Document:

exv10w5

Execution Version

TAX SHARING AGREEMENT

BY AND AMONG

ANADARKO PETROLEUM CORPORATION

AND

WESTERN GAS PARTNERS, LP

May 14, 2008

 

 

TABLE OF CONTENTS

ARTICLE I

Definitions

	 	 	 	 	 	 	 
	1.1
	 	Definitions	 	 	1	 
	 
	 	 	 	 	 	 
	ARTICLE II

	Preparation and Filing of Tax Returns

	 
	 	 	 	 	 	 
	2.1
	 	Manner of Filing	 	 	3	 
	2.2
	 	Franchise Tax Taxable Period	 	 	4	 
	 
	 	 	 	 	 	 
	ARTICLE III

	Allocation of Taxes

	 
	 	 	 	 	 	 
	3.1
	 	Liability of the Partnership Group for Combined Taxes	 	 	4	 
	3.2
	 	Partnership Group Combined Tax Liability	 	 	4	 
	3.3
	 	Preparation and Delivery of Pro Forma Tax Returns	 	 	5	 
	3.4
	 	Payment of Tax	 	 	5	 
	3.5
	 	Subsequent Changes in Treatment of Tax Items	 	 	5	 
	 
	 	 	 	 	 	 
	ARTICLE IV

	Control of Tax Proceedings; Cooperation and Exchange of Information

	 
	 	 	 	 	 	 
	4.1
	 	Control of Proceedings	 	 	5	 
	4.2
	 	Cooperation and Exchange of Information	 	 	6	 
	 
	 	 	 	 	 	 
	ARTICLE V

	Warranties and Representations; Payment Obligations

	 
	 	 	 	 	 	 
	5.1
	 	Warranties and Representations Relating to Actions of	 	 	 	 
	 
	 	Anadarko and the Partnership	 	 	6	 
	5.2
	 	Calculation of Payment Obligations	 	 	7	 
	5.3
	 	Prompt Performance	 	 	7	 
	5.4
	 	Interest	 	 	7	 
	5.5
	 	Tax Records	 	 	8	 
	5.6
	 	Continuing Covenants	 	 	8	 
	 
	 	 	 	 	 	 
	ARTICLE VI

	Miscellaneous Provisions

	 
	 	 	 	 	 	 
	6.1
	 	Notice	 	 	8	 
	6.2
	 	Required Payments	 	 	8	 
	6.3
	 	Injunctions	 	 	9	 
	6.4
	 	Further Assurances	 	 	9	 
	6.5
	 	Parties in Interest	 	 	9	 
	6.6
	 	Setoff	 	 	9	 
	6.7
	 	Change of Law	 	 	9	 
	6.8
	 	Termination and Survival	 	 	9	 
	6.9
	 	Amendments; No Waivers	 	 	9	 
	6.10
	 	Governing Law and Interpretation	 	 	10	 

 

 

	 	 	 	 	 	 	 
	6.11
	 	Resolution of Certain Disputes	 	 	10	 
	6.12
	 	Confidentiality	 	 	10	 
	6.13
	 	Costs, Expenses and Attorneys’ Fees	 	 	10	 
	6.14
	 	Counterparts	 	 	11	 
	6.15
	 	Severability	 	 	11	 
	6.16
	 	Entire Agreement.	 	 	11	 
	6.17
	 	Assignment	 	 	11	 
	6.18
	 	Fair Meaning	 	 	12	 
	6.19
	 	Titles and Headings	 	 	12	 
	6.20
	 	Construction	 	 	12	 

 

 

TAX SHARING AGREEMENT

BY AND AMONG

ANADARKO PETROLEUM CORPORATION AND

WESTERN GAS PARTNERS, LP

     Tax Sharing Agreement (the “Agreement”), dated this 14th day of May, 2008, by and
among ANADARKO PETROLEUM CORPORATION (“Anadarko”), a Delaware corporation, and WESTERN GAS
PARTNERS, LP (the “Partnership”), a Delaware limited partnership.

RECITALS

     WHEREAS, Anadarko is the common parent of an affiliated group of corporations within the
meaning of Section 1504(a) of the Code (as defined below), which currently files a consolidated
federal income tax return;

     WHEREAS, the Partnership Group (as defined below) includes various entities that may be
required to join with Anadarko in the filing of a consolidated, combined or unitary state tax
return;

     WHEREAS, the Parties (as defined below) wish to set forth the general principles under which
they will allocate and share various Taxes (as defined below) and related liabilities;

     WHEREAS, Anadarko, on behalf of itself and its present and future subsidiaries other than the
Partnership Group (“Anadarko Group”), and the Partnership, on behalf of itself and its present and
future subsidiaries (the “Partnership Group”), are entering into this Agreement to provide for the
allocation among the Anadarko Group and the Partnership Group of all responsibilities, liabilities
and benefits relating to any Tax for which a Combined Return (as defined below) is filed for a
taxable period including or beginning on or after the Effective Date (as defined below) and to
provide for certain other matters;

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

ARTICLE I

Definitions

     1.1 Definitions. The following terms shall have the following meanings (such meanings to be
equally applicable to both the singular and the plural forms of the terms defined):

     “Accounting Referee” is defined in Section 6.11 herein.

     “Anadarko Group” is defined in the Recitals to this Agreement.

     “Code” means the Internal Revenue Code of 1986, as amended, or any successor thereto, as in
effect for the taxable period in question.

-1-

 

     “Combined Group” means a group of corporations or other entities that files a Combined Return.

     “Combined Return” means any Tax Return (other than a Tax Return for U.S. federal income taxes)
filed on a consolidated, combined (including nexus combination, worldwide combination, domestic
combination, line of business combination or any other form of combination) or unitary basis that
includes activities of any member of the Anadarko Group and any member of the Partnership Group.

     “Effective Date” means 7:00 a.m., Central time, on May 14, 2008.

     “Final Determination” means the final resolution of any Tax (or other matter) for a taxable
period, including related interest or penalties, that, under applicable law, is not subject to
further appeal, review or modification through proceedings or otherwise, including (i) by the
expiration of a statute of limitations or a period for the filing of claims for refunds, amending
Tax Returns, appealing from adverse determinations or recovering any refund (including by offset),
(ii) by a decision, judgment, decree or other order by a court of competent jurisdiction, which has
become final and unappealable, (iii) by a closing agreement, an accepted offer in compromise or a
comparable agreement under laws of the particular Tax Authority, (iv) by execution of a form under
the laws of a Tax Authority that is comparable to an Internal Revenue Service Form 870 or 870-AD
(excluding, however, with respect to a particular Tax Item for a particular taxable period any such
form that reserves (whether by its terms or by operation of law) the right of the taxpayer to file
a claim for refund and/or the right of the Tax Authority to assert a further deficiency with
respect to such Tax Item for such period) or (v) by any allowance of a refund or credit, but only
after the expiration of all periods during which such refund may be adjusted.

     “Notice” is defined in Section 6.1 herein.

     “Partnership Group” is defined in the recitals to this Agreement.

     “Partnership Group Combined Tax Liability” means, with respect to any Tax, the Partnership
Group’s liability for such Tax owed with respect to a Combined Return for a taxable period, as
determined under Section 3.2 of this Agreement.

     “Partnership Group Deposit” is defined in Section 3.4 herein.

     “Partnership Group Members” means those entities included in the Partnership Group.

     “Partnership Group Pro Forma Combined Return” means a pro forma Combined Return or other
schedule prepared pursuant to Section 3.2 of this Agreement.

     “Party” means each of Anadarko and the Partnership, and solely for purposes of this
definition, “Anadarko” includes the Anadarko Group and the “Partnership” includes the Partnership
Group. Each of Anadarko and the Partnership shall cause the Anadarko Group and the Partnership
Group, respectively, to comply with this Agreement.

-2-

 

     “Tax Attribute” means a Tax Item of a member of the Partnership Group reflected on a Combined
Return that is comparable to one or more of the following attributes with respect to a U.S. federal
income tax consolidated tax return: a net operating loss, a net capital loss, an unused investment
credit, an unused foreign tax credit, an excess charitable contribution, a U.S. federal minimum tax
credit or a U.S. federal general business credit (but not tax basis or earnings and profits).

     “Tax Authority” means a domestic governmental authority (other than the United States) or any
subdivision, agency, commission or authority thereof or any quasi-governmental or private body
having jurisdiction over the assessment, determination, collection or imposition of any Tax
(excluding the U.S. Internal Revenue Service).

     “Tax Controversy” means any audit, examination, dispute, suit, action, litigation or other
judicial or administrative proceeding initiated by Anadarko or the Partnership or any Tax
Authority.

     “Tax Item” means any item of income, gain, loss, deduction or credit, or other item reflected
on a Tax Return or any Tax Attribute.

     “Tax Return” means any return, report, certificate, form or similar statement or document
(including any related or supporting information or schedule attached thereto and any information
return, amended Tax Return, claim for refund or declaration of estimated tax) required to be
supplied to, or filed with, a Tax Authority in connection with the determination, assessment or
collection of any Tax or the administration of any laws, regulations or administrative requirements
relating to any Tax.

     “Taxes” means all forms of taxation, whenever created or imposed, and whether imposed by a
domestic, local, municipal, governmental, state, federation or other body, but excluding taxes
imposed by the United States, and without limiting the generality of the foregoing, shall include
net income, alternative or add-on minimum, gross income, sales, use, ad valorem, gross receipts,
value added, franchise, profits, license, transfer, recording, withholding, payroll, employment,
excise, severance, stamp, occupation, premium, property, windfall profit, custom duty or other tax,
governmental fee or like assessment or charge of any kind whatsoever, together with any related
interest, penalties or other additions to tax, or additional amounts imposed by any such Tax
Authority.

     Any term used but not capitalized herein that is defined in the Code or in the Treasury
Regulations thereunder shall, to the extent required by the context of the provision at issue, have
the meaning assigned to it in the Code or such regulation.

ARTICLE II

Preparation and Filing of Tax Returns

     2.1 Manner of Filing.

          (a) For periods that include the Effective Date and periods after the Effective Date, Anadarko
shall have the sole and exclusive responsibility for the preparation and filing of, and shall
prepare and file, all Combined Returns or cause to be prepared and filed all Combined

-3-

 

Returns. Anadarko shall be authorized to take any and all action necessary or incidental to
the preparation and filing of a Combined Return, including, without limitation, (i) making
elections and adopting accounting methods, (ii) filing all extensions of time, including extensions
of time for payment of tax, (iii) filing claims for refund or credit or (iv) giving waivers or
bonds.

          (b) For periods that include the Effective Date and periods after the Effective Date, the
Partnership Group shall have the sole and exclusive responsibility for the preparation and filing
of, and shall prepare and file or cause to be prepared and filed, all Tax Returns of the
Partnership Group Members that are not Combined Returns.

          (c) Anadarko shall have sole discretion to include, or cause to be included, in a Combined
Return for any Tax any member of the Partnership Group for which inclusion in such Combined Return
is elective; provided, however, that the Partnership Group Combined Tax Liability for any period
shall not exceed the aggregate of (x) each such elective Partnership Group Member’s liability for
such Tax for such period, computed as if such Partnership Group Member were not included in such
Combined Return and (y) the Partnership Group Combined Tax Liability calculated for the Partnership
Group Members for which inclusion is not elective. Anadarko shall provide pro forma Tax Returns
pursuant to Section 3.5 of this Agreement to support the calculation of the amount of any decrease
in the Partnership Group Combined Tax Liability pursuant to this Section 2.1(c).

     2.2 Franchise Tax Taxable Period. References to “taxable period” for any franchise or other
doing business Tax shall mean the taxable period during which the income, operations, assets or
capital comprising the base of such Tax is measured, regardless of whether the right to do business
for another taxable period is obtained by the payment of such franchise Tax.

ARTICLE III

Allocation of Taxes

     3.1 Liability of the Partnership Group for Combined Taxes. For each Tax for each taxable
period that includes or begins on or after the Effective Date and for which a Combined Return is
filed, the Partnership Group Members included in such Combined Return shall be liable to Anadarko
for an amount equal to the Partnership Group Combined Tax Liability in respect of such Tax.

     3.2 Partnership Group Combined Tax Liability. With respect to each Tax for each taxable
period that includes or begins on or after the Effective Date and for which a member of the
Partnership Group is included in a Combined Return, the Partnership Group Combined Tax Liability
for such Tax for such taxable period shall be the Tax for such taxable period as determined on a
Partnership Group Pro Forma Combined Return prepared:

          (a) by including only the Tax Items of the members of the Partnership Group that are included
in the Combined Return and computing the liability of the Partnership Group Members for such Tax as
if such Partnership Group Members were included in a separate consolidated or unitary group;

          (b) except as provided in Section 3.2(e) hereof, using all elections, accounting methods and
conventions used on the Combined Return for such period;

-4-

 

          (c) applying the Tax rate in effect for the Combined Return of the Combined Group for such
taxable period;

          (d) assuming that the Partnership Group elects not to carry back any net operating losses and

          (e) assuming that the Partnership Group’s utilization of any Tax Attribute carryforward or
carryback is limited to the Tax Attributes of the Partnership Group that would be available if the
Partnership Group Combined Tax Liability for each taxable period ending after January 1, 2008 were
determined in accordance with this Section 3.2.

     3.3 Preparation and Delivery of Pro Forma Tax Returns. Not later than 90 days following the
date on which a Combined Return is filed with the appropriate Tax Authority, Anadarko shall prepare
and deliver to the Partnership the related Partnership Group Pro Forma Combined Return calculating
the Partnership Group Combined Tax Liability attributable to the period covered by such filed
Combined Return.

     3.4 Payment of Tax. Anadarko shall timely pay (or shall cause to be timely paid) any Tax
reflected on a Combined Return and hold the Partnership harmless for all liability for such Tax.
In the event Anadarko is required to make an estimated payment or deposit of any Tax of any
Combined Group which includes any member of the Partnership Group, Anadarko shall calculate the
portion, if any, of such estimated payment or deposit attributable to the Partnership Group using a
methodology similar to that described in Section 3.2 (the “Partnership Group Deposit”) and shall
present such calculation to the Partnership. Within 5 days thereafter, the Partnership shall pay
the Partnership Group Deposit to Anadarko. Within 30 days after delivery by Anadarko of a
Partnership Group Pro Forma Combined Return to the Partnership calculating the Partnership Group
Combined Tax Liability with respect to a Combined Return, the Partnership shall pay to Anadarko
such Partnership Group Combined Tax Liability less the amount of any Partnership Group Deposit
relating to the same Combined Return.

     3.5 Subsequent Changes in Treatment of Tax Items. With respect to any Combined Return for any
taxable period beginning on or after the Effective Date, in the event of a change in the treatment
of any Tax Item of any member of a Combined Group as a result of a Final Determination, within 30
days following such Final Determination (i) Anadarko shall calculate the change, if any, to the
Partnership Group Combined Tax Liability resulting from such change, (ii) Anadarko shall pay any
decrease in the Partnership Group Combined Tax Liability to the Partnership and (iii) the
Partnership shall pay any increase in the Partnership Group Combined Tax Liability to Anadarko.

ARTICLE IV

Control of Tax Proceedings; Cooperation and Exchange of Information

     4.1 Control of Proceedings. Except as provided in this Article IV, Anadarko shall have full
responsibility and discretion in handling, settling or contesting any Tax Controversy involving a
Tax Return for which it has filing responsibility under this Agreement as well as all Tax Returns
for all taxable periods ending before the Effective Date. The Partnership shall have full
responsibility and discretion in handling, settling or contesting any Tax Controversy

-5-

 

involving a Tax Return for which it has filing responsibility under this Agreement. Except as
otherwise provided in this Article IV, any costs incurred in handling, settling or contesting any
Tax Controversy shall be borne by the Party having full responsibility and discretion thereof.

     4.2 Cooperation and Exchange of Information.

          (a) Each Party shall cooperate fully at such time and to the extent reasonably requested by
any other Party in connection with the preparation and filing of any Tax Return or claim for
refund, or the conduct of any audit, dispute, proceeding, suit or action concerning any issues or
other matters considered in this Agreement. Such cooperation shall include, without limitation,
the following: (i) the retention and provision on demand of Tax Returns, books, records (including
those concerning ownership and Tax basis of property which a Party may possess), documentation or
other information relating to the Tax Returns, including accompanying schedules, related workpapers
and documents relating to rulings or other determinations by Taxing Authorities, until the
expiration of the applicable statute of limitations (giving effect to any extension, waiver or
mitigation thereof); (ii) the provision of additional information, including an explanation of
material provided under clause (i) of this Section 4.2(a), to the extent such information is
necessary or reasonably helpful in connection with the foregoing; (iii) the execution of any
document that may be necessary or reasonably helpful in connection with the filing of a Tax Return
by Anadarko, the Partnership or of their respective subsidiaries, or in connection with any audit,
dispute, proceeding, suit or action and (iv) such Party’s commercially reasonable efforts to obtain
any documentation from a governmental authority or a third party that may be necessary or
reasonably helpful in connection with any of the foregoing.

          (b) Each Party shall make its employees and facilities available on a reasonable and mutually
convenient basis in connection with any of the foregoing matters.

          (c) If any Party fails to provide any information requested pursuant to Section 4.2 hereof
within a reasonable period, as determined in good faith by the Party requesting the information,
then the requesting Party shall have the right to engage a public accounting firm to gather such
information, provided that 30 days’ prior written notice is given to the unresponsive Party. If
the unresponsive Party fails to provide the requested information within 30 days of receipt of such
notice, then such unresponsive Party shall permit the requesting Party’s public accounting firm
full access to all appropriate records or other information as reasonably necessary to comply with
this Section 4.2 and shall reimburse the requesting Party or pay directly all costs connected with
the requesting Party’s engagement of the public accounting firm.

ARTICLE V

Warranties and Representations; Payment Obligations

     5.1 Warranties and Representations Relating to Actions of Anadarko and the Partnership. Each
of Anadarko and the Partnership warrants and represents to the other that:

-6-

 

          (a) in the case of Anadarko, it is a corporation duly organized, validly existing and in good
standing under the laws of the State of Delaware and has all requisite power to carry out the
transactions contemplated by this Agreement;

          (b) in the case of the Partnership, it is a limited partnership duly organized, validly
existing and in good standing under the laws of the State of Delaware and has all requisite power
to carry out the transactions contemplated by this Agreement;

          (c) it has duly and validly taken all action necessary to authorize the execution, delivery
and performance of this Agreement and the consummation of the transactions contemplated hereby;

          (d) this Agreement has been duly executed and delivered by it and constitutes its legal, valid
and binding obligation enforceable in accordance with its terms subject, as to the enforcement of
remedies, to (i) applicable bankruptcy, reorganization, insolvency, moratorium or other similar
laws affecting the enforcement of creditors’ rights generally from time to time in effect and (ii)
general principles of equity, whether enforcement is sought in a proceeding at law or in equity and

          (e) the execution and delivery of this Agreement, the consummation of the transactions
contemplated hereby or the compliance with any of the provisions of this Agreement will not (i)
conflict with or result in a breach of any provision of its certificate of incorporation, by-laws,
certificate of limited partnership, limited partnership agreement or general partnership agreement,
as the case may be, (ii) breach, violate or result in a default under any of the terms of any
agreement or other instrument or obligation to which it is a party or by which it or any of its
properties or assets may be bound or (iii) violate any order, writ, injunction, decree, statute,
rule or regulation applicable to it or affecting any of its properties or assets.

     5.2 Calculation of Payment Obligations. Except as otherwise provided under this Agreement, to
the extent that the payor Party has a payment obligation to the payee Party pursuant to this
Agreement, the payee Party shall provide the payor Party with its calculation of the amount of such
obligation. The documentation of such calculation shall provide sufficient detail to permit the
payor Party to reasonably understand the calculation. All payment obligations shall be made to the
payee Party or to the appropriate Tax Authority as specified by the payee Party within 30 days
after delivery by the payee Party to the payor Party of written notice of a payment obligation.
Any disputes with respect to payment obligations shall be resolved in accordance with Section 6.11
below.

     5.3 Prompt Performance. All actions required to be taken by any Party under this Agreement
shall be performed within the time prescribed for performance in this Agreement or if no period is
prescribed, such actions shall be performed promptly.

     5.4 Interest. Payments pursuant to this Agreement that are not made within the period
prescribed therefor in this Agreement shall bear interest (compounded daily) from and including the
date immediately following the last date of such period through and including the date of payment
at a rate equal to the U.S. federal short-term rate or rates established pursuant to Section 6621
of the Code for the period during which such payment is due but unpaid.

-7-

 

     5.5 Tax Records. The Parties to this Agreement hereby agree to retain and provide on proper
demand by any Tax Authority (subject to any applicable privileges) the books, records,
documentation and other information relating to any Tax Return until the later of (i) the
expiration of the applicable statute of limitations (giving effect to any extension, waiver or
mitigation thereof), (ii) the date specified in an applicable records retention agreement entered
into with a Tax Authority, (iii) a Final Determination made with respect to such Tax Return and
(iv) the final resolution of any claim made under this Agreement for which such information is
relevant.

     5.6 Continuing Covenants. Each Party agrees (i) not to take any action reasonably expected to
result in a new or changed Tax Item that is detrimental to any other Party and (ii) to take any
action reasonably requested by any other Party that would reasonably be expected to result in a new
or changed Tax Item that produces a benefit or avoids a detriment to such other Party; provided
that such action does not result in any additional cost not fully compensated for by the requesting
Party. The Parties hereby acknowledge that the preceding sentence is not intended to limit, and
therefore shall not apply to, the rights of the Parties with respect to matters otherwise covered
by this Agreement.

ARTICLE VI

Miscellaneous Provisions

     6.1 Notice. Any notice, demand, claim or other communication required or permitted to be
given under this Agreement (a “Notice”) shall be in writing and may be personally served provided a
receipt is obtained therefor, or may be sent by certified mail return receipt requested postage
prepaid, to the Parties at the following addresses (or at such other address as one Party may
specify by notice to any other Party):

	 	 	 
	Anadarko at:

	 	Anadarko Petroleum Corporation
	 

	 	1201 Lake Robbins Drive
	 

	 	The Woodlands, Texas 77380
	 

	 	Attention: General Counsel
	 

	 	Fax: 832-636-3214
	 
	 	 
	Partnership at:

	 	Western Gas Partners, LP
	 

	 	c/o Western Gas Holdings, LLC
	 

	 	1201 Lake Robbins Drive
	 

	 	The Woodlands, Texas 77380
	 

	 	Attention: President
	 

	 	Fax: 832-636-6001

     A Notice which is delivered personally shall be deemed given as of the date specified on the
written receipt therefor. A Notice mailed as provided herein shall be deemed given on the third
business day following the date so mailed. Notification of a change of address may be given by any
Party to another in the manner provided in this Section 6.1 for providing a Notice.

     6.2 Required Payments. Unless otherwise provided in this Agreement, any payment of Tax
required shall be due within 30 days of a Final Determination of the amount of such Tax.

-8-

 

     6.3 Injunctions. The Parties acknowledge that irreparable damage would occur in the event
that any of the provisions of this Agreement were not performed in accordance with its specific
terms or were otherwise breached. The Parties hereto shall be entitled to an injunction or
injunctions to prevent breaches of the provisions of this Agreement and to enforce specifically the
terms and provisions of this Agreement in any court having jurisdiction, such remedy being in
addition to any other remedy to which they may be entitled at law or in equity.

     6.4 Further Assurances. Subject to the provisions hereof, the Parties hereto shall make,
execute, acknowledge and deliver such other instruments and documents, and take all such other
actions, as may be reasonably required in order to effectuate the purposes of this Agreement and to
consummate the transactions contemplated hereby. Subject to the provisions hereof, each of the
Parties shall, in connection with entering into this Agreement, perform its obligations hereunder
and take any and all actions relating hereto, comply with all applicable laws, regulations, orders
and decrees, obtain all required consents and approvals and make all required filings with any
governmental agency, other regulatory or administrative agency, commission or similar authority and
promptly provide the other Parties with all such information as such Parties may reasonably request
in order to be able to comply with the provisions of this sentence.

     6.5 Parties in Interest. Except as herein otherwise specifically provided, nothing in this
Agreement expressed or implied is intended to confer any right or benefit upon any person, firm or
corporation other than the Parties and their respective successors and permitted assigns.

     6.6 Setoff. Except as provided by Section 2.1(c) of this Agreement, all payments to be made
under this Agreement shall be made without setoff, counterclaim or withholding, all of which are
expressly waived.

     6.7 Change of Law. If, due to any change in applicable law or regulations or the
interpretation thereof by any court of law or other governing body having jurisdiction subsequent
to the date of this Agreement, performance of any provision of this Agreement or any transaction
contemplated hereby shall become impracticable or impossible, the Parties hereto shall use their
best efforts to find and employ an alternative means to achieve the same or substantially the same
result as that contemplated by such provision.

     6.8 Termination and Survival. Notwithstanding anything in this Agreement to the contrary,
this Agreement shall remain in effect and its provisions shall survive for the full period of all
applicable statutes of limitation (giving effect to any extension, waiver or mitigation thereof) or
until otherwise agreed to in writing by Anadarko and the Partnership, or their successors.

     6.9 Amendments; No Waivers.

          (a) Any provision of this Agreement may be amended or waived if, and only if, such amendment
or waiver is in writing and signed, in the case of an amendment, by Anadarko and the Partnership,
or in the case of a waiver, by the Party against whom the waiver is to be effective.

-9-

 

          (b) No failure or delay by any Party in exercising any right, power or privilege hereunder
shall operate as a waiver thereof nor shall any single or partial exercise thereof preclude any
other or further exercise thereof or the exercise of any other right, power or privilege.

     6.10 Governing Law and Interpretation. This Agreement shall be governed by and construed in
accordance with the laws of the State of Delaware applicable to agreements made and to be performed
in the State of Delaware.

     6.11 Resolution of Certain Disputes. Any disagreement between the Parties with respect to any
matter that is the subject of this Agreement, including, without limitation, any disagreement with
respect to any calculation or other determinations by Anadarko hereunder, which is not resolved by
mutual agreement of the Parties, shall be resolved by a nationally recognized independent
accounting firm chosen by and mutually acceptable to the Parties hereto (an “Accounting Referee”).
Such Accounting Referee shall be chosen by the Parties within fifteen (15) business days from the
date on which one Party serves written notice on another Party requesting the appointment of an
Accounting Referee, provided that such notice specifically describes the calculations to be
considered and resolved by the Accounting Referee. In the event the Parties cannot agree on the
selection of an Accounting Referee, then the Accounting Referee shall be any office or branch of
the public accounting firm of KPMG LLP. The Accounting Referee shall resolve any such
disagreements as specified in the notice within 30 days of appointment; provided, however, that no
Party shall be required to deliver any document or take any other action pursuant to this Section
6.11 if it determines that such action would result in the waiver of any legal privilege or any
detriment to its business. Any resolution of an issue submitted to the Accounting Referee shall be
final and binding on the Parties hereto without further recourse. The Parties shall share the
costs and fees of the Accounting Referee equally.

     6.12 Confidentiality. Except to the extent required to protect a Party’s interests in a Tax
Controversy, each Party shall hold and shall cause its consultants and advisors to hold in strict
confidence, unless compelled to disclose by judicial or administrative process or, in the opinion
of its counsel, by other requirements of law, all information (other than any such information
relating solely to the business or affairs of such Party) concerning another Party or its
representatives pursuant to this Agreement (except to the extent that such information can be shown
to have been (i) previously known by the Party to which it was furnished, (ii) in the public domain
through no fault of such Party or (iii) later lawfully acquired from other sources by the Party to
which it was furnished), and each Party shall not release or disclose such information to any other
person, except its auditors, attorneys, financial advisors, bankers and other consultants and
advisors who shall be advised of the provisions of this Agreement. Each Party shall be deemed to
have satisfied its obligation to hold confidential information concerning or supplied by another
Party if it exercises the same care as it takes to preserve confidentiality for its own similar
information.

     6.13 Costs, Expenses and Attorneys’ Fees. Except as expressly set forth in this Agreement,
each Party shall bear its own costs and expenses incurred pursuant to this Agreement. In the event
a Party to this Agreement brings an action or proceeding for the breach or enforcement of this
Agreement, the prevailing party in such action, proceeding or appeal,

-10-

 

whether or not such action, proceeding or appeal proceeds to final judgment, shall be entitled
to recover as an element of its costs, and not as damages, such reasonable attorneys’ fees as may
be awarded in the action, proceeding or appeal in addition to whatever other relief the prevailing
party may be entitled. For purposes of this Section 6.13, the “prevailing party” shall be the
Party who is entitled to recover its costs; a Party not entitled to recover its costs shall not
recover attorneys’ fees. No sum for attorneys’ fees shall be counted in calculating the amount of
the judgment for purposes of determining whether a Party is entitled to recover its costs or
attorneys’ fees.

     6.14 Counterparts. This Agreement may be executed in one or more counterparts, each of which
shall be deemed to be an original, but all of which together shall constitute one and the same
instrument.

     6.15 Severability. The Parties hereby agree that, if any provision of this Agreement should
be adjudicated to be invalid or unenforceable, such provision shall be deemed deleted herefrom with
respect, and only with respect, to the operation of such provision in the particular jurisdiction
in which such adjudication was made, and only to the extent of the invalidity, and any such
invalidity or unenforceability in a particular jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction. All other remaining provisions of this
Agreement shall remain in full force and effect for the particular jurisdiction and all other
jurisdictions.

     6.16 Entire Agreement.

          (a) This Agreement contains the entire agreement between the Parties with respect to the
subject matter hereof and supersedes all other agreements, whether or not written, in respect of
any Tax between the Anadarko Group and the Partnership Group.

          (b) In the event of any conflict or inconsistency between the provisions of this Agreement and
the provisions of any other agreement between the Anadarko Group and the Partnership Group, the
provisions of this Agreement shall take precedence and to such extent shall be deemed to supersede
such conflicting provisions under the other agreement.

     6.17 Assignment. This Agreement is being entered into by Anadarko and the Partnership on
behalf of themselves and each member of the Anadarko Group and the Partnership Group. This
Agreement shall constitute a direct obligation of each such member and shall be deemed to have been
readopted and affirmed on behalf of any entity that becomes a member of the Anadarko Group or the
Partnership Group in the future. Each of Anadarko and the Partnership hereby guarantee the
performance of all actions, agreements and obligations provided for under this Agreement of each
member of the Anadarko Group and the Partnership Group, respectively. Each of Anadarko and the
Partnership shall, upon the written request of the other, cause any of their respective group
members to formally execute this Agreement. This Agreement shall be binding upon, and shall inure
to the benefit of, the successors, assigns and persons controlling any of the entities bound hereby
for so long as such successors, assigns or controlling persons are members of the Anadarko Group or
the Partnership Group or their successors and assigns.

-11-

 

     6.18 Fair Meaning. This Agreement shall be construed in accordance with its fair meaning and
shall not be construed strictly against the drafter.

     6.19 Titles and Headings. Titles and headings to sections herein are inserted for the
convenience of reference only and are not intended to be a part of or to affect the meaning or
interpretation of this Agreement.

     6.20 Construction. In this Agreement, unless the context otherwise requires, the terms
“herein,” “hereof” and “hereunder” refer to this Agreement.

-12-

 

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

	 	 	 	 	 	 	 
	 	 	ANADARKO PETROLEUM CORPORATION	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ James T. Hackett
 

	 	 
	 

	 	Name:
	 	James T. Hackett	 	 
	 

	 	Title:
	 	Chairman, President and Chief
Executive Officer	 	 
	 
	 	 	 	 	 	 
	 	 	WESTERN GAS PARTNERS, LP	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Western Gas Holdings, LLC,

its general partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Robert G. Gwin	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Robert G. Gwin	 	 
	 

	 	 	 	President and Chief Executive Officer	 	 

Signature Page to Tax Sharing Agreementexv10w6

Execution Version

WORKING CAPITAL LOAN AGREEMENT

     This WORKING CAPITAL LOAN AGREEMENT (this “Agreement”) is made as of May 14, 2008 (the
"Effective Date”), between Anadarko Petroleum Corporation, a Delaware corporation, with principal
offices at 1201 Lake Robbins Drive, The Woodlands, Texas 77380 (“Lender”), and Western Gas
Partners, LP, a Delaware limited partnership with principal offices at 1201 Lake Robbins Drive, The
Woodlands, Texas 77380 (“Borrower”).

     For good and valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, Lender and Borrower agree as follows:

1. Loans. Subject to the terms and conditions of this Agreement, from time to time during the
period from the Effective Date to May 14, 2010 (the “Maturity Date”), Lender agrees to make loans
(“Loans") to Borrower in an aggregate principal amount outstanding not to exceed $30,000,000.00
(the “Commitment Amount") at any time. Within the foregoing limits, Borrower may borrow, repay and
reborrow Loans in accordance with the terms and conditions hereof.

2. Repayment of the Loans. Borrower promises to pay the outstanding principal balance of the Loans,
together with interest accrued and outstanding thereon and any other sums due hereunder, on the
Maturity Date or such earlier date upon which the maturity of the Loans may have been accelerated
pursuant to Section 8. Notwithstanding the foregoing, Borrower shall repay the Loans such
that no principal is outstanding for a period of at least fifteen consecutive days during the
twelve month period commencing on the Effective Date and during the twelve month period commencing
on each anniversary thereof.

3. Procedure for Borrowing. Borrower may borrow Loans on any Business Day (together with other
capitalized terms not defined in the body of this Agreement, as defined in Exhibit A) by
notice to Lender in accordance with the procedures set forth in, and subject to the terms of, the
Revolving Credit Agreement, except that: (a) Borrower shall give such notice no later than 12:00
p.m., Houston time, on the date of funding; (b) Borrower shall give such notice to and in a form
acceptable to Lender rather than the applicable agent under the Revolving Credit Agreement; (c) any
term of the Revolving Credit Agreement to the contrary notwithstanding, a Loan may only be made in
US Dollars; and (d) unless a rate and interest period (i) other than one-month LIBOR and (ii)
available under the Revolving Credit Agreement are specified in such notice, each Loan shall bear
interest at the one-month LIBOR rate and be for an Interest Period of one month.

4. Interest. Borrower shall pay interest on the unpaid principal amount of each Loan which bears
interest at the Base Rate or a default rate based on the Base Rate in accordance with the
procedures and terms of the Revolving Credit Agreement. The unpaid principal amount of each Loan
which bears interest at a rate other than the Base Rate or a rate based on the Base Rate shall bear
interest for each day during each Interest Period with respect thereto at a rate per annum
determined in accordance with the procedures and terms of the Revolving Credit Agreement. Without
limiting the generality of the preceding sentence, if Borrower pays the principal of any Loan on
any day other than the last day of the Interest Period relevant thereto and Lender so requests,
then Borrower shall pay “breakage” in accordance with the procedures and terms of the Revolving
Credit Agreement. Notwithstanding the foregoing provisions of this Section 4 or any other
provision of this Agreement, interest on the Loans and other amounts due hereunder at any time
shall be limited to the highest lawful rate that may be charged under the laws of the State of
Texas at such time.

5. Increased Costs; Taxes; Prepayments of Loans. Borrower shall pay increased costs on the Loans
and taxes in connection with the Loans, in each case in accordance with the procedures and terms of
the Revolving Credit Agreement as if the loans were loans thereunder and Lender were a lender
thereunder. Notwithstanding the provisions of Section 4, Borrower may not borrow at any
rate other than the Base Rate at any time when Borrower would not be permitted to borrow at such
rate if Borrower were the borrower under the Revolving Credit Agreement. Subject to Section
1, each Loan and any prepayment of any Loan shall be made in accordance with Sections 2.07 and
2.08 of the Revolving Credit Agreement. Prepayments shall be allocated first, to any Loans bearing
interest at a rate based on the Base Rate, and second, to Loans in the order in which their
Interest Periods terminate.

6. Borrower’s Representations and Warranties. Borrower represents and warrant to Lender that:

	 	(a)	 	Borrower (i) has been duly formed and is validly existing in good standing under the laws
of the State of Delaware and (ii) is qualified to do business as a foreign entity in good
standing in each jurisdiction of the United States in which the ownership of

 

 

	 	 	 	its properties or the conduct of its business requires such qualification and where the failure
to so qualify would be reasonably expected to have a material adverse effect on the Borrower
and its subsidiaries, taken as a whole; and

	 	(b)	 	this Agreement has been duly authorized, executed and delivered by Borrower and constitutes
the valid and binding agreement of Borrower, enforceable in accordance with its terms.

7. Conditions of Lending. The obligation of Lender to make any Loan is subject to the conditions
precedent that:

	 	(a)	 	Each of the representations and warranties set forth in Section 6 is true and
accurate on and as of the date of the making of such Loan; and
	 
	 	(b)	 	no event has occurred and is continuing or would result from the proposed Loan that
constitutes a Default or Event of Default.

8. Events of Default. If one or more of the following events of default (each an “Event of
Default”) shall occur and be continuing:

	 	(a)	 	Borrower shall default in any payment of principal when and as the payment shall become
due and payable, or Borrower shall default in any payment of interest as required herein, or
in the payment of any fees or other amounts, when the same shall become due and payable, and
such default shall continue for a period of three (3) Business Days;
	 
	 	(b)	 	Borrower shall (i) apply for or consent to the appointment of, or the taking of
possession by, a receiver, custodian, trustee or liquidator of itself or of its property,
(ii) admit in writing of its inability to pay its debts as such debts become due, (iii) make
a general assignment for the benefit of its creditors, (iv) commence a voluntary case under
any Bankruptcy Law, (v) file a petition seeking to take advantage of any other law providing
for similar relief of debtors, or (vi) consent or acquiesce in writing to any petition duly
filed against it in any involuntary case under any Bankruptcy Law; or
	 
	 	(c)	 	a proceeding or case shall be commenced, without the application or consent of Borrower
in any court of competent jurisdiction seeking (i) its liquidation, reorganization,
dissolution or winding up, or the composition or readjustment of its debts, (ii) the
appointment of a trustee, receiver, custodian, liquidator or the like of it or of its
assets, or (iii) similar relief in respect of it, under any law providing for the relief of
debtors, and such proceeding or case shall continue undismissed, or unstayed and in effect,
for a period of sixty (60) days (or such longer period, so long as Borrower shall be taking
such action in good faith as shall be reasonably necessary to obtain the timely dismissal or
stay of such proceeding or case); or an order for relief shall be entered in an involuntary
case under any applicable Bankruptcy Law, against Borrower; or
	 
	 	(d)	 	a Change of Control shall occur,

then and in each and every case Lender, by notice in writing to Borrower, may terminate the
commitment of Lender hereunder and/or declare the unpaid balance of the Loans and any other amounts
payable hereunder to be forthwith due and payable, and thereupon such balance shall become so due
and payable without presentation, protest or further demand or notice of any kind, all of which are
hereby expressly waived; provided that in the case of Section 8(b) and Section 8(c)
above, the commitments of Lender hereunder shall automatically terminate and the Loans and any
other amounts payable hereunder shall forthwith be due and payable.

9. Notices. Notices under and in connection with this Agreement shall be given and deemed effective
as provided in Section 9.01 of the Revolving Credit Agreement.

10. Waivers; Amendments. No failure or delay by Lender to exercise any right or power shall operate
as a waiver thereof, nor shall any partial exercise of any such right or power, or any abandonment
or discontinuance of steps to enforce such right or power, preclude any other or further exercise
of such right or power. No waiver of any right or power of Lender in this Agreement shall be
effective unless given in writing signed by Lender. This Agreement may not be amended or modified
except by a writing signed by the parties.

11. Expenses of Enforcement. Borrower shall reimburse Lender on demand for any fees or other
expenses of Lender in connection with the enforcement of this Agreement and the collection of the
Loans and any other amounts due Lender hereunder. Borrower agrees, to the fullest extent permitted
by law, to indemnify and hold harmless Lender and each of its directors, officers, employees and
agents (each an “Indemnified Party”) from and against any and all claims, damages, liabilities and
expenses (including without limitation fees and disbursements of counsel) arising out of or in
connection with any investigation, litigation or proceeding (whether

2

 

or not any Indemnified Party is a party) arising out of, related to or in connection with this
Agreement, the Loans or any transaction in which any proceeds of all or any part of the Loans made
hereunder are applied, provided that such indemnity shall not, as to any Indemnified Party, be
available to the extent that such losses, claims, damages, liabilities or related expenses resulted
from the gross negligence, unlawful conduct or willful misconduct of such Indemnified Party.

12. Successors and Assigns. This Agreement shall be binding on and inure to the benefit of the
parties and their respective successors and permitted assigns. Borrower may not assign this
Agreement or delegate any of its duties hereunder without the express written consent of Lender.

13. Commitment Fee. Borrower shall pay Lender a commitment fee quarterly in arrears on the last day
of each March, June, September and December, commencing on June 30, 2008, and at the Maturity Date
(or earlier date as to which the maturity of the Loans has been accelerated pursuant to Section
8), such commitment fee to be in an amount equal to 0.11% per annum on the average daily unused
Commitment Amount for the relevant period.

14. Governing Law. This Agreement shall be construed in accordance with and governed by the laws of
the State of Texas.

15. Headings; Section References. Headings in this Agreement are for convenience only and shall not
be used to interpret or construe its provisions. References to Sections in this Agreement are to
Sections of this Agreement.

16. Counterparts. This Agreement may be executed in two or more counterparts, each of which shall
be deemed an original but all of which together shall constitute one and the same instrument.

17. Entire Agreement. This instrument and any other loan documents executed in connection herewith
constitute the entire Agreement between Lender and Borrower and may not be contradicted by evidence
of prior, contemporaneous or subsequent oral agreements of the parties. There are no unwritten oral
agreements between the parties.

18. Notices. All notices under this Agreement shall be in writing and delivered to the respective
parties at their principal offices stated at the beginning hereof.

19. No Third Party Beneficiaries. The agreement of Lender to make Loan to Borrower on the terms and
conditions set forth in this Agreement is solely for the benefit of Borrower and no other person
has any rights hereunder against Lender or with respect to the extension of credit contemplated
hereby.

20. Special Exculpation. No claim may be made by Borrower or any other person against Lender,
directors, officers, employees, attorneys or agents of any of them for any special, indirect,
consequential or punitive damages in respect of any claim for breach of contract or any other
theory of liability arising out of or relating to this Agreement or any other financing document or
the transactions contemplated hereby or thereby, or any act, omission or event occurring in
connection therewith, and Borrower hereby waives, releases and agrees not to sue upon any claim for
any such damages, whether or not accrued and whether or not known or suspected to exist in its
favor.

21. Waiver of Jury Trial. Each of Borrower and Lender hereby irrevocably waives, to the fullest
extent permitted by law, any and all right to trial by jury in any legal proceeding arising out of
or relating to this Agreement or the transactions contemplated hereby.

22. Severability. If any term or provision of this Agreement shall be determined to be illegal or
unenforceable, all other terms and provisions of this Agreement shall nevertheless remain effective
and shall be enforced to the fullest extent permitted by applicable law.

23. Further Assurances. The parties agree (a) to furnish upon request to each other such further
information, (b) to execute and deliver to each other such other documents, and (c) to do such
other acts and things, all as the other party may reasonably request for the purpose of carrying
out the intent of this Agreement.

In witness whereof the parties have caused this Agreement to be executed by their proper officers
on the day and year first above written.

3

 

	 	 	 	 	 
	 	Anadarko Petroleum Corporation

 	 
	 	By:  	/s/ Bruce W. Busmire
 	 
	 	 	Bruce W. Busmire 	 
	 	 	Vice President, Chief Accounting Officer and Treasurer 	 
	 
	 	Western Gas Partners, LP

 	 
	 	By:  	Western Gas Holdings, LLC,
 	 
	 	 	its general partner 	 
	 	 	 
	 	By:  	/s/ Robert G. Gwin
 	 
	 	 	Robert G. Gwin 	 
	 	 	President and Chief Executive Officer 	 
	 

Signature Page to Working Capital Loan Agreement

 

 

Exhibit A

As used in the Agreement to which this Exhibit A is attached, the following terms have the
meanings indicated:

     “Base Rate” means the rate used for determining interest on amounts of principal outstanding
from time to time under the Revolving Credit Agreement with respect to which the parties thereto
have not agreed on (i) a specific interest period over which a particular rate shall apply and (ii)
a fixed rate, which may be determined by a formula, for such period.

     “Change of Control” means 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 General Partner’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 General Partner;
(ii) the dissolution or liquidation of the General Partner; (iii) the consolidation or merger of
the General Partner with or into another Person pursuant to a transaction in which the outstanding
membership interests of the General Partner are changed into or exchanged for cash, securities or
other property, other than any such transaction where (a) the outstanding membership interests of
the General Partner are changed into or exchanged for Voting Securities of the surviving
corporation or its parent and (b) the Lender continues to own, directly or indirectly, not less
than a majority of the outstanding Voting Securities of the surviving corporation or its parent
immediately after such transaction; and (iv) other than Lender and its affiliates, 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) of more than
50% of all of the then outstanding membership interests of the General Partner, except in a merger
or consolidation which would not constitute a Change of Control under clause (iii) above.

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

     “General Partner” means Western Gas Holdings, LLC, a Delaware limited liability company
(including any permitted successors and assigns under the Agreement of Limited Partnership of the
Borrower).

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

     “Revolving Credit Agreement” at any time means the revolving credit agreement with the largest
aggregate commitment amount to which Lender is then a party as the borrower, as amended, or if
there is no such revolving credit agreement then in effect, the last revolving credit agreement to
which Lender was a party as the borrower. As of the Effective Date, the Revolving Credit Agreement
is the revolving credit agreement dated as of March 4, 2008 among, inter alia, Anadarko Petroleum
Corporation, JPMorgan Chase Bank, as US Administrative Agent, and the lenders party thereto, as
amended.

     “Voting Securities” means securities of any class of Person entitling the holders thereof to
vote in the election of members of the board of directors or other similar governing body of the
Person, or in the case of a limited partnership, a majority of the general partner interests in
such limited partnership.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00142-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00142-of-00352.parquet"}]]