Document:

exv10w1

Execution Version

ANADARKO PETROLEUM CORPORATION

Fixed Rate Note Due 2038

$260,000,000

     ANADARKO PETROLEUM CORPORATION, a Delaware corporation (herein called the “Company”, which
term includes any successor person), for value received, hereby promises to pay to Western Gas
Partners, LP (“Western”), or registered assigns, the principal sum of Two Hundred and Sixty Million
Dollars ($260,000,000.00 ) on May 14, 2038 (the “Maturity Date”) , and to pay accrued but unpaid
interest on the unpaid principal amount from May 14, 2008 through repayment, quarterly on each
February 1, May 1, August 1 and November 1, at a rate per annum equal to six and one half percent
(6.50%).

     Interest payable hereunder shall be computed on the basis of a year of 360 days comprised of
12 months of 30 days each.

     “Material Adverse Change” means any change occurring since December 31, 2007, in the
consolidated financial position or results of operations of the Company and its subsidiaries taken
as a whole that has had the effect of preventing the Company from carrying on its business or from
meeting its current and anticipated obligations on a timely basis; provided, however, that any
event, condition, change, occurrence or development of a state of circumstances which (a) adversely
affects the oil and gas exploration and development, gas processing and transportation or
hydrocarbon marketing industries generally, including changes in commodity prices or markets,
general market prices and legal or regulatory changes (and in each case does not disproportionately
affect the Company and its subsidiaries considered as a single enterprise as compared to similarly
situated persons), (b) arises out of general economic or industry conditions (and in each case does
not disproportionately affect the Company and its subsidiaries considered as a single enterprise as
compared to similarly situated persons), or (c) arises out of any change in generally accepted
accounting principles (which does not disproportionately affect the Company and its subsidiaries
considered as a single enterprise as compared to similarly situated persons) shall not be
considered in determining whether a Material Adverse Change has occurred.

     “Note” means this Fixed Rate Note Due 2038, dated May 14, 2008.

     “Public Indenture” means the Indenture, dated as of September 19, 2006, between the Borrower
and The Bank of New York Trust Company, N.A., as Trustee.

     “Specified Business Day” means any day that is not a Saturday or Sunday, and that is not a day
on which banking institutions are authorized or obligated by law or executive order to close in New
York, New York.

     Payment of the principal of and any such interest on this Note will be made at the office or
agency of the Company, in such coin or currency of the United States of America as at the time of
payment is legal tender for payment of public and private debts, against surrender of this Note at
the Maturity Date of the principal thereof or any early repayment as provided herein.

     This Note is subject to redemption, in whole or in part, on any Specified Business Day at the
election of the Company upon not less than 30 days’ nor more than 60 days’ notice, at a redemption
price equal to the greater of (1) 100% of the principal amount to be redeemed (the “Redemption
Amount”) or (2) the amount determined by the quotation agent (the “Make Whole Price”) described
below under “Make Whole Calculation,” plus, in each case, accrued but unpaid interest to the
redemption date.

     In the event of redemption of this Note in part only, a new Note or Notes of like tenor for
the unredeemed portion hereof will be issued in the name of the holder hereof upon the cancellation
hereof and all references to “Note” herein shall include the plural.

Make Whole Calculation

     The quotation agent will determine the Make Whole Price by determining the sum of the present
values of the remaining scheduled payments of the principal of, and interest on, the Redemption
Amount, not including any portion of these payments of
interest accrued as of the date on which the Redemption

 

 

Amount is to be redeemed, discounted
to the date on which the Redemption Amount is to be redeemed on a semi-annual basis, assuming a
360-day year consisting of twelve 30-day months, at the adjusted treasury rate described below plus
30 basis points.

     The quotation agent will utilize the following procedures to calculate the adjusted treasury
rate. Western will appoint UBS Securities LLC (“UBS”) or its successor and two or more other
primary U.S. Government securities dealers in New York City as reference dealers and the Company
will appoint UBS or its successor to act as the Company’s quotation agent. If UBS or its successor
is no longer a primary U.S. Government securities dealer, Western will substitute another primary
U.S. Government securities dealer in its place as a reference dealer.

     The quotation agent will select a United States Treasury security which has a maturity
comparable to the remaining maturity of the Note and which would be used in accordance with
customary financial practice to price new issues of corporate debt securities with a maturity
comparable to the remaining maturity of the Note. The reference dealers will provide the quotation
agent with the bid and ask prices for that comparable United States Treasury security as of 5:00
p.m. on the third Specified Business Day before the redemption date. The calculation agent will
calculate the average of the bid and ask prices provided by each reference dealer, eliminate the
highest and the lowest average reference dealer quotations and then calculate the average of the
remaining reference dealer quotations (“the “Comparable Treasury Price”). However, if the
calculation agent obtains fewer than three reference dealer quotations, it will calculate the
average of all the reference dealer quotations and not eliminate any quotations. The adjusted
treasury rate will be the semi-annual equivalent yield to maturity of a security whose price,
expressed as a percentage of its principal amount, is equal to the comparable treasury price.

     The Company represents and warrants to Western that:

     (A) The Company (i) has been duly incorporated and is validly existing and in good standing
under the laws of the State of Delaware, and (ii) is qualified to do business as a foreign
corporation and is 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 reasonably be expected to result in a Material Adverse Change.

     (B) The execution, delivery and performance by the Company of this Note have been duly
authorized by all necessary corporate action of the Company and do not and will not: (i) contravene
the terms of the articles or certificate of incorporation, or bylaws, of the Company; (ii) result
in a breach of or constitute a default under any lease, instrument, contract or other agreement to
which the Company is a party or by which it or its properties may be bound or affected that would
reasonably be expected to result in a Material Adverse Change; or (iii) violate any provision of
any law, rule, regulation, order, judgment, decree or the like binding on or affecting the Company.

     (C) This Note constitutes the legal, valid and binding obligation of the Company, enforceable
against the Company in accordance with its terms, subject to the effect of applicable bankruptcy,
insolvency or similar laws affecting creditors’ rights generally and equitable principles of
general applicability.

     (D) No authorization, consent, approval, license, exemption of, or filing or registration
with, any governmental authority or agency, or approval or consent of any other person or entity
(“Person”), is required for the due execution, delivery or performance by the Company of this Note.

     (E) To the knowledge of the Company, on the date hereof there are no actions, suits, or
proceedings pending or threatened against the Company before any governmental authority as to
which, in the opinion of the Company, there is a reasonable possibility of adverse determinations
that would reasonably be expected, individually or in the aggregate, to result in a Material
Adverse Change.

     (F) The consolidated balance sheets of the Company and its consolidated subsidiaries as of
December 31, 2006 and 2007, and the related consolidated statements of income, stockholders’ equity
and cash flows for each of the years in the three-year period ended December 31, 2007, audited by
KPMG LLP, present fairly, in all material respects, the consolidated financial position of the
Company and its consolidated subsidiaries as of December 31, 2006 and 2007, and their results of
operations, changes in stockholders’ equity and cash flows for each of the years in the three-year
period ended December 31, 2007, in conformity with GAAP applied on a consistent basis.

2

 

     (G) The Company is not an “investment company” as defined in, or subject to regulation under,
the Investment Company Act of 1940.

     (H) The Company has filed all United States Federal income tax returns and all other material
tax returns and reports required to be filed (or obtained extensions with respect thereto) and has
paid all taxes required to have been paid by it, except (i) taxes the validity of which are being
contested in good faith by appropriate proceedings, and with respect to which the Company, to the
extent required by GAAP, has set aside on its books adequate reserves or (ii) to the extent any
failures to do so (individually or in the aggregate) would not reasonably be expected to result in
a Material Adverse Change.

     (I) No Event of Default has occurred and is continuing.

     (J) The making of the loan hereunder does not require any authorization, consent or approval
of, registration or filing with, or any other action by, any governmental authority or any other
Person (including shareholders or any class of directors, whether interested or disinterested, of
the Company or any other Person), nor is any such authorization, consent, approval, registration,
filing or other action necessary for the validity or enforceability of this Note, except such as
have been obtained or made and are in full force and effect.

     So long as any principal, interest or other amount due hereunder shall remain unpaid, the
Company agrees that:

     (1) The Company shall furnish to Western, promptly after the Company has knowledge or becomes
aware thereof, notice of (a) the occurrence of any Event of Default (as defined below); (b) the
filing or commencement of any action, suit or proceeding by or before any arbitrator or
governmental authority against or affecting the Company that if adversely determined would
reasonably be expected to result in a Material Adverse Change; and (c) any other development that
results in, or would reasonably be expected to result in, a Material Adverse Change.

     (2) The Company will comply with the provisions of Sections 1004 and 1005 of the Public
Indenture (a true and complete copy of which the Company hereby represents has been furnished to
Western), which provisions, together with related definitions, are hereby incorporated herein by
reference for the benefit of Western and shall continue in effect for purposes of this paragraph,
regardless of the termination, or any amendment or waiver of, or any consent to any deviation from
or other modification of, the Public Indenture; provided, however, that, for purposes of this
paragraph, (a) references in the Public Indenture to “the Securities” shall be deemed to refer to
the respective obligations of the Company to pay the principal of and interest of this Note, and
(b) references in the Public Indenture to “this Indenture” and to “supplemental indentures” shall
be deemed to refer to this Note and amendments or supplements to this Note, respectively.

     (3) The Company shall comply with all laws, rules, regulations and orders of any governmental
authority applicable to it or its property, except where any failures to do so, individually or in
the aggregate, would not reasonably be expected to result in a Material Adverse Change.

     (4) The Company will at all times maintain, and will cause its subsidiaries to maintain, with
financially sound and reputable insurers, insurance of the kinds and covering the risks and in the
relative proportionate amounts (including as to self-insurance) consistent with that carried by
companies engaged in the same or similar businesses and similarly situated; provided, that the
Company shall not be required to maintain insurance against risks or in amounts no longer
economically available, on a de novo or renewal basis, as applicable, to the Company and other
companies engaged in the same or similar businesses and similarly situated.

     (5) In the event that the Company is not required to file information with the Securities and
Exchange Commission (the “SEC”) pursuant to the Securities Exchange Act of 1934, as amended (“the
Exchange Act”), the Company will provide to Western, in accordance with the rules and regulations
prescribed from time to time by the SEC, any financial information which may be required pursuant
to the Exchange Act in respect of the issuer of a security listed and registered on a national
securities exchange as may be prescribed in such rules and regulations.

     Any of the following events which shall occur shall constitute an “Event of Default”:

     (i) The Company shall fail to pay when due any amount of principal hereof;

3

 

     (ii) The Company shall fail to pay when due any interest hereon or any other amount payable
hereunder, and such failure shall continue unremedied for five (5) Specified Business Days;

     (iii) Any representation or warranty by the Company under or in connection with this Note
shall prove to have been incorrect in any material respect when made;

     (iv) The Company shall fail to perform or observe any other term, covenant or agreement
contained in this Note on its part to be performed or observed, and such failure shall remain
unremedied for a period of thirty (30) days from the date Western provides notice in writing of
such occurrence;

     (v) (a) The Company shall be dissolved, liquidated, wound up or cease its corporate existence
or cease to conduct its business in the ordinary course without the prior authorization of Western;
or (b) the Company (1) shall make a general assignment for the benefit of creditors, or shall
generally fail to pay, or admit in writing its inability to pay, its debts as they become due,
subject to applicable grace periods, if any, whether at stated maturity or otherwise; (2) shall
commence any voluntary Insolvency Proceeding; or (3) shall take any action to effectuate or
authorize any of the foregoing;

     (vi) (a) Any involuntary Insolvency Proceeding (as defined below) is commenced or filed
against the Company, or any writ, judgment, warrant of attachment, execution or similar process is
issued or levied against a substantial part of the Company’s properties and such Insolvency
Proceeding shall not be dismissed, or such writ, judgment, warrant of attachment, execution or
similar process shall not be released, vacated or fully bonded within sixty (60) days after
commencement, filing or levy; (b) the Company admits the material allegations of a petition against
it in any Insolvency Proceeding, or an order for relief (or similar order under non-U.S. law) is
ordered in any Insolvency Proceeding; or (c) the Company acquiesces in the appointment of a
receiver, trustee, custodian, conservator, liquidator, mortgagee in possession (or agent therefor),
or other similar Person for itself or a substantial portion of its property or business.

     (vii) The Company shall (a) default in the payment of principal of any indebtedness in an
aggregate principal amount in excess of $100,000,000 (other than this Note) beyond the period of
grace, if any, provided in the instrument or agreement under which such indebtedness was created as
and when the same shall become due and payable, and such default shall have resulted in such
indebtedness being declared due and payable prior to its stated maturity, or (b) default in the
observance or performance of any other agreement or condition relating to any such indebtedness or
contained in any instrument or agreement evidencing, securing or relating thereto, and such default
shall have resulted in such indebtedness being declared due and payable prior to its stated
maturity.

     (vii) the Company shall default in the performance of any term, condition, covenant or
agreement contained in the Public Indenture and such default shall have resulted in any of the
Securities (as defined in the Public Indenture) being declared due and payable prior to the date on
which such Securities would otherwise have become due and payable.

     (viii) one or more judgments for the payment of money in an aggregate amount in excess of
$100,000,000 shall be rendered against the Company and the same shall remain undischarged for a
period of thirty (30) consecutive days during which execution shall not be effectively stayed, or
any action shall be legally taken by a judgment creditor to attach or levy upon any assets of the
Company to enforce any such judgment.

     As used herein, “Insolvency Proceeding” means (i) any case, action or proceeding before any
court or other governmental agency or authority relating to bankruptcy, reorganization, insolvency,
liquidation, receivership, dissolution, winding-up or relief of debtors, or (ii) any general
assignment for the benefit of creditors, composition, marshalling of assets for creditors, or
other, similar arrangement in respect of its creditors generally or any substantial portion of its
creditors, in each case undertaken under U.S. federal, state or foreign law, including the
Bankruptcy Code.

     As used herein, “Bankruptcy Code” means Title 11 of the United States Code entitled
“Bankruptcy,” as now and hereafter in effect, or any successor statute.

     If any Event of Default shall occur and be continuing, Western may by notice to the Company
declare the entire unpaid principal amount of this Note, all interest accrued and unpaid hereon and
all other amounts due hereunder to be forthwith due and payable, whereupon the principal hereof,
all such accrued interest and all such other amounts shall become and be forthwith due and payable,
without presentment, demand, protest or further notice of any kind, all of which are hereby
expressly waived by the Company,

4

 

provided that if an event described in paragraph (iv) or (v) above
shall occur, the result which would otherwise occur only upon giving of notice by Western to the
Company as specified above shall occur automatically, without the giving of any such notice.

     The Company agrees to pay on demand all the losses, costs, and expenses (including, without
limitation, attorneys’ fees and disbursements) which Western incurs in connection with enforcement
of this Note, or the protection or preservation of Western’s
rights under this Note, whether by judicial proceedings or otherwise. Such costs and expenses
include, without limitation, those incurred in connection with any workout or refinancing, or any
bankruptcy, insolvency, liquidation or similar proceedings.

     No single or partial exercise of any power under this Note shall preclude any other or further
exercise of such power or exercise of any other power. No delay or omission on the part of Western
in exercising any right under this Note shall operate as a waiver of such right or any other right
hereunder.

     This Note shall be binding on each of the Company and Western and their respective successors
and assigns. Neither party may assign or transfer this Note or any of its obligations hereunder
without the other party’s prior written consent.

     No provision of this Note shall alter or impair the obligation of the Company, which is
absolute and unconditional, to pay the principal of and any premium and interest on this Note at
the times, place and rate, and in the coin or currency, herein prescribed, subject to the Company’s
right to redeem all or a portion of this Note as provided herein or as otherwise agreed to by the
parties.

     The transfer of this Note is registrable with the Company, upon surrender of this Note for
registration of transfer at the office or agency of the Company, duly endorsed by, or accompanied
by a written instrument of transfer in form satisfactory to the Company duly executed by Western or
any successor holder hereof or his attorney duly authorized in writing, and thereupon one or more
new Notes of like tenor, of authorized denominations and for the same aggregate principal amount,
will be issued to the designated transferee or transferees.

     No service charge shall be made for any such registration of transfer or exchange, but the
Company may require payment of a sum sufficient to cover any tax or other governmental charge
payable in connection therewith.

     Prior to due presentment of this Note for registration of transfer, the Company may treat the
person in whose name this Note is registered as the owner hereof for all purposes, whether or not
this Note be overdue, and the Company shall not be affected by notice to the contrary.

     This Note shall be governed by and construed in accordance with the law of the State of Texas.

The remainder of this page intentionally left blank.

5

 

     IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed this
14th day of May, 2008.

	 	 	 	 	 	 	 
	 	 	ANADARKO PETROLEUM CORPORATION	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:
	 	Bruce W. Busmire
 

Bruce W. Busmire
	 	 
	 

	 	Title:
	 	Vice President, Chief Accounting Officer and Treasurer	 	 

Signature Page to Anadarko Petroleum Corporation

Fixed Rate Note Due 2038 — $260,000,000exv10w2

Execution Version

CONTRIBUTION, CONVEYANCE AND ASSUMPTION

AGREEMENT

By and Among

WESTERN GAS PARTNERS, LP

WESTERN GAS HOLDINGS, LLC

ANADARKO PETROLEUM CORPORATION

WGR HOLDINGS, LLC

WESTERN GAS RESOURCES, INC.

WGR ASSET HOLDING COMPANY LLC

WESTERN GAS OPERATING, LLC

And

WGR OPERATING, LP

Dated as of May 14, 2008

 

 

CONTRIBUTION, CONVEYANCE AND ASSUMPTION

AGREEMENT

     This Contribution, Conveyance and Assumption Agreement, dated as of May 14, 2008 (this
“Agreement”), is by and among Western Gas Partners, LP, a Delaware limited partnership (the
“Partnership”), Western Gas Holdings, LLC, a Delaware limited liability company and the general
partner of the Partnership (the “General Partner”), Anadarko Petroleum Corporation, a Delaware
corporation (“Anadarko”), WGR Holdings, LLC, a Delaware limited liability company (“WGR Holdings”),
Western Gas Resources, Inc., a Delaware corporation (“WGR”), WGR Asset Holding Company LLC, a
Delaware limited liability company (“Asset HoldCo”), Western Gas Operating, LLC, a Delaware limited
liability company (“Operating GP”), and WGR Operating, LP, a Delaware limited partnership (“OLP”).
The above-named entities are sometimes referred to in this Agreement each as a “Party” and
collectively as the “Parties.” Capitalized terms used herein shall have the meanings assigned to
such terms in Article I.

RECITALS

     WHEREAS, the General Partner and Asset HoldCo have formed the Partnership, pursuant to the
Delaware Revised Uniform Limited Partnership Act (the “Delaware LP Act”), for the purpose of
engaging in any business activity that is approved by the General Partner and that lawfully may be
conducted by a limited partnership organized pursuant to the Delaware LP Act.

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

	 	1.	 	Asset HoldCo formed WGR Holdings under the terms of the Delaware Limited
Liability Company Act (the “Delaware LLC Act”) and contributed $4,000 in exchange for
all of the member interests in WGR Holdings.
	 
	 	2.	 	Asset HoldCo formed the General Partner under the terms of the Delaware LLC Act
and contributed $1,000 in exchange for all of the membership interests in the General
Partner.
	 
	 	3.	 	The General Partner and Asset HoldCo formed the Partnership under the terms of
the Delaware LP Act and contributed $60 and $2,940, respectively, in exchange for a 2%
general partner interest and a 98% limited partner interest, respectively, in the
Partnership.
	 
	 	4.	 	Asset HoldCo contributed all of the membership interests in the General Partner
and the 98% limited partner interest in the Partnership to WGR Holdings.
	 
	 	5.	 	The Partnership formed Operating GP under the terms of the Delaware LLC Act and
contributed $1,000 in exchange for all of the membership interests in Operating GP.
	 
	 	6.	 	Operating GP and the Partnership formed OLP under the terms of the Delaware LP
Act and contributed $0.10 and $999.90, respectively, in exchange for a 0.01%

 

 

	 	 	 	general partner interest and a 99.99% limited partner interest, respectively, in
OLP.
	 
	 	7.	 	Asset HoldCo distributed all of the membership interests in WGR Holdings to
WGR.

     WHEREAS, concurrently with the consummation of the transactions contemplated hereby, each of
the following transactions shall occur:

	 	1.	 	Asset HoldCo will distribute all of its membership interests in Anadarko
Gathering Company LLC, a Delaware limited liability company (“AGC”), Pinnacle Gas
Treating LLC, a Texas limited liability company (“PGT”) and MIGC LLC, a Delaware
limited liability company (“MIGC”), to WGR.
	 
	 	2.	 	WGR will contribute (on behalf of WGR Holdings) a portion of its membership
interest in AGC with a value equal to 2% of the equity value of the Partnership based
on upon the pricing of its initial public offering (the “GP Contribution Interest”) to
the General Partner.
	 
	 	3.	 	WGR will convey its remaining membership interest in AGC as well as all of the
membership interest in Pinnacle and MIGC (collectively, the “Partnership Contribution
Interests”) to WGR Holdings.
	 
	 	4.	 	The General Partner will contribute the GP Contribution Interest to the
Partnership in exchange for (i) 1,083,115 general partner units in the Partnership
representing a continuation of its 2% general partner interest in the Partnership and
(ii) the Incentive Distribution Rights.
	 
	 	5.	 	WGR Holdings will contribute the Partnership Contribution Interests to the
Partnership in exchange for (i) 4,973,806 Common Units representing a 9.1843% limited
partner interest in the Partnership, (ii) 26,536,306 Subordinated Units representing a
49.0% limited partner interest in the Partnership, (iii) the right to receive a
distribution of $14,265,625 as a reimbursement for certain capital expenditures and
(iv) the right to receive, upon the earlier to occur of the expiration of the
Over-Allotment Option period or the exercise in full of the Over-Allotment Option, (A)
a number of additional Common Units that is equal to the excess, if any, of (x)
2,812,500 over (y) the aggregate number of Common Units, if any, actually purchased by
and issued to the Underwriters pursuant to the exercise of the Over-Allotment Option on
the Option Closing Date(s), and (B) a reimbursement of pre-formation capital
expenditures in an amount equal to the aggregate amount of cash, if any, contributed by
the Underwriters to the Partnership on the Option Closing Date(s) with respect to
Common Units purchased by and issued to the Underwriters pursuant to each exercise of
the Over-Allotment Option, if any.
	 
	 	6.	 	The Partnership will contribute all of the membership interests in AGC,
Pinnacle and MIGC to OLP, of which 0.01% of such membership interest contributed to OLP
shall be contributed on behalf of Operating GP.

2

 

	 	7.	 	The Partnership will (i) pay transaction expenses estimated to be approximately
$5.0 million and (ii) loan $260.0 million to Anadarko pursuant to a 30-year note
bearing interest at a fixed annual rate of 6.50%.
	 
	 	8.	 	The 98% limited partner interest in the Partnership held by WGR Holdings and
the 2% general partner interest in the Partnership held by the General Partner will be
redeemed and the respective initial capital contributions of Asset HoldCo and the
General Partner will thereupon be refunded, and any interest or other profit that may
have resulted from the investment or other use of such capital contributions will be
distributed to WGR Holdings and the General Partner in proportion to such capital
contributions.
	 
	 	9.	 	The agreements of limited partnership and the limited liability company
agreements of the aforementioned entities will be amended and restated to the extent
necessary to reflect the applicable matters set forth above and contained in this
Agreement.

     WHEREAS, at the Effective Time, the public, through the Underwriters, will purchase from the
Partnership for $309,375,000 million in cash, less the amount of $20,109,375 payable to the
Underwriters after taking into account the Underwriters’ discount of 6.0% and the structuring fee
of $1,546,875 payable to UBS Securities LLC, 18,750,000 Common Units owned by the Partnership on
such date (representing a 34.6224% limited partner interest in the Partnership).

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

ARTICLE I

DEFINITIONS

     The terms set forth below in this Article I shall have the meanings ascribed to them below or
in the part of this Agreement referred to below:

     “Common Units” means the common units representing limited partner interests in the
Partnership.

     “Commission” means the U.S. Securities and Exchange Commission.

     “Effective Time” means immediately prior to the closing of the initial public offering
pursuant to the Underwriting Agreement.

     “Incentive Distribution Rights” has the meaning assigned to such term in the
Partnership Agreement.

     “Option Closing Date” has the meaning assigned to such term in the Partnership
Agreement.

3

 

     “Over-Allotment Option” has the meaning assigned to such term in the Partnership
Agreement.

     “Partnership Agreement” means the First Amended and Restated Agreement of Limited
Partnership of the Partnership dated as of May 14, 2008.

     “Registration Statement” means the Registration Statement on Form S-1 filed with the
Commission (Registration No. 333-146700), as amended and effective at the Effective Time.

     “Subordinated Units” has the meaning assigned to such term in the Partnership
Agreement.

     “Securities Act” means the Securities Act of 1933, as amended.

     “Underwriters” means those underwriters listed in the Underwriting Agreement.

     “Underwriting Agreement” means that certain Underwriting Agreement between UBS
Securities LLC, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC and Morgan
Stanley & Co. Incorporated, as representatives of the Underwriters, the General Partner, the
Partnership, Anadarko, WGR and WGR Holdings, dated as of May 8, 2008.

ARTICLE II

CONTRIBUTION, ACKNOWLEDGEMENTS AND DISTRIBUTIONS

     Section 2.1 Distribution of the AGC, Pinnacle and MIGC Interests by Asset HoldCo to
WGR. Asset HoldCo hereby grants, distributes, bargains, conveys, assigns, transfers, sets over
and delivers to WGR, its successors and assigns, for its and their own use forever, all right,
title and interest in and to its entire membership interests in AGC, Pinnacle and MIGC, and WGR
hereby accepts such membership interests.

     Section 2.2 Contribution of the GP Contribution Interest by WGR to the General
Partner. On behalf of WGR Holdings, WGR hereby grants, contributes, bargains, conveys,
assigns, transfers, sets over and delivers to the General Partner, its successors and its assigns,
for its and their own use forever, all right, title and interest in and to the GP Contribution
Interest, and the General Partner hereby accepts such GP Contribution Interest.

     Section 2.3 Contribution of the Partnership Contribution Interests by WGR to WGR
Holdings. WGR hereby grants, contributes, bargains, conveys, assigns, transfers, sets over and
delivers to WGR Holdings, its successors and its assigns, for its and their own use forever, all
right, title and interest in and to the Partnership Contribution Interests, and WGR Holdings hereby
accepts such Partnership Contribution Interests.

     Section 2.4 Contribution of the GP Contribution Interest by the General Partner to the
Partnership. The General Partner hereby grants, contributes, bargains, conveys, assigns,
transfers, sets over and delivers to the Partnership, its successors and its assigns, for its and
their own use forever, all right, title and interest in and to the GP Contribution Interest, as a
capital contribution, in exchange for (i) 1,083,115 general partner units representing a
continuation of its 2% general partner interest in the Partnership and (ii) the issuance of the

4

 

Incentive Distribution Rights, and the Partnership hereby accepts the GP Contribution Interest
as a contribution to the capital of the Partnership.

     Section 2.5 Contribution of the Partnership Contribution Interests by WGR Holdings to the
Partnership. WGR Holdings hereby grants, contributes, bargains, conveys, assigns, transfers,
sets over and delivers to the Partnership, its successors and its assigns, for its and their own
use forever, all right, title and interest in and to the Partnership Contribution Interests, as a
capital contribution, in exchange for (i) 4,973,806 Common Units representing a 9.1843% limited
partner interest in the Partnership, (ii) 26,536,306 Subordinated Units representing a 49.0%
limited partner interest in the Partnership, (iii) the right to receive a distribution of
$14,265,625 as a reimbursement for certain capital expenditures and (iv) the right to receive, upon
the earlier to occur of the expiration of the Over-Allotment Option period or the exercise in full
of the Over-Allotment Option, a number of additional Common Units that is equal to the excess, if
any, of (x) 2,812,500 over (y) the aggregate number of Common Units, if any, actually purchased by
and issued to the Underwriters pursuant to the exercise of the Over-Allotment Option on the Option
Closing Date(s), and (B) a reimbursement of pre-formation capital expenditures in an amount equal
to the aggregate amount of cash, if any, contributed by the Underwriters to the Partnership on the
Option Closing Date(s) with respect to Common Units purchased by and issued to the Underwriters
pursuant to each exercise of the Over-Allotment Option, if any. The Partnership hereby accepts the
Partnership Contribution Interests as a contribution to the capital of the Partnership.

     Section 2.6 Contribution of the AGC, Pinnacle and MIGC Interests by the Partnership to
OLP. The Partnership hereby grants, contributes, bargains, conveys, assigns, transfers, sets
over and delivers to OLP, its successors and its assigns, for its and their own use forever, all
right, title and interest in and to the Partnership’s entire membership interests in AGC, Pinnacle
and MIGC, of which 0.01% of such membership interest contributed to OLP shall be contributed on
behalf of Operating GP, and OLP hereby accepts such membership interests.

     Section 2.7 Underwriters’ Cash Contribution. The Parties acknowledge that the
Underwriters have, pursuant to the Underwriting Agreement, made a capital contribution to the
Partnership of $309,375,000 in cash ($289,265,625 net to the Partnership after the underwriting
discount (the “Spread”) of $18,562,500 and the structuring fee of $1,546,875 payable to UBS
Securities LLC) in exchange for the issuance by the Partnership to the Underwriters of 18,750,000
Common Units, representing a 34.6224% limited partner interest in the Partnership.

     Section 2.8 Payment of Transaction Expenses and Distribution by the Partnership. The
Parties acknowledge (a) the payment by the Partnership, in connection with the transactions
contemplated hereby, of estimated transaction expenses in the amount of approximately $5.0 million
(exclusive of the Spread and the structuring fee) and (b) the distribution by the Partnership of
$14,265,625 of the net proceeds of the Offering to WGR Holdings as a reimbursement for certain
pre-formation capital expenditures.

     Section 2.9 Redemption of the Initial Partner Interests in the Partnership and the Return
of Initial Capital Contributions. The Partnership (a) hereby redeems (i) the 98% limited
partner interest in the Partnership held by WGR Holdings and (ii) the 2% general partner

5

 

interest in the Partnership held by the General Partner and (b) hereby refunds and distributes
(i) to WGR Holdings the initial capital contribution made by Asset HoldCo to the Partnership along
with 98% of any interest or other profit that resulted from the investment or other use of such
initial capital contribution and (ii) to the General Partner the initial capital contribution made
by it to the Partnership along with 2% of any interest or other profit that resulted from the
investment or other use of such initial capital contribution.

     Section 2.10 30-Year Note. The Parties acknowledge the loan of $260.0 million by the
Partnership to Anadarko pursuant to a 30-year note in the form attached as Exhibit 10.1 to the
Registration Statement bearing interest at a fixed annual rate of 6.50%.

ARTICLE III

ADDITIONAL TRANSACTIONS

     Section 3.1 Purchase of Additional Common Units. If the Over-Allotment Option is
exercised in whole or in part, the Underwriters will contribute additional cash to the Partnership
in exchange for up to an additional 2,812,500 Common Units on the basis of the initial public
offering price per Common Unit set forth in the Registration Statement.

     Section 3.2 Issuance of Additional Common Units. Upon the earlier to occur of the
expiration of the Over-Allotment Option period or the exercise in full of the Over-Allotment
Option, the Partnership will issue to WGR Holdings a number of additional Common Units that is
equal to the excess, if any, of (x) 2,812,500 over (y) the aggregate number of Common Units, if
any, actually purchased by and issued to the Underwriters pursuant to the exercise of the
Over-Allotment Option on the Option Closing Date(s), and WGR Holdings will receive a cash
distribution equal to the aggregate amount of cash, if any, contributed by the Underwriters to the
Partnership on the Option Closing Date(s) pursuant to Section 3.1 hereof, less the amount of the
underwriting discounts and the additional structuring fee.

     Section 3.3 Successive Up-Stream Distributions. The Parties acknowledge that, in
connection with the completion of the transactions described in Article II and Sections 3.1 and 3.2
hereof, WGR Holdings will distribute to WGR one or more distributions of an aggregate amount equal
to the sum of (x) the $14,265,625 that WGR Holdings received pursuant to Section 2.8(b) hereof and
(y) the cash distribution WGR Holdings receives pursuant Section 3.2 hereof, if any, and thereafter
WGR will distribute such amounts to Anadarko at such times and in such amounts, as the case may be.

ARTICLE IV

FURTHER ASSURANCES

     From time to time after the Effective Time, and without any further consideration, the Parties
agree to execute, acknowledge and deliver all such additional deeds, assignments, bills of sale,
conveyances, instruments, notices, releases, acquittances and other documents, and to do all such
other acts and things, all in accordance with applicable law, as may be necessary or appropriate
(a) more fully to assure that the applicable Parties own all of the properties, rights, titles,
interests, estates, remedies, powers and privileges granted by this Agreement, or which are
intended to be so granted, (b) more fully and effectively to vest in the applicable Parties and
their

6

 

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

ARTICLE V

EFFECTIVE TIME

     Notwithstanding anything contained in this Agreement to the contrary, none of the provisions
of Article II of this Agreement shall be operative or have any effect until the Effective Time, at
which time all the provisions of Article II of this Agreement shall be effective and operative in
accordance with Article VI, without further action by any Party hereto.

ARTICLE VI

MISCELLANEOUS

     Section 6.1 Order of Completion of Transactions. The transactions provided for in
Article II and Article III of this Agreement shall be completed immediately following the Effective
Time in the following order: first, the transactions provided for in Article II shall be completed
in the order set forth therein; and second, following the completion of the transactions provided
for in Article II, the transactions provided for in Article III, if they occur, shall be completed.

     Section 6.2 Headings; References; Interpretation. All Article and Section headings in
this Agreement are for convenience only and shall not be deemed to control or affect the meaning or
construction of any of the provisions hereof. The words “hereof,” “herein” and “hereunder” and
words of similar import, when used in this Agreement, shall refer to this Agreement as a whole,
including, without limitation, all Schedules and Exhibits attached hereto, and not to any
particular provision of this Agreement. All references herein to Articles, Sections, Schedules and
Exhibits shall, unless the context requires a different construction, be deemed to be references to
the Articles and Sections of this Agreement and the Schedules and Exhibits attached hereto, and all
such Schedules and Exhibits attached hereto are hereby incorporated herein and made a part hereof
for all purposes. All personal pronouns used in this Agreement, whether used in the masculine,
feminine or neuter gender, shall include all other genders, and the singular shall include the
plural and vice versa. The use herein of the word “including” following any general statement, term
or matter shall not be construed to limit such statement, term or matter to the specific items or
matters set forth immediately following such word or to similar items or matters, whether or not
non-limiting language (such as “without limitation”, “but not limited to”, or words of similar
import) is used with reference thereto, but rather shall be deemed to refer to all other items or
matters that could reasonably fall within the broadest possible scope of such general statement,
term or matter.

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

     Section 6.4 No Third Party Rights. The provisions of this Agreement are intended to
bind the Parties as to each other and are not intended to and do not create rights in

7

 

any other person or confer upon any other person any benefits, rights or remedies, and no
person is or is intended to be a third party beneficiary of any of the provisions of this
Agreement.

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

     Section 6.6 Choice of Law. This Agreement shall be subject to and governed by the laws
of the State of Texas. Each Party hereby submits to the jurisdiction of the state and federal
courts in the State of Texas and to venue in Houston, Texas.

     Section 6.7 Severability. If any of the provisions of this Agreement are held by any
court of competent jurisdiction to contravene, or to be invalid under, the laws of any political
body having jurisdiction over the subject matter hereof, such contravention or invalidity shall not
invalidate the entire Agreement. Instead, this Agreement shall be construed as if it did not
contain the particular provisions or provisions held to be invalid and an equitable adjustment
shall be made and necessary provision added so as to give effect to the intention of the Parties as
expressed in this Agreement at the time of execution of this Agreement.

     Section 6.8 Amendment or Modification. This Agreement may be amended or modified from
time to time only by the written agreement of all the Parties. Each such instrument shall be
reduced to writing and shall be designated on its face as an amendment to this Agreement.

     Section 6.9 Integration. This Agreement and the instruments referenced herein
supersede all previous understandings or agreements among the Parties, whether oral or written,
with respect to the subject matter of this Agreement and such instruments. This Agreement and such
instruments contain the entire understanding of the Parties with respect to the subject matter
hereof and thereof. No understanding, representation, promise or agreement, whether oral or
written, is intended to be or shall be included in or form part of this Agreement unless it is
contained in a written amendment hereto executed by the parties hereto after the date of this
Agreement.

     Section 6.10 Deed; Bill of Sale; Assignment. To the extent required and permitted by
applicable law, this Agreement shall also constitute a “deed,” “bill of sale” or “assignment” of
the assets and interests referenced herein.

[Signature Pages Follow]

8

 

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

	 	 	 	 	 
	 	WESTERN GAS PARTNERS, LP

 	 
	 	By:  	 WESTERN GAS HOLDINGS, LLC,
 	 
	 	 	its general partner 	 
	 	 	 	 
	 	By:  	             /s/ Robert G. Gwin
 	 
	 	 	Name:  	Robert G. Gwin 	 
	 	 	Title:  	President and Chief Executive Officer 	 
	 

	 	 	 	 	 
	 	WESTERN GAS HOLDINGS, LLC

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

	 	 	 	 	 
	 	ANADARKO PETROLEUM CORPORATION

 	 
	 	By:  	 James T. Hackett
 	 
	 	 	Name:  	James T. Hackett 	 
	 	 	Title:  	Chairman, President and Chief

Executive Officer 	 
	 

	 	 	 	 	 
	 	WGR HOLDINGS, LLC

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

Signature Page to Contribution, Conveyance and Assumption Agreement

 

 

	 	 	 	 	 
	 	WESTERN GAS RESOURCES, INC.

 	 
	 	By:  	/s/ Robert G. Gwin
 	 
	 	 	Name:  	Robert G. Gwin 	 
	 	 	Title:  	Vice President 	 
	 
	 	 	 	 	 
	 	WGR ASSET HOLDING COMPANY LLC

 	 
	 	By:  	/s/ Robert G. Gwin
 	 
	 	 	Name:  	Robert G. Gwin 	 
	 	 	Title:  	President and Chief Executive Officer 	 
	 
	 	 	 	 	 
	 	WESTERN GAS OPERATING, LLC

 	 
	 	By:  	/s/ Robert G. Gwin
 	 
	 	 	Name:  	Robert G. Gwin 	 
	 	 	Title:  	President and Chief Executive Officer 	 
	 
	 	 	 	 	 
	 	WGR OPERATING, LP

 	 
	 	By:  	 WESTERN GAS OPERATING, LLC,
 	 
	 	 	its general partner 	 
	 	 	 	 
	 	By:  	             /s/ Robert G. Gwin
 	 
	 	 	Name:  	Robert G. Gwin 	 
	 	 	Title:  	President and Chief Executive Officer 	 
	 

Signature Page to Contribution, Conveyance and Assumption Agreement

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"}]]