Document:

exv10w5

Exhibit 10.5

Portions of this exhibit marked “[***Redacted***]” have been omitted pursuant to a request for
confidential treatment filed separately with the Securities and Exchange Commission.

UNCLASSIFIED

FOR OFFICIAL USE ONLY

WHEN SEPARATED FROM CLASSIFIED ATTACHMENTS

	UNCLASSIFIEDAMENDMENT OF SOLICITATION/MODIFICATION OF
 CONTRACT1. CONTRACT ID CODEPAGE OF PAGES132. AMENDMENT/MODIFICATION NO. P000163. EFFECTIVE DATE 03/28/20084.
 REQUISITION/PURCHASE REQ. NO. See Schedule5. PROJECT NO. (If applicable)6. ISSUED BY CODEHM15727.
ADMINISTERED BY (If other than Item 6) CODE[**Redacted**] Nat’l Geospatial-Intelligence
 Agen. ATTN: [**Redacted**] 12310 SUNRISE VALLEY DRIVE RESTON VA 2
0191-3449 P.O.C. [**Redacted**] Phone: [**Redacted**] Fax: [**Redacted**] Email:
 [**Redacted**] 8. NAME AND ADDRESS OF CONTRACTOR (No., street, county, State and ZIP Code) (x)9A.
AMENDMENT OF SOLICITATION NO. Digital Globe, Inc Attn: DIGITALGLOBE, INC. 1601 DRY CREEK DRIVE SUITE 260 LONGMONT
 CO 805036493 9B. DATED (SEE ITEM 11) x10A. MODIFICATION OF CONTRACT/ORDER NO. HM157304C0001 10B. DATED
(SEE ITEM 11) 12/09/2003 CODE 7896384180000 FACILITY COD
E11. THIS ITEM ONLY APPLIES TO AMENDMENTS OF SOLICITATIONS o The above numbered solicitation is amended
 as set forth in Item 14. The hour and date specified for receipt of Offers     
       o is extended, o is not extended. Offers must acknowledge receipt of
 this amendment prior to the hour and date specified in the solicitation or as amended, by one of the following
 methods: (a) By completing Items 8 and 15, and returning ___copies of
 the amendment; (b) By acknowledging receipt of this amendment on each copy of the offer
 submitted; or (c) By separate letter or telegram which includes a reference to the solicitation
 and amendment numbers. FAILURE OF YOUR ACKNOWLEDGEMENT TO BE RECEIVED AT THE PLACE DESIGNATED FOR THE
 RECEIPT OF OFFERS PRIOR TO THE HOUR AND DATE SPECIFIED MAY RESULT IN REJECTION OF YOUR OFFER. If by
virtue of this amendment you desire to change an offer already submitted, such change may be made b
y telegram or letter, provided each telegram or letter makes reference to the solicitation and this
 amendment, and is received prior to the opening hour and date specified.12. ACCOUNTING AND APPROPRIATION DATA
 (If required) See ScheduleNet Increase:$9,000,000.00 13. THIS ITEM ONLY APPLIES TO MODIFICATION OF
 CONTRACTS/ORDERS. IT MODIFIES THE CONTRACT/ORDER NO. AS DESCRIBED IN ITEM 14. CHECK ONEA. THIS CHANGE
 ORDER IS ISSUED PURSUANT TO: (Specify authority) THE CHANGES SET FORTH IN ITEM 1
4 ARE MADE IN THE CONTRACT ORDER NO. IN ITEM 10A. B. THE ABOVE NUMBERED CONTRACT/ORDER IS MODIFIED TO REFLECT
 THE ADMINISTRATIVE CHANGES (such as changes in paying office, appropriation date, etc.) SET FORTH IN
 ITEM 14, PURSUANT TO THE AUTHORITY OF FAR 43.103(b). C. THIS SUPPLEMENTAL AGREEMENT IS ENTERED INTO PURSUANT
 TO AUTHORITY OF: Incremental Funding, IAW Section B, Paragraph B.1, Line Item CLIN 0001 XD.
 OTHER (Specify type of modification and authority) E. IMPORTANT: Contractor xis not. o is required to sign this document and return 0 copies to the issuing office. 14.
 DESCRIPTION OF AMENDMENT/MODIFICATION (Organized by UCF section headings, including solicitation/contract
 subject matter where feasible.) Tax ID Number: 31-1420852 DUNS
Number: 789638418 The purpose of this
 modification is to provide incremental funding for CLIN 0001. The total amount of funding available under
CLIN 0001 is increased by $9,000,000 from $161,000,000 to $170,000,000. The total amount
of funding available under the contract is increased by $9,000,000 from $236,970,000 to $245,970,000. The total
 value of the contract remains unchanged. Accordingly, this contract is modified as follows: Continued ... Except
 as provided herein, all terms and conditions of the document referenced in Item 9A or 10A, as heretofore
changed, remains unchanged and in full force and effect.

UNCLASSIFIED

FOR OFFICIAL USE ONLY

WHEN SEPARATED FROM CLASSIFIED ATTACHMENTS

2

 

UNCLASSIFIED

FOR OFFICIAL USE ONLY

WHEN SEPARATED FROM CLASSIFIED ATTACHMENTS

	15A. NAME AND TITLE OF SIGNER (Type or print)16A. NAME AND TITLE OF CONTRACTING OFFICER (Type or print) [**Redacted**]15B. CONTRACTOR/OFFEROR15C. DATE SIGNED16B. UNITED STATES OF
AMERICA16C. DATE SIGNED/s/[**Redacted**]3/28/08(Signature of person authorized to sign)(Signature of Contracting Officer)NSN 7540-01-152-8070 Previous edition unusableSTANDARD FORM 30 (REV. 10-83) Prescribed by GSA FAR (48 CFR)
53.243 UNCLASSIFIED
DCONTINUATION SHEETREFERENCE NO. OF DOCUMENT BEING CONTINUED HM157304C0001/P00016PAGE OF33NAME OF OFFEROR OR CONTRACTOR Digital Globe, IncITEM NO. (A)SUPPLIES/SERVICES (B)QUANTITY (C)UNIT (D)UNIT PRICE (E)AMOUNT (F)1. Under Section B,
Supplies or Services and Prices/Costs, Paragraph B.3 Total Contract Price/Total Contract Funding (change page 3 is attached hereto): a. Under CLIN 0001, the Obligated Amount is increased by $9,000,000 from $161,000,000 to $170,000,000 and the
Unfunded Amount i
s decreased by $2,346,605.22 from $84,153,394.78 to $75,153,394.78 b. Under Total, the Obligated Amount is increased by $9,000,000 from $236,970,000 to $245,970,000 and The Unfunded Amount is decreased by $2,346,605.22 from $365,363,394.78 to
$356,363,394.78 2. Under Section G, Contract Administration Data, Paragraph G.8, Accounting and Appropriation Data is revised to reflect the obligation of funding under CLIN 0001. Change page 16 is attached hereto. Delivery: 30 Days After
Award Discount Terms
: [**Redacted**] Delivery Location Code: [**Redacted**] [**Redacted**] Payment: [**Redacted**] FAX Invoices To: [**Redacted**] —CUSTOMER SERVICE [**Redacted**] [**Redacted**]
Period of Performance: 10/01/2006 to 07/31/2009 Change Item 0001 to read as follows (amount shown is the obligated amount): 0001DISCUSS BRACKETED SECTIONS WITH COMPANY [NextView COMMERCIAL IMAGERY PROGRAM Fully Funded Obligation
Amount $245,153,
394.78 Incrementally Funded Amount: $170,000,000.00 Product/Service Code: 7640 Product/Service Description: MAPS, ATLASES, CHARTS, & GLOBES 9,000,000.00[**Redacted**][**Redacted**][**Redacted**]. .NSN
7540-01-152-8067 OPTIONAL FORM 336 (4-86) Sponsored by GSA FAR (48 CFR) 53.110

UNCLASSIFIED

FOR OFFICIAL USE ONLY

WHEN SEPARATED FROM CLASSIFIED ATTACHMENTS

3

 

UNCLASSIFIED

FOR OFFICIAL USE ONLY

WHEN SEPARATED FROM CLASSIFIED ATTACHMENTS

Part II Imagery Acquisition Activities

SECTION B — SUPPLIES OR SERVICES AND PRICES/COSTS

Scope and Period of Performance. This is fixed price contract for the procurement of imagery and
other items and is conducted pursuant to 10 USC Chapter 137. The period of performance of this
Contract is from 01 October 2006 through 31 July 2009.

B.1 Line Item 0001 – Imagery Acquisition COMMERCIAL IMAGERY

The scope of effort for this firm fixed price line item is defined in Attachment 1 Statement of
Work Section 4.2 and Appendix D. CLIN 0001 performance from November 2007 through December 2007 is
on a Pay-by-Imagery basis. Performance from January 1, 2008 through contract completion is on a
Service Level Agreement (SLA) basis. This effort is priced at the amount set forth below.

WV60 Total Estimated FFP: [**Redacted**]

[**Redacted**]

CLIN 0001 will be incrementally funded in accordance with NGA budget and policy provisions. The
Government’s and the Contractor’s continuing obligations under this Contract are contingent upon
the availability of appropriated funds from which payment for contract purposes can be made. No
legal liability on the part of the Government for any payment or on the part of the Contractor for
any performance under any order placed under this Contract may arise until funds are made available
to the Contracting Officer for such task order and until the Contractor receives notice of such
availability in writing by the Contracting Officer.

B.2 Government Option 1

The Contracting Officer may exercise Option 1 at any time by written notice to the Contractor not
less than sixty (60) days in advance of the option period of performance start date. Exercise and
performance of this option is subject to the availability of funding. In the event funds are not
available at option exercise, the following terms and conditions apply: “Funds are not presently
available for this option. The Government’s and the Contractor’s obligations under this Contract
are contingent upon the availability of appropriated funds from which payment for contract purposes
can be made. No legal liability on the part of the Government for any payment or on the part of
the Contractor for any performance may arise until funds are made available to the Contracting
Officer for such option and until the Contractor receives notice of such availability in writing by
the Contracting Officer.”

Line Item 0002 – Government Option 1: IMAGERY DERIVED PRODUCTS AND SERVICES

The scope of effort for this line item is defined in Attachment 1 Statement of Work appendix E.
This effort is estimated at the amount set forth below.

Minimum Amount: $0

Maximum Amount: $265,000,000.00

Estimated Amount: None

Line Item 0002 is an indefinite-quantity line item for the supplies or services and prices as
specified in the Attachment 1 Statement of Work or in separately issued Task Orders (using DD Form
1155), and are effective for the entire period of performance or as specified in the DD Form 1155.
Delivery or performance shall be made only as authorized by orders issued in accordance with the
Statement of Work, Section C. The Contractor shall furnish to the Government, when and if ordered,
the supplies or services specified in Line Item 0002 up to and including the amount designated as
the “maximum.” The Government has no minimum order obligations. Except for the limitations in the
value specified as the maximum amount, there is no limit on the number of orders that may be
issued. The Government may issue orders requiring delivery to multiple destinations or performance
at multiple locations.

UNCLASSIFIED

FOR OFFICIAL USE ONLY

WHEN SEPARATED FROM CLASSIFIED ATTACHMENTS

4

 

UNCLASSIFIED

FOR OFFICIAL USE ONLY

WHEN SEPARATED FROM CLASSIFIED ATTACHMENTS

B.3 Total Contract Price/Total Contract Funding

[**Redacted**]

B.4 Line Item CLIN 0003 — QuickBird New Collections and Imagery Processing

[4 pages **Redacted**]

UNCLASSIFIED

FOR OFFICIAL USE ONLY

WHEN SEPARATED FROM CLASSIFIED ATTACHMENTS

5

 

UNCLASSIFIED

FOR OFFICIAL USE ONLY

WHEN SEPARATED FROM CLASSIFIED ATTACHMENTS

B.5 Line Item CLIN 0004 — Firewire Drives, Other Media and Shipping Expenses

[**Redacted**]

B.6 Line Item CLIN 0005 — System Engineering Services Support

This CLIN is priced at a [**Redacted**]. Line Item 0005 is a time and material level-of-effort
(LOE) item for System Engineering Services Support in accordance with Contract Attachment 5. LOE
support for Attachment 5 paragraphs 1.1.1 through 1.1.6 shall be as directed by the Contracting
Officer’s Representative. Other LOE shall be provided for tasks under paragraph 1.1.7 as directed
by the Contracting Officer.

CLIN 0005 will be incrementally funded in accordance with NGA budget and policy provisions. The
Government’s and the Contractor’s continuing obligations under this CLIN is contingent upon the
availability of appropriated funds from which payment for contract purposes can be made. No legal
liability on the part of the Government for any payment or on the part of the Contractor for any
performance under any task placed under this CLIN may arise until funds are made available to the
Contracting Officer for such tasks and until the Contractor receives notice of such availability in
writing by the Contracting Officer.

UNCLASSIFIED

FOR OFFICIAL USE ONLY

WHEN SEPARATED FROM CLASSIFIED ATTACHMENTS

6

 

UNCLASSIFIED

FOR OFFICIAL USE ONLY

WHEN SEPARATED FROM CLASSIFIED ATTACHMENTS

SECTION C — DESCRIPTION/SPECIFICATIONS/WORK STATEMENT

C.1 — Statement of Work

The Contractor shall provide all personnel, materials, and facilities to furnish the items
specified in Section B of this contract in accordance with the Statement of Work(s), Attachment 1
and Attachment 5.

UNCLASSIFIED

FOR OFFICIAL USE ONLY

WHEN SEPARATED FROM CLASSIFIED ATTACHMENTS

7

 

UNCLASSIFIED

FOR OFFICIAL USE ONLY

WHEN SEPARATED FROM CLASSIFIED ATTACHMENTS

SECTION D — PACKAGING AND MARKING

D.1 Packaging and Marking Instructions Preservation, Packaging, Packing, and Marking of Shipments
(Commercially Packaged Items)

Packing, packaging, and marking shall be in accordance with Section C — Statement of Work. In the
event such are not applicable, packing, packaging, and marking shall be in accordance with standard
commercial practice for domestic shipment, as set forth in the Uniform Freight Classification for
commercial practice, to assure arrival at destination in serviceable condition.

D.2 Prohibited Packing Materials

The use of asbestos, excelsior, newspaper or shredded paper (all types including waxed paper,
computer paper and similar hygroscopic or non-neutral material) is prohibited.

D.3 Markings of Warranted Items

Each item covered by a warranty shall be stamped or marked as such. Where this is impracticable,
written notice shall be attached to or furnished with the warranted item. Markings will state (i)
substance of warranty, (ii) duration, and (iii) name of activity to be notified of defects.
Electronic deliveries shall contain files describing the warranty.

UNCLASSIFIED

FOR OFFICIAL USE ONLY

WHEN SEPARATED FROM CLASSIFIED ATTACHMENTS

8

 

UNCLASSIFIED

FOR OFFICIAL USE ONLY

WHEN SEPARATED FROM CLASSIFIED ATTACHMENTS

SECTION E — INSPECTION AND ACCEPTANCE

E.1 1 Inspection

The inspection or acceptance of work, accomplished and/or items produced or deliverable under this
Contract shall be performed in accordance with the procedures and prerequisites as defined in
Section C — Statement of Work and FAR 52.212-4(a).

E.2 Acceptance Period Unless notification of acceptance or rejection is received earlier, the
Government acceptance shall be deemed to have occurred constructively at 30 days after receipt as
defined in the Statement of Work(s), Attachment 1 and Attachment 5.

E.3 52.246-4 Inspection of Services — Fixed-Price

E.4 Acceptance

Acceptance of items produced under this Contract occurs upon delivery as defined in the Statement
of Work(s), Attachment 1 and Attachment 5.

UNCLASSIFIED

FOR OFFICIAL USE ONLY

WHEN SEPARATED FROM CLASSIFIED ATTACHMENTS

9

 

UNCLASSIFIED

FOR OFFICIAL USE ONLY

WHEN SEPARATED FROM CLASSIFIED ATTACHMENTS

SECTION F — DELIVERIES OR PERFORMANCE

F.1 52.242-17 Government Delay of Work (Apr 1984)

	(1)	     (a)	 	If the performance of all or any part of the work of this contract is delayed or interrupted
(1) by an act of the Contracting Officer in the administration of this contract that is not
expressly or impliedly authorized by this contract, or (2) by a failure of the Contracting
Officer to act within the time specified in this contract, or within a reasonable time if not
specified, an adjustment (excluding profit) shall be made for any increase in the cost of
performance of this contract caused by the delay or interruption and the contract shall be
modified in writing accordingly. Adjustment shall also be made in the delivery or
performance dates and any other contractual term or condition affected by the delay or
interruption. However, no adjustment shall be made under this clause for any delay or
interruption to the extent that performance would have been delayed or interrupted by any
other cause, including the fault or negligence of the Contractor, or for which an adjustment
is provided or excluded under any other term or condition of this contract.

	 	     (b)	 	A claim under this clause shall not be allowed — (1) For any costs incurred more than 20
days before the Contractor shall have notified
the Contracting Officer in writing of the act or failure to act involved; and

	(2)	 	Unless the claim, in an amount stated, is asserted in writing as soon as practicable after
the termination of the delay or interruption, but not later than the day of final payment
under the contract.

F.2 Place of Performance

The principal place of performance under this Contract shall be the Contractor’s facility located
at 1601 Dry Creek Drive, Suite 260, Longmont. CO 80503.

F.3 Consignee and Address

In the event submitted items are classified TOP SECRET, SI/TK or other compartmented categories
they shall be sent through Government approved courier channels to:

[**Redacted**]

Other agreement documentation or non-compartmented classification through SECRET may be forwarded
by registered mail to:

[**Redacted**]

F.4 Personal Delivery

In the event any item under this Contract is personally delivered to the AOR or Contracting
Officer, the Contractor shall obtain a signed receipt in duplicate from the AOR or Contracting
Officer. One copy of the receipt shall be attached to the Contractor’s invoice submitted for
payment for such item(s). Failure to do so may result in delayed payment.

UNCLASSIFIED

FOR OFFICIAL USE ONLY

WHEN SEPARATED FROM CLASSIFIED ATTACHMENTS

10

 

UNCLASSIFIED

FOR OFFICIAL USE ONLY

WHEN SEPARATED FROM CLASSIFIED ATTACHMENTS

F.5 Term of this Contract

This Contract commences upon execution and continues through 31 July 2009. Provisions of this
Contract, which, by their express terms or by necessary implication, apply for periods of time
other than specified herein, shall be given effect, notwithstanding this Article. In the event
requirements exceed the minimum contract amount requirements, the Government reserves the right to
compete the additional requirements.

F.6 Place of Delivery:

a. Primary Delivery: Origin

The articles to be furnished hereunder shall be delivered upon placement by the NextView
Contracting Officer or as designated at the time of tasking.

b. Secondary Delivery: Destination

Finished products shall be transmitted electronically upon NGA request after placement into the
DigitalGlobe NGA Product Archive at no additional charge. If requested, NGA may designate another
media type for delivery at additional expense.

F.7 52.242-15 Stop Work Order (Aug 1989)

UNCLASSIFIED

FOR OFFICIAL USE ONLY

WHEN SEPARATED FROM CLASSIFIED ATTACHMENTS

11

 

UNCLASSIFIED

FOR OFFICIAL USE ONLY

WHEN SEPARATED FROM CLASSIFIED ATTACHMENTS

SECTION G — CONTRACT ADMINISTRATION DATA

G.1 Authority and Designation of an Contracting Officer’s Representative (COR)

(a) Authority. Performance of this Contract is subject to the technical guidance and review of
the Contracting Officer or the designated representative. As used herein, “technical
guidance” is restricted to scientific, engineering or other technical field of discipline
matters directly related to the work to be performed. Such guidance may be provided for the
purposes of filing in details, clarifying, interpreting or otherwise serving to accomplish the
technical objectives and requirements of the Contract. In addition and unless specified
elsewhere in this Contract, the authority of the designated representative is specifically
limited to the technical administration of this Contract and the inspection of supplies being
produced, services being provided or work being performed to assess compliance with the scope,
the Government’s estimated cost share, schedule and technical requirements of the Contract.

(b) Designation. Designation of a Contracting Officer’s Representative (COR) will be accomplished
by issuance of a letter signed by the Contracting Officer. Two copies of the letter, with
reference to this clause, will be provided to the Contractor. The Contractor will acknowledge both
the receipt of the designation and its understanding of the limited authority specified herein, by
signing and returning a copy of the letter to the address indicated. Designation and
acknowledgement may be accomplished via electronic communications.

(c) Notification. The Contracting Officer is the only representative of the government authorized
to negotiate, enter into, modify or take any other action with respect to this Contract.
Therefore, not other employee or representative of the Government has the authority to initiate a
course of action which may alter the terms of this Contract. All revisions to specifications,
requirements or informal commitments that may involve a change in either the total cost/price,
scope, delivery schedule or legal aspects of this Contract must be accomplished by change order or
supplemental Contract, to be negotiated and signed by the Contracting Officer. Should any action
by Government personnel (other that the Contracting Officer) imply a commitment on the part of the
Government, which would effect the terms of this Contract, the Contractor must notify the
Contracting Officer and obtain approval prior to proceeding. Otherwise, the Contractor proceeds at
its own risk.

G.2 Novation/Change of Name Notification Requirement

(a) For the purposes of this Contract, any transfer of all or substantially all of the Contractor’s
assets to a third party, or change to the Contractor’s name will be processed in a centralized
manner. The Contractor shall notify the Contracting Officer of any such proposed change.

(b) The Contractor shall provide written notification to the staff via facsimile within (30) thirty
days of any aforementioned changes. Along with details of the change, the notification shall
provide a point of contact name, title, clearance level, and phone and fax numbers.

(c) After receiving this notification, the Contractor designee will receive a letter with
instructions to assist in the preparation of the novation/change-of-name package. This Agency will
typically recognize Other Government Agency (OGA) Agreements; however, we have unique security
requirements that must be addressed prior to formally accepting these agreements.

(d) The Contractor is reminded that it must continue to invoice under its former name on existing
agreements until this Agency accepts your novation and/or change-of-name agreement by issuance of a
letter recognizing the agreement. In addition, the Contractor is NOT authorized to request changes
to its banking information to recognize a successor company on existing agreements until this
Agency accepts the Contractor’s novation and/or change-of-name agreement. Any delays in submitting
the required information may impact the Contractor’s ability to invoice.

(e) A submission of a novation or name change agreement does not guarantee approval by this
organization and if a change is deemed unacceptable, the Contractor will remain under contractual
obligation to perform. The Contract may be terminated for reasons of default should the Contractor
not perform.

UNCLASSIFIED

FOR OFFICIAL USE ONLY

WHEN SEPARATED FROM CLASSIFIED ATTACHMENTS

12

 

UNCLASSIFIED

FOR OFFICIAL USE ONLY

WHEN SEPARATED FROM CLASSIFIED ATTACHMENTS

G.3 52.232-33 Payments Electronic Funds Transfer — Central Contractor Registration (May 1999)

G.4 Contract Administration

The component listed in Block 7 of the face page of this contract will be the Contract
Administration Office in performance of certain assigned contract administration functions of the
Contracting Office in accordance with FAR 42.201. The Contract Administration Office (CAO)
assigned responsibility for this contract will advise the Contractor of any necessary instructions
and procedures to be followed in dealing with any applicable Government offices.

G.5 Remittance Address

[**Redacted**]

G.6 Invoices

Invoices for Line Item 0001 shall be submitted on a monthly basis for the deliveries within the
preceding month. At the same time as submittal of the original invoice, the Contractor shall send
a copy of each invoice to:

	 	 	 
	Addressee	 	Address
	Contracting Officer:

	 	[**Redacted**]
	 
	 	 
	Contracting Officer’s Representative (COR)

	 	[**Redacted**]

     Payments for orders shall be made as follows:

	 	(a)	 	Orders placed by the Government on the optional line items may utilize either
credit card payment procedures or DFAS payment procedures. The determination regarding
which method of payment will be used on individual orders will be made by the
Government at the time of order issuance. The Government will suspend the use of
credit card payment procedures upon a determination by the Contracting Officer that the
Contractor is not in compliance with the instructions set forth below. The following
specific instruction is provided for each of these payment procedures:

	 	(i)	 	CREDIT CARD PAYMENT — Orders placed using credit card payment
procedures will specify that credit card payment is authorized. The order will
further specify the ordering Contracting Officer. All necessary credit card
information will be provided in advance for Contractor use. The Contractor
shall charge only the credit card of the ordering Contracting Officer.
	 
	 	 	 	The Contractor shall be responsible for ensuring that the Government order
information is passed through the credit card information network and that
the information is received by the Contracting Officer. This information
shall be entered and passed in accordance with the following example format:

	 	 	 
	AAxxxx
	 	1,2,3,4,5

	 	 	 	Where AAxxxx is the order number, ‘xxxx’ represents the four-digit suffix
and ‘1,2,3,4,5’ represents order line item numbers under the order. Charges
for multiple order line items will identify each line item separated by a
comma with no spaces. The Contractor may charge for a single order line
item or a combination of line items under the same order on a single credit
card charge. When a partial delivery of an order line

UNCLASSIFIED

FOR OFFICIAL USE ONLY

WHEN SEPARATED FROM CLASSIFIED ATTACHMENTS

13

 

UNCLASSIFIED

FOR OFFICIAL USE ONLY

WHEN SEPARATED FROM CLASSIFIED ATTACHMENTS

	 	 	 	item number is
authorized, the Contract may charge for partial delivery of an order line
item.
	 
	 	 	 	The credit card charge and the order information passed through the credit
card information network will represent the complete invoice. The
Contractor shall not issue an additional invoice in any form separate from
the credit card charging process.
	 
	 	(ii)	 	DFAS PAYMENT — Order utilizing DFAS as the payment office will
specify the appropriate DFAS payment office if different from the DFAS office
noted in this Contract. Copies of the invoice will be provided to the
following individuals simultaneously:

	 	(1)	 	Contracting Officer specified on each order
	 
	 	(2)	 	DFAS office as specified on each order
	 
	 	(3)	 	Receiving office as specified on each order

G.7 DELETED

UNCLASSIFIED

FOR OFFICIAL USE ONLY

WHEN SEPARATED FROM CLASSIFIED ATTACHMENTS

14

 

UNCLASSIFIED

FOR OFFICIAL USE ONLY

WHEN SEPARATED FROM CLASSIFIED ATTACHMENTS

G.8 Accounting and Appropriation Data 

[**Redacted**]

UNCLASSIFIED

FOR OFFICIAL USE ONLY

WHEN SEPARATED FROM CLASSIFIED ATTACHMENTS

15

 

UNCLASSIFIED

FOR OFFICIAL USE ONLY

WHEN SEPARATED FROM CLASSIFIED ATTACHMENTS

SECTION H — SPECIAL CONTRACT REQUIREMENTS

H.1 Security Requirements — Contract Classification

The association of the Government with the Contractor is unclassified in accordance with the DD254.
The maximum work to be performed is classified Top Secret/SCI. The maximum classification of
reports is classified Top Secret/SCI. The maximum classification of hardware is classified Top
Secret/SCI. This classified information shall be divulged only on a need to know basis, and then
only to those who have been authorized in writing by the Contracting Officer. Correspondence
originated by the Contractor and/or data to be submitted, the contents of which contain classified
information shall be stamped by you with the appropriate classification in accordance with the
DD254.

H.2 Past Performance Information — Referencing Agency Contracts

This Contract may be listed as a reference for past performance purposes in offers submitted to
agencies and organizations within the Intelligence Community. The Contractor shall obtain
Contracting Officer Approval prior to releasing any information about this Contract outside the
Intelligence Community.

H.3 Compliance With the Constitution and Statutes of the United States

Nothing in this Contract shall be construed to authorize any activity in violation of the
Constitution or Statutes of the United States.

H.4 Organizational Conflict of Interest

(a) If the Contractor is aware of any information bearing on any existing or potential
organizational conflict of interest, it shall provide a disclosure statement which describes all
relevant information concerning any past, present, or planned interests bearing on whether it
(including its chief executives and directors, or any proposed consultant or subcontractor) may
have an existing or potential organizational conflict of interest.

(b) Contractors should refer to FAR Subpart 9.5 for policies and procedures for avoiding,
neutralizing, or mitigating organizational conflicts of interest.

(c) If the Contracting Officer determines that a conflict exists or may occur, he shall advise the
Contractor and take appropriate steps to avoid or otherwise resolve the conflict through the
inclusion of a special agreement clause or other appropriate means. The terms of any special clause
are subject to negotiation.

H.5 Intention to Use Consultants

(a) The Government intends to utilize the services of non-governmental engineering organizations in
technical, advisory and consulting roles for overall technical and business review of the
activities. Although the consultants shall not have the right of technical direction, they shall
from time to time and on a frequent basis attend technical reviews, participate in technical
interchange meetings, observe national processing, witness fabrication and assembly, and monitor
testing within the Contractor and Subcontractor facilities. Such consultants will be involved in
providing advice to the Government concerning viability of technical approaches, utilization of
acceptable procedures, value and results of tests, and the like. The consultants will thus require
access to program-related Contractor facilities and documentation. The Contractor agrees to allow
such use and release of its proprietary data by those consultants for purposes directly related to
this Contract. Those consultants are prohibited from using or releasing the Contractor’s
proprietary data for any other purpose.

(b) Should the Contractor have any questions regarding the consultant’s requests, NGA agrees to
facilitate the requests and minimize intrusiveness to the maximum extent possible.

UNCLASSIFIED

FOR OFFICIAL USE ONLY

WHEN SEPARATED FROM CLASSIFIED ATTACHMENTS

16

 

UNCLASSIFIED

FOR OFFICIAL USE ONLY

WHEN SEPARATED FROM CLASSIFIED ATTACHMENTS

H.6 5x52.227-9000 UNAUTHORIZED USE OF NGA NAME, SEAL, AND INITIALS

(a) As provided in 10 U.S.C. Section 425, no person may, except with the written permission of the
both the Secretary of Defense and the Director of Central Intelligence, knowingly use the words
“National Geospatial-Intelligence Agency”, “National Imagery and Mapping Agency” or “Defense
Mapping Agency”, the initials “NGA”, “NIMA” or “DMA”, the seal of the National
Geospatial-Intelligence Agency, National Imagery and Mapping Agency or the Defense Mapping Agency,
or any colorable imitation of such words, initials, or seal in connection with any merchandise,
retail product, impersonation, solicitation, or commercial activity in a manner reasonably
calculated to convey the impression that such use is approved, endorsed, or authorized by the both
the Secretary of Defense and the Director of Central Intelligence.

(b) Whenever it appears to the U. S. Attorney General that any person is engaged or about to
engage in an act or practice which constitutes or will constitute conduct prohibited by paragraph
(a), the Attorney General may initiate a civil proceeding in a district court of the United States
to enjoin such act or practice. Such court shall proceed as soon as practicable to hearing and
determination of such action and may, at any time before final determination, enter restraining
orders or prohibitions, or take such other action as is warranted, to prevent injury to the United
States, or to any person or class of persons for whose protection the action is brought.

H.7 FOREIGN AFFILIATES

U.S. Government collection requirements and tasking may be released to the Contractor’s foreign
regional affiliates or partners for effecting collection only, unless expressly restricted in
writing by NGA. If a term in the Contractor’s NOAA operating license conflicts with the terms and
conditions of this contract, the terms and conditions of this NGA contract may be renegotiated.

H.8 SENSITIVE REQUIREMENTS AND PRODUCT HANDLING

NGA has the responsibility to identify its requirements as sensitive or non-sensitive. A sensitive
requirement may be classified or unclassified and yet require transference to the Contractor via
secure communications channels and receive special handling throughout the order fulfillment
process. Once the requirement is received it shall be treated in such a way as to not identify the
customer as NGA throughout the process, and not create any signatures external to the Contractor
that would flag it as “sensitive” or “special.” After the required imagery has been collected and
processed, it shall be delivered to the Contractor-maintained NGA Product Archive for access
without restriction to NGA authorized users. If the sensitive imagery is requested for delivery on
media, it shall be handled in such a manner that it is not intermingled with the shipment of NGA
imagery resulting from conventional (non-sensitive) orders.

Metadata resulting from the collection of sensitive requirements shall not be publicly accessible
from the Contractor’s public metadata catalog while imagery resulting from the collection of
sensitive requirements shall not be publicly accessible. There shall be no visibility to the
existence of the sensitive imagery or metadata by commercial customers, partners and regional
distributors without the specific approval of the government. This is not intended to preclude the
use of ground receiving stations controlled by the CDP. The tasking, receipt, and transfer of
sensitive data shall not make use of Contractor’s regional affiliates and partners for handling the
order and product without specific approval of the government. To control the period of
non-visibility of the sensitive imagery, contractors shall provide NGA with limited exclusive
rights to the products’ use. These rights will be of limited duration. Contractors shall provide
options for indefinite non-visibility. Sensitive requirements shall be specified with the
collection requirement. With the exception of images designated as having limited exclusive
rights, contractors shall be authorized to publish in their catalog and offer for sale, any images
collected, processed, licensed, and delivered to NGA and its customers and its partners.

H.9 LIMITATION OF LIABILITY

(a) THE GOVERNMENT’S MONETARY LIABILITY UNDER THIS CONTRACT AT ANY POINT IN TIME SHALL NOT EXCEED
THE GOVERNMENT FUNDS OBLIGATED UNDER THIS CONTRACT MINUS THE GOVERNMENT FUNDS ALREADY PAID TO THE
CONTRACTOR PURSUANT TO THIS CONTRACT.

(b) The total funding amount obligated and available for payment under this Contract is set forth
in Section B. The total anticipated funding for the performance of this Contract is not presently
available. It is anticipated that from time to time additional funds will become available and
obligated under this Contract until the total funding is available and obligated. However, there
is no guarantee that any additional Government funds other than is currently obligated under this
Contract shall ever become available for the entire effort contemplated by this Contract.

(d) The provisions of this clause with respect to termination shall in no way be deemed to limit
the rights of the Government under the Termination for Cause clause of this Contract.

(e) Nothing in this clause shall affect the right of the Government to terminate this contract
pursuant to the Termination for Convenience clause of this Contract.

H.10 CONTRACTOR PERSONNEL

The Contractor agrees to assign only personnel who are citizens of the United States of America to
work on the Government’s premises. Further, only such persons as have been authorized by the
Contracting Officer or the Contracting Officer’s Technical Representative shall be assigned to this
work. In this connection, for identification purposes, the Contractor will be required to submit
the name, address, place and date of birth of all personnel who will work on the Government’s
premises. All Foreign Nationals assigned to work on NextView shall be identified. Non-cleared
personnel shall not be made aware of any association or classified information. Issues regarding
access to classified or sensitive information will be dealt with on a case-by-case basis. NGA is
committed to facilitating the Contractor’s capability to utilize the skills of the best personnel
available.

H.11 TERMINATION LIABILITY

The ceiling for Government liability for Cancellation costs (see section I.54, clause 52.217-2) and
Termination for Convenience costs shall be equivalent to the funds obligated on the contract minus
the payments made under the contract as set forth in the Limitation of Liability clause.

H.12 Security Requirements

(a) The Contractor is obligated to comply with all relevant clauses and provisions incorporated
into this Contract and with the “Contractor Secrecy and Security Contract”, Form 4177, and as
referenced therein, the “National Industrial Security Program Operating Manual (NISPOM)” dated
January 1995 and a special classified compartment area security manual referenced in the Contract
as Addendum A, including any successor documents, revisions, or amendments to either or both
documents when furnished to the Contractor and maintain a security program that meets the
requirements of these documents.

(b) Security requirements are a material condition of this Contract. This Contract shall be subject
to immediate termination for default when it has been determined by the Contracting Officer that a
failure to fully comply with the security requirements of this Contract resulted from the willful
misconduct or lack of good faith on the part of any one of the Contractor’s directors or officers,
or on the part of any of the managers, superintendents, or equivalent representatives of the
Contractor who have supervision or direction of:

(1) All or substantially all of the Contractor’s business, or

(2) All or substantially all of the Contractor’s operations at any one plant or separate location
in which this Contract is being performed, or

(3) A separate and complete major industrial operation in connection with the performance of this
Contract.

(c) When deficiencies in the Contractor’s security program are noted which do not warrant immediate
default, the Contractor shall be provided a written notice of the deficiencies and be given a
period of 90 days in which to take corrective action. If the Contractor fails to take the necessary
corrective action, the Contracting Officer may terminate the whole or any part of this Contract for
default. The Contractor shall maintain and administer, in accordance with all relevant clauses and
provisions set forth or incorporated into this Contract and with a security program that meets the
requirements of these documents.

(d) When it is deemed necessary to disclose classified information to a Subcontractor in order to
accomplish the purposes of this Contract, the Contractor shall request permission of the
Contracting Officer prior to such disclosure. The Contractor agrees to include in all subcontracts
all appropriate security provisions pertaining to this Contract.

(e) Classification Authority — Executive Order 12958 dated 20 April 1995, “Classified National
Security Information,” and implementation directives, provides principles and procedures for the
proper classification and declassification of material. These principles and procedures are
applicable to classified documents or materials generated by the Contractor in performance of this
Contract.

(f) Identification and Markings — The classification of documentation shall comply with the
guidelines set forth in Executive Order 12958.

(g) Each classified document shall indicate which paragraphs or, other portions, including subjects
and titles, are classified and which are unclassified. The symbol “(TS)” for Top Secret, “(S)” for
Secret, “(C)” for Confidential, and “(U)” for Unclassified will be placed at the beginning of the
text to which it applies. Non-text portions of a document, such as photographs, graphs, charts, and
maps, will be marked in a readily discernible manner, as will their captions.

(h) Subjects and titles should be selected so as not to require classification. When a classified
subject or title must be used, a short title or other unclassified identifier should be assigned to
facilitate receipting and reference, if such an identifier (e.g., a report number or registry
number) will not otherwise be assigned.

(i) Downgrading and Declassification — No classified document or material provided by the
Government, or generated by the Contractor pursuant to the Contract, may be downgraded or
declassified unless authorized in writing by the NGA Contracting Officer.

(j) References made to the clause entitled “Non-Publicity” — Violations of this clause constitute
a major breach of Contract and the Contract may be terminated for default, without the requirement
of a 10-day cure notice.

(k) The Contractor shall report all contacts described in the NISPOM section 3-Reporting
Requirements as promptly as possible, but in no event later than two business days after receipt of
such knowledge to the NGA Contracting Officer Representative (COR).

(l) If, subsequent to the date of this Contract, the security requirements under this Contract are
changed by the Government, as provided in this clause, and the security costs or time required for
delivery under this Contract are thereby increased or decreased, the Contract cost, delivery
schedule, or both, and any other provision of this Contract which may be affected shall be subject
to an equitable adjustment in accordance with the procedures in the Changes clause of this
Contract.

UNCLASSIFIED

FOR OFFICIAL USE ONLY

WHEN SEPARATED FROM CLASSIFIED ATTACHMENTS

17

 

UNCLASSIFIED

FOR OFFICIAL USE ONLY

WHEN SEPARATED FROM CLASSIFIED ATTACHMENTS

H.13 Security Requirements — Clearances

The Contractor shall request clearances required to perform under this Contract. NGA will
facilitate processing required clearances.

H.14 DISCLOSURE OF FOREIGN OWNERSHIP, CONTROL, OR INFLUENCE

(a) Definitions. As used in this provision:

	 	(1)	 	Effectively owned or controlled means that a foreign entity has the power, either
directly or indirectly, whether exercised or exercisable, to control the election,
appointment, or tenure of the offeror’s officers or a majority of the offeror’s board of
directors by any means, e.g., ownership, contract, or operation of law (or equivalent power
for unincorporated organizations).
	 
	 	(2)	 	Foreign entity includes the state and the government of any country (other than the
United States and its possessions and trust territories); any political subdivision, agency,
or instrumentality thereof; any foreign corporation or other business form; as well as any
foreign individual.
	 
	 	(3)	 	Proscribed information means:

	 	(i)	 	Top Secret information;
	 
	 	(ii)	 	Communications Security (COMSEC) information, except classified keys used to operate
secure telephone units (STU-IIIs);
	 
	 	(iii)	 	Restricted Data as defined in the U.S. Atomic Energy Act of 1954, as amended;
	 
	 	(iv)	 	Special Access Program (SAP) information; or
	 
	 	(v)	 	Sensitive Compartmented Information (SCI).

(b) Disclosure. Offerors responding to this Request for Proposal (RFP) are advised that it is the
Government’s intent to secure services or equipment from firms which are not under foreign
ownership, control, or influence (FOCI) or where any FOCI may, in the opinion of the Government,
adversely impact on security requirements. Accordingly, all offerors responding to this RFP are
required to certify that no foreign ownership or controlling interest exists by submitting one of
the following with their offer: SF 328 Certificate Pertaining to Foreign Interests; or

FOCI Certification (below) that a current SF 328, submitted within the past five years, is on file
with NGA (specify the RFP or contract number for which the form was submitted), and that the
representations and certifications contained in that disclosure have not changed.

H.15 Security Requirements — Software Certification

(a) The Contractor certifies that it will undertake to ensure that any software to be provided or
any Government Furnished Software to be returned, under this Contract will be provided or returned
free from computer virus, which could damage, destroy, or maliciously alter software, firmware, or
hardware, or which could reveal to unauthorized persons any data or other information accessed
through or processed by the software.

(b) The Contractor shall immediately inform the Contracting Officer when it has a reasonable
suspicion that any software provided or returned, to be provided or returned, or associated with
the production may cause the harm described in paragraph (a) above.

(c) If the Contractor intends to include in the delivered software any computer code not essential
to the contractual requirement, this shall be explained in full detail to the Contracting Officer
and COR.

UNCLASSIFIED

FOR OFFICIAL USE ONLY

WHEN SEPARATED FROM CLASSIFIED ATTACHMENTS

18

 

UNCLASSIFIED

FOR OFFICIAL USE ONLY

WHEN SEPARATED FROM CLASSIFIED ATTACHMENTS

(d) The Contractor acknowledges its duty to exercise reasonable care, to include the following, in
the course of contract performance:

(1) Using on a regular basis current versions of commercially available anti-virus software
to guard against computer viruses when introducing maintenance, diagnostic, or other
software into computers; and

(2) Prohibiting the use of non-Contract related software on computers, especially from
unknown or unreliable sources.

H.16 152.204-712 Personal Conduct

(a) The Contractor and its employees shall comply with conduct requirements in effect at the
Government’s work site. The Government reserves the right to exclude or remove from the site any
employee of the Contractor or of a subcontractor whom the Government reasonably deems careless,
uncooperative, or whose continued employment on the work is deemed by the Government to be contrary
to the public interest.

(b) The Contractor shall inform its employees that the Agency has a zero tolerance policy for
harassing behavior and that it shall not be tolerated. Any Contractor employee who is found to be
culpable in incidents of harassment shall be immediately escorted from the premises and denied
further access. This policy creates a greater burden upon the conduct of Contractor employees. The
Contractor shall emphasize this fact to its employees.

(c) Exclusion under the circumstances described in this clause shall not relieve the Contractor
from full performance of the requirements of this Contract, nor will it provide the basis for any
claims against the Government.

H.17 Incorporation of Section K, Representation Certifications, and Other Statements of Offeror

SECTION K dated October 30, 2003 is incorporated herein by reference and made a part of this
Contract.

H.18 Reserved

H.19 Key Personnel

[**Redacted**].

H.20 Reserved

H.21 NextView IMAGERY END USER LICENSE AGREEMENT

a. General Terms

     1. This clause applies to all unprocessed sensor data and requirements-compliant processed
imagery, imagery services, imagery-derived products and imagery support data licensed under this
Contract. No other clauses related to intellectual property or data rights of any sort shall have
any effect related to the unprocessed sensor data and requirements-compliant processed imagery,
imagery services, imagery-derived products and imagery support data delivered under this Contract.

     2. All license rights for use of the unprocessed sensor data and requirements-compliant
processed imagery, imagery services, imagery-derived products and imagery support data provided to
the U.S. Government purchased under this NGA contract are in perpetuity.

     3. Licensed users may generate an unlimited number of hardcopies and softcopies of the
unprocessed sensor data and requirements-compliant processed imagery, imagery services,
imagery-derived products and imagery support data for their use.

     4. (i) Licensed users may generate any derived product from the licensed unprocessed sensor
data; and requirements-compliant processed imagery, imagery services, imagery-derived products and
imagery support data.

         (ii) Unprocessed sensor data and requirements-compliant processed imagery, imagery services,
imagery-derived products and imagery support data licensed under this NGA contract have no
restrictions on use and distribution, but shall contain the copyright markings.

b. Licensed Users

     1. The imagery may be used by the U.S. Government (including, all branches, departments,
agencies, and offices).

     2. The U.S. Government may provide the imagery to the following organizations:

State Governments

Local Governments

Foreign Governments and inter-governmental organizations

NGO’s and other non-profit organizations

     3. In consideration for the flexibility afforded to the U.S. Government by allowing
unprocessed sensor data and requirements-compliant processed imagery, imagery services,
imagery-derived products and imagery support data to be shared, the United States Government shall
use its reasonable best efforts to minimize the effects on commercial sales. Acquisition and
dissemination of imagery and imagery products collected within the United States shall be
restricted in accordance with law and regulation.

H.22 Warranty

DigitalGlobe provides a limited warranty for 30 days that the Products delivered will be of the
area of interest ordered and the media used to carry the Products will be free from physical or
material defects. DigitalGlobe’s sole liability shall be to replace the media if the media (not
the software or data encoded thereon) is defective and NGA returns such to DigitalGlobe within 30
days of delivery. WITH THE EXCEPTION OF THE PROCEEDING WARRANTY, AND IRRESPECTIVE OF ANY OTHER
TERM IN THIS CONTRACT TO THE CONTRACT, THE PRODUCTS ARE PROVIDED WITHOUT WARRANTY OF ANY KIND, AND
ALL WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE ARE DISCLAIMED.
DIGITALGLOBE DOES NOT WARRANT THAT THE PRODUCTS WILL MEET NGA’S NEEDS OR EXPECTATIONS, OR THAT
OPERATIONS OF THE PRODUCTS WILL BE ERROR FREE OR UNINTERRUPTED. NO INFORMATION PROVIDED BY
DIGITALGLOBE OR ITS AGENTS, EMPLOYEES, OR ITS RESELLERS OR DISTRIBUTORS SHALL CREATE A WARRANTY, OR
IN ANY WAY INCREASE

UNCLASSIFIED

FOR OFFICIAL USE ONLY

WHEN SEPARATED FROM CLASSIFIED ATTACHMENTS

19

 

UNCLASSIFIED

FOR OFFICIAL USE ONLY

WHEN SEPARATED FROM CLASSIFIED ATTACHMENTS

THE SCOPE OF THIS LIMITED WARRANTY, AND NGA IS NOT ENTITLED TO RELY ON ANY SUCH INFORMATION. Nothing in this clause impacts the Government’s rights under the inspection and
acceptance clause of this contract.

H.23 Government Property

(a) The Government shall deliver to the Contractor, at the time and locations stated in this
Agreement, the Government-furnished property in “as is” condition described in the Schedule or
specifications.
(b) Title to Government-furnished property shall remain in the Government. The Contractor shall use
the Government-furnished property only in connection with the performance of work under this
Agreement. The Contractor shall maintain adequate property control records in accordance with sound
industrial practice and will make such records available for Government inspection at all
reasonable times.
(c) Upon delivery of Government-furnished property to the Contractor, the Contractor assumes the
risk and responsibility for its loss or damage, except-

     (1) For reasonable wear and tear;

     (2) To the extent property is consumed in performing this Agreement; or

     (3) As otherwise provided for by the provisions of this Agreement.

(d) Upon completing this Agreement, the Contractor shall follow the instructions of the Agreements
Officer regarding the disposition of all Government-furnished property not consumed in performing
this Agreement or previously delivered to the Government. The Contractor shall prepare for
shipment, deliver f.o.b. origin, or dispose of the Government property, as may be directed or
authorized by the Agreements Officer. The net proceeds of any such disposal shall be credited to
the Agreement price or shall be paid to the Government as directed by the Agreements Officer.

(e) If this contract is to be performed outside the Untied States and its outlying areas, the words
“Government” and “Government-furnished” (wherever they appear in this clause) shall be construed as
“United States Government” and “United States Government-furnished,” respectively.

H.24 Non-Publicity

The Contractor shall not use or allow to be used any aspect of this solicitation and/or contract
for publicity, advertisement purposes, or as a reference for new business. This shall include, but
is not limited to, the use of the terms “ISSA” or “ISA” or any other sponsor specific terms in any
public employment advertisements. It is further understood that this obligation shall not expire
upon completion or termination of this contract, but will continue indefinitely. The Contractor may
request a waiver or release from the foregoing, but shall not deviate there from unless authorized
to do so in writing by the Contracting Officer. Contractors are not required to obtain waivers when
informing offices within this Agency of contracts it has performed or is in the process of
performing provided there are no security restrictions. Contractors may include the requirement for
security clearances up to the TS/SCI level in public employment advertisements.

H.25 Warranty of Services (May 2001)

(a) Definitions. “Acceptance,” as used in this clause, means the act of an authorized
representative of the Government by which the Government assumes for itself, or as an agent of
another approves specific services, as partial or complete performance of the contract.

(b) Notwithstanding inspection and acceptance by the Government or any provision concerning the
conclusiveness thereof, the Contractor warrants that all services performed under this contract
will, at the time of acceptance, be free from defects in workmanship and conform to the
requirements of this contract. The Contracting Officer shall give written notice of any defect or
nonconformance to the Contractor “within 30 days from the date of acceptance by the Government for
the service provided.” This notice shall state either —

(1) That the Contractor shall correct or reperform any defective or nonconforming services within a
period of 90 days; or

(2) That the Government does not require correction or reperformance.

UNCLASSIFIED

FOR OFFICIAL USE ONLY

WHEN SEPARATED FROM CLASSIFIED ATTACHMENTS

20

 

UNCLASSIFIED

FOR OFFICIAL USE ONLY

WHEN SEPARATED FROM CLASSIFIED ATTACHMENTS

(c) If the Contractor is required to correct or reperform, it shall be at no cost to the
Government, and any services corrected or reperformed by the Contractor shall be subject to this
clause to the same extent as work initially performed. If the Contractor fails or refuses to
correct or reperform, the Contracting Officer may, by contract or otherwise, correct or replace
with similar services and charge to the Contractor the cost occasioned to the Government thereby,
or make an equitable adjustment in the contract price or the Contract Line Item may be terminated.

UNCLASSIFIED

FOR OFFICIAL USE ONLY

WHEN SEPARATED FROM CLASSIFIED ATTACHMENTS

21

 

UNCLASSIFIED

FOR OFFICIAL USE ONLY

WHEN SEPARATED FROM CLASSIFIED ATTACHMENTS

H.26 NGA: 5X52.227-9001 Activities That Affect U.S. Persons (DEC 2004)

This contract is sponsored by the National Geospatial-Intelligence Agency. All work and services
to be performed hereunder shall be in strict compliance with procedures set forth in DoD 5240.1-R

UNCLASSIFIED

FOR OFFICIAL USE ONLY

WHEN SEPARATED FROM CLASSIFIED ATTACHMENTS

22

 

UNCLASSIFIED

FOR OFFICIAL USE ONLY

WHEN SEPARATED FROM CLASSIFIED ATTACHMENTS

SECTION I — CONTRACT CLAUSES

Contract Terms and Conditions — Commercial Items (Oct. 2003)

(a) Inspection/Acceptance. The Contractor shall only tender for acceptance those items that conform
to the requirements of this contract. The Government reserves the right to inspect or test any
supplies or services that have been tendered for acceptance. The Government may require repair or
replacement of nonconforming supplies or reperformance of nonconforming services at no increase in
contract price. The Government must exercise its post-acceptance rights — (1) Within a reasonable
time after the defect was discovered or should have been discovered; and (2) Before any substantial
change occurs in the condition of the item, unless the change is due to the defect in the item.

(b) Assignment. The Contractor or its assignee may assign its rights to receive payment due as a
result of performance of this contract to a bank, trust company, or other financing institution,
including any Federal lending agency in accordance with the Assignment of Claims Act (31
U.S.C.3727). However, when a third party makes payment (e.g., use of the Government wide commercial
purchase card), the Contractor may not assign its rights to receive payment under this contract.

(c) RESERVED.

(d) Disputes. This contract is subject to the Contract Disputes Act of 1978, as amended (41 U.S.C.
601-613). Failure of the parties to this contract to reach agreement on any request for equitable
adjustment, claim, appeal or action arising under or relating to this contract shall be a dispute
to be resolved in accordance with the clause at FAR 52.233-1, Disputes, which is incorporated
herein by reference. The Contractor shall proceed diligently with performance of this contract,
pending final resolution of any dispute arising under the contract.

(e) Definitions. The clause at FAR 52.202-1, Definitions, is incorporated herein by reference.

(f) Excusable delays. The Contractor shall be liable for default unless nonperformance is caused by
an occurrence beyond the reasonable control of the Contractor and without its fault or negligence
such as, acts of God or the public enemy, acts of the Government in either its sovereign or
contractual capacity, fires, floods, epidemics, quarantine restrictions, strikes, unusually severe
weather, and delays of common carriers. The Contractor shall notify the Contracting Officer in
writing as soon as it is reasonably possible after the commencement of any excusable delay, setting
forth the full particulars in connection therewith, shall remedy such occurrence with all
reasonable dispatch, and shall promptly give written notice to the Contracting Officer of the
cessation of such occurrence.

(g) Invoice.

	 	(1)	 	The Contractor shall submit an original invoice and three copies (or electronic
invoice, if authorized) to the address designated in the contract to receive invoices. An
invoice must include —

	 	(i)	 	Name and address of the Contractor;
	 
	 	(ii)	 	Invoice date and number;
	 
	 	(iii)	 	Contract number, contract line item number and, if applicable, the order
number;
	 
	 	(iv)	 	Description, quantity, unit of measure, unit price and extended price of
the items delivered;
	 
	 	(v)	 	Shipping number and date of shipment, including the bill of lading number
and weight of shipment if shipped on Government bill of lading;

UNCLASSIFIED

FOR OFFICIAL USE ONLY

WHEN SEPARATED FROM CLASSIFIED ATTACHMENTS

23

 

UNCLASSIFIED

FOR OFFICIAL USE ONLY

WHEN SEPARATED FROM CLASSIFIED ATTACHMENTS

	 	(vi)	 	Terms of any discount for prompt payment offered;
	 
	 	(vii)	 	Name and address of official to whom payment is to be sent;
	 
	 	(viii)	 	Name, title, and phone number of person to notify in event of defective invoice;
and
	 
	 	(ix)	 	Taxpayer Identification Number (TIN). The Contractor shall include its TIN
on the invoice only if required elsewhere in this contract.
	 
	 	(x)	 	Electronic funds transfer (EFT) banking information.

	 	(A)	 	The Contractor shall include EFT banking information on the invoice
only if required elsewhere in this contract.
	 
	 	(B)	 	If EFT banking information is not required to be on the invoice, in
order for the invoice to be a proper invoice, the Contractor shall have submitted
correct EFT banking information in accordance with the applicable solicitation
provision, contract clause (e.g., 52.232-33, Payment by Electronic Funds
Transfer-Central Contractor Registration, or 52.232-34, Payment by Electronic Funds
Transfer-Other Than Central Contractor Registration), or applicable agency
procedures.
	 
	 	(C)	 	EFT banking information is not required if the Government waived the
requirement to pay by EFT.

	 	(2)	 	Invoices will be handled in accordance with the Prompt Payment Act (31 U.S.C. 3903)
and Office of Management and Budget (OMB) prompt payment regulations at 5 CFR part 1315.

(h) Patent indemnity. Not applicable – the Government is not granting the Contractor authorization
or consent to infringe patents or copyrights.

(i) Payment.

(1) Items accepted. Payment shall be made for items accepted by the Government that
have been delivered to the delivery destinations set forth in this contract.

(2) Prompt Payment. The Government will make payment in accordance with the Prompt
Payment Act (31 U.S.C. 3903) and prompt payment regulations at 5 CFR Part 1315.

(3) Electronic Funds Transfer (EFT). If the Government makes payment by EFT, see
52.212-5(b) for the appropriate EFT clause.

(4) Discount. In connection with any discount offered for early payment, time shall be
computed from the date of the invoice. For the purpose of computing the discount
earned, payment shall be considered to have been made on the date which appears on the
payment check or the specified payment date if an electronic funds transfer payment is
made.

(5) Overpayments. If the Contractor becomes aware of a duplicate contract financing or
invoice payment or that the Government has otherwise overpaid on a contract financing
or invoice payment, the Contractor shall immediately notify the Contracting Officer
and request instructions for disposition of the overpayment.

(j) Risk of loss. 52.246-16 — Responsibility for Supplies. (a) Title to supplies furnished
under this contract shall pass to the Government upon acceptance, regardless of when or where the
Government takes physical possession, unless the contract specifically provides for earlier passage
of title as found in Section E, Acceptance.

UNCLASSIFIED

FOR OFFICIAL USE ONLY

WHEN SEPARATED FROM CLASSIFIED ATTACHMENTS

24

 

UNCLASSIFIED

FOR OFFICIAL USE ONLY

WHEN SEPARATED FROM CLASSIFIED ATTACHMENTS

(k) Taxes. The contract price includes all applicable Federal, State, and local taxes and duties.

(l) Termination for the Government’s convenience. The Government reserves the right to terminate
this contract, or any part hereof, for its sole convenience. In the event of such termination, the
Contractor shall immediately stop all work hereunder and shall immediately cause any and all of its
suppliers and subcontractors to cease work. Subject to the terms of this contract, the Contractor
shall be paid a percentage of the contract price reflecting the percentage of the work performed
prior to the notice of termination, plus reasonable charges the Contractor can demonstrate to the
satisfaction of the Government using its standard record keeping system, have resulted from the
termination. The Contractor shall not be required to comply with the cost accounting standards or
contract cost principles for this purpose. This paragraph does not give the Government any right to
audit the Contractor’s records. The Contractor shall not be paid for any work performed or costs
incurred which reasonably could have been avoided.

(m) Termination for cause. The Government may terminate this contract, or any part hereof, for
cause in the event of any default by the Contractor, or if the Contractor fails to comply with any
contract terms and conditions, or fails to provide the Government, upon request, with adequate
assurances of future performance. In the event of termination for cause, the Government shall not
be liable to the Contractor for any amount for supplies or services not accepted, and the
Contractor shall be liable to the Government for any and all rights and remedies provided by law.
If it is determined that the Government improperly terminated this contract for default, such
termination shall be deemed a termination for convenience.

(n) Title. Unless specified elsewhere in this contract, title to items furnished under this
contract shall pass to the Government upon acceptance, regardless of when or where the Government
takes physical possession. This provision does not apply to items licensed under this contract.

(o) Limitation of Contractor’s liability. Except as otherwise provided by an express warranty, the
Contractor will not be liable to the Government for consequential damages resulting from any defect
or deficiencies in accepted items.

(p) Other compliances. The Contractor shall comply with all applicable Federal, State and local
laws, executive orders, rules and regulations applicable to its performance under this contract.

(q) Compliance with laws unique to Government contracts. The Contractor agrees to comply with 31
U.S.C. 1352 relating to limitations on the use of appropriated funds to influence certain Federal
contracts; 18 U.S.C. 431 relating to officials not to benefit; 40 U.S.C. 327, et seq., Contract
Work Hours and Safety Standards Act; 41 U.S.C. 51-58, Anti-Kickback Act of 1986; 41 U.S.C. 265 and
10 U.S.C. 2409 relating to whistleblower protections; 49 U.S.C. 40118, Fly American; and 41 U.S.C.
423 relating to procurement integrity.

(r) Order of precedence. Any inconsistencies in this solicitation or contract shall be resolved by
giving precedence in the following order:

	 	(1)	 	The schedule of supplies/services.
	 
	 	(2)	 	The Assignments, Disputes, Payments, Invoice, Other Compliances, and Compliance
with Laws Unique to Government Contracts paragraphs of this clause.
	 
	 	(3)	 	The clause at 52.212-5.
	 
	 	(4)	 	Addenda to this solicitation or contract, including any license agreements for
computer software.
	 
	 	(5)	 	Solicitation provisions if this is a solicitation.

UNCLASSIFIED

FOR OFFICIAL USE ONLY

WHEN SEPARATED FROM CLASSIFIED ATTACHMENTS

25

 

UNCLASSIFIED

FOR OFFICIAL USE ONLY

WHEN SEPARATED FROM CLASSIFIED ATTACHMENTS

	 	(6)	 	Other paragraphs of this clause.
	 
	 	(7)	 	The Standard Form 1449.
	 
	 	(8)	 	Other documents, exhibits, and attachments.
	 
	 	(9)	 	The specification.

(s) Central Contractor Registration (CCR).

	 	(1)	 	Unless exempted by an addendum to this contract, the Contractor is responsible
during performance and through final payment of any contract for the accuracy and
completeness of the data within the CCR database, and for any liability resulting from
the Government’s reliance on inaccurate or incomplete data. To remain registered in the
CCR database after the initial registration, the Contractor is required to review and
update on an annual basis from the date of initial registration or subsequent updates its
information in the CCR database to ensure it is current, accurate and complete. Updating
information in the CCR does not alter the terms and conditions of this contract and is
not a substitute for a properly executed contractual document.
	 
	 	(2)(i)	 	 If a Contractor has legally changed its business name, “doing business as” name, or
division name (whichever is shown on the contract), or has transferred the assets used in
performing the contract, but has not completed the necessary requirements regarding
novation and change-of-name agreements in Subpart 42.12, the Contractor shall provide the
responsible Contracting Officer a minimum of one business day’s written notification of
its intention to:

	 	(A)	 	Change the name in the CCR database;
	 
	 	(B)	 	Comply with the requirements of Subpart 42.12 of the FAR;
	 
	 	(C)	 	Agree in writing to the timeline and procedures specified by the
responsible Contracting Officer. The Contractor must provide with the notification
sufficient documentation to support the legally changed name.

	 	(ii)	 	If the Contractor fails to comply with the requirements of paragraph (t)(2)(i)
of this clause, or fails to perform the agreement at paragraph (t)(2)(i)(C) of this
clause, and, in the absence of a properly executed novation or change-of-name
agreement, the CCR information that shows the Contractor to be other than the
Contractor indicated in the contract will be considered to be incorrect information
within the meaning of the “Suspension of Payment” paragraph of the electronic funds
transfer (EFT) clause of this contract.

(6) The Contractor shall not change the name or address for EFT payments or manual
payments, as appropriate, in the CCR record to reflect an assignee for the purpose of
assignment of claims (see FAR Subpart 32.8, Assignment of Claims). Assignees shall be
separately registered in the CCR database. Information provided to the Contractor’s
CCR record that indicates payments, including those made by EFT, to an ultimate
recipient other than that Contractor will be considered to be incorrect information
within the meaning of the “Suspension of payment” paragraph of the EFT clause of this
contract.

	 	(7)	 	Offerors and Contractors may obtain information on registration and annual
confirmation requirements via the Internet at http://www.ccr.gov or by calling
1-888-227-2423, or 269-961-5757.

UNCLASSIFIED

FOR OFFICIAL USE ONLY

WHEN SEPARATED FROM CLASSIFIED ATTACHMENTS

26

 

UNCLASSIFIED

FOR OFFICIAL USE ONLY

WHEN SEPARATED FROM CLASSIFIED ATTACHMENTS

Contract Terms and Conditions Required to Implement Statutes or Executive

Orders—Commercial Items (Oct. 2003)

(a) The Contractor shall comply with the following Federal Acquisition Regulation (FAR) clause,
which is incorporated in this contract by reference, to implement provisions of law or Executive
orders applicable to acquisitions of commercial items: 52.233-3, Protest after Award (AUG 1996) (31
U.S.C. 3553).

(b) The Contractor shall comply with the FAR clauses in this paragraph (b) that the Contracting
Officer has indicated as being incorporated in this contract by reference to implement provisions
of law or Executive orders applicable to acquisitions of commercial items: [Contracting Officer
check as appropriate.]

_X (1) 52.203-6, Restrictions on Subcontractor Sales to the Government (JUL 1995), with Alternate I
(OCT 1995) (41 U.S.C. 253g and 10 U.S.C. 2402).

___(2) 52.219-3, Notice of Total HUBZone Set-Aside (JAN 1999) (15 U.S.C. 657a).

___(3) 52.219-4, Notice of Price Evaluation Preference for HUBZone Small Business Concerns (JAN
1999) (if the offeror elects to waive the preference, it shall so indicate in its offer) (15 U.S.C.
657a).

___(4)(i) 52.219-5, Very Small Business Set-Aside (JUNE 2003) (Pub.L. 103- 403, section 304, Small
Business Reauthorization and Amendments Act of 1994).

___(ii) Alternate I (MAR 1999) of 52.219-5.

___(iii) Alternate II (JUNE 2003) of 52.219-5.

___(5)(i) 52.219-6, Notice of Total Small Business Set-Aside (JUNE 2003) (15 U.S.C. 644).

___(ii) Alternate I (OCT 1995) of 52.219-6.

___(6)(i) 52.219-7, Notice of Partial Small Business Set-Aside (JUNE 2003) (15 U.S.C. 644).

___(ii) Alternate I (OCT 1995) of 52.219-7.

_X___(7) 52.219-8, Utilization of Small Business Concerns (OCT 2000) (15 U.S.C. 637(d)(2) and (3)).

___(8)(i) 52.219-9, Small Business Subcontracting Plan (JAN 2002) (15 U.S.C. 637(d)(4)).

___(ii) Alternate I (OCT 2001) of 52.219-9.

___(iii) Alternate II (OCT 2001) of 52.219-9.

___(9) 52.219-14, Limitations on Subcontracting (DEC 1996) (15 U.S.C. 637(a)(14)).

___(10)(i) 52.219-23, Notice of Price Evaluation Adjustment for Small Disadvantaged Business
Concerns (JUNE 2003) (Pub.L. 103-355, section 7102, and 10 U.S.C. 2323) (if the offeror elects to
waive the adjustment, it shall so indicate in its offer).

___(ii) Alternate I (JUNE 2003) of 52.219-23.

___(11) 52.219-25, Small Disadvantaged Business Participation Program— Disadvantaged Status and
Reporting (OCT 1999) (Pub.L. 103-355, section 7102, and 10 U.S.C. 2323).

___(12) 52.219-26, Small Disadvantaged Business Participation Program— Incentive Subcontracting
(OCT 2000) (Pub.L. 103-355, section 7102, and 10 U.S.C. 2323).

___X (13) 52.222-3, Convict Labor (JUNE 2003) (E.O. 11755).

___X(14) 52.222-19, Child Labor—Cooperation with Authorities and Remedies (SEP 2002) (E.O. 13126).

___(15) 52.222-21, Prohibition of Segregated Facilities (FEB 1999).

___X(16) 52.222-26, Equal Opportunity (APR 2002) (E.O. 11246).

___X (17) 52.222-35, Equal Opportunity for Special Disabled Veterans, Veterans of the Vietnam Era,
and Other Eligible Veterans (DEC 2001) (38 U.S.C. 4212).

___X (18) 52.222-36, Affirmative Action for Workers with Disabilities (JUN 1998) (29 U.S.C. 793).

___X(19) 52.222-37, Employment Reports on Special Disabled Veterans, Veterans of the Vietnam Era,
and Other Eligible Veterans (DEC 2001) (38 U.S.C. 4212).

___(20)(i) 52.223-9, Estimate of Percentage of Recovered Material Content for EPA-Designated
Products (AUG 2000) (42 U.S.C. 6962(c)(3)(A)(ii)).

___(ii) Alternate I (AUG 2000) of 52.223-9 (42 U.S.C. 6962(i)(2)(C)).

___(21) 52.225-1, Buy American Act—Supplies (JUNE 2003) (41 U.S.C. 10a- 10d).

___(22)(i) 52.225-3, Buy American Act—North American Free Trade Agreement— Israeli Trade Act
(JUNE 2003) (41 U.S.C. 10a-10d, 19 U.S.C. 3301 note, 19 U.S.C. 2112 note).

___(ii) Alternate I (MAY 2002) of 52.225-3.

___(iii) Alternate II (MAY 2002) of 52.225-3.

___X(23) 52.225-5, Trade Agreements (Oct 2003) (19 U.S.C. 2501, et seq., 19 U.S.C. 3301 note).

___X (24) 52.225-13, Restrictions on Certain Foreign Purchases (Oct. 2003) (E.o.s, proclamations,
and statutes

UNCLASSIFIED

FOR OFFICIAL USE ONLY

WHEN SEPARATED FROM CLASSIFIED ATTACHMENTS

27

 

UNCLASSIFIED

FOR OFFICIAL USE ONLY

WHEN SEPARATED FROM CLASSIFIED ATTACHMENTS

administered by the Office of Foreign Assets Control of the Department of the Treasury).

___(25) 52.225-15, Sanctioned European Union Country End Products (FEB 2000) (E.O. 12849).

___(26) 52.225-16, Sanctioned European Union Country Services (FEB 2000) (E.O. 12849).

___(27) 52.232-29, Terms for Financing of Purchases of Commercial Items (FEB 2002) (41 U.S.C.
255(f), 10 U.S.C. 2307(f)).

___(28) 52.232-30, Installment Payments for Commercial Items (OCT 1995) (41 U.S.C. 255(f), 10
U.S.C. 2307(f)).

___X (29) 52.232-33, Payment by Electronic Funds Transfer—Central Contractor Registration (OCT
2003) (31 U.S.C. 3332).

___(30) 52.232-34, Payment by Electronic Funds Transfer—Other than Central Contractor Registration
(MAY 1999) (31 U.S.C. 3332).

___(31) 52.232-36, Payment by Third Party (MAY 1999) (31 U.S.C. 3332).

___(32) 52.239-1, Privacy or Security Safeguards (AUG 1996) (5 U.S.C. 552a).

___(33)(i) 52.247-64, Preference for Privately Owned U.S.-Flag Commercial Vessels (APR 2003) (46
U.S.C. Appx 1241 and 10 U.S.C. 2631).

___(ii) Alternate I (APR 1984) of 52.247-64.

(c) The Contractor shall comply with the FAR clauses in this paragraph (c), applicable to
commercial services, that the Contracting Officer has indicated as being incorporated in this
contract by reference to implement provisions of law or Executive orders applicable to acquisitions
of commercial items: [Contracting Officer check as appropriate.]

___(1) 52.222-41, Service Contract Act of 1965, as Amended (MAY 1989) (41 U.S.C. 351, et seq.).

___(2) 52.222-42, Statement of Equivalent Rates for Federal Hires (MAY 1989) (29 U.S.C. 206 and 41
U.S.C. 351, et seq.).

___(3) 52.222-43, Fair Labor Standards Act and Service Contract Act—Price Adjustment (Multiple
Year and Option Contracts) (MAY 1989) (29 U.S.C. 206 and 41 U.S.C. 351, et seq.).

___(4) 52.222-44, Fair Labor Standards Act and Service Contract Act—Price Adjustment (February
2002) (29 U.S.C. 206 and 41 U.S.C. 351, et seq.).

___(5) 52.222-47, SCA Minimum Wages and Fringe Benefits Applicable to Successor Contract Pursuant
to Predecessor Contractor Collective Bargaining Agreements (CBA) (May 1989) (41 U.S.C. 351, et
seq.).

(d) Comptroller General Examination of Record. The Contractor shall comply with the provisions of
this paragraph (d) if this contract was awarded using other than sealed bid, is in excess of the
simplified acquisition threshold, and does not contain the clause at 52.215-2, Audit and
Records—Negotiation.

(1) The Comptroller General of the United States, or an authorized representative of the
Comptroller General, shall have access to and right to examine any of the Contractor’s directly
pertinent records involving transactions related to this contract.

(2) The Contractor shall make available at its offices at all reasonable times the records,
materials, and other evidence for examination, audit, or reproduction, until 3 years after final
payment under this contract or for any shorter period specified in FAR Subpart 4.7, Contractor
Records Retention, of the other clauses of this contract. If this contract is completely or
partially terminated, the records relating to the work terminated shall be made available for 3
years after any resulting final termination settlement. Records relating to appeals under the
disputes clause or to litigation or the settlement of claims arising under or relating to this
contract shall be made available until such appeals, litigation, or claims are finally resolved.

(3) As used in this clause, records include books, documents, accounting procedures and practices,
and other data, regardless of type and regardless of form. This does not require the Contractor to
create or maintain any record that the Contractor does not maintain in the ordinary course of
business or pursuant to a provision of law.

(e)(1) Notwithstanding the requirements of the clauses in paragraphs (a), (b), (c), and (d) of this
clause, the Contractor is not required to flow down any FAR clause, other than those in paragraphs
(i) through (vi) of this paragraph in a subcontract for commercial items. Unless otherwise
indicated below, the extent of the flow down shall be as required by the clause—

(i) 52.219-8, Utilization of Small Business Concerns (October 2000) (15 U.S.C. 637(d)(2) and (3)),
in all subcontracts that offer further subcontracting opportunities. If the subcontract (except
subcontracts to small business concerns) exceeds $500,000 ($1,000,000 for construction of any
public facility), the subcontractor must include 52.219-8 in lower tier subcontracts that offer
subcontracting opportunities.

(ii) 52.222-26, Equal Opportunity (April 2002) (E.O. 11246).

(iii) 52.222-35, Equal Opportunity for Special Disabled Veterans, Veterans of the Vietnam Era, and
Other Eligible Veterans (December 2001) (38 U.S.C. 4212).

UNCLASSIFIED

FOR OFFICIAL USE ONLY

WHEN SEPARATED FROM CLASSIFIED ATTACHMENTS

28

 

UNCLASSIFIED

FOR OFFICIAL USE ONLY

WHEN SEPARATED FROM CLASSIFIED ATTACHMENTS

(iv) 52.222-36, Affirmative Action for Workers with Disabilities (June 1998) (29 U.S.C. 793).

(v) 52.222-41, Service Contract Act of 1965, as Amended (May 1989), flow down required for all
subcontracts subject to the Service Contract Act of 1965 (41 U.S.C. 351, et seq.).

(vi) 52.247-64, Preference for Privately Owned U.S.-Flag Commercial Vessels (April 2003) (46 U.S.C.
Appx 1241 and 10 U.S.C. 2631). Flow down required in accordance with paragraph (d) of FAR clause
52.247-64.

(2) While not required, the Contractor may include in its subcontracts for commercial items a
minimal number of additional clauses necessary to satisfy its contractual obligations.

I.4 52.243-1 Changes—Fixed Price (Aug 1897)

52.211-15 Defense Priority and Allocation Requirements (Sep 1990)

Audits and Records — Negotiation

a) As used in this clause, records includes books, documents, accounting procedures and practices,
and other data, regardless of type and regardless of whether such items are in written form, in the
form of computer data, or in any other form.

(b) Examination of costs. If this is a cost-reimbursement, incentive, time- and-materials,
labor-hour, or price redeterminable contract, or any combination of these, the Contractor shall
maintain and the Contracting Officer, or an authorized representative of the Contracting Officer,
shall have the right to examine and audit all records and other evidence sufficient to reflect
properly all costs claimed to have been incurred or anticipated to be incurred directly or
indirectly in performance of this contract. This right of examination shall include inspection at
all reasonable times of the Contractor’s plants, or parts of them, engaged in performing the
contract.

(c) Cost or pricing data. If the Contractor has been required to submit cost or pricing data in
connection with any pricing action relating to this contract, the Contracting Officer, or an
authorized representative of the Contracting Officer, in order to evaluate the accuracy,
completeness, and currency of the cost or pricing data, shall have the right to examine and audit
all of the Contractor’s records, including computations and projections, directly related to—

(1) The proposal for the modification;

(2) The discussions conducted on the proposal(s), including those related to negotiating;

(3) Pricing of the modification; or

(4) Performance of the modification.

(d) Comptroller General.

(1) The Comptroller General of the United States, or an authorized representative, shall have
access to and the right to examine any of the Contractor’s directly pertinent records involving
transactions related to this contract or a subcontract hereunder.

(2) This paragraph may not be construed to require the Contractor or subcontractor to create or
maintain any record that the Contractor or subcontractor does not maintain in the ordinary course
of business or pursuant to a provision of law.

(e) Reports. If the Contractor is required to furnish cost, funding, or performance reports, the
Contracting Officer or an authorized representative of the Contracting Officer shall have the right
to examine and audit the supporting records and materials, for the purpose of evaluating

(1) the effectiveness of the Contractor’s policies and procedures to produce data compatible with
the objectives of these reports and

(2) the data reported.

(f) Availability. The Contractor shall make available at its office at all reasonable times the
records, materials, and other evidence described in paragraphs (a), (b), (c), (d), and (e) of this
clause, for examination, audit, or reproduction, until 3 years after final payment under this
contract or for any shorter period specified in Subpart 4.7, Contractor Records Retention, of the
Federal Acquisition Regulation (FAR), or for any longer period required by statute or by other
clauses of this contract. In addition—

(1) If this contract is completely or partially terminated, the Contractor shall make available the
records relating to the work terminated until 3 years after any resulting final termination
settlement; and

(2) The Contractor shall make available records relating to appeals under the Disputes clause or to
litigation or the settlement of claims arising under or relating to this contract until such
appeals, litigation, or claims are finally resolved.

(g) The Contractor shall insert a clause containing all the terms of this clause, including this
paragraph (a), in all subcontracts under this contract that exceed the simplified acquisition
threshold and—

UNCLASSIFIED

FOR OFFICIAL USE ONLY

WHEN SEPARATED FROM CLASSIFIED ATTACHMENTS

29

 

UNCLASSIFIED

FOR OFFICIAL USE ONLY

WHEN SEPARATED FROM CLASSIFIED ATTACHMENTS

(1) That are cost-reimbursement, incentive, time-and-materials, labor-hour, or price-redeterminable
type or any combination of these;

(2) For which cost or pricing data are required; or

(3) That require the subcontractor to furnish reports as discussed in paragraph (e) of this clause.

52.215-21 Requirements for Cost or Pricing Data or Information Other Than Cost or Pricing Data – Modifications (Oct 1997)

52.216-22 Indefinite Quantity (Oct 1995) (applicable to CLINs 0002 and 0003)

(a) This is an indefinite-quantity contract for the supplies or services specified, and effective
for the period stated, in the Schedule. The quantities of supplies and services specified in the
Schedule are estimates only and are not purchased by this contract.

(b) Delivery or performance shall be made only as authorized by orders issued in accordance with
the Ordering clause. The Contractor shall furnish to the Government, when and if ordered, the
supplies or services specified in the Schedule up to and including the quantity designated in the
Schedule as the “maximum.” The Government shall order at least the quantity of supplies or services
designated in the Schedule as the “minimum.”

(c) Except for any limitations on quantities in the Order Limitations clause or in the Schedule,
there is no limit on the number of orders that may be issued. The Government may issue orders
requiring delivery to multiple destinations or performance at multiple locations.

(d) Any order issued during the effective period of this contract and not completed within that
period shall be completed by the Contractor within the time specified in the order. The contract
shall govern the Contractor’s and Government’s rights and obligations with respect to that order to
the same extent as if the order were completed during the contract’s effective period; provided,
that the Contractor shall not be required to make any deliveries under this contract after July
31, 2010.

I.54 52.217-2 Cancellation Under Multi-Year Contracts (OCT 1997)(Modified)

	(1)	 	“Cancellation,” as used in this clause, means that the Government is canceling its
requirements for all supplies or services in program years subsequent to that in which notice
of cancellation is provided.

	 	(a)	 	Except for cancellation under this clause or termination under the Default clause,
any reduction by the Contracting Officer in the requirements of this contract shall be
considered a termination under the Termination for Convenience of the Government clause.
	 
	 	(b)	 	The ceiling for Government liability for cancellation costs and termination for
convenience costs shall be equivalent to the funds obligated on the Contract at the time
of termination minus the payments made under the Contract.
	 
	 	(c)	 	The cancellation charge shall be computed and the claim submitted as if the claim
were being made under the Termination for Convenience of the Government clause of this
contract. The Contractor shall submit the claim promptly but no later than 1 year from
the date — (1) Of notification of the nonavailability of funds; or (2) Specified in the
Schedule by which notification of the availability of additional funds for the next
succeeding program year is required to be issued, whichever is earlier, unless extensions
in writing are granted by the Contracting Officer.
	 
	 	(d)	 	The Contractor’s claim may include —

UNCLASSIFIED

FOR OFFICIAL USE ONLY

WHEN SEPARATED FROM CLASSIFIED ATTACHMENTS

30

 

UNCLASSIFIED

FOR OFFICIAL USE ONLY

WHEN SEPARATED FROM CLASSIFIED ATTACHMENTS

	 	(e)	    	(1)	 	Reasonable nonrecurring costs (see Subpart 15.4 of the Federal Acquisition
Regulation) which are applicable to and normally would have been amortized in all
supplies or services which are multi-year requirements;

	 	(2)	 	Allocable portions of the costs of facilities acquired or
established for the conduct of the work, to the extent that it is impracticable
for the Contractor to use the facilities in its commercial work, and if the costs
are not charged to the contract through overhead or otherwise depreciated;

	 	(3)	 	Costs incurred for the assembly, training, and transportation to and from the
job site of a specialized work force; and

	 	(4)	 	Costs not amortized solely because the cancellation had precluded anticipated
benefits of Contractor or subcontractor learning.

	 	(f)	 	The claim shall not include —

	 	(1)	 	Labor, material, or other expenses incurred by the Contractor or subcontractors
for performance of the canceled work;
	 
	 	(2)	 	Any cost already paid to the Contractor;
	 
	 	(3)	 	Anticipated profit or unearned fee on the canceled work; or
	 
	 	(4)	 	For service contracts, the remaining useful commercial life of facilities.
“Useful commercial life” means the commercial utility of the facilities rather than
their physical life with due consideration given to such factors as location of
facilities, their specialized nature, and obsolescence.

(g) In no case shall no case shall government cost accounting standards be applicable to this
clause or Contract. In the event that the clause refers to cost accounting standard, the
parties will substitute GAAP.

I.55 52.217-9 Option to Extend the Term of the Contract. MAR 2000

	(a)	 	The Government may extend the term of this contract by written notice to the Contractor
during the Pre-FOC phase and or the Imagery Acquisition phase.
	 
	(b)	 	If the Government exercises this option, the extended contract shall be considered to include
this option clause.
	 
	(c)	 	The total duration of this contract, including the exercise of any options under this clause,
shall not exceed 6 years.

UNCLASSIFIED

FOR OFFICIAL USE ONLY

WHEN SEPARATED FROM CLASSIFIED ATTACHMENTS

31

 

UNCLASSIFIED

FOR OFFICIAL USE ONLY

WHEN SEPARATED FROM CLASSIFIED ATTACHMENTS

SECTION J — LIST OF ATTACHMENTS

	 	 	 	 	 
	Attachment	 	 	Description

[**Redacted**]

UNCLASSIFIED

FOR OFFICIAL USE ONLY

WHEN SEPARATED FROM CLASSIFIED ATTACHMENTS

32

 

UNCLASSIFIED

FOR OFFICIAL USE ONLY

WHEN SEPARATED FROM CLASSIFIED ATTACHMENTS

ATTACHMENT
1

NEXTVIEW
STATEMENT OF WORK (SOW)

[**Redacted**]

2

 

SOW TABLE OF CONTENTS

	 	 	 	 	 	 	 
	SOW — 1.

	 	Introduction
	 	 	1	 
	SOW — 2.

	 	Scope
	 	 	1	 
	SOW — 3.

	 	Terminology
	 	 	1	 
	SOW — 4.

	 	Program Requirements
	 	 	2	 
	 

	 	SOW — 4.1. Business Management
	 	 	2	 
	 

	 	SOW — 4.2. Technical Capability
	 	 	5	 
	Appendix A —

	 	Classified Requirements
	 	 	9	 
	Appendix B —

	 	Data Deliverables and Reports
	 	 	10	 
	 

	 	Shipping Instructions — AOR (Pre-FOC) or COR
(Imagery Acquisition Period)
Directed
	 	 	10	 
	Appendix C —

	 	Pre-FOC Milestones and Success Criteria
	 	 	11	 
	 

	 	Pre-FOC Payment Milestones
	 	 	11	 
	 

	 	Business Milestone Completion Criteria
	 	 	11	 
	 

	 	Schedule Milestone Completion Criteria
	 	 	12	 
	 

	 	Management Milestone Completion Criteria
	 	 	12	 
	Appendix D —

	 	Imagery Acquisition
	 	 	13	 
	 

	 	Preservation, Packaging and Marking:
	 	 	13	 
	Appendix E —

	 	Option 1: Value-Added Products
	 	 	13	 
	 

	 	Orthomosaics:
	 	 	13	 
	 

	 	CIB-1®:
	 	 	13	 
	 

	 	CIB-5TM:
	 	 	13	 
	 

	 	Digital Point Positioning Data Base (DPPDB):
	 	 	14	 
	Appendix F —

	 	NCDRD Assumptions, Exceptions and Applicable
Documents
	 	 	15	 
	Appendix G —

	 	Compliance Documents
	 	 	16	 
	Appendix J —

	 	System Engineering LOE Support Effort
	 	 	17	 

UNCLASSIFIED

FOR OFFICIAL USE ONLY

ii

 

SOW — 1. Introduction

SOW — 2. Scope

This SOW provides the requirements for both the Pre-FOC effort and the NextView imagery acquisition
periods.

SOW  — 3. Terminology

Within the context of this SOW, the following definitions apply:

	 	•	 	“Unprocessed Sensor Data” refers to the data that is collected and directly downlinked
from the collector to receive points and processing stations on the ground.
	 
	 	•	 	“Imagery” refers to a literal representation obtained from raw visible, infrared, or
radar sensor measurements of a scene, together with associated metadata. The
representation integrates the sensor’s data across time and across spectral regions and may
be presented on film, electronic display devices or other media.
	 
	 	•	 	“Imagery-Derived Products” refers to a literal (image-like) or graphic representation of
an original image or information extracted from the image. The purposes of imagery-derived
products are to: 1) create value-added products that highlight specific types of
information in the image; 2) merge reconnaissance imagery with data from other sources; 3)
create imagery products or data that can be declassified; or 4) compress imagery data for
more efficient transmission
	 
	 	•	 	“Imagery Support Data” refers to the management data necessary to support image
collection, processing, exploitation and the generation of image products. Imagery Support
Data includes the orbital position of the satellite over time during the imagery collection
window, the start and stop time for the collection window, attitude position and sensor
pointing position over time during the image collection, geolocation coordinates of the
pixels as they’re being collected over time, and sun position with respect to the orbital
and attitude position of the satellite. Imagery Support Data may also include the list of
images to be or already collected, the cloud-freeness of this imagery, the collection plan
and the data related to tasking, collection, processing, and dissemination
	 
	 	•	 	“Imagery Services” includes imagery processing such as geopositioning, color enhancing,
ortho-rectification, generation of 3-D imaging products, and similar capabilities.
	 
	 	•	 	“Pre-FOC” refers to the first period of the NextView program, covered by the Other
Transaction Agreement (Part I), prior to Final Operational Capability (“FOC”), during which
the contractor researches, develops, deploys and tests its NextView-requirements responsive
system (including ground, software and collection system components) and imagery for
requirements compliancy.
	 
	 	•	 	“Imagery Acquisition Period” (previously known as Post-FOC period) refers to the second
period of the NextView program, covered by the FAR contract (Part II), during which the
contractor delivers unprocessed sensor data; and processes and delivers
requirements-compliant imagery,

UNCLASSIFIED

FOR OFFICIAL USE ONLY

1

 

	 	 	 	imagery services, imagery-derived products, and imagery support data to NGA.

	 	•	 	“Tasking Priority” refers to the ranking process for satisfying customer’s tasking
requirements.
	 
	 	•	 	“Imagery Acquisition Period Fiscal Performance Plan (FPP)” Requirement deleted.
	 
	 	•	 	“DAP” is the Direct Access Program. [***Redacted***]
	 
	 	•	 	“DAF” means Direct Access Facility [***Redacted***]
	 
	 	•	 	“DG Minutes” refers to [***Redacted***] minutes withheld [***Redacted***] from NGA
capacity [***Redacted***]
	 
	 	 	 	DigitalGlobe shall declare a reservation to use DG Minutes [***Redacted***] before the
minutes are to be used [***Redacted***] DigitalGlobe will notify an NGA-designated
person/location(s) via e-mail of [***Redacted***] the pass to be reserved.
	 
	 	 	 	[***Redacted***]
	 
	 	 	 	DigitalGlobe will use DG Minutes globally and will make its best effort not to use all DG
Minutes in a single, concentrated area of the world.
	 
	 	•	 	“DG DAP Minutes” refers to a portion of the DG Minutes which DigitalGlobe shall, at its
sole discretion, assign to an unrestricted number of DAP customers. [***Redacted***]

Further particulars and specifics describing these products and related data and deliverables will
be delineated in subsequent sections of this SOW.

SOW — 4. Program Requirements

SOW — 4.1. Business Management

The contractor shall research and develop the capability to provide the needed unprocessed sensor
data; and requirements-compliant imagery, imagery services, imagery-derived products, and imagery
support data by NGA’s required date and sustain the provision of the same through the Imagery
Acquisition period of performance.

Components of Business Management for which status shall be provided to NGA include, but may not be
limited to, business plan progress, current operational metrics, business development metrics,
financial reports, status of financing arrangements and projections, commercial market performance
and future strategies, sales projections, market analysis, and business risk analysis.

SOW  — 4.1.1. Schedule

The contractor shall begin delivery of unprocessed sensor data and requirements-compliant imagery,
imagery services, imagery-derived products, and/or imagery support data from its U.S. commercial
imaging satellites, in compliance with NextView requirements (unless otherwise noted),
[***Redacted***]

UNCLASSIFIED

FOR OFFICIAL USE ONLY

2

 

SOW  — 4.1.2. Status Information

SOW — 4.1.2.1. The contractor shall support the following regular exchanges of overall business
and program status information to NGA:

	 	•	 	Pre-FOC: Weekly Teleconferences between NGA AOR (or designee) and the contractor’s
program manager (or designee), except that this telecon will not be required in those weeks
containing either a PMR or a Milestone review.
	 
	 	•	 	Pre-FOC: Monthly Program Management Reviews (PMRs) to review WorldView satellite and
ground system development status and risks, held via teleconference or meeting (scheduled
at mutually convenient time; combined with major milestone reviews when they happen in the
same month). Approximately once per quarter, the PMR will occur face-to-face (in lieu of
telecon), at a mutually agreeable location and generally will be combined with major
milestone reviews when they happen in the same month.
	 
	 	•	 	Pre-FOC: A DigitalGlobe Business Review shall be included as a component of the PMR with
the Business Review occurring no more than once per quarter (as part of the face-to-face
PMR), except where the Business Review is explicitly identified as being part of a payment
Milestone Review in Appendix C, in which case the Business Review shall be part of the
payment Milestone Review and not the corresponding PMR. The information contained in a
Business Review shall be updated quarterly; if two milestones occur in the same quarter,
the same Business Review material may be presented in conjunction with both milestones.
	 
	 	•	 	Pre-FOC: Milestone reviews as identified in Appendix C.
	 
	 	 	 	Pre-FOC and Imagery Acquisition Period: Accommodations for an on-site NGA representative at
the contractor’s facility, with the ability to accommodate up to three on-site USG
representatives in the imagery acquisition phase during surge situations.
	 
	 	•	 	Pre- and Post-FOC: Accommodations for an on-site NGA representative at the contractor’s
facility, with the ability to accommodate up to three on-site USG representatives in the
post-FOC phase during surge situations.
	 
	 	 	 	DigitalGlobe shall provide office space, facility access, and access to available secure
telecommunications.
	 
	 	•	 	Pre-FOC: Online access by NGA or designee to contractor’s WorldView documentation,
metrics, action items, risk list, NextView meeting minutes, program management reports,
etc. via web-based tools and/or electronic dissemination methods such as ftp.
	 
	 	•	 	Pre-FOC and Imagery Acquisition Period: Online access by NGA or designee to a
contractor-maintained action item list metrics, action items, risk list, NextView meeting
minutes, program management reports, etc. via web-based tools and/or electronic
dissemination methods such as ftp.
	 
	 	•	 	Imagery Acquisition Period: Monthly PMRs that include reviews of the performance
metrics and other items as mutually agreed upon, held via teleconference or meeting
(scheduled at mutually convenient time).

UNCLASSIFIED

FOR OFFICIAL USE ONLY

3

 

	 	 	 	Approximately once per quarter, the PMR will occur face-to-face (in lieu of telecon), at a
mutually agreeable location.

SOW — 4.1.2.2. The contractor shall provide overall status information to NGA or designee when
requested, as well as support USG-requested meetings with senior members of NGA. Expected requests
for information include, but are not limited to, overall business, finances, schedule, technical,
risk identification and mitigation, and operational status, as well as information on relevant
issues or details of high interest to NGA, the contractors, and/or their investors.

SOW — 4.1.2.3. Payments in the pre-FOC phase shall be tied to the milestones listed in Appendix C,
upon USG approval of the success criteria identified for each milestone in Appendix C, which shall
not be unreasonably withheld.

SOW — 4.1.2.4. The Service Level Agreement (SLA) commences on January 1, 2008 [***Redacted***]

SOW — 4.1.2.5. The contractor shall provide to NGA a camera description [***Redacted***]

SOW — 4.1.2.6. The contractor shall provide an initial baseline and updates to the system design;
system integration plan; and system, subsystem and component testing plan and activities.
[***Redacted***]

SOW — 4.1.2.7. The contractor also shall notify NGA of any changes to the system design,
integration and system, subsystem and component testing during development and operations.

SOW — 4.1.2.8. [***Redacted***]

SOW — 4.1.3. Security

The contractor shall accomplish the following tasks in accordance with the DD254.

The contractor shall provide electronic communications with NGA at the unclassified, collateral
Secret and Sensitive Compartmented Information (SCI) levels. [***Redacted***]

SOW — 4.1.3.1. The contractor shall ensure proper handling, storage, and use of all limited
distribution and classified USG Furnished Information.

SOW — 4.1.3.2. The contractor shall provide a sufficient number of personnel cleared at the
collateral Secret level to ensure compliance with these requirements.

SOW — 4.1.3.3. The contractor shall ensure proper handling, storage and use of all limited
distribution imagery and limited distribution and/or classified imagery-derived products that may
be deliverables under this contract.

SOW — 4.1.3.4. [***Redacted***]

UNCLASSIFIED

FOR OFFICIAL USE ONLY

4

 

SOW — 4.1.3.5. The contractor shall allow NGA security personnel or designee to conduct inspections
of all their ground facilities used in performance under this agreement.

SOW — 4.1.3.6. The contractor shall provide the required security plan(s) and update these as
required.

SOW  — 4.1.4. License to Operate U.S. Commercial Imaging Satellites

The contractor has obtained and will maintain a license(s) from the U.S. Department of Commerce
(DoC) and FCC license(s) to build and operate a high-resolution satellite system capable of
providing imagery that meets the requirements of the WorldView system.

SOW  — 4.2. Technical Capability

The contractor shall have the technical capabilities to ensure collection and delivery to NGA of
unprocessed sensor data; and requirements-compliant imagery, imagery services, imagery-derived
products and imagery support data. Expected technical capabilities shall satisfy the requirements
for Imagery Type; Imagery Quality; Imagery Quantity; Geographic Access Characteristics; Tasking,
Collection, Processing & Dissemination Robustness, Agility and Flexibility; Imagery Support Data;
and End-to-End Timelines.

[***Redacted***]

SOW — 4.2.1. Imagery Acquisition Period Imagery Type

SOW — 4.2.1.1. The contractor shall provide electro-optical (EO) panchromatic imagery.
[***Redacted***]

SOW — 4.2.1.2. Spectral Imagery. [***Redacted***] Minor changes to the bandpass and band shape
of the multispectral bands may be made by the contractor as needed to address manufacturing issues
and minimize schedule risk.

SOW — 4.2.2. Imagery Acquisition Period Imagery Quality
[***Redacted***]

SOW — 4.2.2.4. Civil Commercial Applications Program (CCAP)

The contractor shall assist NGA in the further development of applicable CCAP test/inspection plans
and procedures that NGA will execute to verify that the basic imagery shall meet the criteria
established in SOW -4.2.2. including the Classified Appendix A — Classified Requirements. These
test/inspection plans and procedures shall be derived from existing USG procedures currently in use
in the ClearView program. The recommended subset of CCAP procedures is subject to USG approval.
NGA reserves the right to require the full set of ClearView test/inspection procedures be executed
with NextView imagery; however, achieving FOC for the WorldView system configurations requires
successful execution of only that subset of CCAP procedures required to meet the criteria
established in SOW-4.2.2.

SOW — 4.2.2.4.1. The contractor shall provide initial CCAP procedures at the System Summary and
Satellite Preliminary Design Review (PDR) and shall provide

UNCLASSIFIED

FOR OFFICIAL USE ONLY

5

 

updates at the System Summary and Satellite CDR, the Pre-Ship Review, and the Launch Readiness
Review.

SOW — 4.2.2.4.2. Data used, test plan executed and evaluation results shall be provided to the USG
for independent CCAP evaluations and validation prior to the declaration of WorldView system FOC.
[***Redacted***] The USG shall use its best efforts to support the contractor’s CCAP certification
plan and timeline so as not to delay achievement of WorldView system FOC.

SOW — 4.2.3. Imagery Purchase Period Imagery Quantity
[***Redacted***]

SOW — 4.2.4. Imagery Acquisition Period Geographic Access
Characteristics

SOW — 4.2.4.1. The contractor shall be capable of imaging any location on the earth between 80
degrees North Latitude and 80 degrees South Latitude.

SOW — 4.2.4.2. [***Redacted***]

SOW — 4.2.5. Imagery Acquisition Period Tasking, Collection, Processing
and Dissemination Robustness, Agility and Flexibility

SOW — 4.2.5.1. Tasking and Collection

SOW — 4.2.5.1.1. Electronic Tasking. The contractor shall accept electronic tasking and
collection updates from NGA via the PMAA interface being developed as documented in the NGA
Commercial Data Definition Document (NCDDD), and the NGA DG-PMAA ICD (IF1AF52) (see Appendix G for
latest revisions). The accumulation of tasking requirements from NGA is referred to as the “tasked
list” and represents the collection plan from NGA.

[***Redacted***]

The contractor shall also accept orders via telephone, faxes and emails through the INTERNET or
other networks from NGA-authorized USG personnel. It is the presumption of NGA and the contractor
that the predominant method of ordering will be electronic. [***Redacted***]

SOW — 4.2.5.1.2. Frequency of Action. The contractor shall act upon daily and ad hoc updates from
NGA to the tasked list of desired imagery and collection characteristics (size, area covered,
spatial resolution, and priority). An ad hoc update shall be defined as a change to the currently
tasked list of desired imagery and their characteristics.

SOW — 4.2.5.1.3. [***Redacted***]

SOW — 4.2.5.2. Processing

At FOC, the contractor shall provide NextView compliant imagery and imagery-derived products in the
formats defined in the latest approved revisions of the NGA NITF 2.0 Dataset Definition Document
(NNDDD) and/or the NITF 2.1 Commercial Dataset Requirements Document (NCDRD) (see Appendix G for
latest revisions) with the following exceptions:

UNCLASSIFIED

FOR OFFICIAL USE ONLY

6

 

[***Redacted***]

Supported NITF formats shall include support for NGA-preferred JPEG2000 NPJE encoding compliant
with BPJ2K01.00, NGA-preferred commercial Tagged Record Extensions (TREs) and Data Extension
Segments (DESs) pursuant to the exceptions and assumptions listed in Appendix F of the SOW.

[***Redacted***]

The JITC will certify implementation compliance for the Contractor-supported NITF 2.1 formats. The
contractor shall provide NextView-compliant imagery in the previous formats or GeoTIFF, as
specified by individual imagery acquisition period imagery orders. The Contractor shall support
these formats in imagery delivered electronically and on media.

[***Redacted***]

The list of offered value-added products, specifications and imagery services shall be as defined
in Appendix E.

SOW — 4.2.5.2.1.2. Quality Associated with Datasets. The contractor shall provide imagery meeting
the quality standards to support the production of Controlled Image Base at 1 and 5 meter
(CIB-1®, CIB-5TM) levels and imagery-derived products such as Digital Point Positioning
Data Bases (DPPDB)

[***Redacted***]

In
accordance with RFC N99-0013 and the associated Contractor ECP D2005-606, the Contractor shall
support coordination with Government personnel in planning for
installation of new GFE
communications equipment/capacity at the DigitalGlobe facility in
Longmont, Colorado, to support
testing of that equipment/capacity, and provide other related support
as per the negotiated final
ECP. The Contractor shall support an early interface test event as
identified in the Commercial
Imagery Systems Integration Working Group (CI SI WG) schedule. The
Contractor shall support a Beta
1 integration test event as identified in the CI SI WG schedule.

The Contractor shall use industry standard web services for
interactive delivery, including XML
interfaces to all the NGA systems that support XML.
The Contractor shall interface with PMAA in accordance with SOW section 4.2.5.1.1.

[***Redacted***]

SOW  — 4.2.6. Imagery Acquisition Period Imagery Support Data

SOW — 4.2.6.1. The contractor shall interactively work with NGA to develop an initial collection
deck. The objective is to provide a refined PMAA-ingestible standing collection deck prior to the
start of the imagery acquisition period and, subsequently, incremental collection deck updates
prior to the Worldview satellite launches.

SOW — 4.2.6.2. [***Redacted***]

SOW — 4.2.6.5. The contract reporting period shall start on January 1,

UNCLASSIFIED

FOR OFFICIAL USE ONLY

7

 

2008. DigitalGlobe will make its best effort to deliver metric reports as soon as they are
available and starting not later than February 29, 2008. These metrics will be reported monthly
and the performance criteria will be rated monthly and on a global basis. [***Redacted***]

Metric Reports:

	•	 	Number of Tasking, Archive and Mixed orders — by region
	 
	•	 	Number of confirmed orders — by tasking level — by region
	 
	•	 	Number of km2 collected by tasking level — by region
	 
	•	 	Number of km2 collected by cloud cover — by region
	 
	•	 	Number of products by type delivered to NGA
	 
	•	 	Number of products by km2 delivered to NGA
	 
	•	 	[***Redacted***]

SOW  — 4.2.7 End-to-End Timelines

The timelines in this section represent a requirement for system capability for electronic
delivery, with the time a product is delivered defined as the time when the contractor transmits
electronically the last data bit of a product [***Redacted***]

SOW — 4.2.7.1 Except as identified in 4.2.7.2 below, all imagery requested by NGA for delivery as
a product and meeting the cloud-free requirements shall be electronically delivered to NGA
[***Redacted***]

UNCLASSIFIED

FOR OFFICIAL USE ONLY

8

 

Appendix A — Classified Requirements

This Section Intentionally Left Blank. Please refer to “Classified Requirements — Geolocation
Accuracies”.

UNCLASSIFIED

FOR OFFICIAL USE ONLY

9

 

Appendix B — Data Deliverables and Reports

Data Deliverables shall consist of the Interface Control Documents necessary for the interface
between the WorldView system and NGA systems.

 The
following table lists the reports that will be provided.

[***Redacted***]

Shipping Instructions — AOR (Pre-FOC) or COR (Imagery Acquisition Period) Directed

Reports and data submissions shall be delivered in accordance with instructions to be provided by
the Agreement Officer’s Representative (AOR)/Contracting Officer’s Representative (COR)

Additional Reporting Requirements

In addition to reporting requirements identified above, the contractor shall provide the following
items in support of imagery ordered and delivered:

Daily Operation Capability Report

A Daily Operation Capability Report for all operational satellites that are under contract to NGA
for data delivery. The Daily Operational Capability Report shall be in the same format as the
current DigitalGlobe — NGA Operational Capability Status Report.

[***Redacted***]

NextView Quality Plan

DigitalGlobe shall publish and maintain an Imagery Acquisition Period Quality Plan, applicable to
imagery CLINs, product CLINs, and product or service delivery orders. [***Redacted***]

UNCLASSIFIED

FOR OFFICIAL USE ONLY

10

 

Appendix C — Pre-FOC Milestones and Success Criteria

The contractor shall develop, deliver and execute test/inspection plans and procedures for Pre-FOC
space and ground segments as required to meet the success criteria of major milestones as defined
within this section.
Pre-FOC Milestones (marked by ** within the tables) are met by conduct of the review. The
contractor shall provide the reports one to five days in advance of the meetings, on a
non-interference basis. NGA recognizes that these materials are subject to additional change
without notice. These reports will be made available to NGA and NGA consultants, subject to such
consultants being bound by appropriate nondisclosure agreements to protect contractor’s proprietary
and business confidential information.
Conduct of the review shall consist of:

	 	1.	 	NextView team notification of intent, date and place to host the review.
	 
	 	2.	 	Holding a review meeting addressing the subject materials in a manner consistent with
standard commercial practices, including in each review a status of open action items.
	 
	 	3.	 	Posting review materials from the meeting, consisting of

	 	a.	 	All presented materials and data
	 
	 	b.	 	Salient meeting notes, and
	 
	 	c.	 	Updates to the NextView program Action Items if appropriate

	 	4.	 	Completion of a Meeting Summary Checklist which certifies all criteria met, on a
line-item basis and serves as a single sign-off document for NGA

In the above, “demonstrates” means that DigitalGlobe will present test data, analysis, or other
evidence that reasonably supports the stated conclusion, in accordance with normal commercial
practices.

Pre-FOC Payment Milestones

The table below (Table 3) represent the payment dates (by milestone) with the associated cost
contributions for the contractor and NGA. Non-cost share payment milestones are shown in Table 5.

The Technical Milestone Completion Criteria and the associated schedule (referred to as the “Master
Schedule” during PMRs) — required to be completed before payment can be made — are detailed in
Table 6.

[3 pages ***Redacted***]

Business Milestone Completion Criteria

DigitalGlobe will provide the USG with relevant financial information at a mutually agreed upon
level of detail in or for the Government to monitor the progress of DigitalGlobe’s Business Plan
without hindering the execution of the plan. Both the USG and DigitalGlobe recognize that
forecasts and business plans are subject to review and adjustment over time. Reports on the status
of the Business Plan will be presented at each technical milestone achievement review. Submission
of these reports will satisfy this information requirement.

DigitalGlobe Goals

UNCLASSIFIED

FOR OFFICIAL USE ONLY

11

 

The following information will be provided as demonstration of DigitalGlobe’s performance against
DigitalGlobe’s business plan.

	•	 	Comparison of actual to forecasted performance, as presented in the business plan.
	 
	•	 	Discussion of financing options available to DigitalGlobe in order to fulfill the
requirements under NextView.
	 
	•	 	Review the performance of commercial revenues sources and exploration of new and
emergent revenue sources.

     [***Redacted***]

Schedule Milestone Completion Criteria

The following Schedule Milestone criteria will be met for each Milestone. Presents an integrated
master schedule that demonstrates progress to date, identifies schedule risk, and describes margin
adjustments that allows Contractor to successfully reach the FOC defined in the statement of work
(see SOW 4.1.1). This criteria applies to all milestones.

Management Milestone Completion Criteria

The following Management Milestone criteria will be met for each Milestone. Contractor will
demonstrate that the execution of the Management Plan (staffing levels, facilities, security, key
personnel, risk management,) is sufficient to meet NextView program requirements. Contractor shall
implement an effective risk management process which identifies program risks, the probability and
associated impact of those risks, with mitigation strategies to ensure successful program
execution. These criteria apply to all milestones.

[8 pages ***Redacted***]

UNCLASSIFIED

FOR OFFICIAL USE ONLY

12

 

Appendix D — Imagery Acquisition

Imagery Acquisition Period Payment and Pricing Schedules are contained in the NextView Imagery
Purchase agreement.

[4 pages ***Redacted***]

Preservation, Packaging and Marking:

(a) Preservation, packaging, packing, and marking shall be in accordance with standard practice for
commercial packaging. Marking shall include:

Nomenclature

Quantity

Government Contract Number

From: (Contractor name, address, and telephone number)

To: (Name and address of place of shipment)

“NOT FOR OUTSIDE USE”

Appendix E — Option 1: Value-Added Products

This appendix provides product descriptions and pricing for all value-added products under the
NextView agreement. [***Redacted***]

Orthomosaics:

Orthomosaic products are radiometrically corrected, sensor corrected, geometrically corrected,
orthorectified, and mapped to a cartographic projection and datum. Geometric corrections remove
spacecraft orbit position and attitude uncertainty, earth rotation and curvature, and panoramic
distortion.

[8 pages ***Redacted***]

CIB-1®:

Controlled Image Base 1 (CIB-1®) is a 1-meter, seamless data set of grayscale
ortho-corrected imagery. CIBs are produced from digital source images and are compressed and
reformatted to conform to the Raster Product Format (RPF) standard.

[***Redacted***]

CIB-5TM:

Controlled Image Base 5 (CIB-5TM) is a 5-meter, seamless data set of grayscale ortho-corrected
imagery. CIBs are produced from digital source images and are compressed and reformatted to
conform to the Raster Product Format (RPF) standard.

UNCLASSIFIED

FOR OFFICIAL USE ONLY

13

 

[***Redacted***]

Digital Point Positioning Data Base (DPPDB):

DPPDB is a classified image product consisting of high-resolution digital stereo image pairs which
enable trained personnel to derive accurate three-dimensional coordinates for any identifiable
ground feature within the database area. The DPPDB consists of three main components: imagery
support data, digital reference map graphics, and stereo imagery.

[***Redacted***]

UNCLASSIFIED

FOR OFFICIAL USE ONLY

14

 

Appendix F — NCDRD Assumptions, Exceptions and Applicable Documents

This appendix provides the exceptions and assumptions under which the contractor shall provide
NextView compliant imagery and imagery-derived products in the formats defined in the latest
approved revisions to the NGA NITF 2.0 Dataset Definition Document (NNDDD) and/or the NITF 2.1
Commercial Dataset Requirements Document (NCDRD) (see Appendix G) as outlined in SOW 4.2.5.2.

Assumptions and Exceptions:

Supported NITF formats shall include support for NGA-preferred JPEG2000 NPJE encoding compliant
with BPJ2K01.00, NGA-preferred commercial Tagged Record Extensions (TREs) and Data Extension
Segments (DESs) pursuant to the exceptions and assumptions.

	 	•	 	Contractor shall include NITF 2.1 TREs and DESs in accordance with contractor’s
NITF2.1 specifications and Contractor will add the new NCDRD mod 1 (dated October 21,
2004) TREs and DESs.
	 
	 	•	 	CSDIDA, as it is defined in section 3 of the NCDRD mod 1 (dated October 21, 2004),
is not unique for a product. IID2 is assumed to be unique.
	 
	 	•	 	FTITLE is a free-form defined by the CDP.
	 
	 	•	 	Contractor will package imagery exceeding 9.3GB into separate files.
	 
	 	•	 	Contractor is not implementing YCrCb J2K.
	 
	 	•	 	Contractor will pad J2K tiles/blocks to 1024 x 1024 boundaries. If partial tiles
are required for a particular product they will be produced. However, the delivery
timeline for that product will not be guaranteed. Contractor will be able to support
one product containing partial tiles per day up to a 9.3GB size.
	 
	 	•	 	Contractor will tie the origin upper left corner lat/long point of the cloud cover
grid to the upper left corner pixel of the product made.
	 
	 	•	 	In the case of the irregular polygon, CSCRNA will use the Minimum Bounding Rectangle
(MBR) and the corners described in the TRE might be blackfill pixels. Contractor will
set the FBKGC field = 7E 7E 7E (soft gray) and Pad/Fill pixels = 0 (black).
	 
	 	•	 	Attitude, Ephemeris and field alignments will be provided in a Basic product on an
acquisition basis and will not cover multiple NITF files.
	 
	 	•	 	GEOLOB and GEOPSB will follow the DIGEST Annex D definitions.
	 
	 	•	 	Shape files will be in lat/long WGS84 and will range from 3 to 1000 points.
	 
	 	•	 	Contractor will calculate the estimated NIIRS based on the product delivered
regardless whether the imagery is Panchromatic, Multi-spectral or Pan Sharpened.
	 
	 	•	 	Contractor will follow its commercial implementation of J2K-NPJE included in the
NextView baseline.

UNCLASSIFIED

FOR OFFICIAL USE ONLY

15

 

Appendix G — Compliance Documents

This appendix lists the compliance documents and their location in the Statement of Work.

	 	 	 
	SOW Reference	 	Compliance Document
	4.2.5.1;

	 	DigitalGlobe (WorldView) to NGA Production Management
	4.2.5.3.1

	 	Alternative Architecture (PMAA) Segment Interface Control
Document, Revision F.
	 
	 	 
	4.2.5.2;

	 	NGA NITF 2.0 Dataset Definition Document (NNDDD)
	Appendix F

	 	(NSG-STD-001-05), dated 16 February 2006 as baselined in RFC
N01-0441
	 
	 	 
	4.2.5.2;

	 	NGA NITF 2.1 Commercial Dataset Requirements Document
	Appendix F

	 	(NCDRD) (STDI-0006), dated 16 February 2006 and as baselined
in RFC N01-0441
	 
	 	 
	4.2.5.3.1

	 	NGA DigitalGlobe to Unclassified National Information
Library Interface Control Document (IF1AF19), dated 16
February 2006 and as baselined in RFC N01-0441
	 
	 	 
	4.2.5.1.1

	 	NGA DigitalGlobe (DG) to Production Management Alternate
Architecture (PMAA) Interface Control Document (IF1AF52),
dated 16 February 2006 and as baselined in RFC N01-0441
	 
	 	 
	4.2.5.1.1

	 	NGA Commercial Data Definition Document
(NCDDD)(NSG-STD-002-05), dated 16 February 2006 and as
baselined in RFC N01-0441
	 
	 	 
	Appendix J

	 	NGA Joint Interface Control Process Guidebook, dated 3
November 2005

UNCLASSIFIED

FOR OFFICIAL USE ONLY

16

 

[***Redacted***]

Section II — Consideration:

[5 pages ***Redacted***]

Appendix J — System Engineering LOE Support Effort

[***Redacted***]

Statement of Work

Task 1 — System Engineering Support

1.1 End-to-End Integration and Testing Support

	 	•	 	DG shall work with the Government Program Office and NSG segment developers to
identify and prioritize representative sample sets of NextView compliant test data.
	 
	 	•	 	DG will support the preparation of test data sets, interface testing plans and
procedures, and will provide support for test readiness reviews, test execution, and
testing of the interfaces as well as testing of functional changes that potentially
affect the interfaces. This will verify that changes to DigitalGlobe’s commercial system
do not perturb the NGA controlled formats as part of the overall effort to ensure that
the integrity of the contractually binding interface is maintained and sustained.
	 
	 	•	 	[***Redacted***]

1.2 Change Management/JICPG Support

	 	•	 	In accordance with the Interface Change Management process defined in the Joint
Interface Control Process Guidebook, Revision 1, dated 3 November 2005, DG shall provide
on-going systems engineering support to review and assess impacts of proposed future
revisions to the contractually binding interface and data formatting specifications
identified as compliance documents in Appendix G of the latest baselined revision of the
NextView SOW.
	 
	 	•	 	[***Redacted***]

Deliverables:

	 	•	 	DG will provide a summary at monthly PMRs reporting the cumulative number of hours and
dollars expended against each task, [***Redacted***]
	 
	 	•	 	DG shall provide a Master Suite of Test Data Sets based on mutual agreement between
the NV program Office and DG. This Master Test Set will cover the most likely set of
products to be ordered under the NV data purchase, [***Redacted***]

17

 

UNCLASSIFIED

FOR OFFICIAL USE ONLY

WHEN SEPARATED FROM CLASSIFIED ATTACHMENTS

ATTACHMENT 2

GOVERNMENT FURNISHED PROPERTY LIST

[**Redacted**]

[NOTE: 7 pages have been omitted]

UNCLASSIFIED

FOR OFFICIAL USE ONLY

WHEN SEPARATED FROM CLASSIFIED ATTACHMENTS

3

 

UNCLASSIFIED

FOR OFFICIAL USE ONLY

WHEN SEPARATED FROM CLASSIFIED ATTACHMENTS

ATTACHMENT 3

DD254 REVISION 2 DATED 04 DECEMBER 2007

[**Redacted**]

[NOTE: 14 pages have been omitted]

UNCLASSIFIED

FOR OFFICIAL USE ONLY

WHEN SEPARATED FROM CLASSIFIED ATTACHMENTS

4

 

UNCLASSIFIED

FOR OFFICIAL USE ONLY

WHEN SEPARATED FROM CLASSIFIED ATTACHMENTS

ATTACHMENT 4

LIST OF DATA DELIVERED WITH LIMITED RIGHTS

[**Redacted**]

UNCLASSIFIED

FOR OFFICIAL USE ONLY

WHEN SEPARATED FROM CLASSIFIED ATTACHMENTS

5

 

UNCLASSIFIED

FOR OFFICIAL USE ONLY

WHEN SEPARATED FROM CLASSIFIED ATTACHMENTS

ATTACHMENT 5

STATEMENT OF WORK FOR SYSTEMS ENGINEERING SERVICES

[**Redacted**]

[NOTE: 3 pages have been omitted]

UNCLASSIFIED

FOR OFFICIAL USE ONLY

WHEN SEPARATED FROM CLASSIFIED ATTACHMENTS

6exv10w16

Exhibit 10.16

CONTRIBUTION AGREEMENT

among

DCP LP Holdings, LLC,

DCP Midstream GP, LP,

DCP Midstream, LLC

and

DCP Midstream Partners, LP

February 24, 2009

 

 

Table of Contents

	 	 	 	 	 
	ARTICLE I CERTAIN DEFINITIONS
	 	 	1	 
	 
	1.1 Certain Defined Terms
	 	 	1	 
	1.2 Other Definitional Provisions
	 	 	12	 
	1.3 Headings
	 	 	13	 
	1.4 Other Terms
	 	 	13	 
	 
	 	 	 	 
	ARTICLE II CONTRIBUTION OF THE SUBJECT INTERESTS, ISSUANCE OF THE UNITS AND CONSIDERATION
	 	 	13	 
	 
	2.1 The Transaction
	 	 	13	 
	2.2 Consideration
	 	 	13	 
	 
	 	 	 	 
	ARTICLE III ADJUSTMENTS AND SETTLEMENT
	 	 	13	 
	 
	3.1 Adjustments
	 	 	13	 
	3.2 Preliminary Settlement Statement
	 	 	14	 
	3.3 Final Settlement Statement
	 	 	14	 
	3.4 Dispute Procedures
	 	 	14	 
	3.5 Payments
	 	 	14	 
	3.6 Access to Records
	 	 	14	 
	 
	 	 	 	 
	ARTICLE IV REPRESENTATIONS AND WARRANTIES OF HOLDINGS
	 	 	15	 
	 
	4.1 Organization, Good Standing, and Authority
	 	 	15	 
	4.2 Enforceability
	 	 	15	 
	4.3 No Conflicts
	 	 	15	 
	4.4 Consents, Approvals, Authorizations and Governmental Regulations
	 	 	16	 
	4.5 Taxes
	 	 	16	 
	4.6 Litigation; Compliance with Laws
	 	 	17	 
	4.7 Contracts
	 	 	18	 
	4.8 Title to Assets; Intellectual Property
	 	 	19	 
	4.9 Preferential Rights to Purchase
	 	 	19	 
	4.10 Broker’s or Finder’s Fees
	 	 	19	 
	4.11 Compliance with Property Instruments
	 	 	19	 
	4.12 Environmental Matters
	 	 	19	 
	4.13 Employee Matters
	 	 	20	 
	4.14 Benefit Plan Liabilities
	 	 	20	 
	4.15 No Foreign Person
	 	 	20	 
	4.16 Capitalization of the Subject Interests
	 	 	20	 
	4.17 Subsidiaries and Other Equity Interests
	 	 	21	 
	4.18 Bank Accounts
	 	 	21	 
	4.19 [Reserved]
	 	 	21	 
	4.20 Investment Intent
	 	 	21	 
	4.21 Financial Statements; Internal Controls; Undisclosed Liabilities
	 	 	21	 
	4.22 No Other Representations or Warranties; Schedules
	 	 	21	 
	 
	 	 	 	 
	ARTICLE V REPRESENTATIONS AND WARRANTIES OF MLP
	 	 	22	 
	 
	5.1 Organization, Good Standing, and Authorization
	 	 	22	 
	5.2 Enforceability
	 	 	22	 

i 

 

	 	 	 	 	 
	5.3 No Conflicts
	 	 	22	 
	5.4 Consents, Approvals, Authorizations and Governmental Regulations
	 	 	22	 
	5.5 Litigation
	 	 	23	 
	5.6 Independent Investigation
	 	 	23	 
	5.7 Broker’s or Finder’s Fees
	 	 	24	 
	5.8 Investment Intent
	 	 	24	 
	5.9 Available Funds
	 	 	24	 
	 
	 	 	 	 
	ARTICLE VI COVENANTS AND ACCESS
	 	 	24	 
	 
	6.1 Conduct of Business
	 	 	24	 
	6.2 Casualty Loss
	 	 	26	 
	6.3 Access, Information and Access Indemnity
	 	 	27	 
	6.4 Regulatory Filings; Hart-Scott-Rodino Filing
	 	 	27	 
	6.5 Limitation on Casualty Losses and Other Matters
	 	 	28	 
	6.6 Supplements to Exhibits and Schedules
	 	 	28	 
	6.7 Preservation of Records
	 	 	29	 
	6.8 [Reserved]
	 	 	29	 
	6.9 Capital Projects
	 	 	29	 
	6.10 [Reserved]
	 	 	30	 
	6.11 Tax Covenants; Preparation of Tax Returns
	 	 	30	 
	6.12 Financial Statements and Financial Records
	 	 	30	 
	 
	 	 	 	 
	ARTICLE VII CONDITIONS TO CLOSING
	 	 	30	 
	 
	7.1 HOLDINGS’/GP’s Conditions
	 	 	30	 
	7.2 MLP’s Conditions
	 	 	31	 
	 
	 	 	 	 
	ARTICLE VIII CLOSING
	 	 	31	 
	 
	8.1 Time and Place of Closing
	 	 	31	 
	8.2 Deliveries at Closing
	 	 	32	 
	 
	 	 	 	 
	ARTICLE IX TERMINATION
	 	 	32	 
	 
	9.1 Termination
	 	 	32	 
	9.2 Effect of Termination Prior to Closing
	 	 	33	 
	 
	 	 	 	 
	ARTICLE X INDEMNIFICATION
	 	 	33	 
	 
	10.1 Indemnification by MLP
	 	 	33	 
	10.2 Indemnification by HOLDINGS
	 	 	33	 
	10.3 Deductibles, Caps, Survival and Certain Limitations
	 	 	34	 
	10.4 Notice of Asserted Liability; Opportunity to Defend
	 	 	35	 
	10.5 Materiality Conditions
	 	 	37	 
	10.6 Exclusive Remedy
	 	 	37	 
	10.7 Negligence and Strict Liability Waiver
	 	 	38	 
	10.8 Limitation on Damages
	 	 	38	 
	10.9 Bold and/or Capitalized Letters
	 	 	38	 
	 
	 	 	 	 
	ARTICLE XI MISCELLANEOUS PROVISIONS
	 	 	38	 
	 
	11.1 Expenses
	 	 	38	 
	11.2 Further Assurances
	 	 	38	 
	11.3 Transfer Taxes
	 	 	39	 
	11.4 Assignment
	 	 	39	 

ii 

 

	 	 	 	 	 
	11.5 Entire Agreement, No Amendment of Prior Transaction Agreement, Amendments and Waiver
	 	 	39	 
	11.6 Severability
	 	 	39	 
	11.7 Counterparts
	 	 	39	 
	11.8 Governing Law, Dispute Resolution and Arbitration
	 	 	39	 
	11.9 Notices and Addresses
	 	 	42	 
	11.10 Press Releases
	 	 	43	 
	11.11 Offset
	 	 	43	 
	11.12 No Partnership; Third Party Beneficiaries
	 	 	43	 
	11.13 Negotiated Transaction
	 	 	43	 

Schedules

	 	 	 
	1.1(a)
	 	Excluded Assets
	1.1(b)
	 	Excluded Contracts Including Swaps
	1.1(c)
	 	HOLDINGS’ Knowledge
	1.1(d)
	 	Contracts
	1.1(e)
	 	Permitted Encumbrances
	1.1(f)
	 	Reserved Liabilities
	1.1(g)
	 	System Maps
	4.3
	 	Post Closing Consents
	4.4
	 	HOLDINGS’ Required Consents
	4.5
	 	Taxes
	4.6
	 	Litigation
	4.9
	 	Preferential Rights
	4.11
	 	Real Property Matters
	4.12
	 	Environmental Matters
	4.17
	 	Subsidiaries
	4.18
	 	Bank Accounts
	4.21
	 	Annual Financial Statements
	5.4
	 	MLP Required Consents
	6.9
	 	Capital Projects
	10.2(e)
	 	Scheduled HOLDINGS Indemnified Matters

Exhibits

	 	 	 
	A
	 	Form of JV LLC Agreement
	B
	 	Form of Subject Interests Assignment Agreement
	C
	 	Form of Certificate of Class D Units
	D
	 	Form of Amendment No. 2
	E
	 	Form of Hedge Confirmation

iii 

 

CONTRIBUTION AGREEMENT

     This Contribution Agreement (“Agreement”) is dated as of February 24, 2009 (the
“Execution Date”) and is by and among DCP LP Holdings, LLC, a Delaware limited liability
company (“HOLDINGS”), DCP Midstream GP, LP, a Delaware limited partnership (“GP”),
DCP Midstream, LLC, a Delaware limited liability company (“MIDSTREAM”), and DCP Midstream
Partners, LP, a Delaware limited partnership (“MLP”). HOLDINGS, GP, MIDSTREAM, and MLP are
sometimes referred to collectively herein as the “Parties” and individually as a “Party”.

R E C I T A L S

     A. Pursuant to the Prior Contribution Agreement, MIDSTREAM, through HOLDINGS and GP conveyed
25% of the outstanding membership interests in DCP East Texas Holdings, LLC, a Delaware limited
liability company (the “JV”) to MLP.

     B. Immediately prior to the date hereof, MIDSTREAM owned 75% of the outstanding membership
interests in the JV, and MLP owned 25% of the outstanding membership interests in the JV.

     C. The JV owns all of the membership interests in FCV, ET and DETG, which collectively own and
operate certain midstream gathering, compression, dehydrating, processing and fractionating assets
located in Panola, Harrison, Shelby, and Rusk Counties, Texas, and Caddo and DeSoto Parishes,
Louisiana including the Former UP Fuels Properties and the Former Gulf South Properties, which are
generally depicted on the System Map (the “East Texas System”).

     D. On the Closing Date, MIDSTREAM shall cause a 25.1% interest in the JV (the “Subject
Interests”) to be contributed to HOLDINGS and GP as capital contributions.

     E. The Parties then desire that HOLDINGS and GP then contribute the Subject Interests to MLP
for the consideration and in accordance with the terms of this Agreement.

     FOR GOOD AND VALUABLE CONSIDERATION, the receipt and sufficiency of which are hereby
acknowledged, MLP, GP, MIDSTREAM, and HOLDINGS agree as follows:

ARTICLE I

CERTAIN DEFINITIONS

     1.1 Certain Defined Terms. Capitalized terms used herein and not defined elsewhere in
this Agreement shall have the meanings given such terms as is set forth below.

     “Affiliate” means, when used with respect to a specified Person, any other Person
directly or indirectly controlling or controlled by or under direct or indirect common control with
the specified Person as of the time or for the time periods during which such determination is
made. For purposes of this definition “control”, when used with respect to any specified Person,
means the power to direct the management and policies of the Person, directly or indirectly,

1

 

whether through the ownership of voting securities, by contract or otherwise; and the terms
“controlling” and “controlled” have the meanings correlative to the foregoing. Notwithstanding the
foregoing, except for the JV, the term “Affiliate” when applied to (a) MLP shall not include
Spectra Energy Corp, a Delaware corporation, or ConocoPhillips, a Delaware corporation, or any
entities owned, directly or indirectly, by Spectra Energy Corp or ConocoPhillips, other than
entities owned, directly or indirectly, by MLP and GP and (b) HOLDINGS or GP shall not include MLP
or any entities owned, directly or indirectly, by MLP.

     “Amendment No. 2” shall mean Amendment No. 2 to that certain Second Amended and
Restated Agreement of Limited Partnership of MLP dated as the Effective Time and in the form of
Exhibit D hereto.

     “Annual Financial Statements” shall have the meaning given such term in
Section 4.21(a).

     “Arbitral Dispute” means any dispute, claim, counterclaim, demand, cause of action,
controversy and other matters in question arising out of or relating to this Agreement or the
alleged breach hereof, or in any way relating to the subject matter of this Agreement or the
relationship between the Parties created by this Agreement, regardless of whether (a) allegedly
extra-contractual in nature, (b) sounding in contract, tort, or otherwise, (c) provided for by
applicable Law or otherwise, or (d) seeking damages or any other relief, whether at Law, in equity,
or otherwise.

     “Arbitration Rules” shall have the meaning given such term in Section 11.8(d).

     “Assets” shall mean all of the following assets and properties of the JV (and its
respective Subsidiaries), except for the Excluded Assets:

     (a) Personal Property. All tangible personal property of every kind and nature that
relates to the ownership, operation, use or maintenance of the Facilities, including meters,
valves, engines, field equipment, office equipment, fixtures, trailers, tools, instruments, spare
parts, machinery, computer equipment, telecommunications equipment, furniture, supplies and
materials that are located at the Facilities, and all hydrocarbon inventory at the Facilities,
including linefill (collectively the “Personal Property”);

     (b) Real Property. All fee property, rights-of-way, easements, surface use
agreements, licenses and leases that relate to the ownership, operation, use or maintenance of the
Facilities, (collectively, the “Real Property Interests”), and all fixtures, buildings and
improvements located on or under such Real Property Interests;

     (c) Permits. All assignable permits, licenses, certificates, orders, approvals,
authorizations, grants, consents, concessions, warrants, franchises and similar rights and
privileges which are necessary for, or are used or held for use primarily for or in connection
with, the ownership, use, operation or maintenance of the Assets (collectively, the
“Permits”);

     (d) Contract Rights. All contracts that relate to the ownership, operation, use or
maintenance of the Assets, including all gathering, processing, balancing and other agreements for
the handling of natural gas or liquids, purchase and sales agreements, storage agreements,

2

 

transportation agreements, equipment leases, rental contracts, and service agreements
(collectively, the “Contracts”);

     (e) Intellectual Property. All technical information, shop rights, designs, plans,
manuals, specifications and other proprietary and nonproprietary technology and data used in
connection with the ownership, operation, use or maintenance of the Assets (collectively, the
“Intellectual Property”);

     (f) Facilities. All meter stations, gas processing plants, treaters, dehydration
units, compressor stations, fractionators, liquid handling facilities, platforms, warehouses, field
offices, control buildings, pipelines, tanks and other associated facilities that are used or held
for use in connection with the ownership, operation or maintenance of the East Texas System
(collectively, the “Facilities”);

     (g) Books and Records. All contract, land, title, engineering, environmental,
operating, accounting, business, marketing, and other data, files, documents, instruments, notes,
correspondence, papers, ledgers, journals, reports, abstracts, surveys, maps, books, records and
studies which relate primarily to the Assets or which are used or held for use primarily in
connection with, the ownership, operation, use or maintenance of the Assets; provided, however,
such material shall not include (i) any proprietary data that is not primarily used in connection
with the continued ownership, use or operation of the Assets, (ii) any information subject to Third
Person confidentiality agreements for which a consent or waiver cannot be secured by HOLDINGS or GP
after reasonable efforts, (iii) any information which, if disclosed, would violate an
attorney-client privilege or would constitute a waiver of rights as to attorney work product or
attorney-client privileged communications, or (iv) any information relating primarily to the
Reserved Liabilities or any obligations for which HOLDINGS or GP is required to indemnify the MLP
Indemnitees pursuant to Section 10.2 (collectively, the “Records”); provided,
however, that MLP shall have the right to copy any of the information specified in clause (iv); and

     (h) Incidental Rights. All of the following insofar as the same are attributable or
relate primarily to any of the Assets described in clauses (a) through (g): (i)
all purchase orders, invoices, storage or warehouse receipts, bills of lading, certificates of
title and documents, (ii) all keys, lock combinations, computer access codes and other devices or
information necessary to gain entry to and/or take possession of such Assets, (iii) all rights in
any confidentiality or nonuse agreements relating to the Assets, and (iv) the benefit of and right
to enforce all covenants, warranties, guarantees and suretyship agreements running in favor of the
Entities relating primarily to the Assets and all security provided primarily for payment or
performance thereof.

     “Assumed Obligations” shall mean any and all obligations and liabilities with respect
to or arising out of (i) the JV LLC Agreement and attributable to the Subject Interests, (ii)  the
ownership of the Subject Interests, and (iii) the Hedge.

     “Benefit Plan” shall mean any of the following: (a) any employee welfare benefit plan
or employee pension benefit plan as defined in sections 3(1) and 3(2) of ERISA, and (b) any other
material employee benefit agreement or arrangement, including a deferred compensation plan,

3

 

incentive plan, bonus plan or arrangement, stock option plan, stock purchase plan, stock award
plan, golden parachute agreement, severance plan, dependent care plan, cafeteria plan, employee
assistance program, scholarship program, employment contract, retention incentive agreement,
non-competition agreement, consulting agreement, vacation policy, and other similar plan, agreement
and arrangement.

     “Business Day” shall mean any day, other than Saturday and Sunday, on which
federally-insured commercial banks in Denver, Colorado are generally open for business and capable
of sending and receiving wire transfers.

     “Capital Projects” shall have the meaning given such term in Section 6.9.

     “Casualty Loss” shall mean, with respect to all or any portion of the Assets, any
destruction by fire, storm or other casualty, or any condemnation or taking or threatened
condemnation or taking, of all or any portion of the Assets.

     “Certificate of Common Units” shall mean a certificate representing Units in the MLP
in the form of the attached Exhibit C.

     “Claim” shall mean any demand, demand letter, claim or notice by a Third Person of
noncompliance or violation or Proceeding.

     “Claim Notice” shall have the meaning given such term in Section 10.3(c).

     “Closing” shall have the meaning given such term in Section 8.1.

     “Closing Date” shall have the meaning given such term in Section 8.1.

     “Code” shall mean the U.S. Internal Revenue Code of 1986, as amended.

     “Commercially Reasonable Efforts” shall mean efforts which are reasonably within the
contemplation of the Parties on the date hereof, which are designed to enable a Party, directly or
indirectly, to satisfy a condition to, or otherwise assist in the consummation of, the transactions
contemplated by this Agreement and which do not require the performing Party to expend any funds or
assume liabilities other than expenditures and liabilities which are reasonable in nature and
amount in the context of the transactions contemplated by this Agreement.

     “Consideration” has the meaning defined in Section 2.2.

     “Contracts” shall have the meaning given such term in the definition of Assets.

     “Defensible Title” shall mean, as to the Assets, such title to the Assets that vests
the applicable Entity with indefeasible title in and to the Assets free and clear of Liens other
than Permitted Encumbrances.

     “DETG” shall mean DCP East Texas Gathering, LLC, a Delaware limited liability company.

4

 

     “East Texas Casualty Incident” shall mean the fire and related property damage to the
Facilities that occurred on or about February 11, 2009.

     “East Texas System” shall have the meaning given such term in the Recitals.

     “Effective Time” shall mean 12:01 A.M. Denver time on April 1, 2009 (or, if the
Closing Date occurs later than April 1, 2009, 12:01 A.M. Denver time on the Closing Date).

     “Entities” shall mean FCV, ET, DETG and the JV.

     “Environmental Law” shall mean any and all Laws, statutes, ordinances, rules,
regulations, or orders of any Governmental Authority in existence at the Effective Time pertaining
to employee health, public safety, pollution or the protection of the environment or natural
resources or to Hazardous Materials in any and all jurisdictions in which the party in question
owns property or conducts business or in which the Assets are located, including the Clean Air Act,
the Comprehensive Environmental Response, Compensation, and Liability Act of 1980
(“CERCLA”), the Federal Water Pollution Control Act, the Occupational Safety and Health Act
of 1970 (to the extent relating to environmental matters), the Resource Conservation and Recovery
Act of 1976 (“RCRA”), the Safe Drinking Water Act, the Toxic Substances Control Act, the
Hazardous & Solid Waste Amendments Act of 1984, the Superfund Amendments and Reauthorization Act of
1986, the Hazardous Materials Transportation Act, the Oil Pollution Act of 1990, any state or local
Laws implementing or substantially equivalent to the foregoing federal Laws, and any state or local
Laws pertaining to the handling of oil and gas exploration, production, gathering, and processing
wastes or the use, maintenance, and closure of pits and impoundments.

     “Environmental Matter” shall have the meaning given such term in Section
4.4(b).

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

     “ET” shall mean EasTrans, LLC, a Delaware limited liability company.

     “Excluded Assets” shall mean all of the following:

     (a) Any deposits or pre-paid items attributable to the operation of the Assets not paid by or
on behalf of the JV;

     (b) [Reserved];

     (c) Claims for refund of or loss carry forwards with respect to (i) Taxes attributable
to the business of the Entities for any period prior to the Prior Contribution Agreement
Closing Date or (ii) any Taxes attributable to any of the Excluded Assets;

     (d) All work product of HOLDINGS’ or its Affiliates’ attorneys, records relating to the
negotiation and consummation of the transactions contemplated hereby and documents that are
subject to a valid attorney client privilege;

5

 

     (e) the real property, personal property, contracts, intellectual property, Permits,
office computers or other equipment (or any leases or licenses of the foregoing), if any,
that are listed on Schedule 1.1(a);

     (f) All vehicles, and all leases for vehicles that relate to the ownership, operation,
use or maintenance of the Assets;

     (g) All computer software that relates to the ownership, operation, use or maintenance
of the Assets that requires a consent to transfer;

     (h) All rights and obligations under those certain swaps, futures and similar
derivative based transactions listed in Schedule 1.1(b);

     (i) All office equipment and accessories (including computers) that relate to the
ownership, operation, use or maintenance of the Assets, other than that located at the
Facilities; and

     (j) Without limiting the obligations under Sections 6.2, all rights to claim
coverage or benefits under any insurance policies or coverage applicable to the JV, the
Entities or the Assets, including self-insurance and insurance obtained through a captive
insurance carrier, but excluding any such rights to recover amounts that are included in the
calculation of Net Working Capital.

     “Exhibits” shall mean any and/or all of the exhibits attached to and made a part of
this Agreement.

     “Execution Date” shall have the meaning given such term in the opening paragraph of
this Agreement.

     “Existing JV Interests” shall mean the Interests in the JV acquired by MLP pursuant to
the Prior Contribution Agreement.

     “Facilities” shall have the meaning given such term within the definition of Assets.

     “FCV” shall mean Fuels Cotton Valley Gathering, LLC, a Delaware limited liability
company.

     “Final Settlement Statement” shall have the meaning given such term in Section
3.3.

     “Former Gulf South Properties” shall mean the former Gulf South gathering facilities
located in Shelby, Panola and Harrison Counties, Texas and Caddo Parish, Louisiana, which are
generally depicted on the System Map, and which were acquired by DCP Midstream, LP or its
Affiliates on March 31, 2005.

     “Former UP Fuels Properties” shall mean the former UP Fuels gathering and processing
facilities located in Panola, Shelby, Harrison and Rusk Counties, Texas, and Caddo and DeSoto
Parishes, Louisiana, which are generally depicted on the System Map, and which were acquired by DCP
Midstream, LP or its Affiliates on April 1, 1999.

6

 

     “GAAP” means generally accepted accounting principles in the United States as of the
date hereof, consistently applied.

     “GP” shall have the meaning given such term in the introductory paragraph.

     “Governmental Authorities” shall mean (a) the United States of America or any state or
political subdivision thereof within the United States of America and (b) any court or any
governmental or administrative department, commission, board, bureau or agency of the United States
of America or of any state or political subdivision thereof within the United States of America.

     “HSR Act” means the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended.

     “Hazardous Materials” shall mean: (a) any wastes, chemicals, materials or substances
defined or included in the definition of “hazardous substances,” “hazardous materials,” “toxic
substances,” “solid wastes,” “pollutants,” “contaminants,” or words of similar import, under any
Environmental Law; (b) any hydrocarbon or petroleum or component thereof, (including, without
limitation, crude oil, natural gas, natural gas liquids, or condensate that is not reasonably and
commercially recoverable; (c) oil and gas exploration or production wastes including produced
water; (d) radioactive materials (other than naturally occurring radioactive materials), friable
asbestos, mercury, lead based paints and polychlorinated biphenyls, (e) any other chemical,
material or substance, exposure to which is prohibited, limited or regulated by any Governmental
Authority; or (f) any regulated constituents or substances in concentrations or levels that exceed
numeric or risk-based standards established pursuant to Environmental Laws.

     “Hedge” shall mean that certain financial swap transaction, with MLP as the fixed
price payor and HOLDINGS (or its Affiliate that is acceptable to MLP) as the floating price payor
for the period of April 1, 2009 through March 31, 2010,.

     “Hedge Confirmation” shall mean the document used to evidence the Hedge in the form of
Exhibit E.

     “HOLDINGS” shall have the meaning given such term in the introductory paragraph.

     “HOLDINGS’ Indemnitees” shall have the meaning given such term in Section
10.1.

     “HOLDINGS’ Knowledge” or the “Knowledge of HOLDINGS” or any similar term,
shall mean the actual knowledge of (a) any officer of HOLDINGS having a title of Vice President or
higher, and (b) the individuals listed on Schedule 1.1(c).

     “HOLDINGS’ Required Consents” shall have meaning given such term in Section
4.4(a).

     “Indemnified Party” or “Indemnitee” shall have the meaning given such term in
Section 10.4(a).

     “Indemnifying Party” or “Indemnitor” shall have the meaning given such term in
Section 10.4(a).

7

 

     “Independent Accountants” shall mean PricewaterhouseCoopers.

     “Inlet AFE” shall have the meaning set forth in Schedule 6.9.

     “Intellectual Property” shall have the meaning given such term in the definition of
Assets.

     “Interest Rate” shall mean three (3) months LIBOR plus one-half of one percent (0.5%).

     “JV” shall have the meaning given such term in the Recitals.

     “JV LLC Agreement” shall mean the Amended and Restated Limited Liability Company
Agreement of DCP East Texas Holdings, LLC dated July 1, 2007, and from and after the Effective
Time, as amended and restated by the Second Amended and Restated Limited Liability Company
Agreement.

     “Laws” shall mean all applicable statutes, laws (including common law), regulations,
rules, rulings, ordinances, orders, restrictions, requirements, writs, judgments, injunctions,
decrees and other official acts of or by any Governmental Authority.

     “Lien” shall mean any lien, mortgage, pledge, claim, charge, security interest or
other encumbrance, option or defect on title.

     “LIBOR” shall mean the British Bankers’ Association interbank offered rates as of
11:00 a.m. London time for deposits in Dollars that appear on the relevant page of the Reuters
service (currently page LIBOR01) or, if not available, on the relevant pages of any other service
(such as Bloomberg Financial Markets Service) that displays such British Bankers’ Association
rates.

     “Limited Partnership Agreement” shall mean the Second Amended and Restated Agreement
of Limited Partnership of MLP dated as of November 1, 2006, as amended by Amendment No. 1 dated
April 11, 2008, and from and after the Effective Time, as amended by Amendment No. 2.

     “Loss” or “Losses” shall mean any and all damages, demands, payments,
obligations, penalties, assessments, disbursements, claims, costs, liabilities, losses, causes of
action, and expenses, including interest, awards, judgments, settlements, fines, fees, costs of
defense and reasonable attorneys’ fees, costs of accountants, expert witnesses and other
professional advisors and costs of investigation and preparation of any kind or nature whatsoever.

     “Material Adverse Effect” shall mean a single event, occurrence or fact, or series of
events, occurrences or facts, that, alone or together with all other events, occurrences or facts
(a) would have an adverse change in or effect on the Entities or the Assets (including the cost to
remedy, replace or obtain same) taken as a whole, in excess of $2,250,000 or (b) would result in
the prohibition or material delay in the consummation of the transactions contemplated by this
Agreement, excluding (in each case) matters that are generally industry-wide developments or
changes or effects resulting from changes in Law or general economic, regulatory or political
conditions.

8

 

     “Material Casualty Loss” shall have the meaning given such term in Section
6.2.

     “Materiality Condition” shall have the meaning given such term in Section
10.5.

     “MIDSTREAM” shall have the meaning given such term in the introductory paragraph.

     “MLP” shall have the meaning given such term in the introductory paragraph.

     “MLP Indemnitees” shall have the meaning given such term in Section 10.2.

     “MLP’s Knowledge” or the “Knowledge of MLP” or any similar term, shall mean
the actual knowledge of any officer of MLP having a title of vice president or higher.

     “MLP Required Consents” shall have the meaning given such term in Section 5.4.

     “Net Working Capital” means, as to the JV, and determined as of the Effective Time, an
amount (which may be positive or negative) equal to (i) the total current assets of the JV and its
Subsidiaries minus (ii) the total current liabilities of the JV and its Subsidiaries, in
each case determined in accordance with GAAP.

     “New Capital Projects” shall have the meaning given such term in Section
6.9(b).

     “Notice Period” shall have the meaning given such term in Section 10.4(c).

     “Ordinary Course of Business” shall mean the ordinary course of business consistent
with past practices.

     “Permits” shall have the meaning given such term in the definition of Assets.

     “Permitted Encumbrances” shall mean the following:

     (a) the terms, conditions, restrictions, exceptions, reservations, limitations, and other
matters contained in any document creating the Real Property Interests, or in any Permit or
Contract;

     (b) Liens for property Taxes and assessments that are not yet due and payable (or that are
being contested in good faith by appropriate Proceedings for which adequate reserves in accordance
with GAAP have been established on the books of account of the applicable Entity);

     (c) mechanic’s, materialmen’s, repairmen’s and other statutory Liens arising in the Ordinary
Course of Business and securing obligations incurred prior to the Effective Time and (i) for which
adequate reserves in accordance with GAAP have been established on the books of account of the
applicable Entity, or (ii) that are not delinquent and that will be paid and discharged in the
Ordinary Course of Business or, if delinquent, that are being contested in good faith with any
action to foreclose on or attach any Assets on account thereof properly stayed and for which
adequate reserves in accordance with GAAP have been established on the books of account of the
applicable Entity;

9

 

     (d) utility easements, restrictive covenants, defects and irregularities in title,
encumbrances, exceptions and other matters that are of record that, singularly or in the aggregate,
will not materially interfere with the ownership, use or operation of the Assets to which they
pertain;

     (e) required Third Person consents to assignment, preferential purchase rights and other
similar agreements with respect to which consents or waivers are obtained from the appropriate
Person for the transaction contemplated hereby prior to Closing or, as to which the appropriate
time for asserting such rights has expired as of the Closing without an exercise of such rights;

     (f) any Post-Closing Consent;

     (g) Liens created by MLP or its successors or assigns; and

     (h) the Liens listed on Schedule 1.1(e).

     “Person” shall mean any natural person, corporation, company, partnership (general or
limited), limited liability company, trust, joint venture, joint stock company, unincorporated
organization, or other entity or association.

     “Personal Property” shall have the meaning given such term in the definition of
Assets.

     “Post-Closing Consents” shall mean consents or approvals from, or filings with
Governmental Authorities or consents from railroads customarily obtained following the closing of
transactions involving the transfer of assets similar to those owned by the Entities, as listed on
Schedule 4.3.

     “Pre-Closing Tax Period” shall mean, with respect to the Entities, any taxable period
ending on or prior to the Closing Date.

     “Preliminary Settlement Statement” shall have the meaning given such term in
Section 3.2.

     “Prior Contribution Agreement” shall mean that certain Contribution Agreement dated
May 23, 2007 among HOLDINGS, MIDSTREAM, GP and MLP.

     “Prior Contribution Agreement Closing Date” shall mean July 1, 2007.

     “Proceeding” shall mean any action, suit, claim, investigation, review or other
judicial or administrative proceeding, at Law or in equity, before or by any Governmental Authority
or arbitration or other dispute resolution proceeding.

     “Qualified Claims” shall have the meaning given such term in Section
10.3(b)(iii).

     “Real Property Interests” shall have the meaning given such term in the definition of
Assets.

10

 

     “Records” shall have the meaning given such term in the definition of Assets.

     “Reserved Liabilities” shall mean Losses (but only to the extent not reflected in Net
Working Capital) with respect to:

     (i) except for sales, transfer, use or similar Taxes that are due or should hereafter become
due (including penalty and interest thereon) by reason of creation of the JV and the conveyances
and transactions contemplated by this Agreement, 75% of the amount of Taxes with respect to the
Entities or the Assets to the extent related to periods prior to and including the Closing Date;

     (ii) disposal of Hazardous Materials at offsite locations (a) which were delivered from the
East Texas System (excluding the Former Gulf South Properties) between April 1, 1999 and the
Closing Date and (b) which were delivered from the Former Gulf South Properties between March 31,
2005 and the Closing Date; provided, however, that the Reserved Liabilities shall only include 75%
of this form of Loss to the extent disposal occurred after the Prior Contribution Agreement Closing
Date; and

     (iii) the Excluded Assets and Taxes related thereto; and

     (iv) those matters, if any, described on Schedule 1.1(f).

     “Schedules” shall mean any and/or all of the schedules attached to and made a part of
this Agreement.

     “SEC” shall mean the U.S. Securities and Exchange Commission.

     “SEC Financial Statements” shall mean collectively the Annual Financial Statements.

     “Securities Act” shall mean the Securities Act of 1933, as amended.

     “Settlement Notice” shall have the meaning given such term in Section 3.4.

     “Subject Interests” shall have the meaning given such term in the Recitals.

     “Subject Interests Assignment Agreement” shall mean the Assignment Agreement in
substantially the form of Exhibit B covering the conveyance of the Subject Interests by
HOLDINGS and GP to MLP.

     “Subsidiary” means, with respect to any Person, (a) any corporation, of which a
majority of the total voting power of shares of stock entitled (without regard to the occurrence of
any contingency) to vote generally in the election of directors thereof is at the time owned or
controlled, directly or indirectly, by that Person or one or more of the other Subsidiaries of that
Person or a combination thereof or (b) any limited liability company, partnership, association or
other business entity, of which a majority of the partnership or other similar ownership interests
thereof is at the time owned or controlled, directly or indirectly, by that Person or one or more
Subsidiaries of that Person or a combination thereof.

11

 

     “System Map” shall collectively mean the maps depicting the East Texas System, which
maps are attached as Schedules 1.1(g).

     “Tax” or “Taxes” shall mean any federal, state, local or foreign income tax,
ad valorem tax, excise tax, sales tax, use tax, franchise tax, real or personal property tax,
transfer tax, gross receipts tax or other tax, assessment, duty, fee, levy or other governmental
charge, together with and including, any and all interest, fines, penalties, assessments, and
additions to Tax resulting from, relating to, or incurred in connection with any of those or any
contest or dispute thereof.

     “Tax Authority” shall mean any Governmental Authority having jurisdiction over the
payment or reporting of any Tax.

     “Tax Benefits” means the amount by which the Tax liability of the Indemnified Party or
any of its Affiliates for a taxable period is actually reduced (including by deduction, reduction
in income upon a sale, disposition or other similar transaction as a result of increased tax basis,
receipt of a refund of Taxes or use of a credit of Taxes) plus any related interest (net of Taxes
payable thereon) received from the relevant Tax Authority, as a result of the incurrence, accrual
or payment of any Loss or Tax with respect to which the indemnification payment is being made.

     “Tax Return” shall mean any report, statement, form, return or other document or
information required to be supplied to a Tax Authority in connection with Taxes.

     “Third Person” shall mean (i) any Person other than a Party or its Affiliates, and
(ii) any Governmental Authority.

     “Third Person Awards” shall mean any actual recoveries from Third Persons by the
Indemnified Party (including from insurance and third-party indemnification) in connection with the
claim for which such party is also potentially liable.

     “Total Net Working Capital” means the amount (which may be positive or negative) equal
to the product of the Net Working Capital multiplied by 25.1%.

     “Transaction Documents” shall mean the JV LLC Agreement, Amendment No. 2, the Subject
Interests Assignment Agreement, such certificate or other documents as are necessary to transfer
the Units to HOLDINGS and GP pursuant to Section 2.2, the Hedge Confirmation, and any other
document related to the sale, transfer, assignment or conveyance of the Subject Interests to be
delivered at Closing.

     “Treasury Regulations” shall mean regulations promulgated under the Code.

     “Units” shall mean the Class D limited partnership interests issuable by MLP upon
execution of Amendment No. 2.

     1.2 Other Definitional Provisions. As used in this Agreement, unless expressly stated
otherwise or the context requires otherwise, (a) all references to an “Article,” “Section,” or
“subsection” shall be to an Article, Section, or subsection of this Agreement, (b) the words “this
Agreement,” “hereof,” “hereunder,” “herein,” “hereby,” or words of similar import shall refer to
this Agreement as a whole and not to a particular Article, Section, subsection, clause or other

12

 

subdivision hereof, (c) the words used herein shall include the masculine, feminine and neuter
gender, and the singular and the plural, (d) the word “including” means “including, without
limitation” and (e) the word “day” or “days” means a calendar day or days, unless otherwise denoted
as a Business Day.

     1.3 Headings. The headings of the Articles and Sections of this Agreement and of the
Schedules and Exhibits are included for convenience only and shall not be deemed to constitute part
of this Agreement or to affect the construction or interpretation hereof or thereof.

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

ARTICLE II

CONTRIBUTION OF THE SUBJECT INTERESTS,

ISSUANCE OF THE UNITS AND CONSIDERATION

     2.1 The Transaction. Upon the terms and subject to the conditions of this Agreement,
at the Closing, but effective for all purposes as of the Effective Time, HOLDINGS and GP shall
contribute to MLP the Subject Interests and the Hedge in exchange for the issuance of the
Consideration to HOLDINGS and GP pursuant to Section 2.2, and MLP shall assume and thereafter
timely perform and discharge in accordance with their respective terms, all Assumed Obligations.

     2.2 Consideration. In consideration of HOLDINGS’ and GP’s contribution of the Subject
Interests and the Hedge, MLP shall (i) issue and deliver to HOLDINGS and GP at the Closing one or
more certificates duly registered in the names of HOLDINGS and GP and representing in the case of
HOLDINGS, three million, two hundred thirty-one thousand, seven hundred fifty (3,231,750) Units and
in the case of GP, two hundred sixty-eight thousand, two hundred fifty (268,250) Units (such
3,500,000 Units being referred to herein collectively as, the “Consideration”) and (ii)
distribute an amount of cash to HOLDINGS and GP, in the aggregate, equal to (A) the Total Net
Working Capital and (B) 25.1% of amounts paid or accrued between the Execution Date and the Closing
by HOLDINGS or GP for New Capital Projects; provided, however, if the sum set forth in Section
2.2(ii) is a negative number, such value shall be paid by HOLDINGS and GP to MLP at the
Closing, and provided, further, that to the extent cash is distributed pursuant to Section 2.2(ii),
such amounts shall be allocated between and paid to HOLDINGS and GP in proportion to the number of
Units issued to each of them.

ARTICLE III

ADJUSTMENTS AND SETTLEMENT

     3.1 Adjustments.

     (a) The value of the Total Net Working Capital shall be subject to cash adjustments
pursuant to this Article III.

     (b) The Parties shall use all Commercially Reasonable Efforts to agree upon the
adjustments set forth in this Article III, and to resolve any differences with
respect

13

 

thereto. Except as provided herein, no adjustments shall be made after delivery of the
Final Settlement Statement.

     3.2 Preliminary Settlement Statement. Not later than five (5) business days before
the Closing Date, and after consultation with MLP, HOLDINGS shall deliver to MLP a written
statement (the “Preliminary Settlement Statement”) setting forth the Total Net Working
Capital and each component therein, as determined in good faith by HOLDINGS that are described in
the definition thereof, with HOLDINGS’ calculation of such items in reasonable detail, based on
information then available to HOLDINGS. The Preliminary Settlement Statement shall also set forth
wire transfer instructions for the Closing payments. Payment of the Total Net Working Capital at
the Closing shall be based on the Preliminary Settlement Statement.

     3.3 Final Settlement Statement. No later than ninety (90) days after the Closing Date
and after consultation with MLP, HOLDINGS shall deliver to MLP a revised settlement statement
showing in reasonable detail its calculation of the items described in the definition of Total Net
Working Capital along with other adjustments or payments contemplated in this Agreement (said
revised statement and the calculation thereof shall be referred to as the “Final Settlement
Statement”).

     3.4 Dispute Procedures. The Final Settlement Statement shall become final and binding
on the Parties on the 45th day following the date the Final Settlement Statement is received by
MLP, unless prior to such date MLP delivers written notice to HOLDINGS of its disagreement with the
Final Settlement Statement (a “Settlement Notice”). Any Settlement Notice shall set forth
MLP’s proposed changes to the Final Settlement Statement, including an explanation in reasonable
detail of the basis on which MLP proposes such changes. If MLP has timely delivered a Settlement
Notice, MLP and HOLDINGS shall use good faith efforts to reach written agreement on the disputed
items. If the disputed items have not been resolved by MLP and HOLDINGS by the 30th day following
HOLDINGS’ receipt of a Settlement Notice, any remaining disputed items shall be submitted to the
Independent Accountants for resolution within ten (10) Business Days after the end of the foregoing
30-day period. The fees and expenses of the Independent Accountants shall be borne fifty percent
(50%) by HOLDINGS and fifty percent (50%) by MLP. The Independent Accountants’ determination of
the disputed items shall be final and binding upon the Parties, and the Parties hereby waive any
and all rights to dispute such resolution in any manner, including in court, before an arbiter or
appeal.

     3.5 Payments. If the final calculated amount as set forth in the Final Settlement
Statement exceeds the estimated calculated amount as set forth in the Preliminary Settlement
Statement, then MLP shall pay to HOLDINGS the amount of such excess, with interest at the Interest
Rate (calculated from the Closing Date). If the final calculated amount as set forth in the Final
Settlement Statement is less than the estimated calculated amount as set forth in the Preliminary
Settlement Statement, then HOLDINGS shall pay to MLP the amount of such excess, with interest at
the Interest Rate (calculated from the Closing Date). Any payment shall be made within three (3)
Business Days of the date the Final Settlement Statement becomes final pursuant to Section
3.4.

     3.6 Access to Records. The Parties shall grant to each other full access to the
Records and relevant personnel to allow each of them to make evaluations under this Article
III.

14

 

ARTICLE IV

REPRESENTATIONS AND WARRANTIES OF HOLDINGS

HOLDINGS represents and warrants to MLP as follows:

     4.1 Organization, Good Standing, and Authority.

     (a) GP is a limited partnership duly formed, validly existing and in good standing
under the Laws of the State of Delaware. The execution and delivery of this Agreement and
the other Transaction Documents to which GP is a party and the consummation by GP of the
transactions contemplated herein and therein have been duly and validly authorized by all
necessary limited partnership action by GP. This Agreement has been duly executed and
delivered by GP. GP has all requisite limited partnership power and authority to enter into
and perform this Agreement and the other Transaction Documents to which it is a party, to
perform its obligations hereunder and thereunder and to carry out the transactions
contemplated herein and therein.

     (b) Each of HOLDINGS and MIDSTREAM is a limited liability company duly formed, validly
existing and in good standing under the Laws of the State of Delaware. The execution and
delivery of this Agreement and the other Transaction Documents to which HOLDINGS and
MIDSTREAM is a party and the consummation by HOLDINGS and MIDSTREAM of the transactions
contemplated herein and therein have been duly and validly authorized by all necessary
limited liability company action by HOLDINGS and MIDSTREAM, respectively. This Agreement
has been duly executed and delivered by HOLDINGS and MIDSTREAM. Each of HOLDINGS and
MIDSTREAM has all requisite limited liability company power and authority to enter into and
perform this Agreement and the other Transaction Documents to which it is a party, to
perform its obligations hereunder and thereunder and to carry out the transactions
contemplated herein and therein.

     (c) The JV, ET, FCV and DETG are limited liability companies duly formed, validly
existing and in good standing under the Laws of the State of Delaware and have all requisite
limited liability company power and authority to own or otherwise hold and operate its
assets. The execution and delivery of any Transaction Documents to which the JV is a party
and the consummation by the JV of the transactions contemplated herein and therein to which
it is a party have been duly and validly authorized by all necessary limited liability
company action by the JV, ET, FCV and/or DETG (as the case may be).

     4.2 Enforceability. This Agreement constitutes and, upon execution of and delivery by
HOLDINGS, GP and MIDSTREAM of the other Transaction Documents to which it is a party, such
Transaction Documents will constitute, valid and binding obligations of HOLDINGS, GP and MIDSTREAM,
enforceable against such Parties in accordance with their terms, subject to applicable bankruptcy,
insolvency, reorganization, moratorium and other similar Laws affecting creditor’s rights generally
and general principles of equity.

     4.3 No Conflicts. The execution, delivery and performance by HOLDINGS, GP and
MIDSTREAM of this Agreement, and the execution, delivery and performance by HOLDINGS,

15

 

GP and MIDSTREAM of the other Transaction Documents to which it is a party and the
consummation of the transactions contemplated hereby or thereby, will not:

     (a) Provided all of HOLDINGS’ Required Consents and Post Closing Consents have been
obtained, conflict with, constitute a breach, violation or termination of, give rise to any
right of termination, cancellation or acceleration of or result in the loss of any right or
benefit under, any agreements to which HOLDINGS, GP, MIDSTREAM or the Entities is a party or
by which any of them, the Subject Interests or the Assets are bound;

     (b) Conflict with or violate the limited liability company agreements of MIDSTREAM, JV,
DETG, FCV, HOLDINGS, GP or ET; and

     (c) Provided that all of HOLDINGS’ Required Consents and Post Closing Consents have
been obtained, violate any Law applicable to HOLDINGS, GP, MIDSTREAM or the Entities or the
Assets.

     4.4 Consents, Approvals, Authorizations and Governmental Regulations.

     (a) Except (i) for Post-Closing Consents, (ii) as set forth in Schedule 4.4 and
(iii) as may be required under the HSR Act (the items described in clauses (ii) and (iii)
being collectively referred to as the “HOLDINGS’ Required Consents”; no order,
consent, waiver, permission, authorization or approval of, or exemption by, or the giving of
notice to or the registration or filing with any Third Person, is necessary for HOLDINGS, GP
or MIDSTREAM to execute, deliver and perform this Agreement or for HOLDINGS, GP or MIDSTREAM
to execute, deliver and perform the other Transaction Documents to which it is a party.

     (b) Except as set forth in Schedule 4.4, (i), all material permits, licenses,
certificates, orders, approvals, authorizations, grants, consents, concessions, warrants,
franchises and similar rights and privileges, of all Governmental Authorities required or
necessary for the Entities to own and operate its Assets in the places and in the manner
currently owned or operated, have been obtained, and are in full force and effect, (ii)
HOLDINGS and its Affiliates have received no written notification concerning, and there are
no violations that are in existence with respect to the permits and (iii) no Proceeding is
pending or threatened with respect to the revocation or limitation of any of the permits.
Notwithstanding anything herein to the contrary, the provisions of this Section
4.4(b) shall not relate to or cover any matter relating to or arising out of any
Environmental Laws (an “Environmental Matter”), which shall be governed by
Section 4.12.

     4.5 Taxes. Except as set forth in Schedule 4.5:

     (a) JV has not and will not on or prior to the Closing Date, file an election under
Treasury Regulation §301.7701-3 to be classified as a corporation for U.S. federal income
tax purposes. Since the date of their formation until Closing, DETG, FCV and ET have been
and will be business entities that will be disregarded for federal Tax purposes under
Treasury Regulation §§301.7701-2 and -3;

16

 

     (b) Except with respect to ad valorem Taxes for the year in which Closing occurs, all
Taxes due and owing or claimed to be due and owing (whether such claim is asserted before or
after the Effective Time) from or against any Entity relating to the Assets, or the
operation thereof, prior to the Effective Time have been or will be timely paid in full by,
for or on behalf or with respect to the Entity owing such Tax;

     (c) All withholding Tax and Tax deposit requirements imposed on HOLDINGS, the Entities,
and applicable to the Assets, or the operation thereof, for any and all periods or portions
thereof ending prior to the Effective Time have been or will be timely satisfied in full by
for or on behalf or with respect to the Entity owing such Tax;

     (d) All Tax Returns that are required to be timely filed for, by, on behalf of or with
respect to the Entities, before the Effective Time have been or will be filed with the
appropriate Governmental Authority; all Taxes shown to be due and payable on such Tax
Returns have been or will be paid in full by, for or on behalf or with respect to the Entity
owing such Tax;

     (e) None of the Entities is under Tax audit or Tax examination by any Governmental
Authority. There are no Claims now pending or, to the Knowledge of HOLDINGS, threatened
against the Entities with respect to any Tax or any matters under discussion with any
Governmental Authority relating to any Tax;

     (f) None of the Entities (i) has agreed to make, nor is required to make, any
adjustment under Section 481 of the Code or any comparable provision of state, local or
foreign Law by reason of a change in accounting method or otherwise, and (ii) is a party to
or bound by (or will become a party to or bound by) any Tax sharing, Tax indemnity or Tax
allocation agreement; and

     (g) The JV has made an election under Section 754 of the Code.

     4.6 Litigation; Compliance with Laws.

     (a) There is no injunction, restraining order or Proceeding pending against HOLDINGS,
GP, MIDSTREAM or the Entities that restrains or prohibits the consummation of the
transactions contemplated by this Agreement.

     (b) Except for the litigation and Claims identified on Schedule 4.6, there is
no written Claim, investigation or examination pending, or to the Knowledge of HOLDINGS and
GP, threatened, against or affecting the Entities (or their respective assets) before or by
any Third Person.

     (c) To HOLDINGS’ Knowledge, the Assets have been owned and operated in compliance with
applicable Laws, except for any non-compliance which has been timely brought into compliance
therewith. Notwithstanding anything herein to the contrary, the provisions of this
Section 4.6(c) shall not relate to or cover any Environmental Matters, which shall
be governed by Section 4.12.

17

 

     4.7 Contracts. All of the Contracts that are material to the business of the
Entities, taken as a whole, are listed on Schedule 1.1(d), with the exception of interests
in real property. The Entities are not in default and there is no event or circumstance that with
notice, or lapse of time or both, would constitute an event of default by the applicable Entity
under the terms of the Contracts. All of the Contracts of the Entities are in full force and
effect and to HOLDINGS’ Knowledge, no counter-party to any of the Contracts is in default under the
terms of such Contracts. Schedule 1.1(d) lists each Contract that:

     (a) expressly obligates an Entity to pay an amount of $500,000 (to the 100% interest)
or more and has not been fully performed as of the date hereof;

     (b) expressly restricts the ability of an Entity to compete or otherwise to conduct its
business in any manner or place;

     (c) provides for the sale of products or the provision of services (for a term greater
than a year) for amounts in excess of $500,000 (to the 100% interest and including
outstanding offers or quotes which by acceptance would create such a Contract) and which
have not been fully performed as of the date hereof;

     (d) provides a right of first refusal or other restrictive right that limits the
ability to transfer, sell or assign an interest in an asset or an equity interest in a
Person;

     (e) is a master agreement, swap, derivative, option, future or similar type Contract or
any open agreement or position thereunder;

     (f) is with any current or former employee, officer, director or consultant of HOLDINGS
or an Entity or their respective Affiliates;

     (g) is an inter-company agreement;

     (h) is with any labor union or association;

     (i) is a partnership or joint venture agreement with a Third Person in which one of
HOLDINGS or an Entity or their respective Affiliates is a party or by which any of them are
bound;

     (j) is an agreement with a consideration in excess of $500,000 (to the 100% interest)
by an Entity to purchase or sell any assets (other than inventory in the Ordinary Course of
Business), businesses, capital stock or other debt or equity securities of any Person; or

     (k) is an agreement with a consideration in excess of $500,000 (to the 100% interest)
involving the merger, consolidation, purchase, sale, transfer or other disposition of
interests in real property, capital stock or other debt or equity securities of any Person
prior to Closing.

18

 

     4.8 Title to Assets; Intellectual Property. Except for the Permitted Encumbrances,
each of the Entities has Defensible Title to those of the Assets that it operates, free and clear
of all Liens, and:

     (a) none of HOLDINGS or the Entities has received any written notice of infringement,
misappropriation or conflict with respect to Intellectual Property from any Person with
respect to the ownership, use or operation of the Assets; and

     (b) the ownership, use and operation of the Assets have not infringed, misappropriated
or otherwise conflicted with any patents, patent applications, patent rights, trademarks,
trademark applications, service marks, service mark applications, copyrights, trade names,
unregistered copyrights or trade secrets of any other Person.

     4.9 Preferential Rights to Purchase. Except as listed in Schedule 4.9, there
are no preferential or similar rights to purchase any portion of the Entities or Assets that will
be triggered by this Agreement or the transactions contemplated herein.

     4.10 Broker’s or Finder’s Fees. No investment banker, broker, finder or other Person
is entitled to any brokerage or finder’s fee or similar commission in respect thereof based in any
way on agreements, arrangements or understandings made by or on behalf of HOLDINGS or any of its
Affiliates.

     4.11 Compliance with Property Instruments. To HOLDINGS’ Knowledge and except as set
forth in Schedule 4.11, (a) all of the instruments creating the Real Property Interests are
presently valid, subsisting and in full force and effect; (b) there are no violations, defaults or
breaches thereunder, or existing facts or circumstances which upon notice or the passage of time or
both will constitute a violation, default or breach thereunder; and (c) the Assets are currently
being operated and maintained in compliance with all terms and provisions of the instruments
creating the Real Property Interests. None of HOLDINGS or its Affiliates has received or given any
written notice of default or claimed default under any such instruments and is not participating in
any negotiations regarding any material modifications thereof.

     4.12 Environmental Matters. Except as set forth in Schedule 4.12:

     (a) to HOLDINGS’ Knowledge, HOLDINGS and its Affiliates have not caused or allowed the
generation, use, treatment, manufacture, storage, or disposal of Hazardous Materials at, on
or from the Assets, except in accordance with all applicable Environmental Laws;

     (b) to HOLDINGS’ Knowledge, there has been no release of any Hazardous Materials at,
on, from or underlying any of the Assets other than such releases that (i) are not required
to be reported to a Governmental Authority, (ii) have been reported to the appropriate
Governmental Authority or (iii) were in compliance with applicable Environmental Laws;

     (c) to HOLDINGS’ Knowledge, the Entities have secured all permits required under
Environmental Laws for the ownership, use and operation of the Assets and the Entities are
in compliance with such permits;

19

 

     (d) HOLDINGS and its Affiliates have not received written inquiry or notice of any
actual or threatened Claim related to or arising under any Environmental Law relating to the
Assets;

     (e) none of HOLDINGS or the Entities is currently operating or required to be operating
any of the Assets under any compliance order, a decree or agreement, any consent decree or
order, or corrective action decree or order issued by or entered into with any Governmental
Authority under any Environmental Law or any Law regarding health or safety in the work
place;

     (f) to HOLDINGS’ Knowledge, the Entities have owned, used and operated the Assets in
compliance with Environmental Laws, except for any non-compliance which has been remediated
and brought into compliance with Environmental Laws; and

     (g) to HOLDINGS’ Knowledge, none of the off-site locations where Hazardous Materials
from any of the Assets have been transported, stored, treated, recycled, disposed of or
released has been designated as a facility that is subject to a Claim under any
Environmental Laws.

     4.13 Employee Matters. At no time prior to the Effective Time will the Entities have
had any employees.

     4.14 Benefit Plan Liabilities. At no time prior to the Effective Time will the
Entities have maintained any Benefit Plans. At the Effective Time, the Entities shall have no
liability with respect to any Benefit Plans.

     4.15 No Foreign Person. HOLDINGS is not a “foreign person” as defined in Section 1445
of the Code and in any regulations promulgated thereunder.

     4.16 Capitalization of the Subject Interests.

     (a) The Subject Interests (i) constitute 25.1% of the outstanding ownership interests
in the JV, (ii) were duly authorized, validly issued, fully paid and non-assessable and
(iii) were not issued in violation of any pre-emptive rights.

     (b) HOLDINGS and GP, as applicable, has good and valid title to the Subject Interests
conveyed by each of them and, except as provided or created by its limited liability company
agreement or other organizational or governance documents, the Securities Act or applicable
securities Laws, the Subject Interests are free and clear of any (i) restrictions on
transfer, Taxes, Liens, Claims, or Proceedings or (ii) encumbrances, options, warrants,
purchase rights, contracts, commitments, equities or demands to the extent any of the same
contain or create any right to acquire all or any right in or to the Subject Interests.

     (c) There are no existing rights, agreements or commitments of any character obligating
the Entities to issue, transfer or sell any additional ownership rights or interests or any
other securities (debt, equity or otherwise) convertible into or exchangeable for

20

 

such ownership rights or interests or repurchase, redeem or otherwise acquire any such
interest.

     4.17 Subsidiaries and Other Equity Interests. As of Closing, the JV will not have any
Subsidiaries or own, directly or indirectly, any equity interest in any other Person except the
limited liability company interests listed on Schedule 4.17.

     4.18 Bank Accounts. Except as set forth on Schedule 4.18, FCV, DETG and ET
(and as of Closing, the JV), have no accounts or safe-deposit boxes with banks, trust companies,
savings and loan associations, or other financial institutions.

     4.19 [Reserved].

     4.20 Investment Intent. HOLDINGS and GP is acquiring the Units for its own account,
and not with a view to, or for sale in connection with, the distribution thereof in violation of
state or federal Law. HOLDINGS and GP acknowledges that the Units have not been registered under
the Securities Act or the securities Laws of any state and neither HOLDINGS nor GP has any
obligation or right to register the Units except as set forth in the Limited Partnership Agreement.
Without such registration, the Units may not be sold, pledged, hypothecated or otherwise
transferred unless it is determined that registration is not required. HOLDINGS, itself or through
its officers, employees or agents, has sufficient knowledge and experience in financial and
business matters to be capable of evaluating the merits and risks of an investment such as an
investment in the Units, and HOLDINGS, either alone or through its officers, employees or agents,
has evaluated the merits and risks of the investment in the Units.

     4.21 Financial Statements; Internal Controls; Undisclosed Liabilities. To HOLDINGS’
Knowledge:

     (a) Schedule 4.21 sets forth a true and complete copy of the [unaudited]
consolidated balance sheet as of December 31, 2008, and the unaudited consolidated statement
of changes in MLP’s equity, the unaudited consolidated statement of operations, and
unaudited consolidated statement of cash flow for the twelve months ended December 31, 2008;
and the audited consolidated balance sheet as of December 31, 2007, and the audited
consolidated statement of changes in MLP’s equity, the audited consolidated statement of
operations, and audited consolidated statement of cash flow for the twelve months ended
December 31, 2007 for the business of the JV (the “Annual Financial Statements”).
The Annual Financial Statements have been prepared in accordance with the requirements of
Regulation S-X adopted by the SEC.

     (b) There are no liabilities or obligations of the JV (whether known or unknown and
whether accrued, absolute, contingent or otherwise) and there are no facts or circumstances
that would reasonably be expected to result in any such liabilities or obligations, other
than (i) liabilities or obligations disclosed, reflected or reserved against in the Annual
Financial Statements, and (ii) current liabilities incurred in the Ordinary Course of
Business since December 31, 2008.

     4.22 No Other Representations or Warranties; Schedules. HOLDINGS makes no other
express or implied representation or warranty with respect to the Entities or any of their

21

 

respective Affiliates, the Assets or the transactions contemplated by this Agreement, and
disclaims any other representations or warranties. The disclosure of any matter or item in any
schedule to this Agreement shall not be deemed to constitute an acknowledgment that any such matter
is required to be disclosed.

ARTICLE V

REPRESENTATIONS AND WARRANTIES OF MLP

     MLP hereby represents and warrants to HOLDINGS:

     5.1 Organization, Good Standing, and Authorization. MLP is a limited partnership duly
formed, validly existing and in good standing under the Laws of the State of Delaware. MLP has all
requisite limited partnership power and authority to enter into and perform this Agreement and the
Transaction Documents to which it is a party, to perform its obligations hereunder and thereunder
and to carry out the transactions contemplated herein and therein. The execution and delivery of
this Agreement and the Transaction Documents to which it is a party and the consummation by MLP of
the transactions contemplated herein have been duly and validly authorized by all necessary limited
partnership action by MLP. This Agreement has been duly executed and delivered by MLP.

     5.2 Enforceability. This Agreement constitutes, and upon execution and delivery of
the Transaction Documents to which MLP is a party, such Transaction Documents will constitute,
valid and binding obligations of MLP, enforceable against MLP in accordance with their terms,
subject to applicable bankruptcy, insolvency, reorganization, moratorium and other similar Laws
affecting creditor’s rights generally and general principles of equity.

     5.3 No Conflicts. The execution, delivery and performance by MLP of this Agreement
and the Transaction Documents and the consummation of the transactions contemplated hereby or
thereby, will not:

     (a) provided that any MLP Required Consents and Post-Closing Consents have been
obtained, conflict with, constitute a breach, violation or termination of, give rise to any
right of termination, cancellation or acceleration of or result in the loss of any right or
benefit under, any agreement to which MLP is a party;

     (b) conflict with or violate the Limited Partnership Agreement or result in the
creation of a Lien on the Units; or

     (c) provided that all of the MLP Required Consents and Post Closing Consents have been
obtained, violate any Law applicable to MLP.

     5.4 Consents, Approvals, Authorizations and Governmental Regulations. Except (i) for
Post-Closing Consents, and (ii) as set forth in Schedule 5.4 and (iii) as may be required
under the HSR Act (the items described in clauses (ii) and (iii) being collectively referred to as
the “MLP Required Consents”), no order, consent, waiver, permission, authorization or
approval of, or exemption by, or the giving of notice to or registration or filing with, any Third
Person, is necessary for MLP to execute, deliver and perform this Agreement or the Transaction
Documents to which it will be a party.

22

 

     5.5 Litigation. There is no injunction, restraining order or Proceeding pending
against MLP that restrains or prohibits the consummation of the transactions contemplated by this
Agreement.

     5.6 Independent Investigation. MLP is knowledgeable in the business of owning and
operating natural gas and natural gas liquids facilities and has had access to the Assets, the
representatives of HOLDINGS and its Affiliates, and to the records of HOLDINGS and its Affiliates
with respect to the Assets. MLP ACKNOWLEDGES THAT THE ASSETS ARE IN THEIR “AS IS, WHERE IS”
CONDITION AND STATE OF REPAIR, AND WITH ALL FAULTS AND DEFECTS, AND THAT, EXCEPT AS EXPRESSLY SET
OUT IN THIS AGREEMENT, HOLDINGS HAS MADE NO REPRESENTATION OR WARRANTY OF ANY KIND OR NATURE,
EXPRESS, IMPLIED OR STATUTORY, INCLUDING, BUT NOT LIMITED TO, WARRANTIES OF MARKETABILITY, QUALITY,
CONDITION, CONFORMITY TO SAMPLES, MERCHANTABILITY, AND/OR FITNESS FOR A PARTICULAR PURPOSE, ALL OF
WHICH ARE EXPRESSLY DISCLAIMED BY HOLDINGS AND EXCEPT AS SET FORTH IN THIS AGREEMENT, WAIVED BY
MLP. MLP FURTHER ACKNOWLEDGES THAT: (I) THE ASSETS HAVE BEEN USED FOR NATURAL GAS AND NATURAL GAS
LIQUIDS OPERATIONS AND PHYSICAL CHANGES IN THE ASSETS AND IN THE LANDS BURDENED THEREBY MAY HAVE
OCCURRED AS A RESULT OF SUCH USES; (II) THE ASSETS MAY INCLUDE BURIED PIPELINES AND OTHER
EQUIPMENT, THE LOCATIONS OF WHICH MAY NOT BE KNOWN BY HOLDINGS OR READILY APPARENT BY A PHYSICAL
INSPECTION OF THE ASSETS OR THE LANDS BURDENED THEREBY; (III) MLP SHALL HAVE INSPECTED PRIOR TO
CLOSING, OR SHALL BE DEEMED TO HAVE WAIVED ITS RIGHTS TO INSPECT, THE ASSETS AND THE ASSOCIATED
PREMISES, AND SATISFIED ITSELF AS TO THEIR PHYSICAL AND ENVIRONMENTAL CONDITION, AND THAT MLP
SHALL, SUBJECT TO THE OTHER PROVISIONS OF THIS AGREEMENT, ACCEPT ALL OF THE SAME IN THEIR “AS IS,
WHERE IS” CONDITION AND STATE OF REPAIR, AND WITH ALL FAULTS AND DEFECTS, INCLUDING, BUT NOT
LIMITED TO, THE PRESENCE OF MAN-MADE MATERIAL FIBERS AND THE PRESENCE, RELEASE OR DISPOSAL OF
HAZARDOUS MATERIALS. EXCEPT AS EXPRESSLY SET OUT IN THIS AGREEMENT, HOLDINGS MAKES NO
REPRESENTATION OR WARRANTY, EXPRESS, IMPLIED OR STATUTORY, AS TO (A) THE ACCURACY OR COMPLETENESS
OF ANY DATA OR RECORDS DELIVERED TO MLP WITH RESPECT TO THE INTERESTS, INCLUDING, WITHOUT
LIMITATION, ANY DESCRIPTION OF THE INTERESTS, PRICING ASSUMPTIONS, QUALITY OR QUANTITY OF THE
INTERESTS, FREEDOM FROM PATENT OR TRADEMARK INFRINGEMENT OR (B) FUTURE VOLUMES OF HYDROCARBONS OR
OTHER PRODUCTS TRANSPORTED, TREATED, STORED OR PROCESSED THROUGH OR AT THE ASSETS. With respect to
any projection or forecast delivered by or on behalf of HOLDINGS or its Affiliates to MLP, MLP
acknowledges that (i) there are uncertainties inherent in attempting to make such projections and
forecasts, (ii) MLP is familiar with such uncertainties, (iii) MLP is taking full responsibility
for making its own evaluation of the adequacy and accuracy of all such projections and forecasts
furnished to MLP and (iv) MLP will not have a claim against HOLDINGS or any of its advisors or
Affiliates with respect to such projections or forecasts.

23

 

     5.7 Broker’s or Finder’s Fees. No investment banker, broker, finder or other Person
is entitled to any brokerage or finder’s fee or similar commission in respect thereof based in any
way on agreements, arrangements or understandings made by or on behalf of MLP or any of its
Affiliates which is, or following the Closing would be, an obligation of HOLDINGS or any of its
Affiliates.

     5.8 Investment Intent. MLP is acquiring the Subject Interests for its own account,
and not with a view to, or for sale in connection with, the distribution thereof in violation of
state or federal Law. MLP acknowledges that the Subject Interests have not been registered under
the Securities Act or the securities Laws of any state and neither HOLDINGS nor any of its
Affiliates has any obligation to register the Subject Interests. Without such registration, the
Subject Interests may not be sold, pledged, hypothecated or otherwise transferred unless it is
determined that registration is not required. MLP, itself or through its officers, employees or
agents, has sufficient knowledge and experience in financial and business matters to be capable of
evaluating the merits and risks of an investment such as an investment in the Subject Interests,
and MLP, either alone or through its officers, employees or agents, has evaluated the merits and
risks of the investment in the Subject Interests.

     5.9 Available Funds. MLP will have at Closing, sufficient cash to enable it to make
payment in immediately available funds of the cash amount specified in Section 2.2(ii) when due and
any other amounts to be paid by it hereunder.

ARTICLE VI

COVENANTS AND ACCESS

     6.1 Conduct of Business. HOLDINGS and MIDSTREAM each covenants and agrees that from
and after the execution of this Agreement and until the Closing:

     (a) Without the prior written consent of MLP, (i) HOLDINGS will not, and will not
permit the Entities to sell, transfer, assign, convey or otherwise dispose of any Assets
other than (A) the transfer of the Excluded Assets; (B) the sale of inventory in the
Ordinary Course of Business or (C) the sale or other disposition of equipment or other
Personal Property which is replaced with equipment or other Personal Property of
comparable or better value and utility; (ii) except for the existing Capital Projects,
modify in any respect the East Texas System that will require a capital expenditure in
excess of $1,000,000 (as to the 100% interest); (iii) make any adverse change in its
sales, credit or collection terms and conditions relating to the Assets; (iv) do any act
or omit to do any act which will cause a material breach in any Contract; or (v) unless
disputed in good faith, fail to pay when due all amounts owed under the Contracts;

     (b) HOLDINGS will not allow the Entities to create or permit the creation of any
Lien on any Asset other than Permitted Encumbrances;

     (c) If HOLDINGS becomes aware of any event or development that it reasonably
believes is likely to cause a material breach or default hereunder or to have a Material
Adverse Effect, it will give prompt written notice to MLP; and

     (d) HOLDINGS will and will cause the Entities to:

24

 

     (i) maintain and operate the Assets in the Ordinary Course of Business,
including regular scheduled maintenance plans and capital expenditures, and pay or
cause to be paid all costs and expenses in connection therewith when due;

     (ii) carry on its business in respect of the Assets in substantially the same
manner as it has heretofore;

     (iii) use reasonable efforts to preserve its business in respect of the Assets
intact, to keep available the services of the employees involved in the conduct of
such business and to preserve the goodwill of customers having business relations
with the applicable Entities in respect of the Assets, in each case, in all material
respects;

     (iv) not abandon any of the Assets or liquidate, dissolve, recapitalize or
otherwise wind up its business;

     (v) comply in all material respects with all of the rules, regulations and
orders of any Governmental Authority applicable to the Assets;

     (vi) timely file, properly and accurately make in all material respects all
reports and filings required to be filed with the appropriate Governmental
Authority; and

     (vii) pay all Taxes with respect to the Assets which come due and payable prior
to the Closing Date;

     (viii) not make, amend or revoke any material election with respect to Taxes;

     (ix) not amend its organizational documents;

     (x) not make any material change in any method of accounting or accounting
principles, practices or policies, other than those required by GAAP;

     (xi) not issue or sell any equity interests, notes, bonds or other securities
or incur, assume or guarantee any indebtedness for borrowed money, or any option,
warrant or right to acquire same;

     (xii) not (A) merge or consolidate with any Person; or (B) make any loan to any
Person (other than extensions of credit to customers in the Ordinary Course of
Business and inter-company loans under DCP Midstream, LLC’s cash management system);
and

     (xiii) maintain in full force and effect insurance policies covering the
Assets.

25

 

     (xiv) with respect to the Contracts, not enter into any financial derivatives
that would be Assumed Obligations unless the same are in compliance with MIDSTREAM’s
risk management guidelines.

     6.2 Casualty Loss.

     (a) HOLDINGS shall promptly notify MLP of any Casualty Loss of which HOLDINGS becomes
aware prior to the Closing. If a Casualty Loss, other than the East Texas Casualty Incident
(addressed in (c) below), occurs and such Casualty Loss would reasonably be expected to have
a Material Adverse Effect (a “Material Casualty Loss”), HOLDINGS shall have the
right to extend the Closing Date for up to forty-five (45) days for the purpose of repairing
or replacing the Assets destroyed or damaged by the Material Casualty Loss to the reasonable
satisfaction of MLP. If HOLDINGS does not repair or replace the Assets destroyed or damaged
by the Material Casualty Loss prior to the Closing to the reasonable satisfaction of MLP and
the Parties are unable to agree on a value to compensate MLP for the Material Casualty Loss,
MLP may terminate this Agreement upon fifteen (15) days written notice to HOLDINGS.

     (b) If this Agreement is not terminated by MLP as provided in subsection (a), MLP’s
sole remedy with respect to any Casualty Loss in respect of Assets which are not repaired or
replaced prior to the Closing to the reasonable satisfaction of MLP (but only to the extent
not reflected in Net Working Capital) is to accept a value estimated by HOLDINGS and agreed
to by MLP to be equal to 25.1% of the cost to repair or replace the Assets of any Entity
affected by the Casualty Loss, as applicable; provided that (A) if the Parties
cannot agree, then the Closing shall occur and either Party may submit the determination of
the costs of the Casualty Loss for resolution pursuant to Section 11.8; and (B) with
respect to any Casualty Loss, any insurance, condemnation or taking proceeds shall become
25.1% the sole property of HOLDINGS and GP, and 74.9% the sole property of the JV, to be
managed pursuant to the terms of the JV LLC Agreement, and each Party shall execute such
assignments, releases, resolutions or other documents as may be necessary to vest such
proceeds in the persons and percentages set forth above.

     (c) As to the East Texas Casualty Incident, HOLDINGS shall pay the costs and expenses
attributable to the Subject Interests as necessary to repair and replace the damaged
Facilities caused by the East Texas Casualty Incident prior to the Closing, to the
reasonable satisfaction of MLP. In consideration of HOLDINGS’ obligation to pay the costs
and expenses attributable to the Subject Interests to repair and replace the Facilities
damaged by the East Texas Casualty Incident, any and all insurance proceeds attributable to
the Subject Interests that may be payable to the JV, MLP or any of their Affiliates in
respect of any claims made regarding the East Texas Casualty Incident (including without
limitation, property loss policy proceeds and business interruption policy proceeds) shall
be the sole property of HOLDINGS, and each Party shall execute such assignments, releases,
resolutions or other documents as may be necessary to vest such proceeds in the persons and
percentages set forth above. HOLDINGS shall have the right to extend the Closing Date for
up to forty-five (45) days for the purpose of repairing or replacing the Facilities
destroyed or damaged by the East Texas Casualty Incident. If HOLDINGS does not repair or
replace the Assets destroyed or damaged by the East Texas Casualty

26

 

Incident prior to the Closing to the reasonable satisfaction of MLP, and the Parties are
unable to agree on a value to compensate MLP for the East Texas Casualty Incident’s effect
on the Subject Interests, then MLP may terminate this Agreement upon fifteen (15) days
written notice to HOLDINGS.

     6.3 Access, Information and Access Indemnity.

     (a) Prior to Closing, HOLDINGS will make available at HOLDINGS’ offices to MLP and
MLP’s authorized representatives for examination as MLP may reasonably request, all Records;
provided, however, such material shall not include (i) any proprietary data which relates to
another business of HOLDINGS or its Affiliates and is not primarily used in connection with
the continued ownership, use or operation of the Assets, (ii) any information subject to
Third Person confidentiality agreements for which a consent or waiver cannot be secured by
HOLDINGS or its Affiliates after reasonable efforts, or (iii) any information which, if
disclosed, would violate an attorney-client privilege or would constitute a waiver of rights
as to attorney work product or attorney-client privileged communications.

     (b) Subject to subsection (a) above, HOLDINGS shall permit MLP and MLP’s
authorized representatives to consult with employees of HOLDINGS and its Affiliates during
the business hours of 8:00 a.m. to 5:00 p.m. (local time), Monday through Friday and to
conduct, at MLP’s sole risk and expense, inspections and inventories of the Assets and to
examine all Records over which HOLDINGS and its Affiliates have control. HOLDINGS shall
also coordinate, in advance, with MLP to allow site visits and inspections at the field
sites on Saturdays unless operational conditions would reasonably prohibit such access.

     (c) MLP SHALL PROTECT, DEFEND, INDEMNIFY AND HOLD THE HOLDINGS’ INDEMNITEES HARMLESS
FROM AND AGAINST ANY AND ALL CLAIMS AND LOSSES OCCURRING ON OR TO THE ASSETS CAUSED BY THE
ACTS OR OMISSIONS OF MLP, MLP’S AFFILIATES OR ANY PERSON ACTING ON MLP’S OR ITS AFFILIATES’
BEHALF IN CONNECTION WITH ANY DUE DILIGENCE CONDUCTED PURSUANT TO OR IN CONNECTION WITH THIS
AGREEMENT PRIOR TO CLOSING, INCLUDING ANY SITE VISITS AND ENVIRONMENTAL SAMPLING; PROVIDED,
HOWEVER, THE FOREGOING OBLIGATION OF MLP SHALL NOT APPLY WITH RESPECT TO ANY ENVIRONMENTAL
CONDITIONS TO THE EXTENT EXISTING PRIOR TO THE CONDUCT OF SUCH DUE DILIGENCE WHICH ARE
DISCOVERED DURING SUCH DUE DILIGENCE. MLP shall comply in all material respects with all
rules, regulations, policies and instructions issued by HOLDINGS, GP or any Third Person
operator regarding MLP’s actions prior to Closing while upon, entering or leaving any
property included in the Assets, including any insurance requirements that HOLDINGS may
impose on contractors authorized to perform work on any property owned or operated by
HOLDINGS.

     6.4 Regulatory Filings; Hart-Scott-Rodino Filing.

27

 

     (a) MLP and HOLDINGS will take all commercially reasonable actions necessary or
desirable, and proceed diligently and in good faith and use all commercially reasonable
efforts, as promptly as practicable to obtain all consents, approvals or actions of, to make
all filings with, and to give all notices to, Governmental Authorities required to
accomplish the transactions contemplated by this Agreement; provided, however, that the cost
to obtain Post-Closing Consents shall be borne by MLP.

     (b) The Parties shall make any filings required under the HSR Act on or prior to five
(5) days after the date of this Agreement and provide such information to the FTC as is
required in connection with the HSR Act as soon as practicable after a request therefore.

     (c) Notwithstanding any provision herein to the contrary, each of the Parties will (i)
use reasonable efforts to comply as expeditiously as possible with all lawful requests of
Governmental Authorities for additional information and documents pursuant to the HSR Act,
(ii) not (A) extend any waiting period under the HSR Act or (B) enter into any voluntary
agreement with any Governmental Authority not to consummate the transactions contemplated by
this Agreement, except with the prior consent of the other Party, and (iii) cooperate with
each other and use reasonable efforts to obtain the requisite approval of the FTC and DOJ;
provided, however, that the Parties are not obligated to accept any conditional approval or
divest any of the Assets or any of their properties.

     (d) MLP will be responsible for paying the filing fees required with respect to any
filing under the HSR Act.

     6.5 Limitation on Casualty Losses and Other Matters. Notwithstanding any provision
herein to the contrary, if either HOLDINGS or MLP reasonably determines that the anticipated
aggregate value of any Casualty Losses and a good faith estimate of HOLDINGS’ liability with
respect to breaches of representations and warranties of which either HOLDINGS or MLP has provided
notice to the other prior to Closing, exceeds $2,500,000, then such Party shall provide written
notice to the other of such determination together with the notifying Party’s calculations of the
estimated costs, payments, reductions and liabilities supporting such determination.
Notwithstanding Section 9.1(c), upon the other Party’s receipt of such notice, the Party
receiving the notice shall have the right to terminate this Agreement at any time prior to Closing
upon ten (10) days written notice to the other Party.

     6.6 Supplements to Exhibits and Schedules. HOLDINGS may, from time to time, by
written notice to MLP at any time prior to the Closing Date, supplement or amend the Exhibits and
Schedules to correct any matter that would constitute a breach of any representation or warranty of
HOLDINGS herein contained. MLP shall have a minimum of five (5) Business Days to review such
supplement or amendment and the Closing shall be extended as required to allow MLP to do so;
provided, however, if MLP reasonably determines that any individual new disclosure item set forth
in any such supplement or amendment would increase the amount of the Assumed Obligations by more
than $50,000, then MLP shall notify HOLDINGS of such determination together with MLP’s calculations
of such increase in the amount of the Assumed Obligations. Promptly upon HOLDINGS’ receipt of such
written notice, the Parties shall endeavor in good faith to agree to a value to be paid by HOLDINGS
to MLP therefor or other

28

 

mutually agreeable remedy to address the matters which are the subject of such supplement(s)
and amendment(s) to the Exhibits and Schedules. If within fifteen (15) days of HOLDINGS’ receipt
of such written notice, the Parties have not agreed to a value to be paid by HOLDINGS to MLP
therefore or another mutually agreeable remedy, MLP shall have the right to terminate this
Agreement at any time during the five (5) Business Days following the expiration of such fifteen
(15) day period by provision of written notice to HOLDINGS. Notwithstanding any other provision
hereof, if the Closing occurs, any such supplement or amendment will be effective to cure and
correct for all purposes any breach of any representation or warranty that would have existed if
such supplement or amendment had not been made.

     6.7 Preservation of Records. For a period of seven (7) years after the Closing Date,
the Party in possession of the originals of the Records will retain such Records at its sole cost
and expense and will make such Records available to the other Party to the extent pertaining to
such other Parties’ obligations hereunder upon reasonable notice for inspection and/or copying, at
the expense of the requesting Party, at the headquarters of the Party in possession (or at such
other location in the United States as the Party in possession may designate in writing to the
other Party) at reasonable times and during regular office hours. MLP agrees that HOLDINGS may
retain a copy of the Records to the extent such Records pertain to its obligations hereunder.

     6.8 [Reserved]

     6.9 Capital Projects.

     (a) One or more of the Entities is undertaking the ongoing construction of the
natural gas gathering systems, inlet liquid handling facilities, and flare systems
described by open AFE on Schedule 6.9 (the “Capital Projects”). HOLDINGS
or its Affiliates shall continue to pursue the construction, on the JV’s behalf, of the
Capital Projects through the Effective Time, and, from and after the Effective Time until
the third anniversary thereof, HOLDINGS will reimburse the JV on a monthly basis solely
for those costs and expenses incurred by the JV to complete the Capital Projects that are
attributable to the Subject Interests.

     (b) Notwithstanding anything to the contrary set forth in this Agreement, any other
capital expenditures for projects or maintenance capital (but excluding capital
expenditures related to the Capital Projects or Casualty Losses (collectively, the
“New Capital Projects”) incurred between the Execution Date and Closing and
attributable to the Subject Interests shall be reimbursed by MLP to HOLDINGS as provided
in Section 2.2.

     (c) Upon Closing, HOLDINGS’ and its Affiliates’ obligations for the payment or
reimbursement of costs and expenses with respect to the East Texas Inlet Liquid Handling
Facilities (as such obligations are outlined in Section 6.9 of the Prior Contribution
Agreement) shall terminate and be deemed fully satisfied, completed, and superseded, and
neither HOLDINGS nor the MLP shall have any further obligation, duty or responsibility to
make any payment or perform any duty, obligation or action under Section 6.9(c) of the
Prior Contribution Agreement from and after the Closing.

29

 

     6.10 [Reserved]

     6.11 Tax Covenants; Preparation of Tax Returns. The MLP shall cause the JV to
prepare and file, or cause to be prepared and filed, all Tax Returns required to be filed by the
Entities and also shall cause the JV to cause the Entities to pay the Taxes shown to be due
thereon; provided, however, that MIDSTREAM shall promptly reimburse the MLP for the portion of such
Tax attributable to the Subject Interests that relates to a Pre-Closing Tax Period, to the extent
not accrued in the Final Settlement Statement. MIDSTREAM shall furnish to the MLP all information
and records reasonably requested by the MLP for use in preparation of any Tax Returns. The Parties
shall cause the MLP to allow MIDSTREAM to review, comment upon and reasonably approve without undue
delay any Tax Return at any time during the twenty (20) day period immediately preceding the filing
of such Tax Return.

     6.12 Financial Statements and Financial Records. HOLDINGS shall consent to the
inclusion or incorporation by reference of the Annual Financial Statements in any registration
statement, report or other document of MLP or any of its Affiliates to be filed with the SEC in
which MLP or such Affiliate reasonably determines that the SEC Financial Statements are required to
be included or incorporated by reference to satisfy any rule or regulation of the SEC or to satisfy
relevant disclosure obligations under the Securities Act of 1933, as amended, or the Securities
Exchange Act of 1934, as amended. HOLDINGS shall cause its auditors to consent to the inclusion or
incorporation by reference of its audit opinion with respect to the Annual Financial Statements in
any such registration statement, report or other document and, in connection therewith, HOLDINGS
shall execute and deliver to its auditors such representation letters, in form and substance
customary for representation letters provided to external audit firms by management of the company
whose financial statements are the subject of an audit, as may be reasonably requested by its
auditors.

ARTICLE VII

CONDITIONS TO CLOSING

     7.1 HOLDINGS’/GP’s Conditions. The obligation of HOLDINGS and GP to close is subject
to the satisfaction of the following conditions, any of which may be waived in HOLDINGS’ sole
discretion:

     (a) The representations of MLP contained in Article V shall be true, in all
material respects (or, in the case of representations or warranties that are already
qualified by a materiality standard, shall be true in all respects) on and as of Closing.

     (b) MLP shall have performed in all material respects the obligations, covenants and
agreements of MLP contained herein.

     (c) There is no injunction, restraining order or Proceeding pending against HOLDINGS or
the Entities that restrains or prohibits the consummation of the transactions contemplated
by this Agreement.

     (d) All of HOLDINGS’ Required Consents, MLP’s Required Consents, consents under the
Real Property Interests, Contracts and Permits and consents or

30

 

approvals under the HSR Act (or expiration of the waiting period) shall have been
obtained.

     (e) MLP shall have made all deliveries in accordance with Section 8.2(b).

     7.2 MLP’s Conditions. The obligation of MLP to close is subject to the satisfaction
of the following conditions, any of which may be waived in its sole discretion:

     (a) The representations of HOLDINGS contained in Article IV shall be true, in
all material respects (or in the case of representations or warranties that are already
qualified by a materiality standard, shall be true in all respects) on and as of the
Closing.

     (b) HOLDINGS shall have performed, in all material respects, the obligations, covenants
and agreements of HOLDINGS contained herein.

     (c) There is no injunction, restraining order or Proceeding pending against HOLDINGS or
the Entities that restrains or prohibits the consummation of the transactions contemplated
by this Agreement.

     (d) All of HOLDINGS’ Required Consents, MLP’s Required Consents, consents under the
Real Property Interests, Contracts and Permits and consents or approvals under the HSR Act
(or expiration of the waiting period) shall have been obtained.

     (e) There shall have been no events or occurrences that could reasonably be expected to
have a Material Adverse Effect.

     (f) HOLDINGS shall have delivered all documents in accordance with Section
8.2(a).

     (g) MLP shall have received audited financial statements for the JV for the year ended
December 31, 2008, that are satisfactory to MLP in its sole discretion.

     7.3 Exceptions. Notwithstanding the provisions of Sections 7.1(a) and
(b) and 7.2(a) and (b), no Party shall have the right to refuse to close
the transaction contemplated hereby by reason of this Article VII unless (a) in the case of
HOLDINGS and GP , the sum of all representations of MLP contained in Article V which are
not true and all obligations, covenants and agreements which MLP has failed to perform, would
reasonably be expected to have a Material Adverse Effect, and (b) in the case of MLP, the sum of
all representations of HOLDINGS and GP contained in Article IV which are not true and all
obligations, covenants and agreements which HOLDINGS and GP has failed to perform, would reasonably
be expected to have a Material Adverse Effect.

ARTICLE VIII

CLOSING

     8.1 Time and Place of Closing. The consummation of the transactions contemplated by
this Agreement (the “Closing”) shall take place in the offices of MIDSTREAM in Denver,

31

 

Colorado at (a) a pre-closing at 9:00 a.m. on March 31, 2009 (at which the Transaction
Documents and Officer’s Certificates will be executed) and (b) a final closing at 9:00 a.m. Denver
time on April 1, 2009 (unless such date is otherwise extended by either HOLDINGS or MLP as
permitted hereunder); or on the last day of the month following the receipt of the consents
required by Sections 7.1(d) and 7.2(d) (if later than the foregoing specified date
of Closing), or such other time and place as the Parties agree to in writing (the “Closing
Date”), and shall be effective as of the Effective Time.

     8.2 Deliveries at Closing. At the Closing,

     (a) HOLDINGS and GP, as applicable, will execute and deliver or cause to be executed
and delivered to MLP:

     (i) Each of the Transaction Documents to which HOLDINGS, GP or Affiliates are a
party;

     (ii) Certificates of a corporate officer or other authorized person dated the
Closing Date, certifying on behalf of HOLDINGS and GP that the conditions in
Sections 7.2(a) and (b) have been fulfilled.

     (b) MLP will execute and deliver or cause to be executed and delivered to HOLDINGS and
GP:

     (i) Each of the Transaction Documents to which MLP or MLP’s Affiliates are a
party;

     (ii) A certificate of a corporate officer or other authorized person dated the
Closing Date certifying on behalf of MLP that the conditions in Sections
7.1(a) and (b) have been fulfilled;

     (iii) Certificates for Class D Units, determined in accordance with
Sections 2.2 and 2.3;

     (iv) A wire transfer to HOLDINGS and GP of the amounts due with respect to the
Total Net Working Capital and New Capital Projects (as set forth in the Preliminary
Settlement Statement).

ARTICLE IX

TERMINATION

     9.1 Termination. This Agreement may be terminated and the transactions contemplated
hereby abandoned as follows:

     (a) HOLDINGS and MLP may elect to terminate this Agreement at any time prior to the
Closing by mutual written consent thereof;

     (b) Either HOLDINGS or MLP by written notice to the other may terminate this Agreement
if the Closing shall not have occurred on or before June 1, 2009;

32

 

provided, however, that neither Party may terminate this Agreement if such Party is at
such time in material breach of any provision of this Agreement;

     (c) HOLDINGS and MLP may each terminate this Agreement at any time on or prior to the
Closing if either MLP, on the one hand, or HOLDINGS, on the other hand, shall have
materially breached any representations, warranties or covenants thereof herein contained
with the sum of such breach or breaches reasonably expected to have a Material Adverse
Effect and the same is not cured within thirty (30) days after receipt of written notice
thereof from the applicable non-breaching Party; provided, however, that neither Party may
terminate this Agreement if such Party is at such time in material breach of any
representations, warranties or covenants of such Party; and

     (d) In addition to the foregoing, any Party may terminate this Agreement to the extent
such termination is expressly authorized by another provision of this Agreement.

     9.2 Effect of Termination Prior to Closing. If Closing does not occur as a result of
any Party exercising its right to terminate pursuant to Section 9.1, then no Party shall
have any further rights or obligations under this Agreement, except that (i) nothing herein shall
relieve any Party from any liability for any willful breach of this Agreement, and (ii) the
provisions of Section 6.3(c) and Article XI shall survive any termination of this
Agreement.

ARTICLE X

INDEMNIFICATION

     10.1 Indemnification by MLP. Effective upon Closing, MLP shall defend, indemnify and
hold harmless HOLDINGS and its Affiliates, and all of its and their directors, officers, employees,
partners, members, contractors, agents, and representatives (collectively, the “HOLDINGS
Indemnitees”) from and against any and all Losses asserted against, resulting from, imposed
upon or incurred by any of the HOLDINGS Indemnitees as a result of or arising out of:

     (a) the breach of any of the representations or warranties under Article V;

     (b) the breach of any covenants or agreements of MLP contained in this Agreement; and

     (c) to the extent that HOLDINGS is not required to indemnify any of the MLP Indemnitees
pursuant to Section 10.2, the Assumed Obligations.

     10.2 Indemnification by HOLDINGS. Effective upon Closing, HOLDINGS shall defend,
indemnify and hold harmless MLP and its Affiliates, and all of its and their directors, officers,
employees, partners, members, contractors, agents, and representatives (collectively, the “MLP
Indemnitees”) from and against any and all Losses asserted against, resulting from, imposed
upon or incurred by any of the MLP Indemnitees as a result of or arising out of:

     (a) the breach of any of the representations or warranties under Article IV
(other than Sections 4.1, 4.2, 4.16 and 4.17),

33

 

     (b) subject to Section 6.9, to the extent not accounted for in the Final
Settlement Statement, Claims asserted within one (1) year after Closing to the extent
related to underpayment of trade payables for periods prior to the Effective Time;

     (c) with respect to the Former UP Fuels Properties, Claims by Governmental Authorities
asserted within two (2) years after Closing to the extent related to fines and penalties for
periods between April 1, 1999 and Closing;

     (d) with respect to the Former Gulf South Properties, Claims by Governmental
Authorities asserted within two (2) years after Closing to the extent related to fines and
penalties for periods between March 31, 2005 and Closing;

     (e) to the extent and subject to any limitations provided therein, any matters set
forth on Schedule 10.2(e);

     (f) the breach of any of the representations or warranties under Sections 4.1,
4.2, 4.16 and 4.17 or the covenants or agreements of HOLDINGS
contained in this Agreement; and

     (g) any Reserved Liabilities.

     10.3 Deductibles, Caps, Survival and Certain Limitations.

     (a) Subject to this Section 10.3, all representations, warranties, covenants
and indemnities made by the Parties in this Agreement or pursuant hereto shall survive the
Closing as hereinafter provided, and shall not be merged into any instruments or agreements
delivered at Closing.

     (b) With respect to the obligations of HOLDINGS:

     (i) under Sections 10.2(a) or (b), none of the MLP Indemnitees
shall be entitled to assert any right to indemnification after one (1) year from the
Closing;

     (ii) under Section 10.2(c) or (d), none of the MLP Indemnitees
shall be entitled to assert any right to indemnification after two (2) years from
the Closing;

     (iii) under Section 10.2(a), none of the MLP Indemnitees shall be
entitled to assert any right to indemnification unless the individual claim or
series of related claims which arise out of substantially the same facts and
circumstances exceeds $50,000 (“Qualified Claims”);

     (iv) under Section 10.2(a), none of the MLP Indemnitees shall be
entitled to assert any right to indemnification unless Qualified Claims for which
indemnity is only provided under Section 10.2(a) shall in the aggregate
exceed $450,000 and then only to the extent that all such Qualified Claims exceed
said amount;

34

 

     (v) under Section 10.2(a), none of the MLP Indemnitees shall be
entitled to indemnification for any amount in excess of $4,500,000; and

     (vi) Any indemnification or payment obligations of HOLDINGS under
Section 10.2 resulting from HOLDINGS’ breach of its representations,
warranties, covenants or agreements, shall be limited to Losses that are
attributable to the Subject Interests or to the transactions pursuant to which MLP
acquires the Subject Interests under this Agreement, and MLP shall have no right to
assert any claim under this Agreement related to the 25% member interest in the JV
that was acquired under the Prior Contribution Agreement. Notwithstanding the
foregoing, the indemnification rights of MLP and any MLP Indemnitee under the Prior
Contribution Agreement shall not be terminated or impaired by any provision this
Agreement, including, without limitation, MLP’s or any MLP Indemnitee’s right to be
indemnified for HOLDINGS’ breach of any representation, warranty, covenant or
agreement under the Prior Contribution Agreement.

     (c) Any claim for indemnity under this Agreement made by a Party Indemnitee shall be in
writing, be delivered in good faith prior to the expiration of the respective survival
period under Section 10.3(b) (to the extent applicable), and specify in reasonable
detail the specific nature of the claim for indemnification hereunder (“Claim
Notice”). Any such claim that is described in a timely (if applicable) delivered Claim
Notice shall survive with respect to the specific matter described therein.

     (d) Notwithstanding anything contained herein to the contrary, in no event shall
HOLDINGS be obligated under this Agreement to indemnify (or be otherwise liable hereunder in
any way whatsoever to) any of the MLP Indemnitees with respect to a breach of any
representation or warranty, if MLP had Knowledge thereof at Closing and failed to notify
HOLDINGS of such breach prior to Closing. Unless HOLDINGS or a Third Person shall have made
a claim or demand or it appears reasonably likely that such a claim or demand appears
reasonably likely, MLP shall not take any voluntary action that is intended by MLP to cause
a Claim to be initiated that would be subject to indemnification by HOLDINGS.

     (e) All Losses indemnified hereunder shall be determined net of any (i) Third Person
Awards, (ii) Tax Benefits; and (iii) amount which specifically pertains to such Loss and is
reflected in the calculations of the amounts set forth on the Final Settlement Statement.

     10.4 Notice of Asserted Liability; Opportunity to Defend.

     (a) All claims for indemnification hereunder shall be subject to the provisions of this
Section 10.4. Any person claiming indemnification hereunder is referred to herein
as the “Indemnified Party” or “Indemnitee” and any person against whom such claims are
asserted hereunder is referred to herein as the “Indemnifying Party” or “Indemnitor.”

35

 

     (b) If any Claim is asserted against or any Loss is sought to be collected from an
Indemnified Party, the Indemnified Party shall with reasonable promptness provide to the
Indemnifying Party a Claim Notice. The failure to give any such Claim Notice shall not
otherwise affect the rights of the Indemnified Party to indemnification hereunder unless the
Indemnified Party has proceeded to contest, defend or settle such Claim or remedy such a
Loss with respect to which it has failed to give a Claim Notice to the Indemnifying Party,
but only to the extent the Indemnifying Party is prejudiced thereby. Additionally, to the
extent the Indemnifying Party is prejudiced thereby, the failure to provide a Claim Notice
to the Indemnifying Party shall relieve the Indemnifying Party from liability for such
Claims and Losses that it may have to the Indemnified Party, but only to the extent the
liability for such Claims or Losses is directly attributable to such failure to provide the
Claim Notice.

     (c) The Indemnifying Party shall have thirty (30) days from the personal delivery or
receipt of the Claim Notice (the “Notice Period”) to notify the Indemnified Party
(i) whether or not it disputes the liability to the Indemnified Party hereunder with respect
to the Claim or Loss, and in the event of a dispute, such dispute shall be resolved in the
manner set forth in Section 11.8 hereof, (ii) in the case where Losses are asserted
against or sought to be collected from an Indemnifying Party by the Indemnified Party,
whether or not the Indemnifying Party shall at its own sole cost and expense remedy such
Losses or (iii) in the case where Claims are asserted against or sought to be collected from
an Indemnified Party, whether or not the Indemnifying Party shall at its own sole cost and
expense defend the Indemnified Party against such Claim; provided however, that any
Indemnified Party is hereby authorized prior to and during the Notice Period to file any
motion, answer or other pleading that it shall deem necessary or appropriate to protect its
interests or those of the Indemnifying Party (and of which it shall have given notice and
opportunity to comment to the Indemnifying Party) and not prejudicial to the Indemnifying
Party.

     (d) If the Indemnifying Party does not give notice to the Indemnified Party of its
election to contest and defend any such Claim described in Section 10.4(c)(iii)
within the Notice Period, then the Indemnifying Party shall be bound by the result obtained
with respect thereto by the Indemnified Party and shall be responsible for all costs
incurred in connection therewith.

     (e) If the Indemnifying Party is obligated to defend and indemnify the Indemnified
Party, and the Parties have a conflict of interest with respect to any such Claim, then the
Indemnified Party may, in its sole discretion, separately and independently contest and
defend such Claim, and the Indemnifying Party shall be bound by the result obtained with
respect thereto by the Indemnified Party and shall be responsible for all costs incurred in
connection therewith.

     (f) If the Indemnifying Party notifies the Indemnified Party within the Notice Period
that it shall defend the Indemnified Party against a Claim, the Indemnifying Party shall
have the right to defend all appropriate Proceedings, and with counsel of its own choosing
(but reasonably satisfactory to the Indemnified Party) and such Proceedings shall be
promptly settled (subject to obtaining a full and complete release of all

36

 

Indemnified Parties) or prosecuted by it to a final conclusion. If the Indemnified
Party desires to participate in, but not control, any such defense or settlement it may do
so at its sole cost and expense. If the Indemnified Party joins in any such Claim, the
Indemnifying Party shall have full authority to determine all action to be taken with
respect thereto, as long as such action could not create a liability to any of the
Indemnified Parties, in which case, such action would require the prior written consent of
any Indemnified Party so affected.

     (g) If requested by the Indemnifying Party, the Indemnified Party agrees to cooperate
with the Indemnifying Party and its counsel in contesting any Claim and in making any
counterclaim against the Third Person asserting the Claim, or any cross-complaint against
any person as long as such cooperation, counterclaim or cross-complaint could not create a
liability to any of the Indemnified Parties.

     (h) At any time after the commencement of defense by Indemnifying Party under
Section 10.4(f) above of any Claim, the Indemnifying Party may request the
Indemnified Party to agree in writing to the abandonment of such contest or to the payment
or compromise by the Indemnifying Party of the asserted Claim, but only if the Indemnifying
Party agrees in writing to be solely liable for such Claim; whereupon such action shall be
taken unless the Indemnified Party determines that the contest should be continued and
notifies the Indemnifying Party in writing within fifteen (15) days of such request from the
Indemnifying Party. If the Indemnified Party determines that the contest should be
continued, the amount for which the Indemnifying Party would otherwise be liable hereunder
shall not exceed the amount which the Indemnifying Party had agreed to pay to compromise
such Claim; provided that, the other Person to the contested Claim had agreed in writing to
accept such amount in payment or compromise of the Claim as of the time the Indemnifying
Party made its request therefor to the Indemnified Party, and further provided that, under
such proposed compromise, the Indemnified Party would be fully and completely released from
any further liability or obligation with respect to the matters which are the subject of
such contested Claim.

     10.5 Materiality Conditions. For purposes of determining whether an event described
in this Article X has occurred for which indemnification under this Article X can
be sought, any requirement in any representation, warranty, covenant or agreement by HOLDINGS or
MLP, as applicable, contained in this Agreement that an event or fact be “material,” “Material,”
meet a certain minimum dollar threshold or have a “Material Adverse Effect” or a material adverse
effect (each a “Materiality Condition”) in order for such event or fact to constitute a
misrepresentation or breach of such representation, warranty, covenant or agreement under this
Agreement, such Materiality Condition shall be disregarded and such representations, warranties,
covenants or agreements shall be construed solely for purposes of this Article X as if they
did not contain such Materiality Conditions. Notwithstanding anything in this Section
10.5, any claim for indemnification under this Article X will be subject to Section
10.3.

     10.6 Exclusive Remedy. AS BETWEEN THE MLP INDEMNITEES AND THE HOLDINGS INDEMNITEES,
AFTER CLOSING (A) THE EXPRESS INDEMNIFICATION PROVISIONS SET FORTH IN THIS AGREEMENT, WILL BE THE
SOLE AND EXCLUSIVE RIGHTS, OBLIGATIONS AND REMEDIES OF THE PARTIES WITH

37

 

RESPECT TO SAID AGREEMENT AND THE EVENTS GIVING RISE THERETO, AND THE TRANSACTIONS PROVIDED
FOR THEREIN OR CONTEMPLATED THEREBY (OTHER THAN THE OTHER TRANSACTION DOCUMENTS) AND (B) NO PARTY
HERETO NOR ANY OF ITS RESPECTIVE SUCCESSORS OR ASSIGNS SHALL HAVE ANY RIGHTS AGAINST ANY OTHER
PARTY OR ITS AFFILIATES WITH RESPECT TO THE TRANSACTIONS PROVIDED FOR HEREIN OTHER THAN AS IS
EXPRESSLY PROVIDED IN THIS AGREEMENT AND THE OTHER TRANSACTION DOCUMENTS.

     10.7 Negligence and Strict Liability Waiver. WITHOUT LIMITING OR ENLARGING THE SCOPE
OF THE INDEMNIFICATION OBLIGATIONS SET FORTH IN THIS AGREEMENT, AN INDEMNIFIED PARTY SHALL BE
ENTITLED TO INDEMNIFICATION UNDER THIS AGREEMENT IN ACCORDANCE WITH THE TERMS HEREOF, REGARDLESS OF
WHETHER THE LOSS OR CLAIM GIVING RISE TO SUCH INDEMNIFICATION OBLIGATION IS THE RESULT OF THE SOLE,
CONCURRENT OR COMPARATIVE NEGLIGENCE, STRICT LIABILITY, OR VIOLATION OF ANY LAW OF OR BY SUCH
INDEMNIFIED PARTY.

     10.8 Limitation on Damages. NOTWITHSTANDING ANYTHING TO THE CONTRARY IN THIS
AGREEMENT, IN NO EVENT SHALL ANY OF HOLDINGS, GP OR MLP BE LIABLE TO THE OTHER, OR TO THE OTHERS’
INDEMNITEES, UNDER THIS AGREEMENT FOR ANY EXEMPLARY, PUNITIVE, REMOTE, SPECULATIVE, CONSEQUENTIAL,
SPECIAL OR INCIDENTAL DAMAGES OR LOSS OF PROFITS; PROVIDED THAT, IF ANY OF THE HOLDINGS INDEMNITEES
OR MLP INDEMNITEES IS HELD LIABLE TO A THIRD PERSON FOR ANY SUCH DAMAGES AND THE INDEMNITOR IS
OBLIGATED TO INDEMNIFY SUCH HOLDINGS INDEMNITEES OR MLP INDEMNITEES FOR THE MATTER THAT GAVE RISE
TO SUCH DAMAGES, THE INDEMNITOR SHALL BE LIABLE FOR, AND OBLIGATED TO REIMBURSE SUCH INDEMNITEES
FOR SUCH DAMAGES.

     10.9 Bold and/or Capitalized Letters. THE PARTIES AGREE THAT THE BOLD AND/OR
CAPITALIZED LETTERS IN THIS AGREEMENT CONSTITUTE CONSPICUOUS LEGENDS.

ARTICLE XI

MISCELLANEOUS PROVISIONS

     11.1 Expenses. Unless otherwise specifically provided for herein, each Party will
bear its own costs and expenses (including legal fees and expenses) incurred in connection with the
negotiation of this Agreement and the transactions contemplated hereby; provided that HOLDINGS will
bear the cost of all Post-Closing Consents which must be obtained from any railroad.

     11.2 Further Assurances. From time to time, and without further consideration, each
Party will execute and deliver to the other Party such documents and take such actions as the other
Party may reasonably request in order to more effectively implement and carry into effect the
transactions contemplated by this Agreement.

38

 

     11.3 Transfer Taxes. The Parties believe that the contribution of the Subject
Interests as provided for herein is exempt from or is otherwise not subject to any and all sales,
use, transfer, or similar Taxes. If any such sales, transfer, use or similar Taxes are due or
should hereafter become due (including penalty and interest thereon) by reason of this transaction,
MLP shall timely pay and solely bear all such type of Taxes.

     11.4 Assignment. Neither Party may assign this Agreement or any of its rights or
obligations arising hereunder without the prior written consent of the other Party; provided,
however, MLP shall be permitted to assign this Agreement to an Affiliate prior to Closing,
provided, that, notwithstanding such assignment, MLP shall continue to remain responsible for all
obligations of MLP hereunder following such assignment.

     11.5 Entire Agreement, No Amendment of Prior Transaction Agreement, Amendments and
Waiver. This Agreement, together with the Transaction Documents and all certificates,
documents, instruments and writings that are delivered pursuant hereto and thereto contain the
entire understanding of the Parties with respect to the transactions contemplated hereby and
supersede all prior agreements, arrangements and understandings relating to the subject matter
hereof. Except as specified in Section 6.9, no term, provision or aspect of this Agreement
or of any other Transaction Document shall have the effect of terminating, amending, extending, or
enlarging or limiting the scope or intent, or of in any manner superseding the Prior Contribution
Agreement or the transactions documents executed in connection therewith. This Agreement may be
amended, superseded or canceled only by a written instrument duly executed by the Parties
specifically stating that it amends, supersedes or cancels this Agreement. Any of the terms of
this Agreement and any condition to a Party’s obligations hereunder may be waived only in writing
by that Party specifically stating that it waives a term or condition hereof. No waiver by either
Party of any one or more conditions or defaults by the other in performance of any of the
provisions of this Agreement shall operate or be construed as a waiver of any future conditions or
defaults, whether of a like or different character, nor shall the waiver constitute a continuing
waiver unless otherwise expressly provided.

     11.6 Severability. Each portion of this Agreement is intended to be severable. If
any term or provision hereof is illegal or invalid for any reason whatsoever, such illegality or
invalidity shall not affect the validity of the remainder of this Agreement.

     11.7 Counterparts. This Agreement may be executed simultaneously in any number of
counterparts, each of which shall be deemed an original, but all of which together shall constitute
one and the same instrument.

     11.8 Governing Law, Dispute Resolution and Arbitration.

     (a) Governing Law. This Agreement shall be governed by, enforced in accordance
with, and interpreted under, the Laws of the State of Colorado, without reference to
conflicts of Laws principles.

     (b) Negotiation. In the event of any Arbitral Dispute, the Parties shall
promptly seek to resolve any such Arbitral Dispute by negotiations between senior executives
of the Parties who have authority to settle the Arbitral Dispute. When a Party

39

 

believes there is an Arbitral Dispute under this Agreement that Party will give the
other Party written notice of the Arbitral Dispute. Within thirty (30) days after receipt
of such notice, the receiving Party shall submit to the other a written response. Both the
notice and response shall include (i) a statement of each Party’s position and a summary of
the evidence and arguments supporting such position, and (ii) the name, title, fax number,
and telephone number of the executive or executives who will represent that Party. If the
Arbitral Dispute involves a claim arising out of the actions of any Person not a signatory
to this Agreement, the receiving Party shall have such additional time as necessary, not to
exceed an additional thirty (30) days, to investigate the Arbitral Dispute before submitting
a written response. The executives shall meet at a mutually acceptable time and place
within fifteen (15) days after the date of the response and thereafter as often as they
reasonably deem necessary to exchange relevant information and to attempt to resolve the
Arbitral Dispute. If one of the executives intends to be accompanied at a meeting by an
attorney, the other executive shall be given at least five (5) Business Days’ notice of such
intention and may also be accompanied by an attorney.

     (c) Failure to Resolve. If the Arbitral Dispute has not been resolved within
sixty (60) days after the date of the response given pursuant to Section 11.8(b)
above, or such additional time, if any, that the Parties mutually agree to in writing, or if
the Party receiving such notice denies the applicability of the provisions of Section
11.8(b) or otherwise refuses to participate under the provisions of Section
11.8(b), either Party may initiate binding arbitration pursuant to the provisions of
Section 11.8(d) below.

     (d) Arbitration. Any Arbitral Disputes not settled pursuant to the foregoing
provisions shall be resolved through the use of binding arbitration in accordance with the
Commercial Arbitration Rules of the American Arbitration Association (“Arbitration
Rules”), as supplemented to the extent necessary to determine any procedural appeal
questions by the Federal Arbitration Act (Title 9 of the United States Code) and in
accordance with the following provisions:

     (i) If there is any inconsistency between this Section 11.8(d) and the
Arbitration Rules or the Federal Arbitration Act, the terms of this Section
11.8(d) will control the rights and obligations of the Parties.

     (ii) Arbitration shall be initiated by a Party serving written notice, via
certified mail, on the other Party that the first Party elects to refer the Arbitral
Dispute to binding arbitration, along with the name of the arbitrator appointed by
the Party demanding arbitration and a statement of the matter in controversy.
Within thirty (30) days after receipt of such demand for arbitration, the receiving
Party shall name its arbitrator. If the receiving Party fails or refuses to name
its arbitrator within such thirty (30) day period, the second arbitrator shall be
appointed, upon request of the Party demanding arbitration, by the Chief U.S.
District Court Judge for the District of Colorado, or such other person designated
by such judge. The two arbitrators so selected shall within thirty (30) days after
their designation select a third arbitrator; provided, however, that if the two
arbitrators are not able to agree on a third arbitrator within such thirty (30) day
period, either Party may request the Chief U.S. District Court Judge for the

40

 

District of Colorado, or such other person designated by such judge to select
the third arbitrator as soon as possible. If the Judge declines to appoint an
arbitrator, appointment shall be made, upon application of either Party, pursuant to
the Commercial Arbitration Rules of the American Arbitration Association. If any
arbitrator refuses or fails to fulfill his or her duties hereunder, such arbitrator
shall be replaced by the Party which selected such arbitrator (or if such arbitrator
was selected by another Person, through the procedure which such arbitrator was
selected) pursuant to the foregoing provisions.

     (iii) The hearing will be conducted in Denver, Colorado, no later than sixty
(60) days following the selection of the arbitrators or thirty (30) days after all
prehearing discovery has been completed, whichever is later, at which the Parties
shall present such evidence and witnesses as they may choose, with or without
counsel. The Parties and the arbitrators should proceed diligently and in good
faith in order that the award may be made as promptly as possible.

     (iv) Except as provided in the Federal Arbitration Act, the decision of the
arbitrators will be binding on and non-appealable by the Parties. Any such decision
may be filed in any court of competent jurisdiction and may be enforced by any Party
as a final judgment in such court.

     (v) The arbitrators shall have no right or authority to grant or award
exemplary, punitive, remote, speculative, consequential, special or incidental
damages.

     (vi) The Federal Rules of Civil Procedure, as modified or supplemented by the
local rules of civil procedure for the U.S. District Court of Colorado, shall apply
in the arbitration. The Parties shall make their witnesses available in a timely
manner for discovery pursuant to such rules. If a Party fails to comply with this
discovery agreement within the time established by the arbitrators, after resolving
any discovery disputes, the arbitrators may take such failure to comply into
consideration in reaching their decision. All discovery disputes shall be resolved
by the arbitrators pursuant to the procedures set forth in the Federal Rules of
Civil Procedure.

     (vii) Adherence to formal rules of evidence shall not be required. The
arbitrators shall consider any evidence and testimony that they determine to be
relevant.

     (viii) The Parties hereby request that the arbitrators render their decision
within thirty (30) days following conclusion of the hearing.

     (ix) The defenses of statute of limitations and laches shall be tolled from and
after the date a Party gives the other Party written notice of an Arbitral Dispute
as provided in Section 11.8(b) above until such time as the Arbitral Dispute
has been resolved pursuant to Section 11.8(b), or an arbitration award has
been entered pursuant to this Section 11.8(d).

41

 

     (e) Recovery of Costs and Attorneys’ Fees. If arbitration arising out of this
Agreement is initiated by either Party, the decision of the arbitrators may include the
award of court costs, fees and expenses of such arbitration (including reasonable attorneys’
fees).

     (f) Choice of Forum. If, despite the Parties’ agreement to submit any Arbitral
Disputes to binding arbitration, there are any court proceedings arising out of or relating
to this Agreement or the transactions contemplated hereby, such proceedings shall be brought
and tried in, and the Parties hereby consent to the jurisdiction of, the federal or state
courts situated in the City and County of Denver, State of Colorado.

     (g) Jury Waivers. THE PARTIES HEREBY WAIVE ANY AND ALL RIGHTS TO DEMAND A
TRIAL BY JURY.

     (h) Settlement Proceedings. All aspects of any settlement proceedings,
including discovery, testimony and other evidence, negotiations and communications pursuant
to this Section 11.8, briefs and the award shall be held confidential by each Party
and the arbitrators, and shall be treated as compromise and settlement negotiations for the
purposes of the Federal and State Rules of Evidence.

     11.9 Notices and Addresses. Any notice, request, instruction, waiver or other
communication to be given hereunder by either Party shall be in writing and shall be considered
duly delivered if personally delivered, mailed by certified mail with the postage prepaid (return
receipt requested), sent by messenger or overnight delivery service, or sent by facsimile to the
addresses of the Parties as follows:

	 	 	 	 
	 	MLP:

	 	DCP Midstream Partners, LP
	 	 

	 	370 — 17th Street, Suite 2775
	 	 

	 	Denver, Colorado 80202
	 	 

	 	Telephone: (303) 633-2900
	 	 

	 	Facsimile: (303) 633-2921
	 	 

	 	Attn: President
	 
	 	with a copy to:

	 	DCP Midstream Partners, LP
	 	 

	 	370 — 17th Street, Suite 2775
	 	 

	 	Denver, Colorado 80202
	 	 

	 	Telephone: (303) 633-2900
	 	 

	 	Facsimile: (303) 633-2921
	 	 

	 	Attn: General Counsel
	 
	 	MIDSTREAM, GP or HOLDINGS:

	 	DCP Midstream, LLC
	 	 

	 	370 — 17th Street, Suite 2500
	 	 

	 	Denver, Colorado 80202
	 	 

	 	Telephone: (303) 595-3331
	 	 

	 	Facsimile: (303) 605-2226
	 	 

	 	Attn: President

42

 

	 	 	 
	with a copy to:

	 	DCP Midstream, LLC
	 

	 	370 — 17th Street, Suite 2500
	 

	 	Denver, Colorado 80202
	 

	 	Telephone: (303) 605-1630
	 

	 	Facsimile: (303) 605-2226
	 

	 	Attn: General Counsel

or at such other address as either Party may designate by written notice to the other Party in the
manner provided in this Section 11.9. Notice by mail shall be deemed to have been given
and received on the third (3rd) day after posting. Notice by messenger, overnight delivery
service, facsimile transmission (with answer-back confirmation) or personal delivery shall be
deemed given on the date of actual delivery.

     11.10 Press Releases. Except as may otherwise be required by securities Laws and
public announcements or disclosures that are, in the reasonable opinion of the Party proposing to
make the announcement or disclosure, legally required to be made, there shall be no press release
or public communication concerning the transactions contemplated by this Agreement by either Party
except with the prior written consent of the Party not originating such press release or
communication, which consent shall not be unreasonably withheld or delayed. MLP, GP and HOLDINGS
will consult in advance on the necessity for, and the timing and content of, any communications to
be made to the public and, subject to legal constraints, to the form and content of any application
or report to be made to any Governmental Authority that relates to the transactions contemplated by
this Agreement.

     11.11 Offset. Nothing contained herein or in any Transaction Document shall create a
right of offset or setoff for any Party under this Agreement and each Party hereby waives and
disclaims any such right of offset or setoff under all applicable Law (including common Law).

     11.12 No Partnership; Third Party Beneficiaries. Nothing in this Agreement shall be
deemed to create a joint venture, partnership, tax partnership, or agency relationship between the
Parties. Nothing in this Agreement shall provide any benefit to any Third Person or entitle any
Third Person to any claim, cause of action, remedy or right of any kind, it being the intent of the
Parties that this Agreement shall not be construed as a third-party beneficiary contract; provided,
however, that the indemnification provisions of Article X shall inure to the benefit of the
MLP Indemnitees and the HOLDINGS Indemnitees as provided therein.

     11.13 Negotiated Transaction. The provisions of this Agreement were negotiated by the
Parties, and this Agreement shall be deemed to have been drafted by both Parties.

     THE PARTIES HAVE signed this Agreement by their duly authorized officials as of the date first
set forth above.

[Signatures begin on next page]

43

 

	 	 	 	 	 	 	 
	 	 	DCP LP HOLDINGS, LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ D. Robert Sadler	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	D. Robert Sadler	 	 
	 

	 	Title:
	 	Vice President, Strategic Planning	 	 
	 
	 	 	 	 	 	 
	 	 	DCP MIDSTREAM, LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ D. Robert Sadler	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	D. Robert Sadler	 	 
	 

	 	Title:
	 	Vice President, Strategic Planning	 	 
	 
	 	 	 	 	 	 
	 	 	DCP MIDSTREAM GP, LP	 	 
	 
	 	 	 	 	 	 
	 	 	By: DCP MIDSTREAM GP, LLC,

Its General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Donald A. Baldridge	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Donald A. Baldridge	 	 
	 

	 	Title:
	 	Vice President, Business Development	 	 
	 
	 	 	 	 	 	 
	 	 	DCP MIDSTREAM PARTNERS, LP	 	 
	 
	 	 	 	 	 	 
	 	 	By: DCP MIDSTREAM GP, LP,	 	 
	 	 	Its General Partner	 	 

	 	 	 	 	 	 	 
	 	 	By: DCP MIDSTREAM GP, LLC,	 	 
	 	 	Its General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Donald A. Baldridge	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Donald A. Baldridge	 	 
	 

	 	Title:
	 	Vice President, Business Development	 	 

Signature page to Contribution Agreement

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00154-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00154-of-00352.parquet"}]]