Document:

Exhibit

EXHIBIT 10.1

SPECIFIC TERMS IN THIS EXHIBIT HAVE BEEN REDACTED BECAUSE CONFIDENTIAL TREATMENT FOR THOSE TERMS HAS BEEN REQUESTED. THE REDACTED MATERIAL HAS BEEN SEPARATELY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION, AND THE TERMS HAVE BEEN MARKED AT THE APPROPRIATE PLACE WITH ASTERISKS (***).

DBM #21175

GAS GATHERING AGREEMENT
DATED EFFECTIVE JANUARY 1, 2018
BY AND BETWEEN
DELAWARE BASIN MIDSTREAM, LLC 
AND
ANADARKO E&P ONSHORE LLC 

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DBM #21175
Execution Copy

GAS GATHERING AGREEMENT
This GAS GATHERING AGREEMENT (the “Agreement”) is entered into on October 8, 2018, and effective as of January 1, 2018 (“Effective Date”), by and between Delaware Basin Midstream, LLC (“DBM”), and Anadarko E&P Onshore LLC (“AEP”). AEP and DBM may be referred to in this Agreement individually as a “Party” and collectively as the “Parties.”
RECITALS:
WHEREAS, the Parties desire to enter this Agreement to replace Previous Agreements (as defined below) between the Parties or their respective Affiliates; where such Previous Agreements will be terminated contemporaneous with the Effective Date of this Agreement; and 
WHEREAS, DBM owns and operates a gas gathering system located in Loving, Winkler, Ward, Reeves, and Culberson Counties, Texas (the “System”); and
WHEREAS, AEP owns or controls Gas at certain Points of Receipt (as defined below and identified on Exhibit “A” attached hereto and made apart hereof); and
WHEREAS, after the Effective Date of this Agreement, AEP desires to deliver to DBM and DBM desires to receive from AEP certain quantities of Gas from the Point(s) of Receipt and have such gas delivered for AEP’s account to the Point(s) of Delivery identified on Exhibit “B” attached hereto and made a part hereof; and
NOW, THEREFORE, in consideration of the premises and of the mutual covenants and agreements contained herein, AEP and DBM do hereby agree as follows:
ARTICLE I 
DEFINITIONS
Section 1.1    Definitions. The following terms, when used in this Agreement, shall have the following meanings:
(a)    “Actualized Data” has the meaning set forth in Section 6.3.
(b)    “Acquiring Producer” has the meaning set forth in Section 2.12.
(c)    “AEP” means Anadarko E&P Onshore LLC.
(d)    “AEP Indemnitees” or “AEP’s Indemnitees” has the meaning set forth in Section 12.2.
(e)    “AEP Production Forecast” has a meaning set forth in Section 2.10.
(f)    “AEP’s Transporter” means any person who receives AEP’s Gas downstream of the System. 
(g)    “Affiliate” of a Party means any person or entity that, directly or indirectly, through one or more intermediaries, controls or is controlled by or is under common control with that Party. For 

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purposes of this definition, “control” means ownership of fifty percent (50%) or greater of the voting interest (stock or otherwise) of such entity. 
(h)    “Annual Rate Redetermination” has the meaning set forth in Section 6.3.
(i)    “Availability Factor” has the meaning set forth in Section 4.3.
(j)    “British Thermal Unit” or “Btu” means the amount of heat required to raise the temperature of one pound of water one degree (1) from fifty-nine degrees (59°) to sixty degrees (60°) Fahrenheit.
(k)    “Btu Content” means the number of MMBtu’s contained in the quantity of Gas delivered hereunder and shall be determined by multiplying the volume of Gas, measured in Mcf, by its corresponding Heating Value (MMBtu/cf). 
(l)    “CO2 Treating Fee” has the meaning set forth in Section 6.1(b).
(m)    “Confirmed Nominations” has the meaning set forth on Exhibit “C”.
(n)    “Compression Fee” has the meaning set forth in Section 6.1(c).
(o)    “Consequential Damages” has the meaning set forth in Section 12.3.
(p)    “Conveyance” as the meaning set forth in Section 15.1(f).
(q)    “Conveyed Interests” has the meaning set forth in Section 2.12.
(r)    “cubic foot of gas” or “cubic feet of gas” means the volume of Gas contained in one (l) cubic foot of space at a pressure of fourteen and sixty-five one hundredths pounds per square inch absolute (14.65 psia) and at a temperature of sixty degrees (60°) Fahrenheit. 
(s)    “Current Fees” means with respect to a Day the following fees in effect as of that given Day:  Lean Gathering Fee, HP Rich Gathering Fee, CO2 Treating Fee, H2S Disposal Fee, and Compression Fee.
(t)    “Daily Nominated Quantity” has the meaning set forth on Exhibit “C”.
(u)    “Day” means a period of twenty-four (24) consecutive hours commencing at 9:00 a.m. Central Time on one calendar day and ending at 9:00 a.m. Central Time on the following day. The reference date for any Day shall be the date at the beginning of such Day.
(v)    “DBM” means Delaware Basin Midstream, LLC as operator of the System.
(w)    “DBM Indemnitees” or “DBM’s Indemnitees” has the meaning set forth in Section 12.1.
(x)     “Dedicated Lands” means the lands covered by the leases and other Interests described on Exhibit “E”.

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(y)    “Dedication Service” means the second highest level of service available at DBM’s System (below Firm Service but above Interruptible Service).
(z)    “Dedicated Gas” has the meaning set forth in Section 2.1. 
(aa)     “Dedication” has the meaning described in Section 2.1.
(bb)    “Due Date” has the meaning set forth in Section 8.1.
(cc)    “EFM” has the meaning set forth in Section 7.1.
(dd)    “Electricity Cost Recovery Passthrough” has the meaning set forth in Section 6.2.
(ee)    “Firm Service” means the highest level of service available at DBM’s System.
(ff)    “Forecast” has the meaning set forth in Section 6.3.
(gg)    “Force Majeure” has the meaning set forth in Section 11.4. 
(hh)    “Free Cash Flows” has the meaning set forth in Section 6.3.
(ii)    “Fuel and Loss” means that portion of AEP’s Gas consumed in the operation of DBM’s field equipment and pipeline assets, and any Gas used, lost or unaccounted for incident to the operation of DBM’s System, including, but not limited to, Gas released through relief valves, ruptured or leaking pipelines or equipment, blowdowns, and drips.
(jj)    “Gas”, “gas” or “Natural Gas” means all hydrocarbons, except oil, produced from the Wells, including casinghead gas, together with all liquefiable hydrocarbon components thereof and all concomitant substances produced from the Wells, including, but not limited to, nitrogen, carbon dioxide and contained helium.
(kk)    “Gas Daily Index” means the midpoint average price for the Month in which an imbalance occurs published in Platts Gas Daily Price Guide, Final Daily Price Survey, Southwest El Paso Permian. If Platts Gas Daily Price Guide is no longer published, the Parties agree to substitute comparable gas pricing indices.
(ll)    “Gathering Fee” has the meaning set forth in Section 6.1(a).
(mm)    “H2S Disposal Fee” has the meaning set forth in Section 6.1(d).
(nn)    “Heating Value” means, subject to the provisions of Section 5.1 of this Agreement, the number of British Thermal Units produced by the combustion, at constant pressure, of the amount of Gas which would occupy a volume of one (1) cubic foot at a temperature of sixty degrees (60°) Fahrenheit when saturated with water vapor and under a constant pressure of 14.65 psia, with air of the same temperature and pressure as the Gas, when the products of combustion are cooled to the initial temperature of the Gas and air and when the water formed by combustion is condensed to the liquid state.  For the purpose of making Btu calculations, Gas dehydrated to a water content not exceeding seven (7) pounds per MMcf shall be considered dry.  Gas having water content in excess of seven (7) pounds per MMcf shall be considered saturated at the delivery conditions of pressure and temperature.

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(oo)    “High Pressure Service” means gathering services at Points of Receipt designated as “High Pressure” by DBM in its reasonable discretion, as such designation may change from time to time. 
(pp)    “HP Rich Gathering Fee” has the meaning set forth in Section 6.1(a)(ii).
(qq)    “Interest” means any right, title or interest of any nature in and to lands, wells, and oil and gas leases and the unproduced Gas and Gas production from AEP operated Wells attributable thereto, whether arising from fee ownership, working interests ownership, mineral ownership, or leasehold ownership (in each case, including all production depths, zones, and formations covered thereby), together with any pooling, unitization, or communization of any of the foregoing.
(rr)    “Interruptible Service” means, with respect to DBM’s obligations under this Agreement, DBM may at any time, in its sole and absolute discretion, interrupt, curtail or suspend, in whole or in part, such obligations, without any liability on the part of DBM.
(ss)    “IRR Calculation” has the meaning set forth in Section 6.3.
(tt)    “Lean Gas” means Gas containing a total gross Heating Value less than or equal to one thousand fifty (1050) Btu.
(uu)    “Lean Gathering Fee” has the meaning set forth in Section 6.1(a)(i).
(vv)    “Low Pressure Service” means gathering services at Points of Receipt designated as “Low Pressure” by DBM in its reasonable discretion, as such designation may change from time to time.
(ww)    “LP Rich Gathering Fee” has the meaning set forth in Section 6.1(a)(ii).
(xx)    “Mcf” means one thousand (1,000) cubic feet of Gas.
(yy)    “Memorandum” has the meaning set forth in Section 2.8.
(zz)    “Midstream Affiliate of DBM” means a direct or indirect wholly-owned subsidiary of WGR Operating, LP providing midstream services (i.e., the gathering of wastewater, natural gas, or crude oil) for a well that is connected to the System and is operated by AEP.
(aaa)    *** *** ***. 
(bbb)    “MMBtu” means one million (1,000,000) British Thermal Units.
(ccc)    “Month” means the period beginning at 9:00 a.m. Central Time on the first Day of the calendar month and ending at 9:00 a.m. Central Time on the first Day of the next succeeding calendar month. 

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(ddd)    “Point(s) of Receipt” shall mean the inlet of DBM’s System and existing gas measurement facilities for each point identified on the attached Exhibit “A”, where DBM receives Gas from AEP.
(eee)    “Previous Agreements” means the Gas Gathering Agreement effective November 1, 2008, as amended, between Anadarko E&P Onshore LLC and Delaware Basin JV Gathering LLC (#8850), the Gas Gathering Agreement effective January 1, 2014, as amended, between Anadarko E&P Onshore LLC and Anadarko Gathering Company LLC (#20081), and the Gas Gathering Agreement effective November 1, 2008, as amended, between Anadarko Petroleum Corporation and Delaware Basin JV Gathering LLC (#19331).
(fff)    “Primary Term” has the meaning set forth in Section 9.1.
(ggg)    “psia” means pounds per square inch absolute. 
(hhh)    “Regardless of Fault” has the meaning set forth in Section 12.1(iii).
(iii)    “Rich Gas” means Gas containing a total gross Heating Value greater than one thousand fifty (1050) Btu. 
(jjj)    “System” means all pipeline assets and appurtenances owned and operated by DBM which make up the Delaware Basin Gas Gathering System, located in Loving, Winkler, Ward, Reeves, and Culberson Counties, Texas, including future additions or modifications to said pipeline assets and appurtenances.  The terms “pipeline assets” and “appurtenances” shall include, but not be limited to, gas pipelines, gas measurement facilities, gas compressors, dehydration units, equipment, buildings with contents, surface leases, rights-of-way and any and all related personal or real property.
(kkk)    “Thermal” or “Thermally Equivalent” means an equal number of Btus.
(lll)     “TOTS Date” means, with respect to a Well, the date which AEP reasonably expects to “turn over to sales” for such Well. 
(mmm)    “Transportation Interests” has the meaning set forth in Section 15.1(a). 
(nnn)    “Well” means any well classified as a gas well or an oil well by the governmental authority having jurisdiction.
(ooo)    “Well Notice” has the meaning set forth in Section 3.7(a).

ARTICLE II 
COMMITMENT
Section 2.1    Dedication.  AEP hereby dedicates AEP’s Interests in the Dedicated Lands and dedicates and agrees each Day to deliver to DBM at the Point(s) of Receipt for services hereunder by DBM all Gas produced or producible within the Dedicated Lands which is attributable to (a) AEP’s 

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Interests within Dedicated Lands as of the Effective Date and (b) third party non-operated Interests within the Dedicated Lands operated by AEP for which Gas is not taken in-kind, and for which AEP, in its capacity as operator of such third party Interest, from time to time has the obligation or right to market such Gas.  The dedication and delivery obligations herein respecting Gas produced from AEP’s Interests within the Dedicated Lands are referred to as the (“Dedication”).  The Gas subject to the Dedication is the (“Dedicated Gas”).  Notwithstanding anything to the contrary in this Agreement, the Dedication shall only apply to Gas produced from AEP’s operated wells. 
Section 2.2    Warranty.  AEP represents and warrants to DBM (on the Effective Date and with each delivery thereafter) that neither AEP’s Interests in the Dedicated Lands nor Gas produced or producible from the Dedicated Lands are subject to a third party dedication prior to the Effective Date (except for prior dedications on subsequently acquired interests). 
Section 2.3    Affiliate.  AEP’s Dedication and delivery obligations respecting Gas produced from Interests within the Dedicated Lands shall apply equally to all Gas owned or controlled by AEP’s Affiliates which is attributable to its Interests within the Dedicated Lands. AEP shall cause its Affiliates to dedicate and deliver such Gas to the Point(s) of Receipt and comply with Section 2.2 in accordance with this Section 2.3.  For purposes of this Agreement, references to AEP and Gas produced from Interests within the Dedicated Lands shall include AEP’s Affiliates and such Affiliates’ Gas produced from their respective Interests within the Dedicated Lands, as applicable pursuant to this Section 2.3. 
Section 2.4    Pool or Unit.  Gas produced from a pool or unit created from Interests within the Dedicated Lands shall be subject to the Dedication to the extent of AEP’s operated Interest in the pool or unit.  Notwithstanding anything to the contrary in this Agreement, this Section 2.4 shall only apply to Gas attributable to AEP’s operated Interest in the pool or unit.
Section 2.5    Upstream Use.  Gas used on the Dedicated Lands for development of the properties for drilling and production operations, or for fulfilling obligations to lessors under leases covering the Dedicated Lands, shall be excluded from Dedication, provided that such Gas is utilized upstream of the Point(s) of Receipt.  Upon written request from AEP, AEP and DBM will negotiate in good faith a separate agreement pursuant to which DBM will deliver buyback Gas to AEP. 
Section 2.6    In-Kind Royalties.  Gas taken in-kind in lieu of royalties under any oil and gas leases shall not be subject to Dedication. 
Section 2.7    Production Operations. AEP shall have the right to operate the Dedicated Lands free of any control by DBM, including but not limited to the right (but not the obligation) to drill new wells, to repair and rework old wells, to shut in wells or flare production, and to renew, surrender, release or terminate any lease in whole or in part.
Section 2.8    Covenant Running with the Land and Memorandum.  Rights and obligations respecting the Dedication constitute a covenant running with the Dedicated Lands, and as such shall be binding upon and enforceable by each Party and its successors and assigns against the other Party and its successors and assigns respecting any part of a subject interest so assigned or conveyed.  AEP shall (and shall cause its Affiliates to) cause any conveyance of part or all of an Interest in the Dedicated Lands to be made expressly subject to this Agreement. DBM and each of the AEP Entities shall promptly execute, acknowledge, deliver and record a short form memorandum of this Agreement in the form of 

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Exhibit “G” attached hereto (the “Memorandum”) in the land records of the applicable jurisdictions.  AEP represents and warrants to DBM (on the Effective Date and with each delivery of Gas) that (i) it owns, or has the right to dedicate, all Interests and Gas dedicated under this Agreement and to deliver Dedicated Gas to the Point of Receipt, free and clear of all liens, encumbrances and claims, and (ii) it has the right to convey the Transportation Interests.
Section 2.9    Indemnity.  AEP will defend, release, discharge, relinquish, indemnify, protect and hold harmless DBM’s Indemnitees from and against any and all losses, claims, liens, demands and causes of action of every kind and character (including Consequential Damages as defined below but excluding all punitive or exemplary damages) including, but not limited to, the amounts of judgments, penalties, interest, court costs, investigation expenses and costs and reasonable attorneys’ and legal fees incurred by DBM’s Indemnitees arising out of, or related to, any breach of the representation and warranty in Section 2.2.  The obligations set forth in this Section 2.9 will continue in full force and effect, notwithstanding the expiration or early termination of this Agreement, with respect to any claims based on facts or conditions that occurred prior to the expiration or termination of this Agreement.
Section 2.10    Forecast.  When requested in writing by DBM and within the first five (5) Days of each calendar year during the term of this Agreement AEP shall provide DBM a production forecast of the Gas expected to be delivered hereunder by Month for the remainder of the Primary Term (the “AEP Production Forecast”).  The AEP Production Forecast shall be AEP’s good faith estimate of future production and based on AEP’s then current engineering, planning, and budgetary data. 
Section 2.11    Other Gas.  AEP may not deliver Gas not produced from within the Dedicated Lands without the express written consent of DBM.
Section 2.12    Acreage Transfers.  *** *** *** ***. 
ARTICLE III 
QUANTITY
Section 3.1    DBM Obligation.  During the Term of this Agreement, DBM agrees to receive, gather, compress and deliver, less Fuel and Loss, AEP’s share of all Gas made available at the Point(s) of Receipt hereunder, subject to the nomination and confirmation procedures set forth in Section 3.2 hereof.
Section 3.2    Nomination.  If AEP desires gathering service in any Month, AEP shall furnish DBM a written nomination in accordance with the procedures described in Exhibit “C” attached hereto and made a part hereof.  However, DBM reserves the right, at any time with at least thirty (30) days prior written notice to AEP, to modify or change the nomination, confirmation, allocation, and/or imbalance procedures contained in Exhibit “C” and this Gas Gathering Agreement, or establish new procedures, as necessary, for the effective operation of the System.  Notwithstanding the above, no changes or modifications to the nomination, confirmation, allocation, and/or imbalance procedures contained in Exhibit “C” shall be made unless mutually agreed upon by both Parties.

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Section 3.3    Curtailment.  Notwithstanding any of the above provisions to the contrary, DBM shall have the right to interrupt or curtail receipts of Gas into the System at any time pursuant to the Curtailment and Release Procedures set forth in Exhibit “D” attached hereto and made a part hereof.  However, DBM reserves the right, at any time with at least thirty (30) days prior written notice to AEP, to modify or change the curtailment procedures set forth in Exhibit “D”, and/or establish new procedures as necessary to properly allocate the available capacity on the System.
Section 3.4    Comingling.  DBM shall have the unqualified right to commingle Gas received, gathered, compressed, and delivered hereunder with Gas from other sources.  It is recognized that Gas delivered at a Point of Delivery may not be the same molecules as those received at a Point of Receipt.  The quantities of Gas delivered pursuant to this Agreement at a Point of Delivery shall be Thermally Equivalent to the quantities of Gas received at a Point of Receipt, as adjusted for Fuel and Loss.
Section 3.5    Discontinuance.  Beginning ten (10) years after the Effective Date, if in DBM’s sole judgment made in good faith, it is no longer economical for DBM to gather and compress Gas from any Point(s) of Receipt, DBM may discontinue the taking of such Gas upon giving at least sixty (60) Days prior written notice to AEP.  Any such Point(s) of Receipt shall be released from this Agreement and the Transportation Interests insofar only as Gas that may be produced to such Point(s) of Receipt shall automatically revert back to AEP.  Further, if, in DBM’s sole judgment made in good faith, DBM deems the continued operation of all or part of the System to be uneconomical, DBM may discontinue operation of all or part of the System, upon giving at least sixty (60) Days prior written notice to AEP.  Before discontinuing service to any Point(s) of Receipt pursuant to this Section 3.5, the Parties shall endeavor to identify mutually agreeable terms that would make the service to such Point(s) of Receipt reasonably economical for DBM.  In connection with the release of Transportation Interests pursuant to this Section 3.5, DBM and AEP shall execute and deliver any additional documents and instruments and perform any additional acts that may become reasonably necessary or appropriate to effectuate the reversion of Transportation Interests with respect thereto.
Section 3.6    Pipeline Drips.  DBM may collect and remove pipeline drips from the System for operational efficiency and meet downstream quality specifications prior to delivery of AEP’s share of Gas at the Point(s) of Delivery. *** *** *** ***. 
Section 3.7    Well Connections:
(a)    Well Notice.  AEP shall notify DBM of AEP’s intent to drill a new Well within the Dedicated Lands where such notice shall: (i) be in writing and comply with Article X of this Agreement; (ii) be provided at least *** (***) Days in advance of the planned TOTS Date of such Well; and (iii) include, at a minimum, the location of the Well, the intended production zone, the planned spud date, the planned completion date, the planned TOTS Date, a ten year gas production forecast, and any other information reasonably requested by DBM (the “Well Notice”).

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(b)    Expected TOTS through December 31, 2027.  For each planned Well with an expected TOTS Date on or before December 31, 2027, DBM will, subject to applicable law and the terms of this Agreement, construct, install and operate, the pipeline assets and appurtenances it deems necessary to connect the planned Well and, upon completion, include such pipeline assets and appurtenances in the System and provide service to the planned Well pursuant to the terms of this Agreement.  
(c)    Expected TOTS after December 31, 2027.  For each planned Well with an expected TOTS Date during the Term but after December 31, 2027, DBM will, within *** (***) Days of receiving a Well Notice, notify AEP in writing whether or not DBM elects to connect such planned Well to the System. 
(i)    If DBM elects to connect the planned Well, then DBM will, subject to applicable law and the terms of this Agreement, construct, install and operate, at its sole cost, the pipeline assets and appurtenances it deems necessary to connect the planned Well and, upon completion, include such pipeline assets and appurtenances in the System and provide service to the planned Well pursuant to the terms of this Agreement. 
(ii)    If, DBM determines that the then applicable rates do not support the cost of connecting the planned well, the Parties will negotiate in good faith to revise the rates as necessary to support the costs.  If DBM elects not to connect the planned Well, then AEP may (x) construct, own, and operate the facilities necessary to deliver its Gas from the Well to a mutually agreeable point on the System and reimburse DBM for the costs for pipeline assets and appurtenances incurred by DBM to connect such AEP’s facilities to the System (it being understood that such AEP’s facilities shall NOT be considered part of the System and that service under this agreement shall commence with respect to such Well once both Parties have completed their required facilities); or (y) request a permanent release in writing for such planned Well and a reversion of the Transportation Interests to AEP insofar only as Gas that may be produced and saved from such Well(which shall be granted within five (5) business Days after DBM’s receipt of such written request). 
(d)    DBM will, to the extent it is obligated to construct Well connection facilities pursuant to Section 3.7(b) or elects to do so pursuant to Section 3.7(c)(i), endeavor to construct the Well connection facilities on a commercially reasonable basis but does not guarantee that the facilities will be available for commercial service on or before the expected TOTS Date shown on the relevant Well Notice.  If the Well connection facilities for an AEP Well are not available for commercial service within *** (***) Days after the expected TOTS Date shown in the applicable Well Notice, then (i) AEP’s Gas from that Well shall be temporarily released from the Dedication until DBM notifies AEP that the relevant Well connection facilities are available for commercial service; and (ii) the Parties will endeavor to identify mutually agreeable alternatives. 
ARTICLE IV 
RECEIPT, DELIVERY AND PRESSURE
Section 4.1    Pressure.  The Gas delivered hereunder at the Point(s) of Receipt shall be at a pressure which is sufficient to enable Gas to enter the System against the prevailing pressure therein from time to time.  In the event AEP’s Gas is unable to flow against DBM’s System and pipeline pressures, either DBM or AEP may install compression facilities to serve such Point(s) of Receipt.  

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However, neither DBM nor AEP shall be under any obligation to install such compression facilities, but if DBM does so, DBM shall charge AEP the Compression Fee set forth in Section 6.1(c) for such service.  If neither Party elects to install compression facilities for such Point(s) of Receipt, then such Point(s) of Receipt shall be released from the terms of this Agreement and the Transportation Interests insofar only as Gas that may be produced to such Point(s) of Receipt shall automatically revert back to AEP upon the written request of AEP.
Section 4.2    Custody.  AEP shall have custody and control of its Gas prior to such Gas being delivered hereunder to DBM at the Point(s) of Receipt and AEP shall be solely responsible for any damages, losses, or injuries caused by or related to the Gas.  DBM shall take custody and control of such Gas at the Point(s) of Receipt and shall be solely responsible for any injuries or damages caused by or related to its custody of the Gas from the Points of Receipt until such Gas is delivered at the Point(s) of Delivery; at which time AEP or AEP’s Transporter shall have custody of such Gas and DBM shall no longer be responsible for any damages, losses or injuries caused by or related to the Gas. Subject to Section 12.1 and Section 12.2, the Party who has custody of the Gas shall be responsible for and shall indemnify the other Party with respect to any losses, injuries, claims, liabilities or damages, caused thereby and occurring while the Gas is in its custody, as set out or limited elsewhere in this Agreement.  AEP shall retain title to its Gas at all times while such Gas is in the custody and control of DBM.
Section 4.3    Availability Factor.  DBM shall endeavor to, but does not guaranty, that it will maintain a weighted average Gas compressor availability of ***% (weighted by compressor throughput capacity) (the “Availability Factor”) each calendar quarter.  If the Availability Factor for a calendar quarter is less than ***%, then DBM will invest the reasonably necessary capital to achieve the ***% Availability Factor.

ARTICLE V 
QUALITY
Section 5.1    Quality.  Except as provided below, AEP’s Gas delivered to DBM by AEP in accordance with this Agreement will be commercially free of hazardous waste as defined in the Resources Conservation Recovery Act, 42 USC § 690.1, et. seq, mercury, and substances which may be injurious to pipelines, meters or other facilities of the System, or which may interfere with processing, transmission, or commercial utilization of such Gas.  Additionally, the AEP’s Gas will conform to the following specifications (the “Specifications”):
	
				
	 
	(a)
	Nitrogen
	Not more than ***% by volume

	 
	(b)
	Oxygen
	Not more than *** PPM

	 
	(c)
	Carbon Dioxide
	Not more than ***% by volume

	 
	(d)
	Hydrogen Sulfide
	Not more than *** PPM

	 
	(e)
	Mercaptan Sulfur
	Not more than *** grain per *** cubic feet

	 
	(f)
	Total Sulfur
	Not more than *** *** per *** cubic feet

	 
	(g)
	Free Water
	***

	 
	(h)
	Heating Value Lean Gas
	Not more than *** Btu per cubic foot

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	(i)
	Heating Value Rich Gas
	Not less than *** Btu per cubic foot

	 
	(j)
	Temperature
	Not less than ***° and not more than ***° Fahrenheit

DBM will not be required to accept at any Points of Receipt any of AEP’s Gas tendered by AEP under this Agreement until such Gas conforms to the Specifications.  
Section 5.2    Carbon Dioxide and Hydrogen Sulfide.  AEP agrees that, to the extent AEP’s Gas at a Points of Receipt contains carbon dioxide in excess of the *** percent (***%) by volume, DBM shall have the right and option to either (a) refuse to accept such Gas, or (b) accept such Gas and charge the CO2 Treating Fee as provided in Section 6.1(b).  AEP agrees that, to the extent AEP’s Gas at a Points of Receipt contains hydrogen sulfide in excess of *** (***) PPM by volume, DBM shall have the right and option to either (x) refuse to accept such Gas, or (y) accept such Gas and charge the H2S Disposal Fee as provided in Section 6.1(d).   
Section 5.3    Non-Conforming Gas.  If AEP becomes aware that any of its Gas fails to conform to the Specifications (“Non-Conforming Gas”), then as soon as reasonably practicable after becoming aware of such condition, AEP shall give written notice to DBM of the Non-Conforming Gas and the manner in which such Non-Conforming Gas does not conform to the Specifications.  If DBM becomes aware that any of AEP’s Gas fails to conform to the Specifications, then as soon as reasonably practicable after becoming aware of such condition, DBM shall give written notice to AEP of the Non-Conforming Gas and the manner in which such Non-Conforming Gas does not conform to the Specifications.  If AEP’s Gas delivered to a Point of Receipt fails to meet the Specifications, then AEP shall cause such Gas to meet the Specifications.  DBM will have the right to refuse to accept Non-Conforming Gas from AEP to the extent, and for so long as, AEP is unable to deliver Gas conforming to the Specifications or, at DBM’s sole discretion, accept such Non-Conforming Gas and charge AEP a mutually agreeable Non-Conforming Gas fee, provided that even if the Parties mutually agree on a Non-Conforming Gas fee, DBM may, in its sole discretion, cease accepting Non-Conforming Gas at any time.  If DBM at any time accepts delivery of Non-Conforming Gas, that acceptance will not constitute a waiver of this provision with respect to any future delivery of Gas.  AEP AGREES TO ASSUME ALL LIABILITY FOR, AND AGREES TO PROTECT, DEFEND, RELEASE, INDEMNIFY AND HOLD HARMLESS DBM’S INDEMNITEES AGAINST, ANY COSTS, EXPENSES, LOSSES, DAMAGES AND LIABILITIES TO THE EXTENT CAUSED BY AEP’S NON-CONFORMING GAS, but only to the extent DBM did not knowingly accept AEP’s Non-Conforming Gas.  In addition, if AEP’s Non-Conforming Gas is delivered into DBM’s System without the prior knowledge of DBM, and the quality deficiency of that Gas damages any person’s (including DBM’s) pipelines or facilities, AEP AGREES TO ASSUME ALL LIABILITY FOR, AND AGREES TO PROTECT, DEFEND, RELEASE, INDEMNIFY AND HOLD HARMLESS DBM’S INDEMNITEES AGAINST, ALL DAMAGES TO SUCH FACILITIES CAUSED BY, OR TO THE EXTENT CONTRIBUTED TO BY, AEP’S NON-CONFORMING GAS.  Notwithstanding the foregoing, in no event will AEP be responsible for the payment of DBM’s or its Affiliates’ Consequential Damages, and DBM hereby waives any and all claims it may have against AEP for such Consequential Damages on behalf of itself or its Affiliates, arising in connection with this Agreement, REGARDLESS OF FAULT.  Further, the Parties understand and agree that the indemnity and defense obligations contained in this Section 5.3 do not include indemnification for any exemplary or punitive damages under any applicable law or otherwise.

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Section 5.4     Redelivery of Gas.  DBM AGREES TO ASSUME ALL LIABILITY FOR, AND AGREES TO PROTECT, DEFEND, RELEASE, INDEMNIFY AND HOLD HARMLESS AEP’S INDEMNITEES AGAINST, ANY COSTS, EXPENSES, LOSSES, DAMAGES AND LIABILITIES TO THE EXTENT CAUSED BY DBM’S DELIVERY OF GAS (WHETHER SOURCED FROM NON-CONFORMING GAS OR CONFORMING GAS) TO A DOWNSTREAM TRANSPORTER THAT DOES NOT CONFORM TO SUCH DOWNSTREAM TRANSPORTERS’ QUALITY SPECIFICATIONS, but only to the extent AEP delivered into DBM’s System Gas conforming to the Specifications or DBM knowingly accepted AEP’s Non-Conforming Gas.  Notwithstanding the foregoing, in no event will DBM be responsible for the payment of AEP’s or its Affiliates’ Consequential Damages, and AEP hereby waives any and all claims it may have against DBM for such Consequential Damages on behalf of itself or its Affiliates, arising in connection with this Agreement, REGARDLESS OF FAULT.  Further, the Parties understand and agree that the indemnity and defense obligations contained in this Section 5.4 do not include indemnification for any exemplary or punitive damages under any applicable law or otherwise.
ARTICLE VI 
GATHERING RATE
Section 6.1    Fees.  For the services provided herein, DBM will charge AEP the following fees:  
(a)    Gathering Fee: DBM will charge AEP a fee (in $/Mcf or $/MMBtu as applicable) that will apply to all AEP’s Gas received at the Point(s) of Receipt as set out below (the “Gathering Fee”). The Parties acknowledge and agree that the Gathering Fee set forth in this Section 6.1(a) includes DBM’s recovery of and return on capital, while the other fees in this Agreement only include recovery of non-capital costs.  Therefore, capital costs associated with such other fees will be included in the cost of service calculation pursuant to Section 6.3. For example, capital expense for compression facilities will be included in the cost of service calculation pursuant to Section 6.3 notwithstanding the Compression Fee in Section 6.1(c).
(i)    The Gathering Fee for Lean Gas shall be $***/MMBtu (“Lean Gathering Fee”).
(ii)    The Gathering Fee for Rich Gas receiving High Pressure Service (“HP Rich Gathering Fee”) and Gathering Fee for Rich Gas receiving Low Pressure Service (“LP Rich Gathering Fee”) shall be as follows:
	
			
	Calendar Year
	HP Rich Gathering Fee
	LP Rich Gathering Fee

	2018-2027
	$***/Mcf
	Cost of service as determined by DBM each calendar year pursuant to Section 6.3 below; subject to adjustment by the Rate Reduction Incentive set out in Section 6.4 below. 

	2028-2032
	$***/Mcf
	Fixed rate equal to $***/Mcf.

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(b)    CO2 Treating Fee:  DBM will charge AEP a fee (per Mcf) that will apply to all AEP’s Gas received at the Point(s) of Receipt in accordance with this Agreement containing more than *** mole percent (***%) carbon dioxide according to the following table (the “CO2 Treating Fee”), provided that DBM’s acceptance of Gas that contains carbon dioxide in excess of the Specifications shall not be deemed a waiver of any of DBM’s rights and remedies under this Agreement.
	
		
	CO2 Content
(mole %)
	Total CO2 Treating Fee 
($/Mcf)

	***
	***

	***
	***

	***
	***

	***
	***

	***
	***

	***
	***

	***
	***

	***
	***

	***
	***

(c)    Compression Fee:  DBM will charge AEP a fee equal to $*** per Mcf for each stage of compression for compressing AEP’s Gas (the “Compression Fee”).  For example, if 1 Mcf of gas receives three (3) stages of compression, the total Compression Fee shall be equal to $*** per Mcf.
(d)    H2S Disposal Fee: DBM will charge AEP a fee (per Mcf) will apply to all AEP’s Gas received at the Point(s) of Receipt in accordance with this Agreement containing more than *** (***) PPM by volume of hydrogen sulfide according to the following table (the “H2S Disposal Fee”), provided that DBM’s acceptance of Gas that contains hydrogen sulfide in excess of the Specifications shall not be deemed a waiver of any of DBM’s rights and remedies under this Agreement:

	
		
	H2S (PPM)
	Total H2S Disposal Fee ($/Mcf)

	***
	***

	***
	***

	***
	***

	***
	***

	***
	***

	***
	***

	***
	***

	***
	***

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Section 6.2    Electricity Costs Recovery.  The Parties agree that if, after the Effective Date, DBM utilizes electricity or other energy sources to power Gas compressors or other operational facilities to provide the services hereunder, then the Parties will amend this Agreement as necessary to provide DBM with the opportunity to recover the cost of such electricity or other energy sources.  .
Section 6.3    Cost of Service.  The LP Rich Gathering Fee ($/Mcf) for the System shall be a cost of service-based rate determined such that the annual sum of revenue less expenses less capital (“Free Cash Flows”), when discounted at *** percent (***%), sum to a net present value of zero (the “IRR Calculation”). The IRR Calculation shall use all Free Cash Flows from January 1, 2008 through December 31, 2027. The IRR Calculation will utilize Excel’s XNPV and XIRR formula functions and assume mid-year discounting.
The LP Rich Gathering Rate shall be redetermined annually, effective on January 1st, by DBM to generate the IRR Calculation the (“Annual Rate Redetermination”). Actual volumes, revenues (including the revenues from the fees set forth in Section 6.1 above), expenses and capital will be used from January 1, 2008 up to the current year (“Actualized Data”), provided that estimates may be used for the immediately preceding year to the extent that actual volumes, revenues, expenses and/or capital are unavailable. Forecasted volumes, revenues (including the revenues from the fees set forth in Section 6.1 above), expenses and capital (“Forecast”) will be used for the current year forward. In the event the Forecast is not available in time to make the Annual Rate Redetermination for the current year’s January billing cycle, the immediately preceding year’s rate will be extended until such time as the adjusted rate can be determined which will then be deemed to be effective January 1 of the current year. Notwithstanding the above and for the avoidance of doubt, adjustments to any prior period Actualized Data shall be incorporated in the Annual Rate Redetermination.
An example of the output of the model used to calculate the cost of service rate is included as Exhibit “F” hereto.
Section 6.4    Rate Reduction Incentive.  For each Incentive Period shown on the following table, if AEP delivers and DBM receives a volume of Rich Gas (in Mcf) at the Point(s) of Receipt greater than or equal to the applicable Cumulative Volume Threshold, then the corresponding Rate Reduction shall apply to the LP Rich Gathering Fee in the applicable Rate Reduction Period.  The Rate Reductions are cumulative and shall be applied such that the LP Rich Gathering Fee is calculated to achieve the target IRR and then the LP Rich Gathering fee is reduced by the applicable Rate Reduction(s).  For example, if AEP achieves the Cumulative Volume Threshold in each of the three (3) Incentive Periods, then the LP Rich Gathering Fee shall be reduced by $***/Mcf (i.e., 3 x $***/Mcf) in 2027.
	
					
	Incentive Period
	Years Included
	Cumulative Volume Threshold (Mcf)
	Rate Reduction
	Rate Reduction Period

	1
	2018-2024
	***
	$***/Mcf
	2025-2027

	2
	2018-2025
	***
	$***/Mcf
	2026-2027

	3
	2018-2026
	***
	$***/Mcf
	2027

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Section 6.5    Escalation.  The LP Rich Gathering Fee will adjust on January 1, 2029 and each January 1st thereafter by multiplying the then current fee by ***.  Each of the other fees set forth in Section 6.1 will adjust on January 1, 2033 and each January 1st thereafter by multiplying the then current fee by ***.

ARTICLE VII 
MEASUREMENT AND TESTS
Section 7.1    Measurement Equipment.  DBM will install, own, operate and maintain industry standard type measurement equipment necessary to measure AEP’s Gas gathered at each Point of Receipt.  The volume of Gas will be measured by a primary and secondary/tertiary measurement device that is accepted by industry, state, and federal regulatory agencies.  The most common primary devices are orifice or ultrasonic meter tubes.  These devices shall comply with the American Petroleum Institute – Manual of Petroleum Measurement Standards, Chapter 14.3 (latest revision), and American Gas Association Reports No. 3 and No. 9 (latest revisions), where applicable. The secondary measurement device shall be an electronic flow meter (“EFM”) that includes a temperature recording system. The EFM shall meet and be capable of performing volume calculations according to the current standards prescribed in the American Gas Association Report No. 3, Orifice Metering of Natural Gas and Other Hydrocarbon Fluids, Parts 1-4 (latest revisions), and shall comply with the American Petroleum Institute – Manual of Petroleum Measurement Standards, Chapter 21, Section 1 – Electronic Gas Measurement (latest revision). 
Section 7.2    Meter Testing.  DBM will test the measurement equipment in service at least semi-annually.  AEP shall have the right to request that DBM test (at AEP’s sole cost and expense) the measurement equipment between the regular semi-annual tests.
Section 7.3    Equipment Inaccuracies.  If, upon any test, the measurement equipment at any Points of Receipt is found to be inaccurate, and the average hourly inaccuracy in the computed receipts is not more than *** percent (***%) of the average hourly rate of Gas flow on the Day of the most recent accurate test, then previously calculated receipts will be considered correct in computing the deliveries of AEP’s Gas under this Agreement, but such equipment will immediately be adjusted to record accurately.  If, upon any test, the measurement equipment is found to be inaccurate, and the average hourly inaccuracy in the computed receipts is more than *** percent (***%) of the average hourly rate of Gas flow on the Day of the most recent accurate test, then any previous recordings of such equipment will be corrected to zero error for any period which is known definitely or agreed upon.  If such period is not known definitely or agreed upon, then such correction will be made for one half the period since the date of the last meter test, but in no event shall any adjustment extend back beyond six (6) Months from the date the error was first made known by one Party to the other, so long as the meter testing is in compliance with Section 7.2.  

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Section 7.4    AEP Meters.  AEP will be entitled to install and operate, at its own expense; at any Points of Receipt an industry standard meter such as will enable AEP to check the volume of AEP’s Gas delivered at such Point.  Should Gas pulsation problems occur upstream of DBM’s meter at a Point of Receipt, AEP will promptly take all actions necessary to mitigate such pulsation.  If AEP exercises this right of installing and operating a check meter, then, in the event of failure of DBM’s meter to register accurately at any time, the registration of AEP’s check meter, if accurately indicating within the tolerances provided above, will be used to determine the volume of Gas delivered to DBM until such time as DBM’s meter is adjusted, repaired, or replaced.  If AEP’s check meter is used for the purpose of determining the quantity and/or quality of Gas delivered to DBM, AEP’s meter will be tested at least semi-annually.  DBM shall have the right to request that AEP test (at DBM’s sole cost and expense) such check meter between the regular semi-annual tests.  
Section 7.5    Remedies for Meter Failure or Repair.  If DBM’s meter is out of repair or is being tested, or if DBM’s meter becomes inoperative and manifestly in error, and AEP has not installed a check meter as herein provided, or if such check meter has been installed and fails to record accurately, then the volume of AEP’s Gas delivered during the period DBM’s meter was inoperative will be determined upon the basis of the best data available, using one of the following methods:
(a)    by correcting the error if the percentage of error is ascertainable by calibration, test or mathematical calculation; or
(b)    if the percentage of error is not ascertainable by calibration, test or mathematical calculation, then by determining the volume delivered by reference to deliveries during the most recent preceding period under similar conditions when the meter was registering accurately.
Section 7.6    AEP Volume Measurement.  The quantity of AEP’s Gas received will be determined as follows:
(a)    The unit of volume for measurement of Gas delivered hereunder shall be one thousand (1,000) Cubic feet of Gas at a base temperature of sixty degrees Fahrenheit (60°F) and at an absolute pressure base of 14.65 psia.
(b)    The average absolute atmospheric (barometric) pressure will be assumed to be 13.2 pounds per square inch irrespective of actual elevation or location of the Points of Receipt above sea level or variations in actual barometric pressure from time to time.
(c)    The arithmetic average determined to the nearest 1° Fahrenheit of the temperatures recorded each day, or a fraction of such day if AEP’s Gas is not delivered continuously during such day, will be used in calculating the AEP’s Gas volume.  If for any reason DBM’s recording thermometer is out of service, AEP’s recording thermometer, if one is installed and operative, will be used in the calculation of the AEP’s Gas volume.
(d)    Deviation from Boyle’s Law at the pressure, specific gravity and temperatures upon delivery shall be calculated as outlined or described in American Gas Association Report No. 8, Compressibility Factors of Natural Gas and Other Related Hydrocarbon Gases and any supplements thereto and modifications thereof as mutually agreed to by the Parties.

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(e)    In determining the volume of AEP’s Gas delivered through the meter during a daily period, an EFM will be programmed with the applicable factors and will be used in determining the volume of AEP’s Gas delivered through the meter on a real time basis.  Such EFM will be of standard manufacture.
(f)    DBM shall determine the Gas stream composition, specific gravity, and gross Heating Values based on any of the following: spot samples, composite samples, on-line Gas chromatograph analysis or portable Gas chromatograph analysis.  The component analysis of the Gas shall be performed by Gas chromatography in accordance with Gas Processor’s Association Standards 2261 and 2172 (latest revisions).  Gas samples shall be obtained in accordance with the procedures set forth in the Gas Processor’s Association Standard 2166, Obtaining Natural Gas Samples for Analysis by Gas Chromatography (latest revision), and American Petroleum Institute – Manual of Petroleum Measurement Standards, Chapter 14.1, Section 1 (latest revision).  Samples will be taken not less than quarterly, but may be taken more often if deemed necessary by DBM or reasonably requested by AEP, provided that AEP shall be responsible for the costs of collecting and testing any additional samples taken at its request.
(g)    Tests for the oxygen, carbon dioxide, sulphur, and hydrogen sulfide content of the Gas delivered hereunder shall be made as often as deemed necessary by DBM, by means commonly used and accepted in the industry.
Section 7.7    Representative Present at Testing.  AEP and DBM will have the right to have representatives present at any time that the other’s measurement equipment is installed, read, cleaned, changed, repaired, inspected, calibrated, or adjusted or at any time AEP’s Gas is sampled or tested.  AEP and DBM will each give the other reasonable notice prior to the time of all tests so that the other may conveniently have its representatives present.  Measurement and testing records will remain the property of their owner, but upon request each Party will submit to the other its records and charts, together with calculations therefrom, for inspection and verification, subject to return within thirty (30) days after receipt thereof.
Section 7.8    Data Retention.  Each Party will preserve for the use of both Parties, for a period of two (2) years, all test data, charts, and other similar records pertaining to the gathering of AEP’s Gas.
Section 7.9    Settlement Data.  DBM shall provide to AEP or AEP’s designee information reasonably sufficient to allow AEP or its designee to allocate gas processing products (i.e., residue gas, condensates, natural gas liquids) to each Point of Receipt.  
ARTICLE VIII 
BILLINGS AND PAYMENT
Section 8.1    Invoice.  On or before the last Day of the Month following the Month of receipt and delivery of AEP’s Gas, DBM shall furnish, or cause to be furnished, a statement and invoice to AEP showing the quantity of AEP’s Gas received at each Point of Receipt, the total quantity of Gas delivered at the Point(s) of Delivery, the applicable Heating Value, and the total amount due DBM. On or before the tenth (10th) Day following the date DBM’s invoice is sent (the “Due Date”), AEP shall make payment to DBM at the address shown in Article X hereof.  If AEP, in good faith, disputes the amount of any such statement and invoice or any part thereof, AEP shall pay such amount as it concedes 

17

to be correct; provided, however, that if AEP disputes the amount due, it must provide supporting documentation acceptable in industry practice to support the amount paid or disputed.  In the event the Parties are unable to resolve such dispute, either Party may pursue any remedy available at law or in equity to enforce its rights pursuant to this Section 8.1. If AEP is ultimately determined to owe any unpaid, disputed amount, it shall also pay interest on such amount as determined pursuant to Section 8.2.
Section 8.2    Interest.  Commencing on the Day following the Due Date, interest shall accrue on any unpaid balance at the “Prime Rate” per annum published daily in the Wall Street Journal in the “Money Rates” column, plus *** percent (***%), until same is paid, compounded quarterly; provided, however, that such rate shall not exceed the maximum lawful rate established in the state where the Delivery Point(s) is/are located.  In the event the Prime Rate plus *** percent (***%) exceeds the maximum lawful rate, the applicable interest rate shall be the maximum lawful rate. Interest shall be calculated on the basis of a 365 (or 366, as the case may be) day-year for the actual Days elapsed.
Section 8.3    Books & Records.  Each Party shall have the right at reasonable hours to examine the books, records, EGM data and charts of the other Party to the extent necessary to verify the accuracy of any statement, charge, computation, or payment made pursuant to the provisions of this Agreement.  Any such examination shall be conducted during normal business hours and in the appropriate office of the Party owning such books, records, EGM data and charts, as mutually agreed to by DBM and AEP. If any such examination reveals any inaccuracy in any billing or payment theretofore made, the necessary adjustment in such billing and payment shall be promptly made, provided that no adjustment for any billing shall be made and payments shall be considered final after the lapse of two (2) years from the rendition thereof, except to the extent that either Party has noted a specific exception to the other Party in writing during that period.
ARTICLE IX 
TERM
Section 9.1    This Agreement shall become effective as of the Effective Date first written above, and shall remain in full force and effect for a primary term of fifteen (15) years (the “Primary Term”), and continue from year to year thereafter (each an “Annual Renewal”), unless terminated by either Party at the expiration of the primary term, or any year thereafter, by providing not less than ninety (90) days prior written notice to the other Party.  The Primary Term and all Annual Renewals are, together, (the “Term”).  Termination of this Agreement shall not relieve either Party from any obligations previously accrued hereunder.
ARTICLE X 
NOTICES
Section 10.1    All notices authorized or required between the Parties, and required by any of the provisions of this Agreement, shall be effective when received, unless otherwise specifically provided, be given in writing by United States mail, postage or charges prepaid, overnight delivery sent by email as long as confirmed by a non-automated reply, or telefax with printed confirmation, and addressed to the Party to whom the notice is given at the following respective addresses:

18

If to DBM
Delaware Basin Midstream, LLC
1201 Lake Robbins Drive
The Woodlands, Texas 77380 
FAX:    (832)636-5130
Email: MidstreamCS@Anadarko.com
Attn.:    Midstream Contract Administration

If to AEP
Anadarko E&P Onshore LLC
1201 Lake Robbins Drive
The Woodlands, Texas 77380 
FAX:    (832) 636-5130
Email: MidstreamCS@Anadarko.com
Attn.:    Midstream Contract Administration
Either Party may change any address under this Article V by giving prior written notice to the other Party.
ARTICLE XI 
FORCE MAJEURE
Section 11.1    Force Majeure.  Except for a Party’s failure to make payments as required hereunder, neither Party shall be liable to the other Party for failure to perform any of its obligations pursuant to this Agreement to the extent such performance is hindered, delayed or prevented by Force Majeure. 
Section 11.2    Notice.  A Party unable, in whole or in part, to carry out its obligations under this Agreement due to Force Majeure shall deliver notice to the other Party. A Party’s initial notice of Force Majeure may be delivered in non-written form, provided that written notification with reasonably full particulars of the event or occurrence is delivered as soon as reasonably possible.
Section 11.3    Reasonable Efforts.  A Party claiming Force Majeure shall diligently pursue all reasonable efforts to remove the cause, condition, event or circumstance of Force Majeure, shall promptly deliver notice to the other Party of the termination of conditions of Force Majeure, and shall resume performance of any suspended obligation as soon as reasonably possible after termination of such Force Majeure.
Section 11.4    Definition. For purposes herein, “Force Majeure” means causes, conditions, events or circumstances beyond the reasonable control of the Party claiming Force Majeure. Such causes, conditions, events and circumstances include a ***, acts of God, terrorism, strikes, lockouts or other industrial disturbances, acts of the public enemy, wars, blockades, insurrections, riots, epidemics, landslides, lightning, earthquakes, fires, storms, floods, washouts, arrests and restraints of rulers and people, arrests and restraints of federal, state, tribal or local governmental or judicial authorities, the inability to obtain necessary materials or supplies at reasonable market costs, the inability to obtain necessary permits due to existing or future rules, orders and laws of federal, state, tribal or local governmental or judicial authorities, interruptions by federal, state, tribal or local government or court 

19

orders, present and future orders of any regulatory body having proper jurisdiction, civil disturbances, explosions, sabotage, and partial or entire loss of market. Breakage of or accident to machinery or lines of pipe, the necessity for making inspections, maintenance (planned or unplanned), repairs, replacements, relocations or alterations to machinery or lines of pipe, freezing of wells or lines of pipe, and partial or entire failure of wells are Force Majeure events if the Party claiming Force Majeure has not caused the event and the cause of the event was out of the control of such Party. Force Majeure includes any other causes, whether of the kind enumerated herein or otherwise not within the control of the Party claiming Force Majeure and which by the exercise of due diligence such Party is unable to overcome, such as the inability to acquire, or delays in acquiring, at reasonable market cost and after the exercise of reasonable diligence, any servitude, right-of-way grants, permits, or licenses required to be obtained to enable such Party to fulfill its obligations hereunder.  A Party may not claim an event of Force Majeure due to such Party’s inability to be profitable, to secure funds, to arrange bank loans or other financing, or to obtain credit.
ARTICLE XII 
INDEMNITY
Section 12.1    Indemnification by AEP.  Subject to Section 12.3 and to the indemnity obligations in Sections 4.4 and 5.3, but notwithstanding any other provision in this Agreement to the contrary, AEP AGREES TO ASSUME ALL LIABILITY FOR AND AGREES TO PROTECT, DEFEND, RELEASE, INDEMNIFY AND HOLD DBM, AND VENTURERS, GENERAL PARTNER AND AFFILIATED COMPANIES, IF ANY, AND THEIR DIRECTORS, OFFICERS, EMPLOYEES, AGENTS, INSURERS AND THEIR SUBCONTRACTORS OF EVERY TIER AND THEIR EMPLOYEES, (HEREAFTER REFERRED TO AS “DBM INDEMNITEES” OR “DBM’S INDEMNITEES”), FREE AND HARMLESS FROM AND AGAINST ANY AND ALL LOSSES, CLAIMS, LIENS, DEMANDS AND CAUSES OF ACTION OF EVERY KIND AND CHARACTER, (EXCEPT PUNITIVE OR EXEMPLARY DAMAGES) INCLUDING, BUT NOT LIMITED TO, THE AMOUNTS OF JUDGMENTS, PENALTIES, INTEREST, COURT COSTS, INVESTIGATION EXPENSES AND COSTS AND ATTORNEY’S AND LEGAL FEES INCURRED BY DBM INDEMNITEES, IN DEFENSE OF SAME, ARISING IN CONNECTION WITH: 
(i) BODILY INJURY AND/OR DEATH TO AEP’S EMPLOYEES, AEP’S SUBCONTRACTORS OF EVERY TIER AND THEIR EMPLOYEES, AND AEP’S INVITEES; 
(ii) DAMAGE TO THE PROPERTY OF AEP’S EMPLOYEES AND AEP’S SUBCONTRACTORS OF EVERY TIER AND THEIR EMPLOYEES, AND AEP’S INVITEES; AND/OR 
(iii) DAMAGE TO OR LOSS OR DESTRUCTION OF AEP’S PROPERTY;ARISING OUT OF OR RESULTING FROM THE PERFORMANCE OF THIS AGREEMENT, WITHOUT REGARD TO THE CAUSE OR CAUSES OF ANY CLAIM, INCLUDING, WITHOUT LIMITATION, CLAIMS CAUSED IN WHOLE OR IN PART BY THE NEGLIGENCE (WHETHER SOLE, JOINT, CONCURRENT, COMPARATIVE, CONTRIBUTORY, ACTIVE, PASSIVE, GROSS, OR OTHERWISE), WILLFUL MISCONDUCT, STRICT LIABILITY, OR OTHER FAULT, OF ANY MEMBER OF 

20

DBM INDEMNITEES, AEP INDEMNITEES AND/OR INVITEES OR THIRD PARTIES, AND WHETHER OR NOT CAUSED BY A PRE-EXISTING CONDITION (“REGARDLESS OF FAULT”). 
The indemnity obligations set forth in this paragraph shall include any medical, compensation, or other benefits paid by any member of DBM Indemnitees and shall apply even if the employee is determined to be the borrowed or statutory employee of any member of DBM Indemnitees.
Section 12.2    Indemnification by DBM.  Subject to Section 12.3 and to the indemnity obligations in Section 5.4, but notwithstanding any other provision in this Agreement to the contrary, DBM AGREES TO ASSUME ALL LIABILITY FOR AND AGREES TO PROTECT, DEFEND, RELEASE, INDEMNIFY AND HOLD AEP, ITS JOINT OWNERS AND VENTURERS, GENERAL PARTNER AND AFFILIATED COMPANIES, IF ANY, ITS AND THEIR DIRECTORS, OFFICERS, EMPLOYEES, AGENTS, INSURERS AND ITS SUBCONTRACTORS OF ANY TIER AND THEIR EMPLOYEES, (HEREAFTER REFERRED TO AS “AEP INDEMNITEES” OR “AEP’S INDEMNITEES”), FREE AND HARMLESS FROM AND AGAINST ANY AND ALL LOSSES, CLAIMS, LIENS, DEMANDS AND CAUSES OF ACTION OF EVERY KIND AND CHARACTER, (EXCEPT PUNITIVE OR EXEMPLARY DAMAGES) INCLUDING, BUT NOT LIMITED TO, THE AMOUNTS OF JUDGMENTS, PENALTIES, INTEREST, COURT COSTS, INVESTIGATION EXPENSES AND COSTS AND ATTORNEY’S AND LEGAL FEES INCURRED BY AEP INDEMNITEES, IN DEFENSE OF SAME, ARISING IN CONNECTION WITH: 
(i) BODILY INJURY AND/OR DEATH TO DBM’S EMPLOYEES, DBM’S SUBCONTRACTORS AND THEIR EMPLOYEES, AND DBM’S INVITEES; 
(ii) DAMAGE TO THE PROPERTY OF DBM’S EMPLOYEES AND DBM’S SUBCONTRACTORS OF EVERY TIER AND THEIR EMPLOYEES, AND DBM’S INVITEES; AND/OR 
(iii) DAMAGE TO OR LOSS OR DESTRUCTION OF DBM’S PROPERTY; 
ARISING OUT OF OR RESULTING FROM THE PERFORMANCE OF THIS AGREEMENT, REGARDLESS OF FAULT. 
The indemnity obligations set forth in this paragraph shall include any medical, compensation, or other benefits paid by any member of AEP Indemnitees and shall apply even if the employee is determined to be the borrowed or statutory employee of any member of AEP Indemnitees.
Section 12.3    Waiver of Damages. Notwithstanding any provision in this Agreement to the contrary, this Agreement does not authorize one Party to sue for or collect from the other Party its own special, consequential losses or indirect damages, lost profits, loss of revenue, loss of savings, loss or deferment of production, loss of use, loss of Agreement, or business interruption whether or not the foregoing are direct or indirect (collectively “Consequential Damages”) and each Party hereby waives on behalf of itself and its Affiliates any and all claims it may have against the other Party and its Affiliates and agrees to indemnify the other Party and its Affiliates from and against all claims, for its own and its Affiliates’ Consequential Damages, arising in connection with this Agreement, Regardless of Fault.  

21

Furthermore the Parties understand and agree that the indemnity obligations contained in this Agreement do not include indemnification for punitive or exemplary damages under any law or otherwise.  
Section 12.4    Insurance. In support of the indemnity obligations contained in this Agreement, each Party shall carry coverage and amounts of liability insurance of no less than $*** per occurrence.  To the extent of the liabilities assumed by the named insured herein, each Party will require their insurers to waive their right of subrogation against and add as additional insured AEP Indemnitees or DBM Indemnitees, whichever is applicable. AEP shall have the right to self-insure all or any portion of the insurance required herein, and the liability insurance may be a combination of primary insurance and excess insurance coverage.
ARTICLE XIII 
REGULATIONS AND CHOICE OF LAW
Section 13.1    Laws.  This Agreement is subject to all valid orders, laws, rules and regulations of duly constituted governmental authorities having jurisdiction or control over the Parties, their facilities or Gas supplies, this Agreement or any provisions hereof. If at any time during the period of gathering of Gas hereunder, any such governmental authority shall take or threaten to take any action as to any Party whereby the delivery, gathering, and redelivery of Gas, as contemplated hereunder, shall be proscribed or possibly subjected to terms, conditions, restraints or regulations (including without limitation by enumeration, rate or price controls or ceilings) that, in the sole judgment of the Party affected would be adverse or unduly burdensome to that Party, such Party may, upon written notice, terminate this Agreement without further liability, except as to obligations previously accrued.
Section 13.2    Choice of Law.  As to all matters of construction and interpretation, this Agreement shall be interpreted, construed and governed by the laws of the State of Texas without reference to the law regarding conflicts of law, and the venue to resolve any dispute hereunder shall be Houston, Texas.  Each Party expressly waives all rights to a trial by jury for disputes arising from or under this Agreement.
ARTICLE XIV 
WARRANTY
Section 14.1    Warranty.  AEP hereby warrants title to or the right to deliver AEP’s Gas tendered to DBM under this Agreement, and AEP agrees to indemnify DBM from all suits, actions, accounts, damages, costs, losses and expenses arising from or out of adverse claims of any or all persons regarding said Gas, its components royalties, taxes, fees, or charges thereon.

22

Section 14.2    Suspension.  DBM may, in addition to and without waiving any other rights hereunder, immediately suspend its services hereunder in the event that it has reason to believe either (i) that there is a title dispute as to Gas AEP delivered, or (ii) that any Gas delivered by AEP is being produced or delivered in violation of applicable regulations.
ARTICLE XV 
MISCELLANEOUS
Section 15.1    Assignment.  This Agreement will be binding upon and inure to the benefit of the Parties and their respective successors and assigns.  However, neither Party may transfer or assign, in whole or in part, this Agreement or its rights and obligations hereunder without the prior written consent of the other Party, which consent will not be unreasonably withheld, conditioned, or delayed; provided, however, that either Party will have the right to assign, in whole or in part, this Agreement or its rights and obligations hereunder to an Affiliate upon notice to, but without the consent of, the other Party.  An assigning Party will not be released from its obligations under this Agreement unless the assignee of the Agreement expressly assumes the obligations of the assigning Party hereunder.  No permitted assignment will affect or bind either Party until such Party has been provided notice and a copy of such assignment.
Notwithstanding the foregoing, the Parties agree and acknowledge that DBM’s consent to an AEP assignment, in whole or in part, of this Agreement in connection with the sale, transfer, or other conveyance of any Dedicated Lands to an unaffiliated third party shall be expressly conditioned upon said Dedicated Lands being subject to and bound by a Transportation Interest as described herein.  For the avoidance of doubt, any transaction (or series of transactions) which results in any Dedicated Lands no longer being owned or controlled, directly or indirectly, by Anadarko Petroleum Corporation (or any successor thereof) shall be deemed a transfer of such Dedicated Lands requiring DBM’s consent and the grant of a Transportation Interest hereunder.  The granting of the Transportation Interest by AEP (or unaffiliated third party if approved by DBM) shall be binding upon such unaffiliated third party and shall be in accordance with the general terms set forth below:
		
	(a)
	For good and valuable consideration, the receipt and sufficiency of which will be acknowledged, AEP will, to the maximum extent it has the right to do so, grant, bargain, sell, convey, transfer, assign and deliver unto DBM, from a time before the assignment until the end of the Term, unless earlier reverted in accordance with the terms of this Agreement, the sole and exclusive right to transport Gas from AEP’s assigned Dedicated Lands, specifically the right to gather, dehydrate, compress, meter and measure Gas that may be produced and saved therefrom (the “Transportation Interests”).

		
	(b)
	At the end of the Term or upon the earlier termination of this Agreement as to any Dedicated Lands in accordance with any express provision of this Agreement, all of DBM’s Transportation Interests applicable to such Dedicated Lands will revert automatically to AEP (or its assignee, as appropriate) or the other applicable owners thereof, and DBM shall execute and deliver to AEP (or its assignee, as appropriate) a recordable release and quitclaim in and to any rights, including Transportation Interests, in such Dedicated Lands.

23

		
	(c)
	The Transportation Interests conveyed to DBM will be subject to (i) the terms and conditions of this Agreement and (ii) with respect to third party non-operated interests, the rights (if any) of the owners of such interests to take in kind their share of Gas produced from the Dedicated Lands.

		
	(d)
	DBM and AEP agree, and the conveyance document shall affirmatively state, that (i) the rights and obligations respecting the Dedication and the Transportation Interest constitute a covenant running with the Interest of AEP in the Dedicated Lands, and as such shall be binding upon and enforceable by each Party and its permitted successors and assigns against the other Party and its successors and assigns respecting any part of a subject interest so assigned or conveyed, (ii) DBM and AEP intend that the conveyance of the Transportation Interests be a conveyance of a portion of AEP’s real property interests included in the Dedicated Lands (including the interests of others whose interests are represented or controlled by AEP insofar only as AEP has the power and authority to grant a Transportation Interest in the interests of such third parties), and (iii) DBM has a determinable real property interest carved out of the Dedicated Lands.

		
	(e)
	In connection with the release of Transportation Interests, if any, DBM and AEP shall execute and deliver any additional documents and instruments and perform any additional acts that may become reasonably necessary or appropriate to effectuate the reversion of such Transportation Interests.

		
	(f)
	AEP shall (and shall cause its Affiliates to) cause any conveyance of part or all of an Interest in the Dedicated Lands to be made expressly subject to this Transportation Interest and to cause all transferees to execute a written instrument in a form reasonably satisfactory to DBM acknowledging the conveyance of the Transportation Interests.  DBM shall likewise cause any assignment or conveyance of the Transportation Interests to be made expressly subject to this Agreement.  DBM and AEP shall promptly execute, acknowledge, deliver and record in the land records of the applicable jurisdiction(s) a short form Transportation Interest Conveyance in the form of Exhibit “H” (the “Conveyance”).  

Section 15.2    Agreement Structure.  All references in this Agreement to Articles, Sections, sub-Sections, Exhibits and other subdivisions refer to corresponding Articles, Sections, sub-Sections, Exhibits and other subdivisions of this Agreement unless expressly provided otherwise.  Titles appearing at the beginning of any of such subdivisions are for convenience only and will not constitute part of such subdivisions and will be disregarded in construing the language contained in such subdivisions.  The words “this Agreement”, “herein”, “hereof”, “hereby”, “hereunder” and words of similar import refer to this Agreement as a whole and not to any particular subdivision unless expressly so limited.  Words in the singular form will be construed to include the plural and vice versa, unless the context otherwise requires.  Pronouns in masculine, feminine and neuter genders will be construed to include any other gender.  Examples will not be construed to limit, expressly or by implication, the matter they illustrate.  The word “or” is not intended to be exclusive and the word “includes” and its derivatives means “includes, but is not limited to” and corresponding derivative expressions.  No consideration will be given to the fact or presumption that one Party had a greater or lesser hand in drafting this Agreement.

24

Section 15.3    Governmental Action.  If at any time after the Effective Date of this Agreement, a governmental, quasi-governmental, judicial or other authority, whether federal, state, local, international, or otherwise, takes or threatens to take any action or inaction as to any Party to this Agreement whereby the Gas, other hydrocarbon or inert substances, or any components thereof, or the transportation, or other services related thereto, will be proscribed or possibly subjected to terms, conditions, charges, fees, taxes, levies, imposts, restraints, regulations, or costs, including, without limitation, rate or price controls or ceilings, emissions or component allowances or burdens, or any other actions that would make it materially economically burdensome for one or more of the Parties, any affected Party may, upon at least thirty (30) days prior written notice to the other Party, require good faith renegotiation of the terms of this Agreement to cure, alleviate, or apportion such economic burden between the Parties. If such renegotiation does not result in mutually agreeable amended terms within sixty (60) Days following the beginning of such negotiations, the affected Party shall have the right, but not the obligation, upon at least thirty (30) Days’ additional written notice to the other Party, to terminate this Agreement.
Section 15.4    Adequate Assurance of Performance.  When reasonable grounds for insecurity of payment arise, either Party may demand adequate assurance of performance.  Adequate assurance shall mean sufficient security in the form and for the term reasonably specified by the Party demanding assurance, including, but not limited to, a standby irrevocable letter of credit or a prepayment, a security interest in an asset acceptable to the demanding Party or a performance bond or guarantee by a creditworthy entity.  If a Party fails to provide adequate assurance of performance within three (3) business Days after receipt of the other Party’s request, then the requesting Party will have the right to suspend or reduce all services and obligations under this Agreement without prior notice and without limiting any other rights or remedies available to it under this Agreement or otherwise.  If after initial failure to provide adequate assurance of performance a Party fails to cure the default by providing adequate assurance of performance within two (2) business Days, then the requesting Party shall have the right to terminate this Agreement with five (5) Days’ prior written notice to the other Party, in addition to any and all other remedies available hereunder. 
Section 15.5    Unpaid Amounts.  DBM may immediately suspend receipts from AEP hereunder in the event AEP has not paid any amount due DBM hereunder on or before the thirtieth (30th) Day following the date such payment is due or if AEP is in material breach of this Agreement.  Each Party reserves to itself all other rights, set-offs, counterclaims, and other defenses which it is or may be entitled to arising from this Agreement.
Section 15.6    Conspicuousness.  Each Party agrees that, to the extent required by applicable law to be effective, the provisions in this Agreement in bold-type are conspicuous for the purpose of any applicable law.
Section 15.7    Amendment.  Any change, modification or alteration of this Agreement shall be in writing and signed by the Parties; and, no course of dealing between the Parties shall be construed to alter the terms of this Agreement.

25

Section 15.8    No Third Party Beneficiaries.  The terms and provisions of this Agreement are for the sole benefit of AEP and DBM, and no third party is intended to benefit other than persons entitled to indemnification hereunder.
Section 15.9    Entire Agreement.  This Agreement constitutes the entire agreement between and among the Parties regarding the subject matter of this Agreement, and supersedes any other agreements, whether written or oral, that may have been made or entered into by or between the Parties relating to the transactions contemplated by this Agreement.  
Section 15.10    Further Assurances.  The Parties agree to execute such additional documents, instruments, and agreements as may be necessary to effectuate the intents and purposes of this Agreement.
Section 15.11    Counterparts.  This Agreement may be executed in any number of counterparts, each of which shall be considered an original, and all of which shall be considered one instrument.
Section 15.12    Confidentiality. The Parties agree that this Agreement and all related information and data exchanged by them shall be maintained in strict and absolute confidence and no Party shall make any public disclosure thereof, except for disclosure: (i) pursuant to the contemplated (in good faith) or actual sale, disposition or other transfer (directly or indirectly) of a Party’s rights and interest in and to this Agreement, the System, or the Gas; (ii) pursuant to the contemplated (in good faith) or actual sale or other transfer (directly or indirectly) of all or substantially all of the assets of a Party; (iii) pursuant to the contemplated (in good faith) or actual sale, disposition or other transfer (directly or indirectly) of all of the equity interests of a Party; (iv) in conjunction with a contemplated (in good faith) or actual merger, consolidation, share exchange or other form of statutory reorganization involving a Party; (v) to co-owners of the Gas, consultants, accountants, rating agencies, royalty interest owners, lenders, insurers, investors, attorneys or other representatives with a need to know such information, provided that the disclosing Party shall remain liable for any use or disclosure by such receiving person(s) which the disclosing Party was not otherwise permitted to make pursuant to this Agreement; or (vi) as required to make disclosure in compliance with any applicable law or national securities exchange rule or requirement, in which event the disclosing Party shall notify the other Party as soon as practicable. 
Section 15.13    It is the Parties’ express intent that neither this Agreement nor any course of conduct or course of performance hereunder constitutes or may be construed to constitute or create a joint venture, partnership, or any other similar arrangement between the Parties.
Section 15.14    If any provision herein is found to be unenforceable, or is required to be modified by a court or governmental authority, then only such unenforceable or modified provision is affected, and the remaining provisions herein are fully enforceable and without modification.
Section 15.15    The provisions herein survive termination of the Agreement only if expressly required to survive, or are otherwise required by their context to survive termination.

26

IN WITNESS WHEREOF, the Parties hereto have executed this Agreement as of the day and year written on the signature page hereto, to be effective as of the Effective Date.

	
					
	DELAWARE BASIN MIDSTREAM, LLC
	 
	ANADARKO E&P ONSHORE LLC

	 
	 
	 
	 
	 

	 
	 
	 
	 
	 

	By:
	/s/ Gennifer F. Kelly
	 
	By:
	/s/ Chad R. McAllaster

	Name:
	Gennifer F. Kelly
	 
	Name:
	Chad R. McAllaster

	Title:
	SVP and COO
	 
	Title:
	VP, Delaware Basin Development

	Date:
	October 8, 2018
	 
	Date:
	October 2, 2018

27

EXHIBIT “A”

GAS GATHERING AGREEMENT 
DATED JANUARY 1, 2018
BY AND BETWEEN
DELAWARE BASIN MIDSTREAM, LLC
AND
ANADARKO E&P ONSHORE LLC

Lean Gas Point(s) of Receipt

*** *** ***

A -1

EXHIBIT “B”
GAS GATHERING AGREEMENT 
DATED JANUARY 1, 2018
BY AND BETWEEN
DELAWARE BASIN MIDSTREAM, LLC
AND
ANADARKO E&P ONSHORE LLC

DBM’s Point(s) Of Delivery

*** *** ***

B -1

EXHIBIT “C”

GAS GATHERING AGREEMENT 
DATED JANUARY 1, 2018
BY AND BETWEEN
DELAWARE BASIN MIDSTREAM, LLC
AND
ANADARKO E&P ONSHORE LLC

GAS NOMINATIONS AND BALANCING

Daily Nominations.  AEP shall nominate by 10:30 a.m. five (5) Business Days prior to each Month, through DBM’s written nomination form and in accordance with DBM’s nomination procedures, the quantity of Gas per Day (“Daily Nominated Quantity”) that AEP will deliver to DBM at each Point of Receipt and/or receive at each Point of Delivery (or pipeline interconnect, if available) for that Month.  DBM, in its reasonable discretion, may accept nominations at such later time as operating conditions permit, and may waive any nomination requirement.  Intra-Day or Intra-month nominations will be made in accordance with DBM’s nomination procedures.  The quantities to be gathered shall be as agreed to by the Parties (the “Confirmed Nominations”).  DBM shall have no obligation to gather AEP’s Gas on any Day for which AEP does not have a Confirmed Nomination.  AEP shall use commercially reasonable efforts to deliver Gas to the Points of Receipt at a reasonably uniform daily rate of flow.   

Right to Balance.  The Parties agree that during the term hereof DBM shall have the right to operate its System and to accept and deliver Gas hereunder in such a manner as to maintain balance between receipts and deliveries of Gas subject to this Agreement as closely as possible.  DBM will have the right and option (i) to refuse to accept AEP’s Gas in excess of its Confirmed Nominations at the Delivery Point, and (ii) to refuse to accept Gas delivery nominations at the Delivery Point if such nominations exceed the quantity of AEP’s Gas available at the Delivery Point.

C -1

EXHIBIT “D”
GAS GATHERING AGREEMENT 
DATED JANUARY 1, 2018
BY AND BETWEEN
DELAWARE BASIN MIDSTREAM, LLC
AND
ANADARKO E&P ONSHORE LLC

Curtailment and Release Procedures
From and after the Effective Date, DBM will provide Firm Service in the System for delivered Gas.  DBM shall endeavor to regulate the flow of Gas in the quantities and at the times desired by DBM to prudently operate downstream facilities and/or to meet the fluctuating conditions of DBM’s markets.  DBM may curtail service, in whole or in part, on all or any portion or portions of the System, at any time (i) for reasons of Force Majeure incurred by DBM, (ii) when, in DBM’s reasonable judgment, capacity obligations, capacity limitations, or operating conditions so require, (iii) following reasonable notice to AEP, when it is desirable or necessary to make modifications, repairs or operating changes to the System, (iv) due to AEP’s material breach of this Agreement, or (v) for any other reason expressly permitted herein (including, for example, AEP’s delivery of Non-Conforming Gas).  In each case, DBM shall use reasonable efforts to identify and curtail only those producers whose Gas is delivered through the particular Receipt Point(s) or portion(s) of the System, which are subject to curtailment.  If DBM restricts the flow of AEP’s Gas delivered to the Points of Receipt for any reason, then, subject to DBM’s operational and capacity needs, DBM will endeavor to (y) curtail the gathering and treating of Gas which is entitled to Interruptible Service before curtailing the gathering and treating of Gas which is entitled to Dedication Service or Firm Service; and (z) to curtail the gathering and treating of Gas which is entitled to Dedication Service before curtailing the gathering and treating of Gas which is entitled to Firm Service.  
(a)    DBM may, with no liability to AEP, interrupt gathering services as necessary to test, alter, modify, enlarge, or repair any facility or property comprising a part of, appurtenant to, or otherwise relating to the operation of the System. Except in cases of unforeseen emergency, DBM shall give advance notice to AEP of its intention to interrupt services, stating the anticipated timing, duration and magnitude of each interruption in such notice.
(b)    Notwithstanding anything contained in this Agreement to the contrary, upon commercial operation of any Receipt Point, if DBM fails to take the full quantities of AEP’s Gas at such Points of Receipt (excluding (i) those instances when (A) DBM rejects AEP’s Gas because it fails to meet the quality specifications set forth in Section 5.1, (B) AEP fails to deliver Gas at a pressure sufficient to enter DBM’s System, and (ii) AEP’s material breach of this Agreement), the amount of Gas not received by DBM at such Points of Receipt shall be temporarily released from this Agreement, and AEP shall have the right to dispose of such Gas in any manner it desires, provided that such release shall terminate, and all of AEP’s Gas will again be subject to this Agreement, at such time as DBM is able to receive such Gas on a consistent basis at such Receipt Point.  

D -1

(c)    If (i) DBM suspends, curtails, is unable or fails to take receipt of any volume of AEP’s Dedicated Gas at any Point of Receipt due solely to a Force Majeure event declared by DBM (excluding ***) not caused in part or in whole by AEP, (ii) such suspension, curtailment, or failure continues with respect to the same Force Majeure event declared by DBM for more than *** (***) Days within a year; and (iii) no event has occurred or condition exists that constitutes a material breach or violation of, or a failure to comply with, this Agreement on the part of AEP which remains uncured, then AEP, at its option, may request permanent release of the affected Gas from the Dedication and the Transportation Interests insofar only with respect to such affected Gas by delivering written notice thereof to DBM (which shall be granted within five (5) business Days after DBM’s receipt of such notice).  In connection with the release of Transportation Interests pursuant to this Exhibit “D”, DBM and AEP shall execute and deliver any additional documents and instruments and perform any additional acts that may become reasonably necessary or appropriate to effectuate the reversion of Transportation Interests with respect thereto.
(d)    AEP agrees that the Gas received by DBM under this Agreement will constitute part of the supply of Gas from all sources in DBM’s System, and DBM has the right to commingle the Gas delivered by AEP pursuant to this Agreement with other Gas, to deliver molecules different from those received from AEP and, subject to DBM’s obligations hereunder, to handle the molecules received from AEP and others in any manner. 
(e)    Notwithstanding anything in this Agreement to the contrary, AEP agrees that the temporary release (set forth in (b) above) and permanent release (set forth in (c) above) shall be the sole and exclusive remedy available to AEP for DBM’s failure(s) for any reason to receive AEP’s Gas at a Point of Receipt.

D -2

EXHIBIT “E”

GAS GATHERING AGREEMENT
DATED JANUARY 1, 2018
BY AND BETWEEN
DELAWARE BASIN MIDSTREAM, LLC
AND
ANADARKO E&P ONSHORE LLC

Dedicated Lands
Notwithstanding the below, the Dedicated Lands shall not include any Interests in lands dedicated to a third party as of the Effective Date including pursuant to the following gas gathering contracts: Anadarko E&P Onshore, LLC and Delaware Basin Midstream, LLC (#20919), Anadarko E&P Onshore, LLC and Anadarko Gathering Company, LLC (#20920), and Anadarko E&P Onshore, LLC and Delaware Basin JV Gathering LLC (#20921), provided that such lands shall automatically become Dedicated Lands, without any action of either party, upon the expiration or termination of such previous dedications.  For clarity, neither AEP nor its Affiliates shall be obligated to terminate any prior dedications.

*** *** ***

E -1

 
 The following legal description and map of the Dedicated Lands are provided for ease of reference.  If there is a conflict between the above list of Dedicated Lands and the following legal descriptions and map, then the above list shall control. 

Legal Descriptions of Dedicated Lands

*** *** ***

E -2

EXHIBIT “E-1”

*** *** ***

EXHIBIT “E-2”

*** *** ***

EXHIBIT “E-3”

*** *** ***

EXHIBIT “E-4”

*** *** ***

EXHIBIT “E-5”

*** *** ***

EXHIBIT “E-6”

*** *** ***

EXHIBIT “E-7”

*** *** ***

EXHIBIT “E-8”

*** *** ***

E -3

EXHIBIT “F”
GAS GATHERING AGREEMENT
DATED JANUARY 1, 2018
BY AND BETWEEN
DELAWARE BASIN MIDSTREAM, LLC
AND
ANADARKO E&P ONSHORE LLC

COST OF SERVICE CALCULATION

The cost of service rate will be calculated pursuant to an Excel model which is maintained in the business records of DBM.  This Exhibit “F” includes an example of the output of such model.  AEP has been provided with an overview of such model and an opportunity to ask questions with respect to how it functions.

*** *** ***

F -1

EXHIBIT “G”
GAS GATHERING AGREEMENT
DATED JANUARY 1, 2018
BY AND BETWEEN
DELAWARE BASIN MIDSTREAM, LLC
AND
ANADARKO E&P ONSHORE LLC

Memorandum of Gas Gathering Agreement
	
			
	STATE OF TEXAS
	§
	 

	COUNTY OF LOVING
	§
	 

THIS MEMORANDUM OF GAS GATHERING AGREEMENT (the “Memorandum”) is made and entered into between Delaware Basin Midstream, LLC (“DBM”), and Anadarko E&P Onshore LLC (“AEP”).  Each of DBM and AEP is individually referred to herein as a “Party” and collectively as the “Parties.”  Capitalized terms not defined herein shall have the meaning set forth in the GGA. 

WHEREAS, DBM and AEP have entered into that certain Gas Gathering Agreement  (the “GGA”), dated January 1, 2018, providing for, among other things, the dedication to DBM for gathering of all Gas produced from Interests within the area depicted on, and covered by the legal descriptions described in, Exhibit “1” (the “Dedicated Lands”), now owned or hereafter acquired by AEP and/or its Affiliates, and their respective successors and assigns, that is produced from wells within the Dedicated Lands by AEP or its Affiliates; and
WHEREAS, the Parties desire to provide notice to third parties of such dedication under the GGA relating to the Dedicated Lands by entering into this Memorandum. 
NOW THEREFORE, for and in consideration of the premises and other good and valuable consideration, the Parties hereby acknowledge the following:

A.    Dedication.  The GGA exclusively dedicates to DBM all Gas located in, under or produced from or attributable to the lands located within the Dedicated Lands to the extent such Gas is produced from wells within the Dedicated Lands and is attributable to Interests now owned by AEP and/or its Affiliates and their respective successors and assigns, subject to the terms of the GGA.  
B.    Term of GGA.   The initial term of the GGA commenced on January 1, 2018, and shall, unless earlier terminated, remain in full force and effect through December 31, 2032, and from Year to Year thereafter until canceled by either Party.
C.    Successors and Assigns.  The GGA is binding upon and shall inure to the benefit of each Party, its successors and permitted assigns.  

G-1

D.    Recordation.  Each Party authorizes the other Party to record this Memorandum in the public records of each county where any portion of the Dedicated Lands is located and shall serve as notice of the existence of the GGA and the Dedication contained therein.
E.    Amendments.  No amendment, change or modification of any of the terms, provisions or conditions of the GGA or this Memorandum, nor any waiver of rights hereunder, shall be effective unless made in writing and executed on behalf of the Parties or their duly authorized representatives.
F.    Additional Information.  Should any person desire additional information regarding the GGA, said person should contact DBM by writing to: Midstream Contract Administration at midstreamcs@anadarko.com.
G.    Counterparts.  This Memorandum may be executed by the Parties in any number of original counterparts, all of which collectively shall be considered one and the same instrument.
		
	H.
	Covenant.  The Agreement constitutes a covenant running with the land and shall inure to the benefit of and be binding upon the parties hereto and their respective successors and assigns.

		
	I.
	Notice. By this Memorandum, all parties dealing with the Dedicated Lands are hereby put on notice as to the rights and obligations of AEP and DBM under the Agreement.

In the event of any conflict between the provisions of this Memorandum and the provisions of the Agreement, the provisions of the Agreement shall control.

IN WITNESS WHEREOF, this Memorandum has been executed by the Parties hereto as of the dates of their respective acknowledgements below.

	
					
	DELAWARE BASIN MIDSTREAM, LLC
	 
	ANADARKO E&P ONSHORE LLC

	 
	 
	 
	 
	 

	 
	 
	 
	 
	 

	By:
	 
	 
	By:
	 

	Name:
	 
	 
	Name:
	 

	Title:
	 
	 
	Title:
	 

G-2

ACKNOWLEDGMENTS
	
			
	STATE OF TEXAS
	§
	 

	 
	§
	 

	COUNTY OF
	§
	 

Acknowledged and appeared before me, a Notary Public in and for said state, on the __ day of __________, 2018, _________________ (name), _________________ (title) of Delaware Basin Midstream, LLC, personally known to me to be the same person who signed the above and foregoing instrument, and upon oath, duly sworn, stated that he/she above ascribed his/her name hereto as the _________________ (title) of said company as the free and voluntary act thereof.
	
			
	 
	 
	 

	 
	Notary Public

	 
	My commission expires:
	 

	
			
	STATE OF TEXAS
	§
	 

	 
	§
	 

	COUNTY OF
	§
	 

Acknowledged and appeared before me, a Notary Public in and for said state, on the __ day of __________, 2018, _________________ (name), _________________ (title) of Anadarko E&P Onshore LLC, personally known to me to be the same person who signed the above and foregoing instrument, and upon oath, duly sworn, stated that he/she above ascribed his/her name hereto as the _________________ (title) of said company as the free and voluntary act thereof.
	
			
	 
	 
	 

	 
	Notary Public

	 
	My commission expires:
	 

G-3

EXHIBIT 1
to the
GAS GATHERING AGREEMENT RECORDING MEMORANDUM 
Dedicated Lands

Notwithstanding the below, the Dedicated Lands shall not include any Interests in lands dedicated to a third party as of the Effective Date, provided that such lands shall automatically become Dedicated Lands, without any action of either party, upon the expiration or termination of such previous dedications.  For clarity, neither AEP nor its Affiliates shall be obligated to terminate any prior dedications. 

G-1

EXHIBIT “G”
GAS GATHERING AGREEMENT
DATED JANUARY 1, 2018
BY AND BETWEEN
DELAWARE BASIN MIDSTREAM, LLC
AND
ANADARKO E&P ONSHORE LLC

Memorandum of Gas Gathering Agreement
	
			
	STATE OF TEXAS
	§
	 

	COUNTY OF REEVES
	§
	 

THIS MEMORANDUM OF GAS GATHERING AGREEMENT (the “Memorandum”) is made and entered into between Delaware Basin Midstream, LLC (“DBM”), and Anadarko E&P Onshore LLC (“AEP”).  Each of DBM and AEP is individually referred to herein as a “Party” and collectively as the “Parties.”  Capitalized terms not defined herein shall have the meaning set forth in the GGA. 

WHEREAS, DBM and AEP have entered into that certain Gas Gathering Agreement  (the “GGA”), dated January 1, 2018, providing for, among other things, the dedication to DBM for gathering of all Gas produced from Interests within the area depicted on, and covered by the legal descriptions described in, Exhibit “1” (the “Dedicated Lands”), now owned or hereafter acquired by AEP and/or its Affiliates, and their respective successors and assigns, that is produced from wells within the Dedicated Lands by AEP or its Affiliates; and
WHEREAS, the Parties desire to provide notice to third parties of such dedication under the GGA relating to the Dedicated Lands by entering into this Memorandum. 
NOW THEREFORE, for and in consideration of the premises and other good and valuable consideration, the Parties hereby acknowledge the following:
J.Dedication.  The GGA exclusively dedicates to DBM all Gas located in, under or produced from or attributable to the lands located within the Dedicated Lands to the extent such Gas is produced from wells within the Dedicated Lands and is attributable to Interests now owned by AEP and/or its Affiliates and their respective successors and assigns, subject to the terms of the GGA.  
K.    Term of GGA.   The initial term of the GGA commenced on January 1, 2018, and shall, unless earlier terminated, remain in full force and effect through December 31, 2032, and from Year to Year thereafter until canceled by either Party.
L.    Successors and Assigns.  The GGA is binding upon and shall inure to the benefit of each Party, its successors and permitted assigns.  
M.    Recordation.  Each Party authorizes the other Party to record this Memorandum in the public records of each county where any portion of the Dedicated Lands is located and shall serve as notice of the existence of the GGA and the Dedication contained therein.

G-2

N.    Amendments.  No amendment, change or modification of any of the terms, provisions or conditions of the GGA or this Memorandum, nor any waiver of rights hereunder, shall be effective unless made in writing and executed on behalf of the Parties or their duly authorized representatives.
O.    Additional Information.  Should any person desire additional information regarding the GGA, said person should contact DBM by writing to: Midstream Contract Administration at midstreamcs@anadarko.com.
P.    Counterparts.  This Memorandum may be executed by the Parties in any number of original counterparts, all of which collectively shall be considered one and the same instrument.
		
	Q.
	Covenant.  The Agreement constitutes a covenant running with the land and shall inure to the benefit of and be binding upon the parties hereto and their respective successors and assigns.

		
	R.
	Notice. By this Memorandum, all parties dealing with the Dedicated Lands are hereby put on notice as to the rights and obligations of AEP and DBM under the Agreement.

In the event of any conflict between the provisions of this Memorandum and the provisions of the Agreement, the provisions of the Agreement shall control.

IN WITNESS WHEREOF, this Memorandum has been executed by the Parties hereto as of the dates of their respective acknowledgements below.

	
					
	DELAWARE BASIN MIDSTREAM, LLC
	 
	ANADARKO E&P ONSHORE LLC

	 
	 
	 
	 
	 

	 
	 
	 
	 
	 

	By:
	 
	 
	By:
	 

	Name:
	 
	 
	Name:
	 

	Title:
	 
	 
	Title:
	 

G-3

ACKNOWLEDGMENTS
	
			
	STATE OF TEXAS
	§
	 

	 
	§
	 

	COUNTY OF
	§
	 

Acknowledged and appeared before me, a Notary Public in and for said state, on the __ day of __________, 2018, _________________ (name), _________________ (title) of Delaware Basin Midstream, LLC, personally known to me to be the same person who signed the above and foregoing instrument, and upon oath, duly sworn, stated that he/she above ascribed his/her name hereto as the _________________ (title) of said company as the free and voluntary act thereof.
	
			
	 
	 
	 

	 
	Notary Public

	 
	My commission expires:
	 

	
			
	STATE OF TEXAS
	§
	 

	 
	§
	 

	COUNTY OF
	§
	 

Acknowledged and appeared before me, a Notary Public in and for said state, on the __ day of __________, 2018, _________________ (name), _________________ (title) of Anadarko E&P Onshore LLC, personally known to me to be the same person who signed the above and foregoing instrument, and upon oath, duly sworn, stated that he/she above ascribed his/her name hereto as the _________________ (title) of said company as the free and voluntary act thereof.
	
			
	 
	 
	 

	 
	Notary Public

	 
	My commission expires:
	 

G-4

EXHIBIT 1
to the
GAS GATHERING AGREEMENT RECORDING MEMORANDUM 
Dedicated Lands

Notwithstanding the below, the Dedicated Lands shall not include any Interests in lands dedicated to a third party as of the Effective Date, provided that such lands shall automatically become Dedicated Lands, without any action of either party, upon the expiration or termination of such previous dedications.  For clarity, neither AEP nor its Affiliates shall be obligated to terminate any prior dedications. 

G-1

EXHIBIT “G”
GAS GATHERING AGREEMENT
DATED JANUARY 1, 2018
BY AND BETWEEN
DELAWARE BASIN MIDSTREAM, LLC
AND
ANADARKO E&P ONSHORE LLC

Memorandum of Gas Gathering Agreement
	
			
	STATE OF TEXAS
	§
	 

	COUNTY OF WARD
	§
	 

THIS MEMORANDUM OF GAS GATHERING AGREEMENT (the “Memorandum”) is made and entered into between Delaware Basin Midstream, LLC (“DBM”), and Anadarko E&P Onshore LLC (“AEP”).  Each of DBM and AEP is individually referred to herein as a “Party” and collectively as the “Parties.”  Capitalized terms not defined herein shall have the meaning set forth in the GGA. 

WHEREAS, DBM and AEP have entered into that certain Gas Gathering Agreement  (the “GGA”), dated January 1, 2018, providing for, among other things, the dedication to DBM for gathering of all Gas produced from Interests within the area depicted on, and covered by the legal descriptions described in, Exhibit “1” (the “Dedicated Lands”), now owned or hereafter acquired by AEP and/or its Affiliates, and their respective successors and assigns, that is produced from wells within the Dedicated Lands by AEP or its Affiliates; and
WHEREAS, the Parties desire to provide notice to third parties of such dedication under the GGA relating to the Dedicated Lands by entering into this Memorandum. 
NOW THEREFORE, for and in consideration of the premises and other good and valuable consideration, the Parties hereby acknowledge the following:

S.    Dedication.  The GGA exclusively dedicates to DBM all Gas located in, under or produced from or attributable to the lands located within the Dedicated Lands to the extent such Gas is produced from wells within the Dedicated Lands and is attributable to Interests now owned by AEP and/or its Affiliates and their respective successors and assigns, subject to the terms of the GGA.  

T.    Term of GGA.   The initial term of the GGA commenced on January 1, 2018, and shall, unless earlier terminated, remain in full force and effect through December 31, 2032, and from Year to Year thereafter until canceled by either Party.
U.    Successors and Assigns.  The GGA is binding upon and shall inure to the benefit of each Party, its successors and permitted assigns.  

G-2

V.    Recordation.  Each Party authorizes the other Party to record this Memorandum in the public records of each county where any portion of the Dedicated Lands is located and shall serve as notice of the existence of the GGA and the Dedication contained therein.
W.    Amendments.  No amendment, change or modification of any of the terms, provisions or conditions of the GGA or this Memorandum, nor any waiver of rights hereunder, shall be effective unless made in writing and executed on behalf of the Parties or their duly authorized representatives.
X.    Additional Information.  Should any person desire additional information regarding the GGA, said person should contact DBM by writing to: Midstream Contract Administration at midstreamcs@anadarko.com.
Y.    Counterparts.  This Memorandum may be executed by the Parties in any number of original counterparts, all of which collectively shall be considered one and the same instrument.
		
	Z.
	Covenant.  The Agreement constitutes a covenant running with the land and shall inure to the benefit of and be binding upon the parties hereto and their respective successors and assigns.

		
	AA.
	Notice. By this Memorandum, all parties dealing with the Dedicated Lands are hereby put on notice as to the rights and obligations of AEP and DBM under the Agreement.

In the event of any conflict between the provisions of this Memorandum and the provisions of the Agreement, the provisions of the Agreement shall control.

IN WITNESS WHEREOF, this Memorandum has been executed by the Parties hereto as of the dates of their respective acknowledgements below.

	
					
	DELAWARE BASIN MIDSTREAM, LLC
	 
	ANADARKO E&P ONSHORE LLC

	 
	 
	 
	 
	 

	 
	 
	 
	 
	 

	By:
	 
	 
	By:
	 

	Name:
	 
	 
	Name:
	 

	Title:
	 
	 
	Title:
	 

G-3

ACKNOWLEDGMENTS
	
			
	STATE OF TEXAS
	§
	 

	 
	§
	 

	COUNTY OF
	§
	 

Acknowledged and appeared before me, a Notary Public in and for said state, on the __ day of __________, 2018, _________________ (name), _________________ (title) of Delaware Basin Midstream, LLC, personally known to me to be the same person who signed the above and foregoing instrument, and upon oath, duly sworn, stated that he/she above ascribed his/her name hereto as the _________________ (title) of said company as the free and voluntary act thereof.
	
			
	 
	 
	 

	 
	Notary Public

	 
	My commission expires:
	 

	
			
	STATE OF TEXAS
	§
	 

	 
	§
	 

	COUNTY OF
	§
	 

Acknowledged and appeared before me, a Notary Public in and for said state, on the __ day of __________, 2018, _________________ (name), _________________ (title) of Anadarko E&P Onshore LLC, personally known to me to be the same person who signed the above and foregoing instrument, and upon oath, duly sworn, stated that he/she above ascribed his/her name hereto as the _________________ (title) of said company as the free and voluntary act thereof.
	
			
	 
	 
	 

	 
	Notary Public

	 
	My commission expires:
	 

G-4

EXHIBIT 1
to the
GAS GATHERING AGREEMENT RECORDING MEMORANDUM 
Dedicated Lands

Notwithstanding the below, the Dedicated Lands shall not include any Interests in lands dedicated to a third party as of the Effective Date, provided that such lands shall automatically become Dedicated Lands, without any action of either party, upon the expiration or termination of such previous dedications.  For clarity, neither AEP nor its Affiliates shall be obligated to terminate any prior dedications. 

G-1

EXHIBIT “G”
GAS GATHERING AGREEMENT
DATED JANUARY 1, 2018
BY AND BETWEEN
DELAWARE BASIN MIDSTREAM, LLC
AND
ANADARKO E&P ONSHORE LLC

Memorandum of Gas Gathering Agreement
	
			
	STATE OF TEXAS
	§
	 

	COUNTY OF WINKLER
	§
	 

THIS MEMORANDUM OF GAS GATHERING AGREEMENT (the “Memorandum”) is made and entered into between Delaware Basin Midstream, LLC (“DBM”), and Anadarko E&P Onshore LLC (“AEP”).  Each of DBM and AEP is individually referred to herein as a “Party” and collectively as the “Parties.”  Capitalized terms not defined herein shall have the meaning set forth in the GGA. 

WHEREAS, DBM and AEP have entered into that certain Gas Gathering Agreement  (the “GGA”), dated January 1, 2018, providing for, among other things, the dedication to DBM for gathering of all Gas produced from Interests within the area depicted on, and covered by the legal descriptions described in, Exhibit “1” (the “Dedicated Lands”), now owned or hereafter acquired by AEP and/or its Affiliates, and their respective successors and assigns, that is produced from wells within the Dedicated Lands by AEP or its Affiliates; and
WHEREAS, the Parties desire to provide notice to third parties of such dedication under the GGA relating to the Dedicated Lands by entering into this Memorandum. 
NOW THEREFORE, for and in consideration of the premises and other good and valuable consideration, the Parties hereby acknowledge the following:

BB.    Dedication.  The GGA exclusively dedicates to DBM all Gas located in, under or produced from or attributable to the lands located within the Dedicated Lands to the extent such Gas is produced from wells within the Dedicated Lands and is attributable to Interests now owned by AEP and/or its Affiliates and their respective successors and assigns, subject to the terms of the GGA.  

CC.    Term of GGA.   The initial term of the GGA commenced on January 1, 2018, and shall, unless earlier terminated, remain in full force and effect through December 31, 2032, and from Year to Year thereafter until canceled by either Party.
DD.    Successors and Assigns.  The GGA is binding upon and shall inure to the benefit of each Party, its successors and permitted assigns.  

G-2

EE.    Recordation.  Each Party authorizes the other Party to record this Memorandum in the public records of each county where any portion of the Dedicated Lands is located and shall serve as notice of the existence of the GGA and the Dedication contained therein.
FF.    Amendments.  No amendment, change or modification of any of the terms, provisions or conditions of the GGA or this Memorandum, nor any waiver of rights hereunder, shall be effective unless made in writing and executed on behalf of the Parties or their duly authorized representatives.
GG.    Additional Information.  Should any person desire additional information regarding the GGA, said person should contact DBM by writing to: Midstream Contract Administration at midstreamcs@anadarko.com.
HH.    Counterparts.  This Memorandum may be executed by the Parties in any number of original counterparts, all of which collectively shall be considered one and the same instrument.
		
	II.
	Covenant.  The Agreement constitutes a covenant running with the land and shall inure to the benefit of and be binding upon the parties hereto and their respective successors and assigns.

		
	JJ.
	Notice. By this Memorandum, all parties dealing with the Dedicated Lands are hereby put on notice as to the rights and obligations of AEP and DBM under the Agreement.

In the event of any conflict between the provisions of this Memorandum and the provisions of the Agreement, the provisions of the Agreement shall control.

IN WITNESS WHEREOF, this Memorandum has been executed by the Parties hereto as of the dates of their respective acknowledgements below.

	
					
	DELAWARE BASIN MIDSTREAM, LLC
	 
	ANADARKO E&P ONSHORE LLC

	 
	 
	 
	 
	 

	 
	 
	 
	 
	 

	By:
	 
	 
	By:
	 

	Name:
	 
	 
	Name:
	 

	Title:
	 
	 
	Title:
	 

G-3

ACKNOWLEDGMENTS
	
			
	STATE OF TEXAS
	§
	 

	 
	§
	 

	COUNTY OF
	§
	 

Acknowledged and appeared before me, a Notary Public in and for said state, on the __ day of __________, 2018, _________________ (name), _________________ (title) of Delaware Basin Midstream, LLC, personally known to me to be the same person who signed the above and foregoing instrument, and upon oath, duly sworn, stated that he/she above ascribed his/her name hereto as the _________________ (title) of said company as the free and voluntary act thereof.
	
			
	 
	 
	 

	 
	Notary Public

	 
	My commission expires:
	 

	
			
	STATE OF TEXAS
	§
	 

	 
	§
	 

	COUNTY OF
	§
	 

Acknowledged and appeared before me, a Notary Public in and for said state, on the __ day of __________, 2018, _________________ (name), _________________ (title) of Anadarko E&P Onshore LLC, personally known to me to be the same person who signed the above and foregoing instrument, and upon oath, duly sworn, stated that he/she above ascribed his/her name hereto as the _________________ (title) of said company as the free and voluntary act thereof.
	
			
	 
	 
	 

	 
	Notary Public

	 
	My commission expires:
	 

G-4

EXHIBIT 1
to the
GAS GATHERING AGREEMENT RECORDING MEMORANDUM 
Dedicated Lands

Notwithstanding the below, the Dedicated Lands shall not include any Interests in lands dedicated to a third party as of the Effective Date, provided that such lands shall automatically become Dedicated Lands, without any action of either party, upon the expiration or termination of such previous dedications.  For clarity, neither AEP nor its Affiliates shall be obligated to terminate any prior dedications. 

Memorandum -1

EXHIBIT “H”
GAS GATHERING AGREEMENT
DATED JANUARY 1, 2018
BY AND BETWEEN
DELAWARE BASIN MIDSTREAM, LLC
AND
ANADARKO E&P ONSHORE LLC

FORM OF TRANSPORTATION INTEREST CONVEYANCE
THIS TRANSPORTATION INTEREST CONVEYANCE (the “Conveyance”) is made and entered into between Delaware Basin Midstream, LLC (“DBM”) and Anadarko E&P Onshore LLC (“AEP”).  Each of DBM and AEP is individually referred to herein as a “Party” and collectively as the “Parties.”  Capitalized terms not defined herein shall have the meaning set forth in the Gathering Agreement (as defined below). 
WHEREAS, DBM and AEP have entered into that certain Gas Gathering Agreement (the “Gathering Agreement”), dated effective January 1, 2018, providing for, among other things, the dedication to DBM for gathering of all Gas produced from Interests in the Dedicated Lands; and
WHEREAS, AEP desires to hereby grant to DBM a Transportation Interest in a portion of the Dedicated Lands (the “Subject Lands”) as shown on Attachment 1 hereto.  
NOW THEREFORE, for and in consideration of the premises of this Conveyance and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties hereby agree as follows:
KK.    Dedication.  The Gathering Agreement exclusively dedicates to DBM all Gas located in, under or produced from or attributable to the lands located within the Subject Lands to the extent such Gas is produced from wells within the Subject Lands and is attributable to Interests now owned by AEP and/or its Affiliates and their respective successors and assigns, subject to the terms of the Gathering Agreement.  “Interests” means any right, title or interest of any nature in and to oil and gas leases to the extent, and only to the extent, such right, title or interest relates to the right to dispose of Gas.  In furtherance of, and as an inseparable part of, the foregoing dedication, AEP and its Affiliates hereby GRANT, TRANSFER AND CONVEY, from and out of AEP’s and its Affiliates’ Interests, to DBM, effective on [DATE], the exclusive right to gather, dehydrate, compress,  meter and measure all of AEP’s and its Affiliates’ Dedicated Gas (the “Transportation Interests”) for the Term of the Gathering Agreement, and AEP hereby acknowledges and agrees that such dedication and the grant, transfer and conveyance of the Transportation Interests are intended to be (i) a covenant running with the lands located within the Dedicated Lands that is binding on all successors and assigns of AEP and its Affiliates and (ii) a conveyance of a portion of AEP’s real property interests included in the Dedicated Lands (including the interests of others whose interests are represented or controlled by AEP insofar only as AEP has the power and authority to grant Transportation Interests in the interests of such third parties).  DBM and AEP acknowledge and agree that DBM has a determinable real property interest carved out of the Dedicated Lands.  THE TRANSPORTATION INTERESTS SHALL AUTOMATICALLY TERMINATE AND REVERT TO AEP AND ITS AFFILIATES, AND THEIR RESPECTIVE SUCCESSORS AND ASSIGNS, AND DBM SHALL BE AUTOMATICALLY DIVESTED OF TITLE AND ANY RIGHTS TO THE TRANSPORTATION INTERESTS, WITHOUT ANY ACTION BY THE PARTIES, UPON THE EARLIER OF THE TERMINATION OF THE GATHERING AGREEMENT AND THE EXPIRATION OF THE TERM OF THE GATHERING AGREEMENT.  DBM MAY NOT SEPARATE OR CONVEY THE 

H-1

TRANSPORTATION INTERESTS SEPARATE AND APART FROM DBM’S OTHER RIGHTS UNDER THE GATHERING AGREEMENT.   
LL.    The Transportation Interests conveyed herein are subject to (i) the terms and conditions of the Gathering Agreement and (ii) with respect to the third party non-operated Interests, the rights (if any) of the owners of such Interests to take in kind their share of Gas produced from the Subject Lands. 
MM.    Term of Gathering Agreement.   The initial term of the Gathering Agreement commenced on January 1, 2018, and shall, unless earlier terminated, remain in full force and effect through for fifteen (15) years, and from year to year thereafter until canceled by either Party.
NN.    Successors and Assigns.  The Gathering Agreement is binding upon and shall inure to the benefit of each Party, its successors and permitted assigns.  
OO.    Recordation.  Each Party authorizes the other Party to record this Conveyance in the public records of each county where any portion of the Dedicated Lands is located, to serve as notice of the existence of the Gathering Agreement, the Dedication contained therein and the Transportation Interests.
PP.    Amendments.  No amendment, change or modification of any of the terms, provisions or conditions of the Gathering Agreement or this Conveyance, nor any waiver of rights hereunder, shall be effective unless made in writing and executed on behalf of the Parties or their duly authorized representatives.
QQ.    Additional Information.  Should any person desire additional information regarding the Gathering Agreement or the Transportation Interests, said person should contact DBM by writing to: MidstreamCA@anadarko.com.
RR.    Counterparts.  This Conveyance may be executed by the Parties in any number of original counterparts, all of which collectively shall be considered one and the same instrument.
SS.    Covenant.  This Conveyance and the Transportation Interests constitute a covenant running with the land and shall inure to the benefit of and be binding upon the parties hereto and their respective successors and assigns.
TT.    Notice. By this Conveyance, all parties dealing with the Dedicated Lands are hereby put on notice as to the rights and obligations of AEP and DBM under the Gathering Agreement. 
In the event of any conflict between the provisions of this Conveyance and the provisions of the Gathering Agreement, the provisions of the Gathering Agreement shall control.

H-2

EXECUTED this the _____ day of ____________, 20__, by AEP and DBM.

	
					
	DBM
	 
	 
	AEP
	 

	Delaware Basin Midstream, LLC
	 
	Anadarko E&P Onshore LLC

	 
	 
	 
	 
	 

	 
	 
	 
	 
	 

	By:
	 
	 
	By:
	 

	Name:
	 
	 
	Name:
	 

	Title:
	 
	 
	Title:
	 

H-3

	
			
	STATE OF
	§
	 

	 
	§
	 

	COUNTY OF
	§
	 

Appeared before me, a Notary Public in and for said state, on the __ day of __________, 20__, _________________ (name), _________________ (title) of Anadarko E&P Onshore LLC, personally known to me to be the same person who signed the above and foregoing instrument, and upon oath, duly sworn, stated that he/she above ascribed his/her name hereto as the _________________ (title) of said company as the free and voluntary act thereof.
	
			
	 
	 
	 

	 
	Notary Public

	 
	My commission expires:
	 

	
			
	STATE OF
	§
	 

	 
	§
	 

	COUNTY OF
	§
	 

Appeared before me, a Notary Public in and for said state, on the __ day of __________, 20__, _________________ (name), _________________ (title) of APC Water Holdings 1, LLC, personally known to me to be the same person who signed the above and foregoing instrument, and upon oath, duly sworn, stated that he/she above ascribed his/her name hereto as the _________________ (title) of said company as the free and voluntary act thereof.
	
			
	 
	 
	 

	 
	Notary Public

	 
	My commission expires:
	 

H-4

Attachment 1 
to the 
Transportation Interest Conveyance
Anadarko E&P Onshore LLC and Delaware Basin Midstream, LLC
Dated __________

SUBJECT LANDS 
[ADD MAP OR LAND DESCRIPTION]

H-5Exhibit 10.1

 

 

SHARE EXCHANGE AGREEMENT

 

THIS SHARE EXCHANGE AGREEMENT (the "Agreement")
is made by and among, Big Time Holdings, Inc., a Delaware corporation, with offices located at 8200 Seminole Boulevard, Seminole,
Florida 3772 (the "Company"), and Turner Wright Ltd. and is effective as of the last date of execution set forth below.
(the "Seller"), on behalf of its shareholders, both parties are hereinafter referred to as the "Parties".

 

RECITALS

 

a)          WHEREAS, The Boards of Directors of the Company and Seller have determined that an acquisition of 70% of the outstanding
shares of the Seller by the Company through a share exchange (the "Exchange") upon the terms and subject to the conditions
set forth in this Agreement, would be fair and in the best interests of the Company and the Seller, and the Boards of Directors
of the Company and the Seller have approved such Exchange, pursuant to which all of the right, title and interest in and to 70%
of the outstanding common stock of the Seller (the "Shares") will be exchanged for the right to receive 1,250,000 (one
million two hundred and fifty thousand) shares of common stock of the Company (the "Exchange Shares"); and

 

b)           WHEREAS,
For federal income tax purposes, the Parties intend that the Exchange shall qualify as reorganization under the provisions
of Section 368(a)(1)(B) of the Internal Revenue Code of 1986, as amended (the "Code").

 

NOW, THEREFORE, in consideration
of the representations, warranties, covenants and agreements contained in this Agreement, the Parties agree as follows:

 

ARTICLE I

 

THE EXCHANGE

 

1.01       Exchange. Upon the
terms and subject to the conditions set forth in this Agreement, and in accordance with the 2018 Delaware General Corporate Law
(the "Delaware Law"), at the Closing (as hereinafter defined), the Parties shall do the following:

 

	 	a)	The shareholders of the Seller will sell, convey, assign, and transfer the Shares to the Company by delivering to the Company
executed and transferable certificates. The Shares transferred to the Company at the Closing shall constitute 70% of all issued
and outstanding shares of common stock of the Seller.

 

	 	b)	As consideration for its acquisition of the Shares, the Company
                                shall issue the Exchange Shares to the Seller by delivering a share certificate to the Company
                                evidencing the Exchange Shares (the "Exchange Shares Certificate"), with 100,000,000
                                (one hundred million) shares held in escrow to be issued against the drawdown of funds as set
                                forth in Article III hereof. As funds are drawn down, restricted shares shall be released from
                                escrow.

 

	 	c)	For federal income tax purposes, the Exchange is intended to constitute a "reorganization"
within the meaning of Section 368 of the Code, and the Parties shall report the transactions contemplated by this Agreement consistent
with such intent and shall take no position in any Tax filing or legal proceeding inconsistent therewith. The Parties to this Agreement
hereby adopt this Agreement as a "Plan of Reorganization" within the meaning of Sections 1.368-2(g) and 1.368-3(a) of
the United States Treasury Regulations. None of the Company or the Seller has taken or failed to take, and after the Effective
Time (as defined below), the Company shall not take or fail to take, any action which reasonably could be expected to cause the
Exchange to fail to qualify as a "reorganization" within the meaning of Section 368(a) of the Code.

 

1.02       Effect
of the Exchange. The Exchange shall have the effects set forth in the applicable provisions of the Florida Statutes.

 

 

 

    	 	1	 

     

    

 

1.03       Closing.
Unless this Agreement shall have been terminated and the transactions herein contemplated shall have been abandoned pursuant
to Article V and subject to the satisfaction or waiver of the conditions set forth in Article IV, the closing of the Exchange
(the "Closing") will take place at 10:00 a.m. U.S. Eastern Daylight Time on the business day upon satisfaction of the
conditions set forth in Article IV (or as soon as practicable thereafter) following satisfaction or waiver of the conditions set
forth in Article IV (the "Closing Date"), at the offices of the Company unless another date, time or place is agreed
to in writing by the Parties hereto. The Closing Date shall occur subject to the Company's filing of all required disclosures,
forms and financial statements with the United States Securities and Exchange Commission.

 

1.04       Effective
Time of Exchange. As soon as practicable following the satisfaction or waiver of the conditions set forth in Article IV,
the Parties shall make all filings or recordings required under the Delaware Law. The Exchange shall become effective at such time
as is permissible in accordance with the Florida Statutes (the time the Exchange becomes effective being the "Effective Time").
The Company and the Seller shall use reasonable efforts to have the Closing Date and the Effective Time to be the same day.

 

ARTICLE II

 

REPRESENTATIONS AND WARRANTIES

 

2.01       Representations and Warranties
of the Company. Except as set forth in the disclosure schedule delivered by the Seller to the Company at the time of execution
of this Agreement (the "Seller Disclosure Schedule"), the Seller represents and warrants to the Company as follows:

 

		(a)	Organization. Standing and Power. The Seller is duly organized, validly existing and in
good standing under the laws of the State of Delaware and has the requisite power and authority and all government licenses, authorizations,
permits, consents and approvals required to own, lease and operate its properties and carry on its business as now being conducted.
The Seller is duly qualified or licensed to do business and is in good standing in each jurisdiction in which the nature of its
business or the ownership or leasing of its properties makes such qualification or licensing necessary, other than in such jurisdictions
where the failure to be so qualified or licensed (individually or in the aggregate) would not have a material adverse effect.

 

		(b)	Subsidiaries. The Seller does [not] own directly or indirectly, any equity or other shares
in any company, corporation, partnership, joint venture or otherwise.

 

		(c)	The Shares. The Shares represent 70% of the issued and outstanding shares capital stock
of the Seller. There are no outstanding bonds, debentures, notes or other indebtedness or other securities of the Seller. There
are no rights, commitments, agreements, arrangements or undertakings of any kind to which the Seller is a party or by which it
is bound obligating the Seller to issue, deliver or sell, or cause to be issued, delivered or sold, additional shares of the Seller
or obligating the Seller to issue, grant, extend or enter into any such right, commitment, agreement, arrangement or undertaking.
There are no outstanding contractual obligations, commitments, understandings or arrangements of the Seller to repurchase, redeem
or otherwise acquire or make any payment in respect of the shares of the Seller.

 

		(d)	

 

 

		(e)	Authority;
Noncontravention. The Seller has all requisite power and authority to enter into this Agreement and to consummate the transactions
contemplated by this Agreement. The execution and delivery of this Agreement by the Seller and the consummation by the Seller
of the transactions contemplated hereby have been (or at Closing will have been) duly authorized by all necessary action on the
part of the Seller. This Agreement has been duly executed and when delivered by the Seller shall constitute a valid and binding
obligation of the Seller, enforceable against the Seller and the selling shareholders, as applicable, in accordance with its terms,
except as such enforcement may be limited by bankruptcy, insolvency or other similar laws affecting the enforcement of creditors'
rights generally or by general principles of equity. The execution and delivery of this Agreement do not, and the consummation of the transactions contemplated by this Agreement and compliance with the provisions hereof will not, conflict with, or result in any breach or violation of, or default (with or without notice or lapse of time, or both) under, or give rise to a right of termination, cancellation or acceleration of or "put" right with respect to any obligation or to a loss of a material benefit under, or result in the creation of any lien upon any of the properties or assets of the Seller under, (i) the Seller Seller's articles of incorporation or bylaws, if any, (ii) any loan or credit agreement, note, bond, mortgage, indenture, lease or other agreement, instrument, permit, concession, franchise or license applicable to the Seller, its properties or assets, or (iii) subject to the governmental filings and other matters referred to in the following sentence, any judgment, order, decree, statute, law, ordinance, rule, regulation or arbitration award applicable to the Seller, its properties or assets, other than, in the case of clauses (ii) and (iii), any such conflicts, breaches, violations, defaults, rights, losses or liens that individually or in the aggregate could not have a material adverse effect with respect to the Seller or could not prevent, hinder or materially delay the ability of the Seller to consummate the transactions contemplated by this Agreement.

                                                                                

 

 

 

    	 	2	 

     

    

 

	 	(f)	Governmental Authorization. No consent, approval, order or authorization of, or
    registration, declaration or filing with, or notice to, any United States court, administrative agency or commission, or
    other federal, state or local government or other governmental authority, agency, domestic or foreign (a "Governmental
    Entity"), is required by or with respect to the duly executed and when delivered by the Seller shall constitute a valid
    and binding obligation of the Seller, enforceable against the Seller and the selling shareholders, as applicable, in
    accordance with its terms, except as such enforcement may be limited by bankruptcy, insolvency or other similar laws
    affecting the enforcement of creditors' rights generally or by general principles of equity. The execution and delivery of
    this Agreement do not, and the consummation of the transactions contemplated by this Agreement and compliance with the
    provisions hereof will not, conflict with, or result in any breach or violation of, or default (with or without notice or
    lapse of time, or both) under, or give rise to a right of termination, cancellation or acceleration of or "put"
    right with respect to any obligation or to a loss of a material benefit under, or result in the creation of any lien upon any
    of the properties or assets of the Seller under, (i) the Seller Seller's articles of incorporation or bylaws, if any, (ii)
    any loan or credit agreement, note, bond, mortgage, indenture, lease or other agreement, instrument, permit, concession,
    franchise or license applicable to the Seller, its properties or assets, or (iii) subject to the governmental filings and
    other matters referred to in the following sentence, any judgment, order, decree, statute, law, ordinance, rule,
    regulation or arbitration award applicable to the Seller, its properties or assets, other than, in the case of clauses (ii)
    and (iii), any such conflicts, breaches, violations, defaults, rights, losses or liens that individually or in the aggregate
    could not have a material adverse effect with respect to the Seller or could not prevent, hinder or materially delay the
    ability of the Seller to consummate the transactions contemplated by this Agreement .Seller in connection with the execution
    and delivery of this Agreement by the Seller or the consummation by the Seller of the transactions contemplated hereby,
    except, with respect to this Agreement, any filings under the Securities Act of 1933, as amended (the "Securities
    Act") or Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder (the
    "Exchange Act").

 

	 	(g)	Absence of Certain Changes or Events. Except as set forth on Schedule 2.01(f), since the Company Balance Sheet Date of____________,
the Seller has conducted its business only in the ordinary course consistent duly executed and when delivered by the Seller shall constitute a valid and binding obligation of the
Seller, enforceable against the Seller and the selling shareholders, as applicable, in accordance with its terms, except as such
enforcement may be limited by bankruptcy, insolvency or other similar laws affecting the enforcement of creditors' rights generally
or by general principles of equity. The execution and delivery of this Agreement do not, and the consummation of the transactions
contemplated by this Agreement and compliance with the provisions hereof will not, conflict with, or result in any breach or violation
of, or default (with or without notice or lapse of time, or both) under, or give rise to a right of termination, cancellation or
acceleration of or "put" right with respect to any obligation or to a loss of a material benefit under, or result in
the creation of any lien upon any of the properties or assets of the Seller under, (i) the Seller Seller's articles of incorporation
or bylaws, if any, (ii) any loan or credit agreement, note, bond, mortgage, indenture, lease or other agreement, instrument, permit,
concession, franchise or license applicable to the Seller, its properties or assets, or (iii) subject to the governmental filings
and other matters referred to in the following sentence, any judgment, order, decree, statute, law, ordinance, rule, regulation
or arbitration award applicable to the Seller, its properties or assets, other than, in the case of clauses (ii) and (iii), any
such conflicts, breaches, violations, defaults, rights, losses or liens that individually or in the aggregate could not have a
material adverse effect with respect to the Seller or could not prevent, hinder or materially delay the ability of the Seller to
consummate the transactions contemplated by this Agreement with past practice, and there is not and has not
been any (i) material adverse change with respect to the Seller, (ii) event which, if it had taken place following the execution
of this Agreement, would not have been permitted by this Agreement without prior consent of the Seller; (iii) condition, event
or occurrence which could reasonably be expected to prevent, hinder or materially delay the ability of the
Seller to consummate the transactions contemplated by this Agreement; (iv) incurrence, assumption or guarantee by the Seller of
any indebtedness for borrowed money other than in the ordinary course and in amounts and on terms consistent with past practices
or as disclosed to the Seller in writing; (v) creation or other incurrence by the Seller of any lien on any asset other than in
the ordinary course consistent with past practices; (vi) transaction or commitment made, or any contract or agreement entered into,
by the Seller relating to its assets or business (including the acquisition or disposition of any assets) or any relinquishment
by the Seller of any contract or other right, in either case, material to the Seller, other than transactions and commitments in
the ordinary course consistent with past practices and those contemplated by this Agreement; (vii) labor dispute, other than routine,
individual grievances, or, to the knowledge of the Seller, any activity or proceeding by a labor union or representative thereof
to organize any employees of the Seller or any lockouts, strikes, slowdowns, work stoppages or threats by or with respect to such
employees; (viii) payment, prepayment or discharge of liability other than in the ordinary course of business or any failure to
pay any liability when due; (ix) write-offs or writedowns of any assets of the Seller; (x) creation, termination or amendment of,
or waiver of any right under, any material contract of the Seller, (xi) damage, destruction or loss having, or reasonably expected
to have, a material adverse effect on the Seller; (xii) other condition, event or occurrence which individually or in the aggregate
could reasonably be expected to have a material adverse effect or give rise to a material adverse change with respect to the Seller;
or (xiii) agreement or commitment to do any of the foregoing.

 

 

 

    	 	3	 

     

    

 

		(h)	Certain Fees. Except as set forth on Schedule 2.01(g), no brokerage or finder's fees or
commissions are or will be payable by the Company to any broker, financial advisor or consultant, finder, placement agent, investment
banker, bank or other person with respect to the transactions contemplated by this Agreement.

 

		(i)	Litigation: Labor Matters: Compliance with Laws. (i) There is no suit, action or proceeding
or investigation pending or, to the knowledge of the Seller, threatened against or affecting the Seller or any basis for any such
suit, action, proceeding or investigation that, individually or in the aggregate, could reasonably be expected to have a material
adverse effect with respect to the Seller or prevent, hinder or materially delay the ability of the Seller to consummate the transactions
contemplated by this Agreement, nor is there any judgment, decree, injunction, rule or order of any Governmental Entity or arbitrator
outstanding against the Seller having, or which, insofar as reasonably could be foreseen by the Seller, in the future could have,
any such effect; (ii) The Seller is not a party to, or bound by, any collective bargaining agreement, contract or other agreement
or understanding with a labor union or labor organization, nor is it the subject of any proceeding asserting that it has committed an unfair labor practice or seeking to compel it to bargain
with any labor organization as to wages or conditions of employment nor is there any strike, work stoppage or other labor dispute
involving it pending or, to its knowledge, threatened, any of which could have a material adverse effect with respect to Seller;
and (iii) The conduct of the business of the Seller complies with all statutes, laws, regulations, ordinances, rules, judgments,
orders, decrees or arbitration awards applicable thereto.

 

		(j)	Benefit Plans. The Seller is not a party to any Benefit Plan under which the Seller currently
has an obligation to provide benefits to any current or former employee, officer or director of the Seller. As used herein, "Benefit
Plan" shall mean any employee benefit plan, program, or arrangement of any kind, including any
defined benefit or defined contribution plan, ownership plan with respect to any membership interest, executive compensation program
or arrangement, bonus plan, incentive compensation plan or arrangement, profit sharing plan or arrangement, deferred compensation
plan, agreement or arrangement, supplemental retirement plan or arrangement, vacation pay, sickness, disability, or death benefit
plan (whether provided through insurance, on a funded or unfunded basis, or otherwise), medical or life insurance plan providing
benefits to employees, retirees, or former employees or any of their dependents, survivors, or beneficiaries, severance pay, termination,
salary continuation, or employee assistance plan.

 

		(k)	Tax Returns and Tax Payments. (i) The Company has timely filed with the appropriate taxing
authorities all Tax Returns required to be filed by it (taking into account all applicable extensions). All such Tax Returns are
true, correct and complete in all respects. All Taxes due and owing by the Seller has been paid (whether or not shown on any Tax
Return and whether or not any Tax Return was required). The Company is not currently the beneficiary of any extension of time within
which to file any Tax Return or pay any Tax. No claim has ever been made in writing or otherwise addressed to the Seller by a taxing
authority in a jurisdiction where the Seller does not file Tax Returns that it is or may be subject to taxation by that jurisdiction.
The unpaid Taxes of the Company did not, as of the Seller Balance Sheet Date, exceed the reserve for Tax liability (excluding any
reserve for deferred Taxes established to reflect timing differences between book and Tax income) set forth on the face of the
financial statements (rather than in any notes thereto). Since the Seller Balance Sheet Date, neither the Seller nor any of its
subsidiaries has incurred any liability for Taxes outside the ordinary course of business consistent with past custom and practice.
As of the Closing Date, the unpaid Taxes of the Seller and its subsidiaries will not exceed the reserve for Tax liability (excluding
any reserve for deferred Taxes established to reflect timing differences between book and Tax income) set forth on the books and
records of the Seller; (ii) No material claim for unpaid Taxes has been made or become a lien against
the property of the Seller or is being asserted against the Seller, no audit of any Tax Return of the Seller is being conducted
by a tax authority, and no extension of the statute of limitations on the assessment of any Taxes has been granted by the Seller
and is currently in effect. The Seller has withheld and paid all Taxes required to have been withheld and paid in connection with
amounts paid or owing to any employee, independent contractor, creditor, stockholder or other third party. (iii) As used herein,
"Taxes" shall mean all taxes of any kind, including, without limitation, those on or measured by or referred to as income,
gross receipts, sales, use, advalorem, franchise, profits, license, withholding, payroll, employment, excise, severance, stamp,
occupation, premium value added, property or windfall profits taxes, customs, duties or similar fees, assessments or charges of
any kind whatsoever, together with any interest and any penalties, additions to tax or additional amounts imposed by any governmental
authority, domestic or foreign. As used herein, "Tax Return" shall mean any return, report or statement required to be
filed with any governmental authority with respect to Taxes.

 

 

 

    	 	4	 

     

    

 

	 	(l)	Environmental Matters. The Seller is in compliance with all Environmental Laws in all material respects. The Seller has
not received any written notice regarding any violation of any Environmental Laws, including any investigatory, remedial or corrective
obligations. The Seller holds all permits and authorizations required under applicable Environmental Laws, unless the failure
to hold such permits and authorizations would not have a material adverse effect on the Seller. The Seller is in compliance with
all terms, conditions and provisions of all such permits and authorizations in all material respects. No releases of Hazardous
Materials have occurred at, from, in, to, on or under any real property currently or formerly owned, operated or leased by the
Seller or any predecessor thereof and no Hazardous Materials are present in, on, about or migrating to or from any such property
which could result in any liability to the Seller. The Seller has not transported or arranged for the treatment, storage, handling,
disposal, or transportation of any Hazardous Material to any off-site location which could result in any liability to the Seller.
The Seller has no liability, absolute or contingent, under any Environmental Law that if enforced or collected would have a material
adverse effect on the Seller. There are no past, pending or threatened claims under Environmental Laws against the Seller and
Seller is not aware of any facts or circumstances that could reasonably be expected to result in a liability or claim against
the Seller pursuant to Environmental Laws. "Environmental Laws" means all applicable foreign, federal, state and local
statutes, rules, regulations, ordinances, orders, decrees and common law relating in any manner to contamination, pollution or
protection of human health or the environment, and similar state laws. "Hazardous Material" means any toxic, radioactive,
corrosive or otherwise hazardous substance, including petroleum, its derivatives, by-products and other hydrocarbons, or any substance
having any constituent elements displaying any of the foregoing characteristics, which in any event is regulated under any Environmental
Law.

 

		(m)	Material Contract Defaults. The Seller is not, or has not received any notice
or has any knowledge that any other party is, in default in any respect under any Material Contract; and there has not occurred
any event that with the lapse of time or the giving of notice or both would constitute such a material default. For purposes of
this Agreement, a "Material Contract" means any contract, agreement or commitment that is effective as of the Closing
Date to which the Seller is a party (i) with expected receipts or expenditures in excess of $50,000, (ii) requiring the Seller
to indemnify any person, (iii) granting exclusive rights to any party, (iv) evidencing indebtedness for borrowed or loaned money
in excess of $50,000 or more, including guarantees of such indebtedness, or (v) which, if breached by the Seller in such a manner
would (A) permit any other party to cancel or terminate the same (with or without notice of passage of time) or (B) provide a basis
for any other party to claim money damages (either individually or in the aggregate with all other such claims under that contract)
from the Seller or (C) give rise to a right of acceleration of any material obligation or loss of any material benefit under any
such contract, agreement or commitment.

 

		(n)	Accounts Receivable. All of the accounts receivable of the Seller that are reflected on
the Seller Financial Statements or the accounting records of the Seller as of the Closing (collectively, the "Accounts Receivable'')
represent or will represent valid obligations arising from sales actually made or services actually performed in the ordinary course
of business and are not subject to any defenses, counterclaims, or rights of set off other than those arising in the ordinary course
of business and for which adequate reserves have been established. The Accounts Receivable are fully collectible to the extent
not reserved for on the balance sheet on which they are shown.

 

		(o)	Properties. The Seller has valid land use rights for all real property that is material
to its business and good, clear and marketable title to all the tangible properties and tangible assets reflected in the latest
balance sheet as being owned by the Seller or acquired after the date thereof which are, individually or in the aggregate, material
to the Seller's business (except properties sold or otherwise disposed of since the date thereof in the ordinary course of business),
free and clear of all material liens, encumbrances, claims, security interest, options and restrictions of any nature whatsoever.
Any real property and facilities held under lease by the Seller is held by it under valid, subsisting and enforceable leases of
which the Seller is in compliance, except as could not, individually or in the aggregate, have or reasonably be expected to result
in a material adverse effect.

 

		(p)	Intellectual Property. (i) As used in this Agreement, the term "Trademarks" means
trademarks, service marks, trade names, internet domain names, designs, slogans, and general intangibles of like nature; the term
"Trade Secrets" means technology; trade secrets and other confidential information, know-how, proprietary processes,
formulae, algorithms, models, and methodologies; the term "Intellectual Property" means patents,
copyrights, Trademarks, applications for any of the foregoing, and Trade Secrets; the term "Seller License
Agreements" means any license agreements granting any right to use or practice any rights under any Intellectual
Property (except for such agreements for off-the-shelf products that are generally available for less than $25,000), and any
written settlements relating to any Intellectual Property, to which the Seller is a party or otherwise bound; and the term
"Software" means any and all computer programs, including any and all software implementations of algorithms,
models and methodologies, whether in source code or object code; (ii) The Seller owns or has valid rights to use the
Trademarks, trade names, domain names, copyrights, patents, logos, licenses and computer software programs (including,
without limitation, the source codes thereto) that are necessary for the conduct of its respective businesses as now being
conducted. To the knowledge of the Seller, none of the Seller's Intellectual Property or Seller License Agreements infringe
upon the rights of any third party that may give rise to a cause of action or claim against the Seller or its successors.

 

 

 

    	 	5	 

     

    

 

		(q)	Undisclosed Liabilities. The Seller has no liabilities or obligations of any nature (whether
fixed or unfixed, secured or unsecured, known or unknown and whether absolute, accrued, contingent, or otherwise) except for liabilities
or obligations reflected or reserved against in the Seller Financial Statements incurred in the ordinary course of business or
such liabilities or obligations disclosed in Schedule 2.01 (g).

 

		(r)	Full Disclosure. All of the representations and warranties made by the Seller in this Agreement,
and all statements set forth in the certificates delivered by the Seller at the Closing pursuant to this Agreement, are true, correct
and complete in all material respects and do not contain any untrue statement of a material fact or omit to state any material
fact necessary in order to make such representations, warranties or statements, in light of the circumstances under which they
were made, misleading. The copies of all documents furnished by the Seller pursuant to the terms of this Agreement are complete
and accurate copies of the original documents. The schedules, certificates, and any and all other statements and information, whether
furnished in written or electronic form, to the Company or its representatives by or on behalf of any of the Seller or its affiliates
in connection with the negotiation of this Agreement and the transactions contemplated hereby do not contain any material misstatement
of fact or omit to state a material fact or any fact necessary to make the statements contained therein not misleading.

 

2.02       Representations and Warranties
of the Company. Except as set forth in the disclosure schedule delivered by the Company to the Seller at the time of execution
of this Agreement (the "Company Disclosure Schedule"), the Company represents and warrants to the Seller as follows:

 

		(a)	

Organization. Standing and Corporate Power. The Company is duly
organized, validly existing and in good standing under the laws of the State of Florida and has the requisite corporate power
and authority and all government licenses, authorizations, permits, consents and approvals required to own, lease and operate
its properties and carry on its business as now being conducted. The Company is duly qualified or licensed to do business and
is in good standing in each jurisdiction in which the nature of its business or the ownership or leasing of its properties makes
such qualification or licensing necessary, other than in such jurisdictions where the failure to be so qualified or licensed (individually
or in the aggregate) would not have a material adverse effect with respect to the Company.

 

		(b)	Subsidiaries. The Company does not own directly or indirectly, any equity or other shares
in any company, corporation, partnership, joint venture or otherwise.

 

		(c)	Capital Structure of the Company. As of the date of this Agreement, the authorized capital
stock of the Company consists of 121,280,000 shares of Company Common Stock. There are no other shares of Company stock issuable
upon the exercise of outstanding warrants, convertible notes, options and otherwise. Except as set forth above, no shares of capital
stock or other equity securities of the Company are issued, reserved for issuance or outstanding. All shares which may be issued
pursuant to this Agreement will be, when issued, duly authorized, validly issued, fully paid and nonassessable, not subject to
preemptive rights, and issued in compliance with all applicable state and federal laws concerning the issuance of securities.

 

		(d)	Corporate Authority: Noncontravention. The Company has all requisite corporate and other
power and authority to enter into this Agreement and to consummate the transactions contemplated by this Agreement. The execution
and delivery of this Agreement by the Company and the consummation by the Company of the transactions contemplated hereby have
been (or at Closing will have been) duly authorized by all necessary corporate action on the part of the Company. This Agreement
has been duly executed and when delivered by the Company shall constitute a valid and binding obligation of the Company, enforceable
against the Company in accordance with its terms, except as such enforcement may be limited by bankruptcy, insolvency or other
similar laws affecting the enforcement of creditors' rights generally or by general principles of equity. The execution and delivery
of this Agreement do not, and the consummation of the transactions contemplated by this Agreement and compliance with the provisions
hereof will not, conflict with, or result in any breach or violation of, or default (with or without notice or lapse of time, or
both) under, or give rise to a right of termination, cancellation or acceleration of or "put" right with respect to any
obligation or to loss of a material benefit under, or result in the creation of any lien upon any of the properties or assets of the Company under, (i) its articles of incorporation, bylaws, or other charter
documents of the Company (ii) any loan or credit agreement, note, bond, mortgage, indenture, lease or other agreement, instrument,
permit, concession, franchise or license applicable to the Company, its properties or assets, or (iii) subject to the governmental
filings and other matters referred to in the following sentence, any judgment, order, decree, statute, law, ordinance, rule, regulation
or arbitration award applicable to the Company, its properties or assets, other than, in the case of clauses (ii) and (iii), any
such conflicts, breaches, violations, defaults, rights, losses or liens that individually or in the aggregate could not have a
material adverse effect with respect to the Company or could not prevent, hinder or materially delay the ability of the Company
to consummate the transactions contemplated by this Agreement.

 

 

 

    	 	6	 

     

    

 

		(e)	Government Authorization. No consent, approval, order or authorization of, or Registration,
declaration or filing with, or notice to, any Governmental Entity, is required by or with respect to the Company in connection
with the execution and delivery of this Agreement by the Company, or the consummation by the Company of the transactions contemplated
hereby, except, with respect to this Agreement, any filings under the Delaware Law, the Securities Act or the Exchange Act.

 

		(f)	Financial Statements. The consolidated financial statements of the Company included in
                                                               the reports, schedules, forms, statements and other documents filed by the Company with the SEC (collectively, and in each
                                                               case including all exhibits and schedules thereto and documents incorporated by reference therein, the "Company SEC
                                                               Documents"), such Company SEC Documents comply as to form in all material respects with applicable accounting
                                                               requirements and the published rules and regulations of the SEC with respect thereto, have been prepared in accordance with
                                                               U.S. generally accepted accounting principles (except, in the case of unaudited consolidated quarterly statements, as
                                                               permitted by Form 10-Q of the SEC) applied on a consistent basis during the periods involved (except as may be indicated in
                                                               the notes thereto) and fairly present the consolidated financial position of the Company and its consolidated subsidiaries as
                                                               of the dates thereof and the consolidated results of operations and changes in cash flows for the periods then ended
                                                               (subject, in the case of unaudited quarterly statements, to normal year end audit adjustments as determined by the Company's
                                                               independent accountants). Except as set forth in the Company SEC Documents, at the date of the most recent audited financial
                                                               statements of the Company included in the Company SEC Documents, the Company has not incurred any liabilities or obligations
                                                               of any nature (whether accrued, absolute, contingent or otherwise) which, individually or in the aggregate, could reasonably
                                                               be expected to have a material adverse effect with respect to the Company.

 

		(g)	Absence of Certain Changes or
                                         Events. Except as disclosed in the Company SEC Documents
                                         or as set forth on Schedule 2.02(g), since December 31, 2017 (the "Company Balance
                                         Sheet Date") the Company has conducted its business only in the ordinary course
                                         consistent with past practice in light of its current business circumstances, and there
                                         is not and has not been any: (i) material adverse change with respect to the Company;
                                         (ii) event which, if it had taken place following the execution of this Agreement, would
                                         not have been permitted by this Agreement without prior consent of the Company; (iii)
                                         any condition, event or occurrence which could reasonably be expected to prevent, hinder
                                         or materially delay the ability of the Company to consummate the transactions contemplated
                                         by this Agreement; (iv) any incurrence, assumption or guarantee by the Company of any
                                         indebtedness for borrowed money other than in the ordinary course and in amounts and
                                         on terms consistent with past practices or as disclosed to the Company in writing; (v)
                                         creation or other incurrence by the Company of any lien on any asset other than in the
                                         ordinary course consistent with past practices; (vi) transaction or commitment made,
                                         or any contract or agreement entered into, by the Company relating to its assets or business
                                         (including the acquisition or disposition of any assets) or any relinquishment by the
                                         Company of any contract or other right, in either case, material to the Company, other
                                         than transactions and commitments in the ordinary course consistent with past practices
                                         and those contemplated by this Agreement; (vii) payment, prepayment or discharge of liability
                                         other than in the ordinary course of business or any failure to pay any liability when
                                         due; (viii) write-offs or write-downs of any assets of the Company; (ix) creation, termination
                                         or amendment of, or waiver of any right under, any material contract of the Company;
                                         (x) damage, destruction or loss having, or reasonably expected to have, a material adverse
                                         effect on the Company; (xi) other condition, event or occurrence which individually or
                                         in the aggregate could reasonably be expected to have a material adverse effect or give
                                         rise to a material adverse change with respect to the Company; or (xii) agreement or
                                         commitment to do any of the foregoing.

 

		(h)	Certain Fees. Except as set forth on Schedule 2.02(h), no brokerage or finder's fees or
commissions are or will be payable by the Company to any broker, financial advisor or consultant, finder, placement agent, investment
banker, bank or other person with respect to the transactions contemplated by this Agreement.

 

		(i)	Litigation; Compliance with Laws. (i) There is no suit, action or proceeding or investigation
pending or, to the knowledge of the Company, threatened against or affecting the Company or any basis for any such suit, action,
proceeding or investigation that, individually or in the aggregate, could reasonably be expected to have a material adverse effect
with respect to the Company or prevent, hinder or materially delay the ability of the Company to consummate the transactions contemplated
by this Agreement, nor is there any judgment, decree, injunction, rule or order of any Governmental Entity or arbitrator
outstanding against the Company having, or which, insofar as reasonably could be foreseen by the Company, in the future could have,
any such effect; (ii) the conduct of the business of the Company complies with all statutes, laws, regulations, ordinances, rules,
judgments, orders, decrees or arbitration awards applicable thereto.

 

 

 

    	 	7	 

     

    

 

		(j)	Tax Returns and Tax Payments.
                                         (i) The Company has timely filed with the appropriate taxing authorities all Tax Returns
                                         required to be filed by it (taking into account all applicable extensions). All such
                                         Tax Returns are true, correct and complete in all respects. All Taxes due and owing by
                                         the Company have been paid (whether or not shown on any Tax Return and whether or not
                                         any Tax Return was required). The Company is not currently the beneficiary of any extension
                                         of time within which to file any Tax Return or pay any Tax. No claim has ever been made
                                         in writing or otherwise addressed to the Company by a taxing authority in a jurisdiction
                                         where the Company does not file Tax Returns that it is or may be subject to taxation
                                         by that jurisdiction. The unpaid Taxes of the Company did not, as of the Company Balance
                                         Sheet Date, exceed the reserve for Tax liability (excluding any reserve for deferred
                                         Taxes established to reflect timing differences between book and Tax income) set forth
                                         on the face of the financial statements (rather than in any notes thereto). Since the
                                         Company Balance Sheet Date, neither the Company nor any of its subsidiaries has incurred
                                         any liability for Taxes outside the ordinary course of business consistent with past
                                         custom and practice. As of the Closing Date, the unpaid Taxes of the Company and its
                                         subsidiaries will not exceed the reserve for Tax liability (excluding any reserve for
                                         deferred Taxes established to reflect timing differences between book and Tax income)
                                         set forth on the books and records of the Company; (ii) No material claim for unpaid
                                         Taxes has been made or become a lien against the property of the Company or is being
                                         asserted against the Company, no audit of any Tax Return of the Company is being conducted
                                         by a tax authority, and no extension of the statute of limitations on the assessment
                                         of any Taxes has been granted by the Company and is currently in effect. The Company
                                         has withheld and paid all Taxes required to have been withheld and paid in connection
                                         with amounts paid or owing to any employee, independent contractor, creditor, stockholder
                                         or other third party.

 

		(k)	Material Contract Defaults. The Company is not, or has not, received any notice or has any knowledge that any other party is, in
                                                                                                                                  default in any respect under any Company Material Contract; and there has not occurred any event that with the lapse of time
                                                                                                                                  or the giving of notice or both would constitute such a material default. For purposes of this Agreement, a "Company
                                                                                                                                  Material Contract" means any contract, agreement or commitment that is effective as of the Closing Date to which the
                                                                                                                                  Company is a party (i) with expected receipts or expenditures in excess of $5,000, (ii) requiring the Company to indemnify any
person, (iii) granting exclusive rights to any party, (iv) evidencing indebtedness for borrowed or loaned money in excess of $5,000
or more, including guarantees of such indebtedness, or (v) which, if breached by the Company in such a manner would (A) permit
any other party to cancel or terminate the same (with or without notice of passage of time) or (B) provide a basis for any other
party to claim money damages (either individually or in the aggregate with all other such claims under that contract) from the
Company or (C) give rise to a right of acceleration of any material obligation or loss of any material benefit under any such contract,
agreement or commitment.

 

	 	(1)	Board Determination. The Board of Directors of the Company has unanimously determined that the terms of the Exchange are
fair to and in the best interests of the Company and its stockholders.

 

		(m)	Undisclosed Liabilities. The Company has no liabilities or obligations of any nature (whether
fixed or unfixed, secured or unsecured, known or unknown and whether absolute, accrued, contingent, or otherwise) except for liabilities
or obligations reflected or reserved against in the Company SEC Documents incurred in the ordinary course of business.

 

		(n)	Full Disclosure. All of the representations and warranties made by the Company in this Agreement,
and all statements set forth in the certificates delivered by the Company at the Closing pursuant to this Agreement, are true,
correct and complete in all material respects and do not contain any untrue statement of a material fact or omit to state any material
fact necessary in order to make such representations, warranties or statements, in light of the circumstances under which they
were made, misleading. The copies of all documents furnished by the Company pursuant to the terms of this Agreement are complete
and accurate copies of the original documents. The schedules, certificates, and any and all other statements and information, whether
furnished in written or electronic form, to the Company or its representatives by or on behalf of the Company and the Company Stockholders
in connection with the negotiation of this Agreement and the transactions contemplated hereby do not contain any material misstatement
of fact or omit to state a material fact or any fact necessary to make the statements contained therein not misleading.

 

 

 

    	 	8	 

     

    

 

ARTICLE III

 

CERTAIN AGREEMENTS AND COVENANTS

 

 

3.01       Funding of the Seller. (a) Within Sixty (60)
business days of October 22, 2018 (the date of signing of the Non-Binding Letter of Intent with respect to this transaction), the
Company will provide to the Seller the sum of One Hundred Thousand Dollars (US$100,000) which shall be utilized by the Seller
to complete the acquisition, including, but not limited to, audit, fees for the preparation of SEC filings and transfer agent fees;
and (b) Upon the filing of the Super 8-K with the SEC announcing the closing of this acquisition.

 

3.02       Management
Contracts, Etc. Seller's current officers and directors shall receive management contracts that shall include bonuses and
stock incentives based upon performance and milestones. The Parties shall negotiate in good faith a bonus package for Seller's
officers, directors and key employees in accordance with industry standards. Each manager of the Seller shall receive a monthly
salary comparable to other executives in the same capacity and within industry standards.

 

3.03       Conduct
of Business. Between the date hereof and the Closing, the Seller shall use its reasonable best efforts to preserve intact
the business organization and employees and other business relationships of the Seller; shall continue to operate in the ordinary
course of business and maintain its books, records and accounts in accordance with generally accepted accounting principles, consistent
with past practice; shall use its reasonable best efforts to maintain the Seller's current financial condition, including working
capital levels; shall not incur any indebtedness or enter into any agreements to make business or product line stock purchase
agreements; shall not make any dividend or stock distributions; and shall conduct its business only in the ordinary course.

 

3.04       Access
to Seller. Between the date of signing of this Agreement and the Closing Date, the Seller will give the Company and its
representatives full access to any personnel and all properties, documents, contracts, books, records and operations of the Seller
relating to its business. The Seller will furnish the Company with copies of documents and with such other information as the Company
may request.

 

3.05       No
Other Offers. The Seller and its principal shareholders each acknowledge that the Company has and will incur significant
expense in connection with its due diligence review and negotiation of this Agreement. As a result, after the date hereof, the
Seller and its principal shareholders shall terminate any existing discussions or negotiations with and shall cease to provide
any information to or otherwise cooperate with, any party other than the Company and its representatives with respect to a stock
purchase agreement Transaction (as defined below). In addition, from and after the date hereof, none of the Seller nor any of
its shareholders, subsidiaries or affiliates, or any of their respective officers, directors, employees, members, managers, representatives
or agents, will directly or indirectly encourage, solicit, initiate, have or continue any discussions or negotiations with or
participate in any discussions or negotiations with or provide any information to or otherwise cooperate in any other way with,
or enter into any agreement, letter of intent or agreement in principle with, or facilitate of encourage any effort or attempt
by any entity or person (other than the Company and its affiliates and representatives) concerning any merger, joint venture,
recapitalization, reorganization, sale of assets, sale of any shares of capital stock, investment or similar transaction involving
the Seller or any subsidiary of division of the Seller (each, a "Stock Purchase Agreement Transaction"). The Seller
will notify the Company promptly of any inquiries, proposals or offers made by third parties to the Seller or any of its shareholders,
subsidiaries or affiliates, or any of their respective officers, directors or employees, representatives or agents with respect
to a Stock Purchase Agreement Transaction and furnish the Company with the terms thereof (including, without limitation, the type
of consideration offered and the identity of the third party). The Seller and its principal shareholders shall deal exclusively
with the Company with respect to any possible Stock Purchase Agreement Transaction and the Company shall have the right to match
the terms of any proposed transactions in lieu of such parties.

 

3.06       Disclosure.
Without the prior written consent of the Company, the Seller will, and each Party hereto will cause its directors, officers,
shareholders, employees, agents, other representatives and affiliates not to, disclose to any person the fact that discussions
or negotiations are taking place concerning the transactions contemplated hereby, the status thereof, or the existence of this
Agreement and the terms hereof, unless in the opinion of such party disclosure is required to be made by applicable law, regulation
or court order, and such disclosure is made after prior consultation with the Company.

 

 

 

    	 	9	 

     

    

 

ARTICLE IV

 

CONDITIONS PRECEDENT

 

4.01 Conditions to Each Party's Obligation
to Effect the Exchange. The obligation of each Party to effect the Exchange and otherwise consummate the transactions contemplated
by this Agreement is subject to the satisfaction, at or prior to the Closing, of each of the following conditions:

 

		(a)	No Restraints. No temporary restraining order, preliminary or permanent injunction or other
order preventing the consummation of the Exchange shall have been issued by any court of competent jurisdiction or any other Governmental
Entity having jurisdiction and shall remain in effect, and there shall not be any applicable legal requirement enacted, adopted
or deemed applicable to the Exchange that makes consummation of the Exchange illegal.

 

		(b)	Governmental Approvals. All authorizations, consents, orders, declarations or approvals
of, or filings with, or terminations or expirations of waiting periods imposed by, any Governmental Entity having jurisdiction
which the failure to obtain, make or occur would have a material adverse effect on the Seller or the Company shall have been obtained, made or occurred.

 

		(c)	No Litigation. There shall not be pending or threatened any suit, action proceeding before
any court, Governmental Entity or authority (i) pertaining to the transactions contemplated by this Agreement or (ii) seeking to
prohibit or limit the ownership or operation by the Seller, the Company or any of its subsidiaries, or to dispose of or hold separate
any material portion of the business or assets of the Seller or the Company.

 

		(d)	Seller shall have provided all necessary disclosures and financial information to the Company
to facilitate the creation of a Form 8-K filing containing Form 10 information and such Form 8-K shall be ready for filing with
the SEC within four days of the Closing Date. 

 

4.02 Conditions Precedent to Obligations
of the Company. The obligation of the Company to effect the Exchange and otherwise consummate the transactions contemplated
by this Agreement are subject to the satisfaction, at or prior to the Closing, of each of the following conditions:

 

		(a)	Representations, Warranties and Covenants. The representations and warranties of the Seller
in this Agreement shall be true and correct in all material respects (except for such representations and warranties that are qualified
by their terms by a reference to materiality or material adverse effect, which representations and warranties as so qualified shall
be true and correct in all respects) both when made and on and as of the Closing Date, and (ii) the Seller shall have performed
and complied in all material respects with all covenants, obligations and conditions of this Agreement required to be performed
and complied with by it prior to the Effective Time.

 

		(b)	Consents. The Company shall have received evidence, in form and substance reasonably satisfactory
to it, that such licenses, permits, consents, approvals, authorizations, qualifications and orders of governmental authorities
and other third Parties as necessary in connection with the transactions contemplated hereby have been obtained.

 

		(c)	No Material Adverse Change. There shall not have occurred any change in the business, condition
(financial or otherwise), results of operations or assets (including intangible assets) and properties of the Seller that, individually
or in the aggregate, could reasonably be expected to have a material adverse effect on the Seller.

 

		(d)	Delivery of the Shares. The selling shareholders shall have delivered the share certificates
to the Company on the Closing Date.

 

	 	(e)	Due Diligence Investigation. The Company shall be reasonably satisfied with the results of its due diligence investigation
of the Seller in its sole and absolute discretion.

 

 

 

    	 	10	 

     

    

 

4.03       Conditions Precedent to Obligation
of the Seller. The obligation of the Seller to effect the Exchange and otherwise consummate the transactions contemplated
by this Agreement is subject to the satisfaction, at or prior to the Closing, of each of the following conditions:

 

		a)	Representations, Warranties and Covenants. The representations and warranties of the Company
in this Agreement shall be true and correct in all material respects (except for such representations and warranties that are qualified
by their terms by a reference to materiality or material adverse effect, which representations and warranties as so qualified
shall be true and correct in all respects) both when made and on and as of the Closing Date, and (ii) the Company shall have performed
and complied in all material respects with all covenants, obligations and conditions of this Agreement required to be performed
and complied with by it prior to the Effective Time.

 

		b)	Consents. The Seller shall have received evidence, in form and substance reasonably satisfactory
to it, that such licenses, permits, consents, approvals, authorizations, qualifications and orders of governmental authorities
and other third Parties as necessary in connection with the transactions contemplated hereby have been obtained.

 

		c)	No Material Adverse Change. There shall not have occurred any change in the business, condition
(financial or otherwise), results of operations or assets (including intangible assets) and properties of the Company that, individually
or in the aggregate, could reasonably be expected to have a material adverse effect on the Company.

 

		d)	Board Resolutions. The Seller shall have received resolutions duly adopted by the Company's
board of directors approving the execution, delivery and performance of the Agreement and the transactions contemplated by the
Agreement.

 

		e)	Delivery of the Exchange Shares Certificate. The Company shall have received the Exchange
Shares Certificate on the Closing Date (except for the Exchange Shares being held in escrow).

 

		f)	Current Report. The Company shall file a Form 8-K with the SEC within four (4) business
days of the Closing Date containing information about the Exchange.

 

		g)	Due Diligence Investigation. The Seller shall be reasonably satisfied with the results of
its due diligence investigation of the Company in its sole and absolute discretion.

 

ARTICLE V

 

TERMINATION AMENDMENT AND WAIVER

 

5.01       Termination. This Agreement
may be terminated and abandoned at any time prior to the Effective Time of the Exchange:

 

		(a)	by mutual written consent of the Company and the Seller;

 

		(b)	by either the Company or the Seller if any Governmental Entity shall have issued an order, decree
or ruling or taken any other action permanently enjoining, restraining or otherwise prohibiting the Exchange and such order, decree,
ruling or other action shall have become final and nonappealable;

 

		(c)	by either the Company or the Seller if the Exchange shall not have been consummated on or before
December 1, 2018 (other than as a result of the failure of the party seeking to terminate this Agreement to perform its obligations
under this Agreement required to be performed at or prior to the Effective Time.);

 

		(d)	by the Company, if a material adverse change shall have occurred relative to the Seller (and not
curable within thirty (30) days);

 

 

 

    	 	11	 

     

    

 

		(e)	by the Seller if a material adverse change shall have occurred relative to the Company (and not
curable within thirty (30) days);

 

		(f)	by the Company, if the Seller willfully fails to perform in any material respect any of its material
obligations under this Agreement; or

 

		(g)	by the Seller, if the Company willfully fails to perform in any material respect any of its obligations
under this Agreement.

 

5.02       Effect
of Termination. In the event of termination of this Agreement by either the Seller or the Company as provided in Section
5.01, this Agreement shall forthwith become void and have no effect, without any liability or obligation on the part of the Company
or the Seller, other than the provisions of the last sentence of Section 4.01 (a) and this Section 6.02. Nothing contained in this
Section shall relieve any party for any breach of the representations, warranties, covenants or agreements set forth in this Agreement.

 

5.03       Amendment.
This Agreement may not be amended except by an instrument in writing signed on behalf of each of the Parties upon approval by the
party, if such party is an individual, and upon approval of the Board of Director of the Company and the Seller.

 

5.04       Extension;
Waiver. Subject to Section 6.01 (c), at any time prior to the Effective Time, the Parties may (a) extend the time
for the performance of any of the obligations or other acts of the other Parties, (b) waive any inaccuracies in the
representations and warranties contained in this Agreement or in any document delivered pursuant to this Agreement, or (c)
waive compliance with any of the agreements or conditions contained in this Agreement. Any agreement on the part of a party
to any such extension or waiver shall be valid only if set forth in an instrument in writing signed on behalf of such party.
The failure of any party to this Agreement to assert any of its rights under this Agreement or otherwise shall not constitute
a waiver of such rights.

 

ARTICLE VI

 

INDEMNIFICATION AND RELATED MATTERS

 

6.01 Survival of Representations and
Warranties. The representations and warranties in this Agreement or in any instrument delivered pursuant to this Agreement
shall survive until two (2) years after the Effective Time (except for with respect to Taxes, which shall survive for the applicable
statute of limitations plus 90 days, and covenants that by their terms survive for a longer period).

 

6.02 Indemnification.

 

		(a)	The Company shall indemnify and hold the selling shareholders and the Seller harmless for, from
and against any and all liabilities, obligations, damages, losses, deficiencies, costs, penalties, interest and expenses (including,
but not limited to, any and all expenses whatsoever reasonably incurred in investigating, preparing or defending against any litigation,
commenced or threatened, or any claim whatsoever) that exceed fifty thousand dollars ($50,000.00) (collectively, "Losses")
to which the Company may become subject resulting from or arising out of any breach of a representation, warranty or covenant made
by the Company as set forth herein.

 

		(b)	The Seller and selling shareholders shall jointly and severally indemnify and hold the Company
and the Company's officers and directors ("Company Representatives") harmless for, from and against any and all Losses
to which the Company or Company Representative may become subject resulting from or arising out of (1) any breach of a representation,
warranty or covenant made by the Seller as set forth herein; or (2) any and all liabilities arising out of or in connection with:
(A) any of the assets of the Seller prior to the Closing; or (B) the operations of the Seller prior to the Closing.

 

 

 

    	 	12	 

     

    

 

6.03 Notice of Indemnification.
Promptly after the receipt by any indemnified party (the "Indemnitee") of notice of the commencement of any action or
proceeding against such Indemnitee, such Indemnitee shall, if a claim with respect thereto is or may be made against any indemnifying
party (the "Indemnifying Party") pursuant to this Article VI, give such Indemnifying Party written notice of the commencement
of such action or proceeding and give such Indemnifying Party a copy of such claim and/or process and all legal pleadings in connection
therewith. The failure to give such notice shall not relieve any Indemnifying Party of any of its indemnification obligations
contained in this Article VI, except where, and solely to the extent that, such failure actually and materially prejudices the
rights of such Indemnifying Party. Such Indemnifying Party shall have, upon request within thirty (30) days after receipt of such
notice, but not in any event after the settlement or compromise of such claim, the right to defend, at its own expense and by
its own counsel reasonably acceptable to the Indemnitee, any such matter involving the asserted liability of the Indemnitee; provided,
however, that if the Indemnitee determines that there is a reasonable probability that a claim may materially and adversely affect
it, other than solely as a result of money payments required to be reimbursed in full by such Indemnifying Party under this Article
VI or if a conflict of interest exists between Indemnitee and the Indemnifying Party, the Indemnitee shall have the right to defend,
compromise or settle such claim or suit; and, provided, further, that such settlement or compromise shall not, unless consented
to in writing by such Indemnifying Party, which shall not be unreasonably withheld, be conclusive as to the liability of such
Indemnifying Party to the Indemnitee. In any event, the Indemnitee, such Indemnifying Party and its counsel shall cooperate in
the defense against, or compromise of, any such asserted liability, and in cases where the Indemnifying Party shall have assumed
the defense, the Indemnitee shall have the right to participate in the defense of such asserted liability at the Indemnitee's
own expense. In the event that such Indemnifying Party shall decline to participate in or assume the defense of such action, prior
to paying or settling any claim against which such Indemnifying Party is, or may be, obligated under this Article VI to indemnify
an Indemnitee, the lndemnitee shall first supply such Indemnifying Party with a copy of a final court judgment or decree holding
the Indemnitee liable on such claim or, failing such judgment or decree, the terms and conditions of the settlement or compromise
of such claim. An Indemnitee's failure to supply such final court judgment or decree or the terms and conditions of a settlement
or compromise to such Indemnifying Party shall not relieve such Indemnifying Party of any of its indemnification obligations contained
in this Article VI, except where, and solely to the extent that, such failure actually and materially prejudices the rights of
such Indemnifying Party. If the Indemnifying Party is defending the claim as set forth above, the Indemnifying Party shall have
the right to settle the claim only with the consent of the Indemnitee.

 

ARTICLE VII

 

MISCELLANEOUS PROVISIONS

 

7.01 Notices. All notices,
demands and other communications, which may or are required to be given pursuant to this Agreement shall be given or made when
personally delivered or when sent via overnight delivery service, postage pre-paid, addressed as follows:

 

If to the Company:

 

8200 Seminole Boulevard, Seminole, Florida 33772

 

If to the Seller: 15, Adenekan Salako Cl, Ifako Agege 100215, Lagos, Nigeria

 

7.02 Governing Law. This
Agreement shall be governed by and construed in accordance with the domestic laws of the State of Florida without giving effect
to any choice or conflict of law provision or rule (whether of the State of Florida or of any other jurisdiction) that would cause
the application of the laws of any jurisdiction other than the State of Florida.

 

7.03 Attorney's Fees. In
the event any suit or other legal proceeding is brought for the enforcement of any of the provisions of this Agreement, the Parties
hereto agree that the prevailing party or Parties shall be entitled to recover from the other party or Parties upon final judgment
on the merits reasonable attorneys' fees, including attorneys' fees for an appeal, and costs incurred in bringing such suit or
proceeding.

 

7.04 Expenses. Each party
shall bear their own costs incurred in connection with the preparation and negotiation of this Agreement, including the fees and
expenses of legal counsel.

 

 

 

    	 	13	 

     

    

 

7.05 Entire Agreement. This
Agreement constitutes the entire agreement between the parties and supersedes any prior understandings, agreements, or representations
by or between the parties, written or oral, to the extent they related in any way to the subject matter hereof.

 

7.06 Successors and Assignment.
This Agreement shall be binding upon and inure to the benefit of the parties named herein and their respective successors and permitted
assigns. No party may assign either this Agreement or any of their rights, interests, or obligations hereunder without the prior
written approval of the other party.

 

7.07 No Third Party Beneficiaries.
This Agreement shall not confer any rights or remedies upon any person other than the parties and their respective successors and
permitted assigns.

 

7.08 Counterparts. This Agreement
may be executed in one or more counterparts, each of which shall be deemed an original but all of which together will constitute
one and the same instrument. In addition, facsimile or electronic signatures shall have the same legally binding effect as original
signatures.

 

7.09 Headings. The section
headings contained in this Agreement are inserted for convenience only and shall not affect in any way the meaning or interpretation
of this Agreement.

 

[SIGNATURES ON NEXT PAGE'

 

 

    	 	14	 

     

    

 

 

IN WITNESS WHEREOF, the parties hereto
have executed this Agreement as of the dates set forth below.

 

	The Company:	 
	 	 
	BIG TIME HOLDINGS, INC.	 
	 	 
	By: /s/ David Smeed	Date: 22/10/18
	David Smeed	 
	Chairman of the Board	 
	 	 
	 	 
	The Seller:	 
	 	 
	TURNER WRIGHT LTD.	 
	 	 
	By: /s/ Dr. Tunde Lawal	Date: 22/10/2018
	Name: Dr. Tunde Lawal	 
	Title: Chairman and CEO	 

 

 

 

 

 

 

 

 

 

    	 	15

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