third coast midstream, llcd18rn0p25nwr6d.cloudfront.net/cik-0001513965/6a60d99e-f... · 2019. 7....
TRANSCRIPT
UNITED STATESSECURITIES AND EXCHANGE COMMISSION
Washington D.C. 20549
FORM 8-K
CURRENT REPORTPursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of report (date of earliest event reported): July 18, 2019
THIRD COAST MIDSTREAM, LLC(Exact name of registrant as specified in its charter)
Delaware 001-35257 27-0855785
(State or other jurisdictionof incorporation)
(CommissionFile No.)
(IRS EmployerIdentification No.)
2103 CityWest Blvd., Bldg. 4, Suite 800
Houston, Texas 77042(Address of principal executive offices) (Zip Code)
(346) 241-3400(Registrant’s telephone number, including area code)
American Midstream Partners, LP(Former name or former address, if changed since last report)
ChecktheappropriateboxbelowiftheForm8-KfilingisintendedtosimultaneouslysatisfythefilingobligationoftheRegistrantunderanyofthefollowingprovisions:
☐ WrittencommunicationspursuanttoRule425undertheSecuritiesAct(17CFR230.425)
☐ SolicitingmaterialpursuanttoRule14a-12undertheExchangeAct(17CFR240.14a-12)
☐ Pre-commencementcommunicationspursuanttoRule14d-2(b)undertheExchangeAct(17CFR240.14d-2(b))
☐ Pre-commencementcommunicationspursuanttoRule13e-4(c)undertheExchangeAct(17CFR240.13e-4(c))
SecuritiesregisteredpursuanttoSection12(b)oftheAct:
Title of each class Trading
Symbol(s) Name of each exchange
on which registeredCommon Units Representing Limited
Partnership Interests AMID
New York Stock Exchange
IndicatebycheckmarkwhethertheregistrantisanemerginggrowthcompanyasdefinedinRule405oftheSecuritiesActof1933(§230.405ofthischapter)orRule12b-2oftheSecuritiesExchangeActof1934(§240.12b-2ofthischapter).
Emerginggrowthcompany☐
Ifanemerginggrowthcompany,indicatebycheckmarkiftheregistranthaselectednottousetheextendedtransitionperiodforcomplyingwithanyneworrevisedfinancialaccountingstandardsprovidedpursuanttoSection13(a)oftheExchangeAct.☐
Introductory Note
AsfurtherdescribedunderItem5.03below,effectiveonJuly23,2019(the“ConversionEffectiveTime”),AmericanMidstreamPartners,LP,aDelawarelimitedpartnership(the“Partnership”),convertedintoaDelawarelimitedliabilitycompanynamed“ThirdCoastMidstream,LLC”(the“Conversion”).Referenceshereintothe“Registrant”refertothePartnershippriortotheConversionandtoThirdCoastMidstream,LLCfollowingtheConversion.EffectiveonJuly23,2019,AmericanMidstreamGP,LLC,aDelawarelimitedliabilitycompanyandthegeneralpartneroftheRegistrant(the“GeneralPartner”),changeditsnameto“ThirdCoastMidstreamHoldings,LLC”uponafilingofacertificateofamendmenttothecertificateofformationoftheGeneralPartnerwiththeSecretaryofStateoftheStateofDelaware(the“NameChange”).Referenceshereintothe“GeneralPartner”refertoAmericanMidstreamGP,LLCpriortotheNameChangeandtoThirdCoastMidstreamHoldings,LLCfollowingtheNameChange.
Item 1.01 Entry into a Material Definitive Agreement.
SixthAmendedandRestatedAgreementofLimitedPartnershipoftheRegistrant
OnJuly23,2019,theGeneralPartnerandAnchorMidstreamAcquisition,LLC,aDelawarelimitedliabilitycompany(“Parent”),enteredintotheSixthAmendedandRestatedAgreementofLimitedPartnershipoftheRegistrant(the“SixthLPA”),whichamendstheRegistrant’sFifthAmendedandRestatedAgreementofLimitedPartnershipdatedasofApril25,2016inaccordancewiththeMergerAgreement(asdefinedbelow).UnderthetermsoftheSixthLPA,theGeneralPartnerremainedthesolegeneralpartneroftheRegistrantandParentwasthesolelimitedpartneroftheRegistrantuntiltheSixthLPAwasreplacedbytheRegistrantLLCA(asdefinedbelow)inconnectionwiththeConversionandtheGPMerger(asdefinedbelow).
TheforegoingdescriptionoftheSixthLPAdoesnotpurporttobecompleteandissubjectto,andqualifiedinitsentiretyby,thefulltextoftheSixthLPA,whichisattachedheretoasExhibit3.1andincorporatedhereinbyreference.
MergerAgreement
OnJuly23,2019,theGeneralPartnerenteredintoanAgreementandPlanofMerger(the“GPMergerAgreement”)withParent,pursuanttowhichParentmergedwithandintotheGeneralPartneronJuly23,2019(the“GPMerger”),withtheGeneralPartnersurvivingasthesolememberoftheRegistrant.
UnderthetermsoftheGPMergerAgreement,attheeffectivetimeoftheGPMerger,theoutstandingmembershipinterestsofParentwerenotconvertedorexchangedinanymanner,andeachsuchmembershipinterestwascancelledandextinguishedfornoconsideration.TheissuedandoutstandingmembershipinterestsoftheGeneralPartnerwereconvertedintoUnits(asdefinedintheFifthAmendedandRestatedLimitedLiabilityCompanyAgreementoftheGeneralPartner(the“FifthLLCA”)amongtheGeneralPartner,3CMHoldings,LLC(f/k/aHighPointInfrastructurePartners,LLC),aDelawarelimitedliabilitycompany,andAMIDGPHoldings,LLC,aDelawarelimitedliabilitycompany)assetforthintheFifthLLCA.
TheforegoingdescriptionoftheGPMergerAgreementdoesnotpurporttobecompleteandissubjectto,andqualifiedinitsentiretyby,thefulltextoftheGPMergerAgreement,whichisattachedheretoasExhibit2.1andincorporatedhereinbyreference.ItisnotintendedtoprovideanyotherfactualinformationabouttheRegistrant,theGeneralPartner,ortheirrespectivesubsidiariesandaffiliates.
LimitedLiabilityCompanyAgreementofThirdCoastMidstream,LLC
OnJuly23,2019,theGeneralPartner,assolememberoftheRegistrantfollowingtheconsummationoftheGPMerger,approvedtheLimitedLiabilityCompanyAgreementoftheThirdCoastMidstream,LLC(the“RegistrantLLCA”).UnderthetermsoftheRegistrantLLCA,theGeneralPartner,asthesolememberoftheRegistrant,wasappointedastheManagingMember(asdefinedintheRegistrantLLCA)oftheRegistrantwithfulldiscretiontomanageandcontrolthebusinessandaffairsoftheRegistrant.
TheforegoingdescriptionoftheRegistrantLLCAdoesnotpurporttobecompleteandissubjectto,andqualifiedinitsentiretyby,thefulltextoftheRegistrantLLCA,whichisattachedheretoasExhibit3.4andincorporatedhereinbyreference.
Item 2.01 Completion of Acquisition or Disposition of Assets.
OnJuly23,2019,theRegistrantcompleteditspreviouslyannouncedmergerwithanaffiliateofArcLightEnergyPartnersFundV,L.P.pursuanttothatcertainAgreementandPlanofMerger(the“MergerAgreement”)amongtheGeneralPartner,theRegistrant,Parent,MergerSub,andHighPointInfrastructurePartners,LLC,anaffiliateofArcLightEnergyPartners
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FundV,L.P.(“ArcLight”),aDelawarelimitedliabilitycompany,pursuanttowhichMergerSubmergedwithandintotheRegistrant(the“Merger”),withtheRegistrantsurvivingtheMergerasawhollyownedsubsidiaryoftheGeneralPartnerandParent,awhollyownedsubsidiaryofanaffiliateofArcLight.
AttheeffectivetimeoftheMerger(the“MergerEffectiveTime”),pursuanttothetermsandconditionssetforthintheMergerAgreement,eachcommonunitoftheRegistrant(each,a“CommonUnit”)issuedandoutstandingimmediatelypriortotheMergerEffectiveTime,heldbypartiesotherthanParentoraffiliatesorcertainotherholders,wasconvertedintotherighttoreceive$5.25incash,withoutinterest.
TheforegoingdescriptionoftheMergerAgreementandtheMergerdoesnotpurporttobecompleteandissubjectto,andqualifiedinitsentiretyby,thefulltextoftheMergerAgreement,whichwasfiledasExhibit2.1totheRegistrant’sCurrentReportonForm8-KfiledonMarch18,2019,andisincorporatedhereinbyreference.
Item 3.01 Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing.
Totheextentapplicable,theinformationincludedunderItem1.01andItem2.01aboveisincorporatedintothisItem3.01byreference.
OnJune23,2019,RegistrantrequestedthattheNewYorkStockExchange(the“NYSE”)fileaForm25withtheSecuritiesandExchangeCommission(the“SEC”)todelisttheCommonUnitsfromtheNYSEandtoderegistertheCommonUnitsunderSection12(b)oftheSecuritiesExchangeActof1934,asamended.TheCommonUnitsweresuspendedfromtradingontheNYSEpriortotheopeningoftradingonJuly23,2019.
Item 3.02 Unregistered Sales of Equity Securities.
OnJuly18,2019,thePartnershipenteredintoaRedemptionAgreementwiththeGeneralPartner,pursuanttowhichtheGeneralPartnerexchanged100%ofthenotionalgeneralpartnerunitsofthePartnershipforCommonUnits(the“Redemption”).InconnectionwiththeRedemption,thePartnershipissued980,889CommonUnits(the“RedemptionUnits”)totheGeneralPartnerandthenotionalgeneralpartnerunitswerecancelled.FollowingtheRedemption,theGeneralPartnerretainedanon-economicgeneralpartnerinterestinthePartnership.
TheissuanceoftheRedemptionUnitswascompletedinrelianceupontheexemptionfromtheregistrationrequirementsoftheSecuritiesActof1933,asamended,providedbySection4(a)(2)thereoffortransactionsbyanissuernotinvolvingapublicoffering.
TheforegoingdescriptionoftheRedemptionAgreementandtheRedemptiondoesnotpurporttobecompleteandissubjectto,andqualifiedinitsentiretyby,thefulltextoftheRedemptionAgreement,whichisfiledasExhibit10.1tothisCurrentReportandisincorporatedhereinbyreference.
Item 3.03 Material Modification to Rights of Security Holders.
Totheextentapplicable,theinformationincludedunderItem1.01andItem2.01aboveandtheinformationincludedunderItem5.03belowregardingtheCertificateofConversion,CertificateofFormation,andRegistrantLLCAisincorporatedintothisItem3.03byreference.
PursuanttotheMergerAgreementandsubjecttothetermsandconditionsthereof,attheMergerEffectiveTime,eachoutstandingphantomunitissuedpursuantto(i)RegistrationStatementNo.333-216585,filedonFormS-8(the“85RegistrationStatement”),filedbytheRegistrantwiththeSEConMarch9,2017,registering312,736commonunitsrepresentinglimitedpartnerinterestsoftheRegistrantundertheAmericanMidstreamPartners,LPAmendedandRestated2014LongTermIncentivePlan(the“LTIP”),(ii)RegistrationStatementNo.333-209614,filedonFormS-8(the“14RegistrationStatement”),filedbytheRegistrantwiththeSEConFebruary19,2016,registering6,000,000commonunitsrepresentinglimitedpartnerinterestsoftheRegistrantundertheThirdAmendedandRestatedAmericanMidstreamGP,LLCLong-TermIncentivePlan(the“2014Plan”,andtogetherwiththeLTIP,the“Plans”),(iii)RegistrationStatementNo.333-183290,filedonFormS-8(the“90RegistrationStatement”),filedbytheRegistrantwiththeSEConAugust13,2012,registering871,750commonunitsrepresentinglimitedpartnerinterestsoftheRegistrantunderthe2014Plan,and(iv)RegistrationStatementNo.333-176438,filedonFormS-8(the“38RegistrationStatement”,andtogetherwiththe85RegistrationStatement,14RegistrationStatement,and90RegistrationStatement,the“RegistrationStatements”),filedbytheRegistrantwiththeSEConAugust23,2011,registering303,602commonunitsrepresentinglimitedpartnerinterestsoftheRegistrantunderthe2014Plan,wasconvertedintoarighttoreceiveacashpaymentinanamountequalto$5.25incash(withoutinterestandsubjecttotaxwithholding,ifapplicable)tovestandbepayableinaccordancewiththetermsoftheunderlyingawardagreementorletter(orthePlans,ifthereisnoseparateawardagreementorletter),andsuchamounttobe
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adjustedfromandaftertheMergerEffectiveTimeinaccordancewiththetermsofthePlans.AttheMergerEffectiveTime,thePlanswereterminatedandfromandaftertheMergerEffectiveTimethereisnoobligationunderthePlanstograntorissue(andnooutstandingawardsprovidingforthegrantorissuanceof)anyrightwithrespecttotheCommonUnitsorotherPartnershipInterests(asdefinedintheMergerAgreement).
Item 5.01 Change in Control of Registrant.
Totheextentapplicable,theinformationincludedunderItem1.01andItem2.01aboveandunderItem5.03belowareincorporatedintothisItem5.01byreference.
Item 5.02 Departure of Directors or Certain Officers: Election of Directors; Appointment of Certain Officers; Compensatory Arrangements
of Certain Officers.
ResignationofDirectorsoftheGeneralPartner
InconnectionwiththeMergerandtheConversion,attheMergerEffectiveTime,StephenW.Bergstrom,GeraldA.Tywoniuk,JohnF.Erhard,PeterA.Fasullo,DonaldR.Kendall,Jr.,DanielR.Revers,JosephW.SuttonandLuciusH.Taylor(collectively,the“ResigningDirectors”)resignedasdirectorsoftheGeneralPartner.ThedecisionofeachoftheResigningDirectorstoresignasadirectoroftheGeneralPartnerwasnottheresultofanydisagreementwiththeGeneralPartnerorthePartnershiponanymatterrelatingtotheoperations,internalcontrols,policiesorpracticesoftheGeneralPartnerorthePartnership,andwassolelyasaresultoftheMergerandtherelatedtransactionsdescribedinthisCurrentReportonForm8-K.
ResignationofOfficersoftheGeneralPartner
InconnectionwiththeMerger,attheMergerEffectiveTime,LouisDorey,EricT.Kalamaras,ReneL.Casadaban,ChristopherB.DialandKarenS.Acree(collectively,the“ResigningOfficers”)resignedtheirpositions(butnotemployment)asInterimPresidentandChiefExecutiveOfficeroftheGeneralPartner,SeniorVicePresidentandChiefFinancialOfficeroftheGeneralPartner,SeniorVicePresidentandChiefOperatingOfficeroftheGeneralPartner,SeniorVicePresident,GeneralCounselandChiefComplianceOfficeroftheGeneralPartnerandVicePresidentandChiefAccountingOfficeroftheGeneralPartner,respectively.ThedecisionofeachoftheResigningOfficerstoresignasofficersoftheGeneralPartnerwasnottheresultofanydisagreementsbetweenanyResigningOfficerandthePartnershiportheGeneralPartneroranyofficerordirectorofthePartnershiportheGeneralPartnerandwassolelyasaresultoftheMergerandtherelatedtransactionsdescribedinthisCurrentReportonForm8-K.
AppointmentofOfficersofThirdCoastMidstream,LLC
AsaresultoftheConversionandGPMerger,thebusinessandaffairsofthePartnershipwillbeoverseenbytheGeneralPartnerassolememberoftheRegistrant.FollowingtheGPMergerEffectiveTime,theGeneralPartnerappointedMatthewW.RowlandasPresidentandChiefExecutiveOfficeroftheRegistrant,ReneL.CasadabanasSeniorVicePresidentandChiefOperatingOfficeroftheRegistrant,RyanK.RupeasSeniorVicePresidentandChiefCommercialOfficeroftheRegistrant,KarenS.AcreeasVicePresidentandChiefAccountingOfficeroftheRegistrant,andStephenCiupakasVicePresident–FinanceoftheRegistrant(collectively,the“RegistrantOfficers”).
Mr.Rowland,50,previouslyservedasSeniorVicePresidentatCIMAENERGY,LPawhollyownedsubsidiaryofMitshubishiCorporationfrom2017to2019,wherehewasresponsibleformanagingfeedgasforMitsubishi’spositionintheCameronLNGfacility.Mr.RowlandalsopreviouslyservedasthechiefoperatingofficeroftheGeneralPartnerfrom2013to2016.PriortohisappointmentwiththeGeneralPartner,Mr.RowlandwasafounderandManagingDirectoratHighPointEnergy,LLC(“HPE”)from2009to2013.PriortoHPE,Mr.RowlandservedasVicePresident,AssetOptimizationforCIMAENERGY,LTD.from2003through2009.Mr.RowlandbeganhiscareerwithTenneco/ElPaso,whereheheldvariousoperationalandcommercialrolesfrom1986to2003.Mr.RowlandreceivedaB.S.inMechanicalEngineeringfromTexasA&MUniversityin1985.
Mr.Casadaban,49,has27yearsofmidstreamprojectmanagementandbusinessdevelopmentexperienceforonshore,offshoreanddeepwaterpipelinesystems.Mr.CasadabanhasservedastheSeniorVicePresidentandChiefOperatingOfficeroftheGeneralPartnersince2017.From2014to2017,Mr.CasadabanservedastheChiefOperatingOfficerforSummitMidstreamPartners,LP(“Summit”).PriortojoiningSummit,Mr.CasadabanworkedforEnterpriseProductsastheDirectorforDeepwaterBusinessDevelopmentoffloatingproductionplatformsandoffshorepipelines.Mr.CasadabanhasalsoservedasanindependentconsultanttoExxonMobilCorporationandGulfTerraEnergyPartners,LPforGulfofMexicoandinternationalpipelineprojects.Priortosuchroles,Mr.CasabadanwasemployedatLandandMarineEngineeringLimited,andwasresponsibleformanagingdomesticandinternationalpipelinerivercrossingsandbeachapproachesbyhorizontaldirectionaldrilling.Mr.CasadabanbeganhiscareerasaFieldEngineerforMcDermottInternationalInc.HecurrentlyservesontheboardofdirectorsofAngelReachandholdsaBachelorofScienceinBuildingConstructionfromAuburnUniversity.
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Mr.Rupe,43,hasservedasVicePresident—NaturalGasServicesandOffshorePipelinesofthePartnershipsinceMarch2017andhasservedinothercapacitieswiththePartnershipsince2012.Previously,Mr.RupeservedasVicePresidentofNaturalGasServicesandOffshorePipelinesandasthePartnership’sVicePresidentofCommercialOperationsofthePartnership.PriortohisappointmentasanofficerofthePartnership,hewasapartnerandservedasDirectorofCommercialOperationsforHighPointEnergy,LLC(“HighPointEnergy”).Mr.RupejoinedHighPointEnergyfromCIMAEnergy,wherehewasanownerandservedasDirectorofGulfCoastTradingandGasScheduling.Mr.RupeisagraduateofTexasA&MUniversity.
Ms.Acree,62,hasoverthirty-sixyearsofexperienceinfinancialandmanagementaccounting.Ms.AcreehasservedinthiscapacityfortheGeneralPartnersinceApril2018.Ms.AcreepreviouslyservedastheChiefAccountingOfficerforJonesEnergy,Inc.inAustin,Texas,from2015to2018.PriortoJonesEnergy,Inc.,sheservedasVicePresident,ControllerandChiefAccountingOfficerforW&TOffshore,Inc.from2007to2015.Ms.AcreeholdsaB.B.A.inAccountingfromTexasTechUniversityandisaCertifiedPublicAccountantlicensedinTexas.
Mr.Ciupak,40,hasoverfifteenyearsoffinancialanalysisandcorporatefinanceexperienceincludingtwelveyearsofmidstreamcorporatefinanceexperience.Mr.CiupakhasservedasthePartnership’sSeniorDirectorCorporateFinancesince2016.PriortojoiningthePartnership,Mr.CiupakwastheDirectorofFinancialPlanningandAnalysisatAzureMidstreamEnergy,LLC(“Azure”)fromJuly2014throughNovember2016,andfrom2006through2014,heservedinvariouscapacitiesatAtlasPipelinePartners,LP.Mr.CiupakholdsaB.A.inAccountancyfromtheUniversityofOklahomaandaMasterofEnergyBusinessfromtheUniversityofTulsa.
TherearenoarrangementsorunderstandingsbetweenanyoftheRegistrantOfficersandanyotherpersonpursuanttowhichsuchofficerwasappointed.TherearenofamilyrelationshipsbetweenanyRegistrantOfficerandanydirectororexecutiveofficeroftheRegistrant,andnoneoftheRegistrantOfficershasanydirectorindirectmaterialinterestinany“relatedparty”transactionrequiredtobedisclosedpursuanttoItem404(a)ofRegulationS-K.
Item 5.03 Amendments to Articles of Incorporation or Bylaws; Change in Fiscal Year
OnJuly23,2019,theRegistrantfiledaCertificateofMerger(the“PartnershipMergerCertificate”)withtheSecretaryofStateoftheStateofDelaware(the“DESecretaryofState”)toeffecttheMerger.Thereafter,toimplementtheConversion,theRegistrantfiledwiththeDESecretaryofStateaCertificateofConversionand,initscapacityasthesoleandmanagingmemberoftheRegistrant,theGeneralPartnerfiledwiththeDESecretaryofStateaCertificateofFormation.
AttheConversionEffectiveTime,theRegistrantconvertedfromaDelawarelimitedpartnershiptoaDelawarelimitedliabilitycompanypursuanttoaplanofconversion(the“PlanofConversion”)andtheCertificateofFormationandtheRegistrantLLCAbecameeffective.
Immediatelythereafter,theGeneralPartnerfiledaCertificateofMerger(the“GPMergerCertificate”)withtheDESecretaryofStatetoeffecttheGPMerger.
TheforegoingdescriptionofthePartnershipMergerCertificate,theCertificateofFormation,theGPMergerCertificateandtheCertificateofConversiondoesnotpurporttobecompleteandisqualifiedinitsentiretybyreferencetothecompletetextofsuchagreements,copiesofwhicharefiledasExhibits3.2,3.3,3.5and3.6respectively,tothisCurrentReportandareincorporatedbyreferenceherein.
Item 9.01 Financial Statements and Exhibits.
(d)Exhibits.Exhibit No. Description of Exhibit
2.1
AgreementandPlanofMerger,datedJuly23,2019,byandbetweenAnchorMidstreamAcquisition,LLCandThirdCoastMidstreamHoldings,LLC.
2.2*
AgreementandPlanofMerger,datedMarch17,2019byandamongAmericanMidstreamPartners,LP,AmericanMidstreamGP,LLC,AnchorMidstreamAcquisition,LLC,AnchorMidstreamMergerSub,LLC,andHighPointInfrastructurePartners,LLC(incorporatedbyreferencetoExhibit2.1totheCurrentReportonForm8-K(CommissionFileNo.001-35257)filedonMarch18,2019).
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3.1 SixthAmendedandRestatedAgreementofLimitedPartnershipofAmericanMidstreamPartners,LP,datedJuly23,2019.
3.2 CertificateofMergerofAmericanMidstreamPartners,LPintoAnchorMidstreamSub,LLCdatedJuly23,2019.
3.3 CertificateofFormationofThirdCoastMidstream,LLCdatedJuly23,2019.
3.4 LimitedLiabilityCompanyAgreementofThirdCoastMidstream,LLCdatedJuly23,2019.
3.5 CertificateofMergerofThirdCoastMidstreamHoldings,LLCintoAnchorMidstreamAcquisition,LLCdatedJuly23,2019.
3.6 CertificateofConversionofThirdCoastMidstream,LLC,datedJuly23,2019.
10.1 RedemptionAgreement,datedJuly18,2019,byandbetweenAmericanMidstreamGP,LLCandAmericanMidstreamPartners,LP.* CertainscheduleshavebeenomittedpursuanttoItem601(b)(2)ofRegulationS-K.Acopyofanyomittedschedulewillbefurnishedsupplementallyto
theSECuponrequest.
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SIGNATURES
PursuanttotherequirementsoftheSecuritiesExchangeActof1934,theregistranthasdulycausedthisreporttobesignedonitsbehalfbytheundersigned,thereuntodulyauthorized.
July23,2019
THIRD COAST MIDSTREAM, LLC
By: /s/ChristopherB.DialName: ChristopherB.DialTitle: SeniorVicePresidentandGeneralCounsel
[SignaturePagetoForm8-K]
Exhibit 2.1
Execution Version
AGREEMENT AND PLAN OF MERGER
ThisAgreementandPlanofMerger,datedasofJuly23,2019(this“Agreement”),isenteredintobyandbetweenAnchorMidstreamAcquisition,LLC,aDelawarelimitedliabilitycompany(“Parent”),andThirdCoastMidstreamHoldings,LLC,aDelawarelimitedliabilitycompany(“ThirdCoastHoldings”).
WITNESSETH
WHEREAS,ParentholdsallofthemembershipinterestsofThirdCoastMidstream,LLC,aDelawarelimitedliabilitycompany(“ThirdCoastMidstream”),andisthesolememberofThirdCoastMidstream;
WHEREAS,ThirdCoastHoldingsholdsallofthemembershipinterestsofParentandisthesolememberofParent;
WHEREAS,ThirdCoastHoldings,initscapacityasthemanagingmemberofParent,has(i)determineditadvisableandinthebestinterestsofParentforParenttomergewithandintoThirdCoastHoldings(the“Merger”)pursuanttotheprovisionsofSection18-209oftheDelawareLimitedLiabilityCompanyAct,asamended(the“Act”),whereuponThirdCoastHoldingsshallcontinueasthesurvivingentityand(ii)authorized,adoptedandapprovedthisAgreementandtheMerger;and
WHEREAS,themanagingmemberofThirdCoastHoldingshas(i)determineditadvisableandinthebestinterestsofThirdCoastHoldingstoconsummatetheMergerand(ii)authorized,adoptedandapprovedthisAgreementandtheMerger.
NOW,THEREFORE,inconsiderationofthemutualcovenantsandagreementshereincontained,thepartiesherebyagreeasfollows:
1.TheMerger.InaccordancewithTitle6,Section18-209oftheAct,anduponthetermsandconditionsofthisAgreement,attheEffectiveTime(asdefinedbelow),(i)ParentshallbemergedwithandintoThirdCoastHoldings,(ii)theseparatecompanyexistenceofParentshallceaseand(iii)ThirdCoastHoldingsshallcontinueasthesurvivingentityaftertheMerger(insuchcapacity,the“SurvivingEntity”).AttheEffectiveTime,theeffectoftheMergershallbeasprovidedinthisAgreementandTitle6,Section18-209(f)-(g)oftheAct.
2.EffectiveTime.TheMergershallbecomeeffectiveuponthefilingoftheCertificateofMerger(asdefinedbelow)withtheSecretaryofStateoftheStateofDelaware(the“EffectiveTime”).
3.CertificateofMerger.ParentandThirdCoastHoldingsagreethattheywilleachcausetobeexecuted,deliveredandfiledaCertificateofMergersatisfyingtherequirementssetforthinTitle6,Section18-209(c)oftheAct(the“CertificateofMerger”),withtheSecretaryofStateoftheStateofDelaware,andthattheywillcausetobeperformedallnecessaryactswithintheStateofDelawareandelsewheretoeffecttheMerger.Unlessthecontextotherwiserequires,theterm“Agreement”asusedhereinreferscollectivelytothisAgreementandtheCertificateofMerger.
4.LimitedLiabilityCompanyAgreement.FollowingtheconsummationoftheMerger,theFourthAmendedandRestatedLimitedLiabilityCompanyAgreementofThirdCoastHoldingsshallbeamendedandrestatedinitsentiretyintheformattachedheretoasExhibitA(the“FifthA/RLLCA”).
5.EffectofMergeronMembershipInterests.AttheEffectiveTime,byvirtueoftheMergerandwithoutanyactiononthepartoftheholdersofanymembershipinterestsofParent,theoutstandingmembershipinterestsofParentshallnotbeconvertedorexchangedinanymanner,andeachsuchmembershipinterestasoftheEffectiveTimeshallbecancelledandextinguishedfornoconsideration.TheissuedandoutstandingmembershipinterestsofThirdCoastHoldingsshallbeconvertedintoUnits(asdefinedintheFifthA/RLLCA)oftheSurvivingEntityassetforthintheFifthA/RLLCA.
6.AdditionalActions.SubjecttothetermsofthisAgreement,thepartiesheretoshalltakeallsuchreasonableandlawfulactionasmaybenecessaryorappropriateinordertoeffecttheMergerandtocomplywiththerequirementsoftheAct.If,atanytimeaftertheEffectiveTime,theSurvivingEntityshallconsiderorbeadvisedthatanydeeds,billsofsale,assignments,assurancesoranyotheractionsorthingsarenecessaryordesirabletovest,perfectorconfirm,ofrecordorotherwise,intheSurvivingEntityitsright,titleorinterestin,toorunderanyoftherights,propertiesorassetsofParent,orotherwisetocarryoutthisAgreement,theSurvivingEntityshallbeauthorizedtoexecuteanddeliver,inthenameandonbehalfofParentandThirdCoastHoldings,allsuchdeeds,billsofsale,assignmentsandassurancesandtotakeanddo,inthenameandonbehalfofParentandThirdCoastHoldingsorotherwise,allsuchotheractionsandthingsasmaybenecessaryordesirabletovest,perfectorconfirmanyandallright,titleandinterestin,toandundersuchrights,propertiesorassetsintheSurvivingEntityorotherwisetocarryoutthisAgreement.
7.TaxTreatment.ParentandThirdCoastHoldingsagreethatbecauseeachofParentandThirdCoastHoldingsistreatedunderU.S.TreasuryRegulationsSection301.7701-3asdisregardedasanentityseparatefromthesamedirectorindirectcommonparentthatistreatedasapartnershipforU.S.federalincometaxpurposes,theMergershallbedisregardedforU.S.federalincometaxpurposes.
8.Termination.ThisAgreementmaybeterminated,andtheMergercontemplatedherebymaybeabandoned,atanytimepriortotheEffectiveTime.Intheeventofsuchterminationandabandonment,thisAgreementshallbecomevoidandnoneofParent,ThirdCoastHoldings,ortheirrespectivemanagers,membersorofficers,asthecasemaybe,shallhaveanyliabilitywithrespecttosuchterminationandabandonment.
9.AmendmentandWaiver.AtanytimepriortotheEffectiveTime,thisAgreementmay,totheextentpermittedbytheAct,besupplemented,amendedormodifiedbythemutualconsentofthepartieshereto.AnyextensionorwaiveroftheobligationshereinofeitherpartyshallbevalidonlyifsetforthinaninstrumentinwritingreferringtothisSectionandsignedbythepartytobeboundthereby.Anywaiverofanytermorconditionshallnotbeconstruedasawaiverofanysubsequentbreachorasubsequentwaiverofthesametermorcondition,orawaiverofanyothertermorcondition,ofthisAgreement.Thefailureofanypartytoassertanyofitsrightshereundershallnotconstituteawaiverofanyofsuchrights.
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10.GoverningLaw.ThisAgreementshallbegovernedbyandconstruedandenforcedunderthelawsoftheStateofDelaware,regardlessofthelawsthatmightotherwisegovernunderapplicableprinciplesofconflictsoflaw.
11.SuccessorsandAssigns.ThisAgreementshallbebindinguponandinuretothebenefitofthepartiesheretoandtheirrespectivesuccessorsandpermittedassigns.NeitherpartymayassigneitherthisAgreementoranyofitsrights,interestsorobligationshereunderwithoutthepriorwrittenapprovaloftheotherparty.
12.NoThirdPartyBeneficiaries.ThisAgreementshallnotconferanyrightsorremediesuponanypersonotherthanthepartiesheretoandtheirrespectivesuccessorsandpermittedassigns.
13.Headings.TheSectionheadingscontainedinthisAgreementareinsertedforconvenienceonlyandshallnotaffectinanywaythemeaningorinterpretationofthisAgreement.
14.Severability.AnytermorprovisionofthisAgreementthatisinvalidorunenforceableinanysituationinanyjurisdictionshallnotaffectthevalidityorenforceabilityoftheremainingtermsandprovisionshereoforthevalidityorenforceabilityoftheoffendingtermorprovisioninanyothersituationorinanyotherjurisdiction.
15.EntireAgreement.ThisAgreement,includingtheagreements,documentsandinstrumentsreferredtoherein,constitutestheentireagreementandsupersedesallotherprioragreementsandundertakings,bothwrittenandoral,amongthepartieshereto,oranyofthem,withrespecttothesubjectmatterhereof.
16.Counterparts.ThisAgreementmaybeexecutedinoneormorecounterparts,eachofwhichshallbedeemedanoriginal,andallofwhich,whentakentogether,shallbedeemedoneagreement.DeliveryofanexecutedcounterpartofasignaturepageofthisAgreementbyfacsimileorotherelectronicimagescanshallbeeffectiveasdeliveryofamanuallyexecutedcounterpartofthisAgreement.
[Signaturepagefollows.]
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IN WITNESS WHEREOF ,theundersignedhaveexecutedthisAgreementasofthedatefirstwrittenabove.
ANCHOR MIDSTREAM ACQUISITION, LLC
By: /s/DanielR.ReversName: DanielR.ReversTitle: President
THIRD COAST MIDSTREAM HOLDINGS, LLC
By: /s/DanielR.ReversName: DanielR.ReversTitle: President
[SignaturePagetoAgreementandPlanofMerger]
Exhibit A
Fifth Amended and Restated Limited Liability Company Agreement
(Seeattached)
ExhibitAtoAgreementandPlanofMerger
Execution Version
FIFTH AMENDED AND RESTATED
LIMITED LIABILITY COMPANY AGREEMENT
OF
THIRD COAST MIDSTREAM HOLDINGS, LLC
Dated as of July 23, 2019
TABLEOFCONTENTS PageARTICLEI.DEFINEDTERMS 3
Section1.1 Definitions 3
ARTICLEII.FORMATIONOFTHECOMPANY 10Section2.1 Formation 10Section2.2 CompanyName 10Section2.3 TermofCompany 10Section2.4 RegisteredAgentandOffice 10Section2.5 PrincipalPlaceofBusiness 10Section2.6 FiscalYearTaxableYear 10
ARTICLEIII.PURPOSEANDPOWERSOFTHECOMPANY 10Section3.1 Purpose 10Section3.2 PowersoftheCompany 11Section3.3 CertainTaxMatters 11
ARTICLEIV.MEMBERS 11Section4.1 PowersofMembers 11Section4.2 VotingandEconomicRightsofMembers 11Section4.3 MeetingsofMembers 12Section4.4 BusinessTransactionsofaMemberwiththeCompany 13Section4.5 NoCessationofMembershipuponBankruptcy 14Section4.6 Confidentiality 14Section4.7 OtherBusinessforMembers 15Section4.8 Financing 15
ARTICLEV.MANAGEMENT 16Section5.1 ManagingMember 16Section5.2 CompensationofManagingMember 16Section5.3 ManagingMemberas“Manager” 16Section5.4 Officers 17
ARTICLEVI.REPRESENTATIONSANDWARRANTIES 17Section6.1 RepresentationsandWarrantiesoftheMembers 17Section6.2 LIMITATIONOFWARRANTIES 19
ARTICLEVII.CAPITAL 19Section7.1 Units 19Section7.2 IssuanceofUnits 19Section7.3 CapitalAccounts 20Section7.4 CapitalAccountAdjustments 20Section7.5 AdditionalCapitalContributions 21Section7.6 NegativeCapitalAccounts 21Section7.7 AssigneeCapitalAccounts 21
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TABLE OF CONTENTS (CONT’D) PageARTICLEVIII.ALLOCATIONS 21
Section8.1 NetProfitandNetLossAllocations 21Section8.2 RestrictionsonAllocations 22Section8.3 IncomeTaxAllocations 23
ARTICLEIX.DISTRIBUTIONS 24Section9.1 DistributionsGenerally 24Section9.2 DistributionsinKind 24Section9.3 NoWithdrawalofCapital 24Section9.4 Withholding 24Section9.5 RestrictedDistributions 25
ARTICLEX.BOOKSANDRECORDS 25Section10.1 Books,RecordsandFinancialStatements 25Section10.2 CertainTaxMatters 25
ARTICLEXI.LIABILITY,EXCULPATIONANDINDEMNIFICATION 27Section11.1 Liability 27Section11.2 Exculpation 27Section11.3 FiduciaryDuty 28Section11.4 Indemnification 28Section11.5 Expenses 28Section11.6 Nonexclusivity;Severability 28
ARTICLEXII.TRANSFERSOFUNITS 29Section12.1 RestrictionsonTransfersofUnits 29Section12.2 PermittedTransfers 29Section12.3 OverridingProvisions 30Section12.4 ReleaseofLiability 30Section12.5 SubstituteMembers 31Section12.6 Resignation 31
ARTICLEXIII.DISSOLUTION,LIQUIDATIONANDTERMINATION 31Section13.1 DissolvingEvents 31Section13.2 Liquidation 32Section13.3 Reserves 32Section13.4 DistributionInKind 33Section13.5 Termination 33Section13.6 ClaimsoftheMembers 33
ARTICLEXIV.MISCELLANEOUS 33Section14.1 Notices 33Section14.2 Headings 34Section14.3 EntireAgreement 34Section14.4 Construction 34Section14.5 Counterparts 35
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TABLE OF CONTENTS (CONT’D) Page
Section14.6 GoverningLaw 35Section14.7 Jurisdiction;ConsenttoServiceofProcess;Waiver 35Section14.8 WaiverofJuryTrial 35Section14.9 WaiverGenerally 35Section14.10 Severability 35Section14.11 Amendments 36Section14.12 FeesandExpenses 36Section14.13 NoEmploymentAgreement 36Section14.14 NoThird-PartyBeneficiaries 36
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THELIMITEDLIABILITYCOMPANYINTERESTSDESCRIBEDINTHISFIFTHAMENDEDANDRESTATEDLIMITEDLIABILITYCOMPANYAGREEMENTHAVENOTBEENREGISTEREDUNDERTHESECURITIESACTOF1933,ASAMENDED,ORUNDERANYSTATESECURITIESACTSINRELIANCEUPONEXEMPTIONSUNDERTHOSEACTS.THESALEOROTHERDISPOSITIONOFSUCHLIMITEDLIABILITYCOMPANYINTERESTSISPROHIBITEDUNLESSSUCHSALEORDISPOSITIONISMADEINCOMPLIANCEWITHALLSUCHAPPLICABLEACTS.ADDITIONALRESTRICTIONSONTRANSFEROFSUCHLIMITEDLIABILITYCOMPANYINTERESTSARESETFORTHINTHISAGREEMENT.
FIFTH AMENDED AND RESTATEDLIMITED LIABILITY COMPANY AGREEMENT
OFTHIRD COAST MIDSTREAM HOLDINGS, LLC
ThisFifthAmendedandRestatedLimitedLiabilityCompanyAgreementofThirdCoastMidstreamHoldings,LLC(f/k/aAmericanMidstreamGP,LLC)(the“Company”)isenteredintobyandamongtheCompany,3CMHoldings,LLC(f/k/aHighPointInfrastructurePartners,LLC),aDelawarelimitedliabilitycompany(the“ManagingMember”),andAMIDGPHoldings,LLC,aDelawarelimitedliabilitycompany(“AMIDHoldings”),effectiveasofJuly23,2019(the“EffectiveDate”).
WITNESSETH
WHEREAS,onAugust20,2009,theCompanywasformeduponthefilingofacertificateofformation(includinganyandallamendmentsandmodificationstheretoandrestatementsthereof,the“Certificate”)withtheSecretaryofStateoftheStateofDelaware;
WHEREAS,onNovember4,2009,AIMMidstreamHoldings,LLC,aDelawarelimitedliabilitycompany(“AIMMidstreamHoldings”),adoptedtheAmendedandRestatedLimitedLiabilityCompanyAgreementoftheCompany(the“FirstAmendedandRestatedAgreement”)tosetforththerights,dutiesandobligationsofAIMMidstreamHoldingsassolememberoftheCompany;
WHEREAS,AIMMidstreamHoldingsandtheManagingMemberenteredintothatcertainPurchaseAgreement,datedasofApril15,2013(the“PurchaseAgreement”),pursuanttowhichtheManagingMemberpurchasedfromAIMMidstreamHoldings(i)100%oftheoutstandingsubordinatedunitsrepresentinglimitedpartnerinterestsofAmericanMidstreamPartners,LP,aDelawarelimitedpartnership,and(ii)90%oftheMembershipInterestsoftheCompany(the“TransferredInterests”),onthetermsandsubjecttotheconditionssetforththerein;
WHEREAS,onApril15,2013,AIMMidstreamHoldingsandtheManagingMemberadoptedtheSecondAmendedandRestatedLimitedLiabilityCompanyAgreementoftheCompany(the“SecondAmendedandRestatedAgreement”)toamendandrestatetheFirstAmendedandRestatedAgreementasofsuchdateto(i)admittheManagingMemberasaMemberoftheCompany,reflectthetransferoftheTransferredInterestsfromAIMMidstreamHoldingstotheManagingMemberandreflecttheconversionoftheTransferredInterestsintotheClassAMembershipInterestsand(ii)reflecttheconversionoftheremaining10%oftheMembershipInterestsheldbyAIMMidstreamHoldings(the“RemainingInterests”)intotheClassBMembershipInterests;
WHEREAS,onMay2,2016,AIMMidstreamHoldingsandtheManagingMemberadoptedtheThirdAmendedandRestatedLimitedLiabilityCompanyAgreementoftheCompany(the“ThirdAmendedandRestatedAgreement”)toamendandrestatetheSecondAmendedandRestatedAgreementasofsuchdateto(i)createanewclassofMembershipInterestintheCompany(the“ClassCMembershipInterests”)and(ii)admitLB3Services,aTexasgeneralpartnership(the“ExecutiveFamilyVehicle”),asaMemberoftheCompanyandtheholderoftheClassCMembershipInterests;
WHEREAS,onDecember1,2016,MagnoliaInfrastructureHoldings,LLC,aDelawarelimitedliabilitycompany(“Magnolia”),acquired100%oftheClassBMembershipInterestsfromAIMMidstreamHoldings,andAIMMidstreamHoldingsceasedtobeaMemberoftheCompany;
WHEREAS,onMarch8,2017,theCompanyissuedtoMagnoliaClassAMembershipInterests(the“AdditionalClassAMembershipInterests”),whichAdditionalClassAMembershipInterestsrepresentedanOwnershipPercentageof18.786%;
WHEREAS,onAugust9,2017,Magnoliacontributed100%oftheClassBMembershipInterestsandtheAdditionalClassAMembershipIntereststoAMIDHoldings,andMagnoliaceasedtobeaMemberoftheCompany;
WHEREAS,onAugust10,2017,AMIDHoldings,theManagingMemberandtheExecutiveFamilyVehicleadoptedtheFourthAmendedandRestatedLimitedLiabilityCompanyAgreementoftheCompany(the“FourthAmendedandRestatedAgreement”)toamendandrestatetheThirdAmendedandRestatedAgreementasofsuchdateto(i)reflectthetransferoftheClassBMembershipInterestsfromAIMMidstreamHoldingstoMagnolia,(ii)reflectthetransferoftheClassAMembershipInterestsandtheClassBMembershipInterestsfromMagnoliatoAMIDHoldingsand(iii)reflecttheconversionoftheClassBMembershipInterestsintoadditionalClassAMembershipInterests;
WHEREAS,onApril24,2019,theCompany,theExecutiveFamilyVehicleandLynnL.BourdonIIIenteredintothatcertainSeparationandReleaseAgreement,pursuanttowhich,amongotherthings,theCompanyrepurchasedtheClassCMembershipInterestsheldbytheExecutiveFamilyVehicle,suchthatnoClassCMembershipInterestsremainoutstandingasoftheEffectiveDate(suchrepurchase,the“ClassCRepurchase”);
WHEREAS,ontheEffectiveDate,AnchorMidstreamAcquisition,LLC,aDelawarelimitedliabilitycompany,mergedwithandintotheCompany(the“AnchorAcquisitionMerger”),withtheCompanysurvivingasthesolememberofThirdCoastMidstream,LLC,aDelawarelimitedliabilitycompany(“ThirdCoastMidstream”);
WHEREAS,ontheEffectiveDate,theCompany’snamewaschangedto“ThirdCoastMidstreamHoldings,LLC”uponthefilingofacertificateofamendmenttotheCertificatewiththeSecretaryofStateoftheStateofDelaware(the“NameChange”);
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WHEREAS,inconnectionwiththeClassCRepurchase,theAnchorAcquisitionMergerandtheNameChange,theMembersdesiretoamendandrestatetheFourthAmendedandRestatedAgreementinitsentiretytoprovidefortheconductofthebusinessandaffairsoftheCompanyandcertainrelationsamongtheMembersinaccordancewiththetermsandconditionsofthisAgreement,asitmaybeamendedfromtimetotime;and
WHEREAS,theMembers,byexecutionofthisAgreement,setforththeiragreementsregardingtheorderlymanagementoftheCompanyasalimitedliabilitycompanypursuanttoandinaccordancewiththeDelawareLimitedLiabilityCompanyAct(6Del.C.§18101,etseq.)(asamendedfromtimetotime,the“DelawareAct”).
NOW,THEREFORE,inconsiderationofthepremisesandmutualagreementscontainedherein,andothergoodandvaluableconsideration,thereceiptandsufficiencyofwhichareherebyacknowledged,theMembersherebyagreeasfollows:
ARTICLEI.DEFINEDTERMS
Section1.1Definitions.
“AccountingPeriod”meansthefiscalyearasdescribedinSection2.6.ThelastAccountingPeriodshallendontheterminationoftheCompany.
“AdditionalCapitalContribution”meansanyCapitalContributionmadebyaMembertotheCompanypursuanttoSection7.5.
“AdditionalClassAMembershipInterests”shallhavethemeaningsetforthintherecitalstothisAgreement.
“AdditionalMembershipUnitPrice”means,atthetimeadditionalUnitsareissuedpursuanttoSection7.5(a)inrespectofaMember’sAdditionalCapitalContribution,thepriceatwhichsuchUnitsarevaluedonamark-to-marketbasisbytheManagingMemberingoodfaithimmediatelypriortosuchAdditionalCapitalContribution.
“AdjustedCapitalAccount”meanstheCapitalAccountmaintainedforeachMember(a)increasedbyanyamountstheMemberisobligatedtocontributeorrestoretotheCompanypursuanttothepenultimatesentencesofTreasuryRegulationsSections1.704-2(g)(1)and1.7042(i)(5),and(b)decreasedbyanyamountsdescribedinTreasuryRegulationsSections1.704-1(b)(2)(ii)(d)(4),(5),or(6)withrespecttosuchMember.
“Affiliate”means,withrespecttoaspecifiedPerson,anyPersonthatdirectly,orindirectlythroughoneormoreintermediaries,Controls,isControlledbyorisundercommonControlwiththespecifiedPerson;provided,that,withrespecttotheManagingMember,theterm“Affiliate”alsomeansanyPersonControlledbyaninvestmentfundorpartnership(generalorlimited)managed,directlyorindirectly,byArcLightCapitalPartners,LLC.
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“Agreement”meansthisFifthAmendedandRestatedLimitedLiabilityCompanyAgreementoftheCompany,asthisagreementmayberevised,amended,restatedorsupplementedfromtimetotimeaftertheEffectiveDate.
“AIMMidstreamHoldings”shallhavethemeaningsetforthintherecitalstothisAgreement.
“AMIDHoldings”shallhavethemeaningsetforthinthepreambletothisAgreement.
“AnchorAcquisitionMerger”shallhavethemeaningsetforthintherecitalstothisAgreement.
“BipartisanBudgetAct”meansSections6221through6241oftheCode,asamendedbySection1101oftheBipartisanBudgetActof2015,Pub.L.No.114-74andSection411oftheProtectingAmericansfromTaxHikesActof2015,Pub.L.114-113,div.Q,togetherwithanyfinalortemporaryTreasuryRegulations,RevenueRulings,otheradministrativepronouncementsandcaselawinterpretingSections6221through6241oftheCode(andanyanalogousprovisionofstateorlocaltaxlaw).
“BusinessDay”meansanydayoftheweekotherthanaSaturday,SundayoradayonwhichthecommercialbanksinNewYorkCityarenotopenforbusiness.
“CapitalAccount”shallhavethemeaningsetforthinSection7.3.
“CapitalContribution”meansanycontributiontothecapitaloftheCompanyincashorpropertybyaMemberwhenevermadeandincludesAdditionalCapitalContributions.
“Certificate”shallhavethemeaningsetforthintherecitalstothisAgreement.
“ClassCMembershipInterests”shallhavethemeaningsetforthintherecitalstothisAgreement.
“ClassCRepurchase”shallhavethemeaningsetforthintherecitalstothisAgreement.
“Code”meanstheInternalRevenueCodeof1986,asamended.
“Company”shallhavethemeaningsetforthinthepreambletothisAgreement.
“CompanyCreditSupport”shallhavethemeaningsetforthinSection4.4(b).
“CompanyLevelTaxes”meansanyfederal,state,orlocaltaxes,additionstotax,penalties,andinterestpayablebytheCompanyasaresultofanyexaminationoftheCompany’saffairsbyanyfederal,state,orlocaltaxauthorities,includingresultingadministrativeandjudicialproceedingsundertheBipartisanBudgetAct.
“ConfidentialInformation”shallhavethemeaningsetforthinSection4.6(c).
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“Control”meansthepossession,directlyorindirectly,ofthepowertodirectorcausethedirectionofthemanagementandpoliciesofaPerson,whetherthroughownershipofvotingsecurities,bycontractorotherwise.
“CoveredPerson”meansacurrentorformerMember(including,fortheavoidanceofdoubt,theManagingMemberinitscapacityasthe“manager”oftheCompany),anAffiliateofacurrentorformerMember,anyofficer,manager,shareholder,partner,member,employee,advisor,representativeoragentofacurrentorformerMember,oranycurrentorformerofficer,employeeoragentoftheCompany.
“CreditSupportNon-ContributingMember”shallhavethemeaningsetforthinSection4.4(b).
“DelawareAct”shallhavethemeaningsetforthintherecitalstothisAgreement.
“Depreciation”means,foreachAccountingPeriodorotherrelevantperiod,anamountequaltodepreciation,amortizationorothercostrecoverydeductionallowablewithrespecttoanassetforsuchAccountingPeriodorotherrelevantperiod,exceptthatiftheGrossAssetValueofanassetdiffersfromitsadjustedbasisforfederalincometaxpurposesatthebeginningofsuchAccountingPeriodorotherrelevantperiod,DepreciationshallbedeterminedwithreferencetosuchbeginningGrossAssetValueusinganyreasonablemethodselectedbytheManagingMember.
“DistributableAmounts”shallhavethemeaningsetforthinSection9.1.
“EconomicRiskofLoss”hasthemeaningassignedtothatterminTreasuryRegulationsSection1.752-2(a).
“EffectiveDate”shallhavethemeaningsetforthinthepreambletothisAgreement.
“ExecutiveFamilyVehicle”shallhavethemeaningsetforthintherecitalstothisAgreement.
“FinancingAgreement”meansanycreditorloanagreement,notepurchaseagreementorsimilarfinancingagreementtowhichtheCompanyispartyasborrower,asrevised,amended,restatedorsupplementedfromtimetotime.
“FinancingAgreementTransactionDocuments”meansanyFinancingAgreementandanynotes,collateralorguarantyagreements,controlagreements,mortgagesordeedsoftrust,pledgeagreements,securityagreements,consentstoassignment,instruments,agreements,documentsandcertificatestoevidenceorsecuretheFinancingAgreementorobligationsthereunderandanyfinancingstatements,certificates,documentsandinstrumentsrelatedtheretoorexecutedorprovidedinconnectiontherewith,eachasrevised,amended,restatedorsupplementedfromtimetotime.
“FirstAmendedandRestatedAgreement”shallhavethemeaningsetforthintherecitalstothisAgreement.
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“FourthAmendedandRestatedAgreement”shallhavethemeaningsetforthintherecitalstothisAgreement.
“GAAP”meansgenerallyacceptedaccountingprinciplesasineffectfromtimetotimeintheUnitedStatesofAmerica.
“GovernmentalAuthority”meansanyfederal,national,regional,state,municipalorlocalgovernment,anypoliticalsubdivisionoranygovernmental,judicial,publicorstatutoryinstrumentality,tribunal,court,arbitralpanel,orotherregulatorybureau,authority,bodyorentityhavinglegaljurisdictionoverthematterorPersoninquestion.
“GrossAssetValue”means,withrespecttoanyasset,theasset’sadjustedbasisforU.S.federalincometaxpurposes,exceptasfollows:
(a)TheinitialGrossAssetValueofanyassetcontributedbyaMembertotheCompanyshallbethegrossfairmarketvalueofsuchasset,asdeterminedbytheManagingMember;
(b)TheGrossAssetValuesofallCompanyassetsshallbeadjustedtoequaltheirrespectivegrossfairmarketvalues,asdeterminedbytheManagingMember,asofthefollowingtimes:
(i) theacquisitionofadditionalUnitsbyanyneworexistingMemberinexchangeformorethanademinimisCapitalContribution;
(ii) thedistributionbytheCompanytoaMemberofmorethanademinimisamountofCompanypropertyasconsiderationforaninterestintheCompany;
(iii) theliquidationoftheCompanywithinthemeaningofTreasuryRegulationsSection1.704-1(b)(2)(ii)(g);
(iv) thegrantofUnits(otherthanademinimisamountofUnits)inconsiderationfortheprovisionofservicestoorforthebenefitoftheCompany;and
(v) anyothereventtotheextentdeterminedbytheManagingMembertobenecessarytoproperlyreflecttheGrossAssetValuesinaccordancewiththestandardssetforthinTreasuryRegulationsSection1.704-1(b)(2)(iv)(q);
provided,thatanyadjustmentspursuanttoclause(i)or(ii)aboveshallbemadeonlyiftheManagingMemberreasonablydeterminesthattheadjustmentsarenecessaryorappropriatetoreflecttherelativeeconomicinterestsoftheMembersintheCompany;
(c)TheGrossAssetValueofanypropertydistributedtoanyMembershallbethegrossfairmarketvalueofsuchassetonthedateofthedistribution,asdeterminedbytheManagingMember;and
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(d)TheGrossAssetValuesofalloftheCompanyassetsshallbeincreased(ordecreased)toreflectanyadjustmentstotheadjustedbasisofsuchassetspursuanttoCodeSections734(b)or743(b)butonlytotheextentthatsuchadjustmentsaretakenintoaccountindeterminingCapitalAccountspursuanttoTreasuryRegulationsSection1.704-1(b)(2)(iv)(m);provided,however,thatGrossAssetValueshallnotbeadjustedpursuanttothissubsection(d)totheextenttheCompanydeterminesthatanadjustmentpursuanttosubsection(b)hereofisnecessaryorappropriateinconnectionwiththetransactionthatwouldotherwiseresultinanadjustmentpursuanttothissubsection(d).
IftheGrossAssetValueofanassethasbeendeterminedoradjustedpursuanttosubsection(a),(b)or(d)hereof,suchGrossAssetValueshallthereafterbeadjustedbytheDepreciationtakenintoaccountwithrespecttosuchassetforpurposesofcomputingNetProfitandNetLoss.
“Liquidator”shallhavethemeaningsetforthinSection13.2.
“Magnolia”shallhavethemeaningsetforthintherecitalstothisAgreement.
“Majority-in-Interest”means,asofanygivenrecorddateorotherapplicabletime,theMembersholdinganOwnershipPercentage,individuallyorcollectively,inexcessof50%asofsuchdate.
“ManagingMember”shallhavethemeaningsetforthinthepreambletothisAgreement.
“Member”meanseachoftheManagingMember,AMIDHoldingsandanyPersonadmittedasanadditionalorsubstitutememberoftheCompanypursuanttothisAgreement.
“MemberLoan”shallhavethemeaningsetforthinSection4.4(c)(i).
“MemberNonrecourseDebt”hasthemeaningassignedtotheterm“partnernonrecoursedebt”inTreasuryRegulationsSection1.704-2(b)(4).
“MemberNonrecourseDebtMinimumGain”hasthemeaningassignedtotheterm“partnernonrecoursedebtminimumgain”inTreasuryRegulationsSection1.704-2(i)(2).
“MemberNonrecourseDeductions”hasthemeaningassignedtotheterm“partnernonrecoursedeductions”inTreasuryRegulationsSection1.704-2(i)(1).
“MembershipInterests”means,withrespecttoanyMember,suchMember’srespectivemembershipinterestintheCompany.
“MinimumGain”hasthemeaningassignedtotheterm“partnershipminimumgain”inTreasuryRegulationsSection1.704-2(d).
“NameChange”shallhavethemeaningsetforthintherecitalstothisAgreement.
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“NetProfit”and“NetLoss”means,withrespecttoanyAccountingPeriodorotherrelevantperiod,netprofitornetlossoftheCompanyforsuchperiod,determinedinaccordancewithSection703(a)oftheCode,includinganyitemsthatareseparatelystatedpursuanttoSection703(a)(1)oftheCode,asdeterminedinaccordancewithU.S.federalincometaxaccountingprincipleswiththefollowingadjustments:
(a)AnyincomeordeductionsfortaxpurposesattributabletoanelectionunderSection754oftheCodeshallbedisregarded;
(b)ThereshallbeaddedtotaxableincomeorlosstheamountofanyreceiptthatispermanentlyexcludedfromgrossincomebytheCode,butwhichisnotacapitalcontribution,loanproceed,recoveryofcapital,orpartofanonrecognitionexchange;
(c)ThereshallbesubtractedfromtaxableincomeorlossanycostthatisnotcurrentlydeductibleorcapitalizedfortaxpurposesunderSection705(a)(2)(B)oftheCode(ortreatedasexpendituresdescribedinSection705(a)(2)(B)oftheCodepursuanttoTreasuryRegulationsSection1.704-1(b)(2)(iv)(i));
(d)Inlieuofdepreciation,amortizationandothercostrecoverydeductionstakenintoaccountincomputingsuchtaxableincomeorloss,thereshallbetakenintoaccountDepreciationforsuchfiscalyearorotherperiod;
(e)GainorlossresultingfromanydispositionofanyCompanyassetwithrespecttowhichgainorlossisrecognizedforU.S.federalincometaxpurposesshallbecomputedbyreferencetotheGrossAssetValueoftheassetdisposedof,notwithstandingthattheadjustedtaxbasisofsuchassetdiffersfromitsGrossAssetValue;
(f)IntheeventtheGrossAssetValueofanypartnershipassetisadjustedpursuanttosubsection(b)or(d)ofthedefinitionofGrossAssetValue,theamountofsuchadjustmentshallbetakenintoaccountasanitemofgain(iftheadjustmentincreasesthebasisoftheasset)orasanitemofloss(iftheadjustmentdecreasessuchbasis)fromthedispositionofsuchassetforthepurposeofcomputingNetProfitandNetLoss;
(g)TotheextentanadjustmenttotheadjustedtaxbasisofanyassetpursuanttoCodeSection734(b)isrequired,pursuanttoTreasuryRegulationsSection1.704-1(b)(2)(iv)(m)(4),tobetakenintoaccountindeterminingCapitalAccountbalancesasaresultofadistributionotherthaninliquidationofaMember’sinterestintheCompany,theamountofsuchadjustmentshallbetreatedasanitemofgain(iftheadjustmentincreasesthebasisoftheasset)oranitemofloss(iftheadjustmentdecreasessuchbasis)fromthedispositionofsuchassetandshallbetakenintoaccountforpurposesofcomputingNetProfitorNetLoss;and
(h)Notwithstandinganyotherprovisionsofthisdefinition,thereshallnotbetakenintoaccountanyitemswhichareallocatedpursuanttoSection8.2.
“Non-ManagingMembers”meansallMembersotherthantheManagingMember.
“NonrecourseDeductions”hasthemeaningassignedtothatterminTreasuryRegulationsSection1.704-2(b).
“Officer”shallhavethemeaningsetforthinSection5.4.
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“OwnershipPercentage”means,atanytime,withrespecttoeachMember,thenumberofUnitsheldbysuchMemberatsuchtimedividedbythetotalnumberofUnitsissuedatsuchtime.
“Person”meansanyindividual,corporation,association,partnership(generalorlimited),jointventure,trust,estate,limitedliabilitycompanyorotherlegalentityororganization.
“Pre-EmptiveRightsExercisePeriod”shallhavethemeaningsetforthinSection7.2(c).
“PurchaseAgreement”shallhavethemeaningsetforthintherecitalstothisAgreement.
“RegulatoryAllocations”shallhavethemeaningsetforthinSection8.2(g).
“RemainingInterests”shallhavethemeaningsetforthintherecitalstothisAgreement.
“Representatives”shallhavethemeaningsetforthinSection4.6(a).
“SecondAmendedandRestatedAgreement”shallhavethemeaningsetforthintherecitalstothisAgreement.
“SecuritiesAct”meanstheSecuritiesActof1933,asamendedfromtimetotime.
“Subsidiary”means,withrespecttoanyPerson,anycorporation,limitedliabilitycompany,partnershiporotherlegalentityofwhichsuchPerson(eitheraloneorthroughortogetherwithanyotherSubsidiary)(a)owns,directlyorindirectly,fiftypercent(50%)ormoreofthestock,limitedliabilitycompanyinterests,partnershipinterestsorotherequityinterestswhicharegenerallyentitledtovotefortheelectionofthedirectors,managersorothergoverningbodyofsuchcorporation,limitedliabilitycompany,partnershiporotherlegalentityor(b)possesses,directlyorindirectly,controloverthedirectionofmanagementorpoliciesofsuchcorporation,limitedliabilitycompany,partnershiporotherlegalentity(whetherthroughownershipofvotingsecurities,byagreementorotherwise).
“Tax-AuthorityNotice”shallhavethemeaningsetforthinSection10.2(b).
“TaxMattersRepresentative”shallhavethemeaningsetforthinSection10.2(b).
“ThirdAmendedandRestatedAgreement”shallhavethemeaningsetforthintherecitalstothisAgreement.
“ThirdCoastMidstream”shallhavethemeaningsetforthintherecitalstothisAgreement.
“Third-PartyPurchaser”meansaPersonwho,inabonafide,arms-lengthtransaction,purchasesoracquiresoneormoreUnitsinexchangeforvaluableconsiderationandisnot,immediatelypriortoanyproposedTransfer,(a)aMember,(b)anAffiliateofaMemberor(c)thecollateralagentforthesecuredpartiesunderanyFinancingAgreementTransactionDocumentswhoisreceivingaTransferofUnitspursuanttoSection12.2(b).
“Transfer”meansasale,pledge,assignment,hypothecation,transferordisposition,ortheactofsodoing,asthecontextrequires.
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“TransferredInterests”shallhavethemeaningsetforthintherecitalstothisAgreement.
“TreasuryRegulations”meanstheRegulationsoftheTreasuryDepartmentoftheUnitedStatesissuedpursuanttotheCode.
“Units”shallhavethemeaningsetforthinSection7.1.
ARTICLEII.FORMATIONOFTHECOMPANY
Section2.1Formation.OnAugust20,2009,theCertificatewasfiledintheofficeoftheSecretaryofStateoftheStateofDelawareinaccordancewiththeDelawareAct.Effectiveasofthedateandtimeofsuchfiling,theCompanyhasbeenformedasalimitedliabilitycompanyundertheDelawareAct.
Section2.2CompanyName.ThenameoftheCompanyisThirdCoastMidstreamHoldings,LLC.ThebusinessoftheCompanymaybeconductedundersuchothernamesastheManagingMembermayfromtimetotimedesignate;provided,thattheCompanycomplieswithallrelevantstatelawsrelatingtotheuseoffictitiousandassumednames.
Section2.3TermofCompany.TheCompany’sexistencecommenceduponthefilingoftheCertificateintheofficeoftheSecretaryofStateoftheStateofDelaware,andtheCompany’sexistenceshallcontinueunlessanduntildissolvedasprovidedinArticleXIII.
Section2.4RegisteredAgentandOffice.TheCompany’sregisteredagentandofficeintheStateofDelawareshallbeTheCorporationTrustCompany,1209OrangeStreet,Wilmington,Delaware,19801.TheManagingMembermaydesignateanotherregisteredagentand/orregisteredofficefromtimetotimeinaccordancewiththethen-applicableprovisionsoftheDelawareActandanyotherapplicablelaws.
Section2.5PrincipalPlaceofBusiness.TheprincipalplaceofbusinessoftheCompanyshallbelocatedatc/oArcLightCapitalPartners,LLC,200ClarendonStreet,55thFloor,Boston,Massachusetts02116.ThelocationoftheCompany’sprincipalplaceofbusinessmaybechangedbytheManagingMemberfromtimetotimeinaccordancewiththethen-applicableprovisionsoftheDelawareActandanyotherapplicablelaws.
Section2.6FiscalYearTaxableYear.ThefiscalyearoftheCompanyforfinancialaccountingpurposesshallendonDecember31.ThetaxableyearoftheCompanyforU.S.federal,stateandlocalincometaxpurposesshallendonDecember31orsuchotherdateasmayberequiredbytheCode.
ARTICLEIII.PURPOSEANDPOWERSOFTHECOMPANY
Section3.1Purpose.ThepurposesoftheCompanyare(a)theownership,operation,management,financing,acquisitionanddivestitureofnaturalgasgathering,conditioning,processingandtransportationassetsandothermidstreampropertiesand(b)anyotherbusinessoractivitythatmaybelawfullyconductedbyalimitedliabilitycompanyorganizedundertheDelawareAct.Anyoralloftheforegoingactivitiesmaybeconducted,subjecttothetermsofthisAgreement,directlybytheCompanyorindirectlythroughanotherPerson.
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Section3.2PowersoftheCompany.TheCompanyshallhavethepowerandauthoritytotakeanyandallactionsthatarenecessary,appropriate,advisable,convenientorincidentaltoorforthefurtheranceofthepurposessetforthinSection3.1.
Section3.3CertainTaxMatters.TheMembersintendthattheCompanyshallbetreatedasapartnershipforfederaland,ifapplicable,stateandlocalincometaxpurposes,andeachMembershallfilealltaxreturnsandshallotherwisetakealltaxandfinancialreportingpositionsinamannerconsistentwithsuchtreatmentunlessotherwiserequiredbyapplicablelaw.TheCompanyshallnotelect,andtheManagingMembershallnotpermittheCompanytoelect,tobetreatedasanassociationtaxableasacorporationforU.S.federal,stateorlocalincometaxpurposesunderTreasuryRegulationsSection301.7701-3orunderanycorrespondingprovisionofstateorlocallaw,andtheCompanyandtheManagingMembershallnotpermittheregistrationorlistingofinterestsintheCompanyonan“establishedsecuritiesmarket”ora“secondarymarket”orthesubstantialequivalentthereof,assuchtermsareusedinTreasuryRegulationsSection1.7704-1.
ARTICLEIV.MEMBERS
Section4.1PowersofMembers.TheMembersshallhavethepowertoexerciseanyandallrightsandpowersgrantedtotheMemberspursuanttotheexpresstermsofthisAgreement.TheapprovalorconsentoftheMembersshallnotberequiredinordertoauthorizethetakingofanyactionbytheCompany,andtheNon-ManagingMembersshallhavenorighttoreject,overturn,override,vetoorotherwiseapproveorpassjudgmentuponanyactiontakenbytheManagingMemberoranauthorizedofficeroftheCompany,unlessandthenonlytotheextentthat(a)thisAgreementshallexpresslyprovidetherefor,(b)suchapprovalorconsentshallberequiredbynon-waivableprovisionsoftheDelawareActor(c)theManagingMembershallhavedeterminedinitssolediscretionthatobtainingsuchapprovalorconsentwouldbeappropriateordesirable.TheNon-ManagingMembers,intheirrespectivecapacitiesasMembers,shallhavenopowertobindtheCompany.
Section4.2VotingandEconomicRightsofMembers.EachMemberwillhavevotingrightswithrespecttothenumberofUnitsownedbysuchMemberasprovidedinSection4.3(d)andshallhavetherightswithrespecttoprofitsandlossesoftheCompanyanddistributionsfromtheCompanyasaresetforthherein.
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Section4.3MeetingsofMembers.
(a)Meetings;NoticeofMeetings.MeetingsoftheMembersshallbeheldonasemi-annualbasisonadateandatatimedesignatedbytheManagingMember.Additionally,specialmeetingsoftheMembersmaybecalledbytheManagingMemberfromtimetotimebydeliveringwrittennoticeofsuchmeeting.NoticeofanymeetingoftheMembersshallbegiventoallNon-ManagingMembersnotlessthanfivenormorethan30BusinessDayspriortothedateofsuchmeetingandshallstatethelocation,dateandhourofthemeetingand,withrespecttoanyspecialmeetingsoftheMembers,thenatureofthebusinesstobetransacted.Meetingsshallbeheldatthelocation(withinorwithouttheStateofDelaware)atthedateandhoursetforthinthenoticeofthemeeting.
(b)WaiverofNotice.NonoticeofanymeetingofMembersneedbegiventoanyMemberwhosubmitsasignedwaiverofnotice,whetherbeforeorafterthemeeting.Neitherthebusinesstobetransactedat,northepurposeof,anymeetingoftheMembersneedbespecifiedinawrittenwaiverofnotice.TheattendanceofanyMemberatameetingofMembersshallconstituteawaiverofnoticeofsuchmeeting,exceptwhentheMemberattendsameetingfortheexpresspurposeofobjecting,atthebeginningofthemeeting,tothetransactionofanybusinessonthegroundthatthemeetinghasnotbeenlawfullycalledorconvened.
(c)Quorum.ExceptasotherwiserequiredbyapplicablelaworbytheCertificate,thepresenceinpersonorbyproxyoftheownersofrecordofaMajority-in-InterestshallconstituteaquorumforthetransactionofbusinessatameetingofMembers.
(d)Voting.IftheManagingMemberhasfixedarecorddate,everyMembershallbeentitledtosuchnumberofvotesasisequaltotheOwnershipPercentageofsuchMemberatthecloseofbusinessonsuchrecorddate.Ifnorecorddatehasbeensofixed,theneveryMembershallbeentitledtosuchnumberofvotesasisequaltotheOwnershipPercentageofsuchMemberonthecloseofbusinessonthedayprecedingthedayonwhichnoticeofthemeetingisgivenorthefirstconsentinrespectoftheapplicableactionisexecutedanddeliveredtotheCompany,or,ifnoticeiswaived,atthecloseofbusinessonthedayprecedingthedayonwhichthemeetingisheld.ExceptasotherwiserequiredbyapplicablelawortheCertificate,thevoteofaMajority-in-Interestatanymeetingatwhichaquorumispresentshallbesufficientforthetransactionofanybusinessatsuchmeeting.
(e)Proxies.EachMembermayauthorizeanyPersontoactforsuchMemberbyproxyonallmattersinwhichaMemberisentitledtoparticipate,includingwaivingnoticeofanymeeting,orvotingorparticipatingatameeting.EveryproxymustbesignedbytheMemberorsuchMember’sattorney-in-fact.Noproxyshallbevalidaftertheexpirationofthreeyearsfromthedatethereofunlessotherwiseprovidedintheproxy.EveryproxyshallberevocableatthepleasureoftheMemberexecutingitunlessotherwiseprovidedinsuchproxy;provided,thatsuchrighttorevocationshallnotinvalidateorotherwiseaffectactionstakenundersuchproxypriortosuchrevocation.
(f)Organization.EachmeetingofMembersshallbeconductedbysuchPersonastheManagingMembermaydesignate.
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(g)ElectronicCommunications(Members).MembersmayparticipateinanymeetingoftheMembersbymeansofconferencetelephoneorsimilarcommunicationsequipmentoverwhichallpersonsparticipatinginthemeetingcanheareachother,andsuchparticipationinameetingshallbedeemedtoconstitutepresenceinpersonatthemeeting.
(h)ActionwithoutaMeeting(Members).UnlessotherwiseprovidedinthisAgreement,anyactionthatmaybetakenatanymeetingoftheMembersmaybetakenwithoutameeting,withoutpriornoticeandwithoutavote,ifaconsentinwriting,settingforththeactionsotaken,shallbesignedbythenumberofMembersnecessarytotakesuchactioninaccordancewiththetermsofthisAgreement.AcopyoftheactiontakenbywrittenconsentshallbefiledwiththerecordsoftheCompany.
Section4.4BusinessTransactionsofaMemberwiththeCompany.
(a)Generally.AMember(oranAffiliatethereof)maylendmoneyto,borrowmoneyfrom,actassuretyorendorserfor,guaranteeorassumeoneormorespecificobligationsof,providecollateralforortransactanyotherbusinesswiththeCompanyoranyofitsSubsidiaries.
(b)ProvisionofCreditSupporttoBenefitCompany.TotheextenttheManagingMemberdeterminesthatitisnecessaryordesirablefortheCompanytopostlettersofcreditortoprovideguarantiesorotherformsofcreditsupportassecurityforcontingentobligationstothirdpartiesarisingunderanydebtfinancing,swap,cap,floor,collarorotherhedgingarrangementsorsimilarfinancialtransactionsorinordertosecuretheperformanceoftheCompanyoranyofitsSubsidiariesunderanycontract(collectively,“CompanyCreditSupport”),thentheManagingMembermaypostorprovideanyCompanyCreditSupportonbehalforforthebenefitoftheCompany.IntheeventthattheManagingMemberprovidessuchCompanyCreditSupport,theCompanyshallpaytotheManagingMemberonthelastdayofeachcalendarquarter,afeeinanamountequalto12.99%perannumonthemaximumundrawnamountofeachitemofCompanyCreditSupportduringsuchquarter.SubjecttothelastsentenceofthisSection4.4(b),theMembersshallbedeemedtohavemadeanAdditionalCapitalContributionforallpurposesunderthisAgreement,includingthecreditingofamountstoCapitalAccounts,onaproratabasisinaccordancewiththeirrespectiveOwnershipPercentagesintheeventthatanyCompanyCreditSupportposted,providedorotherwiseprocuredbytheManagingMemberpursuanttothisSection4.4(b)isdrawn.EachNon-ManagingMemberherebyagreestopaytheManagingMemberanamountequaltosuchNon-ManagingMember’sproratashareofanyAdditionalCapitalContributiondeemedmadepursuanttothisSection4.4(b)promptlyfollowingthemakingofsuchAdditionalCapitalContribution.IfanysuchNon-ManagingMemberfailstorepaytheManagingMembersuchNon-ManagingMember’sproratashareofanyAdditionalCapitalContributiondeemedmadepursuanttothisSection4.4(b)withinten(10)BusinessDaysfollowingnotificationtosuchNon-ManagingMemberbytheManagingMemberofthemakingofsuchdeemedAdditionalCapitalContribution(theNon-ManagingMemberfailingtomakesuchrepayment,the“CreditSupportNon-ContributingMember”),theMembersandtheCompanyshalltreattheCreditSupportNon-ContributingMember’sdeemedAdditionalCapitalContributionnotasanAdditionalCapitalContributionbysuchCreditSupportNon-ContributingMemberinexchangefortheissuanceofUnitsbutinsteadasanAdditionalCapitalContributionbytheManagingMemberonthedatedeemedmadeforallpurposesunderthisAgreement,includingthecreditingofamountstoCapitalAccounts.
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(c)AdvancesbyManagingMember.
(i)IftheCompanyrequiresadditionalfundsforthebusinessoroperationsoftheCompanyoranyofitsSubsidiariesand,subjecttothisSection4.4(c)(i),theManagingMemberdetermines(A)thataMemberLoanisnecessaryoradvisabletoadvancesuchrequiredfundstotheCompanyand(B)theamountofthefundsrequired,thentheManagingMembermay(butshallhavenoobligationto)advancetherequiredfunds,eachofwhichadvanceshall(w)constitutealoanfromtheManagingMembertotheCompany,(x)bearinterestatarateof12.99%perannum,(y)notbedeemedtobeaCapitalContributionbytheManagingMembertotheCompanyand(z)notbeconvertibleintoUnits(eachsuchloan,a“MemberLoan”);provided,thatpromptlyafterthefundingofsuchMemberLoan,theManagingMembershalloffertoeachNon-ManagingMembertherighttopurchase,atparvalue,suchNon-ManagingMember’sOwnershipPercentageofsuchMemberLoan.
(ii)RepaymentsofMemberLoansshallbemade:(A)first,onaproratabasistopayaccruedinteresttothedateofsuchpaymentonalloutstandingMemberLoansand(B)second,onaproratabasistopayprincipaldueandpayableonalloutstandingMemberLoans.Fortheavoidanceofdoubt,anyMemberLoanshallbeacontractualobligationoftheCompanyandamountspayabletotheManagingMemberthereundershallreduceDistributableAmountsinaccordancewiththedefinitionthereof.
Section4.5NoCessationofMembershipuponBankruptcy.APersonshallnotceasetobeaMemberoftheCompanyuponthehappening,withrespecttosuchPerson,ofanyoftheeventsspecifiedinSection18-304oftheDelawareAct.
Section4.6Confidentiality.
(a)EachMembershallmaintain,andshallcauseitsAffiliates(otherthantheCompanyanditsSubsidiariesinrespectofConfidentialInformationofsuchPersons)tomaintain,theconfidentialityofallConfidentialInformationwithrespecttotheCompany,theotherMembersandtheirrespectiveAffiliates,andthebusinessandassetsoftheCompany;provided,however,thatanyMembermaydisclosesuchConfidentialInformation(i)inanyjudicialoralternativedisputeresolutionproceedingtoresolvedisputesbetweentheCompanyandanyMemberarisinghereunder;(ii)totheextentdisclosureislegallyrequiredunderapplicablelaws(includingapplicablesecuritiesandtaxlaws)oranyagreementtowhichtheCompanyisapartyorbywhichitisboundsolongaspriortomakinganylegally-requireddisclosuresinanyjudicial,regulatoryordisputeresolutionproceeding,thatMembershall,ifsoadvisedbycounsel,seekaprotectiveorderorotherrelieftopreventorreducethescopeofsuchdisclosure;(iii)totheCompany’sthen-existingorpotentiallenders(andanytrusteeoragentactingonsuchlenders’behalf),investors,jointinterestowners,purchasersorotherpartieswithwhomtheCompanymayenterintocontractualrelationships,solongassuchThirdPartiesagreetomaintaintheconfidentialityoftheConfidentialInformationsodisclosed;(iv)tosuchMember’sanditsAffiliates’respectiveequityholders,managers,officers,directors,trustees,lenders,partners,employees,agents,accountants,representativesandprofessionalconsultants(“Representatives”)onaneed-to-know-basis(whichmayincludeprovidingreportstosuchMember’sequityholdersorAffiliatesintheordinarycourseofbusiness)solongassuchRepresentativesagreetomaintaintheconfidentialityoftheConfidentialInformationsodisclosed;or(v)ifauthorizedbytheManagingMember.
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(b)TheprovisionsofthisSection4.6shallsurvivetheterminationoftheCompany.
(c)ForpurposesofthisSection4.6,“ConfidentialInformation”shallmeananyandallconfidentialandproprietaryinformationandtradesecretsoftheCompanyortheMembersortheirrespectiveAffiliates,including(i)anyfinancial,commercial,technicalorotherinformation;(ii)anyinformationpertainingtothebusiness,affairsandstrategiesoftheCompany,theMembersortheirrespectiveAffiliates;(iii)anyinformationorknowledgepertainingtoanyexistingprojectsorprojectsindevelopment;(iv)theidentityofandanyinformationpertainingtoanypersonorentitywithwhichtheCompany,theMembersortheirrespectiveAffiliateshaveabusinessrelationshiporprospectivebusinessrelationship;(v)theterms,conditionsandpricesofanycontractbetweentheCompanyandanyotherparty;(vi)informationpertainingtoemployees,contractorsandtheindustrynotgenerallyknowntothepublic;(vii)books,records,concepts,products,formulae,specifications,designs,processes,inventions,discoveries,technologies,trademarks,patentsandknow-how;and(viii)thetermsandprovisionsofthisAgreement.
(d)WithrespecttoeachMember,therestrictionssetforthinthisSection4.6shallnotapplytoinformationthat(i)is,orafterthedateofthisAgreement,becomesgenerallyavailabletothepublic,otherthanthroughthewrongfulactofanyPerson,(ii)afterthedateofthisAgreement,iscommunicatedtosuchMemberinanon-confidentialmannerbyathirdpartywithoutanybreachofthisSection4.6orbreachofanyconfidentialityobligationsofsuchthirdpartytotheCompanyor(iii)wasorisalreadyinthepossessionofsuchMemberatthetimeofitsdisclosurebytheCompanybutonlyifsuchMembercameintopossessionofsuchinformationthroughmeansotherthanthatwhichwouldconstituteabreachofthisSection4.6orabreachoftheconfidentialityobligationsofanythirdpartytotheCompanydisclosingsuchinformation.
Section4.7OtherBusinessforMembers.AnyMemberorAffiliatethereofmayengageinorpossessaninterestinotherbusinessventuresofanynatureordescription,independentlyorwithoronbehalfofothers,similarordissimilartothebusinessoftheCompanyoranyofitsSubsidiaries,andtheCompanyandtheMembersshallhavenorightsbyvirtueofthisAgreementinandtosuchindependentventuresortheincomeorprofitsderivedtherefrom,andthepursuitofanysuchventure,evenifcompetitivewiththebusinessoftheCompanyoranyofitsSubsidiaries,shallnotbedeemedwrongfulorimproper.NoMembernoritsrespectiveAffiliateswillbeobligatedtopresentanyparticularinvestmentopportunitytotheCompany,evenifsuchopportunityisofacharacterthat,ifpresentedtotheCompany,couldbetakenbytheCompanyoranyofitsSubsidiaries.Furthermore,eachMemberandeachofitsrespectiveAffiliatesshallhavetherighttotakeforsuchPerson’sownaccount(individuallyorasapartnerorfiduciary)ortorecommendtoothersanysuchparticularinvestmentopportunitywithoutliabilitytotheCompanyoranyotherMember.
Section4.8Financing.TheNon-ManagingMembersrecognizethattheManagingMembermaycreate,incur,assumeormateriallymodifythetermsofanyindebtednessoftheCompanypursuanttoanyFinancingAgreementTransactionDocuments,andeachNon-ManagingMemberherebyagreestocooperatewiththereasonablerequestsoftheManagingMemberinconnectiontherewith.
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ARTICLEV.MANAGEMENT
Section5.1ManagingMember.ThebusinessandaffairsoftheCompanyshallbemanagedbyorunderthedirectionoftheManagingMember.TheManagingMembershallhavefull,exclusiveandcompletediscretiontomanageandcontrolthebusinessandaffairsoftheCompanyanditsSubsidiaries,tomakealldecisionsaffectingthebusinessandaffairsoftheCompanyanditsSubsidiariesandtotakeallsuchactionsasitdeemsnecessaryorappropriatetoaccomplishthepurposesoftheCompanyassetforthherein,includingtotakeanyofthefollowingactionswithrespecttotheCompanyoritsSubsidiaries(includingbytheexerciseofanymanagement,votingorapprovalrightsassociatedwithequityinterestsheldbytheCompanyinThirdCoastMidstream):
(a)enterintoanyconsolidation,conversion,mergerorotherbusinesscombination;
(b)enterinto,assume,amend,materiallymodifyorterminateanycontract,agreementorundertakingforthefinancing,operationorownershipoftheassetsoftheCompanyoranyofitsSubsidiaries;
(c)acquire,holdanddisposeofassets;
(d)amendormodifytheorganizationaldocumentsofanySubsidiary;
(e)create,incur,assume,amendormateriallymodifythetermsofanyindebtednessoftheCompanyoranyofitsSubsidiaries;
(f)mortgageorencumberassetsoftheCompanyoranyofitsSubsidiaries;
(g)appoint,removeandreplaceofficersordirectorsoftheCompanyoranyofitsSubsidiaries;
(h)declareandmakedistributionsascontemplatedherein;
(i)authorizeandissueUnitsorotherequityinterestsintheCompanyoranyofitsSubsidiaries;and
(j)exerciseallpowersoftheCompanysetforthinSection3.2.
Section5.2CompensationofManagingMember.TheManagingMembershallbereimbursedforalloftheexpensesitreasonablyincursinconnectionwithitsserviceastheManagingMember.
Section5.3ManagingMemberas“Manager”.TheManagingMemberisherebydesignatedasa“manager”(withinthemeaningoftheDelawareAct)oftheCompany.
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Section5.4Officers.TheManagingMembermayappoint,fromtimetotime,officersandagentstoactfortheCompany(each,an“Officer”)withsuchtitles(includingPresident,VicePresident,SecretaryandTreasurer),ifany,astheManagingMemberdeemsappropriateanddelegatetotheOfficerssuchpowersandauthorityastheManagingMembermaydetermineinitssolediscretion.AnydelegationpursuanttothisSection5.4mayberevokedatanytimebytheManagingMember.AnyOfficermayberemovedwithorwithoutcausebytheManagingMember,exceptasotherwiseprovidedinanyservicesoremploymentagreementbetweensuchOfficerandtheCompanyoranySubsidiaryoftheCompanythatemployssuchindividual(asanemployee,consultantorotherwise).TheOfficersoftheCompanyasoftheEffectiveDateareassetforthonExhibitBattachedheretoandshallhavesuchresponsibilitiesasexpresslydelegatedhereintoOfficers.
ARTICLEVI.REPRESENTATIONSANDWARRANTIES
Section6.1RepresentationsandWarrantiesoftheMembers.EachMemberherebyrepresentsandwarrantstoeachotherMemberasfollows:
(a)Existence.ForeachMemberthatisnotanaturalperson,suchMemberisdulyandvalidlyformed,isexistingandingoodstandingunderthelawsofthestateofitsformationandhasallrequisitepowerandauthoritytoenterintoandperformitsobligationsunderthisAgreement.SuchMemberisdulyqualifiedorlicensedtodobusinessineachjurisdictionwherethefailuretodulyqualifyorbecomelicensedwouldadverselyaffectsuchMember’sabilitytoperformitsobligationsunderthisAgreement.
(b)Authorization.ForeachMemberthatisnotanaturalperson,theexecution,deliveryandperformancebysuchMemberofthisAgreementandtheconsummationofthetransactionscontemplatedherebyhavebeendulyandvalidlyauthorizedbyallnecessaryactiononthepartofsuchMember,nootheractiononthepartofsuchMemberoritsshareholdersormembers,ifany,beingnecessary.ForeachMemberthatisanaturalperson,suchMemberhasfullpowerandauthoritytoexecute,deliverandperformthisAgreementandtoconsummatethetransactionscontemplatedhereby.
(c)Enforceability.ThisAgreementconstitutesthelegal,validandbindingobligationsofsuchMemberenforceableagainstsuchMemberinaccordancewithitsterms,exceptassuchenforceabilitymaybelimitedbybankruptcy,insolvency,reorganization,arrangement,moratoriumorothersimilarlaws,noworhereafterineffect,relatingtooraffectingtherightsofcreditorsgenerally,orbygeneralequitableprinciples.
(d)ConsentsandApprovals.Noconsentorapprovalby,filingwithornoticetoanyPersonisrequiredonthepartofsuchMemberforthevalidexecutionanddeliveryofthisAgreementandtheperformanceofitsobligationshereunder.
(e)NoViolation.SuchMember’sexecutionanddeliveryofthisAgreementandperformanceofitsobligationshereunderdonotandwillnot(i)withrespecttoeachMemberthatisnotanaturalperson,violateorconflictwiththeorganizationaldocumentsofsuchMember;(ii)violateorconflictwithanylaw,regulationororderofanycourtorotherGovernmental
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Authoritywhichisbindingon(A)suchMemberoranyAffiliateofsuchMemberor(B)assetsofsuchMemberoranyAffiliateofsuchMember;or(iii)violateorresultinadefaultunderorresultintheterminationoraccelerationof(withorwithoutthegivingofnotice,thepassageoftimeorboth)anyobligationunderanycontracttowhichsuchMemberoranyAffiliateofsuchMemberispartyorbywhichanysuchPersonoranysuchPerson’sassetsarebound.
(f)InvestmentPurpose.SuchMemberisacquiringUnits(i)forsuchMember’sownaccountandnotdirectlyorindirectlyfortheaccountofanyotherPersonand(ii)forinvestmentandnotwithaviewtotheirsaleordistribution.SuchMemberunderstandsthattheUnitshavenotbeenregisteredundertheSecuritiesActandmayberesoldonlyifregisteredpursuanttotheprovisionsoftheSecuritiesActorifanexemptionfromregistrationisavailable.SuchMemberunderstandsthatnopublicmarketnowexistsfortheUnitsandthatitisunlikelythatapublicmarketwilleverexistfortheUnits.SuchMemberunderstandsthathis,heroritsinvestmentintheCompanyrepresentedbyUnitsishighlyspeculativeinnatureandissubjecttoahighdegreeofriskofloss,inwholeorinpart.
(g)ExperienceandAccreditedInvestor.
(i)SuchMember(A)isanexperiencedandsophisticatedinvestor,(B)either(x)hassuchknowledge,experienceandskillwithsecuritiesandinfinancialandbusinessmattersasarenecessarytoevaluatethemeritsandrisksofhis,heroritsinvestmentintheCompanyandinvolvementintheCompany’sbusinessandtoprotecthis,heroritsowninterestinconnectionwiththeacquisitionofhis,heroritsportionoftheUnitsor(y)hasapre-existingrelationshipwiththeManagingMemberoroneormoreOfficersconsistingofpersonalorbusinesscontactsofanatureanddurationwhichenablesuchMembertobeawareofthecharacter,businessacumenandgeneralbusinessandfinancialcircumstancesoftheCompany,theManagingMemberortheOfficerwithwhomsuchrelationshipexistsand(C)iscapableofbearingtheeconomicriskofhis,heroritsinvestmentintheCompanyandinvolvementintheCompany’sbusiness.
(ii)SuchMemberisan“accreditedinvestor”withinthemeaningofSecuritiesandExchangeCommissionRule501ofRegulationDundertheSecuritiesAct,ortheissuanceofUnitstosuchMemberisotherwiseexemptfromregistrationrequirementsundertheSecuritiesActorapplicablestateblueskyorsimilarsecuritieslaws.
(h)InvestigationandDiligence.EachMemberhasconductedhis,heroritsownindependentinvestigation,examinationandanalysisoftheprospectsoftheCompany,includingitsbusiness,operations,assets,liabilitiesandfinancialcondition,andthetermsandconditionsofthetransactionscontemplatedbythisAgreementandacknowledgesthatsuchMemberhasbeenprovidedaccesstopersonnel,informationandrecordsashe,sheoritdeemsnecessaryinconnectionwithsuchinvestigation,examinationandanalysisandtootherwisemakeafully-informeddecisionastoinvestmentintheCompanyandinvolvementintheCompany’sbusiness.SuchMemberacceptstheUnitsandhis,heroritsrightsandobligationsasaMemberbaseduponhis,heroritsowninvestigation,examinationandanalysiswithrespecttheretoastoallmattersandwithoutrelianceuponanyexpressorimpliedrepresentationsorwarrantiesofanynaturemadebyoronbehalfoforimputedtoanyotherMemberortheCompany,allexceptasexpresslysetforthherein.
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Section6.2LIMITATIONOFWARRANTIES.EACHMEMBERAGREESTHATEXCEPTFORTHEREPRESENTATIONSANDWARRANTIESEXPRESSLYSETFORTHINTHISARTICLEVI,NOMEMBERMAKESANYREPRESENTATIONORWARRANTYWHATSOEVER,WHETHEREXPRESSORIMPLIED,ATEQUITY,COMMONLAW,BYSTATUTEOROTHERWISE.EACHMEMBEREXPRESSLYDISCLAIMSANDNEGATESANYREPRESENTATIONORWARRANTY,WHETHEREXPRESSORIMPLIED,ATEQUITY,COMMONLAW,BYSTATUTEOROTHERWISE,OTHERTHANTHOSESETFORTHINTHISARTICLEVI.
ARTICLEVII.CAPITAL
Section7.1Units.TheCompanyshallhaveoneclassofUnits,whichshallbeuncertificatedanddenominatedandreferredtohereinas“Units”.EachUnitshall(a)givetheMemberwhoistheownerthereoftherighttoreceivedistributions(liquidatingorotherwise)inaccordancewithSection9.1andasotherwisespecifiedherein,(b)givetheMemberwhoistheownerthereofthevotingandotherrightswithrespecttosuchUnitasspecifiedherein,(c)haveadesignatedvalueequaltotheAdditionalMembershipUnitPrice(orinthecaseofafractionalUnit,avalueproportionaltosuchamount)and(d)beissuedforCapitalContributions.
Section7.2IssuanceofUnits.
(a)AsoftheEffectiveDate,thelimitedliabilitycompanyinterestsoftheCompanypreviouslyheldbyeachMembershallbedeemedexchangedforthelimitedliabilitycompanyinterestsoftheCompanyassetforthnexttosuchMember’snameonExhibitAattachedhereto.
(b)FromtimetotimeaftertheEffectiveDate,theCompanyisauthorizedto,andshall,acceptAdditionalCapitalContributionsmadeinaccordancewiththisAgreementinexchangefortheissuanceofUnitsasprovidedherein.
(c)FromtimetotimeaftertheEffectiveDate,theCompanyisauthorizedtoissueandsellnewUnitsonthetermsprovidedinSection7.1,Section7.5andsuchothertermsandinsuchamountsastheManagingMembermaydetermine.EachMembershallhavetherighttopurchaseitsproratashareinproportiontoitsOwnershipPercentageofnewUnitstobeissuedandsoldinaccordancewiththisSection7.2(c).IntheeventtheCompanyproposestoissueandsellnewUnitsinaccordancewiththisSection7.2(c),itshallprovidewrittennoticetoeachMember,andeachMembershallhave30calendardaysafterreceiptofsuchnotice(suchperiod,the“Pre-EmptiveRightsExercisePeriod”)toexerciseitsrighttopurchaseitsproratashareofsuchnewUnits;provided,however,thattheManagingMembermayelecttopurchaseallsuchnewUnitsimmediatelyfollowingitsreceiptofsuchnoticefromtheCompany.IntheeventtheManagingMemberpurchasesallsuchnewUnitsinaccordancewiththeprecedingsentence,eachNon-ManagingMembershallhavetheright,duringthePre-EmptiveRightsExercisePeriod,topurchaseitsproratashareofsuchnewUnitsfromtheManagingMember,atthesamepriceasthe
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ManagingMemberpaidforsuchnewUnits,uponatleast10BusinessDays’priorwrittennoticetotheManagingMember,andsuchpurchaseshallnotbedeemeda“Transfer”hereunderandshallbetreatedforallpurposesasiftherelevantNon-ManagingMemberpurchasedtherelevantUnitsfromtheCompanyinanexerciseofitspreemptiverightspursuanttothisSection7.2(c).AnyhighervaluationorotherformsofpromoteraisedfromasaleofnewUnitstoaThird-PartyPurchasershallbeforthebenefitofeachMemberinproportiontoitsOwnershipPercentageimmediatelypriortotheissuanceandsaleofnewUnitstosuchThird-PartyPurchaser.
(d)ExhibitAsetsforththeUnitsownedbyeachMemberasoftheEffectiveDateandshallberevisedbytheOfficersasnecessarytoreflectchangesandadjustmentsresultingfromtheissuance,redemptionoranyTransferofUnitsmadeinaccordancewiththetermsofthisAgreement;provided,thatafailuretoreflectanysuchissuance,redemptionoranyTransferonExhibitAshallnotpreventanysuchissuance,redemptionoranyTransferfrombeingeffective.
Section7.3CapitalAccounts.Acapitalaccount(“CapitalAccount”)shallbeestablishedforeachMemberandshallbemaintainedasprovidedinthisArticleVIIandArticleVIII.Nolaterthan60daysaftertheendofeachcalendarquarter,theOfficersshallprepareastatementoftheCapitalAccountbalancesoftheMembersasoftheendofsuchcalendarquarter.
Section7.4CapitalAccountAdjustments.AsoftheendofeachAccountingPeriod,thebalanceineachMember’sCapitalAccountshallbeadjustedby(a)increasingsuchbalancebysuchMember’s(i)allocableshareofNetProfit(allocatedinaccordancewithArticleVIII)orotherincomeandgainallocatedinaccordancewiththisAgreement,(ii)theamountofcashandtheGrossAssetValueofanyproperty(asofthedateofthecontributionthereofandnetofanyliabilitiesencumberingsuchproperty)contributedtotheCompanyduringsuchAccountingPeriod,ifany,and(iii)thenetamountofanyCompanyliabilitiesthatareassumedbysuchMemberorthataresecuredbyanyCompanyassetsdistributedtosuchMemberand(b)decreasingsuchbalanceby(i)theamountofcashandtheGrossAssetValueofanyproperty(asofthedateofthedistributionthereofandnetofanyliabilitiesencumberingsuchproperty)distributedtosuchMemberduringsuchAccountingPeriod,(ii)suchMember’sallocableshareofNetLoss(allocatedinaccordancewithArticleVIII)orotherlossanddeductionallocatedinaccordancewiththisAgreementand(iii)thenetamountofanyliabilitiesofsuchMemberthatareassumedbytheCompanyorthataresecuredbyanypropertycontributedbysuchMembertotheCompany.TheprovisionsofthisAgreementrelatingtothemaintenanceofCapitalAccountsareintendedtocomplywithTreasuryRegulationsSections1.704-1(b)and1.704-2andshallbeinterpretedandappliedinamannerconsistentwithsuchTreasuryRegulations.Inaddition,theCapitalAccountsshallbeincreasedordecreaseduponarevaluationofCompanypropertypursuanttoclause(b)ofthedefinitionofGrossAssetValueinthemannerprescribedinTreasuryRegulationsSection1.704-1(b)(2)(iv)(f).IndeterminingtheamountofanyliabilityforpurposesofthisSection7.4,thereshallbetakenintoaccountSection752oftheCodeandanyotherapplicableprovisionsoftheCodeandtheTreasuryRegulations.NotwithstandinganyprovisiontothecontraryinthisAgreement,incomeandgainoftheCompany,lossanddeductionsoftheCompany,andallotheritemsattributabletoanyUnitsTransferredfortheAccountingPeriodinwhichsuchUnitsareTransferredwillbedividedandallocatedbetween(oramong)theaffectedPersonsbytakingintoaccounttheirvaryinginterestsduringtheperiodinaccordancewithCodeSection706(d),usinganyconventionspermittedbylawandapprovedbytheManagingMemberandthepartiestosuchTransfer.
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Section7.5AdditionalCapitalContributions.
(a)Generally.NoMembershallberequiredtomakeanyAdditionalCapitalContributiontotheCompanyinrespectoftheUnitsthenheldbysuchMemberexcepttotheextentanyMemberagreesinwritingtofundAdditionalCapitalContributions.Exceptasotherwiseprovidedbelow,MembersmakingAdditionalCapitalContributionsunderthisSection7.5shallreceiveinrespectthereofanumberofUnitsdeterminedbydividing(i)theAdditionalCapitalContributionbeingmadebysuchMemberby(ii)theAdditionalMembershipUnitPrice.EachUnitissuedtoaMemberpursuanttothisSection7.5willbedulyauthorizedandvalidlyissuedinaccordancewiththisAgreementandfullypaid(totheextentrequiredbythisAgreement)andnonassessable(exceptassuchnonassessabilitymaybeaffectedbymattersdescribedin§18-607oftheDelawareAct).
(b)ContributionsinKind.WiththeapprovaloftheManagingMember,theMembersmaymakeCapitalContributionsofpropertyinlieuofcash.TheamountofeachsuchAdditionalCapitalContributionshallbethefairmarketvalueofthecontributedpropertyasdeterminedbytheManagingMemberorsuchotheramountasshallbeagreedbytheManagingMemberandthecontributingMember.
(c)NoThird-PartyBeneficiaries.TheprovisionsofthisSection7.5areintendedsolelytobenefittheMembersand,tothefullestextentpermittedbyapplicablelaw,shallnotbeconstruedasconferringanybenefituponanycreditoroftheCompany(andnosuchcreditorshallbeathird-partybeneficiaryofthisAgreement),andnoMembershallhaveanydutyorobligationtoanycreditoroftheCompanytomakeanyAdditionalCapitalContributionsortocausetheManagingMembertoconsenttothemakingofAdditionalCapitalContributions.
Section7.6NegativeCapitalAccounts.Exceptasrequiredbylaw,noMembershallberequiredtomakeupanegativebalanceinitsCapitalAccount.
Section7.7AssigneeCapitalAccounts.TheoriginalCapitalAccountestablishedforanyPersonwhoacquiresUnitsbyvirtueofaTransferinaccordancewiththetermsofthisAgreementshallbeinthesameamountas,andshallreplace,theCapitalAccountoftheassignorofsuchUnits.TotheextentsuchPersonacquireslessthanalloftheUnitsoftheassignor,theinitialCapitalAccountofsuchPersonshallbeinproportiontotheUnitsownedbytheassignorimmediatelybeforesuchTransfer,andtheCapitalAccountoftheassignorwhoretainsanyUnitsshallbereducedcorrespondingly.
ARTICLEVIII.ALLOCATIONS
Section8.1NetProfitandNetLossAllocations.ExceptasotherwiseprovidedinSection8.2,NetProfitorNetLoss,asthecasemaybe,shallbeallocatedfortheAccountingPeriodinwhichtheNetProfitandNetLosswasrecognizedasfollows:NetProfitandNetLoss(andanyitemsthereof)foranytaxableyearshallbeallocatedamongtheMembersinsuchmannerthat,asoftheendofsuchtaxableyear,thesumof(a)theCapitalAccountofeachMember,(b)suchMember’sshareofMinimumGainand(c)suchMember’sMemberNonrecourseDebtMinimumGainshallbeequaltotherespectivenetamountswhichwouldbedistributedtothemunderthisAgreement,determinedasiftheCompanywereto(i)liquidatetheassetsoftheCompanyforanamountequaltotheirGrossAssetValueand(ii)distributetheproceedsofliquidationpursuanttoSection12.2.
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Section8.2RestrictionsonAllocations.NotwithstandinganythinginthisAgreement(includingtheallocationssetforthinSection8.1)tothecontrary,thefollowingspecialallocationsshallbemade:
(a)NonrecourseDeductions.NonrecourseDeductionsforanyAccountingPeriodshallbeallocatedtotheMembersinthesameratioasotherpartnershipitemsunderSection8.1duringsuchAccountingPeriod.
(b)MemberNonrecourseDeductions.MemberNonrecourseDeductionsforanyAccountingPeriodshallbeallocated100%totheMemberthatbearstheEconomicRiskofLosswithrespecttotheMemberNonrecourseDebttowhichsuchMemberNonrecourseDeductionsareattributableinaccordancewithTreasuryRegulationsSection1.704-2(i).IfmorethanoneMemberbearstheEconomicRiskofLosswithrespecttoaMemberNonrecourseDebt,MemberNonrecourseDeductionsattributabletheretoshallbeallocatedbetweenoramongsuchMembersinaccordancewiththeratiosinwhichtheysharesuchEconomicRiskofLoss.ThisSection8.2(b)isintendedtocomplywiththeprovisionsofTreasuryRegulationsSection1.7042(i)andshallbeinterpretedconsistentlytherewith.
(c)CompanyMinimumGainChargeback.NotwithstandinganyotherprovisionofthisAgreement,ifthereisanetdecreaseinMinimumGainduringanyAccountingPeriod,eachMembershallbeallocateditemsofCompanyincomeandgainforsuchAccountingPeriod(and,ifnecessary,subsequentAccountingPeriods)inthemannerandamountsprovidedinTreasuryRegulationsSections1.704-2(f)(6),(g)(2)and(j)(2)(i).ForpurposesofthisSection8.2,eachMember’sCapitalAccountshallbedetermined,andtheallocationofincomeorgainrequiredhereundershallbeeffected,priortotheapplicationofanyotherallocationspursuanttothisArticleVIIIwithrespecttosuchAccountingPeriod.ThisSection8.2(c)isintendedtocomplywiththepartnerminimumgainchargebackrequirementinTreasuryRegulationsSection1.704-2(f)andshallbeinterpretedconsistentlytherewith.
(d)MemberNonrecourseDebtMinimumGainChargeback.NotwithstandingtheotherprovisionsofthisAgreement(otherthanSection8.2(c)above),ifthereisanetdecreaseinMemberNonrecourseDebtMinimumGainduringanyAccountingPeriod,anyMemberwithashareofMemberNonrecourseDebtMinimumGainatthebeginningofsuchAccountingPeriodshallbeallocateditemsofCompanyincomeandgainforsuchAccountingPeriod(and,ifnecessary,subsequentAccountingPeriods)inthemannerandamountsprovidedinTreasuryRegulationsSection1.704-2(i)(4)and(j)(2)(ii).ForpurposesofthisSection8.2,eachMember’sAdjustedCapitalAccountbalanceshallbedetermined,andtheallocationofincomeandgainrequiredhereundershallbeeffected,priortotheapplicationofanyotherallocationspursuanttothisArticleVIII,otherthanSection8.2(c)above,withrespecttosuchAccountingPeriod.ThisSection8.2(d)isintendedtocomplywiththepartnernonrecoursedebtminimumgainchargebackrequirementinTreasuryRegulationsSection1.704-2(i)(4)andshallbeinterpretedconsistentlytherewith.
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(e)QualifiedIncomeOffset.ExceptasprovidedinSection8.2(c)andSection8.2(d)above,intheeventanyMemberunexpectedlyreceivesanadjustment,allocationordistributiondescribedinTreasuryRegulationsSections1.704-1(b)(2)(ii)(d)(4),(5)or(6),itemsofCompanyincomeandgainshallbeallocatedtosuchMemberinanamountandmannersufficienttoeliminate,totheextentrequiredbysuchTreasuryRegulation,thedeficitbalance,ifany,initsAdjustedCapitalAccountcreatedbysuchadjustment,allocationordistributionasquicklyaspossibleunlesssuchdeficitbalanceisotherwiseeliminatedpursuanttoSection8.2(c)orSection8.2(d).ThisSection8.2(e)isintendedtoconstituteaqualifiedincomeoffsetdescribedinTreasuryRegulationsSection1.704-1(b)(2)(ii)(d)andshallbeinterpretedconsistentlytherewith.
(f)GrossIncomeAllocation.IntheeventanyMemberhasadeficitbalanceinitsAdjustedCapitalAccountattheendofanyAccountingPeriod,suchMembershallbeallocateditemsofCompanygrossincomeandgainintheamountofsuchexcessasquicklyaspossible;provided,however,thatanallocationpursuanttothisSection8.2(f)shallbemadeonlyifandtotheextentthatsuchMemberwouldhaveadeficitbalanceinitsAdjustedCapitalAccountafterallotherallocationsprovidedinthisSection8.2(otherthanSection8.2(e))havebeententativelymadeasifSection8.2(e)andthisSection8.2(f)werenotinthisAgreement.
(g)RegulatoryAllocations.TheallocationssetforthinthisSection8.2(the“RegulatoryAllocations”)areintendedtocomplywithcertainrequirementsoftheTreasuryRegulations.ItistheintentoftheMembersthat,totheextentpossible,allRegulatoryAllocationsshallbeoffseteitherwithotherRegulatoryAllocationsorwithspecialallocationsofotheritemsofCompanyincome,gain,lossordeductionpursuanttothisSection8.2(g).Therefore,notwithstandinganyotherprovisionofthisArticleVIII(otherthantheRegulatoryAllocations),butsubjecttotheCodeandtheTreasuryRegulations,theManagingMembershallmakesuchoffsettingspecialallocationsofCompanyincome,gain,lossordeductioninwhatevermanneritdeterminesappropriatesothat,aftersuchoffsettingallocationsaremade,eachMember’sCapitalAccountbalanceis,totheextentpossible,equaltotheCapitalAccountbalancesuchMemberwouldhavehadiftheRegulatoryAllocationswerenotpartofthisAgreement.InexercisingitsdiscretionunderthisSection8.2(g),theManagingMembershalltakeintoaccountfutureRegulatoryAllocationsthat,althoughnotyetmade,arelikelytooffsetotherRegulatoryAllocationspreviouslymade.
Section8.3IncomeTaxAllocations.
(a)ExceptasprovidedinthisSection8.3,eachitemofincome,gain,lossanddeductionoftheCompanyforfederalincometaxpurposesshallbeallocatedamongtheMembersinthesamemannerassuchitemsareallocatedforbookpurposesunderSection8.1andSection8.2.
(b)InaccordancewithCodeSection704(c)andapplicableTreasuryRegulations,income,gain,lossanddeductionwithrespecttoanypropertycontributedtotheCompany(oranypredecessorthereto)thathasaGrossAssetValuethatisdifferentfromitsadjustedtaxbasisshall,solelyfortaxpurposes,beallocatedamongtheMemberssoastotakeaccountofanyvariationbetweentheadjustedbasisofsuchpropertytotheCompany(oranypredecessorthereto)forU.S.federalincometaxpurposesandthefairmarketvalueofsuchpropertyforU.S.federalincometaxpurposesatthetimeofcontribution.IftheGrossAssetValue
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ofanyCompanypropertyisadjustedinaccordancewithclause(c)or(d)ofthedefinitionofGrossAssetValue,thensubsequentallocationsofincome,gain,lossanddeductionshalltakeintoaccountanyvariationbetweentheadjustedbasisofsuchpropertyforfederalincometaxpurposesanditsGrossAssetValueasprovidedinCodeSection704(c)andtherelatedTreasuryRegulations.TheallocationsdescribedinthisSection8.3shallbemadeusinganymethodpermittedunderTreasuryRegulationsSection1.704-3asdeterminedbytheManagingMember.
(c)IfanydeductionsfordepreciationorcostrecoveryarerecapturedasordinaryincomeupontheTransferofCompanyassets,theordinaryincomecharacterofthegainfromsuchTransfershallbeallocatedamongtheMembersinthesameratioasthedeductionsgivingrisetosuchordinarycharacterwereallocated.
ARTICLEIX.DISTRIBUTIONS
Section9.1DistributionsGenerally.DistributableAmounts(ashereinafterdefined)shallbedistributedwithin30BusinessDaysaftertheendofeachcalendarquarteroratanyothertimedeterminedbytheManagingMembertotheMembersprorataaccordingtotheirrelativeOwnershipPercentages.
Theterm“DistributableAmounts”meanstheamountofcashonhandfromtimetotimeinexcessofamountsrequired,asreasonablydeterminedbytheManagingMember,topayorprovideforpaymentofexistingandprojectedobligations(includingfeesandexpensespayableunderthisAgreementoranyothercontract),capitalexpenditures,acquisitionsandthereasonablyanticipatedneedsoftheCompanyanditsSubsidiariesandtoprovideareasonablereserveforworkingcapitalandcontingenciesforthenextcalendarquarter.
Section9.2DistributionsinKind.IntheeventofadistributionofCompanyproperty,suchpropertyshallforallpurposesofthisAgreementbedeemedtohavebeensoldatitsfairmarketvalue,asdeterminedbytheManagingMember,andtheproceedsofsuchsaleshallbedeemedtohavebeendistributedtotheMembers.
Section9.3NoWithdrawalofCapital.ExceptasotherwiseexpresslyprovidedinthisArticleIXorArticleXIII,noMembershallhavetherighttowithdrawcapitalfromtheCompanyortoreceiveanydistributionorreturnofsuchMember’sCapitalContributions.
Section9.4Withholding.AllamountswithheldorpaidpursuanttotheCodeoranyprovisionofanyforeign,stateorlocaltaxlawortreatywithrespecttoanypayment,distributionorallocationtotheCompany,itsSubsidiariesortheMembers(includinganyCompanyLevelTaxesorsimilartaxespaidbyaSubsidiaryoftheCompanywithrespecttoitemsofincome,gain,loss,deductionorcreditallocableorattributabletotheMembers)shallbetreatedasamountsdistributedtotheMemberspursuanttothisArticleIXforallpurposesofthisAgreement.TheManagingMemberisauthorizedtowithholdfromdistributions,orwithrespecttoallocations,totheMembersandtopayovertoanyfederal,foreign,stateorlocalgovernmentanyamountsrequiredtobesowithheldorpaidpursuanttotheCodeoranyprovisionofanyotherfederal,foreign,stateorlocallawortreatyandshallallocatetheburdenofsuchamountstothoseMemberswithrespecttowhichsuchamountsarespecificallyattributable,asdeterminedbytheManaging
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Member.EachMemberherebyagreestoindemnifyandholdharmlesstheCompany,theotherMembers,andtheTaxMattersRepresentativefromandagainstanyliability(includinganyliabilityforCompanyLevelTaxesorsimilartaxespaidbyaSubsidiaryoftheCompany)withrespecttoincomeattributableto,ordistributionsorotherpaymentsto,suchMember.NotwithstandinganyotherprovisionofthisAgreement,(a)anyPersonwhoceasestobeaMembershallbetreatedasaMemberforpurposesofthisSection9.4and(b)theobligationsofaMemberpursuanttothisSection9.4shallsurviveindefinitelywithrespecttoanytaxeswithheldorpaidbytheCompanyoraSubsidiaryoftheCompanythatrelatetotheperiodduringwhichsuchPersonwasactuallyaMember,regardlessofwhethersuchtaxesareassessed,withheldorotherwisepaidduringsuchperiod.AnydeterminationsmadebytheManagingMemberpursuanttothisSection9.4shallbebindingupontheMembers.
Section9.5RestrictedDistributions.NotwithstandinganyprovisiontothecontrarycontainedinthisAgreement,theCompanyshallnotmakeadistributiontoanyMemberonaccountofitsUnitsintheCompanyifthatdistributionwouldviolateSection18-607oftheDelawareActorotherapplicablelaworanyFinancingAgreementTransactionDocuments.
ARTICLEX.BOOKSANDRECORDS
Section10.1Books,RecordsandFinancialStatements.AtalltimesduringthecontinuanceoftheCompany,theCompanyshallmaintain,atitsprincipalplaceofbusiness,separatebooksofaccountfortheCompanythatshallshowatrueandaccuraterecordinaccordancewithGAAPofallcostsandexpensesincurred,allchargesmade,allcreditsmadeandreceivedandallincomederivedinconnectionwiththeoperationoftheCompany’sbusiness.Suchbooksofaccount,togetherwithacopyofthisAgreementandtheCertificate,shallatalltimesbemaintainedattheprincipalplaceofbusinessoftheCompany.TheCompanyshalltimelydelivertotheMembersanybudgets,financialstatementsorothermaterialreportsofThirdCoastMidstreamthataredeliveredtotheCompanybyThirdCoastMidstream.AlthoughExhibitBliststheOfficersoftheCompanyasoftheEffectiveDateandExhibitAliststheMembersandtheirrespectiveUnitsasoftheEffectiveDate,theCompanywillmaintainandkeepcurrenttheofficialbooksandrecordsoftheCompany,whichwillincludetheaforementionedinformationalongwiththeMembers’CapitalContributionsandCapitalAccountbalances,aftertheEffectiveDate.
Section10.2CertainTaxMatters.
(a)TheCompanyshallprepare,orcausetobeprepared,attheexpenseoftheCompany,foreachAccountingPeriod(orpartthereof),andshalltimelyfile,allCompanytaxreturnsandshalltimelyfileallotherwritingsrequiredbyanyGovernmentalAuthorityhavingjurisdictiontorequiresuchfiling.EachMembershallfurnishtotheCompanyallpertinentinformationinitspossessionrelatingtotheCompany’soperationsthatisnecessarytoenabletheCompany’staxreturnstobetimelypreparedandfiled.Within120daysaftertheendofeachtaxableyear,theCompanyshallsendtoeachPersonthatwasaMemberatanytimeduringsuchyearcopiesofInternalRevenueServiceScheduleK-1(Form1065),“Partner’sShareofIncome,Deductions,Credits,etc.,”oranysuccessorscheduleorform,withrespecttosuchPerson,togetherwithsuchadditionalinformationasmaybenecessaryforsuchPersontofilehis,heroritsU.S.federalincometaxreturns;provided,however,thatupontherequestofanyMemberorformerMember,theCompanyshall,bynolaterthan15daysaftertheendofthetaxableyear,furnishtosuchMemberagoodfaithestimateoftheamountsanticipatedtobereflectedonsuchScheduleK-1.
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(b)TheManagingMember(oritsdesignee)shallbe(i)the“taxmatterspartner”oftheCompany,withinthemeaningofSection6231(a)(7)oftheCodeandanyTreasuryRegulationsissuedthereunder,(ii)the“partnershiprepresentative”withinthemeaningofSection6223(a)oftheCodeandanyTreasuryRegulationsissuedthereunder,and(iii)anysimilarroleorcapacityunderrelevantstateorlocallaw(the“TaxMattersRepresentative”),unlesstheCodeortheTreasuryRegulations(orapplicablestateorlocallaw)issuedthereunderrequireanotherPersontobetheTaxMattersRepresentative.Theexpenses,ifany,thattheTaxMattersRepresentativeincursinfulfillingitscovenantspursuanttothisSection10.2shallbeexpensesoftheCompany.TheTaxMattersRepresentativewill,within10daysafterthereceiptofanynoticeregardinganauditortaxexaminationoftheCompanyoranySubsidiaryoftheCompanyoranyrequestformaterialinformationregardingtheCompanyoranySubsidiaryoftheCompanybyUnitedStatesfederal,state,localorothertaxauthorities(“Tax-AuthorityNotice”),forwardtoeachMemberaphotocopyofsuchTax-AuthorityNoticeandanymaterialcorrespondencerelatingtotheCompanyreceivedfromtherelevanttaxauthority.TheTaxMattersRepresentativewill,within10daysthereof,adviseeachMemberinwritingofthesubstanceofanyconversationaffectingtheCompanyheldwithanyrepresentativeoftherelevanttaxauthority.TheTaxMattersRepresentativeisauthorizedtotakesuchactionsandtoexecuteandfileallstatementsandformsonbehalfoftheCompanythatarepermittedorrequiredbytheapplicableprovisionsoftheBipartisanBudgetAct(includinga“push-out”electionunderSection6226oftheCodeoranyanalogouselectionunderstateorlocaltaxlaw).EachMemberagreestocooperatewiththeTaxMattersRepresentativeandtodoorrefrainfromdoinganyorallthingsrequestedbytheTaxMattersRepresentative(includingpayinganyandallresultingtaxes,additionstotax,penaltiesandinterestinatimelyfashion)inconnectionwithanyexaminationoftheCompany’saffairsbyanyfederal,state,orlocaltaxauthorities,includingresultingadministrativeandjudicialproceedings.NoMembershallhaveanyclaimagainsttheTaxMattersRepresentativeforanyactionstaken(oranyfailurestotakeaction)bytheTaxMattersRepresentativepursuanttothisSection10.2(b).
(c)InthesolediscretionoftheManagingMember,theCompanymaymakeanytaxelectionitdeemsappropriate,includingthefollowingU.S.federalincometaxelections:
(i)toadoptthecalendaryearastheCompany’sfiscalyear,ifpermittedundertheCode;
(ii)toadopttheaccrualmethodofaccounting;
(iii)toelecttoamortizetheorganizationalexpensesoftheCompanyaspermittedbyCodeSection709(b);
(iv)toadjustthebasisofCompanypropertiespursuanttoSection754oftheCode;and
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(v)anyotherelectiontheManagingMembermaydeemappropriateandinthebestinterestsoftheMembers.
(d)MiscellaneousTaxMatters.
(i)Intheeventstate,localorforeignincometaxesbecomeapplicable,anyreferencestofederalincometaxesorto“incometaxes”containedhereinshallrefertofederal,state,localandforeignincometaxes.ReferencestotheCodeorTreasuryRegulationspromulgatedthereundershallbedeemedtorefertocorrespondingprovisionsthatmaybecomeapplicableunderstate,localorforeignincometaxstatutesandregulations.
(ii)ForpurposesofdeterminingtheNetProfit,NetLossoranyotheritemsallocabletoanyperiod,NetProfit,NetLossandanysuchotheritemsshallbedeterminedonadaily,monthlyorotherbasis,asdeterminedbytheManagingMemberusinganymethodthatispermissibleunderSection706oftheCodeandtheTreasuryRegulationsthereunder.
(iii)TheMembersareawareoftheincometaxconsequencesoftheallocationsmadebythisAgreementandherebyagreetobeboundbytheprovisionsofthisAgreementinreportingtheirsharesofCompanyincomeandlossforincometaxpurposes.
(iv)AllocationsmadebytheCompanyinrelianceupontheadviceoftheCompany’saccountantsshallbedeemedtobemadepursuanttoanyfiduciaryobligationtotheCompanyandtheMembers.
(v)IfanyMembermakesaloantotheCompany,ortheCompanymakesaloantoanyMember,andinterestinexcessoftheamountactuallypayableisimputedunderCodeSections7872,483,or1271through1288orcorrespondingprovisionsofsubsequentfederalincometaxlaw,thenanyitemofincomeorexpenseattributabletoanysuchimputedinterestshallbeallocatedsolelytotheMemberwhomadeorreceivedtheloanandshallbecreditedorchargedtoitsCapitalAccount,asappropriate.
ARTICLEXI.LIABILITY,EXCULPATIONANDINDEMNIFICATION
Section11.1Liability.ExceptasotherwiseprovidedbytheDelawareAct,thedebts,obligationsandliabilitiesoftheCompany,whetherarisingincontract,tortorotherwise,shallbesolelythedebts,obligationsandliabilitiesoftheCompany,andnoCoveredPersonshallbeobligatedpersonallyforanysuchdebt,obligationorliabilityoftheCompanysolelybyreasonofbeingaCoveredPerson.
Section11.2Exculpation.NoCoveredPersonshallbeliabletotheCompanyoranyotherCoveredPersonforanyloss,damageorclaimincurredbyreasonofanyactoromissionperformedoromittedbysuchCoveredPersoningoodfaithandreasonablybelievedtobein,ornotopposedto,thebestinterestsoftheCompany,exceptthataCoveredPersonshallbeliableforanysuchloss,damageorclaimincurredbyreasonofsuchCoveredPerson’sgrossnegligence,willfulmisconductorwillfulbreachofthisAgreement.
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Section11.3FiduciaryDuty.Anyduties(includingfiduciaryduties)ofaCoveredPersontotheCompanyortoanyotherCoveredPersonthatwouldotherwiseapplyatlaworinequityareherebyeliminatedtothefullestextentpermittedundertheDelawareActandanyotherapplicablelaw;provided,that(a)theforegoingshallnoteliminatetheobligationofeachCoveredPersontoactincompliancewiththeexpresstermsofthisAgreementand(b)theforegoingshallnotbedeemedtoeliminatetheimpliedcontractualcovenantofgoodfaithandfairdealing.ACoveredPersonactingunderthisAgreementshallnotbeliabletotheCompanyortoanyotherCoveredPersonforitsgoodfaithrelianceontheprovisionsofthisAgreement.NotwithstandinganythingtothecontrarycontainedinthisAgreement,eachoftheMembersherebyacknowledgesandagreesthattheManagingMember,indeterminingwhetherornottomakeanyparticulardecisionforwhichtheManagingMember’sconsentisrequired,mayactinandconsiderthebestinterestsofitselfanditsAffiliatesandshallnotberequiredtoactinorconsiderthebestinterestsoftheCompany,anyofitsSubsidiariesortheotherMembers.
Section11.4Indemnification.Tothefullestextentpermittedbyapplicablelaw,aCoveredPersonshallbeentitledtoindemnificationfromtheCompanyforanyloss,damageorclaimincurredbysuchCoveredPersonbyreasonofanyactoromissionperformedoromittedbysuchCoveredPersoningoodfaithandreasonablybelievedtobein,ornotopposedto,thebestinterestsoftheCompany.THISINDEMNITYSHALLAPPLYTOMATTERSTHATARISEOUTOFTHENEGLIGENCE,STRICTLIABILITYOROTHERFAULTORRESPONSIBILITYOFANYSUCHCOVEREDPERSON;PROVIDED,HOWEVER,thatnoCoveredPersonshallbeentitledtobeindemnifiedinrespectofanyloss,damageorclaimincurredbysuchCoveredPersonbyreasonofsuchCoveredPerson’sgrossnegligence,willfulmisconductorwillfulbreachofthisAgreementwithrespecttosuchactsoromissions.AnyindemnityunderthisSection11.4shallbeprovidedoutofandtotheextentofCompanyassetsonly,andnoCoveredPersonshallhaveanypersonalliabilityonaccountthereof.
Section11.5Expenses.Tothefullestextentpermittedbyapplicablelaw,expenses(includingreasonableattorneys’fees,disbursements,finesandamountspaidinsettlement)incurredbyaCoveredPersonindefendinganyclaim,demand,action,suitorproceedingrelatingtoorarisingoutofitsperformanceofitsdutiesonbehalfoftheCompanyshall,fromtimetotime,beadvancedbytheCompanypriortothefinaldispositionofsuchclaim,demand,action,suitorproceedinguponreceiptbytheCompanyofanundertakingbyoronbehalfoftheCoveredPersontorepaysuchamountifitshallultimatelybedeterminedbyacourtofcompetentjurisdictionthattheCoveredPersonisnotentitledtobeindemnifiedasauthorizedinSection11.4.
Section11.6Nonexclusivity;Severability.TheexculpationandindemnificationprovisionssetforthinthisAgreementshallnotbedeemedtobeexclusiveandshallbeinadditiontoanysuchrightsprovidedbycontract,agreementororganizationaldocumentofanySubsidiarytowhichanyCoveredPersonmaybeentitled.Tothefullestextentpermittedbyapplicablelaw,ifanyportionofthisArticleXIshallbeinvalidatedonanygroundbyanycourtofcompetentjurisdiction,thentheCompanyshallneverthelessindemnifytheManagingMemberandeachOfficer,asapplicable,andmayindemnifyeachemployeeoragent,asapplicable,oftheCompanyastocosts,chargesandexpenses(includingreasonableattorneys’fees),judgments,finesandamountspaidinsettlementwithrespecttoanyaction,suitorproceeding,whethercivil,criminal,administrativeorinvestigative,includinganactionbyorintherightoftheCompany,tothefullestextentpermittedbyanyapplicableportionofthisArticleXIthatshallnothavebeeninvalidated.
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ARTICLEXII.TRANSFERSOFUNITS
Section12.1RestrictionsonTransfersofUnits.
(a)Generally.ExceptpursuanttotheproceduresdescribedinthisArticleXII,aMembershallnot,inanytransactionorseriesoftransactions,directlyorindirectly,TransferalloranyofitsUnits.AnyattemptbyaMembertoTransfer,directlyorindirectly,alloranyofitsUnitsinviolationofthisAgreementshallbevoidabinitioandwillnotbeaneffectiveTransferofsuchUnits.
(b)NoIndirectTransfer.Withoutlimitingthegeneralityoftheforegoing,thestock,limitedliabilitycompanyinterests,partnershipinterestsorotherequitysecuritiesofanyNon-ManagingMembermaynotbeTransferredbytheholdersthereof,andthereshallbenochangeofControlofanyNon-ManagingMember,ineachcasewithoutwrittenapprovaloftheManagingMember,whichapprovalmaybewithheldorconditioned(includinguponmodificationofthetermsofanyUnits)initssolediscretion.
Section12.2PermittedTransfers.NotwithstandingtheforegoingrestrictionsonTransfers:
(a)TheManagingMembermayTransfer,withoutbeingsubjecttoSection12.3(otherthanclause(c)(iii)thereof),alloranyofitsUnitstoanAffiliateatanytime;
(b)anyMembermayTransfer,withoutbeingsubjecttoSection12.3(otherthanclause(c)(iii)thereof),alloranyofitsUnitspursuanttoapledgeorsecurityagreementinfavorofthecollateralagentforthesecuredpartiesunderanyFinancingAgreementTransactionDocuments;and
(c)anyNon-ManagingMembermayTransfer,withoutbeingsubjecttoSection12.3(otherthanclause(c)(iii)thereof),alloranyofitsUnitswiththepriorwrittenapprovaloftheManagingMember,whichapprovalmaybewithheldorconditioned(includinguponmodificationofthetermsofanyUnits)initssolediscretion.
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Section12.3OverridingProvisions.
(a)TheapprovalofanyTransferinanyoneormoreinstancesshallnotlimitorwaivetherequirementforsuchapprovalinanyotherorfutureinstance.
(b)ExceptasprovidedinSection12.2,allTransferspermittedunderthisArticleXIIaresubjecttothisSection12.3,Section12.4andSection12.5.
(c)AnyproposedTransferbyaMemberpursuanttothetermsofthisArticleXIIshall,inadditiontomeetingapplicablerequirementsofthisAgreement,satisfythefollowingconditions:
(i)theTransferwillnotbeeffectedonorthroughan“establishedsecuritiesmarket”ora“secondarymarketorthesubstantialequivalentthereof,”assuchtermsareusedinTreasuryRegulationsSection1.7704-1,and,attherequestoftheManagingMember,thetransferorandthetransfereewillhaveeachprovidedtheCompanyacertificatetosucheffect;
(ii)theproposedTransferwillnotresultintheCompanyhavingmorethan100Members,withinthemeaningofTreasuryRegulationsSection1.77041(h)(1)(determinedpursuanttotherulesofTreasuryRegulationsSection1.77041(h)(3))orotherwisecausetheCompanytobetreatedasa“publiclytradedpartnership”withinthemeaningofSection7704oftheCode;and
(iii)theproposedTransferwillbemadeinaccordancewithallapplicablelawsandregulations,allnecessarygovernmentalconsentsshallhavebeenobtainedandrequirementssatisfied,includingcompliancewithU.S.federalandstatesecuritieslaws,andtheTransferwillnotcausetheCompanytobreachorviolateanyapplicablelaworthetermsandconditionsofanyFinancingAgreementTransactionDocuments.
TheManagingMembermayrequestanopinionoflegalcounselorotherevidencereasonablysatisfactorytotheManagingMemberwithrespecttoanyoftheforegoingprovisionsofthisSection12.3oranyothermattersthattheManagingMemberreasonablydeemsappropriateinrespectofanysuchproposedTransfer.TheManagingMembermaywaiveanyoftheforegoingprovisionsexceptasotherwiserequiredbyapplicablelaw.
(d)TheMembers’CapitalAccountbalancesshallpromptlybeamendedtoreflectanypermittedtransfersofUnitspursuanttothisArticleXIIinthemannersetforthinSection7.7.
Section12.4ReleaseofLiability.IntheeventthatanyMemberTransfersallofsuchMember’sUnitsintheCompanyincompliancewiththeprovisionsofthisAgreement,withoutretaininganyinteresttherein,directlyorindirectly,thenthetransferorshall,tothefullestextentpermittedbyapplicablelaw,berelievedofanyfurtherliabilityarisinghereunderforeventsoccurringfromandafterthedateofsuchTransfer.
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Section12.5SubstituteMembers.
(a)IntheeventaMemberTransfersitsUnitsincompliancewiththeapplicableprovisionsofthisArticleXII,thetransfereethereofshallbecomeaMemberinsubstitutionofthetransferorinrespectoftheUnitssotransferred,withalloftherightsandlimitationsattendanttothetransferor’sUnitsandOwnershipPercentagejustasifsuchtransfereewereaMemberhereunder,uponsatisfactionofthefollowing:
(i)thetransfereepaysorreimbursestheCompanyforanyreasonablelegal,filingandpublicationcoststhattheCompanyincursinconnectionwiththeadmissionofthetransfereeasaMember;
(ii)anyandallnecessarygovernmentalconsentshavebeenobtained;and
(iii)acceptanceandagreementinwritingbythetransfereeoftheMember’sUnitstobeboundbyallofthetermsandprovisionsofthisAgreementandassumptionofallobligationsunderthisAgreementapplicabletothetransferor.
(b)Notwithstandinganythinghereintothecontrary,theCompanyshallbeentitledtotreatthetransferorofUnitsastheabsoluteownerthereofinallrespectsandshallincurnoliabilityfordistributionsofcashorotherpropertymadeingoodfaithtoit,untilsuchtimeasawrittenassignmentorotherevidenceoftheconsummationofaTransferthatconformstotherequirementsofthisArticleXIIandisreasonablysatisfactorytotheManagingMemberhasbeenreceivedbytheCompany.TheeffectivedateofanyTransferpermittedunderthisAgreementshallbethecloseofbusinessonthedayofreceiptthereofbytheCompany.
Section12.6Resignation.NoMembermayresignfromtheCompany,otherthanasaresultofaTransferofallofsuchMember’sUnitseffectedinaccordancewiththetermsofthisAgreement.
ARTICLEXIII.DISSOLUTION,LIQUIDATIONANDTERMINATION
Section13.1DissolvingEvents.TheCompanyshallbedissolvedanditsaffairswoundupinthemannerhereinafterprovideduponthehappeningofanyofthefollowingevents:
(a)theMembersvoteoragreeinwritingtodissolvetheCompany;
(b)anyeventwhichunderapplicablelawwouldcausethedissolutionoftheCompany;provided,thatunlessrequiredbylaw,theCompanyshallnotbewoundupasaresultofanysucheventandthebusinessoftheCompanyshallcontinue.
Notwithstandingtheforegoing,thedeath,retirement,resignation,expulsion,bankruptcyordissolutionofanyMemberortheoccurrenceofanyothereventthatterminatesthecontinuedmembershipofanyMemberintheCompanyundertheDelawareActshallnot,inandofitself,causethedissolutionoftheCompany.Insuchevent,theremainingMember(s)shallcontinuethebusinessoftheCompanywithoutdissolution.
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Section13.2Liquidation.UponthedissolutionoftheCompany,unlessanelectiontocontinuetheCompanyismadepursuanttoSection13.1,thebusinessandaffairsoftheCompanyshallbewoundup,andtheManagingMember(oritsdesignee)willserveasliquidator(the“Liquidator”)oftheCompany.
(a)ExceptasexpresslyprovidedinthisArticleXIII,theLiquidatorwillhaveandmayexercise,withoutfurtherauthorizationorconsentofanyofthepartieshereto,allofthepowersconferredupontheManagingMemberandtheMembersunderthetermsofthisAgreement,totheextentnecessaryordesirableinthegoodfaithjudgmentoftheLiquidatortocarryoutthedutiesandfunctionsoftheLiquidatorhereunderforandduringsuchperiodoftimeaswillberequiredinthegoodfaithjudgmentoftheLiquidatortocompletethewindingupandliquidationoftheCompanyasprovidedforherein.
(b)ExceptasotherwiseprovidedinthisArticleXIII(includingSection13.4below),theLiquidatorwillliquidatetheassetsoftheCompanyandapplyanddistributethenetproceedsofsuchliquidationinthefollowingmannerandorder:
(i)first,netproceedsoftheliquidationwillbeappliedanddistributedtocreditorsinsatisfactionofindebtedness(otherthananyloansoradvancesthatmayhavebeenmadebyanyoftheMemberstotheCompany),whetherbypaymentorplacinginescrowareserveofcashorotherassetsoftheCompanyforthepaymentofcreditors,certainadministrativeexpenses(includingpaymentoftheexpensesoftheterminatingtransactionssuchasbrokeragecommissions,legalfees,accountingfeesandclosingcosts)andcontingentliabilitiesinanamountreasonablydeterminedbytheLiquidatortobeappropriateforsuchpurposes;and
(ii)second,netproceedsoftheliquidationwillbeappliedtothepaymentofoutstandingloansthatmayhavebeenmadebyanyoftheMemberstotheCompany;and
(iii)third,remainingnetproceedsoftheliquidationshallbedistributedtoMembersinaccordancewithSection9.1.
provided,thatnopaymentordistributioninanyoftheforegoingcategoriesshallbemadeuntilallpaymentsineachpriorcategoryshallhavebeenmadeinfull;provided,further,thatifthepaymentsduetobemadeinanyoftheforegoingcategoriesexceedtheremainingproceedsavailableforsuchpurpose,suchpaymentsshallbemadetothePersonsentitledtoreceivethesameproratainaccordancewiththerespectiveamountsduetothem.
Section13.3Reserves.AfteralloftheassetsoftheCompanyhavebeendistributed,theCompanywillterminateinaccordancewithSection13.5.IfatanytimethereafteranyfundsinanycashreservefundreferredtoinSection13.2(b)arereleasedbecausetheneedforsuchcashreservefundhasended,suchfundswillbedistributedtotheMembersinthesamemannerasifsuchdistributionhadbeenmadepursuanttoSection13.2(b).
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Section13.4DistributionInKind.NotwithstandingtheprovisionsofSection13.2thatrequiretheliquidationoftheassetsoftheCompany,if,uponthedissolutionoftheCompany,theLiquidatordeterminesthatanimmediatesaleofpartoralloftheCompany’sassetswouldbeimpracticalorwouldcauseunduelosstotheMembers,theLiquidatormay,ingoodfaith,deferforatimetheliquidationofanyassetsexceptthosenecessarytosatisfyliabilitiesoftheCompany(otherthantheCompany’sliabilitiestoitsMembers).TheLiquidatormaydistributetotheMembers,inlieuofcash,suchCompanyassetsastheLiquidatordeemsnotsuitableforliquidation.AnydistributionsinkindwillbesubjecttosuchconditionsrelatingtothedispositionandmanagementthereofastheLiquidatorreasonablydeemsequitable.Furthermore,totheextentthatthereisadistributionofCompanypropertypursuanttoSection13.2inaccordancewiththisSection13.4,theratioofcashtonon-cashdistributionsshallbeidenticalforeachMember,unlessanyMemberelects,initssolediscretion,totakeagreaterportionofitsdistributioninnon-cashCompanyproperty.TheLiquidatorwillvalueanypropertydistributedinkindbaseduponsuchproperty’sfairmarketvalueasdeterminedusingsuchmethodofvaluationastheLiquidatorandtheMembersreceivinganysuchin-kinddistributionagreeupon.
Section13.5Termination.TheCompanyshallterminatewhenthewindingupoftheCompany’saffairshasbeencompleted,alloftheassetsoftheCompanyhavebeendistributedandtheCertificatehasbeencanceled,allinaccordancewiththeDelawareAct.
Section13.6ClaimsoftheMembers.TheMembersandformerMembersshalllooksolelytotheCompany’sassetsforthereturnoftheirCapitalContributions,andiftheassetsoftheCompanyremainingafterpaymentofordueprovisionforalldebts,liabilitiesandobligationsoftheCompanyareinsufficienttoreturnsuchCapitalContributions,theMembersandformerMembersshallhavenorecourseagainsttheCompanyoranyotherMember.
ARTICLEXIV.MISCELLANEOUS
Section14.1Notices.Allnotices,requests,demands,waiversandothercommunicationsrequiredorpermittedtobegivenunderthisAgreementshallbeinwritingandmaybegivenbyanyofthefollowingmethods:(a)personaldelivery,(b)facsimiletransmission,(c)registeredorcertifiedmail,postageprepaid,returnreceiptrequested,or(d)nextdaycourierservice.Noticesshallbesenttotheappropriatepartyathis,heroritsaddress,emailorfacsimilenumbergivenbelow(oratsuchotheraddress,emailorfacsimilenumberforsuchpartyasshallbespecifiedbynoticegivenhereunder).
IftotheManagingMember:
3CMHoldings,LLCc/oArcLightCapitalPartners,LLC200ClarendonStreet,55thFloorBoston,MA02117
Attention:Fax:Email:
TedBurke(617)[email protected]
withacopy(whichshallnotconstitutenotice)to:
Kirkland&EllisLLP609MainStreet,47thFloorHouston,Texas77002
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Attention:Fax:Email:
DouglasBacon,P.C.;KimHicks(713)[email protected];[email protected]
IftoanyotherMember,tohis,heroritsaddress,emailorfacsimilenumbergivenonsuchMember’ssignaturepagetothisAgreement.
Allsuchnotices,requests,demands,waiversandcommunicationsshallbedeemedeffectiveupon(x)actualreceiptthereofbytheaddressee,(y)actualdeliverythereoftotheappropriatephysicalmailingoremailaddress,asapplicable,or(z)inthecaseofafacsimiletransmission,transmissionthereofbythesenderandissuancebythetransmittingmachineofaconfirmationthatthenoticehasbeentransmittedwithouterror.Thepartieswillhavetherightfromtimetotimeandatanytimetochangetheirrespectiveaddresses,andeachwillhavetherighttospecifyasitsaddressanyotheraddressbywrittennoticetotheotherparties.Eachpartywillhavetherightfromtimetotimetospecifyadditionalparties(nottoexceedtwoadditionalparties)towhomnoticehereundermustbegivenbydeliveringtotheotherpartywrittennoticethereof,settingforththeaddressofsuchadditionalparties.Noticerequiredtobedeliveredhereundertoanypartywillnotbedeemedtobeeffectiveuntiltheadditionalparties,ifany,designatedbysuchpartyhavebeengivennoticeinamannerdeemedeffectivepursuanttothetermsofthisSection14.1.
Section14.2Headings.TheheadingscontainedinthisAgreementareforpurposesofconvenienceonlyandshallnotaffectthemeaningorinterpretationofthisAgreement.
Section14.3EntireAgreement.ThisAgreementconstitutestheentireagreementamongtheMemberswithrespecttothesubjectmatterhereofandsupersedesanyprioragreementorunderstandingamonganyofthemwithrespecttosuchsubjectmatter,including,fromandaftertheEffectiveDateonly,theFourthAmendedandRestatedAgreement.
Section14.4Construction.Wheneverthecontextrequires,thegenderofallwordsusedinthisAgreementincludesthemasculine,feminineandneuter.Termsdefinedinthesingularhavethecorrespondingmeaningsinthepluralandviceversa.HeadingsareincludedforconvenienceonlyandshallnotbeconsideredininterpretingthisAgreement.AllreferencestoSectionsrefertosectionsofthisAgreement,andallreferencestoAppendices,ExhibitsandSchedulesrefertoappendices,exhibitsandschedulestothisAgreement,whichareattachedheretoandmadeaparthereofforallpurposes.Theword“including”means“including,butnotlimitedto.”Thewords“hereof,”“hereby,”“herein,”“hereunder”andsimilartermsinthisAgreementshallrefertothisAgreementasawholeandnotanyparticularsectionorarticleinwhichsuchwordsappear.WheneverthisAgreementreferstoanumberofdays,suchnumbershallrefertocalendardaysunlessotherwisespecified.TheMembershaveeachfullyparticipatedinthenegotiationanddraftingofthisAgreement.Ifanambiguity,questionofintentorquestionofinterpretationarises,thisAgreementmustbeconstruedasifdraftedjointly,andtheremustnotbeanypresumption,inferenceorconclusiondrawnagainsteitherMemberbyvirtueofthefactthatitsRepresentativeshaveauthoredthisAgreementoranyofitsterms.
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Section14.5Counterparts.ThisAgreementmaybeexecutedinseveralcounterparts,eachofwhichshallbedeemedanoriginalandallofwhichshalltogetherconstituteoneandthesameinstrument.
Section14.6GoverningLaw.Thevalidity,construction,interpretationandeffectofthisAgreementshallbegovernedbyandinterpretedinaccordancewiththelawsoftheStateofDelaware,withoutregardtoconflictsruleswhichwouldotherwiseapplythelawsofanotherjurisdiction.
Section14.7Jurisdiction;ConsenttoServiceofProcess;Waiver.EachMemberagreesthatitshallbringanyactionorproceedinginrespectofanyclaimarisingoutoforrelatedtothisAgreement,whetherintortorcontractoratlaworinequity,exclusivelyinanyU.S.federalorstatecourtintheStateofDelawareand(a)irrevocablysubmitstothejurisdictionofsuchcourts,(b)waivesanyobjectiontolayingvenueinanysuchactionorproceedinginsuchcourts,(c)waivesanyobjectionthatsuchcourtsareaninconvenientforumordonothavejurisdictionoveritand(d)agreesthatserviceofprocessuponitmaybeeffectedbymailingacopythereofpostageprepaid,registeredorcertifiedwithreturnreceiptrequestedattheaddressspecifiedinSection14.1.TheforegoingconsentstojurisdictionandserviceofprocessshallnotconstitutegeneralconsentstoserviceofprocessintheStateofDelawareforanypurposeexceptasprovidedhereinandshallnotbedeemedtoconferrightsonanyPersonotherthantheMembers.
Section14.8WaiverofJuryTrial.EachMemberherebyknowinglyandintentionally,irrevocablyandunconditionallywaivestrialbyjuryinanylegalactionorproceedingunder,arisingoutoforinconnectionwiththisAgreementandforanycounterclaimtherein.
Section14.9WaiverGenerally.WaiverbytheManagingMemberoranyotherMemberofanybreachordefaultbyanyotherMemberofanyofthetermsofthisAgreementshallnotoperateasawaiverofanyotherbreachordefault,whethersimilartoordifferentfromthebreachordefaultwaived.NowaiverofanyprovisionofthisAgreementshallbeimpliedfromanycourseofdealingbetweentheManagingMemberandanyotherMemberorotherwisebetweentheMembersheretoorfromanyfailurebytheManagingMemberoranyotherMembertoassertits,hisorherrightshereunderonanyoccasionorseriesofoccasions.Nosingleorpartialexerciseofanyright,remedy,powerorprivilegehereundershallprecludeanyotherorfurtherexercisethereofortheexerciseofanyotherright,remedy,powerorprivilege.Therights,remedies,powersandprivilegeshereinprovidedarecumulativeandnotexclusiveofanyrights,remedies,powersandprivilegesprovidedbyapplicablelawnototherwisewaivedherein.
Section14.10Severability.IfanyprovisionofthisAgreementisinoperativeorunenforceableforanyreason,suchcircumstancesshallnothavetheeffectofrenderingtheprovisioninquestioninoperativeorunenforceableinanyothercaseorcircumstanceorofrenderinganyotherprovisionorprovisionshereincontainedinvalid,inoperativeorunenforceabletoanyextentwhatsoeversolongasthisAgreement,takenasawhole,stillexpressesthematerialintentofthepartieshereto.Theinvalidityofanyoneormorephrases,sentences,clauses,sectionsorsubsectionsofthisAgreementshallnotaffecttheremainingportionsofthisAgreement.
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Section14.11Amendments.ThisAgreementandtheCertificatemaybeamendedorrestatedonlybyawritteninstrumentapprovedbytheMembers.TheMembersherebyacknowledgeandagreethattheexecutionofthisAgreementdatedasoftheEffectiveDateamendingandrestatingtheFourthAmendedandRestatedAgreementconstitutestheconsentofalloftheMemberstoamendandrestatetheFourthAmendedandRestatedAgreement.
Section14.12FeesandExpenses.TheCompanyshallpaythereasonableanddocumentedlegal,formation,transactionandrelatedexpensesincurredbytheMembersinconnectionwiththeexecutionanddeliveryofthisAgreement.
Section14.13NoEmploymentAgreement.NothinginthisAgreementshallgiveanyMemberanyrightstoemploymentbytheCompanyoranyofitsSubsidiariesorAffiliates.EachMemberacknowledgesandagreesthatthisAgreementdoesnotconstituteacontractofemployment.
Section14.14NoThird-PartyBeneficiaries.Exceptasotherwiseprovidedherein,thisAgreementisnotintendedtoconferuponanyPerson,exceptforthepartieshereto,anyrightsorremedieshereunder.
[Signaturepagefollows.]
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IN WITNESS WHEREOF ,thepartiesheretohaveexecutedanddeliveredthisAgreementasofthedatefirstabovewritten.
COMPANY :
THIRD COAST MIDSTREAM HOLDINGS, LLC
By: /s/DanielR.ReversName: DanielR.ReversTitle: President
MANAGING MEMBER :
3CM HOLDINGS, LLC
By: /s/DanielR.ReversName: DanielR.ReversTitle: President
NON-MANAGING MEMBER :
AMID GP HOLDINGS, LLC
By: /s/DanielR.ReversName: DanielR.ReversTitle: President
SamenoticedeliveryinformationastheManagingMember.
[SignaturePagetoFifthAmendedandRestatedLimitedLiabilityCompanyAgreementofThirdCoastMidstreamHoldings,LLC]
Exhibit A
UnitsMember Units 3CMHoldings,LLC 920,811.20AMIDGPHoldings,LLC 79,188.80
Total : 1,000,000.00
ExhibitAtoFifthAmendedandRestatedLimitedLiabilityCompanyAgreementofThirdCoastMidstreamHoldings,LLC
Exhibit B
OfficersName OfficeDanielR.Revers PresidentJohnF.Erhard VicePresidentAdamKuhnley VicePresidentJosefM.Alves VicePresidentChristineM.Miller SecretaryTheodoreD.Burke AssistantSecretary
ExhibitBtoFifthAmendedandRestatedLimitedLiabilityCompanyAgreementofThirdCoastMidstreamHoldings,LLC
Exhibit 3.1
Execution Version
SIXTH AMENDED AND RESTATED
AGREEMENT OF LIMITED PARTNERSHIP
OF
AMERICAN MIDSTREAM PARTNERS, LP
DatedasofJuly23,2019
TABLEOFCONTENTS PageARTICLEI.DefinedTerms 2
Section1.1 Definitions 2Section1.2 Construction 5Section1.3 Conflicts 5
ARTICLEII.Organization 5Section2.1 Formation 5Section2.2 Name 6Section2.3 RegisteredOffice;RegisteredAgent;PrincipalOffice;OtherOffices 6Section2.4 PurposeandBusiness 6Section2.5 Powers 6Section2.6 Term 6Section2.7 PartnershipInterests;Certificates 7
ARTICLEIII.PartnersandCapitalContributions 7Section3.1 LimitedPartners 7Section3.2 CapitalContributions 7Section3.3 NoTermination 7Section3.4 TaxClassification 7
ARTICLEIV.Distributions 8Section4.1 Distributions 8
ARTICLEV.Management 8Section5.1 Management 8Section5.2 ReimbursementoftheGeneralPartner 8
ARTICLEVI.LimitationsonLiabilityandIndemnity 9Section6.1 LimitationonLiability 9Section6.2 Indemnification 10Section6.3 LiabilityofIndemnitees 11
ARTICLEVII.Transferability 12Section7.1 TransfersofPartnershipInterests 12
ARTICLEVIII.DissolutionandLiquidation 12Section8.1 Dissolution 12Section8.2 EffectofDissolution 12Section8.3 WindingUp,LiquidationandDistributionofAssets 12Section8.4 CertificateofCancellation 12
ARTICLEIX.Miscellaneous 13Section9.1 Amendments 13
i
Section9.2 Successors 13Section9.3 NoThirdPartyBeneficiaries 13Section9.4 GoverningLaw;Severability 13Section9.5 Notices 13Section9.6 Counterparts 13
ii
THEPARTNERSHIPINTERESTSDESCRIBEDINTHISSIXTHAMENDEDANDRESTATEDAGREEMENTOFLIMITEDPARTNERSHIPHAVENOTBEENREGISTEREDUNDERTHESECURITIESACTOF1933,ASAMENDED,ORUNDERANYSTATESECURITIESACTSINRELIANCEUPONEXEMPTIONSUNDERTHOSEACTS.THESALEOROTHERDISPOSITIONOFSUCHPARTNERSHIPINTERESTSISPROHIBITEDUNLESSSUCHSALEORDISPOSITIONISMADEINCOMPLIANCEWITHALLSUCHAPPLICABLEACTS.ADDITIONALRESTRICTIONSONTRANSFEROFSUCHPARTNERSHIPINTERESTSARESETFORTHINTHISAGREEMENT.
SIXTH AMENDED AND RESTATEDAGREEMENT OF LIMITED PARTNERSHIP
OFAMERICAN MIDSTREAM PARTNERS, LP
ThisSixthAmendedandRestatedAgreementofLimitedPartnershipofAmericanMidstreamPartners,LP(the“Partnership”),datedasofJuly23,2019(the“EffectiveDate”),isenteredintobyandbetweenAmericanMidstreamGP,LLC,aDelawarelimitedliabilitycompany(the“GeneralPartner”),asthegeneralpartnerofthePartnership,andAnchorMidstreamAcquisition,LLC,aDelawarelimitedliabilitycompany(“AnchorAcquisition”),asthesolelimitedpartnerofthePartnership.
WITNESSETH
WHEREAS,onAugust20,2009,thePartnershipwasformeduponthefilingoftheCertificateofLimitedPartnership(includinganyandallamendmentsandmodificationstheretoandrestatementsthereof,the“Certificate”)withtheSecretaryofStateoftheStateofDelaware;
WHEREAS,theGeneralPartnerandthethen-LimitedPartnersenteredintothatcertainFifthAmendedandRestatedAgreementofLimitedPartnershipdatedasofApril25,2016,asamendedfromtimetotimethereafter(asamended,the“FifthA/RPartnershipAgreement”);
WHEREAS,onMarch17,2019,thePartnership,theGeneralPartner,HighPointInfrastructurePartners,LLC,aDelawarelimitedliabilitycompanyandpredecessor-in-interestto3CMHoldings,LLC,AnchorAcquisitionandAnchorMidstreamMergerSub,LLC,aDelawarelimitedliabilitycompany(“MergerSub”),enteredintothatcertainAgreementandPlanofMerger(the“AMIDMergerAgreement”)pursuanttowhich,ontheEffectiveDate,MergerSubmergedwithandintothePartnershipwiththePartnershipsurvivingthemergerasawhollyownedsubsidiaryoftheGeneralPartnerandAnchorAcquisition(the“AMIDMerger”);
WHEREAS,pursuanttoSection2.5oftheAMIDMergerAgreement,theFifthA/RPartnershipAgreementisrequiredtobeamendedandrestatedattheEffectiveTime(asdefinedintheAMIDMergerAgreement)and,soamendedandrestated,shallbetheagreementoflimitedpartnershipofthePartnership,astheSurvivingEntity;and
WHEREAS,inconnectionwiththeAMIDMerger,theGeneralPartnerandAnchorAcquisitiondesiretoamendandrestatetheFifthA/RPartnershipAgreementinitsentiretytoprovidefortheconductofthebusinessandaffairsofthePartnershipandcertainrelationsamongthePartnersinaccordancewiththetermsandconditionsofthisAgreement,asitmaybeamendedfromtimetotime.
NOW,THEREFORE,inconsiderationofthepremisesandmutualagreementscontainedherein,andothergoodandvaluableconsideration,thereceiptandsufficiencyofwhichareherebyacknowledged,thePartnersherebyagreeasfollows:
ARTICLEI.DEFINEDTERMS
Section1.1Definitions.
“Affiliate”means,withrespecttoanyPerson,anyotherPersonthatdirectlyorindirectlythroughoneormoreintermediariescontrols,iscontrolledbyorisundercommoncontrolwith,thePersoninquestion.Asusedherein,theterm“control”meansthepossession,directorindirect,ofthepowertodirectorcausethedirectionofthemanagementandpoliciesofaPerson,whetherthroughownershipofvotingsecurities,bycontractorotherwise.
“Agreement”meansthisSixthAmendedandRestatedAgreementofLimitedPartnershipofthePartnership,asthisagreementmayberevised,amended,restatedorsupplementedfromtimetotimeaftertheEffectiveDate.
“AMIDMerger”shallhavethemeaningsetforthintherecitalstothisAgreement.
“AMIDMergerAgreement”shallhavethemeaningsetforthintherecitalstothisAgreement.
“AnchorAcquisition”shallhavethemeaningsetforthintherecitalstothisAgreement.
“AvailableCash”means,withrespecttoanyQuarterendingpriortothedissolutionofthePartnershippursuanttoARTICLEVIII:
(a)thesumof(i)allcashandcashequivalentsofthePartnershipGroup(orthePartnership’sproportionateshareofcashandcashequivalentsinthecaseofSubsidiariesthatarenotwhollyowned)onhandattheendofsuchQuarter,and(ii)iftheGeneralPartnersodetermines,alloranyportionofadditionalcashandcashequivalentsofthePartnershipGroup(orthePartnership’sproportionateshareofcashandcashequivalentsinthecaseofSubsidiariesthatarenotwhollyowned)onhandonthedateofdeterminationofAvailableCashwithrespecttosuchQuarterresultingfromWorkingCapitalBorrowingsmadesubsequenttotheendofsuchQuarter;less
(b)theamountofanycashreserves(orthePartnership’sproportionateshareofcashreservesinthecaseofSubsidiariesthatarenotwhollyowned)establishedbytheGeneralPartnerto(i)providefortheproperconductofthebusinessofthePartnershipGroup(includingreservesforfuturecapitalexpenditures,foranticipatedfuturecreditneedsofthePartnershipGroupandforrefundsofcollectedratesreasonablylikelytoberefundedasaresultofasettlementorhearingrelatedtoFERCrateproceedingsorrateproceedingsunderapplicablestatelaw,ifany)
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subsequenttosuchQuarter,(ii)complywithapplicablelaworanyloanagreement,securityagreement,mortgage,debtinstrumentorotheragreementorobligationtowhichanyGroupMemberisapartyorbywhichitisboundoritsassetsaresubjector(iii)providefundsfordistributionsunderSection4.1inrespectofanyoneormoreofthenextfourQuarters;
provided,however,thatdisbursementsmadebyaGroupMemberorcashreservesestablished,increasedorreducedaftertheendofsuchQuarterbutonorbeforethedateofdeterminationofAvailableCashwithrespecttosuchQuartershallbedeemedtohavebeenmade,established,increasedorreduced,forpurposesofdeterminingAvailableCash,withinsuchQuarteriftheGeneralPartnersodetermines.
Notwithstandingtheforegoing,“AvailableCash”withrespecttotheQuarterinwhichthedissolutionofthePartnershipoccurspursuanttoARTICLEVIIIandanysubsequentQuartershallequalzero.
“Certificate”shallhavethemeaningsetforthinthepreambletothisAgreement.
“CommonUnits”meansaPartnershipInterestrepresentingafractionalpartofthePartnershipInterestsofallLimitedPartners,andhavingtherightsandobligationsspecifiedwithrespecttoCommonUnitsinthisAgreement.
“DelawareAct”shallhavethemeaningsetforthinSection2.1.
“DepartingGeneralPartner”meansaformergeneralpartnerfromandaftertheeffectivedateofanywithdrawalorremovalofsuchformergeneral.
“EffectiveDate”shallhavethemeaningsetforthinthepreambletothisAgreement.
“EffectiveTime”shallhavethemeaningsetforthintheAMIDMergerAgreement.
“FERC”meanstheFederalEnergyRegulatoryCommissionorsuccessortopowersthereof.
“FifthA/RPartnershipAgreement”shallhavethemeaningsetforthintherecitalstothisAgreement.
“GeneralPartner”shallhavethemeaningsetforthinthepreambletothisAgreement.
“GeneralPartnerInterest”meanstheownershipinterestoftheGeneralPartnerinthePartnership(initscapacityasageneralpartnerwithoutreferencetoanyLimitedPartnerInterestheldbyit)andincludesanyandallbenefitstowhichtheGeneralPartnerisentitledasprovidedinthisAgreement,togetherwithallobligationsoftheGeneralPartnertocomplywiththetermsandprovisionsofthisAgreement.
“GroupMember”meansamemberofthePartnershipGroup.
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“Indemnitee”means(a)theGeneralPartner,(b)anyDepartingGeneralPartner,(c)anyPersonwhoisorwasanAffiliateoftheGeneralPartneroranyDepartingGeneralPartner,(d)anyPersonwhoisorwasamanager,managingmember,generalpartner,director,officer,employee,agent,fiduciaryortrusteeofanyGroupMember,theGeneralPartneroranyDepartingGeneralPartneroranyAffiliateofanyGroupMember,theGeneralPartneroranyDepartingGeneralPartner,(e)anyPersonwhoisorwasservingattherequestoftheGeneralPartneroranyDepartingGeneralPartneroranyAffiliateoftheGeneralPartneroranyDepartingGeneralPartnerasamanager,managingmember,generalpartner,director,officer,employee,agent,fiduciaryortrusteeofanotherPersonowingafiduciarydutytoanyGroupMember;providedthataPersonshallnotbeanIndemniteebyreasonofproviding,onafee-for-servicesbasis,trustee,fiduciaryorcustodialservices,(f)anyPersonwhocontrolsaGeneralPartneroranyDepartingGeneralPartnerand(g)anyPersontheGeneralPartnerdesignatesasanIndemniteeforpurposesofthisAgreement.
“LimitedPartner”means,unlessthecontextotherwiserequires,anylimitedpartnerofthePartnership,insuchPerson’scapacityasalimitedpartner.
“LimitedPartnerInterest”meanstheownershipinterestofaLimitedPartnerinthePartnership,whichmaybeevidencedbyCommonUnitsorotherPartnershipInterestsoracombinationthereoforinteresttherein,andincludesanyandallbenefitstowhichsuchLimitedPartnerisentitledasprovidedinthisAgreement,togetherwithallobligationsofsuchLimitedPartnertocomplywiththetermsandprovisionsofthisAgreement.
“MergerSub”shallhavethemeaningsetforthintherecitalstothisAgreement.
“Partners”meanstheGeneralPartnerandtheLimitedPartners.
“Partnership”shallhavethemeaningsetforthinthepreambletothisAgreement.
“PartnershipGroup”meanscollectivelythePartnershipanditsSubsidiaries.
“PartnershipInterest”meansanyclassorseriesofequityinterestinthePartnership,whichshallincludeanyGeneralPartnerInterestandLimitedPartnerInterestsbutshallexcludeanyoptions,rights,warrantsandappreciationrightsrelatingtoanequityinterestinthePartnership.
“Person”meansanindividualoracorporation,firm,limitedliabilitycompany,partnership,jointventure,trust,unincorporatedorganization,association,governmentagencyorpoliticalsubdivisionthereoforotherentity.
“Quarter”means,unlessthecontextrequiresotherwise,afiscalquarterofthePartnership,or,withrespecttothefirstfiscalquarterofthePartnershipafterthedatehereof,theportionofsuchfiscalquarterafterthedatehereof.
“Subsidiary”means,withrespecttoanyPerson,(a)acorporationofwhichmorethan50%ofthevotingpowerofsharesentitled(withoutregardtotheoccurrenceofanycontingency)tovoteintheelectionofdirectorsorothergoverningbodyofsuchcorporationisowned,directlyorindirectly,atthedateofdetermination,bysuchPerson,byoneormoreSubsidiariesofsuchPersonoracombinationthereof,(b)apartnership(whethergeneralorlimited)inwhichsuchPersonoraSubsidiaryofsuchPersonis,atthedateofdetermination,ageneralorlimitedpartnerofsuchpartnership,butonlyifmorethan50%ofthepartnershipinterestsofsuchpartnership(considering
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allofthepartnershipinterestsofthepartnershipasasingleclass)isowned,directlyorindirectly,atthedateofdetermination,bysuchPerson,byoneormoreSubsidiariesofsuchPerson,oracombinationthereof,or(c)anyotherPerson(otherthanacorporationorapartnership)inwhichsuchPerson,oneormoreSubsidiariesofsuchPerson,oracombinationthereof,directlyorindirectly,atthedateofdetermination,has(i)atleastamajorityownershipinterestor(ii)thepowertoelectordirecttheelectionofamajorityofthedirectorsorothergoverningbodyofsuchPerson.
“SurvivingEntity”shallhavethemeaningsetforthintheAMIDMergerAgreement.
“UnitMajority”meansatleastamajorityoftheoutstandingCommonUnits.
“WorkingCapitalBorrowings”meansborrowingsusedsolelyforworkingcapitalpurposesortopaydistributionstoPartnersmadepursuanttoacreditfacility,commercialpaperfacilityorothersimilarfinancingarrangements,providedthatwhensuchborrowingsareincurreditistheintentoftheborrowertorepaysuchborrowingswithin12monthsotherthanfromadditionalWorkingCapitalBorrowings.
Section1.2Construction.Unlessthecontextrequiresotherwise:(a)anypronounusedinthisAgreementshallincludethecorrespondingmasculine,feminineorneuterforms,andthesingularformofnouns,pronounsandverbsshallincludethepluralandviceversa;(b)referencestoArticlesandSectionsrefertoArticlesandSectionsofthisAgreement;(c)theterms“include,”“includes,”“including”orwordsoflikeimportshallbedeemedtobefollowedbythewords“withoutlimitation”;and(d)theterms“hereof,”“herein”or“hereunder”refertothisAgreementasawholeandnottoanyparticularprovisionofthisAgreement.ThetableofcontentsandheadingscontainedinthisAgreementareforreferencepurposesonly,andshallnotaffectinanywaythemeaningorinterpretationofthisAgreement.
Section1.3Conflicts.IntheeventofadirectconflictbetweentheprovisionsofthisAgreementandthemandatoryprovisionsoftheDelawareActoranyprovisionoftheCertificate,theDelawareActandtheCertificate,inthatorderofpriority,shallcontrol.
ARTICLEII.ORGANIZATION
Section2.1Formation.ThePartnershipwasformedasalimitedpartnershippursuanttotheprovisionsoftheDelawareRevisedUniformLimitedPartnershipAct,asamendedfromtimetotime(the“DelawareAct”).ThePartnersherebyamendandrestatetheFifthA/RPartnershipAgreementinitsentirety.ThisamendmentandrestatementshallbecomeeffectiveonthedateofthisAgreement.ExceptasexpresslyprovidedtothecontraryinthisAgreement,therights,duties(includingfiduciaryduties),liabilitiesandobligationsofthePartnersandtheadministration,dissolutionandterminationofthePartnershipshallbegovernedbytheDelawareAct.AllPartnershipInterestsshallconstitutepersonalpropertyoftheownerthereofforallpurposes.
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Section2.2Name.ThenameofthePartnershipshallbe“AmericanMidstreamPartners,LP.”ThePartnership’sbusinessmaybeconductedunderanyothernameornamesasdeterminedbytheGeneralPartner,includingthenameoftheGeneralPartner.Thewords“LimitedPartnership,”“LP,”“Ltd.”orsimilarwordsorlettersshallbeincludedinthePartnership’snamewherenecessaryforthepurposeofcomplyingwiththelawsofanyjurisdictionthatsorequires.TheGeneralPartnermaychangethenameofthePartnershipatanytimeandfromtimetotimeandshallnotifytheLimitedPartnersofsuchchangeinthenextregularcommunicationtotheLimitedPartners.
Section2.3RegisteredOffice;RegisteredAgent;PrincipalOffice;OtherOffices.UnlessanduntilchangedbytheGeneralPartner,theregisteredofficeofthePartnershipintheStateofDelawareshallbelocatedat1209OrangeStreet,Wilmington,Delaware19801,andtheregisteredagentforserviceofprocessonthePartnershipintheStateofDelawareatsuchregisteredofficeshallbeTheCorporationTrustCompany.TheprincipalofficeofthePartnershipshallbelocatedat2103CityWestBlvd.,Bldg.4,Suite800,Houston,Texas77042,orsuchotherplaceastheGeneralPartnermayfromtimetotimedesignatebynoticetotheLimitedPartners.ThePartnershipmaymaintainofficesatsuchotherplaceorplaceswithinoroutsidetheStateofDelawareastheGeneralPartnershalldeterminenecessaryorappropriate.TheaddressoftheGeneralPartnershallbe200ClarendonStreet,55thFloor,BostonMA02116,orsuchotherplaceastheGeneralPartnermayfromtimetotimedesignatebynoticetotheLimitedPartners.
Section2.4PurposeandBusiness.ThepurposeandnatureofthebusinesstobeconductedbythePartnershipshallbeto(a)engagedirectlyin,orenterintoorform,holdanddisposeofanycorporation,partnership,jointventure,limitedliabilitycompanyorotherarrangementtoengageindirectlyin,anybusinessactivitythatisapprovedbytheGeneralPartner,initssolediscretion,andthatlawfullymaybeconductedbyalimitedpartnershiporganizedpursuanttotheDelawareActand,inconnectiontherewith,toexercisealloftherightsandpowersconferreduponthePartnershippursuanttotheagreementsrelatingtosuchbusinessactivity,and(b)doanythingnecessaryorappropriatetotheforegoing,includingthemakingofcapitalcontributionsorloanstoaGroupMember;provided,however,thattheGeneralPartnershallnotcausethePartnershiptoengage,directlyorindirectly,inanybusinessactivitythattheGeneralPartnerdetermineswouldbereasonablylikelytocausethePartnershiptobetreatedasanassociationtaxableasacorporationorotherwisetaxableasanentityforfederalincometaxpurposes.Tothefullestextentpermittedbylaw,theGeneralPartnershallhavenodutyorobligationtoproposeorapprove,andmay,initssolediscretion,declinetoproposeorapprove,theconductbythePartnershipofanybusinessfreeofanyfiduciarydutyorobligationwhatsoevertothePartnership,anyLimitedPartnerand,indecliningtosoproposeorapprove,shallnotberequiredtoactingoodfaithorpursuanttoanyotherstandardimposedbythisAgreement,anyGroupMemberagreement,anyotheragreementcontemplatedherebyorundertheDelawareActoranyotherlaw,ruleorregulationoratequity.
Section2.5Powers.ThePartnershipshallbeempoweredtodoanyandallactsandthingsnecessary,appropriate,proper,advisable,incidentaltoorconvenientforthefurtheranceandaccomplishmentofthepurposesandbusinessdescribedinSection2.4andfortheprotectionandbenefitofthePartnership.
Section2.6Term.ThetermofthePartnershipcommenceduponthefilingoftheCertificateofLimitedPartnershipinaccordancewiththeDelawareActandshallcontinueinexistenceuntilthedissolutionofthePartnershipinaccordancewiththeprovisionsofARTICLEVIII.TheexistenceofthePartnershipasaseparatelegalentityshallcontinueuntilthecancellationoftheCertificateofLimitedPartnershipasprovidedintheDelawareAct.
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Section2.7PartnershipInterests;Certificates.CommonUnitshavebeenissuedbythePartnership,representingafractionalpartofthePartnershipInterestsofallLimitedPartners,andhavingtherightsandobligationsspecifiedwithrespecttoCommonUnitsinthisAgreement.UnlessotherwisedeterminedbytheGeneralPartner,thePartnershipshallnotissueanycertificatestoevidenceownershipofPartnershipInterests(oranyportionthereof).
ARTICLEIII.PARTNERSANDCAPITALCONTRIBUTIONS
Section3.1LimitedPartners.
(a)NameandAddress.ThenameandaddressoftheLimitedPartnerisAnchorMidstreamAcquisition,LLC,c/oArcLightCapitalPartners,LLC,200ClarendonStreet,55thFloor,Boston,MA02116.Asofthedatehereof,AnchorAcquisitionisthesoleLimitedPartnerandowns100%oftheCommonUnits.
(b)AdmissionofAdditionalLimitedPartners.OneormoreadditionalLimitedPartnersmaybeadmittedtothePartnershipwiththeconsentoftheGeneralPartner.ConcurrentlywiththeadmissionofanysuchadditionalLimitedPartnertothePartnership,theGeneralPartnershallamendthisAgreementtomakesuchchangesastheGeneralPartnershalldeterminetoreflectthefactthatthePartnershipshallhavesuchadditionalLimitedPartners.EachadditionalLimitedPartnershallexecuteanddeliverajoinderorcounterparttothisAgreement(asamendedinaccordancewiththeimmediatelyprecedingsentence),asnecessary,appropriateoradvisable.
(c)Withdrawal.ALimitedPartnermaynotwithdrawasaPartnerofthePartnership,normayaLimitedPartnerberequiredtowithdraw,normayaLimitedPartnerborroworwithdrawanyamountfromthePartnership,withoutthepriorwrittenconsentoftheGeneralPartner.
Section3.2CapitalContributions.ThePartnershavemadecapitalcontributionstothePartnershipassetforthinthebooksandrecordsofthePartnership.NoPartnershallberequiredtomakeanyadditionalcapitalcontributiontothePartnershippursuanttothisAgreement.
Section3.3NoTermination.Thesubstitution,death,insanity,dissolution(whethervoluntaryorinvoluntary),orbankruptcyofaLimitedPartnerwillnotaffecttheexistenceofthePartnership,andthePartnershipwillcontinueforthetermofthisAgreementuntilitsexistenceisterminatedasprovidedherein,ifthereisanotherLimitedPartneratsuchtime.
Section3.4TaxClassification.ThePartnershipshallbedisregardedasanentityseparatefromtheGeneralPartnerforU.S.federal(andapplicablestateandlocal)incometaxpurposesandshallnotmakeanyelectioncontrarytosuchclassification,exceptasotherwisedeterminedbytheGeneralPartner.
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ARTICLEIV.DISTRIBUTIONS
Section4.1Distributions.SubjecttothisSection4.1,within45daysfollowingtheendofeachQuarter,anamountequalto100%oftheAvailableCashwithrespecttosuchQuartershallbemadebythecompanytotheLimitedPartnersonaproratabasisinaccordancewiththeirrespectiveLimitedPartnerInterests.Notwithstandingtheforegoing,upondissolutionofthePartnershipasprovidedinARTICLEVIII,allcashreceivedduringoraftersuchQuarterinwhichsuchdissolutionoccurs,otherthanfromWorkingCapitalBorrowings,shallbeappliedanddistributedsolelyinaccordancewith,andsubjecttothetermsandconditionsof,ARTICLEVIII.NotwithstandinganyprovisiontothecontrarycontainedinthisAgreement,thePartnershipshallnotberequiredtomakeadistributiontotheLimitedPartnersifsuchdistributionwouldviolatetheDelawareActoranyotherapplicablelaw.TheGeneralPartnermaytreattaxespaidbythePartnershiponbehalfof,oramountswithheldwithrespectto,anyLimitedPartnerasadistributionofAvailableCashtosuchLimitedPartner.
ARTICLEV.MANAGEMENT
Section5.1Management.NoLimitedPartner,initscapacityassuch,shallparticipateintheoperation,managementorcontrol(withinthemeaningoftheDelawareAct)ofthePartnership’sbusiness,transactanybusinessinthePartnership’snameorhavethepowertosigndocumentsfororotherwisebindthePartnership.AllactionstakenbyanyAffiliateoftheGeneralPartneroranyofficer,director,employee,manager,member,generalpartner,agentortrusteeoftheGeneralPartneroranyofitsAffiliates,oranyofficer,director,employee,manager,member,generalpartner,agentortrusteeofaGroupMember,initscapacityassuch,shallnotbedeemedtobeparticipatinginthecontrolofthebusinessofthePartnershipbyalimitedpartnerofthePartnership(withinthemeaningofSection17-303(a)oftheDelawareAct)andshallnotaffect,impairoreliminatethelimitationsontheliabilityoftheLimitedPartnersunderthisAgreement.
Section5.2ReimbursementoftheGeneralPartner.
(a)ExceptasprovidedinthisSection5.2andelsewhereinthisAgreement,theGeneralPartnershallnotbecompensatedforitsservicesasageneralpartnerormanagingmemberofanyGroupMember.
(b)TheGeneralPartnershallbereimbursedonamonthlybasis,orsuchotherbasisastheGeneralPartnermaydetermine,for(i)alldirectandindirectexpensesitincursorpaymentsitmakesonbehalfofthePartnershipGroup(includingsalary,bonus,incentivecompensation,employmentbenefitsandotheramountspaidtoanyPerson,includingAffiliatesoftheGeneralPartnertoperformservicesforthePartnershipGrouporfortheGeneralPartnerinthedischargeofitsdutiestothePartnershipGroup),and(ii)allotherexpensesallocabletothePartnershipGrouporotherwiseincurredbytheGeneralPartnerinconnectionwithoperatingthePartnershipGroup’sbusiness(includingexpensesallocatedtotheGeneralPartnerbyitsAffiliates).TheGeneralPartnershalldeterminetheexpensesthatareallocabletotheGeneralPartnerorthePartnershipGroup.ReimbursementspursuanttothisSection5.2shallbeinaddition
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toanyreimbursementtotheGeneralPartnerastotheresultofindemnificationpursuanttoSection6.2.AnyallocationofexpensestothePartnershipbyAffiliatesoftheGeneralPartnerinamannerconsistentwiththen-applicableaccountingandallocationmethodologiesgenerallypermittedbyFERCforrate-makingpurposes(orintheabsenceofthen-applicablemethodologiespermittedbyFERC,consistentwiththemost-recentlyapplicablemethodologies)andpastbusinesspracticesshallbedeemedtobefairandreasonabletothePartnership.
(c)TheGeneralPartner,withouttheapprovaloftheLimitedPartners(whoshallhavenorighttovoteinrespectthereof),mayproposeandadoptonbehalfofthePartnershipbenefitplans,programsandpractices(includinganyplans,programsandpracticesinvolvingtheissuanceofPartnershipInterestsoroptionstopurchaseorrights,warrantsorappreciationrightsorphantomortrackinginterestsorothereconomicinterestsinthePartnershiporrelatingtoPartnershipInterests),orcausethePartnershiptoissuePartnershipInterestsorothersecuritiesinconnectionwith,orpursuantto,anybenefitplan,programorpracticemaintainedorsponsoredbytheGeneralPartneroranyofitsAffiliatesineachcaseforthebenefitofemployees,officersanddirectorsoftheGeneralPartneroranyofitsAffiliates,inrespectofservicesperformed,directlyorindirectly,forthebenefitofthePartnershipGroup.ThePartnershipagreestoissueandselltotheGeneralPartneroranyofitsAffiliatesanyPartnershipInterestsorothersecuritiesthattheGeneralPartnerorsuchAffiliatesareobligatedtoprovidetoanyemployees,officersanddirectorspursuanttoanysuchbenefitplans,programsorpractices.ExpensesincurredbytheGeneralPartnerinconnectionwithanysuchplans,programsandpractices(includingthenetcosttotheGeneralPartnerorsuchAffiliatesofPartnershipInterestsorothersecuritiespurchasedbytheGeneralPartnerorsuchAffiliates,fromthePartnershiporotherwise,tofulfilloptionsorawardsundersuchplans,programsandpractices)shallbereimbursedinaccordancewithSection5.2(b).AnyandallobligationsoftheGeneralPartnerunderanybenefitplans,programsorpracticesadoptedbytheGeneralPartneraspermittedbythisSection5.2(c)shallconstituteobligationsoftheGeneralPartnerhereunderandshallbeassumedbyanytransfereeoforsuccessortoalloftheGeneralPartner’sPartnershipInterest.
(d)TheGeneralPartneranditsAffiliatesmaychargeanymemberofthePartnershipGroupamanagementfeetotheextentnecessarytoallowthePartnershipGrouptoreducetheamountofanystatefranchiseorincometaxoranytaxbasedupontherevenuesorgrossmarginofanymemberofthePartnershipGroupifthetaxbenefitproducedbythepaymentofsuchmanagementfeeorfeesexceedstheamountofsuchfeeorfees.
ARTICLEVI.LIMITATIONSONLIABILITYANDINDEMNITY
Section6.1LimitationonLiability.Exceptasotherwiseexpresslyrequiredbylaw,theLimitedPartners,intheirrespectivecapacitiesassuch,shallhavenoliabilityfortheobligations,debtsorliabilitiesofthePartnershipexcepttotheextentprovidedintheDelawareAct.
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Section6.2Indemnification.
(a)TothefullestextentpermittedbylawbutsubjecttothelimitationsexpresslyprovidedinthisAgreement,allIndemniteesshallbeindemnifiedandheldharmlessbythePartnershipfromandagainstanyandalllosses,claims,damages,liabilities,jointorseveral,expenses(includinglegalfeesandexpenses),judgments,fines,penalties,interest,settlementsorotheramountsarisingfromanyandallthreatened,pendingorcontemplatedclaims,demands,actions,suitsorproceedings,whethercivil,criminal,administrativeorinvestigative,andwhetherformalorinformalandincludingappealsinwhichanyIndemniteemaybeinvolved,oristhreatenedtobeinvolved,asapartyorotherwise,byreasonofitsstatusasanIndemniteeandacting(orrefrainingtoact)insuchcapacity;provided,thattheIndemniteeshallnotbeindemnifiedandheldharmlesspursuanttothisAgreementiftherehasbeenafinalandnon-appealablejudgmententeredbyacourtofcompetentjurisdictiondeterminingthat,inrespectofthematterforwhichtheIndemniteeisseekingindemnificationpursuanttothisAgreement,theIndemniteeactedinbadfaithorengagedinfraud,willfulmisconductor,inthecaseofacriminalmatter,actedwithknowledgethattheIndemnitee’sconductwasunlawful.AnyindemnificationpursuanttothisSection6.2shallbemadeonlyoutoftheassetsofthePartnership,itbeingagreedthattheGeneralPartnershallnotbepersonallyliableforsuchindemnificationandshallhavenoobligationtocontributeorloananymoniesorpropertytothePartnershiptoenableittoeffectuatesuchindemnification.
(b)Tothefullestextentpermittedbylaw,expenses(includinglegalfeesandexpenses)incurredbyanIndemniteewhoisindemnifiedpursuanttoSection6.2(a)inappearingat,participatinginordefendinganyclaim,demand,action,suitorproceedingshall,fromtimetotime,beadvancedbythePartnershippriortoafinalandnon-appealablejudgmententeredbyacourtofcompetentjurisdictiondeterminingthat,inrespectofthematterforwhichtheIndemniteeisseekingindemnificationpursuanttothisSection6.2,theIndemniteeisnotentitledtobeindemnifieduponreceiptbythePartnershipofanyundertakingbyoronbehalfoftheIndemniteetorepaysuchamountifitshallbeultimatelydeterminedthattheIndemniteeisnotentitledtobeindemnifiedasauthorizedbythisSection6.2.
(c)TheindemnificationprovidedbythisSection6.2shallbeinadditiontoanyotherrightstowhichanIndemniteemaybeentitledunderanyagreement,pursuanttoanyvoteoftheholdersofoutstandingLimitedPartnerInterests,asamatteroflaw,inequityorotherwise,bothastoactionsintheIndemnitee’scapacityasanIndemniteeandastoactionsinanyothercapacity,andshallcontinueastoanIndemniteewhohasceasedtoserveinsuchcapacityandshallinuretothebenefitoftheheirs,successors,assignsandadministratorsoftheIndemnitee.
(d)ThePartnershipmaypurchaseandmaintain(orreimbursetheGeneralPartneroritsAffiliatesforthecostof)insurance,onbehalfoftheGeneralPartner,itsAffiliates,theIndemniteesandsuchotherPersonsastheGeneralPartnershalldetermine,againstanyliabilitythatmaybeassertedagainst,orexpensethatmaybeincurredby,suchPersoninconnectionwiththePartnership’sactivitiesorsuchPerson’sactivitiesonbehalfofthePartnership,regardlessofwhetherthePartnershipwouldhavethepowertoindemnifysuchPersonagainstsuchliabilityundertheprovisionsofthisAgreement.
(e)ForpurposesofthisSection6.2,thePartnershipshallbedeemedtohaverequestedanIndemniteetoserveasfiduciaryofanemployeebenefitplanwhenevertheperformancebyitofitsdutiestothePartnershipalsoimposesdutieson,orotherwiseinvolvesservicesby,ittotheplanorparticipantsorbeneficiariesoftheplan;excisetaxesassessedonanIndemniteewithrespecttoanemployeebenefitplanpursuanttoapplicablelawshallconstitute
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“fines”withinthemeaningofSection6.2(a),andactiontakenoromittedbyitwithrespecttoanyemployeebenefitplanintheperformanceofitsdutiesforapurposereasonablybelievedbyittobeinthebestinterestoftheparticipantsandbeneficiariesoftheplanshallbedeemedtobeforapurposethatisinthebestinterestsofthePartnership.
(f)InnoeventmayanIndemniteesubjecttheLimitedPartnerstopersonalliabilitybyreasonoftheindemnificationprovisionssetforthinthisAgreement.
(g)AnIndemniteeshallnotbedeniedindemnificationinwholeorinpartunderthisSection6.2solelybecausetheIndemniteehadaninterestinthetransactionwithrespecttowhichtheindemnificationappliesifthetransactionwasotherwisepermittedbythetermsofthisAgreement.
(h)TheprovisionsofthisSection6.2areforthebenefitoftheIndemniteesandtheirheirs,successors,assigns,executorsandadministratorsandshallnotbedeemedtocreateanyrightsforthebenefitofanyotherPersons.
(i)Noamendment,modificationorrepealofthisSection6.2oranyprovisionhereofshallinanymannerterminate,reduceorimpairtherightofanypast,presentorfutureIndemniteetobeindemnifiedbythePartnership,northeobligationsofthePartnershiptoindemnifyanysuchIndemniteeunderandinaccordancewiththeprovisionsofthisSection6.2asineffectimmediatelypriortosuchamendment,modificationorrepealwithrespecttoclaimsarisingfromorrelatingtomattersoccurring,inwholeorinpart,priortosuchamendment,modificationorrepeal,regardlessofwhensuchclaimsmayariseorbeasserted.
Section6.3LiabilityofIndemnitees.
(a)NotwithstandinganythingtothecontrarysetforthinthisAgreement,noIndemniteeshallbeliableformonetarydamagestothePartnership,thePartnersoranyotherPersonswhohaveacquiredinterestsinthePartnershipInterests,forlossessustainedorliabilitiesincurredasaresultofanyactoromissionofanIndemniteeunlesstherehasbeenafinalandnon-appealablejudgmententeredbyacourtofcompetentjurisdictiondeterminingthat,inrespectofthematterinquestion,theIndemniteeactedinbadfaithorengagedinfraud,willfulmisconductor,inthecaseofacriminalmatter,actedwithknowledgethattheIndemnitee’sconductwascriminal.
(b)SubjecttoitsobligationsanddutiesasGeneralPartnersetforthinSection6.2(a),theGeneralPartnermayexerciseanyofthepowersgrantedtoitbythisAgreementandperformanyofthedutiesimposeduponithereundereitherdirectlyorbyorthroughitsagents,andtheGeneralPartnershallnotberesponsibleforanymisconductornegligenceonthepartofanysuchagentappointedbytheGeneralPartneringoodfaith.
(c)Totheextentthat,atlaworinequity,anIndemniteehasduties(includingfiduciaryduties)andliabilitiesrelatingtheretotothePartnershiportothePartners,theGeneralPartnerandanyotherIndemniteeactinginconnectionwiththePartnership’sbusinessoraffairsshallnotbeliabletothePartnershiportoanyPartnerforitsgoodfaithrelianceontheprovisionsofthisAgreement.
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(d)Anyamendment,modificationorrepealofthisSection6.3oranyprovisionhereofshallbeprospectiveonlyandshallnotinanywayaffectthelimitationsontheliabilityoftheIndemniteesunderthisSection6.3asineffectimmediatelypriortosuchamendment,modificationorrepealwithrespecttoclaimsarisingfromorrelatingtomattersoccurring,inwholeorinpart,priortosuchamendment,modificationorrepeal,regardlessofwhensuchclaimsmayariseorbeasserted.
ARTICLEVII.TRANSFERABILITY
Section7.1TransfersofPartnershipInterests.WithouttheconsentoftheGeneralPartner,aLimitedPartnermaynotsell,assign,transfer,pledge,orotherwisedisposeofalloranypartofitsPartnershipInterests.AtransfereeofsuchPartnershipInterests(orsuchportionthereof)shallbeadmittedtothePartnershipasaPartnereffectiveuponthelaterof(a)thedueexecutionofajoinderorcounterparttothisAgreement(asamendedinaccordanceherewith)and(b)thetransferofsuchPartnershipInterest(orsuchportionthereof)tosuchtransferee.
ARTICLEVIII.DISSOLUTIONANDLIQUIDATION
Section8.1Dissolution.ThePartnershipshallbedissolvedupontheoccurrenceofanyofthefollowingevents:
(a)theentryofadecreeofjudicialdissolutionofthePartnershippursuanttotheprovisionsoftheDelawareAct;
(b)anelectiontodissolvethePartnershipbytheGeneralPartnerthatisapprovedbytheholdersofaUnitMajority;or
(c)atanytimetherearenoLimitedPartners,unlessthePartnershipiscontinuedwithoutdissolutioninaccordancewiththeDelawareAct.
Section8.2EffectofDissolution.Upondissolution,thePartnershipshallceasetocarryonitsbusiness,exceptaspermittedbytheDelawareAct.
Section8.3WindingUp,LiquidationandDistributionofAssets.Upondissolution,thePartnership’saffairsshallbewoundupinanorderlymanner.TheGeneralPartneroritsdesigneeshallbetheliquidatortowinduptheaffairsofthePartnership(suchindividual,insuchcapacity,the“Liquidator”).Inperformingitsduties,theLiquidatorisauthorizedtosell,distribute,exchangeorotherwisedisposeofPartnershipassetsinaccordancewiththeDelawareActinanymannerthattheLiquidatorshalldetermine.
Section8.4CertificateofCancellation.UponcompletionofthewindingupoftheaffairsofthePartnership,theGeneralPartneroritsdesigneeshallfileadulyexecutedcertificateofcancellationwiththeSecretaryofStateoftheStateofDelawareinaccordancewiththeDelawareAct.
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ARTICLEIX.MISCELLANEOUS
Section9.1Amendments.ThisAgreementmaybeamendedforanyreasonbytheGeneralPartnerinitssolediscretionandnoamendmenttothisAgreementshallrequiretheconsentoftheLimitedPartners.
Section9.2Successors.Exceptasotherwiseprovidedherein,thisAgreementwillinuretothebenefitofandbebindinguponthePartnersandtheirlegalrepresentatives,heirs,successorsandassigns.
Section9.3NoThirdPartyBeneficiaries.ThisAgreementshallnotconferanyrightsorremediesuponanyPersonotherthanthePartnersandtheirrespectivesuccessorsandpermittedassigns.
Section9.4GoverningLaw;Severability.ThisAgreementshallbegovernedbyandconstruedinaccordancewiththelawsoftheStateofDelaware,withoutregardtotheconflictoflawrulesthereof,and,tothemaximumextentpossible,insuchmannerastocomplywithallthetermsandconditionsoftheDelawareAct.IfitisdeterminedbyacourtofcompetentjurisdictionthatanyprovisionofthisAgreementisinvalidunderapplicablelaw,suchprovisionwillbeineffectiveonlyinsuchjurisdictionandonlytotheextentofsuchprohibitionorinvalidity,withoutinvalidatingtheremainderofthisAgreement.
Section9.5Notices.Allnotices,demandsandothercommunicationstobegivenanddeliveredunderorbyreasonofprovisionsunderthisAgreementwillbeinwritingandwillbedeemedtohavebeengivenwhenpersonallydelivered,mailedbyfirstclassmail,returnreceiptrequestedorbyreliableovernightcourier,ortransmittedbyelectronicmailtransmissionorelectronicfacsimiletotheaddressessetforthonthesignaturepageheretoortosuchotheraddressashasbeenindicatedtoallPartners.
Section9.6Counterparts.ThisAgreementmaybeexecutedinanynumberofcounterparts,anyoneofwhichneednotcontainthesignaturesofmorethanoneparty,butallofsuchcounterpartstogethershallconstituteoneagreement,andtotheextentsuchagreementissignedanddeliveredbymeansofafacsimilemachineorotherelectronictransmission,itwillbetreatedinallmannerandrespectsasanoriginalagreementandwillbeconsideredtohavethesamebindinglegaleffectasifitweretheoriginalsignedversionthereofdeliveredinperson.
[Signaturepagesfollow.]
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IN WITNESS WHEREOF, theundersignedhavecausedthisAgreementtobesignedasofthedatefirstwrittenabove.
GENERAL PARTNER :
AMERICAN MIDSTREAM GP, LLC,aDelawarelimitedliabilitycompany
By: /s/DanielR.ReversName: DanielR.ReversTitle: PresidentAddress: c/oArcLightCapitalPartners,LLC
200ClarendonStreet,55thFloorBoston,MA02116
[SignaturePagetoSixthAmendedandRestatedAgreementofLimitedPartnershipofAmericanMidstreamPartners,LP]
LIMITED PARTNER :
ANCHOR MIDSTREAM ACQUISITION, LLC,aDelawarelimitedliabilitycompany
By: /s/DanielR.ReversName: DanielR.ReversTitle: PresidentAddress: c/oArcLightCapitalPartners,LLC
200ClarendonStreet,55thFloorBoston,MA02116
[SignaturePagetoSixthAmendedandRestatedAgreementofLimitedPartnershipofAmericanMidstreamPartners,LP]
Exhibit 3.2
StateofDelawareSecretaryofState
DivisionofCorporationsDelivered08:04AM07/23/2019FILED08:04AM07/23/2019
SR20196098621–FileNumber4720325
Execution Version
CERTIFICATE OF MERGER OFANCHOR MIDSTREAM MERGER SUB, LLC
(a Delaware limited liability company)WITH AND INTO
AMERICAN MIDSTREAM PARTNERS, LP(a Delaware limited partnership)
July23,2019
PursuanttoSection17-211oftheDelawareRevisedUniformLimitedPartnershipAct(the“DRULPA”)andSection18-209oftheDelawareLimitedLiabilityCompanyAct(the“DLLCA”),AmericanMidstreamPartners,LP,aDelawarelimitedpartnership(the“Partnership”),herebycertifiestothefollowinginformationrelatingtothemergerofAnchorMidstreamMergerSub,LLC,aDelawarelimitedliabilitycompany,withandintothePartnership(the“Merger”):
FIRST:
Thename,typeofentityandstateoforganizationofeachoftheconstituententities(the“ConstituentEntities”)totheMergerisasfollows:
Name Entity Type StateAmericanMidstreamPartners,LP LimitedPartnership Delaware
AnchorMidstreamMergerSub,LLC LimitedLiabilityCompany Delaware
SECOND:
TheAgreementandPlanofMergerhasbeenapprovedandexecutedbyeachoftheConstituentEntitiesinaccordancewithSection17-211oftheDRULPAandSection18-209oftheDLLCA.
THIRD:
ThePartnershipshallbetheentitysurvivingtheMerger(the“SurvivingEntity”),andthenameoftheSurvivingEntityshallremain“AmericanMidstreamPartners,LP.”
FOURTH:
ThecertificateoflimitedpartnershipofthePartnershipasineffectimmediatelypriortotheeffectivenessofthisCertificateofMergershallbethecertificateoflimitedpartnershipoftheSurvivingEntity,withoutanychangesoramendmentstheretoasaresultoftheMerger.
FIFTH:
TheAgreementandPlanofMergerisonfileat2103CityWestBlvd.,Building4,Suite800,Houston,Texas77042,aplaceofbusinessoftheSurvivingEntity,andacopythereofwillbefurnishedbytheSurvivingEntity,onrequestandwithoutcost,toanypartnerormemberof,orpersonholdinganinterestin,eitheroftheConstituentEntities.
SIXTH:
ThisCertificateofMergerandtheMergershallbecomeeffectiveatthetimethisCertificateofMergerisfiledwiththeSecretaryofStateoftheStateofDelaware.
[Signaturepagefollows.]
IN WITNESS WHEREOF, theSurvivingEntityhasexecutedanddeliveredthisCertificateofMergerasofthedatefirstwrittenabove.
AMERICAN MIDSTREAM PARTNERS, LP
By:AMERICANMIDSTREAMGP,LLC,itsgeneralpartner
By: /s/LouisJ.DoreyName: LouisJ.DoreyTitle: InterimPresidentandChiefExecutiveOfficer
[SignaturePagetoCertificateofMerger]
Exhibit 3.3
Execution Version
STATE OF DELAWARECERTIFICATE OF FORMATION
OFTHIRD COAST MIDSTREAM, LLC
July23,2019
ThisCertificateofFormationofThirdCoastMidstream,LLC,datedasofJuly23,2019,isbeingdulyexecutedandfiledbytheundersigned,anauthorizedperson,toformalimitedliabilitycompanyunderSections18-201and18-204oftheDelawareLimitedLiabilityCompanyAct.
FIRST: Thenameofthelimitedliabilitycompanyis“ThirdCoastMidstream,LLC”(the“Company”).
SECOND: TheaddressoftheregisteredofficeoftheCompanyintheStateofDelawareis1209OrangeStreet,Wilmington,Delaware,19801.
THIRD:
ThenameandaddressoftheregisteredagentforserviceofprocessontheCompanyintheStateofDelawareisTheCorporationTrustCompany,1209OrangeStreet,Wilmington,Delaware,19801.
[Signaturepagefollows.]
IN WITNESS WHEREOF, theundersignedhasexecutedthisCertificateofFormationasofthedatefirstwrittenabove.
SOLE MEMBER :
ANCHOR MIDSTREAM ACQUISITION, LLC,aDelawarelimitedliabilitycompany
By: /s/DanielR.ReversName: DanielR.ReversTitle: President
[SignaturePagetoCertificateofFormation–ThirdCoastMidstream,LLC]
Exhibit 3.4
Execution Version
THELIMITEDLIABILITYCOMPANYINTERESTSDESCRIBEDINTHISLIMITEDLIABILITYCOMPANYAGREEMENTHAVENOTBEENREGISTEREDUNDERTHESECURITIESACTOF1933,ASAMENDED,ORUNDERANYSTATESECURITIESACTSINRELIANCEUPONEXEMPTIONSUNDERTHOSEACTS.THESALEOROTHERDISPOSITIONOFSUCHLIMITEDLIABILITYCOMPANYINTERESTSISPROHIBITEDUNLESSSUCHSALEORDISPOSITIONISMADEINCOMPLIANCEWITHALLSUCHAPPLICABLEACTS.ADDITIONALRESTRICTIONSONTRANSFEROFSUCHLIMITEDLIABILITYCOMPANYINTERESTSARESETFORTHINTHISAGREEMENT.
LIMITED LIABILITY COMPANY AGREEMENTOF
THIRD COAST MIDSTREAM, LLC
ThisLimitedLiabilityCompanyAgreementofThirdCoastMidstream,LLC,aDelawarelimitedliabilitycompany(the“Company”),ismadeandenteredintoasofJuly23,2019,byThirdCoastMidstreamHoldings,LLC,aDelawarelimitedliabilitycompany,initscapacityasthesoleandmanagingmemberoftheCompany(anyPersonservinginsuchcapacity,the“ManagingMember”).
WITNESSETH:
WHEREAS,theCompanywasformedasalimitedliabilitycompanyonJuly23,2019,whenAmericanMidstreamPartners,LP,apredecessoroftheCompany(the“Partnership”),convertedfromaDelawarelimitedpartnershiptoalimitedliabilitycompany(the“Conversion”),pursuanttoaCertificateofConversionandaCertificateofFormation(the“Certificate”)filedwiththeSecretaryofStateoftheStateofDelawareonJuly23,2019,inaccordancewiththeprovisionsoftheDelawareLimitedLiabilityCompanyAct(Title6oftheDelawareCode,Section18-101,etseq.)(andanysuccessorstatute,asamendedfromtimetotime,the“Act”);
WHEREAS,asofthedatehereofandimmediatelypriortotheeffectivenessofthisAgreement,AnchorMidstreamAcquisition,LLC,aDelawarelimitedliabilitycompanyandthesolelimitedpartnerofthePartnership,ismergingwithandintotheManagingMember,withtheManagingMember,formerlyknownas“AmericanMidstreamGP,LLC”,survivingthemergeras“ThirdCoastMidstreamHoldings,LLC”(the“AffiliateMerger”);
WHEREAS,pursuanttotheConversion,alloftheissuedandoutstandingcommonunitsofthePartnershipwereconvertedintomembershipinterestsoftheCompany,andaftergivingeffecttotheAffiliateMerger,theManagingMember,whoheldalloftheissuedandoutstandingcommonunitsofthePartnership,holdsallofthemembershipinterestsoftheCompanyandisthesolememberoftheCompany;and
WHEREAS,theManagingMemberdesirestosetforthhereinitsstatementsregardingthemannerinwhichtheCompanyshallbegovernedandoperated.
NOW,THEREFORE,theundersigned,intendingtobelegallyboundhereby,certifiesandcovenantsthefollowing:
ARTICLEI.DEFINITIONSANDINTERPRETATION
1.1Definitions.ThefollowingtermshavethedefinitionshereinafterindicatedwheneverusedinthisAgreementwithinitialcapitalletters.
“Act”hasthemeaningsetforthintherecitalsofthisAgreement.
“AffiliateMerger”hasthemeaningsetforthintherecitalsofthisAgreement.
“Agreement”meansthisLimitedLiabilityCompanyAgreement,asamendedfromtimetotimeinaccordancewithitstermsandtheapplicableprovisionsoftheAct.
“AvailableCash”means,withrespecttoanyQuarterendingpriortothedissolutionoftheCompanypursuanttoArticleIX:
(a)thesumof(i)allcashandcashequivalentsoftheCompanyGroup(ortheCompany’sproportionateshareofcashandcashequivalentsinthecaseofSubsidiariesthatarenotwhollyowned)onhandattheendofsuchQuarter,and(ii)iftheManagingMembersodetermines,alloranyportionofadditionalcashandcashequivalentsoftheCompanyGroup(ortheCompany’sproportionateshareofcashandcashequivalentsinthecaseofSubsidiariesthatarenotwhollyowned)onhandonthedateofdeterminationofAvailableCashwithrespecttosuchQuarterresultingfromWorkingCapitalBorrowingsmadesubsequenttotheendofsuchQuarter;less
(b)theamountofanycashreserves(ortheCompany’sproportionateshareofcashreservesinthecaseofSubsidiariesthatarenotwhollyowned)establishedbytheManagingMemberto(i)providefortheproperconductofthebusinessoftheCompanyGroup(includingreservesforfuturecapitalexpendituresandforanticipatedfuturecreditneedsoftheCompanyGroupandforrefundsofcollectedratesreasonablylikelytoberefundedasaresultofasettlementorhearingrelatingtoFERCrateproceedingsorrateproceedingsunderapplicablestatelaw,ifany)subsequenttosuchQuarter,(ii)complywithapplicablelaworanyloanagreement,securityagreement,mortgage,debtinstrumentorotheragreementorobligationtowhichanymemberoftheCompanyGroupisapartyorbywhichitisboundoritsassetsaresubjector(iii)providefundsfordistributionsunderSection5.1inrespectofanyoneormoreofthenextfourQuarters;
provided,however,thatdisbursementsmadebyamemberoftheCompanyGrouporcashreservesestablished,increasedorreducedaftertheendofsuchQuarterbutonorbeforethedateofdeterminationofAvailableCashwithrespecttosuchQuartershallbedeemedtohavebeenmade,established,increasedorreduced,forpurposesofdeterminingAvailableCash,withinsuchQuarteriftheManagingMembersodetermines.
Notwithstandingtheforegoing,“AvailableCash”withrespecttotheQuarterinwhichthedissolutionoftheCompanyoccurspursuanttoArticleIXandanysubsequentQuartershallequalzero.
“Certificate”hasthemeaningsetforthintherecitalsofthisAgreement.
“Company”hasthemeaningsetforthinthepreambleofthisAgreement.
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“CompanyGroup”meanstheCompanyanditsSubsidiariestreatedasasingleconsolidatedentity.
“CoveredPerson”hasthemeaningsetforthinSection7.1.
“FERC”meanstheFederalEnergyRegulatoryCommissionorsuccessortopowersthereof.
“LiquidatingTrustee”meanstheManagingMemberorsuchotherPersonappointedbytheManagingMembertoserveastheliquidatingtrusteeoftheCompany.
“ManagingMember”hasthemeaningsetforthinthepreambleofthisAgreement.
“Member”meanseachoftheManagingMemberandanyPersonadmittedasanadditionalorsubstitutememberoftheCompanypursuanttothisAgreement.
“MembershipInterest”meansthelimitedliabilitycompanyinterestintheCompanyhavingallrightsandobligations(economicandotherwise)towhichaholderthereofmaybeentitledpursuanttothisAgreementandtheAct.
“Person”meansanynaturalperson,corporation,limitedpartnership,generalpartnership,limitedliabilitycompany,jointstockcompany,jointventure,association,company,estate,trust,orotherorganizationorentity,whetherornotalegalentity,custodian,trustee-executor,administrator,nomineeorentityinarepresentativecapacity,oranygovernmentoragencyorpoliticalsubdivisionthereof.
“Quarter”means,unlessthecontextrequiresotherwise,afiscalquarteroftheCompany,or,withrespecttothefirstfiscalquarteroftheCompanyafterthedatehereof,theportionofsuchfiscalquarterafterthedatehereof.
“Subsidiary”means,withrespecttoanyPerson,(a)acorporationofwhichmorethan50%ofthevotingpowerofsharesentitled(withoutregardtotheoccurrenceofanycontingency)tovoteintheelectionofdirectorsorothergoverningbodyofsuchcorporationisowned,directlyorindirectly,atthedateofdetermination,bysuchPerson,byoneormoreSubsidiariesofsuchPersonoracombinationthereof,(b)apartnership(whethergeneralorlimited)inwhichsuchPersonoraSubsidiaryofsuchPersonis,atthedateofdetermination,ageneralorlimitedpartnerofsuchpartnership,butonlyifmorethan50%ofthepartnershipinterestsofsuchpartnership(consideringallofthepartnershipinterestsofthepartnershipasasingleclass)isowned,directlyorindirectly,atthedateofdetermination,bysuchPerson,byoneormoreSubsidiariesofsuchPerson,oracombinationthereof,or(c)anyotherPerson(otherthanacorporationorapartnership)inwhichsuchPerson,oneormoreSubsidiariesofsuchPerson,oracombinationthereof,directlyorindirectly,atthedateofdetermination,has(i)atleastamajorityownershipinterestor(ii)thepowertoelectordirecttheelectionofamajorityofthedirectorsorothergoverningbodyofsuchPerson.
“Units”hasthemeaningsetforthinSection4.3.
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“WorkingCapitalBorrowings”meansborrowingsusedsolelyforworkingcapitalpurposesortopaydistributionstotheMembersmadepursuanttoacreditfacility,commercialpaperfacilityorothersimilarfinancingarrangements,providedthatwhensuchborrowingsareincurreditistheintentoftheborrowertorepaysuchborrowingswithin12monthsotherthanfromadditionalWorkingCapitalBorrowings.
1.2Construction.WheneverthesingularnumberisusedinthisAgreementandwhenrequiredbythecontext,thesameshallincludethepluralandviceversa,andthemasculinegendershallincludethefeminineandneutergendersandviceversa.
1.3Headings.TheheadingsinthisAgreementareinsertedforconvenienceonlyandareinnowayintendedtodescribe,interpret,define,orlimitthescope,extentorintentofthisAgreementoranyprovisionhereof.
1.4Conflicts.IntheeventofadirectconflictbetweentheprovisionsofthisAgreementandthemandatoryprovisionsoftheActoranyprovisionoftheCertificate,theActandtheCertificate,inthatorderofpriority,shallcontrol.
ARTICLEII.ORGANIZATIONALMATTERS
2.1Name.ThenameoftheCompanyis“ThirdCoastMidstream,LLC”.
2.2PrincipalPlaceofBusiness.TheprincipalplaceofbusinessoftheCompanyshallbe2103CityWestBlvd.,Bldg.4,Suite800,Houston,Texas77042,orsuchotherplaceastheManagingMembermayfromtimetotimedesignate.
2.3RegisteredOfficeandRegisteredAgent.TheinitialregisteredagentoftheCompanyisTheCorporationTrustCompany,andtheinitialregisteredofficeoftheCompanyshallbeat1209OrangeStreet,Wilmington,Delaware19801.TheManagingMembermaychangetheregisteredofficeandregisteredagentfromtimetotimebyfilingtheaddressofthenewregisteredofficeand/orthenameofthenewregisteredagentwiththeSecretaryofStateoftheStateofDelawarepursuanttotheAct.
2.4Term.ThetermoftheCompanycommencedupontheeffectivenessoftheCertificatewiththeSecretaryofStateoftheStateofDelaware,andshallcontinueindefinitely,unlessearlierdissolvedinaccordancewithSection9.1.
2.5TaxStatus.UntilsuchtimethatadditionalmembersareadmittedtotheCompanyinaccordancewithSection4.2,theManagingMemberintendsthattheCompanyshallbetreatedasadisregardedentityforallfederalandstateincometaxpurposes,ratherthananassociationtaxableasacorporation.AllprovisionsofthisAgreementaretobeconstruedsoastopreservetheCompany’staxstatusasadisregardedentity.
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ARTICLEIII.BUSINESSOFCOMPANY
ThebusinessoftheCompanyshallbetoengageinanylawfulactoractivitiesforwhichlimitedliabilitycompaniesmaybeformedpursuanttotheActandanylawfulactoractivitynecessary,appropriateoradvisabletherefororincidentalthereto.
ARTICLEIV.MEMBERS;CAPITAL
4.1ManagingMember.ThenameandaddressoftheManagingMemberisThirdCoastMidstreamHoldings,LLC,c/oArcLightCapitalPartners,LLC,200ClarendonStreet,55thFloor,BostonMA02116.Asofthedatehereof,theManagingMemberowns100%oftheMembershipInterest,andtherearenootherMembers.
4.2AdditionalMembers.OneormoreadditionalMembersmaybeadmittedtotheCompanywiththeconsentoftheManagingMember.ConcurrentlywiththeadmissionofanysuchadditionalMemberstotheCompany,theManagingMembershallamendthisAgreementtomakesuchchangesastheManagingMembershalldeterminetoreflectthefactthattheCompanyshallhavesuchadditionalMembers.EachadditionalMembershallexecuteanddeliverajoinderorcounterparttothisAgreement(asamendedinaccordancewiththeimmediatelyprecedingsentence),asnecessary,appropriateoradvisable.
4.3Units.TheCompanyshallhaveoneclassofunits,whichshallbeuncertificatedanddenominatedandreferredtohereinas“Units”.EachUnitshall(a)givetheMemberwhoistheownerthereoftherighttoreceivedistributions(liquidatingorotherwise)inaccordancewithSection5.1andasotherwisespecifiedhereinand(b)givetheMemberwhoistheownerthereoftheotherrightswithrespecttosuchUnitasspecifiedherein.
4.4IssuancesofNewUnits.Fromtimetotimeafterthedatehereof,theCompanyisauthorizedto,andshall,acceptadditionalcapitalcontributionsmadewiththeconsentoftheManagingMemberinexchangefortheissuanceofnewUnits.ExhibitAsetsforththeUnitsownedbytheManagingMemberasofthedatehereofandshallberevisedbytheOfficersasnecessarytoreflectchangesandadjustmentsresultingfromtheissuance,redemptionoranytransferofUnitsmadeinaccordancewiththetermsofthisAgreement;provided,thatafailuretoreflectanysuchissuance,redemptionoranytransferonExhibitAshallnotpreventanysuchissuance,redemptionoranytransferfrombeingeffective.
4.5AdditionalCapitalContributions.NoMembershallberequiredtomakeanyadditionalcapitalcontributiontotheCompanyinrespectoftheUnitsthenheldbysuchMemberexcepttotheextentanyMemberagreesinwritingtofundadditionalcapitalcontributionsasrequestedbytheManagingMember.EachUnitissuedtoaMemberpursuanttothisSection4.5willbedulyauthorizedandvalidlyissuedinaccordancewiththisAgreementandfullypaid(totheextentrequiredbythisAgreement)andnonassessable(exceptassuchnonassessabilitymaybeaffectedbymattersdescribedinSection18-607oftheAct).WiththeapprovaloftheManagingMember,theMembersmaymakecapitalcontributionsofpropertyinlieuofcash.Theamountofeachsuchadditionalcapitalcontributionshallbethefairmarketvalueofthecontributedproperty
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asdeterminedbytheManagingMemberorsuchotheramountasshallbeagreedbytheManagingMemberandthecontributingMember.TheprovisionsofthisSection4.5areintendedsolelytobenefittheMembersand,tothefullestextentpermittedbyapplicablelaw,shallnotbeconstruedasconferringanybenefituponanycreditoroftheCompany(andnosuchcreditorshallbeathird-partybeneficiaryofthisAgreement),andnoMembershallhaveanydutyorobligationtoanycreditoroftheCompanytomakeanyadditionalcapitalcontributionsortocausetheManagingMembertoconsenttothemakingofadditionalcapitalcontributions.
4.6WithdrawaloftheManagingMember.TheManagingMembershallbeentitledtovoluntarilywithdrawfromtheCompany.Uponsuchwithdrawal,ifnootherMemberexists,thentheCompanyshalldissolveinaccordancewiththeprovisionsofArticleIX.
ARTICLEV.DISTRIBUTIONS
5.1Distributions.SubjecttothisSection5.1,within45daysfollowingtheendofeachQuarter,anamountequalto100%ofAvailableCashwithrespecttosuchQuartershallbepaidbytheCompanytotheMembersonaproratabasisinaccordancewiththeirrespectiveMembershipInterests.Notwithstandingtheforegoing,upondissolutionoftheCompanyprovidedinSection9.1,allcashreceivedduringoraftersuchQuarterinwhichsuchdissolutionoccurs,otherthanfromWorkingCapitalBorrowings,shallbeappliedanddistributedsolelyinaccordancewith,andsubjecttothetermsandconditionsof,Section9.3.NotwithstandinganyotherprovisionofthisAgreement,alldistributionsrequiredtobemadeunderthisAgreementorotherwisemadebytheCompanyshallbemadesubjecttoSections18-607and18-804oftheAct.NotwithstandinganyprovisiontothecontrarycontainedinthisAgreement,theCompanyshallnotberequiredtomakeadistributiontotheMembersifsuchdistributionwouldviolatetheAct,anyotherapplicablelaworanyloanagreement,securityagreement,mortgage,debtinstrumentorotheragreementorobligationtowhichanymemberoftheCompanyGroupisapartyorbywhichitisboundoritsassetsaresubject.TheManagingMembermaytreattaxespaidbytheCompanyonbehalfof,oramountswithheldwithrespectto,anyMemberasadistributionofAvailableCashtosuchMember.
ARTICLEVI.MANAGEMENT
6.1Management.ThebusinessandaffairsoftheCompanyshallbemanagedbytheManagingMember.TheManagingMembershallhavecompleteauthority,poweranddiscretiontomanageandcontrolthebusiness,affairsandassetsoftheCompany,tomakealldecisionswithrespecttheretoandtoperformorundertakeanyandallotheractsoractivitiesnecessary,appropriateoradvisablefor,orincidentalto,themanagementorcontrolofthebusiness,affairsorassetsoftheCompany,includingdelegatinganyofitsauthoritytoanyOfficer(asdefinedbelow)pursuanttoandinaccordancewithSection6.2,andtodoanyandallotheractsandthingsnecessary,appropriateoradvisabletoeffectuatethepurposesofthisAgreement.TheManagingMembershallbedeemeda“manager”withinthemeaningoftheAct.AnyactiontakenbytheManagingMembershallconstitutetheactofandservetobindtheCompany.PersonsdealingwiththeCompanyareentitledtorelyconclusivelyonthepowerandauthorityoftheManagingMemberassetforthinthisAgreement.
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6.2Officers.
(a)TheManagingMembermay,fromtimetotime,designateoneormoreofficerstoactforandonbehalfoftheCompanywithsuchauthorityasmaybedelegatedtosuchofficersbytheManagingMember(eachsuchdesignatedindividual,an“Officer”),eachofwhomshallserveasanOfficeruntilhisorherdeath,resignation,removalordisqualificationoruntilhisorherreplacementisdesignatedinaccordancewithclause(e)ofthisSection6.2.TheOfficersmayconsistofaPresident,oneormoreVice-Presidents,aSecretary,oneormoreAssistantSecretaries,aTreasurerandoneormoreAssistantTreasurersandanyothertitlesasmaybedesignatedbytheManagingMember.Anynumberofofficesmaybeheldbythesameindividual.
(b)TheinitialOfficers,andtheirrespectivetitles,asofthedatehereof,aresetforthonExhibitB.TheManagingMembermayappointsuchadditionalOfficersasmaybenecessary,appropriateoradvisableforthebusinessoftheCompany,eachofwhomshallholdofficeforsuchperiod,havesuchauthorityandperformsuchdutiesasareprovidedinthisAgreementorastheManagingMembermayfromtimetotimedetermine.
(c)AnyactiontakenbyanOfficerdesignatedbytheManagingMemberpursuanttoauthoritydelegatedtosuchOfficershallconstitutetheactofandservetobindtheCompany.TheManagingMemberherebyauthorizesOfficerstobindtheCompanyandenterintoagreementsforandonbehalfoftheCompany.PersonsdealingwiththeCompanyareentitledtorelyconclusivelyonthepowerandauthorityofanyOfficerdesignatedinaccordancewiththisAgreementandanywritteninstrumentexecutedbytheManagingMemberdesignatingsuchOfficerand/ordelegatingauthoritytosuchOfficer.
(d)AnyOfficermayberemovedatanytime,withorwithoutcause,bytheManagingMember.AnyOfficermayresignatanytimebygivingwrittennoticetotheManagingMember.Anyresignationshalltakeeffectuponreceiptofsuchnoticeoratsuchlatertimeasmaybespecifiedtherein,andtheacceptanceoftheresignationshallnotbenecessarytomakeiteffective.Anyresignationiswithoutprejudicetotherights,ifany,oftheCompanyunderanycontracttowhichtheOfficerisaparty.
(e)AvacancyinanyofficeoftheCompanybecauseofdeath,resignation,removalordisqualificationorothercauseshallbefilledbytheManagingMember.
6.3OtherAgents.UnlessexpresslyauthorizedtodosobythisAgreementortheManagingMember,noattorney-in-fact,employeeorotheragentoftheCompanyshallhaveanypowerorauthoritytobindtheCompanyinanyway,includingtopledgeitscreditorassumeanyliabilityorundertakeanyotherobligationforanypurpose.
6.4NoExclusiveDutytoCompany.TheManagingMemberandeachOfficershallnotberequiredtotendtothebusinessandaffairsoftheCompanyassuchPerson’ssoleandexclusivefunction.TheManagingMemberandanyOfficermayhaveotherbusinessinterestsandmayengageinotheractivitiesinadditiontothoserelatingtotheCompany.TheCompanyshallnothaveanyright,byvirtueofthisAgreement,toshareorparticipateininvestmentsoractivitiesoftheManagingMemberorOfficerortotheincomeorproceedsderivedtherefrom(unlesssuchinvestmentsoractivitiesareconductedinsuchPerson’scapacityasaMemberormanageroftheCompanyoranOfficer).
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6.5BankAccounts.TheManagingMemberoranyOfficermayfromtimetotimeopenbankaccountsinthenameoftheCompany.
6.6Expenses.
(a)ExceptasprovidedinthisSection6.6andelsewhereinthisAgreement,theManagingMembershallnotbecompensatedforitsservicesasthemanagingmemberoftheCompanyoramanagerofanyoftheCompany’sSubsidiaries.
(b)TheManagingMembershallbereimbursedonamonthlybasis,orsuchotherbasisastheManagingMembermaydetermine,for(i)alldirectandindirectexpensesitincursorpaymentsitmakesonbehalfoftheCompanyGroup(includingsalary,bonus,incentivecompensation,employmentbenefitsandotheramountspaidtoanyPerson,includingaffiliatesoftheManagingMembertoperformservicesfortheCompanyGrouporfortheManagingMemberinthedischargeofitsdutiestotheCompanyGroup)and(ii)allotherexpensesallocabletotheCompanyGrouporotherwiseincurredbytheManagingMemberinconnectionwithoperatingtheCompanyGroup’sbusiness(includingexpensesallocatedtotheManagingMemberbyitsaffiliates).TheManagingMembershalldeterminetheexpensesthatareallocabletotheManagingMemberortheCompanyGroup.ReimbursementspursuanttothisSection6.6shallbeinadditiontoanyreimbursementtotheManagingMemberasaresultofindemnificationpursuanttoSection7.4.AnyallocationofexpensestotheCompanybyaffiliatesoftheManagingMemberinamannerconsistentwiththen-applicableaccountingandallocationmethodologiesgenerallypermittedbyFERCforrate-makingpurposes(orintheabsenceofthen-applicablemethodologiespermittedbyFERC,consistentwiththemost-recentlyapplicablemethodologies)andpastbusinesspracticesshallbedeemedtobefairandreasonabletotheCompany.
(c)TheManagingMembermayproposeandadoptonbehalfoftheCompanybenefitplans,programsandpractices(includingplans,programsandpracticesinvolvingtheissuanceofMembershipInterestsoroptionstopurchaseorrights,warrantsorappreciationrightsorphantomortrackinginterestsorothereconomicinterestsintheCompanyorrelatingtoMembershipInterests),orcausetheCompanytoissueMembershipInterestsorothersecuritiesinconnectionwith,orpursuantto,anybenefitplan,programorpracticemaintainedorsponsoredbytheManagingMemberoranyofitsaffiliatesineachcaseforthebenefitofemployees,officersanddirectorsoftheManagingMemberoranyofitsaffiliates,inrespectofservicesperformed,directlyorindirectly,forthebenefitoftheCompanyGroup.TheCompanyagreestoissueandselltotheManagingMemberoranyofitsaffiliatesanyMembershipInterestsorothersecuritiesthattheManagingMemberorsuchaffiliatesareobligatedtoprovidetoanyemployees,officersanddirectorspursuanttoanysuchbenefitplans,programsorpractices.ExpensesincurredbytheManagingMemberinconnectionwithanysuchplans,programsandpractices(includingthenetcosttotheManagingMemberorsuchaffiliatesofMembershipInterestsorothersecuritiespurchasedbytheManagingMemberorsuchaffiliates,fromtheCompanyorotherwise,tofulfilloptionsorawardsundersuchplans,programsandpractices)shallbereimbursedinaccordancewithSection6.6(b).AnyandallobligationsoftheManagingMemberunderanybenefitplans,programsorpracticesadoptedbytheManagingMemberaspermittedbythisSection6.6(c)shallconstituteobligationsoftheManagingMemberhereunderandshallbeassumedbyanytransfereeoforsuccessortoalloftheManagingMember’sMembershipInterest.
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(d)TheManagingMemberanditsaffiliatesmaychargeanymemberoftheCompanyGroupamanagementfeetotheextentnecessarytoallowtheCompanyGrouptoreducetheamountofanystatefranchiseorincometaxoranytaxbasedupontherevenuesorgrossmarginofanymemberoftheCompanyGroupifthetaxbenefitproducedbythepaymentofsuchmanagementfeeorfeesexceedstheamountofsuchfeeorfees.
ARTICLEVII.LIMITATIONSONLIABILITYANDINDEMNITY
7.1LimitationonLiability.Tothefullestextentpermittedbyapplicablelaw(includingtheAct),noneof(a)theManagingMember(ineachofitscapacitiesasaMemberandamanageroftheCompany),(b)anyPersonwhoisorwasanaffiliateoftheManagingMember,(c)anyPersonwhoisorwasamanager,managingmember,generalpartner,director,officer,employee,agent,fiduciaryortrusteeofanymemberoftheCompanyGrouportheManagingMember(including,fortheavoidanceofdoubt,anyPersonservinginanysuchcapacitiespriortothedateofthisAgreement),(d)anyPersonwhoisorwasservingattherequestoftheManagingMemberoranyaffiliateoftheManagingMemberasamanager,managingmember,generalpartner,director,officer,employee,agent,fiduciaryortrusteeofanotherPersonowingafiduciarydutytoanymemberoftheCompanyGroup;providedthattheforegoingshallnotincludeanyPersonwhoprovides,onafee-for-servicesbasis,trustee,fiduciaryorcustodialservices,(e)anyPersonwhocontrolstheManagingMemberor(f)anyPersontheManagingMembershalldesignateasaCoveredPersonforpurposesofthisAgreement(anysuchPerson,a“CoveredPerson”)shallbeliableinanywaytotheCompanyortheManagingMemberforanyactoromissiontakenoromittedpursuanttothisAgreementoringoodfaithrelianceontheprovisionsofthisAgreementunlesssuchactoromissionwastakenoromittedfraudulentlyorconstitutedgrossnegligenceorwillfulmisconduct.
7.2Duties.ThisAgreementisnotintendedto,anddoesnot,createorimposeanyfiduciarydutyonanyCoveredPerson,andeachMemberherebywaivesanyandallfiduciarydutiesthat,absentsuchwaiver,maybeimpliedbyapplicablelaw,andindoingso,acknowledgesandagreesthatthedutiesandobligationofeachCoveredPersontoeachotherandtotheCompanyareonlyasexpresslysetforthinthisAgreement.TheprovisionsofthisAgreement,totheextentthattheyrestrictthedutiesandliabilitiesofaCoveredPersonotherwiseexistingatlaworinequity,areagreedbyeachMembertoreplacesuchotherdutiesandliabilitiesofsuchCoveredPerson.Withoutlimitingtheforegoing,wheneverinthisAgreementtheManagingMember(ineachofitscapacitiesasaMemberandamanageroftheCompany)ispermittedorrequiredtomakeadecisionordetermination,theManagingMembershallbeentitledtoconsideronlysuchinterestsandfactorsasitdesires,includingitsowninterests,andshallhavenodutyorobligationtogiveanyconsiderationtoanyinterestoforfactorsaffectingtheCompanyoranyotherPerson.
7.3NoLiabilityforCompanyObligations.ExceptasotherwiserequiredbytheAct,thedebts,obligations,andliabilitiesoftheCompany,whetherarisingincontract,tortorotherwise,shallbesolelythedebts,obligationsandliabilitiesoftheCompany,andtheManagingMember(ineachofitscapacitiesasaMemberandamanageroftheCompany)andeachotherMembershallhavenopersonalliabilityforanysuchdebtsobligations,orliabilitiesoftheCompanysolelybyreasonofbeingaMemberorparticipatinginthemanagementoftheCompany.
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7.4Indemnification.
(a)TothefullestextentpermittedbylawbutsubjecttothelimitationsexpresslyprovidedinthisAgreement,allCoveredPersonsshallbeindemnifiedandheldharmlessbytheCompanyfromandagainstanyandalllosses,claims,damages,liabilities,jointorseveral,expenses(includinglegalfeesandexpenses),judgments,fines,penalties,interest,settlementsorotheramountsarisingfromanyandallthreatenedpendingorcompletedclaims,demands,actions,suitsorproceedings,whethercivil,criminal,administrativeorinvestigative,andwhetherformalorinformalandincludingappeals,inwhichanyCoveredPersonmaybeinvolved,oristhreatenedtobeinvolved,asapartyorotherwise,byreasonofitsstatusasaCoveredPersonandacting(orrefrainingtoact)insuchcapacity;provided,thattheCoveredPersonshallnotbeindemnifiedandheldharmlesspursuanttothisAgreementiftherehasbeenafinalandnon-appealablejudgmententeredbyacourtofcompetentjurisdictiondeterminingthat,inrespectofthematterforwhichtheCoveredPersonisseekingindemnificationpursuanttothisAgreement,theCoveredPersonactedinbadfaithorengagedinfraud,willfulmisconductor,inthecaseofacriminalmatter,actedwithknowledgethattheCoveredPerson’sconductwasunlawful.AnyindemnificationpursuanttothisSection7.4shallbemadeonlyoutoftheassetsoftheCompany,itbeingagreedthattheMembersshallnotbepersonallyliableforsuchindemnificationandshallhavenoobligationtocontributeorloananymoniesorpropertytotheCompanytoenableittoeffectuatesuchindemnification.
(b)Tothefullestextentpermittedbylaw,expenses(includinglegalfeesandexpenses)incurredbyaCoveredPersonwhoisindemnifiedpursuanttoSection7.4(a)inappearingat,participatinginordefendinganyclaim,demand,action,suitorproceedingshall,fromtimetotime,beadvancedbytheCompanypriortoafinalandnon-appealablejudgmententeredbyacourtofcompetentjurisdictiondeterminingthat,inrespectofthematterforwhichtheCoveredPersonisseekingindemnificationpursuanttothisSection7.4,theCoveredPersonisnotentitledtobeindemnifieduponreceiptbytheCompanyofanyundertakingbyoronbehalfoftheCoveredPersontorepaysuchamountifitshallbeultimatelydeterminedthattheCoveredPersonisnotentitledtobeindemnifiedasauthorizedbythisSection7.4.
(c)TheindemnificationprovidedbythisSection7.4shallbeinadditiontoanyotherrightstowhichaCoveredPersonmaybeentitledunderanyagreement,pursuanttoanywrittenapprovaloftheManagingMember,asamatteroflaw,inequityorotherwise,bothastoactionsintheCoveredPerson’scapacityasaCoveredPersonandastoactionsinanyothercapacity,andshallcontinueastoaCoveredPersonwhohasceasedtoserveinsuchcapacityandshallinuretothebenefitoftheheirs,successors,assignsandadministratorsoftheCoveredPerson.
(d)TheCompanymaypurchaseandmaintaininsurance,onbehalfoftheCoveredPersonsandsuchotherPersonsastheManagingMembershalldetermine,againstanyliabilitythatmaybeassertedagainst,orexpensethatmaybeincurredby,suchPersoninconnectionwiththeCompany’sactivitiesorsuchPerson’sactivitiesonbehalfoftheCompany,regardlessofwhethertheCompanywouldhavethepowertoindemnifysuchPersonagainstsuchliabilityundertheprovisionsofthisAgreement.
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(e)ForpurposesofthisArticleVII,theCompanyshallbedeemedtohaverequestedaCoveredPersontoserveasfiduciaryofanemployeebenefitplanwhenevertheperformancebyitofitsdutiestotheCompanyalsoimposesdutieson,orotherwiseinvolvesservicesby,ittotheplanorparticipantsorbeneficiariesoftheplan;excisetaxesassessedonaCoveredPersonwithrespecttoanemployeebenefitplanpursuanttoapplicablelawshallconstitute“fines”withinthemeaningofSection7.4(a),andactiontakenoromittedbyitwithrespecttoanyemployeebenefitplanintheperformanceofitsdutiesforapurposereasonablybelievedbyittobeinthebestinterestoftheparticipantsandbeneficiariesoftheplanshallbedeemedtobeforapurposethatisinthebestinterestsoftheCompany.
(f)ACoveredPersonshallnotbedeniedindemnificationinwholeorinpartunderthisSection7.4becausetheCoveredPersonhadaninterestinthetransactionwithrespecttowhichtheindemnificationappliesifthetransactionwasotherwisepermittedbythetermsofthisAgreement.
(g)TheprovisionsofthisSection7.4areforthebenefitoftheCoveredPersonsandtheirheirs,successors,assigns,executorsandadministratorsandshallnotbedeemedtocreateanyrightsforthebenefitofanyotherPersons.
(h)Noamendment,modificationorrepealofthisSection7.4oranyprovisionhereofshallinanymannerterminate,reduceorimpairtherightofanypast,presentorfutureCoveredPersontobeindemnifiedbytheCompany,northeobligationsoftheCompanytoindemnifyanysuchCoveredPersonunderandinaccordancewiththeprovisionsofthisSection7.4asineffectimmediatelypriortosuchamendment,modificationorrepealwithrespecttoclaimsarisingfromorrelatingtomattersoccurring,inwholeorinpart,priortosuchamendment,modificationorrepeal,regardlessofwhensuchclaimsmayariseorbeasserted.
7.5Priority.EachCoveredPersonmayhavecertainrightstoindemnificationoradvancementofexpensesprovidedbyoronbehalfoftheManagingMemberoritsaffiliates(collectively,the“MemberIndemnitors”).NotwithstandinganythingtothecontraryinthisAgreement,tothefullestextentpermittedbyapplicablelaw:(a)theCompanyshallbetheindemnitoroffirstresort(i.e.,theCompany’sobligationstoeachCoveredPersonareprimaryandanyobligationoftheMemberIndemnitorstoprovideindemnificationoradvancementofexpensesforthesamelossesincurredbyeachCoveredPersonaresecondary),(b)theCompanyshalladvancethefullamountofexpensesincurredbyeachCoveredPersonandshallbeliableforthefullamountoflossestotheextentlegallypermittedandasrequiredbythisAgreement,withoutregardtoanyrightseachCoveredPersonmayhaveagainsttheMemberIndemnitors,and(c)theCompanyandeachMemberirrevocablywaive,relinquishandreleasetheMemberIndemnitorsfromanyandallclaimsagainsttheMemberIndemnitorsforcontribution,subrogationoranyotherrecoveryofanykindinrespectthereof.Notwithstandinganythinghereintothecontrary,tothefullestextentpermittedbyapplicablelaw,noadvancementorpaymentbytheMemberIndemnitorsfororonbehalfofanyCoveredPersonwithrespecttoanyclaimforwhichsuchCoveredPersonhassoughtindemnificationoradvancementofexpensesfromtheCompanywillaffecttheforegoingandtheMemberIndemnitorsshallhavearightofcontributionand/orbesubrogatedtotheextentofsuchadvancementorpaymenttoalloftherightsofrecoveryofsuchCoveredPersonagainsttheCompany.TheMemberIndemnitorsareexpressintendedthirdpartybeneficiariesofthetermsofthisSection7.5.
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ARTICLEVIII.TRANSFERABILITY
8.1TransfersGenerally.AnyMembermaytransfer(includingbysale,encumbrance,assignmentorotherdisposition)allofitsMembershipInterest(oranyportionthereof)onlywiththepriorwrittenconsentoftheManagingMember.AtransfereeofsuchMembershipInterest(orsuchportionthereof)shallbeadmittedtotheCompanyasaMembereffectiveuponthelaterof(a)thedueexecutionofajoinderorcounterparttothisAgreement(asamendedinaccordancewithSection4.2)and(b)thetransferofsuchMembershipInterest(orsuchportionthereof)tosuchtransferee.
8.2TransferoftheManagingMember’sEntireMembershipInterest.UponatransferbytheManagingMemberofall(butnotanyportion)ofitsMembershipInterestandfollowingtheadmissionofthetransfereetotheCompanyinaccordanceherewith,suchtransferringManagingMembershallceasetobetheManagingMember,andthetransfereeshallbecometheManagingMemberandhaveallrightsandobligationsoftheManagingMembersetforthherein.
ARTICLEIX.DISSOLUTIONANDTERMINATION
9.1Dissolution.TheCompanyshallbedissolvedupontheoccurrenceofanyofthefollowingevents:
(a)pursuanttoanyrequirementoftheAct;or
(b)bythewrittenstatementoftheManagingMember.
9.2EffectofDissolution.Upondissolution,theCompanyshallceasetocarryonitsbusiness,exceptaspermittedbytheAct.
9.3WindingUp,LiquidationandDistributionofAssets.
(a)UpondissolutionoftheCompany,nofurtherbusinessshallbeconductedexceptforthetakingofsuchactionasshallbenecessaryforthewindingupoftheaffairsoftheCompanyinanorderlymanner(includingthedistributionofitsassetstotheMembers)pursuanttotheprovisionsofthisSection9.3andtheAct.TheManagingMembershallactastheLiquidatingTrustee,or,iftheManagingMemberisunabletoactasLiquidatingTrustee,theManagingMembershallappointaLiquidatingTrustee.TheLiquidatingTrusteeshallhavefullauthoritytowinduptheaffairsoftheCompanyandtomakedistributionsasprovidedherein.
(b)UpondissolutionoftheCompany,theLiquidatingTrusteeshalleitherselltheassetsoftheCompanyatthebestpriceavailable,ortheLiquidatingTrusteemaydistributetotheMembers,onaproratabasisinaccordancewiththeirrespectiveMembershipInterests,alloranyportionoftheCompany’sassetsinkind.
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(c)AllassetsoftheCompanyshallbeappliedanddistributedbytheLiquidatingTrusteeinthefollowingorder:
(i)first,tothecreditorsoftheCompany,totheextentotherwisepermittedbyapplicablelaw,insatisfactionofliabilitiesoftheCompany(whetherbypaymentorthemakingofreasonableprovisionforpaymentthereof);
(ii)second,tosettingupthereservesthattheLiquidatingTrusteemaydeemreasonablynecessary,appropriateoradvisableforcontingentorunforeseenliabilitiesorobligationsoftheCompany;and
(iii)third,totheMembersonaproratabasisinaccordancewiththeirrespectiveMembershipInterests.
9.4CertificateofCancellation.UponcompletionofthewindingupoftheaffairsoftheCompany,theManagingMemberoritsdesigneeshallfileadulyexecutedcertificateofcancellationwiththeSecretaryofStateoftheStateofDelawareinaccordancewiththeAct.
ARTICLEX.MISCELLANEOUSPROVISIONS
10.1ApplicationofDelawareLaw.ThisAgreementshallbegovernedby,andconstruedinaccordancewith,thelawoftheStateofDelaware.
10.2Amendments.AnyamendmenttothisAgreementshallbemadeinawritingsignedbytheManagingMember.
10.3Severability.IfanyprovisionofthisAgreementortheapplicationthereoftoanycircumstanceshallbeinvalid,illegalorunenforceabletoanyextent,theremainderofthisAgreementandtheapplicationthereofshallnotbeaffectedandshallbeenforceabletothefullestextentpermittedbyapplicablelaw.
10.4Creditors.NoneoftheprovisionsofthisAgreementshallbeforthebenefitoforenforceablebyanycreditorsoftheCompany.
[Signaturepagefollows.]
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IN WITNESS WHEREOF, theManagingMemberhasexecutedthisAgreementasofthedatefirstwrittenabove.
THIRD COAST MIDSTREAM HOLDINGS, LLC,aDelawarelimitedliabilitycompany
By: /s/DanielR.ReversName: DanielR.ReversTitle: President
[SignaturePagetoLimitedLiabilityCompanyAgreement-ThirdCoastMidstream,LLC]
Exhibit A
Members; Units
Member Units ThirdCoastMidstreamHoldings,LLC 80,266,451
ExhibitAtoLimitedLiabilityCompanyAgreement-ThirdCoastMidstream,LLC
Exhibit B
OfficersName OfficeMatthewRowland PresidentandChiefExecutiveOfficer
RyanRupe SeniorVicePresidentandChiefComplianceOfficer
ReneCasadaban SeniorVicePresidentandChiefOperatingOfficer
LouisDorey SeniorVicePresident-BusinessDevelopment
ChristopherDial SeniorVicePresidentandGeneralCounsel
NadineMoustafa VicePresidentandAssociateGeneralCounsel
StephenCiupak VicePresident-Finance
KarenAcree VicePresidentandChiefAccountingOfficer
RobertGrayIII VicePresident-CommercialServices
BrianNielson VicePresident-Operations
DilshadKasmani AssociateGeneralCounselandAssistantCorporateSecretary
LeisaMunoz AssistantCorporateSecretary
ExhibitBtoLimitedLiabilityCompanyAgreement-ThirdCoastMidstream,LLC
Exhibit 3.5
StateofDelawareSecretaryofState
DivisionofCorporationsDelivered08:04AM07/23/2019FILED08:07AM07/23/2019
SR20196098668–FileNumber4721359
Execution Version
CERTIFICATE OF MERGER OFANCHOR MIDSTREAM ACQUISITION, LLC
(a Delaware limited liability company)WITH AND INTO
THIRD COAST MIDSTREAM HOLDINGS, LLC(a Delaware limited liability company)
July23,2019
PursuanttoSection18-209oftheDelawareLimitedLiabilityCompanyAct(the“DLLCA”),ThirdCoastMidstreamHoldings,LLC,aDelawarelimitedliabilitycompany(the“Company”),herebycertifiestothefollowinginformationrelatingtothemergerofAnchorMidstreamAcquisition,LLC,aDelawarelimitedliabilitycompany,withandintotheCompany(the“Merger”):
FIRST:
Thename,typeofentityandstateoforganizationofeachoftheconstituententities(the“ConstituentEntities”)totheMergerisasfollows:
Name Entity Type StateThirdCoastMidstreamHoldings,LLC LimitedLiabilityCompany Delaware
AnchorMidstreamAcquisition,LLC LimitedLiabilityCompany Delaware
SECOND:
TheAgreementandPlanofMergerhasbeenapprovedandexecutedbyeachoftheConstituentEntitiesinaccordancewithSection18-209oftheDLLCA.
THIRD:
TheCompanyshallbetheentitysurvivingtheMerger(the“SurvivingEntity”),andthenameoftheSurvivingEntityshallremain“ThirdCoastMidstreamHoldings,LLC.”
FOURTH:
ThecertificateofformationoftheCompanyasineffectimmediatelypriortotheeffectivenessofthisCertificateofMergershallbethecertificateofformationoftheSurvivingEntity,withoutanychangesoramendmentstheretoasaresultoftheMerger.
FIFTH:
TheAgreementandPlanofMergerisonfileat2103CityWestBlvd.,Building4,Suite800,Houston,Texas77042,aplaceofbusinessoftheSurvivingEntity,andacopythereofwillbefurnishedbytheSurvivingEntity,onrequestandwithoutcost,toanymemberof,orpersonholdinganinterestin,eitheroftheConstituentEntities.
SIXTH:
ThisCertificateofMergerandtheMergershallbecomeeffectiveatthetimethisCertificateofMergerisfiledwiththeSecretaryofStateoftheStateofDelaware.
[Signaturepagefollows.]
IN WITNESS WHEREOF, theSurvivingEntityhasexecutedanddeliveredthisCertificateofMergerasofthedatefirstwrittenabove.
THIRD COAST MIDSTREAM HOLDINGS, LLC
By: /s/DanielR.ReversName: DanielR.ReversTitle: President
[SignaturePagetoCertificateofMerger]
Exhibit 3.6
StateofDelawareSecretaryofState
DivisionofCorporationsDelivered08:04AM07/23/2019FILED08:05AM07/23/2019
SR20196098666–FileNumber4720325
Execution Version
STATE OF DELAWARECERTIFICATE OF CONVERSION
FROM A LIMITED PARTNERSHIP TO ALIMITED LIABILITY COMPANY
PURSUANT TO SECTION 18-214 OF THE LIMITED LIABILITY COMPANY ACT
July23,2019
PursuanttotheprovisionsofSection18-214oftheDelawareLimitedLiabilityCompanyAct(the“LLCAct”),AmericanMidstreamPartners,LP,aDelawarelimitedpartnership(the“Partnership”),herebyexecutesthisCertificateofConversion(this“Certificate”)forthepurposeofconverting(the“Conversion”)thePartnershiptoalimitedliabilitycompany(the“Company”)and,inconnectiontherewith,certifiesasfollows:
1. ThejurisdictionwherethePartnershipwasfirstformedistheStateofDelaware.
2. ThejurisdictionofthePartnershipimmediatelypriortofilingthisCertificateistheStateofDelaware.
3. ThedatethePartnershipwasfirstformedisAugust20,2009.
4. ThenameofthePartnershipimmediatelypriortofilingthisCertificateis“AmericanMidstreamPartners,LP”.
5. ThenameoftheCompanyassetforthintheCertificateofFormationis“ThirdCoastMidstream,LLC”.
6. ThiscertificateofconversionshallbecomeeffectiveuponfilingwiththeOfficeoftheSecretaryofStateoftheStateofDelaware.
[Signaturepagefollows.]
IN WITNESS WHEREOF, thePartnershiphasexecutedthisCertificateasofthedatefirstwrittenabove.
AMERICAN MIDSTREAM PARTNERS, LP ,aDelawarelimitedpartnership
By: AMERICANMIDSTREAMGP,LLC,itsgeneralpartner
By: /s/DanielR.ReversName: DanielR.ReversTitle: President
[SignaturePagetoCertificateofConversion]
Exhibit 10.1
Execution Version
REDEMPTION AGREEMENT
July18,2019
ThisRedemptionAgreement(this“Agreement”),datedasofJuly18,2019(the“EffectiveDate”),isenteredintobyandbetweenAmericanMidstreamGP,LLC,aDelawarelimitedliabilitycompany(the“Holder”),andAmericanMidstreamPartners,LP,aDelawarelimitedpartnership(the“Partnership”).TheHolderandthePartnershiparesometimeshereinaftereachreferredtoasa“Party”andcollectivelyasthe“Parties”.CapitalizedtermsusedbutnototherwisedefinedhereinshallhavethemeaningsgiventosuchtermsintheMergerAgreement(asdefinedbelow).
WHEREAS,onMarch17,2019,AnchorMidstreamAcquisition,LLC,aDelawarelimitedliabilitycompany(“AnchorAcquisition”),HighPointInfrastructurePartners,LLC,aDelawarelimitedliabilitycompany,thePartnership,theHolderandAnchorMidstreamMergerSub,LLC,aDelawarelimitedliabilitycompany(“MergerSub”),enteredintothatcertainAgreementandPlanofMerger(asmaybeamended,restatedormodifiedfromtimetotime,the“MergerAgreement”),pursuanttowhichMergerSubwillmergewithandintothePartnershipwiththePartnershipsurvivingthemergerasasubsidiaryoftheHolderandAnchorAcquisition(the“Merger”),onthetermsandsubjecttotheconditionssetforththerein;
WHEREAS,theHolderholds100%oftheissuedandoutstandingNotionalGeneralPartnerUnitsofthePartnership(the“SubjectUnits”);
WHEREAS,inconnectionwiththeMerger,thePartnershipdesirestopurchase,acquire,acceptandredeemfromtheHolder,andtheHolderdesirestosell,assign,transferandconveytothePartnership,alloftheSubjectUnits,effectiveasofthedatehereof(the“Redemption”),inexchangefortheRedemptionConsideration(asdefinedbelow);and
WHEREAS,followingtheRedemption,theHolderwillretainanon-economicgeneralpartnerinterestinthePartnershipandwillremainthesolegeneralpartnerofthePartnership.
NOWTHEREFORE,inconsiderationofthepromisessetforthhereinandothergoodandvaluableconsideration,thereceiptandsufficiencyofwhichisherebyacknowledged,thePartiesagreeasfollows:
1. Redemption.OnandsubjecttothetermsandconditionsofthisAgreement,effectiveasoftheEffectiveDate,theHoldershallsell,convey,
assign,transferanddelivertothePartnership,theSubjectUnits,freeandclearofallLiens(otherthanpursuanttoapplicablelawandthePartnershipAgreement),andthePartnershipshallpurchase,acquire,acceptandredeemtheSubjectUnits,fortheRedemptionConsideration.
2. PaymentofRedemptionConsideration.The“RedemptionConsideration”shallconsistof980,889CommonUnits.TheRedemptionConsiderationshallbepaidordeliveredtotheHolderontheEffectiveDate.
3. Redemption.OnandsubjecttothetermsofthisAgreement,effectiveasoftheEffectiveDate,theHolderirrevocablyacceptstheRedemptionConsiderationincompleteredemptionoftheSubjectUnits.theSubjectUnitsshall,effectiveasoftheEffectiveDate,befullyandirrevocablyredeemed,terminated,cancelledandbeofnofurtherforceandeffect,withoutfurtheractiononbehalfofanyPerson;provided,however,fortheavoidanceofdoubt,thattheHoldershallretainanon-economicgeneralpartnerinterestinthePartnershipandwillremainthesolegeneralpartnerofthePartnership.
4. Release.Inexchangeforthebenefitsandundertakingsdescribedhereinandforothergoodandvaluableconsideration,thereceiptandsufficiencyofwhichareherebyacknowledged,theHolder,ontheHolder’sownbehalfandonbehalfofalloftheHolder’ssuccessorsandassigns,effectiveasoftheEffectiveDate,fullyandforeverreleasesanddischargesthePartnershipandeachofitssubsidiariesandcurrentandfutureaffiliatesandeachofitsandtheirrespectivelimitedpartners,membersandmanagers,andeachoftheirrespectivecurrentandformerequityholders,directors,officers,employees,partners,members,trustees,attorneys,representatives,fiduciariesand/oragents,bothindividuallyandintheirofficialcapacities(collectively,the“ReleasedParties”),fromanyandallclaims,suits,controversies,actions,causesofaction,cross-claims,counter-claims,demands,debts,compensatorydamages,liquidateddamages,punitiveorexemplarydamages,otherdamages,claimsforcostsandattorneys’fees,orliabilitiesofanynaturewhatsoever,bothpastandpresentandwhetherknownorunknown,suspected,orclaimedagainstthePartnershiporanyoftheotherReleasedPartieswhichtheHolderoranyoftheHolder’sheirs,executors,administratorsorassigns,mayhavearisingoutoforrelatedtoevents,facts,conditionsorcircumstancesexistingorarisingatorpriortotheEffectiveDatewhichariseinconnectionwithorarerelatedto(a)theRedemptionor(b)anyequitysecuritiesoforotherinterestsinthePartnershiporanyofitsaffiliatesheldbytheHolderpriortotheEffectiveDate.
5. RepresentationsoftheHolder.TheHolderrepresentsandwarrantstothePartnershipthat:
(a) TheHolderisalimitedliabilitycompanydulyorganized,validlyexistingandingoodstandingunderthelawsoftheStateofDelawareandhasallrequisitepowerandauthoritytoenterintothisAgreementandtocarryoutthetransactionscontemplatedherein.ThisAgreementhasbeendulyauthorized,executedanddeliveredbytheHolderandisalegal,validandbindingobligationoftheHolder,enforceableagainsttheHolderinaccordancewithitsterms,subjecttobankruptcy,insolvency,fraudulenttransfer,reorganization,moratoriumandsimilarlawsofgeneralapplicabilityrelatingtooraffectingcreditors’rightsandtogeneralequityprinciples.
(b) TheHolderistheowneroftheSubjectUnits,freeandclearofanyliability,Lien(otherthanpursuanttoapplicablelawandthe
PartnershipAgreement),assessment,restriction,obligation,claim,chargeoroptionofanykindwhatsoever,andhasfullrightandauthoritytoenterintothisAgreement.
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(c) ExceptforthepaymentsdueunderthisAgreement,thePartnershipisnotindebted,directlyorindirectly,totheHolder,inanyamountwhatsoever.
(d) TheHolderhasmetwithorhashadtheopportunitytomeetwiththeHolder’slegaland/orbusinessadvisorsconcerningthetermsofthisAgreement.
(e) TheHolderunderstandsthatthetruthandaccuracyoftheforegoingrepresentationsandwarrantiesarebeingrelieduponbythe
PartnershiptoinduceittoenterintothisAgreement,andtheHolderintendsthatthePartnershiprelyonsuchrepresentationsandwarranties.
6. RepresentationsofthePartnership.ThePartnershiprepresentsandwarrantstotheHolderasfollows:
(a) ThePartnershipisalimitedpartnershipdulyorganized,validlyexistingandingoodstandingunderthelawsoftheStateofDelawareandhasallrequisitepowerandauthoritytoenterintothisAgreementandtocarryoutthetransactionscontemplatedherein.
(b) ThisAgreementhasbeendulyauthorized,executedanddeliveredbythePartnershipandisalegal,validandbindingobligationofthePartnership,enforceableagainstthePartnershipinaccordancewithitsterms,subjecttobankruptcy,insolvency,fraudulenttransfer,reorganization,moratoriumandsimilarlawsofgeneralapplicabilityrelatingtooraffectingcreditors’rightsandtogeneralequityprinciples.
7. SurvivalofRepresentationsandWarranties.(i)Allagreements,covenants,representationsandwarrantiescontainedhereinshallsurvivetheconsummationoftheRedemptionoftheHolder’sSubjectUnitsandthetransactionscontemplatedherebyandshallbebindinguponandinuretothebenefitofthePartiesandtheirrespectiveheirs,estates,successorsandpermittedassignsand(ii)allcovenantsandagreementscontainedhereinshallsurviveuntilperformed.
8. Miscellaneous.
(a) EachPartywill,uponrequestoftheotherParty,takesuchfurtheraction(includingtheexecutionanddeliveryofanyadditional
documents)reasonablydeemedbysuchrequestingPartytobenecessaryordesirabletocompleteorevidencethetransactionscontemplatedbythisAgreement.
(b) ThePartieshaveeachseparatelyhadtheopportunitytoconsultwithcounselandhavereviewed,negotiatedandadoptedthisAgreement
asthejointagreementandunderstandingoftheParties,andthelanguageusedinthisAgreementshallbedeemedtobethelanguagechosenbythePartiestoexpresstheirmutualintent,andnoruleofstrictconstructionshallbeappliedagainstanyperson.
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(c) ThisAgreementconstitutestheentireagreementofthePartieswithrespecttothesubjectmatterhereofandsupersedesallpriorwrittenandoralnegotiations,agreementsandunderstandingswithrespecthereto.
(d) ThisAgreementmaybeamended,modified,orterminatedonlywiththewrittenconsentofbothParties.Waiverofabreachofany
provisionofthisAgreementshallnotbebindingunlessinwritingandsignedbytheParties,andanysuchwaivershallnotbeconstruedtobeawaiverofanysubsequentbreachofthesameoranyotherprovisionofthisAgreement.
(e) TotheextentthatanyprovisionofthisAgreementisdeterminedtobeinvalidorunenforceable,theinvalidorunenforceableportionofsuchprovisionshallbedeletedfromthisAgreement,andthevalidityandenforceabilityoftheremainderofsuchprovisionandofthisAgreementshallbereformed,construedandenforcedsoastogiveeffecttotheoriginalintentofthisAgreementtothemaximumextentpermittedbyapplicableLaw.
(f) ThisAgreementshallbindandinuretothebenefitoftherespectivesuccessorsandpermittedassignsoftheParties.NoPartymayassignthisAgreementoranyparthereofwithoutthepriorwrittenconsentoftheotherParty;provided,thatthePartnershipmayassignthisAgreementoranyparthereofanditsrightsandobligationshereunder,inwholeorinpart,toanyaffiliateofthePartnershipwithoutthepriorconsentoftheHolder.
(g) NothinginthisAgreement,expressorimplied,isintendedorshallbeconstruedtogiveanypersonotherthanthePartiesortheirrespectivesuccessorsorassignsanylegalorequitableright,remedyorclaimunderorinrespectofanyagreementoranyprovisioncontainedherein;providedthat,notwithstandingtheforegoing,(i)theReleasedPartiesareintendedtobethirdpartybeneficiariesof,andmayenforce,Section4and(ii)theNon-RecoursePersons(asdefinedbelow)areintendedtobebeneficiariesof,andmayenforce,Section8(j).
(h) ThisAgreementshallbegovernedandconstruedinaccordancewiththelawsoftheStateofDelawarewithoutregardtoconflictoflawprovisionsthatmaygiverisetotheapplicationofthesubstantivelawsofanotherjurisdiction.
(i) AnyProceedingbasedupon,arisingoutoforrelatedtothisAgreementorthetransactionscontemplatedherebyshallbebroughtinfederalandstatecourtslocatedintheStateofDelaware,andeachofthePartiesirrevocablysubmitstotheexclusivejurisdictionofeachsuchcourtinanysuchProceeding,waivesanyobjectionitmaynoworhereafterhavetopersonaljurisdiction,venueortoconvenienceofforum,agreesthatallclaimsinrespectoftheProceedingshallbeheardanddeterminedonlyinanysuchcourt,andagreesnottobringanyProceedingarisingoutoforrelatingto
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thisAgreementorthetransactionscontemplatedherebyinanyothercourt.NothinghereincontainedshallbedeemedtoaffecttherightofanyPartytoserveprocessinanymannerpermittedbyLawortocommenceProceedingsorotherwiseproceedagainstanyotherPartyinanyotherjurisdiction,ineachcase,toenforcejudgmentsobtainedinanyProceedingbroughtpursuanttothisSection8(i).EACHOFTHEPARTIESHEREBYIRREVOCABLYWAIVESANYANDALLRIGHTTOTRIALBYJURYINANYPROCEEDINGBASEDUPON,ARISINGOUTOFORRELATEDTOTHISAGREEMENTORTHETRANSACTIONSCONTEMPLATEDHEREBY.
(j) ExcepttotheextentanamedPartytothisAgreement,thePartiesacknowledgeandagreethatnopast,presentorfuturedirector,manager,officer,employee,incorporator,member,partner,equityholder,agent,attorney,representative,affiliateorfinancingsourceofanyofthePartiestothisAgreement(each,a“Non-RecoursePerson”),insuchcapacity,shallhaveanyliabilityorresponsibility(incontract,tortorotherwise)foranyliabilitiesofanyParty,asapplicable,underthisAgreementorforanyclaimbasedon,inrespectof,orbyreasonof,thetransactionscontemplatedherebyandthereby.ThisAgreementmayonlybeenforcedagainst,andanyclaimoractionbasedupon,arisingoutof,orrelatedtothisAgreement,orthenegotiation,executionorperformanceofthisAgreement,mayonlybebroughtagainsttheentitiesthatareexpresslynamedasPartiesandthenonlywithrespecttothespecificobligationssetforthhereinwithrespecttosuchParty.TheNon-RecoursePersonsareintendedtobethirdpartybeneficiarieshereunder.
(k) ThisAgreementmaybeexecutedinoneormorecounterparts(includingbyelectronictransmission),eachofwhichshallbedeemedtobeanoriginalandallofwhich,whentakentogether,shallbedeemedtoconstituteoneandthesameagreement.
[Signaturepagefollows.]
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IN WITNESS WHEREOF ,thePartieshavecausedthisAgreementtobeexecutedanddeliveredasofthedatefirstwrittenabove.
PARTNERSHIP:
AMERICAN MIDSTREAM PARTNERS, LP
By: AMERICANMIDSTREAMGP,LLC,itsgeneralpartner
By: /s/LouisJ.DoreyName: LouisJ.DoreyTitle:
InterimPresidentandChiefExecutiveOfficer
HOLDER:
AMERICAN MIDSTREAM GP, LLC
By: HighPointInfrastructurePartners,LLC,itsmajorityClassAMember
By: /s/DanielR.ReversName: DanielR.ReversTitle: President
[SignaturePagetoRedemptionAgreement]