and their Related Persons, the exact amount of which would be difficult, if not impossible, to
ascertain or estimate, and (c) the remedies at law for any such violation would not be reasonable or adequate compensation to the
Parties and their Related Persons for such a violation.  Accordingly, notwithstanding any other provision of this Agreement,
if either Party, directly or indirectly, violates any of its covenants or obligations under Sections 5.1, 5.4, 5.5, 5.8, 5.9,
5.10, 5.12 and 5.13 then, in addition to any other remedy which may be available to the other Party or any Related Person thereof,
at law or in equity, the Parties and their Related Persons will be entitled to injunctive relief against the other Party, without
posting bond or other security, and without the necessity of proving actual or threatened injury or damage.

 

5.7 Employees.
Buyer shall, in conjunction with the Company, determine those employees that the Company shall retain after Closing.  Any
employment will be at base salary or wage rates determined by Buyer and the Company.  The provision of any other compensation
or employee benefits, including, without limitation, bonuses, commissions, health benefits or compensation plans, will be at Buyer’s
and the Company’s discretion, and Buyer shall not assume any Employee Benefit Plan, any benefit plan obligation, or acquire
any benefit plan assets from Sellers, the Company or any Related Person thereof.

 

5.8 Public
Announcements.  The Parties will keep the existence of this Agreement, the terms and conditions hereof and the Contemplated
Transactions confidential, and the Parties will not, nor will they cause or permit any Related Person or Representative to, make
any public announcement in respect of this Agreement or the Contemplated Transactions without the prior written consent of the
other Party, which consent will not be unreasonably withheld or delayed; provided, however that the foregoing confidentiality and
non-disclosure obligations will not apply to:  (1) Buyer if at Closing, if Buyer determines to issue a press release announcing
the fact of the acquisition of the Company or (2) the Parties to the extent that (a) disclosure of such information is reasonably
necessary to consummate the Contemplated Transactions, (b) disclosure of such information is required pursuant to Legal Requirement
(including the Securities Exchange Act of 1934, as amended, and the rules of any national stock exchange or automated dealer quotation
system) or an Order, (c) disclosure of such information is reasonably necessary for the Parties to enforce their rights under this
Agreement, or (d) such information is already in the public domain other than as a result of a breach of this Section 5.8
or 5.5 or any other confidentiality or non-disclosure obligation owed to a Party by any Person (including the other Party). 
To the extent that any public announcement of this Agreement, any of the provisions hereof or the Contemplated Transactions is
required of the Parties by Legal Requirement or Order, the Parties will cooperate reasonably with respect to reaching agreement
on the contents and timing of such announcement.

 

5.9 Use
of Name.  Sellers hereby agree that from and after the Closing Date that Sellers and their Related Persons shall not,
directly or indirectly, use the names “Red X Medical”, “EnviCare” or any derivation or variation thereof
in any manner unless agreed upon by the Parties.

 

    	 	-28-	 

     

    

 

5.10 Pre-Closing
Covenants.  The Parties agree as follows with respect to the period between the Effective Date and the Closing or earlier
termination of this Agreement:

 

(a) Sellers
will not engage, and will not cause or permit the Company, to engage, in any practice, take any action, or enter into any transaction
outside the Ordinary Course of Business with respect to the Assets, including the Properties, the Business or the Company without
Buyer’s express written consent, which consent may not be unreasonably withheld or delayed.  Neither Sellers nor the
Company will sell, lease, transfer or assign any of the Membership Interests or the Assets and Properties and will not impose any
Liens upon any of the Membership Interests or the Assets, including the Properties.  Sellers will not and will not cause or
permit the Company to, without Buyer’s prior consent, cancel, compromise, waive or release any right or claim under, in or
to the Membership Interests or the Assets, including the Properties.

 

(b) Sellers
will not, and will not cause or permit the Company to, without Buyer’s prior consent, voluntarily incur any obligation or
Liability or enter into any material transaction, contract, capital expenditure or commitment for which Buyer may have responsibility
or Liability after Closing.

 

(c) Sellers
will, and will cause the Company to, keep the Assets, including the Properties, of the Company substantially intact and will maintain
all of the Assets, including the Properties of the Company in a state of condition that complies with all Legal Requirements and
is consistent with the Ordinary Course of Business of Sellers and the Company.

 

(d) Sellers
will, and will cause the Company to, comply with all applicable Legal Requirements of each Governmental Body having jurisdiction
over the Company, the Properties, the Assets and the Business.

 

(e) Sellers
will not, nor will he cause or allow any representative of the Company to, (a) solicit, initiate, or encourage the submission of
any proposal or offer from any Person relating to the acquisition of the Membership Interests or any portion of the Assets, including
the Properties, of the Company (including any acquisition structured as a merger, consolidation, or share exchange) or (b participate
in any discussions or negotiations regarding, furnish any information with respect to, assist or participate in, or facilitate
in any other manner any effort or attempt by any Person to do or seek any of the foregoing.  Sellers will not vote the equity
interests in the Company in favor of any such acquisition.  Sellers will notify Buyer immediately if any Person makes any
proposal, offer, inquiry, or contact with respect to any of the foregoing. If Sellers breach the terms of this provision, Sellers,
in addition to other remedies available to Buyer, will reimburse Buyer for all costs and expenses, including without limitation,
attorney and professional fees, incurred by Buyer and its Representatives in connection with its due diligence investigation with
respect to the Assets, including the Properties, the Business and the Company.

 

(f) Sellers
will not cause or permit, and will not permit the Company to commit, any waste of the Assets, including the Properties of the Company. 

 

(g) Sellers
will not, and will not cause or permit the Company to, without the prior consent of Buyer, enter into any compromise or settlement
of any litigation, including any Current Litigation, Proceeding or investigation by and Governmental Body relating to the Company,
the Business, or the Company’s Assets, including the Properties, except that Buyer’s consent will not be required to
any  settlement of any Current Litigation which will not impose any Liability on  any of the Company or create any third
party rights, including without limitation, lien rights in any of  the Company’s assets.

 

    	 	-29-	 

     

    

 

(h) Sellers
will not, and will not cause or permit the Company to, take any action, or knowingly omit to take any action, that would or would
reasonably be expected to result in (i) any representation or warranty of Sellers set forth in Section 3 and 4 becoming
untrue or (ii) any of the conditions to the obligations of Sellers set forth in this Agreement not being fully satisfied. 
Sellers will give prompt written notice to Buyer of any material adverse development causing a Breach of any of the representations
and warranties in Section 3 or 4.  No disclosure pursuant to this Section 5.10(h), however, shall be deemed
to amend or supplement the Disclosure Schedule or to prevent or cure any misrepresentation, breach of warranty, or breach of covenant.

 

(i) Sellers
shall not perform, nor shall they authorize or allow any of their or the Company’s representatives, officers, employees or
agents, to perform, any acts or omissions to manipulate the price of the Parent’s common stock.

 

The Parties will do
all other acts that may be reasonably necessary or desirable in the opinion of Sellers or Buyer to consummate the Contemplated
Transactions, all without further consideration.

 

5.11 Termination
of this Agreement.  The Parties may terminate this Agreement as provided below:

 

(a) permits
or approvals contemplated by this Agreement have not been obtained by the Company, or the Company either does not have full right,
title and interest in and to such Governmental Authorizations, Permits, Consents, Approvals, licenses, Contracts, Company Contracts,
or any other permits or approvals; or such Governmental Authorizations, Permits, Approvals, Consents, licenses, Contracts, Company
Contracts, or any other permits or approvals cannot be transferred to or issued directly to and in the name of the Company; and/or
(ii) such Governmental Authorizations, Permits, Approvals, Consents, licenses, Contracts, Company Contracts, or any other permits
or approvals cannot be issued, conveyed, assigned or transferred to the Company or are not in the form and substance satisfactory
to Buyer in its sole discretion.

 

(b) Buyer
may terminate this Agreement by giving written notice to Sellers at any time prior to the Closing (i) in the event Sellers have
Breached any representation, warranty, or covenant contained in this Agreement in any respect, Buyer has notified Sellers of the
Breach, and the Breach has continued without cure for a period of ten (10) days after the notice of Breach; and

 

(c) Sellers
may terminate this Agreement by giving written notice to Buyer at any time prior to the Closing (i) in the event Buyer has Breached
any representation, warranty, or covenant contained in this Agreement in any respect, Sellers have notified Buyer of the Breach,
and the Breach has continued without cure for a period of ten (10) days after the notice of Breach.

 

If any Party terminates
this Agreement pursuant to this Section 5.11, all rights and obligations of the Parties hereunder shall terminate without
any Liability of any Party to any other Party (except for any Liability of any Party then in Breach).

 

    	 	-30-	 

     

    

 

5.12 Seller
Releases.  Sellers, for themselves, and their Related Persons and each of their respective members, managers, officers,
directors, employees, successors, assigns, agents and Representatives (collectively, the “Seller Releasing Parties”),
hereby finally, unconditionally, irrevocably and absolutely fully releases, acquits, remises and forever discharges the Company
and Buyer and any of their Related Persons, and their respective officers, directors, members, managers, employees, parent companies,
subsidiaries, predecessors, successors, assigns, agents and Representatives, from any and all actions, suits, debts, sums of money,
interest owed, accounts, contribution obligations, reckonings, bonds, bills, covenants, controversies, agreements, guaranties,
promises, undertakings, variances, trespasses, credit memoranda, charges, damages, judgments, executions, obligations, costs, expenses,
fees (including attorneys’ fees and court costs), counterclaims, claims, demands, causes of action and Liabilities (the “Seller
Claims”) existing as of the Closing Date accruing to Sellers and the Seller Releasing Parties in any capacity whatsoever,
including but not limited to: (i) all of Sellers’ and Seller Releasing Parties’ capacities with the Company; (ii) arising
under or by virtue of the Organizational Documents or the Company Documents; (iii) relating to or resulting from the negotiation,
preparation, and consummation of this Agreement and the Contemplated Transactions; (iv) the valuation of the Membership Interests
or determination of the Purchase Price; or (v) all matters set forth on Schedule 4.10(g) other than the Bank Loans. 
Sellers hereby finally, unconditionally, irrevocably and absolutely waives any and all offsets and defenses, in each case related
to any action, inaction, event, circumstance or occurrence occurring or alleged to have occurred on or prior to the Closing Date
with respect to such Seller Claims, whether known or unknown, absolute or contingent, matured or unmatured, foreseeable or unforeseeable,
presently existing or hereafter discovered, at law, in equity or otherwise, whether arising by statute, common law, in contract,
in tort or otherwise, that  Sellers and the Seller Releasing Parties may now have or that might subsequently accrue to any
of them, including without limitation those against any current or former officer, director, manager, member, partner, employee,
agent or Representative of the Company or any of its Related Persons or by reason of being an employee, member, manager, officer
and/or director of the Company or its Related Persons.

 

This Section
5.12 shall survive Closing and any termination or expiration of this Agreement. 

 

5.13 Sellers shall
not perform, nor shall they authorize or allow any of their or the Company’s representatives, officers, employees or agents,
to perform, any acts or omissions to manipulate the price of the Parent’s common stock at any time after Closing. This Section
5.13 shall survive Closing.

 

5.14 Sellers agree
and acknowledge that the Purchase Price Shares may not be sold or transferred unless (i) such shares are sold pursuant to an effective
registration statement under the Securities Act, or (ii) the Parent or its transfer agent shall have been furnished with an opinion
of counsel (which opinion shall be in form, substance and scope customary for opinions of counsel in comparable transactions) to
the effect that the shares to be sold or transferred may be sold or transferred pursuant to an exemption from such registration
or (iii) such shares are sold or transferred pursuant to Rule 144 under the Securities Act (or a successor rule) (“Rule
144”) or (iv) such shares are transferred to an “affiliate” (as defined in Rule 144) of the Sellers who agree
to sell or otherwise transfer the shares only in accordance with this Section 5.13 and who is an Accredited Investor (as defined
in the Securities Act). Furthermore, Buyer and Parent agree and acknowledge that Parent shall remain subject to the reporting requirements
of section 13 or 15(d) of the Securities Act and shall file all required reports under section 13 or 15(d) of the Securities Act
for no less than six years following the Closing. Following the six-month holding period required by Rule 144, neither Buyer nor
Parent shall unreasonably withhold their consent to remove the restrictive legend referenced in this Subsection 5.13 of this Agreement,
and Buyer and Parent shall cooperate in good faith to take any reasonable and necessary action to facilitate removal of the restriction.
Until such time as the shares of common stock of Parent underlying the Purchase Price Shares and Tranche V Shares have been registered
under the Securities Act or otherwise may be sold pursuant to Rule 144 without any restriction as to the number of securities as
of a particular date that can then be immediately sold, each certificate for shares of common stock of Parent that has not been
so included in an effective registration statement or that has not been sold pursuant to an effective registration statement or
an exemption that permits removal of the legend, shall bear a legend substantially in the following form, as appropriate:

 

“NEITHER
THE ISSUANCE AND SALE OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE EXERCISABLE
HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT
BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES
UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL (WHICH COUNSEL SHALL BE SELECTED BY THE HOLDER), IN
A GENERALLY ACCEPTABLE FORM, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT PURSUANT TO EXEMPTION THEREFROM OR (II) UNLESS SOLD
PURSUANT TO RULE 144 OR RULE 144A UNDER SAID ACT. NOTWITHSTANDING THE FOREGOING, THE SECURITIES MAY BE PLEDGED IN CONNECTION WITH
A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY THE SECURITIES.”

 

This Section 5.14 shall
survive Closing.

 

    	 	-31-	 

     

    

 

SECTION 6

CONDITIONS TO OBLIGATION
TO CLOSE

 

6.1 Conditions to
Obligation of Buyer to Close. The obligation of Buyer to consummate the transactions to be performed by it in connection with
the Closing is subject to satisfaction of the following conditions:

 

(a) The representations
and warranties of Sellers set forth in Sections 3 and 4 shall be true and correct in all material respects at and
as of the Closing Date, except to the extent that such representations and warranties are qualified by terms such as “material”
and “Material Adverse Effect,” in which case such representations and warranties shall be true and correct in all respects
at and as of the Closing Date. Each Seller shall have executed and delivered to Buyer a certificate dated as of the Closing Date
that all such representations and warranties made by them are true and correct in all respects as of the Closing Date. Without
limiting generality of the forgoing, all of the Assets, including all Tangible Personal Property, shall be in the same condition,
use, operation and repair as of the date of any inspection by Buyer of such Assets and Tangible Personal Property, normal wear
and tear excepted;

 

(b) Sellers shall have
performed and complied with all of their covenants hereunder in all material respects through the Closing;

 

(c) The Company and/or
Sellers shall have procured all of the third-party consents specified in Schedule 3.1(c) and 4.3(b) and 4.16(v);

 

(d) No action, suit,
or proceeding shall be pending or threatened before any court or quasi-judicial or administrative agency of any federal, state,
local, or foreign jurisdiction or before any arbitrator wherein an unfavorable injunction, judgment, order, decree, ruling, or
charge would (i) prevent consummation of any of the transactions contemplated by this Agreement, (ii) cause any of the transactions
contemplated by this Agreement to be rescinded following consummation, (iii) affect adversely the right of Buyer to own the Membership
Interests and to control the Company, or (iv) affect adversely the right of the Company to own its Assets, including the Properties,
and to operate their Business (and no such injunction, judgment, order, decree, ruling, or charge shall be in effect);

 

(e) There has not been
made or threatened by any Person a claim asserting that such Person (i) is the holder of record or the beneficial owner of, or
has the right to acquire or to obtain beneficial ownership of, any Membership Interests or other interest of the Company, or any
other voting, equity or ownership interest, in or to the Company, (ii) is entitled to all or any portion of the Purchase Price
payable for the Membership Interests as contemplated by this Agreement or (iii) is entitled to acquire any of the Assets, including
the Properties, of the Company;

 

(f) The Company shall
have received, acquired and obtained the all nonappealable and unrestricted Governmental Authorizations, Consents, Permits, Approvals,
licenses, and other permits and approvals, and all pending applications therefor or renewals thereof, required or necessary for
the ownership, construction, development and operation of Business on the Properties by the Company and Buyer, and all permits
issued by the State of Georgia and Cobb County, Georgia, for the ownership, operation, development and construction of the Business
on the Properties, such Consents, licenses, Governmental Authorizations, permits and approvals to be in accordance with all Legal
Requirements and satisfactory to Buyer in its sole discretion, with respect to operating conditions, and any other restrictions
or requirements;

 

(g) Sellers shall have
caused the Company to terminate, without Liability to such Company or Buyer, all Excluded Contracts, or assign all Excluded Contracts
to Sellers or any third party;

 

    	 	-32-	 

     

    

 

(h) On or before the
Closing, Sellers shall file for and obtain in the name of the Company all the necessary Governmental Authorizations from any Governmental
Body (collectively the “Approvals”) having jurisdiction over the Properties, or the Business, in order for the
Permits to be issued to the Company. Sellers covenant to use good faith and due diligence to actively pursue the Approvals. Sellers
shall execute any additional agent authorization documentation and any other document, instrument or certificate specifically required
by any Governmental Body to permit the Company to obtain the Permits and Approvals;

 

(i) Sellers shall have
delivered to Buyer a certificate to the effect that each of the conditions specified above in Section 6.1(a)-(h)
is satisfied in all respects;

 

(j) Sellers shall have
delivered to Buyer a Closing Statement and accompanying loan payoff statements showing any and all Retained Liabilities of the
Company which such Retained Liabilities shall be paid and satisfied within 90 days of Closing in accordance with Section 2.4
(the “Closing Statement”);

 

(k) Buyer shall have
received the resignations, effective as of the Closing, of each officer, director, employee, manager or member of the Company other
than those whom Buyer shall have specified in writing on or prior to Closing, and all required notices of such resignations shall
have been provided, Buyer shall have received from each such employee, officer, directors, manager or member a release of the Company
and Buyer in the form substantially the same as the release provided by the Sellers in Section 5.12;

 

(l) Sellers shall have
executed and delivered to Buyer a non-competition, non-solicitation, and confidentiality agreement that, among other things, prevents
Sellers and their Related Persons from competing with the Buyer and the Company or the Business of the Company and the business
of Buyer within a 100 mile radius of each of the Properties for a period of two (2) years following the Closing Date, substantially
in the form attached hereto as Schedule 6.1(l) (the “Restrictive Covenants Agreement”);

 

(m) If applicable,
Sellers shall have delivered to Buyer a non-foreign affidavit dated as of the Closing Date, sworn under penalty of perjury and
in form and substance required under the Treasury Regulations issued pursuant to Code Section 1445, stating that each Seller is
not a “Foreign Person” as defined in Code Section 1445 (the “FIRPTA Affidavit”);

 

(n) Sellers shall have
delivered to Buyer (i) a copy of the articles of organization of the Company certified on or soon before the Closing Date by the
Secretary of State (or comparable officer) of the jurisdiction of organization of the Company, (ii) a certificate of good standing
for the Company issued on or soon before the Closing Date by the Secretary of State (or comparable officer) of the jurisdiction
of organization of the Company and of each jurisdiction in which the Company is qualified to do business, (iii) the minute books
and all corporate records of the Company and (iv) all other Organizational Documents;

 

(o) Sellers shall have
delivered to Buyer a certificate of the secretary or an assistant secretary of the Company, dated the Closing Date, in form and
substance reasonably satisfactory to Buyer, certifying as to (i) no amendments to the articles of organization or other Organizational
Documents of the Company since Effective Date; and (ii) any resolutions of the members of the Company relating to this Agreement
and the Contemplated Transactions;

 

(p) Buyer shall have
executed employment agreements with Locke and Lewis substantially in the form of attached hereto as Schedule 6.1(p)(i)
and Employment Agreements with such other key employees the Company of Buyer’s choosing substantially in the form attached
hereto as Schedule 6.1(p)(ii);

 

(q) Richie Stephens
shall have executed and delivered to Buyer and the Company a certificate in the form of Schedule 6.1(q); and,

 

(r) all actions to
be taken by Sellers in connection with Contemplated Transactions and all certificates, opinions, instruments, and other documents
required to effect the Contemplated Transaction shall be reasonably satisfactory in form and substance to Buyer.

 

Buyer may waive any condition
specified in this Section 6.1 if it executes a writing so stating at or prior to the Closing.

 

    	 	-33-	 

     

    

 

6.2 Conditions to
Obligation of Sellers to Close. The obligation of Sellers to consummate the transactions to be performed by them in connection
with the Closing is subject to satisfaction of the following conditions:

 

(a) the representations
and warranties of Buyer and Parent set forth in Section 3.2 shall be true and correct in all material respects at and as
of the Closing Date, except to the extent that such representations and warranties are qualified by terms such as “material”
and “Material Adverse Effect,” in which case such representations and warranties shall be true and correct in all respects
at and as of the Closing Date;

 

(b) Buyer and Parent
shall have performed and complied with all of their covenants hereunder in all material respects through the Closing;

 

(c) no action, suit,
or proceeding shall be pending before any court or quasi-judicial or administrative agency of any federal, state, local, or foreign
jurisdiction or before any arbitrator wherein an unfavorable injunction, judgment, order, decree, ruling, or charge would (i) prevent
consummation of any of the transactions contemplated by this Agreement or (ii) cause any of the transactions contemplated by this
Agreement to be rescinded following consummation (and no such injunction, judgment, order, decree, ruling, or charge shall be in
effect);

 

(d) Buyer and Parent
shall have delivered to Sellers a certificate to the effect that each of the conditions specified above in Section 6.2(a)-(c)
is satisfied in all respects;

 

(e) all actions to be
taken by Buyer or Parent in connection with consummation of the Contemplated Transactions and all certificates, opinions, instruments,
and other documents required to effect the Contemplated Transactions will be reasonably satisfactory in form and substance to Sellers;

 

(f) Buyer and Parent
shall have delivered to Sellers (i) a copy of the articles of incorporation of the Buyer and Parent certified on or soon before
the Closing Date by the Secretary of State (or comparable officer) of the jurisdiction of organization of the Buyer and Parent,
(ii) a certificate of good standing for the Buyer and Parent issued on or soon before the Closing Date by the Secretary of State
(or comparable officer) of the jurisdiction of organization of the Buyer and of each jurisdiction in which the Buyer is qualified
to do business, (iii) the minute books and all corporate records of the Buyer and (iv) all other Organizational Documents of Buyer;
and,

 

(g) Buyer and Parent
shall have delivered to Sellers a certificate of the secretary or an assistant secretary of the Buyer and Parent, dated the Closing
Date, in form and substance reasonably satisfactory to Sellers, certifying as to (i) no amendments to the articles of organization
or other Organizational Documents of the Buyer since Effective Date; and (ii) any resolutions of the members of the Buyer and Parent
relating to this Agreement and the Contemplated Transactions.

 

Sellers may waive any
condition specified in this Section 6.2 if Sellers execute a writing so stating at or prior to the Closing.

 

SECTION 7

INDEMNIFICATION

 

7.1 Survival.
Subject to the provisions of this Section 7, all representations, warranties, covenants and obligations of the Parties contained
in this Agreement and in the agreements, instruments and other documents delivered pursuant to this Agreement will survive the
Closing and the consummation of the Contemplated Transactions.

 

    	 	-34-	 

     

    

 

7.2 Indemnification
by Buyer and Parent. Buyer and Parent hereby covenant and agree that, to the fullest extent permitted by Legal Requirement,
it will defend, indemnify and hold harmless Sellers and their Related Persons and Representatives, and their respective officers,
directors, members, managers, employees, agents, and Representatives, and all successors and assigns of the foregoing (collectively,
the “Seller Indemnified Persons”), for, from and against any Adverse Consequences, arising from or in connection
with:

 

(a) any Breach of any
representation or warranty made by Buyer or Parent (i) in this Agreement, (ii) the Schedules, (iii) the certificates delivered
pursuant to this Agreement, or (iv) any other document, writing or instrument delivered by Buyer or Parent pursuant to this Agreement;

 

(b) any Breach of any
covenant, obligation or agreement of Buyer or Parent in this Agreement or in any other certificate, document, writing or instrument
delivered by Buyer or Parent pursuant to this Agreement;

 

(c) any claim by any
Person for any brokerage or finder’s fee, commission or similar payment based upon any agreement or understanding made, or
alleged to have been made, by any Person with Buyer or Parent in connection with this Agreement or any of the Contemplated Transactions;
and,

 

(d) any Liability of
the Company based on facts, events or circumstances occurring after the Closing Date, or arising out of or in connection with the
ownership and operation of the Company and the Assets and Business after the Closing.

 

7.3 Indemnification
by Sellers.

 

(a) Each Seller, severally,
hereby covenants and agrees that, to the fullest extent permitted by Legal Requirement, such Seller will defend, indemnify and
hold harmless Buyer, and its Related Persons and Representatives, and their respective officers, directors, members, managers,
employees, agents, and Representatives, and all successors and assigns of the foregoing (collectively, the “Buyer Indemnified
Persons”), for, from and against any Adverse Consequences arising from or in connection with:

 

(i) any Breach of any
representation or warranty made by such Seller in (A) this Agreement, (B) the Schedules, (C) the certificates delivered pursuant
to this Agreement, (D) any transfer instrument or (E) any other certificate, document, writing or instrument delivered by such
Seller pursuant to this Agreement;

 

(ii) any Breach of
any covenant, obligation or agreement of such Seller in this Agreement or in any other certificate, document, writing or instrument
delivered by such Seller pursuant to this Agreement;

 

(iii) any Liability
of the Company based on facts, events or circumstances occurring before the Closing Date, or arising out of or in connection with
the ownership and operation of the Company and the Assets and Business prior to the Closing, or facts and circumstances relating
specifically to the Company and the Business existing at or prior to the Closing, respectively, whether or not such Liabilities
or claims were known or unknown, absolute, accrued or contingent, on such date;

 

(iv) all Current Seller
Liabilities and any Liability or Indebtedness of the Company not reflected on Schedule 2.4 or the Closing Statement,
but excluding the Bank Loans;

 

(v) all Retained Liabilities;

 

(vi) all Current Litigation
Matters:

 

(vii) any Liability
of the Company to Sellers or any Related Person of Sellers;

 

(viii) any Liability
of the Company resulting from, caused by, or arising in connection with the termination or assignment of any Excluded Contract;
and

 

    	 	-35-	 

     

    

 

(ix) any claim by any
Person for any brokerage or finder’s fee, commission or similar payment based upon any agreement or understanding alleged
to have been made by such Person with any Seller in connection with this Agreement or any of the Contemplated Transactions.

 

(b) In addition to its
indemnification obligations under Section 7.3(a), Sellers hereby covenant and agree that, to the fullest extent permitted
by Legal Requirement, they will defend, indemnify and hold harmless the Buyer Indemnified Persons for, from and against any Adverse
Consequences (including costs of cleanup, containment or other Remedial Action) arising out of acts or neglect occurring or conditions
existing at or before Closing from or in connection with:

 

(i) any Environmental,
Health and Safety Liabilities arising out of or relating to (A) the conduct of any activity by Sellers, the Company, or their Related
Persons, or any employee, contractor, agent or Representative thereof on or prior to the Closing Date, or relating to the Business
and Assets, including the Properties, of the Company; (B) the ownership or operation by any Person at any time on or prior to the
Closing Date of any of the Assets, including the Properties, or the Business of the Company, or (C) any Hazardous Materials or
other contaminants that were present on the Properties or Assets at any time on or prior to the Closing Date; or

 

(ii) any bodily injury
(including illness, disability or death, regardless of when such bodily injury occurred, was incurred or manifested itself), personal
injury, property damage (including trespass, nuisance, wrongful eviction and deprivation of the use of real property) or other
damage of or to any Person or any Asset, including the Properties, in any way arising from or allegedly arising from (A) any Hazardous
Activity conducted by Sellers, the Company or their Related Persons or any employee, contractor, agent or Representative thereof,
or any other Person, with respect to the Business or the Assets, including the Properties at any time on or prior to the Closing
Date; or (B) from any Hazardous Material that was (1) present or suspected to be present on or before the Closing Date on or at
the Properties (or present or suspected to be present on any other property, if such Hazardous Material emanated or allegedly emanated
from any Property and was present or suspected to be present on any Property, on or prior to the Closing Date) or (2) Released
or allegedly Released by such Seller, the Company or their Related Persons, or any Person, on or at any of the Properties or Assets
at any time on or prior to the Closing Date.

 

Buyer, either directly
or through the Company, will be entitled to control any Remedial Action, any Proceeding relating to a claim that any Environmental
Law has been violated and any other Proceeding with respect to which indemnity may be sought under this Section 7.3(b).

 

7.4 Limitations.

 

(a) For purposes of this
Agreement, a Buyer Indemnified Person may only assert a claim for indemnification under Section 7 during the applicable
period of time (the “Buyer Claims Period”) specified as follows:

 

(i) with respect to
any claim arising out of (A) the Breach by such Seller of any representation, warranty, covenant or agreement contained in this
Agreement or in any other agreement or instrument executed and delivered by any such Seller pursuant hereto relating to (1) such
Seller’s authority or ability to enter into this Agreement, any related agreement and to consummate the Contemplated Transactions,
(2) Sellers’ title to the Membership Interests of the Company being sold by him pursuant hereto and its ability to transfer
the same to Buyer free and clear of all Liens, (3) the Company’s title to the Assets and Properties owned by Company free
and clear of all Liens, except for the liens created by the Bank Loans set forth in Section 2.4, which will continue to
be liabilities of the Company or (4) any Tax-related matter, (B) fraud, willful misrepresentation or willful misconduct, , (C)
any Current Seller Liability or Retained Liability, (D) any Liability for any Current Litigation Matter or any Liability that is
not included on Schedule 2.4 or the Closing Statement, or (E) any indemnification clam made under Section 7.3(b)
or pursuant to a Breach by such Seller of the representations and warranties set forth in Section 4.25, the Buyer Claims
Period will commence on the date of this Agreement and continue until the date that is four (4) years after the Closing Date; and

 

    	 	-36-	 

     

    

 

(ii) with respect to
any other indemnification claim made under Section 7.3 the Buyer Claims Period will commence on the date of this Agreement
and continue until the date that is two (2) years after the Closing Date; provided, however, that with respect to
any such indemnification claim regarding the Breach by Sellers of any obligation hereunder or under any related agreement that
is intended to survive and continue after the Closing, the Buyer Claims Period will continue for as long as such obligation is
outstanding.

 

(b) For purposes of this
Agreement, a Seller Indemnified Person may only assert a claim for indemnification under Section 7.2 during the applicable
period of time (the “Seller Claims Period”) commencing on the date of this Agreement and continuing until the
date that is six (6) years after the Closing Date; provided, however, that with respect to any such indemnification
claim regarding the Breach by Buyer of any obligation hereunder or under any related agreement that is intended to survive and
continue after the Closing, the Seller Claims Period will continue for as long as such obligation is outstanding.

 

Notwithstanding anything
to the contrary in this Section 7.4, if before 5:00 p.m. (eastern time) on the last day of the applicable Buyer Claims Period
or Seller Claims Period, any Party against which an indemnification claim has been made hereunder has been properly notified in
writing of such claim for indemnity hereunder and the basis thereof, including with reasonable supporting details for such claim
(to the extent then known), and such claim has not been finally resolved or disposed of as of such date, then such claim will continue
to survive and will remain a basis for indemnity hereunder until such claim is finally resolved or disposed of in accordance with
the terms of this Agreement.

 

(c) Sellers shall not
have any liability for Adverse Consequences: unless and until all claims for Adverse Consequences made by the Buyer Indemnified
Persons aggregate at least Five Thousand Dollars ($5,000) (the “Basket”), in which case the Buyer Indemnified
Persons shall be eligible for indemnification for Adverse Consequences in excess of the Basket. A Seller may satisfy his indemnification
obligations, in his sole discretion, in whole or in part, by surrendering to the Purchaser one or more Purchase Price Shares, which
shall be valued at the per share value of such shares as of the date same were originally issued to such Seller (subject to appropriate
adjustment for any stock split, stock dividend, reclassification or combination after the Closing) for purposes of indemnification.

 

7.5
Payment of Claims. A claim for indemnification may be asserted by written notice to the Party from whom indemnification
is sought and will be paid promptly after such notice, together
with satisfactory proof of Adverse Consequences or other documents evidencing the basis of the Adverse Consequences sought, are
received.

 

7.6 Third-Party
Claims.

 

(a) No later than ten
(10) Business Days after receipt by a Person entitled to indemnity under Section 7.2 or 7.3 or 2.4 (an “Indemnified
Person”) of notice of the assertion of a Third-Party Claim against it, such Indemnified Person shall give notice to the
Person obligated to indemnify under such section (an “Indemnifying Person”) of the assertion of such Third-Party
Claim and a copy of any writing by which such Third-Party assertion is made. The failure to notify the Indemnifying Person will
relieve the Indemnifying Person of any liability that it may have to any Indemnified Person to the extent that the Indemnifying
Person demonstrates that the defense of such Third-Party Claim is materially prejudiced by the Indemnified Person’s failure
to give such notice.

 

    	 	-37-	 

     

    

 

(b) If an Indemnified
Person gives notice to the Indemnifying Person pursuant to Section 7.6(a) of the assertion of a Third-Party Claim, the Indemnifying
Person shall be entitled to participate in the defense of such Third-Party Claim and, to the extent that it wishes (unless (i)
the Indemnifying Person is also a Person against whom the Third-Party Claim is made and the Indemnified Person determines in good
faith that joint representation would be inappropriate or (ii) the Indemnifying Person fails to provide reasonable assurance to
the Indemnified Person of its financial capacity to defend such Third-Party Claim and provide indemnification with respect to such
Third-Party Claim), to assume the defense of such Third-Party Claim with counsel reasonably satisfactory to the Indemnified Person
(provided, such counsel has appropriate experience in the subject matter relating to the claim). After notice from the Indemnifying
Person to the Indemnified Person of its election to assume the defense of such Third-Party Claim, the Indemnifying Person shall
not, so long as it diligently conducts such defense, be liable to the Indemnified Person under this Section 7.6(b) for any
fees of other counsel or any other expenses with respect to the defense of such Third-Party Claim, in each case subsequently incurred
by the Indemnified Person in connection with the defense of such Third-Party Claim. If the Indemnifying Person assumes the defense
of a Third-Party Claim, (i) such assumption will conclusively establish for purposes of this Agreement that the claims made in
that Third-Party Claim are within the scope of and subject to indemnification, and (ii) no compromise or settlement of such Third-Party
Claims may be effected by the Indemnifying Person without the Indemnified Person’s Consent unless: (A) there is no finding
or admission of any violation of Legal Requirement or any violation of the rights of any Person; (B) the sole relief provided is
monetary damages that are paid in full by the Indemnifying Person; and (C) the Indemnified Person shall have no liability with
respect to any compromise or settlement of such Third-Party Claims effected without its Consent. If notice is given to an Indemnifying
Person of the assertion of any Third-Party Claim and the Indemnifying Person does not, within ten (10) days after the Indemnified
Person’s notice is given, give notice to the Indemnified Person of its election to assume the defense of such Third-Party
Claim, the Indemnifying Person will be bound by any determination made in such Third-Party Claim or any compromise or settlement
effected by the Indemnified Person.

 

(c) Notwithstanding
the foregoing, if an Indemnified Person determines in good faith that there is a reasonable probability that a Third-Party Claim
may adversely affect it or its Related Persons other than as a result of monetary damages for which it would be entitled to indemnification
under this Agreement, the Indemnified Person may, by notice to the Indemnifying Person, assume the exclusive right to defend, compromise
or settle such Third-Party Claim, but the Indemnifying Person will not be bound by any determination of any Third-Party Claim so
defended for the purposes of this Agreement or any compromise or settlement effected without its Consent (which may not be unreasonably
withheld).

 

Sellers hereby consent
to the nonexclusive jurisdiction of any court in which a Proceeding in respect of a Third-Party Claim is brought against any Buyer
Indemnified Person for purposes of any claim that a Buyer Indemnified Person may have under this Agreement with respect to such
Proceeding or the matters alleged therein and agree that process may be served on Sellers with respect to such a claim anywhere
in the world.

 

(e) With respect to any
Third-Party Claim subject to indemnification under this Section 7 and Section 2.4: (i) both the Indemnified Person
and the Indemnifying Person, as the case may be, shall keep the other Person fully informed of the status of such Third-Party Claim
and any related Proceedings at all stages thereof where such Person is not represented by its own counsel; and (ii) the parties
agree (each at its own expense) to render to each other such assistance as they may reasonably require of each other and to cooperate
in good faith with each other in order to ensure the proper and adequate defense of any Third-Party Claim.

 

(f) With respect to any
Third-Party Claim subject to indemnification under this Section 7 and Section 2.4, the parties agree to cooperate
in such a manner as to preserve in full (to the extent possible) the confidentiality of all Confidential Information and the attorney-client
and work-product privileges. In connection therewith, each party agrees that: (i) it will use its best efforts, in respect of any
Third-Party Claim in which it has assumed or participated in the defense, to avoid production of Confidential Information (consistent
with applicable law and rules of procedure); and (ii) all communications between any party hereto and counsel responsible
for or participating in the defense of any Third-Party Claim shall, to the extent possible, be made so as to preserve any applicable
attorney-client or work-product privilege.

 

7.7 Notwithstanding
anything to the contrary contained in this Agreement, Buyer and Parent may deduct from the Purchase Price, on a dollar for dollar
basis, the amount of any Adverse Consequences incurred by any of the Buyer Indemnified Parties for which the Buyer Indemnified
Parties are entitled to indemnification pursuant to this Section 7;provided, however, the Buyer and Parent shall not be entitled
to make such deduction as long as the Sellers are defending such Adverse Consequences in accordance with Section 7.6 of this Agreement.

 

    	 	-38-	 

     

    

 

SECTION 8

TAX MATTERS

 

The following provisions
shall govern the allocation of responsibility as between Buyer and Sellers for certain tax matters following the Closing Date:

 

8.1 Tax Indemnification.
Sellers shall indemnify the Company, Buyer, and each Related Person of Buyer and hold them harmless from and against, without duplication,
any loss, claim, liability, expense, or other damage attributable to (a) all Taxes (or the non-payment thereof) of the Company
for all Taxable periods ending on or before the Closing Date and the portion through the end of the Closing Date for any Taxable
period that includes (but does not end on) the Closing Date (“Pre-Closing Tax Period”), and (b) any and all
Taxes of any Person (other than the Company) imposed on the Company as a transferee or successor, by contract or pursuant to any
law, rule, or regulation, which Taxes relate to an event or transaction occurring before the Closing. Sellers shall reimburse Buyer
for any Taxes of the Company which are the responsibility of such Seller or the Company pursuant to this Section 8.1 within
fifteen (15) business days after payment of such Taxes by Buyer or the Company. Buyer shall indemnify such Sellers and hold them
harmless from and against any loss, claim, liability, expense or other damage attributable to all Taxes (or the non-payment thereof)
for all Taxable Periods commencing after the Closing Date and Buyer’s failure to timely file complete and accurate Tax Returns
pursuant to Section 8.3.

 

8.2 Straddle Period.
In the case of any Taxable period that includes (but does not end on) the Closing Date (a “Straddle Period”),
the amount of any Taxes based on or measured by income or receipts of the applicable Company for the Pre-Closing Tax Period shall
be determined based on an interim closing of the books as of the close of business on the Closing Date and the amount of other
Taxes of the applicable Company for a Straddle Period which relate to the Pre-Closing Tax Period shall be deemed to be the amount
of such Tax for the entire Taxable period multiplied by a fraction the numerator of which is the number of days in the Taxable
period ending on the Closing Date and the denominator of which is the number of days in such Straddle Period.

 

8.3 Responsibility
for Filing Tax Returns. Sellers shall prepare or cause to be prepared at Sellers’ cost and file or cause
to be filed the income Tax Returns related to the Pre-Closing Period, but shall provide a copy of such return to Buyer at least
ten (10) days prior to the filing deadline and give Buyer an opportunity to provide comments with respect to such Tax Returns.
Buyer shall prepare or caused to be prepared at Buyer's cost and file or caused to be filed all other Tax Returns for the Company
which are filed after the Closing Date.

 

8.4 Cooperation
on Tax Matters.

 

(a) Buyer and its Related
Persons and Sellers and their Related Persons shall cooperate fully, as and to the extent reasonably requested by the other Party,
in connection with the filing of Tax Returns pursuant to Section 8.3 and any audit, litigation or other proceeding with
respect to Taxes. Such cooperation shall include the retention and (upon the other Party’s request) the provision of records
and information which are reasonably relevant to any such audit, litigation or other proceeding and making employees available
on a mutually convenient basis to provide additional information and explanation of any material provided hereunder. Buyer (and
Buyer shall cause the Company), and Sellers agree (i) to retain all books and records with respect to Tax matters pertinent to
the Company relating to any taxable period beginning before the Closing Date until the expiration of the statute of limitations
(and, to the extent notified by Buyer or Sellers, any extensions thereof) of the respective taxable periods, and to abide by all
record retention agreements entered into with any taxing authority, and (ii) to give the other Party reasonable written notice
prior to transferring, destroying or discarding any such books and records and, if the other Party so requests, Sellers and Buyer
shall cause the Company to, as the case may be, shall allow the other Party to take possession of such books and records.

 

(b) Buyer and Sellers
further agree, upon request, to use their best efforts to obtain any certificate or other document from any governmental authority
or any other Person as may be necessary to mitigate, reduce or eliminate any Tax that could be imposed (including, but not limited
to, with respect to the transactions contemplated hereby).

 

(c) Buyer and Sellers
further agree, upon request, to provide the other party with all information that either party may be required to report pursuant
to Code Section 6043 and all Treasury Regulations promulgated thereunder.

 

(d) The parties hereto
agree that the issuance of the Purchase Price Shares in exchange for the Membership Interests in the Company constitutes a tax-free
exchange under Code Section 368 and shall file all tax returns accordingly and shall not take any contrary position in any Tax
return or Tax Proceeding.

 

    	 	-39-	 

     

    

 

8.5 Tax Sharing
Agreements. All Tax sharing agreements or similar agreements with respect to or involving the Company shall be terminated as
of the Closing Date and, after the Closing Date, the Company shall not be bound thereby or have any liability or right to any benefit
thereunder with respect to any period.

 

8.6 Certain Taxes
and Fees. Except as otherwise provided in this Agreement, all transfer, documentary, sales, use, stamp, registration and other
such Taxes, and all conveyance fees, recording charges and other fees and charges (including any penalties and interest) incurred
in connection with consummation of the transactions contemplated by this Agreement shall be paid shared by the Buyer and the Sellers
and paid when due, and Sellers will, at Sellers own expense file all necessary Tax Returns and other documentation to be filed
by the Sellers with respect to all such Taxes, fees and charges, and, if required by applicable law, Buyer will, and will cause
its Related Persons to, join in the execution of any such Tax Returns and other documentation.

 

8.7 Refunds and
Tax Benefits. Any Tax refunds that are received by Buyer or the Company, and any amounts credited against Tax to which the
Buyer or the Company become entitled, that relate to Pre-Closing Tax Periods shall be for the account of the Sellers, and, so long
as no default or deficiency is then due from Sellers to Buyer under Section 7 and Section 8, Buyer shall pay over
to Sellers any such refund or the amount of any such credit within fifteen (15) days after receipt or entitlement thereto.

 

8.8 Transaction Related
Taxes. All local, state and federal taxes due or becoming due as a result of the transactions contemplated hereby shall be
paid by Sellers.

 

Section
9

MISCELLANEOUS

 

9.1 Expenses.
Each of Buyer and Sellers will bear their own costs and expenses (including legal fees and expenses) incurred in connection with
this Agreement and the Contemplated Transaction, and Sellers shall also bear the costs and expenses of the Company (including all
of their legal fees and expenses) in connection with this Agreement and the Contemplated Transactions. Sellers shall also bear
the costs and expenses incurred solely in connection with the transfer of the Membership Interests to Buyer, if any. Sellers shall
be responsible for all federal and state income or similar taxes imposed on Sellers as a result of the Contemplated Transaction
hereby.

 

9.2 Notices.
All notices, requests, demands, claims and other communications permitted or required to be given hereunder must be in writing
and will be deemed duly given and received (i) if personally delivered, when so delivered, (ii) if mailed, three (3)
Business Days after having been sent by registered or certified mail, return receipt requested, postage prepaid and addressed to
the intended recipient as set forth below, (iii) if sent by electronic facsimile, once transmitted to the fax number specified
below and the appropriate telephonic confirmation is received, provided that a copy of such notice, request, demand, claim or other
communication is promptly thereafter sent in accordance with the provisions of clause (ii) or (v) hereof, (iv) by electronic mail
(otherwise known as “e-mail”), or (v) if sent through an overnight delivery service in circumstances to
which such service guarantees next day delivery, the Business Day following being so sent:

 

(a) To Buyer:

 

Mobile Science Technologies,
Inc.

One Glenlake Parkway,
NE

Suite 900

Atlanta Georgia 30328

Attn: Jeffrey S. Cosman

Email: jsc@jscosinc.com

Phone: (724) 799-4305

 

with a copy
(which will not constitute valid delivery to Buyer) to:

 

Richard J.
Dreger, Attorney at Law, P.C.

11660 Alpharetta
Highway

Building 700,
Suite 730

Roswell, Georgia
30076

Attn: Richard
J. Dreger, Esq.

Email: Rick@rdregerlaw.com

Phone: (678)
566-6901

 

    	 	-40-	 

     

    

 

(b) To Parent:

 

Meridian Waste Solutions,
Inc.

One Glenlake
Parkway, NE

Suite 900

Atlanta Georgia
30328

Attn: Jeffrey
S. Cosman

Email: jsc@jscosinc.com

Phone: (724)
799-4305

 

with a copy
(which will not constitute valid delivery to (Parent) to:

 

Richard J.
Dreger, Attorney at Law, P.C.

11660 Alpharetta
Highway

Building 700,
Suite 730

Roswell, Georgia
30076

Attn: Richard
J. Dreger, Esq.

Email: Rick@rdregerlaw.com

Phone: (678)
566-6901

 

(c) To Sellers:

 

Jefferson Patrick
Locke

255 Hardage
Drive, S.W.

Marietta, GA
30064

Email: jlocke@redxmedical.com

Phone: (678)
409-4440

 

with a copy
(which will not constitute valid delivery to Locke) to:

 

Moore Ingram
Johnson & Steele LLP

326 Roswell
Street

Marietta, Georgia
30060

Attn: Clayton
Owen Carmack, Esq.

Email: coc@mijs.com

Phone: (770)
429-1499

 

Jonathan Moore
Lewis

416 Westlake
Court

Marietta, GA
30064

Email: jlewis@redxmedical.com

Phone: (404)
771-5802

 

with a copy
(which will not constitute valid delivery to Lewis) to:

 

Moore Ingram
Johnson & Steele LLP

326 Roswell
Street

Marietta, Georgia
30060

Attn: Clayton
Owen Carmack, Esq.

Email: coc@mijs.com

Phone: (770)
429-1499

 

Either Party may give
any notice, request, demand, claim or other communication hereunder using any other means (including, without limitation, electronic
mail), but no such notice, request, demand, claim or other communication will be deemed to have been duly given or received unless
and until it actually is received by the Party for which it is intended and the notifying Party can provide evidence of such actual
receipt. Either Party may change its address for the receipt of notices, requests, demands, claims and other communications hereunder
by giving the other Party notice of such change in the manner herein set forth.

 

    	 	-41-	 

     

    

 

9.3 Waiver; Remedies
Cumulative. The rights and remedies of the Parties are cumulative and not alternative. Neither any failure nor any delay by
any Party in exercising any right, power or privilege under this Agreement or any of the documents referred to in this Agreement
will operate as a waiver of such right, power or privilege, and no single or partial exercise of any such right, power or privilege
will preclude any other or further exercise of such right, power or privilege or the exercise of any other right, power or privilege.
To the maximum extent permitted by Legal Requirement: (a) no claim or right arising out of this Agreement or any of the documents
referred to in this Agreement can be discharged by one Party, in whole or in part, by a waiver or renunciation of the claim or
right unless in writing signed by another Party; (b) no waiver that may be given by a Party will be applicable except in the specific
instance for which it is given; and (c) no notice to or demand on one Party will be deemed to be a waiver of any obligation of
that Party or of the right of the Party giving such notice or demand to take further action without notice or demand as provided
in this Agreement or the documents referred to in this Agreement.

 

9.4 Entire Agreement
and Modification. This Agreement (including the Schedules and Exhibits hereto and the other agreements and instruments to be
executed and delivered by the Parties pursuant hereto) constitutes the entire and final agreement among the Parties with respect
to the subject matter hereof, and supersedes and replaces all prior agreements, understandings, commitments, communications and
representations made among the Parties, whether written or oral, with respect to the subject matter hereof. This Agreement may
not be amended, supplemented, or otherwise modified except by a written agreement executed by the Parties.

 

9.5 Assignments;
Successors; No Third-Party Rights. No Party may assign any of its rights or delegate or cause to be assumed any of its obligations
under this Agreement without the prior written consent of each other Party, except that Buyer may assign any of its rights hereunder
to, and cause all of its obligations hereunder to be assumed by, any Related Person without the consent of Sellers, provided that
Buyer shall remain liable for such obligations. Subject to the preceding sentence, this Agreement will apply to, be binding in
all respects upon and inure to the benefit of the successors and permitted assigns of the Parties. Nothing expressed or referred
to in this Agreement will be construed to give any Person other than the Parties any legal or equitable right, remedy or claim
under or with respect to this Agreement or any provision of this Agreement, except such rights as will inure to a successor or
permitted assignee pursuant to this Section 9.5. Notwithstanding anything to the contrary in this Section 9.5
or otherwise, Buyer shall at all times have all rights and remedies granted to Buyer pursuant to Section 5.6.

 

9.6 Severability.
If any provision of this Agreement, or the application of any such provision to any Person or circumstance, is held to be unenforceable
or invalid by any Governmental Body or arbitrator or under any Legal Requirement, the Parties will negotiate an equitable adjustment
to the provisions of this Agreement with the view to effecting, to the greatest extent possible, the original purpose, intent and
commercial effect of such provision and of this Agreement. In any event, the invalidity of any provision of this Agreement or portion
of a provision will not affect the validity of any other provision of this Agreement or the remaining portion of the applicable
provision.

 

9.7 Dates and Times.
Dates and times set forth in this Agreement for the performance of the Parties’ respective obligations hereunder or for the
exercise of their rights hereunder will be strictly construed, time being of the essence of this Agreement. All provisions in this
Agreement which specify or provide a method to compute a number of days for the performance, delivery, completion or observance
by any Party of any action, covenant, agreement, obligation or notice hereunder will mean and refer to calendar days, unless otherwise
expressly provided. Except as expressly provided herein, the time for performance of any obligation or taking any action under
this Agreement will be deemed to expire at 5:00 p.m. (eastern time) on the last day of the applicable time period provided for
herein. If the date specified or computed under this Agreement for the performance, delivery, completion or observance of a covenant,
agreement, obligation or notice by any Party, or for the occurrence of any event provided for herein, is a day other than a Business
Day, then the date for such performance, delivery, completion, observance or occurrence will automatically be extended to the next
Business Day following such date.

 

    	 	-42-	 

     

    

 

9.8 Governing Law.
This Agreement will be governed by and construed under the laws of the State of Georgia without regard to conflicts-of-laws principles
that would require the application of any other law.

 

9.9 Dispute Resolution.

 

(a) Any dispute or difference
between or among any of the Parties arising out of or in connection with this Agreement or the Contemplated Transactions, including
without limitation any dispute for indemnification under Section 2.4, Section 7 or 8, which such Parties are unable to resolve
themselves shall be submitted to and resolved by arbitration before a single arbitrator, for amounts in dispute under Two Hundred
Thousand and 00/100 Dollars ($200,000.00) and otherwise before a panel of three (3) arbitrators, which arbitration shall be governed
by and enforceable under the Federal Arbitration Act, as supplemented or modified by the provisions of this Section 9.9.
The arbitrator(s) will consider the dispute at issue in Atlanta, Georgia within one hundred twenty (120) days (or such other period
as may be acceptable to the Parties to the dispute) of the designation of the arbitrator. The arbitrator(s) will deliver a written
award, including written findings of fact and conclusions of law, with respect to the dispute to each of the arbitrating Parties,
who will promptly act in accordance therewith. In no event will the arbitrator(s) have the power to award damages in connection
with any dispute in excess of actual compensatory damages. In particular, the arbitrator(s) may not multiply actual damages or
award consequential, indirect, special or punitive damages, including, without limitation, damages for lost profits or loss of
business opportunity. Any award of the arbitrator(s) will be final, conclusive and binding on the arbitrating Parties; provided,
however, that any such Party may seek the vacating, modification or correction of the arbitrator(s)’ decision or award as
provided under Section 10 and Section 11 of the Federal Arbitration Act 9 U.S.C. §1-14. Any Party to an arbitration
proceeding may enforce any award rendered pursuant to the arbitration provisions of this Section 9.9 by bringing suit in
any court of competent jurisdiction. All costs and expenses attributable to the arbitrator(s) will be allocated between the Parties
to the arbitration in such manner as the arbitrator(s) determine to be appropriate under the circumstances. Any Party may file
a copy of this Section 9.9 with any arbitrator or court as written evidence of the knowing, voluntary and bargained agreement
among the Parties with respect to the subject matter of this Section 9.9.

 

9.10 Execution of
Agreement. This Agreement may be executed in one or more counterparts, each of which will be deemed to be an original copy
and all of which, when taken together, will be deemed to constitute one and the same agreement. The exchange of copies of this
Agreement and of signature pages by facsimile transmission or electronic mail in PDF format will constitute effective execution
and delivery of this Agreement as to the Parties and may be used in lieu of the original Agreement for all purposes. Signatures
of the Parties transmitted by facsimile or by electronic mail in PDF format will be deemed to be their original signatures for
all purposes.

 

9.11 Specific Performance.
Sellers and Buyer acknowledge and agree that the other Parties would be damaged irreparably in the event any provision of this
Agreement is not performed in accordance with its specific terms or otherwise is breached, so that Sellers or Buyer shall be entitled
to injunctive relief to prevent breaches of this Agreement and to enforce specifically this Agreement and the terms and provisions
hereof in addition to any other remedy to which Sellers or Buyer may be entitled, at law or in equity. In particular, Sellers and
Buyer acknowledge that the Business of the Company is unique and recognize and affirm that in the event Sellers or Buyer Breach
this Agreement, money damages would be inadequate and Sellers or Buyer would have no adequate remedy at law, so that Sellers or
Buyer shall have the right, in addition to any other rights and remedies existing in its favor, to enforce its rights and obligations
hereunder not only by action for damages but also by action for specific performance, injunctive, and/or other equitable relief.

 

(See following page for
execution signatures)

 

    	 	-43-	 

     

    

 

IN WITNESS WHEREOF,
the Parties hereto have executed this Membership Interest Purchase Agreement as of the Effective Date, intending to be legally
bound.

 

	 	“BUYER” or “PURCHASER”:
	 	 
	 	MOBILE SCIENCE TECHNOLOGIES, INC.,
	 	a Georgia corporation
	 	 	 
	 	By:	/s/ Jeffrey S. Cosman                       
	 	 	Jeffrey S. Cosman, Vice President
	 	 
	 	“PARENT”:
	 	 
	 	MERIDIAN WASTE SOLUTIONS, INC.,
	 	a New York corporation
	 	 	 
	 	By:	/s/ Jeffrey S. Cosman
	 	 	Jeffrey S. Cosman, CEO
	 	 
	 	“SELLERS”:
	 	 
	 	/s/ Jefferson Patrick Locke
	 	Jefferson Patrick Locke, individually
	 	 
	 	/s/ Jonathan Moore Lewis
	 	Jonathan Moore Lewis, individually

 

    	 	-44-	 

     

    

 

SCHEDULE 1.1

DEFINED TERMS

 

“Accounts
Receivable” means (i) all trade and other accounts receivable and other rights to payment from past or present customers
of the Company, and the full benefit of all security for such accounts or rights to payment, including all trade and other accounts
receivable representing amounts receivable in respect of services rendered to customers of the Business, and (ii) any claim, remedy
or other right related to any of the foregoing.

 

“Adverse Consequences”
means all actions, suits, Proceedings, hearings, investigations, charges, complaints, claims, demands, diminutions in value, injunctions,
judgments, orders, decrees, rulings, damages, dues, penalties, fines, costs, amounts paid in settlement or claims, obligations,
Taxes, Liens, losses, interest, expenses (including costs of investigation and defense), any other Liability and fees, including
court costs and reasonable attorneys’ fees and expenses, whether or not involving a Third-Party Claim.

 

“Affiliated
Group” means any affiliated group within the meaning of Code Section 1504(a) or any similar group defined under a similar
provision of state, local or foreign law.

 

“Agreement”
has the meaning set forth in the preface.

 

“Approvals”
has the meaning set forth in Section 6.1(h).

 

“Assets”
has the meaning set forth in Section 4.7.

 

“Basis”
means any past or present fact, situation, circumstance, status, condition, activity, practice, plan, occurrence, event, incident,
action, failure to act, or transaction that forms or could form the basis for any specified consequence.

 

“Breach”
means any breach of, or any inaccuracy in, any representation or warranty or any breach of, or failure to perform or comply with,
any covenant, obligation or agreement, in or of this Agreement or any other Contract, agreement or instrument (whether or not related
to this Agreement), or in or of any corporate, company or partnership organizational document or agreement, any Governmental Authorization,
Order or Legal Requirement, or any other breach of any written instrument, or any event which with the passing of time or the giving
of notice, or both, would constitute such a breach, inaccuracy or failure.

 

“Business”
has the meaning set forth in the Background Facts.

 

“Business
Day” means any day other than a Saturday or Sunday or any other day on which banks in Georgia are permitted or required
by Legal Requirement to be closed.

 

“Buyer”
has the meaning set forth in the preface.

 

“Buyer Claims
Period” has the meaning set forth in Section 7.4(a).

 

“Buyer Indemnified
Persons” has the meaning set forth in Section 7.3.

 

    	 	-45-	 

     

    

 

“CERCLA”
has the meaning set forth in Section 4.25.

 

“Closing”
and “Closing Date” has the meaning set forth in Section 2.3.

 

“Closing Statement”
has the meaning set forth in Section 6.1(j).

 

“COBRA”
means the requirements of Part 6 of Subtitle B of Title I of ERISA and Code Section 4980B and of any similar state law.

 

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

 

“Combined Entities”
means the Company and each third party entity, primarily engaged in a business competitive with the Business, acquired by the Company
post-Closing for which Parent issued up to 25,000 shares of Parent’s common stock as part of the purchase price paid to allow
the Company to acquire such entity.

 

“Company”
has the meaning set forth in the Background Facts.

 

“Company Contracts”
has the meaning set forth in Section 4.18(a).

 

“Company Documents”
has the meaning set forth in Section 5.1.

 

“Confidential
Information” has the meaning set forth in Section 5.5(a).

 

“Consent”
means any approval, consent, ratification, waiver or other authorization.

 

“Contemplated
Transactions” means all of the transactions contemplated by this Agreement.

 

“Contract”
means any agreement, contract, license, lease, consensual obligation, promise or undertaking (whether written or oral and whether
express or implied), whether or not legally binding.

 

“Current Litigation
Matters” has the meaning set forth in Section 4.20.

 

“Current Seller
Liabilities” or “Current Seller Liability” has the meaning set forth in Section 2.4(a).

 

“Disclosure
Schedule” has the meaning set forth in the introductory paragraph to Section 4.

 

“Effective
Date” has the meaning set forth in the preface.

 

“Employee
Benefit Plan” means all “employee benefit plans” as defined by Section 3(3) of the Employee Retirement Income
Security Act of 1974 (“ERISA”), all specified fringe benefit plans as defined in Section 6039D of the Code,
and all other bonus, incentive-compensation, deferred-compensation, profit-sharing, stock-option, stock-appreciation-right, stock-bonus,
stock-purchase, employee-stock-ownership, savings, severance, change-in-control, supplemental-unemployment, layoff, salary-continuation,
retirement, pension, health, life-insurance, disability, accident, group-insurance, vacation, holiday, sick-leave, fringe-benefit
or welfare plan, and any other employee compensation or benefit plan, agreement, policy, practice, commitment, contract or understanding
(whether qualified or nonqualified, currently effective or terminated, written or unwritten) and any trust, escrow or other agreement
related thereto that (i) is maintained or contributed to by the Company or any other corporation or trade or business controlled
by, controlling or under common control with Sellers (within the meaning of Section 414 of the Code or Section 4001(a)(14)
or 4001(b) of ERISA) (“ERISA Affiliate”) or has been maintained or contributed to in the last six (6) years
by the Company or any ERISA Affiliate, or with respect to which the Company or any ERISA Affiliate has or may have any liability,
and (ii) provides benefits, or describes policies or procedures applicable to any current or former director, officer, employee
or service provider of the Company or any ERISA Affiliate, or the dependents of any thereof, regardless of how (or whether) liabilities
for the provision of benefits are accrued or assets are acquired or dedicated with respect to the funding thereof.

 

    	 	-46-	 

     

    

 

“Employee
Welfare Benefit Plan” has the meaning set forth in ERISA Section 3(1).

 

“Environment”
means soil, land surface or subsurface strata, surface waters, groundwaters, drinking water supply, stream sediments, ambient air
(including indoor air), plant and animal life and any other environmental medium or natural resource.

 

“Environmental,
Health and Safety Liabilities” means any and all costs, damages, Adverse Consequences, expenses, Liabilities and/or other
responsibility arising from or under any Environmental Law or Occupational Safety and Health Law, including those consisting of
or relating to (i) any environmental, health or safety matter or condition (including on-site or off-site contamination, and/or
occupational safety and health regulation of any chemical substance or product), (ii) any fine, penalty, judgment, award, settlement,
Proceeding, damages, Adverse Consequence, loss, claim, demand or response, remedial or inspection cost or expense arising under
any Environmental Law or Occupational Safety and Health Law, (iii) financial responsibility under any Environmental Law or Occupational
Safety and Health Law for cleanup costs or corrective action, including any cleanup, removal, containment or other remediation
or response actions (“Cleanup”) required by any Environmental Law or Occupational Safety and Health Law (whether
or not such Cleanup has been required or requested by any Governmental Body or any other Person) and for any natural resource damages,
and/or (iv) any other compliance, corrective or remedial measure required under any Environmental Law or Occupational Safety and
Health Law. For purposes of this definition, the terms “removal,” “remedial” and “response action”
include the types of activities covered by the United States Comprehensive Environmental Response, Compensation and Liability Act
of 1980 (CERCLA).

 

“Environmental
Law” means any Legal Requirement that requires or relates to (i) advising appropriate Governmental Bodies, employees
or the public of any intended Release, actual Release or Threat of Release of pollutants or Hazardous Materials, violations of
discharge limits or other prohibitions and the commencement of activities, such as resource extraction or construction, that could
have significant impact on the Environment, (ii) preventing or reducing to acceptable levels the Release of pollutants or Hazardous
Materials into the Environment, (iii) reducing the quantities, preventing the Release or minimizing the hazardous characteristics
of wastes that are generated, (iv) assuring that products are designed, formulated, packaged and used so that they do not present
unreasonable risks to human health or the Environment when used or disposed of, (v) protecting resources, species or ecological
amenities, (vi) reducing to acceptable levels the risks inherent in the transportation of pollutants, Hazardous Materials or other
potentially harmful substances, (vii) cleaning up pollutants that have been Released, preventing the Threat of Release or paying
the costs of such clean up or prevention, (viii) making responsible Persons pay private parties, or groups of them, for damages
done to their health or the Environment or permitting self-appointed representatives of the public interest to recover for injuries
done to public assets; or (ix) governing or regulating any Hazardous Activities.

 

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

 

“ERISA Affiliate”
means each entity that is treated as a single employer with the Company for purposes of Code Section 414.

 

“Excluded
Contracts” has the meaning set forth in Section 5.2.

 

“Financial
Statements” has the meaning set forth in Section 4.11(b).

 

“FIRPTA Affidavit”
has the meaning set forth in Section 6.1(m).

 

    	 	-47-	 

     

    

 

“GAAP”
means generally accepted accounting principles as in effect in the United States of America, as determined by the Financial Accounting
Standards Board from time to time, applied on a consistent basis as of the date of any application thereof.

 

“Governmental
Authorization” means any zoning approvals, permits (including the Permits), franchise rights, rights-of-way, Consent,
license, permission, registration, permit or other right or approval issued, granted, given or otherwise made available by or under
the authority of any Governmental Body or pursuant to any Legal Requirement and all pending applications therefor or renewals thereof.

 

“Governmental
Body” means any (i) nation, state, county, city, town, borough, village, district or other jurisdiction, (ii) federal,
state, county, local, municipal, foreign or other government, (iii) governmental or quasi-governmental authority of any nature
(including any agency, branch, department, board, commission, court, tribunal or other entity exercising governmental or quasi-governmental
powers), (iv) body exercising, or entitled or purporting to exercise, any administrative, executive, judicial, legislative, police,
regulatory or taxing authority or power, (v) Indian tribal authority, (vi) multinational organization or body, or (vii) official
of any of the foregoing.

 

“Hazardous
Activity” means, with respect to any Person (including any Party or the Company or their Related Persons), the distribution,
generation, handling, importing, management, manufacturing, processing, production, refinement, Release, storage, transfer, transportation,
treatment or use (including any withdrawal or other use of groundwater) of Hazardous Material in, on, under, about or from any
Property or other facility or real property owned, leased, operated or otherwise used by such Person or any of its contractors
in connection with the conduct of the business of such Person, or from any other asset of such Person, into the Environment and
any other act, business, operation or thing that increases the danger, or risk of danger, or poses an unreasonable risk of harm,
to persons or property, whether on or off the aforementioned Properties, facilities or other real property, beyond what is authorized
by any Environmental Law relating to the business of such Person.

 

“Hazardous
Material” means any substance, material or waste which is or will foreseeably be regulated by any Governmental Body,
including any material, substance or waste which is defined as a “hazardous waste,” “hazardous material,”
“hazardous substance,” “extremely hazardous waste,” “restricted hazardous waste,” “contaminant,”
“pollutant,” “toxic waste” or “toxic substance” under any provision of Environmental Law, and
including petroleum, petroleum products, asbestos, presumed asbestos-containing material or asbestos-containing material, urea
formaldehyde and polychlorinated biphenyls.

 

“Improvements”
means all buildings, structures, fixtures, building systems and equipment, and all components thereof, including the roof, foundation,
load-bearing walls, and other structural elements thereof, heating, ventilation, air conditioning, mechanical, electrical, plumbing
and other building systems, environmental control, remediation and abatement systems, sewer, storm, and waste water systems, irrigation
and other water distribution systems, parking facilities, fire protection, security and surveillance systems, and telecommunications,
computer, wiring, and cable installations, all of which are included in the Properties.

 

“Indebtedness”
means (a) any indebtedness (including all accrued interest) for borrowed money or issued in substitution for or exchange of indebtedness
for borrowed money, (b) any indebtedness evidenced by any note, bond, debenture or other debt security, (c) any indebtedness for
the deferred purchase price of property or services with respect to the Company is liable, contingently or otherwise, as obligor
or otherwise, (d) any commitment by which the Company assures a creditor against loss (including, without limitation, contingent
reimbursement obligations with respect to letters of credit), (e) any indebtedness guaranteed in any manner by the Company (including,
without limitation, guarantees in the form of an agreement to repurchase or reimburse), (f) any obligations under capitalized leases
with respect to which the Company is liable, contingently or otherwise, as obligor, guarantor or otherwise, or with respect to
which obligations the Company assures a creditor against loss, (g) any TRAC or synthetic leases; (h) any indebtedness secured by
a Lien on the Assets of the Company, (i) any unsatisfied obligation for “withdrawal liability” to a “Multiemployer
Plan” as such terms are defined under ERISA, (j) the deficit or negative balance, if any, in the any of the Company’s
checking account and (k) any credit card debt.

 

    	 	-48-	 

     

    

 

“Indemnified
Person” has the meaning set forth in Section 7.6.

 

“Indemnifying
Person” has the meaning set forth in Section 7.6.

 

“Insolvent”
means being unable to pay debts as they mature, or as obligations become due and payable.

 

“Insolvency
Laws” means any bankruptcy, insolvency, reorganization, moratorium or other similar Legal Requirement affecting the enforcement
of creditors rights generally, and general principles of equity (regardless of whether enforcement is considered in a proceeding
in law or equity).

 

“IRS”
means the United States Internal Revenue Services and, to the extent relevant, the United States Department of the Treasury.

 

“Inspection
Period” has the meaning set forth in Section 5.2.

 

“Intangible
Personal Property” means all intangible property used or held for use by the Company, of whatever type or description,
including (a) the business as a going concern (b) goodwill of the Company (c) all files, records and correspondence (d) telephone
numbers, telecopy numbers (e) all rights in Internet web sites and Internet domain names presently used by Sellers or the Company,
and links; (f) all registered and unregistered copyrights in both published works and unpublished works, (g) “Red X Medical”,
“EnviCare” names, all assumed fictional business names, trade names, registered and unregistered trademarks, service
marks and applications, and (h) all know-how, trade secrets, confidential or proprietary information, customer lists, software,
technical information, data, process technology, plans, drawings and blue prints; and (i) all right, title and interest in and
to all Company Documents, Company Contracts, and all Permits, Governmental Authorizations, Approvals, Consents, licenses and other
permits and approvals of the Company.

 

“Intellectual
Property Assets” has the meaning set forth in Section 4.27.

 

“Knowledge”
means when used to qualify a representation, warranty or other statement of a Party to this Agreement, (i) the knowledge that management
of the Party actually has with respect to the particular fact or matter that is the subject of such representation, warranty or
other statement, and (ii) the knowledge that management of the Party could reasonably be expected to have as prudent and responsible
owners and operators of the assets and the Business of such Party, or in the case of Seller, the ownership and operation of the
Company, after having conducted a reasonably comprehensive inquiry or investigation with respect to the fact or matter that is
the subject of such representation, warranty or other statement.

 

A Person (other than
an individual) will be deemed to have Knowledge of a particular fact or other matter if any individual who is serving, or who has
at any time served, as a director, officer, partner, member, manager, executor or trustee of that Person (or in any similar capacity)
has, or at any time had, Knowledge of that fact or other matter (as set forth in (a) and (b) above), and any such individual (and
any individual party to this Agreement) will be deemed to have conducted a reasonably comprehensive investigation regarding the
accuracy of the representations and warranties made herein by that Person or individual.

 

“Legal Requirement”
means any federal, state, local, municipal, foreign, international, multi-national or other constitution, law, ordinance, principle
of common law, code, regulation, statute or treaty.

 

    	 	-49-	 

     

    

 

“Liability”
means with respect to any Person (including any Party), any Indebtedness, liability, penalty, damage, loss, cost or expense, obligation,
claim, deficiency, or guaranty of such Person of any kind, character or description, whether known or unknown, absolute or contingent,
accrued or unaccrued, disputed or undisputed, liquidated or unliquidated, secured or unsecured, joint or several, due or to become
due, vested or unvested, executory, determined, determinable or otherwise, and whether or not the same is required to be accrued
on the financial statements of such Person, including any liability for Taxes.

 

“Lien”
means with respect to any Person, any mortgage, right of way, easement, encroachment, any restriction on use, servitude, pledge,
lien, charge, hypothecation, security interest, encumbrance, adverse right, interest or claim, community or other marital property
interest, condition, equitable interest, encumbrance, license, covenant, title defect, option, or right of first refusal or offer
or similar restriction, voting right, transfer, receipt of income or exercise of any other attribute of ownership, except for any
liens for taxes not yet due or delinquent or being contested in good faith by appropriate proceedings for which adequate reserves
have been established and accrued on the financial statements of such Person in accordance with GAAP.

 

“Material
Adverse Effect” or “Material Adverse Change” means any effect or change that would be materially adverse
to the Business, Assets, condition (financial or otherwise), operating results, operations, or business prospects of the Company,
taken as a whole, including the ability for the Company to own, construct, operate and develop the Assets and the Business in Buyer’s
sole discretion, the transfer or issuance to the Company, if applicable, of any Permit, Consent, Governmental Authorization, license
or other permit or approval contemplated by this Agreement, or on the ability of Sellers to consummate timely the Contemplated
Transactions (regardless of whether or not such adverse effect or change can be or has been cured at any time or whether Buyer
has knowledge of such effect or change on the date hereof), except for any adverse change or event arising from or relating to
(a) general economic conditions or conditions which generally affect the Business of the Company and the industry in which the
Company competes and (b) public or industry knowledge of the Contemplated Transactions.

 

“Membership
Interests” has the meaning set forth in Section 2.1.

 

“Most Recent
Financial Statements” has the meaning set forth in Section 4.11(a).

 

“Most Recent
Fiscal Month End” has the meaning set forth in Section 4.11(a).

 

“Most Recent
Fiscal Year End” has the meaning set forth in Section 4.11(a).

 

“Multiemployer
Plan” has the meaning set forth in ERISA Section 3(37).

 

“Net Large Entity
Purchase Price” means the purchase price paid by Buyer for the acquisition of any Large Acquired Entity, less all amounts
deducted therefrom in payment of such Large Entity’s or the sellers’ prorated items, expenses or debt.

 

“Occupational
Safety and Health Law” means any Legal Requirement designed to provide safe and healthful working conditions and to reduce
occupational safety and health hazards, including the Occupational Safety and Health Act, and any program, whether governmental
or private (such as those promulgated or sponsored by industry associations and insurance Company), designed to provide safe and
healthful working conditions.

 

    	 	-50-	 

     

    

 

“Order”
means any order, injunction, judgment, decree, ruling, assessment or arbitration award of any Governmental Body or arbitrator.

 

“Ordinary
Course of Business” means an action taken by a Person will be deemed to have been taken in the ordinary course of business
only if that action (i) is consistent in nature, scope and magnitude with the past practices of such Person and is taken in the
ordinary course of the normal, day-to-day operations of such Person, (ii) does not require authorization by the board of directors,
owners, shareholders, interest holders, members or managers of such Person (or by any Person or group of Persons exercising similar
authority) and does not require any other separate or special authorization of any nature, and (iii) is similar in nature, scope
and magnitude to actions customarily taken, without any separate or special authorization, in the ordinary course of the normal,
day-to-day operations of other Persons that are in the same line of business as such Person).

 

“Organizational
Documents” means: (i) with respect to a corporation, the certificate or articles of incorporation and bylaws; (ii) with
respect to any other Person any charter or similar document adopted or filed in connection with the creation, formation or organization
of a Person; (iii) any operating agreement, partnership agreement, shareholder agreement or similar agreement and (iv) any amendment
to any of the foregoing.

 

“Party”
or “Parties” has the meaning set forth in the preface.

 

“Permits”
has the meaning set forth in Section 4.12(a).

 

“Person”
means an individual, a partnership, a corporation, a limited liability company, an association, a joint stock holding company,
a trust, a joint venture, an unincorporated organization, any other business entity, joint venture or other entity Governmental
Body (or any department, agency, or political subdivision thereof).

 

“Pre-Closing
Tax Period” has the meaning set forth in Section 8.1.

 

“Proceeding”
means any action, arbitration, audit, hearing, investigation, litigation or suit (whether civil, criminal, administrative, judicial
or investigative, whether formal or informal, whether public or private) commenced, brought, conducted or heard by or before, or
otherwise involving, any Governmental Body, court, or arbitrator.

 

“Property”
or “Properties” means any real property owned or leased by the Company together with all buildings, structures,
Improvements, and fixtures located thereon, including all electrical, mechanical, plumbing and other building systems, fire protection,
security and surveillance systems, telecommunications, computer, wiring, and cable installations, utility installations, water
distribution systems, and landscaping, together with all easements and other rights and interests appurtenant thereto (including
air, oil, gas, mineral, and water rights together with all Permits).

 

“Purchase
Price” has the meaning set forth in Section 2.2.

 

“Purchase Price
Shares” means, collectively, the Tranche IV Shares, the Tranche V Shares, and the Tranche VI Shares.

 

“Real Property
Lease” means (i) any long-term lease of land in which most of the rights and benefits comprising ownership of the land
and the Improvements thereon or to be constructed thereon, if any, are transferred to the tenant for the term thereof or (ii) any
lease or rental agreement pertaining to the occupancy of any improved space on any real property.

 

    	 	-51-	 

     

    

 

“Related Person”
means:

 

(i) with
respect to a particular individual: (A) each other member of such individual’s Family; (B) any Person that is directly or
indirectly controlled by any one or more members of such individual’s Family; (C) any Person in which members of such individual’s
Family hold (individually or in the aggregate) a Material Interest; and (D) any Person with respect to which one or more members
of such individual’s Family serves as a director, officer, partner, executor or trustee (or in a similar capacity); and

 

(ii) with
respect to a specified Person other than an individual: (A) any Person that directly or indirectly controls, is directly or indirectly
controlled by or is directly or indirectly under common control with such specified Person; (B) any Person that holds a Material
Interest in such specified Person; (C) each Person that serves as a director, officer, partner, executor or trustee of such specified
Person (or in a similar capacity); (D) any Person in which such specified Person holds a Material Interest; and (E) any Person
with respect to which such specified Person serves as a general partner or a trustee (or in a similar capacity).

 

(iii) For
purposes of this definition, (a) “control” (including “controlling,” “controlled by,” and “under
common control with”) means the possession, direct or indirect, of the power to direct or cause the direction of the management
and policies of a Person, whether through the ownership of voting securities, by contract or otherwise, and shall be construed
as such term is used in the rules promulgated under the Securities Act; (b) the “Family” of an individual includes
(i) the individual, (ii) the individual’s spouse, (iii) any other natural person who is related to the individual or the
individual’s spouse within the second degree and (iv) any other natural person who resides with such individual; and (c)
“Material Interest” means direct or indirect beneficial ownership (as defined in Rule 13d-3 under the Exchange Act
of 1934) of voting securities or other voting interests representing at least ten percent (10%) of the outstanding voting power
of a Person or equity securities or other equity interests representing at least ten percent (10%) of the outstanding equity securities
or equity interests in a Person.

 

“Release”
means any release, spill, emission, leaking, pumping, pouring, dumping, emptying, injection, deposit, disposal, discharge, dispersal,
leaching or migration on or into the Environment or into or out of any property.

 

“Remedial
Action” means all actions, including any capital expenditures, required or voluntarily undertaken (i) to clean up, remove,
treat or in any other way address any Hazardous Material or other substance, (ii) to prevent the Release or Threat of Release or
to minimize the further Release of any Hazardous Material or other substance so it does not migrate or endanger or threaten to
endanger public health or welfare or the Environment, (iii) to perform pre-remedial studies and investigations or post-remedial
monitoring and care, or (iv) to bring the Properties and the operations conducted (or to be conducted) thereon into compliance
with Environmental Laws and environmental Governmental Authorizations.

 

“Representative”
means with respect to a particular Person, any director, officer, manager, employee, agent, consultant, advisor, accountant, financial
advisor, legal counsel or other representative of that Person.

 

“Restrictive
Covenants Agreement” has the meaning set forth in Section 6.1(l).

 

“Retained
Liabilities” has the meaning set forth in Section 2.4(b).

 

“Securities
Act” means the Securities Act of 1933, as amended.

 

“Seller”
has the meanings set forth in the preface.

 

“Seller Claims”
has the meaning set forth in Section 5.12.

 

    	 	-52-	 

     

    

 

“Seller Claims
Period” has the meanings set forth in Section 7.4(b).

 

“Seller Indemnified
Persons” has the meaning set forth in Section 7.2.

 

“Seller Releasing
Parties” has the meaning set forth in Section 5.12.

 

“Straddle
Period” has the meaning set forth in Section 8.2.

 

“SWDA”
has the meaning set forth in Section 4.25.

 

“Tangible
Personal Property” means all tangible personal property used or useful in the Business, including all machinery, equipment,
scales, compactors, containers, bailers, tools, spare parts, furniture, office equipment, computer hardware, supplies, materials,
vehicles, trade fixtures and other items of tangible personal property of every kind owned or leased by the Company (wherever located
and whether or not carried on the books of the Company or Sellers), together with any express or implied warranty by the manufacturers
or lessors of any item or component part thereof and all maintenance records and other documents relating thereto.

 

“Tax”
means any income, gross receipts, license, payroll, employment, excise, severance, stamp, occupation, premium, property, environmental,
windfall profit, customs, vehicle, airplane, boat, vessel or other title or registration, capital stock, franchise, employees’
income withholding, foreign or domestic withholding, social security, unemployment, disability, real property, personal property,
sales, use, transfer, value added, alternative, add-on minimum and other tax, fee, assessment, levy, tariff, charge or duty of
any kind whatsoever and any interest, penalty, addition or additional amount thereon imposed, assessed or collected by or under
the authority of any Governmental Body or payable under any tax-sharing agreement or any other Contract, whether disputed or not
and including any obligations to indemnify or otherwise assume or succeed to the Tax liability of any other Person.

 

“Tax Return”
means any return (including any information return), report, statement, schedule, notice, form, declaration, claim for refund or
other document or information filed with or submitted to, or required to be filed with or submitted to, any Governmental Body in
connection with the determination, assessment, collection or payment of any Tax or in connection with the administration, implementation
or enforcement of or compliance with any Legal Requirement relating to any Tax.

 

“Third Party
Claim” means any claim, issuance of any Order or the commencement of any Proceeding by any Person who is not a Party
to this Agreement, including a Related Person of a Party, any domestic or foreign court, or Governmental Body.

 

“Threat of
Release” means a reasonable likelihood of a Release that may require action in order to prevent or mitigate damage to
the Environment that may result from such Release.

 

“WARN Act”
has the meaning set forth in Section 4.21.

 

    	 	-53-EX-4.1

 Exhibit 4.1 

EXECUTION COPY 
 SIXTH AMENDED
AND RESTATED 
 AGREEMENT OF LIMITED PARTNERSHIP 

OF 
 TEEKAY OFFSHORE
PARTNERS L.P. 

 TABLE OF CONTENTS 

 

							
	 	 	 	  	Page	 
	 ARTICLE I DEFINITIONS
	  	 	1	 
			
	 Section 1.1
	 	 Definitions
	  	 	1	 
			
	 Section 1.2
	 	 Construction
	  	 	21	 
		
	 ARTICLE II ORGANIZATION
	  	 	22	 
			
	 Section 2.1
	 	 Formation
	  	 	22	 
			
	 Section 2.2
	 	 Name
	  	 	22	 
			
	 Section 2.3
	 	 Registered Office; Registered Agent; Principal Office; Other Offices
	  	 	22	 
			
	 Section 2.4
	 	 Purpose and Business
	  	 	22	 
			
	 Section 2.5
	 	 Powers
	  	 	23	 
			
	 Section 2.6
	 	 Power of Attorney
	  	 	23	 
			
	 Section 2.7
	 	 Term
	  	 	24	 
			
	 Section 2.8
	 	 Title to Partnership Assets
	  	 	24	 
		
	 ARTICLE III RIGHTS OF LIMITED PARTNERS
	  	 	25	 
			
	 Section 3.1
	 	 Limitation of Liability
	  	 	25	 
			
	 Section 3.2
	 	 Management of Business
	  	 	25	 
			
	 Section 3.3
	 	 Outside Activities of the Limited Partners
	  	 	25	 
			
	 Section 3.4
	 	 Rights of Limited Partners
	  	 	26	 
		
	 ARTICLE IV CERTIFICATES; RECORD HOLDERS; TRANSFER OF PARTNERSHIP INTERESTS
	  	 	26	 
			
	 Section 4.1
	 	 Certificates
	  	 	26	 
			
	 Section 4.2
	 	 Mutilated, Destroyed, Lost or Stolen Certificates
	  	 	27	 
			
	 Section 4.3
	 	 Record Holders
	  	 	28	 
			
	 Section 4.4
	 	 Transfer Generally
	  	 	28	 
			
	 Section 4.5
	 	 Registration and Transfer of Limited Partner Interests
	  	 	28	 
			
	 Section 4.6
	 	 Transfer of the General Partner’s General Partner Interest
	  	 	29	 
			
	 Section 4.7
	 	 Transfer of Incentive Distribution Rights
	  	 	29	 
			
	 Section 4.8
	 	 Restrictions on Transfers
	  	 	30	 
		
	 ARTICLE V CAPITAL CONTRIBUTIONS AND ISSUANCE OF PARTNERSHIP INTERESTS
	  	 	30	 
			
	 Section 5.1
	 	 Organizational Contributions
	  	 	30	 
			
	 Section 5.2
	 	 Initial Unit Issuances; General Partner Pre-emptive
Rights
	  	 	30	 

 TABLE OF CONTENTS 

 

							
	 	 	 	  	Page	 
	 Section 5.3
	 	
Contributions by Initial Limited Partners and Distributions to the 
General Partner and its Affiliates
	  	 	31	 
			
	 Section 5.4
	 	 Interest and Withdrawal
	  	 	32	 
			
	 Section 5.5
	 	 Issuances of Additional Partnership Securities
	  	 	32	 
			
	 Section 5.6
	 	 Limitations on Issuance of Additional Partnership Securities
	  	 	33	 
			
	 Section 5.7
	 	 Limited Preemptive Right
	  	 	33	 
			
	 Section 5.8
	 	 Splits and Combinations
	  	 	33	 
			
	 Section 5.9
	 	 Fully Paid and Non-Assessable Nature of Limited Partner
Interests
	  	 	34	 
		
	 ARTICLE VI ALLOCATIONS AND DISTRIBUTIONS
	  	 	34	 
			
	 Section 6.1
	 	 Allocations
	  	 	34	 
			
	 Section 6.2
	 	 Requirement and Characterization of Distributions; Distributions to Record Holders
	  	 	35	 
			
	 Section 6.3
	 	 Distributions of Available Cash from Operating Surplus
	  	 	35	 
			
	 Section 6.4
	 	 Distributions of Available Cash from Capital Surplus
	  	 	36	 
			
	 Section 6.5
	 	 Adjustment of Minimum Quarterly Distribution and Target Distribution Levels
	  	 	37	 
			
	 Section 6.6
	 	 Special Provisions Relating to the Holders of Incentive Distribution Rights
	  	 	37	 
		
	 ARTICLE VII MANAGEMENT AND OPERATION OF BUSINESS
	  	 	37	 
			
	 Section 7.1
	 	 Management
	  	 	37	 
			
	 Section 7.2
	 	 Certificate of Limited Partnership
	  	 	39	 
			
	 Section 7.3
	 	 Restrictions on the General Partner’s Authority
	  	 	40	 
			
	 Section 7.4
	 	 Reimbursement of the General Partner
	  	 	40	 
			
	 Section 7.5
	 	 Outside Activities
	  	 	41	 
			
	 Section 7.6
	 	 Loans from the General Partner; Loans or Contributions from the Partnership or Group
Members
	  	 	42	 
			
	 Section 7.7
	 	 Indemnification
	  	 	43	 
			
	 Section 7.8
	 	 Liability of Indemnitees
	  	 	45	 
			
	 Section 7.9
	 	 Resolution of Conflicts of Interest; Standards of Conduct and Modification of Duties
	  	 	45	 
			
	 Section 7.10
	 	 Other Matters Concerning the General Partner
	  	 	47	 
			
	 Section 7.11
	 	 Purchase or Sale of Partnership Securities
	  	 	48	 
			
	 Section 7.12
	 	 Registration Rights of the General Partner and its Affiliates
	  	 	48	 
			
	 Section 7.13
	 	 Reliance by Third Parties
	  	 	50	 

  
 -ii- 

 TABLE OF CONTENTS 

 

							
	 	 	 	  	Page	 
	 ARTICLE VIII BOOKS, RECORDS, ACCOUNTING AND REPORTS
	  	 	51	 
			
	 Section 8.1
	 	 Records and Accounting
	  	 	51	 
			
	 Section 8.2
	 	 Fiscal Year
	  	 	51	 
			
	 Section 8.3
	 	 Reports
	  	 	51	 
		
	 ARTICLE IX TAX MATTERS
	  	 	52	 
			
	 Section 9.1
	 	 Tax Elections and Information
	  	 	52	 
			
	 Section 9.2
	 	 Withholding
	  	 	52	 
			
	 Section 9.3
	 	 Conduct of Operations
	  	 	52	 
		
	 ARTICLE X ADMISSION OF PARTNERS
	  	 	52	 
			
	 Section 10.1
	 	 Admission of Initial Limited Partners
	  	 	52	 
			
	 Section 10.2
	 	 Admission of Additional Limited Partners
	  	 	53	 
			
	 Section 10.3
	 	 Admission of Successor General Partner
	  	 	53	 
			
	 Section 10.4
	 	 Amendment of Agreement and Certificate of Limited Partnership
	  	 	54	 
		
	 ARTICLE XI WITHDRAWAL OR REMOVAL OF PARTNERS
	  	 	54	 
			
	 Section 11.1
	 	 Withdrawal of the General Partner
	  	 	54	 
			
	 Section 11.2
	 	 Removal of the General Partner
	  	 	55	 
			
	 Section 11.3
	 	 Interest of Departing General Partner and Successor General Partner
	  	 	56	 
			
	 Section 11.4
	 	 Withdrawal of Limited Partners
	  	 	57	 
		
	 ARTICLE XII DISSOLUTION AND LIQUIDATION
	  	 	57	 
			
	 Section 12.1
	 	 Dissolution
	  	 	57	 
			
	 Section 12.2
	 	 Continuation of the Business of the Partnership After Dissolution
	  	 	58	 
			
	 Section 12.3
	 	 Liquidator
	  	 	58	 
			
	 Section 12.4
	 	 Liquidation
	  	 	59	 
			
	 Section 12.5
	 	 Cancellation of Certificate of Limited Partnership
	  	 	60	 
			
	 Section 12.6
	 	 Return of Contributions
	  	 	61	 
			
	 Section 12.7
	 	 Waiver of Partition
	  	 	61	 
		
	 ARTICLE XIII AMENDMENT OF PARTNERSHIP AGREEMENT; MEETINGS; RECORD DATE
	  	 	61	 
			
	 Section 13.1
	 	 Amendments to be Adopted Solely by the General Partner
	  	 	61	 
			
	 Section 13.2
	 	 Amendment Procedures
	  	 	62	 
			
	 Section 13.3
	 	 Amendment Requirements
	  	 	63	 
			
	 Section 13.4
	 	 Special Meetings
	  	 	63	 
			
	 Section 13.5
	 	 Notice of a Meeting
	  	 	64	 
			
	 Section 13.6
	 	 Record Date
	  	 	64	 
			
	 Section 13.7
	 	 Adjournment
	  	 	64	 
			
	 Section 13.8
	 	 Waiver of Notice; Approval of Meeting; Approval of Minutes
	  	 	65	 

  
 -iii- 

 TABLE OF CONTENTS 

 

							
	 	 	 	  	Page	 
	 Section 13.9
	 	 Quorum and Voting
	  	 	65	 
			
	 Section 13.10
	 	 Conduct of a Meeting
	  	 	65	 
			
	 Section 13.11
	 	 Action Without a Meeting
	  	 	66	 
			
	 Section 13.12
	 	 Right to Vote and Related Matters
	  	 	66	 
		
	 ARTICLE XIV MERGER
	  	 	67	 
			
	 Section 14.1
	 	 Authority
	  	 	67	 
			
	 Section 14.2
	 	 Procedure for Merger or Consolidation
	  	 	67	 
			
	 Section 14.3
	 	 Approval by Limited Partners of Merger or Consolidation
	  	 	68	 
			
	 Section 14.4
	 	 Certificate of Merger
	  	 	69	 
			
	 Section 14.5
	 	 Amendment of Partnership Agreement
	  	 	69	 
			
	 Section 14.6
	 	 Effect of Merger
	  	 	69	 
		
	 ARTICLE XV RIGHT TO ACQUIRE LIMITED PARTNER INTERESTS
	  	 	70	 
			
	 Section 15.1
	 	 Right to Acquire Limited Partner Interests
	  	 	70	 
		
	 ARTICLE XVI SERIES A, SERIES B AND SERIES E CUMULATIVE REDEEMABLE PREFERRED
UNITS
	  	 	71	 
			
	 Section 16.1
	 	 Designations
	  	 	71	 
			
	 Section 16.2
	 	 Units
	  	 	72	 
			
	 Section 16.3
	 	 Distributions
	  	 	72	 
			
	 Section 16.4
	 	 Liquidation Rights
	  	 	75	 
			
	 Section 16.5
	 	 Voting Rights
	  	 	76	 
			
	 Section 16.6
	 	 Optional Redemption
	  	 	78	 
			
	 Section 16.7
	 	 Rank
	  	 	81	 
			
	 Section 16.8
	 	 No Sinking Fund
	  	 	82	 
			
	 Section 16.9
	 	 Record Holders
	  	 	82	 
			
	 Section 16.10
	 	 Notices
	  	 	82	 
			
	 Section 16.11
	 	 Other Rights; Fiduciary Duties
	  	 	82	 
		
	 ARTICLE XVII GENERAL PROVISIONS
	  	 	83	 
			
	 Section 17.1
	 	 Addresses and Notices
	  	 	83	 
			
	 Section 17.2
	 	 Further Action
	  	 	83	 
			
	 Section 17.3
	 	 Binding Effect
	  	 	83	 
			
	 Section 17.4
	 	 Integration
	  	 	84	 
			
	 Section 17.5
	 	 Creditors
	  	 	84	 
			
	 Section 17.6
	 	 Waiver
	  	 	84	 
			
	 Section 17.7
	 	 Counterparts
	  	 	84	 

  
 -iv- 

 TABLE OF CONTENTS 

 

							
	 	 	 	  	Page	 
	 Section 17.8
	 	Applicable Law	  	 	84	 
			
	 Section 17.9
	 	Invalidity of Provisions	  	 	84	 
			
	 Section 17.10
	 	Consent of Partners	  	 	84	 
			
	 Section 17.11
	 	Facsimile Signatures	  	 	85	 
			
	 Section 17.12
	 	Third-Party Beneficiaries	  	 	85	 

  
 -v- 

 SIXTH AMENDED AND RESTATED AGREEMENT OF LIMITED 

PARTNERSHIP OF TEEKAY OFFSHORE PARTNERS L.P. 

THIS SIXTH AMENDED AND RESTATED AGREEMENT OF LIMITED PARTNERSHIP OF TEEKAY OFFSHORE PARTNERS L.P., dated as of January 23, 2018, is
entered into by and between Teekay Offshore GP L.L.C., a Marshall Islands limited liability company, as the General Partner, and, solely with respect to Section 16.5(b), Teekay Holdings Limited, a Bermuda company, and Brookfield TK TOGP L.P., a
Bermuda limited partnership, together with any other Persons who become Partners in the Partnership or parties hereto as provided herein. In consideration of the covenants, conditions and agreements contained herein, the parties agree as follows:

 ARTICLE I 

DEFINITIONS 
  

	Section 1.1	Definitions. 

 The following definitions shall be for all purposes, unless otherwise
clearly indicated to the contrary, applied to the terms used in this Agreement. 
 “Acquisition” means any transaction in
which any Group Member acquires (through an asset acquisition, merger, stock acquisition or other form of investment) control over all or a portion of the assets, properties or business of another Person for the purpose of increasing the operating
capacity or asset base of the Partnership Group from the operating capacity or asset base of the Partnership Group existing immediately prior to such transaction; provided, however, that any acquisition of properties or assets of
another Person that is made solely for investment purposes shall not constitute an Acquisition under this Agreement. 
 “Adjusted
Operating Surplus” means, with respect to any period, Operating Surplus generated with respect to such period (a) less (i) any net increase in Working Capital Borrowings (or the Partnership’s proportionate share of any net
increase in Working Capital Borrowings in the case of Subsidiaries that are not wholly owned) with respect to such period and (ii) any net decrease in cash reserves for Operating Expenditures with respect to such period to the extent such
reduction does not relate to an Operating Expenditure made with respect to such period, and (b) plus (i) any net decrease in Working Capital Borrowings (or the Partnership’s proportionate share of any net decrease in Working Capital
Borrowings in the case of Subsidiaries that are not wholly owned) with respect to such period, and (ii) any net increase in cash reserves (or the Partnership’s proportionate share of any net increase in cash reserves in the case of
Subsidiaries that are not wholly owned) for Operating Expenditures with respect to such period to the extent such reserve is required (A) by any debt instrument for the repayment of principal, interest or premium or (B) for any Preferred
Unit Payments. Adjusted Operating Surplus does not include that portion of Operating Surplus included in clause (a)(i) of the definition of Operating Surplus. 

“Affiliate” means, with respect to any Person, any other Person that directly or indirectly through one or more
intermediaries controls, is controlled by or is under common control with, the Person in question. As used herein, the term “control” means the possession, direct or indirect, of the power to direct or cause the direction of the
management and policies of a Person, whether through ownership of voting securities, by contract or otherwise. 

  
 - 1 - 

 “Agreed Value” means the fair market value of the applicable property or other
consideration at the time of contribution or distribution, as the case may be, as determined by the General Partner. 

“Agreement” means this Sixth Amended and Restated Agreement of Limited Partnership of Teekay Offshore Partners L.P., as it
may be amended, supplemented or restated from time to time. 
 “Arrears” means, with respect to Preferred Unit
Distributions for a particular series of Preferred Units for any quarter period, that the full cumulative Preferred Unit Distributions for such series of Preferred Units through the most recent Preferred Unit Distribution Payment Date for such
series of Preferred Units have not been paid on all Outstanding Preferred Units of such series.  
 “Associate”
means, when used to indicate a relationship with any Person: (a) any corporation or organization of which such Person is a director, officer, manager or partner or is, directly or indirectly, the owner of 20% or more of any class of voting
stock or other voting interest; (b) any trust or other estate in which such Person has at least a 20% beneficial interest or as to which such Person serves as trustee or in a similar fiduciary capacity; and (c) any relative or spouse of
such Person, or any relative of such spouse, who has the same principal residence as such Person. 
 “Available Cash”
means, with respect to any Quarter ending prior to the Liquidation Date: 
 (a)    the sum of
(i) all cash and cash equivalents of the Partnership Group (or the Partnership’s proportionate share of cash and cash equivalents in the case of Subsidiaries that are not wholly owned) on hand at the end of such Quarter, and (ii) all
additional cash and cash equivalents of the Partnership Group (or the Partnership’s proportionate share of cash and cash equivalents in the case of Subsidiaries that are not wholly owned) on hand on the date of determination of Available Cash
with respect to such Quarter resulting from Working Capital Borrowings made subsequent to the end of such Quarter, less 

(b)    the amount of any cash reserves (or the Partnership’s proportionate share of cash reserves in
the case of Subsidiaries that are not wholly owned) established by the General Partner to (i) provide for the proper conduct of the business of the Partnership Group (including reserves for future capital expenditures and for anticipated future
credit needs of the Partnership Group) subsequent to such Quarter, (ii) comply with applicable law or any loan agreement, security agreement, mortgage, debt instrument or other agreement or obligation to which any Group Member is a party or by
which it is bound or its assets are subject, (iii) provide funds for Preferred Unit Payments or (iv) provide funds for distributions under Section 6.3 or Section 6.4 in respect of any one or more of the next four Quarters;
provided, however, that the General Partner may not establish cash 

  
 - 2 - 

 
reserves pursuant to (iv) above if the effect of establishing such reserves would be that the Partnership is unable to distribute the Minimum Quarterly Distribution on all Common Units with
respect to such Quarter; and, provided further, that disbursements made by a Group Member or cash reserves established, increased or reduced after the end of such Quarter but on or before the date of determination of Available Cash with
respect to such Quarter shall be deemed to have been made, established, increased or reduced, for purposes of determining Available Cash, within such Quarter if the General Partner so determines. 

Notwithstanding the foregoing, “Available Cash” with respect to the Quarter in which the Liquidation Date occurs and any
subsequent Quarter shall equal zero. 
 “Board of Directors” means the board of directors or managers of a corporation or
limited liability company, as applicable, or if a limited partnership, the board of directors or board of managers of the general partner of such limited partnership. 

“Business Day” means Monday through Friday of each week, except that a legal holiday recognized as such by the government of
the United States of America or the State of New York shall not be regarded as a Business Day. 
 “Calculation Agent” means
a calculation agent appointed by the General Partner prior to the commencement of the Series E Floating Rate Period. If the General Partner is unable to obtain a third-party to serve as calculation agent, the calculation agent may be the General
Partner or an Affiliate of the General Partner. 
 “Capital Contribution” means any cash, cash equivalents or the Net
Agreed Value of Contributed Property that a Partner contributes to the Partnership. 
 “Capital Improvement” means any
(a) addition or improvement to the capital assets owned by any Group Member or (b) acquisition or conversion of existing, or the construction of new, capital assets (including shuttle tankers, floating storage and offtake units, floating
production, storage and offloading units, crude oil tankers and related assets), in each case if such addition, improvement, acquisition, conversion or construction is made to increase the operating capacity or asset base of the Partnership Group
from the operating capacity or asset base of the Partnership Group existing immediately prior to such addition, improvement, acquisition, conversion or construction. 

“Capital Surplus” has the meaning assigned to such term in Section 6.2(a). 

“Cause” means a court of competent jurisdiction has entered a final, non-appealable
judgment finding the General Partner liable for actual fraud or willful misconduct in its capacity as a general partner of the Partnership. 

“Certificate” means a certificate (i) substantially in the form of Exhibit A with respect to Common Units, Exhibit B
with respect to Series A Preferred Units, Exhibit C with respect to Series B Preferred Units or Exhibit D with respect to Series E Preferred Units, to this Agreement, (ii) issued in global or book entry form in accordance with the rules
and regulations of the Depository or (iii) in such other form as may be adopted by the General Partner, issued by the 

  
 - 3 - 

 
Partnership evidencing ownership of one or more Common Units or Preferred Units, or a certificate, in such form as may be adopted by the General Partner, issued by the Partnership evidencing
ownership of one or more other Partnership Securities. 
 “Certificate of Limited Partnership” means the Certificate of
Limited Partnership of the Partnership filed with the Marshall Islands Registrar as referenced in Section 7.2 as such Certificate of Limited Partnership may be amended, supplemented or restated from time to time. 

“claim” (as used in Section 7.12(c)) has the meaning assigned to such term in Section 7.12(c). 

“Closing Date” means the first date on which Common Units are sold by the Partnership to the Underwriters pursuant to the
provisions of the Underwriting Agreement. 
 “Closing Price” means, in respect of any class or series of Limited Partner
Interests, as of the date of determination, the last sale price on such day, regular way, or in case no such sale takes place on such day, the average of the closing bid and asked prices on such day, regular way, as reported in the principal
consolidated transaction reporting system with respect to securities listed on the principal National Securities Exchange on which the respective Limited Partner Interests are listed or admitted to trading or, if such Limited Partner Interests are
not listed or admitted to trading on any National Securities Exchange, the last quoted price on such day or, if not so quoted, the average of the high bid and low asked prices on such day in the over-the-counter market, as reported by any quotation system then in use with respect to such Limited Partner Interests, or, if on any such day such Limited Partner Interests of such class or series are not
quoted by any such system, the average of the closing bid and asked prices on such day as furnished by a professional market maker making a market in such Limited Partner Interests of such class or series selected by the General Partner, or if on
any such day no market maker is making a market in such Limited Partner Interests of such class or series, the fair value of such Limited Partner Interests on such day as determined by the General Partner. 

“Code” means the United States Internal Revenue Code of 1986, as amended and in effect from time to time. Any reference
herein to a specific section or sections of the Code shall be deemed to include a reference to any corresponding provision of any successor law. 

“Combined Interest” has the meaning assigned to such term in Section 11.3(a). 

“Commences Commercial Service” and “Commenced Commercial Service” shall mean the date a Capital Improvement
is first put into service by a Group Member following, if applicable, completion of conversion or construction and testing. 

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

“Common Unit” means a Partnership Security having the rights and obligations specified with respect to Common Units in this
Agreement. 
 “Conflicts Committee” means a committee of the Board of Directors of the General Partner composed entirely of
two or more directors who are not (a) security holders, officers or employees of the General Partner, (b) officers, directors or employees of any Affiliate of the 

  
 - 4 - 

 
General Partner or (c) holders of any ownership interest in the Partnership Group other than Common Units and who also meet the independence standards required of directors who serve on an
audit committee of a board of directors established by the Securities Exchange Act of 1934, as amended, and the rules and regulations of the Commission thereunder and by the National Securities Exchange on which the Common Units are listed or
admitted to trading. 
 “Contributed Property” means each property or other asset, in such form as may be permitted by the
Marshall Islands Act, but excluding cash, contributed to the Partnership. 
 “Contribution Agreement” means that certain
Contribution, Conveyance and Assumption Agreement, dated as of the Closing Date, among the General Partner, the Partnership, the Operating Company, Teekay Corporation and the other parties named therein, together with the additional conveyance
documents and instruments contemplated or referenced thereunder. 
 “Current Market Price” means, in respect of any class
or series of Limited Partner Interests, as of the date of determination, the average of the daily Closing Prices per Limited Partner Interest of such class or series for the 20 consecutive Trading Days immediately prior to such date. 

“Departing General Partner” means a former General Partner from and after the effective date of any withdrawal or removal of
such former General Partner pursuant to Section 11.1 or 11.2. 
 “Depository” means, with respect to any Units issued
in global form, The Depository Trust Company and its successors and permitted assigns. 
 “Estimated Maintenance Capital
Expenditures” means an estimate made in good faith by the Board of Directors of the General Partner (with the concurrence of the Conflicts Committee) of the average quarterly Maintenance Capital Expenditures that the Partnership will need
to incur to maintain the operating capacity or asset base of the Partnership Group (including the Partnership’s proportionate share of the average quarterly Maintenance Capital Expenditures of its Subsidiaries that are not wholly owned),
existing at the time the estimate is made. The Board of Directors of the General Partner (with the concurrence of the Conflicts Committee) will be permitted to make such estimate in any manner it determines reasonable. The estimate will be made at
least annually and whenever an event occurs that is likely to result in a material adjustment to the amount of Maintenance Capital Expenditures on a long-term basis. The Partnership shall disclose to its Partners any change in the amount of
Estimated Maintenance Capital Expenditures in its reports made in accordance with Section 8.3 to the extent not previously disclosed. Any adjustments to Estimated Maintenance Capital Expenditures shall be prospective only. 

“Event of Withdrawal” has the meaning assigned to such term in Section 11.1(a). 

“Expansion Capital Expenditures” means cash expenditures for Acquisitions or Capital Improvements. Expansion Capital
Expenditures shall not include Maintenance Capital Expenditures. Expansion Capital Expenditures shall include interest (and related fees) on debt incurred and distributions on equity incurred, in each case, to finance the conversion or construction
of a Capital Improvement and paid during the period beginning on the date that the 

  
 - 5 - 

 
Partnership enters into a binding obligation to commence conversion or construction of the Capital Improvement and ending on the earlier to occur of the date that such Capital Improvement
Commences Commercial Service or the date that such Capital Improvement is abandoned or disposed of. Debt incurred or equity issued to fund any such conversion or construction period interest payments, or such conversion or construction period
distributions on equity paid during such period, shall also be deemed to be debt or equity, as the case may be, incurred to finance the conversion or construction of a Capital Improvement. 

“First Target Distribution” means $0.4025 per Common Unit per Quarter, subject to adjustment in accordance with
Section 6.5. 
 “General Partner” means Teekay Offshore GP L.L.C., a Marshall Islands limited liability company, and
its successors and permitted assigns that are admitted to the Partnership as general partner of the Partnership, in its capacity as general partner of the Partnership (except as the context otherwise requires). 

“General Partner Interest” means the ownership interest of the General Partner in the Partnership (in its capacity as a
general partner and without reference to any Limited Partner Interest held by it) which is evidenced by General Partner Units, and includes any and all benefits to which the General Partner is entitled as provided in this Agreement, together with
all obligations of the General Partner to comply with the terms and provisions of this Agreement. 
 “General Partner Unit”
means a fractional part of the General Partner Interest having the rights and obligations specified with respect to the General Partner Interest. A General Partner Unit is not a Unit. 

“Group” means a Person that with or through any of its Affiliates or Associates has any agreement, arrangement, understanding
or relationship for the purpose of acquiring, holding, voting (except voting pursuant to a revocable proxy or consent given to such Person in response to a proxy or consent solicitation made to 10 or more Persons) or disposing of any Partnership
Securities with any other Person that beneficially owns, or whose Affiliates or Associates beneficially own, directly or indirectly, Partnership Securities. 

“Group Member” means a member of the Partnership Group. 

“Group Member Agreement” means the partnership agreement of any Group Member, other than the Partnership, that is a limited
or general partnership, the limited liability company agreement of any Group Member that is a limited liability company, the certificate of incorporation and bylaws (or similar organizational documents) of any Group Member that is a corporation, the
joint venture agreement or similar governing document of any Group Member that is a joint venture and the governing or organizational or similar documents of any other Group Member that is a Person other than a limited or general partnership,
limited liability company, corporation or joint venture, in each case as such may be amended, supplemented or restated from time to time. 

“Holder” as used in Section 7.12, has the meaning assigned to such term in Section 7.12(a). 

  
 - 6 - 

 “Incentive Distribution Right” means a
non-voting Limited Partner Interest issued to the General Partner, which Partnership Interest will confer upon the holder thereof only the rights and obligations specifically provided in this Agreement
with respect to Incentive Distribution Rights (and no other rights otherwise available to or other obligations of a holder of a Partnership Interest). Notwithstanding anything in this Agreement to the contrary, the holder of an Incentive
Distribution Right shall not be entitled to vote such Incentive Distribution Right on any Partnership matter except as may otherwise be required by law. 

“Incentive Distributions” means any amount of cash distributed to the holders of the Incentive Distribution Rights pursuant
to Sections 6.3(c), (d) and (e). 
 “Indemnified Persons” has the meaning assigned to such term in
Section 7.12(c). 
 “Indemnitee” means (a) the General Partner, (b) any Departing General Partner,
(c) any Person who is or was an Affiliate of the General Partner or any Departing General Partner, (d) any Person who is or was a member, partner, director, officer, fiduciary or trustee of any Person which any of the preceding clauses of
this definition describes, (e) any Person who is or was serving at the request of the General Partner or any Departing General Partner or any Affiliate of the General Partner or any Departing General Partner as an officer, director, member,
partner, fiduciary or trustee of another Person (provided, however, that a Person shall not be an Indemnitee by reason of providing, on a fee-for-services basis,
trustee, fiduciary or custodial services), and (f) any other Person the General Partner designates as an “Indemnitee” for purposes of this Agreement. 

“Initial Common Units” means the Common Units sold in the Initial Offering. 

“Initial Limited Partners” means Teekay Corporation and the General Partner (with respect to the Incentive Distribution
Rights received by it pursuant to Section 5.1(b)), and the Underwriters, in each case upon being admitted to the Partnership in accordance with Section 10.1. 

“Initial Offering” means the initial offering and sale of Common Units to the public, as described in the Registration
Statement. 
 “Initial Unit Price” means (a) with respect to the Common Units, $21.00 (the initial public offering
price per Common Unit at which the Underwriters offered the Common Units to the public for sale) or (b) with respect to any other class or series of Units, the price per Unit at which such class or series of Units is initially sold by the
Partnership, as determined by the General Partner, in each case adjusted as the General Partner determines to be appropriate to give effect to any distribution, subdivision or combination of Units. 

“Interim Capital Transactions” means the following transactions if they occur prior to the Liquidation Date:
(a) borrowings, refinancings or refundings of indebtedness (other than Working Capital Borrowings and other than for items purchased on open account in the ordinary course of business) by any Group Member and sales of debt securities of any
Group Member; (b) sales of equity interests of any Group Member (including the Common Units sold to the Underwriters pursuant to the exercise of the Over-Allotment Option); (c) sales or other voluntary or involuntary dispositions of any
assets of any Group Member other than (i) sales or other 

  
 - 7 - 

 
dispositions of inventory, accounts receivable and other assets in the ordinary course of business and (ii) sales or other dispositions of assets as part of normal retirements or
replacements; (d) the termination of interest rate swap agreements; (e) capital contributions received; and (f) corporate reorganizations or restructurings. 

“Investment Capital Expenditures” means capital expenditures other than Maintenance Capital Expenditures or Expansion Capital
Expenditures. 
 “Issue Price” means the price at which a Unit is purchased from the Partnership, after reflecting any
sales commission or underwriting discount charged to the Partnership. 
 “Junior Securities” has the meaning assigned to
such term in Section 16.7. 
 “Limited Partner” means, unless the context otherwise requires, the Organizational
Limited Partner prior to its withdrawal from the Partnership, each Initial Limited Partner, each additional Person that becomes a Limited Partner pursuant to the terms of this Agreement and any Departing General Partner upon the change of its status
from General Partner to Limited Partner pursuant to Section 11.3, in each case, in such Person’s capacity as a limited partner of the Partnership; provided, however, that when the term “Limited Partner” is
used herein in the context of any vote or other approval, including Articles XIII and XIV, such term shall not, solely for such purpose, include any holder of an Incentive Distribution Right (solely with respect to its Incentive Distribution
Rights and not with respect to any other Limited Partner Interest held by such Person) except as may otherwise be required by law. Limited Partners may include custodians, nominees or any other individual or entity in its own or any representative
capacity. 
 “Limited Partner Interest” means the ownership interest of a Limited Partner in the Partnership, which may be
evidenced by Common Units, Preferred Units, Incentive Distribution Rights or other Partnership Securities or a combination thereof or interest therein, and includes any and all benefits to which such Limited Partner is entitled as provided in this
Agreement, together with all obligations of such Limited Partner to comply with the terms and provisions of this Agreement; provided, however, that when the term “Limited Partner Interest” is used herein in the context
of any vote or other approval, including Articles XIII and XIV, such term shall not, solely for such purpose, include any Incentive Distribution Right except as may otherwise be required by law. 

“Liquidation Date” means (a) in the case of an event giving rise to the dissolution of the Partnership of the type
described in clauses (a) and (b) of the first sentence of Section 12.2, the date on which the applicable time period during which the holders of Outstanding Units have the right to elect to continue the business of the Partnership has
expired without such an election being made, and (b) in the case of any other event giving rise to the dissolution of the Partnership, the date on which such event occurs. 

“Liquidation Event” means the occurrence of a dissolution or liquidation of the Partnership, whether voluntary or
involuntary; provided, however, that a Liquidation Event shall not precede the Liquidation Date. Neither the sale of all or substantially all of the property or business of the Partnership nor the consolidation or merger of the
Partnership with or into any other Person, individually or in a series of transactions, shall be deemed a Liquidation Event. 

  
 - 8 - 

 “Liquidation Preference” means, in connection with any distribution in
connection with a Liquidation Event pursuant to Section 12.4 and with respect to any holder of any class or series of Partnership Securities, the amount otherwise payable to such holder in such distribution with respect to such class or series
of Partnership Securities (assuming no limitation on the assets of the Partnership available for such distribution), including an amount equal to any accrued but unpaid distributions thereon to the date fixed for such payment, whether or not
declared (if the terms of the applicable class or series of Partnership Securities so provide). For avoidance of doubt, for the foregoing purposes (a) the Series A Liquidation Preference is the Liquidation Preference with respect to the
Series A Preferred Units, (b) the Series B Liquidation Preference is the Liquidation Preference with respect to the Series B Preferred Units and (c) the Series E Liquidation Preference is the Liquidation Preference with respect to the
Series E Preferred Units. 
 “Liquidator” means one or more Persons selected by the General Partner to perform the
functions described in Section 12.4. 
 “London Business Day” means any day on which dealings in deposits in U.S.
dollars are transacted in the London interbank market. 
 “Maintenance Capital Expenditures” means cash expenditures
(including expenditures for the addition or improvement to the capital assets owned by any Group Member or for the acquisition or conversion of existing, or the construction of new, capital assets) if such expenditure is made to maintain the
operating capacity or asset base of the Partnership Group. Maintenance Capital Expenditures shall not include (a) Expansion Capital Expenditures or (b) expenditures made solely for investment purposes (as opposed to maintenance purposes).
Maintenance Capital Expenditures shall include interest (and related fees) on debt incurred and distributions on equity incurred, in each case, to finance the conversion or construction of a replacement asset and paid during the period beginning on
the date that the Group Member enters into a binding obligation to commence converting or constructing a replacement asset and ending on the earlier to occur of the date that such replacement asset Commences Commercial Service or the date that such
replacement asset is abandoned or disposed of. Debt incurred to pay or equity issued to fund the conversion or construction period interest payments, or such conversion or construction period distributions on equity shall also be deemed to be debt
or equity, as the case may be, incurred to finance the conversion or construction of a replacement asset. 
 “Marshall Islands
Act” means the Limited Partnership Act of the Marshall Islands, as amended, supplemented or restated from time to time, and any successor to such statute. 

“Marshall Islands Registrar” means the Registrar of Corporations responsible for
non-resident entities as described in Section 4 of the Marshall Islands Business Corporations Act. 

“Merger Agreement” has the meaning assigned to such term in Section 14.1. 

“Minimum Quarterly Distribution” means $0.35 per Common Unit per Quarter, subject to adjustment in accordance with
Section 6.5. 

  
 - 9 - 

 “National Securities Exchange” means an exchange registered with the Commission
under Section 6(a) of the Securities Exchange Act of 1934, as amended, supplemented or restated from time to time, and any successor to such statute. 

“Net Agreed Value” means, (a) in the case of any Contributed Property, the Agreed Value of such property reduced by any
liabilities either assumed by the Partnership upon such contribution or to which such property is subject when contributed, and (b) in the case of any property distributed to a Partner by the Partnership, the Agreed Value of such property,
reduced by any indebtedness either assumed by such Partner upon such distribution or to which such property is subject at the time of distribution. 

“Notice of Election to Purchase” has the meaning assigned to such term in Section 15.1(b). 

“Omnibus Agreement” means that Amended and Restated Omnibus Agreement, dated as of the Closing Date, among Teekay
Corporation, Teekay LNG Partners L.P., Teekay GP L.L.C., Teekay LNG Operating L.L.C., the General Partner, the Partnership, Teekay Offshore Operating GP L.L.C. and the Operating Company. 

“Operating Company” means Teekay Offshore Operating L.P., a Marshall Islands limited partnership, and any successors thereto.

 “Operating Company Agreement” means the First Amended and Restated Agreement of Limited Partnership of the Operating
Company, as it may be amended, supplemented or restated from time to time. 
 “Operating Expenditures” means all
Partnership Group expenditures (or the Partnership’s proportionate share of expenditures in the case of Subsidiaries that are not wholly owned), including taxes, reimbursements of the General Partner, repayment of Working Capital Borrowings,
debt service payments, capital expenditures and Preferred Unit Distributions, subject to the following: 

(a)    repayment of Working Capital Borrowings deducted from Operating Surplus pursuant to clause (b)(iii)
of the definition of Operating Surplus shall not constitute Operating Expenditures when actually repaid; 

(b)    payments (including prepayments and prepayment penalties) of principal of and premium on
indebtedness other than Working Capital Borrowings shall not constitute Operating Expenditures; and 

(c)    Operating Expenditures shall not include (i) Expansion Capital Expenditures, Investment Capital
Expenditures or actual Maintenance Capital Expenditures, but shall include Estimated Maintenance Capital Expenditures, (ii) payment of transaction expenses (including taxes) relating to Interim Capital Transactions, (iii) Preferred Unit
Redemption Payments, (iv) payments made to Preferred Unit Holders to purchase or otherwise acquire Preferred Units in accordance with Section 7.1(a)(xiii) or 7.11, or (v) distributions to Partners, other than Preferred Unit
Distributions. 

  
 - 10 - 

 Where capital expenditures consist of both (x) Maintenance Capital Expenditures and
(y) Expansion Capital Expenditures and/or Investment Capital Expenditures, the General Partner, with the concurrence of the Conflicts Committee, shall determine the allocation between the amounts paid for each. 

“Operating Surplus” means, with respect to any period ending prior to the Liquidation Date, on a cumulative basis and without
duplication: 
 (a)    the sum of (i) $15 million, (ii) all cash receipts of the
Partnership Group (or the Partnership’s proportionate share of cash receipts in the case of Subsidiaries that are not wholly owned) for the period beginning on the Closing Date and ending on the last day of such period, other than cash receipts
from Interim Capital Transactions, (iii) all cash receipts of the Partnership Group (or the Partnership’s proportionate share of cash receipts in the case of Subsidiaries that are not wholly owned) after the end of such period but on or
before the date of determination of Operating Surplus with respect to such period resulting from Working Capital Borrowings and (iv) the amount of distributions paid on equity issued in connection with the conversion or construction of a
Capital Improvement or replacement asset and paid during the period beginning on the date that the Group Member enters into a binding obligation to commence conversion or construction of such Capital Improvement or replacement asset and ending on
the earlier to occur of the date that such Capital Improvement or replacement asset Commences Commercial Service or the date that it is abandoned or disposed of (equity issued to fund the conversion or construction period interest payments on debt
incurred (including periodic net payments under related interest rate swap agreements), or conversion or construction period distributions on equity issued, to finance the conversion or construction of a Capital Improvement or replacement asset
shall also be deemed to be equity issued to finance the conversion or construction of a Capital Improvement or replacement asset for purposes of this clause (iv)), less 

(b)    the sum of (i) Operating Expenditures for the period beginning on the Closing Date and ending
on the last day of such period, (ii) the amount of cash reserves (or the Partnership’s proportionate share of cash reserves in the case of Subsidiaries that are not wholly owned) established by the General Partner to provide funds for
future Operating Expenditures and (iii) all Working Capital Borrowings not repaid within twelve months after having been incurred; provided, however, that disbursements made (including contributions to a Group Member or
disbursements on behalf of a Group Member) or cash reserves established, increased or reduced after the end of such period but on or before the date of determination of Available Cash with respect to such period shall be deemed to have been made,
established, increased or reduced, for purposes of determining Operating Surplus, within such period if the General Partner so determines. 

Notwithstanding the foregoing, “Operating Surplus” with respect to the Quarter in which the Liquidation Date occurs and any
subsequent Quarter shall equal zero. 
 “Opinion of Counsel” means a written opinion of counsel (who may be regular counsel
to the Partnership or the General Partner or any of its Affiliates) acceptable to the General Partner. 

  
 - 11 - 

 “Option Closing Date” means the date or dates on which any Common Units are sold
by the Partnership to the Underwriters upon exercise of the Over-Allotment Option. 
 “Organizational Limited Partner”
means Teekay Corporation in its capacity as the organizational limited partner of the Partnership pursuant to this Agreement. 

“Original Agreement” means the First Amended and Restated Agreement of Limited Partnership of the Partnership dated as of
December 19, 2006. 
 “Outstanding” means, with respect to Partnership Securities, all Partnership Securities that are
issued by the Partnership and reflected as outstanding on the Partnership’s books and records as of the date of determination; provided, however, that if at any time any Person or Group (other than the General Partner or its
Affiliates) beneficially owns 20% or more of the Outstanding Partnership Securities of any class or series then Outstanding, all Partnership Securities owned by such Person or Group shall not be voted on any matter and shall not be considered to be
Outstanding when sending notices of a meeting of Limited Partners to vote on any matter (unless otherwise required by law), calculating required votes, determining the presence of a quorum or for other similar purposes under this Agreement, except
that Partnership Securities so owned shall be considered to be Outstanding for purposes of Section 11.1(b)(iv) (such Partnership Securities shall not, however, be treated as a separate class or series of Partnership Securities for purposes of
this Agreement); provided, further, that the foregoing limitation shall not apply to (i) any Person or Group who acquired 20% or more of the Outstanding Partnership Securities of any class or series then Outstanding directly from
the General Partner or its Affiliates, (ii) any Person or Group who acquired 20% or more of any Outstanding Partnership Securities of any class or series then Outstanding directly or indirectly from a Person or Group described in
clause (i) provided that the General Partner shall have notified such Person or Group in writing that such limitation shall not apply, (iii) any Person or Group who acquired 20% or more of any Partnership Securities issued by the
Partnership with the prior approval of the Board of Directors of the General Partner or (iv) with respect to any voting rights thereof, Preferred Units. 

“Over-Allotment Option” means the over-allotment option granted to the Underwriters by the Partnership pursuant to the
Underwriting Agreement. 
 “Parity Securities” has the meaning assigned to such term in Section 16.7(b). 

“Partners” means the General Partner and the Limited Partners. 

“Partnership” means Teekay Offshore Partners L.P., a Marshall Islands limited partnership, and any successors thereto. 

“Partnership Group” means the Partnership and its Subsidiaries, including the Operating Company, treated as a single entity.

 “Partnership Interest” means an interest in the Partnership, which shall include the General Partner
Interest and Limited Partner Interests. 

  
 - 12 - 

 “Partnership Security” means any class or series of equity interest in the
Partnership (but excluding any options, rights, warrants and appreciation rights relating to an equity interest in the Partnership), including Common Units, Preferred Units and Incentive Distribution Rights. 

“Paying Agent” means Computershare, acting in its capacity as paying agent for the particular series of Preferred Units, and
its respective successors and assigns or any other payment agent appointed by the General Partner; provided, however, that if no Paying Agent is specifically designated for a particular series of Preferred Units, the General Partner
shall act in such capacity. 
 “Percentage Interest” means as of any date of determination (a) as to the General
Partner with respect to General Partner Units and as to any Unitholder with respect to Units (other than Preferred Units), the product obtained by multiplying (i) 100% less the percentage applicable to clause (b) below by (ii) the
quotient obtained by dividing (A) the number of Units (other than Preferred Units) held by such Unitholder or the number of General Partner Units held by the General Partner, as the case may be, by (B) the total number of all Outstanding
Units (other than Preferred Units) and General Partner Units, and (b) as to the holders of other Partnership Securities issued by the Partnership in accordance with Section 5.5, the percentage established as a part of such issuance. The
Percentage Interest with respect to an Incentive Distribution Right and to a Preferred Unit shall at all times be zero. 

“Person” means an individual or a corporation, firm, limited liability company, partnership, joint venture, trust,
unincorporated organization, association, governmental agency or political subdivision thereof or other entity. 
 “Preferred Unit
Distribution Payment Date” means the Series A Distribution Payment Date, Series B Distribution Payment Date or Series E Distribution Payment Date, as applicable. 

“Preferred Unit Distributions” means Series A Distributions, Series B Distributions and/or Series E Distributions, as
applicable.  
 “Preferred Unit Holders” means Series A Holders, Series B Holders and/or Series E Holders, as
applicable. 
 “Preferred Unit Liquidation Preference” means the Series A Liquidation Preference, Series B Liquidation
Preference or Series E Liquidation Preference, as applicable. 
 “Preferred Unit Payments” means Series A Payments, Series
B Payments and/or Series E Payments, as applicable. 
 “Preferred Unit Redemption Payments” means Series A Redemption
Payments, Series B Redemption Payments or Series E Redemption Payments, as applicable. 
 “Preferred Units” means a
Partnership Security, designated as a “Preferred Unit,” which entitles the holder thereof to a preference with respect to distributions, or as to the distribution of assets upon any Liquidation Event, over Common Units, including
the Series A Preferred Units, the Series B Preferred Units and the Series E Preferred Units. 

  
 - 13 - 

 “Prior Agreement” means the Fifth Amended and Restated Agreement of Limited
Partnership of the Partnership dated as of June 29, 2016. 
 “Pro Rata” means (a) when used with respect to Units
(other than Preferred Units) or any class or series thereof, apportioned equally among all designated Units (other than Preferred Units) in accordance with their relative Percentage Interests, (b) when used with respect to Partners or Record
Holders, apportioned among all Partners or Record Holders in accordance with their relative Percentage Interests and (c) when used with respect to holders of Incentive Distribution Rights or Preferred Units (or a particular series thereof),
apportioned equally among all holders of Incentive Distribution Rights or Preferred Units (or such series thereof) in accordance with the relative number or percentage of Incentive Distribution Rights or Preferred Units (or such series thereof), as
applicable, held by each such holder. 
 “Purchase Date” means the date determined by the General Partner as the date for
purchase of all Outstanding Limited Partner Interests of a certain class or series (other than Limited Partner Interests owned by the General Partner and its Affiliates) pursuant to Article XV. 

“Quarter” means, unless the context requires otherwise, a fiscal quarter, or, with respect to the first fiscal quarter
including the Closing Date, the portion of such fiscal quarter after the Closing Date, of the Partnership. 
 “Record Date”
means the date established by the General Partner or otherwise in accordance with this Agreement for determining (a) the identity of the Record Holders entitled to notice of, or to vote at, any meeting of Limited Partners or entitled to vote by
ballot or give approval of Partnership action in writing without a meeting or entitled to exercise rights in respect of any lawful action of Limited Partners or (b) the identity of Record Holders entitled to receive any report or distribution
or to participate in any offer. 
 “Record Holder” means (a) the Person in whose name a Common Unit is registered on
the books of the Transfer Agent as of the opening of business on a particular Business Day, (b) the Person in whose name a Preferred Unit is registered on the books of the Transfer Agent as of, unless otherwise set forth in Article XVI,
the opening of business on a particular Business Day, or (c) with respect to other Partnership Interests, the Person in whose name any such other Partnership Interest is registered on the books that the General Partner has caused to be kept as
of the opening of business on such Business Day. 
 “Registrar” means such bank, trust company or other Person (including
the General Partner or one of its Affiliates) as shall be appointed from time to time by the Partnership to act as registrar for the Common Units and the Preferred Units; provided, however, that if no registrar is specifically
designated for any other Partnership Securities, the General Partner shall act in such capacity. 
 “Registration
Statement” means the Registration Statement on Form F-1 (Registration No. 333-139116) as it has been or as it may be amended or supplemented from time
to time, filed by the Partnership with the Commission under the Securities Act to register the offering and sale of the Common Units in the Initial Offering. 

  
 - 14 - 

 “Reuters Page LIBOR01” means the display so designated on the Reuters 3000 Xtra
(or such other page as may succeed or replace the LIBOR01 page on that service). 
 “Second Target Distribution” means
$0.4375 per Common Unit per Quarter, subject to adjustment in accordance with Section 6.5. 
 “Securities Act” means
the Securities Act of 1933, as amended, supplemented or restated from time to time and any successor to such statute. 
 “Senior
Securities” has the meaning assigned to such term in Section 16.7(c). 
 “Series A Distribution Payment Date”
means each February 15, May 15, August 15 and November 15, commencing August 15, 2013; provided, however, that if any Series A Distribution Payment Date would otherwise occur on a day that is not a Business Day, payment of
Series A Distributions that would otherwise be payable on such date shall instead occur on the immediately succeeding Business Day as provided for in Section 16.3(a). 

“Series A Distribution Period” means a period of time from and including the preceding Series A Distribution Payment
Date (other than the initial Series A Distribution Period, which shall commence on and include the Series A Original Issue Date), to but excluding the next Series A Distribution Payment Date for such Series A Distribution Period.

 “Series A Distribution Rate” means a rate equal to 7.25% per annum of the Stated Series A Liquidation Preference
per Series A Preferred Unit. 
 “Series A Distribution Record Date” has the meaning assigned to
such term in Section 16.3(b). 
 “Series A Distributions” means distributions with respect to Series A Preferred Units
pursuant to Section 16.3.  
 “Series A Holder” means a Record Holder of the Series A
Preferred Units. 
 “Series A Liquidation Preference” means a liquidation preference for each
Series A Preferred Unit initially equal to the Stated Series A Liquidation Preference per unit, which liquidation preference shall be subject to (a) increase by the per Series A Preferred Unit amount of any accumulated and unpaid
distributions (whether or not such distributions shall have been declared) and (b) decrease upon a distribution in connection with a Liquidation Event described in Section 16.4 which does not result in payment in full of the liquidation
preference of such Series A Preferred Unit. 
 “Series A Original Issue Date” means April 30, 2013. 

“Series A Payments” means, collectively, Series A Distributions and Series A Redemption Payments. 

“Series A Preferred Unit” means a Preferred Unit having the designations, preferences, rights, powers and duties set forth in
Article XVI. 

  
 - 15 - 

 “Series A Redemption Date” has the meaning assigned to such term in
Section 16.6. 
 “Series A Redemption Notice” has the meaning assigned to such term in Section 16.6(b). 

“Series A Redemption Price” has the meaning assigned to such term in Section 16.6(a). 

“Series A Redemption Payments” means payments to be made to the holders of Series A Preferred Units to redeem
Series A Preferred Units in accordance with Section 16.6. 
 “Series B Distribution Payment Date” means each
February 15, May 15, August 15 and November 15, commencing August 15, 2015; provided, however, that if any Series B Distribution Payment Date would otherwise occur on a day that is not a Business Day, payment of Series B
Distributions that would otherwise be payable on such date shall instead occur on the immediately succeeding Business Day as provided for in Section 16.3(a). 

“Series B Distribution Period” means a period of time from and including the preceding Series B Distribution Payment Date
(other than the initial Series B Distribution Period, which shall commence on and include the Series B Original Issue Date), to but excluding the next Series B Distribution Payment Date for such Series B Distribution Period. 

“Series B Distribution Rate” means a rate equal to 8.50% per annum of the Stated Series B Liquidation Preference per Series B
Preferred Unit. 
 “Series B Distribution Record Date” has the meaning assigned to such term in Section 16.3(b). 

“Series B Distributions” means distributions with respect to Series B Preferred Units pursuant to Section 16.3. 

 “Series B Holder” means a Record Holder of the Series B Preferred Units. 

“Series B Liquidation Preference” means a liquidation preference for each Series B Preferred Unit initially equal to the
Stated Series B Liquidation Preference per unit, which liquidation preference shall be subject to (a) increase by the per Series B Preferred Unit amount of any accumulated and unpaid distributions (whether or not such distributions shall have
been declared) and (b) decrease upon a distribution in connection with a Liquidation Event described in Section 16.4 which does not result in payment in full of the liquidation preference of such Series B Preferred Unit. 

“Series B Original Issue Date” means April 20, 2015. 

“Series B Payments” means, collectively, Series B Distributions and Series B Redemption Payments. 

“Series B Preferred Unit” means a Preferred Unit having the designations, preferences, rights, powers and duties set forth in
Article XVI. 
 “Series B Redemption Date” has the meaning assigned to such term in Section 16.6. 

  
 - 16 - 

 “Series B Redemption Notice” has the meaning assigned to such term in
Section 16.6(b). 
 “Series B Redemption Price” has the meaning assigned to such term in Section 16.6(a). 

“Series B Redemption Payments” means payments to be made to the holders of Series B Preferred Units to redeem Series B
Preferred Units in accordance with Section 16.6. 
 “Series E Distribution Payment Date” means each February 15,
May 15, August 15 and November 15, commencing May 15, 2018; provided, however, that (i) if any Series E Distribution Payment Date during the Series E Fixed Rate Period would otherwise occur on a day that is not
a Business Day, payment of Series E Distributions that would otherwise be payable on such date shall instead occur on the immediately succeeding Business Day as provided for in Section 16.3(a), and (ii) if any Series E Distribution Payment
Date during the Series E Floating Rate Period would otherwise occur on a day that is not a Business Day, such Series E Distribution Payment Date shall instead be on the immediately succeeding Business Day. 

“Series E Distribution Period” means a period of time from and including the preceding Series E Distribution Payment Date
(other than the initial Series E Distribution Period, which shall commence on and include the Series E Original Issue Date), to but excluding the next Series E Distribution Payment Date for such Series E Distribution Period. 

“Series E Distribution Rate” means a rate equal to (a) during the Series E Fixed Rate Period, 8.875% per annum of the
Stated Series E Liquidation Preference per Series E Preferred Unit and (b) during the Series E Floating Rate Period, a percentage per annum of the Stated Series E Liquidation Preference per Series E Preferred Unit equal to the sum of
(i) Series E Three-Month LIBOR, as calculated on each applicable Series E LIBOR Determination Date, and (ii) 6.407%. 
 “Series
E Distribution Record Date” has the meaning assigned to such term in Section 16.3(b). 
 “Series E Distributions”
means distributions with respect to Series E Preferred Units pursuant to Section 16.3.  
 “Series E Fixed Rate
Period” means the period from and including the Series E Original Issue Date to, but not including, February 15, 2025. 

“Series E Floating Rate Period” means the period from and including February 15, 2025 to, but not including, the date
that all of the Series E Preferred Units are redeemed in full in accordance with Section 16.6 or are otherwise not outstanding. 

“Series E Holder” means a Record Holder of the Series E Preferred Units. 

“Series E LIBOR Determination Date” means the London Business Day immediately preceding the first date of the applicable
Series E Distribution Period during the Series E Floating Rate Period. 

  
 - 17 - 

 “Series E Liquidation Preference” means a liquidation preference for each Series
E Preferred Unit initially equal to the Stated Series E Liquidation Preference per unit, which liquidation preference shall be subject to (a) increase by the per Series E Preferred Unit amount of any accumulated and unpaid distributions
(whether or not such distributions shall have been declared) and (b) decrease upon a distribution in connection with a Liquidation Event described in Section 16.4 which does not result in payment in full of the liquidation preference of
such Series E Preferred Unit. 
 “Series E Original Issue Date” means January 23, 2018. 

“Series E Payments” means, collectively, Series E Distributions and Series E Redemption Payments. 

“Series E Preferred Unit” means a Preferred Unit having the designations, preferences, rights, powers and duties set forth in
Article XVI. 
 “Series E Redemption Date” has the meaning assigned to such term in Section 16.6. 

“Series E Redemption Notice” has the meaning assigned to such term in Section 16.6(b). 

“Series E Redemption Price” has the meaning assigned to such term in Section 16.6(a). 

“Series E Redemption Payments” means payments to be made to the holders of Series E Preferred Units to redeem Series E
Preferred Units in accordance with Section 16.6. 
 “Series E Three-Month LIBOR” means, in respect of each Series E
Distribution Period during the Series E Floating Rate Period, the following rate determined by the Calculation Agent, as of the applicable Series E LIBOR Determination Date in accordance with the following provisions: 

(a)    the rate (expressed as a percentage per year) for deposits in U.S. dollars for a three-month period commencing on
the first day of such period that appears on Reuters Page LIBOR01 as of 11:00 a.m. (London time) on the applicable Series E LIBOR Determination Date; or 

(b)    If the Calculation Agent determines that three-month LIBOR (as contemplated by the immediately preceding clause
(a)) has been discontinued, then it will determine whether to use a substitute or successor base rate that it has determined in its sole discretion is most comparable to three-month LIBOR, provided that if the Calculation Agent determines there is
an industry accepted successor base rate, the Calculation Agent shall use such successor base rate. If the Calculation Agent has determined a substitute or successor base rate in accordance with the foregoing, the Calculation Agent in its sole
discretion may also implement changes to the business day convention, the definition of business day, the Series E LIBOR Determination Date and any method for obtaining the substitute or successor base rate if such rate is unavailable on the
relevant business day, in a manner that is consistent with industry accepted practices for such substitute or successor base rate. Unless the Calculation Agent determines to use a substitute or successor base rate as so provided, the following will
apply: if the rate described in the immediately preceding clause (a) is not so published, the Calculation Agent shall select four 

  
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major banks in the London interbank market and request that the principal London offices of those four selected banks provide their offered quotations for deposits in U.S. dollars for a period of
three months, commencing on the first day of the applicable period, to prime banks in the London interbank market at approximately 11:00 a.m. (London time) on the Series E LIBOR Determination Date for such period. Offered quotations must be based on
a principal amount equal to an amount that, in the Calculation Agent’s judgment, is representative of a single transaction in U.S. dollars in the London interbank market at the time. If two or more quotations are provided, Series E Three-Month
LIBOR for such period will be the arithmetic mean of the quotations. If fewer than two quotations are provided, Series E Three-Month LIBOR for such period will be the arithmetic mean of the rates quoted on the Series E LIBOR Determination Date for
such period by three major banks in New York City selected by the Calculation Agent, for loans in U.S. dollars to leading European banks for a three-month period commencing on the first day of such period. The rates quoted must be based on an amount
that, in the Calculation Agent’s judgment, is representative of a single transaction in U.S. dollars in that market at the time. If fewer than three New York City banks selected by the Calculation Agent are quoting rates in the manner described
above, Series E Three-Month LIBOR for the applicable period will be the same as for the immediately preceding period or, if the immediately preceding period was within the Series E Fixed Rate Period, the same as for the most recent quarter for which
Series E Three-Month LIBOR can be determined. 
 All percentages resulting from any of the calculations described in the immediately
preceding clauses (a) and (b) will be rounded, if necessary, to the nearest one hundred-thousandth of a percentage point (with five one-millionths of a percentage point rounded upwards) and all dollar
amounts used in or resulting from such calculations will be rounded, if necessary, to the nearest cent (with one-half cent being rounded upwards). 

“Special Approval” means approval by a majority of the members of the Conflicts Committee. 

“Stated Preferred Unit Liquidation Preference” means the Stated Series A Liquidation Preference, Stated Series B Liquidation
Preference or Stated Series E Liquidation Preference, as applicable. 
 “Stated Series A Liquidation
Preference” means an amount equal to $25.00 per Series A Preferred Unit. 
 “Stated Series B
Liquidation Preference” means an amount equal to $25.00 per Series B Preferred Unit. 
 “Stated
Series E Liquidation Preference” means an amount equal to $25.00 per Series E Preferred Unit. 

“Subsidiary” means, with respect to any Person, (a) a corporation of which more than 50% of the voting power of shares
entitled (without regard to the occurrence of any contingency) to vote in the election of directors or other governing body of such corporation is owned, directly or indirectly, at the date of determination, by such Person, by one or more
Subsidiaries (as defined, but excluding subsection (d) of this definition) of such Person or a combination thereof, 

  
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(b) a partnership (whether general or limited) in which such Person or a Subsidiary (as defined, but excluding subsection (d) of this definition) of such Person is, at the date of
determination, a general or limited partner of such partnership, but only if more than 50% of the partnership interests of such partnership (considering all of the partnership interests of the partnership as a single class) is owned, directly or
indirectly, at the date of determination, by such Person, by one or more Subsidiaries (as defined, but excluding subsection (d) of this definition) of such Person, or a combination thereof, (c) any other Person (other than a
corporation or a partnership) in which such Person, one or more Subsidiaries (as defined, but excluding subsection (d) of this definition) of such Person, or a combination thereof, directly or indirectly, at the date of determination, has
(i) a majority ownership interest or (ii) the power to elect or direct the election of a majority of the directors or other governing body of such Person, or (d) any other Person in which such Person, one or more Subsidiaries (as
defined, but excluding subsection (d) of this definition) of such Person, or a combination thereof, directly or indirectly, at the date of determination, has (i) less than a majority ownership interest or (ii) less than the power
to elect or direct the election of a majority of the directors or other governing body of such Person, provided that (A) such Person, one or more Subsidiaries (as defined, but excluding this subsection (d) of this definition) of such
Person, or a combination thereof, directly or indirectly, at the date of the determination, has at least a 20% ownership interest in such other Person, (B) such Person accounts for such other Person (under U.S. GAAP, as in effect on the
later of the date of investment in such other Person or material expansion of the operations of such other Person) on a consolidated or equity accounting basis, (C) such Person has directly or indirectly material negative control rights
regarding such other Person including over such other Person’s ability to materially expand its operations beyond that contemplated at the date of investment in such other Person, and (D) such other Person is (i) other than with
respect to the Operating Company, formed and maintained for the sole purpose of owning or leasing, operating and chartering no more than 10 vessels for a period of no more than 40 years, and (ii) obligated under its constituent
documents, or as a result of a unanimous agreement of its owners, to distribute to its owners all of its income on at least an annual basis (less any cash reserves that are approved by such Person). 

“Surviving Business Entity” has the meaning assigned to such term in Section 14.2(b). 

“Third Target Distribution” means $0.525 per unit per Quarter, subject to adjustment in accordance with Section 6.5.

 “Trading Day” means, for the purpose of determining the Current Market Price of any class or series of Limited Partner
Interests, a day on which the principal National Securities Exchange on which such class or series of Limited Partner Interests is listed is open for the transaction of business or, if Limited Partner Interests of a class or series are not listed on
any National Securities Exchange, a day on which banking institutions in New York City generally are open. 
 “transfer”
has the meaning assigned to such term in Section 4.4(a). 
 “Transfer Agent” means such bank, trust company or other
Person (including the General Partner or one of its Affiliates) as shall be appointed from time to time by the Partnership to act as transfer agent for the Common Units and the Preferred Units; provided, however, that if no transfer
agent is specifically designated for any other Partnership Securities, the General Partner shall act in such capacity. 

  
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 “Underwriter” means each Person named as an underwriter in Schedule I to
the Underwriting Agreement who purchases Common Units pursuant thereto. 
 “Underwriting Agreement” means the Underwriting
Agreement dated December 13, 2006 among the Underwriters, the Partnership, the General Partner, the Operating Company, and Teekay Corporation, providing for the purchase of Common Units by such Underwriters. 

“Unit” means a Partnership Security that is designated as a “Unit” and shall include Common Units and
Preferred Units, but shall not include (i) General Partner Units (or the General Partner Interest represented thereby) or (ii) the Incentive Distribution Rights. 

“Unit Majority” means a majority of the Outstanding Common Units, voting as a class. 

“Unit Register” means the register of the Partnership for the registration and transfer of Limited Partnership Interests
as provided in Section 4.5. 
 “Unitholders” means the holders of Units. 

“Unrecovered Capital” means at any time, with respect to a Common Unit, the Initial Unit Price less the sum of all
distributions constituting Capital Surplus theretofore made in respect of an Initial Common Unit and any distributions of cash (or the Net Agreed Value of any distributions in kind) in connection with the dissolution and liquidation of the
Partnership theretofore made in respect of an Initial Common Unit, adjusted as the General Partner determines to be appropriate to give effect to any distribution, subdivision or combination of such Units. 

“U.S. GAAP” means United States generally accepted accounting principles consistently applied. 

“Working Capital Borrowings” means borrowings used solely for working capital purposes or to pay distributions to Partners
made pursuant to a credit facility, commercial paper facility or similar financing arrangement available to a Group Member, provided that when such borrowing is incurred it is the intent of the borrower to repay such borrowing within 12 months
from sources other than additional Working Capital Borrowings. 
  

	Section 1.2	Construction. 

 Unless the context requires otherwise: (a) any pronoun used in this
Agreement shall include the corresponding masculine, feminine or neuter forms, and the singular form of nouns, pronouns and verbs shall include the plural and vice versa; (b) references to Articles and Sections refer to Articles and Sections of
this Agreement; (c) the term “include” or “includes” means includes, without limitation, and “including” means including, without limitation; and (d) the terms “hereof”, “herein” and
“hereunder” refer to this Agreement as a whole and not to any particular provision of this Agreement. The table of contents and headings contained in this Agreement are for reference purposes only, and shall not affect in any way the
meaning or interpretation of this Agreement. 

  
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 ARTICLE II 

ORGANIZATION 
  

	Section 2.1	Formation. 

 The General Partner and the Organizational Limited Partner have previously
formed the Partnership as a limited partnership pursuant to the provisions of the Marshall Islands Act and hereby amend and restate the Prior Agreement in its entirety. This amendment and restatement shall become effective on the date of this
Agreement. Except as expressly provided to the contrary in this Agreement, the rights, duties (including fiduciary duties), liabilities and obligations of the Partners and the administration, dissolution and termination of the Partnership shall be
governed by the Marshall Islands Act. All Partnership Interests shall constitute personal property of the owner thereof for all purposes and a Partner has no interest in specific Partnership property. 

 

	Section 2.2	Name. 

 The name of the Partnership shall be “Teekay Offshore Partners L.P.”
The Partnership’s business may be conducted under any other name or names as determined by the General Partner, including the name of the General Partner. The words “Limited Partnership” or the letters “L.P.” or similar
words or letters shall be included in the Partnership’s name where necessary for the purpose of complying with the laws of any jurisdiction that so requires. The General Partner may change the name of the Partnership at any time and from time
to time and shall notify the Limited Partners of such change in the next regular communication to the Limited Partners. 
  

	Section 2.3	Registered Office; Registered Agent; Principal Office; Other Offices. 

 Unless and until
changed by the General Partner, the registered office of the Partnership in the Marshall Islands shall be located at Trust Company Complex, Ajeltake Island, Ajeltake Road, Majuro, Marshall Islands MH 96960, and the registered agent for service of
process on the Partnership in the Marshall Islands at such registered office shall be The Trust Company of The Marshall Islands, Inc. The principal office of the Partnership shall be located at 4th Floor, Belvedere Building, 69 Pitts Bay Road,
Hamilton, HM 08, Bermuda or such other place as the General Partner may from time to time designate by notice to the Limited Partners. The Partnership may maintain offices at such other place or places within or outside the Marshall Islands as the
General Partner determines to be necessary or appropriate. The address of the General Partner shall be 4th Floor, Belvedere Building, 69 Pitts Bay Road, Hamilton, HM 08, Bermuda or such other place as the General Partner may from time to time
designate by notice to the Limited Partners. 
  

	Section 2.4	Purpose and Business. 

 The purpose and nature of the business to be conducted by the
Partnership shall be to (a) engage directly in, or enter into or form any corporation, partnership, joint venture, limited 

  
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liability company or other arrangement to engage indirectly in, any business activity that is approved by the General Partner and that lawfully may be conducted by a limited partnership organized
pursuant to the Marshall Islands Act and, in connection therewith, to exercise all of the rights and powers conferred upon the Partnership pursuant to the agreements relating to such business activity, and (b) do anything necessary or
appropriate to the foregoing, including the making of capital contributions or loans to a Group Member. The General Partner shall have no duty or obligation to propose or approve, and may decline to propose or approve, the conduct by the Partnership
of any business free of any fiduciary duty or obligation whatsoever to the Partnership, any Limited Partner and, in declining to so propose or approve, shall not be required to act in good faith or pursuant to any other standard imposed by this
Agreement, any Group Member Agreement, any other agreement contemplated hereby or under the Marshall Islands Act or any other law, rule or regulation. 
  

	Section 2.5	Powers. 

 The Partnership shall be empowered to do any and all acts and things necessary
and appropriate for the furtherance and accomplishment of the purposes and business described in Section 2.4 and for the protection and benefit of the Partnership. 
  

	Section 2.6	Power of Attorney. 

 (a)    Each Limited Partner hereby constitutes
and appoints the General Partner and, if a Liquidator shall have been selected pursuant to Section 12.3, the Liquidator (and any successor to the Liquidator by merger, transfer, assignment, election or otherwise) and each of their authorized
officers and attorneys-in-fact, as the case may be, with full power of substitution, as his true and lawful agent and attorney-in-fact, with full power and authority in his name, place and stead, to: 

(i)    execute, swear to, acknowledge, deliver, file and record in the appropriate public offices (A) all
certificates, documents and other instruments (including this Agreement and the Certificate of Limited Partnership and all amendments or restatements hereof or thereof) that the General Partner or the Liquidator determines to be necessary or
appropriate to form, qualify or continue the existence or qualification of the Partnership as a limited partnership (or a partnership in which the limited partners have limited liability) in the Marshall Islands and in all other jurisdictions in
which the Partnership may conduct business or own property; (B) all certificates, documents and other instruments that the General Partner or the Liquidator determines to be necessary or appropriate to reflect, in accordance with its terms, any
amendment, change, modification or restatement of this Agreement; (C) all certificates, documents and other instruments (including conveyances and a certificate of cancellation) that the General Partner or the Liquidator determines to be
necessary or appropriate to reflect the dissolution and liquidation of the Partnership pursuant to the terms of this Agreement; (D) all certificates, documents and other instruments relating to the admission, withdrawal, removal or substitution
of any Partner pursuant to, or other events described in, Articles IV, X, XI or XII; (E) all certificates, documents and other instruments relating to the determination of the rights, preferences and privileges of any class or series of
Partnership Securities issued pursuant to Section 5.5; and (F) all certificates, documents and other instruments (including agreements and a certificate of merger) relating to a merger, consolidation or conversion of the Partnership
pursuant to Article XIV; and 

  
 - 23 - 

 (ii)    execute, swear to, acknowledge, deliver, file and record all ballots,
consents, approvals, waivers, certificates, documents and other instruments that the General Partner or the Liquidator determines to be necessary or appropriate to (A) make, evidence, give, confirm or ratify any vote, consent, approval,
agreement or other action that is made or given by the Partners hereunder or is consistent with the terms of this Agreement or (B) effectuate the terms or intent of this Agreement; provided, however, that when required by
Section 13.3 or any other provision of this Agreement that establishes a percentage of the Limited Partners or of the Limited Partners of any class or series required to take any action, the General Partner and the Liquidator may exercise the
power of attorney made in this Section 2.6(a)(ii) only after the necessary vote, consent or approval of the Limited Partners or of the Limited Partners of such class or series, as applicable. 

Nothing contained in this Section 2.6(a) shall be construed as authorizing the General Partner to amend this Agreement except in accordance with
Article XIII or as may be otherwise expressly provided for in this Agreement. 
 (b)    The foregoing power of
attorney is hereby declared to be irrevocable and a power coupled with an interest, and it shall survive and, to the maximum extent permitted by law, not be affected by the subsequent death, incompetency, disability, incapacity, dissolution,
bankruptcy or termination of any Limited Partner and the transfer of all or any portion of such Limited Partner’s Partnership Interest and shall extend to such Limited Partner’s heirs, successors, assigns and personal representatives.
Each such Limited Partner hereby agrees to be bound by any representation made by the General Partner or the Liquidator acting in good faith pursuant to such power of attorney; and each such Limited Partner, to the maximum extent permitted by law,
hereby waives any and all defenses that may be available to contest, negate or disaffirm the action of the General Partner or the Liquidator taken in good faith under such power of attorney. Each Limited Partner shall execute and deliver to the
General Partner or the Liquidator, within 15 days after receipt of the request therefor, such further designation, powers of attorney and other instruments as the General Partner or the Liquidator determines to be necessary or appropriate to
effectuate this Agreement and the purposes of the Partnership. 
  

	Section 2.7	Term. 

 The term of the Partnership commenced upon the filing of the Certificate of
Limited Partnership in accordance with the Marshall Islands Act and shall continue in existence until the dissolution of the Partnership in accordance with the provisions of Article XII. The existence of the Partnership as a separate legal
entity shall continue until the cancellation of the Certificate of Limited Partnership as provided in the Marshall Islands Act. 
  

	Section 2.8	Title to Partnership Assets. 

 Title to Partnership assets, whether real, personal or
mixed and whether tangible or intangible, shall be deemed to be owned by the Partnership as an entity, and no Partner, individually or collectively, shall have any ownership interest in such Partnership assets or any

  
 - 24 - 

 
portion thereof. Title to any or all of the Partnership assets may be held in the name of the Partnership, the General Partner, one or more of its Affiliates or one or more nominees, as the
General Partner may determine. The General Partner hereby declares and warrants that any Partnership assets for which record title is held in the name of the General Partner or one or more of its Affiliates or one or more nominees shall be held by
the General Partner or such Affiliate or nominee for the use and benefit of the Partnership in accordance with the provisions of this Agreement; provided, however, that the General Partner shall use commercially reasonable efforts to
cause record title to such assets (other than those assets in respect of which the General Partner determines that the expense and difficulty of conveyancing makes transfer of record title to the Partnership impracticable) to be vested in the
Partnership as soon as reasonably practicable; and, provided further, that, prior to the withdrawal or removal of the General Partner or as soon thereafter as practicable, the General Partner shall use reasonable efforts to effect the transfer of
record title to the Partnership and, prior to any such transfer, will provide for the use of such assets in a manner satisfactory to the General Partner. All Partnership assets shall be recorded as the property of the Partnership in its books and
records, irrespective of the name in which record title to such Partnership assets is held. 
 ARTICLE III 

RIGHTS OF LIMITED PARTNERS 
  

	Section 3.1	Limitation of Liability. 

 The Limited Partners shall have no liability under this
Agreement except as expressly provided in this Agreement or the Marshall Islands Act. 
  

	Section 3.2	Management of Business. 

 No Limited Partner, in its capacity as such, shall participate
in the operation, management or control (within the meaning of the Marshall Islands Act) of the Partnership’s business, transact any business in the Partnership’s name or have the power to sign documents for or otherwise bind the
Partnership. Any action taken by any Affiliate of the General Partner or any officer, director, employee, manager, member, general partner, agent or trustee of the General Partner or any of its Affiliates, or any officer, director, employee,
manager, member, general partner, agent or trustee of a Group Member, in its capacity as such, shall not be deemed to be participation in the control of the business of the Partnership by a limited partner of the Partnership (within the meaning of
Section 30 of the Marshall Islands Act) and shall not affect, impair or eliminate the limitations on the liability of the Limited Partners under this Agreement. 
  

	Section 3.3	Outside Activities of the Limited Partners. 

 Subject to the provisions of
Section 7.5 and the Omnibus Agreement, which shall continue to be applicable to the Persons referred to therein, regardless of whether such Persons shall also be Limited Partners, any Limited Partner shall be entitled to and may have business
interests and engage in business activities in addition to those relating to the Partnership, including business interests and activities in direct competition with the Partnership Group. Neither the Partnership nor any of the other Partners shall
have any rights by virtue of this Agreement in any business ventures of any Limited Partner. 

  
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	Section 3.4	Rights of Limited Partners. 

 (a)    In addition to other rights
provided by this Agreement or by applicable law, and except as limited by Section 3.4(b), each Limited Partner shall have the right, for a purpose reasonably related to such Limited Partner’s interest as a Limited Partner in the
Partnership, upon reasonable written demand and at such Limited Partner’s own expense, to: 
 (i)    obtain,
promptly after becoming available, a copy of the Partnership’s financial statements or income tax returns, if applicable, for each year; 

(ii)    have furnished to him a current list of the name and last known business, residence or mailing address of each
Partner; 
 (iii)    obtain true and full information regarding the amount of cash and a description and statement of
the Net Agreed Value of any other Capital Contribution by each Partner and which each Partner has agreed to contribute in the future, and the date on which each became a Partner; 

(iv)    have furnished to him a copy of this Agreement and the Certificate of Limited Partnership and all amendments
thereto, together with a copy of the executed copies of all powers of attorney pursuant to which this Agreement, the Certificate of Limited Partnership and all amendments thereto have been executed; 

(v)    obtain true and full information regarding the status of the business and financial condition of the Partnership
Group; and 
 (vi)    obtain such other information regarding the affairs of the Partnership as is just and
reasonable. 
 (b)    The General Partner may keep confidential from the Limited Partners, for such period of time as
the General Partner deems reasonable, (i) any information that the General Partner reasonably believes to be in the nature of trade secrets or (ii) other information the disclosure of which the General Partner in good faith believes
(A) is not in the best interests of the Partnership Group, (B) could damage the Partnership Group or (C) that any Group Member is required by law or by agreement with any third party to keep confidential (other than agreements with
Affiliates of the Partnership the primary purpose of which is to circumvent the obligations set forth in this Section 3.4). 

ARTICLE IV 

CERTIFICATES; RECORD HOLDERS; TRANSFER OF PARTNERSHIP INTERESTS 

 

	Section 4.1	Certificates. 

 Upon the Partnership’s issuance of Common Units or Preferred Units
to any Person and subject to Section 16.2(b) with respect to any series of Preferred Units described therein, the Partnership shall issue, upon the request of such Person, one or more Certificates in the name of such Person evidencing the
number of such Units being so issued. In addition, (a) upon the General Partner’s request, the Partnership shall issue to it one or more Certificates in the name of 

  
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the General Partner evidencing its General Partner Units and (b) upon the request of any Person owning Incentive Distribution Rights or any other Partnership Securities other than Common
Units or Preferred Units, the Partnership shall issue to such Person one or more certificates evidencing such Incentive Distribution Rights or other Partnership Securities other than Common Units or Preferred Units. Certificates shall be executed on
behalf of the Partnership by the Chairman of the Board, President or any Executive Vice President or Vice President and the Chief Financial Officer or the Secretary or any Assistant Secretary of the General Partner. No Common Unit Certificate or
Preferred Unit Certificate shall be valid for any purpose until it has been countersigned by the Transfer Agent; provided, however, that if the General Partner elects to issue Common Units or Preferred Units in global form, the Common
Unit Certificates or the Preferred Unit Certificates shall be valid upon receipt of a certificate from the Transfer Agent certifying that the Common Units or Preferred Units have been duly registered in accordance with the directions of the
Partnership. 
  

	Section 4.2	Mutilated, Destroyed, Lost or Stolen Certificates. 

 (a)    If any
mutilated Certificate is surrendered to the Transfer Agent, the appropriate officers of the General Partner on behalf of the Partnership shall execute, and the Transfer Agent shall countersign and deliver in exchange therefor, a new Certificate
evidencing the same number and type of Partnership Securities as the Certificate so surrendered. 
 (b)    The
appropriate officers of the General Partner on behalf of the Partnership shall execute and deliver, and the Transfer Agent shall countersign, a new Certificate in place of any Certificate previously issued if the Record Holder of the Certificate:

 (i)    makes proof by affidavit, in form and substance satisfactory to the General Partner, that a previously issued
Certificate has been lost, destroyed or stolen; 
 (ii)    requests the issuance of a new Certificate before the General
Partner has notice that the Certificate has been acquired by a purchaser for value in good faith and without notice of an adverse claim; 

(iii)    if requested by the General Partner, delivers to the General Partner a bond, in form and substance satisfactory
to the General Partner, with surety or sureties and with fixed or open penalty as the General Partner may direct to indemnify the Partnership, the Partners, the General Partner and the Transfer Agent against any claim that may be made on account of
the alleged loss, destruction or theft of the Certificate; and 
 (iv)    satisfies any other reasonable
requirements imposed by the General Partner. 
 If a Limited Partner fails to notify the General Partner within a reasonable period of time
after he has notice of the loss, destruction or theft of a Certificate, and a transfer of the Limited Partner Interests represented by the Certificate is registered before the Partnership, the General Partner or the Transfer Agent receives such
notification, the Limited Partner shall be precluded from making any claim against the Partnership, the General Partner or the Transfer Agent for such transfer or for a new Certificate. 

  
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 (c)    As a condition to the issuance of any new Certificate under this
Section 4.2, the General Partner may require the payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in relation thereto and any other expenses (including the fees and expenses of the Transfer Agent)
reasonably connected therewith. 
  

	Section 4.3	Record Holders. 

 The Partnership shall be entitled to recognize the Record Holder as the
Partner with respect to any Partnership Interest and, accordingly, shall not be bound to recognize any equitable or other claim to, or interest in, such Partnership Interest on the part of any other Person, regardless of whether the
Partnership shall have actual or other notice thereof, except as otherwise provided by law or any applicable rule, regulation, guideline or requirement of any National Securities Exchange on which such Partnership Interests are listed or
admitted to trading. Without limiting the foregoing, when a Person (such as a broker, dealer, bank, trust company or clearing corporation or an agent of any of the foregoing) is acting as nominee, agent or in some other representative capacity for
another Person in acquiring and/or holding Partnership Interests, as between the Partnership on the one hand, and such other Persons on the other, such representative Person shall be the Record Holder of such Partnership Interest. 

 

	Section 4.4	Transfer Generally. 

 (a)    The term “transfer,”
when used in this Agreement with respect to a Partnership Interest, shall be deemed to refer to a transaction (i) by which the General Partner assigns its General Partner Interest to another Person or by which a holder of Incentive
Distribution Rights assigns its Incentive Distribution Rights to another Person, and includes a sale, assignment, gift, pledge, encumbrance, hypothecation, mortgage, exchange or any other disposition by law or otherwise or (ii) by which the
holder of a Limited Partner Interest (other than an Incentive Distribution Right) assigns such Limited Partner Interest to another Person who is or becomes a Limited Partner, and includes a sale, assignment, gift, exchange or any other disposition
by law or otherwise, including any transfer upon foreclosure of any pledge, encumbrance, hypothecation or mortgage. 

(b)    No Partnership Interest shall be transferred, in whole or in part, except in accordance with the terms and
conditions set forth in this Article IV. Any transfer or purported transfer of a Partnership Interest not made in accordance with this Article IV shall be null and void. 

(c)    Nothing contained in this Agreement shall be construed to prevent a disposition by any stockholder, member, partner
or other owner of the General Partner of any or all of the shares of stock, membership interests, partnership interests or other ownership interests in the General Partner. 
  

	Section 4.5	Registration and Transfer of Limited Partner Interests. 

 (a)    The
General Partner shall keep or cause to be kept on behalf of the Partnership a register in which, subject to such reasonable regulations as it may prescribe and subject to the provisions of Section 4.5(b), the Partnership will provide for the
registration and transfer of Limited Partner Interests. The Registrar and Transfer Agent are hereby appointed registrar and 

  
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transfer agent for the purpose of registering Common Units and Preferred Units and transfers of such Common Units and Preferred Units as herein provided. The Partnership shall not recognize
transfers of Certificates evidencing Limited Partner Interests unless such transfers are effected in the manner described in this Section 4.5. Upon surrender of a Certificate for registration of transfer of any Limited Partner Interests
evidenced by a Certificate, and subject to the provisions of Section 4.5(b), the appropriate officers of the General Partner on behalf of the Partnership shall execute and deliver, and in the case of Common Units, the Transfer Agent shall
countersign and deliver, in the name of the holder or the designated transferee or transferees, as required pursuant to the holder’s instructions, one or more new Certificates evidencing the same aggregate number and type of Limited Partner
Interests as was evidenced by the Certificate so surrendered. 
 (b)    The General Partner shall not recognize any
transfer of Limited Partner Interests until the Certificates, if any, evidencing such Limited Partner Interests are surrendered for registration of transfer. No charge shall be imposed by the General Partner for such transfer; provided,
however, that as a condition to the issuance of any new Certificate under this Section 4.5, the General Partner may require the payment of a sum sufficient to cover any tax or other governmental charge that may be imposed with respect
thereto. 
 (c)    The General Partner and its Affiliates shall have the right at any time to transfer their Common
Units or any Preferred Units to one or more Persons. 
  

	Section 4.6	Transfer of the General Partner’s General Partner Interest. 

(a)    Subject to Section 4.6(b) below the General Partner may transfer all or any of its General Partner Interest
without Unitholder approval. 
 (b)    Notwithstanding anything herein to the contrary, no transfer by the General
Partner of all or any part of its General Partner Interest to another Person shall be permitted unless (i) the transferee agrees to assume the rights and duties of the General Partner under this Agreement and to be bound by the provisions of
this Agreement, (ii) the Partnership receives an Opinion of Counsel that such transfer would not result in the loss of limited liability of any Limited Partner or of any limited partner or member of any other Group Member and (iii) such
transferee also agrees to purchase all (or the appropriate portion thereof, if applicable) of the partnership or membership interest of the General Partner as the general partner or managing member, if any, of each other Group Member. In the case of
a transfer pursuant to and in compliance with this Section 4.6, the transferee or successor (as the case may be) shall, subject to compliance with the terms of Section 10.3, be admitted to the Partnership as the General Partner immediately
prior to the transfer of the General Partner Interest, and the business of the Partnership shall continue without dissolution. 
  

	Section 4.7	Transfer of Incentive Distribution Rights. 

 The General Partner or any other holder of
Incentive Distribution Rights may transfer any or all of its Incentive Distribution Rights without Unitholder approval. Notwithstanding anything herein to the contrary, no transfer of Incentive Distribution Rights to another Person shall be
permitted unless the transferee agrees to be bound by the provisions of this Agreement. 

  
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The General Partner and any transferee or transferees of the Incentive Distribution Rights may agree in a separate instrument as to the General Partner’s exercise of its rights with respect
to the Incentive Distribution Rights under Section 11.3 hereof. 
  

	Section 4.8	Restrictions on Transfers. 

 (a)    Except as provided in
Section 4.8(b) below, but notwithstanding the other provisions of this Article IV, no transfer of any Partnership Interests shall be made if such transfer would (i) violate the then applicable U.S. federal or state
securities laws, laws of the Marshall Islands, or rules and regulations of the Commission, any state securities commission or any other governmental authority with jurisdiction over such transfer or (ii) terminate the existence or qualification
of the Partnership or any Group Member under the laws of the jurisdiction of its formation. 
 (b)    Nothing contained
in this Article IV, or elsewhere in this Agreement, shall preclude the settlement of any transactions involving Partnership Interests entered into through the facilities of any National Securities Exchange on which such
Partnership Interests are listed or admitted to trading. 
 ARTICLE V 

CAPITAL CONTRIBUTIONS AND ISSUANCE OF PARTNERSHIP INTERESTS 
  

	Section 5.1	Organizational Contributions. 

 (a)    In connection with the
formation of the Partnership under the Marshall Islands Act, the General Partner made an initial Capital Contribution to the Partnership in the amount of $20, for a 2% General Partner Interest in the Partnership and was admitted as the General
Partner of the Partnership, and the Organizational Limited Partner made an initial Capital Contribution to the Partnership in the amount of $980 for a 98% Limited Partner Interest in the Partnership and was admitted as a Limited Partner of the
Partnership. 
 (b)    Prior to the Closing Date (i) the General Partner contributed its 0.52% ownership interest
in the Operating Company to the Partnership in exchange for (A) a continuation of its 2% General Partner Interest, (B) the Incentive Distribution Rights and (C) the assumption by the Partnership of a $2.7 million note
representing 2% of the total cash to be paid to Teekay Corporation from the proceeds of the Initial Offering, and (ii) Teekay Corporation contributed to the Partnership (A) all of its ownership interest in the general partner of the
Operating Company and (B) a 25.47% limited partner interest in the Operating Company, in exchange for a continuation of its 98% limited partner interest in the Partnership and a $131.7 million note representing 98% of the total cash to be
paid to Teekay Corporation from the proceeds of the Initial Offering. 
  

	Section 5.2	Initial Unit Issuances; General Partner Pre-emptive Rights. 

(a)    On or prior to the Closing Date and pursuant to the Contribution Agreement, (i) Teekay Corporation’s 98%
initial limited partner interest was converted into (A) 2,800,000 Common Units and (B) 9,800,000 Subordinated Units (as defined in the Original Agreement) and (ii) the Partnership issued to the General Partner, for no additional
consideration, 400,000 General Partner Units evidencing the General Partner’s 2% General Partner Interest. 

  
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 (b)    Upon the issuance of any additional Limited Partner Interests by the
Partnership (other than Common Units issued in the Initial Offering, including any Common Units issued pursuant to the Over-Allotment Option), the General Partner may, in exchange for a proportionate number of General Partner Units, make additional
Capital Contributions in an amount equal to the product obtained by multiplying (i) the quotient determined by dividing (A) the General Partner’s Percentage Interest immediately prior to such issuance by (B) 100 less the General
Partner’s Percentage Interest immediately prior to such issuance by (ii) the amount contributed to the Partnership by the Limited Partners in exchange for such additional Limited Partner Interests. The General Partner shall not be
obligated to make any additional Capital Contributions to the Partnership. The General Partner’s Percentage Interest shall not change as a result of the issuance of any Preferred Units. However, the General Partner shall be entitled to
participate in any Preferred Unit Payments only to the extent of its proportionate Capital Contribution with respect to any such issuance of the applicable series of Preferred Units. 

 

	Section 5.3	Contributions by Initial Limited Partners and Distributions to the General Partner and its Affiliates. 

(a)    On the Closing Date and pursuant to the Underwriting Agreement, each Underwriter contributed to the Partnership cash
in an amount equal to the Issue Price per Initial Common Unit, multiplied by the number of Common Units specified in the Underwriting Agreement to be purchased by such Underwriter at the Closing Date. In exchange for such Capital Contributions by
the Underwriters, the Partnership issued Common Units to each Underwriter on whose behalf such Capital Contribution was made in an amount equal to the number of Common Units specified in the Underwriting Agreement to be purchased by such Underwriter
on the Closing Date. 
 (b)    Upon exercise of the Over-Allotment Option, each Underwriter contributed to the
Partnership cash in an amount equal to the Issue Price per Initial Common Unit, multiplied by the number of Common Units to be purchased by such Underwriter at the Option Closing Date. In exchange for such Capital Contributions by the Underwriters,
the Partnership issued Common Units to each Underwriter on whose behalf such Capital Contribution was made in an amount equal to the quotient obtained by dividing (i) the cash contributions to the Partnership by or on behalf of such Underwriter
by (ii) the Issue Price per Initial Common Unit. Upon receipt by the Partnership of the Capital Contributions from the Underwriters as provided in this Section 5.3(b), the Partnership used such cash to redeem from Teekay Corporation that
number of Common Units equal to the number of Common Units issued to the Underwriters as provided in this Section 5.3(b). 

(c)    No Limited Partner Interests were issued or issuable as of or at the Closing Date other than (i) the Common
Units issuable pursuant to subparagraph (a) of this Section 5.3 in aggregate number equal to 7,000,000, (ii) the “Option Units” as such term is used in the Underwriting Agreement in an aggregate number up to
1,050,000 issuable upon exercise of the Over-Allotment Option pursuant to subparagraph (c) hereof, (iii) the 9,800,000 Subordinated Units issuable pursuant to Section 5.2 hereof, (iv) the 2,800,000 Common Units issuable
pursuant to Section 5.2 hereof, and (v) the Incentive Distribution Rights. 

  
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	Section 5.4	Interest and Withdrawal. 

 No interest shall be paid by the Partnership on Capital
Contributions. No Partner shall be entitled to the withdrawal or return of its Capital Contribution, except to the extent, if any, that distributions made pursuant to this Agreement or upon termination of the Partnership may be considered and
permitted as such by law and then only to the extent provided for in this Agreement. Except to the extent expressly provided in this Agreement, no Partner shall have priority over any other Partner either as to the return of Capital Contributions or
as to profits, losses or distributions. 
  

	Section 5.5	Issuances of Additional Partnership Securities. 

 (a)    Subject to
any approvals required by Preferred Unit Holders pursuant to Section 16.5(c)(ii), the Partnership may issue additional Partnership Securities and options, rights, warrants and appreciation rights relating to the Partnership Securities for any
Partnership purpose at any time and from time to time to such Persons for such consideration and on such terms and conditions as the General Partner shall determine, all without the approval of any Limited Partners. 

(b)    Each additional Partnership Security authorized to be issued by the Partnership pursuant to Section 5.5(a) may
be issued in one or more classes, or one or more series of any such classes, with such designations, preferences, rights, powers and duties (which may be senior to existing classes and series of Partnership Securities), as shall be fixed by the
General Partner, including (i) the right to share in Partnership distributions; (ii) the rights upon dissolution and liquidation of the Partnership; (iii) whether, and the terms and conditions upon which, the Partnership may or shall
be required to redeem the Partnership Security (including sinking fund provisions); (iv) whether such Partnership Security is issued with the privilege of conversion or exchange and, if so, the terms and conditions of such conversion or
exchange; (v) the terms and conditions upon which each Partnership Security will be issued, evidenced by certificates and assigned or transferred; (vi) the method for determining the Percentage Interest as to such Partnership Security; and
(vii) the right, if any, of each such Partnership Security to vote on Partnership matters, including matters relating to the relative rights, preferences and privileges of such Partnership Security. 

(c)    The General Partner shall take all actions that it determines to be necessary or appropriate in connection with
(i) each issuance of Partnership Securities and options, rights, warrants and appreciation rights relating to Partnership Securities pursuant to this Section 5.5, (ii) the conversion of the General Partner Interest (represented by
General Partner Units) or any Incentive Distribution Rights into Units pursuant to the terms of this Agreement, (iii) the admission of additional Limited Partners and (iv) all additional issuances of Partnership Securities. The General
Partner shall determine the relative rights, powers and duties of the holders of the Units or other Partnership Securities being so issued. The General Partner shall do all things necessary to comply with the Marshall Islands Act and is authorized
and directed to do all things that it determines to be necessary or appropriate in connection with any future issuance 

  
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of Partnership Securities or in connection with the conversion of the General Partner Interest or any Incentive Distribution Rights into Units pursuant to the terms of this Agreement, including
compliance with any statute, rule, regulation or guideline of any federal, state or other governmental agency or any National Securities Exchange on which the Units or other Partnership Securities are listed or admitted to trading. 

 

	Section 5.6	Limitations on Issuance of Additional Partnership Securities. 

 The Partnership may issue
an unlimited number of Partnership Securities (or options, rights, warrants or appreciation rights related thereto) pursuant to Section 5.5 without the approval of the Limited Partners; provided, however, that no fractional units
shall be issued by the Partnership. 
  

	Section 5.7	Limited Preemptive Right. 

 Except as provided in this Section 5.7 and in
Section 5.2(b), no Person shall have any preemptive, preferential or other similar right with respect to the issuance of any Partnership Security, whether unissued, held in the treasury or hereafter created. The General Partner shall have the
right, which it may from time to time assign in whole or in part to any of its Affiliates, to purchase Partnership Securities from the Partnership whenever, and on the same terms that, the Partnership issues Partnership Securities to Persons other
than the General Partner and its Affiliates, to the extent necessary to maintain the Percentage Interests of the General Partner and its Affiliates equal to that which existed immediately prior to the issuance of such Partnership Securities;
provided, however, that the amount of any series of Preferred Units issued by the Partnership from time to time that the General Partner shall have a right to purchase pursuant to this Section 5.7 shall equal the product of (a) the
aggregate Percentage Interest of the General Partner and its Affiliates multiplied by (b) the number of such series of Preferred Units so issued. 
  

	Section 5.8	Splits and Combinations. 

 (a)    Subject to Sections 5.8(d) and 6.5
(dealing with adjustments of distribution levels), the Partnership may make a Pro Rata distribution of Partnership Securities (other than Preferred Units) to all Record Holders of the same class or series of Partnership Securities or may effect a
subdivision or combination of the same class or series of Partnership Securities so long as, after any such event, each Partner holding such class or series of such Partnership Securities shall have the same Percentage Interest in the Partnership as
before such event, and any amounts calculated on a per Unit basis (including those based on the applicable Preferred Unit Liquidation Preference or the applicable Stated Preferred Unit Liquidation Preference) or stated as a number of Units are
proportionately adjusted, to the extent applicable. 
 (b)    Whenever such a distribution, subdivision or combination
of Partnership Securities is declared, the General Partner shall select a Record Date as of which the distribution, subdivision or combination shall be effective and shall send notice thereof at least 20 days prior to such Record Date to each
Record Holder as of a date not less than 10 days prior to the date of such notice. The General Partner also may cause a firm of independent public accountants selected by it to calculate the number of Partnership Securities to be held by each
Record Holder after giving effect to such distribution, subdivision or combination. The General Partner shall be entitled to rely on any certificate provided by such firm as conclusive evidence of the accuracy of such calculation. 

  
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 (c)    Promptly following any such distribution, subdivision or combination,
the Partnership may issue Certificates to the Record Holders of Partnership Securities as of the applicable Record Date representing the new number of Partnership Securities held by such Record Holders, or the General Partner may adopt such other
procedures that it determines to be necessary or appropriate to reflect such changes. If any such combination results in a smaller total number of Partnership Securities Outstanding, the Partnership shall require, as a condition to the delivery to a
Record Holder of such new Certificate, the surrender of any Certificate held by such Record Holder immediately prior to such Record Date. 

(d)    The Partnership shall not issue fractional Units upon any distribution, subdivision or combination of Units. If a
distribution, subdivision or combination of Units would result in the issuance of fractional Units but for the provisions of this Section 5.8(d), each fractional Unit shall be rounded to the nearest whole Unit (and a 0.5 Unit shall be rounded
to the next higher Unit). 
  

	Section 5.9	Fully Paid and Non-Assessable Nature of Limited Partner Interests. 

All Limited Partner Interests issued pursuant to, and in accordance with the requirements of, this Article V shall be fully paid and non-assessable Limited Partner Interests in the Partnership, except as such non-assessability may be affected by the Marshall Islands Act. 

ARTICLE VI 
 ALLOCATIONS
AND DISTRIBUTIONS 
  

	Section 6.1	Allocations. 

 For purposes of the Marshall Islands Act, the Partnership’s items of
income, gain, loss and deduction shall be allocated among the Partners in each taxable year (or portion thereof) as follows: 

(a)    to each (i) Series A Holder, an allocation of items of income, including if necessary items of gross
income, in an amount equal to the difference, if any, between (A) the excess of the Series A Liquidation Preference attributable to such Series A Holder over the Stated Series A Liquidation Preference attributable to such
Series A Holder and (B) the cumulative amount of all prior allocations of income to such Series A Holder pursuant to this Section 6.1(a), (ii) Series B Holder, an allocation of items of income, including if necessary items of
gross income, in an amount equal to the difference, if any, between (A) the excess of the Series B Liquidation Preference attributable to such Series B Holder over the Stated Series B Liquidation Preference attributable to such Series B
Holder and (B) the cumulative amount of all prior allocations of income to such Series B Holder pursuant to this Section 6.1(a), and (iii) Series E Holder, an allocation of items of income, including if necessary items of gross
income, in an amount equal to the difference, if any, between (A) the excess of the Series E Liquidation Preference attributable to such Series E Holder over the Stated Series E Liquidation Preference attributable to such Series E Holder
and (B) the cumulative amount of all prior allocations of income to such Series E Holder pursuant to this Section 6.1(a), provided that, in the event the 

  
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Partnership’s gross income for a taxable year (or portion thereof) is less than the sum of the amounts determined pursuant to clauses (i), (ii) and (iii), allocations shall be made pro rata
to Series A Holders, Series B Holders and Series E Holders in proportion to the amounts set forth in clauses (i), (ii) and (iii) above; and 

(b)    (after taking into account any allocations of gross income to a Series A Holder, Series B Holder, or Series E
Holder, as applicable, pursuant to Section 6.1(a)), in a manner such that all allocations to the Partners (including allocations made pursuant to Section 6.1(a)) are in accordance with the Partners’ interests in the Partnership,
taking into account Sections 6.3, 6.4 and 12.4 and Article XVI. 
  

	Section 6.2	Requirement and Characterization of Distributions; Distributions to Record Holders. 

(a)    Subject to Section 16.3, within 45 days following the end of each Quarter commencing with the Quarter
ending on December 31, 2006, an amount equal to 100% of Available Cash with respect to such Quarter shall, subject to Section 51 of the Marshall Islands Act, be distributed in accordance with this Article VI by the Partnership to the
Partners as of the Record Date selected by the General Partner. All amounts of Available Cash distributed by the Partnership on any date from any source shall be deemed to be Operating Surplus until the sum of all amounts of Available Cash
theretofore distributed by the Partnership to the Partners pursuant to Section 6.3 equals the Operating Surplus from the Closing Date through the close of the immediately preceding Quarter. Any remaining amounts of Available Cash distributed by
the Partnership on such date shall, except as otherwise provided in Section 6.4, be deemed to be “Capital Surplus.” This Section 6.2(a) shall not apply to Preferred Units. 

(b)    Notwithstanding Section 6.2(a), in the event of the dissolution and liquidation of the Partnership, all
receipts received during or after the Quarter in which the Liquidation Date occurs, other than from borrowings described in (a)(ii) of the definition of Available Cash, shall be applied and distributed solely in accordance with, and subject to the
terms and conditions of, Section 12.4. 
 (c)    Each distribution in respect of a Partnership Interest shall
be paid by the Partnership, directly or through the Transfer Agent or through any other Person or agent, only to the Record Holder of such Partnership Interest as of the Record Date set for such distribution. Such payment shall constitute full
payment and satisfaction of the Partnership’s liability in respect of such payment, regardless of any claim of any Person who may have an interest in such payment by reason of an assignment or otherwise. 

 

	Section 6.3	Distributions of Available Cash from Operating Surplus. 

 Available Cash with respect to
any Quarter that is deemed to be Operating Surplus pursuant to the provisions of Sections 6.2 or 6.4, shall, subject to Section 51 of the Marshall Islands Act, be distributed as follows (subject to Section 16.3 in respect of any
series of Preferred Units described therein and except as otherwise required by Section 5.5 in respect of additional Partnership Securities issued pursuant thereto): 

(a)    First, 100% to the General Partner and the Unitholders in accordance with their respective Percentage Interests,
until there has been distributed in respect of each Unit then Outstanding an amount equal to the Minimum Quarterly Distribution for such Quarter; 

  
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 (b)    Second, 100% to the General Partner and the Unitholders in accordance
with their respective Percentage Interests, until there has been distributed in respect of each Unit then Outstanding an amount equal to the excess of the First Target Distribution over the Minimum Quarterly Distribution for such Quarter; 

(c)    Third, (i) to the General Partner in accordance with its Percentage Interest; (ii) 13% to the holders of
the Incentive Distribution Rights, Pro Rata; and (iii) to all Unitholders, Pro Rata, a percentage equal to 100% less the sum of the percentages applicable to subclauses (i) and (ii) of this clause (c), until there has been
distributed in respect of each Unit then Outstanding an amount equal to the excess of the Second Target Distribution over the First Target Distribution for such Quarter; 

(d)    Fourth, (i) to the General Partner in accordance with its Percentage Interest; (ii) 23% to the holders of
the Incentive Distribution Rights, Pro Rata; and (iii) to all Unitholders, Pro Rata, a percentage equal to 100% less the sum of the percentages applicable to subclauses (i) and (ii) of this clause (d), until there has been
distributed in respect of each Unit then Outstanding an amount equal to the excess of the Third Target Distribution over the Second Target Distribution for such Quarter; and 

(e)    Thereafter, (i) to the General Partner in accordance with its Percentage Interest; (ii) 48% to the
holders of the Incentive Distribution Rights, Pro Rata; and (iii) to all Unitholders, Pro Rata, a percentage equal to 100% less the sum of the percentages applicable to subclauses (i) and (ii) of this clause (e); 

provided, however, that if the Minimum Quarterly Distribution, the First Target Distribution, the Second Target Distribution and the Third Target Distribution
have been reduced to zero pursuant to the second sentence of Section 6.5, the distribution of Available Cash that is deemed to be Operating Surplus with respect to any Quarter will be made solely in accordance with Section 6.3(e). No
distributions shall be made with respect to Preferred Units pursuant to this Section 6.3. 
  

	Section 6.4	Distributions of Available Cash from Capital Surplus. 

 Available Cash that is deemed to
be Capital Surplus pursuant to the provisions of Section 6.2(a) shall, subject to Section 51 of the Marshall Islands Act and Section 16.3 in respect of any series of Preferred Units described therein, be distributed, unless the
provisions of Section 6.2 require otherwise, 100% to the General Partner and the Unitholders (other than Preferred Unit Holders) in accordance with their respective Percentage Interests, until a hypothetical holder of a Common Unit acquired on
the Closing Date has received with respect to such Common Unit, during the period since the Closing Date through such date, distributions of Available Cash that are deemed to be Capital Surplus in an aggregate amount equal to the Initial Unit Price.
Thereafter and subject to Section 16.3, all Available Cash shall be distributed as if it were Operating Surplus and shall be distributed in accordance with Section 6.3. 

  
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	Section 6.5	Adjustment of Minimum Quarterly Distribution and Target Distribution Levels. 

 The
Minimum Quarterly Distribution, First Target Distribution, Second Target Distribution and Third Target Distribution shall be proportionately adjusted in the event of any distribution, combination or subdivision (whether effected by a distribution
payable in Units or otherwise) of Units or other Partnership Securities in accordance with Section 5.8. In the event of a distribution of Available Cash that is deemed to be from Capital Surplus, the then applicable Minimum Quarterly
Distribution, First Target Distribution, Second Target Distribution and Third Target Distribution, shall be reduced in the same proportion that the distribution had to the fair market value of the Common Units prior to the announcement of the
distribution. If the Common Units are publicly traded on a National Securities Exchange, the fair market value will be the Current Market Price before the ex-distribution date. If the Common Units are not
publicly traded, the fair market value will be determined by the Board of Directors of the General Partner. 
  

	Section 6.6	Special Provisions Relating to the Holders of Incentive Distribution Rights. 

Notwithstanding anything to the contrary set forth in this Agreement, the holders of the Incentive Distribution Rights (a) shall possess
the rights and obligations provided in this Agreement with respect to a Limited Partner pursuant to Articles III and VII and (b) shall not (i) be entitled to vote on any matters requiring the approval or vote of the holders of
Outstanding Units, except as provided by law, or (ii) be entitled to any distributions other than as provided in Sections 6.3(c), (d) and (e) and 12.4. 

ARTICLE VII 
 MANAGEMENT
AND OPERATION OF BUSINESS 
  

	Section 7.1	Management. 

 (a)    The General Partner shall conduct, direct and
manage all activities of the Partnership. Except as otherwise expressly provided in this Agreement, all management powers over the business and affairs of the Partnership shall be exclusively vested in the General Partner, and no Limited Partner
shall have any management power over the business and affairs of the Partnership. In addition to the powers now or hereafter granted a general partner of a limited partnership under applicable law or that are granted to the General Partner under any
other provision of this Agreement, the General Partner, subject to Section 7.3, shall have full power and authority to do all things and on such terms as it determines to be necessary or appropriate to conduct the business of the Partnership,
to exercise all powers set forth in Section 2.5 and to effectuate the purposes set forth in Section 2.4, including the following: 

(i)    the making of any expenditures, the lending or borrowing of money, the assumption or guarantee of, or other
contracting for, indebtedness and other liabilities, the issuance of evidences of indebtedness, including indebtedness that is convertible into Partnership Securities (subject to Section 16.5(c)(ii) with respect to any Senior Securities), and
the incurring of any other obligations; 

  
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 (ii)    the making of tax, regulatory and other filings, or rendering of
periodic or other reports to governmental or other agencies having jurisdiction over the business or assets of the Partnership; 

(iii)    the acquisition, disposition, mortgage, pledge, encumbrance, hypothecation or exchange of any or all of the
assets of the Partnership or the merger, consolidation or other combination of the Partnership with or into another Person (the matters described in this clause (iii) being subject, however, to any prior approval that may be required by
Section 7.3 and Article XIV); 
 (iv)    the use of the assets of the Partnership (including cash on hand) for
any purpose consistent with the terms of this Agreement, including the financing of the conduct of the operations of the Partnership Group; subject to Section 7.6(a), the lending of funds to other Persons (including other Group Members); the
repayment or guarantee of obligations of any Group Member; and the making of capital contributions to any Group Member; 

(v)    the negotiation, execution and performance of any contracts, conveyances or other instruments (including
instruments that limit the liability of the Partnership under contractual arrangements to all or particular assets of the Partnership, with the other party to the contract to have no recourse against the General Partner or its assets other than its
interest in the Partnership, even if such non-recourse provision results in the terms of the transaction being less favorable to the Partnership than would otherwise be the case); 

(vi)    the distribution of Partnership cash; 

(vii)    the selection and dismissal of employees (including employees having titles such as “president,”
“vice president,” “secretary” and “treasurer”) and agents, outside attorneys, accountants, consultants and contractors and the determination of their compensation and other terms of employment or hiring; 

(viii)    the maintenance of insurance for the benefit of the Partnership Group, the Partners and Indemnitees; 

(ix)    the formation of, or acquisition of an interest in, and the contribution of property and the making of loans to,
any further limited or general partnerships, joint ventures, corporations, limited liability companies or other relationships (including the acquisition of interests in, and the contributions of property to, any Group Member from time to time)
subject to the restrictions set forth in Section 2.4; 
 (x)    the control of any matters affecting the rights and
obligations of the Partnership, including the bringing and defending of actions at law or in equity and otherwise engaging in the conduct of litigation, arbitration or mediation and the incurring of legal expenses and the settling of claims and
litigation; 
 (xi)    the indemnification of any Person against liabilities and contingencies to the extent permitted
by law; 

  
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 (xii)    the entering into of listing agreements with any National Securities
Exchange and the delisting of some or all of the Limited Partner Interests from, or requesting that trading be suspended on, any such exchange (subject to any prior approval that may be required under Section 4.8); 

(xiii)    the purchase, sale or other acquisition or disposition of Partnership Securities (subject to
Section 16.6(f)), or the issuance of options, rights, warrants and appreciation rights relating to Partnership Securities; 

(xiv)    the undertaking of any action in connection with the Partnership’s participation in any Group
Member; and 
 (xv)    the entering into of agreements with any of its Affiliates to render services to a Group
Member or to itself in the discharge of its duties as General Partner of the Partnership. 
 (b)    Notwithstanding any
other provision of this Agreement, any Group Member Agreement, the Marshall Islands Act or any applicable law, rule or regulation, each of the Partners and each other Person who may acquire an interest in Partnership Securities hereby
(i) approves, ratifies and confirms the execution, delivery and performance by the parties thereto of this Agreement, the Underwriting Agreement, the Omnibus Agreement, the Contribution Agreement, any Group Member Agreement of any other Group
Member and the other agreements described in or filed as exhibits to the Registration Statement that are related to the transactions contemplated by the Registration Statement; (ii) agrees that the General Partner (on its own or on behalf of
the Partnership) is authorized to execute, deliver and perform the agreements referred to in clause (i) of this sentence and the other agreements, acts, transactions and matters described in or contemplated by the Registration Statement on
behalf of the Partnership without any further act, approval or vote of the Partners or the other Persons who may acquire an interest in Partnership Securities; and (iii) agrees that the execution, delivery or performance by the General Partner,
any Group Member or any Affiliate of any of them of this Agreement or any agreement authorized or permitted under this Agreement (including the exercise by the General Partner or any Affiliate of the General Partner of the rights accorded pursuant
to Article XV) shall not constitute a breach by the General Partner of any duty that the General Partner may owe the Partnership or the Limited Partners or any other Persons under this Agreement (or any other agreements) or of any duty stated
or implied by law or equity. 
  

	Section 7.2	Certificate of Limited Partnership. 

 The General Partner caused the Certificate of
Limited Partnership to be filed with the Marshall Islands Registrar as required by the Marshall Islands Act. The General Partner shall use all commercially reasonable efforts to cause to be filed such other certificates or documents that the General
Partner determines to be necessary or appropriate for the formation, continuation, qualification and operation of a limited partnership (or a partnership or other entity in which the limited partners have limited liability) in the Marshall Islands
or any other jurisdiction in which the Partnership may elect to do business or own property. To the extent the General Partner determines such action to be necessary or appropriate, the General Partner shall file amendments to and restatements of
the Certificate of Limited Partnership and do all things to 

  
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maintain the Partnership as a limited partnership (or a partnership or other entity in which the limited partners have limited liability) under the laws of the Marshall Islands or of any other
jurisdiction in which the Partnership may elect to do business or own property. Subject to the terms of Section 3.4(a), the General Partner shall not be required, before or after filing, to deliver or mail a copy of the Certificate of Limited
Partnership, any qualification document or any amendment thereto to any Limited Partner. 
  

	Section 7.3	Restrictions on the General Partner’s Authority. 

 (a)    Except
as otherwise provided in this Agreement, the General Partner may not, without written approval of the specific act by holders of all of the Outstanding Limited Partner Interests or by other written instrument executed and delivered by holders of all
of the Outstanding Limited Partner Interests subsequent to the date of this Agreement, take any action in contravention of this Agreement. 

(b)    Except as provided in Articles XII and XIV, the General Partner may not sell, exchange or otherwise dispose of
all or substantially all of the assets of the Partnership Group, taken as a whole, in a single transaction or a series of related transactions (including by way of merger, consolidation, other combination or sale of ownership interests in the
Partnership’s Subsidiaries) without the approval of holders of a Unit Majority; provided, however, that this provision shall not preclude or limit the General Partner’s ability to mortgage, pledge, hypothecate or grant a
security interest in all or substantially all of the assets of the Partnership Group and shall not apply to any forced sale of any or all of the assets of the Partnership Group pursuant to the foreclosure of, or other realization upon, any such
encumbrance. Without the approval of holders of a Unit Majority, the General Partner shall not, on behalf of the Partnership, except as permitted under Sections 4.6, 11.1 and 11.2, elect or cause the Partnership to elect a successor general
partner of the Partnership. 
  

	Section 7.4	Reimbursement of the General Partner. 

 (a)    Except as provided in
this Section 7.4 and elsewhere in this Agreement, the General Partner shall not be compensated for its services as a general partner or managing member of any Group Member. 

(b)    The General Partner shall be reimbursed on a monthly basis, or such other basis as the General Partner may
determine, for (i) all direct and indirect expenses it incurs or payments it makes on behalf of the Partnership Group (including salary, bonus, incentive compensation and other amounts paid to any Person, including Affiliates of the General
Partner, to perform services for the Partnership or for the General Partner in the discharge of its duties to the Partnership Group, which amounts shall also include reimbursement for any Common Units purchased to satisfy obligations of the
Partnership under any of its equity compensation plans), and (ii) all other direct and indirect expenses allocable to the Partnership or otherwise incurred by the General Partner in connection with operating the Partnership Group’s
business (including expenses allocated to the General Partner by its Affiliates). The General Partner shall determine the expenses that are allocable to the Partnership Group. Reimbursements pursuant to this Section 7.4 shall be in addition to
any reimbursement to the General Partner as a result of indemnification pursuant to Section 7.7. 

  
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 (c)    The General Partner and its Affiliates may charge any member of the
Partnership Group a management fee to the extent necessary to allow the Partnership Group to reduce the amount of any U.S. federal, state or local or any non-U.S. franchise or income tax or any other
tax based upon the revenues or gross margin of any member of the Partnership Group if the tax benefit produced by the payment of such management fee or fees exceeds the amount of such fee or fees. 

(d)    The General Partner, without the approval of the Limited Partners (who shall have no right to vote in respect
thereof), may propose and adopt on behalf of the Partnership employee benefit plans, employee programs and employee practices (including plans, programs and practices involving the issuance of Partnership Securities or options to purchase or rights,
warrants or appreciation rights relating to Partnership Securities), or cause the Partnership to issue Partnership Securities in connection with, or pursuant to, any employee benefit plan, employee program or employee practice maintained or
sponsored by the General Partner or any of its Affiliates, in each case for the benefit of employees of the General Partner, any Group Member or any Affiliate thereof, or any of them, in respect of services performed, directly or indirectly, for the
benefit of the Partnership Group. The Partnership agrees to issue and sell to the General Partner or any of its Affiliates any Partnership Securities that the General Partner or such Affiliates are obligated to provide to any employees pursuant to
any such employee benefit plans, employee programs or employee practices. Expenses incurred by the General Partner in connection with any such plans, programs and practices (including the net cost to the General Partner or such Affiliates of
Partnership Securities purchased by the General Partner or such Affiliates from the Partnership or in the open market to fulfill options or awards under such plans, programs and practices) shall be reimbursed in accordance with Section 7.4(b).
Any and all obligations of the General Partner under any employee benefit plans, employee programs or employee practices adopted by the General Partner as permitted by this Section 7.4(c) shall constitute obligations of the General Partner
hereunder and shall be assumed by any successor General Partner approved pursuant to Section 11.1 or 11.2 or the transferee of or successor to all of the General Partner’s General Partner Interest pursuant to Section 4.6. 

 

	Section 7.5	Outside Activities. 

 (a)    After the Closing Date, the General
Partner, for so long as it is the general partner of the Partnership (i) agrees that its sole business will be to act as a general partner or managing member, as the case may be, of the Partnership and any other partnership or limited liability
company of which the Partnership is, directly or indirectly, a partner or member and to undertake activities that are ancillary or related thereto (including being a limited partner in the Partnership), (ii) shall not engage in any business or
activity or incur any debts or liabilities except in connection with or incidental to (A) its performance as general partner or managing member, if any, of one or more Group Members or as described in or contemplated by the Registration
Statement or (B) the acquiring, owning or disposing of debt or equity securities in any Group Member and (iii) except to the extent permitted in the Omnibus Agreement, shall not, and shall cause its controlled Affiliates not to, engage in
any LNG Restricted Business or Crude Oil Restricted Business (as such terms are defined in the Omnibus Agreement). 

(b)    Teekay Corporation, Teekay LNG Partners L.P. and certain of their respective Affiliates have entered into the
Omnibus Agreement, which agreement sets forth certain restrictions on the ability of Teekay Corporation, Teekay LNG Partners L.P. and certain of their Affiliates to engage in any Offshore Restricted Business (as defined in the Omnibus Agreement).

  
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 (c)    Except as specifically restricted by Section 7.5(a) or the
Omnibus Agreement, each Indemnitee (other than the General Partner) shall have the right to engage in businesses of every type and description and other activities for profit and to engage in and possess an interest in other business ventures of any
and every type or description, whether in businesses engaged in or anticipated to be engaged in by any Group Member, independently or with others, including business interests and activities in direct competition with the business and activities of
any Group Member, and none of the same shall constitute a breach of this Agreement or any duty expressed or implied by law to any Group Member or any Partner. Notwithstanding anything to the contrary in this Agreement, (i) the possessing of
competitive interests and engaging in competitive activities by any Indemnitees (other than the General Partner) in accordance with the provisions of this Section 7.5 is hereby approved by the Partnership and all Partners and (ii) it shall
be deemed not to be a breach of any fiduciary duty or any other obligation of any type whatsoever of the General Partner or of any Indemnitee for the Indemnitees (other than the General Partner) to engage in such business interests and activities in
preference to or to the exclusion of the Partnership. 
 (d)    Notwithstanding anything to the contrary in this
Agreement, the doctrine of corporate opportunity, or any analogous doctrine, shall not apply to an Indemnitee (including the General Partner) and, subject to the terms of Section 7.5(a), Section 7.5(b), Section 7.5(c) and the Omnibus
Agreement, no Indemnitee (including the General Partner) who acquires knowledge of a potential transaction, agreement, arrangement or other matter that may be an opportunity for the Partnership shall have any duty to communicate or offer such
opportunity to the Partnership, and, subject to the terms of Section 7.5(a), Section 7.5(b), Section 7.5(c) and the Omnibus Agreement, such Indemnitee (including the General Partner) shall not be liable to the Partnership, to any
Limited Partner or any other Person for breach of any fiduciary or other duty by reason of the fact that such Indemnitee (including the General Partner) pursues or acquires such opportunity for itself, directs such opportunity to another Person or
does not communicate such opportunity or information to the Partnership. 
 (e)    The General Partner and each of its
Affiliates may acquire Units or other Partnership Securities in addition to those acquired on the Closing Date and, except as otherwise provided in this Agreement, shall be entitled to exercise, at their option, all rights relating to all Units or
other Partnership Securities acquired by them. The term “Affiliates” as used in this Section 7.5(e) with respect to the General Partner shall not include any Group Member. 

 

	Section 7.6	Loans from the General Partner; Loans or Contributions from the Partnership or Group Members. 

(a)    The General Partner or any of its Affiliates may lend to any Group Member, and any Group Member may borrow from the
General Partner or any of its Affiliates, funds needed or desired by the Group Member for such periods of time and in such amounts as the General Partner may determine; provided, however, that in any such case the lending party may not
charge the borrowing party interest at a rate greater than the rate that would be charged the borrowing party or impose terms less favorable to the borrowing party than would be charged or 

  
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imposed on the borrowing party by unrelated lenders on comparable loans made on an arms’-length basis (without reference to the lending party’s financial abilities or guarantees), all
as determined by the General Partner. The borrowing party shall reimburse the lending party for any costs (other than any additional interest costs) incurred by the lending party in connection with the borrowing of such funds. For purposes of this
Section 7.6(a) and Section 7.6(b), the term “Group Member” shall include any Affiliate of a Group Member that is controlled by the Group Member. 

(b)    The Partnership may lend or contribute to any Group Member, and any Group Member may borrow from the Partnership,
funds on terms and conditions determined by the General Partner. No Group Member may lend funds to the General Partner or any of its Affiliates (other than another Group Member). 

(c)    No borrowing by any Group Member or the approval thereof by the General Partner shall be deemed to constitute a
breach of any duty, expressed or implied, of the General Partner or its Affiliates to the Partnership or the Limited Partners by reason of the fact that the purpose or effect of such borrowing is directly or indirectly to enable distributions to the
General Partner or its Affiliates (including in their capacities as Limited Partners) to exceed the General Partner’s Percentage Interest of the total amount distributed to all partners. 

 

	Section 7.7	Indemnification. 

 (a)    To the fullest extent permitted by law but
subject to the limitations expressly provided in this Agreement, all Indemnitees shall be indemnified and held harmless by the Partnership from and against any and all losses, claims, damages, liabilities, joint or several, expenses (including legal
fees and expenses), judgments, fines, penalties, interest, settlements or other amounts arising from any and all claims, demands, actions, suits or proceedings, whether civil, criminal, administrative or investigative, in which any Indemnitee may be
involved, or is threatened to be involved, as a party or otherwise, by reason of its status as an Indemnitee; provided, however, that the Indemnitee shall not be indemnified and held harmless if there has been a final and non-appealable judgment entered by a court of competent jurisdiction determining that, in respect of the matter for which the Indemnitee is seeking indemnification pursuant to this Section 7.7, the Indemnitee
acted in bad faith or engaged in fraud or willful misconduct or, in the case of a criminal matter, acted with knowledge that the Indemnitee’s conduct was unlawful; and, provided further, that no indemnification pursuant to this Section 7.7
shall be available to the General Partner or its Affiliates (other than a Group Member) with respect to its or their obligations incurred pursuant to the Underwriting Agreement, the Omnibus Agreement or the Contribution Agreement (other than
obligations incurred by the General Partner on behalf of the Partnership). Any indemnification pursuant to this Section 7.7 shall be made only out of the assets of the Partnership, it being agreed that the General Partner shall not be
personally liable for such indemnification and shall have no obligation to contribute or loan any monies or property to the Partnership to enable it to effectuate such indemnification. 

(b)    To the fullest extent permitted by law, expenses (including legal fees and expenses) incurred by an Indemnitee who
is indemnified pursuant to Section 7.7(a) in defending any claim, demand, action, suit or proceeding shall, from time to time, be advanced by the Partnership prior to a determination that the Indemnitee is not entitled to be indemnified upon

  
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receipt by the Partnership of any undertaking by or on behalf of the Indemnitee to repay such amount if it shall be determined that the Indemnitee is not entitled to be indemnified as authorized
in this Section 7.7. 
 (c)    The indemnification provided by this Section 7.7 shall be in addition to any
other rights to which an Indemnitee may be entitled under any agreement, pursuant to any vote of the holders of Outstanding Limited Partner Interests, as a matter of law or otherwise, both as to actions in the Indemnitee’s capacity as an
Indemnitee and as to actions in any other capacity, and shall continue as to an Indemnitee who has ceased to serve in such capacity and shall inure to the benefit of the heirs, successors, assigns and administrators of the Indemnitee. 

(d)    The Partnership may purchase and maintain (or reimburse the General Partner or its Affiliates for the cost of)
insurance, on behalf of the General Partner, its Affiliates and such other Persons as the General Partner shall determine, against any liability that may be asserted against, or expense that may be incurred by, such Person in connection with the
Partnership’s activities or such Person’s activities on behalf of the Partnership, regardless of whether the Partnership would have the power to indemnify such Person against such liability under the provisions of this Agreement. 

(e)    For purposes of this Section 7.7, the Partnership shall be deemed to have requested an Indemnitee to serve as
fiduciary of an employee benefit plan whenever the performance by the Indemnitee of its duties to the Partnership also imposes duties on, or otherwise involves services by, it to the plan or participants or beneficiaries of the plan; excise taxes
assessed on an Indemnitee with respect to an employee benefit plan pursuant to applicable law shall constitute “fines” within the meaning of Section 7.7(a); and action taken or omitted by the Indemnitee with respect to any employee
benefit plan in the performance of its duties for a purpose reasonably believed by it to be in the best interest of the participants and beneficiaries of the plan shall be deemed to be for a purpose that is in the best interests of the Partnership.

 (f)    In no event may an Indemnitee subject the Limited Partners to personal liability by reason of the
indemnification provisions set forth in this Agreement. 
 (g)    An Indemnitee shall not be denied indemnification in
whole or in part under this Section 7.7 because the Indemnitee had an interest in the transaction with respect to which the indemnification applies if the transaction was otherwise permitted by the terms of this Agreement. 

(h)    The provisions of this Section 7.7 are for the benefit of the Indemnitees, their heirs, successors, assigns
and administrators and shall not be deemed to create any rights for the benefit of any other Persons. 
 (i)    No
amendment, modification or repeal of this Section 7.7 or any provision hereof shall in any manner terminate, reduce or impair the right of any past, present or future Indemnitee to be indemnified by the Partnership, nor the obligations of the
Partnership to indemnify any such Indemnitee under and in accordance with the provisions of this Section 7.7 as in effect immediately prior to such amendment, modification or repeal with respect to claims arising from or relating to matters
occurring, in whole or in part, prior to such amendment, modification or repeal, regardless of when such claims may arise or be asserted. 

  
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	Section 7.8	Liability of Indemnitees. 

 (a)    Notwithstanding anything to the
contrary set forth in this Agreement, no Indemnitee shall be liable for monetary damages to the Partnership, the Limited Partners or any other Persons who have acquired interests in the Partnership Securities, for losses sustained or liabilities
incurred as a result of any act or omission of an Indemnitee unless there has been a final and non-appealable judgment entered by a court of competent jurisdiction determining that, in respect of the matter in
question, the Indemnitee acted in bad faith or engaged in fraud or willful misconduct or, in the case of a criminal matter, acted with knowledge that the Indemnitee’s conduct was criminal. 

(b)    Subject to its obligations and duties as General Partner set forth in Section 7.1(a), the General Partner may
exercise any of the powers granted to it by this Agreement and perform any of the duties imposed upon it hereunder either directly or by or through its agents, and the General Partner shall not be responsible for any misconduct or negligence on the
part of any such agent appointed by the General Partner in good faith. 
 (c)    To the extent that, at law or in
equity, an Indemnitee has duties (including fiduciary duties) and liabilities relating thereto to the Partnership or to the Partners, the General Partner and any other Indemnitee acting in connection with the Partnership’s business or affairs
shall not be liable to the Partnership or to any Partner for its good faith reliance on the provisions of this Agreement. 

(d)    Any amendment, modification or repeal of this Section 7.8 or any provision hereof shall be prospective only
and shall not in any way affect the limitations on the liability of the Indemnitees under this Section 7.8 as in effect immediately prior to such amendment, modification or repeal with respect to claims arising from or relating to matters
occurring, in whole or in part, prior to such amendment, modification or repeal, regardless of when such claims may arise or be asserted. 
  

	Section 7.9	Resolution of Conflicts of Interest; Standards of Conduct and Modification of Duties. 

(a)    Unless otherwise expressly provided in this Agreement or any Group Member Agreement, whenever a potential conflict
of interest exists or arises between the General Partner or any of its Affiliates, on the one hand, and the Partnership, any Group Member or any Partner, on the other, any resolution or course of action by the General Partner or its Affiliates in
respect of such conflict of interest shall be permitted and deemed approved by all Partners, and shall not constitute a breach of this Agreement, of any Group Member Agreement, of any agreement contemplated herein or therein, or of any duty stated
or implied by law or equity, if the resolution or course of action in respect of such conflict of interest is (i) approved by Special Approval, (ii) approved by the vote of a majority of the Outstanding Common Units (excluding Common Units
owned by the General Partner and its Affiliates), (iii) on terms no less favorable to the Partnership than those generally being provided to or available from unrelated third parties or 

  
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(iv) fair and reasonable to the Partnership, taking into account the totality of the relationships between the parties involved (including other transactions that may be particularly
favorable or advantageous to the Partnership). The General Partner shall be authorized but not required in connection with its resolution of such conflict of interest to seek Special Approval of such resolution, and the General Partner may also
adopt a resolution or course of action that has not received Special Approval. If Special Approval is not sought and the Board of Directors of the General Partner determines that the resolution or course of action taken with respect to a conflict of
interest satisfies either of the standards set forth in clauses (iii) or (iv) above, then it shall be presumed that, in making its decision, the Board of Directors of the General Partner acted in good faith, and in any proceeding brought
by any Limited Partner or by or on behalf of such Limited Partner or any other Limited Partner or the Partnership challenging such approval, the Person bringing or prosecuting such proceeding shall have the burden of overcoming such presumption.
Notwithstanding anything to the contrary in this Agreement, the existence of the conflicts of interest described in the Registration Statement are hereby approved by all Partners. 

(b)    Whenever the General Partner makes a determination or takes or declines to take any other action, or any of its
Affiliates causes it to do so, in its capacity as the general partner of the Partnership as opposed to in its individual capacity, whether under this Agreement, any Group Member Agreement or any other agreement contemplated hereby or otherwise,
then, unless another express standard is provided for in this Agreement, the General Partner, or such Affiliates causing it to do so, shall make such determination or take or decline to take such other action in good faith and shall not be subject
to any other or different standards imposed by this Agreement, any Group Member Agreement, any other agreement contemplated hereby or under the Marshall Islands Act or any other law, rule or regulation or at equity. In order for a determination or
other action to be in “good faith” for purposes of this Agreement, the Person or Persons making such determination or taking or declining to take such other action must reasonably believe that the determination or other action is in the
best interests of the Partnership, unless the context otherwise requires. 
 (c)    Whenever the General Partner makes a
determination or takes or declines to take any other action, or any of its Affiliates causes it to do so, in its individual capacity as opposed to in its capacity as the general partner of the Partnership, whether under this Agreement, any Group
Member Agreement or any other agreement contemplated hereby or otherwise, then the General Partner, or such Affiliates causing it to do so, are entitled to make such determination or to take or decline to take such other action free of any fiduciary
duty or obligation whatsoever to the Partnership or any Limited Partner, and the General Partner, or such Affiliates causing it to do so, shall not be required to act in good faith or pursuant to any other standard imposed by this Agreement, any
Group Member Agreement, any other agreement contemplated hereby or under the Marshall Islands Act or any other law, rule or regulation or at equity. By way of illustration and not of limitation, whenever the phrase, “at the option of the
General Partner,” or some variation of that phrase, is used in this Agreement, it indicates that the General Partner is acting in its individual capacity. For the avoidance of doubt, whenever the General Partner votes or transfers its Units
(including Common Units and any Preferred Units it may hold), General Partner Interest or Incentive Distribution Rights, to the extent permitted under this Agreement, or refrains from voting or transferring its Units (including Common Units and any
Preferred Units it may hold), General Partner Units or Incentive Distribution Rights, as appropriate, it shall be acting in its individual capacity. The General Partner’s organizational documents may provide

  
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that determinations to take or decline to take any action in its individual, rather than representative, capacity may or shall be determined by its members, if the General Partner is a limited
liability company, stockholders, if the General Partner is a corporation, or the members or stockholders of the General Partner’s general partner, if the General Partner is a limited partnership. 

(d)    Notwithstanding anything to the contrary in this Agreement, the General Partner and its Affiliates shall have no
duty or obligation, express or implied, to (i) sell or otherwise dispose of any asset of the Partnership Group other than in the ordinary course of business or (ii) permit any Group Member to use any facilities or assets of the General
Partner and its Affiliates, except as may be provided in contracts entered into from time to time specifically dealing with such use. Any determination by the General Partner or any of its Affiliates to enter into such contracts shall be at its
option. 
 (e)    Except as expressly set forth in this Agreement, neither the General Partner nor any other Indemnitee
shall have any duties or liabilities, including fiduciary duties, to the Partnership or any Limited Partner and the provisions of this Agreement, to the extent that they restrict, eliminate or otherwise modify the duties and liabilities, including
fiduciary duties, of the General Partner or any other Indemnitee otherwise existing at law or in equity, are agreed by the Partners to replace such other duties and liabilities of the General Partner or such other Indemnitee. Notwithstanding
anything to the contrary, but subject to Section 7.9(c) and without reference to the definition of “good faith” in Section 7.9(b), neither the General Partner nor any other Indemnitee shall owe any fiduciary duties to Preferred
Unit Holders other than a contractual duty of good faith and fair dealing. 
 (f)    The Unitholders hereby authorize
the General Partner, on behalf of the Partnership as a partner or member of a Group Member, to approve of actions by the general partner or managing member of such Group Member similar to those actions permitted to be taken by the General Partner
pursuant to this Section 7.9. 
  

	Section 7.10	Other Matters Concerning the General Partner. 

 (a)    The General
Partner may rely and shall be protected in acting or refraining from acting upon any resolution, certificate, statement, instrument, opinion, report, notice, request, consent, order, bond, debenture or other paper or document believed by it to be
genuine and to have been signed or presented by the proper party or parties. 
 (b)    The General Partner may consult
with legal counsel, accountants, appraisers, management consultants, investment bankers and other consultants and advisers selected by it, and any act taken or omitted to be taken in reliance upon the advice or opinion (including an Opinion of
Counsel) of such Persons as to matters that the General Partner reasonably believes to be within such Person’s professional or expert competence shall be conclusively presumed to have been done or omitted in good faith and in accordance with
such advice or opinion. 
 (c)    The General Partner shall have the right, in respect of any of its powers or
obligations hereunder, to act through any of its duly authorized officers, a duly appointed attorney or attorneys-in-fact or the duly authorized officers of the
Partnership. 

  
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	Section 7.11	Purchase or Sale of Partnership Securities. 

 Subject to Section 16.6(f), the
General Partner may cause the Partnership to purchase or otherwise acquire Partnership Securities. As long as Partnership Securities are held by any Group Member, such Partnership Securities shall not be considered Outstanding for any purpose,
except as otherwise provided herein. The General Partner or any Affiliate of the General Partner may also purchase or otherwise acquire and sell or otherwise dispose of Partnership Securities for its own account, subject to the provisions of
Articles IV and X and Section 16.6(f). 
  

	Section 7.12	Registration Rights of the General Partner and its Affiliates. 

(a)    If (i) the General Partner or any Affiliate of the General Partner (including for purposes of this
Section 7.12, any Person that is an Affiliate of the General Partner at the date hereof notwithstanding that it may later cease to be an Affiliate of the General Partner) holds Partnership Securities that it desires to sell and
(ii) Rule 144 of the Securities Act (or any successor rule or regulation to Rule 144) or another exemption from registration is not available to enable such holder of Partnership Securities (the “Holder”) to dispose
of the number of Partnership Securities it desires to sell at the time it desires to do so without registration under the Securities Act, then at the option and upon the request of the Holder, the Partnership shall file with the Commission as
promptly as practicable after receiving such request, and use all commercially reasonable efforts to cause to become effective and remain effective for a period of not less than six months following its effective date or such shorter period as shall
terminate when all Partnership Securities covered by such registration statement have been sold, a registration statement under the Securities Act registering the offering and sale of the number of Partnership Securities specified by the Holder;
provided, however, that the Partnership shall not be required to effect more than three registrations pursuant to this Section 7.12(a); and, provided further, that if the Conflicts Committee determines in good faith that the
requested registration would be materially detrimental to the Partnership and its Partners because such registration would (x) materially interfere with a significant acquisition, reorganization or other similar transaction involving the
Partnership, (y) require premature disclosure of material information that the Partnership has a bona fide business purpose for preserving as confidential or (z) render the Partnership unable to comply with requirements under applicable
securities laws, then the Partnership shall have the right to postpone such requested registration for a period of not more than six months after receipt of the Holder’s request, such right pursuant to this Section 7.12(a) not to be
utilized more than once in any 12-month period. Except as provided in the preceding sentence, the Partnership shall be deemed not to have used all commercially reasonable efforts to keep the registration
statement effective during the applicable period if it voluntarily takes any action that would result in Holders of Partnership Securities covered thereby not being able to offer and sell such Partnership Securities at any time during such period,
unless such action is required by applicable law. In connection with any registration pursuant to the immediately preceding sentence, the Partnership shall (i) promptly prepare and file (A) such documents as may be necessary to register or
qualify the securities subject to such registration under the securities laws of such states as the Holder shall reasonably request (provided, however, that no such qualification shall be required in any jurisdiction where, as a result thereof, the
Partnership would become subject to general service of process or to taxation or qualification to do business as a foreign corporation or partnership doing business in such jurisdiction solely as a result of such registration), and (B) such
documents as may be necessary to apply for listing or to list the 

  
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Partnership Securities subject to such registration on such National Securities Exchange as the Holder shall reasonably request, and (ii) do any and all other acts and things that may be
necessary or appropriate to enable the Holder to consummate a public sale of such Partnership Securities in such states. Except as set forth in Section 7.12(c), all costs and expenses of any such registration and offering (other than the
underwriting discounts and commissions) shall be paid by the Partnership, without reimbursement by the Holder. 

(b)    If the Partnership shall at any time propose to file a registration statement under the Securities Act for an
offering of Partnership Securities for cash (other than an offering relating solely to an employee benefit plan), the Partnership shall use all commercially reasonable efforts to include such number or amount of Partnership Securities held by any
Holder in such registration statement as the Holder shall request; provided, however, that the Partnership is not required to make any effort or take any action to so include the Partnership Securities of the Holder once the
registration statement becomes or is declared effective by the Commission, including any registration statement providing for the offering from time to time of Partnership Securities pursuant to Rule 415 of the Securities Act. If the proposed
offering pursuant to this Section 7.12(b) shall be an underwritten offering, then, in the event that the managing underwriter or managing underwriters of such offering advise the Partnership and the Holder in writing that in their opinion the
inclusion of all or some of the Holder’s Partnership Securities would adversely and materially affect the success of the offering, the Partnership shall include in such offering only that number or amount, if any, of Partnership Securities held
by the Holder that, in the opinion of the managing underwriter or managing underwriters, will not so adversely and materially affect the offering. Except as set forth in Section 7.12(c), all costs and expenses of any such registration and
offering (other than the underwriting discounts and commissions) shall be paid by the Partnership, without reimbursement by the Holder. 

(c)    If underwriters are engaged in connection with any registration referred to in this Section 7.12, the
Partnership shall provide indemnification, representations, covenants, opinions and other assurance to the underwriters in form and substance reasonably satisfactory to such underwriters. Further, in addition to and not in limitation of the
Partnership’s obligation under Section 7.7, the Partnership shall, to the fullest extent permitted by law, indemnify and hold harmless the Holder, its officers, directors and each Person who controls the Holder (within the meaning of the
Securities Act) and any agent thereof (collectively, “Indemnified Persons”) from and against any and all losses, claims, demands, actions, causes of action, assessments, damages, liabilities (joint or several), costs and expenses
(including interest, penalties and reasonable attorneys’ fees and disbursements), resulting to, imposed upon, or incurred by the Indemnified Persons, directly or indirectly, under the Securities Act or otherwise (hereinafter referred to in this
Section 7.12(c) as a “claim” and in the plural as “claims”) based upon, arising out of or resulting from any untrue statement or alleged untrue statement of any material fact contained in any registration statement under
which any Partnership Securities were registered under the Securities Act or any state securities or Blue Sky laws, in any preliminary prospectus or issuer free writing prospectus as defined in Rule 433 of the Securities Act (if used prior to
the effective date of such registration statement), or in any summary or final prospectus or in any amendment or supplement thereto (if used during the period the Partnership is required to keep the registration statement current), or arising out
of, based upon or resulting from the omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements made therein not misleading; provided, however, that the Partnership
shall not be 

  
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liable to any Indemnified Person to the extent that any such claim arises out of, is based upon or results from an untrue statement or alleged untrue statement or omission or alleged omission
made in such registration statement, such preliminary, summary or final prospectus or such amendment or supplement, in reliance upon and in conformity with written information furnished to the Partnership by or on behalf of such Indemnified Person
specifically for use in the preparation thereof. 
 (d)    The provisions of Section 7.12(a) and
Section 7.12(b) shall continue to be applicable with respect to the General Partner (and any of the General Partner’s Affiliates) after it ceases to be a general partner of the Partnership, during a period of two years subsequent to the
effective date of such cessation and for so long thereafter as is required for the Holder to sell all of the Partnership Securities with respect to which it has requested during such two-year period inclusion
in a registration statement otherwise filed or that a registration statement be filed; provided, however, that the Partnership shall not be required to file successive registration statements covering the same Partnership Securities
for which registration was demanded during such two-year period. The provisions of Section 7.12(c) shall continue in effect thereafter. 

(e)    The rights to cause the Partnership to register Partnership Securities pursuant to this Section 7.12 may be
assigned (but only with all related obligations) by a Holder to a transferee or assignee of such Partnership Securities, provided (i) the Partnership is, within a reasonable time after such transfer, furnished with written notice of the name
and address of such transferee or assignee and the Partnership Securities with respect to which such registration rights are being assigned, and (ii) such transferee or assignee agrees in writing to be bound by and subject to the terms set
forth in this Section 7.12. 
 (f)    Any request to register Partnership Securities pursuant to this
Section 7.12 shall (i) specify the Partnership Securities intended to be offered and sold by the Person making the request, (ii) express such Person’s present intent to offer such Partnership Securities for distribution,
(iii) describe the nature or method of the proposed offer and sale of Partnership Securities, and (iv) contain the undertaking of such Person to provide all such information and materials and take all action as may be required in order to
permit the Partnership to comply with all applicable requirements in connection with the registration of such Partnership Securities. 
  

	Section 7.13	Reliance by Third Parties. 

 Notwithstanding anything to the contrary in this Agreement,
any Person dealing with the Partnership shall be entitled to assume that the General Partner and any officer of the General Partner authorized by the General Partner to act on behalf of and in the name of the Partnership has full power and authority
to encumber, sell or otherwise use in any manner any and all assets of the Partnership and to enter into any authorized contracts on behalf of the Partnership, and such Person shall be entitled to deal with the General Partner or any such officer as
if it were the Partnership’s sole party in interest, both legally and beneficially. Each Limited Partner hereby waives any and all defenses or other remedies that may be available against such Person to contest, negate or disaffirm any action
of the General Partner or any such officer in connection with any such dealing. In no event shall any Person dealing with the General Partner or any such officer or its representatives be obligated to ascertain that the terms of this Agreement have
been complied with or to inquire into the necessity or expedience of any act or action of the General 

  
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Partner or any such officer or its representatives. Each and every certificate, document or other instrument executed on behalf of the Partnership by the General Partner, its officers or its
representatives shall be conclusive evidence in favor of any and every Person relying thereon or claiming thereunder that (a) at the time of the execution and delivery of such certificate, document or instrument, this Agreement was in full
force and effect, (b) the Person executing and delivering such certificate, document or instrument was duly authorized and empowered to do so for and on behalf of the Partnership and (c) such certificate, document or instrument was duly
executed and delivered in accordance with the terms and provisions of this Agreement and is binding upon the Partnership. 
 ARTICLE VIII

 BOOKS, RECORDS, ACCOUNTING AND REPORTS 
  

	Section 8.1	Records and Accounting. 

 The General Partner shall keep or cause to be kept at the
principal office of the Partnership appropriate books and records with respect to the Partnership’s business, including all books and records necessary to provide to the Limited Partners any information required to be provided pursuant to
Section 3.4(a). Any books and records maintained by or on behalf of the Partnership in the regular course of its business, including the record of the Record Holders of Units or other Partnership Securities, books of account and records of
Partnership proceedings, may be kept on, or be in the form of, computer disks, hard drives, punch cards, magnetic tape, photographs, micrographics or any other information storage device; provided, however, that the books and records
so maintained are convertible into clearly legible written form within a reasonable period of time. The books of the Partnership shall be maintained, for financial reporting purposes, on an accrual basis in accordance with U.S. GAAP. 

 

	Section 8.2	Fiscal Year. 

 The fiscal year of the Partnership shall be a fiscal year ending
December 31. 
  

	Section 8.3	Reports. 

 (a)    As soon as practicable, but in no event later than
120 days after the close of each fiscal year of the Partnership, the General Partner shall cause to be mailed or made available, by any reasonable means (including posting on the Partnership’s website), to each Record Holder of a Unit as
of a date selected by the General Partner, an annual report containing financial statements of the Partnership for such fiscal year of the Partnership, presented in accordance with U.S. GAAP, including a balance sheet and statements of
operations, Partnership equity and cash flows, such statements to be audited by a firm of independent public accountants selected by the General Partner. 

(b)    As soon as practicable, but in no event later than 90 days after the close of each Quarter except the last
Quarter of each fiscal year, the General Partner shall cause to be mailed or made available, by any reasonable means (including posting on the Partnership’s website), to each Record Holder of a Unit, as of a date selected by the General
Partner, a report containing unaudited financial statements of the Partnership and such other information as may be required by applicable law, regulation or rule of any National Securities Exchange on which the Units are listed or admitted to
trading, or as the General Partner determines to be necessary or appropriate. 

  
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 ARTICLE IX 

TAX MATTERS 
  

	Section 9.1	Tax Elections and Information. 

 (a)    The Partnership has elected
to be treated as an association taxable as a corporation for United States federal income tax purposes. Except as otherwise provided herein, the General Partner shall determine whether the Partnership should make any other elections permitted by the
Code. 
 (b)    The tax information reasonably required by Record Holders generally for United States federal and state
income tax reporting purposes with respect to a taxable year shall be furnished to them within 90 days of the close of the calendar year in which the Partnership’s taxable year ends. 

 

	Section 9.2	Withholding. 

 Notwithstanding any other provision of this Agreement, the General Partner
is authorized to take any action that may be required to cause the Partnership and other Group Members to comply with any withholding requirements established under the Code or any other U.S. federal, state or local or any non-U.S. law including pursuant to Sections 1441, 1442 and 1445 of the Code. To the extent that the Partnership is required or elects to withhold and pay over to any taxing authority any amount resulting
from the distribution of income to any Partner, the General Partner may treat the amount withheld as a distribution of cash pursuant to Section 6.2 in the amount of such withholding from such Partner. 

 

	Section 9.3	Conduct of Operations. 

 The General Partner shall use commercially reasonable efforts to
conduct the business of the Partnership and its Affiliates in a manner that does not require a holder of Common Units or Preferred Units to file a tax return in any jurisdiction with which the holder has no contact other than through ownership of
Common Units or Preferred Units. 
 For greater certainty, the General Partner shall conduct the affairs and governance of the Partnership
so that the General Partner and the Partnership are not residents of Canada for purposes of Canada’s tax legislation and neither the General Partner nor the Partnership is carrying on business in Canada for purposes of such legislation. 

ARTICLE X 
 ADMISSION OF
PARTNERS 
  

	Section 10.1	Admission of Initial Limited Partners. 

 Upon the issuance by the Partnership of
Partnership Securities to the General Partner, Teekay Corporation and the Underwriters as described in Sections 5.1(b), 5.2 and 5.3, the General Partner admitted such parties to the Partnership as Initial Limited Partners in respect of the
Partnership Securities issued to them. 

  
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	Section 10.2	Admission of Additional Limited Partners. 

 (a)    By acceptance of
the transfer of any Limited Partner Interests in accordance with Article IV or the acceptance of any Limited Partner Interests issued pursuant to Article V or pursuant to a merger or consolidation pursuant to Article XIV, each
transferee of, or other such Person acquiring, a Limited Partner Interest (including any nominee holder or an agent or representative acquiring such Limited Partner Interests for the account of another Person) (i) shall be admitted to the
Partnership as a Limited Partner with respect to the Limited Partner Interests so transferred or issued to such Person when any such transfer, issuance or admission is reflected in the books and records of the Partnership and such Limited Partner
becomes the Record Holder of the Limited Partner Interests so transferred, (ii) shall become bound by the terms of this Agreement, (iii) represents that the transferee has the capacity, power and authority to enter into this Agreement,
(iv) grants the powers of attorney set forth in this Agreement and (v) makes the consents and waivers contained in this Agreement, all with or without execution of this Agreement by such Person. The transfer of any Limited Partner
Interests and the admission of any new Limited Partner shall not constitute an amendment to this Agreement. A Person may become a Limited Partner or Record Holder of a Limited Partner Interest without the consent or approval of any of the Partners.
A Person may not become a Limited Partner until such Person acquires a Limited Partner Interest and such Person is reflected in the books and records of the Partnership as the Record Holder of such Limited Partner Interest. 

(b)    The name and mailing address of each Limited Partner shall be listed on the books and records of the Partnership
maintained for such purpose by the Partnership or the Transfer Agent. The General Partner shall update the books and records of the Partnership from time to time as necessary to reflect accurately the information therein (or shall cause the Transfer
Agent to do so, as applicable). A Limited Partner Interest may be represented by a Certificate, as provided in Section 4.1 hereof. 

(c)    Any transfer of a Limited Partner Interest shall not entitle the transferee to receive distributions or to any
other rights to which the transferor was entitled until the transferee becomes a Limited Partner pursuant to Section 10.1(a). 
  

	Section 10.3	Admission of Successor General Partner. 

 A successor General Partner approved pursuant
to Section 11.1 or 11.2 or the transferee of or successor to all of the General Partner Interest (represented by General Partner Units) pursuant to Section 4.6 who is proposed to be admitted as a successor General Partner shall be admitted
to the Partnership as the General Partner, effective immediately prior to the withdrawal or removal of the predecessor or transferring General Partner, pursuant to Section 11.1 or 11.2 or the transfer of the General Partner Interest
(represented by General Partner Units) pursuant to Section 4.6; provided, however, that no such successor shall be admitted to the Partnership until compliance with the terms of Section 4.6 has occurred and such successor has
executed and delivered such other documents or instruments as may be required to effect such admission. Any such successor shall, subject to the terms hereof, carry on the business of the members of the Partnership Group without dissolution. 

  
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	Section 10.4	Amendment of Agreement and Certificate of Limited Partnership. 

 To effect the admission
to the Partnership of any Partner, the General Partner shall take all steps necessary or appropriate under the Marshall Islands Act to amend the records of the Partnership to reflect such admission and, if necessary, to prepare as soon as
practicable an amendment to this Agreement and, if required by law, the General Partner shall prepare and file an amendment to the Certificate of Limited Partnership and the General Partner may for this purpose, among others, exercise the power of
attorney granted pursuant to Section 2.6. 
 ARTICLE XI 

WITHDRAWAL OR REMOVAL OF PARTNERS 
  

	Section 11.1	Withdrawal of the General Partner. 

 (a)    The General Partner shall
be deemed to have withdrawn from the Partnership upon the occurrence of any one of the following events (each such event herein referred to as an “Event of Withdrawal”): 

(i)    The General Partner voluntarily withdraws from the Partnership by giving written notice to the other Partners; 

(ii)    The General Partner transfers all of its rights as General Partner pursuant to Section 4.6; 

(iii)    The General Partner is removed pursuant to Section 11.2; 

(iv)    The General Partner (A) makes a general assignment for the benefit of creditors; (B) files a voluntary
petition in bankruptcy; (C) files a petition or answer seeking for itself a liquidation, dissolution or similar relief (but not a reorganization) under any law; (D) files an answer or other pleading admitting or failing to contest the
material allegations of a petition filed against the General Partner in a proceeding of the type described in clauses (A), (B) or (C) of this Section 11.1(a)(iv); or (E) seeks, consents to or acquiesces in the appointment of
a trustee, receiver or liquidator of the General Partner or of all or any substantial part of its properties; 

(v)    The General Partner is adjudged bankrupt or insolvent, or has entered against it an order for relief in any
bankruptcy or insolvency proceeding; 
 (vi)    (A) in the event the General Partner is a corporation, the filing
of a certificate of dissolution, or its equivalent, for the corporation or the revocation of its charter and the expiration of ninety (90) days after the date of notice to the corporation of revocation without a reinstatement of its charter;
(B) in the event the General Partner is a partnership or a limited liability company, the dissolution and commencement of winding up of the General Partner; (C) in the event the General Partner is acting in such capacity by virtue of being
a trustee of a trust, the termination of the trust; (D) in the event the General Partner is a natural person, his death or adjudication of incompetency; and (E) otherwise in the event of the termination of the General Partner. 

  
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 If an Event of Withdrawal specified in Section 11.1(a)(iv), (v) or (vi)(A), (B), (C) or
(E) occurs, the withdrawing General Partner shall give notice to the Limited Partners within 30 days after such occurrence. The Partners hereby agree that only the Events of Withdrawal described in this Section 11.1 shall result in
the withdrawal of the General Partner from the Partnership. 
 (b)    Withdrawal of the General Partner from the
Partnership upon the occurrence of an Event of Withdrawal shall not constitute a breach of this Agreement under the following circumstances: (i) the General Partner voluntarily withdraws by giving at least 90 days’ advance notice to
the Unitholders, such withdrawal to take effect on the date specified in such notice; or (ii) at any time that the General Partner ceases to be the General Partner pursuant to Section 11.1(a)(ii) or is removed pursuant to
Section 11.2. The withdrawal of the General Partner from the Partnership upon the occurrence of an Event of Withdrawal shall also constitute the withdrawal of the General Partner as general partner or managing member, if any, to the extent
applicable, of the other Group Members. If the General Partner gives a notice of withdrawal pursuant to Section 11.1(a)(i), the holders of a Unit Majority, may, prior to the effective date of such withdrawal, elect a successor General Partner.
The Person so elected as successor General Partner shall automatically become the successor general partner or managing member, to the extent applicable, of the other Group Members of which the General Partner is a general partner or a managing
member. If, prior to the effective date of the General Partner’s withdrawal a successor is not selected by the Unitholders as provided herein, the Partnership shall be dissolved in accordance with Section 12.1. Any successor General
Partner elected in accordance with the terms of this Section 11.1 shall be subject to the provisions of Section 10.3. 
  

	Section 11.2	Removal of the General Partner. 

 The General Partner may be removed if such removal is
approved by the Unitholders holding at least 66 2/3% of the Outstanding Common Units (including Common Units held by the General Partner and its Affiliates voting as a single class). Any such action by such holders for removal of the General Partner
must also provide for the election of a successor General Partner by the Unitholders holding a majority of the Outstanding Common Units voting as a class (including Common Units held by the General Partner and its Affiliates). Such removal shall be
effective immediately following the admission of a successor General Partner pursuant to Section 10.3. The removal of the General Partner shall also automatically constitute the removal of the General Partner as general partner or managing
member, to the extent applicable, of the other Group Members of which the General Partner is a general partner or a managing member. If a Person is elected as a successor General Partner in accordance with the terms of this Section 11.2, such
Person shall, upon admission pursuant to Section 10.3, automatically become a successor general partner or managing member, to the extent applicable, of the other Group Members of which the General Partner is a general partner or a managing
member. The right of the holders of Outstanding Common Units to remove the General Partner shall not exist or be exercised unless the Partnership has received an Opinion of Counsel that such removal (following the selection of the successor General
Partner) would not result in the loss of the limited liability of any Limited Partner or any Group Member. Any successor General Partner elected in accordance with the terms of this Section 11.2 shall be subject to the provisions of
Section 10.3. 

  
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	Section 11.3	Interest of Departing General Partner and Successor General Partner. 

(a)    In the event of (i) withdrawal of the General Partner under circumstances where such withdrawal does not
violate this Agreement or (ii) removal of the General Partner by the holders of Outstanding Common Units under circumstances where Cause does not exist, if the successor General Partner is elected in accordance with the terms of
Section 11.1 or 11.2, the Departing General Partner shall have the option, exercisable prior to the effective date of the departure of such Departing General Partner, to require its successor to purchase its General Partner Interest
(represented by General Partner Units) and its general partner interest (or equivalent interest), if any, in the other Group Members and all of the Incentive Distribution Rights (collectively, the “Combined Interest”) in exchange
for an amount in cash equal to the fair market value of such Combined Interest, such amount to be determined and payable as of the effective date of its departure. If the General Partner is removed by the Unitholders under circumstances where Cause
exists or if the General Partner withdraws under circumstances where such withdrawal violates this Agreement, and if a successor General Partner is elected in accordance with the terms of Section 11.1 or 11.2 (or if the business of the
Partnership is continued pursuant to Section 12.2 and the successor General Partner is not the former General Partner), such successor shall have the option, exercisable prior to the effective date of the departure of such Departing General
Partner (or, in the event the business of the Partnership is continued, prior to the date the business of the Partnership is continued), to purchase the Combined Interest for such fair market value of such Combined Interest of the Departing General
Partner. In either event, the Departing General Partner shall be entitled to receive all reimbursements due such Departing General Partner pursuant to Section 7.4, including any employee-related liabilities (including severance liabilities),
incurred in connection with the termination of any employees employed by the Departing General Partner for the benefit of the Partnership or the other Group Members. 

For purposes of this Section 11.3(a), the fair market value of the Departing General Partner’s Combined Interest shall be determined
by agreement between the Departing General Partner and its successor or, failing agreement within 30 days after the effective date of such Departing General Partner’s departure, by an independent investment banking firm or other
independent expert selected by the Departing General Partner and its successor, which, in turn, may rely on other experts, and the determination of which shall be conclusive as to such matter. If such parties cannot agree upon one independent
investment banking firm or other independent expert within 45 days after the effective date of such departure, then the Departing General Partner shall designate an independent investment banking firm or other independent expert, the Departing
General Partner’s successor shall designate an independent investment banking firm or other independent expert, and such firms or experts shall mutually select a third independent investment banking firm or independent expert, which third
independent investment banking firm or other independent expert shall determine the fair market value of the Combined Interest of the Departing General Partner. In making its determination, such third independent investment banking firm or other
independent expert may consider the then current trading price of Units on any National Securities Exchange on which Units are then listed or admitted to trading, the value of the Partnership’s assets, the rights and obligations of the
Departing General Partner and other factors it may deem relevant. 

  
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 (b)    If the Combined Interest is not purchased in the manner set forth in
Section 11.3(a), the Departing General Partner (or its transferee) shall become a Limited Partner and its Combined Interest shall be converted into Common Units pursuant to a valuation made by an investment banking firm or other independent
expert selected pursuant to Section 11.3(a), without reduction in such Partnership Interest (but subject to proportionate dilution by reason of the admission of its successor). Any successor General Partner shall indemnify the Departing
General Partner (or its transferee) as to all debts and liabilities of the Partnership arising on or after the date on which the Departing General Partner (or its transferee) becomes a Limited Partner. For purposes of this Agreement, conversion of
the Combined Interest of the Departing General Partner to Common Units will be characterized as if the Departing General Partner (or its transferee) contributed its Combined Interest to the Partnership in exchange for the newly issued Common Units.

 (c)    If a successor General Partner is elected in accordance with the terms of Section 11.1 or 11.2 (or if the
Partnership is continued pursuant to Section 12.2 and the successor General Partner is not the former General Partner) and the option described in Section 11.3(a) is not exercised by the party entitled to do so, the successor General
Partner shall, at the effective date of its admission to the Partnership, contribute to the Partnership cash in the amount equal to the product of the Percentage Interest of the Departing General Partner and the Net Agreed Value of the
Partnership’s assets on such date. In such event, such successor General Partner shall, subject to the following sentence, be entitled to its Percentage Interest of all Partnership allocations and distributions to which the Departing General
Partner was entitled. In addition, the successor General Partner shall cause this Agreement to be amended to reflect that, from and after the date of such successor General Partner’s admission, the successor General Partner’s interest in
all Partnership distributions and allocations shall be its Percentage Interest. 
  

	Section 11.4	Withdrawal of Limited Partners. 

 No Limited Partner shall have any right to withdraw
from the Partnership; provided, however, that when a transferee of a Limited Partner’s Limited Partner Interest becomes a Record Holder of the Limited Partner Interest so transferred, such transferring Limited Partner shall cease
to be a Limited Partner with respect to the Limited Partner Interest so transferred. 
 ARTICLE XII 

DISSOLUTION AND LIQUIDATION 
  

	Section 12.1	Dissolution. 

 The Partnership shall not be dissolved by the admission of additional
Limited Partners or by the admission of a successor General Partner in accordance with the terms of this Agreement. Upon the removal or withdrawal of the General Partner, if a successor General Partner is elected pursuant to Sections 11.1 or
11.2, the Partnership shall not be dissolved and such successor General Partner shall continue the business of the Partnership. The Partnership shall dissolve, and (subject to Section 12.2) its affairs shall be wound up, upon: 

(a)    an election to dissolve the Partnership by the General Partner that is approved by the holders of a Unit Majority;

  
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 (b)    at any time there are no Limited Partners, unless the Partnership is
continued without dissolution in accordance with the Marshall Islands Act; 
 (c)    the entry of a decree of judicial
dissolution of the Partnership pursuant to the provisions of the Marshall Islands Act; or 
 (d)    an Event of
Withdrawal of the General Partner as provided in Section 11.1(a) (other than Section 11.1(a)(ii)), unless a successor is elected and an Opinion of Counsel is received as provided in Sections 11.1(b) or 11.2 and such successor is
admitted to the Partnership pursuant to Section 10.3. 
  

	Section 12.2	Continuation of the Business of the Partnership After Dissolution. 

 Upon
(a) dissolution of the Partnership following an Event of Withdrawal caused by the withdrawal or removal of the General Partner as provided in Sections 11.1(a)(i) or (iii) and the failure of the Partners to select a successor to such
Departing General Partner pursuant to Sections 11.1 or 11.2, then within 90 days thereafter, or (b) dissolution of the Partnership upon an event constituting an Event of Withdrawal as defined in Sections 11.1(a)(iv), (v) or
(vi), then, to the maximum extent permitted by law, within 180 days thereafter, the holders of a Unit Majority may elect to continue the business of the Partnership on the same terms and conditions set forth in this Agreement by appointing as a
successor General Partner a Person approved by the holders of a Unit Majority. Unless such an election is made within the applicable time period as set forth above, the Partnership shall conduct only activities necessary to wind up its affairs. If
such an election is so made, then: 
 (i)    the Partnership shall continue without dissolution unless
earlier dissolved in accordance with this Article XII; 
 (ii)    if the successor General Partner
is not the former General Partner, then the interest of the former General Partner shall be treated in the manner provided in Section 11.3; and 

(iii)    the successor General Partner shall be admitted to the Partnership as General Partner, effective
as of the Event of Withdrawal, by agreeing in writing to be bound by this Agreement; provided, however, that the right of the holders of a Unit Majority to approve a successor General Partner and to reconstitute and to continue the
business of the Partnership shall not exist and may not be exercised unless the Partnership has received an Opinion of Counsel that the exercise of the right would not result in the loss of limited liability of any Limited Partner. 

 

	Section 12.3	Liquidator. 

 Upon dissolution of the Partnership, unless the business of the Partnership
is continued pursuant to Section 12.2, the General Partner shall select one or more Persons to act as Liquidator. The Liquidator (if other than the General Partner) shall be entitled to receive such

  
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compensation for its services as may be approved by holders of a majority of the Outstanding Common Units voting as a single class. The Liquidator (if other than the General Partner) shall agree
not to resign at any time without 15 days’ prior notice and may be removed at any time, with or without cause, by notice of removal approved by holders of a majority of the Outstanding Common Units voting as a single class. Upon
dissolution, removal or resignation of the Liquidator, a successor and substitute Liquidator (who shall have and succeed to all rights, powers and duties of the original Liquidator) shall within 30 days thereafter be approved by holders of a
majority of the Outstanding Common Units voting as a single class. The right to approve a successor or substitute Liquidator in the manner provided herein shall be deemed to refer also to any such successor or substitute Liquidator approved in the
manner herein provided. Except as expressly provided in this Article XII, the Liquidator approved in the manner provided herein shall have and may exercise, without further authorization or consent of any of the parties hereto, all of the
powers conferred upon the General Partner under the terms of this Agreement (but subject to all of the applicable limitations, contractual and otherwise, upon the exercise of such powers, other than the limitation on sale set forth in
Section 7.3(b)) necessary or appropriate to carry out the duties and functions of the Liquidator hereunder for and during the period of time required to complete the winding up and liquidation of the Partnership as provided for herein. 

 

	Section 12.4	Liquidation. 

 The Liquidator shall proceed to dispose of the assets of the Partnership,
discharge its liabilities, and otherwise wind up its affairs in such manner and over such period as determined by the Liquidator, subject to Section 60 of the Marshall Islands Act and the following: 

(a)    The assets may be disposed of by public or private sale or by distribution in kind to one or more Partners on such
terms as the Liquidator and such Partner or Partners may agree. If any property is distributed in kind, the Partner receiving the property shall be deemed for purposes of Section 12.4(c) to have received cash equal to its fair market value, and
contemporaneously therewith, appropriate cash distributions must be made to the other Partners. The Liquidator may defer liquidation or distribution of the Partnership’s assets for a reasonable time if it determines that an immediate sale or
distribution of all or some of the Partnership’s assets would be impractical or would cause undue loss to the Partners. The Liquidator may distribute the Partnership’s assets, in whole or in part, in kind if it determines that a sale would
be impractical or would cause undue loss to the Partners. 
 (b)    Liabilities of the Partnership include amounts owed
to the Liquidator as compensation for serving in such capacity (subject to the terms of Section 12.3) and amounts to Partners otherwise than in respect of their distribution rights under Articles VI and XVI, as applicable. With respect to
any liability that is contingent, conditional or unmatured or is otherwise not yet due and payable, the Liquidator shall either settle such claim for such amount as it thinks appropriate or establish a reserve of cash or other assets to provide for
its payment. When paid, any unused portion of the reserve shall be distributed as additional liquidation proceeds. 

  
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 (c)    All property and all cash in excess of that required to discharge
liabilities as provided in Section 12.4(b) shall be distributed, subject to Section 16.4 in respect of any series of Preferred Units described therein, as follows: 

(i)    If the Current Market Price of the Common Units as of the date three trading days prior to the announcement of the
proposed liquidation exceeds the Unrecovered Capital for a Common Unit: 
 (A)    First, (x) to the
General Partner in accordance with its Percentage Interest and (y) to all the Unitholders holding Common Units, Pro Rata, a percentage equal to 100% less the General Partner’s Percentage Interest, until there has been distributed in
respect of each Common Unit then Outstanding an amount equal to such Current Market Price of a Common Unit; and 

(B)    Thereafter (x) to the General Partner in accordance with its Percentage Interest, (y) 48%
to the holders of the Incentive Distribution Rights, Pro Rata, and (z) to all Unitholders holding Common Units, Pro Rata, a percentage equal to 100% less the sum of the percentages applicable to subclauses (x) and (y) of this clause
(i)(B); and 
 (ii)    If the Current Market Price of a Common Unit as of the date three trading days prior to the
announcement of the proposed liquidation is equal to or less than the Unrecovered Capital for a Common Unit: 

(A)    First, (x) to the General Partner in accordance with its Percentage Interest and (y) to
all the Unitholders holding Common Units, Pro Rata, a percentage equal to 100% less the General Partner’s Percentage Interest, until there has been distributed in respect of each Common Unit then Outstanding an amount equal to the Unrecovered
Capital for a Common Unit; and 
 (B)    Thereafter, (x) to the General Partner in accordance with
its Percentage Interest; (y) 48% to the holders of the Incentive Distribution Rights, Pro Rata; and (z) to all Unitholders holding Common Units, Pro Rata, a percentage equal to 100% less the sum of the percentages applicable to subclauses
(x) and (y) of this clause (ii)(B). 
 Distributions with respect to any series of Preferred Units described in Article XVI in connection with a
liquidation or dissolution of the Partnership shall be made pursuant to Section 16.4, rather than pursuant to clause (i) or (ii) of this Section 12.4(c). 
  

	Section 12.5	Cancellation of Certificate of Limited Partnership. 

 Upon the completion of the
distribution of Partnership cash and property as provided in Section 12.4 in connection with the liquidation of the Partnership, the Certificate of Limited Partnership and all qualifications of the Partnership as a foreign limited partnership
in jurisdictions other than the Marshall Islands shall be canceled and such other actions as may be necessary to terminate the Partnership shall be taken. 

  
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	Section 12.6	Return of Contributions. 

 The General Partner shall not be personally liable for, and
shall have no obligation to contribute or loan any monies or property to the Partnership to enable it to effectuate, the return of the Capital Contributions of the Limited Partners or Unitholders, or any portion thereof, it being expressly
understood that any such return shall be made solely from Partnership assets. 
  

	Section 12.7	Waiver of Partition. 

 To the maximum extent permitted by law, each Partner hereby waives
any right to partition of the Partnership property. 
 ARTICLE XIII 

AMENDMENT OF PARTNERSHIP AGREEMENT; MEETINGS; RECORD DATE 
  

	Section 13.1	Amendments to be Adopted Solely by the General Partner. 

 Each Partner agrees that the
General Partner, without the approval of any Partner, may amend any provision of this Agreement and execute, swear to, acknowledge, deliver, file and record whatever documents may be required in connection therewith, to reflect: 

(a)    a change in the name of the Partnership, the location of the principal place of business of the Partnership, the
registered agent of the Partnership or the registered office of the Partnership; 
 (b)    admission, substitution,
withdrawal or removal of Partners in accordance with this Agreement; 
 (c)    a change that the General Partner
determines to be necessary or appropriate to qualify or continue the qualification of the Partnership as a limited partnership or a partnership in which the Limited Partners have limited liability under the laws of the Marshall Islands or to ensure
that the Group Members will not be treated as associations taxable as corporations or otherwise taxed as entities for Marshall Islands income tax purposes; 

(d)    subject to Section 16.5, to the extent applicable, a change that the General Partner determines (i) does
not adversely affect the Limited Partners (including any particular class or series of Partnership Interests as compared to other classes or series of Partnership Interests) in any material respect, (ii) to be necessary or appropriate
to (A) satisfy any requirements, conditions or guidelines contained in any opinion, directive, order, ruling or regulation of any Marshall Islands authority (including the Marshall Islands Act) or (B) facilitate the trading of the Units
(including the division of any class, classes or series of Outstanding Units into different classes or series to facilitate uniformity of tax consequences within such classes or series of Units) or comply with any rule, regulation, guideline or
requirement of any National Securities Exchange on which the Units are or will be listed, (iii) to be necessary or appropriate in connection with action taken by the General Partner pursuant to Section 5.8 or (iv) is required to
effect the intent expressed in the Registration Statement or the intent of the provisions of this Agreement or is otherwise contemplated by this Agreement; 

  
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 (e)    a change in the fiscal year or taxable year of the Partnership and any
other changes that the General Partner determines to be necessary or appropriate as a result of a change in the fiscal year or taxable year of the Partnership including, if the General Partner shall so determine, a change in the definition of
“Quarter” and the dates on which distributions (other than Preferred Unit Distributions) are to be made by the Partnership; 

(f)    an amendment that is necessary, in the Opinion of Counsel, to prevent the Partnership, or the General Partner or
its directors, officers, trustees or agents from in any manner being subjected to the provisions of the U.S. Investment Company Act of 1940, as amended, the U.S. Investment Advisers Act of 1940, as amended, or “plan asset”
regulations adopted under the U.S. Employee Retirement Income Security Act of 1974, as amended, regardless of whether such regulations are substantially similar to plan asset regulations currently applied or proposed by the United States
Department of Labor; 
 (g)    subject to Section 16.5, an amendment that the General Partner determines to be
necessary or appropriate in connection with the authorization of issuance of any class or series of Partnership Securities pursuant to Section 5.5; 

(h)    any amendment expressly permitted in this Agreement to be made by the General Partner acting alone; 

(i)    an amendment effected, necessitated or contemplated by a Merger Agreement approved in accordance with
Section 14.3; 
 (j)    an amendment that the General Partner determines to be necessary or appropriate to reflect
and account for the formation by the Partnership of, or investment by the Partnership in, any corporation, partnership, joint venture, limited liability company or other Person, in connection with the conduct by the Partnership of activities
permitted by the terms of Section 2.4; 
 (k)    a conversion, merger or conveyance pursuant to
Section 14.3(d); or 
 (l)    any other amendments substantially similar to the foregoing. 

 

	Section 13.2	Amendment Procedures. 

 Except as provided in Sections 13.1 and 13.3, all amendments
to this Agreement shall be made in accordance with the following requirements. Amendments to this Agreement may be proposed only by the General Partner; provided, however, that the General Partner shall have no duty or obligation to
propose any amendment to this Agreement and may decline to do so free of any fiduciary duty or obligation whatsoever to the Partnership or any Limited Partner and, in declining to propose an amendment, to the fullest extent permitted by applicable
law shall not be required to act in good faith or pursuant to any other standard imposed by this Agreement, any Group Member Agreement, any other agreement contemplated hereby or under the Marshall Islands Act or any other law, rule or regulation.
Subject to Section 16.5, to the extent applicable, a proposed amendment shall be effective upon its approval by the General Partner and the holders of a Unit Majority, unless a greater or different percentage is required under this Agreement or
by the Marshall Islands Act. Each proposed amendment that requires the approval 

  
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of the holders of a specified percentage of Outstanding Units shall be set forth in a writing that contains the text of the proposed amendment. If such an amendment is proposed, the General
Partner shall seek the written approval of the requisite percentage of Outstanding Units or call a meeting of the Unitholders to consider and vote on such proposed amendment. The General Partner shall notify all Record Holders upon final adoption of
any such proposed amendments. 
  

	Section 13.3	Amendment Requirements. 

 (a)    Notwithstanding the provisions of
Sections 13.1 and 13.2, no provision of this Agreement that establishes a percentage of Outstanding Units (including Units deemed owned by the General Partner) required to take any action shall be amended, altered, changed, repealed or
rescinded in any respect that would have the effect of reducing such voting percentage unless such amendment is approved by the written consent or the affirmative vote of holders of Outstanding Units whose aggregate Outstanding Units constitute not
less than the voting requirement sought to be reduced. 
 (b)    Notwithstanding the provisions of Sections 13.1
and 13.2, no amendment to this Agreement may (i) enlarge the obligations of any Limited Partner without its consent, unless such enlargement shall be deemed to have occurred as a result of an amendment approved pursuant to Section 13.3(c),
(ii) enlarge the obligations of, restrict in any way any action by or rights of, or reduce in any way the amounts distributable, reimbursable or otherwise payable to, the General Partner or any of its Affiliates without its consent, which
consent may be given or withheld at the General Partner’s option, (iii) change Section 12.1(a), or (iv) change the term of the Partnership or, except as set forth in Section 12.1(a), give any Person the right to dissolve the
Partnership. 
 (c)    Except as provided in Section 14.3 and subject to Section 16.5(c)(i) with respect to
the applicable series of Preferred Units described therein, and without limitation of the General Partner’s authority to adopt amendments to this Agreement without the approval of any Partners as contemplated in Section 13.1, any amendment
that would have a material adverse effect on the rights or preferences of any class or series of Partnership Interests in relation to other classes or series of Partnership Interests must be approved by the holders of not less than a
majority of the Outstanding Partnership Interests of the class or series affected. 
 (d)    Notwithstanding any
other provision of this Agreement, except for amendments pursuant to Section 13.1 and except as otherwise provided by Section 14.3(b), no amendments shall become effective without the approval of the holders of at least 90% of the
Outstanding Units voting as a single class unless the Partnership obtains an Opinion of Counsel to the effect that such amendment will not affect the limited liability of any Limited Partner under applicable law. 

(e)    Except as provided in Section 13.1, this Section 13.3 shall only be amended with the approval of the
holders of at least 90% of the Outstanding Units. 
  

	Section 13.4	Special Meetings. 

 All acts of Limited Partners to be taken pursuant to this Agreement
shall be taken in the manner provided in this Article XIII. Special meetings of the Limited Partners may be called by 

  
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the General Partner or by Limited Partners owning 20% or more of the Outstanding Units of the class, classes or series for which a meeting is proposed. Limited Partners shall call a special
meeting by delivering to the General Partner one or more requests in writing stating that the signing Limited Partners wish to call a special meeting and indicating the general or specific purposes for which the special meeting is to be called.
Within 60 days after receipt of such a call from Limited Partners or within such greater time as may be reasonably necessary for the Partnership to comply with any statutes, rules, regulations, listing agreements or similar requirements
governing the holding of a meeting or the solicitation of proxies for use at such a meeting, the General Partner shall send a notice of the meeting to the Limited Partners either directly or indirectly through the Transfer Agent. A meeting shall be
held at a time and place determined by the General Partner on a date not less than 10 days nor more than 60 days after the mailing of notice of the meeting. Limited Partners shall not vote on matters that would cause the Limited Partners
to be deemed to be taking part in the management and control of the business and affairs of the Partnership so as to jeopardize the Limited Partners’ limited liability under the Marshall Islands Act or the law of any other jurisdiction in which
the Partnership is qualified to do business. 
  

	Section 13.5	Notice of a Meeting. 

 Notice of a meeting called pursuant to Section 13.4 shall be
given to the Record Holders of the class, classes or series of Units for which a meeting is proposed in writing by mail or other means of written communication in accordance with Section 17.1. The notice shall be deemed to have been given at
the time when deposited in the mail or sent by other means of written communication. 
  

	Section 13.6	Record Date. 

 For purposes of determining the Limited Partners entitled to notice of or
to vote at a meeting of the Limited Partners or to give approvals without a meeting as provided in Section 13.11, the General Partner may set a Record Date, which shall not be less than 10 nor more than 60 days before (a) the date of
the meeting (unless such requirement conflicts with any rule, regulation, guideline or requirement of any National Securities Exchange on which the Units are listed or admitted to trading, in which case the rule, regulation, guideline or requirement
of such National Securities Exchange shall govern) or (b) in the event that approvals are sought without a meeting, the date by which Limited Partners are requested in writing by the General Partner to give such approvals. If the General
Partner does not set a Record Date, then (a) the Record Date for determining the Limited Partners entitled to notice of or to vote at a meeting of the Limited Partners shall be the close of business on the day next preceding the day on which
notice is given, and (b) the Record Date for determining the Limited Partners entitled to give approvals without a meeting shall be the date the first written approval is deposited with the Partnership in care of the General Partner in
accordance with Section 13.11. 
  

	Section 13.7	Adjournment. 

 When a meeting is adjourned to another time or place, notice need not be
given of the adjourned meeting and a new Record Date need not be fixed, if the time and place thereof are announced at the meeting at which the adjournment is taken, unless such adjournment shall be 

  
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for more than 45 days. At the adjourned meeting, the Partnership may transact any business which might have been transacted at the original meeting. If the adjournment is for more than
45 days or if a new Record Date is fixed for the adjourned meeting, a notice of the adjourned meeting shall be given in accordance with this Article XIII. 
  

	Section 13.8	Waiver of Notice; Approval of Meeting; Approval of Minutes. 

 The transactions of any
meeting of Limited Partners, however called and noticed, and whenever held, shall be as valid as if it had occurred at a meeting duly held after regular call and notice, if a quorum is present either in person or by proxy. Attendance of a Limited
Partner at a meeting shall constitute a waiver of notice of the meeting, except when the Limited Partner attends the meeting for the express purpose of objecting, at the beginning of the meeting, to the transaction of any business because the
meeting is not lawfully called or convened; and except that attendance at a meeting is not a waiver of any right to disapprove the consideration of matters required to be included in the notice of the meeting, but not so included, if the disapproval
is expressly made at the meeting. 
  

	Section 13.9	Quorum and Voting. 

 The holders of a majority of the Outstanding Units of the class,
classes or series for which a meeting has been called (including Outstanding Units deemed owned by the General Partner) represented in person or by proxy shall constitute a quorum at a meeting of Limited Partners of such class, classes or series
unless any such action by the Limited Partners requires approval by holders of a greater percentage of such Units, in which case the quorum shall be such greater percentage. At any meeting of the Limited Partners duly called and held in accordance
with this Agreement at which a quorum is present, the act of Limited Partners holding Outstanding Units that in the aggregate represent a majority of the Outstanding Units entitled to vote and be present in person or by proxy at such meeting shall
be deemed to constitute the act of all Limited Partners, unless a greater or different percentage is required with respect to such action under the provisions of this Agreement, in which case the act of the Limited Partners holding Outstanding Units
that in the aggregate represent at least such greater or different percentage shall be required. The Limited Partners present at a duly called or held meeting at which a quorum is present may continue to transact business until adjournment,
notwithstanding the withdrawal of enough Limited Partners to leave less than a quorum, if any action taken (other than adjournment) is approved by the required percentage of Outstanding Units specified in this Agreement (including Outstanding Units
deemed owned by the General Partner). In the absence of a quorum, any meeting of Limited Partners may be adjourned from time to time by the affirmative vote of holders of a majority of the Outstanding Units entitled to vote at such meeting
(including Outstanding Units deemed owned by the General Partner) represented either in person or by proxy, but no other business may be transacted, except as provided in Section 13.7. 

 

	Section 13.10	Conduct of a Meeting. 

 The General Partner shall have full power and authority
concerning the manner of conducting any meeting of the Limited Partners or solicitation of approvals in writing, including the determination of Persons entitled to vote, the existence of a quorum, the satisfaction of the

  
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requirements of Section 13.4, the conduct of voting, the validity and effect of any proxies and the determination of any controversies, votes or challenges arising in connection with or
during the meeting or voting. The General Partner shall designate a Person to serve as chairman of any meeting and shall further designate a Person to take the minutes of any meeting. All minutes shall be kept with the records of the Partnership
maintained by the General Partner. The General Partner may make such other regulations consistent with applicable law and this Agreement as it may deem advisable concerning the conduct of any meeting of the Limited Partners or solicitation of
approvals in writing, including regulations in regard to the appointment of proxies, the appointment and duties of inspectors of votes and approvals, the submission and examination of proxies and other evidence of the right to vote, and the
revocation of approvals in writing. 
  

	Section 13.11	Action Without a Meeting. 

 If authorized by the General Partner, any action that may be
taken at a meeting of the Limited Partners may be taken without a meeting if an approval in writing setting forth the action so taken is signed by Limited Partners owning not less than the minimum percentage of the Outstanding Units (including Units
deemed owned by the General Partner) that would be necessary to authorize or take such action at a meeting at which all the Limited Partners were present and voted (unless such provision conflicts with any rule, regulation, guideline or requirement
of any National Securities Exchange on which the Units are listed or admitted to trading, in which case the rule, regulation, guideline or requirement of such National Securities Exchange shall govern). Prompt notice of the taking of action without
a meeting shall be given to the Limited Partners who have not approved the action in writing. The General Partner may specify that any written ballot submitted to Limited Partners for the purpose of taking any action without a meeting shall be
returned to the Partnership within the time period, which shall be not less than 20 days, specified by the General Partner. If a ballot returned to the Partnership does not vote all of the Units held by the Limited Partners, the Partnership
shall be deemed to have failed to receive a ballot for the Units that were not voted. If approval of the taking of any action by the Limited Partners is solicited by any Person other than by or on behalf of the General Partner, the written approvals
shall have no force and effect unless and until (a) they are deposited with the Partnership in care of the General Partner, (b) approvals sufficient to take the action proposed are dated as of a date not more than 90 days prior to the
date sufficient approvals are deposited with the Partnership and (c) an Opinion of Counsel is delivered to the General Partner to the effect that the exercise of such right and the action proposed to be taken with respect to any particular
matter (i) will not cause the Limited Partners to be deemed to be taking part in the management and control of the business and affairs of the Partnership so as to jeopardize the Limited Partners’ limited liability, and (ii) is
otherwise permissible under the applicable statutes then governing the rights, duties and liabilities of the Partnership and the Partners. 
  

	Section 13.12	Right to Vote and Related Matters. 

 (a)    Only those Record Holders
of the Units on the Record Date set pursuant to Section 13.6 (and also subject to the limitations contained in the definition of “Outstanding”) shall be entitled to notice of, and to vote at, a meeting of Limited Partners or to
act with respect to matters as to which the holders of the Outstanding Units have the right to vote or to act. All references in this Agreement to votes of, or other acts that may be taken by, the Outstanding Units shall be deemed to be references
to the votes or acts of the Record Holders of such Outstanding Units. 

  
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 (b)    With respect to Units that are held for a Person’s account by
another Person (such as a broker, dealer, bank, trust company or clearing corporation, or an agent of any of the foregoing), in whose name such Units are registered, such other Person shall, in exercising the voting rights in respect of such Units
on any matter, and unless the arrangement between such Persons provides otherwise, vote such Units in favor of, and at the direction of, the Person who is the beneficial owner, and the Partnership shall be entitled to assume it is so acting without
further inquiry. The provisions of this Section 13.12(b) (as well as all other provisions of this Agreement) are subject to the provisions of Section 4.3. 

ARTICLE XIV 
 MERGER

  

	Section 14.1	Authority. 

 The Partnership may merge or consolidate with or into one or more
corporations, limited liability companies, statutory trusts or associations, real estate investment trusts, common law trusts or unincorporated businesses, including a partnership (whether general or limited (including a limited liability
partnership)), formed under the laws of the Marshall Islands or the State of Delaware or any other state of the United States, pursuant to a written agreement of merger or consolidation (“Merger Agreement”) in accordance with this
Article XIV. 
  

	Section 14.2	Procedure for Merger or Consolidation. 

 Merger or consolidation of the Partnership
pursuant to this Article XIV requires the prior consent of the General Partner; provided, however, that, to the fullest extent permitted by law, the General Partner shall have no duty or obligation to consent to any merger or
consolidation of the Partnership and may decline to do so free of any fiduciary duty or obligation whatsoever to the Partnership or any Limited Partner and, in declining to consent to a merger or consolidation, shall not be required to act in good
faith or pursuant to any other standard imposed by this Agreement, any Group Member Agreement, any other agreement contemplated hereby or under the Marshall Islands Act or any other law, rule or regulation or at equity. If the General Partner shall
determine to consent to the merger or consolidation, the General Partner shall approve the Merger Agreement, which shall set forth: 

(a)    the names and jurisdictions of formation or organization of each of the business entities proposing to merge or
consolidate; 
 (b)    the name and jurisdiction of formation or organization of the business entity that is to survive
the proposed merger or consolidation (the “Surviving Business Entity”); 
 (c)    the terms and
conditions of the proposed merger or consolidation; 
 (d)    the manner and basis of exchanging or converting the
equity securities of each constituent business entity for, or into, cash, property or interests, rights, securities or obligations of the Surviving Business Entity; and (i) if any general or limited partner interests, securities or

  
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rights of any constituent business entity are not to be exchanged or converted solely for, or into, cash, property or interests, rights, securities or obligations of the Surviving Business
Entity, the cash, property or general or limited partner interests, rights, securities or obligations of any general or limited partnership, corporation, trust, limited liability company, unincorporated business or other Person (other than the
Surviving Business Entity) which the holders of such interests, securities or rights are to receive in exchange for, or upon conversion of their interests, securities or rights, and (ii) in the case of securities represented by certificates,
upon the surrender of such certificates, which cash, property or interests, rights, securities or obligations of the Surviving Business Entity or any general or limited partnership, corporation, trust, limited liability company, unincorporated
business or other Person (other than the Surviving Business Entity), or evidences thereof, are to be delivered; 

(e)    a statement of any changes in the constituent documents or the adoption of new constituent documents (the articles
or certificate of incorporation, articles of trust, declaration of trust, certificate or agreement of limited partnership or other similar charter or governing document) of the Surviving Business Entity to be effected by such merger or
consolidation; 
 (f)    the effective time of the merger, which may be the date of the filing of the certificate of
merger pursuant to Section 14.4 or a later date specified in or determinable in accordance with the Merger Agreement (provided, that if the effective time of the merger is to be later than the date of the filing of such certificate of merger,
the effective time shall be fixed at a date or time certain at or prior to the time of the filing of such certificate of merger and stated therein); and 

(g)    such other provisions with respect to the proposed merger or consolidation that the General Partner determines to
be necessary or appropriate. 
  

	Section 14.3	Approval by Limited Partners of Merger or Consolidation. 

(a)    Except as provided in Sections 14.3(d) and 14.3(e), the General Partner, upon its approval of the Merger
Agreement, shall direct that the Merger Agreement be submitted to a vote of Limited Partners, whether at a special meeting or by written consent, in either case in accordance with the requirements of Article XIII. A copy or a summary of the
Merger Agreement shall be included in or enclosed with the notice of a special meeting or the written consent. 

(b)    Except as provided in Sections 14.3(d) and 14.3(e), the Merger Agreement shall be approved upon receiving the
affirmative vote or consent of the holders of a Unit Majority. 
 (c)    Except as provided in Sections 14.3(d) and
14.3(e), after such approval by vote or consent of the Limited Partners, and at any time prior to the filing of the certificate of merger pursuant to Section 14.4, the merger or consolidation may be abandoned pursuant to provisions therefor, if
any, set forth in the Merger Agreement. 
 (d)    Notwithstanding anything else contained in this Article XIV or in
this Agreement, the General Partner is permitted, without Limited Partner approval, to convert the Partnership or any Group Member into a new limited liability entity, to merge the Partnership or any Group Member into, or convey all of the
Partnership’s assets to, another limited liability entity which 

  
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shall be newly formed and shall have no assets, liabilities or operations at the time of such conversion, merger or conveyance other than those it receives from the Partnership or other Group
Member if (i) the General Partner has received an Opinion of Counsel that the conversion, merger or conveyance, as the case may be, would not result in the loss of the limited liability of any Limited Partner, (ii) the sole purpose of such
conversion, merger or conveyance is to effect a mere change in the legal form of the Partnership into another limited liability entity and (iii) the governing instruments of the new entity provide the Limited Partners and the General Partner
with the same rights and obligations as are herein contained. 
 (e)    Additionally, notwithstanding anything else
contained in this Article XIV or in this Agreement, the General Partner is permitted, without Limited Partner approval, to merge or consolidate the Partnership with or into another entity if (i) the General Partner has received an Opinion
of Counsel that the merger or consolidation, as the case may be, would not result in the loss of the limited liability of any Limited Partner, (ii) the merger or consolidation would not result in an amendment to this Agreement, other than any
amendments that could be adopted pursuant to Section 13.1, (iii) the Partnership is the Surviving Business Entity in such merger or consolidation, (iv) each Unit outstanding immediately prior to the effective date of the merger or
consolidation is to be an identical Unit of the Partnership after the effective date of the merger or consolidation, and (v) the number of Partnership Securities to be issued by the Partnership in such merger or consolidation does not exceed
20% of the Partnership Securities Outstanding immediately prior to the effective date of such merger or consolidation. 
  

	Section 14.4	Certificate of Merger. 

 Upon the required approval by the General Partner and the
Unitholders of a Merger Agreement, a certificate of merger shall be executed and filed in conformity with the requirements of the Marshall Islands Act. 
  

	Section 14.5	Amendment of Partnership Agreement. 

 Pursuant to Section 20(2) of the Marshall
Islands Act, an agreement of merger or consolidation approved in accordance with Section 20(2) of the Marshall Islands Act may (a) effect any amendment to this Agreement or (b) effect the adoption of a new partnership agreement for a
limited partnership if it is the Surviving Business Entity. Any such amendment or adoption made pursuant to this Section 14.5 shall be effective at the effective time or date of the merger or consolidation. 

 

	Section 14.6	Effect of Merger. 

 (a)    At the effective time of the certificate
of merger: 
 (i)    all of the rights, privileges and powers of each of the business entities that has merged or
consolidated, and all property, real, personal and mixed, and all debts due to any of those business entities and all other things and causes of action belonging to each of those business entities, shall be vested in the Surviving Business Entity
and after the merger or consolidation shall be the property of the Surviving Business Entity to the extent they were of each constituent business entity; 

  
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 (ii)    the title to any real property vested by deed or otherwise in any of
those constituent business entities shall not revert and is not in any way impaired because of the merger or consolidation; 

(iii)    all rights of creditors and all liens on or security interests in property of any of those constituent business
entities shall be preserved unimpaired; and 
 (iv)    all debts, liabilities and duties of those constituent
business entities shall attach to the Surviving Business Entity and may be enforced against it to the same extent as if the debts, liabilities and duties had been incurred or contracted by it. 

(b)    A merger or consolidation effected pursuant to this Article shall not be deemed to result in a transfer or
assignment of assets or liabilities from one entity to another. 
 ARTICLE XV 

RIGHT TO ACQUIRE LIMITED PARTNER INTERESTS 
  

	Section 15.1	Right to Acquire Limited Partner Interests. 

 (a)    Notwithstanding
any other provision of this Agreement, if at any time the General Partner and its Affiliates hold more than 80% of the total Limited Partner Interests of any class or series then Outstanding, the General Partner shall then have the right, which
right it may assign and transfer in whole or in part to the Partnership or any Affiliate of the General Partner, exercisable at its option, to purchase all, but not less than all, of such Limited Partner Interests of such class or series then
Outstanding held by Persons other than the General Partner and its Affiliates, at the greater of (x) the Current Market Price as of the date three days prior to the date that the notice described in Section 15.1(b) is mailed and
(y) the highest price paid by the General Partner or any of its Affiliates for any such Limited Partner Interest of such class or series purchased during the 90-day period preceding the date that the
notice described in Section 15.1(b) is mailed. Notwithstanding the foregoing, the repurchase right described in this Article XV shall not apply to Preferred Units. 

(b)    If the General Partner, any Affiliate of the General Partner or the Partnership elects to exercise the right to
purchase Limited Partner Interests granted pursuant to Section 15.1(a), the General Partner shall deliver to the Transfer Agent notice of such election to purchase (the “Notice of Election to Purchase”) and shall cause the
Transfer Agent to mail a copy of such Notice of Election to Purchase to the Record Holders of Limited Partner Interests of such class or series (as of a Record Date selected by the General Partner) at least 10, but not more than 60, days prior
to the Purchase Date. Such Notice of Election to Purchase shall also be published for a period of at least three consecutive days in at least two daily newspapers of general circulation printed in the English language and published in the Borough of
Manhattan, New York. The Notice of Election to Purchase shall specify the Purchase Date and the price (determined in accordance with Section 15.1(a)) at which Limited Partner Interests will be purchased and state that the General Partner, its
Affiliate or the Partnership, as the case may be, elects to purchase such Limited Partner Interests, upon surrender of Certificates representing such Limited Partner Interests in exchange for payment, at such office or offices of the Transfer Agent
as the Transfer Agent may specify, or as may be required by any National Securities 

  
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Exchange on which such Limited Partner Interests are listed. Any such Notice of Election to Purchase mailed to a Record Holder of Limited Partner Interests at his address as reflected in the
records of the Transfer Agent shall be conclusively presumed to have been given regardless of whether the owner receives such notice. On or prior to the Purchase Date, the General Partner, its Affiliate or the Partnership, as the case may be, shall
deposit with the Transfer Agent cash in an amount sufficient to pay the aggregate purchase price of all of such Limited Partner Interests to be purchased in accordance with this Section 15.1. If the Notice of Election to Purchase shall have
been duly given as aforesaid at least 10 days prior to the Purchase Date, and if on or prior to the Purchase Date the deposit described in the preceding sentence has been made for the benefit of the holders of Limited Partner Interests subject
to purchase as provided herein, then from and after the Purchase Date, notwithstanding that any Certificate shall not have been surrendered for purchase, all rights of the holders of such Limited Partner Interests (including any rights pursuant to
Articles IV, V, VI and XII) shall thereupon cease, except the right to receive the applicable purchase price (determined in accordance with Section 15.1(a)) for Limited Partner Interests therefor, without interest, upon surrender to
the Transfer Agent of the Certificates representing such Limited Partner Interests, and such Limited Partner Interests shall thereupon be deemed to be transferred to the General Partner, its Affiliate or the Partnership, as the case may be, on the
record books of the Transfer Agent and the Partnership, and the General Partner or any Affiliate of the General Partner, or the Partnership, as the case may be, shall be deemed to be the owner of all such Limited Partner Interests from and after the
Purchase Date and shall have all rights as the owner of such Limited Partner Interests (including all rights as owner of such Limited Partner Interests pursuant to Articles IV, V, VI and XII). 

(c)    At any time from and after the Purchase Date, a holder of an Outstanding Limited Partner Interest subject to
purchase as provided in this Section 15.1 may surrender his Certificate evidencing such Limited Partner Interest to the Transfer Agent in exchange for payment of the amount described in Section 15.1(a), without interest thereon. 

ARTICLE XVI 
 SERIES A,
SERIES B AND SERIES E CUMULATIVE REDEEMABLE PREFERRED UNITS 
  

	Section 16.1	Designations. 

 (a)    On April 23, 2013, the General Partner
designated and created a series of Preferred Units designated as “7.25% Series A Cumulative Redeemable Preferred Units,” and fixed the preferences, rights, powers and duties of the holders of the Series A Preferred Units as set
forth in this Article XVI. Each Series A Preferred Unit shall be identical in all respects to every other Series A Preferred Unit, except as to the respective dates from which the Series A Liquidation Preference shall increase or from
which Series A Distributions may begin accruing, to the extent such dates may differ. The Series A Preferred Units represent perpetual equity interests in the Partnership and shall not give rise to a claim by the holder for redemption
thereof at a particular date. 
 (b)    On April 13, 2015, the General Partner designated and created a series of
Preferred Units designated as “8.50% Series B Cumulative Redeemable Preferred Units,” and fixed the preferences, rights, powers and duties of the holders of the Series B Preferred Units as

  
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set forth in this Article XVI. Each Series B Preferred Unit shall be identical in all respects to every other Series B Preferred Unit, except as to the respective dates from which the
Series B Liquidation Preference shall increase or from which Series B Distributions may begin accruing, to the extent such dates may differ. The Series B Preferred Units represent perpetual equity interests in the Partnership and
shall not give rise to a claim by the holder for redemption thereof at a particular date. 
 (c)    The General Partner
hereby designates and creates a series of Preferred Units to be designated as “8.875% Series E Fixed-to-Floating Rate Cumulative Redeemable Perpetual Preferred
Units,” and fixed the preferences, rights, powers and duties of the holders of the Series E Preferred Units as set forth in this Article XVI. Each Series E Preferred Unit shall be identical in all respects to every other Series E
Preferred Unit, except as to the respective dates from which the Series E Liquidation Preference shall increase or from which Series E Distributions may begin accruing, to the extent such dates may differ. The Series E Preferred Units
represent perpetual equity interests in the Partnership and shall not give rise to a claim by the holder for redemption thereof at a particular date. 
  

	Section 16.2	Units. 

 (a)    The authorized number of Series A Preferred
Units, of Series B Preferred Units and of Series E Preferred Units shall each be unlimited. Series A Preferred Units, Series B Preferred Units or Series E Preferred Units that are purchased or otherwise acquired by the Partnership shall be
cancelled. 
 (b)    The Series A Preferred Units, the Series B Preferred Units and the Series E Preferred Units
shall, as to each such series of Preferred Units, be represented by a single Certificate registered in the name of the Depository or its nominee, and no Series A Holder, Series B Holder or Series E Holder shall be entitled to receive a
Certificate evidencing such applicable Units, unless otherwise required by law or the Depository gives notice of its intention to resign or is no longer eligible to act as such with respect to such series of Preferred Units and the Partnership shall
have not selected a substitute Depository within 60 calendar days thereafter. So long as the Depository shall have been appointed and is serving with respect to such series of Preferred Units, payments and communications made by the Partnership to
Series A Holders, Series B Holders or Series E Holders shall be made by making payments to, and communicating with, the Depository. 
  

	Section 16.3	Distributions. 

 (a)    Distributions on each Series A Preferred
Unit shall be cumulative and shall accrue at the Series A Distribution Rate from the Series A Original Issue Date (or, for any subsequently issued and newly Outstanding Series A Preferred Units, from the Series A Distribution
Payment Date immediately preceding the issuance date of such Units) until such time as the Partnership pays the Series A Distribution or redeems the Series A Preferred Units in full in accordance with Section 16.6 below, whether or not
such Series A Distributions shall have been declared. Distributions on each Series B Preferred Unit shall be cumulative and shall accrue at the Series B Distribution Rate from the Series B Original Issue Date (or, for any subsequently
issued and newly Outstanding Series B Preferred Units, from the Series B Distribution Payment Date 

  
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immediately preceding the issuance date of such Units) until such time as the Partnership pays the Series B Distribution or redeems the Series B Preferred Units in full in accordance with
Section 16.6 below, whether or not such Series B Distributions shall have been declared. Distributions on each Series E Preferred Unit shall be cumulative and shall accrue at the applicable Series E Distribution Rate from the
Series E Original Issue Date (or, for any subsequently issued and newly Outstanding Series E Preferred Units, from the Series E Distribution Payment Date immediately preceding the issuance date of such Units) until such time as the
Partnership pays the Series E Distribution or redeems the Series E Preferred Units in full in accordance with Section 16.6 below, whether or not such Series E Distributions shall have been declared. Series A Holders, Series B Holders
and Series E Holders shall be entitled to receive Series A Distributions, Series B Distributions or Series E Distributions, as applicable, from time to time out of any assets of the Partnership legally available for the payment of distributions at
the Series A Distribution Rate per Series A Preferred Unit, at the Series B Distribution Rate per Series B Preferred Unit, or at the applicable Series E Distribution Rate per Series E Preferred Unit, as applicable, in each case when, as,
and if declared by the General Partner. Distributions, to the extent declared by the General Partner to be paid by the Partnership in accordance with this Section 16.3, shall be paid quarterly on each Series A Distribution Payment Date,
Series B Distribution Payment Date or Series E Distribution Payment Date, as applicable. Distributions shall accumulate in each Series A Distribution Period from and including the preceding Series A Distribution Payment Date (other than
the initial Series A Distribution Period, which shall commence on and include the Series A Original Issue Date), to but excluding the next Series A Distribution Payment Date for such Series A Distribution Period, and
distributions shall accrue on accumulated Series A Distributions at the Series A Distribution Rate. Distributions shall accumulate in each Series B Distribution Period from and including the preceding Series B Distribution Payment Date
(other than the initial Series B Distribution Period, which shall commence on and include the Series B Original Issue Date), to but excluding the next Series B Distribution Payment Date for such Series B Distribution Period, and distributions shall
accrue on accumulated Series B Distributions at the Series B Distribution Rate. Distributions shall accumulate in each Series E Distribution Period from and including the preceding Series E Distribution Payment Date (other than the initial Series E
Distribution Period, which shall commence on and include the Series E Original Issue Date), to but excluding the next Series E Distribution Payment Date for such Series E Distribution Period, and distributions shall accrue on accumulated
Series E Distributions at the applicable Series E Distribution Rate. If any Series A Distribution Payment Date, Series B Distribution Payment Date or Series E Distribution Payment Date (during the Series E Fixed Rate Period) otherwise
would occur on a date that is not a Business Day, declared Series A Distributions, Series B Distributions or Series E Distributions, as applicable, shall be paid on the immediately succeeding Business Day without the accumulation of additional
distributions. Series A Distributions and Series B Distributions shall be payable based on a 360-day year consisting of twelve 30-day months. Series E Distributions for
any Series E Distribution Period during the Series E Fixed Rate Period shall be payable based on a 360-day year consisting of twelve 30-day months and Series E
Distributions for any Series E Distribution Period during the Series E Floating Rate Period shall be payable based on a 360-day year and the number of days actually elapsed during such Series E Distribution
Period. 
 (b)    Not later than 5:00 p.m., New York City time, on each Series A Distribution Payment Date, Series
B Distribution Payment Date and Series E Distribution Payment Date, the 

  
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Partnership shall pay those Series A Distributions, Series B Distributions or Series E Distributions, if any, that shall have been declared by the General Partner to Series A Holders, Series
B Holders or Series E Holders, as applicable, on the Record Date for the applicable Series A Preferred Distribution, Series B Preferred Distribution or Series E Preferred Distribution. The Record Date (the “Series A
Distribution Record Date”) for the payment of any Series A Distributions shall be the fifth Business Day immediately preceding the applicable Series A Distribution Payment Date, except that in the case of payments of Series A
Distributions in arrears, the Series A Distribution Record Date with respect to a Series A Distribution Payment Date shall be such date as may be designated by the General Partner in accordance with this Article XVI. The Record Date
(the “Series B Distribution Record Date”) for the payment of any Series B Distributions shall be the fifth Business Day immediately preceding the applicable Series B Distribution Payment Date, except that in the case of payments of
Series B Distributions in arrears, the Series B Distribution Record Date with respect to a Series B Distribution Payment Date shall be such date as may be designated by the General Partner in accordance with this Article XVI. The Record Date (the
“Series E Distribution Record Date”) for the payment of any Series E Distributions shall be the fifth Business Day immediately preceding the applicable Series E Distribution Payment Date, except that in the case of payments of
Series E Distributions in arrears, the Series E Distribution Record Date with respect to a Series E Distribution Payment Date shall be such date as may be designated by the General Partner in accordance with this Article XVI. No distribution shall
be declared or paid or set apart for payment on any Junior Securities (other than a distribution payable solely in Junior Securities) unless full cumulative Series A Distributions, Series B Distributions and Series E Distributions have been or
contemporaneously are being paid or provided for on all Outstanding Series A Preferred Units, Series B Preferred Units, Series E Preferred Units and any other Parity Securities through the most recent respective Series A Distribution
Payment Dates, Series B Distribution Payments Dates and Series E Distribution Payment Dates. Accumulated Series A Distributions, accumulated Series B Distributions or accumulated Series E Distributions in arrears for any past Series A
Distribution Period, Series B Distribution Period or Series E Distribution Period, as applicable, may be declared by the General Partner and paid on any date fixed by the General Partner, whether or not a Series A Distribution Payment Date,
Series B Distribution Payment Date or a Series E Distribution Payment Date, to Series A Holders, Series B Holders or Series E Holders, as applicable, on the record date for such payment, which may not be more than 60 days, nor less than 15
days, before such payment date. Subject to the next succeeding sentence, if all accumulated Series A Distributions, Series B Distributions and Series E Distributions in arrears on all Outstanding Series A Preferred Units, Series B Preferred
Units, Series E Preferred Units and any other Parity Securities shall not have been declared and paid, or if sufficient funds for the payment thereof shall not have been set apart, payment of accumulated distributions in arrears on the Series A
Preferred Units, Series B Preferred Units, Series E Preferred Units and any such Parity Securities shall be made in order of their respective distribution payment dates, commencing with the earliest. If less than all distributions payable with
respect to all Series A Preferred Units, Series B Preferred Units, Series E Preferred Units and any other Parity Securities are paid, any partial payment shall be made pro rata with respect to the Series A Preferred Units, Series B
Preferred Units, Series E Preferred Units and any such other Parity Securities entitled to a distribution payment at such time in proportion to the aggregate distribution amounts remaining due in respect of such Series A Preferred Units, Series
B Preferred Units, Series E Preferred Units and such other Parity Securities at such time. Subject 

  
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to Sections 12.4 and 16.6, none of the Series A Holders, Series B Holders or Series E Holders shall be entitled to any distribution, whether payable in cash, property or stock, in excess of
full cumulative Series A Distributions, Series B Distributions or Series E Distributions, as applicable. Except insofar as distributions accrue on the amount of any accumulated and unpaid Series A Distributions, Series B Distributions or Series E
Distributions, as applicable, as described in Section 16.3(a), no interest or sum of money in lieu of interest shall be payable in respect of any distribution payment which may be in arrears on the Series A Preferred Units, the Series B
Preferred Units or the Series E Preferred Units. So long as the Series A Preferred Units, Series B Preferred Units or Series E Preferred Units, as applicable, are held of record by the nominee of the Depository, declared Series A Distributions,
Series B Distributions or Series E Distributions shall be paid to the Depository in same-day funds on each Series A Distribution Payment Date, Series B Distribution Payment Date or Series E Distribution
Payment Date, as applicable. 
  

	Section 16.4	Liquidation Rights. 

 (a)    Upon the occurrence of any Liquidation
Event, Series A Holders, Series B Holders and Series E Holders shall be entitled to receive out of the assets of the Partnership or proceeds thereof legally available for distribution to the Partners, (i) after satisfaction of all
liabilities, if any, to creditors of the Partnership, (ii) after all applicable distributions of such assets or proceeds being made to or set aside for the holders of any Senior Securities then Outstanding in respect of such Liquidation Event,
(iii) concurrently with any applicable distributions of such assets or proceeds being made to or set aside for holders of any Series A Preferred Units, Series B Preferred Units, Series E Preferred Units or other Parity Securities then
Outstanding in respect of such Liquidation Event and (iv) before any distribution of such assets or proceeds is made to or set aside for the holders of Common Units and any other classes or series of Junior Securities as to such distribution, a
liquidating distribution or payment in full redemption of such Series A Preferred Units, Series B Preferred Units or Series E Preferred Units in an amount equal to the Series A Liquidation Preference, the Series B Liquidation Preference or
the Series E Liquidation Preference, as applicable. For purposes of clarity, upon the occurrence of any Liquidation Event, (x) the holders of then Outstanding Senior Securities shall be entitled to receive the applicable Liquidation Preference
on such Senior Securities before any distribution shall be made with respect to the Series A Preferred Units, the Series B Preferred Units, the Series E Preferred Units or any Parity Securities and (y) the Series A Holders shall be
entitled to the Series A Liquidation Preference per Series A Preferred Unit in cash, the Series B Holders shall be entitled to the Series B Liquidation Preference per Series B Preferred Unit in cash and the Series E Holders shall be
entitled to the Series E Liquidation Preference per Series E Preferred Unit in cash, in each case concurrently with any distribution made to the holders of any Parity Securities and before any distribution shall be made to the holders of Common
Units or any other Junior Securities. Series A Holders, Series B Holders and Series E Holders shall not be entitled to any other amounts from the Partnership, in their capacities as Series A Holders, Series B Holders or Series E Holders,
as applicable, after they have received the Series A Liquidation Preference, the Series B Liquidation Preference or the Series E Liquidation Preference, as applicable. The payment of the Series A Liquidation Preference, Series B
Liquidation Preference or Series E Liquidation Preference shall be a payment in redemption of the Series A Preferred Units, the Series B Preferred Units or the Series E Preferred Units, as applicable, such that, from and after payment of the
full Series A Liquidation Preference, Series B Liquidation Preference or Series E Liquidation Preference, any such Series A Preferred Unit, Series B Preferred Unit or Series E Preferred Unit, as applicable, shall thereafter be cancelled
and no longer be Outstanding. 

  
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 (b)    If, in the event of any distribution or payment described in
Section 16.4(a) above where the Partnership’s assets available for distribution to holders of the Outstanding Series A Preferred Units, Series B Preferred Units, Series E Preferred Units and any other Parity Securities are
insufficient to satisfy the applicable Liquidation Preference for such Series A Preferred Units, Series B Preferred Units, Series E Preferred Units and Parity Securities, the Partnership’s then remaining assets or proceeds thereof legally
available for distribution to unitholders of the Partnership shall be distributed among the holders of Outstanding Series A Preferred Units, Series B Preferred Units, Series E Preferred Units and such Parity Securities, as applicable, ratably
on the basis of their relative aggregate Liquidation Preferences. To the extent that the Series A Holders, Series B Holders or Series E Holders receive a partial payment of their Series A Liquidation Preference, Series B Liquidation
Preference or Series E Liquidation Preference, as applicable, such partial payment shall reduce the Series A Liquidation Preference of their Series A Preferred Units, the Series B Liquidation Preference of their Series B
Preferred Units, or the Series E Liquidation Preference of their Series E Preferred Units, as applicable, but only to the extent of such amount paid. 

(c)    After payment of the applicable Liquidation Preference to the holders of the Outstanding Series A Preferred
Units, Series B Preferred Units, Series E Preferred Units and any other Parity Securities, the Partnership’s remaining assets and funds shall be distributed among the holders of the Common Units and any other Junior Securities then Outstanding
according to their respective rights and preferences. 
  

	Section 16.5	Voting Rights. 

 (a)    Notwithstanding anything to the contrary in
this Agreement, none of the Series A Preferred Units, the Series B Preferred Units or the Series E Preferred Units shall have any voting rights except as set forth in Section 13.3(d), this Section 16.5 or as otherwise provided by the
Marshall Islands Act. 
 (b)    In the event that six quarterly Series A Distributions, whether consecutive or not, are
in arrears, the Series A Holders shall have the right, voting as a class together with holders of any other Parity Securities upon which like voting rights have been conferred and are exercisable, at a meeting of the General Partner called for
such purpose within 30 days after receipt by the General Partner of a request by Series A Holders holding a majority of the Outstanding Series A Preferred Units, to elect one member of the Board of Directors of the General Partner, and the
size of the Board of Directors of the General Partner shall be increased as needed to accommodate such change; provided, however, that such right of the Series A Holders shall not apply to the election of another director if (i) Series A
Holders and holders of Parity Securities upon which like voting rights have been conferred, voting as a class, have previously elected a member of the Board of Directors of the General Partner and (ii) such director continues then to serve on
the Board of Directors. Such right of such Series A Holders to elect a member of the Board of Directors of the General Partner shall continue until the Partnership pays in full, or declares and sets aside funds for the payment of, all Series A
Distributions accumulated and in arrears on the Series A Preferred Units, at which time such 

  
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right shall terminate, subject to the revesting of such right in the event of each and every subsequent failure to pay six quarterly Series A Distributions as described above in this
Section 16.5(b). In the event that six quarterly Series B Distributions, whether consecutive or not, are in arrears, the Series B Holders shall have the right, voting as a class together with holders of any other Parity Securities upon which
like voting rights have been conferred and are exercisable, at a meeting of the General Partner called for such purpose within 30 days after receipt by the General Partner of a request by Series B Holders holding a majority of the Outstanding Series
B Preferred Units, to elect one member of the Board of Directors of the General Partner, and the size of the Board of Directors of the General Partner shall be increased as needed to accommodate such change; provided, however, that such right of the
Series B Holders shall not apply to the election of another director if (i) Series B Holders and holders of Parity Securities upon which like voting rights have been conferred, voting as a class, have previously elected a member of the Board of
Directors of the General Partner and (ii) such director continues then to serve on the Board of Directors. Such right of such Series B Holders to elect a member of the Board of Directors of the General Partner shall continue until the
Partnership pays in full, or declares and sets aside funds for the payment of, all Series B Distributions accumulated and in arrears on the Series B Preferred Units, at which time such right shall terminate, subject to the revesting of such right in
the event of each and every subsequent failure to pay six quarterly Series B Distributions as described above in this Section 16.5(b). In the event that six quarterly Series E Distributions, whether consecutive or not, are in arrears, the
Series E Holders shall have the right, voting as a class together with holders of any other Parity Securities upon which like voting rights have been conferred and are exercisable, at a meeting of the General Partner called for such purpose within
30 days after receipt by the General Partner of a request by Series E Holders holding a majority of the Outstanding Series E Preferred Units, to elect one member of the Board of Directors of the General Partner, and the size of the Board of
Directors of the General Partner shall be increased as needed to accommodate such change; provided, however, that such right of the Series E Holders shall not apply to the election of another director if (i) Series E Holders and holders of
Parity Securities upon which like voting rights have been conferred, voting as a class, have previously elected a member of the Board of Directors of the General Partner and (ii) such director continues then to serve on the Board of Directors.
Such right of such Series E Holders to elect a member of the Board of Directors of the General Partner shall continue until the Partnership pays in full, or declares and sets aside funds for the payment of, all Series E Distributions accumulated and
in arrears on the Series E Preferred Units, at which time such right shall terminate, subject to the revesting of such right in the event of each and every subsequent failure to pay six quarterly Series E Distributions as described above in this
Section 16.5(b). Upon any termination of the right of the Series A Holders, the Series B Holders, the Series E Holders and, if applicable, holders of any other Parity Securities to vote as a class for such director, the term of office of
the director then in office elected by such Series A Holders, Series B Holders, Series E Holders and holders of any other Parity Securities voting as a class shall terminate immediately. Any director elected by the Series A Holders, the
Series B Holders, the Series E Holders and, if applicable, holders of any other Parity Securities shall be entitled to one vote on any matter before the Board of Directors of the General Partner. 

  
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 (c)     

(i)    Unless the General Partner shall have received the affirmative vote or consent of the holders of at least 66 2/3%
of the Outstanding Series A Preferred Units, voting as a separate class, the General Partner shall not adopt any amendment to this Agreement that would have a material adverse effect on the existing terms of the Series A Preferred Units.
Unless the General Partner shall have received the affirmative vote or consent of the holders of at least 66 2/3% of the Outstanding Series B Preferred Units, voting as a separate class, the General Partner shall not adopt any amendment to this
Agreement that would have a material adverse effect on the existing terms of the Series B Preferred Units. Unless the General Partner shall have received the affirmative vote or consent of the holders of at least 66 2/3% of the Outstanding
Series E Preferred Units, voting as a separate class, the General Partner shall not adopt any amendment to this Agreement that would have a material adverse effect on the existing terms of the Series E Preferred Units. 

(ii)    Unless the General Partner shall have received the affirmative vote or consent of the holders of at least 66 2/3%
of the Outstanding Series A Preferred Units, Series B Preferred Units and Series E Preferred Units, voting as a class together with holders of any other Parity Securities upon which like voting rights have been conferred and are
exercisable, the Partnership shall not (x) issue any Parity Securities if the cumulative distributions payable on Outstanding Series A Preferred Units, Series B Preferred Units or Series E Preferred Units are in arrears or (y) create
or issue any Senior Securities. 
 (d)    For any matter described in this Section 16.5 in which the Series A
Holders, Series B Holders or Series E Holders are entitled to vote as a class (whether separately or together with the holders of any Parity Securities), such Series A Holders, Series B Holders or Series E Holders shall be entitled to one vote
per Series A Preferred Unit, Series B Preferred Unit or Series E Preferred Unit, as applicable. Any Series A Preferred Units, Series B Preferred Units or Series E Preferred Units held by the Partnership or any of its subsidiaries or
Affiliates shall not be entitled to vote. 
  

	Section 16.6	Optional Redemption. 

 The Partnership shall have the right at any time, and from time to
time, on or after April 30, 2018 to redeem the Series A Preferred Units, in whole or in part, from any source of funds legally available for such purpose. Any such redemption shall occur on a date set by the General Partner (the
“Series A Redemption Date”). The Partnership shall have the right at any time, and from time to time, on or after April 20, 2020 to redeem the Series B Preferred Units, in whole or in part, from any source of
funds legally available for such purpose. Any such redemption shall occur on a date set by the General Partner (the “Series B Redemption Date”). The Partnership shall have the right at any time, and from time to time, on or after
February 15, 2025 to redeem the Series E Preferred Units, in whole or in part, from any source of funds legally available for such purpose. Any such redemption shall occur on a date set by the General Partner (the “Series E Redemption
Date”). 
 (a)    The Partnership shall effect any such redemption by paying cash for each Series A
Preferred Unit, Series B Preferred Unit or Series E Preferred Unit, as applicable, to be redeemed equal to (i) the Series A Liquidation Preference for such Series A Preferred Unit on such Series A Redemption Date (the
“Series A Redemption Price”), (ii) the Series B Liquidation 

  
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Preference for such Series B Preferred Unit on such Series B Redemption Date (the “Series B Redemption Price”), or (iii) the Series E Liquidation Preference for such Series
E Preferred Unit on such Series E Redemption Date (the “Series E Redemption Price”). So long as the Series A Preferred Units, Series B Preferred Units or Series E Preferred Units to be redeemed are held of record by the nominee
of the Depository, the Series A Redemption Price, Series B Redemption Price or Series E Redemption Price, as applicable, shall be paid by the Paying Agent to the Depository on the Series A Redemption Date, the Series B Redemption Date or
the Series E Redemption Price, as applicable. 
 (b)    The Partnership shall give notice of any redemption by mail,
postage prepaid, not less than 30 days and not more than 60 days before the scheduled Series A Redemption Date, Series B Redemption Date or Series E Redemption Date, to the Series A Holders, Series B Holders or Series E Holders, as
applicable (as of 5:00 p.m. New York City time on the Business Day next preceding the day on which notice is given) of any Series A Preferred Units, Series B Preferred Units or Series E Preferred Units to be redeemed as such Series A
Holders’, Series B Holders’ or Series E Holders’ names appear on the books of the Transfer Agent and at the address of such Series A Holders, Series B Holders or Series E Holders shown therein. Such notice (the
“Series A Redemption Notice,” the “Series B Redemption Notice” or the “Series E Redemption Notice”, as applicable) shall state, as applicable: (1) the Series A
Redemption Date, Series B Redemption Date or Series E Redemption Date, (2) the number of Series A Preferred Units, Series B Preferred Units or Series E Preferred Units to be redeemed and, if less than all Outstanding Series A
Preferred Units, Series B Preferred Units or Series E Preferred Units are to be redeemed, the number (and the identification) of Units to be redeemed from such Series A Holder, Series B Holder or Series E Holder, (3) the Series A
Redemption Price, Series B Redemption Price or Series E Redemption Price, as applicable, (4) the place where the Series A Preferred Units, Series B Preferred Units or Series E Preferred Units are to be redeemed and shall be presented and
surrendered for payment of the Series A Redemption Price, Series B Redemption Price or Series E Redemption Price therefor and (5) that distributions on the Units to be redeemed shall cease to accumulate from and after such Series A
Redemption Date, Series B Redemption Date or Series E Redemption Date, as applicable. 
 (c)    If the Partnership
elects to redeem less than all of the Outstanding Series A Preferred Units, Series B Preferred Units or Series E Preferred Units, as applicable, the number of Series A Preferred Units, Series B Preferred Units or Series E Preferred Units
to be redeemed shall be determined by the General Partner, and such Series A Preferred Units, Series B Preferred Units or Series E Preferred Units, as applicable, shall be redeemed by such method of selection as the Depository shall determine
either Pro Rata or by lot, with adjustments to avoid redemption of fractional Series A Preferred Units, Series B Preferred Units or Series E Preferred Units. The aggregate Series A Redemption Price, Series B Redemption Price or Series E
Redemption Price for any such partial redemption of the Outstanding Series A Preferred Units, Series B Preferred Units or Series E Preferred Units shall be allocated correspondingly among the redeemed Series A Preferred Units, Series B
Preferred Units or Series E Preferred Units, as applicable. The Series A Preferred Units, Series B Preferred Units or Series E Preferred Units not redeemed shall remain Outstanding and entitled to all the rights and preferences provided in this
Article XVI. 

  
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 (d)    If the Partnership gives or causes to be given a Series A
Redemption Notice, Series B Redemption Notice or Series E Redemption Notice, the Partnership shall deposit with the Paying Agent funds, sufficient to redeem the Series A Preferred Units, Series B Preferred Units or Series E Preferred Units, as
applicable, as to which such Series A Redemption Notice, Series B Redemption Notice or Series E Redemption Notice shall have been given, no later than 5:00 p.m. New York City time on the Business Day immediately preceding the Series A
Redemption Date, Series B Redemption Date or Series E Redemption Date, and shall give the Paying Agent irrevocable instructions and authority to pay the Series A Redemption Price to the Series A Holders, the Series B Redemption Price to
the Series B Holders and the Series E Redemption Price to the Series E Holders to be redeemed upon surrender or deemed surrender (which shall occur automatically if the Certificate representing such Series A Preferred Units, Series B Preferred
Units or Series E Preferred Units, as applicable, is issued in the name of the Depository or its nominee) of the Certificates therefor as set forth in the Series A Redemption Notice, Series B Redemption Notice or Series E Redemption Notice. If
the Series A Redemption Notice, Series B Redemption Notice or Series E Redemption Notice, as applicable, shall have been given, from and after the Series A Redemption Date, Series B Redemption Date or Series E Redemption Date, as
applicable, unless the Partnership defaults in providing funds sufficient for such redemption at the time and place specified for payment pursuant to the Series A Redemption Notice, Series B Redemption Notice or Series E Redemption Notice, all
Series A Distributions on such Series A Preferred Units to be redeemed, Series B Distributions on such Series B Preferred Units to be redeemed and/or Series E Distributions on such Series E Preferred Units to be redeemed, as applicable, shall
cease to accumulate and all rights of holders of such Series A Preferred Units, Series B Preferred Units or Series E Preferred Units as Limited Partners with respect to such Series A Preferred Units, Series B Preferred Units or Series E
Preferred Units to be redeemed shall cease, except the right to receive the Series A Redemption Price, Series B Redemption Price or Series E Redemption Price, as applicable, and such Series A Preferred Units, Series B Preferred Units or
Series E Preferred Units shall not thereafter be transferred on the books of the Transfer Agent or be deemed to be Outstanding for any purpose whatsoever. The Partnership shall be entitled to receive from the Paying Agent the interest income, if
any, earned on such funds deposited with the Paying Agent (to the extent that such interest income is not required to pay the Series A Redemption Price of the Series A Preferred Units, the Series B Redemption Price of the Series B
Preferred Units or the Series E Redemption Price of the Series E Preferred Units, as applicable, to be redeemed), and the holders of any Series A Preferred Units, Series B Preferred Units or Series E Preferred Units so redeemed shall have
no claim to any such interest income. Any funds deposited with the Paying Agent hereunder by the Partnership for any reason, including redemption of Series A Preferred Units, Series B Preferred Units or Series E Preferred Units, that remain
unclaimed or unpaid after two years after the applicable Series A Redemption Date, Series B Redemption Date or Series E Redemption Date or other payment date, as applicable, shall be, to the extent permitted by law, repaid to the Partnership
upon its written request, after which repayment the Series A Holders, Series B Holders or Series E Holders entitled to such redemption or other payment shall have recourse only to the Partnership. Notwithstanding any Series A Redemption
Notice, Series B Redemption Notice or Series E Redemption Notice, there shall be no redemption of any Series A Preferred Units, Series B Preferred Units or Series E Preferred Units, as applicable, called for redemption until funds sufficient to
pay the full Series A Redemption Price of such Series A Preferred Units, the full Series B Redemption Price of such Series B Preferred Units or the full Series E Redemption Price of such Series E Preferred Units, as applicable, shall have
been deposited by the Partnership with the Paying Agent. 

  
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 (e)    Any Series A Preferred Units, Series B Preferred Units or Series
E Preferred Units that are redeemed or otherwise acquired by the Partnership shall be canceled. If only a portion of the Series A Preferred Units, Series B Preferred Units or Series E Preferred Units represented by a Certificate shall have been
called for redemption, upon surrender of the Certificate to the Paying Agent (which shall occur automatically if the Certificate representing such Series A Preferred Units, Series B Preferred Units or Series E Preferred Units is registered in
the name of the Depository or its nominee), the Paying Agent shall issue to the Series A Holders, Series B Holders or Series E Holders, as applicable, a new Certificate (or adjust the applicable book-entry account) representing the number of
Series A Preferred Units, Series B Preferred Units or Series E Preferred Units represented by the surrendered Certificate that have not been called for redemption. 

(f)    Notwithstanding anything to the contrary in this Article XVI, in the event that full cumulative distributions on
the Series A Preferred Units, Series B Preferred Units, Series E Preferred Units and any other Parity Securities shall not have been paid or declared and set apart for payment, none of the Partnership, the General Partner or any Affiliate of
the General Partner shall be permitted to repurchase, redeem or otherwise acquire, in whole or in part, any Series A Preferred Units, Series B Preferred Units, Series E Preferred Units or other Parity Securities except pursuant to a purchase or
exchange offer made on the same terms to all Series A Holders, Series B Holders, Series E Holders and holders of any other Parity Securities. None of the Partnership, the General Partner or any Affiliate of the General Partner shall be
permitted to redeem, repurchase or otherwise acquire any Common Units or any other Junior Securities unless full cumulative distributions on the Series A Preferred Units, Series B Preferred Units, Series E Preferred Units and any other Parity
Securities for all prior and the then-ending Series A Distribution Periods, Series B Distribution Periods and Series E Distribution Periods shall have been paid or declared and set apart for payment. 

 

	Section 16.7	Rank. 

 The Series A Preferred Units, Series B Preferred Units and Series E
Preferred Units shall each be deemed to rank: 
 (a)    Senior to (i) the Common Units and (ii) any other
class or series of Partnership Securities established after the Series A Original Issue Date by the General Partner, the terms of which class or series do not expressly provide that it is made senior to or on parity with the Series A
Preferred Units, Series B Preferred Units or Series E Preferred Units as to distributions and distributions upon any Liquidation Event (collectively referred to with the Partnership’s Common Units as “Junior Securities”); 

(b)    On a parity with each other and with any other class or series of Partnership Securities established after the
Series A Original Issue Date by the General Partner, the terms of which class or series are not expressly subordinated or senior to the Series A Preferred Units, Series B Preferred Units or Series E Preferred Units as to distributions and
distributions upon any Liquidation Event (collectively referred to as “Parity Securities”); and 

  
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 (c)    Junior to any class or series of Partnership Securities established
after the Series A Original Issue Date by the General Partner, the terms of which class or series expressly provide that it ranks senior to the Series A Preferred Units, Series B Preferred Units and Series E Preferred Units as to
distributions and distributions upon any Liquidation Event (collectively referred to as “Senior Securities”). 
 The
Partnership may issue Junior Securities and, subject to any approvals required by Series A Holders, Series B Holders and Series E Holders pursuant to Section 16.5(c)(ii), Parity Securities from time to time in one or more classes or series
without the consent of the Series A Holders, Series B Holders or Series E Holders, as applicable. The General Partner has the authority to determine the preferences, powers, qualifications, limitations, restrictions and special or relative
rights or privileges, if any, of any such class or series before the issuance of any Partnership Securities of such class or series. 
  

	Section 16.8	No Sinking Fund. 

 None of the Series A Preferred Units, the Series B Preferred
Units or the Series E Preferred Units shall have the benefit of any sinking fund. 
  

	Section 16.9	Record Holders. 

 To the fullest extent permitted by applicable law, the General Partner,
Partnership, the Registrar, the Transfer Agent and the Paying Agent may deem and treat any Series A Holder, Series B Holder and Series E Holder as the true, lawful and absolute owner of the applicable Series A Preferred Units, Series B
Preferred Units or Series E Preferred Units for all purposes, and neither the General Partner, the Partnership nor the Registrar, the Transfer Agent or the Paying Agent shall be affected by any notice to the contrary. 

 

	Section 16.10	Notices. 

 All notices or communications in respect of the Series A Preferred Units,
Series B Preferred Units or Series E Preferred Units shall be sufficiently given if given in writing and delivered in person or by first class mail, postage prepaid, or if given in such other manner as may be permitted in this Article XVI, this
Agreement or by applicable law. 
  

	Section 16.11	Other Rights; Fiduciary Duties. 

 None of the Series A Preferred Units, the Series B
Preferred Units or the Series E Preferred Units shall have any voting powers, preferences or relative, participating, optional or other special rights, or qualifications, limitations or restrictions thereof, other than as set forth in this Article
XVI or as provided by applicable law. Notwithstanding anything to the contrary in this Agreement, but subject to Section 7.9(c) and without reference to the definition of “good faith” in Section 7.9(b), neither the General
Partner nor any other Indemnitee shall owe any fiduciary duties to Series A Holders, Series B Holders or Series E Holders, other than a contractual duty of good faith and fair dealing. 

  
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 ARTICLE XVII 

GENERAL PROVISIONS 
  

	Section 17.1	Addresses and Notices. 

 Any notice, demand, request, report or proxy materials required
or permitted to be given or made to a Partner under this Agreement shall be in writing and shall be deemed given or made when delivered in person or when sent by first class United States mail or by other means of written communication to the
Partner at the address described below. Any notice, payment or report to be given or made to a Partner hereunder shall be deemed conclusively to have been given or made, and the obligation to give such notice or report or to make such payment shall
be deemed conclusively to have been fully satisfied, upon sending of such notice, payment or report to the Record Holder of such Partnership Securities at his address as shown on the records of the Transfer Agent or as otherwise shown on the records
of the Partnership, regardless of any claim of any Person who may have an interest in such Partnership Securities by reason of any assignment or otherwise. An affidavit or certificate of making of any notice, payment or report in accordance with the
provisions of this Section 17.1 executed by the General Partner, the Transfer Agent or the mailing organization shall be prima facie evidence of the giving or making of such notice, payment or report. If any notice, payment or report addressed
to a Record Holder at the address of such Record Holder appearing on the books and records of the Transfer Agent or the Partnership is returned by the United States Postal Service marked to indicate that the United States Postal Service is unable to
deliver it, such notice, payment or report and any subsequent notices, payments and reports shall be deemed to have been duly given or made without further mailing (until such time as such Record Holder or another Person notifies the Transfer Agent
or the Partnership of a change in his address) if they are available for the Partner at the principal office of the Partnership for a period of one year from the date of the giving or making of such notice, payment or report to the other Partners.
Any notice to the Partnership shall be deemed given if received by the General Partner at the principal office of the Partnership designated pursuant to Section 2.3. The General Partner may rely and shall be protected in relying on any notice
or other document from a Partner or other Person if believed by it to be genuine. 
  

	Section 17.2	Further Action. 

 The parties shall execute and deliver all documents, provide all
information and take or refrain from taking action as may be necessary or appropriate to achieve the purposes of this Agreement. 
  

	Section 17.3	Binding Effect. 

 This Agreement shall be binding upon and inure to the benefit of the
parties hereto and their respective heirs, executors, administrators, successors, legal representatives and permitted assigns. 

  
 - 83 - 

	Section 17.4	Integration. 

 This Agreement constitutes the entire agreement among the parties hereto
pertaining to the subject matter hereof and supersedes all prior agreements and understandings pertaining thereto, including the Prior Agreement. 
  

	Section 17.5	Creditors. 

 None of the provisions of this Agreement shall be for the benefit of, or
shall be enforceable by, any creditor of the Partnership. 
  

	Section 17.6	Waiver. 

 No failure by any party to insist upon the strict performance of any covenant,
duty, agreement or condition of this Agreement or to exercise any right or remedy consequent upon a breach thereof shall constitute waiver of any such breach of any other covenant, duty, agreement or condition. 

 

	Section 17.7	Counterparts. 

 This Agreement may be executed in counterparts, all of which together
shall constitute an agreement binding on all the parties hereto, notwithstanding that all such parties are not signatories to the original or the same counterpart. Each party shall become bound by this Agreement immediately upon affixing its
signature hereto or, in the case of a Person acquiring a Limited Partner Interest, pursuant to Section 10.2(a) without execution hereof. 
  

	Section 17.8	Applicable Law. 

 This Agreement shall be construed in accordance with and governed by
the laws of the Marshall Islands, without regard to the principles of conflicts of law. 
  

	Section 17.9	Invalidity of Provisions. 

 If any provision of this Agreement is or becomes invalid,
illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions contained herein shall not be affected thereby. 
  

	Section 17.10	Consent of Partners. 

 Each Partner hereby expressly consents and agrees that, whenever
in this Agreement it is specified that an action may be taken upon the affirmative vote or consent of less than all of the Partners, such action may be so taken upon the concurrence of less than all of the Partners and each Partner shall be bound by
the results of such action. 

  
 - 84 - 

	Section 17.11	Facsimile Signatures. 

 The use of facsimile signatures affixed in the name and on behalf
of the transfer agent and registrar of the Partnership on Certificates representing Common Units and Preferred Units is expressly permitted by this Agreement. 
  

	Section 17.12	Third-Party Beneficiaries. 

 Each Partner agrees that any Indemnitee shall be entitled to
assert rights and remedies hereunder as a third-party beneficiary hereto with respect to those provisions of this Agreement affording a right, benefit or privilege to such Indemnitee. 

[REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK] 

  
 - 85 - 

 IN WITNESS WHEREOF, the parties hereto have executed this Sixth Amended and Restated
Agreement of Limited Partnership as of the date first written above. 
  

			
	GENERAL PARTNER:
	
	Teekay Offshore GP L.L.C.
		
	By:	 	 /s/ Edith Robinson

	Name:	 	Edith Robinson
	Title:	 	Secretary
	
	LIMITED PARTNERS:
	
	All Limited Partners now and hereafter admitted as Limited Partners of the Partnership, pursuant to powers of attorney now and hereafter executed in favor of, and granted and delivered to the General Partner.
	
	Teekay Offshore GP L.L.C.
		
	By:	 	 /s/ Edith Robinson

	Name:	 	 Edith Robinson

	Title:	 	Secretary

 [SIGNATURE PAGE CONTINUES ON NEXT PAGE] 

  
 - 86 - 

 
			
	ACKNOWLEDGED AND AGREED FOR PURPOSES OF SECTION 16.5(b):
	
	Teekay Holdings Limited, as a member of the General Partner, to evidence its agreement to modify the governing documents of the General Partner at such time and in such manner as may be required from time to time by
Section 16.5(b)
		
	By:	 	 /s/ Edith Robinson

	Name:	 	Edith Robinson
	Title:	 	Secretary
	
	Brookfield TK TOGP L.P., as a member of the General Partner, to evidence its agreement to modify the governing documents of the General Partner at such time and in such manner as may be required from time to time by
Section 16.5(b)
	
	 By: Brookfield Capital Partners (Bermuda) Ltd., its general partner

		
	By:	 	 /s/ Anna Knapman-Scott

	Name:	 	Anna Knapman-Scott
	Title:	 	Assistant Secretary

  
 - 87 - 

 EXHIBIT A 

to the Sixth Amended and Restated 

Agreement of Limited Partnership of 

Teekay Offshore Partners L.P. 

Certificate Evidencing Common Units 

Representing Limited Partner Interests in 

Teekay Offshore Partners L.P. 
  

			
	No.             	  	         Common Units

 In accordance with Section 4.1 of the Sixth Amended and Restated Agreement of Limited Partnership of
Teekay Offshore Partners L.P., as amended, supplemented or restated from time to time (the “Partnership Agreement”), Teekay Offshore Partners L.P., a Marshall Islands limited partnership (the “Partnership”), hereby
certifies that                     (the “Holder”) is the registered owner of Common Units representing limited partner interests in
the Partnership (the “Common Units”) transferable on the books of the Partnership, in person or by duly authorized attorney, upon surrender of this Certificate properly endorsed. The rights, preferences and limitations of the Common
Units are set forth in, and this Certificate and the Common Units represented hereby are issued and shall in all respects be subject to the terms and provisions of, the Partnership Agreement. Copies of the Partnership Agreement are on file at, and
will be furnished without charge on delivery of written request to the Partnership at, the principal office of the Partnership located at 4th Floor, Belvedere Building, 69 Pitts Bay Road, Hamilton, HM 08, Bermuda. Capitalized terms used herein
but not defined shall have the meanings given them in the Partnership Agreement. 
 The Holder, by accepting this Certificate, is deemed to
have (i) requested admission as, and agreed to become, a Limited Partner and to have agreed to comply with and be bound by and to have executed the Partnership Agreement, (ii) represented and warranted that the Holder has all right, power
and authority and, if an individual, the capacity necessary to enter into the Partnership Agreement, (iii) granted the powers of attorney provided for in the Partnership Agreement and (iv) made the waivers and given the consents and
approvals contained in the Partnership Agreement. 
 This Certificate shall not be valid for any purpose unless it has been countersigned
and registered by the Transfer Agent and Registrar. 
  

											
	Dated:                     	 		 		 	Teekay Offshore Partners L.P.
					
	Countersigned and Registered by:	 		 		 	By:	 	Teekay Offshore GP L.L.C.,
		 		 		 		 		 	its General Partner
					
	  
	 		 		 	By:	 	  

	as Transfer Agent and Registrar	 		 		 		 	Title:
						
	By:	 	
                     

	 		 		 	By:	 	  

	Authorized Signature	 		 		 		 	Secretary

  
 A-1 

 [Reverse of Certificate] 

ABBREVIATIONS 
 The
following abbreviations, when used in the inscription on the face of this Certificate, shall be construed as follows according to applicable laws or regulations: 
  

							
	TEN COM	  	—	    	as tenants in common	  	UNIF GIFT/TRANSFERS MIN ACT
		  		    		  	                        Custodian
		  		    		  	        (Cust)                            
(Minor)
	TEN ENT	  	—	    	as tenants by the entireties	  	under Uniform Gifts /Transfers to CD Minors Act (State)
	JT TEN	  	—	    	as joint tenants with right of	  	
		  		    	survivorship and not as tenants in common	  	

 Additional abbreviations, though not in the above list, may also be used. 

ASSIGNMENT OF COMMON UNITS 

in 
 TEEKAY OFFSHORE
PARTNERS L.P. 
  

			
	FOR VALUE RECEIVED,                      hereby assigns, conveys, sells and transfers unto
                                         
                    
	  
	    	  

	(Please print or typewrite name	    	(Please insert Social Security or other
	and address of Assignee)	    	identifying number of Assignee)

                     
Common Units representing limited partner interests evidenced by this Certificate, subject to the Partnership Agreement, and does hereby irrevocably constitute and
appoint                     as its attorney-in-fact with full power
of substitution to transfer the same on the books of the Partnership. 
  

					
	Date:                     	 	NOTE:	 	The signature to any endorsement hereon must correspond with the name as written upon the face of this Certificate in every particular, without alteration, enlargement or change.
	THE SIGNATURE(S) MUST BE GUARANTEED BY AN ELIGIBLE GUARANTOR INSTITUTION (BANKS, STOCKBROKERS, SAVINGS AND LOAN ASSOCIATIONS AND CREDIT UNIONS WITH MEMBERSHIP IN AN APPROVED SIGNATURE GUARANTEE MEDALLION PROGRAM), PURSUANT TO
S.E.C. RULE 17Ad-15	 		 	  
  

(Signature)
  

 
 (Signature)

 No transfer of the Common Units evidenced hereby will be registered on the books of the Partnership, unless the Certificate
evidencing the Common Units to be transferred is surrendered for registration or transfer. 

  
 A-2 

 EXHIBIT B 

to the Sixth Amended and Restated 

Agreement of Limited Partnership of 

Teekay Offshore Partners L.P. 

Certificate Evidencing Series A Cumulative 

Redeemable Preferred Units 

Representing Limited Partner Interests in 

Teekay Offshore Partners L.P. 
  

			
	No.                     	  	                     Series A Preferred Units

 In accordance with Section 4.1 of the Sixth Amended and Restated Agreement of Limited Partnership of
Teekay Offshore Partners L.P., as amended, supplemented or restated from time to time (the “Partnership Agreement”), Teekay Offshore Partners L.P., a Marshall Islands limited partnership (the “Partnership”), hereby
certifies that                     (the “Holder”) is the registered owner of 7.25% Series A Cumulative Redeemable Preferred
Units representing limited partner interests in the Partnership (the “Series A Preferred Units”) transferable on the books of the Partnership, in person or by duly authorized attorney, upon surrender of this
Certificate properly endorsed. The rights, preferences and limitations of the Series A Preferred Units are set forth in, and this Certificate and the Series A Preferred Units represented hereby are issued and shall in all respects be
subject to the terms and provisions of, the Partnership Agreement. Copies of the Partnership Agreement are on file at, and will be furnished without charge on delivery of written request to the Partnership at, the principal office of the Partnership
located at 4th Floor, Belvedere Building, 69 Pitts Bay Road, Hamilton, HM 08, Bermuda. Capitalized terms used herein but not defined shall have the meanings given them in the Partnership Agreement. 

The Holder, by accepting this Certificate, is deemed to have (i) requested admission as, and agreed to become, a Limited Partner and to
have agreed to comply with and be bound by and to have executed the Partnership Agreement, (ii) represented and warranted that the Holder has all right, power and authority and, if an individual, the capacity necessary to enter into the
Partnership Agreement, (iii) granted the powers of attorney provided for in the Partnership Agreement and (iv) made the waivers and given the consents and approvals contained in the Partnership Agreement. 

This Certificate shall not be valid for any purpose unless it has been countersigned and registered by the Transfer Agent and Registrar. 

 

											
	Dated:                     	 		 		 	Teekay Offshore Partners L.P.
					
	Countersigned and Registered by:	 		 		 	By:	 	Teekay Offshore GP L.L.C.,
		 		 		 		 		 	its General Partner
					
	
                     

	 		 		 	By:	 	
                     

	as Transfer Agent and Registrar	 		 		 		 	Title:
						
	By:	 	
                     

	 		 		 	By:	 	
                     

	Authorized Signature	 		 		 		 	Secretary

  
 B-1 

 [Reverse of Certificate] 

ABBREVIATIONS 
 The
following abbreviations, when used in the inscription on the face of this Certificate, shall be construed as follows according to applicable laws or regulations: 
  

							
	TEN COM	  	—	    	as tenants in common	  	UNIF GIFT/TRANSFERS MIN ACT
		  		    		  	                        Custodian
		  		    		  	        (Cust)                            
(Minor)
	TEN ENT	  	—	    	as tenants by the entireties	  	under Uniform Gifts /Transfers to CD Minors Act (State)
	JT TEN	  	—	    	as joint tenants with right of	  	
		  		    	survivorship and not as tenants in common	  	

 Additional abbreviations, though not in the above list, may also be used. 

ASSIGNMENT OF SERIES A PREFERRED UNITS 

in 
 TEEKAY OFFSHORE
PARTNERS L.P. 
  

			
	FOR VALUE RECEIVED,                     
hereby assigns, conveys, sells and transfers unto                     
                    
                    
	  
	  	  

	(Please print or typewrite name	  	(Please insert Social Security or other
	and address of Assignee)	  	identifying number of Assignee)

                     
Series A Preferred Units representing limited partner interests evidenced by this Certificate, subject to the Partnership Agreement, and does hereby irrevocably constitute and appoint
                     as its attorney-in-fact with full power of
substitution to transfer the same on the books of the Partnership. 
  

					
	Date:                     	 	NOTE:	 	The signature to any endorsement hereon must correspond with the name as written upon the face of this Certificate in every particular, without alteration, enlargement or change.
	THE SIGNATURE(S) MUST BE GUARANTEED BY AN ELIGIBLE GUARANTOR INSTITUTION (BANKS, STOCKBROKERS, SAVINGS AND LOAN ASSOCIATIONS AND CREDIT UNIONS WITH MEMBERSHIP IN AN APPROVED SIGNATURE GUARANTEE MEDALLION PROGRAM),
PURSUANT TO S.E.C. RULE 17Ad-15	 		 	  
  

(Signature)
  

 
 (Signature)

	 	 

 No transfer of the Series A Preferred Units evidenced hereby will be registered on the books of the Partnership, unless
the Certificate evidencing the Series A Preferred Units to be transferred is surrendered for registration or transfer. 

  
 B-2 

 EXHIBIT C 

to the Sixth Amended and Restated 

Agreement of Limited Partnership of 

Teekay Offshore Partners L.P. 

Certificate Evidencing Series B Cumulative 

Redeemable Preferred Units 

Representing Limited Partner Interests in 

Teekay Offshore Partners L.P. 
  

			
	No.             	  	         Series B Preferred Units

 In accordance with Section 4.1 of the Sixth Amended and Restated Agreement of Limited Partnership of
Teekay Offshore Partners L.P., as amended, supplemented or restated from time to time (the “Partnership Agreement”), Teekay Offshore Partners L.P., a Marshall Islands limited partnership (the “Partnership”), hereby
certifies that                      (the “Holder”) is the registered owner of 8.50% Series B Cumulative Redeemable Preferred
Units representing limited partner interests in the Partnership (the “Series B Preferred Units”) transferable on the books of the Partnership, in person or by duly authorized attorney, upon surrender of this
Certificate properly endorsed. The rights, preferences and limitations of the Series B Preferred Units are set forth in, and this Certificate and the Series B Preferred Units represented hereby are issued and shall in all respects be
subject to the terms and provisions of, the Partnership Agreement. Copies of the Partnership Agreement are on file at, and will be furnished without charge on delivery of written request to the Partnership at, the principal office of the Partnership
located at 4th Floor, Belvedere Building, 69 Pitts Bay Road, Hamilton, HM 08, Bermuda. Capitalized terms used herein but not defined shall have the meanings given them in the Partnership Agreement. 

The Holder, by accepting this Certificate, is deemed to have (i) requested admission as, and agreed to become, a Limited Partner and to
have agreed to comply with and be bound by and to have executed the Partnership Agreement, (ii) represented and warranted that the Holder has all right, power and authority and, if an individual, the capacity necessary to enter into the
Partnership Agreement, (iii) granted the powers of attorney provided for in the Partnership Agreement and (iv) made the waivers and given the consents and approvals contained in the Partnership Agreement. 

This Certificate shall not be valid for any purpose unless it has been countersigned and registered by the Transfer Agent and Registrar. 

 

											
	Dated:                     	 		 		 	Teekay Offshore Partners L.P.
					
	Countersigned and Registered by:	 		 		 	By:	 	Teekay Offshore GP L.L.C.,
		 		 		 		 		 	its General Partner
					
	
                     

	 		 		 	By:	 	
                     

	as Transfer Agent and Registrar	 		 		 		 	Title:
						
	By:	 	
                     

	 		 		 	By:	 	
                     

	Authorized Signature	 		 		 		 	Secretary

  
 C-1 

 [Reverse of Certificate] 

ABBREVIATIONS 
 The
following abbreviations, when used in the inscription on the face of this Certificate, shall be construed as follows according to applicable laws or regulations: 
  

							
	TEN COM	  	—	    	as tenants in common	  	UNIF GIFT/TRANSFERS MIN ACT
	 	  	 	    	 	  	                        Custodian
	 	  	 	    	 	  	        (Cust)                            
(Minor)
	TEN ENT	  	—	    	as tenants by the entireties	  	under Uniform Gifts /Transfers to CD Minors Act (State)
	JT TEN	  	—	    	as joint tenants with right of survivorship and not as tenants in common	  	

 Additional abbreviations, though not in the above list, may also be used. 

ASSIGNMENT OF SERIES B PREFERRED UNITS 

in 
 TEEKAY OFFSHORE
PARTNERS L.P. 
  

			
	
FOR VALUE RECEIVED,              
        hereby assigns, conveys, sells and transfers unto                     
                    
                    

	  
	  	  

	(Please print or typewrite name	  	(Please insert Social Security or other
	and address of Assignee)	  	identifying number of Assignee)

                     
Series B Preferred Units representing limited partner interests evidenced by this Certificate, subject to the Partnership Agreement, and does hereby irrevocably constitute and appoint
                     as its attorney-in-fact with full power of
substitution to transfer the same on the books of the Partnership. 
  

					
	Date:                     	 	NOTE:	 	The signature to any endorsement hereon must correspond with the name as written upon the face of this Certificate in every particular, without alteration, enlargement or change.
	THE SIGNATURE(S) MUST BE GUARANTEED BY AN ELIGIBLE GUARANTOR INSTITUTION (BANKS, STOCKBROKERS, SAVINGS AND LOAN ASSOCIATIONS AND CREDIT UNIONS WITH MEMBERSHIP IN AN APPROVED SIGNATURE GUARANTEE MEDALLION PROGRAM), PURSUANT TO
S.E.C. RULE 17Ad-15	 		 	  
  

(Signature)
  

 
 (Signature)

 No transfer of the Series B Preferred Units evidenced hereby will be registered on the books of the Partnership, unless
the Certificate evidencing the Series B Preferred Units to be transferred is surrendered for registration or transfer. 

  
 C-2 

 EXHIBIT D 

to the Sixth Amended and Restated 

Agreement of Limited Partnership of 

Teekay Offshore Partners L.P. 

Certificate Evidencing Series E Fixed-to-Floating Rate

 Cumulative Redeemable Perpetual Preferred Units 

Representing Limited Partner Interests in 

Teekay Offshore Partners L.P. 
  

			
	No.             	  	         Series E Preferred Units

 In accordance with Section 4.1 of the Sixth Amended and Restated Agreement of Limited Partnership of
Teekay Offshore Partners L.P., as amended, supplemented or restated from time to time (the “Partnership Agreement”), Teekay Offshore Partners L.P., a Marshall Islands limited partnership (the “Partnership”), hereby
certifies that                      (the “Holder”) is the registered owner of 8.875% Series E Fixed-to-Floating Rate Cumulative Redeemable Perpetual Preferred Units representing limited partner interests in the Partnership (the “Series E Preferred Units”)
transferable on the books of the Partnership, in person or by duly authorized attorney, upon surrender of this Certificate properly endorsed. The rights, preferences and limitations of the Series E Preferred Units are set forth in, and this
Certificate and the Series E Preferred Units represented hereby are issued and shall in all respects be subject to the terms and provisions of, the Partnership Agreement. Copies of the Partnership Agreement are on file at, and will be furnished
without charge on delivery of written request to the Partnership at, the principal office of the Partnership located at 4th Floor, Belvedere Building, 69 Pitts Bay Road, Hamilton, HM 08, Bermuda. Capitalized terms used herein but not defined
shall have the meanings given them in the Partnership Agreement. 
 The Holder, by accepting this Certificate, is deemed to have
(i) requested admission as, and agreed to become, a Limited Partner and to have agreed to comply with and be bound by and to have executed the Partnership Agreement, (ii) represented and warranted that the Holder has all right, power and
authority and, if an individual, the capacity necessary to enter into the Partnership Agreement, (iii) granted the powers of attorney provided for in the Partnership Agreement and (iv) made the waivers and given the consents and approvals
contained in the Partnership Agreement. 
 This Certificate shall not be valid for any purpose unless it has been countersigned and
registered by the Transfer Agent and Registrar. 
  

											
	Dated:                     	 		 		 	Teekay Offshore Partners L.P.
					
	Countersigned and Registered by:	 		 		 	By:	 	Teekay Offshore GP L.L.C.,
		 		 		 		 		 	its General Partner
					
	
                     

	 		 		 	By:	 	
                     

	as Transfer Agent and Registrar	 		 		 		 	Title:
						
	By:	 	
                     

	 		 		 	By:	 	
                     

	Authorized Signature	 		 		 		 	Secretary

  
 D-1 

 [Reverse of Certificate] 

ABBREVIATIONS 
 The
following abbreviations, when used in the inscription on the face of this Certificate, shall be construed as follows according to applicable laws or regulations: 
  

							
	TEN COM	  	—	  	as tenants in common	  	UNIF GIFT/TRANSFERS MIN ACT
	 	  	 	  	 	  	                        Custodian
	 	  	 	  	 	  	        (Cust)                            
(Minor)
	TEN ENT	  	—	  	as tenants by the entireties	  	under Uniform Gifts /Transfers to CD Minors Act (State)
	JT TEN	  	—	  	as joint tenants with right of survivorship and not as tenants in common	  	

 Additional abbreviations, though not in the above list, may also be used. 

ASSIGNMENT OF SERIES E PREFERRED UNITS 

in 
 TEEKAY OFFSHORE
PARTNERS L.P. 
  

			
	FOR VALUE RECEIVED,
                     hereby assigns, conveys, sells and transfers unto
	  
	  	  

	(Please print or typewrite name	  	(Please insert Social Security or other
	and address of Assignee)	  	identifying number of Assignee)

                     
Series E Preferred Units representing limited partner interests evidenced by this Certificate, subject to the Partnership Agreement, and does hereby irrevocably constitute and appoint
                     as its attorney-in-fact with full power of
substitution to transfer the same on the books of the Partnership. 
  

					
	Date:                    	 	NOTE:	 	The signature to any endorsement hereon must correspond with the name as written upon the face of this Certificate in every particular, without alteration, enlargement or change.
	THE SIGNATURE(S) MUST BE GUARANTEED BY AN ELIGIBLE GUARANTOR INSTITUTION (BANKS, STOCKBROKERS, SAVINGS AND LOAN ASSOCIATIONS AND CREDIT UNIONS WITH MEMBERSHIP IN AN APPROVED SIGNATURE GUARANTEE MEDALLION PROGRAM), PURSUANT TO
S.E.C. RULE 17Ad-15	 		 	  
 (Signature)

 
 (Signature)

 No transfer of the Series E Preferred Units evidenced hereby will be registered on the books of the Partnership, unless
the Certificate evidencing the Series E Preferred Units to be transferred is surrendered for registration or transfer. 

  
 D-2

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