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): October 31, 2012

 

 

Marathon Petroleum Corporation

(Exact name of Registrant as specified in its charter)

 

 

 

Delaware   001-35054   27-1284632

(State or other jurisdiction

of incorporation)

 

(Commission

File Number)

 

(IRS Employer

Identification Number)

539 South Main Street

Findlay, Ohio 45840

(Address of principal executive offices, including zip code)

(419) 422-2121

(Registrant’s 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:

 

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

¨ 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.

On October 31, 2012, MPLX LP (the “Partnership”), a subsidiary of Marathon Petroleum Corporation (“MPC”), completed its initial public offering (the “Offering”) of 19,895,000 common units representing limited partner interests in the Partnership (“Common Units”), which included 2,595,000 Common Units pursuant to the underwriters’ option to purchase additional Common Units, at $22.00 per Common Unit pursuant to a Registration Statement on Form S-1, as amended (File No. 333-182500), initially filed by the Partnership with the Securities and Exchange Commission (the “Commission”) pursuant to the Securities Act of 1933, as amended (the “Securities Act”), on July 2, 2012. The material provisions of the Offering are described in the prospectus, dated October 25, 2012, filed with the Commission on October 29, 2012, pursuant to Rule 424(b) under the Securities Act (the “Prospectus”).

Contribution, Conveyance and Assumption Agreement

The description of the Contribution Agreement (as defined below) provided below under Item 2.01 is incorporated in this Item 1.01 by reference. A copy of the Contribution Agreement is filed as Exhibit 10.1 to this Current Report on Form 8-K and incorporated herein by reference.

Omnibus Agreement

On October 31, 2012, in connection with the closing of the Offering, MPC entered into an Omnibus Agreement (the “Omnibus Agreement”) among the Partnership, MPLX GP LLC (the “General Partner”), Marathon Petroleum Company LP (“MPCLP”), MPL Investment LLC (“MPL Investment”), MPLX Operations LLC (the “Operating Company”), MPLX Terminal and Storage LLC (“MTS”), MPLX Pipe Line Holdings LP (“Pipe Line Holdings”), Marathon Pipe Line LLC (“MPL”) and Ohio River Pipe Line LLC (“ORPL”), that addresses the following matters:

 

   

payment by the Partnership of an annual amount to MPC, initially in the amount of approximately $31.8 million, for the provision of certain general and administrative services by MPC and its affiliates, which annual amount includes a fixed annual fee of approximately $3.5 million for the provision of certain executive management services by certain officers of the Partnership’s general partner. Other portions of this annual amount will be based on the costs actually incurred by MPC and its affiliates in providing the services, except for the portion of the annual amount attributable to marketing and transportation engineering services, which will be based on the amounts actually incurred by MPC and its affiliates plus 6.0% of such costs;

 

   

the Partnership’s obligation to reimburse MPC and its affiliates for any out-of-pocket costs and expenses incurred by MPC in providing general and administrative services (which reimbursement is in addition to certain expenses of the Partnership’s general partner and its affiliates that are reimbursed under the Partnership Agreement (as defined below)), as well as any other out-of-pocket expenses incurred by MPC and its affiliates on the Partnership’s behalf;

 

   

an indemnity by wholly owned subsidiaries of MPC for certain environmental and other liabilities, and the Partnership’s obligation to indemnify MPC and its subsidiaries for events and conditions associated with the operation of the Partnership’s assets that occur after the closing of the Offering and for environmental liabilities related to the Partnership’s assets to the extent MPC is not required to indemnify the Partnership; and

 

   

the granting of a license from MPC to the Partnership with respect to the use of certain MPC trademarks and the granting of a license from the Partnership to MPC with respect to the use of certain Partnership trademarks.

So long as MPC controls the Partnership’s general partner, the Omnibus Agreement will remain in full force and effect. If MPC ceases to control the Partnership’s general partner, either party may terminate the Omnibus Agreement, provided that the indemnification obligations will remain in full force and effect in accordance with their terms.


The foregoing description is not complete and is qualified in its entirety by reference to the Omnibus Agreement, which is filed as Exhibit 10.2 to this Current Report on Form 8-K and incorporated herein by reference.

Relationships

Each of the Partnership, the General Partner, MPCLP, the Operating Company, MPC Investment LLC, MPLX Logistics Holdings LLC (“Logistics Holdings”), MPL, MPL Investment, MTS, Pipe Line Holdings and ORPL is a direct or indirect subsidiary of MPC. As a result, certain individuals, including officers and directors of MPC and the General Partner, serve as officers and/or directors of more than one of such other entities. As described in Item 2.01 below, the General Partner, as the general partner of the Partnership, holds 1,508,225 general partner units of the Partnership, which represents a 2% general partner interest in the Partnership and MPC, through Logistics Holdings, holds 17,056,515 Common Units and 36,951,515 subordinated units of the Partnership (“Subordinated Units”), which represent an approximate 71.6% limited partner interest in the Partnership.

 

Item 2.01 Completion of Acquisition or Disposition of Assets.

Contribution, Conveyance and Assumption Agreement

On October 31, 2012, in connection with the closing of the Offering, the General Partner, the Operating Company, MPC Investment LLC, Logistics Holdings, MPL, MPL Investment, Pipe Line Holdings and ORPL entered into a Contribution, Conveyance and Assumption Agreement (the “Contribution Agreement”) with the Partnership. Immediately prior to the closing of the Offering, the following transactions, among others, occurred pursuant to the Contribution Agreement:

 

   

MPC Investment LLC contributed to the General Partner, as a capital contribution, a limited liability company interest in the Operating Company with a value equal to 2.0% of the equity value of the Partnership immediately after the closing of the Offering;

 

   

the General Partner contributed to the Partnership, as a capital contribution, its limited liability company interest in the Operating Company in exchange for (a) 1,508,225 general partner units representing an aggregate 2% general partner interest in the Partnership and (b) all the incentive distribution rights of the Partnership;

 

   

Logistics Holdings contributed to the Partnership, as a capital contribution, its remaining limited liability company interest in the Operating Company in exchange for (a) 19,651,515 Common Units representing a 26.1% limited partner interest in the Partnership, (b) 36,951,515 Subordinated Units, representing a 49.0% limited partner interest in the Partnership and (c) the right to receive approximately $149 million in proceeds from the Offering to reimburse Logistics Holdings for certain capital expenditures incurred by Logistics Holdings with respect to the assets contributed by Logistics Holdings to the Partnership; and

 

   

The net proceeds from the exercise by the underwriters of their option to purchase additional Common Units from the Partnership in the Offering were used to redeem 2,595,000 Common Units from Logistics Holdings at a price per Common Unit equal to the proceeds per Common Unit in the Offering before expenses but after deducting underwriting discounts and the structuring fee, as described in the Prospectus under the section entitled “Use of Proceeds,” which is incorporated herein by reference.

These transfers and distributions were made in a series of steps outlined in the Contribution Agreement. The foregoing description is not complete and is qualified in its entirety by reference to the full text of the Contribution Agreement, which is attached as Exhibit 10.1 to this Current Report on Form 8-K and incorporated herein by reference.


Item 9.01 Financial Statements and Exhibits.

 

  (d) Exhibits.

 

Exhibit
Number

  

Description

10.1    Contribution, Conveyance and Assumption Agreement, dated as of October 31, 2012, among MPLX LP, MPLX GP LLC, MPLX Operations LLC, MPC Investment LLC, MPLX Logistics Holdings LLC, Marathon Pipe Line LLC, MPL Investment LLC, MPLX Pipe Line Holdings LP and Ohio River Pipe Line LLC.
10.2    Omnibus Agreement , dated as of October 31, 2012, among Marathon Petroleum Corporation, Marathon Petroleum Company LP, MPL Investment LLC, MPLX Operations LLC, MPLX Terminal and Storage LLC, MPLX Pipe Line Holdings LP, Marathon Pipe Line LLC, Ohio River Pipe Line LLC, MPLX LP and MPLX GP LLC.


SIGNATURES

Pursuant to the requirements of the Securities Act of 1933, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Date: November 6, 2012

 

Marathon Petroleum Corporation
By:  

/s/ J. Michael Wilder

  J. Michael Wilder
  Vice President, General Counsel and Secretary


Index to Exhibits

 

Exhibit
Number

  

Description

10.1    Contribution, Conveyance and Assumption Agreement, dated as of October 31, 2012, among MPLX LP, MPLX GP LLC, MPLX Operations LLC, MPC Investment LLC, MPLX Logistics Holdings LLC, Marathon Pipe Line LLC, MPL Investment LLC, MPLX Pipe Line Holdings LP and Ohio River Pipe Line LLC.
10.2    Omnibus Agreement , dated as of October 31, 2012, among Marathon Petroleum Corporation, Marathon Petroleum Company LP, MPL Investment LLC, MPLX Operations LLC, MPLX Terminal and Storage LLC, MPLX Pipe Line Holdings LP, Marathon Pipe Line LLC, Ohio River Pipe Line LLC, MPLX LP and MPLX GP LLC.

Exhibit 10.1

Execution copy

CONTRIBUTION, CONVEYANCE AND ASSUMPTION AGREEMENT

This Contribution, Conveyance and Assumption Agreement, dated as of October 31, 2012 (this “ Agreement ”), is by and among MPLX LP , a Delaware limited partnership (the “ Partnership ”), MPLX GP LLC , a Delaware limited liability company and the general partner of the Partnership (the “ General Partner ”), MPLX Operations LLC , a Delaware limited liability company (the “ Operating Company ”), MPC Investment LLC, a Delaware limited liability company, MPLX Logistics Holdings LLC , a Delaware limited liability company, Marathon Pipe Line LLC , a Delaware limited liability company, MPL Investment LLC , a Delaware limited liability company, MPLX Pipe Line Holdings LP , a Delaware limited partnership, and Ohio River Pipe Line LLC , a Delaware limited liability company (each, a “ Party ” and collectively, the “ Parties ”).

RECITALS

WHEREAS , the General Partner and MPLX Logistics Holdings LLC have caused the formation of the Partnership, pursuant to the Delaware Revised Uniform Limited Partnership Act (as amended from time to time, the “ Delaware Partnership Act ”), for the purpose of owning and operating crude oil, refined product and other hydrocarbon-based product pipelines and other midstream assets and providing related services, as well as engaging in any other business activity that is approved by the General Partner and that lawfully may be conducted by a limited partnership organized under the Delaware Partnership Act.

WHEREAS , in order to accomplish the objectives and purposes in the preceding recital, each of the following actions has been taken prior to the date hereof:

1. MPC Investment LLC formed the General Partner (f/k/a Marathon Petroleum Logistics GP LLC) under the terms of the Delaware Limited Liability Company Act (as amended from time to time, the “ Delaware LLC Act ”) and contributed $1,000.00 in exchange for all of the limited liability company interests in such company;

2. MPC Investment LLC formed MPLX Logistics Holdings LLC (f/k/a Marathon Petroleum Logistics Holdings LLC) under the Delaware LLC Act and contributed $2,000.00 in exchange for all of the limited liability company interests in such company;

3. MPLX Logistics Holdings LLC, as the limited partner, and the General Partner, as the general partner, formed the Partnership under the Delaware Partnership Act and contributed $980.00 and $20.00, respectively, in exchange for a 98% limited partner interest (the “ Initial LP Interest ”) and a 2% general partner interest, respectively, in the Partnership;

4. MPL Investment LLC formed the Operating Company under the Delaware LLC Act and contributed $1,000.00 in exchange for all of the limited liability company interests in such company;


5. Marathon Pipe Line LLC formed MPL Louisiana Holdings LLC under the Delaware LLC Act and contributed $1,000.00 in exchange for all of the limited liability company interests in such company;

6. Marathon Pipe Line LLC formed Hardin Street Holdings LLC under the Delaware LLC Act and contributed $1,000.00 in exchange for all of the limited liability company interests in such company;

7. The Operating Company formed MPLX Terminal and Storage LLC under the Delaware LLC Act and contributed $250.00 in exchange for all of the limited liability company interests in such company;

8. Marathon Petroleum Company LP formed Marathon Petroleum Logistics Services LLC under the Delaware LLC Act and contributed $1,000.00 in exchange for all of the limited liability company interests in such company;

9. MPL Investment LLC and the Operating Company formed MPLX Pipe Line Holdings LP (f/k/a Marathon Petroleum Pipeline Holdings LP) under the Delaware Partnership Act and contributed $500.00 and $500.00, respectively, in exchange for a 50% limited partner interest and a 50% general partner interest, respectively, in such partnership;

10. Effective July 1, 2012, Marathon Pipe Line LLC contributed to Hardin Street Holdings LLC, its successors and its assigns, a 60% limited liability company interest (representing all of Marathon Pipe Line LLC’s ownership interests), and all of Marathon Pipe Line LLC’s rights and obligations, in Muskegon Pipeline LLC, a Delaware limited liability company;

11. Effective September 1, 2012, Marathon Pipe Line LLC contributed to Hardin Street Holdings LLC, its successors and its assigns, all of Marathon Pipe Line LLC’s ownership interests, rights and obligations in Capline System, an undivided interest petroleum pipeline, and all of Marathon Pipe Line LLC’s ownership interests, rights and obligations in Maumee Pipeline Company, an undivided interest petroleum pipeline;

12. Effective September 1, 2012, Marathon Pipe Line LLC contributed to Hardin Street Holdings LLC, its successors and its assigns, a 58.52% limited liability company interest (representing all of Marathon Pipe Line LLC’s ownership interests) in LOCAP LLC, a Delaware limited liability company;

13. On September 14, 2012, the Operating Company, as borrower, and the Partnership, as parent guarantor, entered into a $500 million, five-year, unsecured revolving credit facility with Citibank, N.A., as administrative agent, and several other commercial lending institutions, as lenders and letter of credit issuing banks.

14. Pursuant to a purchase and sale agreement and related conveyance documents, effective September 30, 2012, Marathon Petroleum Company LP sold and transferred a butane cavern located in Neal, West Virginia and related assets to MPLX Terminal and Storage LLC;

 

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15. Effective October 1, 2012, all of the employees of Marathon Pipe Line LLC were transferred to and became employees of Marathon Petroleum Logistics Services LLC, a Delaware limited liability company;

16. Effective October 10, 2012, Marathon Pipe Line LLC contributed to MPL Louisiana Holdings LLC, its successors and its assigns, a 40.7% limited liability company interest (representing all of Marathon Pipe Line LLC’s ownership interests), and all of Marathon Pipe Line’s rights and obligations, in LOOP LLC, a Delaware limited liability company;

WHEREAS , concurrently with the consummation of the transactions contemplated hereby, each of the matters provided for in Article II will occur in accordance with its respective terms;

WHEREAS , if the Over-Allotment Option (as defined herein) is exercised, each of the matters provided for in Article III will occur in accordance with its respective terms; and

WHEREAS , the members or partners of the Parties have taken or caused to be taken all limited liability company and partnership action, as the case may be, required to approve the transactions contemplated by this Agreement.

NOW, THEREFORE , in consideration of the mutual covenants, representations, warranties and agreements herein contained, the parties hereto agree as follows:

ARTICLE I

DEFINITIONS

Capitalized terms used but not otherwise defined herein shall have the respective meanings ascribed to such terms below:

Closing Date ” means the date on which the closing of the purchase and sale of Common Units to the Underwriters pursuant to the Underwriting Agreement occurs.

Closing Time ” means the “time of purchase” as defined in the Underwriting Agreement.

Common Unit ” means a common unit representing a limited partner interest in the Partnership having the rights set forth in the Partnership Agreement.

Current Assets ” means cash and cash equivalents, receivables (less allowance for doubtful accounts), receivables from related parties, intercompany accounts receivable, inventory (other than materials and supplies inventories) and other current assets.

Current Liabilities ” means accounts payable, payables to related parties, intercompany accounts payable, payroll and benefits payable, accrued taxes and other current liabilities (other than accrued liability – environmental).

 

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Effective Time ” means 12:01 a.m. Eastern Time on the Closing Date.

Offering ” means the initial public offering of the Partnership’s Common Units pursuant to the Registration Statement.

Omnibus Agreement ” means that certain Omnibus Agreement, dated as of the date of this Agreement, among Marathon Petroleum Corporation, Marathon Petroleum Company LP, MPL Investment LLC, the General Partner, the Partnership, the Operating Company, MPLX Terminal and Storage LLC, MPLX Pipe Line Holdings LP, Marathon Pipe Line LLC and Ohio River Pipe Line LLC, as such agreement may be amended, supplemented or restated from time to time.

Option Units ” means the Common Units that the Partnership will agree to issue upon an exercise of the Over-Allotment Option.

Original Partnership Agreement ” means that certain Agreement of Limited Partnership of the Partnership, dated as of April 10, 2012.

Over-Allotment Option ” has the meaning assigned to it in the Partnership Agreement.

Partnership Agreement ” means the First Amended and Restated Agreement of Limited Partnership of the Partnership, dated as of the date of this Agreement.

Registration Statement ” means the Registration Statement on Form S-1 filed with the United States Securities and Exchange Commission (Registration No. 333-182500), as amended.

Subordinated Unit ” means a subordinated unit representing a limited partner interest in the Partnership having the rights set forth in the Partnership Agreement.

Underwriters ” means the underwriting syndicate listed in the Underwriting Agreement.

Underwriting Agreement ” means a firm commitment underwriting agreement to be entered into between the Partnership and the underwriters named in the Registration Statement with respect to the Offering.

ARTICLE II

CONTRIBUTIONS, ACKNOWLEDGMENTS AND DISTRIBUTIONS

Each of the following transactions set forth in Sections 2.1 through 2.13 shall be completed as of the Effective Time in the order set forth herein:

2.1 MPLX Terminal and Storage LLC Contribution . MPL Investment LLC shall contribute to the Operating Company, and the Operating Company shall subsequently contribute to MPLX Terminal and Storage LLC, either an account receivable from MPL Investment LLC or an account payable to MPL Investment LLC, as the case may be, in an amount necessary to make the amount of the Current Assets of MPLX Terminal and Storage LLC equal to the amount of the Current Liabilities of MPLX Terminal and Storage LLC as of the Effective Time.

 

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2.2 Marathon Pipe Line LLC and Ohio River Pipe Line LLC Contributions . MPL Investment LLC shall contribute to each of Marathon Pipe Line LLC and Ohio River Pipe Line LLC either an account receivable from MPL Investment LLC or an account payable to MPL Investment LLC, as the case may be, in amounts necessary such that (a) the amount of the Current Assets of Marathon Pipe Line LLC shall be equal to the amount of the Current Liabilities of Marathon Pipe Line LLC and (b) the amount of the Current Assets of Ohio River Pipe Line LLC shall be equal to the amount of the Current Liabilities of Ohio River Pipe Line LLC, in each case as of the Effective Time.

2.3 Execution of the Partnership Agreement . The General Partner and MPLX Logistics Holdings LLC, as the organizational limited partner, shall amend and restate the Original Partnership Agreement by executing the Partnership Agreement in substantially the form included in Appendix A to the Registration Statement, with such changes as the General Partner and MPLX Logistics Holdings LLC may agree.

2.4 Distribution of the Hardin Street Holdings and the MPL Louisiana Holdings Interests . Notwithstanding any provision of the limited liability company agreements of Hardin Street Holdings LLC and MPL Louisiana Holdings LLC, each as amended as of the date hereof (the “ HSH and MPL Louisiana LLC Agreements ”), Marathon Pipe Line LLC hereby distributes, grants, bargains, conveys, assigns, transfers, sets over and delivers to MPL Investment LLC, its successors and its assigns, for its and their own use forever, all right, title and interest in and to 100% of the limited liability company interests in each of Hardin Street Holdings LLC and MPL Louisiana Holdings LLC, and MPL Investment LLC hereby accepts such limited liability company interests as a distribution from Marathon Pipe Line LLC. Notwithstanding any provision of the HSH and MPL Louisiana LLC Agreements, MPL Investment LLC is hereby admitted to each of Hardin Street Holdings LLC and MPL Louisiana Holdings LLC as a member, and hereby agrees that it is bound by the HSH and MPL Louisiana LLC Agreements as a member of each of Hardin Street Holdings LLC and MPL Louisiana Holdings LLC. Notwithstanding any provision of the HSH and MPL Louisiana LLC Agreements, immediately following the admission of MPL Investment LLC as a member of each of Hardin Street Holdings LLC and MPL Louisiana Holdings LLC, Marathon Pipe Line LLC shall and does hereby cease to be a member of each of Hardin Street Holdings LLC and MPL Louisiana Holdings LLC and shall thereupon cease to have or exercise any right or power as a member of Hardin Street Holdings LLC or MPL Louisiana Holdings LLC and Hardin Street Holdings LLC and MPL Louisiana Holdings LLC shall continue without dissolution.

2.5 Additional Capital Contribution to the Operating Company . MPL Investment LLC hereby grants, contributes, bargains, conveys, assigns, transfers, sets over and delivers to the Operating Company, its successors and assigns, for its and their own use forever, all right, title and interest in and to a 47.667% limited liability company interest in each of Marathon Pipe Line LLC and Ohio River Pipe Line LLC, and the Operating Company hereby accepts such limited liability company interests as a capital contribution from MPL Investment LLC. Notwithstanding any provision of the limited liability company agreements of Marathon

 

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Pipe Line LLC and Ohio River Pipe Line LLC (each as amended as of the date hereof, the “ MPL LLC Agreement ” and the “ ORPL LLC Agreement ,” respectively), the Operating Company is hereby admitted to Marathon Pipe Line LLC and Ohio River Pipe Line LLC as a member of Marathon Pipe Line LLC and Ohio River Pipe Line LLC, respectively, and hereby agrees that it is bound by the MPL LLC Agreement and the ORPL LLC Agreement. MPL Investment LLC hereby continues as a member of Marathon Pipe Line LLC and Ohio River Pipe Line LLC, holding 52.333% of the limited liability company interests in each, notwithstanding any provision of the MPL LLC Agreement or the ORPL LLC Agreement.

2.6 Additional Capital Contribution to MPLX Pipe Line Holdings LP; Partial Redemption of Limited Partner Interest in MPLX Pipe Line Holdings LP . The Operating Company hereby contributes $10.00 to MPLX Pipe Line Holdings LP as a capital contribution in exchange for an additional 1% general partner interest in MPLX Pipe Line Holdings LP, and MPLX Pipe Line Holdings LP hereby accepts such capital contribution. MPLX Pipe Line Holdings LP hereby distributes $10.00 to MPL Investment LLC in redemption of a 1% limited partner interest in MPLX Pipe Line Holdings LP, and MPL Investment LLC hereby accepts such distribution and redemption. The Operating Company hereby continues as general partner of MPLX Pipe Line Holdings LP, owning a 51% general partner interest, and MPL Investment LLC hereby continues as limited partner of MPLX Pipe Line Holdings LP, owning a 49% limited partner interest.

2.7 Partial Contribution of Marathon Pipe Line LLC and Ohio River Pipe Line LLC Interests . MPL Investment LLC hereby grants, contributes, bargains, conveys, assigns, transfers, sets over and delivers to MPLX Pipe Line Holdings LP, its successors and assigns, for its and their own use forever, all right, title and interest in and to a 52.333% limited liability company interest in each of Marathon Pipe Line LLC and Ohio River Pipe Line LLC, and MPLX Pipe Line Holdings LP hereby accepts such limited liability company interests as a capital contribution from MPL Investment LLC. Notwithstanding any provision of the MPL LLC Agreement and the ORPL LLC Agreement, MPLX Pipe Line Holdings LP is hereby admitted to Marathon Pipe Line LLC and Ohio River Pipe Line LLC as a member of Marathon Pipe Line LLC and Ohio River Pipe Line LLC, respectively, and hereby agrees that it is bound by the MPL LLC Agreement and the ORPL LLC Agreement. Immediately following the admission of MPLX Pipe Line Holdings LP as a member of each of Marathon Pipe Line LLC and Ohio River Pipe Line LLC, MPL Investment LLC shall and does hereby cease to be a member of each of Marathon Pipe Line LLC and Ohio River Pipe Line LLC and shall thereupon cease to have or exercise any right or power as a member of Marathon Pipe Line LLC or Ohio River Pipe Line LLC. The Operating Company hereby continues as a member of each of Marathon Pipe Line LLC and Ohio River Pipe Line LLC, owning a 47.667% limited liability company interest in each, notwithstanding any provision of the MPL LLC Agreement or the ORPL LLC Agreement.

2.8 Additional Partial Contribution of Marathon Pipe Line LLC and Ohio River Pipe Line LLC Interests . The Operating Company hereby grants, contributes, bargains, conveys, assigns, transfers, sets over and delivers to MPLX Pipe Line Holdings LP, its successors and its assigns, for its and their own use forever, all right, title and interest in and to a 47.667% limited liability company interest in each of Marathon Pipe Line LLC and Ohio River

 

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Pipe Line LLC, and MPLX Pipe Line Holdings LP hereby accepts such limited liability company interests as a capital contribution from the Operating Company. Immediately following such contribution of such limited liability company interests, MPLX Pipe Line Holdings LP shall and does hereby continue as the sole member of each of Marathon Pipe Line LLC and Ohio River Pipe Line LLC, the Operating Company shall and does hereby cease to be a member of each of Marathon Pipe Line LLC and Ohio River Pipe Line LLC and shall thereupon cease to have or exercise any right or power as a member of Marathon Pipe Line LLC or Ohio River Pipe Line LLC and Marathon Pipe Line LLC and Ohio River Pipe Line LLC are hereby continued without dissolution.

2.9 Distribution of Operating Company Interests . MPL Investment LLC hereby grants, distributes, bargains, conveys, assigns, transfers, sets over and delivers to MPC Investment LLC, its successors and its assigns, for its and their own use forever, all right, title and interest in and to all of the limited liability company interests in the Operating Company, and MPC Investment LLC hereby accepts such limited liability company interests as a distribution from MPL Investment LLC and is hereby admitted as a substitute member of the Operating Company. Immediately following such admission, MPL Investment LLC shall and does hereby cease to be a member of the Operating Company.

2.10 Contribution of the OLLC Interest to the General Partner . MPC Investment LLC hereby grants, contributes, bargains, conveys, assigns, transfers, sets over and delivers to the General Partner, its successors and its assigns, for its and their own use forever, all right, title and interest in and to a portion of its limited liability company interests in the Operating Company with a value equal to 2% of the equity value of the Partnership immediately after the Closing (the “ OLLC Interest ”), and the General Partner hereby accepts such OLLC Interest as a capital contribution from MPC Investment LLC. Notwithstanding any provision of the limited liability company agreement of the Operating Company (the “ Operating Company LLC Agreement ”), the General Partner is hereby admitted to the Operating Company as a member of the Operating Company holding the OLLC Interest and hereby agrees that it is bound by the Operating Company LLC Agreement. MPC Investment LLC hereby continues as a member of the Operating Company with respect to the portion of its limited liability company interest in the Operating Company not transferred to the General Partner.

2.11 Contribution of Remaining Operating Company Interests to MPLX Logistics Holdings LLC . MPC Investment LLC hereby grants, contributes, bargains, conveys, assigns, transfers, sets over and delivers to MPLX Logistics Holdings LLC, its successors and its assigns, for its and their own use forever, all right, title and interest in and to MPC Investment LLC’s remaining limited liability company interests in the Operating Company, and MPLX Logistics Holdings LLC hereby accepts such limited liability company interests as a capital contribution from MPC Investment LLC. Notwithstanding any provision of the Operating Company LLC Agreement, MPLX Logistics Holdings LLC is hereby admitted to the Operating Company as a member of the Operating Company and hereby agrees that it is bound by the Operating Company LLC Agreement. Immediately following such contribution of such limited liability company interests, the General Partner shall and does hereby continue as a member of the Operating Company holding the OLLC Interest, MPC Investment LLC shall and does hereby cease to be a member of the Operating Company and shall thereupon cease to have or exercise any right or power as a member of the Operating Company, and the Operating Company is hereby continued without dissolution.

 

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2.12 Contribution of the OLLC Interest to the Partnership . The General Partner hereby grants, contributes, bargains, conveys, assigns, transfers, sets over and delivers to the Partnership, its successors and its assigns, for its and their own use forever, all right, title and interest in and to the OLLC Interest in exchange for (a) a continuation of the General Partner’s 2% general partner interest in the Partnership and (b) the issuance to the General Partner of all of the limited partner interests in the Partnership classified as “Incentive Distribution Rights” under the Partnership Agreement, and the Partnership hereby accepts such OLLC Interest. Notwithstanding any provision of the Operating Company LLC Agreement, the Partnership is hereby admitted to the Operating Company as a member of the Operating Company and hereby agrees that it is bound by the Operating Company LLC Agreement. Immediately following such contribution of such OLLC Interest, MPLX Logistics Holdings LLC shall and does hereby continue as a member of the Operating Company, the General Partner shall and does hereby cease to be a member of the Operating Company and shall thereupon cease to have or exercise any right or power as a member of the Operating Company, and the Operating Company is hereby continued without dissolution.

2.13 Additional Contribution of Operating Company Interests . MPLX Logistics Holdings LLC hereby grants, contributes, bargains, conveys, assigns, transfers, sets over and delivers to the Partnership, its successors and its assigns, for its and their own use forever, all right, title and interest in and to all of MPLX Logistics Holdings LLC’s limited liability company interests in the Operating Company in exchange for (a) 19,651,515 Common Units representing a 26.1% limited partner interest in the Partnership, (b) 36,951,515 Subordinated Units representing a 49% limited partner interest in the Partnership and (c) the right to receive $149,144,119.22 in proceeds from the Offering to reimburse MPLX Logistics Holdings LLC for certain capital expenditures incurred by MPLX Logistics Holdings LLC with respect to the assets owned by MPLX Terminal and Storage LLC, Marathon Pipe Line LLC and Ohio River Pipe Line LLC, and the Partnership hereby accepts such limited liability company interests. Immediately following such contribution of such limited liability company interests, the Partnership shall and does continue as the sole member of the Operating Company, MPLX Logistics Holdings LLC shall and does hereby cease to be a member of the Operating Company and shall thereupon cease to have or exercise any right or power as a member of the Operating Company, and the Operating Company is continued without dissolution.

Each of the following transactions set forth in Sections 2.14 through 2.17 shall be completed as of the Closing Time, and in any event only after completion of the transactions set forth in Sections 2.1 through 2.13 , in the order set forth herein:

2.14 Public Cash Contribution . The Parties acknowledge that, in connection with the Offering, the public, through the Underwriters, has made a capital contribution to the Partnership of $380,600,000.00 in cash in exchange for 17,300,000 Common Units (the “ Firm Units ”) representing a 22.9% limited partner interest in the Partnership and new limited partners are being admitted to the Partnership in connection therewith.

 

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2.15 Payment of Transaction Expenses and Contribution of Proceeds by the Partnership . The Parties acknowledge (a) the payment by the Partnership, in connection with the Closing, of transaction expenses in the amount of approximately $4.9 million, excluding underwriting discounts of $22,836,000.00 in the aggregate but including a structuring fee of 0.375% of the gross proceeds of the Offering payable to certain of the Underwriters (the “ Structuring Fee ”), (b) the distribution and payment of $149,144,119.22 to MPLX Logistics Holdings LLC as a reimbursement of qualified capital expenditures, and (c) the contribution by the Partnership of $201,600,000.00 to the Operating Company, of which $10,000,000.00 is to be used by the Operating Company for working capital purposes.

2.16 Capital Contribution to MPLX Pipe Line Holdings LP . The Operating Company hereby makes a capital contribution of $191,600,000.00 to MPLX Pipe Line Holdings LP to fund future capital projects, and MPLX Pipe Line Holdings LP hereby accepts such capital contribution from the Operating Company. Following this capital contribution, the Operating Company will hold a 51% general partner interest in MPLX Pipe Line Holdings LP and MPL Investment LLC will hold a 49% limited partner interest in MPLX Pipe Line Holdings LP.

2.17 Redemption of the Initial LP Interest from the Partnership and Return of Initial Capital Contribution . The Partnership hereby redeems the Initial LP Interest held by MPLX Logistics Holdings LLC and hereby refunds and distributes to MPLX Logistics Holdings LLC the initial contribution, in the amount of $980.00, made by MPLX Logistics Holdings LLC in connection with the formation of the Partnership, along with any interest or other profit that resulted from the investment or other use of such initial contribution.

ARTICLE III

EXERCISE OF OVER-ALLOTMENT OPTION

If the Over-Allotment Option is exercised in whole or in part, the Underwriters will contribute additional cash to the Partnership in exchange for Option Units at the Offering price per Common Unit set forth in the Registration Statement, net of underwriting discounts and the Structuring Fee. The Partnership hereby agrees to redeem a number of Common Units from MPLX Logistics Holdings LLC equal to the number of Option Units sold by the Partnership pursuant to the exercise of the Over-Allotment Option on the basis of the Offering price per Common Unit set forth in the Registration Statement, net of underwriting discounts and the Structuring Fee.

ARTICLE IV

FURTHER ASSURANCES

From time to time after the Effective Time, 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 to 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, (b) more fully and effectively to vest in the applicable Parties and their

 

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respective successors and assigns beneficial and record title to the interests contributed and assigned by this Agreement or intended to be so and (c) more fully and effectively to carry out the purposes and intent of this Agreement.

ARTICLE V

ORDER OF COMPLETION AND EFFECTIVENESS OF TRANSACTIONS

5.1 Order of Completion of Transactions . The transactions provided for in Sections 2.1 through 2.13 shall be completed as of the Effective Time in the order set forth in Article II . The transactions provided for in Sections 2.14 through 2.17 shall be completed as of the Closing Time in the order set forth in Article II . Following the completion of the transactions set forth in Article II , the transactions provided for in Article III , if they occur, shall be completed.

5.2 Effectiveness of Transactions . Notwithstanding anything contained in this Agreement to the contrary, (a) none of Sections 2.1 through 2.13 shall be operative or have any effect until the Effective Time and (b) none of the provisions of Sections 2.14 through 2.17 or Article III shall be operative or have any effect until the Closing Time, at which respective time all such applicable provisions shall be effective and operative in accordance with Section 5.1 without further action by any Party.

ARTICLE VI

MISCELLANEOUS

6.1 Costs . Except for the transaction expenses set forth in Section 2.15 , the Operating Company shall pay all expenses, fees and costs, including, but not limited to, all sales, use and similar taxes arising out of the contributions, distributions, conveyances and deliveries to be made under Article II and shall pay all documentary, filing, recording, transfer, deed and conveyance taxes and fees required in connection therewith. In addition, the Operating Company shall be responsible for all costs, liabilities and expenses (including court costs and reasonable attorneys’ fees) incurred in connection with the implementation of any conveyance or delivery pursuant to Article IV (to the extent related to any of the contributions, distributions, conveyances and deliveries to be made under Article II ).

6.2 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

 

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similar items or matters, whether or not non-limiting language (such as “without limitation,” “but not limited to” or other 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.

6.3 Successors and Assigns . This Agreement shall be binding upon and inure to the benefit of the Parties and their respective successors and assigns.

6.4 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.

6.5 Counterparts . This Agreement may be executed in any number of counterparts with the same effect as if all Parties had signed the same document. All counterparts shall be construed together and shall constitute one and the same instrument.

6.6 Choice of Law; Mediation; Submission to Jurisdiction . (a) This Agreement shall be subject to and governed by the laws of the State of Delaware, excluding any conflicts-of-law rule or principle that might refer the construction or interpretation of this Agreement to the laws of another state. EACH OF THE PARTIES HERETO AGREES THAT THIS AGREEMENT INVOLVES AT LEAST U.S. $100,000.00 AND THAT THIS AGREEMENT HAS BEEN ENTERED INTO IN EXPRESS RELIANCE UPON 6 Del. C. § 2708. EACH OF THE PARTIES HERETO IRREVOCABLY AND UNCONDITIONALLY AGREES (i) TO BE SUBJECT TO THE JURISDICTION OF THE COURTS OF THE STATE OF DELAWARE AND OF THE FEDERAL COURTS SITTING IN THE STATE OF DELAWARE, AND (ii) TO THE EXTENT SUCH PARTY IS NOT OTHERWISE SUBJECT TO SERVICE OF PROCESS IN THE STATE OF DELAWARE, TO APPOINT AND MAINTAIN AN AGENT IN THE STATE OF DELAWARE AS SUCH PARTY’S AGENT FOR ACCEPTANCE OF LEGAL PROCESS AND TO NOTIFY THE OTHER PARTY OF THE NAME AND ADDRESS OF SUCH AGENT.

(b) If the Parties cannot resolve any dispute or claim arising under this Agreement, then no earlier than 10 days nor more than 60 days following written notice to the other Parties to such dispute or claim, any Party to such dispute or claim may initiate mandatory, non-binding mediation hereunder by giving a notice of mediation (a “ Mediation Notice ”) to the other Parties to such dispute or claim. In connection with any mediation pursuant to this Section 6.6 , the mediator shall be jointly appointed by the Parties to the dispute or claim and the mediation shall be conducted in Findlay, Ohio unless otherwise agreed by the Parties to the dispute or claim. All costs and expenses of the mediator appointed pursuant to this section shall be shared equally by the Parties to the dispute or claim. The then-current Model ADR Procedures for Mediation of Business Disputes of the Center for Public Resources, Inc., either as written or as modified by mutual agreement of the Parties to the dispute or claim, shall govern any mediation pursuant to this section. In the mediation, each Party to the dispute or claim shall be represented by one or more senior representatives who shall have authority to resolve any disputes. If a dispute or claim has not been resolved within 30 days after the receipt of the Mediation Notice by a Party, then any Party to the dispute or claim may refer the resolution of the dispute or claim to litigation.

 

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(c) Subject to Section 6.6(b) , each Party agrees that it shall bring any action or proceeding in respect of any claim arising out of or related to this Agreement, whether in tort or contract or at law or in equity, exclusively in any federal or state courts located in Delaware and (i) irrevocably submits to the exclusive jurisdiction of such courts, (ii) waives any objection to laying venue in any such action or proceeding in such courts, (iii) waives any objection that such courts are an inconvenient forum or do not have jurisdiction over it and (iv) agrees that, to the fullest extent permitted by law, service of process upon it may be effected by mailing a copy thereof by registered or certified mail (or any substantially similar form of mail), postage prepaid, to it at its address specified in Section 6.9 . The foregoing consents to jurisdiction and service of process shall not constitute general consents to service of process in the State of Delaware for any purpose except as provided herein and shall not be deemed to confer rights on any person other than the Parties.

6.7 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.

6.8 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 and shall be designated on its face as an amendment to this Agreement. Notwithstanding anything in the foregoing to the contrary, any amendment executed by the Partnership or any of its subsidiaries shall not be effective unless and until the execution of such amendment has been approved by the conflicts committee of the General Partner’s board of directors.

6.9 Notices . All notices, requests and other communications required or permitted hereunder shall be in writing and shall be deemed duly given or delivered (i) when delivered personally, (ii) if transmitted by facsimile when confirmation of transmission is received or by email when receipt of such email is acknowledged by return email, (iii) if sent by registered or certified mail, postage prepaid, return receipt requested, on the third business day after mailing or (iv) if sent by private courier when received; and shall be addressed as follows:

 

if to:    MPLX LP
   c/o MPLX GP LLC, its general partner
   200 East Hardin St.
   Findlay, OH 45840
   Attention: President
   Email address: glpeiffer@marathonpetroleum.com

 

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if to:    MPLX GP LLC
   200 East Hardin St.
   Findlay, OH 45840
   Attention: President
   Email address: glpeiffer@marathonpetroleum.com
if to:    MPLX Operations LLC
   200 East Hardin St.
   Findlay, OH 45840
   Attention: President
   Email address: glpeiffer@marathonpetroleum.com
if to:    MPLX Logistics Holdings LLC
   539 South Main St.
   Findlay, OH 45840
   Attention: President
   Email address: dctemplin@marathonpetroleum.com
if to:    MPC Investment LLC
   539 South Main St.
   Findlay, OH 45840
   Attention: President
   Email address: grheminger@marathonpetroleum.com
if to:    MPL Investment LLC
   539 South Main St.
   Findlay, OH 45840
   Attention: President
   Email address: dctemplin@marathonpetroleum.com
if to:    Marathon Pipe Line LLC
   539 South Main St.
   Findlay, OH 45840
   Attention: President
   Email address: copierson@marathonpetroleum.com
if to:    MPLX Pipe Line Holdings LP
   c/o MPLX Operations LLC, its general partner
   200 East Hardin St.
   Findlay, OH 45840
   Attention: President
   Email address: glpeiffer@marathonpetroleum.com

 

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if to:    Ohio River Pipe Line LLC
   539 South Main St.
   Findlay, OH 45840
   Attention: President
   Email address: copierson@marathonpetroleum.com

or to such other address as such Party may indicate by a notice delivered in accordance with this Section 6.9 .

6.10 Integration . This Agreement and the instruments referenced herein supersede all previous understandings or agreements among the parties, whether oral or written, with respect to the subject matter of this Agreement and such instruments. This Agreement and such instruments contain the entire understanding of the Parties with respect to the subject matter hereof and thereof. There are no unwritten oral agreements between the parties. No understanding, representation, promise or agreement, whether oral or written, is intended to be or shall be included in or from part of this Agreement unless it is contained in a written amendment hereto executed by the parties hereto after the date of this Agreement.

6.11 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.

[Remainder of page intentionally left blank]

 

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IN WITNESS WHEREOF, the Parties to this Agreement have caused it to be duly executed as of the date first above written.

 

MPLX LP     MPLX GP LLC
By:   MPLX GP LLC      
Its:   General Partner      
      By:  

/s/ G. L. Peiffer

        G. L. Peiffer, President
By:  

/s/ G. L. Peiffer

     
  G. L. Peiffer, President      
MPLX Operations LLC     MPLX Logistics Holdings LLC
By:  

/s/ G. P. Shaffner

    By:  

/s/ D. C. Templin

  G. P. Shaffner, V. President       D. C. Templin, President
MPC Investment LLC     MPL Investment LLC
By:  

/s/ G. R. Heminger

    By:  

/s/ D. C. Templin

  G. R. Heminger, President       D. C. Templin, President
Marathon Pipe Line LLC     MPLX Pipe Line Holdings LP
      By:   MPLX Operations LLC
By:  

/s/ C. O. Pierson

    Its:   General Partner
  C. O. Pierson, President      
      By:  

/s/ G. P. Shaffner

        G. P. Shaffner, V. President
Ohio River Pipe Line LLC      
By:  

/s/ C. O. Pierson

     
  C. O. Pierson, President      

Signature page, Contribution Agreement

Exhibit 10.2

Execution copy

OMNIBUS AGREEMENT

This Omnibus Agreement (“ Agreement ”) is entered into on, and effective as of, the Closing Date among Marathon Petroleum Corporation, a Delaware corporation (“ MPC ”), Marathon Petroleum Company LP, a Delaware limited partnership (“ MPCLP ”), MPL Investment LLC, a Delaware limited liability company, MPLX LP, a Delaware limited partnership (the “ Partnership ”), MPLX GP LLC, a Delaware limited liability company (the “ General Partner ”), MPLX Operations LLC, a Delaware limited liability company (the “ Operating Company ”), MPLX Terminal and Storage LLC, a Delaware limited liability company (“ MTS ”), MPLX Pipe Line Holdings LP, a Delaware limited partnership (“ Holdings ”), Marathon Pipe Line LLC, a Delaware limited liability company (“ MPL ”), and Ohio River Pipe Line LLC, a Delaware limited liability company (“ ORPL ”).

RECITALS

1. The Parties desire by their execution of this Agreement to evidence their understanding, as more fully set forth in Article II , with respect to certain indemnification obligations of the Parties to each other.

2. The Parties desire by their execution of this Agreement to evidence their understanding, as more fully set forth in Article III , with respect to the amount to be paid by the Partnership for the centralized corporate services to be performed by MPC and its Affiliates (including the General Partner) for and on behalf of the Partnership Group.

3. The Parties desire by their execution of this Agreement to evidence their understanding, as more fully set forth in Article IV , with respect to the granting of certain licenses between the Parties.

In consideration of the premises and the covenants, conditions, and agreements contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:

ARTICLE I

Definitions

1.1 Definitions . As used in this Agreement, the following terms shall have the meanings set forth below:

Administrative Fee ” is defined in Section 3.2(a) .

Affiliate ” is defined in the Partnership Agreement.

Assets ” means all gathering pipelines, transportation pipelines, storage tanks, underground storage caverns, barge docks, pump stations, metering stations, vehicles, related equipment, offices, real estate, contracts and other assets, or portions thereof, conveyed, contributed or otherwise transferred or intended to be conveyed, contributed or otherwise transferred pursuant to the Contribution Agreement to any Group Member, or owned by, leased by or necessary for the operation of the business, properties or assets of any Group Member as of the Closing Date.


Closing Date ” means October 31, 2012.

Confidential Information ” means any proprietary or confidential information that is competitively sensitive material or otherwise of value to a Party or its Affiliates and not generally known to the public, including trade secrets, scientific or technical information, design, invention, process, procedure, formula, improvements, product planning information, marketing strategies, financial information, information regarding operations, consumer and/or customer relationships, consumer and/or customer identities and profiles, sales estimates, business plans, and internal performance results relating to the past, present or future business activities of a Party or its Affiliates and the consumers, customers, clients and suppliers of any of the foregoing. Confidential Information includes such information as may be contained in or embodied by documents, substances, engineering and laboratory notebooks, reports, data, specifications, computer source code and object code, flow charts, databases, drawings, pilot plants or demonstration or operating facilities, diagrams, specifications, bills of material, equipment, prototypes and models, and any other tangible manifestation (including data in computer or other digital format) of the foregoing; provided, however , that Confidential Information does not include information that a receiving Party can show (A) has been published or has otherwise become available to the general public as part of the public domain without breach of this Agreement, (B) has been furnished or made known to the receiving Party without any obligation to keep it confidential by a third party under circumstances which are not known to the receiving Party to involve a breach of the third party’s obligations to a Party or (C) was developed independently of information furnished or made available to the receiving Party as contemplated under this Agreement.

Contribution Agreement ” means that certain Contribution, Conveyance and Assumption Agreement, dated as of the Closing Date, among the General Partner, the Partnership, the Operating Company, MPLX Logistics Holdings LLC, MPL, ORPL, MPC Investment LLC, MPL Investment LLC and Holdings, together with the additional conveyance documents and instruments contemplated or referenced thereunder, as such may be amended, supplemented or restated from time to time.

Covered Environmental Losses ” is defined in Section 2.1 .

Employee Services Agreements ” means, collectively, (a) that certain Employee Services Agreement, dated as of September 30, 2012, by and among the General Partner, Catlettsburg Refining LLC, a Delaware limited liability company, and MTS, and (b) that certain Employee Services Agreement, dated as of October 1, 2012, by and among the General Partner, Marathon Petroleum Logistics Services LLC, a Delaware limited liability company, and MPL.

Environmental Deductible ” is defined in Section 2.6 .

Environmental Laws ” means all federal, state, and local laws, statutes, rules, regulations, orders, judgments, ordinances, codes, injunctions, decrees, Environmental Permits and other legally enforceable requirements and rules of common law relating to pollution or protection of human health, natural resources, wildlife and the environment or workplace health

 

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or safety including, without limitation, the federal Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as amended, 42 U.S.C. §§9601 et seq. , the Resource Conservation and Recovery Act of 1976, as amended, 42 U.S.C. §§6901 et seq. , the Clean Air Act, as amended, 42 U.S.C. §§7401 et seq. , the Federal Water Pollution Control Act, as amended, 33 U.S.C. §§1251 et seq ., the Toxic Substances Control Act, as amended, 15 U.S.C. §§2601 et seq. , the Oil Pollution Act of 1990, 33 U.S.C. §§2701 et seq. , the Safe Drinking Water Act of 1974, as amended, 42 USC §§300f et seq. , the Hazardous Materials Transportation Act of 1994, as amended, 49 U.S.C. §§ 5101 et seq. , and other environmental conservation and protection laws and the Occupational Safety and Health Act of 1970, 29 U.S.C. §§ 651 et seq , and the regulations promulgated pursuant thereto, and any state or local counterparts, each as amended from time to time.

Environmental Permit ” means any permit, approval, identification number, license, registration, certification, consent, exemption, variance or other authorization required under or issued pursuant to any applicable Environmental Law, including applications for renewal of such permits in which the application allows for continued operation under the terms of an expired permit.

Governmental Authority ” means any federal, state, tribal, foreign or local governmental entity, authority, department, court or agency, including any political subdivision thereof, exercising, or entitled to exercise, any administrative, executive, judicial, legislative, police, regulatory or taxing authority or power of any nature, and including any arbitrating body, commission or quasi-governmental authority or self-regulating organization of competent authority exercising or enlisted to exercise similar power or authority.

Group Member ” is defined in the Partnership Agreement.

Hazardous Substance ” means (a) any substance, whether solid, liquid, gaseous, semi-solid, or any combination thereof, that is designated, defined or classified as a hazardous waste, solid waste, hazardous material, pollutant, contaminant or toxic or hazardous substance, or terms of similar meaning, or that is otherwise regulated under any Environmental Law, including, without limitation, any hazardous substance as defined under the Comprehensive Environmental Response, Compensation, and Liability Act, as amended, and including asbestos and lead-containing paints or coatings, and (b) petroleum, oil, gasoline, natural gas, fuel oil, motor oil, waste oil, diesel fuel, jet fuel, and other refined petroleum hydrocarbons.

Holdings Business ” means the businesses and operations of Holdings and its Subsidiaries, including any Assets used in connection therewith.

Identification Deadline ” means the fifth anniversary of the Closing Date.

Indemnified Party ” means the Party entitled to indemnification in accordance with Article II .

Indemnifying Party ” means the Party from whom indemnification may be sought in accordance with Article II .

Limited Partner ” is defined in the Partnership Agreement.

 

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Losses ” means any losses, damages, liabilities, claims, demands, causes of action, judgments, settlements, fines, penalties, costs and expenses (including, without limitation, court costs and reasonable attorney’s and expert’s fees) of any and every kind or character, known or unknown, fixed or contingent.

Mediation Notice ” is defined in Section 6.2(b) .

MPC Entities ” means MPC and each of its Affiliates, other than a Group Member.

MPC License ” is defined in Section 4.1 .

MPC Marks ” is defined in Section 4.1 .

MPLX License ” is defined in Section 4.3 .

MPLX Marks ” is defined in Section 4.3 .

MPLX Trademark ” is defined in Section 4.3 .

Non-Holdings Assets ” means all Assets owned, directly or indirectly, by any Group Member other than Holdings and its Subsidiaries.

Partnership Agreement ” means the First Amended and Restated Agreement of Limited Partnership of MPLX LP, dated as of the Closing Date.

Partnership Change of Control ” means MPC ceases to control, directly or indirectly, the general partner of the Partnership. For purposes of this definition, “ control ” means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of the general partner of the Partnership, whether through ownership of voting securities, by contract, or otherwise.

Partnership Group ” is defined in the Partnership Agreement.

Party ” means a signatory to this Agreement.

Person ” means an individual or a corporation, firm, limited liability company, partnership, joint venture, trust, unincorporated organization, association, government agency or political subdivision thereof or other entity.

Representative ” is defined in Section 6.1(a) .

Retained Assets ” means all pipelines, storage tanks, vehicles, truck racks, terminal facilities, offices and related equipment, real estate, contracts and other related assets, or portions thereof owned by any of the MPC Entities that were not directly or indirectly conveyed, contributed or otherwise transferred to the Partnership Group pursuant to the Contribution Agreement or the other documents referenced in the Contribution Agreement.

Subsidiary ” is defined in the Partnership Agreement.

 

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1.2 Rules of Construction . Unless expressly provided for elsewhere in this Agreement, this Agreement shall be interpreted in accordance with the following provisions:

(a) If a word or phrase is defined, its other grammatical forms have a corresponding meaning.

(b) The headings contained in this Agreement are for reference purposes only and shall not affect the meaning or interpretation of this Agreement.

(c) A reference to any Party to this Agreement or another agreement or document includes the Party’s successors and assigns.

(d) 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, and article, section, subsection and schedule references are to this Agreement unless otherwise specified.

(e) The words “including,” “include,” “includes” and all variations thereof shall mean “including without limitation.”

(f) The word “or” shall have the inclusive meaning represented by the phrase “and/or.”

(g) The words “shall” and “will” have equal force and effect.

(h) The schedules identified in this Agreement are incorporated herein by reference and made a part of this Agreement.

(i) References to “$” or to “dollars” shall mean the lawful currency of the United States of America.

ARTICLE II

Indemnification

2.1 Environmental Indemnification .

(a) Each of MPL Investment LLC and MPCLP, jointly and severally, shall indemnify, defend and hold harmless each Group Member from and against any Losses suffered or incurred by such Group Member, directly or indirectly, by reason of or arising out of:

(i) any violation of Environmental Laws as in effect prior to the Closing Date;

(ii) any environmental event, condition or matter associated with or arising from the ownership or operation of the Assets (including the presence of Hazardous Substances on, under, about or migrating to or from the Assets or the disposal or the release of Hazardous Substances generated by operation of the Assets at non-Asset locations) including (A) the cost and expense of any investigation, assessment,

 

5


evaluation, monitoring, containment, cleanup, repair, restoration, remediation, risk-based closure activities, or other corrective action required or necessary under Environmental Laws and (B) the cost and expense of the preparation and implementation of any closure, remedial, corrective action, or other plans required or necessary under Environmental Laws as in effect prior to the Closing Date; and

(iii) any environmental event, condition or matter associated with or arising from the Retained Assets, whether occurring before, on or after the Closing Date and whether occurring under Environmental Laws as in effect prior to, at or after the Closing Date;

provided, however, that with respect to any violation under Section 2.1(a)(i) or any environmental event, condition or matter included under Section 2.1(a)(ii) that is associated with the ownership or operation of the Assets, MPL Investment LLC and MPCLP will be obligated to indemnify such Group Member only to the extent that such violation or environmental event, condition or matter (x) was caused by the consummation of the transactions contemplated by the Contribution Agreement or commenced, occurred or existed before the Closing Date under Environmental Laws as in effect prior to the Closing Date and (y) MPCLP is notified in writing of such violation, event, condition or environmental matter prior to the Identification Deadline. Losses subject to indemnification in this Section 2.1(a) are referred to collectively as “ Covered Environmental Losses ”.

(b) The Partnership shall indemnify, defend and hold harmless MPC from and against any Losses suffered or incurred by any of the MPC Entities, directly or indirectly, by reason of or arising out of:

(i) any violation of Environmental Laws as in effect on or after the Closing Date associated with or arising from the ownership or operation of the Non-Holdings Assets on or after the Closing Date; and

(ii) any environmental event, condition or matter associated with or arising from the ownership or operation of the Non-Holdings Assets on or after the Closing Date (including the presence of Hazardous Substances on, under, about or migrating to or from the Non-Holdings Assets or the disposal or the release of Hazardous Substances generated by operation of the Non-Holdings Assets at non-Asset locations) including (A) the cost and expense of any investigation, assessment, evaluation, monitoring, containment, cleanup, repair, restoration, remediation, risk-based closure activities, or other corrective action required or necessary under Environmental Laws in effect on or after the Closing Date, and (B) the cost or expense of the preparation and implementation of any closure, remedial, corrective action, or other plans required or necessary under Environmental Laws as in effect on or after the Closing Date;

and regardless of whether such violation under Section 2.1(b)(i) or such environmental event, condition or matter included under Section 2.1(b)(ii) occurred before or after the Closing Date, in each case, to the extent that any of the foregoing are not Covered Environmental Losses (without giving effect to the Environmental Deductible).

 

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(c) Holdings shall indemnify, defend and hold harmless MPC from and against any Losses suffered or incurred by any of the MPC Entities, directly or indirectly, by reason of or arising out of:

(i) any violation of Environmental Laws as in effect on or after the Closing Date associated with or arising from the ownership or operation of the Holdings Business on or after the Closing Date; and

(ii) any environmental event, condition or matter associated with or arising from the ownership or operation of the Holdings Business on or after the Closing Date (including the presence of Hazardous Substances on, under, about or migrating to or from the Holdings Business or the disposal or the release of Hazardous Substances generated by operation of the Holdings Business at non-Asset locations) including (A) the cost and expense of any investigation, assessment, evaluation, monitoring, containment, cleanup, repair, restoration, remediation, risk-based closure activities, or other corrective action required or necessary under Environmental Laws as in effect on or after the Closing Date, and (B) the cost or expense of the preparation and implementation of any closure, remedial, corrective action, or other plans required or necessary under Environmental Laws in effect on or after the Closing Date;

and regardless of whether such violation under Section 2.1(c)(i) or such environmental event, condition or matter included under Section 2.1(c)(ii) occurred before or after the Closing Date, in each case, to the extent that any of the foregoing are not Covered Environmental Losses (without giving effect to the Environmental Deductible).

2.2 Employees . MPCLP shall indemnify, defend and hold harmless each Group Member from and against any Losses suffered or incurred by such Group Member by reason of or arising out of the transfer of any employees to MPCLP or its Subsidiaries as described in Section 5.1 .

2.3 Right of Way Indemnification . Each of MPL Investment LLC and MPCLP, jointly and severally, shall indemnify, defend and hold harmless each Group Member from and against any Losses suffered or incurred by such Group Member by reason of or arising out of (a) the failure of such Group Member to be the owner of such valid and indefeasible easement rights or fee ownership or leasehold interests in and to the lands on which any of the Assets conveyed or contributed to such Group Member on the Closing Date is located as of the Closing Date, and such failure renders such Group Member liable to a third party or unable to use or operate the Assets in substantially the same manner that the Assets were used and operated as of immediately prior to the Closing Date; (b) the failure of such Group Member to have the consents, licenses and permits necessary to allow (1) any pipeline included in the Assets to cross the roads, waterways, railroads and other areas upon which any such pipeline is located as of the Closing Date, or (2) the transfer of any of the Assets to the Partnership Group, in each case, where such failure renders the Partnership Group liable to a third party or unable to use or operate the Assets in substantially the same manner that the Assets were used and operated as of immediately prior to the Closing Date; and (c) the cost of curing any condition set forth in Section 2.3(a) or (b)  that does not allow any Asset to be operated in accordance with prudent industry practice, in each case to the extent that MPCLP is notified in writing of any of the foregoing prior to the Identification Deadline.

 

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2.4 Additional Indemnification .

(a) Each of MPL Investment LLC and MPCLP, jointly and severally, shall indemnify, defend, and hold harmless each Group Member from and against any Losses suffered or incurred by such Group Member by reason of or arising out of:

(i) (A) the consummation of the transactions contemplated by the Contribution Agreement or (B) events and conditions associated with the ownership or operation of the Assets and occurring before the Closing Date (other than Covered Environmental Losses which are provided for under Section 2.1). For the avoidance of doubt, the Parties agree that each Group Member shall be entitled to indemnification by MPL Investment LLC and MPCLP under this Section 2.4(a)(i) for those litigation matters listed on Schedule A;

(ii) events and conditions associated with the Retained Assets, whether occurring before, on or after the Closing Date;

(iii) all federal, state and local tax liabilities attributable to the ownership or operation of the Assets on or prior to the Closing Date, including under Treasury Regulation Section 1.1502-6, as it may be amended (or any similar provision of state or local law), and any such tax liabilities that may result from the consummation of the formation transactions for the Partnership Group and the General Partner occurring prior to the Closing Date or from the consummation of the transactions contemplated by the Contribution Agreement; and

(iv) the failure of any Group Member to have on the Closing Date any consent, license, permit or approval necessary to allow such Group Member to own or operate the Assets in substantially the same manner that the Assets were owned or operated immediately prior to the Closing Date.

(b) The Partnership shall indemnify, defend, and hold harmless MPC from and against any Losses suffered or incurred by any of the MPC Entities by reason of or arising out of events and conditions to the extent associated with the ownership or operation of the Non-Holdings Assets and occurring after the Closing Date (other than Covered Environmental Losses which are provided for under Section 2.1(a) and Losses for which the Partnership is indemnifying MPC under Section 2.1(b) ), unless such indemnification would not be permitted by any Group Member under the Partnership Agreement;

(c) Holdings shall indemnify, defend, and hold harmless MPC from and against any Losses suffered or incurred by any of the MPC Entities by reason of or arising out of events and conditions to the extent associated with the ownership or operation of the Holdings Business and occurring after the Closing Date (other than Covered Environmental Losses which are provided for under Section 2.1(a) and Losses for which Holdings is indemnifying MPC under Section 2.1(c) ), unless such indemnification would not be permitted by any Group Member under the Partnership Agreement.

 

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2.5 Indemnification Procedures .

(a) The Indemnified Party agrees that within a reasonable period of time after it becomes aware of facts giving rise to a claim for indemnification under this Article II , it will provide notice thereof in writing to the Indemnifying Party, specifying the nature of and specific basis for such claim.

(b) The Indemnifying Party shall have the right to control all aspects of the defense of (and any counterclaims with respect to) any claims brought against the Indemnified Party that are covered by the indemnification under this Article II , including, without limitation, the selection of counsel, determination of whether to appeal any decision of any court and the settling of any such claim or any matter or any issues relating thereto; provided, however , that no such settlement for only the payment of money shall be entered into without the consent of the Indemnified Party unless it includes a full release of the Indemnified Party from such claim; provided further , that no such settlement containing any form of injunctive or similar relief shall be entered into without the prior written consent of the Indemnified Party, which consent shall not be unreasonably delayed or withheld.

(c) The Indemnified Party agrees to cooperate in good faith and in a commercially reasonable manner with the Indemnifying Party, with respect to all aspects of the defense of and pursuit of any counterclaims with respect to any claims covered by the indemnification under this Article II , including, without limitation, the prompt furnishing to the Indemnifying Party of any correspondence or other notice relating thereto that the Indemnified Party may receive, permitting the name of the Indemnified Party to be utilized in connection with such defense and counterclaims, the making available to the Indemnifying Party of any files, records or other information of the Indemnified Party that the Indemnifying Party considers relevant to such defense and counterclaims, the making available to the Indemnifying Party of any employees of the Indemnified Party and the granting to the Indemnifying Party of reasonable access rights to the properties and facilities of the Indemnified Party; provided, however , that in connection therewith the Indemnifying Party agrees to use reasonable efforts to minimize the impact thereof on the operations of the Indemnified Party and further agrees to maintain the confidentiality of all files, records, and other information furnished by the Indemnified Party pursuant to this Section 2.5 . The obligation of the Indemnified Party to cooperate with the Indemnifying Party as set forth in the immediately preceding sentence shall not be construed as imposing upon the Indemnified Party an obligation to hire and pay for counsel in connection with the defense of and pursuit of any counterclaims with respect to any claims covered by the indemnification set forth in this Article II ; provided, however , that the Indemnified Party may, at its own option, cost and expense, hire and pay for counsel in connection with any such defense and counterclaims. The Indemnifying Party agrees to keep any such counsel hired by the Indemnified Party informed as to the status of any such defense or counterclaim, but the Indemnifying Party shall have the right to retain sole control over such defense and counterclaims so long as the Indemnified Party is still seeking indemnification hereunder.

(d) In determining the amount of any loss, cost, damage or expense for which the Indemnified Party is entitled to indemnification under this Agreement, the gross amount of the indemnification will be reduced by (i) any insurance proceeds realized by the Indemnified Party, and such correlative insurance benefit shall be net of any incremental insurance premium that becomes due and payable by the Indemnified Party as a result of such claim and (ii) all amounts recovered by the Indemnified Party under contractual indemnities from third Persons.

 

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2.6 Limitations Regarding Indemnification .

(a) With respect to Covered Environmental Losses under Section 2.1(a)(i ) or Section 2.1(a)(ii) that arise out of an event, condition or matter that is first discovered after the Closing Date, neither MPL Investment LLC nor MPCLP shall be obligated to indemnify, defend and hold harmless any Group Member until such time as the total aggregate amount of Losses incurred by the Partnership Group for such Covered Environmental Losses exceeds $500,000 (the “ Environmental Deductible ”), at which time MPL Investment LLC and MPCLP shall be obligated to indemnify the Partnership Group for the excess of such Covered Environmental Losses over the Environmental Deductible. For the avoidance of doubt, it is agreed that the Environmental Deductible shall not apply to any Covered Environmental Losses incurred by any Group Member attributable to those locations identified on Schedule B .

(b) For the avoidance of doubt, there is no deductible with respect to the indemnification owed by any Indemnifying Party under any portion of this Article II other than that described in Section 2.6(a) and no monetary cap on the amount of indemnity coverage provided by any Indemnifying Party under this Article II .

(c) NOTWITHSTANDING ANYTHING HEREIN TO THE CONTRARY, IN NO EVENT SHALL ANY PARTY’S INDEMNIFICATION OBLIGATION HEREUNDER COVER OR INCLUDE CONSEQUENTIAL, INDIRECT, INCIDENTAL, PUNITIVE, EXEMPLARY, SPECIAL OR SIMILAR DAMAGES OR LOST PROFITS (INCLUDING ANY DIMINUTION IN VALUE OF ANY PARTY’S RESPECTIVE INVESTMENT IN HOLDINGS OR THE PARTNERSHIP) SUFFERED, DIRECTLY OR INDIRECTLY, BY ANY OTHER PARTY ENTITLED TO INDEMNIFICATION UNDER THIS AGREEMENT, EXCEPT AS A REIMBURSEMENT FOR ANY SUCH DAMAGES AS ARE PAID TO A GOVERNMENTAL ENTITY OR OTHER THIRD PARTY.

ARTICLE III

General and Administrative Services

3.1 General . MPC agrees to provide, and agrees to cause its Affiliates to provide, to the General Partner, for the Partnership Group’s benefit, the centralized general and administrative services that MPC and its Affiliates have traditionally provided in connection with the ownership and operation of the Assets, which consist of the services set forth on Schedule C (the “ General and Administrative Services ”). Absent the written agreement of the Parties to the contrary, the Parties agree that the General and Administrative Services will be performed in Ohio and will be received by the General Partner, for the benefit of the Partnership Group, at the General Partner’s principal place of business.

3.2 Administrative Fee .

(a) As consideration for MPC’s and its Affiliates’ provision of the General and Administrative Services, the Partnership Group will pay to MPC an annual fee that will reflect the costs incurred by MPC and its Affiliates in providing such General and Administrative

 

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Services (other than those costs for which MPC and its Affiliates are entitled to reimbursement pursuant to Section 3.3 ), as determined in good faith by MPC in accordance with Schedule C (the “ Administrative Fee ”). The Parties acknowledge and agree that it is the intent of the Parties that the General and Administrative Services be provided based on an arm’s-length standard, and that the Administrative Fee is intended to reflect such standard. For the avoidance of doubt, the Parties further acknowledge and agree that the Administrative Fee will cover the fully burdened cost of the General and Administrative Services provided by MPC and its Affiliates to the Partnership Group, as well as any third party costs actually incurred by MPC and its Affiliates on behalf of the Partnership Group in providing such General and Administrative Services (other than those costs for which MPC and its Affiliates are entitled to reimbursement pursuant to Section 3.3 ), including the following:

(i) the compensation and employee benefits of employees of MPC or its Affiliates (and any employment taxes related thereto), to the extent, but only to the extent, such employees perform General and Administrative Services for the Partnership Group’s benefit. With respect to employees that do not devote all of their business time to the Partnership Group, such compensation and employee benefits shall be allocated to the Partnership Group based on the annual weighted average of time spent and number of employees devoting services to the Partnership Group;

(ii) any expenses incurred or payments made by MPC or its Affiliates on behalf of the Partnership Group for insurance coverage with respect to the Assets or the business of the Partnership Group;

(iii) all expenses and expenditures incurred by MPC or its Affiliates on behalf of the Partnership Group as a result of the Partnership becoming and continuing as a publicly traded entity, including, but not limited to, costs associated with annual, quarterly or current reports, independent auditor fees, partnership governance and compliance, registrar and transfer agent fees, exchange listing fees, tax return and Schedule K-1 preparation and distribution, legal fees, independent director compensation and directors and officers liability insurance premiums; and

(iv) all sales, use, excise, value added or similar taxes, if any, that may be applicable from time to time with respect to the services provided by MPC and its Affiliates to the Partnership Group pursuant to Section 3.1 .

(b) As part of the Administrative Fee, the Partnership Group shall pay to MPC a fixed fee, in the amount shown on Schedule C , in consideration for the services of certain employees of MPC and its Affiliates in their capacities as officers of the General Partner and the Group Members. To the extent that the General Partner grants any awards under any of the Partnership’s or the General Partner’s incentive compensation plans in effect from time to time to any employee of MPC and its Affiliates, or any directors of the General Partner, such awards shall not be part of the Administrative Fee and shall be at the Partnership’s sole expense.

(c) The Parties acknowledge and agree that the Administrative Fee may change each calendar year, as determined by MPC in good faith, to accurately reflect the degree and extent of the General and Administrative Services provided to the Partnership Group and

 

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may be adjusted to reflect, among other things, the contribution, acquisition or disposition of assets to or by the Partnership Group or to reflect any change in the cost of providing General and Administrative Services to the Partnership Group due to changes in any law, rule or regulation applicable to the MPC Entities or the Partnership Group, including any interpretation of such laws, rules or regulations.

(d) On or prior to January 1 of each calendar year during the term of this Agreement, MPC will notify the General Partner of the estimated amount of the Administrative Fee (including both the fixed and variable portions of the Administrative Fee as described in Schedule C ) to be paid by the Partnership Group for such calendar year. For the calendar year in which the Closing Date occurs, such estimate shall be made on or prior to the Closing Date and shall pertain only to the remainder of such calendar year. Commencing with the first full month following the Closing Date, the Administrative Fee shall be invoiced and paid as follows:

(i) Within 20 days following the end of each month during the term of this Agreement, MPC will submit to the Partnership Group an invoice of the amounts due for such month for the Administrative Fee. Each invoice will contain reasonably satisfactory support of such amounts and such other supporting detail as the General Partner may reasonably require.

(ii) The Partnership Group will pay the Administrative Fee within 10 days after the receipt of the invoice therefor. The Partnership Group shall not offset any amounts owing to it by MPC or any of its Affiliates against the Administrative Fee payable hereunder.

3.3 Reimbursement of Expenses .

(a) In addition to the Administrative Fee payable under Section 3.2 , the Partnership Group will reimburse MPC and its Affiliates for any additional out-of-pocket costs and expenses actually incurred by MPC and its Affiliates in providing the General and Administrative Services, as well as any other out-of-pocket expenses incurred on behalf of the Partnership Group.

(b) The Partnership Group will reimburse MPC and its Affiliates for any costs and expenses incurred by MPC and its Affiliates under Section 3.3(a) as incurred on a monthly basis. For the avoidance of doubt, the General and Administrative Services provided by MPC and its Affiliates pursuant to this Article III will be in addition to, and not in duplication of, the services that will be provided to certain Group Members by certain Affiliates of MPC under the Employee Services Agreements, and MPC and its Affiliates shall not be entitled to reimbursement under this Agreement for any expenses for which Affiliates of MPC are entitled to reimbursement under the Employee Services Agreements.

ARTICLE IV

Licenses of Marks

4.1 Grant of MPC License . Upon the terms and conditions set forth in this Article IV , MPC and MPCLP hereby grant and convey to the Partnership and each of the entities currently or hereafter comprising a part of the Partnership Group a nontransferable, nonexclusive, royalty-free

 

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right and license (the “ MPC License ”) to use the red “M” with hexagon trademark (the “ Trademark ”) and the other trademarks and tradenames owned by MPC or MPCLP listed on Schedule D (collectively, the “ MPC Marks ”).

4.2 Ownership and Quality of MPC Marks . The Partnership, on behalf of itself and the other Group Members, agrees that ownership of the MPC Marks and the goodwill relating thereto shall remain vested in MPC or MPCLP, as applicable, during the term of the MPC License and thereafter. The Partnership agrees, and agrees to cause the other Group Members, never to challenge, contest or question the validity of MPC’s or MPCLP’s ownership of the MPC Marks or any registration thereof by MPC or MPCLP. In connection with the use of the MPC Marks, the Partnership and any other Group Member shall not in any manner represent that they have any ownership in the MPC Marks or registration thereof. The Partnership, on behalf of itself and the other Group Members, acknowledges that the use of the MPC Marks shall not create any right, title or interest in or to the MPC Marks, and all use of the MPC Marks by the Partnership or any other Group Member shall inure to the benefit of MPC or MPCLP, as applicable. The Partnership agrees, and agrees to cause the other Group Members, to use the MPC Marks in accordance with such quality standards established by MPC or MPCLP and communicated to the Partnership Group from time to time, it being understood that the products and services offered by the Group Members as of the Closing Date are of a quality that is acceptable to MPC and MPCLP.

4.3 Grant of MPLX License . Upon the terms and conditions set forth in this Article IV , the General Partner, for the benefit of the Partnership, hereby grants and conveys to MPC and its Affiliates a nontransferable, nonexclusive, royalty-free right and license (“ MPLX License ”) to use the “MPLX” logo and trademark (the “ MPLX Trademark ”) and the other trademarks and tradenames owned by the General Partner for the benefit of the Partnership listed on Schedule D (collectively, the “ MPLX Marks ”).

4.4 Ownership and Quality of MPLX Marks . MPC agrees, on behalf of itself and the other MPC Entities, that ownership of the MPLX Marks and the goodwill relating thereto shall remain vested in the General Partner, for the benefit of the Partnership, during the term of the MPLX License and thereafter. MPC agrees, and agrees to cause the other MPC Entities, never to challenge, contest or question the validity of the General Partner’s ownership of the MPLX Marks or any registration thereof by the General Partner or the Partnership. In connection with the use of the MPLX Marks, neither MPC nor any of the other MPC Entities shall in any manner represent that they have any ownership in the MPLX Marks or registration thereof. MPC, on behalf of itself and the other MPC Entities, acknowledges that the use of the MPLX Marks shall not create any right, title or interest in or to the MPLX Marks, and all use of the MPLX Marks by MPC or any of the other MPC Entities shall inure to the benefit of the General Partner and the Partnership. MPC agrees, and agrees to cause the other MPC Entities, to use the MPLX Marks in accordance with such quality standards established by the General Partner, on behalf of and for the benefit of the Partnership, and communicated to MPC from time to time.

4.5 Termination . The MPC License and the MPLX License shall each terminate upon the termination of this Agreement pursuant to Section 6.5 .

 

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ARTICLE V

Represented Employees

5.1 Transfer of Represented Employees . The Parties acknowledge that the employees of Marathon Pipe Line LLC were transferred to Marathon Petroleum Logistics Services LLC on or before the Closing Date. The Parties agree to cooperate and shall take all action necessary to effectuate such transfer and shall comply with the terms of the applicable collective bargaining agreements with respect to any of those employees.

ARTICLE VI

Miscellaneous

6.1 Confidentiality .

(a) From and after the Closing Date, each of the Parties shall hold, and shall cause their respective Subsidiaries and Affiliates and its and their directors, officers, employees, agents, consultants, advisors, and other representatives (collectively, “ Representatives ”) to hold all Confidential Information in strict confidence, with at least the same degree of care that applies to such Party’s confidential and proprietary information and shall not use such Confidential Information and shall not release or disclose such Confidential Information to any other Person, except its Representatives or except as required by applicable law. Each Party shall be responsible for any breach of this section by any of its Representatives.

(b) If a Party receives a subpoena or other demand for disclosure of Confidential Information received from any other Party or must disclose to a Governmental Authority any Confidential Information received from such other Party in order to obtain or maintain any required governmental approval, the receiving Party shall, to the extent legally permissible, provide notice to the providing Party before disclosing such Confidential Information. Upon receipt of such notice, the providing Party shall promptly either seek an appropriate protective order, waive the receiving Party’s confidentiality obligations hereunder to the extent necessary to permit the receiving Party to respond to the demand, or otherwise fully satisfy the subpoena or demand or the requirements of the applicable Governmental Authority. If the receiving Party is legally compelled to disclose such Confidential Information or if the providing Party does not promptly respond as contemplated by this section, the receiving Party may disclose that portion of Confidential Information covered by the notice or demand.

(c) Each Party acknowledges that the disclosing Party would not have an adequate remedy at law for the breach by the receiving Party of any one or more of the covenants contained in this Section 6.1 and agrees that, in the event of such breach, the disclosing Party may, in addition to the other remedies that may be available to it, apply to a court for an injunction to prevent breaches of this Section 6.1 and to enforce specifically the terms and provisions of this Section 6.1 . Notwithstanding any other section hereof, to the extent permitted by applicable law, the provisions of this Section 6.1 shall survive the termination of this Agreement.

 

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6.2 Choice of Law; Mediation; Submission to Jurisdiction .

(a) This Agreement shall be subject to and governed by the laws of the State of Delaware, excluding any conflicts-of-law rule or principle that might refer the construction or interpretation of this Agreement to the laws of another state. EACH OF THE PARTIES HERETO AGREES THAT THIS AGREEMENT INVOLVES AT LEAST U.S. $100,000.00 AND THAT THIS AGREEMENT HAS BEEN ENTERED INTO IN EXPRESS RELIANCE UPON 6 Del. C. § 2708. EACH OF THE PARTIES HERETO IRREVOCABLY AND UNCONDITIONALLY AGREES (i) TO BE SUBJECT TO THE JURISDICTION OF THE COURTS OF THE STATE OF DELAWARE AND OF THE FEDERAL COURTS SITTING IN THE STATE OF DELAWARE, AND (ii) TO THE EXTENT SUCH PARTY IS NOT OTHERWISE SUBJECT TO SERVICE OF PROCESS IN THE STATE OF DELAWARE, TO APPOINT AND MAINTAIN AN AGENT IN THE STATE OF DELAWARE AS SUCH PARTY’S AGENT FOR ACCEPTANCE OF LEGAL PROCESS AND TO NOTIFY THE OTHER PARTY OF THE NAME AND ADDRESS OF SUCH AGENT.

(b) If the Parties cannot resolve any dispute or claim arising under this Agreement, then no earlier than 10 days nor more than 60 days following written notice to the other Parties, any Party may initiate mandatory, non-binding mediation hereunder by giving a notice of mediation (a “ Mediation Notice ”) to the other Parties to the dispute or claim. In connection with any mediation pursuant to this Section 6.2 , the mediator shall be jointly appointed by the Parties to the dispute or claim and the mediation shall be conducted in Findlay, Ohio unless otherwise agreed by the Parties to the dispute or claim. All costs and expenses of the mediator appointed pursuant to this section shall be shared equally by the Parties to the dispute or claim. The then-current Model ADR Procedures for Mediation of Business Disputes of the Center for Public Resources, Inc., either as written or as modified by mutual agreement of the Parties to the dispute or claim, shall govern any mediation pursuant to this section. In the mediation, each Party to the dispute or claim shall be represented by one or more senior representatives who shall have authority to resolve any disputes. If a dispute or claim has not been resolved within 30 days after the receipt of the Mediation Notice by a Party, then any Party to the dispute or claim may refer the resolution of the dispute or claim to litigation.

(c) Subject to Section 6.2(b) , each Party agrees that it shall bring any action or proceeding in respect of any claim arising out of or related to this Agreement, whether in tort or contract or at law or in equity, exclusively in any federal or state courts located in Delaware and (i) irrevocably submits to the exclusive jurisdiction of such courts, (ii) waives any objection to laying venue in any such action or proceeding in such courts, (iii) waives any objection that such courts are an inconvenient forum or do not have jurisdiction over it and (iv) agrees that, to the fullest extent permitted by law, service of process upon it may be effected by mailing a copy thereof by registered or certified mail (or any substantially similar form of mail), postage prepaid, to it at its address specified in Section 6.3 . The foregoing consents to jurisdiction and service of process shall not constitute general consents to service of process in the State of Delaware for any purpose except as provided herein and shall not be deemed to confer rights on any Person other than the Parties.

6.3 Notice . All notices or requests or consents provided for by, or permitted to be given pursuant to, this Agreement must be in writing and must be given by e-mail or United

 

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States mail, addressed to the Person to be notified, postpaid, and registered or certified with return receipt requested or by delivering such notice in person or by facsimile to such Party. Notice given by personal delivery or mail shall be effective upon actual receipt. Notice given by e-mail or facsimile shall be effective upon actual receipt if received during the recipient’s normal business hours or at the beginning of the recipient’s next business day after receipt if not received during the recipient’s normal business hours. All notices to be sent to a Party pursuant to this Agreement shall be sent to or made at the address set forth below or at such other address as such Party may stipulate to the other Parties in the manner provided in this Section 6.3 .

If to MPC:

Marathon Petroleum Corporation

539 South Main St.

Findlay, OH 45840

Attn: General Counsel

Facsimile: (419) 421-3124

E-mail: jmwilder@marathonpetroleum.com

If to any Group Member:

MPLX LP

c/o MPLX GP LLC, its General Partner

200 East Hardin St.

Findlay, OH 45840

Attn: General Counsel

Facsimile: (419) 421-3124

E-mail: jmwilder@marathonpetroleum.com

6.4 Entire Agreement . This Agreement constitutes the entire agreement of the Parties relating to the matters contained herein, superseding all prior contracts or agreements, whether oral or written, relating to the matters contained herein.

6.5 Termination of Agreement . This Agreement, other than the provisions set forth in Article II hereof, may be terminated (a) by the written agreement of all of the Parties or (b) by MPC or the Partnership immediately upon a Partnership Change of Control by written notice given to the other Parties to this Agreement. For the avoidance of doubt, the Parties’ indemnification obligations under Article II shall, to the fullest extent permitted by law, survive the termination of this Agreement in accordance with their respective terms.

6.6 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 and shall be designated on its face an “Amendment” or an “Addendum” to this Agreement.

6.7 Assignment . No Party shall have the right to assign its rights or obligations under this Agreement without the consent of the other Parties; provided, however, that the Partnership Group may make a collateral assignment of this Agreement solely to secure financing for the Partnership Group.

 

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6.8 Counterparts . This Agreement may be executed in any number of counterparts with the same effect as if all signatory parties had signed the same document and shall be construed together and shall constitute one and the same instrument.

6.9 Severability . If any provision of this Agreement shall be held invalid or unenforceable by a court or regulatory body of competent jurisdiction, the remainder of this Agreement shall remain in full force and effect.

6.10 Further Assurances . In connection with this Agreement and all transactions contemplated by this Agreement, each signatory party hereto agrees to execute and deliver such additional documents and instruments and to perform such additional acts as may be necessary or appropriate to effectuate, carry out and perform all of the terms, provisions and conditions of this Agreement and all such transactions.

6.11 Rights of Limited Partners . The provisions of this Agreement are enforceable solely by the Parties to this Agreement, and no Limited Partner or other interest holder of the Partnership shall have the right, separate and apart from the Partnership, to enforce any provision of this Agreement or to compel any Party to this Agreement to comply with the terms of this Agreement.

[ Remainder of page intentionally left blank. ]

 

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IN WITNESS WHEREOF , the Parties have executed this Agreement on, and effective as of, the Closing Date.

 

Marathon Petroleum Corporation     Marathon Petroleum Company LP
    By:   MPC Investment LLC, its general partner
By:  

/s/ G. R. Heminger

     
  G. R. Heminger, President and Chief Executive Officer     By:  

/s/ G. R. Heminger

        G. R. Heminger, President
MPL Investment LLC     MPLX LP
      By:   MPLX GP LLC, its general partner
By:  

/s/ D. C. Templin

    By:  

/s/ G. L. Peiffer

  D. C. Templin, President       G. L. Peiffer, President
MPLX GP LLC     MPLX Operations LLC
By:  

/s/ G. L. Peiffer

    By:  

/s/ G. P. Shaffner

  G. L. Peiffer, President       G. P. Shaffner, V. President
Marathon Pipe Line LLC     Ohio River Pipe Line LLC
By:  

/s/ C. O. Pierson

    By:  

/s/ C. O. Pierson

  C. O. Pierson, President       C. O. Pierson, President
MPLX Pipe Line Holdings LP     MPLX Terminal and Storage LLC
By:  

MPLX Operations LLC,

its general partner

     
By:  

/s/ G. P. Shaffner

    By:  

/s/ B. R. McKain

  G. P. Shaffner, V. President       B. R. McKain, President

[Signature page to Omnibus Agreement]


Schedule A

Pre-Closing Litigation


Matter Name

 

Matter Type

 

Party

 

Matter Description

 

Case/Docket #

 

Court/Agency

 

State

Abert, Jennifer et al v Alberta Energy Company, Ltd, et al   Litigation   Marathon Pipe Line LLC   Personal injury   04L354   3rd Judicial
Cir. Ct
  IL
Bolin Enterprises, Inc.   Claim   Marathon Pipe Line LLC   Contract dispute       IN
Cherokee Clearing Inc. - Breach of Contract   Claim   Marathon Pipe Line LLC   Breach of contract       OH
First Federal v Troyer, et al (incl Ohio River Pipe Line)   Litigation   Marathon Pipe Line LLC   Foreclosure on property with easement.   10CV061   Holmes Cty
Common
Pleas
  OH
Garza, Maria, et al v MOC, et al   Litigation   Marathon Pipe Line LLC   Wrongful death; personal injuries   200960440   District Court   TX
Hurd, Tamara, et al v MPL and Willbros Engineers, et al   Litigation   Marathon Pipe Line LLC   Personal injury   10 006449 NO and
11 011761 NO
  3rd Judicial
Cir Ct
  MI
Johnny Ray Burton, Petitioner vs. Afton Pumps, inc., et al., including Marathon Pipe Line LLC   Litigation   Marathon Pipe Line LLC   Toxic tort, asbestos   201203839   Orleans Civil
Dist Ct
  LA
Mauritz, Daniel G. v. Marathon Pipe Line LLC   Litigation   Marathon Pipe Line LLC   Breach of easement   12-CV-0326   Richland Cty
Common
Pleas
  OH
MPL v Baker, Todd L And Susan R.   Litigation   Marathon Pipe Line LLC   Injunction against construction over a pipeline   87D01 0906 PL 249   Supreme
Court
  IN
MPL v. Community Trust Bank, Inc.   Litigation   Marathon Pipe Line LLC   Condemnation   11-CI-00666   Circuit Court   KY
MPL v. Mitchell Crooks   Litigation   Marathon Pipe Line LLC   Injunction to gain access to property   10-CI-90183   Bath Cir Ct   KY
People St of IL, et al vs Premcor Refining Grp, Inc, et al   Litigation   Marathon Pipe Line LLC   Contribution for environmental cleanup costs.   03-CH-459   3rd Judicial
Cir. Ct
  IL
Peter Grootendorst- Right of Way   Claim   Marathon Pipe Line LLC   Right of way dispute       MI
PHMSA-NOPV Proposed Penalty Proposed Compliance Ord 8/24/10   Regulatory/ Administrative   Marathon Pipe Line LLC   Notice of Probable Violation and proposed civil penalty   CPF 4-2010-5013   US Dept of
Transportation
  TX
Schoonover, Kira N v MPL   Litigation   Marathon Pipe Line LLC   Personal injury   26974   5th Judicial
Dist Ct
  WY
Southwind Golf Course   Claim   Marathon Pipe Line LLC   Property damage and loss of business       KY
Tolling Agreement - Speer   Claim   Marathon Pipe Line LLC   Property damage       MI
Village of Hartford vs Premcor Refining Group, et al   Litigation   Marathon Pipe Line LLC   Environmental contamination   08-L-637   3rd Judicial
Cir. Ct
  IL
Woodland Investments v MBD & Assocs, and MPL   Litigation   Marathon Pipe Line LLC   Easement Dispute   87DO1-1011-PL-584   Warrick
Superior Ct
  IN


Schedule B

Environmental Remediation Locations


Schedule B

 

Row   

Project #

  

Responsible Party

  

Description

1    212216    MPL/Legacy    MPL-Legacy: Louisville, KY, Louisville Block Valve No. 16, Robinson to Louisville line
2    81086    Legacy    MPL-Legacy: Mill Iron Rd, Griffith-Muskegon 10 Inch Products, MI
3    651016    MPL/Legacy    MPL-Legacy: Van Ness Property-Raccoon Creek, OH - Heath to Findlay line
4    81096    Legacy    MPL-Legacy: Zephyr, Griffith-Muskegon 10 Inch Products, MI
5    81106    Legacy    MPL-Legacy: Griffith, IN Station, Manifold Area Remediation
6    671985    MPL/ASH    MPL-E Sparta, OH-Assist the Village of E Sparta in Developing an Alternate Supply of Municipal Water
7    86036    Legacy    MPL-Legacy: Clinton Station, OH Pipeline Release -Toledo-Steubenville System


Schedule C

General and Administrative Services

Pursuant to Section 3.1

 

(1) Management services of MPC and its Affiliates (other than the General Partner) provided by employees who devote less than 50% of their business time to the business and affairs of the Partnership. This cost includes MPC-stock based compensation expense.

 

(2) Financial and administrative services (including treasury and accounting)

 

(3) Information technology services – professional services

 

(4) Legal services

 

(5) Health, environmental, safety and security services (including third party security services)

 

(6) Human resources services

 

(7) Tax services

 

(8) Procurement services

 

(9) Investor Relations; Government & Public affairs services

 

(10) Analytical & engineering services

 

(11) Business Development services

Pursuant to Section 3.2

The fixed portion of the Administrative Fee for calendar year 2013, as described in Section 3.2, will be $31,842,000. For the avoidance of doubt, the fixed portion of the Administrative Fee for the remainder of calendar year 2012 will be the same annual amount as calendar year 2013 pro-rated based on the number of days remaining in 2012 from the Closing Date.

The portion of the Administrative Fee attributable to any marketing and transportation engineering services, information technology services, administrative/office services, and public company expenses will be a variable amount based on the costs actually incurred by the MPC and its Affiliates on behalf of the Partnership Group (other than any costs for which MPC and its Affiliates are reimbursed pursuant to Section 3.3 ). The portion of the variable amount of the Administrative Fee attributable to any marketing and transportation engineering services described in the preceding sentence will be based on the costs incurred by MPC and its Affiliates on behalf of the Partnership Group (other than any costs for which MPC and its Affiliates are reimbursed pursuant to Section 3.3 ) plus 6.0% of such costs.


Pursuant to Section 3.2(b)

The fixed portion of the Administrative Fee for calendar year 2013 includes as a part thereof, the following amounts attributable to services provided by officers of the Partnership Group:

 

(1)

  

G. R. Heminger, Chairman of the Board and CEO

   $ 1,175,000   
  

G. L. Peiffer, President

   $ 475,000   
  

D. C. Templin, Chief Financial Officer

   $ 475,000   

(2)

  

All other officers as a group

   $ 1,350,000   
     

 

 

 
  

Total

   $ 3,475,000   


Schedule D

Trademarks, Tradenames & Patents


Schedule D

 

Depiction   Mark   Goods/Services   Status           Application    
Number
  Registration    
Number
  Registration    
Date
  Applicant

Word Mark

  AN AMERICAN COMPANY SERVING AMERICA   TRUCK TRANSPORTATION SERVICES (IC 39)   Registered   75090021   2059119   5/6/1997  

Marathon Petroleum

Company LP

LOGO

  M MARATHON & Design   STORAGE, TRANSPORTATION, DELIVERY, AND DISTRIBUTION OF OIL, GAS AND GASES VIA PIPELINE, TRUCK, TRAIN AND MARINE VESSELS (IC 39)   Registered   85425826   4167004   7/3/2012   Marathon Petroleum Company LP

LOGO

  MARATHON   STORAGE, TRANSPORTATION, DELIVERY AND DISTRIBUTION OF OIL, GAS AND GASES VIA PIPELINE, TRUCK, TRAIN AND MARINE VESSELS (IC 39)   Registered   85425783   4167002   7/3/2012   Marathon Petroleum Company LP

LOGO

  MPLX Logo & Design   Storage, transportation, delivery, shipping and distribution of oil, refined oil products and other hydrocarbon-based products via pipeline, truck, train and marine vessel; Processing of oil, refined oil products and other hydrocarbon-based products   Pending   85635730   N/A   N/A   MPLX GP LLC

LOGO

  MPLX Logo & Design   Storage, transportation, delivery, shipping and distribution of oil, refined oil products and other hydrocarbon-based products via pipeline, truck, train and marine vessel; Processing of oil, refined oil products and other hydrocarbon-based products   Pending   85638040   N/A   N/A   MPLX GP LLC

MPLX

  MPLX in block letter   Storage, transportation, delivery, shipping and distribution of oil, refined oil products and other hydrocarbon-based products via pipeline, truck, train and marine vessel; Processing of oil, refined oil products and other hydrocarbon-based products   Pending   85635348   N/A   N/A   MPLX GP LLC

MPLX ENERGYLOGISTICS

  MPLX Energy Logistics in block letter   Storage, transportation, delivery, shipping and distribution of oil, refined oil products and other hydrocarbon-based products via pipeline, truck, train and marine vessel; Processing of oil, refined oil products and other hydrocarbon-based products   Pending   85742385   N/A   N/A   MPLX GP LLC

LOGO

  MPLX Energy Logistics Logo & Design   Storage, transportation, delivery, shipping and distribution of oil, refined oil products and other hydrocarbon-based products via pipeline, truck, train and marine vessel; Processing of oil, refined oil products and other hydrocarbon-based products   Pending   85742497   N/A   N/A   MPLX GP LLC