Document:

exv10w2

Exhibit 10.2

AMENDMENT NO. 1 TO

AMENDED AND RESTATED INVESTORS’ RIGHTS AGREEMENT

     This Amendment No. 1 (this “Amendment No. 1”) to the Amended and Restated Investors’
Rights Agreement, dated as of November 1, 2007 (the “IRA”) by and among Quest Midstream
Partners, L.P. (the “Company”), Quest Midstream GP, LLC (the “GP”), Quest Resource
Corporation (“QRC”) and the Investors is made and entered into effective as of July 1,
2009, by and among the Company, the GP, QRC and the undersigned Investors representing at least a
Majority of Investors. Capitalized terms used but not defined herein are used as defined in the
IRA.

     WHEREAS, the Company, the GP, QRC and the Investors entered into the IRA;

     WHEREAS, the Company, QRC, and Quest Energy Partners, L.P. (“QELP”) have determined
that it is advisable to effect the Recombination (as defined below);

     WHEREAS, it is a condition to the Recombination that the IRA shall be terminated on or prior
to the closing of the Recombination;

     WHEREAS, Alerian has agreed to terminate its rights under Section 2 related to its right to
designate a board member;

     WHEREAS, pursuant to Section 9(b) of the IRA, the IRA may be amended by written agreement of
the Company, the GP, QRC and a Majority of Investors; and

     WHEREAS, the Company, the GP, QRC and the undersigned Investors representing at least a
Majority of Investors desire to amend the IRA as set forth herein.

     NOW THEREFORE, the IRA is hereby amended as follows:

     Section 1. Amendment.

     (a) Section 2 of the IRA is amended and restated in its entirety as follows:

          “2. Board Representation.

     (a) Designation of Board Member. For the period hereafter indicated, Swank
will have a right to designate one (1) natural person to serve as a member of the Board of
Directors of GP. QRC will have the right to designate the remaining members of the Board of
Directors of GP. In order to effect this right, QRC (or its Affiliates that own Member
Interests) shall vote the Member Interests in GP owned by it in a manner so as to cause and
maintain the election of the person so designated. Swank’s right to designate a member of
the Board of Directors shall terminate upon the completion by the Company of an IPO. In
addition, such right to designate a member of the Board of Directors shall terminate at such
time (either before or after completion by the Company of an IPO) as Swank ceases to own at
least five percent (5%) of the Common Units (measured on a fully-diluted basis that assumes
that all outstanding warrants, options, rights and

 

 

securities that are at any time exercisable for or convertible into Common Units have been
so exercised or converted) held by Persons other than QRC or its Affiliates.

     (b) Expansion of Board. The parties currently contemplate that until the
completion by the Company of an IPO, the Board of Directors of GP will consist of six (6)
persons. During the period prior to completion of an IPO that Swank has the right to
designate a person to serve on the Board of Directors of GP, Swank shall have the right to
maintain its proportionate Board representation in the event of an expansion of the number
of members of the Board of Directors; provided, however, that such right to maintain the
proportionate Board representation will terminate upon completion by the Company of an IPO.

     (c) Replacement. In the event of the resignation, death, removal or
disqualification of a person designated by QRC or Swank to serve on the Board of Directors,
as set forth above, the appropriate designating party or parties shall promptly designate a
new member of the Board of Directors, and after written notice of the designation has been
given by such designating party or parties to the other parties, each of QRC and the
Investors shall vote its Member Interests to elect such nominee to the Board of Directors.

     (d) Removal. The appropriate designating party or parties may specify that any
person designated by it to serve on the Board of Directors shall be removed at any time and
from time to time, with or without cause.

     (b) Indemnification and Insurance. So long as Swank has a right to designate a
Director pursuant to this Section 2, the GP shall maintain director and officer insurance
reasonably satisfactory to Swank.”

     (c) Section 9(a) is hereby amended and restated in its entirety as follows:

     Term. Unless earlier terminated by agreement of the parties this
Agreement shall, without any further action of any party, terminate and be of no
further force or effect upon the earlier to occur of (i) the completion of an IPO by
the Company, and (ii) the closing of the Recombination.

     (d) The following definitions are hereby added to Exhibit A to the IRA:

     “Merger Agreement” means the Agreement and Plan of Merger dated as of July 2,
2009 among New Quest Holdings Corp., QRC, the Company, the GP, Quest Energy
Partners, L.P., Quest Energy GP, LLC, Quest Resource Acquisition Corp., Quest Energy
Acquisition, LLC, Quest Midstream Holdings Corp. and Quest Midstream Acquisition,
LLC.

     “Recombination” means the transactions contemplated by Article 1 of the Merger
Agreement.

2

 

     Section 2. Ratification of IRA. Except as expressly modified and amended herein, all
of the terms and conditions of the IRA shall remain in full force and effect.

     Section 3. Termination of Amendment No. 1. If the Merger Agreement is terminated for
any reason, this Amendment No. 1 shall have no force and effect.

     Section 4. Governing Law. This Amendment No. 1 shall be governed by and construed in
accordance with the laws of the State of Delaware (regardless of the laws that might otherwise
govern under applicable Delaware principles of conflicts of law) as to all matters, including
matters of validity, construction, effect, performance and remedies.

     Section 5. Facsimiles; Counterparts. This Amendment No. 1 may be executed by
facsimile signatures by any party and such signature shall be deemed binding for all purposes
hereof, without delivery of an original signature being thereafter required. This Amendment No. 1
may be executed in one or more counterparts, each of which, when executed, shall be deemed to be an
original and all of which together shall constitute one and the same document.

[signature page follows]

3

 

     IN WITNESS WHEREOF, the Company, the GP, QRC and the undersigned Investors representing at
least a Majority of Investors have caused this Amendment No. 1 to be signed by their respective
duly authorized officers as of July 1, 2009.

	 	 	 	 	 
	 	QUEST MIDSTREAM PARTNERS, L.P.

	 	By:  	             Quest Midstream GP, LLC
 	 
	 	 	Its General Partner 	 
	 	 	 	 
	 
	 	 	 
	 	By:  	                             /s/ David C. Lawler
 	 
	 	 	David C. Lawler 	 
	 	 	President and Chief Executive
Officer 	 
	 
	 	QUEST MIDSTREAM GP, LLC

 	 
	 	By:  	

/s/ David C. Lawler
 	 
	 	 	David C. Lawler 	 
	 	 	President and Chief Executive Officer 	 
	 
	 	QUEST RESOURCE CORPORATION

 	 
	 	By:  	/s/ David C. Lawler
 	 
	 	 	David C. Lawler 	 
	 	 	President and Chief Executive Officer 	 
	 
	 	ALERIAN OPPORTUNITY PARTNERS IV, LP
	 	By:  	            ALERIAN OPPORTUNITY
 	 
	 	 	ADVISORS IV, LLC 	 
	 	 	Its General Partner 	 
	 	 	 
	 	By:  	                              /s/ Gabriel Hammond
 	 
	 	 	Gabriel Hammond 	 
	 	 	Managing Member

 	 

Signature Page to Amendment No. 1 to the Amended and Restated Investors’ Rights Agreement

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	ALERIAN OPPORTUNITY PARTNERS IX, LP
	 	By:  	             ALERIAN OPPORTUNITY
 	 
	 	 	ADVISORS IX, LLC 	 
	 	 	Its General Partner 	 
	 	 	 
	 	By:  	                               /s/ Gabriel Hammond
 	 
	 	 	Gabriel Hammond 	 
	 	 	Managing Member 	 
	 
	 	ALERIAN CAPITAL PARTNERS, LP
	 	By:  	            ALERIAN CAPITAL ADVISORS, LLC
 	 
	 	 	Its General Partner 	 
	 	 	 	 
	 	By:  	                            /s/ Gabriel Hammond
 	 
	 	 	Gabriel Hammond 	 
	 	 	Managing Member 	 
	 
	 	ALERIAN FOCUS PARTNERS, LP
	 	By:  	             ALERIAN FOCUS ADVISORS, LLC
 	 
	 	 	Its General Partner 	 
	 	 	 	 
	 	By:  	                                         /s/ Gabriel Hammond
 	 
	 	 	Gabriel Hammond 	 
	 	 	Managing Member 	 
	 
	 	SWANK MLP CONVERGENCE FUND, LP
	 	By:  	            SWANK ENERGY INCOME ADVISORS,
 	 
	 	 	L.P. 	 
	 	 	Its General Partner 	 
	 	By:  	            SWANK CAPITAL, LLC
 	 
	 	 	Its General Partner 	 
	 	 	 	 
	 	By:  	                                        /s/ Jerry V. Swank
 	 
	 	 	Jerry V. Swank 	 
	 	 	Manager

 	 

Signature Page to Amendment No. 1 to the Amended and Restated Investors’ Rights Agreement

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	THE CUSHING MLP OPPORTUNITY FUND I,
LP
	 	By:  	CARBON COUNTY PARTNERS I, LP
 	 
	 	 	Its General Partner 	 
	 	By:  	                CARBON COUNTY GP I, LLC
 	 
	 	 	Its General Partner 	 
	 	 	 	 
	 	By:  	                               /s/ Jerry V. Swank
 	 
	 	 	Jerry V. Swank 	 
	 	 	Manager 	 
	 
	 	BEL AIR MLP ENERGY INFRASTRUCTURE
FUND, LP
	 	By:  	                SWANK ENERGY INCOME ADVISORS, L.P. 

its investment advisor 	 
	 	By:  	               SWANK CAPITAL, LLC
 	 
	 	 	Its General Partner 	 
	 	 	 	 
	 	By:  	                         /s/ Jerry V. Swank
 	 
	 	 	Jerry V. Swank 	 
	 	 	Manager 	 
	 
	 	TORTOISE CAPITAL RESOURCES

CORPORATION

 	 
	 	By:  	/s/ Edward Russell
 	 
	 	 	Edward Russell 	 
	 	 	President 	 
	 
	 	TORTOISE GAS AND OIL CORPORATION

 	 
	 	By:  	/s/ Edward Russell
 	 
	 	 	Edward Russell 	 
	 	 	President 	 
	 

Signature Page to Amendment No. 1 to the Amended and Restated Investors’ Rights Agreementexv10w3

Exhibit 10.3

AMENDMENT NO. 2 TO THE

SECOND AMENDED AND RESTATED AGREEMENT OF LIMITED PARTNERSHIP

OF

QUEST MIDSTREAM PARTNERS, L.P.

     This Amendment No. 2 dated July 1, 2009 (this “Amendment No. 2”) to the Second Amended
and Restated Agreement of Limited Partnership of Quest Midstream Partners, L.P. (the
“Partnership”), dated as of November 1, 2007, as amended by that Amendment No. 1 thereto
effective as of January 1, 2007 (collectively, the “Partnership Agreement”) by and among
Quest Midstream GP, LLC, a Delaware limited liability company (the “General Partner”),
Quest Resource Corporation (“QRC”), as the holder of at least a majority of the Outstanding
Subordinated Units, and the Limited Partners listed on the signature page hereto representing the
holders of at least a majority of the Outstanding Common Units (excluding Common Units owned by the
General Partner and its Affiliates). Capitalized terms not defined herein shall have the meaning
assigned to them in the Partnership Agreement.

     WHEREAS, the parties hereto desire to amend the Partnership Agreement to provide that the
Private Purchasers are not Affiliates of the General Partner and that the proposed conversion of
the Partnership to a limited liability company in accordance with the terms of the Merger Agreement
(as defined herein) will not require approval of the Limited Partners upon consummation of the
merger of QMLP contemplated by the Merger Agreement;

     WHEREAS, pursuant to Section 13.2 of the Partnership Agreement, the General Partner has
proposed that this Amendment No. 2 be adopted;

     WHEREAS, pursuant to Section 13.2, a proposed amendment shall be effective upon its approval
by the General Partner and the holders of a Unit Majority;

     WHEREAS, certain of the Private Purchasers disclaim, deny and object to being classified as
affiliates of the General Partner on the date of execution hereof; however, if such Private
Purchasers are deemed to be Affiliates of the General Partner, a Unit Majority has been obtained by
the approval of the remaining Limited Partners listed on the signature page hereto;

     WHEREAS, pursuant to Section 13.3(d), the Partnership has received an Opinion of Counsel to
the effect that such amendment will not affect the limited liability of any Limited Partner under
the Delaware Revised Uniform Limited Partnership Act.

     NOW, THEREFORE, the Partnership Agreement is hereby amended as follows:

 

 

     Section 1. Amendments.

          (a) The definition of “Affiliate” in Section 1.1 is hereby amended and restated in its
entirety as follows:

     “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. For the avoidance of doubt, no Private
Purchaser or any representative of a Private Purchaser shall be deemed to be an
“Affiliate” of the General Partner, Quest Resource Corporation or the Partnership
Group, including but not limited to as a result of service on the Board of Directors
by it or its representative, because of a contractual right to appoint a member to
the Board of Directors or because of ownership of less than a majority of the
membership interests in the General Partner.

          (b) The following definition is added:

     “Merger Agreement” means the Agreement and Plan of Merger to be dated as of
July 2, 2009, among the Partnership, New Quest Holdings Corp., a Delaware
corporation, Quest Resource Corporation, a Nevada corporation, Quest Energy
Partners, L.P., a Delaware limited partnership, the General Partner, Quest Energy
GP, LLC, a Delaware limited liability company, Quest Resource Acquisition Corp., a
Delaware corporation, Quest Energy Acquisition, LLC, a Delaware limited liability
company, Quest Midstream Holdings Corp., a Delaware corporation, and Quest Midstream
Acquisition, LLC, a Delaware limited liability company, as it may be amended from
time to time.

          (c) A new Section 14.6 is added as follows:

     Section 14.6 Conversion Pursuant to Merger Agreement. Notwithstanding anything else
contained in this Article XIV or in this Agreement, the General Partner is
permitted, without Limited Partner approval or any further action on the part of the Limited
Partners, to convert the Partnership into a Delaware limited liability company pursuant to,
and in accordance with the Merger Agreement. The Merger Agreement shall be deemed to
satisfy any requirement herein for a Plan of Conversion. The limited liability company
agreement for the new entity shall be in the form agreed to pursuant to Section 2.1 of the
Merger Agreement.

2

 

     Section 2. Ratification of Partnership Agreement. Except as expressly modified and
amended herein, all of the terms and conditions of the Partnership Agreement shall remain in full
force and effect.

     Section 3. Governing Law. This Amendment No. 2 will be governed by and construed in
accordance with the laws of the State of Delaware.

[signature page follows]

3

 

     IN WITNESS WHEREOF, the parties hereto have executed this Amendment No. 2 as of the date first
written above.

	 	 	 	 	 
	 	

QUEST MIDSTREAM GP, LLC

 	 
	 	By:  	/s/ David C. Lawler
 	 
	 	 	David C. Lawler 	 
	 	 	President and Chief Executive Officer 	 
	 
	 	QUEST RESOURCE CORPORATION

 	 
	 	By:  	/s/  David C. Lawler
 	 
	 	 	David C. Lawler 	 
	 	 	President and Chief Executive Officer 	 
	 
	 	ALERIAN OPPORTUNITY PARTNERS IV, LP
 	 
	 	By:  	ALERIAN OPPORTUNITY
 	 
	 	 	ADVISORS IV, LLC, 	 
	 	 	its General Partner 	 
	 	 	 
	 	By:  	                              /s/ Gabriel Hammond
 	 
	 	 	Gabriel Hammond 	 
	 	 	Managing Member 	 
	 
	 	ALERIAN OPPORTUNITY PARTNERS IX, LP
 	 
	 	By:  	
ALERIAN OPPORTUNITY
 	 
	 	 	ADVISORS IX, LLC, 	 
	 	 	its General Partner 	 
	 	 	 
	 	By:  	                                        /s/ Gabriel Hammond
 	 
	 	 	Gabriel Hammond 	 
	 	 	Managing Member 	 
	 

Signature Page to Amendment No. 2 to the Second Amended and Restated Agreement

of Limited Partnership of Quest Midstream Partners, L.P.

 

 

	 	 	 	 	 
	 	ALERIAN CAPITAL PARTNERS, LP
 	 
	 	By:  	ALERIAN CAPITAL ADVISORS, LLC,

its General Partner,

 	 
	 	By:  	/s/ Gabriel Hammond
 	 
	 	 	Gabriel Hammond 	 
	 	 	Managing Member 	 
	 
	 	ALERIAN FOCUS PARTNERS, LP
 	 
	 	By:  	ALERIAN FOCUS ADVISORS, LLC,

its General Partner

 	 
	 	By:  	/s/ Gabriel Hammond
 	 
	 	 	Gabriel Hammond 	 
	 	 	Managing Member 	 
	 
	 	SWANK MLP CONVERGENCE FUND, LP
 	 
	 	By:  	SWANK ENERGY INCOME ADVISORS,

L.P.

Its General Partner
 	 
	 	By:  	SWANK CAPITAL, LLC

Its General Partner

 	 
	 	By:  	                            /s/ Jerry V. Swank
 	 
	 	 	Jerry V. Swank 	 
	 	 	Manager 	 
	 
	 	THE CUSHING MLP OPPORTUNITY FUND I, LP
 	 
	 	By:  	 CARBON COUNTY PARTNERS I, LP

Its General Partner
 	 
	 	By:  	 CARBON COUNTY GP I, LLC

Its General Partner

 	 
	 	By:  	                                   /s/ Jerry V. Swank
 	 
	 	 	Jerry V. Swank 	 
	 	 	Manager 	 
	 

Signature Page to Amendment No. 2 to the Second Amended and Restated Agreement

of Limited Partnership of Quest Midstream Partners, L.P.

 

 

	 	 	 	 	 
	 	BEL AIR MLP ENERGY INFRASTRUCTURE FUND, LP
 	 
	 	By:  	SWANK ENERGY INCOME ADVISORS,

L.P.

its investment advisor
 	 
	 	By:  	SWANK CAPITAL, LLC

Its General Partner

 	 
	 	By:  	/s/ Jerry V. Swank
 	 
	 	 	Jerry V. Swank 	 
	 	 	Manager 	 
	 
	 	TORTOISE CAPITAL RESOURCES CORPORATION

 	 
	 	By:  	/s/ Edward Russell
 	 
	 	 	Edward Russell 	 
	 	 	President 	 
	 
	 	TORTOISE GAS AND OIL CORPORATION

 	 
	 	By:  	/s/ Edward Russell
 	 
	 	 	Edward Russell 	 
	 	 	President 	 
	 
	 	KAYNE ANDERSON ENERGY

DEVELOPMENT COMPANY

 	 
	 	By:  	/s/ James C. Baker
 	 
	 	 	James C. Baker 	 
	 	 	Executive Vice President 	 
	 

Signature Page to Amendment No. 2 to the Second Amended and Restated Agreement

of Limited Partnership of Quest Midstream Partners, L.P.

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