UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported)
April 27, 2010
TARGA RESOURCES PARTNERS LP
(Exact name of registrant as specified in its charter)
         
Delaware   001-33303   65-1295427
(State or other jurisdiction   (Commission   (IRS Employer
of incorporation or organization)   File Number)   Identification No.)
1000 Louisiana, Suite 4300
Houston, TX 77002

(Address of principal executive office and Zip Code)
(713) 584-1000
(Registrants’ telephone number, including area code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
o   Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
o   Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
o   Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
o   Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 
 

 


 

Item 1.01 Entry Into a Material Definitive Agreement.
Contribution, Conveyance and Assumption Agreement
          Targa Resources Partners LP, a Delaware limited partnership (the “Partnership”), previously announced that it had entered into a Purchase and Sale Agreement (the “Purchase Agreement”) with Targa LP Inc., Targa Permian GP LLC and Targa Midstream Holdings LLC (the “Sellers”) pursuant to which the Sellers have agreed to sell to the Partnership (i) all of the limited partner interests in Targa Midstream Services Limited Partnership (“TMS”), (ii) all of the limited liability company interests in Targa Gas Marketing LLC (“TGM”), (iii) all of the limited and general partner interests in Targa Permian LP (“Permian”), (iv) all of the limited partner interests in Targa Straddle LP (“Targa Straddle”) and (v) all of the limited liability company interests in Targa Straddle GP LLC (“Targa Straddle GP”) (such equity interests in TMS, TGM, Permian, Targa Straddle and Targa Straddle GP being collectively referred to as the “Purchased Interests”), for aggregate consideration of $420 million, subject to certain adjustments.
          TMS, TGM, Permian, Targa Straddle and Targa Straddle GP (together, the “Companies”) collectively own (i) Targa Resources, Inc.’s (“Targa”) natural gas straddle business consisting of the business and operations involving the Barracuda, Lowry and Stingray plants, including the Pelican, Seahawk and Cameron gas gathering pipeline systems, all of which are wholly-owned by TMS or its subsidiaries, and the business and operations represented by its participation and ownership interests in the Bluewater, Sea Robin, Calumet, N. Terrebonne, Toca and Yscloskey plants, (ii) certain of Targa’s natural gas gathering and processing systems, processing plants and related assets including the Sand Hills processing plant and gathering system, Monahans gathering system, Puckett gathering system, a 40% ownership interest in the West Seminole gathering system and a compressor overhaul facility and (iii) Targa’s natural gas marketing business (collectively, the “Business”). The description of the Purchase Agreement contained in the Partnership’s Form 8-K filed on April 1, 2010, is incorporated herein by reference and the Purchase Agreement, a copy of which is filed as Exhibit 2.1 to this Form 8-K, is incorporated herein by reference.
     In accordance with the Purchase Agreement, on April 27, 2010, the Partnership, Targa Resources Operating LP, an indirect, wholly-owned subsidiary of the Partnership (“TRO”), Targa North Texas GP LLC, a wholly-owned subsidiary of TRO (“TNT”), Targa Resources Texas GP LLC, a wholly-owned subsidiary of TNT (“TRT”), and the Sellers entered into a Contribution, Conveyance and Assumption Agreement (the “Contribution Agreement”) pursuant to which the Sellers contributed the Purchased Interests to TNT and TRT in exchange for aggregate consideration of $420 million, subject to certain adjustments. The Partnership used cash, funded through borrowings under the Partnership’s senior secured revolving credit facility, to fund the aggregate consideration for the Purchased Interests. The description of the Contribution Agreement is qualified in its entirety by reference to the Contribution Agreement, a copy of which is filed as Exhibit 10.1 to this Form 8-K and is incorporated herein by reference.
     The board of directors of Targa Resources GP LLC, a Delaware limited liability company and the general partner of the Partnership (the “General Partner”), approved the acquisition of the Purchased Interests based on a recommendation from its conflicts committee. The conflicts committee, which is comprised entirely of independent directors, retained independent legal and financial advisers to assist it in evaluating and negotiating the transaction.
Amended Omnibus Agreement
     On April 27, 2010, the Partnership entered into an amendment (the “Omnibus Agreement Amendment”) to the Second Amended and Restated Omnibus Agreement (as amended, the “Omnibus Agreement”) with Targa, the General Partner, and Targa Resources LLC. The amendments made by the Omnibus Agreement Amendment extend the commitment of Targa to provide general and administrative and other services to the Partnership through April 30, 2013 associated with (i) the Business, (ii) additional assets, operations or businesses that may be sold by Targa to the Partnership and (iii) if the parties to the Omnibus Agreement agree, additional assets, operations or businesses that the Partnership may acquire from third parties.
     This description of the Omnibus Agreement Amendment is qualified in its entirety by reference to the Omnibus Agreement Amendment, a copy of which is filed as Exhibit 10.2 to this Form 8-K and is incorporated in this Item 1.01 by reference. Capitalized terms used but not defined in this section entitled “Amended Omnibus Agreement” have the meaning ascribed to them in the Omnibus Agreement Amendment.

 


 

Relationships
          Each of the Sellers, the General Partner, the Partnership, TRO, TNT and TRT are direct or indirect subsidiaries of Targa. As a result, certain individuals, including officers and directors of Targa, serve as officers and/or directors of more than one of such entities. The General Partner, as the general partner of the Partnership, holds a 2% general partner interest and incentive distribution rights in the Partnership.
Item 2.01 Completion of Acquisition or Disposition of Assets.
          The descriptions under the headings “Contribution, Conveyance and Assumption Agreement” and “Relationships” under Item 1.01 are incorporated in this Item 2.01 by reference. A copy of the Contribution Agreement is filed as Exhibit 10.1 to this Form 8-K and is incorporated in this Item 2.01 by reference.
          The Partnership used cash, funded through borrowings under the Partnership’s senior secured revolving credit facility, to fund the $420 million aggregate consideration for the Purchased Interests. Affiliates of the following lenders under the Partnership’s senior secured revolving credit facility have performed from time to time and may be performing investment banking, advisory and other services for Targa and for the Partnership: Bank of America, N.A., Wachovia Bank, National Association, Royal Bank of Canada, The Royal Bank of Scotland PLC, BNP Paribas, Citibank, N.A., Compass Bank, U.S. Bank National Association, Comerica Bank, UBS Loan Finance LLC, Credit Suisse, Goldman Sachs Credit Partners L.P., Raymond James Bank, FSB, Deutsche Bank Trust Company Americas, and Barclays Bank PLC.
Item 9.01 Financial Statements and Exhibits.
(a) Financial statements of businesses acquired.
In accordance with Item 9.01(a)(4) of Form 8-K, the required financial information with respect to the acquisition of the Purchased Interests will be provided within 71 calendar days of May 3, 2010.
(b) Pro forma financial information.
In accordance with Item 9.01(b)(2) of Form 8-K, the required pro forma financial information with respect to the acquisition of the Purchased Interests will be provided within 71 calendar days of May 3, 2010.
(c) Not applicable.
(d) Exhibits
     
Exhibit    
Number   Description
 
   
Exhibit 2.1*
  Purchase and Sale Agreement, dated as of March 31, 2010, by and among Targa Resources Partners LP, Targa LP Inc., Targa Permian GP LLC and Targa Midstream Holdings LLC (incorporated by reference to Exhibit 2.1 to Targa Resources Partners LP’s Current Report on Form 8-K filed April 1, 2010 (File No. 001-33303)).
 
   
Exhibit 10.1
  Contribution, Conveyance and Assumption Agreement, dated April 27, 2010, by and among Targa Resources Partners LP, Targa LP Inc., Targa Permian GP LLC, Targa Midstream Holdings LLC, Targa Resources Operating LP, Targa North Texas GP LLC and Targa Resources Texas GP LLC.
 
   
Exhibit 10.2
  First Amendment to Second Amended and Restated Omnibus Agreement, dated April 27, 2010, by and among Targa Resources Partners LP, Targa Resources, Inc., Targa Resources LLC and Targa Resources GP LLC.
 
*   Pursuant to Item 601(b)(2) of Regulation S-K, the registrant agrees to furnish supplementally a copy of any omitted exhibit or schedule to the SEC upon request.

 


 

SIGNATURES
     Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
         
  TARGA RESOURCES PARTNERS LP
 
 
  By:   Targa Resources GP LLC    
    its general partner   
       
 
         
     
Dated: April 29, 2010  By:   /s/ Jeffrey J. McParland    
    Jeffrey J. McParland   
    Executive Vice President and Chief Financial
Officer 
 
 

 


 

EXHIBIT INDEX
     
Exhibit    
Number   Description
 
   
Exhibit 2.1*
  Purchase and Sale Agreement, dated as of March 31, 2010, by and among Targa Resources Partners LP, Targa LP Inc., Targa Permian GP LLC and Targa Midstream Holdings LLC (incorporated by reference to Exhibit 2.1 to Targa Resources Partners LP’s Current Report on Form 8-K filed April 1, 2010 (File No. 001-33303)).
 
   
Exhibit 10.1
  Contribution, Conveyance and Assumption Agreement, dated April 27, 2010, by and among Targa Resources Partners LP, Targa LP Inc., Targa Permian GP LLC, Targa Midstream Holdings LLC, Targa Resources Operating LP, Targa North Texas GP LLC and Targa Resources Texas GP LLC.
 
   
Exhibit 10.2
  First Amendment to Second Amended and Restated Omnibus Agreement, dated April 27, 2010, by and among Targa Resources Partners LP, Targa Resources, Inc., Targa Resources LLC and Targa Resources GP LLC.
 
*   Pursuant to Item 601(b)(2) of Regulation S-K, the registrant agrees to furnish supplementally a copy of any omitted exhibit or schedule to the SEC upon request.

 

Exhibit 10.1
CONTRIBUTION, CONVEYANCE AND ASSUMPTION AGREEMENT
     THIS CONTRIBUTION, CONVEYANCE AND ASSUMPTION AGREEMENT (this “ Agreement ”), dated as of April 27, 2010, is entered into by and among TARGA RESOURCES PARTNERS LP, a Delaware limited partnership (the “ Partnership ”), TARGA MIDSTREAM HOLDINGS LLC, a Delaware limited liability company (“ TMH ”), TARGA LP INC., a Delaware corporation (“ Targa LP ”), TARGA PERMIAN GP LLC, a Delaware limited partnership (“ Permian GP ”), TARGA RESOURCES OPERATING LP, a Delaware limited partnership (“ Targa Operating ”), TARGA NORTH TEXAS GP LLC, a Delaware limited liability company (“ Targa North Texas ”), and TARGA RESOURCES TEXAS GP LLC (“ Targa Texas ”). The parties to this Agreement are collectively referred to herein as the “ Parties .” Capitalized terms used but not defined herein shall have the meanings assigned to such terms in the Purchase Agreement (as defined below).
RECITALS
     WHEREAS, TMH, Targa LP, Permian GP and the Partnership have heretofore entered into that certain Purchase and Sale Agreement dated as of March 31, 2010 (the “ Purchase Agreement ”), providing for the sale by TMH, Targa LP and Permian GP to the Partnership of: (i) 100% of the limited partner interests (the “ TMS LP Interest ”) in Targa Midstream Services Limited Partnership, a Delaware limited partnership (“ TMS ”); (ii) 100% of the limited liability company interests (the “ TGM Interest ”) in Targa Gas Marketing LLC, a Delaware limited liability company (“ TGM ”) which owns a general partner interest which constitutes all of the general partner interests of TMS; (iii) a limited partner interest representing a 50% interest (the “ Permian LP Interest ”) in Targa Permian LP, a Delaware limited partnership (“ Permian ”); (iv) a general partner interest representing a 50% interest (the “ Permian GP Interest ”) in Permian; (v) 100% of the limited liability company interests (the “ Straddle GP LLC Interest ”) in Targa Straddle GP LLC (“ Straddle GP ”), a Delaware limited liability company which owns a general partner interest representing a 50% interest in Targa Straddle LP, a Delaware limited partnership (“ Straddle ”); and (vi) a limited partner interest representing a 50% interest in Straddle (the “ Straddle LP Interest ” and, together with the Straddle GP LLC Interest, the Permian GP Interest, the Permian LP Interest, the TGM Interest and the TMS LP Interest, the “ Purchased Interests ”);
     WHEREAS, pursuant to the terms of the Purchase Agreement, TMH shall sell, convey, transfer and assign the Straddle GP LLC Interest and the Straddle LP Interest to the Partnership or a designated subsidiary of the Partnership;
     WHEREAS, pursuant to the terms of the Purchase Agreement, Targa LP shall sell, convey, transfer and assign the TGM Interests, the TMS LP Interest and the Permian LP Interest to the Partnership or a designated subsidiary of the Partnership;
     WHEREAS, pursuant to the terms of the Purchase Agreement, Permian GP shall sell, convey, transfer and assign the Permian GP Interest to the Partnership or a designated subsidiary of the Partnership;

 


 

     WHEREAS, pursuant to the terms of the Purchase Agreement, (A) the Partnership desires to assign its rights under the Purchase Agreement to purchase the Purchased Interests to Targa Operating, (B) Targa Operating desires to assign its rights under the Purchase Agreement to purchase the Purchased Interests to Targa North Texas and (C) Targa North Texas desires to assign its rights under the Purchase Agreement to purchase the Permian GP Interest to Targa Texas; and
     NOW, THEREFORE, in consideration of their mutual undertakings and agreements hereunder, the Parties undertake and agree as follows:
ARTICLE 1
ASSIGNMENT AND ASSUMPTION
OF RIGHTS UNDER PURCHASE AGREEMENT
     Section 1.1 Assignment of Rights under Purchase Agreement to Targa Operating by the Partnership. The Partnership hereby assigns to Targa Operating all of its rights under the Purchase Agreement to purchase (i) the Straddle GP LLC Interest and the Straddle LP Interest from TMH, (ii) the TGM Interest, the TMS LP Interest and the Permian LP Interest from Targa LP and (iii) the Permian GP Interest from Permian GP, and Targa Operating hereby assumes (without any release or novation of the Partnership) all of such obligations of the Partnership under the Purchase Agreement.
     Section 1.2 Assignment of Rights under Purchase Agreement to Targa North Texas by Targa Operating. Targa Operating hereby assigns to Targa North Texas all of its rights under the Purchase Agreement (once received by Targa Operating from the Partnership pursuant to Section 1.1) to purchase (i) the Straddle GP LLC Interest and the Straddle LP Interest from TMH, (ii) the TGM Interest, the TMS LP Interest and the Permian LP Interest from Targa LP and (iii) the Permian GP Interest from Permian GP, and Targa North Texas hereby assumes (without any release or novation of Targa Operating) all of such obligations of the Partnership and Targa Operating under the Purchase Agreement.
     Section 1.3 Assignment of Rights under Purchase Agreement to Targa Texas by Targa North Texas. Targa North Texas hereby assigns to Targa Texas all of its rights under the Purchase Agreement (once received by Targa North Texas from Targa Operating pursuant to Section 1.2) to purchase the Permian GP Interest from Permian GP, and Targa Texas hereby assumes (without any release or novation of Targa North Texas) all of such obligations of the Partnership, Targa Operating and Targa North Texas under the Purchase Agreement.
ARTICLE 2
CONTRIBUTIONS, ACKNOWLEDGMENTS AND DISTRIBUTIONS
RELATING TO THE PURCHASED INTERESTS
     Section 2.1 Contribution by TMH of the Straddle GP LLC Interest and the Straddle LP Interest to Targa North Texas. TMH hereby grants, contributes, bargains, conveys, assigns, transfers, sets over and delivers to Targa North Texas, its successors and assigns, for its and their own use forever, all right, title and interest in and to the Straddle GP LLC Interest and the

 


 

Straddle LP Interest and Targa North Texas hereby accepts the Straddle GP LLC Interest and the Straddle LP Interest and agrees to be the sole member of Straddle GP and the limited partner of Straddle.
     Section 2.2 Contribution by Targa LP of the TGM Interest, the TMS LP Interest and the Permian LP Interest to Targa North Texas. Targa LP hereby grants, contributes, bargains, conveys, assigns, transfers, sets over and delivers to Targa North Texas, its successors and assigns, for its and their own use forever, all right, title and interest in and to the TGM Interest, the TMS LP Interest and the Permian LP Interest and Targa North Texas hereby accepts the TGM LLC Interest, the TMS LP Interest and the Permian LP Interest and agrees to be the sole member of TGM and a limited partner of each of TMS and Permian.
     Section 2.3 Contribution by Permian GP of the Permian GP Interest to Targa Texas. Permian GP hereby grants, contributes, bargains, conveys, assigns, transfers, sets over and delivers to Targa Texas, its successors and assigns, for its and their own use forever, all right, title and interest in and to the Permian GP Interest and Targa Texas hereby accepts the Permian GP Interest and agrees to be the general partner of Permian.
ARTICLE 3
FURTHER ASSURANCES
     Section 3.1 From time to time after the date first above written, and without any further consideration, the Parties agree to execute, acknowledge and deliver all such additional deeds, assignments, bills of sale, conveyances, instruments, notices, releases, acquittances and other documents, and will do all such other acts and things, all in accordance with applicable law, as may be necessary or appropriate (a) more fully to assure that the applicable Parties own all of the properties, rights, titles, interests, estates, remedies, powers and privileges granted by this Agreement, or which are intended to be so granted, or (b) more fully and effectively to vest in the applicable Parties and their respective successors and assigns beneficial and record title to the interests contributed and assigned by this Agreement or intended so to be and to more fully and effectively carry out the purposes and intent of this Agreement.
ARTICLE 4
MISCELLANEOUS
     Section 4.1 Headings; References; Interpretation . All Article and Section headings in this Agreement are for convenience only and shall not be deemed to control or affect the meaning or construction of any of the provisions hereof. The words “hereof,” “herein” and “hereunder” and words of similar import, when used in this Agreement, shall refer to this Agreement as a whole, and not to any particular provision of this Agreement. All references herein to Articles and Sections shall, unless the context requires a different construction, be deemed to be references to the Articles and Sections of this Agreement. All personal pronouns used in this Agreement, whether used in the masculine, feminine or neuter gender, shall include all other genders, and the singular shall include the plural and vice versa. The use herein of the word “including” following any general statement, term or matter shall not be construed to limit

 


 

such statement, term or matter to the specific items or matters set forth immediately following such word or to similar items or matters, whether or not non-limiting language (such as “without limitation”, “but not limited to”, or words of similar import) is used with reference thereto, but rather shall be deemed to refer to all other items or matters that could reasonably fall within the broadest possible scope of such general statement, term or matter.
     Section 4.2 Successors and Assigns . This Agreement shall be binding upon and inure to the benefit of the Parties and their respective successors and assigns.
     Section 4.3 No Third Party Rights . The provisions of this Agreement are intended to bind the Parties as to each other and are not intended to and do not create rights in any other person or confer upon any other person any benefits, rights or remedies and no person is or is intended to be a third-party beneficiary of any of the provisions of this Agreement.
     Section 4.4 Counterparts . This Agreement may be executed in any number of counterparts, all of which together shall constitute one agreement binding on the Parties.
     Section 4.5 Governing Law . This Agreement shall be governed by, and construed in accordance with, the laws of the State of Delaware applicable to contracts made and to be performed wholly within such state without giving effect to conflict of law principles thereof.
     Section 4.6 Severability . If any of the provisions of this Agreement are held by any court of competent jurisdiction to contravene, or to be invalid under, the laws of any political body having jurisdiction over the subject matter hereof, such contravention or invalidity shall not invalidate the entire Agreement. Instead, this Agreement shall be construed as if it did not contain the particular provision or provisions held to be invalid and an equitable adjustment shall be made and necessary provision added so as to give effect to the intention of the Parties as expressed in this Agreement at the time of execution of this Agreement.
     Section 4.7 Amendment or Modification . This Agreement may be amended or modified from time to time only by the written agreement of all the Parties. Each such instrument shall be reduced to writing.
     Section 4.8 Conflicts . Nothing in this Agreement shall be construed as an agreement to assign any asset, or any interest therein, that is subject to any agreement that, by its terms or pursuant to applicable law, is not capable of being sold, assigned, transferred, conveyed or delivered without the consent or waiver of a third party or a governmental authority unless and until such consent or waiver shall be given.
     Section 4.9 Integration . This Agreement and the instruments referenced herein supersede all previous understandings or agreements among the Parties, whether oral or written, with respect to their subject matter. This document and such instruments contain the entire understanding of the Parties with respect to the subject matter hereof and thereof. No understanding, representation, promise or agreement, whether oral or written, is intended to be or shall be included in or form part of this Agreement unless it is contained in a written amendment hereto executed by the Parties after the date of this Agreement.

 


 

     Section 4.10 Deed; Bill of Sale; Assignment . To the extent required and permitted by applicable law, this Agreement shall also constitute a “deed,” “bill of sale” or “assignment” of the assets and interests referenced herein.
[ Signature Pages Follow ]

 


 

     IN WITNESS WHEREOF, this Agreement has been duly executed by the Parties as of the date first above written.
         
  TARGA RESOURCES PARTNERS LP
 
 
  By:   Targa Resources GP LLC,    
    its general partner   
     
  By:   /s/ Rene R. Joyce    
    Rene R. Joyce   
    Chief Executive Officer   
 
  TARGA MIDSTREAM HOLDINGS LLC
 
 
  By:   /s/ Rene R. Joyce    
    Rene R. Joyce   
    Chief Executive Officer   
 
  TARGA LP INC.
 
 
  By:   /s/ Rene R. Joyce    
    Rene R. Joyce   
    Chief Executive Officer   
 
  TARGA PERMIAN GP LLC
 
 
  By:   /s/ Rene R. Joyce    
    Rene R. Joyce   
    Chief Executive Officer   
 
  TARGA RESOURCES OPERATING LP
 
 
  By:   Targa Resources Operating GP LLC,    
    its general partner   
     
  By:   /s/ Rene R. Joyce    
    Rene R. Joyce   
    Chief Executive Officer   
 

 


 

         
  TARGA NORTH TEXAS GP LLC
 
 
  By:   /s/ Rene R. Joyce    
    Rene R. Joyce   
    Chief Executive Officer   
 
  TARGA RESOURCES TEXAS GP LLC
 
 
  By:   /s/ Rene R. Joyce    
    Rene R. Joyce   
    Chief Executive Officer   
 

 

Exhibit 10.2
FIRST AMENDMENT TO SECOND AMENDED AND RESTATED
OMNIBUS AGREEMENT
     THIS FIRST AMENDMENT TO SECOND AMENDED AND RESTATED OMNIBUS AGREEMENT (“ Amendment ”) is entered into on, and effective as of, April 27, 2010, and is by and among Targa Resources, Inc., a Delaware corporation (“ Targa ”), Targa Resources LLC, a Delaware limited liability company, Targa Resources GP LLC, a Delaware limited liability company (the “ General Partner ”), and Targa Resources Partners LP, a Delaware limited partnership (the “ Partnership ”). The above-named entities are sometimes referred to in this Agreement each as a “ Party ” and collectively as the “ Parties .”
R E C I T A L S:
     1. The Parties have heretofore entered into that certain Second Amended and Restated Omnibus Agreement, dated and effective as of September 24, 2009 (the “ Omnibus Agreement ”), which among other things, (i) evidences their agreement with respect to the amount to be paid by the Partnership for certain general and administrative services to be performed by Targa and its Affiliates as well as direct expenses, including operating expenses, incurred by Targa and its Affiliates for and on behalf of the Partnership Group (as defined in the Omnibus Agreement) and (ii) evidence their agreement with respect to certain indemnification obligations.
     2. The Parties desire to amend the Omnibus Agreement to, among other things, remove a limitation which required Targa to provide general and administrative services to the Partnership Group only for the three year period following the initial public offering by the Partnership and to expand the Omnibus Agreement to cover all businesses hereafter purchased by the Partnership from Targa or its Affiliates and any other assets, operations or businesses that the Partnership Group may acquire, from time to time, after the date hereof which Targa and the Partnership hereafter acknowledge and confirm in writing will be covered by and within the scope of the Omnibus Agreement.
     In consideration of the agreements contained herein, and for other good and valuable consideration, the Parties hereby amend the Omnibus Agreement as follows:
ARTICLE I
DEFINED TERMS
      1.1 Defined Terms . All capitalized terms which are used but not defined in this Amendment shall have meanings assigned to such terms in the Omnibus Agreement.
ARTICLE II
AMENDMENTS TO THE OMNIBUS AGREEMENT
      2.1 The Omnibus Agreement is hereby amended as follows:
     (a) Section 2.1(a) of the Omnibus Agreement is hereby revised and amended in its entirety to read as follows:

 


 

     “(a) Targa hereby agrees to continue to provide the Partnership Group with certain general and administrative services, such as legal, accounting, treasury, insurance, risk management, health, safety and environmental, information technology, human resources, credit, payroll, internal audit, taxes, engineering and marketing through the period ending April 30, 2013. These general and administrative services shall be substantially identical in nature and quality to the services of such type previously provided by Targa in connection with their management and operation of the Partnership Group’s assets, operations and businesses prior to their acquisition by the Partnership Group. In the event that the Partnership Group hereafter makes any acquisitions of assets or businesses from Targa or its Affiliates, Targa will provide general and administrative services that are substantially identical in nature and quality to the services of such type previously provided by Targa in connection with their management and operation of such assets or businesses prior to their acquisition by the Partnership. In addition, in the event that the Partnership Group hereafter makes any acquisitions of assets, operations or businesses from any third party and the Parties hereto then acknowledge and agree in writing that such assets, operations or businesses will be covered by the Agreement, Targa will provide and be compensated for similar general and administrative services in support of such assets, operations or businesses.”
     (b) Section 2.2(a)(v) of the Omnibus Agreement is hereby revised in its entirety to read as follows:
     “(v) direct expenses, including operating expenses and certain allocated operating expenses, associated with the ownership and operation of the Partnership Group’s assets, operations and businesses which are subject to this Agreement.”
ARTICLE III
MISCELLANEOUS
      3.1 Assurances . From time to time after the date hereof, and without any further consideration, each of the parties to this Amendment shall execute, acknowledge and deliver all such additional instruments, notices and other documents, and will do all such other acts and things, all in accordance with applicable law, as may be necessary or appropriate to more fully and effectively carry out the purposes and intent of this Amendment.
      3.2 Successors and Assigns . This Amendment shall be binding upon and inure to the benefit of the parties signatory hereto and their respective successors and assigns.
      3.3 No Third Party Rights . The provisions of this Amendment are intended to bind the parties signatory hereto as to each other and are not intended to and do not create rights in any other person or confer upon any other person any benefits, rights or remedies and no person is or is intended to be a third party beneficiary of any of the provisions of this Amendment.

2


 

      3.4 Counterparts . This Amendment may be executed in any number of counterparts, all of which together shall constitute one agreement binding on the parties hereto.
      3.5 Governing Law . This Amendment shall be governed by, and construed in accordance with, the laws of the State of Delaware applicable to contracts made and to be performed wholly within such state without giving effect to conflict of law principles thereof, except to the extent that it is mandatory that the law of some other jurisdiction shall apply.
      3.6 Severability . If any of the provisions of this Amendment are held by any court of competent jurisdiction to contravene, or to be invalid under, the laws of any political body having jurisdiction over the subject matter hereof, such contravention or invalidity shall not invalidate the entire Amendment. Instead, this Amendment shall be construed as if it did not contain the particular provision or provisions held to be invalid, and an equitable adjustment shall be made and necessary provision added so as to give effect to the intention of the parties as expressed in this Amendment at the time of execution of this Amendment.
      3.7 Amendment or Modification . This Amendment may be amended or modified from time to time only by the written agreement of all the parties hereto.
      3.8 Conflicts . Nothing in this Amendment shall be construed as an agreement to assign any asset, or any interest therein, that is subject to any agreement that, by its terms or pursuant to applicable law, is not capable of being sold, assigned, transferred or delivered without the consent or waiver of a third party or a governmental authority unless and until such consent or waiver shall be given.
      3.9 Effect of Amendment . This Amendment only amends the Omnibus Agreement as specifically provided herein and all other provisions of the Omnibus Agreement remain unchanged.
[ Signature page follows ]

3


 

     IN WITNESS WHEREOF, the undersigned have executed this Amendment as of the day and year first above written.
             
    TARGA RESOURCES, INC.    
 
           
 
  By:
Name:
  /s/ Rene R. Joyce
 
Rene R. Joyce
   
 
  Title:   Chief Executive Officer    
 
           
    TARGA RESOURCES LLC    
 
           
 
  By:
Name:
  /s/ Rene R. Joyce
 
Rene R. Joyce
   
 
  Title:   Chief Executive Officer    
 
           
    TARGA RESOURCES GP LLC    
 
           
 
  By:
Name:
  /s/ Rene R. Joyce
 
Rene R. Joyce
   
 
  Title:   Chief Executive Officer    
 
           
    TARGA RESOURCES PARTNERS LP    
    By: Targa Resources GP LLC, its General Partner    
 
           
 
  By:
Name:
  /s/ Rene R. Joyce
 
Rene R. Joyce
   
 
  Title:   Chief Executive Officer