Document:

exv10w13

EXHIBIT 10.13

WESTERN GAS PARTNERS, LP

2008 LONG-TERM INCENTIVE PLAN

SECTION 1

Purpose of the Plan

     The Western Gas Partners, LP 2008 Long-Term Incentive Plan (the “Plan”) has been adopted by
Western Gas Holdings, LLC, a Delaware limited liability company (the “Company”) and general partner
of Western Gas Partners, LP (the “Partnership”). The purpose of the Plan is to promote the
interests of the Partnership and its unitholders by strengthening its ability to attract, retain
and motivate qualified individuals to serve as Directors and Employees.

SECTION 2

Definitions

     The following terms shall have the meanings set forth in this Section 2:

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

     “Award” means an Option, Unit Appreciation Right, Restricted Unit, Phantom Unit, Other
Unit-Based Award, or a Unit Award granted under the Plan, and includes any tandem DERs granted with
respect to a Phantom Unit.

     “Award Agreement” means the written or electronic agreement by which an Award shall be
evidenced, including applicable terms and conditions of the Award.

     “Board” means the Board of Directors or Managers, as the case may be, of the Company.

     “Change of Control” means, and shall be deemed to have occurred upon one or more of the
following events:

     (i) any “person” or “group” within the meaning of those terms as used in Sections 13(d) and
14(d)(2) of the Exchange Act, other than an Affiliate of the Company, shall become the beneficial
owner, by way of merger, consolidation, recapitalization, reorganization or otherwise, of 50% or
more of the combined voting power of the equity interests in the Company;

     (ii) the members of the Company approve, in one or a series of transactions, a plan of
complete liquidation of the Company;

     (iii) the sale or other disposition by the Company of all or substantially all of its assets
in one or more transactions to any Person other than or an Affiliate of the Company; or

     (iv) the Company or an Affiliate of the Company ceases to be the general partner of the
Partnership.

     Notwithstanding the foregoing, with respect to an Award that is (i) subject to Code Section
409A and (ii) a Change of Control would accelerate the timing of payment thereunder, the term
“Change of Control” shall mean a change in the ownership or effective control of the Company, or in
the ownership of a substantial portion of the assets of the Company as defined in Code Section 409A
and the authoritative guidance issued thereunder, but only to the extent inconsistent with the
above definition, and only to the minimum extent necessary to comply with Code Section 409A as
determined by the Committee.

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     “Code” means the Internal Revenue Code of 1986, as amended and in effect from time to time,
and the temporary or final regulations of the Secretary of the United States Treasury adopted
pursuant to the Code.

     “Committee” means the Board or a committee of the Board appointed by the Board to administer
the Plan.

     “DER” means a contingent right, granted in tandem with a specific Phantom Unit, to receive
with respect to each Phantom Unit subject to the Award an amount in cash, Units and/or Phantom
Units equal in value to the distributions made by the Company with respect to a Unit during the
period such Award is outstanding.

     “Director” means a member of the Board who is not an Employee.

     “Employee” means an employee of the Partnership, the Company, Anadarko Petroleum Corporation
or any other Affiliate of the Company.

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

     “Fair Market Value” means the closing sales price of a Unit on the principal national
securities exchange or other market in which trading in Units occurs on the applicable date (or, if
there is no trading in the Units on such date, on the next preceding date on which there was
trading) as reported in The Wall Street Journal (or other reporting service approved by the
Committee). If Units are not traded on a national securities exchange or other market at the time
a determination of fair market value is required to be made hereunder, the determination of fair
market value shall be made in good faith by the Committee in such a manner as it deems appropriate,
consistent with the requirements of Code Section 409A.

     “Option” means an option to purchase Units granted under the Plan.

     “Other Unit-Based Award” means an Award granted pursuant to Section 6(d) of the Plan.

     “Participant” means an Employee or Director granted an Award under the Plan.

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

     “Phantom Unit” means a notional unit granted under the Plan that upon vesting entitles the
Participant to receive a Unit or an amount of cash equal to the Fair Market Value of a Unit, as
determined by the Committee in its discretion.

     “Restricted Period” means the period established by the Committee with respect to an Award
during which the Award remains subject to forfeiture and is either not exercisable by or payable to
the Participant, as the case may be.

     “Restricted Unit” means a Unit granted under the Plan that is subject to a Restricted Period.

     “Rule 16b-3” means Rule 16b-3 promulgated by the SEC under the Exchange Act or any successor
rule or regulation thereto as in effect from time to time.

     “SEC” means the Securities and Exchange Commission, or any successor thereto.

     “UDR” means a distribution made by the Partnership with respect to a Restricted Unit.

     “Unit” means a common unit of the Partnership.

     “Unit Appreciation Right” or UAR” means a contingent right that entitles the holder to receive
all or part of the excess of the Fair Market Value of a Unit on the exercise date of the UAR over
the exercise price of the UAR. Such excess shall be paid in Units, cash or any combination
thereof, in the discretion of the Committee.

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     “Unit Award” means a grant of a Unit that is not subject to a Restricted Period.

SECTION 3

Administration

     The Plan shall be administered by the Committee. A majority of the Committee shall constitute
a quorum, and the acts of the members of the Committee who are present at any meeting thereof at
which a quorum is present, or acts unanimously approved by the members of the Committee in writing,
shall be the acts of the Committee. Subject to the following and applicable law, the Committee, in
its sole discretion, may delegate any or all of its powers and duties under the Plan, including the
power to grant Awards under the Plan, to the Chief Executive Officer of the Company, subject to
such limitations on such delegated powers and duties as the
Committee may impose, if any. Upon any such delegation, all references in the Plan to the
“Committee”, other than in Section 7, shall be deemed to include the Chief Executive Officer;
provided, however, that such delegation shall not limit the Chief Executive Officer’s right to
receive Awards under the Plan. Notwithstanding the foregoing, the Chief Executive Officer may not
grant Awards to, or take any action with respect to any Award previously granted to, a person who
is an officer subject to Rule 16b-3 or a Director. Subject to the terms of the Plan and applicable
law, and in addition to other express powers and authorizations conferred on the Committee by the
Plan, the Committee shall have full power and authority to: (i) designate Participants; (ii)
determine the type or types of Awards to be granted to a Participant; (iii) determine the number of
Units to be covered by Awards; (iv) determine the terms and conditions of any Award; (v) determine
whether, to what extent, and under what circumstances Awards may be settled, exercised, canceled,
or forfeited; (vi) interpret and administer the Plan and any instrument or agreement relating to an
Award made under the Plan; (vii) establish, amend, suspend, or waive such rules and regulations and
appoint such agents as it shall deem appropriate for the proper administration of the Plan; (viii)
make any other determination and take any other action that the Committee deems necessary or
desirable for the administration of the Plan; and (ix) ensuring the payment of any Award or benefit
hereunder is made in full compliance with the requirements of Code Section 409A. The Committee may
correct any defect or supply any omission or reconcile any inconsistency in the Plan or an Award
Agreement in such manner and to such extent as the Committee deems necessary or appropriate.
Unless otherwise expressly provided in the Plan, all designations, determinations, interpretations,
and other decisions under or with respect to the Plan or any Award shall be within the sole
discretion of the Committee, may be made at any time and shall be final, conclusive, and binding
upon all Persons, including the Partnership, the Company, any Affiliate, any Participant, and any
Participant’s beneficiary of any Award.

SECTION 4

Units

     (a) Limits on Units Deliverable. Subject to adjustment as provided in Section 4(c),
the total aggregate number of Units that may be delivered with respect to Awards under the Plan is
two million two hundred fifty thousand (2,250,000); provided, however, that Units withheld from an
Award to either satisfy the Company’s or an Affiliate’s tax withholding obligations with respect to
the Award or pay the exercise price of an Award shall not be considered to be Units delivered under
the Plan for this purpose. If any Award is forfeited, cancelled, exercised, paid, or otherwise
terminates or expires without the actual delivery of Units pursuant to such Award (the grant of
Restricted Units is not a delivery of Units for this purpose), the Units subject to such Award
shall again be available for Awards under the Plan. There shall not be any limitation on the
number of Awards that may be paid in cash.

     (b) Sources of Units Deliverable Under Awards. Any Units delivered pursuant to an
Award shall consist, in whole or in part, of Units acquired in the open market, from the Company,
the Partnership, any Affiliate or any other Person, or any combination of the foregoing, as
determined by the Committee in its discretion.

     (c) Anti-dilution Adjustments. With respect to any “equity restructuring” event that
could result in an additional compensation expense to the Company pursuant to the provisions of
Financial Accounting Standard (“FAS”) 123R if adjustments to Awards with respect to such event were
discretionary, the Committee shall equitably adjust the number and type of Units covered by each
outstanding Award and the terms and conditions, including the exercise price and performance
criteria (if any), of such Award to equitably reflect such restructuring event and shall adjust the
number and type of Units (or other securities or property) with respect to which Awards may be
granted after such event. With respect to any other similar event that would not result in a FAS
123R accounting charge if the adjustment to Awards with respect to such event were subject to
discretionary action, the Committee shall have complete discretion to adjust Awards in such manner
as it deems appropriate with respect to such other event. Any such adjustment shall be final,
binding and conclusive on all persons claiming any right or interest under the Plan.

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SECTION 5

Eligibility

     Any Employee or Director shall be eligible to be designated a Participant by the Committee and
receive an Award under the Plan.

SECTION 6

Awards

     (a) Options and UARs. The Committee shall have the authority to determine the
Employees and Directors to whom Options and/or UARs shall be granted, the number of Units to be
covered by each Option or UAR, the exercise price therefor, the Restricted Period and other
conditions and limitations applicable to the exercise of the Option or UAR, including the following
terms and conditions and such additional terms and conditions, as the Committee shall determine,
that are not inconsistent with the provisions of the Plan.

     (i) Exercise Price. The exercise price per Unit purchasable under an Option or
subject to a UAR shall be determined by the Committee at the time the Option or UAR is
granted but may not be less than the Fair Market Value of a Unit as of the date of grant of
the Option or UAR.

     (ii) Time and Method of Exercise. The Committee shall determine the exercise
terms and the Restricted Period with respect to an Option or UAR grant, which may include,
without limitation, a provision for accelerated vesting upon the achievement of specified
performance goals or other events, and the method or methods by which payment of the exercise
price with respect to an Option may be made or deemed to have been made, which may include,
without limitation, cash, check acceptable to the Company, withholding Units from the Award,
a “cashless-broker” exercise through procedures approved by the Company, or any combination
of the above methods, having a Fair Market Value on the exercise date equal to the relevant
exercise price. Options and UARs shall in no event have a term longer than ten (10) years
from the date of grant.

     (iii) Forfeitures. Except as otherwise provided in the Award Agreement related
to the Option or UAR grant, upon termination of a Participant’s employment with the Company
and its Affiliates or membership on the Board, whichever is applicable, for any reason during
the applicable Restricted Period, all unvested Options and UARs shall be forfeited by the
Participant. The Committee may, in its discretion, waive in whole or in part such forfeiture
with respect to a Participant’s Options or UARs.

     (b) Restricted Units and Phantom Units. The Committee shall have the authority to
determine the Employees and Directors to whom Restricted Units and Phantom Units shall be granted,
the number of Restricted Units or Phantom Units to be granted to each such Participant, the
Restricted Period, the conditions under which the Restricted Units or Phantom Units may become
vested or forfeited and such other terms and conditions as the Committee may establish with respect
to such Awards.

     (i) DERs. To the extent provided by the Committee, in its discretion, a grant
of Phantom Units may include a tandem DER grant, which may provide that such DERs shall be
paid directly to the Participant, be credited to a bookkeeping account (with or without
interest in the discretion of the Committee), be “reinvested” in Restricted Units or
additional Phantom Units and be subject to the same or different vesting restrictions as the
tandem Phantom Unit Award, or be subject to such other provisions or restrictions as
determined by the Committee in its discretion. Absent a contrary provision in the Award
Agreement, upon a distribution with respect to a Unit, cash equal in value to such
distribution shall be paid promptly to the Participant without vesting restrictions with
respect to each Phantom Unit then held.

     (ii) UDRs. To the extent provided by the Committee, in its discretion, a grant
of Restricted Units may provide that the distributions made by the Company with respect to
the Restricted Units shall be subject to the same forfeiture and other restrictions as the
Restricted Unit and, if restricted, such distributions shall be held, without interest, until
the Restricted Unit vests or is forfeited with the UDR being paid or forfeited at the same
time, as the case may be. In addition, the Committee may provide that such distributions be
used to acquire additional Restricted Units for the Participant. Such additional Restricted
Units may be subject to such vesting and other terms as the Committee may prescribe. Absent
such a

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restriction on the UDRs in the Award Agreement, upon a distribution with respect to
the Restricted Unit, such distribution shall be paid promptly to the holder of the Restricted
Unit without vesting restrictions.

     (iii) Forfeitures. Except as otherwise provided in the terms of the Restricted
Units or Phantom Units Award Agreement, upon termination of a Participant’s employment with
the Company and/or its Affiliates or membership on the Board, whichever is applicable, for
any reason during the applicable Restricted Period, all outstanding, unvested Restricted
Units and Phantom Units awarded the Participant shall be automatically forfeited on such
termination. The Committee may, in its discretion, waive in whole or in part such forfeiture
with respect to a Participant’s Restricted Units and/or Phantom Units.

     (iv) Lapse of Restrictions.

     (A) Phantom Units. Upon or as soon as reasonably practical following the
vesting of each Phantom Unit, subject to the provisions of Section 8(b), the
Participant shall be entitled to receive from the Company one Unit or cash equal to
the Fair Market Value of a Unit, as determined by the Committee in its discretion.

     (B) Restricted Units. Upon or as soon as reasonably practical following
the vesting of each Restricted Unit, subject to satisfying the tax withholding
obligations of Section 8(b), the Participant shall be entitled to have the
restrictions removed from his or her Unit certificate so that the Participant then
holds an unrestricted Unit.

     (c) Unit Awards. Unit Awards may be granted under the Plan to such Employees and/or
Directors and in such amounts as the Committee, in its discretion, may select.

     (d) Other Unit-Based Awards. Other Unit-Based Awards may be granted under the Plan to
such Employees and/or Directors and in such amounts as the Committee, in its discretion, may
select. An Other Unit-Based Award shall be an award denominated or payable in, valued in or
otherwise based on or related to Units, in whole or in part. The Committee shall determine the
terms and conditions of any such Other Unit-Based Award. Upon vesting, an Other Unit-Based Award
may be paid in cash, common units (including Restricted Units) or any combination thereof as
provided in the Award Agreement.

     (e) General.

     (i) Awards May Be Granted Separately or Together. Awards may, in the discretion
of the Committee, be granted either alone or in addition to, in tandem with, or instead of
any other Award granted under the Plan or any award granted under any other plan of the
Partnership, the Company or any Affiliate. Awards granted in addition to or in tandem with
other Awards or awards granted under any other plan of the Company or any Affiliate may be
granted either at the same time as or at a different time from the grant of such other Awards
or awards.

     (ii) Limits on Transfer of Awards.

     (A) Except as provided in Paragraph (C) below, each Option and Unit Appreciation
Right shall be exercisable only by the Participant during the Participant’s lifetime,
or by the person to whom the Participant’s rights shall pass by will or the laws of
descent and distribution.

     (B) Except as provided in Paragraph (C) below, no Award and no right under any
such Award may be assigned, alienated, pledged, attached, sold or otherwise
transferred or encumbered by a Participant and any such purported assignment,
alienation, pledge, attachment, sale, transfer or encumbrance shall be void and
unenforceable against the Company or any Affiliate.

     (C) To the extent specifically provided by the Committee with respect to an
Option or Unit Appreciation Right, an Option or Unit Appreciation Right may be
transferred by a Participant without consideration to immediate family members or
related family trusts, limited partnerships or similar entities or on such terms and
conditions as the Committee may from time to time establish.

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     (iii) Term of Awards. The term of each Award shall be for such period as may be
determined by the Committee.

     (iv) Unit Certificates. All certificates for Units or other securities of the
Company delivered under the Plan pursuant to any Award or the exercise thereof shall be
subject to such stop transfer orders and other restrictions as the Committee may deem
advisable under the Plan or the rules, regulations, and other requirements of the SEC, any
stock exchange upon which such Units or other securities are then listed, and any applicable
federal or state laws, and the Committee may cause a legend or legends to be inscribed on any
such certificates to make appropriate reference to such restrictions.

     (v) Consideration for Grants. Awards may be granted for such consideration,
including services, as the Committee shall determine.

     (vi) Delivery of Units or other Securities and Payment by Participant of
Consideration. Notwithstanding anything in the Plan or any grant agreement to the
contrary, delivery of Units pursuant to the exercise or vesting of an Award
may be deferred for any period during which, in the good faith determination of the
Committee, the Company is not reasonably able to obtain Units to deliver pursuant to such
Award without violating applicable law or the applicable rules or regulations of any
governmental agency or authority or securities exchange. No Units or other securities shall
be delivered pursuant to any Award until payment in full of any amount required to be paid
pursuant to the Plan or the applicable Award Agreement (including, without limitation, any
exercise price or tax withholding) is received by the Company. Units may be delivered to a
Participant by either a physical certificate or certificates or by the establishment of a
book-entry account with the unit transfer agent.

SECTION 7

Amendment and Termination

Except to the extent prohibited by applicable law:

     (a) Amendments to the Plan. Except as required by the rules of the principal
securities exchange on which the Units are traded and subject to Section 7(b) below, the
Board or the Committee may amend, alter, suspend, discontinue, or terminate the Plan in any
manner, including increasing the number of Units available for Awards under the Plan, without
the consent of any Participant, other holder or beneficiary of an Award, or any other Person.

     (b) Amendments to Awards. Subject to Section 7(a), the Committee may waive any
conditions or rights under, amend any terms of, or alter any Award theretofore granted,
provided no change, other than pursuant to Section 7(c), in any Award shall (i) materially
reduce the rights or benefits of a Participant with respect to an Award without the consent
of such Participant, and/or (ii) result in taxation to the Participant under Code Section
409A unless otherwise determined by the Board.

     (c) Actions Upon the Occurrence of Certain Events. Upon the occurrence of a
Change of Control, any change in applicable law or regulation affecting the Plan or Awards
thereunder, or any change in accounting principles affecting the financial statements of the
Partnership or the Company, the Committee, in its sole discretion, without the consent of any
Participant or holder of the Award, and on such terms and conditions as it deems appropriate,
may take any one or more of the following actions in order to prevent dilution or enlargement
of the benefits or potential benefits intended to be made available under the Plan or an
outstanding Award:

     (i) provide for either (A) the termination of any Award in exchange for an amount
of cash, if any, equal to the amount that would have been attained upon the exercise
of such Award or realization of the Participant’s rights (and, for the avoidance of
doubt, if as of the date of the occurrence of such transaction or event the Committee
determines in good faith that no amount would have been attained upon the exercise of
such Award or realization of the Participant’s rights, then such Award may be
terminated by the Company without payment) or (B) the replacement of such Award with
other rights or property selected by the Committee in its sole discretion;

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     (ii) provide that such Award be assumed by the successor or survivor entity, or a
parent or subsidiary thereof, or be exchanged for similar options, rights or awards
covering the equity of the successor or survivor, or a parent or subsidiary thereof,
with appropriate adjustments as to the number and kind of equity interests and prices;

     (iii) make adjustments in the number and type of Units (or other securities or
property) subject to outstanding Awards, and in the number and kind of outstanding
Awards or in the terms and conditions of (including the exercise price), and the
vesting and performance criteria included in, outstanding Awards, or both;

     (iv) provide that such Award shall be exercisable or payable, notwithstanding
anything to the contrary in the Plan or the applicable Award Agreement; and

     (v) provide that the Award cannot be exercised or become payable after such
event, i.e., shall terminate upon such event.

Notwithstanding the foregoing, with respect to an above event that is an “equity
restructuring” event that would be subject to a compensation expense pursuant FAS 123R, the
provisions in Section 4(c) shall control to the extent they are in conflict with the
discretionary provisions of this Section 7.

SECTION 8

General Provisions

     (a) No Rights to Award. No Person shall have any claim to be granted any Award under
the Plan, and there is no obligation for uniformity of treatment of Participants. The terms and
conditions of Awards need not be the same with respect to each recipient.

     (b) Tax Withholding. Unless other arrangements have been made that are acceptable to
the Company, the Company or any Affiliate is authorized to withhold from any Award, from any
payment due or transfer made under any Award or from any compensation or other amount owing to a
Participant the amount (in cash, Units, Units that would otherwise be issued pursuant to such Award
or other property) of any applicable taxes payable in respect of the grant of an Award, its
exercise, the lapse of restrictions thereon, or any payment or transfer under an Award or under the
Plan and to take such other action as may be necessary in the opinion of the Company to satisfy its
withholding obligations for the payment of such taxes.

     (c) No Right to Employment or Services. The grant of an Award shall not be construed
as giving a Participant the right to be retained in the employ of the Partnership, the Company or
any Affiliate or to remain on the Board, as applicable. Furthermore, the Company or an Affiliate
may at any time dismiss a Participant from employment free from any liability or any claim under
the Plan, unless otherwise expressly provided in the Plan, any Award Agreement or other agreement.

     (d) Governing Law. The validity, construction, and effect of the Plan and any rules
and regulations relating to the Plan shall be determined in accordance with the laws of the State
of Texas without regard to its conflicts of laws principles.

     (e) Severability. If any provision of the Plan or any Award is or becomes or is
deemed to be invalid, illegal, or unenforceable in any jurisdiction or as to any Person or Award,
or would disqualify the Plan or any Award under any law deemed applicable by the Committee, such
provision shall be construed or deemed amended to conform to the applicable law or, if it cannot be
construed or deemed amended without, in the determination of the Committee, materially altering the
intent of the Plan or the Award, such provision shall be stricken as to such jurisdiction, Person
or Award and the remainder of the Plan and any such Award shall remain in full force and effect.

     (f) Other Laws. The Committee may refuse to issue or transfer any Units or other
consideration under an Award if, in its sole discretion, it determines that the issuance or
transfer of such Units or such other consideration might violate any applicable law or regulation,
the rules of the principal securities exchange on which the Units are then traded, or entitle the
Company or an Affiliate to recover the same under Section 16(b) of the Exchange Act, and any
payment tendered to the Company by a Participant, other holder or beneficiary in connection with
the exercise of such Award shall be promptly refunded to the relevant Participant, holder or
beneficiary.

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     (g) Code Section 409A

     (i) The Plan is intended to be administered, operated and construed in compliance with
Section 409A of the Code and any guidance issued thereunder. Notwithstanding this or any
other provision of the Plan to the contrary, the Board or the Committee may amend the Plan in
any manner, or take any other action, that either of them determines, in its sole discretion,
is necessary, appropriate or advisable to cause the Plan to comply with Code Section 409A and
any guidance issued thereunder. Any such action, once taken, shall be deemed to be effective
from the earliest date necessary to avoid a violation of Code Section 409A and shall be
final, binding and conclusive on all Participants and other individuals having or claiming
any right or interest under the Plan.

     (ii) Notwithstanding the provisions of the Plan or any Award Agreement, no payment
pursuant to an Award that is subject to Code Section 409A shall be made to a Participant as a
result of such Participant’s “separation from service” (within the meaning of such phrase in
Code Section 409A), within the six-month period following such separation from service (or,
if earlier, the date of death of the employee), if the Participant is a Specified Employee.
For purposes of the previous sentence the term “Specified Employee” is defined in Code
Section 409A and the authoritative guidance thereunder.

     (h) No Trust or Fund Created. Neither the Plan nor any Award shall create or be
construed to create a trust or separate fund of any kind or a fiduciary relationship between the
Company or any participating Affiliate and a Participant or any other Person. To the extent that
any Person acquires a right to receive payments from the Company or any participating Affiliate
pursuant to an Award, such right shall be no greater than the right of any general unsecured
creditor of the Company or any participating Affiliate.

     (i) No Fractional Units. No fractional Units shall be issued or delivered pursuant to
the Plan or any Award, and the Committee shall determine whether cash, other securities, or other
property shall be paid or transferred in lieu of any fractional Units or whether such fractional
Units or any rights thereto shall be canceled, terminated, or otherwise eliminated.

     (j) Headings. Headings are given to the Sections and subsections of the Plan solely
as a convenience to facilitate reference. Such headings shall not be deemed in any way material or
relevant to the construction or interpretation of the Plan or any provision thereof.

     (k) Facility Payment. Any amounts payable hereunder to any person under legal
disability or who, in the judgment of the Committee, is unable to manage properly his financial
affairs, may be paid to the legal representative of such person, or may be applied for the benefit
of such person in any manner that the Committee may select, and the Company shall be relieved of
any further liability for payment of such amounts.

     (l) Gender and Number. Words in the masculine gender shall include the feminine
gender, the plural shall include the singular and the singular shall include the plural.

     (m) Deferrals. The Committee may, to the extent permitted by applicable law, permit
Participants to defer Awards under the Plan. Any such deferrals shall be subject to such terms,
conditions and procedures that the Committee may establish from time to time in its sole discretion
and consistent with the advance and subsequent deferral requirements of Code Section 409A.

     (n) Unfunded Obligations. Any amounts (deferred or otherwise) to be paid to
Participants pursuant to the Plan are unfunded obligations of the Company and or its Affiliates.
Neither the Partnership nor the Company is required to segregate any monies from its general funds,
to create any trusts or to make any special deposits with respect to such unfunded obligation. The
Committee, in its sole discretion, may direct the Partnership or the Company to share with its
Affiliates the costs of a portion of the Awards paid to Participants. Beneficial ownership of any
investments, including trust investments which the Partnership or the Company may make to fulfill
this obligation, shall at all times remain in the Partnership or the Company, as applicable. Any
investments and the creation or maintenance of any trust or any Participant account shall not
create or constitute a trust or a fiduciary relationship between the Committee, the Partnership,
the Company or any Affiliate and a Participant, or otherwise create any vested or beneficial
interest in any Participant or the Participant’s beneficiary or the Participant’s creditors in any
assets of the Partnership, the Company or its Affiliates whatsoever. The Participants shall have
no claim against the Partnership or the Company for any changes in the value of any assets which
may be invested or reinvested by the Partnership or the Company with respect to the Plan.

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     (o) Forfeiture Events.

     (i) If the Partnership or Company is required to prepare an accounting restatement due
to the material noncompliance of the Partnership or Company, as a result of misconduct, with
any financial reporting requirement under the securities laws, and if a Participant knowingly
engaged in the misconduct, was grossly negligent with respect to such misconduct, or
knowingly or grossly negligently failed to prevent the misconduct (whether or not the
Participant is one of the individuals subject to automatic forfeiture under Section 304 of
the Sarbanes-Oxley Act of 2002), the Participant shall reimburse the Partnership or the
Company the amount of any payment in settlement of an Award earned or accrued during the
twelve-month period following the first public issuance or filing with the SEC (whichever
first occurred) of the financial document embodying such financial reporting requirement.

     (ii) The Committee may specify in an Award Agreement that the Participant’s rights,
payments, and benefits with respect to an Award shall be subject to reduction, cancellation,
forfeiture, or recoupment upon the occurrence of certain specified events, in addition to any
otherwise applicable vesting or performance conditions of an Award. Such events may include,
without limitation, termination of employment for cause, violation of material policies that
may apply to the Participant, breach of noncompetition, confidentiality, or other restrictive
covenants that may apply to the Participant, or other conduct by the Participant that is
detrimental to the business or reputation of the Partnership, the Company or any Affiliate.

SECTION 9

Term of the Plan

     The Plan shall be effective on the date it is approved by the unitholders of the Partnership
of the Company, if such approval is required by the rules of the principal securities exchange on
which the Units are traded, or, if such approval is not required, then on the date the Plan is
adopted by the Company and shall continue until the earliest of (a) the date it is terminated by
the Board, (b) all Units available under the Plan have been paid to Participants, or (c) the 10th
anniversary of the date the Plan is approved, as provided in this
Section 9, with respect to any new Awards. However, any Award granted prior to such
termination, and the authority of the Board or the Committee to amend, alter, adjust, suspend,
discontinue, or terminate any such Award or to waive any conditions or rights under such Award,
shall extend beyond such termination date.

     IN WITNESS WHEREOF, the Company has caused the Plan to be executed effective as of April 2,
2008.

	 	 	 	 	 
	 	WESTERN GAS PARTNERS, LP

 	 
	 	By:  	/s/ Robert G. Gwin
 	 
	 	 	Robert G. Gwin 	 
	 	 	President and Chief Executive Officer

Western Gas Holdings, LLC (as General

Partner of Western Gas Partners, LP) 	 
	 

48exv10w15

EXHIBIT 10.15

WESTERN GAS HOLDINGS, LLC

EQUITY INCENTIVE PLAN

SECTION 1. Purpose of the Plan.

     The Western Gas Holdings, LLC Equity Incentive Plan (the “Plan”) has been adopted by Western
Gas Holdings, LLC, a Delaware limited liability company (the “Company”) and the general partner of
Western Gas Partners, LP, a Delaware limited partnership (the “Partnership”). The Plan is intended
to promote the interests of the Company and its indirect parent, Anadarko Petroleum Corporation
(“Anadarko”), by providing to key executives of the Company or an Affiliate incentive compensation
to encourage superior performance.

SECTION 2. Definitions.

     As used in the Plan, the following terms shall have the meanings set forth below:

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

     “Award” means an Incentive Unit and any associated DERs granted under the Plan.

     “Award Agreement” means the written or electronic agreement by which an Award shall be
evidenced.

     “Board” means the Board of Directors of the Company.

     “Change in Capitalization” means any increase in the members’ capital contribution, any change
(including, without limitation, in the case of a dividend or other distribution in respect of
member interests, a change in value) in the member interests or any exchange of member interests
for a different number or kind of shares of ownership or other securities of the Company or another
entity, by reason of a reclassification, recapitalization, merger, consolidation, reorganization,
spin-off, split-up, issuance of warrants or rights, stock dividend, stock split or reverse stock
split, property dividend, or combination or exchange of member interests, repurchase of member
interests, change in corporate structure or otherwise. The following events shall be considered a
Change in Capitalization for the purposes of this Plan, but shall not represent all scenarios for
which a Change in Capitalization could be deemed to have occurred: (a) the issuance by the
Company, Anadarko or any other Affiliate of other ownership interests in the Company; (b) the sale,
transfer or dividend/distribution of assets, member interests or other securities (including
Partnership units) representing more than five percent (5%) of the value of the Company’s total
assets as determined at the end of the most recently completed month, including but not limited to
any sale or transfer by the Company of the Partnership’s general partner interest, the
Partnership’s incentive distribution rights or any Class B units or common units received from the
Partnership as a result of the Company’s election to exercise the incentive distribution rights
reset option under the Partnership Agreement; and (c) the initial public offering of the Company
(or its successor in interest, including in the event the Company has changed its structure to a
corporation or partnership) which may not otherwise constitute a Change of Control of the Company.

     “Change of Control” shall mean the occurrence of either of the following after the effective
date of the Plan with respect to either Anadarko or the Company:

     Change of Control of Anadarko:

49

 

a) any individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the
Exchange Act) (a “Person”) acquires beneficial ownership (within the meaning of Rule 13d-3
promulgated under the Exchange Act) of 20% or more of either (i) the then outstanding shares
of common stock of Anadarko (the “Outstanding Anadarko Common Stock”) or (ii) the combined
voting power of the then outstanding voting securities of Anadarko entitled to vote generally
in the election of directors (the “Outstanding Anadarko Voting Securities”);
provided, however, that for purposes of this subsection (a), the following
acquisitions shall not constitute a Change of Control of Anadarko: (i) any acquisition
directly from Anadarko, (ii)
any acquisition by Anadarko, (iii) any acquisition by any employee benefit plan (or related
trust) sponsored or maintained by Anadarko or any corporation controlled by Anadarko or (iv)
any acquisition pursuant to a transaction which complies with clauses (i), (ii) and (iii) of
subsection (c) of this definition; or

(b) individuals who, as of the effective date of the Plan, constitute the Anadarko Board of
Directors (the “Incumbent Board”) cease for any reason to constitute at least a majority of
the Anadarko Board of Directors; provided, however, that any individual becoming a
director subsequent to the effective date of the Plan whose election, or nomination for
election by Anadarko’s stockholders, was approved by a vote of at least a majority of the
directors then comprising the Incumbent Board shall be considered as though such individual
were a member of the Incumbent Board, but excluding, for this purpose, any such individual
whose initial assumption of office occurs as a result of an actual or threatened election
contest with respect to the election or removal of directors or other actual or threatened
solicitation of proxies or consents by or on behalf of a Person other than the Anadarko Board
of Directors; or

(c) consummation by Anadarko of a reorganization, merger or consolidation or sale or other
disposition of all or substantially all of the assets of Anadarko or the acquisition of
assets of another entity (a “Business Combination”), in each case, unless, following such
Business Combination, (i) all or substantially all of the individuals and entities who were
the beneficial owners, respectively, of the Outstanding Anadarko Common Stock and Outstanding
Anadarko Voting Securities immediately prior to such Business Combination beneficially own,
directly or indirectly, more than 60% of, respectively, the then outstanding shares of common
stock and the combined voting power of the then outstanding voting securities entitled to
vote generally in the election of directors, as the case may be, of the corporation resulting
from such Business Combination (including, without limitation, a corporation which as a
result of such transaction owns Anadarko or all or substantially all of Anadarko’s assets
either directly or through one or more subsidiaries) in substantially the same proportions as
their ownership, immediately prior to such Business Combination of the Outstanding Anadarko
Common Stock and Outstanding Anadarko Voting Securities, as the case may be, (ii) no person
(excluding any employee benefit plan (or related trust) of Anadarko or such corporation
resulting from such Business Combination) beneficially own, directly or indirectly, 20% or
more of, respectively, the then outstanding shares of common stock of the corporation
resulting from such Business Combination or the combined voting power of the then outstanding
voting securities of such corporation except to the extent that such ownership existed prior
to the Business Combination, and (iii) at least a majority of the members of the board of
directors of the corporation resulting from such Business Combination were members of the
Incumbent Board at the time of the execution of the initial agreement, or of the action of
the Anadarko Board of Directors, providing for such Business Combination; or

(d) approval by the stockholders of Anadarko of a complete liquidation or dissolution of
Anadarko.

Notwithstanding the foregoing, with respect to an Award that is (i) subject to Section 409A
and (ii) a Change of Control of Anadarko that would accelerate the timing of payment
thereunder pursuant to Section 6(i), the term “Change of Control” shall mean a change in the
ownership or effective control of Anadarko, or in the ownership of a substantial portion of
the assets of Anadarko as defined in Section 409A, but only to the extent inconsistent with
the above definition, and only to the minimum extent necessary to comply with Section 409A,
as determined by the Committee.

     Change of Control of the Company:

(a) any “person” or “group” within the meaning of those terms as used in Sections 13(d) and
14(d)(2) of the Exchange Act, other than an Affiliate of the Company, shall become the
beneficial owner, by way of merger, consolidation, recapitalization, reorganization or
otherwise, of 50% or more of the combined voting power of the equity interests in the
Company;

50

 

(b) the members of the Company approve, in one or a series of transactions, a plan of
complete liquidation of the Company;

(c) the sale or other disposition by the Company of all or substantially all of its assets in
one or more transactions to any Person other than or an Affiliate of the Company; or

(d) the Company (either directly or indirectly as a result of a corporate restructuring)
becomes wholly or partially owned by the public.

Notwithstanding the foregoing, with respect to an Award that is (i) subject to Section 409A
and (ii) a Change of Control of the Company that would accelerate the timing of payment
thereunder pursuant to Section 6(i), the term “Change of Control” shall mean a change in the
ownership or effective control of the Company, or in the ownership of a substantial portion
of the assets of the Company as defined in Section 409A and the authoritative guidance issued
thereunder, but only to the extent inconsistent with the above definition, and only to the
minimum extent necessary to comply with Section 409A as determined by the Committee.

     “Committee” means the Board or a committee of the Board appointed to administer the Plan.

     “DCF Valuation” means the aggregate dollar value derived by applying a discounted cash flow
methodology to the Company and its operations, and shall include all cash flows inuring to the
Company’s benefit, including but not limited to the cash flow related to assets owned by the
Company related to the Partnership (including but not limited to all incentive distribution rights
(“IDRs”), general partner units, common units, subordinated units, and Class B units (if any)),
calculated according to the following general description, but in any case subject to the sole
discretion and determination of the Committee:

(a) Cash available for distribution to all unitholders of the Partnership in the current (or
most recent) quarter will be multiplied by 4.0 to arrive at an annualized distribution
amount. Contractual IDR payments from the Partnership (with splits determined assuming the
calculated annualized distribution above) will be calculated and applied to determine the
relative general partner and limited partner dollar payout amounts from such annualized
distribution; and

(b) Expected annual distributions to all unitholders of the Partnership for each of the next
four years will then be calculated by using the annualized growth rate in the distribution
from the prior year. Such calculation will be determined by comparing the annualized
distribution calculated in clause (a) above to the actual distribution paid in the prior
year; and

(c) Contractual IDR payments from the Partnership in each of the next four years (with splits
determined by the amount of such future expected distributions) will be calculated and
applied to determine the relative general partner and limited partner dollar payout amounts
from such future expected distributions; and

(d) A terminal value will be calculated as of the fourth year based on the expected cash
payout to the general partner in year 4, multiplied by a number to be determined by the
Committee at the time of calculation, and a discount rate to be determined by the Committee
at the time of calculation; and

(e) The present value of all of the cash flows determined in the above paragraphs will be
determined, utilizing a discount rate to be determined by the Committee at the time of
calculation.

     “DER” means a distribution equivalent right which shall be granted in tandem with each
Incentive Unit, to receive (with respect to each Incentive Unit subject to the Award Agreement) a
credit equal to the value of the dividends or other distributions made by the Company to its
member(s) during the period such Award is outstanding.

     “Determined Value” means the then-current value of the Company as determined from time-to-time
by the Committee, where (a) in advance of the initial public offering of the Company such value
shall be reflected by (i) the DCF Valuation amount, plus (ii) any other value related to any other
assets of the Company, which value has not otherwise been captured by the DCF Valuation
methodology, less (iii) indebtedness of the Company, if any, and (b) upon the closing of an initial
public offering of the Company such value shall be reflected by the aggregate equity value of the
Company as determined using the market price of the Company’s equity securities.

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

51

 

     “Executive” means an executive officer of the Company or an Affiliate thereof.

     “Fundamental Change” means:

	 	(a)	 	the Company ceases to be the general partner of the Partnership; or
	 
	 	(b)	 	the Company ceases to hold or to be entitled to receive the IDRs from the
Partnership, or any Class B units or common units received from the Partnership as a
result of the Company’s election to exercise the IDRs reset option under the Partnership
Agreement.

     “Incentive Unit” means a (notional) unit granted under the Plan which, upon the occurrence of
a Liquidation Event, entitles the Participant to receive an amount of cash equal to the Value of an
Incentive Unit (plus associated DERs, if any).

     “Liquidation Event” means an event that shall cause a Participant’s Awards to vest and become
payable pursuant to Section 6(g). A Liquidation Event shall occur upon the occurrence of both (a)
restrictions imposed on the Incentive Units pursuant to Section 6(b) lapse, and (b) the
earliest occurrence of any one of the following events with respect to an individual Participant:
(i) Change of Control; (ii) the closing of an initial public offering of the Company; (iii)
termination of employment (to the extent termination of employment is specified as a Liquidation
Event in the Award Agreement); (iv) death; (v) disability (as defined in the Anadarko benefit
plans); (vi) a date certain specified in the Award Agreement, if any; or (vii) such other time as
the Committee, in its sole discretion, may determine.

     “Participant” means an Executive granted an Award under this Plan.

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

     “Rule 16b-3” means Rule 16b-3 promulgated by the SEC under the Exchange Act or any successor
rule or regulation thereto as in effect from time to time.

     “SEC” means the Securities and Exchange Commission, or any successor thereto.

     “Section 409A” means Section 409A of the Internal Revenue Code of 1986, as amended, and
regulations promulgated thereunder.

     “Value of an Incentive Unit” means the dollar value ascribed to an Incentive Unit and shall at
all times be calculated by dividing the then-current Determined Value by one million (1,000,000).

SECTION 3. Administration.

     The Plan shall be administered by the Committee. A majority of the Committee shall constitute
a quorum, and the acts of the members of the Committee who are present at any meeting thereof at
which a quorum is present, or acts unanimously approved by the members of the Committee in writing,
shall be the acts of the Committee. Subject to the terms of the Plan and applicable law, and in
addition to other express powers and authorizations conferred on the Committee by the Plan, the
Committee shall have full power and authority to: (i) designate Participants; (ii) determine the
number of Incentive Units (and associated DERs) to be covered by Awards; (iii) determine the terms
and conditions of any Award; (iv) interpret and administer the Plan and any instrument or agreement
relating to a grant made under the Plan; (v) establish, amend, suspend, or waive such rules and
regulations and appoint such agents as it shall deem appropriate for the proper administration of
the Plan; and (vi) make any other determination and take any other action that the Committee deems
necessary or desirable for the administration of the Plan. Subject to Section 7 of the Plan, the
Committee may correct any defect or supply any omission or reconcile any inconsistency in the Plan
or an Award Agreement in such manner and to such extent as the Committee deems necessary or
appropriate. Unless otherwise expressly provided in the Plan, all designations, determinations,
interpretations, and other decisions under or with respect to the Plan or any Award shall be within
the sole discretion of the Committee, may be made at any time and shall be final, conclusive, and
binding upon all Persons, including the Company, the Partnership, any Affiliate, any Participant,
and any beneficiary of any Award.

52

 

SECTION 4. Incentive Units.

     (a) Limits on Incentive Units Granted. Subject to adjustment as provided in Section
4(b), the number of Incentive Units (and associated DERs) that may be granted under the Plan is one
hundred thousand (100,000) Incentive Units. However, if any Award is forfeited, cancelled or
otherwise terminates or expires without payment, the Incentive Units subject to such Award shall
again be available for grants under other Awards under the Plan.

     (b) Adjustments.

     (i) In the event of a Change in Capitalization, the Committee shall, in such manner as
it may deem equitable in preventing the valuation dilution or enlargement of the potential
benefits intended to be provided with respect to all Awards granted under this Plan, adjust
the number of Incentive Units (or other securities or property) with respect to which Awards
are then outstanding and Awards that may be granted in the future. No adjustments may be
made under this Section (absent the written consent of the Participant) that would, in any
respect, reduce the value of such Participant’s Award.

     (ii) In the event of a Fundamental Change, the Committee shall, in such manner as it may
deem equitable to prevent the substantial dilution of benefits intended to be provided with
respect to all Awards granted under this Plan, take all
available action to preserve such benefits, including to the extent possible by
replacing Awards under this Plan with similar awards at Affiliates which have succeeded the
Company with regard to the underlying Fundamental Change.

SECTION 5. Eligibility.

     Any Executive who performs services for the benefit of the Company shall be eligible to be
granted an Award under the Plan by the Committee.

SECTION 6. Awards.

     (a) Grant of Incentive Units. The Committee shall have the authority to determine
the Executives to whom Incentive Units shall be granted and the number of Incentive Units to be
granted to each such Participant. Awards may, in the discretion of the Committee, be granted either
alone or in addition to, in tandem with, or in substitution for any award granted under any other
plan of the Company, Anadarko, the Partnership, or any other Affiliate.

     (b) Restrictions. The Committee shall have the authority to determine the time period
over which the Incentive Units shall be restricted and/or the conditions if any (including but not
limited to any performance metrics) under which the Incentive Units may become unrestricted or may
become forfeited.

     (c) Term of Awards. The term of each Award shall be for such period as may be
determined by the Committee, up to a maximum period of ten years.

     (d) Consideration for Grants. Awards may be granted for such consideration, including
services, as the Committee determines.

     (e) DERs. Each grant of Incentive Units shall include rights to dividends or
distributions made by the Company to its member(s) or other owner(s), and such DER amounts credited
to an Award shall accrue and be subject to the same restrictions and payment requirements as the
Incentive Units with which such DERs are associated.

     (f) Lapse of Restrictions. Upon the satisfaction of the restrictions imposed on an
Award, such restrictions associated with such Award shall lapse, in whole or in part, as applicable
and defined in each Award Agreement.

     (g) Payment of Awards. Award payments shall be made in the form of a lump sum cash
payment to a Participant, equal to the Value of an Incentive Unit for each Incentive Unit (plus any
amounts credited and accrued with respect to DERs associated with such Incentive Units), less
applicable withholding taxes as provided in Section 8(c). Such payment(s) shall be paid as soon as

53

 

practicable following the occurrence a Liquidation Event, but in no event shall such payment be
made later than March 15th of the year following the calendar year in which such
Liquidation Event occurred.

     (h) Forfeitures. Except as otherwise provided in the terms of the Award Agreement,
upon termination a Participant’s employment with Anadarko and its Affiliates all of such
Participant’s Incentive Units (and associated DERs, if any) that have not had restrictions lapse
shall be forfeited as of such termination, except in the event of termination of employment on or
following a Change of Control in which event such Participant’s Award shall vest pursuant to
Section 6(i) and be paid pursuant to Section 6(g). The Committee may, in its discretion, waive in
whole or in part such forfeiture with respect to a Participant’s Award(s).

     (i) Change of Control. Unless specifically provided otherwise in the Award Agreement,
upon a Change of Control all outstanding Awards shall automatically vest and become payable
pursuant to Section 6(g).

     (j) Valuation. The Committee shall from time-to-time calculate and define the
then-current Determined Value. The Committee shall have sole discretion in making such
determination, though it may seek the advice or input of third parties to assist it as it may deem
beneficial or necessary to the accuracy or timeliness of such determination.

SECTION 7. Amendment and Termination.

     Except to the extent prohibited by applicable law:

     (a) Amendments to the Plan. Subject to Section 7(b) below, the Board or
Committee may amend, alter, suspend, discontinue, or terminate the Plan in any manner,
including increasing the number of Incentive Units available for Awards under the Plan,
without the consent of any Participant, other holder or beneficiary of an Award, or any other
Person.

     (b) Amendments to Awards. The Committee may waive any conditions or rights
under, amend any terms of, or alter any Award theretofore granted, provided no change in any
Award shall materially reduce the benefit to a Participant without the consent of such
Participant.

     (c) Actions Upon the Occurrence of Certain Events. Upon the occurrence of any
change in applicable law or regulation affecting the Plan or Awards thereunder, or any change
in accounting principles materially affecting the financial statements of the Company, the
Committee, in its sole discretion and on such terms and conditions as it deems appropriate,
shall take any and all such action as necessary to prevent dilution or enlargement of the
benefits or potential benefits intended to be conferred under the Plan or an outstanding
Award; provided, however, that such actions shall not reduce the benefits or potential
benefits to be realized by a Participant without the express written consent of such
Participant (unless such actions were specifically required by applicable law).

SECTION 8. General Provisions.

     (a) Limits on Transfer of Awards. No Award and no right under any such Award may be
assigned, alienated, pledged, attached, sold or otherwise transferred or encumbered by a
Participant other than by will or the laws of descent and distribution, other than a sale or
disposition to the Company, Anadarko or any Affiliate.

     (b) No Rights to Award. No Person shall have any claim to be granted any Award under
the Plan, and there is no obligation for uniformity of treatment of Participants. The terms and
conditions of Awards need not be the same with respect to each Participant.

     (c) Tax Withholding. The Company shall withhold from an Award any applicable taxes
payable in respect of the grant of the Award, the lapse of restrictions thereon, or any payment
made under the Award and shall take such other action as may be necessary in the opinion of the
Company to satisfy its withholding obligations for the payment of such taxes.

     (d) No Right to Employment. The grant of an Award shall not be construed as giving a
Participant the right to be retained in the employ of the Company, Anadarko or any Affiliate.

54

 

     (e) Governing Law. The validity, construction, and effect of the Plan and any rules
and regulations relating to the Plan shall be determined in accordance with the laws of the State
of Texas without regard to its conflict of laws principles.

     (f) Severability. If any provision of the Plan or any Award is or becomes or is
deemed to be invalid, illegal, or unenforceable in any jurisdiction or as to any Person or Award,
or would disqualify the Plan or any Award under any law deemed applicable by the Committee, such
provision shall be construed or deemed amended to conform to the applicable law, or if it cannot be
construed or deemed amended without, in the determination of the Committee, materially altering the
intent of the Plan or the Award, such provision shall be stricken as to such jurisdiction, Person
or Award and the remainder of the Plan and any such Award shall remain in full force and effect.

     (g) Other Laws. The Committee may refuse to pay any consideration under an Award if,
in its sole discretion, it determines that the payment of such consideration might violate any
applicable law or regulation, the rules of the principal securities exchange on which any
applicable Company securities are then traded, or entitle the Company or an Affiliate to recover
the same under Section 16(b) of the Exchange Act, if applicable.

     (h) No Trust or Fund Created. Neither the Plan nor any Award shall create or be
construed to create a trust or separate fund of any kind or a fiduciary relationship between the
Company and a Participant or any other Person. To the extent that any Person acquires a right to
receive payments from the Company pursuant to an Award, such right shall be no greater than the
right of any general unsecured creditor of the Company or any participating Affiliate.

     (i) Headings. Headings are given to the Sections and subsections of the Plan solely
as a convenience to facilitate reference. Such headings shall not be deemed in any way material or
relevant to the construction or interpretation of the Plan or any provision thereof.

     (j) Facility Payment. Any amounts payable hereunder to any person under legal
disability or who, in the judgment of the Committee, is unable to manage properly his financial
affairs, may be paid to the legal representative of such person, or may be applied for the benefit
of such person in any manner that the Committee may select, and the Company shall be relieved of
any further liability for payment of such amounts.

     (k) Gender and Number. Words in the masculine gender shall include the feminine
gender, the plural shall include the singular and the singular shall include the plural.

     (l) Compliance with Section 409A. Nothing in the Plan or any Award Agreement shall
operate or be construed to cause the Plan or an Award to fail to comply with the requirements of
Section 409A. The applicable provisions of Section 409A and the regulations and guidelines issued
thereunder are hereby incorporated by reference and shall control over any Plan or Award Agreement
provision in conflict therewith.

SECTION 9. Term of the Plan.

     The Plan shall be effective on the date of its approval by the Board and shall continue until
the earlier of (a) the date terminated by the Board or Committee or (b) all Incentive Units
available under the Plan have been paid to Participants. Unless otherwise expressly provided in
the Plan or in an applicable Award Agreement, however, any Award granted prior to such termination,
and the authority of the Committee to amend, alter, adjust, suspend, discontinue, or terminate any
such Award or to waive any conditions or rights under such Award, shall extend beyond such
termination date.

     IN WITNESS WHEREOF, the Company has caused the Plan to be executed effective as of April 2,
2008.

	 	 	 	 	 
	 	WESTERN GAS HOLDINGS, LLC

 	 
	 	By:  	/s/ Robert G. Gwin
 	 
	 	 	Robert G. Gwin 	 
	 	 	President and Chief Executive Officer 	 
	 

55

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