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) March 1, 2017
 
_____________________________________________
MPLX LP
(Exact name of registrant as specified in its charter)
 
_____________________________________________
 
 
 
 
 
 
 
Delaware
 
001-35714
 
27-0005456
(State or other jurisdiction
of incorporation)
 
(Commission File Number)
 
(IRS Employer
Identification No.)
 
200 E. Hardin Street
Findlay, Ohio
 
45840
(Address of principal executive offices)
 
(Zip Code)
Registrant’s telephone number, including area code:
(419) 421-2414
(Former name or former address, if changed since last report.)
  _____________________________________________
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 March 1, 2017, MPLX LP (the “Partnership”) entered into a Membership Interests Contributions Agreement (the “Contributions Agreement”) with MPLX GP LLC (the “General Partner”), MPLX Logistics Holdings LLC (“MPLX Logistics”), MPLX Holdings Inc. (“MPLX Holdings”) and MPC Investment LLC (“MPC Investment”). Pursuant to the Contributions Agreement, MPC Investment agreed to contribute the outstanding membership interests in Hardin Street Transportation LLC (“Hardin Street Transportation”), Woodhaven Cavern LLC (“Woodhaven Cavern”) and MPLX Terminals LLC (“MPLX Terminals”) through a series of intercompany contributions to the Partnership for approximately $1.511 billion in cash and equity consideration valued at approximately $504 million (the “Transaction”).

MPLX Terminals owns and operates light products terminals. Hardin Street Transportation owns various crude oil and refined product pipeline systems and associated storage tanks. Woodhaven Cavern owns butane and propane storage caverns.

In connection with the closing of the Transaction on March 1, 2017, the Partnership issued (i) 9,197,900 common units representing limited partner interests in the Partnership (“Common Units”) to the General Partner, (ii) 2,630,427 Common Units to MPLX Logistics, and (iii) 1,132,049 Common Units to MPLX Holdings. The Partnership also issued 264,497 general partner units to the General Partner in order to maintain its two percent general partner interest in the Partnership.

The Contributions Agreement contains customary representations and warranties as well as customary indemnification obligations among the parties. The foregoing description of the Contributions Agreement is not complete and is qualified in its entirety by reference to the full text of the Contributions Agreement, which is filed as Exhibit 2.1 to this Current Report on Form 8-K and incorporated herein by reference.

The conflicts committee and the board of directors of the General Partner approved the terms of the Contributions Agreement on behalf of the Partnership. The conflicts committee, which is comprised of independent members of the board of directors of the General Partner, retained independent legal and financial advisors to assist it in evaluating and negotiating the Transaction.
Second Amended and Restated Employee Services Agreement
In connection with the closing of the Transaction, Marathon Petroleum Logistics Services LLC (“MPLS”), the General Partner and Marathon Pipe Line LLC (“MPL”) entered into a Second Amended and Restated Employee Services Agreement, dated March 1, 2017 (the “Second Amended and Restated Employee Services Agreement”), under which MPL has agreed to reimburse MPLS for the provision of certain operational and management services in support of the assets owned or operated by MPL. MPL pays monthly fees to MPLS for such services. The Second Amended and Restated Employee Services Agreement has an initial term ending on September 30, 2017, and automatically renews on a year to year basis thereafter, provided that either party may generally terminate upon 180 days written notice to the other.

The foregoing description of the Second Amended and Restated Employee Services Agreement is not complete and is qualified in its entirety by reference to the full text of the Second Amended and Restated Employee Services Agreement, which is filed as Exhibit 10.1 to this Current Report on Form 8-K and incorporated herein by reference.
With the closing of the Transaction, the following agreements were entered into or assumed by the Partnership through its ownership of Hardin Street Transportation and MPLX Terminals.

Transportation Services Agreement
Hardin Street Transportation is a party to a Transportation Services Agreement with Marathon Petroleum Company LP (“MPC LP”), dated January 1, 2015 (the “Transportation Services Agreement”). Under the Transportation Services Agreement, Hardin Street Transportation provides pipeline transportation of crude oil and refined products, as well as related services, for MPC LP. MPC LP pays Hardin Street Transportation monthly for such services based on contractual rates relating to MPC LP crude oil and refined product deliveries as well as any viscosity surcharges, loading, handling, transfers or other related charges.

Under the Transportation Services Agreement, if MPC LP fails to transport its quarterly minimum throughput volumes, MPC LP will pay a deficiency payment equal to the volume of the deficiency multiplied by the rate then in effect. If the minimum capacity of the pipeline falls below the level of MPC LP’s commitment at any time, depending on the cause of the reduction in capacity, MPC LP’s commitment may be reduced or MPC LP will receive a credit for its minimum volume commitment for that period.

On December 1, 2016, the parties entered into a First Amendment to the Transportation Services Agreement (the “First Amendment”) to remove certain pipeline systems from the agreement. On January 1, 2017, the parties entered into a Second





Amendment to the Transportation Services Agreement (the “Second Amendment”) to revise the initial term in the agreement as well as the renewal terms. The parties entered into a Third Amendment to the Transportation Services Agreement, dated January 1, 2017 (the “Third Amendment”), to permit Hardin Street Transportation to adjust certain contractual rates provided for in the Transportation Services Agreement.

The Transportation Services Agreement, as amended, has an initial term ending on December 31, 2026, and automatically renews for two additional renewal terms of four years each unless either party provides the other party with written notice of its intent to terminate at least six months prior to the end of the then-current term.

The foregoing description of the Transportation Services Agreement, First Amendment, Second Amendment and Third Amendment are not complete and are qualified in their entirety by reference to the full text of the Transportation Services Agreement, First Amendment, Second Amendment and Third Amendment, which are filed as Exhibit 10.2, Exhibit 10.3, Exhibit 10.4 and Exhibit 10.5, respectively, to this Current Report on Form 8-K and incorporated herein by reference.

Third Amended and Restated Terminal Services Agreement
MPLX Terminals is a party to a Third Amended and Restated Terminal Services Agreement with MPC LP, entered into on March 1, 2017 (the “Terminal Services Agreement”), whereby MPLX Terminals provides terminal storage for refined petroleum products, as well as related services, for MPC LP. MPC LP pays MPLX Terminals monthly for such services based on contractual fees relating to MPC LP product deliveries as well as any viscosity surcharges, loading, handling, transfers or other related charges.

Under the Terminal Services Agreement, if MPC LP fails to meet its quarterly minimum volume throughput commitments, MPC LP will pay a deficiency payment equal to the volume of the deficiency multiplied by the rate then in effect. If the average daily capacity of a terminal falls below the level of MPC LP’s commitment during a quarter, depending on the cause of the reduction in capacity, MPC LP’s throughput commitment will be reduced to equal the average daily capacity available during such quarter.

The Terminal Services Agreement has an initial term ending on March 31, 2026, and automatically renews for two additional renewal terms of five years each unless either party provides the other party with written notice of its intent to terminate at least 12 months prior to the end of the then-current term.

The foregoing description of the Terminal Services Agreement is not complete and is qualified in its entirety by reference to the full text of the Terminal Services Agreement, which is filed as Exhibit 10.6 to this Current Report on Form 8-K and incorporated herein by reference.

Third Amended and Restated Employee Services Agreement
MPLX Terminals is a party to a Third Amended and Restated Employee Services Agreement with MPLS with an effective date of December 21, 2015 (the “Third Amended and Restated Employee Services Agreement”). Under the Third Amended and Restated Employee Services Agreement, MPLX Terminals reimburses MPLS for employee benefit expenses along with certain operational and management services provided in support of the operations of MPLX Terminals.

The Third Amended and Restated Employee Services Agreement has an initial term ending on December 31, 2020, and automatically renews for two additional renewal terms of five years each unless either party provides the other party with written notice of its intent to terminate at least 12 months prior to the end of the then-current term.

The foregoing description of the Third Amended and Restated Employee Services Agreement is not complete and is qualified in its entirety by reference to the full text of the Third Amended and Restated Employee Services Agreement, which is filed as Exhibit 10.7 to this Current Report on Form 8-K and incorporated herein by reference.

Relationships
The General Partner manages the Partnership’s operations and activities through the General Partner’s officers and directors. Each of MPLX Logistics, MPLX Holdings, MPC Investment, the General Partner, MPC LP and MPLS are wholly-owned subsidiaries of Marathon Petroleum Corporation (“MPC”). As a result, certain individuals serve as officers and/or directors of one or more of such entities. After giving effect to the Transaction, MPC holds, indirectly through its subsidiaries, 99,579,689 Common Units, representing approximately 26.9 percent of the Common Units issued and outstanding as of March 1, 2017. Through its ownership of the General Partner, MPC also indirectly owns all of the Partnership’s incentive distribution rights as well as 7,636,916 general partner units, representing a two percent general partner interest in the Partnership.






Item 2.01
Completion of Acquisition or Disposition of Assets.
The Transaction closed on March 1, 2017. The description of the Transaction contained in Item 1.01 of this Current Report on Form 8-K is incorporated herein by reference.

Item 3.02
Unregistered Sales of Equity Securities.

The description in Item 1.01 above of the Partnership’s issuance of Common Units and general partner units in connection with the Transaction is incorporated into this Item 3.02 by reference, insofar as such information relates to the sale of unregistered equity securities. The sale and issuance of the Common Units and general partner units in connection with the Transaction is exempt from registration under Section 4(a)(2) of the Securities Act of 1933.

Item 9.01
Financial Statements and Exhibits.
(a)
Financial Statements of businesses acquired
The audited combined financial statements of Hardin Street Transportation LLC and Woodhaven Cavern LLC as of and for the years ended December 31, 2016 and 2015 are incorporated herein by reference to Exhibit 99.1 of this Current Report on Form 8-K.
The audited consolidated financial statements of MPLX Terminals LLC as of December 31, 2016 and for the nine months ended December 31, 2016 are incorporated herein by reference to Exhibit 99.2 of this Current Report on Form 8-K.
(b)
Pro forma financial information
The MPLX LP unaudited pro forma consolidated financial statements of income for each of the years in the two-year period ended December 31, 2016 and the unaudited pro forma balance sheet as of December 31, 2016 are incorporated herein by reference to Exhibit 99.3 of this Current Report on Form 8-K.
(d)
Exhibits.
Exhibit Number
 
Description
 
 
 
 
2.1*
 
Membership Interests Contributions Agreement, dated March 1, 2017, between MPLX LP, MPLX Logistics Holdings LLC, MPLX Holdings Inc., MPLX GP LLC and MPC Investment LLC
10.1
 
Second Amended and Restated Employee Services Agreement, dated March 1, 2017, between Marathon Petroleum Logistics Services LLC, Marathon Pipe Line LLC and MPLX GP LLC
10.2
 
Transportation Services Agreement, dated January 1, 2015, between Hardin Street Transportation LLC and Marathon Petroleum Company LP
10.3
 
First Amendment to Transportation Services Agreement, dated December 1, 2016, between Hardin Street Transportation LLC and Marathon Petroleum Company LP
10.4
 
Second Amendment to Transportation Services Agreement, dated January 1, 2017, between Hardin Street Transportation LLC and Marathon Petroleum Company LP
10.5
 
Third Amendment to Transportation Services Agreement, dated January 1, 2017, between Hardin Street Transportation LLC and Marathon Petroleum Company LP
10.6
 
Third Amended and Restated Terminal Services Agreement, dated March 1, 2017, between MPLX Terminals LLC and Marathon Petroleum Company LP
10.7
 
Third Amended and Restated Employee Services Agreement, effective December 21, 2015, between MPLX Terminals LLC and Marathon Petroleum Logistics Services LLC
23.1
 
Consent of PricewaterhouseCoopers LLP, independent accountants






23.2
 
Consent of PricewaterhouseCoopers LLP, independent accountants
99.1
 
Audited combined financial statements of Hardin Street Transportation LLC and Woodhaven Cavern LLC as of and for the years ended December 31, 2016 and 2015
99.2
 
Audited consolidated financial statements of MPLX Terminals LLC as of December 31, 2016 and for the nine months ended December 31, 2016
99.3
 
MPLX LP unaudited pro forma consolidated financial statements of income for each of the years in the two-year period ended December 31, 2016 and the unaudited pro forma balance sheet as of December 31, 2016

*The exhibits and schedules have been omitted pursuant to Item 601(b)(2) of Regulation S-K and will be provided to the Securities and Exchange Commission upon request.








SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
 
MPLX LP
 
 
 
 
 
 
 
By:
 
MPLX GP LLC, its General Partner
 
 
 
 
 
 
 
 
Date: March 2, 2017
By:
 
/s/ Pamela K.M. Beall
 
 
 
Name: Pamela K.M. Beall
 
 
 
Title: Executive Vice President and Chief Financial Officer





Index to Exhibits
 

Exhibit Number
 
Description
 
 
 
 
2.1*
 
Membership Interests Contributions Agreement, dated March 1, 2017, between MPLX LP, MPLX Logistics Holdings LLC, MPLX Holdings Inc., MPLX GP LLC and MPC Investment LLC
10.1
 
Second Amended and Restated Employee Services Agreement, dated March 1, 2017, between Marathon Petroleum Logistics Services LLC, Marathon Pipe Line LLC and MPLX GP LLC
10.2
 
Transportation Services Agreement, dated January 1, 2015, between Hardin Street Transportation LLC and Marathon Petroleum Company LP
10.3
 
First Amendment to Transportation Services Agreement, dated December 1, 2016, between Hardin Street Transportation LLC and Marathon Petroleum Company LP
10.4
 
Second Amendment to Transportation Services Agreement, dated January 1, 2017, between Hardin Street Transportation LLC and Marathon Petroleum Company LP
10.5
 
Third Amendment to Transportation Services Agreement, dated January 1, 2017, between Hardin Street Transportation LLC and Marathon Petroleum Company LP
10.6
 
Third Amended and Restated Terminal Services Agreement, dated March 1, 2017, between MPLX Terminals LLC and Marathon Petroleum Company LP
10.7
 
Third Amended and Restated Employee Services Agreement, effective December 21, 2015, between MPLX Terminals LLC and Marathon Petroleum Logistics Services LLC
23.1
 
Consent of PricewaterhouseCoopers LLP, independent accountants
23.2
 
Consent of PricewaterhouseCoopers LLP, independent accountants
99.1
 
Audited combined financial statements of Hardin Street Transportation LLC and Woodhaven Cavern LLC as of and for the years ended December 31, 2016 and 2015
99.2
 
Audited consolidated financial statements of MPLX Terminals LLC as of December 31, 2016 and for the nine months ended December 31, 2016
99.3
 
MPLX LP unaudited pro forma consolidated financial statements of income for each of the years in the two-year period ended December 31, 2016 and the unaudited pro forma balance sheet as of December 31, 2016

*The exhibits and schedules have been omitted pursuant to Item 601(b)(2) of Regulation S-K and will be provided to the Securities and Exchange Commission upon request.




Exhibit 2.1



MEMBERSHIP INTERESTS CONTRIBUTIONS AGREEMENT


among




MPLX LOGISTICS HOLDINGS LLC,

MPLX HOLDINGS INC.,

MPLX GP LLC,

MPLX LP,

and,

MPC INVESTMENT LLC.


Dated March 1, 2017





MEMBERSHIP INTERESTS CONTRIBUTIONS AGREEMENT
THIS MEMBERSHIP INTERESTS CONTRIBUTIONS AGREEMENT (the “ Agreement ”) is entered into on March 1, 2017, by and among MPLX Logistics Holdings LLC, a Delaware limited liability company (“ Logistics ”), MPLX Holdings, Inc., a Delaware corporation (“ Holdings ”), MPLX GP LLC, a Delaware limited liability company (“ MPLX GP ”), MPLX LP, a Delaware limited partnership (“ MPLX ”), and MPC Investment LLC, a Delaware limited liability company (“ MPCI ” and, collectively with Logistics, Holdings, MPLX GP and MPLX, the “ Parties ” and each individually a “ Party ”).
WITNESS:
WHEREAS , as of the date of this Agreement, MPCI is the owner and holder of record of all of the outstanding limited liability company membership interests in Hardin Street Transportation LLC, a Delaware limited liability company (“ Hardin ”);
WHEREAS , immediately prior to the Effective Time, MPCI will contribute to Logistics, which is a wholly owned subsidiary of MPCI, limited liability company membership interests in Hardin representing nineteen and eighty-nine one hundredths percent (19.89%) of the total outstanding limited liability company membership interests of Hardin (the “ Logistics Hardin Membership Interests ”);
WHEREAS , immediately prior to the Effective Time, MPCI will contribute to Holdings, which is a wholly owned subsidiary of MPCI, limited liability company membership interests in Hardin representing eight and fifty-six one hundredths percent (8.56%) of the total outstanding limited liability company membership interests of Hardin (the “ Holdings Hardin Membership Interests ”);

WHEREAS , immediately prior to the Effective Time, MPCI will contribute to MPLX GP, which is a wholly owned subsidiary of MPCI, limited liability company membership interests in Hardin, representing seventy-one and fifty-five one hundredths percent (71.55%) of the total outstanding limited liability company membership interests of Hardin (the “ MPLX GP Hardin Membership Interests ”);

WHEREAS , as of the date of this Agreement, MPCI is the owner and holder of record of all of the outstanding limited liability company membership interests in Woodhaven Cavern LLC, a Delaware limited liability company (“ Woodhaven ”);

WHEREAS , immediately prior to the Effective Time, MPCI will contribute to Logistics limited liability company membership interests in Woodhaven representing nineteen and eighty-nine one hundredths percent (19.89%) of the total outstanding limited liability company membership interests of Woodhaven (the “ Logistics Woodhaven Membership Interests ”);

WHEREAS , immediately prior to the Effective Time, MPCI will contribute to Holdings limited liability company membership interests in Woodhaven representing eight and fifty-six

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one hundredths percent (8.56%) of the total outstanding limited liability company membership interests of Woodhaven (the “ Holdings Woodhaven Membership Interests ”);

WHEREAS , immediately prior to the Effective Time, MPCI will contribute to MPLX GP limited liability company membership interest in Woodhaven, representing seventy-one and fifty-five one hundredths percent (71.55%) of the total outstanding limited liability company membership interests of Woodhaven (the “ MPLX GP Woodhaven Membership Interests ”);

WHEREAS , as of the date of this Agreement, MPCI is the owner and holder of record of all of the outstanding limited liability company membership interests in MPLX Terminals LLC, a Delaware limited liability company (“ Terminals ”);

WHEREAS , immediately prior to the Effective Time, MPCI will contribute to Logistics limited liability company membership interests in Terminals representing nineteen and eighty-nine one hundredths percent (19.89%) of the total outstanding limited liability company membership interests of Terminals (the “ Logistics Terminals Membership Interests ”);

WHEREAS , immediately prior to the Effective Time, MPCI will contribute to Holdings limited liability company membership interests in Terminals representing eight and fifty-six one hundredths percent (8.56%) of the total outstanding limited liability company membership interests of Terminals (the “ Holdings Terminals Membership Interests ”);

WHEREAS , immediately prior to the Effective Time, MPCI will contribute to MPLX GP limited liability company membership interests in Terminals, representing seventy-one and fifty-five one hundredths percent (71.55%) of the total outstanding limited liability company membership interests of Terminals (the “ MPLX GP Terminals Membership Interests ”);

WHEREAS , on February 10, 2017, MPLX issued senior notes, borrowing money, a portion of which is equal to or in excess of the Cash Consideration (as defined herein), MPLX has deposited and traced such amounts in specific accounts since February 10, 2017 (the “ Partnership Debt ”);

WHEREAS , it is contemplated by MPC, MPCI and MPLX that the fuels distributions services provided by MPCI in connection with the Terminals Business, as well as additional assets, will be sold/contributed in conjunction with an exchange of MPC’s economic interests in MPLX GP, including incentive distribution rights, for newly issued MPLX Common Units at a later date;

WHEREAS , Logistics is willing and desires to contribute to MPLX and MPLX is willing to accept from Logistics, the Logistics Membership Interests on the terms and conditions set out below;

WHEREAS , Holdings is willing and desires to contribute to MPLX and MPLX is willing to accept from Holdings, the Holdings Membership Interests on the terms and conditions set out below;


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WHEREAS , MPLX GP is willing and desires to contribute to MPLX and MPLX is willing to and accepts from MPLX GP, the MPLX GP Membership Interests on the terms and conditions set out below; and

WHEREAS , the Parties are willing to make the representations, warranties and covenants and to provide the consideration described in this Agreement.

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

ARTICLE 1
DEFINITIONS

1.1      Capitalized terms used in this Agreement have the meanings and are subject to the rules of construction set forth in Appendix A .

ARTICLE 2
CONTRIBUTIONS

2.1      MPCI Contributions to Logistics . Immediately prior to the Effective Time and further subject to the terms and conditions provided for in this Agreement, MPCI agrees to contribute the Logistics Membership Interests to Logistics.
2.2      MPCI Contributions to Holdings . Immediately prior to the Effective Time and further subject to the terms and conditions provided for in this Agreement, MPCI agrees to contribute the Holdings Membership Interests to Holdings.
2.3      MPCI Contributions to MPLX GP . Immediately prior to the Effective Time and further subject to the terms and conditions provided for in this Agreement, MPCI agrees to contribute the MPLX GP Membership Interests to MPLX GP.
2.4      Contribution of the Logistics Membership Interests to MPLX . Subject to the terms and conditions provided for in this Agreement, Logistics agrees to contribute, grant, bargain, convey, assign, transfer, set over and deliver to MPLX, its successors and assigns, for its and their own use forever, all of Logistics’ right, title and interest in and to the Logistics Membership Interests.
2.5      Contribution of the Holdings Membership Interests to MPLX . Subject to the terms and conditions provided for in this Agreement, Holdings agrees to contribute, grant, bargain, convey, assign, transfer, set over and deliver to MPLX, its successors and assigns, for its and their own use forever, all of Holdings’ right, title and interest in and to the Holdings Membership Interests.
2.6      Contribution of the MPLX GP Membership Interests to MPLX . Subject to the terms and conditions provided for in this Agreement MPLX GP agrees to contribute, grant, bargain, convey, assign, transfer, set over and deliver to MPLX, its successors and assigns, for

3


its and their own use forever, all of MPLX GP’s right, title and interest in and to the MPLX GP Membership Interests.
ARTICLE 3
CONSIDERATION

3.1      Logistics Consideration . In consideration of the contribution by Logistics described in Section 2.4 and subject to the terms and conditions provided for in this Agreement, MPLX agrees to (a) issue to Logistics, 2,630,427 Common Units, (the “ Logistics Issued Units ”) and (b) distribute to Logistics $300,587,625 funded from the Partnership Debt (the “ Logistics Cash Consideration ”). For the avoidance of doubt, the foregoing number of Common Units was determined by dividing $100,195,875 by the simple average of the ten day trailing volume weighted average NYSE price of a Common Unit for the ten trading days ending at market close on February 28, 2017.
3.2      Holdings Consideration . In consideration of the contribution by Holdings described in Section 2.5 and subject to the terms and conditions provided for in this Agreement, MPLX agrees to (a) issue to Holdings, 1,132,049 Common Units, (the “ Holdings Issued Units ”) and (b) distribute to Holdings $129,363,000 funded from the Partnership Debt (the “ Holdings Cash Consideration ”). For the avoidance of doubt, the foregoing number of Common Units was determined by dividing $43,121,000 by the simple average of the ten day trailing volume weighted average NYSE price of a Common Unit for the ten trading days ending at market close on February 28, 2017.
3.3      MPLX GP Consideration . In consideration of the contribution by MPLX GP described in Section 2.6 and subject to the terms and conditions provided for in this Agreement, MPLX agrees to (a) issue to MPLX GP, 264,497 GP Units (the “ MPLX GP Issued GP Units ”) and 9,197,900 Common Units (the “ MPLX GP Issued Common Units ” and, collectively with the MPLX GP Issued GP Units, the “ MPLX GP Issued Units ” and, together with the Logistics Issued Units and Holdings Issued Units, the “ Issued Units ”) and (b) distribute to MPLX GP $1,081,299,375 funded from the Partnership Debt (the “ MPLX GP Cash Consideration ” and, together with the Logistics Cash Consideration and the Holdings Cash Consideration, the “ Cash Consideration ” ($1,511,250,000 in the aggregate)). For the avoidance of doubt, (i) the foregoing number of GP Units was determined by dividing $10,075,000 by the simple average of the ten day trailing volume weighted average NYSE price of a Common Unit for the ten trading days ending at market close on February 28, 2017; and (ii) the foregoing number of Common Units was determined by dividing $350,358,125 by the simple average of the ten day trailing volume weighted average NYSE price of a Common Unit for the ten trading days ending at market close on February 28, 2017.
3.4      Waiver of Certain First Quarter Distributions . Logistics, Holdings and MPLX GP further agree that:
(a)      each of Logistics, Holdings and MPLX GP hereby waive any right to, will not be entitled to, and will not receive, two thirds (2/3) of a cash distribution pursuant to Section 6.4 of the MPLX Partnership Agreement relating to the quarter ended March 31, 2017 in

4


respect of the Logistics Issued Units, the Holdings Issued Units and the MPLX GP Issued Common Units, as applicable; and
(b)      neither the Logistics Issued Units, the Holdings Issued Units, the MPLX GP Issued Common Units nor any interest therein shall be transferable by Logistics, Holdings or MPLX GP, except for transfers to affiliated entities of Logistics, Holdings or MPLX GP, as applicable, until such time as MPLX GP determines, based on advice of counsel, that each Common Unit comprising part of the Logistics Issued Units, the Holdings Issued Units or the MPLX GP Issued Common Units should have, as a substantive matter, like intrinsic economic and federal income tax characteristics, in all material respects, to the intrinsic economic and federal income tax characteristics of an Initial Common Unit (as defined in the MPLX Partnership Agreement). In connection with the condition imposed by this Section 3.4(b) , MPLX GP may take whatever steps are required to provide economic uniformity to each Common Unit comprising part of the Logistics Issued Units, the Holdings Issued Units and the MPLX GP Issued Common Units, including the application of Section 6.1(d)(x)(D) of the MPLX Partnership Agreement. For the avoidance of doubt, such determination by MPLX GP may occur at any time following the Closing.
In addition, for the avoidance of doubt, the Parties agree that the waiver set forth in Section 3.4(a) above shall be effected by MPLX GP determining “Available Cash” under the MPLX Partnership Agreement as an amount that excludes the amount that would otherwise have been distributed to the Logistics Issued Units, the Holdings Issued Units and the MPLX GP Issued Common Units, as applicable, and distributing such “Available Cash” such that the amounts distributed in respect of the general partner interest and the incentive distribution rights in MPLX are proportionately less than the amounts that would have been distributed in respect of such interests had such waiver not been in place.
ARTICLE 4
INDEMNIFICATION

4.1      Indemnification by MPCI, Logistics, Holdings and MPLX GP .

(a)      Subject to Section 4.3 , from and after the Closing Date, each of MPCI, Logistics and Holdings shall, jointly and severally, indemnify, defend and hold harmless, MPLX, and any other of MPLX’s Affiliates and its and their respective directors, members, officers, employees, and representatives (the “ MPLX Indemnitees ”), from and against any losses, liabilities, liens, encumbrances, costs, damages, deficiencies, diminution in value, judgments, demands, suits, assessments, charges, fines, penalties, or expenses (including reasonable attorneys’ fees and other costs of litigation) (“ Losses ”) actually suffered or incurred by any of them resulting from, related to, or arising out of (i) the breach of any representation or warranty of MPCI, Logistics or Holdings contained in this Agreement, in any Exhibit or Appendix to this Agreement, or in any document, instrument, agreement or certificate delivered under this Agreement; (ii) the breach of any covenant or agreement of MPCI, Logistics or Holdings contained in this Agreement, in any Exhibit or Appendix to

5


this Agreement, or in any document, instrument, agreement or certificate delivered under this Agreement; or (iii) any Pre-Closing Liabilities.

(b) Subject to Section 4.3 , from and after the Closing Date, MPLX GP will indemnify, defend and hold harmless the MPLX Indemnitees from and against any Losses actually suffered or incurred by any of them resulting from, related to, or arising out of (i) the breach of any representation, warranty or covenant of MPLX GP contained in this Agreement, in any Exhibit or Appendix to this Agreement or in any document, instrument, agreement or certificate delivered under this Agreement or (ii) the breach of any covenant or agreement of MPLX GP contained in this Agreement, in any Exhibit or Appendix to this Agreement, or in any document, instrument, agreement or certificate delivered under this Agreement.

(c)      Solely for the purpose of indemnification pursuant to Sections 4.1(a)(i) or 4.1(b)(i) , the representations and warranties of each of MPCI, Logistics, Holdings and MPLX GP in this Agreement shall be deemed to have been made without regard to any materiality or Material Adverse Effect qualifiers.

4.2      Indemnification by MPLX . Subject to Section 4.3 , from and after the Closing Date, MPLX will indemnify, defend and hold harmless MPCI, Logistics, Holdings, MPLX GP, each of their respective Affiliates and each of their respective Affiliates’ directors, members, officers, employees, and representatives (the “ MPCI Indemnitees ”), from and against any Losses actually suffered or incurred by any of them resulting from, related to, or arising out of (i) the breach of any representation, warranty or covenant of MPLX contained in this Agreement, in any Exhibit or Appendix to this Agreement, or in any document, instrument, agreement or certificate delivered under this Agreement, or (ii) any Post-Closing Liabilities.

4.3      Limitations on Indemnities .

(a)      Subject to the limitations and other provisions of this Agreement, the representations and warranties of the Parties hereto contained in this Agreement and the covenants and agreements of the Parties hereto contained herein required to be fully performed on or before the Closing shall survive for a period of two (2) years from the Closing Date, except for (i) the representations and warranties contained in Sections 5.1 , 5.2 , 5.3 , 5.7 , 5.9 , 5.10 , 5.11 , 5.12 , 5.15 , 5.26 , 7.1 , 7.2 , 7.3 , 8.1 , 8.2 , 8.3 , 10.1 , 10.2 , and 10.3 (collectively, the “ Fundamental Representations ”), which shall survive for a period of four (4) years from the Closing Date; (ii) the representations and warranties contained in Section 5.18 (Environmental Matters), which shall survive for a period of six (6) years from the Closing Date; and (iii) the representations and warranties contained in Section 5.19 (Taxes), which shall survive until the date that is sixty (60) days after the expiration of the applicable statutes of limitations (including all periods of extension and tolling). Each covenant and agreement of the Parties in this Agreement which by its terms requires performance after the Closing Date shall survive the Closing and shall remain in full force and effect until such covenant or agreement is fully performed. If a notice of a claim for indemnification under this Article 4 has been timely given in accordance with this Agreement

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prior to the expiration of the applicable survival period for the applicable representation, warranty or covenant, then the applicable representation, warranty or covenant shall survive as to such claim, until such claim has been finally resolved.

(b)      To the extent the MPLX Indemnitees are entitled to indemnification for Losses pursuant to Sections 4.1(a)(i) or 4.1(b)(i) (but not including Losses for breaches of Fundamental Representations or the representations and warranties contained in Section 5.19 ), MPCI, Logistics, Holdings and MPLX GP shall not be liable for those Losses unless the aggregate amount of such Losses exceeds the Deductible, and then only to the extent of any such excess; provided , however , the aggregate liability to the MPLX Indemnitees pursuant to such Sections (but not including Losses for breaches of Fundamental Representations or the representations and warranties contained in Section 5.19 ) shall not exceed the Cap. The maximum aggregate liability of MPCI, Logistics, Holdings and MPLX GP for Losses under Section 4.1 shall be the Total Value.

(c)      NOTWITHSTANDING ANYTHING TO THE CONTRARY CONTAINED IN THIS AGREEMENT, NO PARTY HERETO SHALL BE ENTITLED TO RECOVER FROM ANY OTHER PARTY HERETO ANY AMOUNT IN RESPECT OF EXEMPLARY, PUNITIVE, REMOTE OR SPECULATIVE DAMAGES, EXCEPT, IN EACH CASE, TO THE EXTENT SUCH DAMAGES ARE PAID TO AN UNAFFILIATED THIRD PARTY. ALL RELEASES, DISCLAIMERS, LIMITATIONS ON LIABILITY AND INDEMNITIES IN THIS AGREEMENT, INCLUDING THOSE IN THIS ARTICLE 4, SHALL APPLY EVEN IN THE EVENT OF THE SOLE, JOINT, AND/OR CONCURRENT, ACTIVE OR PASSIVE NEGLIGENCE, STRICT LIABILITY OR FAULT OF THE PARTY WHOSE LIABILITY IS RELEASED, DISCLAIMED, LIMITED OR INDEMNIFIED (EXCLUDING GROSS NEGLIGENCE OR WILLFUL MISCONDUCT).

4.4      Indemnification Procedures . A MPCI Indemnitee or MPLX Indemnitee, as the case may be (for purposes of this Section 4.4 , an “ Indemnified Party ”), shall give the indemnifying party under Section 4.1 or Section 4.2 , as applicable (for purposes of this Section 4.4 , an “ Indemnifying Party ”), prompt written notice of any matter which it has determined has given or could give rise to a right of indemnification under this Agreement that does not involve a third party, stating the amount of the Loss, if known, and method of computation thereof, containing a reference to the provisions of this Agreement in respect of which such right of indemnification is claimed or arises; provided , however , that the failure to provide such notice shall not release the Indemnifying Party from its obligations under this Article 4 except to the extent the Indemnifying Party is prejudiced by such failure; provided, further, that any MPLX Indemnitee may give notice of any claim for indemnification under this Article 4 solely to MPCI, as representative of Logistics, Holdings and/or MPLX GP. With respect to a claim for indemnification involving a claim by a third party, the procedures with respect to indemnification shall be governed by the terms of Exhibit 1 .

4.5      Tax Indemnification . With the exception of a breach or inaccuracy of the representations and warranties of MPCI contained in Section 5.19 , nothing in this Article 4 shall

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apply to liability with respect to Taxes, the liability with respect to which shall be as set forth in Sections 12.2 , 12.3 , 12.4 and 12.5 .

4.6      Additional Matters . The representations, warranties and covenants of an Indemnifying Party, and an Indemnified Party’s right to indemnification with respect thereto, shall not be affected or deemed waived by reason of any investigation made by or on behalf of such Indemnified Party or by reason of the fact that such Indemnified Party or any of its Affiliates, advisors or representatives knew or should have known that any such representation or warranty is, was or might be inaccurate.

ARTICLE 5
REPRESENTATIONS AND WARRANTIES OF MPCI

MPCI represents and warrants as of the date hereof and as of the Closing Date as follows:

5.1      MPCI Membership Interests . Immediately before the Effective Time, MPCI will own (or have owned, as applicable) the Membership Interests free and clear of all Liens (other than restrictions (including restrictions on transfer), if any, imposed by the LLC Agreements or applicable federal securities law) and will contribute (or have contributed, as applicable) all right, title and interest in and to the Logistics Membership Interests, the Holdings Membership Interests and the MPLX GP Membership Interests to Logistics, Holdings and MPLX GP, respectively, free and clear of all such Liens as contemplated by Sections 2.1 , 2.2 and 2.3, respectively. The Membership Interests are validly issued, fully paid, and non-assessable. MPCI is not in breach or default under the terms of the LLC Agreements.

5.2      Organization of MPCI . MPCI is a limited liability company duly organized, validly existing and in good standing under the laws of the State of Delaware and is qualified to conduct business in each jurisdiction where the nature of its business or the ownership of its properties require it to be qualified, except where the failure to be so qualified would not constitute a Material Adverse Effect.

5.3      Authority and Action . MPCI has the limited liability company power and authority to enter into this Agreement and to perform all of its obligations and consummate the transactions contemplated hereby. MPCI has taken all necessary and appropriate limited liability company actions to authorize, execute and deliver this Agreement and to consummate the transactions contemplated hereby. This Agreement has been duly and validly executed and delivered by MPCI and this Agreement is, and each agreement and instrument to be executed and delivered by MPCI pursuant hereto will be when so executed and delivered, a valid and binding obligation of MPCI enforceable in accordance with its terms, except as such enforcement may be limited by applicable bankruptcy, insolvency, moratorium or similar laws affecting the rights of creditors generally and by general principles of equity.

5.4      Consents .


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(a)      No consent, approval, license, permit, order, waiver, or authorization of, or registration, declaration, or filing with, any Governmental Authority or other person or entity is required to be obtained or made by or with respect to Hardin, the Hardin Assets or the Hardin Business in connection with: (i) the execution, delivery, and performance of this Agreement (or any related instrument or agreement), or the consummation of the transactions contemplated hereby and thereby; (ii) the enforcement against MPCI, Logistics, Holdings or MPLX GP of their obligations hereunder and thereunder; or (iii) following the Closing, the ownership and operation of the Hardin Assets or the conduct of the Hardin Business; except, in each case, as would not, individually or in the aggregate, constitute a Material Adverse Effect or as required under the HSR Act.

(b)      No consent, approval, license, permit, order, waiver, or authorization of, or registration, declaration, or filing with, any Governmental Authority or other person or entity is required to be obtained or made by or with respect to Woodhaven, the Woodhaven Assets or the Woodhaven Business in connection with: (i) the execution, delivery, and performance of this Agreement (or any related instrument or agreement), or the consummation of the transactions contemplated hereby and thereby; (ii) the enforcement against MPCI, Logistics, Holdings or MPLX GP of their obligations hereunder and thereunder; or (iii) following the Closing, the ownership and operation of the Woodhaven Assets or the conduct of the Woodhaven Business; except, in each case, as would not, individually or in the aggregate, constitute a Material Adverse Effect or as required under the HSR Act.

(c)      No consent, approval, license, permit, order, waiver, or authorization of, or registration, declaration, or filing with, any Governmental Authority or other person or entity is required to be obtained or made by or with respect to Terminals, the Terminals Assets or the Terminals Business in connection with: (i) the execution, delivery, and performance of this Agreement (or any related instrument or agreement), or the consummation of the transactions contemplated hereby and thereby; (ii) the enforcement against MPCI, Logistics, Holdings or MPLX GP of their obligations hereunder and thereunder; or (iii) following the Closing, the ownership and operation of the Terminals Assets or the conduct of the Terminals Business; except, in each case, as would not, individually or in the aggregate, constitute a Material Adverse Effect or as required under the HSR Act.

5.5      No Violation . The execution and delivery of this Agreement (or any related instrument or agreement) by MPCI does not, and the consummation of the transactions contemplated hereby and the performance by MPCI of the obligations that it is obligated to perform hereunder do not, and at the Closing will not: (i) violate any provision of the organizational documents of MPCI, Hardin, Woodhaven or Terminals; (ii) violate, or result in the violation of or acceleration of, or entitle any party to accelerate any obligation or indebtedness under, or result in the imposition of any Lien upon the Membership Interests pursuant to any Lien, Permit, agreement or other instrument to which MPCI, Hardin, Woodhaven or Terminals is a party, or by which MPCI, Hardin, Woodhaven, Terminals or any of their Affiliates or assets are bound; (iii) contravene or violate any municipal, state or federal ordinance, law, rule, regulation, judgment, order, writ, injunction, or decree in any material respect; or (iv) violate in any material respect the terms of or operate as a default under any Material Contract.

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5.6      Compliance . MPCI’s ownership of the Membership Interests and Hardin’s operation of the Hardin Business, Woodhaven’s operation of the Woodhaven Business and Terminal’s operation of the Terminals Business are and have been in compliance with all applicable federal, state and local laws, rules, regulations and orders except to the extent that the failure to be in compliance would not constitute a Material Adverse Effect; and MPCI has not received notice from any Governmental Authority asserting any act of material non-compliance that has not been resolved.

5.7      Information .

(a)      To the best of MPCI’s knowledge, this Agreement (and all related documents) does not contain any untrue statement of a material fact or omit to state any material fact necessary to make the statements herein not misleading and MPCI has not intentionally withheld disclosure from the Conflicts Committee of any fact that would constitute a Material Adverse Effect.

(b)      The projections and budgets provided to the Conflicts Committee (including those provided to the Financial Advisor) as part of the Conflicts Committee’s review in connection with this Agreement have a reasonable basis, were prepared in good faith and are consistent with MPCI’s (and its applicable Affiliates’) management’s current expectations, which it believes are reasonable. The other financial and operational information provided to the Financial Advisor as part of its review of the proposed transaction for the Conflicts Committee is derived from and is consistent in all material respects with MPCI’s (and its applicable Affiliates’) books and records.

5.8      Claims . There is no suit, action, claim, arbitration, administrative, legal or other proceeding or governmental investigation pending or, to MPCI’s knowledge, threatened against MPCI, Hardin, Woodhaven, or Terminals affecting MPCI’s title to the MPCI Membership Interests or that would otherwise constitute a Material Adverse Effect.

5.9      Brokers . Neither MPCI nor any of its Affiliates has incurred any liability, contingent or otherwise, for any brokerage fee, commission or financial advisory fee in connection with the transactions contemplated by this Agreement for which Hardin, Woodhaven, Terminals, MPLX or any of their respective Affiliates will be liable.

5.10      Organization and Capitalization of Hardin .

(a)      Hardin is a Delaware limited liability company formed on May 22, 2014. Hardin has never owned, and does not own, any assets of any kind or character other than those relating to the ownership and/or operation of the Hardin Business. Hardin has never had, and has no, liabilities or obligations of any kind or character other than those arising out of the ownership and/or operation of the Hardin Business. Hardin is duly organized, validly existing and in good standing under the laws of the State of Delaware and is qualified to

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conduct the Hardin Business in each jurisdiction where the nature of the Hardin Business or the ownership of its properties require it to be qualified.

(b)      Except for the Hardin Membership Interests, all of which are owned by MPCI, none of the following are issued, reserved for issuance, or outstanding:

(i) Equity Interests of Hardin;

(ii)      interests convertible into, or exchangeable or exercisable for Equity Interests of Hardin; or

(iii)      options, warrants, calls, rights, commitments or Contracts to which Hardin is party or by which Hardin is bound, in any case obligating Hardin to issue, deliver, sell, purchase, redeem or acquire, or cause to be issued, delivered, sold, purchased, redeemed or acquired, Equity Interests of Hardin, or obligating Hardin to grant, extend or enter into any such option, warrant, call, right, commitment or Contract.

(c)      The Hardin Membership Interests are duly authorized, validly issued, fully paid (to the extent required by the Hardin LLC Agreement) and, subject to the Laws of the State of Delaware, non-assessable (except as such non-assessability may be affected by Section 18-607 of the Delaware Limited Liability Company Act) and were not issued in violation of any purchase option, call option, right of first refusal, preemptive right or other similar right.

(d)      There are no outstanding bonds, debentures, notes or other instruments or evidence of indebtedness of Hardin having the right to vote (or convertible into, or exercisable or exchangeable for, securities having the right to vote).

(e)      Hardin has no subsidiaries, and owns no Equity Interests in any Person.

5.11      Organization and Capitalization of Woodhaven .

(a)      Woodhaven is a Delaware limited liability company formed on June 13, 2014. Woodhaven has never owned, and does not own, any assets of any kind or character other than those relating to the ownership and/or operation of the Woodhaven Business. Woodhaven has never had, and has no, liabilities or obligations of any kind or character other than those arising out of the ownership and/or operation of the Woodhaven Business. Woodhaven is duly organized, validly existing and in good standing under the laws of the State of Delaware and is qualified to conduct the Woodhaven Business in each jurisdiction where the nature of the Woodhaven Business or the ownership of its properties require it to be qualified.

(b)      Except for the Woodhaven Membership Interests, all of which are owned by MPCI, none of the following are issued, reserved for issuance, or outstanding:

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(i) Equity Interests of Woodhaven;

(ii)      interests convertible into, or exchangeable or exercisable for Equity Interests of Woodhaven; or

(iii)      options, warrants, calls, rights, commitments or Contracts to which Woodhaven is party or by which Woodhaven is bound, in any case obligating Woodhaven to issue, deliver, sell, purchase, redeem or acquire, or cause to be issued, delivered, sold, purchased, redeemed or acquired, Equity Interests of Woodhaven, or obligating Woodhaven to grant, extend or enter into any such option, warrant, call, right, commitment or Contract.

(c)      The Woodhaven Membership Interests are duly authorized, validly issued, fully paid (to the extent required by the Woodhaven LLC Agreement) and, subject to the Laws of the State of Delaware, non-assessable (except as such non-assessability may be affected by Section 18-607 of the Delaware Limited Liability Company Act) and were not issued in violation of any purchase option, call option, right of first refusal, preemptive right or other similar right.

(d)      There are no outstanding bonds, debentures, notes or other instruments or evidence of indebtedness of Woodhaven having the right to vote (or convertible into, or exercisable or exchangeable for, securities having the right to vote).

(e)      Woodhaven has no subsidiaries, and owns no Equity Interests in any Person.

5.12      Organization and Capitalization of Terminals .

(a)      Terminals is a Delaware limited liability company formed on May 22, 2014. Terminals has never owned, and does not own, any assets of any kind or character other than those relating to the ownership and/or operation of the Terminals Business. Terminals has never had, and has no, liabilities or obligations of any kind or character other than those arising out of the ownership and/or operation of the Terminals Business. Terminals is duly organized, validly existing and in good standing under the laws of the State of Delaware and is qualified to conduct the Terminals Business in each jurisdiction where the nature of the Terminals Business or the ownership of its properties require it to be qualified.

(b)      Except for the Terminals Membership Interests, all of which are owned by MPCI, none of the following are issued, reserved for issuance, or outstanding:

(i) Equity Interests of Terminals;

(ii)      interests convertible into, or exchangeable or exercisable for Equity Interests of Terminals; or


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(iii)      options, warrants, calls, rights, commitments or Contracts to which Terminals is party or by which Terminals is bound, in any case obligating Terminals to issue, deliver, sell, purchase, redeem or acquire, or cause to be issued, delivered, sold, purchased, redeemed or acquired, Equity Interests of Terminals, or obligating Terminals to grant, extend or enter into any such option, warrant, call, right, commitment or Contract.

(c)      The Terminals Membership Interests are duly authorized, validly issued, fully paid (to the extent required by the Terminals LLC Agreement) and, subject to the Laws of the State of Delaware, non-assessable (except as such non-assessability may be affected by Section 18-607 of the Delaware Limited Liability Company Act) and were not issued in violation of any purchase option, call option, right of first refusal, preemptive right or other similar right.

(d)      There are no outstanding bonds, debentures, notes or other instruments or evidence of indebtedness of Terminals having the right to vote (or convertible into, or exercisable or exchangeable for, securities having the right to vote).

(e)      Except for the Terminal Subsidiaries, Terminals has no subsidiaries and owns no Equity Interests in any person.

5.13      Compliance .

(a)      To the knowledge of MPCI, the ownership and operation of Hardin and the Hardin Business is and has been in compliance in all material respects with all applicable federal, state and local laws, rules, regulations and orders; and, neither Hardin nor any of its Affiliates have received notice from any Governmental Authority asserting any act of material non-compliance.

(b)      To the knowledge of MPCI, the ownership and operation of Woodhaven and the Woodhaven Business is and has been in compliance in all material respects with all applicable federal, state and local laws, rules, regulations and orders; and, neither Woodhaven nor any of its Affiliates have received notice from any Governmental Authority asserting any act of material non-compliance.

(c)      To the knowledge of MPCI, the ownership and operation of Terminals and the Terminals Business is and has been in compliance in all material respects with all applicable federal, state and local laws, rules, regulations and orders; and, neither Terminals nor any of its Affiliates have received notice from any Governmental Authority asserting any act of material non-compliance.

5.14      Title to Assets .

(a)      Disclosure Schedule 5.14(a) sets forth a true and complete list of the material Hardin Assets other than the Hardin Real Property and the Hardin Material Contracts. Hardin

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has good and marketable title to all tangible personal property included in the Hardin Assets, free and clear of all Liens, except Permitted Liens. All tangible personal property included in the Hardin Assets is (i) in the aggregate, in good operating condition and repair (normal wear and tear excepted); (ii) has been maintained in all material respects in accordance with applicable laws and regulations, as well as generally accepted industry practice; and (iii) is sufficient for the purposes for which it is currently being used or held for use. The Hardin Assets constitute all of the assets related to the ownership, use and operation of the Hardin Business and are sufficient to own and operate the Hardin Business after Closing in the manner the Hardin Business was conducted by Hardin prior to the date hereof.

(b)      Disclosure Schedule 5.14(b) sets forth a true and complete list of the material Woodhaven Assets other than the Woodhaven Real Property and the Woodhaven Material Contracts. Woodhaven has good and marketable title to all tangible personal property included in the Woodhaven Assets, free and clear of all Liens, except Permitted Liens. All tangible personal property included in the Woodhaven Assets is (i) in the aggregate, in good operating condition and repair (normal wear and tear excepted); (ii) has been maintained in all material respects in accordance with applicable laws and regulations, as well as generally accepted industry practice; and (iii) is sufficient for the purposes for which it is currently being used or held for use. The Woodhaven Assets constitute all of the assets related to the ownership, use and operation of the Woodhaven Business and are sufficient to own and operate the Woodhaven Business after Closing in the manner the Woodhaven Business was conducted by Woodhaven prior to the date hereof. The caverns that are part of the Woodhaven Assets (collectively, the “ Woodhaven Caverns ”) are each in good operating condition and repair and have each been maintained in accordance with applicable laws and regulations, as well as generally accepted industry practice. To MPCI’s knowledge, there have not been any events, and there are no circumstances or conditions, that have had, or would reasonably be expected to have, a material adverse effect on the structural integrity of any of the Woodhaven Caverns or any associated equipment or systems.

(c)      Disclosure Schedule 5.14(c) sets forth a true and complete list of the material Terminals Assets other than the Terminals Real Property and the Terminals Material Contracts. Terminals, by itself and through Blanchard has good and marketable title to all tangible personal property included in the Terminals Assets, free and clear of all Liens, except Permitted Liens. Terminals owns the Guilford Equity Interests and the Johnston Equity Interests free and clear of all Liens (other than restrictions, including restrictions on transfer, if any, imposed by the Guilford LLC Agreement, the Johnston LLC Agreement or applicable federal securities laws). All tangible personal property included in the Terminals Assets is (i) in the aggregate, in good operating condition and repair (normal wear and tear excepted); (ii) has been maintained in all material respects in accordance with applicable laws and regulations, as well as generally accepted industry practice; and (iii) is sufficient for the purposes for which it is currently being used or held for use. The Terminals Assets constitute all of the assets related to the ownership, use and operation of the Terminals Business and are sufficient to own and operate the Terminals Business after Closing in the manner the Terminals Business was conducted by Terminals prior to the date hereof.

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5.15      Real Property .

(a)      Disclosure Schedule 5.15(a) sets forth a true and complete list of the Hardin Real Property, including a list of all leases included therein. Except as set forth in Disclosure Schedule 5.15(a) :

(i)      Hardin has good and marketable title to the Hardin Real Property, free and clear of all Liens except for Permitted Liens;

(ii) there are no pending or, to MPCI’s knowledge threatened, condemnation proceedings, lawsuits, or administrative actions relating to any of the Hardin Real Property;

(iii)      Hardin is not obligated under any right of first refusal, option or other contractual right to sell, assign, or otherwise dispose of any of the Hardin Real Property; and

(iv)      no Affiliate of Hardin owns or leases any real property that constitutes part of the Hardin Business.

(b)      Disclosure Schedule 5.15(b) sets forth a true and complete list of the Woodhaven Real Property, including a list of all leases included therein. Except as set forth in Disclosure Schedule 5.15(b) :

(i)      Woodhaven has good and marketable title to the Woodhaven Real Property, free and clear of all Liens except for Permitted Liens;

(ii)      there are no pending or, to MPCI’s knowledge threatened, condemnation proceedings, lawsuits, or administrative actions relating to any of the Woodhaven Real Property;

(iii)      Woodhaven is not obligated under any right of first refusal, option or other contractual right to sell, assign, or otherwise dispose of any of the Woodhaven Real Property; and

(iv)      no Affiliate of Woodhaven owns or leases any real property that constitutes part of the Woodhaven Business.

(c)      Disclosure Schedule 5.15(c) sets forth a true and complete list of the Terminals Real Property, including a list of all leases included therein. Except as set forth in Disclosure Schedule 5.15(c) :

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(i)      Terminals has good and marketable title to the Terminals Real Property, free and clear of all Liens except for Permitted Liens;

(ii)      there are no pending or, to MPCI’s knowledge threatened, condemnation proceedings, lawsuits, or administrative actions relating to any of the Terminals Real Property;

(iii)      Terminals is not obligated under any right of first refusal, option or other contractual right to sell, assign, or otherwise dispose of any of the Terminals Real Property; and

(iv)      no Affiliate of Terminals, other than the Terminals Subsidiaries, owns or leases any real property that constitutes part of the Terminals Business.

5.16      Litigation .

(a)      There are no actions, suits, claims, arbitrations, enforcement actions or proceedings pending or, to MPCI’s knowledge, threatened by or before any arbitrator or Governmental Authority, with respect to Hardin, the Hardin Assets, or the Hardin Business which would have a Material Adverse Effect or otherwise be material to the Hardin Business or the ownership and operation of the Hardin Assets taken as a whole.

(b) There are no actions, suits, claims, arbitrations, enforcement actions, or proceedings pending or, to MPCI’s knowledge, threatened by or before any arbitrator or Governmental Authority, with respect to Woodhaven, the Woodhaven Assets, or the Woodhaven Business which would have a Material Adverse Effect or otherwise be material to the Woodhaven Business or the ownership and operation of the Woodhaven Assets taken as a whole.

(c)      There are no actions, suits, claims, arbitrations, enforcement actions, or proceedings pending or, to MPCI’s knowledge, threatened by or before any arbitrator or Governmental Authority, with respect to Terminals, the Terminals Assets, or the Terminals Business which would have a Material Adverse Effect or otherwise be material to the Terminals Business or the ownership and operation of the Terminals Assets taken as a whole.

5.17      Permits .

(a)      Hardin possesses all Permits required by law, necessary for the conduct of the Hardin Business and the ownership and operation of the Hardin Assets in the manner currently conducted by Hardin, except where the failure to possess such Permits would not be material to the conduct of the Hardin Business or the ownership and operation of the Hardin Assets taken as a whole; and there are no unresolved notices of violation with respect to any such Permit and each such Permit is valid, binding and in full force and effect.


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(b)      Woodhaven possesses all Permits required by law, necessary for the conduct of the Woodhaven Business and the ownership and operation of the Woodhaven Assets in the manner currently conducted by Woodhaven, except where the failure to possess such Permits would not be material to the conduct of the Woodhaven Business or the ownership and operation of the Woodhaven Assets taken as a whole; and there are no unresolved notices of violation with respect to any such Permit and each such Permit is valid, binding and in full force and effect.

(c)      Terminals possesses all Permits required by law, necessary for the conduct of the Terminals Business and the ownership and operation of the Terminals Assets in the manner currently conducted by Terminals, except where the failure to possess such Permits would not be material to the conduct of the Terminals Business or the ownership and operation of the Terminals Assets taken as a whole; and there are no unresolved notices of violation with respect to any such Permit and each such Permit is valid, binding and in full force and effect.

5.18      Environmental Matters .

(a)      There are no environmental remediation activities currently underway at any of the Real Property that would constitute a Material Adverse Effect.

(b)      No Environmental Condition exists that has given or reasonably would be expected to give rise to any claims, notices of violation, litigation, stop orders, or demands by any Person or Governmental Authority based on any claim of Release or threatened Release of Hazardous Substances into the environment or the threat of injury or damage to human health or the environment from any of the Assets or from any former assets owned or operated by Hardin, Woodhaven or Terminals that would constitute a Material Adverse Effect.

(c)      None of Hardin, Woodhaven or Terminals nor any of their Affiliates have, in the last three (3) years prior to the date of this Agreement, received any notice that it is in violation of (or has any potential liability under) any Environmental Law or Permit that is applicable to the conduct of the Businesses or the ownership or operation of the Assets other than such notices where the subject matter of the notice has been finally resolved to the satisfaction of the Governmental Authority issuing such notice and for which none has any further material obligations outstanding.

(d)      Hardin, Woodhaven and Terminals are, and since January 1, 2014 each of the Businesses have been, in compliance with all applicable Environmental Laws, except for failures to comply with such Environmental Laws that did not and do not constitute a Material Adverse Effect, including timely possessing and complying with the terms and conditions of all environmental Permits, except for failure to timely possess or comply with the terms and conditions of all such environmental Permits which did not and do not constitute a Material Adverse Effect; and there are no unresolved notices of violation with respect to any such Permits and each such Permit is valid, binding and in full force and effect.

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(e)      There has been no Release, discharge, disposal, handling, use, storage, or transportation of Hazardous Substances on or from any Real Property by or on behalf of Hardin, Woodhaven or Terminals related to the assets used in the Businesses in violation of any Environmental Laws in a manner that constitutes, individually or in the aggregate, a Material Adverse Effect.

(f)      None of Hardin, Woodhaven or Terminals nor any of their predecessors has, either expressly or by operation of law, assumed or undertaken any material liability, including any obligation for corrective or remedial action, of any other Person relating to Environmental Laws.

5.19      Taxes .

(a)      All material Tax Returns that are required to be filed by or with respect to Hardin, Woodhaven and Terminals or the Assets on or prior to the Closing Date (taking into account any valid extension of time within which to file) have been or will be timely filed on or prior to the Closing Date and all such Tax Returns are or will be true, correct and complete in all material respects.

(b)      All material Taxes due and payable by or with respect to the Businesses or the Assets (whether or not shown on any Tax Return) have been fully paid, and all deficiencies asserted or assessments made with respect to such Tax Returns have been paid in full or properly accrued. All material withholding Taxes imposed on Hardin, Woodhaven or Terminals have been paid. There are no material Liens (other than Permitted Liens) on any of the Assets that arose in connection with any failure (or alleged failure) to pay any Tax.

(c)      No Tax Proceeding of or with respect to Hardin, Woodhaven or Terminals or the Assets is currently pending or has been proposed in writing or has been threatened that constitutes a Material Adverse Effect.

(d)      No waivers or extensions of statutes of limitations have been given or requested in writing with respect to any amount of Taxes of or with respect to Hardin, Woodhaven or Terminals or the Assets or any Tax Returns of or with respect to Hardin, Woodhaven or Terminals or the Assets.

(e)      Since the date of its formation, for U.S. federal income Tax purposes, each of Hardin, Woodhaven and Terminals has been classified as an entity that is disregarded as being separate from its owner.

(f)      None of Hardin, Woodhaven or Terminals is a party to a Tax allocation or sharing agreement or similar arrangement.

5.20      Hardin/Woodhaven Financial Statements .

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(a)      MPCI has made available to MPLX the audited combined balance sheets as of December 31, 2016 and 2015, and combined statements of income, cash flows and equity for the years ended December 31, 2016 and 2015, with respect to the Hardin Business and the Hardin Assets, and the Woodhaven Business and Woodhaven Assets (collectively, the “ Hardin/Woodhaven Combined Financial Statements ”).

(b) The Hardin/Woodhaven Combined Financial Statements have been prepared from the books and records of MPCI and its subsidiaries in accordance with U.S. generally accepted accounting principles applied on a consistent basis throughout the periods covered thereby.

(c)      Hardin and Woodhaven have no liabilities (whether accrued or fixed, absolute or contingent, matured or unmatured, determined or determinable or otherwise), other than (i) liabilities set forth in the Hardin/Woodhaven Combined Financial Statements; (ii) liabilities that would not be required under GAAP to be disclosed, reflected, reserved against or otherwise provided for in the Hardin/Woodhaven Combined Financial Statements; (iii) liabilities, other than indebtedness for borrowed money (or guarantees thereof), incurred in the ordinary course of business consistent with past practice since December 31, 2016; and (iv) undisclosed liabilities, other than indebtedness for borrowed money (or guarantees thereof), which individually or in the aggregate, are immaterial. Hardin and Woodhaven have not incurred any indebtedness for borrowed money (or guarantees thereof) since December 31, 2016.

5.21      [Intentionally Left Blank]


5.22      Terminals Financial Statements .

(a)      MPCI has made available to MPLX the audited balance sheet as of December 31, 2016, and consolidated statements of income, cash flows and equity for the nine months ended December 31, 2016, with respect to the Terminals Business and the Terminals Assets (collectively, the “ Terminals Financial Statements ”).

(b)      The Terminals Financial Statements have been prepared from the books and records of MPCI and its subsidiaries in accordance with U.S. generally accepted accounting principles applied on a consistent basis throughout the periods covered thereby.

(c)      Terminals has no liabilities (whether accrued or fixed, absolute or contingent, matured or unmatured, determined or determinable or otherwise), other than (i) liabilities set forth in the Terminals Financial Statements; (ii) liabilities that would not be required under GAAP to be disclosed, reflected, reserved against or otherwise provided for in the Terminals Financial Statements; (iii) liabilities, other than indebtedness for borrowed money (or guarantees thereof), incurred in the ordinary course of business consistent with past practice since December 31, 2016; and (iv) undisclosed liabilities, other than indebtedness

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for borrowed money (or guarantees thereof), which individually or in the aggregate, are immaterial. Terminals has not incurred any indebtedness for borrowed money (or guarantees thereof) since December 31, 2016.

5.23      Material Contracts .

(a)      Disclosure Schedule 5.23(a) sets forth a true and complete listing of the Hardin Material Contracts. Each Hardin Material Contract is in full force and effect, and neither Hardin nor, to the knowledge of MPCI, any other party thereto, is in breach or default thereunder and no event has occurred that upon receipt of notice or lapse of time or both would constitute any breach or default thereunder, except for such breaches or defaults as would not, individually or in the aggregate, constitute a Material Adverse Effect. Neither Hardin nor any of its Affiliates has given or received from MPCI or any of its Affiliates or any third party any notice of any action or intent to terminate or amend in any material respect any Hardin Material Contract.

(b)      Disclosure Schedule 5.23(b) sets forth a true and complete listing of the Woodhaven Material Contracts. Each Woodhaven Material Contract is in full force and effect, and neither Woodhaven nor, to the knowledge of MPCI, any other party thereto, is in breach or default thereunder and no event has occurred that upon receipt of notice or lapse of time or both would constitute any breach or default thereunder, except for such breaches or defaults as would not, individually or in the aggregate, constitute a Material Adverse Effect. Neither Woodhaven nor any of its Affiliates has given or received from MPCI or any of its Affiliates or any third party any notice of any action or intent to terminate or amend in any material respect any Woodhaven Material Contract.

(c)      Disclosure Schedule 5.23(c) sets forth a true and complete listing of the Terminals Material Contracts. Each Terminals Material Contract is in full force and effect, and neither Terminals nor, to the knowledge of MPCI, any other party thereto, is in breach or default thereunder, and no event has occurred that upon receipt of notice or lapse of time or both would constitute any breach or default thereunder, except for such breaches or defaults as would not, individually or in the aggregate, constitute a Material Adverse Effect. Neither Terminals nor any of its Affiliates has given or received from MPCI or any of its Affiliates or any third party any notice of any action or intent to terminate or amend in any material respect any Terminals Material Contract.

5.24      No Adverse Changes. Except for any actions taken by Hardin, Woodhaven or Terminals contemplated by this Agreement or as described in the Financial Statements, from December 31, 2015, (a) each of Hardin, Woodhaven and Terminals has in all material respects (i) conducted the Businesses in the ordinary course consistent with past practices and (ii) used Commercially Reasonable Efforts to preserve intact its material relationships with third parties with regard to the Businesses; (b) no fact, event, change, occurrence, development or circumstance has occurred that has had or would reasonably be expected to constitute, individually or in the aggregate, a Material Adverse Effect; (c) there has not been any material damage or destruction

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to any material portion of the Assets other than damage or destruction that has been repaired; and (d):

(i)      the organizational documents of Hardin, Woodhaven and Terminals have not been modified in any manner;
(ii)      except in the ordinary course consistent with past practices, Hardin, Woodhaven and Terminals have not sold, transferred or disposed of any assets used in the Businesses, including any right under any lease or Contract or any proprietary right or other intangible asset;
(iii)      Hardin, Woodhaven and Terminals have not waived, released, canceled, settled or compromised any debt, claim or right relating to the Businesses;
(iv)      Hardin, Woodhaven and Terminals have not changed any accounting method or practice relating to the Businesses in a manner that is inconsistent with past practice in a way that would materially and adversely affect the Businesses and/or Hardin, Woodhaven or Terminals;
(v)      Hardin, Woodhaven and Terminals have not failed to maintain their limited liability company existence and have not consolidated with any other Person or acquired all or substantially all of the Assets of any other Person;
(vi)      Hardin, Woodhaven and Terminals have not liquidated, dissolved, recapitalized, reorganized or otherwise wound up itself or the Businesses;
(vii)      Hardin, Woodhaven and Terminals have not purchased any securities of any Person, except for short-term investments made in the ordinary course of business; and
(viii)      Hardin, Woodhaven and Terminals have not agreed or committed to do any of the foregoing.

5.25      Employees; Plans .

(a)      Hardin does not have, and has never had, any employees, independent contractors, or consultants. Hardin does not currently and has never maintained or contributed to any Plan or been a participating employer in any Plan. Hardin has no liability, contingent or otherwise, with respect to any Plan.

(b)      Woodhaven does not have, and has never had, any employees, independent contractors, or consultants. Woodhaven does not currently and has never maintained or contributed to any Plan or been a participating employer in any Plan. Woodhaven has no liability, contingent or otherwise, with respect to any Plan.


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(c)      Terminals does not have, and has never had, any employees, independent contractors, or consultants. Terminals does not currently and has never maintained or contributed to any Plan or been a participating employer in any Plan. Terminals has no liability, contingent or otherwise, with respect to any Plan.



5.26      Working Capital .

(a)      Except for the distribution and payments set forth in Section 11.1 , since January 1, 2016, Hardin has collected, paid and otherwise maintained the Current Assets, Current Liabilities and the net balance of both in the ordinary course and in a manner and amounts consistent with past practices.

(b)      Except for the distribution and payments set forth in Section 11.1 , since January 1, 2016, Woodhaven has collected, paid and otherwise maintained the Current Assets, Current Liabilities and the net balance of both in the ordinary course and in a manner and amounts consistent with past practices.

(c)      Except for the distribution and payments set forth in Section 11.1 , since April 1, 2016, Terminals has collected, paid and otherwise maintained the Current Assets, Current Liabilities and the net balance of both in the ordinary course and in a manner and amounts consistent with past practices.

5.27      Capital Projects; Purchase Orders; Pending Acquisitions or Dispositions . Disclosure Schedule 5.27 sets forth (a) a true and complete list and description of all material capital projects related to the Assets and/or the Businesses that are in progress as of the date hereof and a good faith estimate as of the date hereof of the associated costs on a project by project basis; (b) a true and complete list as of the date hereof of all outstanding orders for the purchase of goods or services by or on behalf of Hardin, Woodhaven or Terminals in an amount in excess of $100,000; (c) a true and complete list as of the date hereof of all pending or contemplated purchases or acquisitions of any material assets or businesses, or any Equity Interest in, any Person, by or on behalf of Hardin, Woodhaven or Terminals; and (d) a true and complete list as of the date hereof of all pending or contemplated sales, leases, exchanges or other dispositions of any material assets by or on behalf of Hardin, Woodhaven or Terminals.
5.28      Insurance Matters . Each of Hardin, Woodhaven and Terminals carry or are entitled to the benefits of, and after the Closing, will carry or be entitled to the benefit of insurance, with financially sound and reputable insurers, in such amounts and covering such risks as is available on commercially reasonable terms and generally maintained by companies engaged in the same or similar business and owning similar properties in the same general areas and in similar stages of development or operation, as applicable. All such insurance policies carried by or maintained for the benefit of Hardin, Woodhaven or Terminals (the “ Insurance Policies ”) are (and, at Closing, will be) in full force and effect, all premiums in respect of such insurance have been paid in full

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when and as due and there is no material claim by or on behalf of MPCI, Hardin, Woodhaven, Terminals or any of their respective Affiliates pending under any such policies as to which coverage has been denied or disputed by the underwriters of such policies. No notice of cancellation or non-renewal of any Insurance Policy, or any material changes that are required in the conduct of the Businesses as a condition to the continuation of coverage under or renewal of any such Insurance Policy, has been received by MPCI, Hardin, Woodhaven, Terminals or any of their respective Affiliates.
5.29      Disclaimer of Warranties . Except as expressly set forth in this Article 5 , MPCI makes no representations or warranties whatsoever and disclaims all liability and responsibility for any other representation, warranty, statement or information made or communicated (orally or in writing), including, without limitation, any opinion, information or advice that may have been provided by any officer, shareholder, director, employee, agent or consultant of MPCI or its Affiliates. EXCEPT AS SPECIFICALLY REPRESENTED AND WARRANTED IN THIS ARTICLE 5 , THE CONTRIBUTION OF THE MEMBERSHIP INTERESTS IS ON AN “AS IS” BASIS, AND MPCI DISCLAIMS ANY WARRANTY OF MERCHANTABILITY AND ANY WARRANTY OF FITNESS FOR A PARTICULAR PURPOSE.

ARTICLE 6
[Intentionally Left Blank]


ARTICLE 7
REPRESENTATIONS AND WARRANTIES OF LOGISTICS

Logistics represents and warrants as of the date hereof and as of the Closing Date as follows:

7.1      Logistics Membership Interests . Immediately before its contribution of such interests to MPLX, Logistics will own the Logistics Membership Interests free and clear of all Liens. As of the Effective Time, the Logistics Membership Interests will be validly issued, fully paid, and non-assessable.

7.2      Organization . Logistics is a limited liability company duly organized, validly existing and in good standing under the laws of the State of Delaware and is qualified to do business in each jurisdiction where the nature of its business or the ownership of its properties requires it to be qualified, except to the extent that the failure to be so qualified would not have a Material Adverse Effect. Logistics has the limited liability company power to conduct its business as presently conducted and to own and hold the properties used in connection therewith.

7.3      Authority and Action . Logistics has the limited liability company power and authority to enter into this Agreement and to perform all of its obligations and consummate the transactions contemplated hereby. Logistics has taken all necessary and appropriate limited liability company actions to authorize, execute and deliver this Agreement and to consummate the transactions contemplated hereby. This Agreement has been duly and validly executed and

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delivered by Logistics and constitutes a valid and binding obligation of Logistics, enforceable in accordance with its terms, except as such enforcement may be limited by applicable bankruptcy, insolvency, moratorium or similar laws affecting the rights of creditors generally and by general principles of equity.

7.4      No Violation . The execution and delivery of this Agreement (or any related instrument) by Logistics does not, and the consummation of the transactions contemplated hereby and the performance by Logistics of the obligations that it is obligated to perform hereunder do not, and at the Closing will not: (a) violate any provision of the limited liability company agreement of Logistics; (b) violate, or result in the violation of or acceleration of, or entitle any party to accelerate any obligation or indebtedness under, or result in the imposition of any Lien upon the Logistics Membership Interests pursuant to, any Lien, Permit, agreement or other instrument to which Logistics is a party, or by which Logistics is bound; or (c) contravene or violate any municipal, state or federal ordinance, law, rule, regulation, judgment, order, writ, injunction, or decree in any material respect.

7.5      Common Units .

(a)      Logistics understands that the Common Units to be issued to it pursuant to this Agreement have not been registered under the 1933 Act, or under any applicable state securities laws, and neither MPLX nor any of its Affiliates has any obligation to register the Common Units under the 1933 Act or to register or qualify the offer or sale of the Common Units with any state on the basis that the offering is exempt from registration under the 1933 Act and the rules and regulations promulgated thereunder. Logistics further acknowledges that the Common Units cannot be sold, assigned, or otherwise transferred unless subsequently registered under the 1933 Act and under applicable state securities laws or if an exemption from registration or qualification is then available. As such, Logistics further agrees that it will not sell, assign, or transfer any Common Units unless such Common Units are registered under the 1933 Act and qualified under applicable state securities laws or if an exemption from such registration or qualification is then available in the reasonable opinion of counsel to Logistics. Logistics understands that there may not be a public market for the Common Units and represents that it can afford to hold such Common Units for an indefinite period of time.

(b)      Logistics is acquiring the Common Units as contemplated herein for its own account and for its purposes only, with no intention of assigning any participation or interest therein, and not with a view to, or in connection with, making a distribution thereof in violation of federal or state securities laws.

7.6      Disclaimer of Warranties . Except as expressly set forth in this Article 7 , Logistics makes no representations or warranties whatsoever and disclaims all liability and responsibility for any other representation, warranty, statement or information made or communicated (orally or in writing), including, without limitation, any opinion, information or advice that may have been provided by any officer, shareholder, director, employee, agent or consultant of Logistics, or its Affiliates.

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ARTICLE 8
REPRESENTATIONS AND WARRANTIES OF HOLDINGS

Holdings represents and warrants as of the date hereof and as of the Closing Date as follows:

8.1      Holdings Membership Interests . Immediately before its contribution of such interests to MPLX, Holdings will own the Holdings Membership Interests free and clear of all Liens. As of the Effective Time, the Holdings Membership Interests will be validly issued, fully paid, and non-assessable.

8.2      Organization . Holdings is a corporation duly organized, validly existing and in good standing under the laws of the State of Delaware and is qualified to do business in each jurisdiction where the nature of its business or the ownership of its properties requires it to be qualified, except to the extent that the failure to be so qualified would not have a Material Adverse Effect. Holdings has the corporate power to conduct its business as presently conducted and to own and hold the properties used in connection therewith.

8.3      Authority and Action . Holdings has the corporate power and authority to enter into this Agreement and to perform all of its obligations and consummate the transactions contemplated hereby. Holdings has taken all necessary and appropriate corporate actions to authorize, execute and deliver this Agreement and to consummate the transactions contemplated hereby. This Agreement has been duly and validly executed and delivered by Holdings and constitutes a valid and binding obligation of Holdings, enforceable in accordance with its terms, except as such enforcement may be limited by applicable bankruptcy, insolvency, moratorium or similar laws affecting the rights of creditors generally and by general principles of equity.

8.4      No Violation . The execution and delivery of this Agreement (or any related instrument) by Holdings does not, and the consummation of the transactions contemplated hereby and the performance by Holdings of the obligations that it is obligated to perform hereunder do not, and at the Closing will not: (a) violate any provision of the Certificate of Incorporation of Holdings; (b) violate, or result in the violation of or acceleration of, or entitle any party to accelerate any obligation or indebtedness under, or result in the imposition of any Lien upon the Holdings Membership Interests pursuant to, any Lien, Permit, agreement or other instrument to which Holdings is a party, or by which Holdings is bound; or (c) contravene or violate any municipal, state or federal ordinance, law, rule, regulation, judgment, order, writ, injunction, or decree in any material respect.

8.5      Common Units .

(a)      Holdings understands that the Common Units to be issued to it pursuant to this Agreement have not been registered under the 1933 Act, or under any applicable state securities laws, and neither MPLX nor any of its Affiliates has any obligation to register the Common Units under the 1933 Act or to register or qualify the offer or sale of the Common

25


Units with any state on the basis that the offering is exempt from registration under the 1933 Act and the rules and regulations promulgated thereunder. Holdings further acknowledges that the Common Units cannot be sold, assigned, or otherwise transferred unless subsequently registered under the 1933 Act and under applicable state securities laws or if an exemption from registration or qualification is then available. As such, Holdings further agrees that it will not sell, assign, or transfer any Common Units unless such Common Units are registered under the 1933 Act and qualified under applicable state securities laws or if an exemption from such registration or qualification is then available in the reasonable opinion of counsel to Holdings. Holdings understands that there may not be a public market for the Common Units and represents that it can afford to hold such Common Units for an indefinite period of time.

(b)      Holdings is acquiring the Common Units as contemplated herein for its own account and for its purposes only, with no intention of assigning any participation or interest therein, and not with a view to, or in connection with, making a distribution thereof in violation of federal or state securities laws.

8.6      Disclaimer of Warranties . Except as expressly set forth in this Article 8 , Holdings makes no representations or warranties whatsoever and disclaims all liability and responsibility for any other representation, warranty, statement or information made or communicated (orally or in writing), including, without limitation, any opinion, information or advice that may have been provided by any officer, shareholder, director, employee, agent or consultant of Holdings, or its Affiliates.


ARTICLE 9
REPRESENTATIONS AND WARRANTIES OF MPLX

MPLX represents and warrants as of the date hereof and as of the Closing Date as follows:

9.1      Issued Units . The issuance of the Issued Units pursuant to this Agreement have been duly authorized and approved by all necessary limited partnership actions, and the Issued Units, when issued, will be validly issued, fully paid and non-assessable.

9.2      Organization . MPLX is a limited partnership duly organized, validly existing and in good standing under the laws of the State of Delaware and is qualified to do business in each jurisdiction where the nature of its business or the ownership of its properties requires it to be qualified, except to the extent that the failure to be so qualified would not have a Material Adverse Effect. MPLX has the limited partnership power to conduct its business as presently conducted and to own and hold the properties used in connection therewith.

9.3      Authority and Action . MPLX has the limited partnership power and authority to enter into this Agreement and to perform all of its obligations and consummate the transactions contemplated hereby. MPLX has taken all necessary and appropriate limited partnership actions

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to authorize, execute and deliver this Agreement and to consummate the transactions contemplated hereby. This Agreement has been duly and validly executed and delivered by MPLX and constitutes a valid and binding obligation of MPLX, enforceable in accordance with its terms, except as such enforcement may be limited by applicable bankruptcy, insolvency, moratorium or similar laws affecting the rights of creditors generally and by general principles of equity.

9.4      No Violation . The execution and delivery of this Agreement (or any related instrument) by MPLX does not, and the consummation of the transactions contemplated hereby and the performance by MPLX of the obligations that it is obligated to perform hereunder do not, and at the Closing will not: (a) violate any provision of the MPLX Partnership Agreement; or (b) contravene or violate any municipal, state or federal ordinance, law, rule, regulation, judgment, order, writ, injunction, or decree in any material respect.

9.5      Logistics Membership Interests .

(a)      MPLX understands that the Logistics Membership Interests to be contributed pursuant to this Agreement have not been registered under the 1933 Act, or under any applicable state securities laws, and Logistics has no obligation to register the Logistics Membership Interests under the 1933 Act or to register or qualify the offer or sale of the Logistics Membership Interests with any state on the basis that the offering is exempt from registration under the 1933 Act and the rules and regulations promulgated thereunder. MPLX further acknowledges that the Logistics Membership Interests cannot be sold, assigned, or otherwise transferred unless subsequently registered under the 1933 Act and under applicable state securities laws or if an exemption from registration or qualification is then available. As such, MPLX further agrees that it will not sell, assign, or transfer any Logistics Membership Interests unless such Logistics Membership Interests are registered under the 1933 Act and qualified under applicable state securities laws or if an exemption from such registration or qualification is then available in the reasonable opinion of counsel to MPLX. MPLX understands that there is not, nor is there likely to be, a public market for the Logistics Membership Interests and represents that it can afford to hold such Logistics Membership Interests for an indefinite period of time.

(b)      MPLX is acquiring the Logistics Membership Interests as contemplated herein for its own account and for its purposes only, with no intention of assigning any participation or interest therein, and not with a view to, or in connection with, making a distribution thereof in violation of federal or state securities laws.

9.6      Holdings Membership Interests .

(a)      MPLX understands that the Holdings Membership Interests to be contributed pursuant to this Agreement have not been registered under the 1933 Act, or under any applicable state securities laws, and Holdings has no obligation to register the Holdings Membership Interests under the 1933 Act or to register or qualify the offer or sale of the Holdings Membership Interests with any state on the basis that the offering is exempt from registration under the 1933 Act and the rules and regulations promulgated thereunder. MPLX

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further acknowledges that the Holdings Membership Interests cannot be sold, assigned, or otherwise transferred unless subsequently registered under the 1933 Act and under applicable state securities laws or if an exemption from registration or qualification is then available. As such, MPLX further agrees that it will not sell, assign, or transfer any Holdings Membership Interests unless such Holdings Membership Interests are registered under the 1933 Act and qualified under applicable state securities laws or if an exemption from such registration or qualification is then available in the reasonable opinion of counsel to MPLX. MPLX understands that there is not, nor is there likely to be, a public market for the Holdings Membership Interests and represents that it can afford to hold such Holdings Membership Interests for an indefinite period of time.

(b)      MPLX is acquiring the Holdings Membership Interests as contemplated herein for its own account and for its purposes only, with no intention of assigning any participation or interest therein, and not with a view to, or in connection with, making a distribution thereof in violation of federal or state securities laws.

9.7      MPLX GP Membership Interests .

(a)      MPLX understands that the MPLX GP Membership Interests to be contributed pursuant to this Agreement have not been registered under the 1933 Act, or under any applicable state securities laws, and MPLX GP has no obligation to register the MPLX GP Membership Interests under the 1933 Act or to register or qualify the offer or sale of the MPLX GP Membership Interests with any state on the basis that the offering is exempt from registration under the 1933 Act and the rules and regulations promulgated thereunder. MPLX further acknowledges that the MPLX GP Membership Interests cannot be sold, assigned, or otherwise transferred unless subsequently registered under the 1933 Act and under applicable state securities laws or if an exemption from registration or qualification is then available. As such, MPLX further agrees that it will not sell, assign or transfer any MPLX GP Membership Interests unless such MPLX GP Membership Interests are registered under the 1933 Act and qualified under applicable state securities laws or if an exemption from such registration or qualification is then available in the reasonable opinion of counsel to MPLX. MPLX understands that there is not, nor is there likely to be, a public market for the MPLX GP Membership Interests and represents that it can afford to hold such MPLX GP Membership Interests for an indefinite period of time.

(b)      MPLX is acquiring the MPLX GP Membership Interests as contemplated herein for its own account and for its purposes only, with no intention of assigning any participation or interest therein, and not with a view to, or in connection with, making a distribution thereof in violation of federal or state securities laws.

9.8      Disclaimer of Warranties . Except as expressly set forth in this Article 9 , MPLX makes no representations or warranties whatsoever and disclaims all liability and responsibility for any other representation, warranty, statement or information made or communicated (orally or in writing), including, without limitation, any opinion, information or advice that may have been

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provided by any officer, shareholder, director, employee, agent or consultant of MPLX, or its Affiliates.


ARTICLE 10
REPRESENTATIONS AND WARRANTIES OF MPLX GP

MPLX GP represents and warrants as of the date hereof and as of the Effective Time as follows:

10.1      MPLX GP Membership Interests . As of the Closing, MPLX GP will own the MPLX GP Membership Interests free and clear of all Liens. As of the Closing, the MPLX GP Membership Interests will be validly issued, fully paid, and non-assessable.

10.2      Organization . MPLX GP is a limited liability company duly organized, validly existing and in good standing under the laws of the State of Delaware and is qualified to do business in each jurisdiction where the nature of its business or the ownership of its properties requires it to be qualified, except to the extent that the failure to be so qualified would not have a Material Adverse Effect. MPLX GP has the limited liability company power to conduct its business as presently conducted and to own and hold the properties used in connection therewith.

10.3      Authority and Action . MPLX GP has the limited liability company power and authority to enter into this Agreement and to perform all of its obligations and consummate the transactions contemplated hereby. MPLX GP has taken all necessary and appropriate limited liability company actions to authorize, execute and deliver this Agreement and to consummate the transactions contemplated hereby. This Agreement has been duly and validly executed and delivered by MPLX GP and constitutes a valid and binding obligation of MPLX GP, enforceable in accordance with its terms, except as such enforcement may be limited by applicable bankruptcy, insolvency, moratorium or similar laws affecting the rights of creditors generally and by general principles of equity.

10.4      No Violation . The execution and delivery of this Agreement (or any related instrument) by MPLX GP does not, and the consummation of the transactions contemplated hereby and the performance by MPLX GP of the obligations that it is obligated to perform hereunder do not, and at the Closing will not: (a) violate any provision of the limited liability company agreement of MPLX GP; (b) violate, or result in the violation of or acceleration of, or entitle any party to accelerate any obligation or indebtedness under, or result in the imposition of any Lien upon the MPLX GP Membership Interests pursuant to, any Lien, Permit, agreement or other instrument to which MPLX GP is a party, or by which MPLX GP is bound; or (c) contravene or violate any municipal, state or federal ordinance, law, rule, regulation, judgment, order, writ, injunction, or decree in any material respect.

10.5      GP Units .


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(a)      MPLX GP understands that the GP Units to be issued to it pursuant to this Agreement have not been registered under the 1933 Act, or under any applicable state securities laws, and neither MPLX nor any of its Affiliates has any obligation to register the GP Units under the 1933 Act or to register or qualify the offer or sale of the GP Units with any state on the basis that the offering is exempt from registration under the 1933 Act and the rules and regulations promulgated thereunder. MPLX GP further acknowledges that the GP Units cannot be sold, assigned, or otherwise transferred unless subsequently registered under the 1933 Act and under applicable state securities laws or if an exemption from registration or qualification is then available. As such, MPLX GP further agrees that it will not sell, assign, or transfer any GP Units unless such GP Units are registered under the 1933 Act and qualified under applicable state securities laws or if an exemption from such registration or qualification is then available in the reasonable opinion of counsel to MPLX GP. MPLX GP understands that there is not, nor is there likely to be, a public market for the GP Units and represents that it can afford to hold such GP Units for an indefinite period of time.

(b)      MPLX GP is acquiring the GP Units as contemplated herein for its own account and for its purposes only, with no intention of assigning any participation or interest therein, and not with a view to, or in connection with, making a distribution thereof in violation of federal or state securities laws.

10.6      Common Units .

(a)      MPLX GP understands that the Common Units to be issued to it pursuant to this Agreement have not been registered under the 1933 Act, or under any applicable state securities laws, and neither MPLX nor any of its Affiliates has any obligation to register the Common Units under the 1933 Act or to register or qualify the offer or sale of the Common Units with any state on the basis that the offering is exempt from registration under the 1933 Act and the rules and regulations promulgated thereunder. MPLX GP further acknowledges that the Common Units cannot be sold, assigned, or otherwise transferred unless subsequently registered under the 1933 Act and under applicable state securities laws or if an exemption from registration or qualification is then available. As such, MPLX GP further agrees that it will not sell, assign, or transfer any Common Units unless such Common Units are registered under the 1933 Act and qualified under applicable state securities laws or if an exemption from such registration or qualification is then available in the reasonable opinion of counsel to MPLX GP. MPLX GP understands that there may not be a public market for the Common Units and represents that it can afford to hold such Common Units for an indefinite period of time.

(b)      MPLX GP is acquiring the Common Units as contemplated herein for its own account and for its purposes only, with no intention of assigning any participation or interest therein, and not with a view to, or in connection with, making a distribution thereof in violation of federal or state securities laws.


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10.7      Disclaimer of Warranties . Except as expressly set forth in this Article 10 , MPLX GP makes no representations or warranties whatsoever and disclaims all liability and responsibility for any other representation, warranty, statement or information made or communicated (orally or in writing), including, without limitation, any opinion, information or advice that may have been provided by any officer, shareholder, director, employee, agent or consultant of MPLX GP, or its Affiliates.

ARTICLE 11
ADDITIONAL COVENANTS

11.1      Termination of Participation in MPCIF .

(a)      Prior to the Closing Date, MPCI caused Hardin to provide written notice to MPC Investment Fund, Inc. (“ MPCIF ”) of its termination of participation in the Account Agreement dated June 21, 2011, which resulted in the elimination of any balances of Hardin with MPCIF (the intercompany accounts receivable with trading partner 5010), and Hardin distributed all such cash received from MPCIF as a result of terminating the Hardin account to MPCI net of the payment of the intercompany accounts payable balance with MPCIF (trading partner 5010).

(b)      Prior to the Closing Date, MPCI caused Woodhaven to provide written notice to MPCIF of its termination of participation in the Account Agreement dated June 21, 2011, which resulted in the elimination of any balances of Woodhaven with MPCIF (the intercompany accounts receivable with trading partner 5011), and Woodhaven distributed all such cash received from MPCIF as a result of terminating the Woodhaven account to MPCI net of the payment of the intercompany accounts payable balance with MPCIF (trading partner 5011).

(c)      Prior to the Closing Date, MPCI caused Terminals and Blanchard to provide written notice to MPCIF of their termination of participation in the Account Agreement dated June 21, 2011, which resulted in the elimination of any balances of Terminals and Blanchard with MPCIF (the intercompany accounts receivable with trading partner 4016 and 4020), and Terminals and Blanchard distributed all such net cash received from MPCIF as a result of terminating the Terminals and Blanchard accounts to MPCI net of the payment of the intercompany accounts payable balances with MPCIF (trading partner 4016 and 4020).

ARTICLE 12
POST-CLOSING COVENANTS/ TAX MATTERS

12.1      General . In case at any time after the Closing any further action is necessary to carry out the purposes of this Agreement, each of the Parties will take such further action (including the execution and delivery of such further instruments and documents) as the other Parties reasonably may request, all at the sole cost and expense of the requesting Party (unless the requesting Party is entitled to indemnification therefor).


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12.2      Transfer Taxes . All sales, use, controlling interest, transfer, filing, recordation, registration and similar Taxes arising from or associated with the transactions contemplated by this Agreement other than Taxes based on income or net worth (“ Transaction Taxes ”), shall be borne fifty percent (50%) by MPLX and fifty percent (50%) by MPCI. To the extent under applicable law, the transferee is responsible for filing Tax Returns in respect of Transaction Taxes, MPCI shall prepare and file all such Tax Returns. The Parties shall provide such certificates and other information and otherwise cooperate.

12.3      Liability for Taxes .

(a)      MPCI shall be liable for, and shall indemnify and hold MPLX, and any other of MPLX’s Affiliates harmless from any Taxes, together with any costs, expenses, losses or damages, including reasonable expenses of investigation and attorneys’ and accountants’ fees and expenses, arising out of or incident to the determination, assessment or collection of such Taxes (“ Tax Losses ”), (i) imposed on or incurred by Hardin, Woodhaven or Terminals by reason of Treasury Regulations Section 1.1502-6 or any analogous state, local or foreign law or regulation which is attributable to having been a member of any consolidated, combined or unitary group on or prior to and including the Closing Date; (ii) any Tax Losses (other than Tax Losses described in clause (i) above) imposed on or incurred by or with respect to Hardin, Woodhaven or Terminals or the Assets with respect to the period prior to and including the Closing Date; or (iii) attributable to a breach by MPCI of any representation (other than those contained in Section 5.19 , to which Article 4 shall be applicable), warranty or covenant with respect to Taxes in this Agreement; provided , however , that MPCI’s liability for Tax Losses hereunder shall be reduced by the amount of any Taxes included in such Tax Losses to the extent reflected in the Current Liabilities of Hardin, Woodhaven or Terminals as of the Closing Date.

(b)      MPLX shall be liable for, and shall indemnify and hold MPCI, Logistics, MPLX GP and each of their respective Affiliates (other than MPLX and its subsidiaries) harmless from, any Tax Losses (i) imposed on or incurred by or with respect to Hardin, Woodhaven or Terminals or the Assets with respect to the period after the Closing Date, or (ii) attributable to a breach by MPLX of any covenant with respect to Taxes in this Agreement.

(c)      Whenever it is necessary for purposes of this Article 12 to determine the amount of any Taxes imposed on or incurred by or with respect to Hardin, Woodhaven or Terminals or the Assets for a taxable period beginning before and ending after the Closing Date which is allocable to the period prior to and including the Closing Date, the determination shall be made, in the case of property or ad valorem taxes or franchise taxes, on a per diem basis and, in the case of other Taxes, by the closing of the books method pursuant to Section 706 of the Code. Notwithstanding anything to the contrary herein, any franchise tax paid or payable with respect to Hardin, Woodhaven or Terminals or the Assets shall be allocated to the taxable period during which the income, operations, assets or capital comprising the base of such tax is measured, regardless of whether the right to do business for another taxable period is obtained by the payment of such franchise tax.


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12.4      Tax Returns .

(a)      The Parties agree that MPCI shall cause to be included in the consolidated United States federal income Tax Returns (and the state, local or foreign income Tax Returns of any jurisdiction that permits consolidated, combined or unitary income Tax Returns, if any) of the MPC Tax Group for all periods ending on or before the Closing Date, all the items of income, gain, loss, deduction and credit (“ Tax Items ”) with respect to Hardin, Woodhaven or Terminals or the Assets which are required to be included therein, shall cause such Tax Returns to be timely filed with the appropriate Tax Authorities, and shall be responsible for the timely payment of all Taxes due with respect to the periods covered by such Tax Returns.

(b)      With respect to any Tax Return covering a taxable period ending on or before the Closing Date that is required to be filed after the Closing Date with respect to Hardin, Woodhaven or Terminals or the Assets that is not described in Section 12.3(a) above, MPCI shall cause such Tax Return to be prepared, cause to be included in such Tax Return all Tax Items required to be included therein, cause such Tax Return to be filed timely with the appropriate Tax Authority, and be responsible for the timely payment of all Taxes due with respect to the period covered by such Tax Return.

(c)      With respect to any Tax Return covering a taxable period beginning on or before the Closing Date and ending after the Closing Date that is required to be filed after the Closing Date with respect to Hardin, Woodhaven or Terminals or the Assets, MPCI shall cause such Tax Return to be prepared, cause to be included in such Tax Return all Tax Items required to be included therein, furnish a copy of such Tax Return to MPLX, cause such Tax Return to be filed timely with the appropriate Tax Authority, and be responsible for the timely payment of all Taxes due with respect to the period covered by such Tax Return; provided that, not later than five (5) days prior to the due date for payment of Taxes with respect to any such Tax Returns, MPLX shall pay to MPCI the amount of any Taxes shown as due on such Tax Returns for the period before the Closing Date.

(d)      With regard to any Tax Return not yet filed for any taxable period that begins before the Closing Date with respect to Hardin, Woodhaven or Terminals or the Assets, MPCI shall use commercially reasonable efforts to cause such Tax Return to be prepared in accordance with past Tax accounting practices used with respect to the Tax Returns in question (unless such past practices are no longer permissible under the applicable law), and to the extent any items are not covered by past practices, in accordance with reasonable Tax accounting practices selected by the filing party with respect to such Tax Return under this Agreement with the consent (not to be unreasonably withheld or delayed) of the non-filing party.

(e)      (i) The Parties shall cooperate fully, and cause their Affiliates to cooperate fully, as and to the extent reasonably requested by the other Parties, to accomplish the apportionment of income described pursuant to this Article 12 , (ii) to respond to requests for the provision of any information or documentation within the knowledge or possession of another Party as reasonably necessary to facilitate compliance with financial reporting

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obligations, and any audit, litigation or other retention and (upon another Party’s request) the provision of records and information which are reasonably relevant to any Tax Return or Tax Proceeding, and (iii) to make employees available on a mutually convenient basis to provide additional information and explanation of any material provided hereunder. MPLX and MPCI will use their respective Commercially Reasonable Efforts to retain all books and records with respect to Tax matters pertinent to the Assets relating to any taxable period beginning before the Closing Date until the expiration of the applicable statute of limitations of the respective taxable periods (including any extensions thereof), and to abide by all record retention agreements entered into with any Tax Authority. MPCI and MPLX each agree, upon request, to use their respective Commercially Reasonable Efforts to obtain any certificate or other document from any Tax Authority or any other Person as may be necessary to mitigate, reduce or eliminate any Tax that could be imposed with respect to the transactions contemplated by this Agreement.

12.5      Tax Treatment of the Transaction . The Parties acknowledge and agree that for U.S. federal income tax purposes (and to the extent permitted for state and local income Tax purposes) to treat and report the transactions contemplated under this Agreement as follows:

(a)      with respect to the Logistics Issued Units issued to Logistics in exchange for the Logistics Membership Interests, as a contribution to MPLX of an undivided interest in the Assets under Section 721 of the Code;

(b)      with respect to the Holdings Issued Units issued to Holdings in exchange for the Holdings Membership Interests, as a contribution to MPLX of an undivided interest in the Assets under Section 721 of the Code;

(c)      with respect to the MPLX GP Issued Units issued to MPLX GP in exchange for the MPLX GP Membership Interests, as a contribution to MPLX of an undivided interest in the Assets under Section 721 of the Code; and

(d)      with respect to the distributions of the Cash Consideration made out of the Partnership Debt, as distributions under Section 731 of the Code that, together with the corresponding contributions, (i) qualify to the maximum extent possible as a “debt-financed transfer” under Section 1.707-5(b) of the Treasury Regulations; (ii) in excess of the amount described in clause (i) hereof, as reimbursement, to the maximum extent possible, for capital expenditures with respect to the Assets, as described in Section 1.707-4(d) of the Treasury Regulations; and (iii) in excess of the amount described in clauses (i) and (ii) hereof, as the proceeds of a sale of the corresponding assets by MPLX GP, Logistics or Holdings, as applicable, to MPLX to the extent any other exception to the “disguised sale” rules under Section 707 of the Code and the Treasury Regulations thereunder are inapplicable.

The Parties agree to act at all times in manner consistent with the U.S. federal income tax treatment as set forth in this Section 12.5 , including disclosing the distribution of the Cash Consideration in accordance with the requirements of Section 1.707-3(c)(2) of the Treasury Regulations.

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12.6      Conflicts . In the event of a conflict between the provisions of this Article 12 and any other provision of this Agreement, the provisions of this Article 12 shall control.

ARTICLE 13
[Intentionally Left Blank]


ARTICLE 14
[Intentionally Left Blank]


ARTICLE 15
FURTHER ASSURANCES

15.1      Each of the Parties, from time to time, upon the reasonable request of another, shall execute, acknowledge or deliver or cause to be executed, acknowledged or delivered in proper form, such instruments, documents, certifications and further assurances and take such further action as may be necessary or appropriate to carry out the purposes of this Agreement and the transactions contemplated hereunder.


ARTICLE 16
CLOSING

The Closing of this Agreement shall be conducted as follows, with the performance of the Parties to be mutually dependent, and all transfers deemed to have taken place simultaneously:

16.1      Closing . The Closing of the transactions contemplated by this Agreement shall occur on March 1, 2017, (the “ Closing Date ”). The transactions contemplated by this Agreement shall be effective as of the Effective Time.
16.2      [Intentionally Left Blank]
16.3      [Intentionally Left Blank]
16.4      Deliveries by Logistics to MPLX . At Closing, Logistics shall deliver to MPLX:
(a)      a Contribution and Assumption Agreement substantially in the form of Exhibit 2 , duly executed by Logistics;
(b)      appropriate resolutions and other similar documents of Logistics, to fully implement this Agreement;


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(c)      a properly executed certificate of Logistics certifying that Logistics is not a “foreign person” within the meaning of Section 1445 of the Code; and

(d)      each other document or instrument specified in or as may be reasonably required by this Agreement.

16.5      Deliveries by MPLX to Logistics . At Closing, MPLX shall deliver to Logistics:

(a)      the Logistics Cash Consideration,

(b)      a Contribution and Assumption Agreement substantially in the form of Exhibit 2 , duly executed by MPLX;

(c)      appropriate resolutions and other similar documents of MPLX, to fully implement this Agreement; and


(d)      each other document or instrument specified in or as may be reasonably required by this Agreement.

16.6      Deliveries by Holdings to MPLX . At Closing, Holdings shall deliver to MPLX:

(a)      a Contribution and Assumption Agreement substantially in the form of Exhibit 3 , duly executed by Holdings;

(b)      appropriate resolutions and other similar documents of Holdings, to fully implement this Agreement; and

(c)      a properly executed certificate of Holdings certifying that Holdings is not a “foreign person” within the meaning of Section 1445 of the Code; and

(d)      each other document or instrument specified in or as may be reasonably required by this Agreement.

16.7      Deliveries by MPLX to Holdings . At Closing, MPLX shall deliver to Holdings:

(a)      the Holdings Cash Consideration,

(b)      a Contribution and Assumption Agreement substantially in the form of Exhibit 3 , duly executed by MPLX;


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(c)      appropriate resolutions and other similar documents of MPLX, to fully implement this Agreement; and

(d)      each other document or instrument specified in or as may be reasonably required by this Agreement.

16.8      Deliveries by MPLX GP to MPLX . At Closing, MPLX GP shall deliver to MPLX:
(a)      a Contribution and Assumption Agreement substantially in the form of Exhibit 4 , duly executed by MPLX GP;

(b)      appropriate resolutions and other similar documents of MPLX GP, to fully implement this Agreement;

(c)      a properly executed certificate of MPLX GP certifying that MPLX GP is not a “foreign person” within the meaning of Section 1445 of the Code; and

(d)      each other document or instrument specified in or as may be reasonably required by this Agreement.

16.9      Deliveries by MPLX to MPLX GP . At Closing, MPLX shall deliver to MPLX GP:
(a)      the MPLX GP Cash Consideration,

(b)      a Contribution and Assumption Agreement substantially in the form of Exhibit 4 , duly executed by MPLX;

(c)      appropriate resolutions and other similar documents of MPLX, to fully implement this Agreement; and

(d)      each other document or instrument specified in or as may be reasonably required by this Agreement.

16.10      Issuance of Issued Units . No later than the fifth (5th) business day following the Closing, MPLX shall issue (a) the Logistics Issued Units and deliver to Logistics evidence (reasonably satisfactory to Logistics) of such number of Common Units, (b) the Holdings Issued Units and deliver to Holdings evidence (reasonable satisfactory to Holdings) of such number of Common Units, and (c) the MPLX GP Issued Units and deliver to MPLX GP evidence (reasonably satisfactory to MPLX GP) of such number of GP Units and Common Units.
16.11      Amended Agreements . At or before the Closing, the following agreements will be executed and delivered:
(a)      the Third Amendment to Transportation Services Agreement between HST and Marathon Petroleum Company LP;

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(b)      the Amended and Restated Transportation Services Agreement between HST and Marathon Petroleum Company LP for the Rio system;
(c)      the Second Amended and Restated Employee Services Agreement by and among Marathon Petroleum Logistics Services LLC, MPLX GP and Marathon Pipeline LLC;
(d)      the Third Amended and Restated Employee Services Agreement between Marathon Petroleum Logistics Services LLC and Terminals
(e)      the Third Amended and Restated Terminal Services Agreement between MPLX and Marathon Petroleum Company LP; and
(f)      the Third Amendment to the Storage and Services Agreement between Woodhaven and Marathon Petroleum Company LP.

ARTICLE 17
MISCELLANEOUS

17.1      Assigns . This Agreement shall be binding upon and shall inure to the benefit of the respective Parties and their permitted successors and assigns. A Party’s rights under this Agreement may not be assigned without the prior written consent of all other Parties, which consent may be withheld for any reason. Any purported assignment in violation of the foregoing shall be void ab initio .

17.2      Entire Understanding, Headings and Amendment .

(a)      This entire Agreement and the attached Annexes, Exhibits and Disclosure Schedules and all documents to be executed and delivered pursuant hereto constitute the entire understanding among the Parties, and supersede all previous agreements of any sort. Article headings are included only for purposes of convenience and shall not be construed as a part of this Agreement or in any way affecting the meaning of the provisions of this Agreement or its interpretation.

(b)      This Agreement may not be amended or modified orally and no amendment or modification shall be valid unless in writing and signed by the Parties; provided, any such amendment or modification must be approved by the Conflicts Committee.

17.3      Rights of Third Parties . This Agreement shall not be construed to create any lien or encumbrance on the MPCI Membership Interests, the Logistics Membership Interests, the Holdings Membership Interests, the MPLX GP Membership Interests, or any Common Units or GP Units or to create any express or implied rights in any persons other than the Parties, except as expressly provided with respect to the MPLX Indemnitees and the MPCI Indemnities in 0 .


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17.4      Notices . All notices shall be in writing and shall be delivered or sent by first-class mail, postage prepaid, overnight courier or by means of electronic transmission. Any notice sent shall be addressed as follows:
 
(a)
If to MPCI:
 
 
 
 
 
MPC Investment LLC
 
 
539 South Main Street
 
 
Findlay, Ohio 45840
 
 
Attn: President
 
 
 
 
 
With copy (which shall not constitute notice) to:
 
 
 
 
 
Marathon Petroleum Company LP
 
 
539 South Main Street
 
 
Findlay, Ohio 45840
 
 
Attn: General Counsel
 
 
 
 
(b)
If to MPLX:
 
 
 
 
 
MPLX LP
 
 
c/o MPLX GP LLC
 
 
200 East Terminals Street
 
 
Findlay, Ohio 45840
 
 
Attn: President
 
 
 
 
 
With copy (which shall not constitute notice) to:
 
 
 
 
 
MPLX GP LLC
 
 
200 East Terminals Street
 
 
Findlay, Ohio 45840
 
 
Attn: General Counsel
 
 
 
 
 
MPLX GP LLC
 
 
200 East Terminals Street
 
 
Findlay, Ohio 45840
 
 
Attn: Conflicts Committee Chairman
 
 
 
 
(c)
If to Logistics:
 
 
 
 
 
MPLX Logistics Holdings LLC
 
 
539 South Main Street
 
 
Findlay, Ohio 45840
 
 
Attn: President
 
 
 
 
 
With copy (which shall not constitute notice) to:
 
 
 
 
 
Marathon Petroleum Company LP
 
 
539 South Main Street


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Findlay, Ohio 45840
 
 
Attn: General Counsel
 
 
 
 
(d)
If to Holdings:
 
 
 
 
 
MPLX Holdings Inc.
 
 
539 South Main Street
 
 
Findlay, Ohio 45840
 
 
Attn: President
 
 
 
 
 
With copy (which shall not constitute notice) to:
 
 
 
 
 
Marathon Petroleum Company LP
 
 
539 South Main Street
 
 
Findlay, Ohio 45840
 
 
Attn: General Counsel
 
 
 
 
(e)
If to MPLX GP:
 
 
 
 
 
MPLX GP LLC
 
 
200 East Terminals Street
 
 
Findlay, Ohio 45840
 
 
Attn: President
 
 
 
 
 
With copy (which shall not constitute notice) to:
 
 
 
 
 
MPLX GP LLC
 
 
200 East Terminals Street
 
 
Findlay, Ohio 45840
 
 
Attn: General Counsel

Any notice required hereunder shall be effective when sent if given in the manner set forth above.

17.5      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 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 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

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PARTY’S AGENT FOR ACCEPTANCE OF LEGAL PROCESS AND TO NOTIFY THE OTHER PARTIES 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 ten (10) days nor more than sixty (60) days following written notice to the other Parties, 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. In connection with any mediation pursuant to this Section 17.5(b) , the mediator shall be jointly appointed by the Parties and the mediation shall be conducted in Findlay, Ohio unless otherwise agreed by the Parties. All costs and expenses of the mediator appointed pursuant to this Section 17.5(b) shall be shared equally and paid by the Parties. 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, shall govern any mediation pursuant to this Section 17.5(b) . In the mediation, each Party 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 thirty (30) days after the receipt of the Mediation Notice by a Party, then any Party may refer the resolution of the dispute or claim to litigation.

(c)      Subject to Section 17.5(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) waives any objection to laying venue in any such action or proceeding in such courts; (ii) waives any objection that such courts are an inconvenient forum or do not have jurisdiction over it; and (iii) 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 17.4 . 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.

17.6      Time of the Essence . Time is of the essence in the performance of this Agreement in all respects. If the date specified herein for giving any notice or taking any action is not a business day (or if the period during which any notice is required to be given or any action taken expires on a date which is not a business day), then the date for giving such notice or taking such action (and the expiration date of such period during which notice is required to be given or action taken) shall be the next day which is a business day.

17.7      Waiver and Severability .

(a)      No waiver, either express or implied, by any Party hereto of any term or condition of this Agreement or right to enforcement thereof shall be effective, unless such waiver is in writing and signed by all Parties. Any such waiver shall constitute a waiver only with respect to the specific matter described in such writing and shall in no way adversely affect

41


the rights of the Parties granting such waiver in any other respect or at any other time. The failure of any Party to exercise any rights or privileges under this Agreement shall not be construed as a waiver of any such rights or privileges under this Agreement. The rights and remedies provided in this Agreement are cumulative and, except as otherwise expressly provided in this Agreement, none is exclusive of any other or of any rights or remedies that any Party may hereunder or otherwise have at law or in equity.

(b)      Whenever possible, each provision or portion of any provision of this Agreement shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision or portion of any provision of this Agreement is held to be invalid, illegal or unenforceable in any respect under any applicable law or rule in any jurisdiction, such invalidity, illegality or unenforceability shall not affect any other provision or portion of any provision in such jurisdiction, and this Agreement shall be reformed, construed and enforced in such jurisdiction as if such invalid, illegal or unenforceable provision or portion of any provision had never been contained herein.

17.8      Costs and Expenses . Except as otherwise specifically provided in this Agreement, each Party will bear its own costs and expenses in connection with this Agreement and the transactions contemplated hereby.

17.9      Counterpart Execution . This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which together shall constitute one agreement.

[ Signature page follows. ]



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IN WITNESS WHEREOF , each of the Parties has caused this Agreement to be executed the day and year first above written.

MPC Investment LLC
 
 
By:
/s/ Gary R. Heminger
 
Gary R. Heminger
 
President and Chief Executive Officer
 
 
MPLX Logistics Holdings LLC
 
 
By:
/s/ Timothy T. Griffith
 
Timothy T. Griffith
 
Vice President
 
 
MPLX Holdings Inc.
 
 
By:
/s/ Timothy T. Griffith
 
Timothy T. Griffith
 
Vice President
 
 
MPLX LP
By: MPLX GP LLC, its General Partner
 
 
By:
/s/ Donald C. Templin
 
Donald C. Templin
 
President
 
 
MPLX GP LLC
 
 
By:
/s/ Donald C. Templin
 
Donald C. Templin
 
President



       




[Signature Page to Membership Interests Contributions Agreement]


APPENDIX A
DEFINITION OF TERMS

Introductory Note--Construction . Whenever the context requires, the gender of all words used in the Agreement includes the masculine, feminine and neuter and terms defined in the singular have the corresponding meanings in the plural, and vice versa. Except as the Agreement otherwise specifies, all references herein to any law, are references to that law (and any rules and regulations promulgated thereunder), as the same may have been amended. The word “includes” or “including” means “including, but not limited to,” unless the context otherwise requires. The words “shall” and “will” are used interchangeably and have the same meaning. The words “this Agreement,” “hereof,” “hereby,” “herein,” “hereunder” and similar terms in the Agreement refer to the relevant agreement as a whole and not any particular Section or Article in which such words appear. If a word or phrase is defined, its other grammatical forms have a corresponding meaning. Whenever the Agreement refers to a number of days, such number shall refer to calendar days unless business days are specified. Time periods within or following which any payment is to be made or an act is to be done shall be calculated by excluding the day on which the time period commences and including the day on which the time period ends. Unless specifically provided for in this Agreement, the term “or” shall not be deemed to be exclusive. References to a person are also to its successors and/or permitted assigns, if any. All exhibits and annexes attached to this Agreement constitute a part of this Agreement and are incorporated herein for all purposes. All references to currency in this Agreement shall be to, and all payments required under this Agreement shall be paid in, lawful currency of the United States.

Definitions .

1933 Act ” means the Securities Act of 1933, as amended and the rules and regulations promulgated thereunder.

Affiliate ” means, as to any specified entity, any other entity that, directly or indirectly through one or more intermediaries or otherwise, controls, is controlled by or is under common control with the specified entity. For purposes of this definition, “control” of an entity means the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of such entity, whether by contract or otherwise. Notwithstanding anything herein to the contrary, for the purposes of this Agreement, (a) MPLX and its subsidiaries shall be deemed not to be “Affiliates” of MPC, MPCI, Logistics, Holdings, MPLX GP or any of their other Affiliates, and (b) MPC, MPCI, Logistics and MPLX GP and their respective subsidiaries shall not be deemed “Affiliates” of MPLX and its subsidiaries.

Agreement ” has the meaning set forth in the preamble.

Assets ” means collectively the Hardin Assets, Woodhaven Assets and Terminals Assets.

Blanchard ” means Blanchard Terminals Company LLC, a wholly owned subsidiary of Terminals.


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Businesses ” means, collectively, the Hardin Business, Woodhaven Business and Terminals Business, each of which, individually, may be referred to herein as a “ Business ”.

Cap means the amount equal to twenty percent (20%) of the Total Value.

Cash Consideration ” has the meaning set forth in Section 3.3 .
 
Closing ” means the consummation of the transactions contemplated by this Agreement.

Closing Date ” has the meaning set forth in Section 16.1 .

Code ” means the United States Internal Revenue Code of 1986, as amended.

Commercially Reasonable Efforts ” means efforts which are commercially reasonable under the relevant circumstances to enable a Party, directly or indirectly, to satisfy a condition to or otherwise assist in the consummation of a desired result and which do not require the performing Party to expend funds or assume obligations other than expenditures and obligations which are customary and reasonable in nature and amount in the context of a series of related transactions similar to the contemplated transactions.

Common Unit ” has the meaning set forth in the MPLX Partnership Agreement.

Conflicts Committee ” means the Conflicts Committee of the Board of Directors of MPLX GP LLC, the general partner of MPLX.

Contract ” means any contract, commitment, instrument, undertaking, lease, note, mortgage, indenture, settlement, Permit, or other legally binding agreement.

Current Assets ” means the current assets identified on the Financial Statements.

Current Liabilities ” means the current liabilities identified on the Financial Statements.

Deductible ” means the amount equal to one half of one percent (0.5%) of the Total Value.

Effective Time ” means 12:01 am local time in Findlay, Ohio on the Closing Date.

Environmental Condition ” means the existence of Hazardous Substances in or on the surface, soil, surface water or groundwater at, on or under the Real Property, or emanating or migrating from the Real Property to the real property or properties of another Person to the extent the levels of any such Hazardous Substances exceeds naturally occurring background levels in such areas.

Environmental Laws ” means any and all applicable federal, state or local law or statute, or regulations promulgated thereunder, together with any amendments thereto and all substitutions thereof, concerning the environment, preservation or reclamation of natural resources, natural

2


resource damages, human health and safety, prevention or control of spills or pollution, or to the management (including without limitation generation, treatment, storage, transportation, arrangement for transport, disposal, arrangement for disposal or other handling), release or threatened release of Hazardous Substances, including without limitation, the Clean Water Act, also known as the Federal Water Pollution Control Act, 33 U.S.C. § 1251 et. seq., the Oil Pollution Act of 1990, 33 U.S.C. § 2701 et. seq., the Toxic Substances Control Act, 15 U.S.C. § 2601 et. seq., the Comprehensive Environmental Response, Compensation and Liability Act, 42 U.S.C. § 9601 et. seq., the Superfund Amendment and Reauthorization Act of 1986, Public Law 99- 499, 100 Stat. 1613, the Emergency Planning and Community Right to Know Act, 42 U.S.C. § 1101 et. seq., the Resource Conservation and Recovery Act, 42 U.S.C. § 6901 et. seq., the Occupational Safety and Health Act, as amended, 29 U.S.C. § 655 and § 657, the Clean Air Act, 42 U.S.C, § 7401 et. seq., the Safe Drinking Water Act, 42 U.S.C. § 300f to § 300j-26, the Hazardous Materials Transportation Authorization Act of 1994, 49 U.S.C. § 5101 et. seq., the Atomic Energy Act of 1954 as amended, 42 U.S.C. §§ 2014, 2021(d), 2022, 2111, 2113 and 2114.

Equity Interest ” means capital stock, voting securities, partnership or membership interests or units (whether general or limited), and any other interest or participation that confers on a Person the right to receive a share of the profits and losses of the issuing entity.

Financial Advisor ” means Jefferies LLC, the financial advisor to the Conflicts Committee.

Financial Statements ” means collectively the Hardin/Woodhaven Combined Financial Statements and Terminals Financial Statements.

Fundamental Representations ” has the meaning set forth in Section 4.3(a) .

Governmental Authority ” means any federal, state, local, foreign, multi-national, supra-national, national, regional or other governmental agency, authority, administrative agency, regulatory body, commission, board, bureau, agency, officer, official, instrumentality, court or arbitral tribunal having governmental or quasi-governmental powers or any other instrumentality or political subdivision thereof; provided , however , that such term shall not include any entity or organization that is engaged in industrial or commercial operations and is wholly or partly owned by any government, to the extent that such entity or organization is acting in a commercial capacity.

GP Unit ” means “General Partner Unit” as such term is defined in the MPLX Partnership Agreement.

Guilford ” means Guilford County Terminal Company LLC.

Guilford Equity Interests ” means the thirty-five percent (35%) membership interests in Guilford held by Terminals.

Guilford LLC Agreement ” means the Member Agreement of Guilford dated June 30, 2000, as amended.


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Hardin ” has the meaning set forth in the recitals.

Hardin Assets ” means the assets of Hardin that comprise the Hardin Real Property, its personal property, both tangible and intangible, and its books and records.

Hardin Business ” means the business of providing pipeline transportation, unloading and storage services and operations for crude feedstock and refined petroleum products as historically conducted by MPCI and its Affiliates using the Hardin Assets and as conducted by Hardin from and after January 1, 2015.

Hardin/Woodhaven Combined Financial Statements ” has the meaning set forth in Section 5.20(a) .

Hardin LLC Agreement ” means the Hardin Street Transportation Limited Liability Company Agreement dated May 22, 2014.

Hardin Material Contract ” means any Material Contract relating to the ownership or operation of the Hardin Business or the ownership, use or operation of the Hardin Assets.

Hardin Membership Interests ” means collectively the Logistics Hardin Membership Interests, the Holdings Hardin Membership Interests, the MPLX GP Hardin Membership Interests and the MPCI Hardin Membership Interests.

Hardin Real Property ” means the lands, both owned in fee and leased and any appurtenances thereto, upon which the Hardin Assets are situated.

Hazardous Substance ” means any substance, material or waste designated, regulated or classified as a hazardous waste, hazardous substance, hazardous material, pollutant, contaminant or toxic substance under any Environmental Law.

Holdings ” has the meaning set forth in the preamble.

Holdings Cash Consideration ” has the meaning set forth in Section 3.2 .

Holdings Hardin Membership Interests ” has the meaning set forth in the recitals.

Holdings Issued Units ” has the meaning set forth in Section 3.2 .

Holdings Membership Interests ” means collectively the Holdings Hardin Membership Interests, Holdings Woodhaven Membership Interests and Holdings Terminals Membership Interests.

Holdings Terminals Membership Interests ” has the meaning set forth in the recitals.

Holdings Woodhaven Membership Interests ” has the meaning set forth in the recitals.

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HSR Act ” means the Hart-Scott-Rodino Antitrust Improvement Act of 1976, as amended, and the rules and regulations promulgated thereunder.

Indemnified Party ” has the meaning set forth in Section 4.4 .

Indemnifying Party ” has the meaning set forth in Section 4.4 .

Issued Units ” has the meaning set forth in Section 3.3 .

Johnston ” means Johnston County Terminals LLC.

Johnston Equity Interests ” means the fifty percent (50%) membership interests in Johnston held by Terminals.

Johnston LLC Agreement means the Members Agreement of Johnston dated January 1, 2000, as amended.

Liens ” means any security interest, lien, deed of trust, mortgage, pledge, charge, claim, restriction, easement, encumbrance or other similar interest or right.

LLC Agreements ” means collectively the Hardin LLC Agreement, the Woodhaven LLC Agreement and the Terminals LLC Agreement.

Logistics ” has the meaning set forth in the preamble.

Logistics Cash Consideration ” has the meaning set forth in Section 3.1 .

Logistics Hardin Membership Interests ” has the meaning set forth in the recitals.

Logistics Issued Units ” has the meaning set forth in Section 3.1 .

Logistics Membership Interests ” means collectively the Logistics Hardin Membership Interests, Logistics Woodhaven Membership Interests and Logistics Terminals Membership Interests.

Logistics Terminals Membership Interests ” has the meaning set forth in the recitals.

Logistics Woodhaven Membership Interests ” has the meaning set forth in the recitals.

Losses ” has the meaning set forth in Section 4.1(a) .

Material Adverse Effect ” means any change, circumstance, effect or condition that is, or could reasonably be expected to be, individually or in the aggregate, materially adverse to (i) the business, financial condition, assets, liabilities or results of operations of the Hardin Business, the

5


Woodhaven Business, the Terminals Business, or the Businesses taken as a whole; (ii) the ownership of the Membership Interests; or (iii) any Party’s ability to enter into or perform its obligations under this Agreement or to consummate the transactions contemplated hereby; provided, that the term “Material Adverse Effect” shall not include:

(A) any fact, change, effect, condition or event that:

(1) generally affects economic conditions in any of the markets or geographical areas in which the Businesses operate;

(2)     generally affects economic conditions or the financial, banking, currency or capital markets in general (whether in the United States or any other country or in any international market), including changes in (i) general financial or market conditions, (ii) currency exchange rates or currency fluctuations, (iii) prevailing interest rates or credit markets, and (iv) the price of commodities or raw materials used in the Businesses;

(3)     generally affect the industries in which the Businesses operate; or

(4)     result from national or international political or social actions or conditions, including the engagement by any country in hostilities, whether commenced before or after the date hereof, and whether or not pursuant to the declaration of a national emergency or war, or the occurrence of any military or terrorist attack;

(B)     changes in Law, GAAP or other applicable accounting standards or interpretations thereof;

(C)     any failure to meet internal projections, public estimates or expectations with respect to the Businesses (it being understood that the underlying causes of such failure may be taken into consideration in determining whether a Material Adverse Effect has occurred); or

(D)     the announcement of, or the taking of any action contemplated by, this Agreement and the other agreements contemplated hereby; provided , however , that facts, changes, affects, conditions or events referred to in clauses (A)(1), (A)(2), (A)(3), (A)(4) and (B) above shall be considered for purposes of determining whether there has been or would reasonably be expected to be a Material Adverse Effect if and only to the extent such facts, changes, affects, conditions or events has had or would reasonably be expected to have a disproportionate effect on Hardin, Woodhaven, Terminals or the Businesses as compared to other companies operating in similar businesses.

Material Contract ” means any Contract (other than any Contract granting any Permits, servitudes, easements or rights-of-way) material to Hardin, Woodhaven or Terminals or to the ownership or operation of the Hardin Business, the Woodhaven Business or the Terminals Business, or the ownership, use or operation of the Hardin Assets, the Woodhaven Assets or the Terminals Assets, which shall include (a) each Contract between Hardin, Woodhaven or Terminals, on the one hand, and MPCI or an Affiliate thereof, on the other hand; (b) each Contract that provides for a

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limit on the ability of Hardin, Woodhaven or Terminals to compete in any line of business or in any geographic area during any period of time after the Closing; (c) each Contract evidencing indebtedness, whether secured or unsecured, including all loan agreements, line of credit agreements, indentures, mortgages, promissory notes, agreements concerning long and short-term debt, together with all security agreements or other lien documents related to or binding on Hardin, Woodhaven and Terminals or any of the Assets; (d) each guarantee of the payment or performance by any other Person of any obligation whatsoever; and (e) each Contract for the purchase or acquisition of any material asset or business, or any Equity Interest in, any Person, or for the sale, lease, loan, exchange or other disposition of any material assets, to which Hardin, Woodhaven or Terminals is a Party or involving any of the Assets.

Mediation Notice ” has the meaning set forth in Section 17.5(b) .

Membership Interests ” means collectively the Logistics Membership Interests, the Holdings Membership Interests, the MPLX GP Membership Interests and MPCI Membership Interests.

MPC ” means Marathon Petroleum Corporation
 
MPCI ” has the meaning set forth in the preamble.

MPCI Indemnitees ” has the meaning set forth in Section 4.2 .

MPCIF ” has the meaning set forth in Section 11.1(a) .

MPC Tax Group ” means the affiliated group of corporations within the meaning of Section 1504 of the Code which files a consolidated United States federal income Tax Return and as to which Marathon Petroleum Corporation, a Delaware corporation, is the common parent, and, in the case of any combined or unitary Tax Return, the group of corporations filing such Tax Return that includes MPCI.

MPLX ” has the meaning set forth in the preamble.

MPLX GP ” has the meaning set forth in the preamble.

MPLX GP Cash Consideration ” has the meaning set forth in Section 3.3 .
 
MPLX GP Hardin Membership Interests ” has the meaning set forth in the recitals.

MPLX GP Issued Common Units ” has the meaning set forth in Section 3.3 .

MPLX GP Issued GP Units ” has the meaning set forth in Section 3.3 .

MPLX GP Issued Units ” has the meaning set forth in Section 3.3 .


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MPLX GP Membership Interests ” means collectively the MPLX GP Hardin Membership Interests, MPLX GP Woodhaven Membership Interests and MPLX GP Terminals Membership Interests.

MPLX GP Terminals Membership Interests ” has the meaning set forth in the recitals.

MPLX GP Woodhaven Membership Interests ” has the meaning set forth in the recitals.

MPLX Indemnitees ” has the meaning set forth in Section 4.1(a).

MPLX Partnership Agreement ” means the Third Amended and Restated Agreement of Limited Partnership of MPLX dated October 31, 2016, including any and all amendments thereof.

NYSE ” means the New York Stock Exchange.

Parties ” and “ Party ” have the meaning set forth in the preamble.

Partnership Debt ” has the meaning set forth in the recitals.

Permit ” means permits, licenses, certificates, orders, approvals, authorization, grants, consents, concessions, warrants, franchises and similar rights and privileges.

Permitted Liens ” means:

(i)     inchoate liens and charges imposed by law, Taxes, assessments, obligations under workers’ compensation, unemployment insurance or other social welfare legislation or other requirements, charges or levies of any Governmental Authority, in each case not yet delinquent and that will be paid by Hardin, Woodhaven or Terminals, in the ordinary course of business, or the validity or amount of which is being contested in good faith by Hardin Woodhaven and Terminals; provided, that Hardin, Woodhaven or Terminals shall be responsible for, and shall promptly pay when due, including any interest and penalties, all amounts finally determined to be owed that are the subject of such contest;

(ii)     easements, servitudes, leases, rights-of-way and other rights, exceptions, reservations, conditions, limitations, covenants and other restrictions or encumbrances that are recorded in the public records or reflected on the final survey, and in all cases that do not materially interfere with or impact MPLX’s intended use of the Assets;

(iii)     defects or irregularities in title to the Real Property which do not materially (A) diminish the value of any of the Real Property or (B) interfere with the ordinary conduct of business or the use of any of the Real Property;

(iv)     any liens consisting of (A) statutory landlord’s liens under leases which Hardin, Woodhaven or Terminals is a party or other liens on leased property reserved in leases thereof for rent or for compliance with the terms of such leases; (B) rights reserved to or vested in any

8


Governmental Authority to control or regulate any property of Hardin, Woodhaven or Terminals or to limit the use of such property in any manner which does not materially impair the use of such property; (C) obligations or duties to any Governmental Authority with respect to any franchise, grant, license, lease or permit and the rights reserved or vested in any Governmental Authority to terminate any such franchise, grant, license, lease or permit or to condemn or expropriate any property; or (D) zoning or other land use or Environmental Laws and ordinances of any Governmental Authority, in each case that arise in the ordinary course of business and that do not interfere with the ordinary conduct of the business by Hardin, Woodhaven or Terminals at such property; provided, that Hardin, Woodhaven and Terminals shall be responsible for, and shall promptly pay when due, including any interest and penalties, all amounts finally determined to be owed that are the subject of such contest; and

(v)     liens of carriers, warehousemen, mechanics, laborers and material men and similar charges that arise in the ordinary course of business, and that are either not filed of record and not delinquent or that are filed of record but are being contested in good faith by Hardin, Woodhaven or Terminals; provided, that Hardin, Woodhaven and Terminals shall be responsible for, and shall promptly pay when due, including any interest and penalties, all amounts finally determined to be owed that are the subject of such contest.

Person ” means any natural person, corporation, general partnership, limited partnership, limited liability company, unlimited liability corporation, proprietorship, other business organization, trust, union, association or Governmental Authority.

Plan ” means, whether written or oral, each “employee benefit plan” within the meaning of Section 3(3) of ERISA (including “multiemployer plans” within the meaning of Section 3(37) of ERISA) and any and all employment, deferred compensation, change in control, severance, termination, loan, employee benefit, retention, bonus, pension, profit sharing, savings, retirement, welfare, incentive compensation, stock or equity-based compensation, stock purchase, stock appreciation, collective bargaining, fringe benefit, vacation, paid time off, sick leave or other similar agreements, plans, programs, policies, understandings or arrangements.

Post-Closing Liabilities ” means the liabilities which pertain to the ownership, operation or conduct of the Businesses or the Assets arising from any acts, omissions, events, conditions or circumstances that occur and are attributable to the period after the Effective Time; provided, however, that “Post-Closing Liabilities” shall not include (i) any Losses resulting from, related to, or arising out of the breach by MPC or any of its Affiliates of any Material Contract or any other Contract between MPC or any of its Affiliates on the one hand and MPLX or any of its Affiliates on the other hand; or (ii) any Losses for which MPLX or any of its Affiliates are entitled to reimbursement or indemnification from MPC or any of its Affiliates under this Agreement, any Material Contract or any other Contract between MPC or any of its Affiliates on the one hand and MPLX or any of its Affiliates on the other hand.

Pre-Closing Liabilities ” means (i) the liabilities which pertain to the ownership, operation or conduct of the Businesses or the Assets arising from any acts, omissions, events, conditions or circumstances that occur and are attributable to the period before the Effective Time, including any

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and all claims pending at the Effective Time, but excluding the current liabilities and the Long Term MPLX Project Revenue account (2282510 - LT Deferred Revenue/Gain-IC) identified on the Financial Statements or otherwise incurred since the date of the Financial Statements in the ordinary course of business consistent with past practices prior to the Closing Date; and (ii) any liabilities arising under the LLC Agreements or any other organizational documents of Hardin, Woodhaven or Terminals from any acts, omissions, events, conditions or circumstances that occur and are attributable to the period before the Effective Time, including any and all claims thereunder pending at the Effective Time.

Real Property ” means collectively the Hardin Real Property, the Woodhaven Real Property and the Terminals Real Property.

Release ” means any depositing, spilling, leaking, pumping, pouring, placing, emitting, discarding, abandoning, emptying, discharging, migrating, injecting, escaping, leaching, dumping or disposing of any Hazardous Substance into the environment.

Tax ” means (i) any and all federal, state, provincial, county, local or foreign taxes or levies of any kind and any and all other like assessments, customs, duties, imposts, charges or fees, including income, gross receipts, ad valorem, value added, excise, real property, personal property, escheat, asset, sales, use, franchise, license, payroll, transaction, capital, capital gains, net worth, withholding, estimated, social security, utility, workers’ compensation, severance, disability, wage, employment, production, unemployment compensation, occupation, premium, windfall profits, transfer, gains, alternative or add-on minimum, stamp, documentary, recapture, business license, business organization, environmental, profits, lease, or other taxes or other charges imposed by or on behalf or payable to any Governmental Authority, together with any interest, fines, penalties, assessments, or additions resulting from, attributable to, or incurred in connection with any of the foregoing (whether or not disputed) and (ii) any transferee or other secondary or non-primary liability or other obligations with respect to any item in clause (i) above, whether such liability or obligation arises by assumption, operation of law, contract, indemnity, guarantee, as a successor or otherwise.

Tax Authority ” means any Governmental Authority having jurisdiction over the payment or reporting of any Tax.

Tax Items ” has the meaning set forth in Section 12.4(a) .

Tax Losses ” has the meaning set forth in Section 12.3(a) .

Tax Proceeding ” means any action, audit, litigation or other proceeding for assessment or collection of Taxes.

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

Terminals ” has the meaning set forth in the recitals.

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Terminals Assets ” means the assets of Terminals that comprise the Terminals Real Property, its personal property, both tangible and intangible, and its books and records.

Terminals Business ” means the business of providing terminal services including the receipt, storage, transshipment, blending, additization, handling and redelivery of refined petroleum products historically conducted by MPCI and its Affiliates using the Terminals Assets and as conducted by Terminals from and after April 1, 2016.

Terminals Financial Statements ” has the meaning set forth in Section 5.22(a) .

Terminals LLC Agreement ” means the Terminals Amended and Restated Limited Liability Company Agreement dated June 1, 2016.

Terminals Material Contract ” means any Material Contract relating to the ownership or operation of the Terminals Business or the ownership, use or operation of the Terminals Assets.

Terminals Membership Interests ” means collectively the Logistics Terminals Membership Interests, Holdings Terminals Membership Interests, MPLX GP Terminals Membership Interests and MPCI Terminals Membership Interests.

Terminals Real Property ” means the lands, both owned in fee and leased and any appurtenances thereto, upon which the Terminals Assets are located.

Terminals Subsidiaries ” means collectively Blanchard, Guilford and Johnston.

Third Party Claim ” has the meaning set forth in Exhibit 1 .

Total Value ” means $2,015,000,000.

Transaction Taxes ” has the meaning set forth in Section 12.2 .

Woodhaven has the meaning set forth in the recitals.

Woodhaven Assets ” means the assets of Woodhaven that comprise the Woodhaven Real Property, its personal property, both tangible and intangible, and its books and records.

Woodhaven Business ” means the business of providing storage of certain refined petroleum products as historically conducted by MPCI and its Affiliates using the Woodhaven Assets and as conducted by Woodhaven from and after January 1, 2015.

Woodhaven LLC Agreement ” means the Woodhaven Cavern LLC Limited Liability Company Agreement dated June 13, 2014.


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Woodhaven Material Contract ” means any Material Contract relating to the ownership or operation of the Woodhaven Business or the ownership, use or operation of the Woodhaven Assets.

Woodhaven Membership Interests ” means collectively the Logistics Woodhaven Membership Interests, the Holdings Woodhaven Membership Interests, the MPLX GP Woodhaven Membership Interests and the MPCI Woodhaven Membership Interests.

Woodhaven Real Property ” means the lands, both owned in fee and leased and any appurtenances thereto, upon which the Woodhaven Assets are located.




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Exhibit 1

(a) If any third party institutes any legal proceedings or asserts any claim or demand in respect of which indemnification is available under Section 4.1 or Section 4.2 of this Agreement, as applicable (a “ Third Party Claim ”), the Indemnified Party shall promptly give written notice of the assertion of the Third Party Claim to the Indemnifying Party; provided , however , that failure of the Indemnified Party to so notify the Indemnifying Party shall not release, waive or otherwise affect the Indemnifying Party’s obligations with respect to such claim, except to the extent the Indemnifying Party is prejudiced by such failure.

(b) Subject to the provisions of this Exhibit 1 , the Indemnifying Party shall have the right, at its sole expense, to be represented by counsel of its choice, which must be reasonably satisfactory to the Indemnified Party, and to defend against, negotiate, settle or otherwise deal with any Third Party Claim which relates to any Losses with respect to which it is subject to an indemnification obligation under this Agreement; provided that, in order to defend against, negotiate, settle or otherwise deal with any such Third Party Claim, the Indemnifying Party must first acknowledge in writing to the Indemnified Party its unqualified obligation to indemnify the Indemnified Party under this Agreement and provide to the Indemnified Party reasonable evidence that the Indemnifying Party has reasonably sufficient financial resources to enable it to fulfill its obligations under Article 4 and this Exhibit 1 . Notwithstanding the immediately preceding sentence, the Indemnifying Party shall not have the right to defend against, negotiate, settle or otherwise deal with any Third Party Claim:

(i) if the Indemnified Party reasonably and in good faith believes that the Third Party Claim would reasonably be likely to be materially detrimental to the reputation, customer or supplier relations or future business prospects of the Indemnified Party or any of its Affiliates;

(ii) unless the Third Party Claim is solely for monetary damages (except where any non-monetary relief being sought is merely incidental to a primary claim for monetary damages on the part of the Indemnified Party);

(iii) if the Third Party Claim involves criminal allegations; or

(iv) if the Indemnifying Party fails to prosecute or defend, actively and diligently, the Third Party Claim.

(c)      If the Indemnifying Party elects to defend against, negotiate, settle or otherwise deal with any Third Party Claim, it shall within five (5) days of the Indemnified Party’s written notice of the assertion of such Third Party Claim (or sooner if the nature of the Third Party Claim so requires) notify the Indemnified Party of its intent to do so; provided that the Indemnifying Party must conduct its defense of the Third Party Claim actively and diligently thereafter in order to preserve its rights in this regard. If the Indemnifying Party elects not to defend against, negotiate, settle or otherwise deal with any Third Party Claim; fails to notify the Indemnified Party of its election as provided in this Agreement; or contests its obligation to indemnify the Indemnified Party for Losses relating to such Third Party Claim under this Agreement, then the Indemnified Party



may defend against, negotiate, settle or otherwise deal with such Third Party Claim. If the Indemnified Party defends any Third Party Claim, then the Indemnifying Party shall reimburse the Indemnified Party for the expenses of defending such Third Party Claim upon submission of periodic bills. If the Indemnifying Party assumes the defense of any Third Party Claim, the Indemnified Party may participate, at his or its own expense, in the defense of such Third Party Claim; provided , however , that such Indemnified Party shall be entitled to participate in any such defense with separate counsel at the expense of the Indemnifying Party if (i) so requested by the Indemnifying Party to participate or (ii) in the reasonable opinion of counsel to the Indemnified Party a conflict or potential conflict exists between the Indemnified Party and the Indemnifying Party that would make such separate representation advisable. Each party shall provide reasonable access to each other party to such documents and information as may reasonably be requested in connection with the defense, negotiation or settlement of any Third Party Claim; provided , however , that nothing in this Agreement shall require any party to disclose any documents, materials or other information that is subject to attorney-client privilege. Notwithstanding anything in this Exhibit 1 to the contrary, the Indemnifying Party shall not enter into any settlement of any Third Party Claim without the written consent of the Indemnified Party if such settlement (i) would create any liability of the Indemnified Party for which the Indemnified Party is not entitled to indemnification under this Agreement, (ii) would provide for any injunctive relief or other non-monetary obligation affecting the Indemnified Party, or (iii) does not include an unconditional release of the Indemnified Party from all liability and obligation in respect of the Third Party Claim.

(d) After any final decision, judgment or award is rendered by a Governmental Authority of competent jurisdiction and the expiration of the time in which to appeal therefrom, or a settlement is consummated, or the Indemnified Party and the Indemnifying Party have arrived at a mutually binding agreement, in each case with respect to a Third Party Claim, the Indemnified Party shall forward to the Indemnifying Party notice of any sums due and owing by the Indemnifying Party pursuant to this Agreement with respect to such matter, and the Indemnifying Party shall pay all of such remaining sums so due and owing to the Indemnified Party by wire transfer of immediately available funds within five (5) business days after the date of such notice.







Exhibit 2

CONTRIBUTION AND ASSUMPTION AGREEMENT

This Contribution and Assumption Agreement (this “ Agreement ”) is entered into as of March 1, 2017, by and between MPLX Logistics Holdings LLC, a Delaware limited liability company (“ Logistics ”), and MPLX LP, a Delaware limited partnership (“ MPLX ”), pursuant to that certain Membership Interests Contributions Agreement, dated March 1, 2017, to which Logistics and MPLX are parties (the “ Contributions Agreement ”). Capitalized terms used and not defined herein have the meanings given to such terms in the Contributions Agreement.

In accordance with Section 2.4 of the Contribution Agreement, for good and valuable consideration, the receipt and sufficiency of which is acknowledged, Logistics hereby contributes, assigns, transfers, conveys and delivers the Logistics Membership Interests to MPLX, free and clear of all liens, and MPLX hereby unconditionally and absolutely acquires, accepts and assumes from Logistics the Logistics Membership Interests.

To have and to hold the Logistics Membership Interests unto MPLX, its successors and assigns, forever.

Notwithstanding anything herein to the contrary, nothing herein shall in any way vary the covenants, agreements, representations and warranties of any of the parties set forth in the Contributions Agreement. If there is a conflict between the provisions of the Contributions Agreement and the provisions of this Agreement, the provisions of the Contributions Agreement shall control.

This Agreement shall be binding upon, inure to the benefit of, and be enforceable by Logistics, MPLX and their respective successors and assigns. This Agreement may not be amended except by an instrument in writing authorized and signed by Logistics and MPLX.
In witness whereof, the parties have executed this Agreement as of the date set forth above.
    
MPLX Logistics Holdings LLC
 
MPLX LP
 
 
 
By: MPLX GP LLC, its General Partner
 
 
 
 
 
By:
 
 
By:
 
 
 
 
 
 
Name:
 
 
Name:
 
Title:
 
 
Title:
 
 
 
 
 
 






Exhibit 3

CONTRIBUTION AND ASSUMPTION AGREEMENT

This Contribution and Assumption Agreement (this “ Agreement ”) is entered into as of March 1, 2017, by and between MPLX Holdings Inc., a Delaware corporation (“ Holdings ”), and MPLX LP, a Delaware limited partnership (“ MPLX ”), pursuant to that certain Membership Interests Contributions Agreement, dated March 1, 2017, to which Holdings and MPLX are parties (the “ Contributions Agreement ”). Capitalized terms used and not defined herein have the meanings given to such terms in the Contributions Agreement.

In accordance with Section 2.5 of the Contribution Agreement, for good and valuable consideration, the receipt and sufficiency of which is acknowledged, Holdings hereby contributes, assigns, transfers, conveys and delivers the Holdings Membership Interests to MPLX, free and clear of all liens, and MPLX hereby unconditionally and absolutely acquires, accepts and assumes from Holdings the Holdings Membership Interests.

To have and to hold the Holdings Membership Interests unto MPLX, its successors and assigns, forever.

Notwithstanding anything herein to the contrary, nothing herein shall in any way vary the covenants, agreements, representations and warranties of any of the parties set forth in the Contributions Agreement. If there is a conflict between the provisions of the Contributions Agreement and the provisions of this Agreement, the provisions of the Contributions Agreement shall control.

This Agreement shall be binding upon, inure to the benefit of, and be enforceable by Holdings, MPLX and their respective successors and assigns. This Agreement may not be amended except by an instrument in writing authorized and signed by Holdings and MPLX.

In witness whereof, the parties have executed this Agreement as of the date set forth above.
        
MPLX Holdings Inc.
 
MPLX LP
 
 
 
By: MPLX GP LLC, its General Partner
 
 
 
 
 
By:
 
 
By:
 
 
 
 
 
 
Name:
 
 
Name:
 
Title:
 
 
Title:
 
 
 
 
 
 







Exhibit 4

CONTRIBUTION AND ASSUMPTION AGREEMENT

This Contribution and Assumption Agreement (this “ Agreement ”) is entered into as of March 1, 2017, by and between MPLX GP LLC, a Delaware limited liability company (“ MPLX GP ”), and MPLX LP, a Delaware limited partnership (“ MPLX ”), pursuant to that certain Membership Interests Contributions Agreement, dated March 1, 2017, to which MPLX GP and MPLX are parties (the “ Contributions Agreement ”). Capitalized terms used and not defined herein have the meanings given to such terms in the Contributions Agreement.

In accordance with Section 2.6 of the Contributions Agreement, for good and valuable consideration, the receipt and sufficiency of which is acknowledged, MPLX GP hereby contributes, assigns, transfers, conveys and delivers the MPLX GP Membership Interests to MPLX, free and clear of all liens, and MPLX hereby unconditionally and absolutely acquires, accepts and assumes from MPLX GP the MPLX GP Membership Interests.

To have and to hold the MPLX GP Membership Interests unto MPLX, its successors and assigns, forever.

Notwithstanding anything herein to the contrary, nothing herein shall in any way vary the covenants, agreements, representations and warranties of any of the parties set forth in the Contributions Agreement. If there is a conflict between the provisions of the Contributions Agreement and the provisions of this Agreement, the provisions of the Contributions Agreement shall control.

This Agreement shall be binding upon, inure to the benefit of, and be enforceable by MPLX GP, MPLX and their respective successors and assigns. This Agreement may not be amended except by an instrument in writing authorized and signed by MPLX GP and MPLX.

In witness whereof, the parties have executed this Agreement as of the date set forth above.

MPLX GP LLC
 
MPLX LP
 
 
 
By: MPLX GP LLC, its General Partner
 
 
 
 
 
By:
 
 
By:
 
 
 
 
 
 
Name:
 
 
Name:
 
Title:
 
 
Title:
 
 
 
 
 
 
    






Exhibit 10.1
SECOND AMENDED AND RESTATED EMPLOYEE SERVICES AGREEMENT
THIS SECOND AMENDED AND RESTATED EMPLOYEE SERVICES AGREEMENT (as amended, restated and otherwise modified, the "Agreement") is made by Marathon Petroleum Logistics Services LLC, a Delaware limited liability company (" MPLS "), MPLX GP LLC, a Delaware limited liability company (" GP "), and Marathon Pipe Line LLC, a Delaware limited liability company (" MPL ").
WHEREAS, MPLS is engaged in the business of providing employee related services for the operation of midstream assets;
WHEREAS, GP is the general partner of MPLX LP, a Delaware limited partnership engaged in the business of owning and operating midstream petroleum industry assets including crude oil and refined products pipelines and storage facilities;
WHEREAS, MPL is a subsidiary of MPLX LP and is engaged in the business of pipeline transportation and storage of crude oil and refined products;
WHEREAS, the Parties deem it to be appropriate and in the best interests of each of them that MPLS provide certain Services to GP and MPL on the terms and conditions set forth herein;
WHEREAS, it is the intent of the Parties that such services be provided based on an arm's-length standard, and the Fees set forth on Annex B are intended to reflect such standard.
WHEREAS, on October 1, 2012 (the “ Effective Date ”), MPLS, GP, and MPL entered into that certain Employee Services Agreement (the “ ESA ”);

WHEREAS, on January 1, 2016, MPLS, GP, and MPL entered into the First Amendment to Employee Services Agreement, , as subsequently amended pursuant to that certain Amended and Restated Employee Services Agreement dated December 22, 2016 which together with the ESA constitute the “Original ESA”;

WHEREAS, pursuant to Section 12.3 of the Original ESA, MPLS, GP, and MPL now desire to amend and restate the terms and conditions of the Original ESA;

NOW, THEREFORE, in consideration of the forgoing and the mutual agreements contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereby agree as follows:
ARTICLE I
DEFINITIONS

1.1 Definitions . As used in this Agreement:
(a)    " Additional Services " means the Additional Services as defined in Section 3.2. Any Additional Services provided pursuant to this Agreement shall be deemed to be "Services" under this Agreement.

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(b)    " Affiliate " means, as to any specified Person, any other Person that, directly or indirectly through one or more intermediaries or otherwise, controls, is controlled by or is under common control with the specified Person. For purposes of this definition, "control" of a Person means the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of such Person, whether by contract or otherwise. Notwithstanding the foregoing, neither MPL nor any of the MPL Affiliated Entities shall be deemed to be Affiliates of MPLS or any of the MPLS Affiliated Entities.
(c)    " Agreement " means this Amended and Restated Employee Services Agreement and all Annexes attached and all amendments, modifications and changes thereto.
(d)    " Authorized Representative " means, for each Party, any of the individuals listed on Annex A under the name of such Party.
(e)    " Availed Party " has the meaning set forth in Section 8.2(a).
(f)    " 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 plant s 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 (i) has been published or has otherwise become available to the general public as part of the public domain without breach of this Agreement, (ii) 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 (iii) was developed independently of information furnished or made available to the receiving Party as contemplated under this Agreement.
(g)    " Default Rate " means the rate per annum equal to the prime rate as established by Citibank, N. A. from time to time, plus 2.0%, compounded monthly.
(h)    " Effective Date " means October 1, 2012.
(i)    " Expenses " has the meaning set forth in Section 6.1.
(j)    " Fees " for the Services shall be as set forth on Annex B.
(k)    " GP " has the meaning set forth in the first paragraph of this Agreement.

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(l)    " GP Indemnified Party " means GP and each of its directors, managers, officers, employees and agents, and each of the heirs, executors, successors and assigns of any of the foregoing.
(m)    " Indemnified Party " means a GP Indemnified Party, a MPL Indemnified Party or a MPLS Indemnified Party, as the case may be.
(n)    " Indemnifying Party " means a Party providing indemnification to another Party in accordance with the terms of this Agreement.
(o)    " Losses " means any damages, penalties, losses and expenses, including reasonable attorney fees, investigation and litigation expenses, incurred by an Indemnified Party.
(p)    '" MPL " has the meaning set forth in the first paragraph of this Agreement.
(q)    " MPL Affiliated Entity " means MPLX LP and each of MPLX LP's direct and indirect subsidiaries other than MPL.
(r)    " MPL Indemnified Party " means MPL, each MPL Affiliated Entity and each of their respective directors, managers, officers, employees and agents, and each of the heirs, executors, successors and assigns of any of the foregoing.
(s)    " MPLS " has the meaning set forth in the first paragraph of this Agreement.
(t)    " MPLS Affiliated Entity " means Marathon Petroleum Company LP and each of its direct and indirect subsidiaries other than MPLS.
(u)    " MPLS Indemnified Party " means MPLS, each MPLS Affiliated Entity and each of their respective directors, managers, officers, employees and agents, and each of the heirs, executors, successors and assigns of any of the foregoing.
(v)    " Omnibus Agreement'' means that certain Omnibus Agreement to be entered into by and among Marathon Petroleum Corporation, Marathon Petroleum Company LP, MPL Investment LLC, MPLX Pipe Line Holdings LP, MPLX LP, MPLX GP LLC, MPLX Operations LLC, MPLX Terminal and Storage LLC, Marathon Pipe Line LLC and Ohio River Pipe Line LLC.
(w)    " Party " means MPLS, GP or MPL, as applicable. " Parties " means MPLS, GP and MPL, collectively.
(x)    " Person " means a natural person, corporation, partnership, limited liability company, joint stock company, trust, estate, joint venture, union, association or unincorporated organization, governmental authority or any other form of business or professional entity.
(y)    " Representatives " has the meaning set forth in Section 8.1.
(z)    " Security Regulations " has the meaning set forth in Section 8.2(a).
(aa)    " Services " means the Services generally described on Annex B and any other Service provided by MPLS or any of its Affiliates pursuant to this Agreement.

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(bb)    " Systems " has the meaning set forth in Section 8.2(a).
(cc)    '" Term " has the meaning set forth in Section 2.1.
(dd)    " Third Party "' means a Person that is not a Party or an Affiliate of a Party.
1.2 Interpretation . In this Agreement, unless the context clearly indicates otherwise:
(a)    words used in the singular include the plural and words used in the plural include the singular;
(b)    references to any Person include such Person's successors and assigns but, if applicable, only if such successors and assigns are permitted by this Agreement, and a reference to such Person's "Affiliates" shall be deemed to mean such Person's Affiliates after the Effective Date;
(c)    any reference to any gender includes the other gender;
(d)    the words "include," "includes" and "including" shall be deemed to be followed by the words "without limitation";
(e)    any reference to any Article, Section or Annex means such Article or Section of, or such Annex to, this Agreement, as the case may be, and references in any Section or definition to any clause means such clause of such Section or definition;
(f)    the words "herein," "hereunder," "hereof," "hereto" and words of similar import shall be deemed references to this Agreement as a whole and not to any particular Section or other provision hereof;
(g)    any reference to any agreement, instrument or other document means such agreement, instrument or other document as amended, supplemented and modified from time to time to the extent permitted by the provisions thereof and by this Agreement;
(h)    any reference to any law (including statutes and ordinances) means such law (including all rules and regulations promulgated thereunder) as amended, modified, codified or reenacted, in whole or in part, and in effect at the time of determining compliance or applicability;
(i)    relative to the determination of any period of time, "from" means "from and including," "to" means "to but excluding" and ''through" means "through and including";
(j)    if there is any conflict between the provisions of the main body of this Agreement and the Annexes hereto, the provisions of the main body of this Agreement shall control unless explicitly stated otherwise in such Annex;
(k)    the titles to Articles and headings of Sections contained in this Agreement have been inserted for convenience of reference only and shall not be deemed to be a part of or to affect the meaning or interpretation of this Agreement;
(l)    any portion of this Agreement obligating a Party to take any action or refrain from taking any action, as the case may be, shall mean that such Party shall also be obligated to cause its relevant Affiliates to take such action or refrain from taking such action, as the case may be (and, accordingly, if Services are provided by Affiliates of MPLS, references to "MPLS" shall be deemed to be references to such Affiliates which provide the Services under this Agreement);

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(m)    unless otherwise specified in this Agreement, all references to dollar amounts herein shall be in respect of lawful currency of the United States; and
(n)    the language of this Agreement shall be deemed to be the language the Parties hereto have chosen to express their mutual intent, and no rule of strict construction shall be applied against either Party.
ARTICLE II
TERM

2.1 Term . The term of this Agreement shall commence on the Effective Date and end on September 30, 2017. The term shall automatically be renewed thereafter on a year to year basis thereafter, provided that, subject to Article X, either party may terminate this Agreement upon 180 days written notice to the other. The initial term and any renewals thereof are referred as the "Term".
ARTICLE III
PERFORMANCE OF SERVICES

3.1 General .
(a)     During the Term, and subject to the terms and conditions of this Agreement, MPLS will use commercially reasonable efforts to provide, or cause to be provided, on behalf of the GP and for the benefit of MPL and the MPL Affiliated Entities, the Services to MPL and the MPL Affiliated Entities. Unless specifically provided to the contrary on Annex B, all Services provided pursuant to this Agreement shall be performed or provided, as applicable: (i) with the use of reasonable care;(ii) consistent with this Agreement and in substantially the same manner (including as to level, quality and timeliness) as such Services have been provided by MPL's former employees prior to the Effective Date; (iii) in material compliance with applicable laws, rules and regulations; and (iv) with substantially the same priority under comparable circumstances as it provides such services to itself and its Affiliates. All Services performed or provided by MPLS shall be under the direction, supervision and control of the GP.
(b)    Notwithstanding anything to the contrary in this Agreement, neither MPLS nor any of its Affiliates, shall be required to perform Services or take any actions relating thereto that conflict with or violate any applicable law, contract, license, sublicense, authorization, certification or permit.
(c)    MPLS will provide such suitably qualified and experienced personnel to GP for the performance of Services as MPLS is able to make available to GP, and GP will have the right to approve such personnel. In the event that MPLS is unable to provide suitably qualified and experienced personnel, as determined in good faith by GP, GP may engage (or hire a third party to engage) personnel to provide the relevant Services.
3.2 Additional Services . If GP or MPL reasonably determines that additional services (not listed on Annex B) of the type that are customarily required by similarly situated companies in the midstream petroleum industry are necessary to conduct the business of MPL, then GP or MPL may provide written notice thereof to MPLS in accordance with Section 3.3. Upon receipt of such notice by MPLS, if MPLS is willing, in its sole discretion, to provide such additional service during the Term, the Parties will negotiate in good faith an amendment to Annex B to include the additional service (each such service an " Additional Service "), the terms and conditions for the provision of each Additional Service and the Fees payable to

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MPLS for each Additional Service, such Fees to be determined with the intent that they reflect an arm's-length standard.
3.3 Modification; Third Party Providers .
(a)     Any requests or other communications from a Party to another Party regarding (i) the Services, (ii) any modification or alteration to the provision of the Services or (iii) the provision of Additional Services must be made by an Authorized Representative (it being understood that the receiving Party shall not be obligated to agree to any modification or alteration requested thereby).
(b)    Each Party acknowledges and agrees that certain of the Services to be provided under this Agreement have been, and will continue to be provided to GP or MPL by Third Parties designated by MPLS. To the extent so provided, MPLS shall use commercially reasonable efforts to (i) cause such Third Parties to provide such Services under this Agreement and (ii) enable GP, MPL and the MPL Affiliated Entities to avail themselves of such Services; provided, however , that if any such Third Party is unable or unwilling to provide any such Services, the Parties agree to use their commercially reasonable efforts to determine the manner in which such Services can best be provided. It is acknowledged and agreed that any costs or expenses to be incurred in connection with obtaining Services from a Third Party shall be paid by GP or MPL; provided that MPLS shall use commercially reasonable efforts to communicate in advance the expected costs or expenses to be incurred.
3.4 Disclaimer of Warranties; Force Majeure .
(a)    Except as expressly set forth in this Agreement, to the fullest extent permitted by applicable law: (i) GP and MPL acknowledge and agree that MPLS makes no warranties of any kind with respect to the Services; and (ii) MPLS expressly disclaims all warranties, expressed or implied, of any kind with respect to the Services, including any warranty of non-infringement, merchantability, fitness for a particular purpose or conformity to any representation or description as to the Services provided hereunder. EXCEPT AS EXPRESSLY SET FORTH IN THIS AGREEMENT, THE SERVICES WILL BE PROVIDED AS IS, WHERE IS, WITH ALL FAULTS, AND WITHOUT WARRANTY OF ANY KIND, EXPRESS OR IMPLIED, INCLUDING ANY WARRANTY OF NON-INFRINGEMENT, MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, CONFORMITY TO ANY REPRESENTATION OR DESCRIPTION, TITLE OR ANY OTHER WARRANTY WHATSOEVER.
(b)    If any Party is prevented from or delayed in complying, either totally or in part, with any of the terms or provisions of this Agreement, excluding any obligation to make payments hereunder, by reason of fire, flood, storm, strike, walkout, lockout or other labor trouble or shortage, delays by unaffiliated suppliers or carriers, shortages of fuel, power, raw materials or components, equipment failure, any law, order, proclamation, regulation, ordinance, demand, seizure or requirement of any governmental authority, riot, civil commotion, war, rebellion, act of terrorism, nuclear or other accident, explosion, casualty, pandemic, or act of God, or act, omission or delay in acting by any governmental or military authority or Third Party or any other cause, whether or not of a class or kind listed in this sentence, beyond the reasonable control and without the fault of the affected Party (each a " Force Majeure Event "), then upon notice to the other Parties, the affected provisions and/or other requirements of this Agreement shall be suspended during the period of such Force Majeure Event and, unless otherwise set forth herein to the contrary, the Party affected by the Force Majeure Event shall have no liability to the other Parties or any of their Affiliates or any other Person in connection therewith. Upon becoming aware of a Force Majeure Event, the Party affected

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by the Force Majeure Event shall promptly notify the other Parties in writing of the existence and anticipated duration of such Force Majeure Event. Each Party shall use commercially reasonable efforts to promptly mitigate or overcome such Force Majeure Event as soon as possible; provided, however , that nothing in this Section 3.4(b) will be construed to require the settlement of any strike, walkout, lockout or other labor dispute on terms which, in the reasonable judgment of the affected Party, are contrary to its interest. It is understood that the settlement of a strike, walkout, lockout or other labor dispute will be entirely within the discretion of the affected Party. If MPLS is unable to provide any of the Services due to a Force Majeure Event, each Party shall use commercially reasonable efforts to cooperatively seek a solution that is mutually satisfactory to the Parties. GP and MPL shall have the right, but not the obligation, to engage subcontractors to perform any such Services that MPLS is unable to provide for the duration of the Force Majeure Event; provided, however , that any Fees paid or payable by MPL to MPLS under this Agreement shall be reduced (or refunded, if applicable) on a dollar-for-dollar basis by any amounts paid by or on behalf of MPL to any subcontractors with respect to any Services that MPLS is unable to perform as a result of a Force Majeure Event. For the avoidance of doubt, if GP or MPL engages subcontractors to perform any Services during a Force Majeure Event, MPLS shall not be required to refund, or otherwise be liable for, any amounts in excess of the aggregate Fees paid or owed to MPLS with respect to such Services during the period of the Force Majeure Event.
ARTICLE IV
COOPERATION

4.1 Cooperation . Each Party shall use good faith efforts to cooperate with the other Parties in all matters relating to the provision and receipt of the Services, including providing in a timely manner any information, documentation, approvals and acceptances reasonably requested by the Parties, other than information and documentation protected by attorney-client privilege.
4.2 Consents .
(a)     Each Party shall provide reasonable cooperation to obtain all Third Party consents for any Third Party software or other Third Party intellectual property related to the provision of the Services sufficient to enable MPLS to perform the Services in accordance with this Agreement; provided, however , that no Party shall be obligated under this Agreement to pay any consideration (other than de minimis transfer fees), grant any concession or incur any liability to any Third Party to obtain any such Third Party's consent.
(b)    If any Third Party consent or approval required for the provision of Services hereunder is not obtained, then, unless and until such Third Party consent or approval is obtained, the Parties shall, to the extent practicable, cooperate with each other in achieving a reasonable alternative arrangement for GP and MPL to obtain such Services.

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ARTICLE V
FEES

5.1 Fees . GP and MPL shall pay MPLS the Fees for the Services as set forth on Annex and in accordance with Article VI.
5.2 Taxes . To the extent required by applicable law, MPLS shall add to any Fees due under this Agreement amounts equal to any sales, use or similar taxes, however designated or levied, based upon the provision of the Services. MPLS shall be solely responsible for the collection and remittance of any such taxes to the appropriate tax authorities. The Parties shall cooperate with each other to minimize any such taxes to the extent reasonably practicable. If additional taxes are determined to be due with respect to the Services provided hereunder as a result of an audit by any applicable tax authority, MPL agrees to reimburse MPLS for the additional taxes due from MPLS including interest and penalty. MPL shall have the right to contest with the tax authority at MPL's sole expense the amount of any taxes or the result of any audit. MPLS will be responsible for any penalty or interest resulting from its failure to remit any invoiced taxes. Notwithstanding anything in this Agreement to the contrary, this Section 5.2 shall, to the fullest extent permitted by applicable law, survive the termination of this Agreement and remain in effect until the expiration of the relevant statutes of limitations.
5.3 Adjustments . In the event of the termination of this Agreement prior to the scheduled expiration of the Term (a) with respect to any Services for which the Fee for such Services is charged as a flat monthly rate, if termination occurs other than the end of the month, the Fee tor that month shall be prorated to reflect a partial month, and (b) with respect to any other Services, all amounts due pursuant to the terms hereof with respect to the Services shall be appropriately prorated and reduced to reflect such shortened period during which such Services are actually provided, and MPLS shall refund to GP or MPL the appropriate prorated amount for any such Services that have been paid for in advance. Notwithstanding the immediately preceding sentence, to the extent any amounts due or advances made hereunder related to costs or expenses that have been or will be incurred and that cannot be recovered by MPLS, such amounts due or advances made shall not be prorated or reduced and MPLS shall not be required to refund any prorated amount for such costs or expenses; and GP or MPL shall reimburse MPLS for any Third Party cancellation or similar charges incurred as a result of such early termination.
ARTICLE VI
INVOICE AND PAYMENT; AUDIT

6.1 Invoices and Payment . Within 20 days following the end of each month during the Term, MPLS will submit to MPL for payment a written statement of amounts due under this Agreement for such month. The statement will set forth the Fees, in the aggregate and itemized, based on the descriptions set forth on Annex B. Each statement will contain reasonably satisfactory documentation in support of such amounts as specified therein and such other supporting detail as the other Party may reasonably require to validate such amounts due. Except as otherwise provided in this Agreement, GP and MPL shall reimburse MPLS in accordance with this Article VI for all out-of-pocket costs and expenses actually paid by MPLS to Third Parties on behalf of MPL in connection with providing the Services (" Expenses ").

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6.2 Timing of Payment; No Offsets . MPL will pay all amounts due pursuant to this Agreement within 10 days after the receipt of the invoice therefor. MPL shall not offset any amounts owing to it by MPLS or any of its Affiliates against amounts payable hereunder.
6.3 Non-Payment . If MPL fails to pay the full amount of any invoice within 30 days after its receipt of the invoice, such failure shall be considered a material default under this Agreement for purposes of Section 10.2. Payments made after the date they are due shall bear interest at the Default Rate.
6.4 Payment Disputes . Subject to Section 6.5, MPL may object to any amounts for any Service invoiced to it at any time before or after payment is made, provided such objection is made in writing to MPLS within 90 days following the end of the calendar year in which such Services were performed. MPL shall timely pay the disputed items in full while resolution of the dispute is pending; provided, however , that MPLS shall pay interest at the Default Rate on any amounts it is required to return to GP or MPL upon resolution of the dispute. Payment of any amount shall not constitute approval thereof. Any dispute under this Section 6.4 shall be resolved in accordance with the provisions of Section 12.2.
6.5 Audit Rights .
(a)     MPL may, at its own cost and expense, audit (or cause an independent Third Party auditor to audit) the books and records of MPLS to the extent necessary to determine MPLS's compliance with this Agreement with respect to Fees and Expenses charged or the performance of MPLS 's obligations under this Agreement. MPL shall have the right to conduct such audit no more than once with respect to each calendar year during the Term; provided, however , that any such audit shall not be commenced later than 12 months after the end of the calendar year to be audited.
(b)    Any audit shall be conducted during regular business hours and in a manner that does not unreasonably interfere with the operations of MPLS. MPL shall provide notice to MPLS not less than 30 days prior to the commencement of the audit and shall specify the date on which the audit will commence. If the audit concludes that an overpayment or underpayment has occurred during the audited period, then MPL may raise an objection pursuant to Section 6.4.
ARTICLE VII
CONTROL OF SERVICES; OWNERSHIP OF ASSETS

7.1 Control of Services . Notwithstanding anything to the contrary in this Agreement, GP, for itself and for MPL and the MPL Affiliated Entities, shall at all times have exclusive authority to manage and control the business and operations of MPLS. In connection with managing and controlling the business and operations of MPLS, the provision of the Services shall be under the ultimate direction, control and supervision of GP.


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7.2 Employee Status. During the Term of this Agreement :
(a)    No employee of MPLS shall be deemed an employee of GP or MPL by reason of such employee's involvement in providing Services provided hereunder. MPLS shall bear the sole responsibility for payment of each such employee's wages, benefits, all withholding obligations to federal, state and local taxation and insurance authorities and all other costs and expenses associated with such employees, including workers' compensation expense.
(b)    Subject to the rights of GP to direct and control the performance and provision of the Services as set forth in this Agreement, MPLS shall serve as the employer directly controlling the personnel that it provides to perform such Services and shall retain the exclusive right to review employees' performance, determine employees' compensation and benefits, discipline employees and determine whether or not to continue employees' employment.
(c)    Notwithstanding anything in this Agreement to the contrary, no provision of this Agreement (i) shall be construed as granting employees any employment rights for a specific duration or constraining MPLS's right to terminate the employment relationship with any of its employees, or (ii) affecting the ability of any MPLS employee to be considered for transfers or promotions to positions listed on any internal job posting system.
7.3 Assets . All procedures, methods, systems, strategies, tools, equipment, facilities and other resources used by a Party or any of its Affiliates in connection with the provision of the Services hereunder shall remain the property of such Party or its Affiliates and, except as otherwise provided herein, shall at all times be under the sole direction and control of such Person. No license under any patents, know-how, trade secrets, copyrights or other rights is granted by this Agreement or any disclosure in connection with this Agreement by any Party.
ARTICLE VIII
CONFIDENTIALITY; SECURITY

8.1 Confidentiality .
(a)    From and after the Effective Date, each Party shall hold and shall cause its respective Subsidiaries and Affiliates and its and their directors, managers, officers, employees, agents, consultants, advisors, and other representatives (collectively, " Representatives ") to hold all Confidential Information of another Party 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 except in connection with the performance of the Services hereunder, and shall not release or disclose such Confidential Information to any other Person, except its Representatives. 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

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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 nonetheless 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 required to be disclosed by the subpoena or other 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 8.1 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, to the fullest extent permitted by applicable law, apply to a court for an injunction to prevent breaches of this Section 8.1 and to enforce specifically the terms and provisions of this Section 8.1. Notwithstanding any other section hereof, the provisions of this Section 8.1 shall survive the termination of this Agreement.
8.2 System Security .
(a)    If any Party is given access to another Party's computer systems or software (collectively, " Systems ") in connection with the Services, the Party given access (the " Availed Party ") shall comply with all of the other Party 's system security policies, procedures and requirements that have been provided to the Availed Party in advance and in writing (collectively, the " Security Regulations "), and shall not tamper with, compromise or circumvent any security or audit measures employed by such other Party. The Availed Party shall access and use only those Systems of the other Party for which it has been granted the right to access and use.
(b)    Each Party shall use commercially reasonable efforts to ensure that only those of its personnel who are specifically authorized to have access to the Systems of the other Party gain such access, and each Party shall use commercially reasonable efforts to prevent unauthorized access, use, destruction, alteration or loss of information contained in the Systems, including notifying its respective personnel of the restrictions set forth in this Agreement and of the Security Regulations.
(c)    If, at any time, the Availed Party determines that any of its personnel has sought to circumvent, or has circumvented, the Security Regulations, that any unauthorized Availed Party personnel have accessed the Systems, or that any of its personnel has engaged in activities that may lead to the unauthorized access, use, destruction, alteration or loss of data, information or software of the other Party, the Availed Party shall promptly terminate any such person's access to the Systems and promptly notify the other Party. In addition, such other Party shall have the right to deny personnel of the Availed Party access to its Systems upon notice to the Availed Party in the event that the other Party reasonably believes that such personnel have engaged in any of the activities described in this Section 8.2(c) or otherwise pose a security concern. The Availed Party shall use commercially reasonable efforts to cooperate with the other Party in investigating any apparent unauthorized access to such other Party's Systems.



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ARTICLE IX
NO PARTNERSHIP OR AGENCY RELATIONSHIP

9.1 No Partnership or Agency Relationship: Independent Contractor . Nothing in this Agreement is intended or shall be deemed to constitute a partnership, agency, franchise or joint venture relationship among the Parties or any of their Affiliates. Neither Party shall have power to control the activities and operations of the other Party or its Affiliates, nor to bind or commit the other Party or its Affiliates. MPLS shall at all times be acting as an independent contractor under this Agreement.
ARTICLE X
TERMINATION

10.1 General . Subject to the provisions of Section 10.4, this Agreement shall terminate, and the obligation of MPLS to provide Services shall cease, on the earliest to occur of (a) the date on which the provision of all Services has been terminated by the Parties pursuant to Section 10.2, or (b) the date on which the Term of this Agreement has ended pursuant to Section 2.1.
10.2 Termination . In addition to the termination rights set forth in Section 2.1, and subject to the other provisions of this Article X, each Party shall have the right to terminate this Agreement effective upon delivery of written notice to the other Party if: (a) the other Party makes an assignment for the benefit of creditors, or becomes bankrupt or insolvent, or is petitioned into bankruptcy, or takes advantage of any state, federal or foreign bankruptcy or insolvency act, or if a receiver or receiver/manager is appointed for all or any substantial part of its property and business and such receiver or receiver/manager remains undischarged for a period of 30 days; (b) the other Party materially defaults in the performance of any of its covenants or obligations contained in this Agreement and such default is not remedied to the non-defaulting Party 's reasonable satisfaction within 10 days with respect to a default of any payment obligation or 45 days with respect to the default of any other obligation contained in this Agreement, after receipt of written notice by the defaulting Party informing such Party of such default, or if such default is not capable of being cured within 45 days, if the defaulting Party has not promptly begun to cure the default within such 45-day period and thereafter proceeded with all diligence to cure the same.
10.3 Procedures on Termination . Following termination of this Agreement each Party will cooperate with the other as reasonably necessary to avoid disruption of the ordinary course of the other Party's business. Termination shall not affect any right to payment for Services provided prior to termination.
10.4 Effect of Termination . Upon termination of this Agreement, all rights and obligations of the Parties hereunder shall cease, provided that such termination shall not effect or excuse a Party 's breach of this Agreement prior to termination, and provided further that Article V (with respect to Fees and Taxes and Third Party costs and expenses incurred or attributable to periods prior to termination), Sections 6.1, 6.2, 6.4, 6.5 and 10.3, this Section l 0.4 and Articles I, VII, VIII, XI and XII shall, to the fullest extent permitted by applicable law, survive any termination of this Agreement.


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ARTICLE XI
INDEMNIFICATION

11.1 Indemnification by MPL . MPL shall, to the fullest extent permitted by applicable law, indemnify, defend and hold harmless each of the MPLS Indemnified Parties and the GP Indemnified Parties for any Losses incurred by them in connection with or arising out of: (a) any breach of the payment provisions of this Agreement by MPL; and (b) any Third Party claims arising out of the provision of the Services, except to the extent that such Third Party claims have arisen out of the gross negligence, willful misconduct or bad faith of MPLS or any MPLS Affiliated Entity or their respective directors, managers, officers, or employees.
11.2 Indemnification by MPLS . MPLS shall, to the fullest extent permitted by applicable law, indemnify, defend and hold harmless the GP Indemnified Parties and the MPL Indemnified Parties for any Losses incurred by them in connection with or arising out of: (a) any breach of the payment provisions this Agreement by MPLS; (b) MPLS's or any MPLS Affiliated Entity's gross negligence, willful misconduct or bad faith in the performance of this Agreement; and (c) any Third Party claims arising out of the provision of the Services to the extent that such Third Party claims have arisen out of the gross negligence, willful misconduct or bad faith of MPLS or any MPLS Affiliated Entity or their respective directors, managers, officers, or employees; and (d) any and all actions, suits, or proceedings alleging that any GP Indemnified Party or MPL Indemnified Party, including but not limited to Hardin Street Transportation LLC and Woodhaven Cavern LLC, is an employer or joint employer of any MPLS employee.
11.3 Limitations and Liability . Each Party shall have a duty to mitigate the Losses for which it is responsible hereunder. TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, IN NO EVENT SHALL ANY PARTY OR ANY OF THEIR RESPECTIVE AFFILIATES BE LIABLE FOR ANY SPECIAL, INCIDENTAL, INDIRECT, CONSEQUENTIAL (INCLUDING LOSS OF REVENUES OR PROFITS, LOSS OF DATA, LOSS OF GOODWILL AND LOSS OF CAPITAL, WHETHER OR NOT SUCH PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES), EXEMPLARY OR PUNITIVE DAMAGES OR THE LIKE (EXCEPT TO THE EXTENT THAT SUCH DAMAGES ARE PAID TO A THIRD PARTY AS A RESULT OF A THIRD PARTY CLAIM) ARISING UNDER ANY LEGAL OR EQUITABLE THEORY OR ARISING UNDER OR IN CONNECTION WITH THIS AGREEMENT (OR THE PROVISION OF SERVICES HEREUNDER), ALL OF WHICH ARE HEREBY EXCLUDED BY AGREEMENT OF THE PARTIES REGARDLESS OF WHETHER OR NOT ANY PARTY TO THIS AGREEMENT HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. THESE LIMITATIONS SHALL APPLY NOTWITHSTANDING ANY FAILURE OF ESSENTIAL PURPOSE OF ANY LIMITED REMEDY.
11.4 Indemnification Is Exclusive Remedy . Except for equitable relief and rights pursuant to Article VIII, to the fullest extent permitted by applicable law, the indemnification provisions of this Article XI shall be the exclusive remedy for breach of this Agreement.
11.5 Risk Allocation . Each Party agrees that the Fees charged under this Agreement reflect the allocation of risk between the Parties, including the disclaimer of warranties in Section 3.4(a) and the limitations on liability in Section 11.4. Modifying the allocation of risk from what is stated here would affect the Fees charged by MPLS, and in consideration of those Fees, each Party agrees to the stated allocation of risk.

13



11.6 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 XI, it will provide notice thereof in writing to the Indemnifying Party, specifying the nature of and specific basis for such claim to the extent then known by the Indemnified Party.
(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 XI, 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; and 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 XI, 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 11.6. 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 XI; 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, but the Indemnifying Party shall have the right to retain sole control over such defense and counterclaims.
(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 Parties.

14



(e)    Notwithstanding anything to the contrary hereunder, no cause of action, dispute or claim for indemnification may be asserted against any Party or submitted to arbitration or legal proceedings which accrued more than two years after the later of (i) the occurrence of the act or event giving rise to the underlying cause of action, dispute or claim and (ii) the date on which such act or event was, or should have been, in the exercise of reasonable due diligence, discovered by the Party asserting the cause of action, dispute or claim.
ARTICLE XII
MISCELLANEOUS

12.1 Entire Agreement . This Agreement, including the Annexes hereto, constitutes the entire agreement between the Parties with respect to the subject matter of this Agreement, and supersedes all prior agreements, negotiations, discussions, understandings and commitments, written or oral, between the Parties with respect to such subject matter.

12.2 Choice of Law; Mediation; Submission to Jurisdiction .
(a)    This Agreement shall be governed by and construed in accordance with the laws of the State of Delaware, without regard to principles of conflict of laws. The Parties hereby declare that it is their intention that this Agreement shall be regarded as made under the laws of the State of Delaware and that the laws of said State shall be applied in interpreting its provisions in all cases where legal interpretation shall be required. Each of the Parties agrees (a) that this Agreement involves at least $100,000.00, and (b) that this Agreement has been entered into by the Parties in express reliance upon 6 Del. C. § 2708. Each of the Parties hereby irrevocably and unconditionally agrees (i) to be subject to the exclusive jurisdiction of the courts of the State of Delaware and of the federal courts sitting in the State of Delaware, and (ii) (A) 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 (B) that, to the fullest extent permitted by applicable law, service of process may also be made on such Party by prepaid certified mail with a proof of mailing receipt validated by the United States Postal Service constituting evidence of valid service, and that service made pursuant to (b) (A) or (B) above shall, to the fullest extent permitted by applicable law, have the same legal force and effect as if served upon such Party personally within the State of Delaware. 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.
(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. In connection with any mediation pursuant to this Section 12.2, the mediator shall be jointly appointed by the Parties and the mediation shall be conducted in Findlay, Ohio unless otherwise agreed by the Parties. All costs and expenses of the mediator appointed pursuant to this section shall be shared equally by the Parties. 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, shall govern any mediation pursuant to this section. In the mediation, each Party shall be represented by one or more

15



senior representatives who shall have authority to resolve any disputes. If a dispute has not been resolved within 30 days after the receipt of the Mediation Notice by a Party, then any Party may refer the resolution of the dispute to litigation.
12.3 Amendment . This Agreement may only be amended, modified or supplemented by a written instrument signed by an Authorized Representative of each of MPLS, GP and MPL.
12.4 Waiver . Any term or provision of this Agreement may be waived, or the time for its performance may be extended, by the Party or Parties entitled to the benefit thereof. Any such waiver shall be validly and sufficiently given for the purposes of this Agreement if, as to any Party, it is in writing signed by an authorized representative of such Party. The failure of any Party to enforce at any time any provision of this Agreement shall not be construed to be a waiver of such provision, or in any way to affect the validity of this Agreement or any part hereof or the right of any Party thereafter to enforce each and every such provision. No waiver of any breach of this Agreement shall be held to constitute a waiver of any other or subsequent breach.
12.5 Partial Invalidity . Wherever possible, each provision hereof shall be interpreted in such a manner as to be effective and valid under applicable law, but in case any one or more of the provisions contained herein shall, for any reason, be held to be invalid, illegal or unenforceable in any respect, such provision or provisions shall be ineffective to the extent, but only to the extent, of such invalidity, illegality or unenforceability without invalidating the remainder of such provision or provisions or any other provisions hereof, unless such a construction would be unreasonable.
12.6 Successors and Assigns . This Agreement shall be binding upon and inure to the benefit of the Parties and their successors and permitted assigns; provided, however , that the rights and obligations of any Party under this Agreement shall not be assignable by such Party without the prior written consent of the other Parties. The successors and permitted assigns hereunder shall include any permitted assignee as well as the successors in interest to such permitted assignee (whether by merger, liquidation (including successive mergers or liquidations) or otherwise).
12.7 Third Party Beneficiaries . Except to the extent otherwise provided in Article XI with respect to the rights of the MPLS Indemnified Parties, the GP Indemnified Parties and the MPL Indemnified Parties, the provisions of this Agreement are solely for the benefit of the Parties and their respective successors and permitted assigns and shall not confer upon any Third Party any remedy, claim, liability, reimbursement or other right.
12.8 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:


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if to    Marathon Petroleum Logistics Services LLC
539 South Main St.
Findlay, OH 45840
Attention: President
Email address: gpshaffner@marathonpetroleum.com

if to    MPLX GP LLC
200 East Hardin St.
Findlay, OH 45840
Attention: President
Email address: glpeiffer@marathonpetroleum.com

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

or, to such other address as such Party may indicate by a notice delivered in accordance with this Section 12.8.

[SIGNATURES APPEAR ON NEXT PAGE]


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IN WITNESS WHEREOF, the Parties have caused this Agreement to be signed by their authorized representatives as of the date(s) set forth below.
Marathon Petroleum Logistics Services LLC
 
 
By:
/s/ John S. Swearingen
 
John S. Swearingen, President
 
 
Date:
February 26, 2017
 
 
 
 
MPLX GP LLC
 
 
By:
/s/ Donald C. Templin
 
Donald C. Templin, President
 
 
Date:
February 28, 2017
 
 
 
 
Marathon Pipe Line LLC
 
 
By:
/s/ Timothy J. Aydt
 
Timothy J. Aydt, President
 
 
Date:
March 1, 2017
 
 
 
 
 
 
 
 
 
 



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Annex A
AUTHORIZED REPRESENTATIVES


As to:
Marathon Petroleum Logistics Services LLC
J. S. Swearingen
R. P. Nichols

MPLX GP LLC
D. C. Templin
P. K. M. Beall

Marathon Pipe Line LLC
T. J. Aydt
S. M. Lyon


A-1




Annex B
SERVICES AND FEES

The Fees for the Services will reflect the employee based costs incurred by MPLS to provide such Services plus an additional monthly cost. They will be calculated and paid in the following manner: As part of the monthly invoice, MPLS will show the employee salary and wage costs (including accruals) incurred for such month. The monthly invoice will be the sum of (a) the amount in the previous sentence, plus (b) 1/12 of the estimated total benefits cost for the applicable calendar year with respect to each monthly invoice issued prior to January 1, 2017 and the actual benefits and accruals for monthly invoices issued on and after January 1, 2017, plus (c) the bonus accrual, including burden, for MPLS employees for such month, plus (d) the MPC stock-based compensation expense attributed to MPLS for such month, plus (e) $125,000.
With respect to each monthly invoice issued prior to January 1, 2017, and at the end of each calendar quarter, MPLS will compare the latest projection of benefit costs to be charged for the year to the estimated total year cost charged under (b) above. The net value of this "true-up" (whether positive or negative) of these two amounts will be an adjustment to the remaining monthly invoices for the calendar year. At the end of each calendar quarter, MPLS will calculate a "true-up" of the total benefits cost charged for the year under (b) above compared to the actual cost of such benefits. The net value of such "true-up"(whether positive or negative) will be an adjustment to the December invoice to MPL. Effective January 1, 2017, MPLS, in its sole and reasonable discretion, shall show the actual benefits and accruals for each employee to be provided by MPLS hereunder for such month multiplied by the Time Allocation applicable to each such employee.
As of the Effective Date, and as needed on a quarterly basis, MPLS shall, in its sole, reasonable discretion, establish allocations for the employees provided hereunder as of the date such allocations are made (each, a “Time Allocation”). For example, on the date the allocations are established for a given quarter, MPLS determines the percentage of a given MPLS employee’s time spent providing finance related services to MPL is 80%. The Time Allocation for any such employee will be 80% until the allocations are reset which shall be done quarterly or as needed based on the percentage of the time such employee is engaged in the provision of such Services to MPLX. Such Time Allocation, as applicable, shall be used by MPLS for determining the employee salary and wage costs incurred for the applicable employees.
With respect to each monthly invoice issued prior to January 1, 2017, MPLS, in its sole and reasonable discretion, shall calculate an appropriate allocated bonus accrual, including burden, consistent with its good faith estimate of the allocation of employees provided by MPLS hereunder on a total headcount basis (the “Bonus Accrual”). For the month in which any bonus payment is made to the employees provided by MPLS hereunder, MPLS will calculate a “true-up” of the Bonus Accrual charged for the previous year compared to the actual costs of bonuses, including burden, paid to such employees (the resulting “true-up” of those two amounts, whether positive or negative, being referred to herein as the “Bonus True-Up”).


B-2




Effective January 1, 2017, MPLS, in its sole and reasonable discretion, will show the actual cash bonuses and accruals incurred for such month for personnel provided by MPLS to MPL under this Agreement multiplied by the applicable Time Allocations for such personnel.

For the avoidance of doubt, the Parties agree that the Fees for the remainder of calendar month of the Effective Date will be calculated in the manner above and will be a pro-rata portion of such amounts based on the number of days remaining in such month from the Effective Date.
The Services will include the following, as required or requested by MPL:
1.     Tariff administration: Making all tariff filings; monitoring and updating all tariff schedules, including joint tariffs; monitoring and advising on FERC and other regulatory impacts on tariffs and tariff procedures; advising management and customers on tariffs.
2.     Health, Environment, Safety & Security: Make all regulatory contacts, monitor and develop and lead all safety and security programs. Develop and present all safety and security projects.
3.     Operations: Run and maintain the daily field operations of the pipeline systems and stations. Schedule each pipeline system and work closely with the shippers. Produce pipeline tickets and bill out tariff changes to shippers monthly. Monitor measurement on all pipeline systems. Direct the pipeline integrity, tank integrity and corrosion programs. Direct the pipeline maintenance and reliability programs. Work with Marathon Petroleum Company LP's engineering group to develop and monitor capital and expense projects.
4.     Right of way & easement administration: Work with the landowners along the right of way on easements and clearing projects. Partner with each state "811" program in which MPL operates. Direct construction and maintenance crews.
5.     Pipeline control & SCADA system: Remotely operate the pipeline systems from the Operations Center in Findlay, Ohio and back-up Center in Bluffton, Ohio using the SCADA system and other computer systems.
6.     Emergency response: Ensure that emergency response plans are in place for each pipeline system and ensure that employees are trained and ready to response to an incident if needed.
7.     Training: Train all new hourly field employees at the training center. Provide continuous training for all field employees at the center. Ensure that all technicians who need to be OQ qualified meet PHMSA guidelines.
8.     Finance & administration: Pay all monthly bills, provide payroll services and monitor MPL's usage of company vehicles. Close the financial books on a monthly basis and provide assistance to Marathon Petroleum Corporation financial reporting group on external SEC filings. Provide cost accounting and budgeting services for all of the MPL field regions and Findlay process departments. Prepare and file all FERC Form 6 reports for each company that MPL operates. Monitor and update all fixed asset records for all companies MPL operates.

B-2




9.    Human Resources: Work with human resources to assist in understanding and following applicable policies. Assist in hiring services for the hourly field technician work force when needed.
10.     Business Operations and Planning: Assist with strategic planning for MPL. Advise regarding resource allocation for MPL. Monitor the MPL capital and expense budget. Work with finance and administration, and other Marathon Petroleum Company LP departments on the preparation and analysis of monthly, quarterly and annual financial and cash flow forecasts. Consulting and advisor services not specified elsewhere.
11. Financial Planning: General financial planning for MPL, including budgeting, forecasting, financial modeling and analytical services.


B-2



Exhibit 10.2
TRANSPORTATION SERVICES AGREEMENT

THIS TRANSPORTATION SERVICES AGREEMENT (this “Agreement”) is dated as of January 1, 2015, by and between Hardin Street Transportation LLC, a Delaware limited liability company (“HST”), and Marathon Petroleum Company LP, a Delaware limited partnership (“MPC”), both referred to jointly as the “Parties” and each individually as a “Party”.

RECITALS

WHEREAS, MPC desires to move Crude Petroleum and Products (“Commodities”) on the Pipeline System as defined herein;

WHEREAS, HST intends to provide transportation services with respect to Commodities owned by MPC on the Pipeline System, as further described herein, subject to the terms and conditions of this Agreement;

WHEREAS, HST desires to transport Commodities for MPC on the Pipeline System, subject to the terms and conditions of this Agreement; and

WHEREAS, HST has requested that MPC agree that certain minimum volumes of Commodities will be tendered through the Pipeline System.

NOW THEREFORE, in consideration of the premises and mutual covenants set forth hereinafter, MPC and HST agree as follows:

1.    Definitions

“Affiliate” means, with respect to any Person, any other Person that directly or indirectly through one or more intermediaries controls, is controlled by or is under common control with, the Person in question.

“Applicable Law” means any applicable statute, law, regulation, ordinance, rule, determination, judgment, rule of law, order, decree, permit, approval, concession, grant, franchise, license, requirement, or any similar form of decision of, or any provision or condition of any permit, license or other operating authorization issued by any Governmental Authority having or asserting jurisdiction over the matter or matters in question, whether now or hereafter in effect.

“Barrel” means forty-two (42) U.S. gallons measured at sixty (60) degrees Fahrenheit.

“Business Days” means a Day, other than Saturday or Sunday, when banks are open for business in New York, New York.

“Capacity Restoration” has the meaning set forth in Section 5.4.

“Commodities” has the meaning set forth in the Recitals.





“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.

“Control” means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of a Person, whether through ownership of voting securities, by contract or otherwise.

“Credit Period” has the meaning set forth in Section 3.6.

“Crude Petroleum” means either the direct liquid products of oil wells, or a mixture of the direct liquid products of oil wells with the indirect liquid products of oil or gas wells, including gasoline and liquefied petroleum gases, all of which are of merchantable quality when the American Petroleum Institute (“API”) gravity is 50.9 degrees or less.
“Day” means a period of twenty-four (24) consecutive hours commencing 12:00 a.m. Central Standard Time, or such other period upon which the Parties may agree.

“Deficiency Volume” has the meaning set forth in Section 3.5.

“Deliveries” means the volume of Commodities delivered through the Pipeline System.

“Effective Date” has the meaning set forth in Section 2.1.


2



“Extension Period” has the meaning set forth in Section 2.2.

“FERC” means the Federal Energy Regulatory Commission or any successor governmental agency having jurisdiction over the regulation of common carrier pipelines currently governed by the FERC.

“Force Majeure” means acts of God, fires, floods, storms; compliance with orders of courts or Governmental Authorities; explosions, wars, terrorist acts, riots, strikes, lockouts or other industrial disturbances; accidental disruption of service; breakdown of machinery, storage tanks or pipelines and inability to obtain or unavoidable delays in obtaining material or equipment; and similar events or circumstances that prevent a Party’s ability to perform its obligations under this Agreement, so long as such events or circumstances are beyond the Party’s reasonable control and could not have been prevented by the Party’s due diligence; provided, however, that a Party’s failure to pay any amounts due hereunder shall not constitute a Force Majeure event.

“Force Majeure Notice” has the meaning set forth in Section 4.1.

“Force Majeure Period” has the meaning set forth in Section 4.1.

“Governmental Authority” means any federal, state, local or foreign government or any provincial, departmental or other political subdivision thereof, or any entity, body or authority exercising executive, legislative, judicial, regulatory, administrative or other governmental functions or any court, department, commission, board, bureau, agency, instrumentality or administrative body of any of the foregoing.

“Initial Term” has the meaning set forth in Section 2.2.

“MPC Deliveries” means the volume of Commodities that MPC as the shipper of record delivered through the Pipeline System.

“MPC Termination Notice” has the meaning set forth in Section 4.2.

“Minimum Capacity” has the meaning set forth in Section 3.3.

“Monthly Commitment” has the meaning set forth in Section 3.6.

“Nomination” means a written designation by a Shipper of an approximate quantity of Commodities for transportation from a specified origin point(s) to a specified destination point(s) over a period of one operating month as further outlined in the Tolls.

“Nominated Volume” means, with respect to any period, the volume of Commodities nominated in such period by MPC pursuant to the Tolls.

“Notice Period” has the meaning set forth in Section 7.1.


3



“Operational Modification” has the meaning set forth in Section 6.

“Person” means any individual, partnership, limited partnership, joint venture, corporation, limited liability company, limited liability partnership, trust, unincorporated organization or Governmental Authority or any department or agency thereof.

“Pipeline Segment” refers to any subset or part of a Pipeline System.

“Pipeline System” means the individual pipeline systems listed in Exhibit “B” attached hereto and made a part hereof. When referenced in this agreement, at no time does Pipeline System refer to the aggregation of requirements as the requirements stay with the individual pipeline systems listed in Exhibit “B”.

“Prepaid Transportation Credits” has the meaning set forth in Section 3.6.

“Products” means refined petroleum products, intermediate petroleum products and liquefied petroleum gas (“LPG”) provided they are of merchantable quality.

“Quarter” means the consecutive three (3) calendar month periods, or portion thereof, commencing January 1, April 1, July 1 and October 1 of each year during the Term hereof.

“Quarterly Deficiency Payment” has the meaning set forth in Section 3.5.

“Quarterly Throughput Commitment” means, with respect to a Quarter, a volume of Commodities equal to (a) the Commitment Barrels per Day as shown in Exhibit “B” on the Pipeline System for such Quarter, multiplied by (b) the number of Days in such Quarter. The Quarterly Throughput Commitment will be reduced proportionately for any partial Quarter during the Term.

“Representatives” has the meaning set forth in Section 10.1.

“Suspension Notice” has the meaning set forth in Section 7.1.

“Tolls” mean HST’s rules and regulations governing transportation and associated rates for movements to and from the destinations and origins outlined in Exhibits “B”, “C-1” and “C-2”, under which Commodities are transported through the Pipeline System in alignment with the requirements of this contract.

“Toll Rates” means the rates set forth in the Tolls (Exhibit “B”) for the transportation of Commodities on the Pipeline System.

“Term” has the meaning set forth in Section 2.2.


4



“Termination Notice” has the meaning set forth in Section 4.1.

“Weighted Average Toll Rate” means, with respect to the Pipeline System, the average Toll Rates actually incurred by MPC during any Quarter for transportation of all MPC Deliveries on the Pipeline System for such Quarter.

2.    Effective Date and Term

2.1
MPC’s obligations, as described in this Agreement, shall commence on January 1, 2015 (the “Effective Date”).

2.2
This Agreement shall be effective for a time period commencing on the Effective Date and shall continue through December 31, 2024 (the “Initial Term”). This Agreement will automatically renew for up to two (2) renewal terms of five (5) years each (each, an “Extension Period”) unless either Party provides the other Party with written notice of its intent to terminate this Agreement at least six (6) months prior to the end of the Initial Term or the then-current Extension Period. The Initial Term and all Extension Periods, if any, shall be referred to in this Agreement collectively as the “Term”.

3.    Toll Rates and Commitments

3.1
During the Term, MPC shall ship on each of the Pipeline System each Quarter an aggregate volume of Commodities equal to its Quarterly Throughput Commitment for such Quarter or, in the event it fails to do so, shall remit to HST the Quarterly Deficiency Payment pursuant to Section 3.5. All volumes shipped by MPC on the Pipeline System will be subject to the Tolls, as may be amended from time to time in accordance with FERC methodologies and as provided herein.

3.2
MPC shall be deemed to have shipped its Quarterly Throughput Commitment on the Pipeline System if the average quantity of Commodities that MPC ships on the Pipeline System in any Quarter under the Tolls equals at least the Quarterly Throughput Commitment for such Quarter.

3.3
Except during a Force Majeure event, a temporary shutdown or derate of the applicable Pipeline System for pipeline inspection, testing, maintenance or repair or for those extraordinary costs above and beyond those expected for normal maintenance and repair as referenced in Section 5.4 of this Agreement, HST agrees to maintain and operate the Pipeline System so that the actual operating capacity that is available for shipment of Commodities equals or exceeds on average the Minimum Capacity as listed by Pipeline System in Exhibit B.

3.4
MPC agrees to pay HST monthly: (a) the Toll Rates in effect for all MPC Deliveries transported by HST on the Pipeline System during such month; and (b) any viscosity surcharge, loading, handling, transfer and other charges incurred with respect to such MPC Deliveries for such month in accordance with the provisions as set forth in the Tolls. Such monthly payments will be paid by MPC to HST within fifteen (15) Days of the invoice date.


5



3.5
Subject to the provisions of Section 4, if the aggregate volumes of Commodities shipped by MPC on the Pipeline System during any Quarter are less than MPC’s Quarterly Throughput Commitment for such Quarter then, in addition to paying any amounts incurred by MPC pursuant to Section 3.4 with respect to the MPC Deliveries for such Quarter, MPC shall also pay HST a deficiency payment (the “Quarterly Deficiency Payment”) equal to the product of:

(a)
the difference between MPC’s Quarterly Throughput Commitment for such Quarter and the aggregate volume of MPC Deliveries for such Quarter (the “Deficiency Volume”); and

(b)
the Weighted Average Toll Rate for such Quarter.

Quarterly Deficiency Payments, if any, shall be paid by MPC to HST either ten (10) Days following MPC’s receipt of the applicable invoice from HST or the last Day of the month following the end of the applicable Quarter, whichever is later.

3.6
The dollar amount of any Quarterly Deficiency Payments paid by MPC shall constitute prepayment for transportation of Commodities by MPC on the Pipeline System and will be posted as a credit (“Prepaid Transportation Credits”) to MPC’s account. If, during any Quarter during the Term, MPC Deliveries exceed MPC’s Quarterly Throughput Commitment for such Quarter, MPC shall be permitted to apply Prepaid Transportation Credits against any amounts due from MPC and payable to HST with respect to the transportation of any volumes in excess of MPC’s Quarterly Throughput Commitment for such Quarter. Any Prepaid Transportation Credits that are not used by MPC during the four (4) Quarters immediately following the Quarter for which said Prepaid Transportation Credits were posted to MPC’s account (the “Credit Period”) will expire. If, during any such four (4) Quarter period the Nominated Volume for any month equals or exceeds the applicable portion of the Quarterly Throughput Commitment for such month (the “Monthly Commitment”), but MPC is prevented from shipping volumes in excess of the Monthly Commitment during such month because of a lack of available capacity on the Pipeline System, either because (a) the Pipeline System is undergoing testing, maintenance or repair, or (b) a Force Majeure has occurred that prevents HST from transporting MPC volumes on the Pipeline System in excess of the Monthly Commitment, then the Credit Period shall be extended by an equivalent time period for which MPC has been prevented from shipping volumes on the Pipeline System in excess of the Monthly Commitment.


6



3.7
Notwithstanding anything in Section 3.6 to the contrary, upon the expiration or termination of this Agreement for any reason, to the extent that MPC, at the time of such expiration or termination, holds any unused Prepaid Transportation Credits, MPC shall be permitted to apply such Prepaid Transportation Credits against any amounts incurred by MPC and payable to HST with respect to any MPC Deliveries on the Pipeline System until the expiration of the applicable Credit Period with respect to such Prepaid Transportation Credits. This Section 3.7 shall survive the expiration or termination of this Agreement.

3.8
If, during any month, the Nominated Volume on the Pipeline System averages at least the Monthly Commitment for such month, and MPC is prevented from shipping the Monthly Commitment solely because the available throughput or storage capacity of the Pipeline System falls below the Minimum Capacity, then MPC shall be deemed to have shipped the Monthly Commitment for such month.

3.9
No later than the 20 th Day of the month following each Quarter, HST shall provide to MPC a spreadsheet, substantially in the form of Exhibit “A” attached hereto and made a part hereof, showing MPC’s total throughput on the Pipeline System and any Quarterly Deficiency Payments paid by MPC for such Quarter, as well as any Prepaid Transportation Credits in MPC’s account.     

3.10
HST may file to amend the Toll Rates based on the FERC inflationary index for interstate pipelines. If the FERC terminates its indexing methodology and does not adopt a new methodology, the Parties will negotiate in good faith to determine any adjustment to the Toll Rates.

3.11
MPC shall reimburse HST for, or HST shall be permitted to put in place Toll Rate increases for, each of the following:

(a)
any costs incurred by HST in complying with any new Applicable Laws that affect the services provided to MPC under this Agreement, provided that (i) compliance by HST with any such new Applicable Law requires substantial and unanticipated capital expenditures by HST, and (ii) HST has made efforts to mitigate the effect of such Applicable Laws. MPC and HST will negotiate in good faith to agree on the level of the increased Toll Rates, which will be sufficient to allow HST to recover its cost of service consistent with established FERC ratemaking principles;

(b)
all taxes (other than income taxes, gross receipt taxes, ad valorem taxes, property taxes and similar taxes) incurred by HST on MPC’s behalf with respect to the services provided under this Agreement, to the extent such reimbursement is not prohibited by Applicable Law; and

(c)
the actual costs of any capital expenditures HST agrees to make at MPC’s request.


7



3.12
MPC and its duly authorized representatives may, at MPC’s option and at its sole expense at all reasonable times, but not more often than once in any calendar year, audit the books and records of HST with respect to the Quarterly Deficiency Payments and any amounts payable by MPC hereunder. Any audit of a particular calendar year must commence during the two-year period (or such longer period as the Parties may agree) following the end of such year.

3.13
During the Term hereof, HST shall maintain the Tolls for transportation of Commodities through the Pipeline System and, except as expressly provided herein, HST shall not make material changes to the Tolls without MPC’s consent, which shall not be unreasonably withheld. MPC’s withholding its consent shall not be considered unreasonable if the proposed Toll change would materially restrict or limit MPC’s ability to ship the Quarterly Throughput Commitment on terms (other than toll rates) consistent with those set forth in this Agreement or would otherwise negatively alter or abridge MPC’s rights (other than with respect to toll rates) as stated in this Agreement.

3.14
Notwithstanding Section 3.11, HST may change the Tolls as may be reasonably required in response to changes in Applicable Laws. However, before putting in place any such Toll changes, HST shall transmit a copy of the proposed Toll change to MPC and afford MPC a reasonable period of time to submit comments to HST as to whether the proposed Toll change is acceptable and in accordance with the provisions of this Agreement. HST shall take into account MPC’s comments in any Toll that it subsequently put in place.

4.    Force Majeure

4.1
As soon as possible following the occurrence of a Force Majeure event, HST shall provide MPC with written notice of the occurrence of such Force Majeure event (a “Force Majeure Notice”). HST shall identify the full particulars and the approximate length of time that HST reasonably believes in good faith such Force Majeure event shall continue (the “Force Majeure Period”). If HST advises in any Force Majeure Notice that it reasonably believes in good faith that the Force Majeure Period shall continue for more than twelve (12) consecutive months, then, subject to Section 5 below, at any time after HST delivers such Force Majeure Notice, either Party may terminate this Agreement, but only upon delivery to the other Party of a notice (a “Termination Notice”) at least twelve (12) months prior to the expiration of the Force Majeure Period; provided, however , that such Termination Notice shall be deemed canceled and of no effect if the Force Majeure Period ends prior to the expiration of such twelve (12) month period. For the avoidance of doubt, neither Party may exercise its right under this Section 4.1 to terminate this Agreement as a result of a Force Majeure event with respect to any machinery, storage, tanks, lines of pipe or other equipment that has been unaffected by, or has been restored to working order since, the applicable Force Majeure event, including pursuant to a restoration under Section 5.4.


8



4.2
Notwithstanding the foregoing, if MPC delivers a Termination Notice to HST (the “MPC Termination Notice”) and, within thirty (30) Days after receiving such MPC Termination Notice, HST notifies MPC that HST reasonably believes in good faith that it shall be capable of fully performing its obligations under this Agreement within a reasonable period of time, then the MPC Termination Notice shall be deemed revoked and the applicable portion of this Agreement shall continue in full force and effect as if such MPC Termination Notice had never been given.

4.3
Subject to Section 5 below, HST’s obligations to transport the applicable Minimum Capacity on a Pipeline Segment may be temporarily suspended during the occurrence of, and for the entire duration of, a Force Majeure event that prevents HST from transporting the applicable Minimum Capacity on such Pipeline Segment. If HST is unable to transport the Minimum Capacity due to a Force Majeure event, then MPC’s obligation to ship the Quarterly Throughput Commitment and pay the Quarterly Deficiency Payment shall be reduced to the extent that HST is prevented from transporting the full Quarterly Throughput Commitment. At such time as HST is capable of transporting volumes equal to the Quarterly Throughput Commitment, MPC’s obligation to ship the full Quarterly Throughput Commitment shall be restored.

4.4
If MPC experiences a Force Majeure event at one of its refineries, MPC shall provide HST with written notice of the occurrence of such Force Majeure event. MPC shall identify the full particulars and approximate length of time that MPC reasonably believes in good faith such Force Majeure event shall continue. If such Force Majeure event reduces MPC’s Canton or Garyville Crude Petroleum throughput capacity by at least 50% for a period of thirty (30) Days or more, then MPC’s Quarterly Throughput Commitment on the Pipeline System indicated in Exhibit “B” will be reduced by 50%, regardless of the actual reduction in such refinery’s Crude Petroleum throughput capacity, for the duration of such reduction in throughput capacity.

5.    Capabilities of the Pipeline System

5.1
HST shall use reasonable commercial efforts to minimize the disruption of service on the Pipeline System and any Pipeline Segment. HST shall promptly inform MPC of any anticipated partial or complete disruption of service on the Pipeline System and any Pipeline Segment that is reasonably expected to extend for more than twenty-four (24) hours, including relevant information about the nature, extent, cause and expected duration of the disruption and the actions HST is taking to resume full operations, provided that HST shall not have any liability for any failure to notify, or delay in notifying, MPC of any such matters except to the extent MPC has been materially prejudiced or damaged by such failure or delay. HST will provide MPC with at least ninety (90) Days’ notice of any planned maintenance or repair activity on the Pipeline System that will significantly reduce the Minimum Capacity for any Pipeline Segment.


9



5.2
Subject to Force Majeure, disruptions for routine inspection, testing, repair and maintenance consistent with hazardous liquid pipeline industry standards, scheduling requirements as set forth in the Tolls, and any requirements of Applicable Law, HST shall accept for shipment on the Pipeline System in accordance with hazardous liquid pipeline industry standards all Commodities that meets the quality specifications of the Tolls. Further, HST shall maintain and repair all portions of the Pipeline System in accordance with hazardous liquid pipeline industry standards and in a manner which allows each Pipeline Segment to be capable, subject to Force Majeure or temporary shutdown for pipeline inspection, testing, repair and maintenance, of shipping, storing and delivering volumes of Commodities which are no less than the Minimum Capacity.

5.3
If, for any reason, including without limitation a Force Majeure event, the throughput or storage capacity of any Pipeline Segment falls below the Minimum Capacity, then (a) during such period of reduced throughput or storage MPC’s obligation to ship the Quarterly Throughput Commitment shall be reduced as described in Section 4.3 above and (b) within a reasonable period of time after the commencement of such reduction, HST shall make repairs to and/or replace the affected portion of such Pipeline Segment to restore the capacity of such Pipeline Segment to the Minimum Capacity. Except as provided below in Section 5.4 and Section 5.5, all such restoration shall be at HST’s cost and expense unless the damage creating the need for such repairs was caused by the negligence or willful misconduct of MPC, its employees, agents or customers.

5.4
If, for any reason, HST fails to maintain the capacity of any Pipeline Segment at least at the Minimum Capacity for a period of thirty (30) consecutive Days, except during a Force Majeure event or temporary shutdown for pipeline testing, repair or maintenance, either Party shall have the right to call a meeting between executives of both Parties by providing at least two (2) Business Days’ prior written notice. Any such meeting shall be held at a mutually agreeable location and will be attended by executives of both Parties having sufficient authority to commit his or her respective Party to a Capacity Restoration (hereinafter defined). At the meeting, the Parties will negotiate in good faith with the objective of reaching a joint resolution for the restoration of capacity on the Pipeline System which will, among other things, specify steps to be taken by HST to fully accomplish such restoration and the deadlines by which such restoration must be completed (the “Capacity Restoration”). Any such Capacity Restoration shall set forth an agreed upon time schedule for such restoration. Such time schedule shall be reasonable under the circumstances, consistent with customary pipeline transportation industry standards and shall take into consideration HST’s economic considerations relating to costs of the repairs and MPC’s requirements concerning its operations. Subject to the remainder of this Section 5.4 and to Section 5.5, MPC shall bear the entire cost of any Capacity Restoration. In the event MPC’s economic considerations justify incurring additional costs to restore the Pipeline System in a more expedited manner than the time schedule determined in accordance with the preceding sentence, MPC may require HST to expedite the restoration to the extent commercially reasonable, subject to MPC’s payment, in advance, of the estimated incremental costs to be incurred by HST as a result of such expedited time schedule. In the event the Parties agree to an expedited restoration plan wherein MPC agrees to fund a portion of the restoration cost, then neither Party shall have the right to terminate this Agreement pursuant to

10



Section 4.1 above so long as such restoration is being conducted with due diligence, and MPC shall pay such portion of the restoration cost to HST in advance based on an estimate conforming to applicable hazardous liquid pipeline industry standards. Upon completion of the restoration, MPC shall pay the difference between the actual portion of restoration costs to be paid by MPC pursuant to this Section 5.4 and the estimated amount paid under the preceding sentence within thirty (30) Days after receipt of HST’s invoice or, if appropriate, HST shall refund to MPC the excess of the estimate paid by MPC over HST’s actual costs as previously described within thirty (30) Days after completion of the restoration.
5.5
If HST either (a) refuses or fails to meet with MPC within the period set forth in Section 5.4, (b) refuses to agree to perform a Capacity Restoration or (c) fails to perform its obligations in compliance with the terms of a Capacity Restoration, then MPC may require HST to complete a restoration of the applicable Pipeline Segment. Any such restoration required under this Section 5.5 shall be completed by HST at MPC’s cost. HST shall use commercially reasonable efforts to continue to provide transportation of Commodities tendered by MPC under the Tolls while such restoration is being completed. Any work performed by HST pursuant to this Section 5.5 shall be performed and completed in a good and workmanlike manner consistent with applicable hazardous liquid pipeline industry standards and in accordance with all Applicable Laws.

5.6
The services provided by HST pursuant to this Agreement shall consist only of transportation pursuant to the Tolls and HST will not be obligated to provide terminalling or tankage facilities at any location or any intermediate interconnection point or truck unloading as part of the services it provides.

5.7
Any liability and measurement of volume losses of Commodities will be governed by the Tolls.

6.
Operational Modification, Additional Facilities and Capacity Expansion Requested by MPC


11



MPC may at any time make a written request to HST for an operational modification, including new truck unloading facilities or other facilities and/or a capacity expansion of the Pipeline System (each, an “Operational Modification”), and shall include in such written request the parameters and specifications of the requested Operational Modification. Upon receipt of such a request, HST shall promptly evaluate the relevant factors related to such request, including, without limitation: engineering and design criteria, limitations affecting the Operational Modification, cost and financing factors and the effect of the Operational Modification on the overall operation of the Pipeline System. If HST determines that such Operational Modification is operationally and commercially feasible, HST shall present a proposal to MPC concerning the design and projected costs of such Operational Modification and the manner in which such costs might be funded by or recovered from MPC. If HST determines the Operational Modification is not commercially or operationally feasible, it shall provide MPC with an explanation of and justification for such determination. If HST notifies MPC that the Operational Modification may be commercially and operationally feasible, the Parties shall negotiate in good faith to determine appropriate terms and conditions of HST’s implementation of such Operational Modification, which shall include, without limitation, the scope and the appropriate timing of such Operational Modification, as well as a reasonable return on capital with respect of such Operational Modification, which may include, without limitation, direct funding of all or part of the costs by MPC, an increase in Toll Rates and/or an increase in the Quarterly Throughput Commitment.

7.    Suspension of Refinery Operations

7.1
In the event MPC decides to permanently or indefinitely suspend refining operations at its Canton, Ohio or Garyville, Louisiana refineries for a period that shall continue for at least twelve (12) consecutive months, MPC may provide written notice to HST of MPC’s intention to suspend operations (the “Suspension Notice”). Such Suspension Notice shall be sent at any time after MPC has publicly announced such suspension, and upon the expiration of the twelve (12) month period following the date such notice is sent (the “Notice Period”), this Agreement shall terminate for the Pipeline System identified in Exhibit “B”. If MPC publicly announces, at least two (2) months prior to the expiration of the Notice Period, its intent to resume operations at its Canton, Ohio or Garyville, Louisiana refineries, then the Suspension Notice shall be deemed revoked and this Agreement shall continue in full force and effect as if such Suspension Notice had never been delivered.

7.2
If refining operations at any of MPC’s refineries are suspended for any reason (including refinery turnaround operations and other planned maintenance), MPC shall remain liable for Quarterly Deficiency Payments under this Agreement for the duration of such suspension, unless and until this Agreement is terminated for the Pipeline System identified in Exhibit “B” as provided in Section 7.1.


12



7.3
MPC shall provide HST with at least thirty (30) Days’ prior written notice of any suspension of operations at its refineries due to a planned refinery turnaround or significant scheduled maintenance.

8.    Nominations and Tenders

MPC’s monthly nominations and tenders of Commodities for shipment through the Pipeline System, and HST’s obligation to accept and transport such volumes of Commodities, shall at all times be subject to the terms and provisions of the Tolls consistent with the rights and obligations of the Parties under this Agreement.

9.    Regulatory Matters

9.1
In the event that the FERC takes any adverse action with respect to the Tolls that negatively affects the rights or obligations of MPC under this Agreement, HST shall diligently defend the Tolls, including appealing any such adverse action. If any such adverse action is not stayed pending appeal, each Party’s obligations under this Agreement shall be suspended until a stay is implemented or a final, non-appealable decision is rendered with respect to such adverse action. If a final, non-appealable decision is ultimately issued by the FERC and confirmed by a court having final authority in the matter that requires HST to amend the Tolls in a manner that is fundamentally contradictory to the provisions of this Agreement, then the Parties shall negotiate in good faith to amend this Agreement to comply with any such judgment and to retain the protections and structures reflected by its current terms to the maximum extent permissible under such judgment. In the event the Parties are unable to reach agreement with respect to such an amendment within a reasonable period of time (which shall not be less than thirty (30) Days) after the issuance of such final judgment, then either Party may terminate this Agreement upon written notice to the other Party.

9.2
MPC hereby agrees: (a) to take all such actions and do all such things as HST shall reasonably request in connection with its applications for, and the processing of, any necessary certificates, approvals and authorizations of any applicable Governmental Authorities; (b) at all times to support the Tolls specified in this Agreement as a rate that MPC has agreed to pay; (c) not directly or indirectly take any action that indicates a lack of support for the Tolls at the terms agreed to by MPC in this Agreement; and (d) not to file any action, protest, complaint or other action with the FERC with respect to the Tolls, including any increased rates based on the inflationary index referred to in Section 3.10.

9.3
In carrying out the terms and provisions of this Agreement, the Parties shall comply with all present and future Applicable Laws of any Governmental Authority having jurisdiction.

10.     Confidentiality


13



10.1
From and after the Effective Date, each Party shall hold, and shall cause its Affiliates and its and their respective directors, managers, officers, employees, agents, consultants, advisors, contractors and other representatives (collectively, “Representatives”) to hold all Confidential Information of the other Party 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 except in connection with its performance or acceptance of services hereunder and shall not release or disclose such Confidential Information to any other Person, except its Representatives. Each Party shall be responsible for any breach of this section by any of its Representatives.

10.2
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.

10.3
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 10 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 10 and to enforce specifically the terms and provisions of this Section 10. Notwithstanding any other section hereof, the provisions of this Section 10 shall survive the termination of this Agreement.

11.      Assignment

Neither Party may assign its rights under this Agreement without prior written consent from the other Party, which consent shall not be unreasonably withheld; provided, however , that either Party may assign its rights under this Agreement to a successor in interest resulting from any merger, reorganization, consolidation or as part of a sale of all or substantially all of its assets or to an affiliate. Subject to the foregoing, this Agreement shall bind and inure to the benefit of the successors and assigns of the Parties hereto.


14



12.    Representations and Warranties

Each Party to this Agreement represents and warrants to the other that it is an entity duly organized, validly existing and in good standing under the laws of the state of its organization and has all requisite corporate power and corporate authority to enter into this Agreement and to carry out the terms and provisions hereof.

13.      Termination and Amendment

13.1
This Agreement may not be terminated, except as expressly provided herein, nor may any of its provisions be amended or waived without prior written consent of both Parties hereto.

13.2
Neither failure nor delay by any Party to exercise any right or remedy of such Party provided herein shall operate as a waiver with respect to a future exercise thereof, nor shall any single or partial exercise of any such right or remedy preclude any other or further exercise thereof or the exercise of any other right or remedy.

13.3
In the event of any breach of a term or condition of this Agreement by either Party, the other Party’s remedy shall be limited to the direct damages caused thereby and in no event shall a Party be liable to the other Party for any consequential, special, indirect, punitive, or exemplary damages, howsoever caused.

13.4
Upon termination of this Agreement for reasons other than a default by MPC or any other termination of this Agreement initiated by MPC pursuant to Section 4 or Section 7, MPC shall have the right to require HST to enter into a new transportation services agreement with MPC that (i) is consistent with the terms and objectives set forth in this Agreement and (ii) has commercial terms that are, in the aggregate, equal to or more favorable to HST than fair market value terms as would be agreed by unaffiliated parties negotiating at arm’s length provided; however, that the term of any such new transportation services agreement shall not extend beyond December 31, 2035.

14.    Notices

Any notice, statement, or invoice provided for in this Agreement shall be in writing and shall be considered as having been given if hand carried, facsimiled, emailed, or if mailed by United States mail, postage prepaid, to the following address, respectively:

    

15



 
MPC:
 
 
 
 
 
Name:
Marathon Petroleum Company LP
 
Address:
539 S. Main Street
 
 
Findlay, OH 45840
 
Attention:
General Counsel
 
Fax:
 
 
Email:
 
 
 
 
 
 
 
 
HST:
 
 
 
 
 
Name:
Hardin Street Transportation LLC
 
Address:
200 E. Hardin Street
 
 
Findlay, OH 45840
 
Attention:
President
 
Fax:
 
 
Email:
 
 
 
 
    
or to such other address as such Party may indicate by a notice delivered in accordance with this Section 14.

15.    Governing Law

This Agreement shall be construed and interpreted in accordance with the laws of the State of Ohio, without recourse to any principles of law governing conflicts of law, that would otherwise require the application of the laws of another jurisdiction.

16.    Severability

In the event any provision of this Agreement is held to be invalid, illegal or unenforceable in any respect by a court of competent jurisdiction, or by an empowered government agency, such findings shall not affect the remaining provisions of this Agreement, which are not found to be invalid, illegal or unenforceable, unless such construction would be unreasonable.

17.      Default

17.1
Either Party hereunder shall be in default if such Party: (a) materially breaches any provision of this Agreement and such breach is not cured within fifteen (15) Days after notice thereof (which notice shall describe such breach in reasonable detail) is received by such Party; provided, however, that if such breach is not capable of being cured within fifteen (15) Days but the defaulting Party promptly commences and diligently prosecutes such cure, then such cure period will be extended for up to an additional ninety (90) Days; (b) becomes insolvent, enters voluntary or involuntary bankruptcy or makes an assignment for the benefit of creditors; (c) fails to pay any undisputed sums due hereunder when due.


16



17.2
If either Party is in default as described above, then the non-defaulting Party may: (a) terminate this Agreement upon notice to the defaulting Party; (b) withhold any payments due to the defaulting Party under this Agreement; (c) suspend the performance of its obligations hereunder; and/or (d) pursue any other remedy at law or in equity.


18.
Waiver of Jury Trial

EACH PARTY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY PROCEEDINGS RELATING TO THIS AGREEMENT OR ANY PERFORMANCE OR FAILURE TO PERFORM OF ANY OBLIGATION HEREUNDER.

IN WITNESS WHEREOF, HST and MPC have caused this Agreement to be duly executed, all as of the date set forth above.
 
Hardin Street Transportation LLC
 
 
 
 
By:
/s/ Craig O. Pierson
 
 
 
 
Name:
Craig O. Pierson
 
 
 
 
Title:
President
 
 
 
 
 
 
 
Marathon Petroleum Company LP
 
By: MPC Investment LLC, its General Partner
 
 
 
 
By:
/s/ George P. Shaffner
 
 
 
 
Name:
George P. Shaffner
 
 
 
 
Title:
Sr. Vice President
 
 
 
 
 
 

17



Exhibit A

[quarterly spreadsheet of throughput as required in Section 3.9]

TSAIMAGE.JPG




Exhibit B – Tolls

Pipeline System
Minimum Capacity (BPD)
Commitment Barrels Per Day
Toll Rates
($/BBL)
Refinery connection per Section 4.4 & 7.1
Bellevue 4” Products
5,000
2,500
1.1497
 
Campbell Branch – Vina 6” Crude
15,000
3,600
1.1676
 
Columbus Locals
NA
14,100
0.4192
 
Detroit LPG – Woodhaven #1-4” LPG &
#2-4”LPG
5,700
5,700
5,900
1.9323
 
High Island – Texas City 14” Crude
NA
2,100
0.0483
 
Lima – Canton 12”-16” Crude
83,900
57,500
1.0248
Canton
Lima Pump-out (Products)
28,800
13,500
0.0965
 
Louisville – Lexington 8” Products
37,300
24,300(MPC)
18,300
0.6226
 
Princeton – Robinson 4” LPG
10,800
3,500
2.0674
 
Princeton – Robinson 8”-6” Products
28,000
10,200
0.6676
 
RIO 8” Products
17,500
12,000
1.7582
 
St. James – Garyville 30” Crude
600,000
402,300
0.1696
Garyville
Toledo – Steubenville 6”-4” Products
28,800
9,800
0.8668
 
Woodhaven Buckeye – Woodhaven 8” LPG
NA
3,500
0.0483
 
Truck Unloads
 
 
 
 
Canton Crude Truck Unload
20,000
20,000 (2015-2016)
2,700 (2017+)
2.5200
Canton
Campbell Branch Truck Unload
15,000
3,200
0.3198
 








Exhibit C-1 (Tolls)



Rules and Regulations Governing Transportation
of Crude Petroleum by Pipeline


 
This Carrier will undertake the Transportation of Crude Petroleum as defined herein, receiving and delivering the same through its own facilities and lines, subject to the executed Transportation Services Agreement and the following rules and regulations:

1. Definitions
As used in these rules and regulations, the following meanings are applicable:

“Barrel” means forty-two (42) United States gallons.

“Carrier” means and refers to Hardin Street Transportation LLC or its designated operator.

“Crude Petroleum” means either the direct liquid products of oil wells, or a mixture of the direct liquid products of oil wells with the indirect liquid products of oil or gas wells including gasoline and liquefied petroleum gases, all of which are of merchantable quality when the API gravity is 50.9 degrees or less.

“High Gravity Petroleum” means either the direct product of oil wells, or a mixture of the direct liquid products of oil wells with indirect liquid products of oil or gas wells including gasoline and liquefied petroleum gases, all of which are of merchantable quality with an API gravity of 51 degrees through 78.9 degrees.

“Nomination” means a written designation by a Shipper to the Carrier of an approximate quantity of Crude Petroleum for Transportation from a specified origin point(s) to a specified destination point(s) over a period of one Operating Month in accordance with these rules and regulations.

“Nomination Date” means the twentieth (20th) day of the month preceding the Operating Month.

“Operating Month” for a Shipper means any calendar month in which the Carrier transports Crude Petroleum. For purpose hereof the calendar month shall be deemed to begin on the first day of such month at 7:00 a.m. (Central Time).

“Shipper” means Marathon Petroleum Company LP

“Tender” means an offer by a Shipper to the Carrier of an approximate quantity of Crude Petroleum for Transportation from a specified origin point(s) to a specified destination point(s).

“Transportation” means gathering at a specified location and/or terminaling service at a specified location and/or movement from a specified origin point(s) to a specified destination point(s).

2. Shipments of High Gravity Petroleum
High Gravity Petroleum will be received for Transportation only on condition that it shall be mixed with Crude Petroleum in the Carrier’s tanks or lines and provided that both the High Gravity Petroleum and the Crude Petroleum with which it is to be mixed are owned by the same Shipper or Consignee and are consigned in the same destination. Carrier reserves the right to reject deliveries of High Gravity Petroleum with a vapor pressure in excess of twelve (12) pounds per square inch as outlined in Item No. 6 herein.

3. Deductions and Quantities Deliverable of High Gravity Petroleum




All shipments of High Gravity Petroleum shall be subject to a deduction to cover the shrinkage resulting from the mixing thereof with Crude Petroleum according to the following table:

 
 API GRAVITY
 
% DEDUCTION
 
 
51.0° through 78.9°
 
1
 

The quantity deliverable by Carrier shall be the net corrected volume, less the applicable deduction for shrinkage. Transportation charges will be assessed on the net balance thus reduced. After the High Gravity Petroleum has been so received and provisions for deductions made, any resultant mixture of “Crude Petroleum” and “High Gravity Petroleum” will be considered as Crude Petroleum for purposes of reference hereafter in this toll.

4. Commodity
Carrier is engaged primarily in the Transportation of Crude Petroleum and will not accept any other commodity for Transportation unless approved first by the Carrier. Crude Petroleum Tendered for Transportation which differs in quality or characteristics from that usually transported by the Carrier, will, at the option of the Carrier, be transported under such terms as the Shipper and the Carrier may agree. Such shipments will only be considered when they can be transported, as time permits, with existing facilities and when they will not seriously impair the quality of other shipments.

5. Receipt and Destination Facilities
Shipper shall provide the facilities necessary to deliver Crude Petroleum to the manifold at (1) a pumping rate equal to the Carrier’s full line pumping rate at the point of delivery into the System, and (2) a minimum pressure to be designated by the Carrier.

Crude Petroleum may be delivered into the Carrier’s System at less than Carrier’s full line pumping rate provided that, in Carrier’s sole judgment, such Crude Petroleum can be received into Carrier-owned intransit tankage or can be commingled with other Crude Petroleum.

Shipper shall provide the facilities necessary for promptly receiving the Crude Petroleum at the destination point as it arrives at the full line delivery rates and pressure as designated by the Carrier.

6. Quality of Crude Petroleum
Carrier will accept for Transportation Crude Petroleum which can be commingled or intermixed with a grade of Crude Petroleum which Carrier regularly transports between the origin and destination points without substantially reducing the value or altering the quality of any grade of Crude Petroleum regularly transported over the route of shipment.

Carrier will accept Crude Petroleum for Transportation only on condition that Carrier shall not be liable to Shipper for changes in gravity or quality of the Shipper’s Crude Petroleum which may occur from commingling or intermixing such Crude Petroleum with other Crude Petroleum in transit. The Carrier is not obligated to deliver to Shipper the identical Crude Petroleum Tendered by the Shipper. However, the Carrier will deliver a grade of Crude Petroleum as nearly like the grade of Crude Petroleum received as Carrier is regularly transporting as a common stream to the same destination point in the Operating Month.

Carrier will from time to time determine which grades of Crude Petroleum it will regularly transport as a common stream between particular receipt points and destination points on its pipeline System. Carrier will inform all interested persons of such determination upon request. Carrier may from time to time undertake to transport other or additional grades of Crude Petroleum and the Carrier may from time to time, after giving reasonable notice to persons who may be affected, cease to transport particular grades of Crude Petroleum.

Carrier will also accept for Transportation a grade of Crude Petroleum which does not meet the above conditions of this Item, provided that:





(a)
Carrier has available facilities to segregate such grade of Crude Petroleum while it is in transit from all other grades of Crude Petroleum and if required, Shipper shall provide such buffers as Carrier solely deems necessary; and

(b)
Carrier shall not be liable to Shipper for changes in the gravity or quality of such grade of Crude Petroleum while in transit: and

(c)
The Crude Petroleum Tendered for Transportation is made available at the receipt point in sufficient quantity as Carrier solely deems economically justifiable.

Carrier reserves the right to reject all Tenders of Crude Petroleum when, in Carrier’s sole determination:

(1)
the Reid vapor pressure of the Crude Petroleum or any mixture thereof with indirect products, exceeds twelve (12) pounds at one hundred degrees Fahrenheit (100°F) and/or an API gravity in excess of 78.9 degrees;

(2)
the true vapor pressure of the Crude Petroleum, or any mixture thereto with indirect products, might result in Carrier’s noncompliance with Federal, State, or local requirements regarding hydrocarbon emissions;

(3)     the Crude Petroleum contains impurities exceeding one-half (1/2) of one percent (%);

(4)     the Crude Petroleum has been partially refined;

(5)
the Crude Petroleum has been contaminated by the presence of any chemicals including, but not limited to, chlorinated and/or oxygenated hydrocarbons and lead;

(6)
Crude Petroleum which has a pour point greater than thirty degrees Fahrenheit (30°F) unless under terms and conditions acceptable to Carrier. If such Crude Petroleum is accepted by Carrier, Shippers will be subject to a charge in addition to trunk line Transportation rates:

(7)
Crude Petroleum which has a viscosity greater than 55 Saybolt Universal Seconds at 60 degrees Fahrenheit (60°F), unless under terms and conditions acceptable to Carrier. If such Crude Petroleum is accepted by Carrier, Shipper will be subject to a charge in addition to trunk line toll rates.

Crude Petroleum delivered which does not meet specifications shall be considered contaminated. If upon investigation, Carrier determines that a Shipper has delivered contaminated Crude Petroleum, such Shipper will be required to remove contaminated Crude Petroleum from the System. Further, Carrier reserves the right to dispose of any contaminated Crude Petroleum blocking its System, provided such Crude Petroleum is not removed by the Shipper having title thereto upon reasonable notice to it by Carrier. Disposal thereof may be made by public sale if necessary.

7. Additives
Carrier reserves the right to require, approve or reject the injection of corrosion inhibitors, viscosity or pour point depressants or other such additives in the Crude Petroleum to be transported.

8. Title
A Tender of Crude Petroleum for Transportation shall be deemed a warranty of unencumbered title and merchantability at the time of Tender. The Carrier may, in the absence of adequate security, decline to receive any Crude Petroleum for Transportation.

9. Intrasystem Change in Ownership
No transfers of ownership of Commodities will be recognized or recorded by the Carrier. All deliveries to receiving pipelines will be for the account of the Shipper.

10. Time for Submitting Nominations
The Carrier is under no obligation to accept a Tender of Crude Petroleum for shipment for any Operating Month unless the Shipper submits its Nomination to the Carrier on or before the Nomination Date.

11. Minimum Tender-Minimum Delivery




Tenders for the Transportation of Crude Petroleum for which the Carrier has facilities will be accepted into the System in quantities of not less than the minimum batch size of the connecting carrier and, provided such Crude Petroleum is of similar quality and characteristics as is being transported from receipt point to destination point.

12. Measuring, Testing and Deductions
All Crude Petroleum accepted by Carrier for Transportation shall be gauged or metered and tested by a representative of the Carrier prior to its receipt and upon delivery. The Shipper shall have the privilege of being present or represented at the gauging or metering or testing. If tank tables are used, quantities will be computed from regularly compiled tank tables showing one hundred percent (100%) of the full capacity of the tanks.

Whenever there is substantial evidence of meter malfunctions in a custody transfer measurement, the parties involved in the custody transfer shall negotiate an appropriate adjustment on the basis of the most reliable and accurate information available.

Quantities for receiving, delivering, assessing charges and all other purposes will be corrected to a temperature of sixty degrees Fahrenheit (60°F). Deductions will be made for the full percent of basic sediment, water and other impurities shown by tests made by Carrier at time of receipt and upon delivery.

Carrier shall account to each Shipper for one hundred percent (100%) of Crude Petroleum received for its account.

13. Destination
All Crude Petroleum in Carrier’s system shall at all times have a destination. Change in destination may be made if requested in writing by the Shipper prior to delivery at original destination point, subject to the rate, rules and regulations applicable from point of origin to point of final destination, provided that no out-of-line backhaul movement will be made.

14. Rate Applicable
Crude Petroleum transported shall be subject to the toll rates, and governed by Shipper’s Transportation Services Agreement and these rules and regulations in effect on date such Crude Petroleum is received by the Carrier. Toll rates may be adjusted per Carrier’s determination and subject to Shipper’s Transportation Services Agreement.

15. Charge for Spill Compensation
In addition to the Transportation charges and all other charges accruing on Crude Petroleum accepted for Transportation, per barrel charge will be assessed and collected in the amount of any tax, fee, or other charge levied against the Carrier in connection with such commodity, pursuant to any Federal, State or local act or regulation which levies a tax, fee, or other charge, on the receipt, delivery, transfer or Transportation of such commodities within their jurisdiction for the purpose of creating a fund for the prevention, containment, clean up and/or removal of spills and/or the reimbursement of persons sustaining loss therefrom.

16. Liability of Carrier
Carrier, while in possession of any Crude Petroleum will not be liable for any loss thereof, damage thereto, or delay caused by the act of God, the public enemy, quarantine, the authority of law, strikes, riots or the act or default of the Shipper, or from any other cause not due to the negligence of Carrier. In the event there is any loss of Crude Petroleum other than through the negligence of the Carrier, the Shipper shall bear such loss in the same proportion that the amount of its Tendered Crude Petroleum scheduled for Transportation over such segment at the time of the loss bears to the total amount of Crude Petroleum then Tendered and scheduled for Transportation over such segment. Such Shipper(s) shall be entitled to receive only such remaining portion of its Tender as is left after deducting its due portion of the loss.









Exhibit C-2 (Tolls)

Rules and Regulations Governing Transportation
of Refined Products by Pipeline
This Carrier will undertake the transportation of refined products as defined herein, receiving and delivering the same through its own facilities and lines, subject to the executed Transportation Services Agreement and the following rules and regulations:

1. Definitions
As used in these rules and regulations, the following meanings are applicable:

“Barrel” means forty-two United States gallons.

“Buffer Material” means small batches of Commodities transported solely for purposes of avoiding contamination of Commodities of significantly different grade and/or specifications.

“Carrier” means and refers to Hardin Street Transportation LLC or its designated operator.

“Refined Products” (“Commodities”) means and refers to refined petroleum products, intermediate petroleum products and liquefied petroleum gas as specified and defined in Item 4 “Specifications of Commodities.”

“Nomination” means a written designation by a Shipper to the Carrier of a quantity of Commodity for transportation from a specified origin point to a specified destination point over a period of one operating month in accordance with these rules and regulations.

“Operating Month” means any calendar month in which the Carrier transports commodities. For purpose hereof the calendar month shall be deemed to begin at 12:01 a.m. (Eastern Standard Time or Eastern Daylight Savings Time, whichever is in effect on the date specified) on the first day of such month.

"Origination Facility" means the facility immediately upstream of Carrier.

“Shipper” means Marathon Petroleum Company LP.

“Tender” means an offer by a Shipper to the Carrier of a quantity of Commodity for transportation from a specified origin point to a specified destination point.

“Transportation” means the movement of Commodities from a specified origin point to a specified destination point including local transfers between points and handling.

“ULSD” means any ultra low sulfur diesel product. Carrier will provide ULSD acceptance specification upon request.

2. Services
Carrier is engaged primarily in the transportation of petroleum products and distillates as defined in Item 4 and will not accept any other Commodity for transportation unless approved first by the Carrier. Petroleum products and distillates tendered for transportation which differs in quality or characteristics from that usually transported by the Carrier, will, at the option of the Carrier, be transported under such terms as Shipper and the Carrier may agree. Such




Commodities will only be transported, as time permits, with existing facilities and when they will not seriously impair the quality of other shipments.

3. Receipt and Destination Facilities
Shipper shall provide the facilities necessary to deliver Commodities to the Carrier’s receipt point manifold at: (1) a pumping rate equal to the Carrier’s full line pumping rate at the point of receipt into the System, and (2) a minimum pressure to be designated by the Carrier.

Commodities may be received into the Carrier’s System at less than Carrier’s full line pumping rate provided that, in Carrier’s sole judgment, such Commodities can be received into Carrier’s System without interfering with or contaminating other shipments.

Shipper shall provide the facilities necessary for promptly receiving the Commodities at Carrier’s destination point as it arrives at the full line delivery rates and pressure as designated by the Carrier.

Carrier’s acceptance from, and delivery to Shipper’s facility of Commodities shall not evidence Carrier’s approval of the adequacy of such Shipper’s facilities. The responsibility for such facilities shall be exclusively that of the Shipper.

4. Specification of Commodities
(a)
SPECIFICATION A—(Refined Petroleum Products)
Refined Petroleum Products will be received for transportation hereunder provided they are of good merchantable quality.

This Specification includes those petroleum products commonly known as gasoline and diesel products (including, but not limited to, kerosene, aviation fuel, low sulfur diesel, high sulfur diesel and ULSD).

SPECIFICATION B—(Intermediate Petroleum Products)
Intermediate Petroleum Products will be received for transportation hereunder provided they are of good merchantable quality.

This Specification will include those petroleum products commonly known as gas oil, alkylate, isopentane, naphtha, and mixtures of aromatic products.

SPECIFICATION C—(Liquefied Petroleum Gases)
Liquefied Petroleum Gases will be received for transportation hereunder provided they are of good merchantable quality.

This Specification includes those liquefied petroleum gases commonly known as propane, isobutane, butane or mixtures of such products.

(b)
Market Solvent Yellow 124 is prohibited in Commodities.

Methyl tertiary butyl ether (MTBE), ethyl tertiary butyl ether (ETBE), tertiary amyl methyl ether (TAME), or other aliphatic ethers will be prohibited within Refined Petroleum Products except under the following criteria:
    
(1)    The de minimis limit of such aliphatic ether levels will not exceed 0.5% by volume at either the origin or destination points.

(c)
Carrier may require Shipper to furnish a certificate setting forth in detail the specifications of each Commodity offered for transportation to Carrier’s pipeline or other facilities. Carrier may, at its discretion, sample and/or test any Commodities tendered for Shipment. In the event of variance between Carrier’s test and Shipper’s said certificate, Carrier’s test shall prevail. If ULSD does not meet Carrier's ULSD acceptance specification, Carrier may require the Origination Facility to redesignate the ULSD to another product.





Shipper shall provide Carrier with prompt notification of any tank switches that occur during the pump-out of Commodities from any Origination Facility.

(d)
Commodities not included in any of the above Specifications may be accepted for transportation at the option of the Carrier, subject to Items 2 and 5.

5. Identity and Quality of Commodities
Commodities will be accepted for transportation only on the condition that the Carrier in possession thereof will use due diligence to transport same to destination with a minimum of contamination and Carrier will not be liable for such minor contamination.

Carrier has the right to redesignate a Shipper’s batch of off-specification ULSD. Carrier shall deliver the off-specification batch to Shipper’s designated location, in order to clear Carrier’s system, even if the sulfur contamination was caused by Carrier. If sulfur contamination is caused by Carrier, Carrier’s responsibility shall be limited to the volume contaminated at Carrier’s destination point. Carrier is not responsible for any sulfur contamination, or damages resulting therefrom, that occur downstream of Carrier’s destination point.

In as much as it is impracticable for Carrier to maintain the identity of each entire Commodity shipment, Carrier reserves the right to substitute like volumes of the same general kind and quality as the Commodity shipped. Carrier may also require Shipper to furnish buffers to protect batched movements from contamination.

The use of methanol and ethanol as blending components is prohibited. Shippers must obtain advanced approval from the Carrier if they intend to tender for transportation Commodities containing nonhydrocarbon blending components.

Carrier may also accept for transportation Commodities which do not meet the conditions of Item 4 provided that:

(a)
Carrier has available facilities to segregate such Commodity while it is in transit from all other Commodities and if required, Shipper shall provide such buffers as Carrier solely deems necessary; and

(b)
Carrier shall not be liable to Shipper for changes in the gravity or quality of such Commodity while in transit; and

(c)
The Commodity tendered for transportation is made available at the receipt point in sufficient quantity as Carrier solely deems economically justifiable.

6. Additives
Carrier reserves the right to require and approve or reject the injection of corrosion inhibitors, viscosity or pour point depressants or any other additives in the Commodities to be transported.

7. Title
A tender of any Commodity for transportation shall be deemed a warranty of unencumbered title and merchantability at the time of tender by the party offering, but acceptance shall not be deemed a representation by the Carrier as to title. The Carrier may, in the absence of adequate security, decline to receive any Commodity for transportation.

8. Intrasystem Change in Ownership
No transfers of ownership of Commodities will be recognized or recorded by the Carrier. All deliveries to receiving pipelines will be for the account of the Shipper.

9. Time for Submitting Nominations
The Carrier is under no obligation to accept a tender of Commodities for shipment for any operating month unless




the Shipper submits its nomination to the Carrier on or before the 10th calendar day of the preceding calendar month.

10. Buffer Material
In the Transportation of Commodities, the Carrier, as a condition of shipment to protect the quality of such Commodities, may require the Shipper to furnish Buffer Material, which may include other Commodities commingled with it, into facilities which shall be supplied by the Shipper at destination.

The Carrier reserves the right to determine the quality and quantities of Commodities commingled and included in deliveries of Buffer Material to the Shipper at destination, and the Shipper shall pay charges on such Commodities in accordance with this tariff and/or tariffs making reference hereto.

The minimum shipment of Commodities which will be accepted for Transportation from one Shipper from any one receipt point to any one delivery point shall be as follows:

11. Minimum Shipments Required
 
SPECIFICATION A
 
 
 
 
 
 
 
 
 
 
 
Minimum
 
 
 
Origins
 
Destinations
 
Shipment
 
 
 
All points
 
All Points
 
10,000 barrels
 
 
 
 
 
 
 
(All products)
 
 
 
 
 
 
 
 
 
 
SPECIFICATION B
 
 
 
 
 
 
 
 
 
 
 
Minimum
 
 
 
Origins
 
Destinations
 
Shipment
 
 
 
All points
 
All Points
 
20,000 barrels
 
 
 
 
 
 
 
 
 
 
SPECIFICATION C
 
 
 
 
 
 
 
 
 
 
 
Minimum
 
 
 
Origins
 
Destinations
 
Shipment
 
 
 
All points
 
All Points
 
20,000 barrels
 
    
Carrier, at its sole discretion, may accept less than the minimum shipment if operating conditions permit. Carrier reserves the right to require the Shipper to furnish line displacement volumes.

12. Measuring and Testing
Prior to acceptance of Commodities for Transportation, the Carrier may test such Commodities and may require from Shipper a certificate setting forth in detail the specifications of each shipment of Commodities which must indicate all additives and inhibitors included.

All Commodities accepted by the Carrier for Transportation may be gauged by a representative of the Carrier prior to their receipt from the Shipper. Both the Carrier and the Shipper will have the privilege of witnessing gauging, meter readings and testing to which Commodities are subjected. Should Shipper not avail itself of the right to be present or represented at the times of witnessing gauging and meter readings, it shall be presumed that Carrier’s records of quantities of Commodities received or delivered by Carrier are correct. If tank gauges are used, quantities will be computed from regularly compiled tank tables, that are mutually acceptable, showing one hundred percent (100%) of the full capacity of the tanks. Volume corrections will be made from the observed temperature to the basis of sixty degrees (60°) Fahrenheit. The net (corrected) balance received by the Carrier at sixty degrees (60°)




Fahrenheit will be the quantity deliverable and Transportation charges will be assessed in accordance therewith. Carrier will make no adjustment for any water found in shipments.

13. Rates Applicable
Commodities transported shall be subject to the toll rates, and governed by Shipper’s Transportation Services Agreement and the rules and regulations in effect on the date such Commodities are received by the Carrier. Toll rates may be adjusted per Carrier’s determination and subject to Shipper’s Transportation Services Agreement.

14. Charge for Spill Compensation
In addition to the Transportation charges and all other charges accruing on Commodities accepted for Transportation, a per barrel charge will be assessed and collected in the amount of any tax, fee, or other charge levied against the Carrier in connection with such Commodity, pursuant to any Federal, State or local act or regulation which levies a tax, fee, or other charge, on the receipt, delivery, transfer or Transportation of such Commodities within their jurisdiction for the purpose of creating a fund for the prevention, containment, clean up and/or removal of spills and/or the reimbursement of persons sustaining loss therefrom.

15. Liability of Carrier
Carrier, while in possession of any Commodity will not be liable for any loss thereof, damage thereto or delay caused by the act of God, the public enemy, quarantine, the authority of law, strikes, riots, or the act or default of the Shipper, or from any other cause not due to the negligence of Carrier. In the event there is any loss of Commodities other than through the negligence of Carrier, the Shipper shall bear the loss in the same proportion that the amount of the Tendered Commodity bears to the total amount of the consignment of which such Tender is a part and such Shipper shall be entitled to receive only such remaining portion of its Tender as is left after deducting its due portion of the loss.





TRANSPORTATION SERVICES AGREEMENT

1.     Parties :        Marathon Petroleum Company LP and Hardin Street Transportation LLC

2.    Start Date:         January 1, 2015     

3.    Term:         January 1, 2015 through December 31, 2024
Renewal:         Up to two Renewal Terms of five years each, unless notice six months
prior to end of term

4.
Rates:
Pipeline Systems
Minimum Capacity
(BPD)
Commitment Barrels Per Day
Toll Rates
($/BBL)
Refinery
connection per
Section 4.4 & 7.1
Bellevue 4” Products
5,000
2,500
1.1497
 
Campbell Branch – Vina 6” Crude
15,000
3,600
1.1676
 
Columbus Locals
NA
14,100
0.4192
 
Detroit LPG – Woodhaven #1-4” LPG
#2-4”LPG
5,700
5,700
5,900
1.9323
 
High Island – Texas City 14” Crude
NA
2,100
0.0483
 
Lima – Canton 12”-16” Crude
83,900
57,500
1.0248
Canton
Lima Pump-out (Products)
28,800
13,500
0.0965
 
Louisville – Lexington 8” Products
37,300
24,300(MPC)
18,300
0.6226
 
Princeton – Robinson 4” LPG
10,800
3,500
2.0674
 
Princeton – Robinson 8”-6” Products
28,000
10,200
0.6676
 
RIO 8” Products
17,500
12,000
1.7582
 
St. James – Garyville 30” Crude
600,000
402,300
0.1696
Garyville
Toledo – Steubenville 6”-4” Products
28,800
9,800
0.8668
 
    




Woodhaven Buckeye – Woodhaven 8” LPG
NA
3,500
0.0483
 
Truck Unloads
 
 
 
 
Canton Crude
Truck Unload
20,000
20,000 (2015-2016)
2,700 (2017+)
2.5200
Canton
Campbell Branch
Truck Unload
15,000
3,200
0.3198
 




Exhibit 10.3
FIRST AMENDMENT TO
TRANSPORTATION SERVICES AGREEMENT

THIS FIRST AMENDMENT TO TRANSPORTATION SERVICES AGREEMENT (this “Amendment”) is effective as of December 1, 2016 by and between Hardin Street Transportation LLC, a Delaware limited liability company (“HST”), and Marathon Petroleum Company LP, a Delaware limited partnership (“MPC”), both referred to jointly as the “Parties” and each individually as a “Party”.

WITNESSETH

WHEREAS, HST and MPC entered into that certain Transportation Services Agreement dated January 1, 2015 (“Agreement”), whereby MPC desired to move Commodities on the HST Pipeline Systems;

WHEREAS, the following Pipeline Systems shall be removed from the Agreement:

1.
RIO 8” Products
2.
Campbell Branch – Vina 6” Crude
3.
High Island – Texas City 14” Crude
4.
Princeton – Robinson 4” LPG
5.
Princeton – Robinson 8”-6” Products
6.
Campbell Branch Truck Unload

WHEREAS, the Parties agree to decrease the Canton Crude Truck Unload Minimum Capacity;

WHEREAS, the Parties agree to increase the commitment and toll rate on the St. James – Garyville 30” crude system; and

WHEREAS, the Parties now desire to amend the Agreement as set forth herein;

NOW THEREFORE, in consideration of the premises and mutual covenants set forth hereinafter, MPC and HST agree to amend the Agreement as follows:

1.
Exhibit B – Tolls will be replaced with the attached Exhibit B – Tolls reflecting the changes above and the rates currently in effect as of the date of this Amendment.

2. Capitalized terms used but not defined in this Amendment shall have the meaning ascribed to such terms in the Agreement.    





3.
This Amendment may be executed in one or more counterparts, and in both original form and one or more photocopies, each of which shall be deemed to be an original, but all of which together shall be deemed to constitute one and the same instrument.

4.
Except for the provisions of the Agreement specifically addressed in this Amendment, all other provisions of the Agreement shall remain in full force and effect.


IN WITNESS WHEREOF, HST and MPC have caused this Amendment to be duly executed, all as of the date set forth above.

Marathon Petroleum Company LP
 
Hardin Street Transportation LLC
By: MPC Investment LLC, its General Partner
 
 
 
 
 
 
 
By:
/s/ C. M. Palmer
 
By:
/s/ Craig O. Pierson
 
 
 
 
 
Name:
C. M. Palmer
 
Name:
Craig O. Pierson
 
 
 
 
 
Title:
Sr. V.P. Supply Distribution and Planning
 
Title:
President
 
 
 
 
 
 
 
 
 
 






Exhibit B – Tolls

Pipeline System
Minimum Capacity (BPD)
Commitment Barrels Per Day
Toll Rates
($/BBL)
Refinery connection per Section 4.4 & 7.1
Bellevue 4” Products
5,000
2,500
1.2024
 
Columbus Locals
NA
14,100
0.4384
 
Detroit LPG – Woodhaven #1-4” LPG &
#2-4”LPG
5,700
5,700
5,900
2.0209
 
Lima – Canton 12”-16” Crude
83,900
57,500
1.0718
Canton
Lima Pump-out (Products)
28,800
13,500
0.1009
 
Louisville – Lexington 8” Products
37,300
24,300(MPC)
18,300
0.6511
 
St. James – Garyville 30” Crude
600,000
450,000
0.2774
Garyville
Toledo – Steubenville 6”-4” Products
28,800
9,800
0.9065
 
Woodhaven Buckeye – Woodhaven 8” LPG
NA
3,500
0.0505
 
Truck Unloads
 
 
 
 
Canton Crude Truck Unload
20,000 (2015-2016)
2,700 (2017+)
20,000 (2015-2016)
2,700 (2017+)
2.6355
Canton




Exhibit 10.4
SECOND AMENDMENT TO
TRANSPORTATION SERVICES AGREEMENT

THIS SECOND AMENDMENT TO TRANSPORTATION SERVICES AGREEMENT (the “Amendment”) is effective as of January 1, 2017, by and between HARDIN STREET TRANSPORTATION LLC, a Delaware limited liability company (“HST”), and MARATHON PETROLEUM COMPANY LP, a Delaware limited partnership (“MPC”), both referred to jointly as the “Parties” and each individually as a “Party”.

WITNESSETH

WHEREAS, HST and MPC entered into that certain Transportation Services Agreement dated January 1, 2015 (“Agreement”), whereby MPC desired to move Commodities on the HST Pipeline Systems;

WHEREAS, the Agreement was amended via a First Amendment dated December 1, 2016 which removed certain Pipeline Systems from the Agreement;

WHEREAS, the Parties now desire to amend the Agreement to modify the Term as set forth herein;

NOW THEREFORE, in consideration of the premises and mutual covenants set forth hereinafter, MPC and HST agree to amend the Agreement as follows:

1.
Section 2 labeled “Effective Date and Term” shall hereby be deleted in its entirety and replaced with the following:

2.    Effective Date and Term

2.1     This Agreement is effective January 1, 2015 (the “Effective Date”).

2.2 This Agreement shall be effective for a time period commencing on the Effective Date
and shall continue through December 31, 2026 (the “Initial Term”). This Agreement
shall continue for two (2) additional four (4) year renewals (each an “Extension Period”)
unless either Party provides the other Party with written notice of its intent to
terminate at least six (6) months prior to the end of the Initial Term or the then-
current Extension Period. The Initial Term and all Extension Periods, if any, shall
be referred to in this Agreement collectively as the “Term”.

2. Capitalized terms used but not defined in this Amendment shall have the meaning ascribed to such terms in the Agreement.    





3.
This Amendment may be executed in one or more counterparts, and in both original form and one or more photocopies, each of which shall be deemed to be an original, but all of which together shall be deemed to constitute one and the same instrument.

4.
Except for the provisions of the Agreement specifically addressed in this Amendment, all other provisions of the Agreement shall remain in full force and effect.

IN WITNESS WHEREOF, HST and MPC have caused this Amendment to be duly executed, all as of the date set forth above.

Marathon Petroleum Company LP
 
Hardin Street Transportation LLC
By: MPC Investment LLC, its General Partner
 
 
 
 
 
 
 
By:
/s/ C. M. Palmer
 
By:
/s/ Craig O. Pierson
 
 
 
 
 
Name:
C. M. Palmer
 
Name:
Craig O. Pierson
 
 
 
 
 
Title:
Sr. V.P. Supply Distribution and Planning
 
Title:
President
 
 
 
 
 
 
 
 
 
 


        




Exhibit 10.5
THIRD AMENDMENT TO
TRANSPORTATION SERVICES AGREEMENT

THIS THIRD AMENDMENT TO TRANSPORTATION SERVICES AGREEMENT (the “Amendment”) is effective as of January 1, 2017, by and between HARDIN STREET TRANSPORTATION LLC, a Delaware limited liability company (“HST”), and MARATHON PETROLEUM COMPANY LP, a Delaware limited partnership (“MPC”), both referred to jointly as the “Parties” and each individually as a “Party”.

WITNESSETH

WHEREAS, HST and MPC entered into that certain Transportation Services Agreement dated January 1, 2015 (“Agreement”), whereby MPC desired to move Commodities on the HST Pipeline Systems;

WHEREAS, the Agreement was amended via a First Amendment dated December 1, 2016 which removed certain Pipeline Systems from the Agreement;

WHEREAS , the Agreement was amended via a Second Amendment executed December 22, 2016 which modified the terms of the Agreement; and

WHEREAS, the Parties now desire to amend the Agreement as set forth herein;

NOW THEREFORE, in consideration of the premises and mutual covenants set forth hereinafter, MPC and HST agree to amend the Agreement as follows:

1.
Section 3.10 shall hereby be deleted in its entirety and replaced with the following:

“HST may adjust the Toll Rates annually based on the FERC inflationary index for interstate pipelines. If the FERC terminates its indexing methodology and does not adopt a new methodology, the Parties will negotiate in good faith to determine any adjustment to the Toll Rates. For the avoidance of doubt, any action taken by the FERC during the Term in response to the D.C. Circuit Court of Appeals remand of United Airlines, Inc. v. FERC, 827 F.3d 122 (D.C. Cir 2016) which would reduce the ability of master limited partnerships (MLPs) to recover income tax costs in rates, or would lower the amount of return on equity dollars that can be recovered by MLPs in rates, shall have no impact on the Toll Rates.”

2.
Section 13.5 shall be added to the Agreement and shall read as follows:

“Section 13.5 Notwithstanding anything in this Agreement to the contrary, HST shall have the right to terminate this Agreement immediately, and without liability




of any kind to MPC, in the event that HST files a tariff either with the FERC or with any state regulatory commission for transportation service over the Pipeline System.”

3. Capitalized terms used but not defined in this Amendment shall have the meaning ascribed to such terms in the Agreement.    
4.     This Amendment may be executed in one or more counterparts, and in both original form and one or more photocopies, each of which shall be deemed to be an original, but all of which together shall be deemed to constitute one and the same instrument.

5.     Except for the provisions of the Agreement specifically addressed in this Amendment, all other provisions of the Agreement shall remain in full force and effect.

IN WITNESS WHEREOF, HST and MPC have caused this Amendment to be duly executed, all as of the date set forth above.

Marathon Petroleum Company LP
 
Hardin Street Transportation LLC
By: MPC Investment LLC, its General Partner
 
 
 
 
 
 
 
By:
/s/ John S. Swearingen
 
By:
/s/ Timothy J. Aydt
 
 
 
 
 
Name:
John S. Swearingen
 
Name:
Timothy J. Aydt
 
 
 
 
 
Title:
Sr. V.P., Transportation and Logistics
 
Title:
President
 
 
 
 
 
 
 
 
 
 




Exhibit 10.6

THIRD AMENDED AND RESTATED TERMINAL SERVICES AGREEMENT

THIS THIRD AMENDED AND RESTATED TERMINAL SERVICES AGREEMENT (this “ Agreement ”) is entered into as of March 1, 2017 by and between Marathon Petroleum Company LP, a Delaware limited partnership with an address of 539 South Main Street, Findlay, Ohio 45840 (“ MPC ”), and MPLX Terminals LLC, a Delaware limited liability company with an address of 539 South Main Street, Findlay, Ohio 45840 (“ Terminal Owner ”).  Each of MPC and Terminal Owner shall be referred to herein individually as a “ Party ” or collectively as the “ Parties ”.  

WHEREAS , on the Effective Date, MPC and its Affiliates, through a series of distributions and contributions, contributed to Terminal Owner pursuant to the terms and conditions of that certain Contribution, Conveyance and Assumption Agreement by and among MPC, Terminal Owner and certain other parties signatory thereto (the “ Contribution Agreement ”):100% of the outstanding membership interests in Blanchard Terminal Company LLC, 35% of the outstanding membership interests in Guilford County Terminal Company, LLC, 50% of the outstanding membership interests in Johnston County Terminal, LLC, certain owned and leased property, both real and personal, tangible and intangible, and the rights and obligations associated therewith, each in connection with the business of owning and operating terminals for the receipt, storage, blending, additization, handling and redelivery of refined petroleum products (the “ Terminal Assets ”);

WHEREAS , concurrent with the contribution of the Terminal Assets to Terminal Owner, MPC and Terminal Owner memorialized the terms and conditions of the Parties’ commercial relationship related to the subject matter hereof in that certain Terminal Services Agreement on April 1, 2016, as first amended and restated on September 1, 2016 and second amended and restated on January 1, 2017 (the “ Original TSA ”); and

WHEREAS, pursuant to Section 14.7 of the Original TSA, MPC and Terminal Owner now desire to amend and restate the terms and conditions contained in the Original TSA.

NOW, THEREFORE , for and in consideration of the forgoing and mutual agreements herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, MPC and Terminal Owner hereby amend and restate the Original TSA in its entirety as follows:

ARTICLE 1
DEFINITIONS
1.1      Definitions . Capitalized terms used herein shall have the definitions set forth on Schedule 1.1 .
1.2      Interpretation . In this Agreement, unless the context clearly indicates otherwise: (a) words used in the singular include the plural, and words used in the plural include the singular; references to any Person include such Person’s successors and assigns but, if applicable, only if such successors and assigns are permitted by this Agreement; (b) any reference to any gender includes the other gender; (c) the words “include,” “includes” and “including” shall be

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deemed to be followed by the words “without limitation”; (d) any reference to any Article, Section or Schedule means such Article or Section of, or such Schedule to, this Agreement, as the case may be, and references in any Section or definition to any clause means such clause of such Section or definition; (e) the words “herein,” “hereunder,” “hereof,” “hereto” and words of similar import shall be deemed references to this Agreement as a whole and not to any particular Section or other provision hereof; (f) any reference to any agreement, instrument or other document means such agreement, instrument or other document as amended, supplemented and modified from time to time; (g) any reference to any law (including statutes and ordinances) means such law (including all rules and regulations promulgated thereunder) as amended, modified, codified or reenacted, in whole or in part, and in effect at the time of determining compliance or applicability; (h) relative to the determination of any period of time, “from” means “from and including,” “to” means “to but excluding” and “through” means “through and including”; (i) any references to Services to be provided by Terminal Owner to, or directed by, MPC hereunder shall be deemed to mean Services provided to or, as applicable, directed by “MPC and its designated Affiliates and customers”; (j) any references to MPC’s Products or the Products owned by MPC hereunder shall be deemed to mean the Products owned by “MPC or its designated Affiliates or customers”; and (k) the language of this Agreement shall be deemed to be the language the Parties have chosen to express their mutual intent, and no rule of strict construction shall be applied against either Party.
ARTICLE 2
TERM
2.1      Term . This Agreement shall commence on the Effective Date and continue for an initial term ending on March 31, 2026 (the “ Initial Term ”). At MPC’s sole option, MPC may elect to extend the term of this Agreement for one consecutive 5-year term (a “ Renewal Term ”) by providing written notice of its election to Terminal Owner at least 365 days prior to the end of the Initial Term. The Initial Term and any Renewal Term shall be collectively referred to as the “ Term ”.
2.2      Removal of Products upon Termination .
(a)      Removal Process . MPC, at its own expense, shall make arrangements for the removal of its Products from the Terminals and Terminal Owner shall remove and redeliver MPC’s Products in accordance with MPC’s written instructions no later than the effective date of the termination or expiration of this Agreement as to any Terminal, provided that Terminal Owner may, in its sole discretion, agree in writing to extend the time for such removal (the “ Removal Deadline ”). MPC shall reimburse Terminal Owner for any expenses reasonably incurred by Terminal Owner in removing MPC’s Products from any Terminal, including any expenses reasonably incurred by Terminal Owner for cleaning, degassing or otherwise preparing the tanks and the removal, processing, transportation or disposal of all waste generated from the storage of MPC’s Products at such Terminal.
(b)      Failure to Remove . If by the Removal Deadline MPC’s Products have not been removed from any Terminal, except to the extent any delay in removal is caused by Terminal Owner, then in addition to any other rights Terminal Owner may have under this Agreement:


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(i)      MPC shall remain obligated to perform all of the terms and conditions set forth in this Agreement as to the affected Terminal; and
(ii)      Terminal Owner shall have the right to take possession of such Products and sell them in public or private sales. In the event of such a sale, Terminal Owner shall withhold from the proceeds therefrom all amounts owed to it hereunder and all reasonable expenses of sale (including any expenses incurred by Terminal Owner for cleaning, degassing or otherwise preparing the tanks, the removal, processing, transportation or disposal of all waste generated from the storage of MPC’s Products, and reasonable attorneys’ fees and any amounts necessary to discharge any and all liens against the Products). The balance of the proceeds, if any, shall be remitted to MPC.
ARTICLE 3
SERVICES
3.1      Facilities and Services .
(a)      Terminal Facilities and Services . Terminal Owner will perform or cause to be performed terminal services for MPC, including the receipt, storage, transshipment, blending, additization, handling and redelivery of Products, as well as ethanol denaturing and other services as mutually agreed to by the Parties, pursuant to the applicable terms and conditions of this Agreement (the “ Services ”) at the facilities described on Schedule 3.1 (each listed facility being a “ Terminal ” and collectively the “ Terminals ”). Except as expressly set forth herein, Terminal Owner shall provide or cause to be provided the labor and supervision necessary to perform all Services, and Terminal Owner shall provide and maintain or cause to be provided or maintained the equipment necessary to perform the Services. All such Services performed by Terminal Owner shall be performed in a good and workmanlike manner consistent with good industry practice and in compliance with all Laws.
(b)      Marine Facilities and Services . Under Terminal Owner’s supervision, direction and control, Terminal Owner shall reserve for MPC, and permit MPC, relative to all other potential customers of Terminal Owner, exclusive access to the Terminals designated as marine docks on Schedule 3.1 (the “ Marine Docks ”). Terminal Owner shall provide or cause to be provided the labor and supervision necessary to perform all Services applicable to the Marine Docks, including tankerman services, and Terminal Owner shall provide and maintain or cause to be provided and maintained the equipment necessary to perform such Services. All such Services shall be performed in a good and workmanlike manner consistent with good industry practice and in compliance with all Laws. For the avoidance of doubt, Terminal Owner shall at all times maintain possession and control of the Marine Docks.
3.2      Receipt of Product by Terminal Owner . Delivery to Terminal Owner of Products for terminalling hereunder will vary by Terminal and shall be via pipeline, truck, rail, or marine vessel, as applicable.
3.3      Redelivery of Product by Terminal Owner . Redeliveries of MPC’s Products hereunder will vary by Terminal and shall be via pipeline, truck, rail, or marine vessel, as applicable. MPC shall direct Terminal Owner’s redelivery of MPC’s Products from the Terminals.

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Terminal Owner shall segregate Products as directed by MPC and limit or cease delivery of Products to MPC’s customers as may be directed by MPC from time to time; provided that any terminal modifications, improvements or other projects required to segregate Products as directed by MPC shall be subject to Section 5.5 .
3.4      Measurements .
(a)      Receipts from and Redeliveries into Pipelines . Measurement of quantities of Product delivered from or into pipelines shall be by the applicable pipeline’s meters. If a meter is not present at the applicable Terminal, measurement of quantities of Product delivered from or into pipelines shall be by tank gauges.
(b)      Receipts from and Redeliveries into Transport Trucks . Measurement of quantities of Product received from transport truck shall be determined by the applicable bill of lading. Measurement of quantities of Product delivered into transport trucks shall be by Terminal Owner’s loading rack meters.
(c)      Receipts from and Redeliveries into Rail . Measurement of quantities of Product received from rail shall be determined by PTD. Measurement of quantities of Product delivered into rail shall be determined by Terminal Owner’s loading rack meters. If a meter is not present at the applicable Terminal, measurement of quantities of Product delivered into rail shall be by tank gauges.
(d)      Receipts from and Redeliveries into Marine Vessels . Volumes of Product received or delivered hereunder from marine vessels shall be determined by gauging Terminal Owner’s shore tanks before and after each such receipt or delivery. MPC, at its option, may have a representative or independent inspector present to witness the gauging of Terminal Owner’s tanks and Terminal Owner shall provide reasonable advance notice to MPC of any such gauging. If MPC fails to have a representative or independent inspector present, the measurements taken by Terminal Owner’s representative shall be deemed correct.
(e)      Temperature Correction . All measurements of Product volumes hereunder shall be corrected to 60 degrees Fahrenheit in accordance with methods and procedures as specified in the American Petroleum Institute’s Manual of Petroleum Measurements Standards, Chapter 11 Physical Properties Data.
(f)      Meter Maintenance and Calibration . Terminal Owner shall maintain seals on its meters, and shall test and calibrate its meters or cause such to be done in accordance with methods and procedures specified in the National Institute of Standards and Technology Handbook 44 and in accordance with individual state weights and measurements requirements. Promptly following any such test, Terminal Owner shall restore or cause to be restored to a condition of accuracy any meter found to be inaccurate. Terminal Owner shall test and calibrate all thermal measurement devices as often as necessary, and promptly following any such test, shall restore or cause to be restored to a condition of accuracy any thermal measurement devices found to be out of acceptable tolerance. Upon request by MPC, Terminal Owner shall give notice to MPC of the next meter calibration for each request in order that MPC may have a representative present.
3.5      Additive Injection Services .

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(a)      Additive Services . MPC may direct Terminal Owner to inject additives into Products as a part of the Services hereunder. Fees for additive injection-related Services performed at each Terminal are included in the per Gallon throughput fees set forth in Schedule 5.1 .
(b)      Additive Equipment . MPC may request Terminal Owner to provide Services utilizing any additive equipment in service at the applicable Terminal as of the Effective Date. If MPC requests Services requiring additional equipment to inject gasoline or distillate additives at the applicable Terminal, such equipment shall be installed by Terminal Owner at MPC’s expense pursuant to Section 5.5(a) . Terminal Owner shall own and maintain any such additional equipment.
(c)      Additive Blending . MPC shall be responsible for providing the additives, including, lubricity, conductivity, detergents, generic dyes and additives that it desires to be injected into the Products at the Terminal. Terminal Owner shall manage the inventory of MPC additives utilized hereunder at the Terminals; provided that , with respect to additives to be blended for MPC customers using non-MPC additives, Terminal Owner’s inventory management obligations for such additives shall be limited to providing monthly reports of such additive volumes. Terminal Owner shall inject additives into the Products as directed by MPC. MPC shall provide to Terminal Owner the appropriate treat rates for the proprietary additives. MPC shall update fuels registrations to include such additives to be used at any Terminal with the United States Environmental Protection Agency. Terminal Owner shall place sufficient additive into Products delivered to MPC so as to comply with applicable Laws and Product specifications. For any delivery of Products blended with additive, Terminal Owner shall provide a product transfer document (a “ PTD ”) stating that the gasoline contains additive in accordance with applicable Laws. In the event that Terminal Owner’s automatic equipment should break down such that additive is not automatically added to a load of gasoline for MPC, Terminal Owner shall, to the extent permitted by Law, use commercially reasonable efforts to manually additize the load so that the delivered Product receives enough additive to meet the lowest additive concentration as registered with the United States Environmental Protection Agency, or higher concentrations as directed by MPC. Terminal Owner shall keep accurate records of any such manual additization.
3.6      Blending Services .
(a)      Renewable Blending . MPC may direct Terminal Owner to blend ethanol, biodiesel, biomass-based diesel or renewable diesel with any Products as a part of the Services hereunder. Subject to Section 3.6(c) , Terminal Owner shall provide or cause to be provided at each applicable Terminal blending services utilizing equipment including tanks, pumps, piping, and other equipment (the “ Blending Equipment ”) necessary to blend ethanol, biodiesel and renewable diesel into Products. MPC shall be responsible for providing all of the ethanol, biodiesel and renewable diesel that it desires to be blended with Products at a Terminal. Terminal Owner shall blend ethanol, biodiesel and renewable diesel into the Products as directed by MPC. Terminal Owner shall provide a PTD with information about the blending of ethanol, biodiesel, biomass-based diesel or renewable diesel as directed by MPC, in addition to language required by applicable Laws. Terminal Owner shall also provide services with respect to in-tank denaturing of ethanol as a part of the Services hereunder. Except for fees related to ethanol denaturing services which are separately set forth in Schedule 5.1 , Fees for blending-related Services performed at each Terminal are included in the per Gallon throughput fees set forth in Schedule 5.1 .


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(b)      Butane Blending . MPC may direct Terminal Owner to blend butane into Products as a part of the Services hereunder. Subject to Section 3.6(c) , Terminal Owner shall provide or cause to be provided at each applicable Terminal such Services utilizing the Blending Equipment necessary to blend butane into Products. MPC shall be responsible for providing all of the butane that it desires to be blended with Products at a Terminal. Terminal Owner shall blend butane into the Products as directed by MPC. Fees for butane blending-related Services performed at each Terminal are set forth in Schedule 5.1 .
(c)      Blending Equipment . MPC may request Terminal Owner to provide Services utilizing any Blending Equipment in service at the applicable Terminal as of the Effective Date. If MPC requests Services requiring additional equipment to blend Products at the applicable Terminal, such equipment shall be installed by Terminal Owner at MPC’s expense pursuant to Section 5.5(a) subject to Terminal Owner’s consent, such consent not to be unreasonably withheld, conditioned or delayed. Terminal Owner will own and maintain any such additional equipment and such equipment shall be deemed “Blending Equipment” for purposes of this Agreement. Terminal Owner shall maintain and operate all Blending Equipment in accordance with customary industry standards, including all required reporting and record keeping required by Law.
3.7      Terminal Automation System and Reports . Terminal Owner shall utilize a terminal automation system (the “ TAS ”) to track Product receipts and deliveries for MPC and its customers as directed by MPC. Terminal Owner shall generate and provide to MPC daily stock, tank inventory, receipt, delivery, bulk transfer and additive reports at each end-of-day close of inventory. Terminal Owner shall also furnish a Monthly Terminal inventory report. MPC shall have the right, upon reasonable notice and during ordinary business hours, to audit the previous twelve months’ inventories of MPC and its customers’ Product in storage at the Terminals and the data supporting such inventories.
3.8      Hours of Operation . Except as otherwise set forth in this Agreement or on Schedule 3.1 , Terminal Owner shall operate and maintain all of the Terminals on a continuous basis, 24 hours per day, 7 days per week and in accordance with the terms and provisions of this Agreement.
3.9      Planned and Unplanned Downtime . Terminal Owner shall notify MPC in writing 2 weeks or as soon as reasonably possible under the circumstances in advance of any 2-hour planned downtime and 3 weeks or as soon as reasonably possible under the circumstances in advance of any planned downtime expected to last 24 hours or more; provided that , notwithstanding the foregoing, Terminal Owner shall notify MPC as early as reasonably possible for any planned downtime expected to last for an extended duration. Terminal Owner shall notify MPC as soon as reasonably possible in the event of any unplanned downtime if the duration is expected to last 2 or more hours. Terminal Owner shall promptly notify MPC of any Terminal restart following planned or unplanned downtime.
3.10      Terminal Access . MPC shall cause all authorized carriers, including carriers authorized pursuant to a MPC Third Party Contract, to (a) maintain with Terminal Owner a fully executed terminal access agreement, the form of which shall be reasonably determined by Terminal Owner, (b) be in compliance with all insurance requirements set forth in such terminal access agreement prior to entering the facility, (c) observe and comply with Terminal Owner’s policies, rules and regulations governing truck loading and safety at the Terminal, and (d) ensure such

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carrier’s equipment meets all minimum requirements as specified by Terminal Owner from time to time with respect to loading Products at the applicable Terminal. Terminal Owner shall have the right to take reasonable action regarding non-compliance by any such carriers consistent with Terminal Owner’s policies, rules and regulations governing truck loading and safety or deficient equipment, including refusal to grant access to the applicable Terminal. Terminal Owner shall provide MPC with all applicable written policies, rules and regulations upon MPC’s written request.
3.11      Inspection and Vetting . MPC may review and inspect all (a) safety, storage, and containment procedures and facilities; (b) product quality-related programs, procedures and processes; and (c) health, environment, safety and security programs, procedures and processes, in each case of the foregoing (a), (b) and (c), at the Terminals, including the review of Terminal Owner’s insurance policies. If the Terminals are not in compliance with generally-accepted industrial standards, MPC’s then current vetting program or applicable Laws, and Terminal Owner fails to correct any deficiency identified by MPC to MPC’s satisfaction within 30 days of being notified of such deficiency, MPC may terminate this Agreement as to such non-compliant Terminal. MPC shall provide a copy of its then current vetting procedures to Terminal Owner upon Terminal Owner’s written request.
3.12      Public Use . This Agreement is made as an accommodation to MPC. In no event shall Services provided by Terminal Owner be deemed to be those of a public utility or a common carrier. If any action is taken or threatened by any Governmental Authority to declare the Services provided by Terminal Owner hereunder to be those of a public utility or a common carrier, in that event, at the option of the Terminal Owner and upon MPC’s receipt of Terminal Owner’s notice, Terminal Owner and MPC shall negotiate in good faith to restructure and restate this Agreement or, in the event the Parties are unable to reach an agreement following such good faith efforts, Terminal Owner may terminate this Agreement on the effective date of such action as to any affected Terminal or Services.
3.13      MPC Third Party Contracts . MPC may contract with third Persons for the provision of Services up to, but not exceeding, the Reserved Capacity (any such contract, a “ MPC Third Party Contract ”) and Terminal Owner shall provide such Services as directed by MPC.
3.14      Services at Newly Acquired Terminals . Terminal Owner and its Affiliates may not offer or enter into any agreement with any Person other than MPC with respect to Services in connection with any terminal that is subsequently acquired by Terminal Owner or its Affiliates without first offering to MPC the opportunity to procure such Services at such subsequently acquired terminal from Terminal Owner; provided , however , this Section 3.14 shall not apply to any offer made or agreement entered into or assumed as a part of and concurrently with the closing of such terminal acquisition. If MPC indicates its intent to exercise its rights pursuant to this Section 3.14 within 20 days of receipt of Terminal Owner’s written notice, the Parties shall modify Schedule 3.1 and Schedule 5.1 as appropriate to reflect any additional Terminals, new Reserved Capacity, new or modified Minimum Quarterly Terminal Volume Commitment and new or modified Fees. If MPC waives or fails to indicate its intent to exercise its rights pursuant to this Section 3.14 within 20 days of receipt of Terminal Owner’s written notice, Terminal Owner may, for the next 90 days, proceed with negotiations and enter into an agreement with any third Person with respect to the provision of Services in connection with such subsequently acquired terminal. If no such contract with a third Person is consummated during such 90 day period, the terms and

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conditions of this Section 3.14 shall again become effective as to procurement of Services at such subsequently acquired terminal.

ARTICLE 4
MINIMUM VOLUME COMMITMENTS
4.1      Quarterly Volume Commitment .
(a)      Commitment . During each Calendar Quarter, MPC shall tender the respective volumes of Products identified by Calendar Quarter for each Terminal in Schedule 3.1 (each a “ Minimum Quarterly Terminal Volume Commitment ”) for redelivery (including transshipments but excluding Transmix) at each Terminal.
(b)      Third Party Throughput Credit . If a third Person throughputs volumes pursuant to a MPC Third Party Contract at the Terminals during any Calendar Quarter, such volumes shall be applied to the applicable Minimum Quarterly Terminal Volume Commitment for each such Terminal.
4.2      Partial Period Proration . If this Agreement is terminated on any day other than the last day of a Calendar Quarter, then any calculation determined with respect to a Calendar Quarter will be prorated by a fraction, the numerator of which is the number of days in that part of the Calendar Quarter ending on the date of such termination and the denominator of which is the number of days in the Calendar Quarter. If this Agreement is terminated on any day other than March 31, then any calculation determined with respect to a full year (April 1 through March 31) will be prorated by a fraction, the numerator of which is the number of days in that part of the year ending on the date of such termination and the denominator of which is the number of days in such year.
4.3      Special Provisions Relating to Minimum Volume Commitments .
(a)      Force Majeure Events . At the conclusion of a Force Majeure event lasting longer than 7 days, the applicable Minimum Quarterly Terminal Volume Commitments at affected Terminals with respect to each Calendar Quarter in which the suspension due to the Force Majeure event remained in effect at such Terminals shall be ratably reduced to reflect such suspension; provided , however , that in the event of a Force Majeure event affecting MPC and not Terminal Owner (a “ MPC Force Majeure ”) such ratable reduction of the applicable Minimum Quarterly Terminal Volume Commitments shall be limited to the lesser of (i) the actual ratable reduction or (ii) a 5% reduction for the duration of such MPC Force Majeure.
(b)      Action by Governmental Authorities and Landowners . If Terminal Owner’s use of all or part of a Terminal for the provision of Services is restrained, enjoined, restricted or terminated by any Governmental Authority, any right of eminent domain or the owner of leased land (in each case, other than a Force Majeure event), Terminal Owner, upon being notified of such restraint, enjoinder, restriction or termination, shall notify MPC and the applicable Minimum Quarterly Terminal Volume Commitments shall be proportionately reduced to the extent that Terminal Owner’s use of the applicable Terminal is so restrained, enjoined, restricted or terminated.

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(c)      Other Loss of Available Capacity . If, for any reason not otherwise covered pursuant to Section 4.3(a) or Section 4.3(b) , the average daily capacity of a Terminal for any Service provided during a given Calendar Quarter is less than the applicable Minimum Quarterly Terminal Volume Commitments for such Calendar Quarter, or if the capacity of a Terminal for any Service is required to be allocated among third Persons with the result that the average daily capacity of the Terminal available for any Service during a given Calendar Quarter is less than the applicable Minimum Quarterly Terminal Volume Commitments for such Calendar Quarter, then such Minimum Quarterly Terminal Volume Commitments for the applicable Calendar Quarter shall be reduced to equal the average daily capacity available to MPC during such Calendar Quarter.
(d)      Prospective Volume Adjustment Opportunity .
(i)      Commencing with the fifth anniversary of the Effective Date and continuing every five years under the Term thereafter (each such date, an “ Adjustment Opportunity Date ”), Terminal Owner shall provide a statement to MPC, along with reasonable supporting documentation, showing (A) the Terminals or Terminal Complexes for which a Terminal Deficiency Payment was made during the previous five year period; (B) the average actual volumes of Products tendered for redelivery (including transshipments but excluding Transmix) at each such Terminal or Terminal Complex, as applicable, on a Calendar Quarter basis; and (C) a calculation showing the percentage decrease of the volumes calculated in Section 4.3(d)(i)(B) (“x”) versus the Minimum Quarterly Terminal Volume Commitments or Aggregate Committed Complex Volume, as applicable (“y”), such calculation being expressed mathematically as (x-y)/y.
(ii)      If the percentage reduction calculated for any such Terminal or Terminal Complex, as applicable, in Section 4.3(d)(i)(C) is equal to or greater than 25%, then MPC, at its option, may require Terminal Owner to negotiate in good faith, a reasonable reduction in the Minimum Quarterly Terminal Volume Commitments for such Terminals not to exceed the percentage reduction determined in Section 4.3(d)(i)(C) ; provided , however , that if MPC requires Terminal Owner to negotiate a volume adjustment pursuant to this Section, Terminal Owner may require MPC to negotiate in good faith (A) a reasonable reduction in the Reserved Capacity for such Terminals not to exceed the percentage difference determined in Section 4.3(d)(i)(C) , and (B) a reasonable increase in the Minimum Quarterly Terminal Volume Commitments at Terminals where the average actual volumes of Products tendered for redelivery (including transshipments but excluding Transmix) at each such Terminal on a Calendar Quarter basis exceeds the Minimum Quarterly Terminal Volume Commitments by 25% or more for the same previous five year period.
(iii)      For the avoidance of doubt, (A) Terminal Owner shall have no right to seek the volume adjustment described in the proviso of Section 4.3(d)(ii) unless it first agrees with MPC to a reduction of the Minimum Quarterly Terminal Volume Commitment with respect to the applicable Adjustment Opportunity Date, and (B) any adjustment to a Minimum Quarterly Terminal Volume Commitment made pursuant to this Section shall be applied only prospectively from the Adjustment Opportunity Date and shall not be further adjusted (unless otherwise agreed to by the Parties pursuant to a valid amendment hereunder) until the next Adjustment Opportunity Date.

4.4      Reserved Capacity .

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(a)      Reserved Capacity . At a minimum, the full throughput capacity at each Terminal (the “ Reserved Capacity ” of such Terminal) and the lanes, docks and shell capacities set forth on Schedule 3.1 supporting the Reserved Capacity at each Terminal (collectively, the “ RC Assets” ) as may be adjusted pursuant to this Agreement, shall be kept operational by Terminal Owner during the Term. Prior to making or allowing any reduction to the RC Assets for each Terminal set forth on Schedule 3.1 , Terminal Owner shall meet with MPC, negotiate in good faith with respect to any reduction in Fees hereunder and obtain MPC’s written consent to such changes in Reserved Capacity.
(b)      Exclusivity . The Reserved Capacity shall be allocated to MPC and the Fees reflect MPC’s right hereunder to the exclusive use of such Reserved Capacity.
(c)      MPC Non-Participation in Terminal Projects . Notwithstanding anything to the contrary herein, if MPC declines participation in a Terminal Project which increases the throughput capacity at any Terminal and Terminal Owner elects to proceed with such Terminal Project without reimbursement from MPC pursuant to Section 5.5(a) , such increased throughput capacity shall be excluded from the Reserved Capacity and Terminal Owner may enter into one or more agreements with third Persons in respect of such throughput capacity.
(d)      Terminal Owner Third Party Contracts . Terminal Owner shall not make any commitments to third Persons that would interfere with MPC’s ability to utilize the Reserved Capacity, except as otherwise permitted pursuant to this Agreement or consented to in advance by MPC, which consent may be conditioned or withheld in MPC’s sole discretion. If MPC provides such consent, Terminal Owner may enter into one or more agreements with third Persons in respect of utilization of such Terminal capacity (that, absent such consent, would otherwise be Reserved Capacity) and the Reserved Capacity shall be accordingly reduced at such Terminal and Schedule 3.1 shall be modified by the Parties accordingly.
ARTICLE 5
COMPENSATION AND PAYMENT
5.1      Fees . In consideration of the Reserved Capacity and the Services performed by Terminal Owner hereunder, MPC shall pay Terminal Owner the following fees (collectively, the “ Fees ”):
(a)      Base Throughput Fee . The base throughput fee for each corresponding Terminal set forth on Schedule 5.1 (each a “ Base Throughput Fee ”) shall apply to volumes of MPC’s Products (excluding Transmix) redelivered hereunder up to the Minimum Quarterly Terminal Volume Commitment. The Base Throughput Fee shall be charged on a per Gallon basis measured at the redelivery point and, except for the Marine Docks, butane blending, ethanol denaturing, and Unit Train Ethanol Receipts, is inclusive of all Services provided hereunder, including additization, renewable fuel blending and Transmix handling.
(b)      Excess Throughput Fee . For volume of MPC’s Products (excluding Transmix) redelivered hereunder in excess of the Minimum Quarterly Terminal Volume Commitment, the excess throughput fee for each corresponding Terminal set forth on Schedule 5.1 (each an “ Excess Throughput Fee ”) shall apply. The Excess Throughput Fee shall be charged on a

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per Gallon basis measured at the redelivery point and, except for the Marine Docks, butane blending, ethanol denaturing, and Unit Train Ethanol Receipts, is inclusive of all Services provided hereunder, including additization, renewable fuel blending and Transmix handling.
(c)      Marine Docks . With respect to the Marine Docks, the Fees shall also include a Monthly facility fee set forth on Schedule 5.1 for the exclusive suite of Services typically applicable to marine dock facilities and provided at the Marine Docks. Such facility fees for the Marine Docks shall be payable by MPC on a Monthly basis during the Term, regardless of the actual volumes of Products throughput by or on behalf of MPC at such Marine Docks.
(d)      Butane Blending . The fees for butane blending Services provided by Terminal Owner to MPC or its designated customers hereunder shall be calculated and charged as set forth on Schedule 5.1 .
(e)      Ethanol Denaturing . The fees for ethanol denaturing Services provided by Terminal Owner hereunder shall be calculated and charged as set forth on Schedule 5.1.
(f)      Deficiency .
(i)      Quarterly Deficiency . If MPC fails to meet any of its Minimum Quarterly Terminal Volume Commitments during any Calendar Quarter, then MPC will pay Terminal Owner a deficiency payment (each, a “ Terminal Deficiency Payment ”) equal to the volume in Gallons of the Minimum Quarterly Terminal Volume Commitment deficiency multiplied by the applicable Base Throughput Fee for the affected Terminal; provided , however , that notwithstanding anything to the contrary herein including the fact that MPC failed to meet a Minimum Quarterly Terminal Volume Commitment for a particular Terminal during a Calendar Quarter, (A) MPC shall not be liable for payment of any Terminal Deficiency Payment if (1) such Terminal is included in a Terminal Complex; and (2) the applicable Aggregate Actual Complex Volume for the applicable Calendar Quarter meets or exceeds the Aggregate Committed Complex Volume for such Calendar Quarter; and (B) if, with respect to any Terminal Complex, the Aggregate Committed Complex Volume for such Calendar Quarter exceeds the Aggregate Actual Complex Volume for such Calendar Quarter, the Terminal Deficiency Payment for each Terminal included in such Terminal Complex which failed to meet its Minimum Quarterly Terminal Volume Commitment will be an amount equal to the product of: (1) the volume in Gallons of the Minimum Quarterly Terminal Volume Commitment deficiency for such Terminal divided by the sum of the differences between the volume in Gallons of the Minimum Quarterly Terminal Volume Commitment and the actual volume of Products in Gallons tendered for redelivery at each of the Terminals in such Terminal Complex that experienced a deficiency during such Calendar Quarter, (2) multiplied by the difference by which the Aggregate Committed Complex Volume for such Calendar Quarter exceeds the Aggregate Actual Complex Volume for such Calendar Quarter, and (3) multiplied by the applicable Base Throughput Fee for such Terminal.
(ii)      Quarterly True-Up . Promptly following each Calendar Quarter, Terminal Owner shall provide MPC a written statement showing the Quarterly Aggregate Volume Commitment versus the Actual Quarterly Aggregate Volume. If the Actual Quarterly Aggregate Volume exceeds the Quarterly Aggregate Volume Commitment, MPC shall not owe and shall be relieved from payment to Terminal Owner of any Terminal Deficiency Payments determined pursuant to Section 5.1(f)(i) for the applicable Calendar Quarter.

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(iii)      Exclusive Remedy . Section 5.1(f) sets forth Terminal Owner’s sole and exclusive remedy for MPC’s failure to meet any of its Minimum Quarterly Terminal Volume Commitments or, if applicable, Aggregate Committed Complex Volumes, during any applicable Calendar Quarter.
(g)      Unit Train Ethanol Receipts . The fees for Services provided by Terminal Owner to MPC to support Unit Train Ethanol Receipts shall be calculated and charged as set forth on Schedule 5.1.
5.2      Taxes . The Fees are exclusive of any and all inspection fees, sales taxes, consumer excise taxes, or any other taxes of any Governmental Authority and other charges which may be levied, assessed or due upon the Services provided by Terminal Owner, except for taxes based on or measured by Terminal Owner’s income, gross receipts or net worth (collectively “ Taxes ”). MPC shall render payment of Taxes due and payable directly to the taxing Governmental Authority, unless such Taxes are collected and remitted to the taxing Governmental Authority by Terminal Owner, in which case, such Taxes shall be passed through to MPC, and identified as Taxes on the Monthly invoice. MPC shall provide any applicable tax exemption certificates to Terminal Owner for purposes of the collection and remittance of Taxes under this Agreement. Each Party is responsible for all Taxes in respect of its own real and personal property.
5.3      Adjustments . As of January 1, 2017, and as of January 1 of each year thereafter during the Term, Terminal Owner shall upwardly adjust each of the Fees (excluding fees for Unit Train Ethanol Receipts) annually by two percent (2%).
5.4      Invoices; Payment . Terminal Owner shall furnish MPC a Monthly invoice setting forth the total Fees and separately stating each of the Taxes payable with respect to Services performed hereunder during the preceding calendar Month and any other amounts due, including, as applicable, any quarterly Terminal Deficiency Payments. Any credits due MPC pursuant to Schedule 5.1 , Section 7.1(c) or Section 7.2 and charges for VRU Gains pursuant to Section 7.3 shall also be reflected on the invoice for the month in which the applicable credit, losses or VRU Gains occurred. MPC shall pay such invoice within 10 days of the date of receipt thereof.
5.5      Terminal Projects .
(a)      Terminal Projects . With respect to any Terminal, (i) Terminal Owner may propose projects to MPC which expand, modify, debottleneck or otherwise enhance the capacity of the Terminal or ability of Terminal Owner to provide Services to MPC; and (ii) MPC may request Terminal Owner to complete projects, including tank switches or other reconfigurations of the Terminals on behalf of MPC (in each case of subparts (i) and (ii), a “ Terminal Project ”). Terminal Projects will be identified and agreed upon by both Parties prior to the conceptual or feasibility phase of such Terminal Project. If Terminal Owner and MPC agree to undertake a Terminal Project, MPC shall reimburse Terminal Owner upon completion or termination of such Terminal Project or, at Terminal Owner’s option, and if the Parties agree, any applicable Fees will be increased, or additional fees shall be added to Schedule 5.1 , or an alternate mechanism shall be adopted to allow Terminal Owner to recover expenditures relating to the Terminal Project over time (each, a “ Project Reimbursement Method .”) The terms agreed upon by the Parties with respect to the applicable Terminal Project and the Project Reimbursement Method shall be memorialized in an agreement known as the “ Project and Services Recovery Agreement ” and shall be signed by

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Authorized Representatives of each Party. If a Terminal Project increases or reduces the RC Assets at a particular Terminal as shown on Schedule 3.1 of this Agreement, the Parties shall, at the written request of either Party, execute one or more amendments, including without limitation, Schedule 3.1 and Schedule 5.1 of this Agreement, to reflect said change.
(b)      Regulatory Projects . If, after the Effective Date, Terminal Owner incurs increased costs in operations or is required to make modifications to its Terminals in connection with new or amended Laws, such modifications known as “ Regulatory Projects ,” MPC shall reimburse Terminal Owner, in each case, for MPC’s proportionate share of such costs or, at Terminal Owner’s option, and if the Parties agree, the Parties will select a Project Reimbursement Method to allow Terminal Owner to recover such costs over time. The terms agreed upon by the Parties with respect to any Regulatory Projects and the Project Reimbursement Method associated therewith shall be memorialized in a Project and Services Recovery Agreement and shall be signed by Authorized Representatives of each Party. If Regulatory Projects completed pursuant to this Section 5.5(b) increase or reduce the RC Assets at a particular Terminal as shown on Schedule 3.1 of this Agreement, the Parties shall, at the written request of either Party, execute one or more amendments, including without limitation, Schedule 3.1 and Schedule 5.1 of this Agreement, to reflect said change.
5.6      Audit . Terminal Owner will retain its books and records related to the charges to MPC for Services provided hereunder for a period of at least 2 years from the date the Services are invoiced to MPC. MPC may audit such books and records at Terminal Owner’s offices where such books and records are stored upon not less than 21 days’ prior written notice. Any such audit will be at MPC’s sole expense and will take place during Terminal Owner’s business hours.
ARTICLE 6
TITLE AND CUSTODY
6.1      Title . Title to all Products delivered by MPC to Terminal Owner hereunder shall be and remain in the name of MPC and Terminal Owner acknowledges it has no title to or interest in said Products. Terminal Owner shall not create, incur or suffer to exist any pledge, security interest, lien, levy, or other encumbrance of or upon any such Products and will make all payments when due, the nonpayment of which might result in the imposition of such lien or levy on the Products; provided , however , that Terminal Owner shall not be required to make any payments on behalf of MPC. If any such lien or levy does attach to the Products, Terminal Owner shall promptly make all payments or, at its option, take such other action necessary or prudent in its discretion to obtain the release and discharge of same.
6.2      Custody .
(a)      Custody of Receipts . Custody of all Products received by Terminal Owner at the Terminal via (i) truck or rail shall pass to Terminal Owner when such Products pass the last permanent flange connection between the delivering truck’s or railcar’s unloading assembly and the receiving pipeline at the Terminal; (ii) a connecting pipeline shall pass to Terminal Owner when such Products pass the flange connection between the delivering pipeline and the intake manifold of the Terminal; and (iii) marine vessel shall pass to Terminal Owner as such Products pass the off-

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loading arm flange connection between the marine vessel and the Terminal’s receiving hose, dock connection or pipeline.
(b)      Custody of Redeliveries . Custody of all Products redelivered to MPC or its customers from the Terminal via: (i) truck or rail shall pass back to MPC or its customer, as applicable, when such Products pass the connection between the Terminal’s loading arm and the receiving truck or railcar; (ii) a connecting pipeline shall pass back to MPC or its customer when such Products pass the discharge flange connection at the demarcation point between the discharge manifold of the Terminal and the receiving pipeline and (iii) marine vessel shall pass back to MPC or its customer when such Products pass the connection between the Terminal’s discharge hose, dock connection or pipeline and the marine vessel’s loading arm.
6.3      Tank Heels . A portion of MPC’s Product inventory at the Terminals shall be allocated to tank heels and not be available for delivery. The portion of MPC’s Product inventory allocated to tank heels shall be calculated on an annual basis for each Product at the Terminals separately for MPC and, if designated by MPC, MPC’s customers, according to the following formula: (the average minimum total available storage space at the Terminal for MPC and its designated customers divided by the Total Storage Space) multiplied by the Total Tank Heels. The tank heels for the Terminals shall be returned to MPC or its customers, as applicable, at the end of the Term and may be pulled by MPC or its customers, as applicable, at any time within 120 days of the end of the Term.
ARTICLE 7
PRODUCT LOSSES, GAINS AND DOWNGRADES
7.1      Ordinary Handling Losses .
(a)      Evaporation, Clingage, Shrinkage and Line Losses . Terminal Owner anticipates that in the normal course of its handling, storage and transport, as applicable, of MPC’s Products, there will be evaporation, clingage, shrinkage, and line losses (“ Ordinary Handling Losses ”). As such, MPC acknowledges that the quantity of Products it delivers to the Terminals may differ from the amount actually redelivered by Terminal Owner from the Terminals.
(b)      MPC Responsibility . MPC shall be responsible, and Terminal Owner may make adjustments, for such quantity differences to reflect Ordinary Handling Losses of MPC’s Products up to 0.25% of the total volume of MPC’s Products redelivered by Terminal Owner each Month.
(c)      Terminal Owner Responsibility . Subject to Section 7.2 , Section 7.5 and MPC’s reasonable confirmation of Terminal Owner’s probable responsibility following a duly conducted investigation of the Ordinary Handling Losses, Terminal Owner shall be responsible for quantity differences to reflect Ordinary Handling Losses of MPC’s Products in excess of 0.25% of the volume of MPC’s Products redelivered by Terminal Owner across all of the Terminals each Month. Any such Ordinary Handling Losses shall be settled and reflected as a credit to MPC on the invoice for such Month in an amount equal to the Gallons of Ordinary Handling Losses in excess of 0.25% of the volume of MPC’s Products redelivered by Terminal Owner each Month multiplied by the appropriate market-based pricing formula set forth on Schedule 7.1 (each, a “ Market Price

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Formula ”). This Section 7.1(c) sets forth MPC’s sole and exclusive remedy for Ordinary Handling Losses.
7.2      Extraordinary Losses and Downgrades . Excluding losses of Products which are Ordinary Handling Losses subject to Section 7.1 , Terminal Owner shall be responsible for downgraded, damaged, lost, or destroyed Products (each, a “ Product Incident ”) that exceed one - hundred (100) barrels per Product Incident, but only to the extent such Product Incident is caused by the negligence, gross negligence or willful misconduct of Terminal Owner in the performance of its obligations under this Agreement (the “ Extraordinary Losses ”). Any such Extraordinary Losses shall be promptly self-reported in writing by Terminal Owner to MPC and thereafter settled and reflected as a credit to MPC on the invoice for such Month in an amount equal to, as applicable, (a) the decrease in value of the downgraded Product, or (b) the Gallons of Extraordinary Losses multiplied by the appropriate Market Price Formula for the Terminal in question as agreed to by the Parties. Terminal Owner shall account for the volume of Product downgraded or lost, and MPC’s inventory of Products and interface shall be appropriately adjusted. This Section 7.2 sets forth MPC’s sole and exclusive remedy for Extraordinary Losses.
7.3      Gains .
(a)      Vapor Recovery Unit Gains . Each Month, Terminal Owner shall calculate the Gallons of gains in MPC’s Products resulting from use of vapor recovery units at each Terminal in accordance with the formula set forth on Schedule 7.3(a) (the “ VRU Gains ”). MPC shall retain any such VRU Gains for each Month in its inventory; provided , that , Terminal Owner’s invoice to MPC for such Month shall include a charge for such VRU Gains in an amount equal to the Gallons of VRU Gains multiplied by the appropriate Market Price Formula for the Terminal in question as agreed to by the Parties.
(b)      Other Gains . Excluding VRU Gains, all gains of MPC’s Products by Terminal Owner each Month at a Terminal shall belong to MPC.
7.4      Loss and Gain Reconciliation . Terminal Owner shall reconcile the balance of MPC’s Product gains and losses, including VRU Gains, Ordinary Handling Losses and Extraordinary Losses, at the end of each Month and adjust MPC’s inventory based on such reconciliation. The Product gain or loss shall be prorated by the total volume MPC throughputs at each Terminal versus the total volume of Products throughput at such Terminal during such Month.
7.5      Transmix . Interface volume (“ Transmix ”) received shall be allocated among MPC and other customers receiving Products generating such Transmix in the same shipment or stored in commingled storage in proportion to each customer’s volume of Products in such shipment or storage. MPC shall remove its Transmix upon notice from Terminal Owner and shall be subject to additional Transmix handling fees upon its removal. If Transmix is not removed within 15 days after notification (such time period to be extended to the extent of any delay of hindrance by Terminal Owner, its agents or contractors for any reason), Terminal Owner shall have the right to sell such Transmix at market rates and return any proceeds to MPC, less applicable Transmix handling fees in effect at the time of such sale.


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ARTICLE 8
PRODUCT QUALITY
8.1      Quality . MPC shall not deliver, or cause to be delivered, any Non-Conforming Product into storage in any Terminal. In the event the Parties disagree as to the existence or extent of a failure of Product received from or redelivered to MPC to meet Product specifications provided by the applicable connecting pipeline operator and the specifications for such Products as determined by applicable Law, samples shall be taken and referred to an independent inspection laboratory or MPC’s Research and Analytical Development laboratory, as is mutually agreeable to both Parties for analysis and any necessary investigation. The inspector’s fee for services rendered and all other expenses incurred by either Party in connection with such inspection and investigation shall be borne equally by Terminal Owner and MPC.
8.2      Environmental Fuels Requirements; Oversight Programs . The Parties shall establish an oversight program in compliance with applicable Laws which program, at a minimum, shall allow the applicable Party to satisfy an affirmative defense to presumptive liability under the RVP program, the gasoline sulfur program, the ultra-low sulfur diesel fuel program, the RFG program, or the gasoline-ethanol blend requirements for Products which are subject to such programs. Gasoline-ethanol blend oversight shall include regular checks to reconcile volumes of ethanol in inventory and regular checks of equipment for proper ethanol blend rates.  To the extent Terminal Owner provides Services involving RFG or RBOB, it shall conduct, or cause to be conducted, periodic sampling and testing of representative RFG or RBOB for oxygen, benzene, RVP (summer only) or volatile organic compound emission performance.  Each Party and its Affiliates shall be entitled to utilize any of the information obtained from such oversight program as if it were such Party’s own information.  To the extent Terminal Owner provides Services involving different levels of RVP Product during the summer RVP season, Terminal Owner shall maintain a program to ensure that a recipient of Product for a specified low RVP destination is locked out from access to non-conforming high RVP Product.  Non-destination specific loading cards shall not carry such Product restrictions.  To the extent Terminal Owner provides Services involving both RFG and conventional at a Terminal, Terminal Owner shall maintain a program to ensure that a recipient obtaining Product for a specified RFG destination shall be locked out from access to conventional gasoline.  Non-destination specific loading cards shall not have such product restrictions.  The Parties shall retain copies of all PTDs and all oversight program results as required by applicable Law. MPC shall be responsible for procuring, at its sole expense, any third-party (excluding, for the avoidance of doubt, MPC’s refining organization) sampling and testing services pursuant to this Section 8.2 .
8.3      Non-Conforming Products . MPC shall be liable for all reasonable costs and losses of Terminal Owner in curing, removing, or recovering any Non-Conforming Products, except to the extent that such non-conformity is due to the negligence or willful misconduct of Terminal Owner (in which event, the provisions of Section 7.2 shall govern Terminal Owner’s liability with respect to such costs and losses). Terminal Owner, with the advance written consent of MPC (such consent not to be unreasonably withheld, conditioned or delayed), may attempt to blend the Non-Conforming Products, remove and dispose of the Non-Conforming Products or, if necessary, recover any Non-Conforming Products from Terminals and, except to the extent that such non-conformity is due to the negligence or willful misconduct of Terminal Owner, MPC shall reimburse Terminal Owner for all reasonable costs associated therewith. Except to the extent that a non-

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conformity is due to the negligence or willful misconduct of Terminal Owner, if MPC’s Non-Conforming Products cause any contamination, dilution or other damages to Terminal Owner or to the Products of other customers of Terminal Owner, MPC agrees to indemnify, defend and hold Terminal Owner harmless from and against any Claims pursuant to the indemnity obligations and limitations set forth in Article 10 . Notwithstanding anything to the contrary herein, any cure, removal or recovery of Non-Conforming Products shall be performed in conformance with Law.
ARTICLE 9
ENVIRONMENTAL
9.1      Environmental Pollution . MPC shall comply with all requirements of Law, and shall not subject Terminal Owner to any liability, obligations, claims, judgments, penalties, fines, costs or expenses, in either case arising out of or relating to air, surface or subsurface soil, or water pollution.
9.2      Spill Response . Except for breaches of MPC’s covenant set forth in Section 9.1 , in the event of any Product spills or other environmental releases or discharges from a Terminal or arising from the operations of a Terminal, cleanup and any resulting liability for such spills or discharges shall be the sole responsibility of Terminal Owner. In the event of any Product spills or other environmental releases or discharges caused by MPC or its customer or carrier, Terminal Owner may, and MPC hereby authorizes Terminal Owner to, commence containment, clean-up and disposal operations as deemed appropriate or necessary by Terminal Owner or as required by any Governmental Authorities. The Parties shall cooperate for the purpose of obtaining reimbursement if a third Person is legally responsible for costs or expenses associated with any Product spills initially borne by Terminal Owner or MPC.
9.3      Emergency Notification . Both Parties shall undertake to notify the other as soon as reasonably practical, but in no event more than 24 hours, after becoming aware of any accident, spill or incident involving the other Party’s employees, agents, contractors, sub-contractors or their equipment, or MPC’s Products at a Terminal and to provide reasonable assistance in investigating the circumstances of the accident, spill or incident. Notices required by this Section 9.3 shall be delivered in person, by telephone or by email. When an accident, spill or incident involving MPC’s Products requires a report to be submitted to a Governmental Authority, this notification shall be made as soon as reasonably practical in compliance with applicable Law, and a copy of the required report shall be delivered to MPC.
9.4      Marine Vessel Vetting . MPC shall have procedures in place to ensure that all marine vessels accepted to call at any marine dock at a Terminal, including the Marine Docks, meet the minimum standards of safe operation established by Terminal Owner. Terminal Owner shall advise MPC of specific requirements applicable to each such Marine Dock.
ARTICLE 10
INDEMNITY
10.1      Indemnification by MPC . MPC will protect, defend, indemnify and hold Terminal Owner harmless from and against any and all claims, demands, causes of action,

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liabilities, losses, reasonable attorneys’ fees or costs (collectively, the “ Claims ”) arising out of, resulting from, incident to, or in connection with (a) MPC’s breach of this Agreement; or (b) the acts or omissions of MPC or Terminal Owner, their respective employees, agents or subcontractors, or MPC’s third party authorized carriers or customers, except to the extent such Claims are caused by the negligent or intentional acts or omissions of Terminal Owner, its employees, agents or subcontractors.
10.2      Indemnification by Terminal Owner . Terminal Owner shall protect, defend, indemnify and hold MPC harmless from and against any and all Claims arising out of, resulting from, incident to, or in connection with (a) Terminal Owner’s breach of this Agreement; or (b) the negligent or intentional acts or omissions of Terminal Owner, its employees, agents or subcontractors.
10.3      Survival . Any indemnification granted in this Article 10 shall survive the termination of this Agreement until all applicable statutes of limitation have run regarding any Claims that could be made with respect to the activities contemplated by this Agreement.
10.4      Consequential Damages . In no event will either Party be liable to the other Party for special, indirect, consequential (including loss of profits), or punitive damages resulting from or arising out of this Agreement, regardless of cause.
10.5      Limitation of Liability . Notwithstanding anything to the contrary herein, each Party shall be discharged from any and all liability with respect to Services performed and any loss or damage Claims arising out of this Agreement unless suit or action is commenced with respect to such Services or Claims within 2 years after the applicable cause of action arises.
ARTICLE 11
INSURANCE.
11.1      Insurance . Insurance for MPC’s Products, if any, that may be desired by MPC shall be carried by MPC at MPC’s expense. Should MPC elect to carry insurance, then without prejudice to MPC’s rights to directly assert self-insured claims for losses, each policy of insurance shall be endorsed to provide a waiver of subrogation rights against Terminal Owner and its Affiliates to the extent of the liabilities and obligations assumed by MPC under this Agreement.
ARTICLE 12
FORCE MAJEURE
12.1      Force Majeure . As soon as possible upon the occurrence of a Force Majeure event, a Party affected by such Force Majeure event shall provide the other Party written notice of the occurrence of such Force Majeure event. Subject to Section 4.3(a) , each Party’s obligations (other than an obligation to pay any amounts due to the other Party which shall not be suspended under this Section 12.1 ) shall be temporarily suspended during the occurrence of, and for the entire duration of, a Force Majeure event to the extent that such an event prevents Terminal Owner from performing its obligations under this Agreement.


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12.2      Obligation to Remedy Force Majeure Events . A Party affected by a Force Majeure event shall take commercially reasonable steps to remedy such situation so that it may resume the full performance of its obligations under this Agreement within a reasonable period of time.
12.3      Strikes and Lockouts . The settlement of strikes, lockouts and other labor disturbances shall be entirely within the discretion of the affected Party and the requirement to remedy a Force Majeure event within a reasonable period of time shall not require the settlement of strikes or lockouts by acceding to the demands of an opposing Person when such course is inadvisable in the discretion of the Party having the difficulty.
12.4      Action in Emergencies . Terminal Owner may temporarily suspend performance of the Services to prevent injuries to Persons, damage to property or harm to the environment.
ARTICLE 13
TERMINATION; NON-EXCLUSIVE REMEDIES
13.1      Default; Right to Terminate .
(a)      Default . If either Party defaults in the prompt performance and observance of any of the terms and conditions of this Agreement, and if such default continues for 15 days or more after written notice thereof by the non-defaulting Party to the defaulting Party, or should either Party become insolvent, commence a case for liquidation or reorganization under the United States Bankruptcy Code (or become the involuntary subject of a case for liquidation or reorganization under the United States Bankruptcy Code, if such case is not dismissed within 30 days), be placed in the hands of a state or federal receiver or make an assignment for the benefit of its creditors, then the other Party shall have the right, at its option, to terminate this Agreement immediately upon delivery of written notice to the defaulting Party.
(b)      Effect of Default . In the event of a default by MPC, the amounts accrued with respect to this Agreement shall, at the option of Terminal Owner, become immediately due and payable. In the event of default by Terminal Owner under this Agreement, MPC shall have the right, at its option, to terminate this Agreement, provided that MPC shall have paid Terminal Owner amounts that have accrued under the Agreement to the date of such termination.
13.2      Termination Following a Force Majeure Event . If a Force Majeure event prevents Terminal Owner or MPC from performing its respective obligations at one or more Terminals for a period of more than 12 consecutive Months, this Agreement as to the Terminals so affected may be terminated by either Party and any time after the expiration of such 12 Month period upon at least 30 days’ written notice to the other Party.
13.3      Non-Exclusive Remedies . Except as otherwise provided in this Agreement, the remedies of Terminal Owner and MPC provided in this Agreement shall not be exclusive, but shall be cumulative and shall be in addition to all other remedies in favor of Terminal Owner or MPC at law or in equity.



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ARTICLE 14
MISCELLANEOUS
14.1      Notice . Except as otherwise indicated herein and until otherwise specified, notices and other communication to each Party shall be addressed as follows:
MPC :
Marathon Petroleum Company LP
539 South Main Street
Findlay, Ohio 45840
Attention: General Counsel

Terminal Owner :

MPLX Terminals LLC
539 South Main Street
Findlay, Ohio 45840
Attention: President

Any notice required or permitted hereunder shall be deemed given (a) 3 days after being deposited in the U.S. Mail as registered or certified mail, return receipt requested, postage prepaid, and (b) when received if delivered by recognized commercial courier or next business day delivery and addressed to the Party to whom the notice is being given at the address set forth above for such Party.
14.2      No Demise . Nothing in this Agreement shall be construed as creating a demise of the applicable Blending Equipment or Terminals to MPC or as vesting MPC with any control over the physical operation of the Blending Equipment or Terminals. The Blending Equipment, Terminals and personnel will operate under the control and direction of the Terminal Owner.     
14.3      Confidentiality . The Parties understand and agree that the Minimum Quarterly Terminal Volume Commitments and Fees are confidential as between the Parties. Each Party agrees not to disclose such confidential information to any third Person. Each Party may disclose confidential information to its advisors, consultants or representatives (provided that such Persons agree to maintain the confidentiality thereof) or when compelled to do so by Law (but the disclosing Party must notify the other Party promptly of any such request for confidential information before disclosing it, if practicable, so that the other Party may seek a protective order or other appropriate remedy or waive compliance with this Section 14.2 ). In the event that the non-disclosing Party does not obtain a protective order or other remedy or does not waive compliance with this Section 14.2 , the disclosing Party shall disclose only that portion of the confidential information to which the compelling Person or Governmental Authority is legally entitled.
14.4      Dispute Resolution . Any dispute between the Parties in connection with this Agreement shall be resolved in accordance with the dispute resolution procedures set forth in Schedule 14.4 ; provided that either Party may seek a restraining order, temporary injunction, or other provisional

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relief in any court with jurisdiction over the subject matter of the dispute and to avoid irreparable injury or to preserve the status quo ante.
14.5      Partnership Change in Control . Terminal Owner shall provide MPC with written notice of a Partnership Change in Control at least 60 days prior to the effective date thereof. Within 180 days following receipt of such notice, MPC may elect to terminate this Agreement, effective earlier than the effective date of such Partnership Change in Control.
14.6      Assignment . This Agreement shall be binding upon and shall inure to the benefit of Terminal Owner and MPC and their respective successors and permitted assigns; provided , however , that neither Party shall assign its rights or delegate its obligations under this Agreement, in whole or in part, without prior written consent of the other Party, except:
(a)      by MPC in connection with a sale by MPC or its Affiliates of one or more of its refineries associated with a Terminal, so long as the assignee (i) agrees to assume all of MPC’s obligations hereunder with respect to the associated Terminal; and (ii) is financially and operationally capable of fulfilling the terms of this Agreement, which determination shall be made by Terminal Owner in its sole reasonable judgment;
(b)      by Terminal Owner in connection with a sale by Terminal Owner or its Affiliates of one or more Terminals, so long as the assignee (i) agrees to assume all of Terminal Owner’s obligations hereunder with respect to the divested Terminal; (ii) is financially and operationally capable of fulfilling the terms of this Agreement, which determination shall be made by MPC in its sole reasonable judgment; and (iii) is not a competitor of MPC; and
(c)      Terminal Owner may make collateral assignments of this Agreement to secure working capital or other financing.
If either MPC or Terminal Owner assigns its rights or delegates its obligations as permitted under this Agreement relating to a specific Terminal, then (i) the applicable Minimum Quarterly Terminal Volume Commitment shall be accordingly reduced or eliminated, and both Parties’ respective obligations shall continue with respect to the remaining Terminals and Minimum Quarterly Terminal Volume Commitments (as adjusted); (ii) the rights and obligations relating to the affected Terminal shall be novated into a new agreement with the assignee, and such assignee shall be responsible for the performance of the assigning Party’s obligations relating to the affected Terminal. Any assignment that is not undertaken in accordance with the provisions set forth in this Section 14.6 shall be null and void ab initio. A Party making any assignment shall promptly notify the other Party of such assignment, regardless of whether consent is required.
14.7      Amendments . This Agreement shall not be modified, in whole or in part, except by a written amendment signed by both Parties.
14.8      No Third Party Rights . Except as expressly provided, nothing in this Agreement is intended to confer any rights, benefits or obligations to any Person, including MPC customers, other than the Parties and their respective successors and permitted assigns.
14.9      Compliance with Laws . This Agreement shall be subject to, and the Parties shall comply with, all valid and applicable Laws, including environmental and product quality Laws applicable to fuels.

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14.10      Waiver . No waiver by either Party of any default of the other Party shall operate as a waiver of any further or future default, whether of like or different character.
14.11      Governing Law . This Agreement, and any dispute arising hereunder, shall be governed by the Laws of the State of New York without regard to the conflict of laws provisions thereof to the extent such rules or principles would require or permit the application of the Laws of any other jurisdiction.
14.12      Terms Severable . Any invalid or unenforceable provision shall adjusted rather than severed, if possible, to achieve the intent of the Parties under this Agreement and, in any event, the balance of this Agreement shall not be affected thereby and shall be enforced to the greatest extent permitted by Law.
14.13      Schedules . The Schedules identified in this Agreement are hereby incorporated into this Agreement and shall constitute a part of this Agreement. If there is any conflict between this Agreement and any Schedule, the provisions of the Schedule shall control.
14.14      Entire Agreement . This Agreement contains the entire agreement between the Parties with respect to the subject matter hereof, and no oral promises, agreement or warranties affecting it and no prior or subsequent agreement adding to, altering or waiving any term, condition or provision hereof shall be valid and enforceable unless in writing and similarly executed.
14.15      Counterparts; Multiple Originals . This Agreement may be executed in any number of counterparts all of which together shall constitute one agreement binding on each of the Parties. Each of the Parties may sign any number of copies of this Agreement. Each signed copy shall be deemed to be an original, but all of them together shall represent one and the same agreement.
14.16      Headings . Headings of sections of this Agreement are provided for reference purposes only, are in no manner intended to be a part of the terms of this Agreement and shall not affect the meaning or interpretation hereof.


[SIGNATURE PAGE FOLLOWS]



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IN WITNESS WHEREOF, the Parties hereto have duly executed this Agreement in duplicate as of the day and year first above written.

Marathon Petroleum Company LP
By:
MPC Investment LLC, its General Partner
 
 
 
 
By:
/s/ John S. Swearingen
 
John S. Swearingen
 
Senior Vice President, Transportation and Logistics
 
 
 
 
 
 



MPLX Terminals LLC
 
 
 
 
By:
/s/ Timothy J. Aydt
 
Timothy J. Aydt
 
President
 
 
 
 
 
 



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Schedule 1.1 – Definitions
Actual Quarterly Aggregate Volume ” means the sum of the volumes of Products tendered by MPC for redelivery (including transshipments but excluding Transmix) at the Terminals during the applicable Calendar Quarter.
Adjustment Opportunity Date ” has the meaning set forth in Section 4.3(d) .
Affiliates ” means any Person that directly or indirectly Controls, is Controlled by, or is under common Control with the referenced Person.
Agreement ” has the meaning set forth in the Preamble.
Aggregate Actual Complex Volume ” means, with respect to any Terminal Complex, the sum of the volumes of Products tendered by MPC for redelivery (including transshipments but excluding Transmix) at the Terminals comprising such Terminal Complex during a Calendar Quarter.
Aggregate Committed Complex Volume ” means, with respect to any Terminal Complex, the sum of the Minimum Quarterly Terminal Volume Commitments for the Terminals comprising such Terminal Complex.
Authorized Representative ” means employees of either Party with the title of Director, or higher, unless otherwise delegated by a Director or Officer of the Party.
Base Throughput Fee ” has the meaning set forth in Section 5.1(a) .
Blending Equipment ” has the meaning set forth in Section 3.6(a) .
Calendar Quarter ” means a period of 3 consecutive Months beginning on the first day of each January, April, July and October.
Claims ” has the meaning set forth in Section 10.1 .
Control ” means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of a Person, whether through ownership of voting securities, by contract or otherwise.
Contribution Agreement ” has the meaning set forth in the recitals.
Effective Date ” means April 1, 2016.
Excess Throughput Fee ” has the meaning set forth in Section 5.1(b) .
Extraordinary Losses ” has the meaning set forth in Section 7.2 .
Fees ” has the meaning set forth in Section 5.1 .
Force Majeure ” means acts of God, strikes, lockouts, work stoppages or other industrial

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disturbances, acts of the public enemy, acts of terrorism, wars, blockades, insurrections, riots, epidemics, fires, arrests, and restraints of governments, rules and people, civil and criminal disturbances, explosions, breakage or accident to machinery or lines of pipe, the necessity for making emergency repairs to or alterations of machinery or lines of pipe, freezing of lines or pipe, partial or entire failure of production facilities or equipment, refineries, treating plants, processing plants, storage facilities, transportation facilities or separation facilities, Laws, curtailment of, or other inability to obtain equipment, supplies, materials or services or electric power used in making or receiving deliveries hereunder and other causes, whether of the kind enumerated or otherwise, not within the reasonable control of the Party claiming such suspension, all of which by the exercise of reasonable diligence such Party is or was unable to prevent or overcome; provided , however , that a planned outage, turnaround or suspension of operations at a MPC-owned refinery shall not constitute a “Force Majeure” hereunder.
Gallon ” means a volume of 231 cubic inches.
Governmental Authority ” means any government, any governmental administration, agency, instrumentality or other political subdivision thereof, any court, commission or other governmental authority or any arbitral body, in each case, of competent jurisdiction.
Law ” means all constitutions, laws (including common law), treaties, statutes, orders, decrees, rules, injunctions, licenses, permits, approvals, agreements, regulations, codes and ordinances issued by any Governmental Authority, including judicial or administrative orders, consents, decrees and judgments, published directives, guidelines, governmental authorizations, requirements or other governmental restrictions which have the force of law, and determinations by, or interpretations of any of the foregoing by any Governmental Authority having jurisdiction over the matter in question and binding on a given Person, whether in effect as of the Effective Date or thereafter and, in each case, as amended.
Marine Docks ” has the meaning set forth in Section 3.1(b) .
Market Price Formula ” has the meaning set forth in Section 7.1 .
Minimum Quarterly Terminal Volume Commitment ” has the meaning set forth in Section 4.1(a) .
Month ” or “ Monthly ” means a calendar month commencing at 0000 hours on the first day thereof and running until, but not including, 0000 hours on the first day of the following calendar month, according to local time in Findlay, Ohio.
MPC ” has the meaning set forth in the Preamble.
MPC Force Majeure ” has the meaning set forth in Section 4.3(a) .
MPC Third Party Contract ” has the meaning set forth in Section 3.13 .
Non-Conforming Product ” means any Product that fails to meet: (i) the specifications established by the applicable connecting pipeline operator for pipeline transportation of such Product to or from the Terminal or (ii) the specifications established by applicable Law for such Product.
Ordinary Handling Losses ” has the meaning set forth in Section 7.1(a) .


25




Original TSA ” has the meaning set forth in the Recitals.
Partnership Change in Control ” means (i) Marathon Petroleum Corporation ceases to Control the general partner of MPLX LP by virtue of any Affiliate of Marathon Petroleum Corporation being removed as the general partner of MPLX LP under the terms of the limited partnership agreement of MPLX LP and (ii) any spin-off, sale, dividend, distribution or other transfer (whether direct, indirect, by operation of law or otherwise) of all or substantially all of the refining business of Marathon Petroleum Corporation or any of its Affiliates; provided , however , that notwithstanding the foregoing, an initial public offering of any interest in MPLX GP LLC (or any interest in any Person into which interests of MPLX GP LLC are converted or exchanged) shall not constitute a Partnership Change in Control.
Party ” and “ Parties ” have the respective meanings set forth in the Preamble.
Person ” means an individual, corporation (including a non-profit corporation), general or limited partnership, limited liability company, joint venture, estate, trust, association organization, labor union, or other entity or Governmental Authority, and shall include any successor (by merger or otherwise) of such entity.
Product ” means any of the commodities identified in Schedule 1.1(A)
Product Incident ” has the meaning set forth in Section 7.2 .
Project Reimbursement Method ” has the meaning set forth in Section 5.5(a) .
Project and Services Recovery Agreement ” has the meaning set forth in Section 5.5(a).
PTD ” has the meaning set forth in Section 3.5(c) .
Quarterly Aggregate Volume Commitment ” means the sum of the Minimum Quarterly Terminal Volume Commitments at the Terminals during the applicable Calendar Quarter, adjusting, as appropriate, for any Terminals added or removed or Minimum Quarterly Terminal Volume Commitments modified, in each case, during such Calendar Quarter.
RC Assets ” has the meaning set forth in Section 4.4(a) .
“Regulatory Project ” has the meaning set forth in Section 5.5(b).
Removal Deadline ” has the meaning set forth in Section 2.2(a) .
Renewable Fuel Standard Program ” has the meaning set forth in 40 CFR Part 80, Docket No. EPA-HQ-OAR-2015-0111.
Reserved Capacity ” has the meaning set forth in Section 4.4(a) .
Services ” has the meaning set forth in Section 3.1(a) .
TAS ” has the meaning set forth in Section 3.7 .
Taxes ” has the meaning set forth in Section 5.2 .

26




Terminal ” has the meaning set forth in Section 3.1(a) .
Terminal Assets ” has the meaning set forth in the Recitals.
Terminal Complex ” means the Terminal groupings specified in Schedule 3.1 .
Terminal Deficiency Payment ” has the meaning set forth in Section 5.1(f)(i) .
Terminal Owner ” has the meaning set forth in the Preamble.
Terminal Project ” has the meaning set forth in Section 5.5(a) .
Total Storage Space ” means the total safe fill capacity for each Product at a given Terminal.
Total Tank Heels ” means the total unavailable tank inventory for each Product at a given Terminal.
Transmix ” has the meaning set forth in Section 7.5 .
Unit Train ” means a train, or set of railcars, delivering a single commodity.
Unit Train Ethanol Receipts ” means the volume (in Gallons) of ethanol shipped by Unit Train and received at the Selma (Buffalo) Terminal.
VRU Gains ” has the meaning set forth in Section 7.3(a) .



27




Schedule 1.1(A) - Products

Blend-grade Gasoline
Regular Gasoline
Super-grade Gasoline
Ethanol
Gasoline Additives
No. 1 Distillate
No. 2 Distillate
Biodiesel
Distillate Additives
Distillate Dye
Transmix

Exclusively at Kenova/Catlettsburg Docks:
Asphalt
Heavy Oils
Other Chemicals
Other Feedstocks










 




















28




Schedule 3.1 – Terminals and Minimum Quarterly Terminal Volume Commitments

Terminal Name
State
Region
Facility Type
Loading Hours
Gallons
RC Assets
Lanes
Docks
Shell Capacity
Bay City
MI
MW
Pipeline
24/7
71,625,000
3
 
437,600
Bellevue
OH
MW
Pipeline
24/7
5,664,000
1
 
-
Belton
SC
SE
Pipeline
24/7
74,949,000
3
 
370,500
Birmingham
AL
SE
Pipeline
24/7
58,131,000
2
 
251,000
Brecksville
OH
MW
Pipeline
24/7
30,912,000
2
 
454,800
Canton
OH
MW
Refinery
24/7
159,134,000
6
 
48,500
Champaign
IL
MW
Pipeline
24/7
96,441,000
4
 
554,500
Charleston
WV
MW
Barge
24/7
36,360,000
2
1
165,700
Charlotte (East)
NC
SE
Pipeline
24/7
110,751,000
4
 
451,800
Charlotte (West)
NC
SE
Pipeline
24/7
41,871,000
2
 
152,700
Cincinnati
OH
MW
Barge
24/7
54,021,000
2
1
438700
Columbus (East & West)
OH
MW
Pipeline
24/7
197,481,000
4
 
749,700
Columbus (GA)
GA
SE
Pipeline
24/7
22,335,000
1
 
132,600
Covington
KY
MW
Barge
24/7
100,056,000
4
1
342,100
Detroit
MI
MW
Refinery
24/7
260,460,000
6
 
-
Doraville
GA
SE
Pipeline
24/7
52,626,000
2
 
217,100
Evansville
IN
MW
Barge
24/7
37,686,000
2
1
126,000
Flint
MI
MW
Pipeline
24/7
37,401,000
2
 
223,800
Ft. Lauderdale (Eisenhower)
FL
SE
Marine
24/7
112,170,000
4
1
559,900
Ft. Lauderdale (Spangler)
FL
SE
Marine
24/7
107,451,000
3
1
473,800
Garyville
LA
SE
Refinery
24/7
61,788,000
2
 
96,700
Greensboro (Guilford County)
NC
SE
Pipeline
24/7
43,170,000
 
 
241,900
Hammond
IN
MW
Pipeline
24/7
117,831,000
3
 
1,193,800
Heath
OH
MW
Pipeline
24/7
49,524,000
2
 
11,100
Huntington
IN
MW
Pipeline
24/7
35,220,000
2
 
187,000
Indianapolis
IN
MW
Pipeline
24/7
64,806,000
3
 
951,600
Jackson
MI
MW
Pipeline
24/7
21,828,000
2
 
263,700
Jacksonville
FL
SE
Marine
24/7
139,122,000
5
1
1,156,900
Kenova/Catlettsburg Docks
WV/KY
MW
Marine Docks
24/7
712,500,000
 
4
1,421,100
Knoxville
TN
SE
Pipeline
24/7
77,520,000
4
 
332,800
Lansing
MI
MW
Pipeline
24/7
59,682,000
3
 
174,700
Lexington
KY
MW
Pipeline
24/7
79,470,000
3
 
205,300
Lima
OH
MW
Pipeline
24/7
92,961,000
2
 
864,200
Louisville (Algonquin)
KY
MW
Barge
24/7
202,890,000
6
1
1,215,400
Louisville (Kramers)
KY
MW
Barge
24/7
115,401,000
4
1
558,300
Macon
GA
SE
Pipeline
24/7
79,296,000
3
 
309,700
Marietta
OH
MW
Barge
24/7
46,947,000
3
2
170,700
Midland
PA
MW
Barge
24/7
54,573,000
2
1
387,500
Montgomery
AL
SE
Pipeline
24/7
53,745,000
2
 
191,700
Mt. Prospect
IL
MW
Pipeline
24/7
53,487,000
3
 
387,600
Mt. Vernon
IN
MW
Barge
24/7
105,945,000
1
1
630,000
Muncie
IN
MW
Pipeline
24/7
42,747,000
2
 
243,800
Nashville (Bordeaux)
TN
SE
Pipeline
24/7
64,008,000
3
1
233,800
Nashville (Downtown)
TN
SE
Barge
24/7
44,289,000
2
1
250,800

29




Nashville (51st)
TN
SE
Pipeline
24/7
60,903,000
3
 
331,100
Niles
MI
MW
Pipeline
24/7
74,589,000
2
 
564,000
North Muskegon
MI
MW
Pipeline
24/7
113,175,000
5
 
440,200
Oregon
OH
MW
Pipeline
24/7
53,250,000
2
 
247,800
Paducah
KY
MW
Barge
24/7
30,654,000
2
1
218,400
Powder Springs
GA
SE
Pipeline
24/7
78,300,000
3
 
338,300
Robinson
IL
MW
Refinery
24/7
74,736,000
4
 
7,300
Rockford
IL
MW
Pipeline
24/7
48,678,000
3
 
326,000
Romulus
MI
MW
Pipeline
24/7
27,309,000
3
 
268,400
Selma (Buffalo)
NC
SE
Pipeline
24/7
123,750,000
3
 
454,200
Selma (Johnston County)
NC
SE
Pipeline
24/7
35,000,000
 
 
196,000
Selma (West Oak)
NC
SE
Pipeline
24/7
99,537,000
4
 
355,000
Speedway
IN
MW
Pipeline
24/7
124,647,000
5
 
526,300
Steubenville
OH
MW
Pipeline
24/7
16,599,000
2
 
111,400
Tampa
FL
SE
Marine
24/7
334,203,000
10
1
1,231,700
Viney Branch
KY
MW
Refinery
24/7
114,474,000
6
 
57,100
Youngstown
OH
MW
Pipeline
24/7
28,176,000
2
 
130,300


Terminal Complexes:

1. Brecksville and Canton
2.      Charlotte (West) and Charlotte (East)
3.      Cincinnati and Covington
4.      Evansville and Mt. Vernon
5.      Ft. Lauderdale (Spangler) and Ft. Lauderdale (Eisenhower)
6.      Indianapolis and Speedway
7.      Louisville (Kramers) and Louisville (Algonquin)
8.      Nashville (Bordeaux), Nashville (Downtown) and Nashville (51 st )
9.      Selma (Buffalo), Selma (Johnston County) and Selma (West Oak)


30




Schedule 5.1 - Fees


Terminal Name
Base Throughput Fee
Excess Throughput Fee
Bay City
$.0154
$.0127
Bellevue
$.0125
$.0125
Belton
$.0136
$.0120
Birmingham
$.0141
$.0121
Brecksville
$.0312
$.0125
Canton
$.0125
$.0125
Champaign
$.0133
$.0125
Charleston
$.0216
$.0129
Charlotte (East)
$.0138
$.0123
Charlotte (West)
$.0173
$.0118
Cincinnati
$.0278
$.0129
Columbus (East & West)
$.0117
$.0117
Columbus (GA)
$.0257
$.0122
Covington
$.0156
$.0153
Detroit
$.0125
$.0125
Doraville
$.0185
$.0122
Evansville
$.0196
$.0131
Flint
$.0216
$.0126
Ft. Lauderdale (Eisenhower)
$.0168
$.0126
Ft. Lauderdale (Spangler)
$.0135
$.0135
Garyville
$.0132
$.0117
Greensboro (Friendship) – Guilford County
$.0120
$.0120

31




Hammond
$.0181
$.0118
Heath
$.0115
$.0115
Huntington
$.0182
$.0127
Indianapolis
$.0249
$.0127
Jackson
$.0372
$.0127
Jacksonville
$.0273
$.0131
Kenova/Catlettsburg Docks
$.0065
$.0065
Knoxville
$.0123
$.0119
Lansing
$.0141
$.0127
Lexington
$.0126
$.0123
Lima
$.0172
$.0115
Louisville (Algonquin)
$.0175
$.0120
Louisville (Kramers)
$.0149
$.0126
Macon
$.0133
$.0117
Marietta
$.0203
$.0129
Midland
$.0235
$.0113
Montgomery
$.0155
$.0121
Mt. Prospect
$.0218
$.0125
Mt. Vernon
$.0159
$.0110
Muncie
$.0160
$.0125
Nashville (Bordeaux)
$.0139
$.0121
Nashville (Downtown)
$.0197
$.0121
Nashville (51st)
$.0165
$.0121
Niles
$.0179
$.0124

32




North Muskegon
$.0127
$.0127
Oregon
$.0161
$.0125
Paducah
$.0255
$.0125
Powder Springs
$.0146
$.0122
Robinson
$.0131
$.0122
Rockford
$.0199
$.0123
Romulus
$.0349
$.0128
Selma (Buffalo)
$.0122
$.0122
Selma (JV) – Johnston County
$.0122
$.0122
Selma (West Oak)
$.0122
$.0122
Speedway
$.0127
$.0127
Steubenville
$.0301
$.0124
Tampa
$.0137
$.0127
Viney Branch
$.0126
$.0126
Youngstown
$.0218
$.0121


Marine Docks
Kenova/Catlettsburg Docks includes Kenova Light Product, and Catlettsburg Crude, Heavy Oil, and Light Oil Docks

Kenova/Catlettsburg Docks - $2,500,000 per month

Butane Blending  

From and after September 1, 2016, Terminal Owner’s fee for performing the butane blending service shall be calculated as follows:

Ninety-five percent (95%) of the difference between the Daily Gasoline Value (defined below) and the Daily Butane Value (defined below). Expressed as a formula, the Butane Blending Service Fee is:

Butane Blending Service Fee = (DGV-DBV)* 95%


33




Bay City Butane Blending Service Fee = (DGV-DBV+CPP)* 95%

Definitions:

1.     Daily Gasoline Value (“ DGV ”) : Expressed as a formula:
DGV = (GB)*(GPV+TF)

GB: number of gallons of butane blended on a given day at the terminal site.
GPV: daily gasoline posted value per gallon.
TF: the transportation fee for moving spot purchased gasoline to the terminal for the gasoline grade in which the butane is blended.

a.
The GPV is calculated by location as follows:

Location
Market
GPV Price Calculation
Bay City
Chicago
Daily posted Argus 85 CBOB and 91 PREM spot prices
Charlotte East
Gulf Coast
Daily posted Argus 85 CBOB and 93 PREM spot prices
Jacksonville
Gulf Coast
Daily posted Argus 85 CBOB and 93 PREM spot prices
Lansing
Chicago
Daily posted Argus 85 CBOB and 91 PREM spot prices
Nashville 51 st
Gulf Coast
Daily posted Argus 85 CBOB and 93 PREM spot prices
Selma Buffalo
Gulf Coast
Daily posted Argus 85 CBOB and 93 PREM spot prices
Selma Oak
Gulf Coast
Daily posted Argus 85 CBOB and 93 PREM spot prices
Speedway
Chicago
Daily posted Argus 85 CBOB and 91 PREM spot prices
North Muskegon
Chicago
Daily posted Argus 85 CBOB and 91 PREM spot prices

b.
The TF is the avoided MPC cost of transporting one Gallon of gasoline (in the most cost effective method possible) to a terminal blending location, as verified and provided by MPC’s Supply Distribution & Planning - Light Products Project Analysis organization.

2.     Daily Butane Value (“ DBV ”): the daily agreed upon butane purchase price (“BPP”) from Sunoco Logistics (“SXL”), plus the total daily RIN value (DRV), multiplied by the daily total number of butane gallons blended (“GB”). Expressed as a formula:

DBV = (GB)*(BPP+DRV)


34




“DRV” will be determined by using the percentage of each type of RINs specified by the Renewable Fuel Standard Program updated annually or the most recent requirements and will be adjusted retroactively for any difference between the requirements at the time of the calculation and the requirements contained in a final rule establishing Renewable Volume Obligations for the year. OPIS daily posting for the respective RINs pricing will be used. In order to minimize the daily average RINs Cost, postings for prior years RINs will be used up to the maximum allowable percentage.

3.
Conditional Performance Payment (“CPP”): For each calendar month, a Conditional Performance Payment is paid by Sunoco Partners Marketing & Terminals L.P. (“SPMT”) to MPC for volumes blended at the Bay City terminal. The (“CPP”) is calculated as the greater of (1) the volume of gallons blended (“GB”) at Bay City in such month multiplied by fifty percent multiplied by the following value: (A) the daily average of the high and low assessments of Argus posted Chicago Cycle 1 gasoline price (85 CBOB or 91 PREM) minus (B) the daily average of the high and low assessments of the OPIS posted Mt. Belvieu TET normal butane price minus (C) $0.60 per gallon; and (2) $0.

Fee calculations pursuant to this Schedule 5.1 for butane blending services completed prior to September 1, 2016 shall not be affected by changes in the foregoing formulas.

Ethanol Denaturing

$0.02 per Gallon of undenatured ethanol.


Unit Train Ethanol Receipts

Beginning on January 15, 2017 and continuing thereafter for so long as the Master Terminal Services Agreement by and between MPC and ECO Energy Distribution Services, LLC dated October 19, 2015 (the “ ECO Agreement ”) has not terminated, been cancelled or otherwise expired pursuant to its terms or agreement of the parties thereto, each of the following shall apply:

1.    MPC shall pay Terminal Owner $0.0135 per Gallon for Unit Train Ethanol Receipts; provided that the invoice for the month ending March 31 of each year (or upon termination of the ECO Agreement, prorated according to the time of such termination) shall include an additional fee of $0.0135 per Gallon of Unit Train Ethanol Receipts that are less than 111,360,000 Gallons for the 12-month period ending on March 31 of the same year (prorated for the time period between January 15, 2017 through March 31, 2017. The $0.0135 per Gallon fee set forth in this Section shall be adjusted at the time of and in an amount equal to any adjustment to the Throughput Fees (as defined in the ECO Agreement) pursuant to Section 6.1(b) of the ECO Agreement, as may be amended from time to time.

35





2.     At the end of each Calendar Quarter, Terminal Owner shall credit MPC on the monthly invoice (or upon termination of the ECO Agreement, prorated according to the time of such termination) an amount equal to the sum of (a) the Base Throughput Fee for Selma (Buffalo) set forth in Schedule 5.1 (as adjusted) multiplied by the volume (in Gallons) of ethanol redelivered by truck from the Selma (Buffalo) Terminal to the Selma (West Oak) or Selma (JV) – Johnston County Terminals during such Calendar Quarter; and (b) the Base Throughput Fee for Selma (Buffalo) set forth in Schedule 5.1 (as adjusted) multiplied by the volume (in Gallons) of ethanol redelivered per MPC’s direction from the Selma (Buffalo) Terminal into trucks for ECO during such Calendar Quarter.


36




Schedule 7.1 – Market Price Formula

Each terminal location is assigned to the CHICAGO (Midwest) or US GULF COAST (Southeast) region based on Schedule 3.1 .

Ordinary Handling Losses in excess of 0.25% will be valued via pricing gasoline and distillate proration between OPIS 87 CBOB and OPIS Ultra-low sulfur diesel, considering CHICAGO/US GULF COAST markets to determine one weighted average price for the given month.

Extraordinary Losses will be valued based on individual incident. The OPIS price for commodity or commodities involved in the incident will be used, considering CHICAGO/US GULF COAST pricing based on the Terminal Location Assignment. If the incident involves Transmix, valuation should be based on the lower of the OPIS 87 CBOB or Ultra-low sulfur diesel value less $0.10/gallon, considering CHICAGO/US GULF COAST pricing based on the Terminal location.

VRU Gains will be valued using the OPIS 87 CBOB price for given market based on the Terminal location.



37




Schedule 7.3(a) – VRU Gains

VRU Gains for truck rack throughput at Terminals equipped with TAS shall be calculated via logic in the TAS for any Products with a default product group of “Gasolines.” The TAS shall be programmed to calculate the VRU Gains by multiplying the applicable “Gasolines” throughput volumes at such Terminal by a factor of 1.5 and dividing the resulting product by 1,000. Calculations made prior to January 1, 2017 pursuant to this Schedule 7.3(a) shall not be affected by the change in the foregoing factor.

At Terminals that are not equipped to calculate the VRU Gains via TAS at the rack or via other modalities, including barge loading facilities, Terminal Owner shall calculate the VRU Gains by multiplying the applicable actual gasoline throughputs at such Terminal for the applicable Calendar Month by a factor of 1.5 and dividing the resulting product by 1,000. Calculations made prior to January 1, 2017 pursuant to this Schedule 7.3(a) shall not be affected by the change in the foregoing factor.

The factor used in calculating the VRU Gains is subject to unilateral adjustment, at Terminal Owner’s option, provided that the VRU data reviewed annually supports said adjustment. Further, Terminal Owner may elect, at its option, to utilize factors based on terminal location rather than a general factor applied to all terminal locations. If Terminal Owner elects to determine VRU Gains utilizing terminal-specific factors, then Terminal Owner and MPC shall execute an amendment to this Agreement that provides a list of terminal locations and their respective factors. In either case, Terminal Owner shall provide MPC with all documentation supporting any factor adjustments. If MPC believes that the documentation does not support a factor adjustment, MPC shall provide written notice to Terminal Owner within 30 calendar days, and the Parties shall negotiate a mutually agreeable factor. Calculations made prior to any such unilateral adjustment pursuant to this Schedule 7.3(a) shall not be affected by any such adjustment in the foregoing factor; such adjustments to be prospectively applied unless otherwise agreed by the Parties.



38





Schedule 14.4 – Dispute Resolution Procedures

Any controversy, dispute or claim arising out of or relating to this Agreement (a “ Dispute ”) shall be resolved in accordance with the following:
1.      Mediation . If a Dispute cannot be settled by direct negotiations within sixty (60) days following delivery of a notice of such Dispute, any Party may initiate mandatory, non-binding mediation hereunder by giving the other Party a notice of mediation (a “ Mediation Notice ”). The mediator shall be jointly appointed by the Parties and the mediation shall be conducted in Findlay, Ohio, unless otherwise agreed to by the Parties. All costs and expenses of the mediator shall be shared equally by the Parties. 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, shall govern any mediation pursuant to this Section 1 . Each Party shall be represented by one or more senior representatives who shall have authority to resolve any Disputes. If such Dispute has not been resolved within thirty (30) days after delivery of the Mediation Notice, then either Party may pursue litigation in accordance with Section 2 .
2.      Litigation .
(a)      If the Dispute cannot be resolved pursuant to mediation in accordance with Section 1 , either Party may bring an action or proceeding in respect of such Dispute, whether in tort or contract or at law or in equity, exclusively in any federal or state courts located in Ohio in which event, each Party (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 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 14.1 of the Agreement. The foregoing consents to jurisdiction and service of process shall not constitute general consents to service of process in the State of Ohio for any purpose except as provided herein and shall not be deemed to confer rights on any Person other than the Parties.
(b)      EACH PARTY ACKNOWLEDGES THAT ANY DISPUTE IS LIKELY TO INVOLVE COMPLICATED ISSUES, AND THEREFORE EACH PARTY HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT SUCH PARTY MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT, OR THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT. EACH PARTY CERTIFIES AND ACKNOWLEDGES THAT: (i) NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER; (ii) EACH PARTY UNDERSTANDS AND HAS CONSIDERED THE IMPLICATIONS OF THIS WAIVER; (iii) EACH PARTY MAKES THIS WAIVER VOLUNTARILY; AND (iv) EACH PARTY HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 2(b) .




Exhibit 10.7

THIRD AMENDED AND RESTATED EMPLOYEE SERVICES AGREEMENT

THIS THIRD AMENDED AND RESTATED EMPLOYEE SERVICES AGREEMENT (as amended, restated and otherwise modified, this “ Agreement ”) is made by Marathon Petroleum Logistics Services LLC, a Delaware limited liability company (“ MPLS ”) and MPLX Terminals LLC, assignee of Marathon Petroleum Company LP (“ MPLXT ”), a Delaware limited liability company.

WHEREAS, MPLS is engaged in the business of providing employee services for the operation of midstream assets;

WHEREAS, MPLXT owns the refined petroleum products terminals set forth on Exhibit A which are utilized for the receipt, storage and redelivery of refined petroleum and associated products (the “ Terminal Locations ”);

WHEREAS, the Parties deem it to be appropriate and in the best interests of each of them that MPLS provide certain employee services at the Terminal Locations on the terms and conditions set forth herein;

WHEREAS, it is the intent of the Parties that such employee services be provided in exchange for the payment of fees meeting an arm’s length standard consistent with the IRS Code and associated regulations, and that the Fees set forth on Exhibit B are intended to reflect such standard;

WHEREAS, on December 21, 2015 (the “ Effective Date ”), MPLS and MPLXT previously entered into that certain Employee Services Agreement, as subsequently amended pursuant to that certain Amended and Restated Employee Services Agreement dated February 7, 2016 and that certain Second Amended and Restated Employee Services Agreement dated December 22, 2016 (the “ Original ESA ”); and

WHEREAS, pursuant to Section 13.3 of the Original ESA, MPLS and MPLXT now desire to amend and restate the terms and conditions contained in the Original ESA as set forth herein.

NOW, THEREFORE, in consideration of the forgoing and the mutual agreements contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereby agree as follows:

ARTICLE 1
DEFINITIONS
1.1      Definitions. As used in this Agreement:
(a)      Additional Services ” has the meaning set forth in Section 3.2 .

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(b)      Affiliate ” means, as to any specified Person, any other Person that, directly or indirectly through one (1) or more intermediaries or otherwise, controls, is controlled by or is under common control with the specified Person. For purposes of the foregoing, “control”, “controlled by”, and under “common control with” with respect to any Person means the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of such Person, whether through the ownership of voting securities, member or partnership interests, by contract or otherwise. For the purposes of this Agreement, MPLXT shall not be considered an Affiliate of MPLS, nor shall MPLS be considered an Affiliate of MPLXT.
(c)      Agreement ” has the meaning set forth in the Preamble.
(d)      Applicable Law ” means any applicable statute, law, regulation, ordinance, rule, determination, judgment, rule of law, order, decree, permit, approval, concession, grant, franchise, license, requirement, or any similar form of decision of, or any provision or condition of any permit, license or other operating authorization issued by any Governmental Authority having jurisdiction over the matter or matters in question, whether now or hereafter in effect.
(e)      Authorized Representative ” means, for each Party, any of the individuals holding the titles listed on Exhibit C under the name of such Party.
(f)      Availed Party ” has the meaning set forth in Section 8.2(a) .
(g)      Bankrupt ” means, with respect to any Person, that such Person (i) becomes insolvent or unable to pay its debts as they become due; (ii) commences any case, proceeding or other action under any existing or future law seeking to enter into any composition or other arrangement for the benefit of its creditors generally or any class of creditors; (iii) applies for, consents to, or acquiesces in, the appointment of a trustee, receiver, sequestrator or other custodian for such Person or any of its property, or makes a general assignment for the benefit of creditors; (iv) in the absence of such application, consents or acquiesces in, permits or suffers to exist the appointment of a trustee, receiver, sequestrator, intervenor, mediator or other custodian for such Person or for a substantial part of its property, and such trustee, receiver, sequestrator, intervenor, mediator or other custodian is not discharged within sixty (60) days; (v) permits or suffers to exist the commencement of any bankruptcy, reorganization, debt arrangement or other case or proceeding under any bankruptcy or insolvency law or any dissolution, liquidation, winding up or liquidation proceeding, in respect of such Person and, if any such case or proceeding is not commenced by such Person, such case or proceeding is consented to or acquiesced in by such Person or results in the entry of an order for relief or remains undismissed or unstayed for sixty (60) days; or (vi) takes any corporate action authorizing, or in furtherance of, any of the foregoing.
(h)      Claims and Liabilities ” means all suits, sanctions, actions, liabilities, legal proceedings, government fines and penalties, pollution clean-up, damages to natural resources, claims, demands, losses, damages, costs, expenses, or causes of action of every kind and character, including all claims that may exist, arise, or be threatened as of or following the Effective Date and whether or not of a type contemplated by any Party.


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(i)      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 or customer relationships, consumer 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 (i) has been published or has otherwise become available to the general public as part of the public domain without breach of this Agreement, (ii) has been furnished or made known to the receiving Party by a Third Party under circumstances that are not known to the receiving Party to involve a breach of the Third Party’s obligations to the disclosing Party or (iii) was developed independently of information furnished or made available to the receiving Party under this Agreement.
(j)      Default Rate ” means the rate per annum equal to LIBOR plus one percent (1%). Any interest payable hereunder shall accrue from day to day and be calculated on the basis of a three hundred sixty-five (365) day year.
(k)      Dispute ” means any dispute or difference of whatsoever nature arising under, out of, in connection with or in relation (in any manner whatsoever) to this Agreement or the subject matter of this Agreement.
(l)      Effective Date ” has the meaning set forth in the Recital.
(m)      Event of Default ” has the meaning set forth in Section 11.1 .
(n)      Expenses ” has the meaning set forth in Section 6.1 .
(o)      Extension Period ” has the meaning set forth in Section 2.1 .
(p)      Fees ” means the fees charged for the Services as set forth on Exhibit B .
(q)      Force Majeure Event ” means any event or circumstance that is beyond the reasonable control of a Party and which the affected Party is not able to overcome through the exercise of commercially reasonable efforts that prevents or delays the affected Party from complying, either totally or in part, with any of its obligations under this Agreement, including, to the extent consistent with the foregoing, any fire, flood, storm, strike, walkout, lockout or other labor trouble or shortage, delays by unaffiliated suppliers or carriers, shortages of fuel, power, raw materials or components, equipment failure, any law, order, proclamation, regulation, ordinance, demand, seizure or requirement of any Governmental Authority, riot, civil commotion, war,

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rebellion, act of terrorism, nuclear or other accident, explosion, casualty, pandemic, or act of God, or act, omission or delay in acting by any Governmental Authority or military authority or Third Party.
(r)      Force Majeure Notice ” has the meaning set forth in Section 3.5(a) .
(s)      Governmental Authority ” means the government of any nation or any political subdivision thereof, whether at the national, state, municipal or any other level, and any agency, authority, instrumentality, regulatory body, court, central bank or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative powers or functions of, or pertaining to, government.
(t)      Indemnified Party ” means a Party receiving indemnification from the other Party in accordance with the terms of this Agreement.
(u)      Indemnifying Party ” means a Party providing indemnification to the other Party in accordance with the terms of this Agreement.
(v)      Initial Term ” has the meaning set forth in Section 2.1 .
(w)      LIBOR ” means, on a particular day, the rate per annum for three (3) month deposits in US Dollars which appears on the Reuters screen “LIBO Page” at or about 11 a.m. (London time) on the first day of the period for which interest is to be calculated, or, if such day is not a day on which banks are open for business in London, on the next following day on which banks are open for business in London. If Reuters information service fails to display such rate on any day when a rate is to be determined as aforesaid, but such rate is so displayed on Bridge Telerate or is available directly from the Intercontinental Exchange Benchmark Administration Limited (or any other Person that takes over the administration of that rate), it shall be determined from that source accordingly.
(x)      Mediation Notice ” has the meaning set forth in Section 13.2(b) .
(y)      MPLS has the meaning set forth in the Preamble.
(z)      MPLS Indemnified Parties ” means MPLS, each of its directors, managers, officers, employees and agents, and each of the heirs, executors, successors and assigns of any of the foregoing.
(aa)      MPLXT has the meaning set forth in the Preamble.
(bb)      MPLXT Indemnified Party ” means MPLXT, each of its directors, managers, officers, employees and agents, and each of the heirs, executors, successors and assigns of any of the foregoing.
(cc)      Operator means any Third Party that manages or operates any Terminal Location.
(dd)      Original ESA ” has the meaning set forth in the Recitals.

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(ee)      Party means MPLS or MPLXT, as applicable.
(ff)      Person ” means a natural person, corporation, partnership, limited liability company, joint stock company, trust, estate, joint venture, union, association or unincorporated organization, Governmental Authority or any other form of business or professional entity.
(gg)      Security Regulations ” has the meaning set forth in Section 8.2(a) .
(hh)      Services ” means the services generally described on Exhibit B .
(ii)      Systems ” has the meaning set forth in Section 8.2(a) .
(jj)      Term ” has the meaning set forth in Section 2.1 .
(kk)      Terminal Locations has the meaning set forth in the Recitals.
(ll)      Third Party ” means a Person that is not a Party or an Affiliate of a Party.

1.2      Interpretation. In this Agreement, unless the context clearly indicates otherwise:
(a)      words used in the singular include the plural and words used in the plural include the singular;
(b)      references to any Person include such Person’s successors and assigns but, if applicable, only if such successors and assigns are permitted by this Agreement;
(c)      any reference to any gender includes the other gender;
(d)      the words “include,” “includes” and “including” shall be deemed to be followed by the words “without limitation”;
(e)      any reference to any Article, Section or Exhibit means such Article or Section of, or such Exhibit to, this Agreement, as the case may be, and references in any Article, Section or Exhibit to any clause means such clause of such Article, Section or Exhibit;
(f)      the words “herein,” “hereunder,” “hereof,” “hereto” and words of similar import shall be deemed references to this Agreement as a whole and not to any particular Section or other provision hereof;
(g)      any reference to any agreement, instrument or other document means such agreement, instrument or other document as amended, supplemented and modified from time to time;
(h)      any reference to any law (including statutes and ordinances) means such law (including all rules and regulations promulgated thereunder) as amended, modified, codified

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or reenacted, in whole or in part, and in effect at the time of determining compliance or applicability;
(i)      relative to the determination of any period of time, “from” means “from and including,” “to” means “to but excluding” and “through” means “through and including”;
(j)      if there is any conflict between the provisions of the main body of this Agreement and the Exhibits, the provisions of the main body of this Agreement shall control unless explicitly stated otherwise in such Exhibit;
(k)      the titles to Articles and headings of Sections contained in this Agreement have been inserted for convenience of reference only and shall not be deemed to be a part of or to affect the meaning or interpretation of this Agreement;
(l)      any references to Services to be provided by MPLS to “MPLXT” hereunder shall be deemed to mean “MPLXT and its designated Affiliates”;
(m)      all references to dollar amounts shall be in respect of lawful currency of the United States;
(n)      the language of this Agreement shall be deemed to be the language the Parties have chosen to express their mutual intent, and no rule of strict construction shall be applied against either Party; and
(o)      the Exhibits form part of this Agreement and shall have the same force and effect as if set out in the body of this Agreement and any reference to this Agreement shall include the Exhibits.
ARTICLE 2
TERM
2.1      Term . This Agreement is effective for a time period commencing on the Effective Date and shall continue for a period of five (5) years (the “ Initial Term ”) or the end of any Extension Period unless terminated earlier pursuant to the terms hereof. This Agreement will automatically renew for up to two (2) additional renewal terms of five (5) years each (each, an “ Extension Period ”), unless either Party provides the other Party with written notice of its intent to terminate this Agreement at least twelve (12) months prior to the end of the then-current Initial Term or Extension Period, as applicable. The Initial Term and Extension Periods, if any, shall be referred to collectively as the “ Term ”.
ARTICLE 3
PERFORMANCE OF SERVICES
3.1      General .


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(a)      During the Term, MPLS shall provide, or cause to be provided, a sufficient number of suitably qualified and experienced personnel as is required to perform the Services; provided , however , that MPLXT shall have the right to approve or reject such personnel in MPLXT’s sole discretion. As between MPLXT and any Operator, all Services performed or provided by MPLS shall be at the direction and under the control of MPLXT, and not at the direction or under the control of any Operator.
(b)      At all times during the Term:
(i)      unless specifically provided to the contrary on Exhibit B , all Services provided by MPLS pursuant to this Agreement shall be performed or provided, as applicable: (A) with the use of reasonable care; (B) consistent with this Agreement and in substantially the same manner (including as to level, quality and timeliness) as such Services have been provided relative to MPLXT’s assets prior to the Effective Date; and (C) in material compliance with Applicable Law;
(ii)      when selecting and providing personnel to MPLXT, MPLS shall use reasonable care in material compliance with Applicable Law;
(iii)      MPLXT shall direct, control and supervise all Services performed or provided by personnel provided by MPLS to MPLXT under this Agreement;
(iv)      notwithstanding anything to the contrary in this Agreement, MPLS shall not be required to perform Services or take any actions relating thereto that conflict with or violate any Applicable Law, contract or certification; and
(v)      in the event that MPLS is unable to provide a sufficient number of suitably qualified and experienced personnel, as determined in good faith by MPLXT, MPLXT may engage (or hire a Third Party to engage) personnel to provide the relevant Services.
3.2      Additional Services . If MPLXT reasonably determines that additional services (not listed on Exhibit B at the time of the determination) or additional personnel are required in order for MPLXT to conduct its business involving the Terminal Locations, then MPLXT may provide written notice thereof to MPLS in accordance with Section 3.3 . If MPLS agrees, in its sole discretion, to provide such additional service or personnel during the Term, then the Parties shall negotiate in good faith an amendment to Exhibit B to include a description of the additional service (each such service an “ Additional Service ”) or to provide additional personnel, the terms and conditions for the provision of each Additional Service or each additional personnel, and the Fees payable to MPLS for each such Additional Service or additional personnel. Any Additional Services provided pursuant to this Agreement shall be deemed to be “Services” under this Agreement.
3.3      Modification; Third Party Providers .
(a)      Any communications regarding (i) the execution of the Services; (ii) the provision of personnel by MPLS or the approval or disapproval of personnel by MPLXT; (iii) any modification or alteration to the provision of the Services; or (iv) the provision of Additional Services or additional personnel must be made and agreed to, in writing, by an Authorized Representative

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(it being understood that the receiving Party shall not be obligated to agree to any modification or alteration requested thereby).
(b)      Each Party acknowledges and agrees that certain of the personnel performing the Services under this Agreement have been, and will continue to be, provided to MPLXT by Third Parties designated by MPLS. To the extent so provided, MPLS shall use commercially reasonable efforts to (i) cause such Third Parties to provide personnel to perform such Services under this Agreement and (ii) enable MPLXT to avail itself of such Services; provided , however , that if any such Third Party is unable or unwilling to provide personnel to perform any such Services, the Parties agree to use their commercially reasonable efforts to determine the manner in which such Services can best be provided. It is acknowledged and agreed that any Expenses to be incurred in connection with obtaining personnel to perform Services from a Third Party shall be paid by MPLXT; provided , however , that MPLS shall use commercially reasonable efforts to communicate in advance to MPLXT the expected Expenses to be incurred.
3.4      Disclaimer of Warranties. EXCEPT AS EXPRESSLY SET FORTH IN THIS AGREEMENT, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, MPLS MAKES NO, AND EXPRESSLY DISCLAIMS ANY, WARRANTIES WHATSOEVER WITH RESPECT TO THE SERVICES, INCLUDING ANY (a) WARRANTY OF MERCHANTABILITY; OR (b) WARRANTY OF FITNESS FOR A PARTICULAR PURPOSE; OR (c) WARRANTY OF TITLE; OR (d) WARRANTY AGAINST INFRINGEMENT OF INTELLECTUAL PROPERTY RIGHTS OF A THIRD PARTY; WHETHER EXPRESS OR IMPLIED BY LAW, COURSE OF DEALING, COURSE OF PERFORMANCE, USAGE OF TRADE OR OTHERWISE.
3.5      Force Majeure .
(a)      As soon as possible following the occurrence of a Force Majeure Event, the Party affected by the Force Majeure Event shall promptly notify the other Party in writing of the occurrence of such Force Majeure Event (a “ Force Majeure Notice ”). Concurrent with the Force Majeure Notice or as soon as possible thereafter, the affected Party shall give the other Party a full description of the Force Majeure Event and the approximate length of time that the affected Party reasonably believes such Force Majeure Event will continue. Each Party shall use commercially reasonable efforts to mitigate or overcome the effects of such Force Majeure Event as soon as possible; provided , however , that neither Party shall be required to settle any strike, walkout, lockout or other labor dispute on terms which, in the reasonable judgment of the affected Party, are contrary to its interest. It is understood that the settlement of a strike, walkout, lockout or other labor dispute will be entirely within the discretion of the affected Party.
(b)      If personnel provided by MPLS are unable to perform any Service due to a Force Majeure Event, MPLXT shall have the right, but not the obligation, to engage subcontractors to perform such obligations for the duration of the Force Majeure Event; provided , however , that any Fees paid or payable by MPLXT to MPLS under this Agreement with respect to the provision of personnel to perform the Services affected by such Force Majeure Event shall be reduced (or refunded, if applicable) on a dollar-for-dollar basis for all amounts paid by or on behalf of MPLXT to any such subcontractors; provided further , however ,

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that MPLS shall not be responsible for the amounts of fees paid by or on behalf of MPLXT to any such subcontractors to perform such services to the extent such fees exceed the aggregate Fees paid or owed to MPLS for the applicable period of the Force Majeure Event.
ARTICLE 4
COOPERATION
4.1      Cooperation . Each Party shall use good faith efforts to cooperate with the other Party in all matters relating to the provision and receipt of personnel to perform the Services, including providing in a timely manner any information, documentation, approvals and acceptances reasonably requested by a Party, other than information and documentation protected by attorney-client privilege.
4.2      Consents .
(a)      Each Party shall provide reasonable cooperation to obtain all Third Party consents for any Third Party software or other Third Party intellectual property related to the provision of personnel to provide the Services sufficient to enable MPLS to provide personnel to perform the Services in accordance with this Agreement; provided , however , that no Party shall be obligated under this Agreement to pay any consideration (other than de minimis transfer fees), grant any concession or incur any liability to any Third Party to obtain any such Third Party’s consent.
(b)      If any Third Party consent or approval required for the provision of personnel to provide the Services hereunder is not obtained, then (unless and until such Third Party consent or approval is obtained) the Parties shall, to the extent practicable, cooperate with each other in achieving a reasonable alternative arrangement for MPLXT to obtain such personnel to provide the Services.
ARTICLE 5
FEES
5.1      Fees . Subject to Section 3.5(b) , MPLXT shall pay MPLS the Fees for the provision of personnel to provide the Services as set forth on Exhibit B and in accordance with Article 6 . If personnel provided by MPLS hereunder are unable to perform any Service due to a Force Majeure Event, then MPLS shall reduce the Fees to account for any reduction in the performance of Services by such personnel.
5.2      Taxes . To the extent required by Applicable Law, MPLS shall add to any Fees due under this Agreement amounts equal to any sales, use or similar taxes, however designated or levied, based upon the provision of personnel to perform the Services performed hereunder. MPLS is solely responsible for the collection and remittance of any such taxes to the appropriate tax authorities. The Parties shall cooperate with each other to minimize any such taxes to the extent reasonably practicable. If additional taxes are determined to be due with respect to the provision of personnel provided hereunder to perform the Services as a result of (a) an audit by any applicable tax authority, or (b) a new or change in Applicable Law, then MPLXT

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shall reimburse MPLS for the additional taxes due from MPLS, including interest and penalty. MPLXT has the right to contest with the tax authority, at MPLXT’s sole expense, the amount of any taxes or the result of any audit. MPLS is responsible for any penalty or interest resulting from its failure to remit any invoiced taxes. Notwithstanding anything in this Agreement to the contrary, this Section 5.2 will, to the fullest extent permitted by Applicable Law, survive the termination of this Agreement and remain in effect until the expiration of the relevant statutes of limitations.
5.3      Adjustments. In the event of the termination of this Agreement (a) with respect to any Services for which the Fee for such Services is charged as a flat monthly rate, if termination occurs other than at the end of the month, the Fee for that month shall be prorated to reflect a partial month, and (b) with respect to any other Services, all amounts due pursuant to the terms hereof with respect to the Services shall be appropriately prorated and reduced to reflect any shortened period during which such Services are actually provided, and MPLS shall refund to MPLXT the appropriate prorated amount for any such Services that have been paid for in advance. Notwithstanding the immediately preceding sentence, to the extent any amounts due or advances made hereunder related to costs or Expenses that have been or will be incurred and that cannot be recovered by MPLS, such amounts due or advances made shall not be prorated or reduced and MPLS shall not be required to refund any prorated amount for such costs or Expenses; and MPLXT shall reimburse MPLS for any Third Party cancellation or similar charges incurred as a result of such termination.
ARTICLE 6
INVOICE AND PAYMENT; AUDIT
6.1      Invoices and Payment. Within twenty (20) days following the end of each month during the Term, MPLS will submit to MPLXT for payment a written invoice for the amounts due under this Agreement for such month. The invoice will set forth the Fees, in the aggregate and itemized, based on the descriptions set forth on Exhibit B . Each invoice will contain documentation and other details in support of the invoiced amounts as MPLXT may reasonably require to validate such invoiced amounts. Except as otherwise provided in this Agreement, MPLXT shall reimburse MPLS monthly for all out-of-pocket costs and expenses reasonably incurred and actually paid by MPLS to Third Parties on behalf of MPLXT in connection with providing personnel to perform the Services (the “ Expenses ”).
6.2      Timing of Payment; No Offsets . MPLXT shall pay all amounts due pursuant to this Agreement within ten (10) days after the receipt of the relevant invoice. MPLXT shall not offset any amounts owing to it by MPLS or any Affiliates of MPLS against amounts payable hereunder.
6.3      Non-Payment. If MPLXT fails to make payment of any sum as and when due under this Agreement, then MPLXT shall pay interest thereon to MPLS at the Default Rate (as in effect on the day when such sum was originally due) on and from the day when payment was due until the date of payment.


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6.4      Payment Disputes . MPLXT may contest any amount of any invoice at any time before or after payment is made, provided such objection is made in writing to MPLS within thirty (30) days following the end of the month in which the relevant Services were invoiced. MPLXT shall timely pay any disputed items in full while resolution of the dispute is pending; provided , however , that MPLS shall pay interest at the Default Rate on any amounts it is required to return to MPLXT upon resolution of the dispute. Payment of the uncontested amount shall not constitute approval thereof. Any dispute under this Section 6.4 shall be resolved in accordance with the provisions of Section 13.2 .
6.5      Audit Rights .
(a)      MPLXT may, at its own cost and expense, audit (or cause an independent Third Party auditor to audit) the books and records of MPLS to the extent necessary to determine MPLS’s compliance with this Agreement with respect to Fees and Expenses charged or the performance of MPLS’s obligations under this Agreement. MPLXT shall have the right to conduct such audit no more than once with respect to each calendar year during the Term; provided , however , that any audit shall not be commenced later than twelve (12) months after the end of the calendar year to be audited.
(b)      Any audit shall be conducted during regular business hours and in a manner that does not unreasonably interfere with the operations of MPLS. MPLXT shall provide reasonable advance notice to MPLS prior to the commencement of the audit and shall specify the date on which the audit will commence.
ARTICLE 7
CONTROL OF SERVICES; OWNERSHIP OF ASSETS
7.1      Control of Services. Notwithstanding anything to the contrary in this Agreement, MPLXT shall at all times have exclusive authority to manage and control the business and operations of MPLXT. In connection with managing and controlling the business and operations of MPLXT, the Services shall be under the ultimate direction, control and supervision of MPLXT.
7.2      Employee Status. During the Term of this Agreement:
(a)      no employee of MPLS shall be deemed an employee of MPLXT by reason of such employee’s involvement in providing Services provided hereunder. MPLS shall bear the sole responsibility for payment of each such employee’s wages, benefits, all withholding obligations to federal, state and local taxation and insurance authorities and all other costs and expenses associated with such employees, including those costs and expenses related to workers’ compensation claims;
(b)      subject to the rights of MPLXT to direct and control the performance and provision of the Services as set forth in this Agreement, MPLS shall serve as the employer directly controlling the personnel that it provides to perform such Services and shall retain the exclusive right to review employees’ performance, determine employees’ compensation and benefits,

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discipline employees and determine whether or not to continue employees’ employment; and
(c)      notwithstanding anything in this Agreement to the contrary, no provision of this Agreement shall be construed as (i) granting employees any employment rights for a specific duration or constraining MPLS’s right to terminate the employment relationship with any of its employees or (ii) adversely affecting the ability of any MPLS employee to be considered for transfers or promotions to positions listed on any internal job posting system.
7.3      Assets . All procedures, methods, Systems, strategies, tools, equipment, facilities and other resources used by a Party or any of its Affiliates in connection with the performance of its obligations hereunder shall remain the property of such Party or its Affiliate and, except as otherwise provided herein, shall at all times be under the sole direction and control of such Person. No license under any patents, know-how, trade secrets, copyrights or other rights is granted by this Agreement or any disclosure in connection with this Agreement by any Party.
ARTICLE 8
CONFIDENTIALITY; SECURITY
8.1      Confidentiality .
(a)      During the Term and for a period of three (3) years after the termination of this Agreement, each Party shall keep confidential the other Party’s Confidential Information, whether acquired before or after the Effective Date, and neither Party shall release or disclose the other Party’s Confidential Information to any Third Party other than a receiving Party’s representatives with a need to know the Confidential Information for the purposes of such Party’s performance pursuant to this Agreement.
(b)      Each Party shall be responsible for any breach of this Section 8.1 by any of its representatives.
(c)      The provisions of this Section 8.1 do not apply to any Confidential Information to the extent that the receiving Party is required to disclose such information under any Applicable Law or pursuant to any order of any court, mediator or arbitrator, or in connection with any legal proceeding, mediation or arbitration to enforce its rights under this Agreement, or in connection with the requirements of a regulatory body or stock exchange, or in connection with a financing, bond offering, or sale of stock.
(d)      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

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satisfy the subpoena or demand or the requirements of the applicable Governmental Authority. If the receiving Party is nonetheless 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 required to be disclosed by the subpoena or other demand.
(e)      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 8.1 and agrees that, in the event of such breach, the disclosing Party shall, in addition to the other remedies that may be available to it, be entitled to injunctive relief for any violation of, and to enforce the terms of, this Section 8.1 .
8.2      System Security .
(a)      If any Party is given access to the other Party’s computer systems or software (collectively, “ Systems ”) in connection with the Services, the Party given access (the “ Availed Party ”) shall comply with all of the other Party’s System security policies, procedures and requirements that have been provided to the Availed Party in advance and in writing (collectively, “ Security Regulations ”), and shall not tamper with, compromise or circumvent any security or audit measures employed by such other Party. The Availed Party shall access and use only those Systems of the other Party for which it has been granted the right to access and use.
(b)      Each Party shall use commercially reasonable efforts to ensure that only those of its personnel who are specifically authorized to have access to the Systems of the other Party gain such access, and each Party shall use commercially reasonable efforts to prevent unauthorized access, use, destruction, alteration or loss of data, information or software contained in the Systems, including notifying its respective personnel of the restrictions set forth in this Section 8.2 and of the Security Regulations.
(c)      If, at any time, the Availed Party determines that any of its personnel has sought to circumvent, or has circumvented, the Security Regulations, has accessed the Systems, or has engaged in activities that may lead to the unauthorized access, use, destruction, alteration or loss of data, information or software of the other Party, the Availed Party shall promptly terminate any such Person’s access to the Systems and promptly notify the other Party. In addition, such other Party shall have the right to deny personnel of the Availed Party access to its Systems upon advance written notice to the Availed Party in the event that the other Party reasonably believes that such personnel have engaged in any of the activities described in this Section 8.2(c) or otherwise pose a System security concern. The Availed Party shall use commercially reasonable efforts to cooperate with the other Party in investigating any apparent unauthorized access to such other Party’s Systems.
ARTICLE 9
NO PARTNERSHIP OR AGENCY RELATIONSHIP



13

 

9.1      No Partnership or Agency Relationship. This Agreement shall not be interpreted or construed to create an association, partnership, agency, franchise, joint venture, employment or fiduciary relationship between MPLXT and MPLS or any of their respective Affiliates. Except as explicitly set forth in this Agreement, neither Party shall have any right, power or authority to enter into any agreement or undertaking for, act on behalf of, act or be an agent or representative of, or otherwise bind, the other Party.
ARTICLE 10
REPRESENTATIONS AND WARRANTIES
10.1      Representations and Warranties . Each Party hereby represents and warrants to the other as of the date of this Agreement that:
(a)      it is duly organized and validly existing under the laws of its jurisdiction of organization;
(b)      it has the power to own its assets and carry on its business as it is currently being conducted;
(c)      the obligations expressed to be assumed by it in this Agreement are legal, valid, binding and enforceable obligations upon it, subject to applicable bankruptcy, reorganization, insolvency or similar laws affecting creditors’ rights generally;
(d)      the entry into, and performance by it, of the transactions contemplated by this Agreement do not and will not conflict with (i) any Applicable Law; (ii) its constitutional documents; or (iii) any material provision of any material agreement or instrument binding upon it; and
(e)      it has the power to enter into, perform and deliver, and has taken all necessary action to authorize its entry into, performance and delivery of this Agreement and the transactions contemplated by this Agreement.
ARTICLE 11
TERMINATION
11.1      Events of Default. The occurrence or continuance of any of the following events will constitute a default of this Agreement by a Party (each an “ Event of Default ”):
(a)      failure to pay any undisputed amount due and payable to the other Party under this Agreement within ten (10) business days after such amount becomes due and payable and such failure is not remedied within a period of thirty (30) days of written notice of such failure from the other Party;
(b)      a Party becomes Bankrupt;

14

 

(c)      a Party is in material breach of any of its other material obligations under this Agreement and fails to cure such breach to the reasonable satisfaction of the non-defaulting Party within forty-five (45) days of written notice of such breach from the non-defaulting Party; and
(d)      any representation, warranty or statement made by a Party herein proves to be untrue in any material respect on the date on which it was made.
11.2      Termination. Upon the occurrence of an Event of Default by either Party, the non-defaulting Party shall have the right to terminate this Agreement effective immediately upon delivery of written notice to the defaulting Party.
11.3      Procedures on Termination. Following termination of this Agreement, each Party will cooperate with the other as reasonably necessary to avoid disruption of the ordinary course of the other Party’s business. Subject to MPLXT’s right to seek reimbursement pursuant to Section 5.3 , termination shall not affect MPLS’s right to payment for personnel provided prior to termination to perform the Services provided prior to termination.
11.4      Effect of Termination. Upon termination of this Agreement, all rights and obligations of the Parties hereunder shall cease, provided that such termination shall not effect or excuse a Party’s breach of this Agreement prior to termination.
ARTICLE 12
INDEMNIFICATION AND LIABILITY
12.1      Indemnification by MPLXT. MPLXT shall be liable for and shall indemnify, defend and hold harmless each of the MPLS Indemnified Parties against all Claims and Liabilities that arise out of, are incident to, or result from (a) any and all actions, suits or proceedings instituted by a Governmental Authority arising out of any failure of MPLXT’s actions or performance of its obligations hereunder to conform to Applicable Law; (b) claims for bodily injury or death or physical loss of or damage to property arising from MPLXT’s or MPLS’s actions or omissions; and (c) any negligence, gross negligence, default or willful misconduct of MPLXT in connection with the performance of, or failure to perform, this Agreement by MPLXT, except to the extent the circumstances described in the foregoing subparagraphs (a), (b) and (c) are a result of the gross negligence or willful misconduct of MPLS.
12.2      Indemnification by MPLS. MPLS shall be liable for and shall indemnify, defend and hold harmless each of the MPLXT Indemnified Parties against all Claims and Liabilities that arise out of, are incident to, or result from (a) any and all actions, suits or proceedings instituted by a Governmental Authority arising out of any failure of MPLS’s actions or performance of its obligations hereunder to conform to Applicable Law; (b) claims for bodily injury, illness or death or physical loss of or damage to property arising from the gross negligence or willful misconduct of MPLS; (c) any gross negligence or willful misconduct of MPLS in connection with the performance of, or failure to perform, this Agreement; and (d) any

15

 

and all actions, suits or proceedings alleging that MPLXT is an employer or joint employer of any MPLS employee.
12.3      Limitations and Liability. IN NO EVENT SHALL EITHER PARTY BE LIABLE FOR ANY SPECIAL, INCIDENTAL, INDIRECT, CONSEQUENTIAL (INCLUDING LOSS OF REVENUES OR PROFITS, LOSS OF DATA, LOSS OF GOODWILL AND LOSS OF CAPITAL, WHETHER OR NOT SUCH PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES), EXEMPLARY OR PUNITIVE DAMAGES OR THE LIKE (EXCEPT TO THE EXTENT THAT SUCH DAMAGES ARE PAID TO A THIRD PARTY AS A RESULT OF A THIRD PARTY CLAIM) ARISING UNDER ANY LEGAL OR EQUITABLE THEORY OR ARISING UNDER OR IN CONNECTION WITH THIS AGREEMENT (OR THE PROVISION OF SERVICES HEREUNDER), ALL OF WHICH ARE HEREBY EXCLUDED BY AGREEMENT OF THE PARTIES REGARDLESS OF WHETHER OR NOT EITHER PARTY TO THIS AGREEMENT HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. THESE LIMITATIONS SHALL APPLY NOTWITHSTANDING ANY FAILURE OF ESSENTIAL PURPOSE OF ANY LIMITED REMEDY.
12.4      Risk Allocation Essential. Each Party agrees that the Fees charged under this Agreement reflect the agreed allocation of risk between the Parties, including this Article 12 , and the limitations on liability in Section 12.3 . Modifying the allocation of risk from what is stated here would affect the Fees charged by MPLS, and in consideration of those Fees, each Party agrees to the stated allocation of risk.
12.5      Indemnification Procedures .
(a)      Within a reasonable period of time after it becomes aware of facts giving rise to a claim for indemnification under this Article 12 , the Indemnified Party will provide notice thereof in writing to the Indemnifying Party, specifying the nature of and specific basis for such claim to the extent then known by the Indemnified Party.
(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 12 , including 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 settlement involving 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; and provided further , that no 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, conditioned 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 12 , including the prompt furnishing to the Indemnifying Party of any correspondence or other notice relating thereto that the Indemnified Party may receive,

16

 

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 reasonably 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 12.5 . 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 12 ; 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, but the Indemnifying Party shall have the right to retain sole control over such defense and counterclaims.
(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 (ii) all amounts recovered by the Indemnified Party under contractual indemnities from Third Parties.
(e)      Notwithstanding anything to the contrary hereunder, no cause of action, dispute or claim for indemnification may be asserted against any Party or submitted to arbitration or legal proceedings which accrued more than two (2) years after the later of (i) the occurrence of the act or event giving rise to the underlying cause of action, dispute or claim and (ii) the date on which such act or event was, or should have been, in the exercise of reasonable due diligence, discovered by the Indemnified Party.
ARTICLE 13
MISCELLANEOUS
13.1      Entire Agreement . This Agreement constitutes the entire agreement between the Parties with respect to the subject matter hereof, and supersedes all prior agreements, negotiations, discussions, understandings and commitments, written or oral, between the Parties with respect to such subject matter.
13.2      Choice of Law; Dispute Resolution .
(a)      Choice of Law . This Agreement shall be subject to and governed by the laws of the State of New York, without regard to the conflict of law provisions thereof to the extent such rules or principles would require or permit the application of the laws of any other jurisdiction.

17

 

(b)      Mediation . If the Parties cannot resolve any Dispute or claim arising under this Agreement, then no earlier than ten (10) days nor more than sixty (60) days following written notice to the other Party, any Party may initiate mandatory, non-binding mediation hereunder by giving a notice of mediation (a “ Mediation Notice ”) to the other Party. In connection with any mediation pursuant to this Section 13.2(b) , the mediator shall be jointly appointed by the Parties and the mediation shall be conducted in Findlay, Ohio unless otherwise agreed by the Parties. All costs and expenses of the mediator appointed pursuant to this section shall be shared equally by the Parties. 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, shall govern any mediation pursuant to this section. In the mediation, each Party shall be represented by one or more senior representatives who shall have authority to resolve any Disputes. If a Dispute has not been resolved within thirty (30) days after the receipt of the Mediation Notice by a Party, then any Party may refer the resolution of the Dispute to any federal or state court located in Ohio in accordance with Section 13.2(c) .
(c)      Each Party agrees that it shall bring any action or proceeding in respect of any Dispute or 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 Ohio 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 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 13.9 . The foregoing consents to jurisdiction and service of process shall not constitute general consents to service of process in the State of Ohio for any purpose except as provided herein and shall not be deemed to confer rights on any Person other than the Parties.
13.3      Amendment . This Agreement may only be amended, modified or supplemented by a written instrument signed by an Authorized Representative of the Parties.
13.4      Waiver; Cumulative Remedies . Any term or provision of this Agreement may be waived, or the time for its performance may be extended, by the Party entitled to the benefit thereof. Any such waiver shall be validly and sufficiently given for the purposes of this Agreement if, as to any Party, it is in writing signed by an Authorized Representative of such Party. The failure of any Party to enforce at any time any provision of this Agreement shall not be construed to be a waiver of such provision, or in any way to affect the validity of this Agreement or any part hereof or the right of any Party thereafter to enforce each and every such provision. No waiver of any breach of this Agreement shall be held to constitute a waiver of any other or subsequent breach. No single or partial exercise of any right or remedy under this Agreement precludes any simultaneous or subsequent exercise of any other right, power or privilege. The rights and remedies set forth in this Agreement are not exclusive of, but are cumulative to, any rights or remedies now or subsequently existing at law, in equity or by statute.
13.5      Survival. Notwithstanding any suspension or termination of this Agreement, the Parties shall continue to be bound by the provisions of this Agreement that reasonably require some action or forbearance after such suspension or termination, including those relating to

18

 

confidentiality obligations, audit rights, warranties, compliance with Applicable Law, governing law, dispute resolution, indemnities, and limitation of liability.
13.6      Severability. The provisions of this Agreement are separable and severable. Wherever possible, each provision hereof shall be interpreted in such a manner as to be effective and valid under Applicable Law. If any one or more of the provisions contained herein is, for any reason, held to be invalid, illegal or unenforceable in whole or in part by any court of law or equity, then such provision or provisions shall be ineffective to the extent, but only to the extent, of such invalidity, illegality or unenforceability without invalidating the remainder of such provision or provisions or any other provisions hereof, unless such a construction would be unreasonable.
13.7      Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the Parties and their successors and permitted assigns; provided , however , that the rights and obligations of any Party under this Agreement shall not be assignable by such Party without the prior written consent of the other Party; provided , further , that notwithstanding anything to the contrary herein, MPLXT may assign this Agreement to its Affiliate, MPLX Terminals LLC, upon notice to, and without the consent of, MPLS. The successors and permitted assigns hereunder shall include any permitted assignee as well as the successors in interest to such permitted assignee (whether by merger, liquidation (including successive mergers or liquidations) or otherwise).
13.8      Third Party Beneficiaries. Except to the extent otherwise provided in Article 12 with respect to the rights of the Indemnified Parties, the provisions of this Agreement are solely for the benefit of the Parties and their respective successors and permitted assigns and shall not confer upon any Third Party any remedy, claim, liability, reimbursement or other right. Notwithstanding Article 12 , the Parties may rescind or vary this Agreement, in whole or in part, without the consent of any Third Party, and no Third Party shall be entitled to assign any benefit or right conferred upon it under this Agreement.
13.9      Notices. All notices, consents, directions, approvals, objections, refusals, instructions, requests, demands, and other communications required or permitted to be given under this Agreement shall be in writing and shall be deemed duly given or delivered (a) when delivered personally; (b) if by email, when receipt of such email is acknowledged by return email; (c) if sent by registered or certified mail, postage prepaid, return receipt requested, on the third business day after mailing; or (d) if sent by private courier, when received; and shall be addressed to the appropriate Party at its address specific below, or at such other address as such Party may specify by notice to the other Party:

if to

MPLX Terminals LLC
539 South Main St.
Findlay, OH 45840
Attention: General Counsel




19

 

if to

Marathon Petroleum Logistics Services LLC
539 South Main St.
Findlay, OH 45840
Attention: President

or, to such other address as such Party may indicate by a notice delivered in accordance with this Section 13.9 .

13.10      Counterparts. This Agreement may be executed by the Parties in separate counterparts, each of which when so executed and delivered shall be an original, but all such counterparts shall together constitute but one and the same instrument. Executed facsimiles of such counterparts shall be deemed enforceable to the same extent as if they were executed original documents.

[Remainder of page intentionally left blank.]

20

 


IN WITNESS WHEREOF, the Parties have caused this Agreement to be signed by their Authorized Representatives as of the Effective Date.


Marathon Petroleum Logistics Services LLC
 
 
 
 
By:
/s/ John S. Swearingen
 
John S. Swearingen, President

MPLX Terminals LLC
 
 
 
 
By:
/s/ Timothy J. Aydt
 
Timothy J. Aydt, President


21

 

Exhibit A

TERMINAL LOCATIONS

Terminal Name
State
Bay City
MI
Bellevue
OH
Belton
SC
Birmingham
AL
Brecksville
OH
Canton
OH
Champaign
IL
Charleston
WV
Charlotte (East)
NC
Charlotte (West)
NC
Cincinnati
OH
Columbus (East & West)
OH
Columbus (GA)
GA
Covington
KY
Detroit
MI
Doraville
GA
Evansville
IN
Flint
MI
Ft. Lauderdale (Eisenhower)
FL
Ft. Lauderdale (Spangler)
FL
Garyville
LA
Greensboro (Friendship) – Guilford County
NC
Hammond
IN
Heath
OH
Huntington
IN
Indianapolis
IN
Jackson
MI
Jacksonville
FL
Kenova/Catlettsburg Docks
WV/KY
Knoxville
TN
Lansing
MI
Lexington
KY
Lima
OH
Louisville (Algonquin)
KY
Louisville (Kramers)
KY
Macon
GA
Marietta
OH
Midland
PA
Montgomery
AL
Mt. Prospect
IL
Mt. Vernon
IN
Muncie
IN
Nashville (Bordeaux)
TN
Nashville (Downtown)
TN
Nashville (51st)
TN
Niles
MI
North Muskegon
MI
Oregon
OH
Paducah
KY


A-1


 

Powder Springs
GA
Robinson
IL
Rockford
IL
Romulus
MI
Selma (Buffalo)
NC
Selma (JV) – Johnston County
NC
Selma (West Oak)
NC
Speedway
IN
Steubenville
OH
Tampa
FL
Viney Branch
KY
Youngstown
OH








A-2


 

Exhibit B
SERVICES AND FEES

SERVICES

MPLS shall provide, or cause to be provided, a sufficient number of suitably qualified and experienced personnel as is required to perform the following Services:

1. Management and Operations : All services associated with management of, and operations at, the Terminal Locations, including operating and maintaining the infrastructure necessary for receipt, storage, blending, loading, and shipment via truck, marine vessel, or pipeline of various grades of refined hydrocarbons and corresponding additives; providing project oversight, inventory management, and transaction data monitoring; and ensuring day-to-day operations comply with applicable site safety, security, and environmental regulations.

2. Terminal Services : All services associated with E&I techs, planning coordination, electronic services, mechanical vapor control services, measurements and reliability engineering at or for the Terminal Locations and the associated business, including providing subject matter expertise for electrical service and applications, mechanical vapor control services, meter maintenance and calibration; maintenance of additive systems and equipment, blending equipment, terminal automation systems, and truck loading rack equipment; and providing risk-based decisions for maintenance capital and expense programs.

3. Health, Environment, Safety & Security : All services associated with health, environment, safety and security matters pertaining to the Terminal Locations and the associated business, including providing HES&S subject matter expertise to support operations; leading continual improvement of HES&S plans, programs, and standards; managing regulatory compliance; training and auditing to verify compliance; and managing response plans and capabilities.
 
4. Training : All services necessary or appropriate for the continuous training for all employees associated with the provision of Services hereunder, including setting forth plans, schedules, and learning development expertise; and providing labor and supervision necessary to perform all services in a good workmanlike manner that is consistent with industry practice and complies with Applicable Law.

5. Human resources : All services associated with management of human resources at or for the Terminal Locations and associated business, including consulting with MPLXT management on the development and implementations or human resource strategies; and administering human resource policies, practices and procedures to applicable employees.

6. Product Quality : All services associated with maintaining product quality at the Terminal Locations, including providing subject matter expertise to support operations; leading continual improvement of quality management programs and standards; managing regulatory compliance; training and auditing to verify compliance; and ensuring all products (and product blends) and additization comply with Applicable Law.


B-1


 


7. Optimization and planning : All services associated with optimizing Terminal Locations and planning of future optimization, including rationalizing and analyzing terminal assets and processes for expanding operations and exploring future business opportunities; managing and scheduling downtime and operational maintenance; providing budget analysis and preparation, revenue, expense and capital analysis and coordination, and comparator analysis and forecasting; providing TeamView support, records management, Hauler portal system ownership, and serving as liaison to Information Technology group.

8. Procedures and Standards : All services associated with establishing and maintaining procedures and standards in relation to the business conducted at the Terminal Locations, including oversight of the TT&R Document Portal; and documentation and management of routine business processes, procedures, and standards utilized to operate terminals and equipment on a continuous basis, such as tank gauging, product sampling, taking pipeline receipts and the like.

GENERAL FEES

The Fees for the provision of personnel to perform the Services shall be calculated and invoiced consistent with the following:

1. As of the Effective Date, and on an annual basis consistent with established budget schedules and practices, MPLS shall, in its sole, reasonable discretion, establish allocations for the employees provided hereunder as of the date such allocation is made (the “ Time Allocation ”). For example, on the date the allocations are established for a given year, MPLS determines that certain of employees it provides will spend 80% of their time providing product quality-related services – the Time Allocation for any such employee will be 80% until the allocations are reset the following year, even if the employee ultimately spends more or less than 80% of his or her time actually engaged in the provision of such Services to MPLXT.

2. MPLS shall calculate on a monthly basis the employee-based cost which is the sum of the products the actual salary and wage costs incurred for each employee to be provided by MPLS hereunder for such month multiplied by the Time Allocation applicable to each such employee (the “ Monthly Allocated Salary and Wages ”).

3. With respect to each monthly invoice issued prior to January 1, 2017, and on an annual basis consistent with established budget schedules and practices, MPLS shall calculate the estimated total benefits cost for the applicable calendar year to be incurred for each employee to be provided by MPLS hereunder multiplied by the Time Allocation applicable to each such employee (the “ Annual Allocated Estimated Benefits ”). At the end of each calendar quarter, MPLS may compare the latest projection of benefit costs to be charged for the year to the Annual Allocated Estimated Benefits (the resulting “true-up” of these two amounts, whether positive or negative, being referred to herein as the “ Quarterly Benefits Adjustment ”). At the end of the calendar year, MPLS will calculate a “true-up”, whether positive or negative, of the total Annual Allocated Estimated Benefits plus or minus any Quarterly Benefits Adjustments charged for the year compared to the actual cost of such benefits for the year (the “ Annual Benefits True-Up ”).


B-2


 

Effective January 1, 2017, MPLS, in its sole and reasonable discretion, shall show the actual benefits and accruals for each employee to be provided by MPLS hereunder for such month multiplied by the Time Allocation applicable to each such employee.

4. With respect to each monthly invoice issued prior to January 1, 2017, MPLS, in its sole and reasonable discretion, shall calculate an appropriate allocated bonus accrual, including burden, consistent with its good faith estimate of the allocation of employees provided by MPLS hereunder on a total headcount basis (the “ Allocated Bonus Accrual ”). For the month in which any bonus payment is made to the employees provided by MPLS hereunder, MPLS will calculate a “true-up” of the Allocated Bonus Accrual charged for the previous year compared to the actual cost of bonuses, including burden, paid to such employees (the resulting “true-up” of these two amounts, whether positive or negative, being referred to herein as the “ Allocated Bonus True-Up ”). Effective January 1, 2017, MPLS, in its sole and reasonable discretion, shall show the actual cash bonuses and accrual for each employee to be provided by MPLS hereunder for such month multiplied by the Time Allocation applicable to each such employee.

5. Following the end of each month, MPLS will submit an invoice to MPLXT (the “ Monthly Invoice ”) which shall include the following:

a.
the Monthly Allocated Salary and Wages;
b.
with respect to each monthly invoice issued prior to January 1, 2017, one-twelfth (1/12) of the Annual Allocated Estimated Benefits plus or minus any Quarterly Benefits Adjustment and any Annual Benefits True-Up; Effective January 1, 2017, the actual benefits and accrual.
c.
with respect to each monthly invoice issued prior to January 1, 2017, any Allocated Bonus Accrual and any Allocated Bonus True-Up; Effective January 1, 2017, the actual cash bonuses and accrual.
d.
the MPLS stock-based compensation expense attributed to MPLS for such month; and
e.
effective as of January 1, 2017, a mark-up charge of $14,000.

6. For the avoidance of doubt, the Parties agree that the Fees for the remainder of calendar month of the Effective Date will be calculated in the manner above and will be a pro-rata portion of such amounts based on the number of days remaining in such month from the Effective Date.




B-3





Exhibit C

AUTHORIZED REPRESENTATIVES

As to:
MPLX Terminals LLC
Timothy J. Aydt, President

As to:
Marathon Petroleum Logistics Services LLC
John S. Swearingen, President




C-1




Exhibit 23.1





CONSENT OF INDEPENDENT ACCOUNTANTS

We hereby consent to the incorporation by reference in the Registration Statements on Forms S-3 (No. 333-200621, No. 333-203067 and No. 333-211397) and Form S-8 (No. 333-184707) of MPLX LP of our report dated February 24, 2017, relating to the combined financial statements of Hardin Street Transportation LLC and Woodhaven Cavern LLC, which appears in this Current Report on Form 8-K of MPLX LP.
/s/ PricewaterhouseCoopers LLP

Toledo, Ohio
March 2, 2017





Exhibit 23.2




CONSENT OF INDEPENDENT ACCOUNTANTS

We hereby consent to the incorporation by reference in the Registration Statements on Forms S-3 (No. 333-200621, No. 333-203067 and No. 333-211397) and Form S-8 (No. 333-184707) of MPLX LP of our report dated February 24, 2017, relating to the consolidated financial statements of MPLX Terminals LLC, which appears in this Current Report on Form 8-K of MPLX LP.
/s/ PricewaterhouseCoopers LLP

Toledo, Ohio
March 2, 2017































Hardin Street Transportation LLC
and Woodhaven Cavern LLC


Combined Financial Statements as of
and for the years ended
December 31, 2016 and 2015





HARDIN STREET TRANSPORTATION LLC & WOODHAVEN CAVERN LLC

Table of Contents

 
Page
Independent Auditor's Report
2
Combined Statements of Income
3
Combined Balance Sheets
4
Combined Statements of Cash Flows
5
Combined Statements of Equity
6
Notes to Combined Financial Statements
7-17





1



Report of Independent Auditors

To the Management of Marathon Petroleum Corporation

We have audited the accompanying combined financial statements of Hardin Street Transportation LLC
and Woodhaven Cavern LLC, which comprise the combined balance sheets as of December 31, 2016 and
2015, and the related combined statements of income, of equity and of cash flows for the years then
ended.

Management's Responsibility for the Combined Financial Statements

Management is responsible for the preparation and fair presentation of the combined financial statements
in accordance with accounting principles generally accepted in the United States of America; this includes
the design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of combined financial statements that are free from material misstatement, whether due to
fraud or error.

Auditors’ Responsibility

Our responsibility is to express an opinion on the combined financial statements based on our audits. We
conducted our audits in accordance with auditing standards generally accepted in the United States of
America. Those standards require that we plan and perform the audit to obtain reasonable assurance
about whether the combined financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the combined financial statements. The procedures selected depend on our judgment, including the
assessment of the risks of material misstatement of the combined financial statements, whether due to
fraud or error. In making those risk assessments, we consider internal control relevant to the Company's
preparation and fair presentation of the combined financial statements in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on
the effectiveness of the Company's internal control. Accordingly, we express no such opinion. An audit
also includes evaluating the appropriateness of accounting policies used and the reasonableness of
significant accounting estimates made by management, as well as evaluating the overall presentation of
the combined financial statements. We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.

Opinion

In our opinion, the combined financial statements referred to above present fairly, in all material respects,
the combined financial position of Hardin Street Transportation LLC and Woodhaven Cavern LLC as of
December 31, 2016 and 2015, and the results of their operations and their cash flows for the years then
ended in accordance with accounting principles generally accepted in the United States of America.

/s/ PricewaterhouseCoopers LLP

Toledo, Ohio
February 24, 2017





2


Hardin Street Transportation LLC & Woodhaven Cavern LLC
Combined Statements of Income


(in thousands)
2016
 
2015
Revenues and other income:
 
 
 
Service revenue - related parties
$
118,154

 
$
112,060

Rental income
7

 
3

Rental income - related parties
49,840

 
45,731

Other income
58

 
115

Other income - related parties
6

 
9

Total revenues and other income
168,065

 
157,918

Costs and expenses:
 
 
 
Cost of revenues (excludes items below)
38,740

 
26,045

Purchases - related parties
21,137

 
19,566

Rental cost of sales
3,848

 
6,407

Rental cost of sales - related parties
2,322

 
2,361

Depreciation
16,455

 
14,063

General and administrative expenses
6,447

 
6,457

Other taxes
2,675

 
2,123

Total costs and expenses
91,624

 
77,022

Total income from operations
76,441

 
80,896

Interest and other financial income - related parties
496

 
65

Other financial costs
12

 
10

Income before income taxes
76,925

 
80,951

Provision for income taxes
2

 
6

Net income
$
76,923

 
$
80,945


The accompanying notes are an integral part of these combined financial statements.


3


Hardin Street Transportation LLC & Woodhaven Cavern LLC
Combined Balance Sheets

 
December 31,
(in thousands)
2016
 
2015
Assets
 
 
 
Current assets:
 
 
 
Cash and cash equivalents
$
6

 
$

Receivables, net
1,131

 
2,336

Receivables - related parties
16,852

 
16,259

Loans receivable - related parties
74,732

 
41,344

Materials and supplies inventories
1,193

 
828

Other current assets
4

 
14

Total current assets
93,918

 
60,781

Property, plant and equipment, net
273,116

 
224,822

Goodwill
27,061

 
27,061

Other noncurrent assets
4

 

Total assets
$
394,099

 
$
312,664

Liabilities
 
 
 
Current liabilities:
 
 
 
Accounts payable
$
4,556

 
$
5,255

Accrued liabilities
13,594

 
9,386

Payables - related parties
4,707

 
4,798

Consumer excise taxes payable
284

 
254

Accrued taxes
1,407

 
726

Deferred revenue - related parties
3,819

 
3,466

Environmental remediation liabilities
1,392

 
3,866

Total current liabilities
29,759

 
27,751

Long-term deferred income taxes
5

 
4

Long-term environmental remediation liabilities
2,557

 
917

Total liabilities
32,321

 
28,672

Commitments and contingencies (see Note 11)
 
 
 
Equity
 
 
 
Total equity
361,778

 
283,992

Total liabilities and equity
$
394,099

 
$
312,664


The accompanying notes are an integral part of these combined financial statements.

4


Hardin Street Transportation LLC & Woodhaven Cavern LLC
Combined Statements of Cash Flows

(in thousands)
2016
 
2015
Increase (decrease) in cash and cash equivalents
 
 
 
Operating activities:
 
 
 
Net income
$
76,923

 
$
80,945

Adjustments to reconcile net income to net cash provided by operating activities:
 
 
 
Depreciation
16,455

 
14,063

Deferred income tax
1

 
4

Changes in:
 
 
 
Current receivables
1,205

 
443

Receivables from / payables to related parties
(684
)
 
(12,065
)
Materials and supplies inventories
(57
)
 
109

Current accounts payable and accrued liabilities
1,818

 
1,411

Deferred revenue - related parties
353

 
3,466

Environmental remediation liabilities
(834
)
 
(1,069
)
All other, net
(992
)
 
(89
)
Net cash provided by operating activities
94,188

 
87,218

Investing activities:
 
 
 
Additions to property, plant and equipment
(60,794
)
 
(46,812
)
Investments - loans receivable from a related party
(33,388
)
 
(41,344
)
Net cash used in investing activities
(94,182
)
 
(88,156
)
Financing activities:
 
 
 
Net contributions from MPC

 
938

Net cash provided by financing activities

 
938

Net increase in cash and cash equivalents
6

 

Cash and cash equivalents at beginning of period

 

Cash and cash equivalents at end of period
$
6

 
$



The accompanying notes are an integral part of these combined financial statements.

5


Hardin Street Transportation LLC & Woodhaven Cavern LLC
Combined Statements of Equity

(in thousands)
Total Equity
Balance at January 1, 2015
$
201,744

Net income
80,945

Contributions from MPC
1,303

Balance at December 31, 2015
$
283,992

Net income
76,923

Contributions from MPC
863

Balance at December 31, 2016
$
361,778


The accompanying notes are an integral part of these combined financial statements.


6


Notes to Combined Financial Statements

1.
Description of the Businesses and Basis of Presentation


Description of the Businesses - Hardin Street Transportation LLC (“HST”) and Woodhaven Cavern LLC (“WHC”) are indirect wholly owned subsidiaries of Marathon Petroleum Corporation (“MPC”). HST owns and operates various private crude oil and refined product pipeline systems and associated storage tanks as well as several condensate truck loading and unloading facilities located in the Midwest and Gulf Coast regions of the United States. These pipeline systems consist of 176 miles of crude oil pipelines and 548 miles of refined products pipelines. WHC owns and operates a butane and propane storage cavern complex located in Michigan with approximately 1.75 million barrels of natural gas liquids storage capacity. On January 1, 2015, MPC contributed assets to newly created and wholly owned entities, to form HST and WHC, and established transportation and storage services agreements related to the services provided by these entities to MPC. Prior to January 1, 2015, the assets were part of MPC. See Note 4 for further information.

Unless the content otherwise requires, the terms “the Businesses,” “we,” or “our” refers to the combined companies of HST and WHC.

Basis of Presentation - The accompanying financial statements of the Businesses were combined as they are entities under common management. The combined financial statements include the operations of the pipeline systems and natural gas liquids storage services and were prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and Article 3 of Regulation S-X, “ General Instructions as to Financial Statements. ” The combined financial statements include certain general and administrative expenses of MPC that were incurred on behalf of the Businesses. Additionally, the combined financial statements present on a gross basis, in revenues and cost of revenues, specified operational costs that are directly reimbursed by MPC under the terms of the related transportation services agreement (See Note 4).

In the opinion of management, the accompanying combined financial statements reflect all adjustments that are necessary to fairly present the financial position of the Businesses as of December 31, 2016 and 2015 and the results of operations and cash flows of the Businesses for the years ended December 31, 2016 and 2015.

Management has evaluated subsequent events that would require an adjustment to the combined financial statements or disclosure in the notes to the combined financial statements through February 24, 2017, the date of issuance of the combined financial statements.

2.
Summary of Principal Accounting Policies


Use of estimates - The preparation of combined financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities as of the date of the combined financial statements and the reported amounts of revenues and expenses during the respective reporting periods. Management believes the assumptions and allocations underlying the combined financial statements are reasonable. However, the combined financial statements do not include all of the actual expenses that would have been incurred had the Businesses been stand-alone entities and thus do not reflect the Businesses’ results of operations, financial positions and cash flows had they been stand-alone entities during the periods presented.

The combined financial statements include an allocation of general and administrative expenses that have been incurred by MPC on the Businesses’ behalf. The authoritative guidance to allocate such costs is set forth in Staff Accounting Bulletin (“SAB”) Topic 1-B “ Allocations of Expenses and Related Disclosures in Financial Statements of Subsidiaries, Divisions or Lessor Business Components of Another Entity.”

7


Revenue recognition - Revenues are recognized for crude oil, refined product and natural gas liquids storage operations based on a fixed fee per committed volume of products stored, measured in barrels. Revenues for storage operations are typically recognized ratably over the term of the contract, regardless of the actual storage capacity utilized by our customers. We do not take title to the petroleum products we transport and store, and therefore do not take on significant direct commodity price risk.

Revenues are recognized for crude oil and refined product pipeline transportation based upon the delivery of actual volumes transported at a fixed contractual fee measured in barrels and includes any overage/shortage due to the inherent limitations of the transportation and measurement processes. Shortages are considered costs incurred in the process of moving products and their subsequent reimbursements are recorded within cost of revenues/related party purchases at delivery.

Under our transportation services agreements, if MPC fails to transport its minimum throughput volumes during any quarter, then MPC will pay us a deficiency payment equal to the volume of the deficiency multiplied by the contractual rate then in effect. MPC may then apply the amount of any such deficiency payments as a credit for volumes transported on the applicable pipeline system in excess of its minimum volume commitment during the following four quarters. The deficiency payments are initially recognized as deferred revenue - related parties. Revenue for the deficiency payments is generally recognized at the earlier of when credits are used for volumes transported in excess of minimum volume commitments, when it becomes impossible to physically transport volumes necessary to utilize the credits, or upon their expiration.

Cash and cash equivalents - MPC manages HST's and WHC's cash balances, as such there are no significant cash account balances attributable to the Businesses.

Receivables - Accounts receivable are recorded at the invoiced amount and do not bear interest. Amounts collected are included in net cash provided by operating activities in the statement of cash flows. The allowance for doubtful accounts is the best estimate of the amount of probable credit losses in customer accounts receivable and is based on historical write-off experience. HST and WHC review the allowance quarterly and past due balances over 180 days are reviewed individually for collectability. Account balances for these customer receivables are generally charged directly to bad debt expense when it becomes probable the receivable will not be collected. At December 31, 2016 and 2015, the allowance for doubtful accounts balance was zero. The Businesses do not have any off balance sheet credit exposure related to its customers.

Materials and supplies inventories - Inventories consist of materials and supplies. Cost is determined primarily under the weighted average method.

Imbalances - Our pipelines and storage operations experience volume gains and losses related to our customer’s inventories due to pressure and temperature changes, evaporation and variances in meter readings and other measurement methods. Imbalances are recorded as accounts receivable and are settled by cash payments monthly for products and quarterly for crude.

Property, plant and equipment - Property, plant and equipment is stated at cost and depreciated on a straight-line basis for groups of property having similar economic characteristics over the estimated useful lives. Management reviews the assets of the Businesses for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. If the sum of the expected undiscounted future cash flows from the use of the asset and its eventual disposition is less than the carrying amount of the asset, an impairment loss is recognized based on the fair value of the asset.

When items of property, plant and equipment are sold or otherwise disposed of, any gains or losses are reported in the statement of income. Gains on the disposal of property, plant and equipment are recognized when earned,

8


generally at the time of closing. If a loss on disposal is expected, such losses are recognized when the assets are classified as held for sale.

Goodwill - Goodwill represents the excess of the purchase price over the estimated fair value of the net assets acquired in the acquisition of a business. Goodwill was allocated from MPC to the Businesses based on the relative fair market value of the Businesses’ net property, plant and equipment to the fair market value of MPC’s Transportation Division reporting unit’s net property, plant and equipment as of June 30, 2005, the date on which MPC completed the transaction that resulted in the goodwill. Such goodwill is not amortized, but rather is tested for impairment annually and when events or changes in circumstances indicate that the fair value of goodwill has been reduced below carrying value. The fair value is determined and compared to the book value. If the fair value is less than the book value, including goodwill, then the recorded goodwill is impaired to its implied fair value with a charge to net income.
 
Environmental costs - Environmental expenditures are capitalized if the costs mitigate or prevent future contamination or if the costs improve environmental safety or efficiency of the existing assets. HST and WHC recognize remediation costs and penalties when the responsibility to remediate is probable and the amount of associated costs can be reasonably estimated. The timing of remediation accruals coincides with completion of a feasibility study or the commitment to a formal plan of action.

Asset retirement obligations - The fair value of asset retirement obligations is recognized in the period the obligations are incurred if a reasonable estimate of fair value can be made.

The assets retirement obligations principally include removal or dismantlement requirements associated with the closure of certain pipeline and associated storage assets. The Businesses practice is to keep assets in good operating condition through routine repair and maintenance of component parts in the ordinary course of business and by continuing to make improvements based on technological advances. As a result, management believes that these assets have no expected settlement date for purposes of estimating asset retirement obligations since the dates or ranges of dates upon which we would retire these assets cannot be reasonably estimated at this time. Such obligations will be recognized in the period sufficient information becomes available to estimate range of potential settlement dates. At December 31, 2016 and 2015, the asset retirement obligation balance was zero.

Income taxes - The Businesses’ taxable income has historically been included in the consolidated U.S. federal income tax returns of MPC and also in a number of local income tax returns, which are filed as consolidated and combined returns. HST and WHC are not taxable entities for U.S. federal income tax purposes or for states that impose an income tax. The Businesses’ income tax provisions result from certain local jurisdictions which subject each legal entity doing business in the jurisdictions to an income tax.

Deferred tax liabilities are recognized based on temporary differences between the financial statement carrying amounts of assets and liabilities and their tax bases as reported in MPC’s filings with the respective taxing authorities.

Equity - The equity balance reflects MPC’s initial investment in the Businesses adjusted for the operating results of the Businesses and various transactions between the Businesses and MPC. Transactions affecting the equity balance include capitalization of interest incurred by MPC and allocated to the Businesses.

Concentrations of risk - We are exposed to related party risk as substantially all of our revenues and other income are derived from transactions with MPC. Sales to related parties for the years ended December 31, 2016 and 2015, were 99.9%, respectively, of total revenues and other income. Furthermore, a subsidiary of MPC operates our assets under various agreements. For the years ended December 31, 2016 and 2015, purchases -

9


related parties and rental cost of sales - related parties were 25.6% and 28.5%, respectively, of total costs and expenses.

3.
Accounting Standards


Recently Adopted

In August 2014, the FASB issued an accounting standard update requiring management to assess an entity’s ability to continue as a going concern and to provide related footnote disclosures in certain circumstances. Management is required to assess if there is substantial doubt about an entity’s ability to continue as a going concern within one year after the issuance of the financial statements. Disclosures are required if conditions give rise to substantial doubt and the type of disclosure is determined based on whether management’s plans will be able to alleviate the substantial doubt. The change was effective for the first fiscal period ending after December 15, 2016, and for fiscal periods and interim periods thereafter. The adoption of this accounting standard update in the fourth quarter of 2016 did not have a material impact on the Businesses' disclosures.

Not Yet Adopted

In January 2017, the FASB issued an accounting standard update which simplifies the subsequent measurement of goodwill by eliminating Step 2 from the goodwill impairment test. Under the new guidance, the recognition of an impairment charge is calculated based on the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. The guidance should be applied on a prospective basis, and is effective for annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The Businesses are in the process of determining the impact of the accounting standard update on the combined financial statements.

In February 2016, the FASB issued an accounting standard update requiring lessees to record virtually all leases on their balance sheets. The accounting standard update also requires expanded disclosures to help financial statement users better understand the recorded leases. For lessors, this amended guidance modifies the classification criteria and the accounting for sales-type and direct financing leases. The change will be effective on a modified retrospective basis for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years, with early adoption permitted. The Businesses are currently evaluating the impact of this standard but does not plan to early adopt.

In May 2014, the FASB issued an initial accounting standard update for revenue recognition for contracts with customers. The guidance in the accounting standard update states that revenue is recognized when a customer obtains control of a good or service. Recognition of the revenue will involve a multiple step approach and additional disclosures will be required to provide adequate information to understand the reported revenues and revenues expected to be recognized. The change will be effective on a retrospective or modified retrospective basis for fiscal years beginning after December 15, 2017, and interim periods within those years, with early adoption permitted no earlier than January 1, 2017. The Businesses are currently evaluating the impact of this standard.

4. Related Party Agreements and Transactions


Our only related party is MPC, who refines, markets and transports crude oil and petroleum products, primarily in the Midwest, Gulf Coast, East Coast and Southeast regions of the United States. Our business with MPC is

10


governed by the agreements outlined below. All services are on the same terms that would be available to an unrelated third party and are based on rates pursuant to agreements between the parties. Management expects that MPC will continue to utilize these services for the foreseeable future due to the contractual nature of the agreements as outlined below.

The related party nature of certain transactions has such a pervasive impact on the financial statements, such that the reported results of operations and financial position may be materially different from what would have been reported in the absence of the related party relationship.

Commercial Agreements

On January 1, 2015, HST entered into a long-term, fee-based transportation services agreement with MPC with an initial term of ten years. Under the agreement, we provide pipeline transportation of crude oil and refined products, as well as related services. MPC pays HST monthly for such services based on contractual rates relating to MPC crude oil and refined product deliveries as well as any viscosity surcharges, loading, handling, transfers or other related charges.

Under the transportation services agreement, if MPC fails to transport its quarterly minimum throughput volumes, MPC will pay a deficiency payment equal to the volume of the deficiency multiplied by the rate then in effect. If the minimum capacity of the pipeline falls below the level of MPC’s commitment at any time, depending on the cause of the reduction in capacity, MPC’s commitment may be reduced or MPC will receive a credit for its minimum volume commitment for that period. Additionally, MPC is responsible for any other miscellaneous charges previously noted with respect to volumes we transport.

On December 1, 2016, HST's transportation services agreement with MPC was amended to remove certain pipeline systems used in the transportation of crude oil and refined products. In connection with the amendment, HST recognized $2,665 thousand of deferred revenue on the Combined Statement of Income related to accumulated credits associated with the systems removed from the agreement thatMPC can no longer utilize.

On January 1, 2015, WHC entered into a long-term, fee based storage and services agreement with MPC related to storage at its butane and propane caverns with an initial term of ten years. Under this storage and services agreement, WHC receives a monthly fee from MPC based on a contractual rate per barrel multiplied by the total commitment volume respective to each storage cavern. The contractual rate per barrel includes utilization of the caverns and related services. The agreement is subject to an annual review and adjustment for inflation.

On January 1, 2015, HST entered into various three-year term storage services agreements with MPC. Under the storage services agreements, HST receives a monthly fee from MPC based on a contractual rate per barrel multiplied by the total commitment volume respective to each storage tank. The contractual rate per barrel is subject to an annual review and adjustment for inflation. HST is not obligated to measure volume gains and losses per the terms of these agreements.

Under the storage services agreements with both HST and WHC, we are obligated to make available to MPC on a firm basis the available storage capacity at our tank farms and butane and propane caverns, and MPC pays us a per-barrel fee for such storage capacity, regardless of whether MPC fully utilizes the available capacity.

Management Service Agreements

On January 1, 2015, HST and WHC entered into management services agreement with MPC under which MPC provides operational, financial, legal, accounting, human resources, information technology and other general and administrative services ancillary to our business. We reimburse MPC for all disbursements made by MPC

11


on behalf of HST and WHC at cost. We also reimburse MPC for any taxes paid in connection with providing these services.

Operating and Service Agreements

On January 1, 2015, HST entered into an operating and services agreement with Marathon Pipeline (“MPL”), a subsidiary of MPC, under which MPL provides the personnel and support services for the routine operations of our various pipeline systems, including repair and maintenance of such systems. Under this operating agreement, HST remits an annual fee to MPL in the amount of $12,910 thousand and $12,177 thousand for the year ended December 31, 2016 and 2015, respectively, subject to an annual adjustment for inflation, and reimburses MPL for specific costs associated with their operation.

On January 1, 2015, WHC entered into a cavern operating and services agreement with MPL under which MPL provides services necessary for the routine operations and maintenance of the butane and propane storage caverns, as well as any necessary modification and repair of the caverns. Under this operating and services agreement, WHC remits an annual fee to MPL in the amount of $816 thousand and $800 thousand for the year ended December 31, 2016 and 2015, respectively, subject to an annual adjustment for inflation, and reimburses MPL for specific costs associated with their operation.

Cash Management Agreement

On January 1, 2015, an agreement between a wholly owned subsidiary of MPC and the Businesses was executed under which MPC provides cash management services to the Businesses. On a daily basis, we send any cash to MPC as an advance or in case of any shortages we request a draw. Our net cash balance with MPC on the last day of each quarter is classified as loans receivable from related party or as loans payable to related party. The loan balance remains constant until the last day of the next quarter. Loans receivable earns interest at the three-month London Interbank Offered Rate (“LIBOR”) plus 10 basis points. Loans payable bears interest at the three-month LIBOR plus 50 basis points. At the end of each quarter, the net balance of the daily advances and draws and the accrued interest is rolled into the loan balance for the subsequent quarter.

Related Party Transactions

Service revenue - related parties and rental income - related parties were as follows:

(in thousands)
2016
 
2015
MPC
$
167,994

 
$
157,791


Service revenue and rental income to MPC consist primarily of transportation and storage services provided by the Businesses. Related party sales also include reimbursed expenses associated with the transportation and storage of MPC crude oil and refined products.

Other income from related parties was as follows:

(in thousands)
2016
 
2015
MPC
$
6

 
$
9



12


Other income from related parties mainly consists of various transportation and storage related services provided by the Businesses, including: tank changes and transfers, facility and product inspections and general maintenance.

Purchases and rental cost of sales from related parties were as follows:

(in thousands)
2016
 
2015
MPC
$
23,459

 
$
21,927


Purchases and rental cost of sales from MPC consist of salaries, wages and other costs associated with employee services provided by MPC for our operations. Our allocable share of MPC’s employee benefit expenses is included in the total above and was $6,949 thousand and $5,420 thousand for the years ended December 31, 2016 and 2015, respectively.

General and administrative expenses from related parties were as follows:

(in thousands)
2016
 
2015
MPC
$
6,401

 
$
6,401


The Businesses’ general and administrative expenses from MPC include expenses related to employee service costs. MPC provides certain services to the Businesses including financial, legal, accounting, human resources, information technology and other administrative services. Charges for these services are allocated based on usage, headcount or capital employed; all of these allocation methods are believed to be reasonable by management.

Receivables from related parties were as follows:
(in thousands)
2016
 
2015
MPC
$
16,852

 
$
16,259


Payables to related parties were as follows:
(in thousands)
2016
 
2015
MPC
$
4,707

 
$
4,798


Under our transportation services agreement, if MPC fails to transport its minimum throughput volumes during any quarter, then MPC will pay us a deficiency payment equal to the volume of the deficiency multiplied by the rate then in effect. MPC may then apply the amount of any such deficiency payments as a credit for volumes transported on the applicable pipeline system in excess of its minimum volume commitment during the following four quarters under the terms of the transportation services agreement.

During the years ended December 31, 2016 and 2015, respectively, MPC did not transport its minimum committed volumes on certain pipeline systems. The resulting deficiencies were all related to transportation services agreements under which the resulting credits expire after four calendar quarters. The deferred revenue-related parties associated with the minimum volume deficiencies was as follows:


13


(in thousands)
2016
 
2015
Minimum volume deficiencies - MPC
$
3,819

 
$
3,466


5. Income Taxes

We are not taxable entities for United States federal or state income tax purposes. Taxes on our net income generally are borne by MPC through the allocation of our taxable income. Our income tax provision results from business activity in certain local jurisdictions.

Our income tax expense was $2 thousand and $6 thousand for 2016 and 2015, respectively. Our effective tax rate was less than 0.01 percent for both 2016 and 2015.

There were no unrecognized tax benefits for 2016 or 2015.

Any interest and penalties to income taxes are recorded as a part of the provision for income taxes. No interest or penalties related to income taxes were recorded for 2016 or 2015.

At December 31, 2016 and 2015, we had net deferred tax liabilities of $5 thousand and $4 thousand, respectively, which were primarily attributable to fixed assets.

6.
Property, Plant and Equipment


Major classes of property, plant and equipment consist of the following:

 
Estimated
 
December 31,
(in thousands)
Useful Lives
 
2016
 
2015
Land
 
 
$
4,560

 
$
4,560

Pipelines and related assets
15 - 42 years
 
315,497

 
261,718

Tanks and delivery facilities
15 - 31 years
 
80,057

 
41,677

Other
15 - 20 years
 
1,409

 
1,059

Assets under construction
 
 
6,823

 
36,545

Total
 
 
408,346

 
345,559

Less accumulated depreciation
 
 
135,230

 
120,737

Property, plant and equipment, net
 
 
$
273,116

 
$
224,822


7. Goodwill


Goodwill is tested for impairment on an annual basis and when events or changes in circumstances indicate the fair value of our reporting unit has been reduced below carrying value. We have performed our annual impairment tests as of November 30, 2016 and 2015, and no impairment in the carrying value of goodwill has been identified during the periods presented.


14


8.
Fair Value Measurements


Fair values - recurring

There were no assets accounted for at fair value on a recurring basis at December 31, 2016 and 2015.

Fair values - reported

Our primary financial instruments are trade receivables and payables as well as a loan receivable. We believe the carrying values of our current assets and liabilities approximate fair value. Our fair value assessment incorporates a variety of considerations, including (1) the short-term duration of the instruments, (2) MPC’s investment-grade credit rating and (3) our historical incurrence of and expected future insignificance of bad debt expense, which includes an evaluation of counterparty credit risk.

9. Supplemental Cash Flow Information

(in thousands)
2016
 
2015
Net cash provided by operating activities included:
 
 
 
   Net income taxes paid to taxing authorities
$
1

 
$
3

Non-cash financing activities:
 
 
 
   Capitalized interest
$
863

 
$
352


The Combined Statements of Cash Flows exclude the changes to the Combined Balance Sheets that did not affect cash. The following is the change of additions to property, plant and equipment related to capital accruals:
(in thousands)
2016
 
2015
Increase in capital accruals
$
2,402

 
$
2,041


10. Leases


HST leases land from LOCAP LLC, an equity affiliate of MPC, at St. James terminal related to the operations of its St. James to Garyville crude oil pipeline. Future minimum commitments as of December 31, 2016, for operating lease obligations having initial or remaining non-cancelable lease terms in excess of one year are as follows:

(in thousands)
 
2017
$
6

2018
4

2019
4

2020
4

2021
4

Thereafter
72

Total minimum lease payments
$
94


15


Based on the terms of our fee-based transportation services and storage and services agreements with MPC, the Businesses are considered to be a lessor of its pipelines and storage facilities in accordance with GAAP. Per the agreements, the following is a schedule of minimum future payments the Businesses are to receive on non-cancelable operating leases by year:
(in thousands)
 
2017
$
37,951

2018
29,904

2019
29,904

2020
29,904

2021
29,904

Thereafter
89,713

Total minimum future payments
$
247,280


The following schedule summarizes the Businesses' investment in assets held for operating lease by major classes as of December 31, 2016:

(in thousands)
 
Pipelines and related assets
$
315,497

Tanks and delivery facilities
80,057

Total
395,554

Less accumulated depreciation
133,281

Property, plant and equipment, net
$
262,273


11. Commitments and Contingencies

We are the subject of, or a party to, a number of pending or threatened legal actions, contingencies and commitments involving a variety of matters, including laws and regulations relating to the environment. For matters for which we have not recorded an accrued liability, we are unable to estimate a range of possible losses for the reasons discussed in more detail below. However, the ultimate resolution of some of these contingencies could, individually or in the aggregate, be material.

Environmental matters - We are subject to federal, state and local laws and regulations relating to the environment. These laws generally provide for control of pollutants released into the environment and require responsible parties to undertake remediation of hazardous waste disposal sites. Penalties may be imposed for non-compliance.

On April 13, 2011, a release occurred at the Wolverine Pipeline’s Stockbridge, Michigan facility. When it was determined that the release was related to a storage tank owned by MPC, MPC assumed response activities. The release volume has been estimated at 3,000 barrels and appropriate regulatory notifications were made. At December 31, 2016 and 2015, accrued liabilities for remediation totaled $3,949 thousand and $4,783 thousand, respectively. However, it is not presently possible to estimate the ultimate amount of all remediation costs that might be incurred or the penalties, if any that may be imposed.


16


Legal proceedings - We are involved in lawsuits and other proceedings arising in the ordinary course of business. While the ultimate outcome and impact cannot be predicted with certainty, we believe the resolution of these lawsuits and proceedings will not have a material adverse effect on the Businesses’ financial position, results of operations, or cash flows.

12. Subsequent Event

On January 1, 2017, we entered into an agreement to transfer certain pipeline assets to MPC in a non-cash distribution transaction. Due to the common control relationship between us and MPC, the transaction was accounted for as an equity transaction using the carrying value of the fixed assets and allocated goodwill of $8,066 thousand and $1,881 thousand, respectively, with no gain or loss recognized.

17
























MPLX Terminals LLC


Consolidated Financial Statements as of December 31, 2016
and for the nine months ended December 31, 2016




MPLX TERMINALS LLC

Table of Contents

 
Page
Independent Auditor's Report
2
Consolidated Statement of Income
3
Consolidated Balance Sheet
4
Consolidated Statement of Cash Flows
5
Consolidated Statement of Equity
6
Notes to Consolidated Financial Statements
7-16





1




Report of Independent Auditors

To the Management of Marathon Petroleum Corporation

We have audited the accompanying consolidated financial statements of MPLX Terminals LLC, which
comprise the consolidated balance sheet as of December 31, 2016, and the related consolidated statements
of income, of equity and of cash flows for the period from April 1, 2016 to December 31, 2016.

Management's Responsibility for the Consolidated Financial Statements

Management is responsible for the preparation and fair presentation of the consolidated financial
statements in accordance with accounting principles generally accepted in the United States of America;
this includes the design, implementation, and maintenance of internal control relevant to the preparation
and fair presentation of consolidated financial statements that are free from material misstatement,
whether due to fraud or error.

Auditors’ Responsibility

Our responsibility is to express an opinion on the consolidated financial statements based on our audits.
We conducted our audits in accordance with auditing standards generally accepted in the United States of
America. Those standards require that we plan and perform the audit to obtain reasonable assurance
about whether the consolidated financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the consolidated financial statements. The procedures selected depend on our judgment, including the
assessment of the risks of material misstatement of the consolidated financial statements, whether due to
fraud or error. In making those risk assessments, we consider internal control relevant to the Company's
preparation and fair presentation of the consolidated financial statements in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on
the effectiveness of the Company's internal control. Accordingly, we express no such opinion. An audit
also includes evaluating the appropriateness of accounting policies used and the reasonableness of
significant accounting estimates made by management, as well as evaluating the overall presentation of
the consolidated financial statements. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our audit opinion.

Opinion

In our opinion, the consolidated financial statements referred to above present fairly, in all material
respects, the consolidated financial position of MPLX Terminals LLC as of December 31, 2016, and the
results of their operations and their cash flows for the period from April 1, 2016 to December 31, 2016 in
accordance with accounting principles generally accepted in the United States of America.

/s/ PricewaterhouseCoopers LLP

Toledo, Ohio
February 24, 2017

2


MPLX Terminals LLC
Consolidated Statement of Income


(in thousands)
Nine Months Ended
December 31, 2016
Revenues and other income:
 
Service revenue - related parties
$
219,649

Rental income
348

Rental income - related parties
77,507

Loss from equity method investments
(95
)
Net gain on disposal of assets
22

Other income
10

Total revenues and other income
297,441

Costs and expenses:
 
Cost of revenues (excludes items below)
62,955

Purchases - related parties
68,498

Depreciation
29,484

General and administrative expenses
27,428

Other taxes
3,957

Total costs and expenses
192,322

Total income from operations
105,119

Net interest expense - related parties
704

Net interest and other financial costs
12

Income before income taxes
104,403

Provision for income taxes
340

Net income
$
104,063


The accompanying notes are an integral part of these consolidated financial statements.


3


MPLX Terminals LLC
Consolidated Balance Sheet

(in thousands)
December 31, 2016
Assets
 
Current assets:
 
Cash and cash equivalents
$
23

Receivables, net
405

Receivables - related parties
33,396

Loans receivable from related parties
4,766

Other current assets
324

Total current assets
38,914

Equity method investments
4,443

Property, plant and equipment, net
413,008

Goodwill
20,600

Long-term receivables - related parties
6,902

Other noncurrent assets
380

Total assets
$
484,247

Liabilities
 
Current liabilities:
 
Accounts payable
$
12,076

Accrued liabilities
5,279

Payables - related parties
11,936

Deferred revenue - related parties
98

Consumer excise taxes payable
617

Accrued taxes
2,422

Environmental remediation liabilities
1,866

Total current liabilities
34,294

Long-term deferred revenue - related parties
4,416

Long-term deferred income taxes
675

Long-term environmental remediation liabilities
5,606

Total liabilities
44,991

Commitments and contingencies (see Note 12)
 
Equity
 
Total equity
439,256

Total liabilities and equity
$
484,247


The accompanying notes are an integral part of these consolidated financial statements.

4


MPLX Terminals LLC
Consolidated Statement of Cash Flows

(in thousands)
Nine Months Ended
December 31, 2016
Increase (decrease) in cash and cash equivalents
 
Operating activities:
 
Net income
$
104,063

Adjustments to reconcile net income to net cash provided by operating activities:
 
Depreciation
29,484

Deferred income taxes
40

Net gain on disposal of assets
(22
)
Loss from equity method investments
95

Changes in:
 
Current receivables
(399
)
Receivables from / payables to related parties
(30,964
)
Current accounts payable and accrued liabilities
2,507

Environmental remediation liabilities
(759
)
Deferred revenue - related parties
4,514

All other, net
(93
)
Net cash provided by operating activities
108,466

Investing activities:
 
Additions to property, plant and equipment
(47,785
)
Disposal of assets
38

Investments - loans receivable from related parties
(60,675
)
Other
(21
)
Net cash used in investing activities
(108,443
)
Net increase in cash and cash equivalents
23

Cash and cash equivalents at beginning of period

Cash and cash equivalents at end of period
$
23



The accompanying notes are an integral part of these consolidated financial statements.

5


MPLX Terminals LLC
Consolidated Statement of Equity

(in thousands)
Total Equity
Balance at April 1, 2016
$
334,506

Net income
104,063

Contributions from MPC
687

Balance at December 31, 2016
$
439,256


The accompanying notes are an integral part of these consolidated financial statements.


6


Notes to Consolidated Financial Statements

1.
Description of the Company and Basis of Presentation


Description of the Company - MPLX Terminals LLC ("MPLXT") and Blanchard Terminals Company LLC ("BTCO") are indirect wholly owned subsidiaries of Marathon Petroleum Corporation ("MPC"). The Company owns and operates terminal and marine facilities for the receipt, storage, blending, additization, handling and redelivery of refined petroleum products. The Company owns and operates 59 terminals. Additionally, the Company operates one leased terminal and has partial ownership interest in two for a combined total shell capacity of approximately 23.6 million barrels. The terminal facilities are located primarily in the Midwest, Gulf Coast and Southeast regions of the United States. On April 1, 2016, MPC contributed assets to newly created and wholly owned entities, to form MPLXT and BTCO, and entered into a terminal services agreement related to the services provided by these entities to MPC. Prior to April 1, 2016, the assets were part of MPC and although a minimal amount of revenue was recorded for services provided by certain of these terminals to third party customers, it was concluded the assets would constitute a business only from and after the contribution date of April 1, 2016. See Note 5 for further information.

Unless the content otherwise requires, the terms "the Company," "we," or "our" refers to the consolidated businesses of MPLXT and its fully owned subsidiary BTCO.

Basis of Presentation - The accompanying financial statements of the Company were consolidated as BTCO is a wholly-owned and controlled subsidiary of MPLXT. Intercompany investments, accounts and transactions have been eliminated. The consolidated financial statements include the operations of the terminalling and storage business, specifically refined petroleum product terminal storage and loading/unloading services, and were prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and Article 3 of Regulation S-X, “ General Instructions as to Financial Statements. ” The consolidated financial statements include certain general and administrative expenses of MPC that were incurred on behalf of the Company. Additionally, the consolidated financial statements present on a gross basis, in revenues and cost of revenues, specified operational costs that are directly reimbursed by MPC under the terms of the related transportation services agreement (See Note 5).

In the opinion of management, the accompanying consolidated financial statements reflect all adjustments that are necessary to fairly present the financial position of the Company as of December 31, 2016 and the results of operations and cash flows of the Company for the nine months ended December 31, 2016.

Management has evaluated subsequent events that would require an adjustment to the consolidated financial statements or disclosure in the notes to the combined financial statements through February 24, 2017, the date of issuance of the consolidated financial statements.



7


2.
Summary of Principal Accounting Policies


Use of estimates - The preparation of consolidated financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities as of the date of the consolidated financial statements and the reported amounts of revenues and expenses during the respective reporting periods. Management believes the assumptions and allocations underlying the consolidated financial statements are reasonable. However, the consolidated financial statements do not include all of the actual expenses that would have been incurred had the Company been a stand-alone entity and thus does not reflect the Company's results of operations, financial positions and cash flows had they been a stand-alone entity during the periods presented.

The consolidated financial statements include an allocation of general and administrative expenses that have been incurred by MPC on the Company's behalf. The authoritative guidance to allocate such costs is set forth in Staff Accounting Bulletin (“SAB”) Topic 1-B “ Allocations of Expenses and Related Disclosures in Financial Statements of Subsidiaries, Divisions or Lessor Business Components of Another Entity.”

Revenue recognition - Revenues are recognized for refined petroleum product storage and related services as performed based on contractual fees. We do not take title to the refined petroleum products, and therefore do not take on significant direct commodity price risk.

Revenues are recognized for refined petroleum product throughput based upon the receipt of actual volumes at a fixed contractual fee measured in gallons and includes any overage/shortage due to the inherent limitations of the transportation and measurement processes.

Under our terminal services agreement, if MPC fails to meet its minimum volume commitment during any quarter, then MPC will pay us a deficiency payment equal to the volume of the deficiency multiplied by the contractual fee then in effect. Revenue for the deficiency payments is recognized at the end of each quarter that MPC does not meet its minimum volume commitment. Contingent revenue is recognized for volume throughput above MPC's minimum volume commitment.

Cash and cash equivalents - MPC manages the Company's cash balances, as such there is no significant cash account balance attributable to the Company.
 
Receivables - Accounts receivables are recorded at the invoiced amount and do not bear interest. Amounts collected are included in net cash provided by operating activities in the statement of cash flows. The allowance for doubtful accounts is the best estimate of the amount of probable credit losses in customer accounts receivable and is based on historical write-off experience. The Company reviews the allowance quarterly and past due balances over 180 days are reviewed individually for collectability. Account balances for these customer receivables are generally charged directly to bad debt expense when it becomes probable the receivable will not be collected. At December 31, 2016 the allowance for doubtful accounts balance was zero. The Company does not have any off balance sheet credit exposure related to its customers.

Property, plant and equipment - Property, plant and equipment is stated at cost and depreciated on a straight-line basis for groups of property having similar economic characteristics over the estimated useful lives. Management reviews the assets of the Company for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. If the sum of the expected undiscounted future cash flows from the use of the asset and its eventual disposition is less than the carrying amount of the asset, an impairment loss is recognized based on the fair value of the asset.


8


When items of property, plant and equipment are sold or otherwise disposed of, any gains or losses are reported in the statement of income. Gains on the disposal of property, plant and equipment are recognized when earned, generally at the time of closing. If a loss on disposal is expected, such losses are recognized when the assets are classified as held for sale.
 
Goodwill - Goodwill represents the excess of the purchase price over the estimated fair value of the net assets acquired in the acquisition of a business. Goodwill was allocated from MPC to the Company based on the relative fair market value of the Company's net property, plant and equipment to the fair market value of MPC’s Refining and Marketing reporting unit’s net property, plant and equipment as of June 30, 2005, the date on which MPC completed the transaction that resulted in the goodwill. Such goodwill is not amortized, but rather is tested for impairment annually and when events or changes in circumstances indicate that the fair value of goodwill has been reduced below carrying value. The fair value is determined and compared to the book value. If the fair value is less than the book value, including goodwill, then the recorded goodwill is impaired to its implied fair value with a charge to net income.
 
Environmental costs - Environmental expenditures are capitalized if the costs mitigate or prevent future contamination or if the costs improve environmental safety or efficiency of the existing assets. The Company recognizes remediation costs and penalties when the responsibility to remediate is probable and the amount of associated costs can be reasonably estimated. The timing of remediation accruals coincides with completion of a feasibility study or the commitment to a formal plan of action.

Asset retirement obligations - The fair value of asset retirement obligations is recognized in the period the obligations are incurred if a reasonable estimate of fair value can be made.

The assets retirement obligations principally include removal or dismantlement requirements associated with the closure of certain pipeline and associated storage assets. The Company's practice is to keep assets in good operating condition through routine repair and maintenance of component parts in the ordinary course of business and by continuing to make improvements based on technological advances. As a result, management believes that these assets have no expected settlement date for purposes of estimating asset retirement obligations since the dates or ranges of dates upon which we would retire these assets cannot be reasonably estimated at this time. Such obligations will be recognized in the period sufficient information becomes available to estimate a range of potential settlement dates. At December 31, 2016 the asset retirement obligation balance was zero.
 
Investment in unconsolidated affiliates - Equity investments in which the Company exercises significant influence, but does not control and are not the primary beneficiaries, are accounted for using the equity method.

The Company believes the equity method is an appropriate means for it to recognize increases or decreases measured by GAAP in the economic resources underlying the investments. Regular evaluation of these investments is appropriate to evaluate any potential need for impairment.

Income taxes -The Company's taxable income has historically been included in the consolidated U.S. federal income tax returns of MPC and also in a number of local income tax returns, which are filed as consolidated and combined returns. The Company is not a taxable entity for U.S. federal income tax purposes or for states that impose an income tax. The Company's income tax provisions result from certain local jurisdictions which subject each legal entity doing business in the jurisdictions to an income tax.

Deferred tax liabilities are recognized based on temporary differences between the financial statement carrying amounts of assets and liabilities and their tax bases as reported in MPC’s filings with the respective taxing authorities.

9


Equity - The equity balance reflects MPC’s initial investment in the Company adjusted for the operating results of the Company and various transactions between the Company and MPC. Transactions affecting the equity balance include capitalization of interest incurred by MPC and allocated to the Company.

Concentrations of risk - We are exposed to related party risk as substantially all of our revenues and other income are derived from transactions with MPC. Sales to related parties for the nine months ended December 31, 2016, were 99.9% of total revenues and other income. For the nine months ended December 31, 2016, purchases - related parties were 35.6% of total costs and expenses.

3.
Accounting Standards

Recently Adopted

In August 2014, the FASB issued an accounting standard update requiring management to assess an entity’s ability to continue as a going concern and to provide related footnote disclosures in certain circumstances. Management is required to assess if there is substantial doubt about an entity’s ability to continue as a going concern within one year after the issuance of the financial statements. Disclosures are required if conditions give rise to substantial doubt and the type of disclosure is determined based on whether management’s plans will be able to alleviate the substantial doubt. The change was effective for the first fiscal period ending after December 15, 2016, and for fiscal periods and interim periods thereafter. The adoption of this accounting standard update in the fourth quarter of 2016 did not have a material impact on the our disclosures.

Not Yet Adopted

In January 2017, the FASB issued an accounting standard update which simplifies the subsequent measurement of goodwill by eliminating Step 2 from the goodwill impairment test. Under the new guidance, the recognition of an impairment charge is calculated based on the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. The guidance should be applied on a prospective basis, and is effective for annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The Company is in the process of determining the impact of the accounting standard update on the consolidated financial statements.

In August 2016, the FASB issued an accounting standard update related to the classification of certain cash flows. The accounting standard update provides specific guidance on eight cash flow classification issues, including debt prepayment or debt extinguishment costs and distributions received from equity method investees, to reduce diversity in practice. The change is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years, with early adoption permitted. We do not expect application of this accounting standard update to have a material impact on the Consolidated Statement of Cash Flows.

In February 2016, the FASB issued an accounting standard update requiring lessees to record virtually all leases on their balance sheets. The accounting standard update also requires expanded disclosures to help financial statement users better understand the recorded leases. For lessors, this amended guidance modifies the classification criteria and the accounting for sales-type and direct financing leases. The change will be effective on a modified retrospective basis for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years, with early adoption permitted. We are currently evaluating the impact of this standard.

In May 2014, the FASB issued an initial accounting standard update for revenue recognition for contracts with customers. The guidance in the accounting standard update states that revenue is recognized when a customer

10


obtains control of a good or service. Recognition of the revenue will involve a multiple step approach and additional disclosures will be required to provide adequate information to understand the reported revenues and revenues expected to be recognized. The change will be effective on a retrospective or modified retrospective basis for fiscal years beginning after December 15, 2017, and interim periods within those years, with early adoption permitted no earlier than January 1, 2017. We are currently evaluating the impact of this standard.

4. Equity Method Investments

 
Ownership as of
 
Carrying Value at
(in thousands)
December 31, 2016
 
December 31, 2016
Johnston County Terminal, LLC
50%
 
$
1,949

Guilford County Terminal Company, LLC
35%
 
2,494

    Total
 
 
$
4,443


5. Related Party Agreements and Transactions

Our only related party is MPC, who refines, markets and transports crude oil and petroleum products, primarily in the Midwest, Gulf Coast and Southeast regions of the United States. Effective April 1, 2016, transactions with MPC are governed by the agreements outlined below. All services are on the same terms that would be available to an unrelated third party and are based on rates pursuant to agreements between the parties. Management expects that MPC will continue to utilize these services for the foreseeable future due to the contractual nature of the agreements as outlined below.

The related party nature of certain transactions has such a pervasive impact on the financial statements, such that the reported results of operations and financial position may be materially different from what would have been reported in the absence of the related party relationship.

Commercial Agreements

On April 1, 2016, the Company entered into a long-term, fee-based terminal services agreement with MPC with an initial term of ten years. Under the agreement, we provide terminal storage for refined petroleum products, as well as related services. MPC pays the Company monthly for such services based on contractual fees relating to MPC product deliveries as well as any viscosity surcharges, loading, handling, transfers or other related charges.

Under the terminal services agreement, if MPC fails to meet its quarterly minimum volume throughput commitments, MPC will pay a deficiency payment equal to the volume of the deficiency multiplied by the rate then in effect. If the average daily capacity of the terminal falls below the level of MPC’s commitment during a quarter, depending on the cause of the reduction in capacity, MPC’s throughput commitment will be reduced to equal the average daily capacity available during such quarter.

The Company entered into a guaranteed supply agreement with MPC on April 1, 2016 for the supply of fuel for use by the Company's equipment and vehicles. The Company must purchase 90 percent of the guaranteed volume each month or the volume can be reduced by MPC per the contract.

Management Services Agreement

On April 1, 2016, the Company entered into management services agreement with MPC under which MPC provides operational, financial, legal, accounting, human resources, information technology and other general

11


and administrative services ancillary to our business. We reimburse MPC for all disbursements made by MPC on behalf of the Company at cost. We also reimburse MPC for any taxes paid in connection with providing these services.

Employee Services Agreement

On April 1, 2016, under an employee services agreement, the Company's employees were transferred to Marathon Petroleum Logistics Services LLC ("MPLS"), a wholly owned subsidiary of MPC. Under the agreement the Company reimburses MPLS for employee benefit expenses along with certain operational and management services provided in support of our operations.  The agreement is effective until December 31, 2020.

Cash Management Agreement

On April 1, 2016, an agreement between a wholly owned subsidiary of MPC and the Company was executed under which MPC provides cash management services to the Company. On a daily basis, we send any cash to MPC as an advance or in case of any shortages we request a draw. Our net cash balance with MPC on the last day of each quarter is classified as loans receivable from related party or as loans payable to related party. The loan balance remains constant until the last day of the next quarter. Loans receivable earns interest at the three-month London Interbank Offered Rate (“LIBOR”) plus 10 basis points. Loans payable bears interest at the three-month LIBOR plus 50 basis points. At the end of each quarter, the net balance of the daily advances and draws and the accrued interest is rolled into the loan balance for the subsequent quarter.

Related Party Transactions

Service revenue and rental income - related parties were as follows:
 
Nine Months Ended
(in thousands)
December 31, 2016
MPC
$
297,156



Service revenue and rental income to MPC consist primarily of terminal services provided by the Company including the receipt, storage, blending, additization, handling and redelivery of refined petroleum products; ethanol denaturing; meter maintenance and other related services. Of the above total, $1,582 thousand is contingent rent.

Purchases from related parties were as follows:

 
Nine Months Ended
(in thousands)
December 31, 2016
MPC
$
67,612


Purchases from MPC consist of salaries, wages and other costs associated with employee services provided by MPC for our operations. Our allocable share of MPC’s employee benefit expenses is included in related party purchases total above and was $46,233 thousand for the nine months ended December 31, 2016. The remaining balance relates to MPC terminal corporate charges, terminal ethanol unloading and project costs.



12


General and administrative expenses from related parties were as follows:

 
Nine Months Ended
(in thousands)
December 31, 2016
MPC
$
27,429


The Company's general and administrative expenses from MPC include expenses related to employee service costs. MPC provides certain services to the Company including financial, legal, accounting, human resources, information technology and other administrative services. Charges for these services are allocated based on usage, headcount or capital employed; all of these allocation methods are believed to be reasonable by management.
Other current assets includes the following for related party prepaid project expenses:
(in thousands)
December 31, 2016
MPC
$
182

Receivables from related parties were as follows:
(in thousands)
December 31, 2016
MPC
$
33,396


Payables to related parties were as follows:
(in thousands)
December 31, 2016
MPC
$
11,936


6. Income Taxes

We are not taxable entities for United States federal or state income tax purposes. Taxes on our net income generally are borne by MPC through the allocation of our taxable income. Our income tax provision results from business activity in certain local jurisdictions.

Our income tax expense was $340 thousand for the nine months ended December 31, 2016 while our effective tax rate was 0.33 percent.

There were no unrecognized tax benefits for the nine months ended December 31, 2016.

Any interest and penalties to income taxes are recorded as a part of the provision for income taxes. No interest or penalties related to income taxes were recorded for the nine months ended December 31, 2016.

At December 31, 2016 we had net deferred tax liabilities of $675 thousand, which were primarily attributable to fixed assets.





13


7. Property, Plant and Equipment


Major classes of property, plant and equipment consist of the following:

 
Estimated
 
December 31,
(in thousands)
Useful Lives
 
2016
Land
 
 
$
49,912

Terminals and related assets
4-30 years
 
758,639

Assets under construction
 
 
48,515

Total
 
 
857,066

Less accumulated depreciation
 
 
444,058

Property, plant and equipment, net
 
 
$
413,008


8. Goodwill


Goodwill is tested for impairment on an annual basis and when events or changes in circumstances indicate the fair value of our reporting unit has been reduced below carrying value. We have performed our annual impairment tests as of November 30, 2016, and no impairment in the carrying value of goodwill has been identified during the period presented.

9. Fair Value Measurements


Fair values - recurring

There were no assets accounted for at fair value on a recurring basis at December 31, 2016.

Fair values - reported

Our primary financial instruments are trade receivables and payables as well as a loan receivable. We believe the carrying values of our current assets and liabilities approximate fair value. Our fair value assessment incorporates a variety of considerations, including (1) the short-term duration of the instruments, (2) MPC’s investment-grade credit rating and (3) our historical incurrence of and expected future insignificance of bad debt expense, which includes an evaluation of counterparty credit risk.

10. Supplemental Cash Flow Information

(in thousands)
Nine Months Ended
December 31, 2016
Net cash provided by operating activities included:
 
    Net income taxes paid to taxing authorities
$
300

    Interest paid
735

Non-cash financing activities:
 
    Capitalized interest
$
687



14


The Consolidated Statement of Cash Flows excludes the change to the Consolidated Balance Sheet that did not affect cash. The following is the change of additions to property, plant and equipment related to capital accruals:
(in thousands)
Nine Months Ended
December 31, 2016
Decrease in capital accruals
$
170


11. Leases


The Company leases land and office space from MPC related to the terminal operations. Future minimum commitments as of December 31, 2016, for operating lease obligations having initial or remaining non-cancelable lease terms in excess of one year are as follows:

(in thousands)
 
2017
$
99

2018
104

2019
58

2020
58

2021
15

Thereafter
1

Total minimum lease payments
$
335


Based on the terms of our fee-based terminal services agreement with MPC, the Company is considered to be a lessor of their terminal storage facilities in accordance with GAAP. Per the agreements, the following is a schedule of minimum future payments the Company is to receive on non-cancelable operating leases by year:

(in thousands)
 
2017
$
93,449

2018
95,318

2019
97,225

2020
99,169

2021
101,152

Thereafter
453,169

Total minimum future payments
$
939,482


The following schedule summarizes the Company's investment in assets held for operating lease by major classes as of December 31, 2016:


15


(in thousands)
 
Terminals and related assets
$
758,639

Less accumulated depreciation
444,058

Property, plant and equipment, net
$
314,581


12. Commitments and Contingencies

We are the subject of, or a party to, a number of pending or threatened legal actions, contingencies and commitments involving a variety of matters, including laws and regulations relating to the environment. For matters for which we have not recorded an accrued liability, we are unable to estimate a range of possible losses for the reasons discussed in more detail below. However, the ultimate resolution of some of these contingencies could, individually or in the aggregate, be material.

Environmental matters - We are subject to federal, state and local laws and regulations relating to the environment. These laws generally provide for control of pollutants released into the environment and require responsible parties to undertake remediation of hazardous waste disposal sites. Penalties may be imposed for non-compliance.
At December 31, 2016 accrued liabilities for remediation totaled $7,472 thousand. However, it is not presently possible to estimate the ultimate amount of all remediation costs that might be incurred or the penalties, if any that may be imposed.

Legal proceedings - We are involved in lawsuits and other proceedings arising in the ordinary course of business. While the ultimate outcome and impact cannot be predicted with certainty, we believe the resolution of these lawsuits and proceedings will not have a material adverse effect on the Company's financial position, results of operations, or cash flows.



16
MPLX LP
UNAUDITED PRO FORMA CONSOLIDATED FINANCIAL STATEMENTS


Set forth below are the unaudited pro forma consolidated statements of income for each of the years in the two-year period ended December 31, 2016 and the unaudited pro forma consolidated balance sheet as of December 31, 2016, together with the notes to the unaudited pro forma consolidated financial statements, of MPLX LP, that give effect to the acquisitions of Hardin Street Transportation LLC and Woodhaven Cavern LLC (collectively, "HST") and MPLX Terminals LLC ("MPLXT"). The unaudited pro forma consolidated financial statements have been prepared based on the consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2016 with certain pro forma adjustments made to those financial statements as further discussed below. The pro forma consolidated financial statements should be read in conjunction with such historical consolidated financial statements, including the related financial statement notes. Unless otherwise stated or the context otherwise indicates, all references to “MPLX”, “the Partnership”, “we”, “our”, “us”, or similar expressions refer to MPLX LP, including its consolidated subsidiaries. References to "MPC", refer to Marathon Petroleum Corporation and its subsidiaries, other than the Partnership.
MPC contributed the assets of HST and MPLXT to newly created and wholly-owned subsidiaries and entered into commercial agreements related to services provided by these new entities to MPC on January 1, 2015 and April 1, 2016, respectively (the "Acquired Businesses"). Prior to these dates, these entities were not considered businesses. Pursuant to a Membership Interests Contributions Agreement entered into on March 1, 2017 (the "Contributions Agreement"), MPC contributed certain terminal, pipeline and storage assets, held by the the Acquired Businesses, to the Partnership for total consideration valued at $2,015 million (the "Acquisition"). MPC is contributing these assets in exchange for the issuance of $504 million in MPLX equity (the "Equity Consideration") and $1,511 million in cash. The Equity Consideration consisted of (i) 12,832,060 common units representing limited partner interests in the Partnership ("Common Units") and (ii) 261,879 general partner units to our general partner to maintain is two percent general partner interest in the Partnership. The final total consideration may differ immaterially from the Contributions Agreement as it is dependent on the March 1, 2017 MPLX common unit price. In connection with the Acquisition, the Partnership and its subsidiaries assumed various agreements with MPC contemplated by the Contributions Agreement, which provide for, among other items, the Partnership's reimbursement of MPC for the provision of certain general and administrative services.
HST owns and operates various private crude oil and refined product pipeline systems and associated storage tanks. These pipeline systems consist of 174 miles of crude oil pipelines and 430 miles of refined products pipelines while the associated 73 tanks have approximately 7.8 million barrels of storage capacity. Additionally, HST owns and operates 9 butane and propane storage caverns located in Michigan with approximately 1.8 million barrels of natural gas liquids storage capacity.

MPLXT owns and operates 59 terminals for the receipt, storage, blending, additization, handling and redelivery of refined petroleum products. Additionally, MPLXT operates one leased terminal and has partial ownership interests in two terminals. Collectively, these 62 terminals have a combined total shell capacity of approximately 23.6 million barrels. The terminal facilities are located primarily in the Midwest, Gulf Coast and Southeast regions of the United States.

The assets of HST and MPLXT are recorded at historical cost as the Acquisition is among entities under common control. The pro forma adjustments are based on currently available information and certain estimates and assumptions; therefore, actual results may differ from the pro forma amounts. However, management believes the assumptions are reasonable for presenting the significant effects of the Acquisition and that the pro forma adjustments give appropriate effect to those assumptions, are factually supportable and are properly applied in the unaudited pro forma consolidated financial statements.
The unaudited pro forma consolidated balance sheet as of December 31, 2016 has been prepared to give effect to the Acquisition as if it had occurred on December 31, 2016. The unaudited pro forma consolidated statements of income for the two-year period ended December 31, 2016, have been prepared to give effect to the acquisition of HST and MPLXT as if it had occurred on January 1, 2015 and April 1, 2016, respectively, as these entities were not considered businesses prior to these dates. For the purposes of these unaudited pro forma consolidated financial statements, the total consideration described above is based on a 10-day average of the MPLX common unit price from February 8, 2017 through the close of trading on February 22, 2017. On December 4, 2015, MarkWest Energy Partners, L.P. ("MWE") merged with a wholly-owned subsidiary of MPLX (the "MarkWest Merger"). The operating results of MWE for the period of December 4, 2015 through December 31, 2015, are included in the MPLX LP historical consolidated statement of income for the year ended December 31, 2015. The unaudited pro forma consolidated statement of income for the year ended December 31, 2015 has been prepared to reflect the MarkWest Merger as of January 1, 2015.


1


MPLX LP
UNAUDITED PRO FORMA CONSOLIDATED STATEMENT OF INCOME
YEAR ENDED DECEMBER 31, 2016
(In millions, except per unit data)
MPLX LP
Historical
(1)
 
HST Historical (Note 5)
 
MPLXT Historical (Note 6)
 
HST/MPLXT
Pro Forma
Adjustments
 
MPLX LP
Pro Forma
Revenues and other income:
 
 
 
 
 
 
 
 
 
Service revenue
$
958

 
$

 
$

 
$

 
$
958

Service revenue - related parties
603

 
118

 
220

 
(4
)
(z)
937

Rental income
298

 

 

 

 
298

Rental income - related parties
114

 
50

 
77

 
(6
)
(z)
235

Product sales
572

 

 

 

 
572

Product sales - related parties
11

 

 

 

 
11

Gain on sale of assets
1

 

 

 

 
1

(Loss) income from equity method investments
(74
)
 

 

 

 
(74
)
Other income
6

 

 

 

 
6

Other income - related parties
101

 

 

 
(14
)
(y)
87

Total revenues and other income
2,590

 
168

 
297

 
(24
)
 
3,031

Costs and expenses:
 
 
 
 
 
 
 
 
 
Cost of revenues (excludes items below)
354

 
39

 
63

 
(2
)
(z)
454

Purchased product costs
448

 

 

 

 
448

Rental cost of sales
53

 
4

 

 

 
57

Rental cost of sales - related parties

 
2

 

 
(3
)
(y)(z)
(1
)
Purchases - related parties
316

 
21

 
69

 
(13
)
(y)
393

Depreciation and amortization
546

 
16

 
29

 
(1
)
(z)
590

Impairment expense
130

 

 

 

 
130

General and administrative expenses
193

 
7

 
27

 

 
227

Other taxes
43

 
3

 
4

 

 
50

Total costs and expenses
2,083

 
92

 
192

 
(19
)
 
2,348

Income from operations
507

 
76

 
105

 
(5
)
 
683

Related party interest and other financial (income) costs
1

 
(1
)
 
1

 

 
1

Interest expense
210

 

 

 
104

(w)
314

Other financial costs
50

 

 

 
1

(w)
51

Income (loss) before income taxes
246

 
77

 
104

 
(110
)
 
317

(Benefit) provision for income taxes
(12
)
 

 

 
1

(p)
(11
)
Net income (loss)
258

 
77

 
104

 
(111
)
 
328

Less: Net income attributable to noncontrolling interests
2

 

 

 

 
2

Less: Net income attributable to Predecessor
23

 

 

 

 
23

Net income attributable to MPLX LP
233

 
77

 
104

 
(111
)
 
303

Less: Preferred unit distributions
41

 
 
 
 
 

 
41

Less: General partner’s interest in net income attributable to MPLX LP
191

 
 
 
 
 
8

(q)
199

Limited partners’ interest in net income (loss) attributable to MPLX LP
$
1

 
 
 
 
 
$
(15
)
 
$
63

Per Unit Data (Note 3)
 
 
 
 
 
 
 
 
 
Net income attributable to MPLX LP per limited partner unit:
 
 
 
 
 
 
 
 
 
Common - basic
$

 
 
 
 
 
 
 
$
0.18

Common - diluted

 
 
 
 
 
 
 
0.18

Weighted average limited partner units outstanding:
 
 
 
 
 
 
 
 
 
Common - basic
331

 
 
 
 
 
11

 
342

Common - diluted
338

 
 
 
 
 
11

 
349

(1) Financial information has been retrospectively adjusted for the acquisition of Hardin Street Marine LLC from MPC.
See Notes to the Unaudited Pro Forma Consolidated Financial Statements.


2



MPLX LP
UNAUDITED PRO FORMA CONSOLIDATED STATEMENT OF INCOME
YEAR ENDED DECEMBER 31, 2015
 
(In millions, except per unit data)
MPLX LP
Historical (1)
 
MWE
Historical
(Note 4)
 
MWE
Pro Forma
Adjustments
 
HST
Historical
(Note 5)
 
HST
Pro Forma
Adjustments
 
MPLX LP
Pro Forma
Revenues and other income:
 
 
 
 
 
 
 
 
 
 
 
Service revenue
$
130

 
$
880

 
$
(8
)
(a)
$

 
$

 
$
1,002

Service revenue - related parties
593

 

 

 
112

 
(4
)
(z)
701

Rental income
20

 
251

 
(3
)
(a)

 

 
268

Rental income - related parties
101

 

 

 
46

 
(1
)
(z)
146

Product sales
36

 
597

 
(7
)
(b)

 

 
626

Product sales - related parties
1

 

 
7

(b)

 

 
8

Income from equity method investments
3

 
12

 
(7
)
(c)(d)

 

 
8

Other income
6

 
(6
)
 

 

 

 

Other income - related parties
71

 

 

 

 
(14
)
(y)
57

Total revenues and other income
961

 
1,734

 
(18
)
 
158

 
(19
)
 
2,816

Costs and expenses:
 
 
 
 
 
 
 
 
 
 
 
Cost of revenues (excludes items below)
225

 
298

 

 
26

 
(4
)
(z)
545

Purchased product costs
20

 
421

 
(7
)
(e)

 

 
434

Rental cost of sales
5

 
51

 

 
6

 

 
62

Rental cost of sales - related parties

 

 

 
2

 
(3
)
(y)(z)
(1
)
Purchases - related parties
166

 

 

 
20

 
(13
)
(y)
173

Depreciation and amortization
116

 
521

 
(59
)
(f)(g)
14

 
(1
)
(z)
591

Impairment expense

 
26

 

 

 

 
26

General and administrative expenses
118

 
185

 
(92
)
(h)(i)
7

 

 
218

Other taxes
13

 

 

 
2

 

 
15

Total costs and expenses
663

 
1,502

 
(158
)
 
77

 
(21
)
 
2,063

Income from operations
298

 
232

 
140

 
81

 
2

 
753

Debt retirement expense

 
118

 

(j)

 

 
118

Related party interest and other financial costs

 

 

 

 

 

Interest expense
35

 
189

 
(1
)
(k)

 
104

(w)
327

Other financial costs
13

 
6

 
18

(j)(l)

 
1

(w)
38

Income (loss) before income taxes
250

 
(81
)
 
123

 
81

 
(103
)
 
270

(Benefit) provision for income taxes
1

 
(18
)
 
7

(m)

 
(1
)
(p)
(11
)
Net income (loss)
249

 
(63
)
 
116

 
81

 
(102
)
 
281

Less: Net income attributable to noncontrolling interests
1

 
(25
)
 
(13
)
(n)

 

 
(37
)
Less: Net income attributable to Predecessor
92

 

 

 

 

 
92

Net income (loss) attributable to MPLX LP
156

 
(38
)
 
129

 
81

 
(102
)
 
226

Less: General partner’s interest in net income attributable to MPLX LP
57

 
 
 
43

(o)
 
 
4

(q)
104

Limited partners’ interest in net income (loss) attributable to MPLX LP
$
99

 
 
 
$
48

 


 
$
(25
)
 
$
122

Per Unit Data (Note 3)
 
 
 
 
 
 
 
 
 
 
 
Net income attributable to MPLX LP per limited partner unit:
 
 
 
 
 
 
 
 
 
 
 
Common - basic
$
1.23

 
 
 
 
 
 
 
 
 
$
0.44

Common - diluted
1.22

 
 
 
 
 
 
 
 
 
0.42

Subordinated - basic and diluted
0.11

 
 
 
 
 
 
 
 
 

Weighted average limited partner units outstanding:
 
 
 
 
 
 
 
 
 
 
 
Common - basic
79

 
 
 
192

 
 
 
5

 
276

Common - diluted
80

 
 
 
202

 
 
 
5

 
287

Subordinated - basic and diluted
18

 
 
 

 
 
 

 
18


3


(1) Financial information has been retrospectively adjusted for the acquisition of Hardin Street Marine LLC from MPC.
See Notes to the Unaudited Pro Forma Consolidated Financial Statements.

4


MPLX LP
UNAUDITED PRO FORMA CONSOLIDATED BALANCE SHEET
AS OF DECEMBER 31, 2016
(In millions)
MPLX LP
Historical
 
HST
Historical
(Note 5)
 
MPLXT
Historical
(Note 6)
 
HST/MPLXT
Pro Forma Adjustments
 
MPLX LP Pro Forma
Assets
 
 
 
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
234

 
$

 
$

 
$
709

(w)(x)
$
943

Receivables, net
297

 
1

 
1

 

 
299

Receivables - related parties
122

 
92

 
38

 
(72
)
(r)(v)(y)
180

Inventories
54

 
1

 

 

 
55

Other current assets
33

 

 

 

 
33

Total current assets
740

 
94

 
39

 
637

 
1,510

Equity method investments
2,467

 

 
4

 

 
2,471

Property, plant and equipment, net
10,730

 
273

 
413

 
(8
)
(t)
11,408

Intangibles, net
492

 

 

 

 
492

Goodwill
2,199

 
27

 
21

 
(2
)
(t)
2,245

Long-term receivables - related parties
4

 

 
7

 

 
11

Other noncurrent assets
14

 

 

 

 
14

Total assets
$
16,646

 
$
394

 
$
484

 
$
627

 
$
18,151

Liabilities
 
 
 
 
 
 
 
 
 
Current liabilities:
 
 
 
 
 
 
 
 
 
Accounts payable
$
123

 
$
5

 
$
12

 
$

 
$
140

Accrued liabilities
228

 
4

 

 

 
232

Payables - related parties
75

 
5

 
12

 
(4
)
(y)
88

Deferred revenue
2

 

 

 

 
2

Deferred revenue - related parties
34

 
4

 

 

 
38

Accrued property, plant and equipment
132

 
9

 
5

 

 
146

Accrued taxes
33

 
1

 
3

 

 
37

Accrued interest payable
53

 

 

 

 
53

Other current liabilities
24

 
1

 
2

 

 
27

Total current liabilities
704

 
29

 
34

 
(4
)
 
763

Long-term deferred revenue
12

 

 

 

 
12

Long-term deferred revenue - related parties
15

 

 
4

 

 
19

Long-term debt
4,422

 

 

 
2,220

(w)
6,642

Deferred income taxes
5

 

 
1

 

 
6

Deferred credits and other liabilities
169

 
3

 
6

 

 
178

Total liabilities
5,327

 
32

 
45

 
2,216

 
7,620

Commitments and contingencies
 
 
 
 
 
 
 
 
 
Redeemable preferred units
1,000

 

 

 

 
1,000

Equity
 
 
 
 
 
 
 
 
 
Common unitholders - public
8,086

 

 

 

 
8,086

Class B unitholders
133

 

 

 

 
133

Common unitholder - MPC
1,069

 

 

 
143

(s)
1,212

General partner - MPC
1,013

 

 

 
(931
)
(r)(s)(t)(v)
82

Net investment

 
362

 
439

 
(801
)
(u)

Total MPLX LP partners’ capital
10,301

 
362

 
439

 
(1,589
)
 
9,513

Noncontrolling interest
18

 

 

 

 
18

Total equity
10,319

 
362

 
439

 
(1,589
)
 
9,531

Total liabilities, preferred units and equity
$
16,646

 
$
394

 
$
484

 
$
627

 
$
18,151


See Notes to Unaudited Pro Forma Consolidated Financial Statements.

5


MPLX LP
NOTES TO THE UNAUDITED PRO FORMA CONSOLIDATED FINANCIAL STATEMENTS

Except as noted within the context of each footnote, the dollar amounts presented in the tabular data within these footnotes are stated in millions of dollars.

1. Basis of Pro Forma Presentation

The accompanying unaudited pro forma consolidated financial information is intended to reflect the impact of the Acquisition on MPLX's consolidated financial statements and presents the pro forma consolidated financial position and results of operations of MPLX based on its historical financial statements and the financial statements of HST and MPLXT, incorporated by reference in this Current Report on Form 8-K, after giving effect to the Acquisition and pro forma adjustment as described in these notes. Given the MarkWest Merger was effective December 4, 2015, the unaudited pro forma consolidated financial statements also reflect the effect of that transaction as appropriate. Pro forma adjustments are included only to the extent they are (i) directly attributable to the Acquisition, (ii) factually supportable and, (iii) with respect to the unaudited pro forma consolidated statements of income, expected to have a continuing impact on the consolidated results. Certain items included in the historical consolidated financial statements of MPLX, MWE, HST and MPLXT were not adjusted for in these unaudited pro forma consolidated financial statements, as they were not directly related to the transaction, including (i) debt refinancing and other historical changes to the capital structures and (ii) acquisitions of additional interests in consolidated entities.

The unaudited pro forma consolidated balance sheet as of December 31, 2016 has been prepared to give effect to the Acquisition as if it had occurred on December 31, 2016. The unaudited pro forma consolidated statements of income for the two-year period ended December 31, 2016, have been prepared to give effect to the acquisition of HST and MPLXT as if it had occurred on January 1, 2015 and April 1, 2016, respectively, as these entities were not considered businesses prior to these dates. The unaudited pro forma consolidated statement of income for the year ended December 31, 2015 has been prepared to reflect MPLX's acquisition of MWE as if it had occurred on January 1, 2015, using the acquisition method of accounting.

2. Pro Forma Adjustments to the Unaudited Consolidated Financial Statements

Acquisition of MarkWest Energy Partners, L.P.

At the time of the MarkWest Merger on December 4, 2015, MWE had a 60% legal ownership interest in MarkWest Utica EMG, L.L.C. ("MarkWest Utica EMG"). MarkWest Utica EMG's inability to fund its planned activities without subordinated financial support qualify it as a variable interest entity. The financing structure for MarkWest Utica EMG at its inception resulted in a de-facto agent relationship under which MWE was deemed to be the primary beneficiary of MarkWest Utica EMG. Therefore, MWE consolidated MarkWest Utica EMG in its historical financial statements. In the fourth quarter of 2015, based on economic conditions and other pertinent factors, the accounting for its investment in MarkWest Utica EMG was re-assessed. As of December 4, 2015, the entity has been deconsolidated. For purposes of the unaudited pro forma consolidated statement of income for the year ended December 31, 2015, MarkWest Utica EMG has been consolidated for the period prior to December 4, 2015 consistent with its treatment in the historical period presented.

A summary of the amounts included in the historical financial statements of MWE for the period from January 1, 2015, through December 3, 2015, related to MarkWest Utica EMG are as follows:

 
Period Ended
December 3, 2015
Revenues and other income
$
152

Cost of revenues, excluding depreciation and amortization
27

Depreciation and amortization
61

Net income attributable to noncontrolling interests
64

Net income (loss)
(5
)

EMG Utica, LLC ("EMG Utica"), our joint venture partner in MarkWest Utica EMG, received a special non-cash allocation of income of approximately $41 million for the period from January 1, 2015 through December 3, 2015. Net income of MWE would not have changed had MarkWest Utica EMG been deconsolidated for the period from January 1, 2015 through December 3, 2015.


6


(a)
Adjustment to reflect the write-off of MWE's deferred revenue as of January 1, 2015 and removal of the related recognition of this deferred revenue in 2015. This deferred revenue is associated with reimbursable projects that do not represent legal obligations and therefore have no fair value. The unaudited pro forma consolidated statement of income adjustment reflects a decrease in service revenue and rental income of $8 million and $3 million, respectively, for the year ended December 31, 2015.

(b)
Adjustment to reflect the activity between MWE and MPC as related party transactions. The activity primarily consisted of MPC purchasing feedstock for its refineries from MWE.

(c)
As of December 3, 2015, MWE owned a 55% ownership interest in MarkWest Utica EMG Condensate L.L.C. ("Utica Condensate"). In connection with the MarkWest Merger, MWE purchased the remaining 45% interest in Utica Condensate for $83 million. Utica Condensate's business is conducted solely through its 60% ownership of Ohio Condensate Company, L.L.C. ("Ohio Condensate"). The owner of the remaining 40% interest in Ohio Condensate has certain participatory rights and as a result Ohio Condensate has been and will continue to be accounted for as an equity method investment. The unaudited pro forma consolidated statement of income adjustment reflects an additional equity loss of approximately $2 million for the period from January 1, 2015 to December 3, 2015, to reflect MWE's increased ownership of Utica Condensate as a result of the above.

(d)
Adjustment to decrease income from equity method investments by approximately $5 million for the year ended December 31, 2015, to reflect the amortization of portions of the $113 million incremental fair value adjustment to equity method investments that was allocated to definite lived assets.

(e)
Adjustment of $7 million for the year ended December 31, 2015, to reflect the elimination of the unrealized loss associated with MWE's accounting for the inception value of an embedded derivative.

(f)
Adjustment to reflect the net decrease in depreciation expense of $86 million for the year ended December 31, 2015, as a result of the MarkWest Merger. Although the step-up value of the assets generated additional depreciation expense, the useful lives of certain MWE asset classes were conformed to the lives for the same major asset classes per MPLX's accounting policy resulting in a decrease in depreciation expense. The fair value of the acquired property, plant and equipment is being depreciated over a remaining weighted average period of approximately 27 years in the unaudited pro forma consolidated statement of income.

(g)
Adjustment to reflect the increase in amortization expense for the year ended December 31, 2015, related to the fair values of the intangibles acquired in the MarkWest Merger. Additionally, this adjustment reflects the amortization of the fair value of MarkWest Utica EMG's intangibles being reported as consolidated intangible assets for the period from January 1, 2015 through December 3, 2015. The fair values of the intangibles are being amortized over a remaining estimated useful life range between 11 and 25 years based on the utilization of the assets. The tables below reflect the change in amortization expense over the periods presented as a result of the MarkWest Merger.

 
Estimated
Fair Value
 
Useful Lives
(in years)
Intangibles, net
$
1,306

 
11-25

 
Period Ended
December 3, 2015
Reversal of amortization recorded at MWE
$
(61
)
Amortization expense based on new book value
88

Change in amortization expense of intangibles
$
27


(h)
Adjustment to reflect the elimination of approximately $90 million of acquisition-related costs and approximately $4 million of costs related to the exchange of MWE senior notes for the year ended December 31, 2015.

(i)
Adjustment to increase general and administrative expenses by approximately $2 million for the year ended December 31, 2015, for retention awards granted to certain MWE employees. The fair value of the retention awards will be recognized ratably over the post-acquisition service period of three years.

7



(j)
Adjustment to amortize the fair value adjustment for the MWE debt assumed by MPLX. The amortization of the fair value adjustment results in an increase in other financial costs of approximately $24 million for the year ended December 31, 2015. In conjunction with MWE's June 2015 redemption of debt, a loss on extinguishment of approximately $118 million was recorded in its historical financial statements, which has not been adjusted in the unaudited pro forma consolidated statement of income for the year ended December 31, 2015.

(k)
Adjustment to reflect reduced interest expense of $1 million for the year ended December 31, 2015 related to the fair value adjustment of the financing arrangement liability assumed by MPLX.

(l)
Adjustment to decrease other financial costs to remove costs of approximately $6 million related to the exchange of MWE senior notes and MWE credit facility.

(m)
MWE is not a taxable entity for federal income tax purposes. As such, MWE does not directly pay federal income tax. MarkWest Hydrocarbon, Inc. ("MarkWest Hydrocarbon"), a wholly-owned subsidiary of MWE, is a tax paying entity for both federal and state purposes. In addition to paying tax on its own earnings, MarkWest Hyrdocarbon recognizes a tax provision or benefit on its proportionate share of MWE income or loss resulting from MarkWest Hydrocarbon's ownership interest in MWE. For financial reporting purposes, such income or loss is eliminated in consolidation. As a result of the MarkWest Merger, MarkWest Hydrocarbon will also recognize a tax provision or benefit on its proportionate share of MPLX income or loss in a similar manner. The unaudited pro forma consolidated statement of income reflects a provision for income tax adjustment of $7 million for the year ended December 31, 2015.

(n)
Adjustment to net income attributable to noncontrolling interests to reflect the effect of certain pro forma adjustments.

(o)
Adjustment to reflect the net income attributable to the general partner, including distributions related to the general partner's incentive distribution rights ("IDRs"), to give effect to the MarkWest Merger. The adjustment reflects the combined MPLX and MWE historical cash distributions allocated per the terms of MPLX's partnership agreement.

Acquisition of HST and MPLXT

(p)
Adjustment to recognize MarkWest Hydrocarbon's $1 million tax provision on its proportionate share of HST and MPLXT combined incremental income for the year ended December 31, 2016 and $1 million tax benefit on its proportionate share of HST's incremental income for the year ended December 31, 2015. Refer to Note 2 (m) for further details.

(q)
Adjustment to reflect the net income attributable to the general partner, including distributions related to the general partner's IDRs, to give effect to the Acquisition. The adjustment reflects the combined MPLX, HST and MPLXT historical cash distributions allocated per the terms of MPLX's partnership agreement.

(r)
Adjustment to reflect the termination of both HST and MPLXT's participation in MPC's cash management services agreement. As a result of the termination, per the Contributions Agreement, HST and MPLXT's combined loans receivable from related parties balance of $80 million is eliminated and HST and MPLXT distribute all such cash received to MPC. This combined distribution from HST and MPLXT is reflected in General partner - MPC equity.

(s)
Adjustment to reflect the issuance of 12,832,060 Common Units and 261,879 general partner units to MPC in connection with the Acquisition. Pro forma equity adjustments include increases to Common unitholder - MPC and General partner - MPC of $143 million and $361 million, respectively, as 9,106,834 Common Units were issued to the general partner.

(t)
The Partnership recorded its acquired interest in HST and MPLXT at its historical carrying value and the excess consideration paid over the historical carrying value as a decrease to general partner equity. The unaudited pro forma consolidated balance sheet reflects a decrease in General partner - MPC equity of $1,224 million; which includes $2,015
million total fair value consideration less HST and MPLXT's combined historical carrying value of $801 million and the reduction of $10 million in historical carrying value related to the distribution of certain of HST's assets to MPC in 2017 prior to the Acquisition.

(u)
Adjustment to reflect the elimination of MPC's combined net investment in HST and MPLXT at December 31, 2016, of $801 million.


8


(v)
Adjustment to reflect the indemnification by MPC of costs of $12 million related to environmental incidents occurring prior to the Acquisition. The unaudited pro forma consolidated balance sheet reflects an increase in Receivables - related parties and General partner - MPC.

(w)
Adjustment to reflect the net proceeds from MPLX's aggregate $2,250 million unsecured senior notes offering consisting of two series of senior notes: $1,250 million aggregate principal amount of 4.125% due in March 2027 and $1,000 million aggregate principal amount of 5.2% due in March 2047, as offering proceeds intended to fund the Acquisition. Adjustment to reflect the associated interest expense of $104 million for the year ended December 31, 2016 and 2015, respectively. Additionally, adjustment to reflect the amortization of the issuance costs of $1 million for the year ended December 31, 2016 and 2015, respectively.

(in millions)
 
4.125% senior notes due 2027
$
1,250

5.2% senior notes due 2047
1,000

   Total
$
2,250

Unamortized debt issuance costs
(21
)
Unamortized discount
(9
)
   Total long-term debt
$
2,220


(x)
Adjustment to reflect the $1,511 million cash payment made to MPC in connection with the Acquisition.

(y)
Adjustments to eliminate HST and WHC's annual management fee for the years ended December 31, 2016 and 2015 of $13 million and $1 million, respectively, that is paid to MPLX per the operating and services agreements. Additional adjustment to eliminate the $4 million Accounts receivable - related parties and Payables - related parties as of December 31, 2016 for MPLX and HST/WHC, respectively, related to the management fee.

(z)
Adjustments to remove the net income (loss) effect of $5 million and $(2 million) for the years ended December 31, 2016 and 2015, respectively, related to the distribution of certain of HST's assets to MPC in 2017 prior to the Acquisition.

3. Pro Forma Net Income per Limited Partner Unit

The pro forma basic and diluted net income per limited partner unit is determined by dividing the limited partners' interests in pro forma net income attributable to MPLX by the weighted-average number of common units outstanding for the period. As there is more than one class of participating securities, the two-class method is used when calculating the net income per unit applicable to limited partners. The classes of securities in the calculation include common units, class B units, subordinated units, general partner units, certain equity-based compensation awards and IDRs. Presented in the tables below, all newly issued units in connection with the Acquisition for the year ended December 31, 2016, were assumed to have been outstanding since January 1, 2015 and April 1, 2016, respectively, with allocation of the units based on EBITDA for each of the Acquired Businesses. Additionally, net income attributable to the general partner, IDRs and limited partners was adjusted per the pro forma adjustments and the pro forma basic and diluted weighted average number of common units equals the actual weighted average number of common units outstanding for the years ended December 31, 2016 and 2015, plus the amount of assumed newly issued units.

9


(in millions; except exchange ratio)
Year Ended
December 31, 2016
 
Year Ended
December 31, 2015
 
 
 
 
MWE weighted average common units outstanding - basic

 
176

MarkWest Merger exchange ratio

 
1.09

 

 
192

Common Units per the Contribution Agreement - basic
11

 
5

MPLX weighted average common units outstanding - basic
331

 
79

Pro forma MPLX weighted average common units outstanding - basic
342

 
276

 
 
 
 
MWE weighted average common units outstanding - diluted

 
186

MarkWest Merger exchange ratio

 
1.09

 

 
202

Common Units per the Contribution Agreement - diluted
11

 
5

MPLX weighted average common units outstanding - diluted
338

 
80

Pro forma MPLX weighted average common units outstanding - diluted
349

 
287

 
December 31, 2016
(in millions; except per unit data)
General Partner
 
Limited Partners'
Common Units
 
Total
Basic and diluted earnings per unit:
 
 
 
 
 
Allocation of earnings:
 
 
 
 
 
   Income attributable to MPLX LP
 
 
 
 
$
303

     Distribution declared on Preferred units
 
 
 
 
41

      Income allocated to participating securities
 
 
 
 
1

         Income available to unitholders
 
 
 
 
$
261

 
 
 
 
 
 
      Pro forma distributions declared (including IDRs)
$
211

 
$
715

 
$
926

      Pro forma distributions greater than net income
 
 
 
 
 
        attributable to MPLX LP
(13
)
 
(652
)
 
(665
)
         Net income attributable to MPLX LP
 
 
 
 
 
           unitholders - basic
$
198

 
$
63

 
$
261

 
 
 
 
 
 
Pro forma weighted average units outstanding - basic
 
 
342

 
 
Pro forma weighted average units outstanding - diluted
 
 
349

 
 
Pro forma net income attributable to MPLX LP per
 
 
 
 
 
  Limited partner unit - basic
 
 
$
0.18

 
 
Pro forma net income attributable to MPLX LP per
 
 
 
 
 
  Limited partner unit - diluted
 
 
$
0.18

 
 


10


 
December 31, 2015
(in millions; except per unit data)
General Partner
 
Limited Partners'
Common Units
 
Limited Partner
Subordinated Units
 
Total
Basic and diluted earnings per unit:
 
 
 
 
 
 
 
Allocation of earnings:
 
 
 
 
 
 
 
   Income attributable to MPLX LP
 
 
 
 
 
 
$
226

      Income allocated to participating securities
 
 
 
 
 
 
1

         Income available to unitholders
 
 
 
 
 
 
$
225

 
 
 
 
 
 
 
 
      Pro forma distributions declared (including IDRs)
$
112

 
$
510

 
$
31

 
$
653

      Pro forma distributions greater than net income
 
 
 
 
 
 
 
        attributable to MPLX LP
(8
)
 
(389
)
 
(31
)
 
(428
)
         Net income attributable to MPLX LP
 
 
 
 
 
 
 
           unitholders - basic
$
104

 
$
121

 
$

 
$
225

 
 
 
 
 
 
 
 
Pro forma weighted average units outstanding - basic
 
 
276

 
18

 
 
Pro forma weighted average units outstanding - diluted
 
 
287

 
18

 
 
Pro forma net income attributable to MPLX LP per
 
 
 
 
 
 
 
  Limited partner unit - basic
 
 
$
0.44

 
$

 
 
Pro forma net income attributable to MPLX LP per
 
 
 
 
 
 
 
  Limited partner unit - diluted
 
 
$
0.42

 
$

 
 
4. The MWE Historical Financial Statements
The historical consolidated statement of income of MWE was derived from the consolidated financial statements included in MWE's Quarterly Report on Form 10-Q for the period ended September 30, 2015 and internal results for the period from October 1, 2015 through December 3, 2015. The MWE historical consolidated statement of income as presented includes the following reclassifications to conform to MPLX's financial statement presentation.

 
 
MWE Historical
 
MWE Historical
as presented
Statement of Income for the period ended December 3, 2015
 
 
 
 
Service revenue
 
$
1,131

 
$
880

Rental income
 

 
251

Derivative gain (loss)
 
$
25

 
$

Product sales
 
572

 
597

Facility expenses
 
$
347

 
$

Derivative loss related to facility expenses
 
2

 

Cost of revenues (excludes items below)
 

 
298

Rental expenses
 

 
51

Derivative gain related to purchased product costs
 
$
(2
)
 
$

Purchased product costs
 
423

 
421

Depreciation
 
$
462

 
$

Amortization of intangible assets
 
58

 

Accretion of asset retirement obligations
 
1

 

Depreciation and amortization
 

 
521





11


5. The HST Historical Financial Statements

The historical financial statement information of HST was derived from the financial statements as of December 31, 2016 and for the years ended December 31, 2016 and 2015, incorporated by reference into this Current Report on Form 8-K. The HST historical financial information as presented includes the following reclassifications to conform to MPLX's financial statement presentation.

 
 
HST Historical
 
HST Historical
as presented
Statement of Income for the year ended December 31, 2016
 
 
 
 
Depreciation
 
$
16

 
$

Depreciation and amortization
 

 
16

Interest and other financial income - related parties
 
$
1

 
$

Related party interest and other financial (income) costs
 

 
(1
)
 
 
 
 

Statement of Income for the year ended December 31, 2015
 
 
 
 
Depreciation
 
$
14

 
$

Depreciation and amortization
 

 
14

 
 
HST Historical
 
HST Historical
as presented
Balance Sheet as of December 31, 2016
 
 
 
 
Receivables - related parties
 
$
17

 
$
92

Loans receivable - related parties
 
75

 

Materials and supplies inventories
 
$
1

 
$

Inventories
 

 
1

Accrued liabilities
 
$
13

 
$
4

Accrued property, plant and equipment
 

 
9

Environmental remediation liabilities
 
$
1

 
$

Other current liabilities
 

 
1

Long-term environmental remediation liabilities
 
$
3

 
$

Deferred credits and other liabilities
 

 
3


6. The MPLXT Historical Financial Statements

The historical financial statement information of MPLXT was derived from the financial statements as of December 31, 2016 and for the nine months ended December 31, 2016, incorporated by reference into this Current Report on Form 8-K. The MPLXT historical financial information as presented includes the following reclassifications to conform to MPLX's financial statement presentation.

 
 
MPLXT Historical
 
MPLXT Historical
as presented
Statement of Income for the nine months ended December 31, 2016
 
 
 
 
Depreciation
 
$
29

 
$

Depreciation and amortization
 

 
29

Net interest expense - related parties
 
$
1

 
$

Related party interest and other financial costs
 

 
1



12


 
 
MPLXT Historical
 
MPLXT Historical
as presented
Balance Sheet as of December 31, 2016
 
 
 
 
Receivables - related parties
 
$
33

 
$
38

Loans receivable from related parties
 
5

 

Accrued liabilities
 
$
5

 
$

Accrued property, plant and equipment
 

 
5

Consumer excise taxes payable
 
$
1

 
$

Accrued taxes
 
2

 
3

Environmental remediation liabilities
 
$
2

 
$

Other current liabilities
 

 
2

Long-term deferred income taxes
 
$
1

 
$

Deferred income taxes
 

 
1

Long-term environmental remediation liabilities
 
$
6

 
$

Deferred credits and other liabilities
 

 
6



13