Document:

EXHIBIT 10.3

 

 

NEW OMNIBUS AGREEMENT

 

among

 

WEG Acquisitions, L.P.,

 

Williams Energy Services, LLC,

 

Williams Natural Gas Liquids, Inc.

 

and

 

The Williams Companies, Inc.

 

 

 

NEW OMNIBUS AGREEMENT

 

THIS NEW OMNIBUS AGREEMENT (the “Agreement”)
is entered into on, and effective as of, June 17, 2003 among WEG Acquisitions,
L.P., a Delaware limited partnership (“Buyer”),
Williams Energy Services, LLC, a Delaware limited liability company (“WES”), Williams Natural Gas Liquids, Inc.,
a Delaware corporation (“WNGL”),
and The Williams Companies, Inc., a Delaware corporation (“Williams”, and together with WES and WNGL,
the “Williams Parties”).

 

R E C I T A L S:

 

WHEREAS, Williams,
WES, WNGL, Williams Pipe Line Company, LLC, a Delaware limited liability
company (“WPL”), Williams Energy
Partners, L.P., a Delaware limited partnership (the “MLP”), Williams OLP, L.P., a Delaware limited partnership
(the “OLP”), Williams GP LLC, a
Delaware limited liability company (the “Old
GP”), and Williams Information Technology, Inc. (f/k/a Williams
Information Services Corporation), a Delaware corporation, entered into that
certain Omnibus Agreement, effective as of February 9, 2001, as amended by
the Amendment I thereto, dated January 28, 2002, the Second Amendment thereto,
dated April 11, 2002, and the Third Amendment thereto, dated
September 30, 2002 (as amended, the “Old
Omnibus Agreement”);

 

WHEREAS, Buyer, WES,
WNGL and the Old GP have entered into that certain Purchase Agreement, dated as
of April 18, 2003, as amended by Amendment No. 1 thereto dated as of May 5,
2003 (as amended, the “Purchase Agreement”),
for the purchase and sale of all of the membership interests of WEG GP LLC, a
Delaware limited liability company (“WEG GP
LLC”), all of the common units and subordinated units representing
limited partner interests in the MLP owned by WES and WNGL, and all of the
class B common units representing limited partner interests in the MLP owned by
the Old GP (as contemplated in the Purchase Agreement, the “Transaction”);

 

WHEREAS, the Old
Omnibus Agreement will terminate upon closing of the Transaction (the “Closing” and the date on which the Closing
occurs, the “Closing Date”); and

 

WHEREAS, the parties
hereto specifically intend for each of the entities comprising the Partnership Entities
and the Partnership Group, as applicable, to be third-party beneficiaries with
respect to certain of the rights and benefits herein of the parties hereto.

 

NOW, THEREFORE, in
consideration of the premises and the covenants, conditions, and agreements
contained herein, and for other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, the parties hereto hereby
agree as follows:

 

ARTICLE I

Definitions

 

1.1                               Definitions.

 

(a)                                  Capitalized
terms used herein but not defined shall have the meanings given to them in the
MLP Agreement.

 

1

 

(b)                                 As
used in this Agreement, the following terms shall have the respective meanings
set forth below:

 

“Accounting
Referee” is defined in Section 9.1(a).

 

“Acquisition Date”
means April 11, 2002, the date WES contributed and the MLP acquired all of the
membership interests in WPL.

 

“Affiliate”
of a Person means a Person that directly or indirectly, through one or more
intermediaries, controls, is controlled by, or is under common control with,
the first-mentioned Person.

 

“Applicable Period”
means the period commencing on the Closing Date and terminating on the second
(2nd) anniversary of the Closing Date.

 

“Assignee”
is defined in the MLP Agreement.

 

“Buyer”
is defined in the introduction to this Agreement.

 

“Buyer Entities” means the Buyer and any entity that directly, or indirectly
through one or more intermediaries, is controlled by the Buyer, including WEG
GP LLC (but excluding each entity comprising the Partnership Group).

 

“Buyer Offer” is defined in Section 3.3(a).

 

“Change of Control”
means, with respect to any Person (the “Applicable
Person”), any of the following events:

 

(i)                                     any
sale, lease, exchange or other transfer (in one transaction or a series of
related transactions) of all or substantially all of the Applicable Person’s
assets to any other Person, unless immediately following such sale, lease,
exchange or other transfer such assets are owned, directly or indirectly, by
the Applicable Person;

 

(ii)                                  the
consolidation or merger of the Applicable Person with or into another Person
pursuant to a transaction in which the outstanding Voting Securities of the
Applicable Person are changed into or exchanged for cash, securities or other
property, other than any such transaction where (a) the outstanding Voting
Securities of the Applicable Person are changed into or exchanged for Voting
Securities of the surviving corporation or its parent and (b) the holders of
the Voting Securities of the Applicable Person immediately prior to such
transaction own, directly or indirectly, not less than a majority of the Voting
Securities of the surviving corporation or its parent immediately after such
transaction;

 

(iii)                               a
“person” or “group” (within the meaning of Sections 13(d) or 14(d)(2) of the
Exchange Act) being or becoming the “beneficial owner” (as defined in Rules
13d-3 and 13d-5 under the Exchange Act, except that a person or group shall be
deemed to have “beneficial ownership” of all Voting Securities that such person
or group has the right to acquire, whether such right is exercisable
immediately or only after the 

 

2

 

passage of
time) of more than 50% of all of the then outstanding Voting Securities of the
Applicable Person, except in a merger or consolidation that would not
constitute a Change of Control under clause (ii) above; or

 

(iv)                              solely
with respect to WEG GP LLC, the Continuing Directors of WEG GP LLC cease for
any reason to constitute all of the board of directors of WEG GP LLC then in
office;

 

notwithstanding the foregoing, the events described in clauses (i)
through (iii) of this definition shall not constitute  a Change of Control of WEG GP LLC if the other Person (or “person”
or “group,” in the case of clause (iii)) referred to in such clauses,
immediately prior to such transaction, is an Affiliate of Buyer or WEG GP LLC.

 

“Closing”
is defined in the recitals to this Agreement.

 

“Closing Date”
is defined in the recitals to this Agreement.

 

“Conflicts
Committee” is defined in the MLP Agreement.

 

“Continuing
Directors” means (1) all individuals constituting the board of
directors of WEG GP LLC immediately after the Closing and (2) any new directors
whose nomination for election to the board of directors of WEG GP LLC was
approved by WEG GP LLC  or the board of
directors of WEG GP LLC, or the nominating committee of such board, at a time
that Continuing Directors comprised all of such board of directors.

 

“control”
means the possession, direct or indirect, 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.

 

“Covered Environmental Losses” is defined in Section 4.1.

 

“Environmental Laws” means all federal, state, and local laws, statutes, rules,
regulations, orders, and ordinances relating to protection of health and the
environment including, without limitation, the federal Comprehensive
Environmental Response, Compensation, and Liability Act, the Superfund
Amendments Reauthorization Act, the Resource Conservation and Recovery Act, the
Clean Air Act, the Federal Water Pollution Control Act, the Toxic Substances
Control Act, the Oil Pollution Act, the Safe Drinking Water Act, the Hazardous
Materials Transportation Act, and other environmental conservation and
protection laws, each as amended through the IPO Date.

 

“Exchange Act” means  the Securities Exchange Act of 1934, as
amended.

 

“G&A
Cap Amount” is defined in Section 7.1(a).

 

“General Partner” means WEG GP LLC and its successors as general partner of the
MLP, unless the context otherwise requires.

 

3

 

“IPO Assets”
is defined in Section 4.1.

 

“IPO Date”
means February 9, 2001, the date of the closing of the initial public offering
of common units representing limited partner interests in the MLP.

 

“Limited
Partner” is defined in the MLP Agreement.

 

“MLP”is defined in the introduction to this Agreement.

 

“MLP Agreement” means  the Second Amended and Restated Agreement
of Limited Partnership of the MLP, dated as of September 27, 2002, as amended
by Amendments Nos. 1 and 2 thereto, each dated as of November 15, 2002, as such
agreement may be further amended or supplemented through the Closing Date, to
which reference is hereby made for all purposes of this Agreement. No amendment
or modification to the MLP Agreement subsequent to the Closing Date shall be
given effect for the purposes of this Agreement unless consented to by each of
the parties to this Agreement.

 

“OLP”
is defined in the introduction to this Agreement.

 

“Old Omnibus
Agreement” is defined in the recitals to this
Agreement.

 

“Partnership
Entities” means the General Partner, the MLP, the OLP,
WPL and any entity controlled by any of the foregoing.

 

“Partnership Group” means the Partnership Entities, with the exclusion of the
General Partner.

 

“Payment
Request” is defined in Section 9.1(a).

 

“Person”
meansan individual, corporation, partnership, joint venture, trust, limited
liability company, unincorporated organization or any other entity.

 

“Prospectus” means the MLP’s final prospectus, dated February 5, 2001,
relating to the initial public offering of common units representing limited
partner interests in the MLP, as filed with Securities and Exchange Commission
pursuant to Rule 424(b) under the Securities Act of 1933.

 

“Purchase Agreement”
is defined in the recitals to this Agreement.

 

“Refined Products”
means all grades of motor gasoline, distillate and aviation fuel.

 

“Restricted Assets”
means, (i) with respect to the Williams Entities, for purposes of Article II,
any assets or any business having assets engaged in the activities prohibited
by Section 2.1 and (ii) with respect to the Buyer Entities, for purposes
of Article III, any assets or any business having assets engaged in the
activities prohibited by Section 3.1.

 

4

 

“Services Agreement”
means the Services Agreement, dated the date hereof, among Williams Petroleum
Services, LLC, Williams Alaska Pipeline Company, LLC, and WPL.

 

“Transaction”
is defined in the recitals to this Agreement.

 

“Transition Services
Agreement” means the Transition Services Agreement,
dated the date hereof, between Buyer and Williams.

 

“Upper Cap
Amount” is defined in Section 7.2(c)(i).

 

“Voting Securities” means securities of any class of a Person entitling the holders
thereof to vote on a regular basis in the election of members of the board of
directors or other similar governing body of such Person; provided, however, that in the case of WEG
GP LLC, “Voting Securities” shall refer solely to the membership interests in
WEG GP LLC.

 

“WAP LP”
is defined in Section 5.1.

 

“WEG GP
LLC” is defined in the recitals to this Agreement.

 

“WES”
is defined in the introduction to this Agreement.

 

“Williams”
is defined in the introduction to this Agreement.

 

“Williams
Entities” means Williams and any entity that directly, or indirectly
through one or more intermediaries, controls, is controlled by or is under
common control with Williams, including without limitation, WNGL, WES and the
Old GP.

 

“Williams Offer” is defined in Section 2.3(a).

 

“Williams
Parties” is defined in the recitals to this Agreement.

 

“WNGL”
is defined in the introduction to this Agreement.

 

“WPL” is defined in the recitals to this
Agreement.

 

“WTH LP”
is defined in Section 5.2.

 

“2003
Pre-Closing Stub Period” is defined in Section 7.1(b)(i)(A).

 

“2003
Pre-Closing Cap” is defined in Section 7.1(b)(i)(A).

 

“2003
Post-Closing Stub Period” is defined in Section 7.1(b)(i)(B).

 

“2003
Post-Closing Cap” is defined in Section 7.1(b)(i)(B).

 

“2003
Post-Closing Upper Cap Amount” is defined in Section
7.2(c)(ii)(A).

 

5

 

“2004 Stub
Period” is defined in Section 7.2(c)(iii)(B).

 

“2004 Stub
Period Upper Cap Amount” is defined in Section 7.2(c)(iii)(B).

 

ARTICLE II

Williams Entities’ Business Opportunities

 

2.1                               Williams Entities Restricted Assets.  During the Applicable Period,  the Williams Entities shall be prohibited
from engaging in or acquiring any business having assets engaged in the
following activities:

 

(a)                                  the
transportation, storage or distribution of ammonia or related products in the
United States;

 

(b)                                 the
ownership and operation of facilities for the terminalling and storage of
refined petroleum products in any state in the United States, except Alaska and
Hawaii;

 

(c)                                  Refined
Product transportation (including, without limitation, through joint tariff
arrangements or capacity leases or otherwise) to a delivery point within a
50-mile radius of a Refined Products delivery point owned or supplied by a
Partnership Entity on the Acquisition Date; and

 

(d)                                 Refinery
grade butane transportation from the Koch Pine Bend, MN, refinery, Marathon St.
Paul, MN refinery, ExxonMobil Joilet refinery, BP Whiting, IN refinery and
CITGO Lemont, IL refinery.

 

2.2                               Permitted Exceptions.  Notwithstanding any provision of Section
2.1 to the contrary, any Williams Entity may own and operate Restricted
Assets under the following circumstances:

 

(a)                                  The
Restricted Asset was owned, leased or operated by the Williams Entities on the
Closing Date;

 

(b)                                 The
value of the Restricted Assets acquired after the Closing Date in a transaction
does not exceed $20 million at the time of the acquisition, as determined by
Williams, in its reasonable sole discretion;

 

(c)                                  (i)
The value of the Restricted Assets acquired after the Closing Date in a
transaction exceeds $20 million at the time of acquisition, as determined by
Williams, in its reasonable sole discretion, and (ii) the General Partner has
elected not to cause a member of the Partnership Group to pursue such
opportunity in accordance with the procedures set forth in Section 2.3;
or

 

(d)                                 The
value of the Restricted Assets acquired after the Closing Date in a transaction
represents less than 30% of the consideration paid by Williams or another
Williams Entity in connection with such transaction, as determined by Williams,
in its reasonable sole discretion.

 

6

 

2.3                               Procedures.  In the event that, pursuant to Section 2.2(c), a Williams
Entity acquires Restricted Assets valued or having an original cost in excess
of $20 million at the time of the acquisition, as determined by Williams, in
its reasonable sole discretion, then not later than six (6) months after the
consummation of the acquisition by such Williams Entity of the Restricted
Assets, such Williams Entity shall notify the General Partner of such purchase
and offer the Partnership Group the opportunity to purchase such Restricted
Assets. As soon as practicable, but in any event, within sixty (60) days after
receipt of such notification, the General Partner shall notify the Williams
Entity that either (i) the General Partner has elected not to cause a member of
the Partnership Group to purchase such Restricted Assets, in which event such
Williams Entity shall be forever free to continue to own or operate such
Restricted Assets, or (ii) the General Partner has elected to cause a member of
the Partnership Group to purchase such Restricted Assets, in which event the
following procedures shall be followed:

 

(a)                                  Within
thirty (30) days of receipt of the notice from the General Partner that the
General Partner has elected to cause a member of the Partnership Group to
purchase the Restricted Assets, Williams shall submit an offer to the General
Partner to sell the Restricted Assets (the “Williams
Offer”) to any member of the
Partnership Group selected by the General Partner on the terms and for the
consideration stated in the Williams Offer;

 

(b)                                 Williams
and the General Partner shall negotiate after receipt of such Williams Offer by
the General Partner, the terms on which the Restricted Assets will be sold to a
member of the Partnership Group. Williams shall provide all information
concerning the business, operations and finances of such Restricted Assets as
may be reasonably requested by the General Partner.

 

(i)                                     If
Williams and the General Partner agree on such terms within sixty (60) days after
receipt by the General Partner of the Williams Offer, the General Partner shall
cause a member of the Partnership Group to purchase the Restricted Assets on
such terms as soon as commercially practicable after such agreement has been
reached;

 

(ii)                                  If  Williams and the General Partner are unable
to agree on the terms of a sale during the 60-day period after receipt by the
General Partner of the Williams Offer, Williams and the General Partner will
engage an independent investment banking firm with a national reputation to
determine the fair market value of the Restricted Assets. In determining the
fair market value of the Restricted Assets, the investment banking firm will
have access to the proposed sale and purchase values for the Restricted Assets
submitted by Williams and the General Partner, respectively.  Such investment banking firm will determine
the value of the Restricted Assets within thirty (30) days and furnish Williams
and the General Partner its opinion of such value. The fees of the investment
banking firm’s appraisal will be split equally between Williams and the
MLP.  Upon receipt of such opinion, the
General Partner will have the option, but not the obligation to:

 

7

 

(iii)

 

(A)   cause a member of the
Partnership Group to purchase the Restricted Assets in accordance with the
following process:

 

(1)                                  if
the valuation of the investment banking firm is in the range between the
proposed sale/purchase values of Williams and the General Partner, the General
Partner will have the right to cause a member of the Partnership Group to
purchase the Restricted Assets at the valuation submitted by the investment
banking firm;

 

(2)                                  if
the valuation of the investment banking firm is less than the proposed purchase
value submitted by the General Partner, the General Partner will have the right
to cause a member of the Partnership Group to 
purchase the Restricted Assets for the amount submitted by the General
Partner; and

 

(3)                                  if
the valuation of the investment banking firm is greater than the proposed sale
value submitted by Williams, the General Partner will have the right to cause a
member of the Partnership Group to purchase the Restricted Assets for the
amount submitted by Williams; or

 

(B)   decline to purchase such
Restricted Assets, in which event the Williams Entity forever will be free to
continue to own and operate such Restricted Assets.

 

2.4                               Scope of Prohibition.  Williams and any other Williams Entity shall
only be required to offer Restricted Assets to the General Partner for purchase
by a member of the Partnership Group upon the terms and conditions, including
the price to be paid, contained in this Article II.  Except as provided in this Article II,
each Williams Entity shall be free to engage in any business activity
whatsoever, including those that may be in direct competition with Buyer or any
Partnership Entity.

 

ARTICLE III

Buyer Entities’ Business Opportunities

 

3.1                               Buyer Entities Restricted Assets.  During the Applicable Period,  the Buyer Entities shall be prohibited from
engaging in or acquiring any business having assets engaged in the following
activities:

 

(a)                                  the
transportation, storage or distribution of ammonia or related products in the
United States;

 

(b)                                 the
ownership and operation of facilities for the terminalling and storage of
refined petroleum products in any state in the United States, except Alaska and
Hawaii; and

 

(c)                                  Refined
Product transportation (including, without limitation, through joint tariff
arrangements or capacity leases or otherwise) to a delivery point within a
50-mile

 

8

 

radius of a Refined Products delivery point owned or
supplied by a Partnership Entity on the Acquisition Date.

 

3.2                               Permitted Exceptions.  Notwithstanding any provision of Section
3.1 to the contrary, any Buyer Entity may own and operate Restricted Assets
under the following circumstances:

 

(a)                                  The
Restricted Asset was owned, leased or operated by the Buyer Entities on the
Closing Date;

 

(b)                                 The
Restricted Asset is owned, leased or operated by the Buyer Entities on behalf
of the Partnership Group;

 

(c)                                  The
value of the Restricted Assets acquired after the Closing Date in a transaction
does not exceed $20 million at the time of the acquisition, as determined by
Buyer, in its reasonable sole discretion;

 

(d)                                 (i)
The value of the Restricted Assets acquired after the Closing Date in a
transaction exceeds $20 million at the time of acquisition, as determined by
Buyer, in its reasonable sole discretion, and (ii) the General Partner (with
the approval of the Conflicts Committee) has elected not to cause a member of
the Partnership Group to pursue such opportunity in accordance with the
procedures set forth in Section 3.3; or

 

(e)                                  The
value of the Restricted Assets acquired after the Closing Date in a transaction
represents less than 30% of the consideration paid by Buyer or another Buyer
Entity in connection with such transaction, as determined by Buyer, in its
reasonable sole discretion.

 

3.3                               Procedure.  In the event that, pursuant to Section
3.2(d), a Buyer Entity acquires Restricted Assets valued or having an
original cost in excess of $20 million at the time of the acquisition, as
determined by Buyer, in its reasonable sole discretion, then not later than six
(6) months after the consummation of the acquisition by such Buyer Entity of
the Restricted Assets, such Buyer Entity shall notify the General Partner of
such purchase and offer the Partnership Group the opportunity to purchase such
Restricted Assets. As soon as practicable, but in any event, within sixty (60)
days after receipt of such notification, the General Partner shall notify the
Buyer Entity that either (i) the General Partner has elected (with the approval
of the Conflicts Committee) not to cause a member of the Partnership Group to
purchase such Restricted Assets, in which event such Buyer Entity shall be
forever free to continue to own or operate such Restricted Assets, or (ii) the
General Partner (with the approval of the Conflicts Committee) has elected to
cause a member of the Partnership Group to purchase such Restricted Assets, in
which event the following procedures shall be followed:

 

(a)                                  Within
thirty (30) days of receipt of the notice from the General Partner that General
Partner has elected to cause a member of the Partnership Group to purchase the
Restricted Assets, the Buyer Entity shall submit an offer to the General
Partner to sell the Restricted Assets (the “Buyer
Offer”) to any member of the
Partnership Group selected by the General Partner on the terms and for the
consideration stated in the Buyer Offer;

 

9

 

(b)                                 The
Buyer Entity and the General Partner shall negotiate after receipt of such
Buyer Offer by the General Partner, the terms on which the Restricted Assets
will be sold to a member of the Partnership Group. The Buyer Entity shall
provide all information concerning the business, operations and finances of
such Restricted Assets as may be reasonably requested by the General Partner.

 

(i)                                     If
the Buyer Entity and the General Partner agree on such terms within sixty (60)
days after receipt by the General Partner of the Buyer Offer, a member of the
Partnership Group shall purchase the Restricted Assets on such terms as soon as
commercially practicable after such agreement has been reached;

 

(ii)                                  If
the Buyer Entity and the General Partner are unable to agree on the terms of a
sale during the 60-day period after receipt by the General Partner of the Buyer
Offer, the Buyer Entity and the General Partner will engage an independent
investment banking firm with a national reputation to determine the fair market
value of the Restricted Assets. In determining the fair market value of the
Restricted Assets, the investment banking firm will have access to the proposed
sale and purchase values for the Restricted Assets submitted by the Buyer
Entity and the General Partner, respectively. 
Such investment banking firm will determine the value of the Restricted
Assets within thirty (30) days and furnish the Buyer Entity and the General
Partner its opinion of such value. The fees of the investment banking firm’s
appraisal will be split equally between the Buyer Entity and the MLP.  Upon receipt of such opinion, the General
Partner will have the option, but not the obligation to:

 

(iii)

 

(A)   cause a member of the Partnership Group to
purchase the Restricted Assets in accordance with the following process:

 

(1)                                  if
the valuation of the investment banking firm is in the range between the
proposed sale/purchase values of the Buyer Entity and the General Partner, a
member of the Partnership Group will have the right to purchase the Restricted
Assets at the valuation submitted by the investment banking firm;

 

(2)                                  if
the valuation of the investment banking firm is less than the proposed purchase
value submitted by the General Partner, a member of the Partnership Group will
have the right to  purchase the
Restricted Assets for the amount submitted by the General Partner; and

 

(3)                                  if
the valuation of the investment banking firm is greater than the proposed sale
value submitted by the Buyer Entity, a member of the Partnership Group will
have the right to purchase the Restricted Assets for the amount submitted by
the Buyer Entity; or

 

10

 

(B)   decline to purchase such Restricted Assets,
in which event the Buyer Entity forever will be free to continue to own and
operate such Restricted Assets.

 

3.4                               Scope of Prohibition.  Except as provided in this Article III,
each Buyer Entity shall be free to engage in any business activity whatsoever,
including those that may be in direct competition with any member of the
Partnership Group.

 

ARTICLE
IV

Environmental Indemnification

 

4.1                               WES Indemnification for Covered
Environmental Losses. 
Williams and WES, jointly and severally, shall indemnify, defend and
hold harmless the Partnership Entities from and against any Covered
Environmental Losses relating to the assets of the Partnership Entities described
in the Prospectus that arose prior to the IPO Date (the “IPO Assets”) that become known by February
9, 2004 and that exceed all amounts recovered or recoverable by any Partnership
Entity under contractual indemnities from third Persons or under any applicable
insurance policies.  “Covered Environmental Losses” mean those
non-contingent environmental losses, costs, damages and expenses suffered or
incurred by the Partnership Entities arising from correction of violations of,
or performance of remediation required by, Environmental Laws in effect at the
IPO Date due to events and conditions associated with the operation of the IPO
Assets and occurring before the IPO Date.

 

4.2                               Limitations.  Williams and WES shall have no
indemnification obligation under Section 4.1 for claims made after
February 9, 2004.  The aggregate
liability of Williams and WES in respect of all Covered Environmental Losses
under Section 4.1 shall not exceed $13.3 million, representing $15
million less amounts previously
paid by Williams or WES to the Partnership Entities pursuant to
Section 3.1 of the Old Omnibus Agreement.

 

ARTICLE
V

Right-of-Way Indemnification

 

5.1                               WNGL Right-of-Way Indemnification.  Williams and WNGL, jointly and severally,
shall indemnify, defend and hold harmless the Partnership Entities and their
successors or assigns until February 9, 2016 from and against any losses,
costs, damages, expenses and fees suffered or incurred by any of the
Partnership Entities or their successors or assigns as a result of (a) the
failure of Williams Ammonia Pipeline, L.P., a Delaware limited partnership (“WAP LP”),
or its successors or assigns to be the owner of such valid and indefeasible
easement rights in and to the easements and rights of way in which the ammonia
pipeline was located as of the IPO Date and as are necessary to enable WAP LP
and its successors and assigns to continue to own and operate the ammonia
pipeline in the manner that it was owned and operated as of the IPO Date; and
(b) the failure of WAP LP or its successors and assigns to have the consents
and permits necessary to allow such pipeline to cross the roads, waterways,
railroads and other areas upon which the ammonia pipeline was located as of the
IPO Date.

 

5.2                               WES Right-of-Way Indemnification.  Williams and WES, jointly and severally,
shall indemnify, defend and hold harmless, the Partnership Entities and their
successors and

 

11

 

assigns, until February 9,
2016, from and against any losses, costs, damages, expenses and fees suffered
or incurred by any of the Partnership Entities or their successors or assigns
as a result of (a) the failure of Williams Terminals Holdings, L.P. , a
Delaware limited partnership (“WTH LP”),
or its successors and assigns to be the owner of valid and indefeasible
easement rights in and to the easements and rights of way in which the
pipelines that are associated with the marine terminal facilities at Galena
Park, Texas, Corpus Christi, Texas and Marrero, Louisiana were located as of
the IPO Date and that are necessary to enable WTH LP and its successors and
assigns to continue to own and operate the pipelines in all material respects
in the manner that such pipelines were owned and operated prior to the IPO
Date; and (b) the failure of WTH LP or its successors and assigns to have the
consents and permits necessary to allow such pipelines to cross roads,
waterways, railroads and other areas upon which such pipelines were located as
of the IPO Date.

 

ARTICLE
VI

Environmental and Right-of-Way Indemnification Procedures

 

6.1                               (a)                                  Buyer agrees that within a reasonable period of
time after any Partnership Entity becomes aware of facts giving rise to a claim
for indemnification pursuant to Sections 4.1, 5.1 or 5.2,
Buyer will use its reasonable best efforts to cause such Partnership Entity to
provide notice thereof in writing to Williams, specifying the nature of and
specific basis for such claim.

 

(b)                                 Except
as provided in this Section 6.1(b), Williams shall have the right to
control all aspects of the defense of (and any counterclaims with respect to)
any claims brought against the Partnership Entities that are covered by the
indemnification set forth in Sections 4.1, 5.1 or 5.2,
including, without limitation, the selection of counsel, determination of
whether to appeal any decision of any court and the settling of any such matter
or any issues relating thereto; provided, however, that no such settlement
shall be entered into without the consent of the Partnership Entities unless it
includes a full and unconditional release of the Partnership Entities from all
liability with respect to such matter or issues, as the case may be, the sole
relief provided is monetary damages that are paid in full by the Williams
Parties, and there is no admission or statement of fault or culpability on the
part of any Partnership Entity.

 

(c)                                  Buyer
agrees to use its reasonable best efforts to cause the Partnership Entities, at
their own cost and expense, to cooperate fully with Williams with respect to
all aspects of the defense of any claims covered by the indemnification set
forth in Sections 4.1, 5.1 or 5.2, including, without
limitation, the prompt furnishing to Williams of any correspondence or other
notice relating thereto that the Partnership Entities may receive, permitting
the names of the Partnership Entities to be utilized in connection with such
defense, the making available to Williams of any files, records or other
information of the Partnership Entities that Williams reasonably considers
relevant to such defense and the making reasonably available to Williams,
during normal business hours, of any employees of the Partnership Entities; provided,
however, that in connection therewith Williams agrees to use
reasonable best efforts to minimize the impact thereof on the operations of such
Partnership Entities. In no event shall the obligation of Buyer to use its
reasonable best efforts to cause the Partnership Entities to cooperate with
Williams as set forth in the immediately preceding sentence be construed as
imposing upon the Buyer or the Partnership Entities an obligation to hire and
pay for counsel in connection with the defense of any claims covered by the
indemnification set forth in this Article VI, it being agreed

 

12

 

that the Williams Parties, jointly and severally,
shall pay the fees and expenses of such counsel; provided, further, that Buyer or the Partnership Entities may hire and pay
for separate counsel in connection with any such defense, at the Buyers or the
MLP’s own option, cost and expense, as the case may be; provided, further, that the Williams
Parties, jointly and severally, shall pay the fees and expenses of separate
counsel for the Buyer or the Partnership Entities if (i) the Williams Parties
have agreed to pay such fees and expenses or (ii) counsel for the Williams
Parties reasonably determines that representation of both the Williams Parties,
on the one hand, and the Partnership Entities, on the other hand, by the same
counsel would create a conflict of interest. 
Williams agrees to keep any counsel hired by the Partnership Entities
reasonably informed as to the status of any such defense, but Williams shall
have the right to retain sole control over such defense except as provided
above.

 

(d)                                 In
determining the amount of any loss, cost, damage or expense for which any of
the Partnership Entities are to be indemnified under Sections 4.1, 5.1
or 5.2, the gross amount of the indemnification will be reduced by (i)
any insurance proceeds realized or to be realized by the Partnership Entities,
and such correlative insurance benefit shall be net of any incremental
insurance premium that becomes due and payable by the Partnership Entities as a
result of such claim and (ii) all amounts recovered or recoverable by any
Partnership Entity under contractual indemnities from third Persons as
described in Section 4.1.

 

ARTICLE
VII

General and Administrative Expenses

 

7.1                               G&A
Cap Amount.

 

(a)                                  Subject
to Section 7.2, the amount of general and administrative expenses
reimbursed by the Partnership Group to the Buyer Entities (or, in the case of Section
7.1(b)(i)(A) below, to the Williams Entities) for any MLP fiscal year shall
not exceed the amounts calculated pursuant to Section 7.1(b) (for any
MLP fiscal year, the “G&A Cap Amount”).

 

(b)                                 (i)                                     2003 Fiscal Year.  For the MLP fiscal year ending on December
31, 2003, the G&A Cap Amount shall be calculated as follows:

 

(A)   For the period beginning on January 1, 2003
and ending on the day immediately preceding the Closing Date (the “2003 Pre-Closing Stub Period”), the amount
of general and administrative expenses reimbursed by the Partnership Group to
the Williams Entities shall not exceed $37.9 million times a fraction, (X) the
numerator of which is the number of successive whole months beginning with
January 2003 and ending with the month in which the Closing occurs and (Y) the
denominator of which is twelve (12) (the “2003
Pre-Closing Cap”). To the extent that the Partnership Group
reimbursed the Williams Entities for general and administrative expenses
incurred in 2003 in excess of the 2003 Pre-Closing Cap, the Williams Parties
shall reimburse the MLP for any such excess amounts and shall make such payment
no later than thirty (30) days following the Closing Date.  To the extent that the Williams Entities
paid unreimbursed general and administrative expenses up to the 2003 Pre-

 

13

 

Closing Cap, Buyer shall
use commercially reasonable efforts to cause the MLP to, make payment to the
appropriate Williams Entity of such unreimbursed amount no later than thirty
(30) days following the Closing Date.

 

(B)   For the period beginning with the Closing
Date and ending on December 31, 2003 (the “2003
Post-Closing Stub Period”), the amount of general and administrative
expenses reimbursed by the Partnership Group to the Buyer Entities shall not
exceed the sum of (1) the product of $37.9 million (as may be adjusted pursuant
to Section 7.1(b)(iii)) times a fraction, (X) the numerator of which is
the number of successive whole months beginning with the month following the
month in which the Closing occurs and ending with December 2003 and (Y) the
denominator of which is twelve (12) (the “2003
Post-Closing Cap”), plus
(2) the amount of general and administrative expenses incurred by or on behalf
of the Partnership Group in excess of the 2003 Post-Closing Upper Cap Amount
less any amounts duly reimbursed by the Williams Parties to the Buyer Entities
pursuant to Section 7.2(c)(iii)(A).

 

(ii)                                  Succeeding Fiscal Years.  For each succeeding MLP fiscal year
beginning with the MLP fiscal year ending December 31, 2004, the G&A Cap
Amount shall be calculated as follows:

 

(A)   The G&A Cap Amount from the preceding
fiscal year (as may be adjusted pursuant to Section 7.1(b)(iii)) shall
be increased by the greater of (A) 7% per year and (B) the percentage increase
in the Consumer Price Index — All Urban Consumers, U.S. City Average, Not
Seasonally Adjusted.

 

(B)   For purposes of calculating the initial
increase in the G&A Cap Amount for the MLP fiscal year ending on December
31, 2004, the G&A Cap Amount for the 2003 fiscal year shall be $37.9
million (as may be adjusted pursuant to Section 7.1(b)(iii) for
acquisitions, construction, capital improvements, replacements or expansions
occurring in 2003).

 

(iii)                               Adjustment for Acquisitions and Other Events.  If, after the Closing Date, the Partnership
Group (A) makes an acquisition, (B) constructs or causes to be constructed any
assets to be owned, leased or operated by any member of the Partnership Group
or (C) makes or causes to be made any capital improvements, replacements or
expansions of any assets owned, leased or operated by any member of the
Partnership Group, the amount of general and administrative expenses reimbursed
by the Partnership Group to the Buyer Entities will be increased by the Buyer’s
good faith reasonable estimate of the additional amount of annual general and
administrative expenses to be incurred by or on behalf of the Partnership Group
with respect to such acquisition, construction, capital improvement,
replacement or expansion.  The pro rata
portion of the additional general and administrative expenses shall be added to
the G&A Cap Amount and the Upper Cap Amount in the year in which such
acquisition, construction, capital 

 

14

 

improvement, replacement
or expansion occurs for the portion of the year occurring thereafter and the
full amount of such general and administrative expenses shall be added to the
G&A Cap Amount and the Upper Cap Amount thereafter.

 

7.2                               Certain Limitations.  The provisions of Section 7.1 shall
be subject to the following limitations:

 

(a)                                  Expiration
of G&A Cap.  The amount of
general and administrative expenses reimbursed by the Partnership Group to the
Buyer Entities shall not be limited under this Agreement with respect to any
fiscal year ending after December 31, 2010.

 

(b)                                 Certain
Expenses Not Included.  General and
administrative expenses with respect to the following matters shall be excluded
in determining limitations herein on the amount of general and administrative
expenses that are required to be reimbursed by the Partnership Group or the
Williams Parties to the Buyer Entities:

 

(i)                                     expenses
associated with equity-based incentive compensation plans;

 

(ii)                                  general
and administrative expenses incurred by Buyer that are covered under Section
4.15 to the Purchase Agreement, regardless of whether in excess of the Expense
Limit (as defined in Section 4.15 to the Purchase Agreement), it being
understood that to the extent the Williams Parties reimburse Buyer for general
and administrative expenses in excess of the Expense Limit, Buyer shall
promptly pay any such reimbursements to the MLP by wire transfer of immediately
available funds to an account or accounts designated in writing by the MLP; or

 

(iii)                               general
and administrative expenses incurred in connection with providing Services (as
defined by the Services Agreement) under the Services Agreement.

 

(c)                                  Upper
Cap Amount.

 

(i)                                     Notwithstanding
the limitations in Section 7.1 on the Partnership Group’s reimbursement
obligations for general and administrative expenses in excess of the G&A
Cap Amount, the Partnership Group (or in the case of Section 7.2(c)(iii),
the Williams Parties) shall be required to reimburse the Buyer Entities for
general and administrative expenses incurred on behalf of the Partnership Group
in any MLP fiscal year in excess of the Upper Cap Amount as calculated below
(the “Upper Cap Amount”).

 

(ii)                                  The
Upper Cap Amount shall be calculated as follows:

 

(A)   For the 2003 Post-Closing Stub Period, the
Upper Cap Amount shall be equal to the product of $49.3 million (as may be
adjusted pursuant to Section 7.1(b)(iii)) times a fraction, (X) the
numerator of which is the number of successive whole months beginning with the
month following the month in which the Closing occurs and ending with month of

 

15

 

December 2003 and (Y) the
denominator of which is twelve (12) (the “2003
Post-Closing Upper Cap Amount”).

 

(B)   For each succeeding MLP fiscal year
beginning with the MLP fiscal year ending December 31, 2004, the Upper Cap
Amount shall be calculated as follows:

 

(1)                                  The
Upper Cap Amount from the preceding fiscal year (as may be adjusted pursuant to
Section 7.1(b)(iii)) shall be increased annually by the lesser of (A)
2.5% per year and (B) the percentage increase in the Consumer Price Index — All
Urban Consumers, U.S. City Average, Not Seasonally Adjusted.

 

(2)                                  For
purposes of calculating the initial increase in the Upper Cap Amount for the
MLP fiscal year ending on December 31, 2004, the Upper Cap Amount for the 2003
fiscal year shall be $49.3 million (as may be adjusted pursuant to Section
7.1(b)(iii) for acquisitions, construction, capital improvements,
replacements and expansions occurring in 2003).

 

(iii)                               For
the twelve months immediately following the Closing Date, the Williams Parties
shall be required to reimburse the Buyer Entities for any and all general and
administrative expenses incurred by or on behalf of the Partnership Group in
excess of the Upper Cap Amount, as follows:

 

(A)   If, for the 2003 Post-Closing Stub Period,
the general and administrative expenses incurred by or on behalf of the
Partnership Group are in an amount in excess of 2003 Post-Closing Upper Cap
Amount, the Williams Parties, jointly and severally, shall be required to
reimburse the Buyer Entities in full for the amount of such excess and shall
make such payment no later than thirty (30) days after the last day of the 2003
Post-Closing Stub Period by wire transfer of immediately available funds to an
account or accounts designated in writing by the Buyer Entities.

 

(B)   If, for the period beginning on January 1,
2004 and ending on the last day of the month in which the first anniversary of
the Closing Date occurs (the “2004 Stub
Period”), the general and administrative expenses incurred by or on
behalf of the Partnership Group exceed the Upper Cap Amount for the MLP fiscal
year ended December 31, 2004 multiplied by a fraction, (X) the numerator of
which is the number of successive months beginning with January 2004 and ending
with the month in which the 2004 Stub Period ends and (Y) the denominator of
which is twelve (12) (the “2004 Stub Period Upper Cap Amount”), the Williams
Parties, jointly and severally, shall be required to reimburse the Buyer
Entities in full for the amount of such excess and shall make such payment no
later than thirty (30) days after the last day of the 2004 Stub Period by wire
transfer of immediately available funds to an account or accounts designated in

 

16

 

writing by the Buyer
Entities.  If Buyer becomes obligated to
pay the 5% premium for transition services pursuant to the final proviso in
Section 4(a) of the Transition Services Agreement, then for purposes of the
immediately preceding sentence, the 2004 Stub Period Upper Cap Amount shall be
increased by the portion of such premium constituting general and
administrative expenses of the Partnership Group attributable to the 2004 Stub
Period.

 

(C)   Buyer shall, and shall cause each of the
other Buyer Entities to, use good faith efforts to minimize the amount of
general and administrative expenses incurred by any of the Buyer Entities and
for which the Williams Parties would be required to reimburse the Buyer
Entities under this Section 7.2(c)(iii).

 

(D)   Notwithstanding any other provision of this
Article VII, the Williams Entities will not have any obligations to
reimburse the Buyer Entities for general and administrative expenses incurred
on behalf of the Partnership Group or otherwise, except as specifically
provided in this Section 7.2(c)(iii).

 

(iv)                              Except
as provided in Section 7.2(c)(iii), the Partnership Group shall be required
to reimburse the Buyer Entities for any and all general and administrative
expenses in excess of the Upper Cap Amount incurred by or on behalf of the
Partnership Group in any MLP fiscal year.

 

7.3                               No Affect on Section 7.4 of the MLP
Agreement.  Nothing in
this Article VII is intended or shall be construed to affect or modify
the terms and conditions of Section 7.4 of the MLP Agreement.

 

ARTICLE
VIII

Capital Expenditures

 

8.1                               Williams Reimbursement of
Partnership Group Maintenance Capital Expenditures.  The Williams Entities will reimburse the
Partnership Group in each of the MLP’s 2003 and 2004 fiscal years for any
reasonable and customary maintenance capital expenditures made by the
Partnership Group, in accordance with past practices, to maintain the assets of
WPL, in either year, in excess of $19 million; provided, that the Williams
Entities shall not be required to reimburse the Partnership Group in excess of
an aggregate amount of $15 million under this Section 8.1.

 

ARTICLE
IX

Miscellaneous

 

9.1                               Payments; Disputed Amounts; Audit
Rights.

 

(a)                                  Except
as otherwise provided herein, any payments to be made by the Williams Entities
to Buyer or the Partnership Entities under this Agreement shall be made by the
Williams Entities within sixty (60) days of receipt of a written request for
such payment from

 

17

 

Buyer (which request shall contain a description in
reasonable detail of the individual costs and expenses that comprise the
aggregate amount of the payment requested) (a “Payment
Request”). In the event of a good faith dispute as to the amount of
such payment, the applicable Williams Entity shall give written notice of such
dispute on or before the due date with respect to all or any portion of  the Payment Request, with the particulars of
such dispute. Upon receipt of such notice, Buyer shall, or shall use its
reasonable best efforts to cause the Partnership Entities to, furnish to the
applicable Williams Entity additional supporting documentation to reasonably
substantiate the amount of the Payment Request.  Upon delivery of such additional documentation, the applicable
Williams Entity and the Buyer Entities shall cooperate and use their reasonable
best efforts to resolve such dispute. 
If they are unable to resolve their dispute within twenty (20) business
days of the delivery of such additional supporting documentation to the
applicable Williams Entity, then the dispute shall be referred for resolution
by a firm of independent accountants of nationally recognized standing
reasonably satisfactory to each of Buyer and the applicable Williams Entity
(the “Accounting
Referee”), which shall determine the disputed amounts within thirty
(30) days of the referral of such dispute to such Accounting Referee.  The determination of the Accounting Referee
shall not require the applicable Williams Entity to pay more than the amount in
dispute nor require Buyer or any Partnership Entity to return any amount
previously paid by the applicable Williams Entity.  The fees and expenses of the Accounting Referee shall be borne
equally by the applicable Williams Entity, on the one hand, and Buyer or a
member of the Partnership Entities, on the other hand.  The determination of the Accounting Referee
shall be finally binding.  If any
dispute is resolved in favor of Buyer or any Partnership Entity, the applicable
Williams Entity shall make payment to Buyer or the applicable Partnership
Entity within thirty (30) days of resolution of the dispute.  Notwithstanding the foregoing, in no event
shall the Williams Entities be entitled to withhold any amounts other than
those portions of the applicable payment that are in dispute.

 

(b)                                 Williams
shall have the right, at any time within six (6) months after the date of any
payment by Williams to Buyer or the Partnership Entities pursuant to a Payment
Request to audit those books and records of Buyer and/or any Partnership Entity
that incurred costs or expenses attributable to such Payment Request or which
books and records relate thereto, to verify the amount reflected on such
Payment Request.  Any such audit shall
be conducted during normal business hours by Williams or its designated auditor
after ten (10) days prior written notice to Buyer, at Williams’ sole cost and
expense, in the offices of Buyer and the relevant Partnership Entities or such
other location as may be mutually agreed. 
Buyer shall cooperate and shall use its reasonable best efforts to cause
any relevant Partnership Entity to cooperate with and provide reasonable
assistance to Williams and/or its auditor in connection with the performance of
any such audit.  Williams shall assert
any claim for refund of amounts reimbursed to Buyer or the Partnership Entities
under the audited Payment Request within sixty (60) days after the completion
of the audit.  Buyer shall have sixty
(60) days from receipt of Williams’ claim for refund to respond.  If Buyer does not dispute Williams’ refund
claim, Buyer or the applicable Partnership Entity shall pay such refund within
such 60-day period.  Should Buyer
dispute the claim and refuse to pay any refund claim by Williams resulting from
the exercise of Williams’ audit rights, the parties will refer the dispute to
an Accounting Referee in the manner described in Section 9.1(a) above.

 

18

 

9.2                               Third-Party Beneficiary; Assignment;
Enforcement.

 

(a)                                  Each
of Buyer and the Williams Parties specifically intends that each entity
comprising the Partnership Entities or the Partnership Group, as applicable, shall
be entitled to assert rights and remedies hereunder as third-party
beneficiaries hereto with respect to those provisions of this Agreement
affording a right, benefit or privilege to any such entity.  Notwithstanding anything else in this
Agreement, pursuant to Section 4.25 of the Purchase Agreement, no provision of
this Agreement with respect to which any of the entities comprising the
Partnership Entities or the Partnership Group, as applicable, is a third-party
beneficiary shall be amended, modified, waived or terminated by a party hereto
without the express prior written approval of the MLP, and if the General
Partner, in its capacity as general partner of the MLP, determines in its
reasonable discretion that such an amendment, modification, waiver or
termination is reasonably likely to adversely affect the holders of common
units representing limited partner interests in the MLP, such amendment,
modification, waiver of termination must also be approved by Special Approval
(as such term is defined in the MLP Agreement).

 

(b)                                 No
party shall have the right to assign its rights or obligations under this
Agreement without the consent of the other parties hereto.

 

(c)                                  The
parties hereto agree that irreparable damage would occur if any of the
provisions of this Agreement were not performed in accordance with their
specific terms or were otherwise breached. 
It is accordingly agreed that the parties shall be entitled to an
injunction or injunctions to prevent breaches of this Agreement and to enforce
specifically the terms and provisions hereof, this being in addition to any
other remedy to which they are entitled at law or in equity.  The third-party beneficiaries to whom
certain rights and remedies under this Agreement extend as contemplated under Section
9.2(a) above shall also be entitled to enforce this Agreement in the manner
provided in this Section 9.2(c). 
Notwithstanding anything else in this Agreement, the provisions of this
Agreement are enforceable solely by the parties to this Agreement and the third-party
beneficiaries identified in Section 9.2(a) above, and no Limited Partner
(other than Buyer), Assignee or other Person (other than a permitted assignee
under Section 9.2(b)) may enforce any provision of this Agreement or
compel any party to this Agreement to comply with the terms of this Agreement.

 

9.3                               Choice of Law; Submission to Jurisdiction.  This
Agreement shall be governed and construed in accordance with the internal and
substantive laws of New York, and without regard to any conflicts of laws
concepts that would apply the substantive law of some other jurisdiction. Each
party hereby submits to the jurisdiction of the state and federal courts in the
State of New York and to venue in the Borough of Manhattan in the City of New
York, New York.

 

9.4                               Notice.  All notices or requests or consents provided
for or permitted to be given pursuant to this Agreement must be in writing and
must be given by depositing same in the United States mail, addressed to the
Person to be notified, postpaid, and registered or certified with return
receipt requested or by delivering such notice in person or by telecopier or
telegram to such party. Notice given by personal delivery or mail shall be
effective upon actual receipt. Notice given by telegram or telecopier shall be
effective upon actual receipt if received during the recipient’s normal
business hours, or at the beginning of the recipient’s next business day after
receipt if not received during the recipient’s normal business hours. All
notices to be sent to a party pursuant to this Agreement shall be sent to or
made at the address set forth below such

 

19

 

party’s signature to this
Agreement, or at such other address as such party may stipulate to the other
parties in the manner provided in this Section 9.4.

 

9.5                               Entire Agreement.  This Agreement, together with the provisions
of the Purchase Agreement relating hereto, represent the entire agreement and
understanding of the parties hereto and thereto with reference to the
transactions set forth herein.  This
Agreement, together with the provisions of the Purchase Agreement relating
hereto, supercede all prior negotiations, discussions, correspondence,
communications, understandings and agreements between the parties relating to
the transactions set forth herein and all prior drafts hereof (including
Exhibit 1.2(a)(iv)(1) to the Purchase Agreement).  No prior drafts hereof and no words or phrases from any such
prior drafts shall be admissible into evidence in any action or suit involving
this Agreement.

 

9.6                               Termination
of Certain Obligations Upon Change of Control

 

(a)                                  Upon
a Change of Control of Williams, the obligations of the Williams Entities under
Article II shall terminate.

 

(b)                                 Upon
a Change of Control of Buyer or WEG GP LLC, the obligations of the Buyer
Entities under Article III shall terminate.

 

(c)                                  Upon
a Change of Control of Buyer or WEG GP LLC, the obligations of the Williams
Parties under Article V shall terminate as of the later to
occur of (A) the date of such Change of Control and (B) the expiration of all
of the obligations of WES pursuant to Sections 10.1(a) (with respect to
breaches of environmental representations, warranties, agreements or
covenants), 10.1(b) and 10.1(c) of that certain Contribution
Agreement dated as of April 11, 2002 by and among WES, the Old GP and the MLP
and the expiration of all of the corresponding obligations of Williams pursuant
to that certain Corporate Guarantee in favor of the General Partner, dated as
of March 14, 2003, of Williams.

 

(d)                                 Upon
a Change of Control of Buyer or WEG GP LLC, Article VII and the
limitations therein on the amount of general and administrative expenses for
which the Partnership Group is required to reimburse the Buyer Entities shall
terminate (including the provisions therein relating to the reimbursement
obligations of the Williams Parties in favor of the Buyer Entities).

 

9.7                               Effect of Waiver or Consent.  No waiver of any provision of this Agreement
shall be effective unless set forth in writing by the party to be bound
thereby.  Except as otherwise expressly
provided therein, no waiver or consent, express or implied, by any party to or
of any breach or default by any Person in the performance by such Person of its
obligations hereunder shall be deemed or construed to be a consent or waiver to
or of any other breach or default in the performance by such Person of the same
or any other obligations of such Person hereunder. Failure on the part of a
party to complain of any act of any Person or to declare any Person in default,
irrespective of how long such failure continues, shall not constitute a waiver
by such party of its rights hereunder until the applicable statute of
limitations period has run.

 

9.8                               Amendment
or Modification.  Subject to the second sentence of Section 9.2(a), this
Agreement may be amended or modified from time to time only by the written
agreement of

 

20

 

all the
parties hereto. Each such instrument shall be reduced to writing and shall be
designated on its face an “Amendment” or an “Addendum” to this Agreement.

 

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

 

9.10                        Severability.  If any provision of this
Agreement or the application thereof to any Person or circumstance shall be
held invalid or unenforceable to any extent, the remainder of this Agreement
and the application of such provision to other Persons or circumstances shall
not be affected thereby and shall be enforced to the greatest extent permitted
by law.

 

9.11                        Gender, Parts, Articles and Sections.  Whenever the context requires, the gender of
all words used in this Agreement shall include the masculine, feminine and
neuter, and the number of all words shall include the singular and plural.  Unless otherwise provided, all references to
Article numbers and Section numbers refer to Articles and Sections of this
Agreement.

 

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

 

9.13                        Withholding or Granting of Consent.  Except as otherwise expressly provided
herein, each party may, with respect to any consent or approval that it is
entitled to grant pursuant to this Agreement, grant or withhold such consent or
approval in its sole and uncontrolled discretion, with or without cause, and
subject to such conditions as it shall deem appropriate.

 

9.14                        U.S. Currency.  All sums and amounts payable to or to be payable pursuant to the
provisions of this Agreement shall be payable in coin or currency of the United
States of America that, at the time of payment, is legal tender for the payment
of public and private debts in the United States of America.

 

9.15                        Laws and Regulation.  Notwithstanding any provision of this Agreement to the contrary, no
party to this Agreement shall be required to take any act, or fail to take any
act, under this Agreement if the effect thereof would be to cause such party to
be in violation of any applicable law, statute, rule or regulation.

 

9.16                        Waiver of Right of First Refusal.  The Williams Parties hereby agree that,
effective as of the date hereof, any and all rights, benefits and privileges of
WES and any other Williams Entity under Section 11.10 of that certain
Contribution Agreement dated as of April 11, 2002 by and among WES, the Old GP
and the MLP are hereby forever terminated in all respects, and WES, WNGL and
Williams hereby waive any and all rights, benefits and privileges of WES and
any other Williams Entity under such section of such agreement.

 

21

 

IN WITNESS
WHEREOF, the parties have executed this Agreement on, and effective as of, the
date first written above.

 

	
   

  	
  THE BUYER

  
	
   

  	
   

  	
   

  
	
   

  	
  WEG ACQUISITIONS, L.P.

  
	
   

  	
   

  	
   

  
	
   

  	
  By: WEG Acquisition Management, LLC

  
	
   

  	
  its General Partner

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  Justin S. Huscher

  	
   

  
	
   

  	
   

  	
  Name:    Justin S. Huscher

  
	
   

  	
   

  	
  Title:     Authorized Signatory

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  Pierre F. Lapeyre, Jr

  	
   

  
	
   

  	
   

  	
  Name:    Pierre F. Lapeyre, Jr.

  
	
   

  	
   

  	
  Title:     Authorized Signatory

  
	
   

  	
   

  	
   

  
	
   

  	
  Address for Notice:

  
	
   

  	
   

  	
   

  
	
   

  	
  One Williams Center

  
	
   

  	
  Tulsa, Oklahoma  74172

  
	
   

  	
  Facsimile: 918-573-6928

  
	
   

  	
  Attention: Mr. Lonny Townsend

  
	
   

  	
   

  	
   

  
	
   

  	
  THE WILLIAMS PARTIES

  
	
   

  	
   

  	
   

  
	
   

  	
  WILLIAMS ENERGY SERVICES, LLC

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  Phillip D. Wright

  	
   

  
	
   

  	
   

  	
  Name:    Phillip D. Wright

  
	
   

  	
   

  	
  Title:     Authorized Signatory

  
	
   

  	
   

  	
   

  
	
   

  	
  WILLIAMS NATURAL GAS LIQUIDS, INC.

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  Phillip D. Wright

  	
   

  
	
   

  	
   

  	
  Name:    Phillip D. Wright

  
	
   

  	
   

  	
  Title:     Authorized Signatory

  
						

 

22

 

	
   

  	
  THE WILLIAMS COMPANIES, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  Phillip D. Wright

  	
   

  
	
   

  	
   

  	
  Name:    Phillip D. Wright

  
	
   

  	
   

  	
  Title:     Authorized Signatory

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Address for Notice to Each of the Williams Parties:

  
	
   

  	
   

  	
   

  
	
   

  	
  One Williams Center

  
	
   

  	
  Tulsa, Oklahoma  74172

  
	
   

  	
  Facsimile: 918-573-4503

  
	
   

  	
  Attention: Mr. Tony Gehres

  

 

23EXHIBIT 10.4

 

 

ATLAS 2000 SYSTEM

 

ASSIGNMENT, CONTRIBUTION AND LICENSE

AGREEMENT

 

 

BETWEEN

 

 

WILLIAMS ENERGY SERVICES, LLC, AND

 

AND

 

WILLIAMS ENERGY PARTNERS L.P.

 

 

ASSIGNMENT,

CONTRIBUTION AND LICENSE AGREEMENT

 

THIS

ASSIGNMENT, CONTRIBUTION AND LICENSE AGREEMENT (the “Agreement”) effective as of

this 17th day of June, 2003 (the “Effective Date”), by and between Williams

Energy Services, LLC, a Delaware limited liability company (“WES”), and Williams Energy Partners, L.P.,

a Delaware limited partnership (the “Partnership”).

 

RECITALS

 

A.                                   This

Agreement is entered into by the parties hereto in connection with that certain

Purchase Agreement, dated April 18, 2003 as amended by Amendment No. 1

thereto, dated May 5, 2003 (as so amended, the “Purchase Agreement”), among the WEG Acquisitions, L.P., a

Delaware limited partnership (“Buyer”), WES, Williams Natural Gas Liquids, Inc.

and Williams GP LLC.

 

B.                                     Effective

as of the Closing Date (as defined in the Partnership Agreement), WES desires

to assign and transfer all right, title and interest to the Atlas Software (as

defined herein) and to contribute the Hardware and convey all title in such

Hardware (as defined herein) to the Partnership; and, pursuant to Section

4.11(a) of the Purchase Agreement, the Buyer has designated the Partnership to

receive such assignments and contributions.

 

C.                                     Upon

such assignment, the Partnership desires (i) to grant to WES a worldwide,

nonexclusive, royalty-free, irrevocable license (except in accordance with the

express provisions herein), nontransferable (other than to Affiliates (as

defined below)), without right to sublicense (except to Affiliates of WES,

Williams Bio-Energy LLC, a Delaware limited liability company (“WBE”), and WBE’s Affiliates), to use,

copy, modify, enhance, and upgrade the ATLAS 2000 System to support any

business currently owned or operated by any Selling Party (as defined in the

Purchase Agreement) (or Affiliate thereof) or WBE (or Affiliate thereof), and

(ii) to maintain and support the ATLAS 2000 System as further provided herein.

 

D.                                    Upon

transfer to the Partnership (or a Partnership Entity) of the employees of WES

or its Affiliates that support and maintain the ATLAS Software (the “ATLAS Employees”), WES desires to assign

to the Partnership the right to receive any payments in respect of such support

and maintenance services that the Partnership may receive from WBE in

connection with its sublicense to WBE.

 

NOW, THEREFORE, in consideration of the premises and

the covenants, conditions, and agreements contained herein, and for other good

and valuable consideration, the receipt and sufficiency of which are hereby

acknowledged, the parties hereto hereby agree as follows:

 

1

 

1.                                      DEFINITIONS

 

1.1                                 Definitions.  Capitalized terms used in this Agreement and

not otherwise defined herein have the meanings corresponding thereto as set

forth in this Section 1.1.  Other

terms defined herein have the meanings so given them.  A defined term has its defined meaning throughout this Agreement

and in each Exhibit hereto, regardless of whether such term appears before or

after the place where it is defined.

 

(a)                                  “Affiliate” means with respect to a

specified person, a person that directly, or indirectly through one or more intermediaries,

controls, or is controlled by, or is under common control with, the person

specified.

 

(b)                                 “ATLAS Employees” means those G&A

Employees (as defined in the Transition Services Agreement) performing those

G&A Services (as defined in the Transition Services Agreement) contemplated

by Item 5.a of Schedule “A” of the Transition Services Agreement.

 

(c)                                  “ATLAS Software” means the ATLAS 2000

System, as more fully described in Exhibit A-1, the object code thereof,

all software user manuals, reference manuals and installation guides, or

portions thereof (if any), which are related to the ATLAS Software, and all

rights to the Intellectual Property embodied in or relating to any of the

forgoing.

 

(d)                                 “Confidential

Information” means: (i) the ATLAS Software and any Derivative

Works related thereto and (ii) any business or technical information of

WES or the Partnership or their respective Affiliates, including but not

limited to any information relating to WES’ or the Partnership’s product plans,

designs, costs, product prices and names, finances, marketing plans, business

opportunities, personnel, research, development or know-how that is designated

by the disclosing party as “confidential” or “proprietary” and, if orally

disclosed, reduced to writing by the disclosing party within thirty (30) days

of such disclosure.

 

(e)                                  “Derivative Works”

means works that are based upon one (1) or more pre-existing works, such as:

(i) for copyrightable or copyrighted material, any translation, portation,

modification, correction, addition, extension, upgrade, improvement,

compilation, abridgment, revision or other form in which such material may be

recast, transformed, or adapted; (ii) for patentable or patented material, any

improvement thereon; and (iii) for material that is protected by trade secret,

any new material derived from such existing trade secret material, including

new material

 

2

that may be

protected by any of copyright, mask work right, patent, and trade secret.

 

(f)                                    “Hardware” means the computer equipment

set forth and identified in Exhibit B.

 

(g)                                 “Knowledge” means the actual knowledge,

after reasonable inquiry, of those individuals named in Section 9.16(g) of the

Purchase Agreement.

 

(h)                                 “Intellectual Property”  mean

and include all intellectual property of any kind, both foreign and domestic,

including, without limitation, all patents, trademarks, service marks, trade

names, trade dress, (and the goodwill associated with each), copyrights,

confidential and proprietary information (including trade secrets and

know-how), and registrations and applications for registration of any of the

foregoing.

 

(i)                                     “Marks” means

those trademarks, trade names, service marks, logos, designs and insignias, as

identified in Exhibit C

 

(j)                                     “Partnership Entities” has the meaning

assigned to such term in Section 2.4(a) of the Purchase Agreement, but excludes

the Partnership.

 

(j)                                     “Transition Services Agreement”

has means the Transition Services Agreement, dated the date hereof, by and

between the Buyer and The Williams Companies, Inc.

 

1.2                                 Construction.  As used in this Agreement, unless expressly

stated otherwise, references to (a) “including” mean “including, without

limitation” and (b) “or” mean “either or both.”  Unless otherwise specified, all references in this Agreement to

Sections, Schedules or Exhibits are deemed references to the corresponding

sections, schedules or exhibits in this Agreement.  All monetary values set forth in this Agreement shall be deemed

to be in U.S. Dollars and do not include taxes unless otherwise clearly stated.

 

2.                                      ASSIGNMENT

AND CONTRIBUTION

 

2.1                                 ATLAS

Software.  WES hereby assigns,

grants, bargains, sells, conveys, and sets over unto the Partnership (or a

Partnership Entity designated in writing by the Partnership) and the

Partnership hereby accepts, or shall cause such Partnership Entity to accept,

all of WES’ right, title, and interest in, to, and under the ATLAS Software

effective as of the Effective Date, subject to the terms of this Agreement.

 

3

 

2.2                                 Marks.  WES hereby assigns, grants, bargains, sells,

conveys, and sets over unto the Partnership (or a Partnership Entity designated

in writing by the Partnership) and the Partnership hereby accepts, or shall

cause such Partnership Entity to accept, all of WES’ right, title, and interest

in, to, and under the Marks, including all goodwill associated with the Marks,

effective as of the Effective Date, subject to the terms of this Agreement.

 

2.3                                 Hardware.  WES hereby contributes to the Partnership

(or a Partnership Entity designated in writing by the Partnership) and the

Partnership hereby accepts, or shall cause such Partnership Entity to accept,

all of WES’ right, title, and interest in, the Hardware effective as of the

Effective Date to have and to hold the hardware unto the Partnership, its

successors and assigns, forever, subject to the terms of this Agreement.

 

3.                                      LICENSES

 

3.1                                 ATLAS

Software License Grant.  Subject to

the terms and conditions of this Agreement and solely to the extent that it

received from WES under the terms and conditions of this Agreement the ability

to grant such a license, the Partnership hereby grants to WES a worldwide,

nonexclusive, royalty-free, irrevocable (except in accordance the terms herein)

license, nontransferable (other than to Affiliates of WES) without right to

sublicense (except as provided in clause (b) and (c) below):

 

(a)                                  to

use, copy, modify, enhance, upgrade and produce Derivative Works of the ATLAS

Software, in object or source code form;

 

(b)                                 to

sublicense the ATLAS Software to any Affiliate of WES; and

 

(c)                                  to

sublicense the ATLAS Software to WBE or any Affiliate thereof.

 

3.2                                 Trademark

License Grant:  Subject to the terms

and conditions of this Agreement and solely to the extent that it received from

WES under the terms and conditions of this Agreement the ability to grant such

a license, the Partnership hereby grants to WES a worldwide, nonexclusive,

royalty-free, irrevocable (except in accordance the terms herein) license,

nontransferable (other than to Affiliates of WES) without right to sublicense

(except to WBE or any Affiliate thereof), to use the Marks, and to reproduce

and use such Marks only in connection with the use, provision, sublicensing (as

permitted pursuant to Section 3.1 (b) and (c)), of the ATLAS Software.  WES agrees that the nature and quality of

its use of the Marks shall conform to the standard set by and be under the

control of the Partnership.  Such

standard shall at a minimum specifically be the type and quality of goods and

products that historically have been associated with the Marks.  WES shall ensure that all sub-licensees of

the 

 

4

 

Marks by written

agreement also are bound to the forgoing standard.  The use of such Marks by WES and its Affiliates shall inure

solely to the benefit of the Partnership and nothing contained herein shall be

construed to grant any ownership interest in or to such Marks.

 

3.3                                 Third

Party Consents. Notwithstanding the foregoing provisions of this Section

3, in the event that the consent of any third-party vendor is required in

connection with the grants of the licenses described in Sections 3.1 and

3.2 above, the Partnership shall be relieved of its obligations

thereunder unless and until any such consent is obtained by WES in a form

reasonably acceptable to the Partnership.

 

3.4                                 Restrictions.

The Partnership reserves all rights and licenses to the ATLAS Software not

expressly granted to WES under this Agreement.

 

3.5                                 Ownership.

WES and the Partnership each agree that any new Derivative Works related to the

ATLAS Software will be owned by the party developing such Derivative Works.

 

4.                                      MAINTENANCE

AND SUPPORT SERVICES

 

4.1                                 Maintenance

and Support Services.  Subject to

the limitations in Section 4.5 and to the such other limitations as are

stated herein, the Partnership will (or will cause the appropriate Partnership

Entity or Entities to) maintain and support the ATLAS Software, at the

Partnership’s (or any Partnership Entity’s, as the case may be) sole expense,

so as to provide WES (and any Affiliate of WES) and WBE (and any Affiliate of

WBE) with the same quantity of processing, maintenance and support services as

each such entity, respectively, is receiving as of the date of Closing and with

the same quality of maintenance and support services as the current licensees

(and sub-licensees) of the ATLAS Software are receiving as of the date of

Closing (the “Services”). The

aforementioned quality, which the parties agree to be synonymous with

performing the Services in a good and workmanlike fashion, is the sole and

exclusive standard of care that will be applied to measure the Partnership’s

(or the appropriate Partnership Entity’s or Entities’) performance of the

Services.  The Partnership (or any

Partnership Entity, as the case may be) shall, to the extent that the

Partnership (or any Partnership Entity, as the case may be) produces any

upgrades, enhancements, updates or new versions of the ATLAS Software, in a commercially

reasonable manner and time (i) provide such to WES (and any licensee or

sub-licensee) under the terms of this Agreement, and (ii) make available to WES

(and its licensees or sub-licensees) any Derivative Works which it creates that

are materially different from the present version of ATLAS Software. Such

upgrades, enhancements, updates or new versions of the ATLAS Software shall be

governed by the same 

 

5

 

license and

license restrictions as governs the ATLAS Software in this Agreement.  FOR ANY BREACH BY THE PARTNERSHIP (OR THE

APPROPRIATE PARTNERSHIP ENTITY OR ENTITIES) OF THE FORGOING OBLIGATIONS, WES

(OR ANY LICENSEE’S OR SUB-LICENSEE’S) SOLE AND EXCLUSIVE REMEDY SHALL BE

RE-PERFORMANCE OF THE UNSATISFACTORY SERVICES OR THE DELIVERY OF THE PARTICULAR

ITEMS.

 

4.2                                 Additional

Maintenance and Support Services. 

The provision of any additional maintenance and support services not

described herein to any of the forgoing entities or to any future licensees

shall be governed by subsequent arm’s-length negotiations.

 

4.3                                 Assignment

of Support Payments. Effective as of the date that the ATLAS Employees are

transferred to the Partnership (or a Partnership Entity designated in writing

by the Partnership or Buyer) pursuant to the Transition Services Agreement, WES

hereby assigns to the Partnership (or a Partnership Entity designated in

writing by the Partnership or Buyer) the right to receive any payments in

respect of such support and maintenance services that it may receive from WBE

in connection with its sublicense to WBE or any other arrangement between the

parties.

 

4.4                                 Duration.  The Partnership will provide the Services to

each of the entities listed in Section 4.1 for so long as that particular

entity continues to use (and/or sublicense) the ATLAS 2000 System.

 

4.5                                 Limitations.  The Partnership’s obligation to WES, a

specific licensee or sub-licensee under this Section 4 and the Partnership’s

obligation to provide certain aspects of the Services to such party shall be

limited to the extent that:  (i) the

party makes any change or modification to the ATLAS Software that materially,

negatively affects or precludes the provision of such particular aspect of the

Services, (ii) the party combines the ATLAS Software with products or

programs not utilized by the party as of the date of Closing, if such

combination materially increases the time or cost required for the Partnership

to perform such particular aspect of the Services or (iii) the party

modifies, changes or replaces any hardware connected with the ATLAS Software if

such modification, change or replacement individually or in combination with

other modifications, changes or replacements materially increases the time or

cost required for the Partnership to perform such particular aspect of the

Services.

 

4.6                                 In

addition, in the event that the consent of any third-party vendor is required

in connection with the performance of the Partnership’s (or any Partnership

Entity’s) obligations under this Section 4, the Partnership (and any

such Partnership Entity) shall be relieved of its obligations unless and until

any such consent is obtained by WES in a form reasonably acceptable to the

Partnership.

 

6

 

5.                                      SUPPORTING

SOFTWARE

 

5.1                                 Supporting

Software. All software which relates to or is required for the operation of

the ATLAS Software is set forth on Schedule A-2 (the “Supporting Software”).

 

5.2                                 Migration

Supporting Software.  The IT

Migration Plan (as defined in the Purchase Agreement) will identify the

software to be included in the Migration Assets (as defined in the Purchase

Agreement) that the Partnership will use in lieu of the Supporting Software

(the “Migration Supporting Software”);

provided, the Migration Supporting

Software may, but is not required to, include all or a portion of the

Supporting Software.

 

6.                                      CONFIDENTIALITY

 

6.1                                 Use

and Disclosure Restrictions.  During

the term of this Agreement, and for a period of two (2) years after any

termination of this Agreement, each party will not use another party’s

Confidential Information except as permitted herein, and will not disclose such

Confidential Information to any third party except to employees and consultants

as is reasonably required in connection with the exercise of its rights and

obligations under this Agreement (and only subject to binding use and

disclosure restrictions at least as protective as those set forth herein

executed in writing by such employees and consultants).  However, each party may disclose

Confidential Information of another party: 

(i) pursuant to the order or requirement of a court, administrative

agency, or other governmental body, provided that the disclosing party gives

reasonable notice to the other parties to contest such order or requirement;

and (ii) on a confidential basis to legal or financial advisors.  Notwithstanding the foregoing, the parties’

confidentiality obligations with respect to all source code shall continue in perpetuity,

unless such source code becomes non-confidential in accordance with Section

6.2, below.

 

6.2                                 Exclusions.  Confidential Information shall not include

information that:  (i) is or

becomes generally known or available by publication, commercial use or

otherwise through no fault of the receiving party; (ii) is known to the

receiving party at the time of disclosure without violation of any

confidentiality restriction and without any restriction on the receiving

party’s further use or disclosure; (iii) is independently developed by the

receiving party without use of the disclosing party’s Confidential Information;

or (iv) is rightfully received from a third party not under an obligation as to

disclosure of such information.

 

7

 

7.                                      WARRANTIES

 

7.1                                 WES

Warranties.

 

(a)                                  WES

represents and warrants to the Partnership that:  (i) it has full power and authority to enter into this Agreement;

(ii) it has sufficient right and authority to carry out its obligations

hereunder and to grant, assign or contribute, as appropriate, the ATLAS

Software, the Marks and the Hardware to the Partnership hereunder, and (iii) to

WES’ Knowledge, the ATLAS Software and the Marks do not violate any rights

relating to the Intellectual Property any third party.

 

(b)                                 WITHOUT

LIMITING IN ANY WAY THE APPLICABLE REPRESENTATIONS AND WARRANTIES CONTAINED IN

THE PURCHASE AGREEMENT, THE WARRANTIES IN THIS SECTION 7.1 ARE IN LIEU

OF ALL OTHER WARRANTIES MADE BY WES, EXPRESS AND IMPLIED, INCLUDING BUT NOT

LIMITED TO ANY IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR

PURPOSE AND INFRINGEMENT, EXCEPT AS SET FORTH IN THIS SECTION 7.1.  WES DOES NOT WARRANT THAT THE ATLAS SOFTWARE

IS ERROR-FREE OR THAT ANY USE THEREOF BY THE PARTNERSHIP OR ANY LICENSEE OR

SUB-LICENSEE WILL BE UNINTERRUPTED.

 

7.2                                 PartnershipWarranties.

 

(a)                                  The

Partnership represents and warrants to WES that: (i) it has full power and

authority to enter into this Agreement; and (ii) it has sufficient right and

authority to carry out its obligations hereunder and to grant to WES and its

Affiliates all licenses and rights that the Partnership is granting to WES and

its Affiliates hereunder, and (iii) to the Partnership’s knowledge, any

updates, upgrades, enhancements or Derivative Works provided to WES and its Affiliates

pursuant to Section 4.1, do not violate any rights relating to the Intellectual

Property any third party.

 

(b)                                 THE

WARRANTIES IN THIS SECTION 7.2 ARE IN LIEU OF ALL OTHER WARRANTIES MADE

BY THE PARTNERSHIP, EXPRESS AND IMPLIED, INCLUDING BUT NOT LIMITED TO ANY

IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE AND

INFRINGEMENT, EXCEPT AS SET FORTH IN THIS SECTION 7.2.  THE PARTNERSHIP DOES NOT WARRANT THAT THE

ATLAS SOFTWARE IS ERROR-FREE OR THAT 

 

8

ANY USE THEREOF BY

WES OR ANY LICENSEE OR SUB-LICENSEE WILL BE UNINTERRUPTED.

 

8.                                      INDEMNIFICATION

 

8.1                                 WES

will defend at its expense any suits against the Partnership or any Partnership

Entity based upon a claim that the ATLAS Software or the Marks, as assigned

hereunder, infringes any rights related to the Intellectual Property of any

third party and will pay any damages, costs and expenses finally awarded in any

such suit (including without limitation reasonable attorneys’ fees) provided

that the Partnership or the applicable Partnership Entity:  (i) promptly notifies WES in writing of

the suit; (ii) provides WES with sole control and authority to defend and

settle such suit; and (iii) provides WES, at WES’ expense, with all reasonable

assistance and information requested by WES for the defense and settlement of

such suit.  WES may, in its sole

discretion, settle any such claim on a basis requiring WES to substitute for

the ATLAS Software alternative substantially equivalent non-infringing

programs. In the event that any preliminary injunction, temporary restraining

order or final injunction shall be obtained, WES shall, at its sole option,

either: (a) obtain the right for continued use of the infringing portions

of the ATLAS Software; or (b) modify the infringing portions so as to avoid

such infringement while obtaining at least equivalent functionality; or

(c) substitute for the infringing portions of the ATLAS Software

alternative equivalent software and supporting documentation.

 

8.2                                 WES

will have no obligation under this Section 8 for any claim of

infringement or misappropriation that arises from:  (i) the combination of the ATLAS Software with products,

programs, or data not furnished by WES, if such claim would have been avoided

by the use of the ATLAS Software as provided by WES without such combination;

or (ii) the modification of the ATLAS Software by the Partnership, if such

claim would have been avoided by use of the unmodified ATLAS Software.

 

8.3                                 The

Partnership will defend at its expense any suits against WES based upon a claim

that any updates, upgrades, enhancements or Derivative Works provided to WES

and its Affiliates pursuant to Section 4.1 infringe any rights related to the

Intellectual Property of any third party and will pay any damages, costs and

expenses finally awarded in any such suit (including without limitation

reasonable attorneys’ fees) provided that: 

(i) WES promptly notifies the Partnership in writing of the suit; (ii) WES

provides the Partnership with sole control and authority to defend and settle

such suit; and (iii) WES provides the Partnership, at the Partnership’s

expense, with all reasonable assistance and information requested by the

Partnership for the defense and settlement of such suit.  The Partnership may, in its sole discretion,

settle any such claim on a basis requiring the Partnership to substitute for

the ATLAS Software alternative 

 

9

 

substantially

equivalent non-infringing programs. In the event that any preliminary

injunction, temporary restraining order or final injunction shall be obtained,

the Partnership shall, at its sole option, either:  (a) obtain the right for continued use of the infringing portions

of the ATLAS Software; or (b) modify the infringing portions so as to

avoid such infringement while obtaining at least equivalent functionality; or

(c) substitute for the infringing portions of the ATLAS Software alternative

equivalent software and supporting documentation.

 

8.4                                 The

Partnership will have no obligation under this Section 8 for any claim

of infringement or misappropriation that arises from:  (i) the combination of the ATLAS Software (or updates,

upgrades, enhancements or Derivative Works provided to WES and its Affiliates

pursuant to Section 4.1) with products, programs, or data not furnished by the

Partnership, if such claim would have been avoided by the use of the Atlas

Software (or updates, upgrades, enhancements or Derivative Works provided to

WES and its Affiliates pursuant to Section 4.1) as provided by the Partnership

without such combination; or (ii) the modification of the ATLAS Software

(or the updates, upgrades, enhancements or Derivative Works provided to WES and

its Affiliates pursuant to Section 4.1), if such claim would have been avoided

by use of the ATLAS Software (or the updates, upgrades, enhancements or

Derivative Works provided to WES and its Affiliates pursuant to Section 4.1) as

provided by the Partnership without such modification.

 

8.5                                 THE

FOREGOING ARE WES’ AND THE PARTNERSHIP’S SOLE AND EXCLUSIVE OBLIGATIONS, AND

THEIR RESPECTIVE SOLE AND EXCLUSIVE REMEDIES, WITH RESPECT TO INFRINGEMENT OR

MISAPPROPRIATION OF INTELLECTUAL PROPERTY RIGHTS RELATING TO THE ATLAS

SOFTWARE.

 

9.                                      LIMITATION

OF LIABILITY

 

9.1                                 THE

PARTNERSHIP SHALL NOT BE LIABLE IN ANY WAY FOR SERVICES TO THE EXTENT SUCH

SERVICES ARE PERFORMED IN ACCORDANCE WITH THE STANDARD OF CARE SPECIFIED IN

SECTION 4.  REGARDLESS OF WHETHER ANY

REMEDY FAILS OF ITS ESSENTIAL PURPOSE OR OTHERWISE, IN NO EVENT SHALL ANY PARTY

BE LIABLE FOR ANY SPECIAL, INDIRECT, INCIDENTAL, PUNITIVE, EXEMPLARY OR

CONSEQUENTIAL DAMAGES OF ANY KIND (INCLUDING LOSS OF USE, DATA, BUSINESS OR

PROFITS) ARISING OUT OF OR IN CONNECTION WITH THIS AGREEMENT, WHETHER SUCH

LIABILITY ARISES FROM ANY CLAIM BASED UPON CONTRACT, WARRANTY, TORT (INCLUDING

NEGLIGENCE), PRODUCT LIABILITY OR OTHERWISE, AND WHETHER OR NOT ANY PARTY HAS

BEEN ADVISED OF THE POSSIBILITY OF SUCH LOSS OR DAMAGE, 

 

10

 

OTHER THAN

(A) THE PARTNERSHIP’S INTENTIONAL, WILLFUL, GROSSLY NEGLIGENT AND/OR

REPETITIVE BREACH OF WES’ CONFIDENTIAL INFORMATION AND ANY INFRINGEMENT OF ANY

INTELLECTUAL PROPERTY RELATED TO THE UPDATES, UPGRADES, ENHANCEMENTS OR

DERIVATIVE WORKS PROVIDED TO WES AND ITS AFFILIATES PURSUANT TO SECTION 4.1, OR

(B) WES’ (OR ANY AFFILIATE OF WES) OR WBE’S (OR ANY AFFILIATE OF WBE)

INTENTIONAL, WILLFUL, GROSSLY NEGLIGENT AND/OR REPETITIVE BREACH OF THE

PARTNERSHIP’S CONFIDENTIAL INFORMATION, ANY INFRINGEMENT OF ANY INTELLECTUAL

PROPERTY RELATED TO THE ATLAS SOFTWARE OR ANY BREACH OF THE LICENSE PROVISIONS

IN SECTION 3 HEREIN.

 

9.2                                 IN

CONNECTION WITH A CLAIM, DEMAND OR CAUSE OF ACTION BY ONE PARTY AGAINST ANOTHER

(OR ITS AFFILIATES OR THE APPROPRIATE PARTNERSHIP ENTITY OR ENTITIES) TO

RECOVER DAMAGES BASED UPON OR ARISING OUT OF THIS AGREEMENT OR THE PERFORMANCE

OF SERVICES UNDER THIS AGREEMENT OR BASED UPON OR ARISING OUT OF ACTIONS OR

INACTIONS OF A PARTY (OR ITS AFFILIATE OR A PARTNERSHIP ENTITY OR ENTITIES)

ANCILLARY TO THE PERFORMANCE OF SERVICES, WHETHER SUCH CLAIM IS FOUNDED UPON

THEORIES OF NEGLIGENCE, BREACH OF WARRANTY, STRICT TORT LIABILITY, BREACH OF

CONTRACT, OR THE VIOLATION OF ANY OTHER APPLICABLE LEGAL DUTY OR STANDARD, THE

AMOUNT OF DAMAGES TO BE RECOVERED BY SUCH PARTY WITH RESPECT TO SUCH CLAIM,

DEMAND OR CAUSE OF ACTION SHALL BE REDUCED BY A PERCENTAGE EQUAL TO THAT

PARTY’S PERCENTAGE OF RESPONSIBILITY OR FAULT AND SUCH PARTY SHALL HAVE NO

RIGHT TO RECOVER DAMAGES IF ITS PERCENTAGE OF RESPONSIBILITY OR FAULT EXCEEDS

FIFTY PERCENT (50%).

 

9.3                                 SUBJECT

TO SECTION 9.2 ABOVE, IN CONNECTION WITH A CLAIM, DEMAND OR CAUSE OF ACTION BY

ONE PARTY AGAINST ANOTHER (OR ITS AFFILIATES OR A PARTNERSHIP ENTITY OR

ENTITIES) TO RECOVER DAMAGES BASED UPON OR ARISING OUT OF THIS AGREEMENT OR THE

PERFORMANCE OF THE SERVICES UNDER THIS AGREEMENT OR BASED UPON OR ARISING OUT

OF ACTIONS OR INACTIONS OF SUCH PARTY (OR ITS AFFILIATES OR A PARTNERSHIP

ENTITY OR ENTITIES) ANCILLARY TO THE PERFORMANCE OF SERVICES, WHETHER SUCH CLAIM

IS FOUNDED UPON THEORIES OF NEGLIGENCE, BREACH OF WARRANTY, STRICT TORT

LIABILITY, BREACH OF CONTRACT OR THE VIOLATION OF ANY OTHER APPLICABLE LEGAL

DUTY OR STANDARD, SUCH PARTY (OR ITS AFFILIATES 

 

11

 

OR PARTNERSHIP

ENTITY OR ENTITIES) SHALL BE LIABLE TO SUCH CLAIMANT ONLY FOR THAT PERCENTAGE

OF CLAIMANT’S DAMAGES WHICH ARE EQUAL TO SUCH PARTY’S (OR ITS AFFILIATES OR A

PARTNERSHIP ENTITY’S OR ENTITIES’) PERCENTAGE OF RESPONSIBILITY OR FAULT WITH

RESPECT TO THE CLAIM, DEMAND OR CAUSE OF ACTION FOR WHICH DAMAGES ARE

ALLOWED.  TO THE EXTENT THAT THE ACTIONS

OR INACTIONS OF SOME OTHER ENTITY (EVEN AN ENTITY WHICH HAS SETTLED WITH

CLAIMANT) CAUSED OR CONTRIBUTED TO CAUSE IN ANY WAY CLAIMANT’S HARM FOR WHICH

RECOVERY OF DAMAGES IS SOUGHT, THE PARTY AGAINST WHOM THE CLAIM IS BROUGHT (OR

ITS AFFILIATES OR PARTNERSHIP ENTITY OR ENTITIES) SHALL NOT BE RESPONSIBLE TO

CLAIMANT FOR THE PERCENTAGE OF CLAIMANT’S DAMAGES ATTRIBUTABLE TO ANY SUCH

THIRD PARTY FOR WHOSE CONDUCT THE PARTY AGAINST WHOM THE CLAIM IS BROUGHT (OR

ITS AFFILIATES OR PARTNERSHIP ENTITY OR ENTITIES) IS NOT LEGALLY LIABLE.  IN THE EVENT THAT CLAIMANT SETTLES WITH A

THIRD PARTY OR RECOVERS FUNDS FROM ANY SOURCE WITH RESPECT TO A CLAIM, DEMAND

OR CAUSE OF ACTION BROUGHT BY CLAIMANT AGAINST PARTY AGAINST WHOM THE CLAIM IS

BROUGHT (OR ITS AFFILIATES OR PARTNERSHIP ENTITY OR ENTITIES), THE PARTY

AGAINST WHOM THE CLAIM IS BROUGHT (OR ITS AFFILIATES OR PARTNERSHIP ENTITY OR

ENTITIES) SHALL BE ENTITLED TO A CREDIT AGAINST THE AMOUNT OF DAMAGES THE

CLAIMANT OTHERWISE WOULD BE ENTITLED TO RECOVER AGAINST THE PARTY AGAINST WHOM

THE CLAIM IS BROUGHT (OR ITS AFFILIATES OR PARTNERSHIP ENTITY OR ENTITIES) IN

THE SUM OF THE DOLLAR AMOUNTS OF ALL SUCH SETTLEMENTS OR PAYMENTS RECEIVED BY

CLAIMANT FROM OTHER SOURCES.

 

9.4                                 IN

THE EVENT THAT A PARTY HEREUNDER BELIEVES THAT IT HAS A CLAIM AGAINST ANOTHER

PARTY (OR ITS AFFILIATES OR PARTNERSHIP ENTITY OR ENTITIES) FOR DAMAGES ARISING

OUT OF THIS AGREEMENT OR THE PERFORMANCE OF THE SERVICES UNDER THIS AGREEMENT

OR BASED UPON OR ARISING OUT OF ACTIONS OR INACTIONS OF THE PARTY AGAINST WHOM

THE CLAIM MAY BE BROUGHT (OR ITS AFFILIATES OR PARTNERSHIP ENTITY OR ENTITIES)

ANCILLARY TO THE PERFORMANCE OF SERVICES, WHETHER SUCH CLAIM IS FOUNDED UPON

THEORIES OF NEGLIGENCE, BREACH OF WARRANTY, STRICT TORT LIABILITY, BREACH OF

CONTRACT OR THE VIOLATION OF ANY OTHER APPLICABLE LEGAL DUTY OR STANDARD, THE

CLAIMANT SHALL PROMPTLY SO NOTIFY THE PARTY AGAINST WHOM THE 

 

12

 

CLAIM MAY BE

BROUGHT (OR ITS AFFILIATES OR PARTNERSHIP ENTITY OR ENTITIES).  THE PARTY AGAINST WHOM THE CLAIM MAY BE

BROUGHT (OR ITS AFFILIATES OR PARTNERSHIP ENTITY OR ENTITIES) SHALL THEREAFTER

ENDEAVOR IN GOOD FAITH TO RESOLVE THE CLAIM WITH THE CLAIMANT.  IT IS EXPRESSLY AGREED THAT THE STATUTE OF

LIMITATIONS GOVERNING ANY AND ALL CAUSES OF ACTION THAT SUCH CLAIMANT MAY HAVE

AGAINST THE PARTY AGAINST WHOM THE CLAIM MAY BE BROUGHT (OR ITS AFFILIATES OR

PARTNERSHIP ENTITY OR ENTITIES) ARISING OUT OF THIS AGREEMENT OR THE

PERFORMANCE OF THE SERVICES UNDER THIS AGREEMENT OR BASED UPON OR ARISING OUT

OF ACTIONS OR INACTIONS OF THE PARTY AGAINST WHOM THE CLAIM MAY BE BROUGHT (OR

ITS AFFILIATES OR PARTNERSHIP ENTITY OR ENTITIES) ANCILLARY TO THE PERFORMANCE

OF SERVICES, WHETHER SUCH CLAIM IS FOUNDED UPON THEORIES OF NEGLIGENCE, BREACH

OF WARRANTY, STRICT TORT LIABILITY, BREACH OF CONTRACT OR THE VIOLATION OF ANY

OTHER APPLICABLE LEGAL DUTY OR STANDARD, SHALL BE ONE (1) YEAR FROM THE DATE

THAT THE CLAIMANT KNEW OR THROUGH REASONABLE DILIGENCE SHOULD HAVE KNOWN OF THE

FACTS GIVING RISE TO THE CAUSE OF ACTION.

 

9.5                                 A

PARTY’S TOTAL AGGREGATE LIABILITY ARISING OUT OF OR RELATED TO THE SUBJECT

MATTER OF THIS AGREEMENT, IN CONTRACT, TORT, OR OTHERWISE, SHALL NOT EXCEED THE

TOTAL AMOUNT PAID TO THE PARTNERSHIP (OR ANY PARTNERSHIP ENTITY OR ENTITIES)

(I) IN THE CALENDAR YEAR IN WHICH THE CLAIM OR CAUSE OF ACTION AROSE AND (II)

FOR THE PARTNERSHIP’S PERFORMANCE OF ITS OBLIGATIONS UNDER THIS AGREEMENT.

 

9.6                                 THE

EXCLUSIVE REMEDY (IN LIEU OF ANY OTHER REMEDY AT LAW OR IN EQUITY) OF ANY OF

WES, A LICENSEE OR A SUB-LICENSEE FOR ANY CAUSE WHATSOEVER, REGARDLESS OF THE

FORM OF ACTION, WHETHER IN CONTRACT OR TORT, AND THE PARTNERSHIP’S (AND ANY

PARTNERSHIP ENTITY’S OR ENTITIES’) ENTIRE LIABILITY TO WES, A LICENSEE OR A

SUB-LICENSEE IS SET FORTH IN THIS SECTION 9.

 

9.7                                 IT

IS EXPRESSLY UNDERSTOOD AND AGREED THAT EACH AND EVERY PROVISION OF THIS

AGREEMENT WHICH PROVIDES FOR A LIMITATION OF LIABILITY, DISCLAIMER OF

WARRANTIES, OR EXCLUSION OF DAMAGES IS INTENDED BY THE PARTIES TO BE SEVERABLE

AND INDEPENDENT OF ANY OTHER PROVISION AND TO BE ENFORCED AS SUCH.  WES AND 

 

13

 

THE PARTNERSHIP

EACH ACKNOWLEDGES THAT THE PROVISIONS OF THIS AGREEMENT WERE NEGOTIATED TO

REFLECT AN INFORMED, VOLUNTARY ALLOCATION BETWEEN WES AND THE PARTNERSHIP OF

ALL RISKS (BOTH KNOWN AND UNKNOWN) ASSOCIATED WITH THE SUBJECT MATTER OF THIS

AGREEMENT.

 

10.                               TERM AND

TERMINATION

 

10.1                           Term.

 This

Agreement commences as of the

Effective Date and shall remain in force for so long as WES, an

Affiliated assignee, WBE or any Affiliate sub-licensee continues to use the

ATLAS 2000 System in accordance with the terms of this Agreement.

 

10.2                           Termination.  This Agreement and the licenses

granted hereunder shall terminate upon the earliest to occur of the

following:  (i) thirty (30) days after

the Partnership gives WES notice of a material breach of any provision of this

Agreement, unless such breach is cured within thirty (30) days of such notice;

(ii) with respect to WES or an individual licensee or sub-licensee, thirty (30)

days after such party gives the Partnership written notice of the party’s

desire to terminate this Agreement, for any reason; or (iii) immediately with

respect to WES or an individual licensee or sub-licensee if such party files

for bankruptcy (subject to an automatic stay ordered by a Federal Bankruptcy

Court), becomes insolvent, ceases to do business or makes an assignment for the

benefit of creditors.

 

10.3                           Duties Upon Termination.  Upon any termination hereunder, the licenses hereunder

are terminated (and all rights in and to the ATLAS Software granted

pursuant to such licenses shall

terminate).  The terminated party or parties shall immediately cease all use of the

ATLAS Software and shall irretrievably delete and/or remove such software from

all computer hardware and storage media. 

Within thirty days after any termination, the terminated party or

parties shall deliver to the Partnership at the party’s or parties’ sole

expense (adequately packaged and insured for safe delivery) or destroy all

copies of (i) the ATLAS Software in every form and (ii) all Confidential

Information of the Partnership.  To the

extent that the Partnership has any Confidential Information of a terminated

party, the Partnership within thirty days after any termination will deliver to

such party at the Partnership’s sole expense or destroy all copies of

all Confidential Information of the terminated party.

 

10.4                           Survival.  The rights and obligations of the parties

contained in Sections 2, 5, 6, 8, 9, 10,

and 11 will survive any termination of this Agreement.

 

14

 

11.                               GENERAL

 

11.1                           Governing

Law.  This Agreement shall be

governed by and construed in accordance with the internal and substantive laws

of New York and without regard to any conflicts of laws concepts that would

apply the substantive law of some other jurisdiction.

 

11.2                           Relationship

of the Parties.  The parties to this

Agreement are independent contractors and this Agreement will not establish any

relationship of partnership, joint venture, employment, franchise, or agency

between the parties.  No party will have

the power to bind the others or incur obligations on the others’ behalf without

the other’s prior written consent.

 

11.3                           Severability.  If any provision of this Agreement shall be

held by a court of competent jurisdiction to be illegal, invalid or

unenforceable, the remaining provisions shall remain in full force and effect.

 

11.4                           Waiver.  No waiver of any breach of any provision of

this Agreement shall constitute a waiver of any prior, concurrent or subsequent

breach of the same or any other provisions hereof, and no waiver shall be

effective unless made in writing and signed by an authorized representative of

the waiving party.

 

11.5                           Notice.  All notices required or permitted under this

Agreement will be in writing and delivered by confirmed facsimile transmission,

by courier or overnight delivery service, or by certified mail, and in each

instance will be deemed given upon receipt. 

All communications will be sent to the addresses set forth below or to

such other address as may be specified by a party to the others in accordance

with this Section 11.5.

 

	

  To WES:

  	

   

  	

  To the Partnership:

  
	

   

  	

   

  	

   

  
	

  One Williams Center

  	

   

  	

  c/o WEG GP LLC

  
	

  Tulsa, Oklahoma 

  74172

  	

   

  	

  One Williams Center

  
	

  Attention: 

  Mr. Tony Gehres

  	

   

  	

  Tulsa, Oklahoma 

  74172

  
	

  Facsimile: 

  (918) 573-4503

  	

   

  	

  Attention: 

  Mr. Lonny Townsend

  
	

   

  	

   

  	

  Facsimile: 

  (918) 573-6928

  

 

11.6                           Continuing

Cooperation; Successors and Assigns. 

The parties to this Agreement hereby agree to cooperate in good faith to

give full legal effect to the transactions provided for in this Agreement,

including, without limitation, by executing, delivery and/or filing such other

instruments or certificates as may be reasonably requested by the other party

to this Agreement.  The provisions of

the immediately preceding sentence shall survive the consummation of the

transactions contemplated by this Agreement. 

Each of the Partnership and WES may, upon written notice to, but without

the prior consent of, the other party, assign or transfer its rights hereunder

to the Buyer or any Partnership Entity (in the case of the Partnership) or any

Affiliate of 

 

15

 

WES (in the case

of WES) and, if so assigned or transferred, such transferee shall be entitled

to enforce the rights hereunder so transferred or assigned as if it were a

named party hereto, but no such transfer or assignment shall relieve the

transferor of its obligations hereunder. 

This Agreement shall be binding upon, and inure to the benefit of, the

heirs, devises, executors, administrators, legal representatives, successors

and permitted assigns of the parties hereto.

 

11.7                           Force

Majeure. Except for any obligation to make payments, no party will be

liable for any failure or delay in its performance under this Agreement due to

causes beyond its reasonable control, including, but not limited to, acts of

God, war, riot, embargoes, terrorism, acts of civil or military authorities,

strikes, lockouts, fire, floods, earthquakes, accidents, strikes, or fuel

crises.

 

11.8                           Entire

Agreement.  This Agreement, together

with the exhibits attached hereto, and the provisions of the Purchase Agreement

relating hereto, represent the entire agreement and understanding of the

parties hereto and thereto with reference to the matters set forth herein and

no representations or warranties have been made in connection herewith other

than those expressly set forth herein or therein.  This Agreement, together with the exhibits attached hereto, and

the provisions of the Purchase Agreement relating hereto, supersedes all prior

negotiations, discussions, correspondence, communications, understandings and

agreements between the parties relating to the subject matter hereof and all

prior drafts of such documents (including Exhibit 1.2(a)(iv)(3) to the Purchase

Agreement).  No prior drafts of such

documents and no words or phrases from any such prior drafts shall be

admissible into evidence in any action or suit involving such documents.

 

11.9                           Counterparts.  This Agreement may be executed in two

counterparts, each of which will be deemed an original, but both of which

together will constitute one and the same instrument.

 

11.10                     Publicity.  The parties agree to make appropriate public

press announcements to announce this Agreement, at a mutually agreeable time

and in a mutually agreeable format and manner.

 

11.11                     Third-party Beneficiaries.  This Agreement shall inure solely to the

benefit of and be binding upon WES and the Partnership and their respective

successors and permitted assigns and no other person shall have any right,

remedy, or claim under or by reason of this Agreement.

 

16

 

                IN WITNESS WHEREOF, the parties have caused

this Agreement to be executed and delivered by their duly authorized officers

as of the date first above written.

 

	

  WILLIAMS ENERGY PARTNERS L.P.

  	

  WILLIAMS ENERGY SERVICES, LLC

  
	

   

  	

   

  
	

   

  	

   

  
	

  By:

  	

  WEG GP LLC

  	

   

  
	

   

  	

  its General Partner

  	

   

  
	

   

  	

   

  	

   

  
	

  By: 

  	

     /s/ Don R. Wellendorf

  	

   

  	

  By:

  	

  /s/ Phillip D. Wright

  
	

  Name:

  	

  Don R. Wellendorf

  	

  Name:

  	

  Phillip D. Wright

  
	

  Title:

  	

  Authorized Signatory

  	

  Title:

  	

  Authorized Signatory

  
								

 

17

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00053-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00053-of-00352.parquet"}]]