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EXHIBIT 10.4

WILLIAMS PARTNERS GP LLC

LONG-TERM INCENTIVE PLAN

     SECTION 1. Purpose of the Plan.

     The Williams Partners GP LLC Long-Term Incentive Plan (the “Plan”) is intended to promote the
interests of Williams Partners L.P., a Delaware limited partnership (the “Partnership”), by
providing to employees, consultants, and directors of Williams Partners GP LLC, a Delaware limited
liability company (the “Company”), and its Affiliates who perform services for the Partnership and
its subsidiaries incentive compensation awards that are based on Units for superior performance.
The Plan is also contemplated to enhance the ability of the Company and its Affiliates to attract
and retain the services of individuals who are essential for the growth and profitability of the
Partnership and to encourage them to devote their best efforts to advancing the business of the
Partnership and its subsidiaries.

     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 Option, Restricted Unit, Phantom Unit or Unit Appreciation Right granted
under the Plan, and shall include any tandem DERs granted with respect to a Phantom Unit, Option or
Unit Appreciation Right.

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

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

     “Change of Control” means, and shall be deemed to have occurred upon the occurrence of one or
more of the following events: (i) any sale, lease, exchange or other transfer (in one transaction
or a series of related transactions) of all or substantially all of the assets of the Partnership,
the Company or The Williams Companies, Inc. to any Person and/or its Affiliates, other than to the
Partnership, the Company and/or any of their Affiliates; or (ii) the consolidation, reorganization,
merger or other transaction pursuant to which more than 50% of the voting power of the outstanding
equity interests in the Partnership, the Company or The Williams Companies, Inc. cease to be owned
by the Persons who own such interests as of the effective date of the initial public offering of
Units.

     Solely with respect to any Award that is subject to Section 409A of the Code and to the extent
that the definition of change of control under Section 409A applies to limited liability companies,
this definition is intended to comply with the definition of change of control under Section 409A
of the Code as in effect commencing January 1, 2005 and, to the extent that the

 

 

above definition does not so comply, such definition shall be void and of no effect and, to
the extent required to ensure that this definition complies with the requirements of Section 409A
of the Code, the definition of such term set forth in regulations or other regulatory guidance
issued under Section 409A of the Code by the appropriate governmental authority is hereby
incorporated by reference into and shall form part of this Plan as fully as if set forth herein
verbatim and the Plan shall be operated in accordance with the above definition of Change of
Control as modified to the extent necessary to ensure that the above definition complies with the
definition prescribed in such regulations or other regulatory guidance insofar as the definition
relates to any Award that is subject to Section 409A of the Code.

     “Committee” means the Compensation Committee of the Board or such other committee of the Board
appointed by the Board to administer the Plan.

     “Common Unit” has the meaning given to such term in the Partnership Agreement.

     “Consultant” means an individual who performs services for the Partnership and is not an
Employee or a Director.

     “DER” means a distribution equivalent right, which is contingent right, granted in tandem with
a specific Award of any Unit Appreciation Right, Option or Phantom Unit, to receive an amount in
cash equal to the cash distributions made by the Partnership 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 any employee of the Company or an Affiliate who performs services for the
Partnership.

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

     “Fair Market Value” means the closing sales price of a Unit on the date of determination (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). In the event Units are not publicly traded 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.

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

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

     “Partnership Agreement” means the First Amended and Restated Agreement of Limited Partnership
of Williams Partners L.P., as it may be amended or amended and restated from time to time.

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     “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 phantom (notional) Unit granted under the Plan which 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 unit distribution right, which is a distribution made by the Partnership with
respect to a Restricted Unit.

     “Unit” means a Common Unit.

     “Unit Appreciation Right” means an Award that, upon exercise, entitles the holder to receive
the excess of the Fair Market Value of a Unit on the exercise date over the exercise price
established for such Unit Appreciation Right. Such excess may be paid in cash and/or in Units as
determined by the Committee in its discretion.

     SECTION 3. Administration.

     The Board does not initially intend to grant any Award under the Plan; provided however, the
Board reserves the right to implement the Plan in the future and upon implementation by resolution
of the Board, 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 any 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 who is a member of the Board. Subject to the terms of the Plan and applicable law, and in
addition to

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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; and (viii) make any
other determination and take any other action that the Committee deems necessary or desirable for
the administration of the Plan. 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.

     SECTION 4. Units.

     (a)   Limits on Units Deliverable. Subject to adjustment as provided in Section 4(c),
the number of Units with respect to which Awards may be granted under the Plan is 675,862.
However, there shall not be any limitation on the number of Awards that may be granted and paid in
cash. If any Award expires, is canceled, exercised, paid or otherwise terminates without the
delivery of Units, then the Units covered by such Award, to the extent of such expiration,
cancellation, exercise, payment or termination, shall again be Units with respect to which Awards
may be granted. In the event that Units issued under the Plan are reacquired by the Company
pursuant to any forfeiture provision, such Units shall again be available for the purposes of the
Plan. In the event a Participant pays for any Award through the delivery of previously acquired
Units, the number of Units available shall be increased by the number of Units delivered by the
Participant.

     (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 any Affiliate,
the Partnership or any other Person, or any combination of the foregoing.

     (c)   Adjustments. In the event that the Committee determines that any distribution
(whether in the form of cash, Units, other securities, or other property), recapitalization, Unit
split, reverse Unit split, reorganization, merger, consolidation, split-up, spin-off, combination,
repurchase, or exchange of Units or other securities of the Partnership, issuance of warrants or
other rights to purchase Units or other securities of the Partnership, or other similar transaction
or event affects the Units such that an adjustment is determined by the Committee to be appropriate
in order to prevent dilution or enlargement of the benefits or potential benefits intended to be
made available under the Plan, then the Committee shall, in such manner as it may deem equitable,
adjust any or all of (i) the number and type of Units (or other securities or property) with
respect to which Awards may be granted, (ii) the number and type of Units (or other securities or
property) subject to outstanding Awards, and (iii) the grant or exercise price with respect to any
Award or, if deemed appropriate, make provision for a cash payment to the holder of an outstanding
Award; provided, that the number of Units subject to any Award shall always be a whole number and,
provided further, that the Committee shall not take any action otherwise

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authorized under this subparagraph (c) to the extent that (i) such action would cause (A) the
application of Section 409A or 162(m) of the Code to the Award or (B) create adverse tax
consequences under Section 409A or 162(m) of the Code should either or both of those Code sections
apply to the Award or (ii) except as permitted in Section 7(c), materially reduce the benefit to the
Participant without the consent of the Participant.

     SECTION 5. Eligibility.

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

     SECTION 6. Awards.

     (a)   Options. Subject to the provisions of the Plan, the Committee shall have the
authority to determine the Participants to whom Options shall be granted, the number of Units to be
covered by each Option, whether DERs are granted with respect to such Option, the purchase price
therefor and the conditions and limitations applicable to the exercise of the Option, 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 purchase price per Unit purchasable under an Option
shall be determined by the Committee at the time the Option is granted, but shall not be
less than 100% of the Fair Market Value per Unit on the date of grant.

     (ii)   Time and Method of Exercise. The Committee shall determine the time or
times at which an Option may be exercised in whole or in part, which may include, without
limitation, accelerated vesting upon the achievement of specified performance goals, and the
method or methods by which payment of the exercise price with respect thereto may be made or
deemed to have been made, which may include, without limitation, cash, check acceptable to
the Company, a “cashless-broker” exercise through procedures approved by the Company, other
securities or other property, or any combination thereof, having a Fair Market Value on the
exercise date equal to the relevant exercise price.

     (iii)   Forfeiture. Except as otherwise provided in the terms of the Option
grant, upon termination of a Participant’s employment with or consulting services to the
Company and its Affiliates or membership on the Board, whichever is applicable, for any
reason during the applicable Restricted Period, all Options shall be forfeited by the
Participant unless otherwise provided in a written agreement between the Participant and the
Company or its affiliates. The Committee may, in its discretion, waive in whole or in part
such forfeiture with respect to a Participant’s Options.

     (iv)   DERs. To the extent provided by the Committee, in its discretion, a grant
of Options may include a tandem DER grant, which may provide that such DERs be credited to a
bookkeeping account subject to the same vesting restrictions as the tandem Options Award, or
be subject to such other provisions or restrictions as determined by the Committee in its
discretion. Notwithstanding any other provision of the Plan to the contrary, any grant of
DERs with respect to Options shall contain terms that (i) are

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designed to avoid application of Section 409A of the Code to the Award or (ii) are
designed to avoid adverse tax consequences under Section 409A should that Code section
apply.

     (b)   Restricted Units and Phantom Units. The Committee shall have the authority to
determine the Participants to whom Restricted Units or 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,
which may include, without limitation, the accelerated vesting upon the achievement of specified
performance goals, and such other terms and conditions as the Committee may establish with respect
to such Awards, including whether DERs are granted with respect to the Phantom Units or UDRs are
granted with respect to Restricted Units.

     (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 be
credited to a bookkeeping account (without interest) or that additional Phantom Units be
awarded, which account or Phantom Units may be subject to the same 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. Notwithstanding any other provision of the
Plan to the contrary, any grant of DERs with respect to Phantom Units shall contain terms
that (i) are designed to avoid application of Section 409A of the Code to the Award or (ii)
are designed to avoid adverse tax consequences under Section 409A should that Code section
apply.

     (ii)   UDRs. To the extent provided by the Committee, in its discretion, a grant
of Restricted Units may provide that distributions made by the Partnership 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. Absent such a restriction on the UDRs in the Award
Agreement, UDRs shall be paid to the holder of the Restricted Unit without restriction.

     (iii)   Forfeitures. Except as otherwise provided in the terms of the Restricted
Units or Phantom Units grant, upon termination of a Participant’s employment with or
consulting services to the Company and its Affiliates or membership on the Board, whichever
is applicable, for any reason during the applicable Restricted Period, all outstanding
Restricted Units and Phantom Units awarded the Participant shall be automatically forfeited
on such termination unless otherwise provided in a written agreement between the Participant
and the Company or its Affiliates. 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. Unless a different payment time is specified in the
Award Agreement, upon or as soon as reasonably practical following the vesting of
each Phantom Unit, subject to the provisions of Section 8(b), the Participant

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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 the provisions 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 Appreciation Rights. The Committee shall have the authority to determine the
Participants to whom Unit Appreciation Rights shall be granted, the number of Units to be covered
by each grant, whether DERs are granted with respect to such Unit Appreciation Right, the exercise
price therefor and the conditions and limitations applicable to the exercise of the Unit
Appreciation Right, 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 Appreciation Right shall be
determined by the Committee at the time the Unit Appreciation Right is granted, but shall
not be less than 100% of the Fair Market Value per Unit on the date of grant.

     (ii)   Time of Exercise. The Committee shall determine the Restricted Period,
i.e., the time or times at which a Unit Appreciation Right may be exercised in whole or in
part, which may include, without limitation, accelerated vesting upon the achievement of
specified performance goals.

     (iii)   Forfeitures. Except as otherwise provided in the terms of the Unit
Appreciation Right grant, upon termination of a Participant’s employment with or consulting
services to the Company and its Affiliates or membership on the Board, whichever is
applicable, for any reason during the applicable Restricted Period, all outstanding Unit
Appreciation Rights 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 Unit Appreciation Rights.

     (iv)   DERs. To the extent provided by the Committee, in its discretion, a grant
of Unit Appreciation Rights may include a tandem DER grant, which may provide that such DERs
be credited to a bookkeeping account (without interest) or that additional Unit Appreciation
Rights be awarded, which Unit Appreciation Rights may be subject to the same vesting
restrictions as the tandem Unit Appreciation Rights Award, or be subject to such other
provisions or restrictions as determined by the Committee in its discretion.
Notwithstanding any other provision of the Plan to the contrary, any grant of DERs with
respect to Unit Appreciation Rights shall contain terms that (i) are designed to avoid
application of Section 409A of the Code to the Award or (ii) are designed to avoid adverse
tax consequences under Section 409A should that Code section apply.

     (d)   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

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in substitution for any other Award or any award granted under any other plan of the
Company or any Affiliate. No Award shall be issued in tandem with another Award if the
tandem Awards would result in adverse tax consequences under Section 409A of the Code.
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 (C) below or as provided in the Award Agreement, 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 (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, the Partnership or any Affiliate.

     (C)   To the extent specifically provided by the Committee with respect to an
Option or Unit Appreciation Right grant, 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.

     (iii)   Term of Awards. The term of each Award shall be for such period as may
be determined by the Committee; provided, that in no event shall the term of any Award
exceed a period of 10 years from the date of its grant.

     (iv)   Unit Certificates. All certificates for Units or other securities of the
Partnership 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 put 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 determines.

     (vi)   Delivery of Units or other Securities and Payment by Participant of
Consideration. Notwithstanding anything in the Plan or any Award 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
the rules or regulations of any applicable law or securities exchange. No Units or other
securities shall be delivered pursuant to any Award until payment in

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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. Such payment may be made by such method or methods and in such form or
forms as the Committee shall determine, including, without limitation, cash, other Awards,
withholding of Units, cashless broker exercises with simultaneous sale, or any combination
thereof; provided, however, that the combined value, as determined by the Committee, of all
cash and cash equivalents and the Fair Market Value of any such Units or other property so
tendered to the Company, as of the date of such tender, is at least equal to the full amount
required to be paid to the Company pursuant to the Plan or the applicable Award Agreement.

     (vii)   Change in Control. Unless specifically provided otherwise in the Award
Agreement, upon a Change of Control all outstanding Awards shall automatically vest and be
payable or become exercisable in full, as the case may be. In this regard, all Restricted
Periods shall terminate and all performance criteria, if any, shall be deemed to have been
achieved at the maximum level.

     (viii)   Notwithstanding any other provision of the Plan to the contrary, any Award
granted under the Plan shall contain terms that (i) are designed to avoid application of
Section 409A of the Code to the Award or (ii) are designed to avoid adverse tax consequences
under Section 409A of the Code should that Code section apply to the Award.

     SECTION 7. Amendment and Termination.

     Except to the extent prohibited by applicable law:

     (a)   Amendments to the Plan. Except as required by applicable law or 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 partner, Participant, other holder or beneficiary of an Award, or 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 materially reduce the benefit to
Participant without the consent of such Participant.

     (c)   Adjustment of Awards Upon the Occurrence of Certain Unusual or Nonrecurring
Events. The Committee is hereby authorized to make adjustments in the terms and conditions of,
and the criteria included in, Awards in recognition of unusual or nonrecurring events (including,
without limitation, the events described in Section 4(c) of the Plan) affecting the Partnership or
the financial statements of the Partnership, or of changes in applicable laws, regulations, or
accounting principles, whenever the Committee determines that such adjustments are appropriate in
order to prevent dilution or enlargement of the benefits or potential benefits intended to be made
available under the Plan or such Award.

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     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. 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, other securities, 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 Company or any Affiliate, to
continue as a Consultant, or to remain on the Board, as applicable. Further, the Company or an
Affiliate may at any time dismiss a Participant from employment or terminate a consulting
relationship, 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 Oklahoma, without regard to its conflict 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 laws, 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
Partnership 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.

     (g)   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

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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.

     (h)   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.

     (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 properly manage 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 which the Committee may select, and the Company and its Affiliates
shall be relieved of any further liability for payment of such amounts.

     (k)   Participation by Affiliates. In making Awards to Consultants and Employees
employed by an entity other than by the Company, the Committee shall be acting on behalf of the
Affiliate, and to the extent the Partnership has an obligation to reimburse the Company for
compensation paid to Consultants and Employees for services rendered for the benefit of the
Partnership, such payments or reimbursement payments may be made by the Partnership directly to the
Affiliate, and, if made to the Company, shall be received by the Company as agent for the
Affiliate.

     (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)   No Guarantee of Tax Consequences. None of the Board, the Company, the Partnership
nor the Committee makes any commitment or guarantee that any federal, state or local tax treatment
will apply or be available to any person participating or eligible to participate hereunder.

     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 the date terminated by the Board or the date Units are no longer available for
issuance under the Plan. However, unless otherwise expressly provided in the Plan or in an
applicable Award Agreement, 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.

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EXHIBIT 10.5

WORKING CAPITAL LOAN AGREEMENT

     AGREEMENT made ___, 2005 (the “Effective Date”), between The Williams Companies,
Inc., a Delaware corporation, with principal offices at One Williams Center, Tulsa, Oklahoma 74172
(“Lender”) and Williams Partners L.P., a Delaware limited partnership with principal offices at One
Williams Center, Tulsa, Oklahoma 74172 (“Borrower”) (this “Agreement”).

1. Loan. Lender shall make revolving loans to Borrower during the term of this Agreement in an
aggregate amount outstanding of up to, but not exceeding, $20,000,000 at any time.

2. Term. Borrower may borrow sums from Lender up to the total loan commitment of $20,000,000 at
any time from the Effective Date to May 3rd, 2007 (the “Maturity Date”). Notwithstanding the
foregoing, for a period of at least fifteen consecutive days during each twelve month period
commencing with the Effective Date, Borrower shall have no borrowings under this loan outstanding.
Borrower hereby promises to pay to Lender interest when due hereunder and all outstanding
principal, interest and other payments owing under this Agreement in full on the Maturity Date.

3. Early Termination. Notwithstanding anything contained in this Agreement to the contrary, in the
event of a Change of Control (hereinafter defined) of the General Partner (hereinafter defined),
the Maturity Date shall be deemed to have immediately occurred as of the date of such Change of
Control. As used herein, the following terms shall have the following meanings: “General Partner”
means Williams Partners GP LLC, a Delaware limited liability company (including any permitted
successors and assigns under the Limited Partnership Agreement of the Borrower). “Change of
Control” means any of the following events: (i) any sale, lease, exchange or other transfer (in
one transaction or a series of related transactions) of all or substantially all of the General
Partner’s assets to any other Person, unless immediately following such sale, lease, exchange or
other transfer such assets are owned, directly or indirectly, by the General Partner; (ii) the
dissolution or liquidation of the General Partner; (iii) the consolidation or merger of the General
Partner with or into another Person pursuant to a transaction in which the outstanding membership
interests of the General Partner are changed into or exchanged for cash, securities or other
property, other than any such transaction where (a) the outstanding membership interests of the
General Partner are changed into or exchanged for Voting Securities of the surviving corporation or
its parent and (b) the Lender continues to own, directly or indirectly, not less than a majority of
the outstanding Voting Securities of the surviving corporation or its parent immediately after such
transaction; and (iv) other than Lender and its affiliates, a “person” or “group” (within the meaning of Sections 13(d) or 14(d)(2) of
the Exchange Act) being or becoming the “beneficial owner” (as defined in Rules 13d-3 and 13d-5
under the Exchange Act) of more than 50% of all of the then outstanding membership interests of the
General Partner, except in a merger or consolidation which would not constitute a Change of Control
under clause (iii) above. “Exchange Act” means the Securities Exchange Act of 1934, as amended.
“Person” means a corporation, partnership, joint venture, trust, limited liability company,
unincorporated organization or any other entity. “Voting Securities” means securities of any class
of Person entitling the holders thereof to vote in the election of members of the board of
directors or other similar governing body of the Person, or in the case of a limited partnership, a
majority of the general partner interests in such limited partnership.

 

 

4. Procedure for Borrowing. Borrower may borrow in amounts of not less than $50,000.00, and in
additional multiples of not less than $5,000.00, by giving written notice to Lender. Each
borrowing shall be requested with a same-day notice by 10:00 a.m. the day of the proposed
borrowing. The interest rate on all borrowings will be the one month Eurodollar Rate (as such term
is defined in that certain Amended and Restated Credit Agreement dated as of May 20, 2005 among The
Williams Companies, Inc., Northwest Pipeline Corporation, Transcontinental Gas Pipe Line
Corporation, and Williams Partners L.P. as Borrowers, and Citicorp USA, Inc. as Administrative
Agent as it may be amended or restated from time to time (the “Williams Companies Credit
Agreement”)) determined the date of the borrowing. The borrowings may be repaid prior to the
end of the one-month interest period without breakage or similar costs. If any borrowing is not
repaid within one month, the interest rate will be adjusted to the current one month Eurodollar
Rate upon the expiration of the one month interest period set forth above and upon the expiration
of each one month interest period thereafter so long as such borrowing is outstanding.

5. Revolving Nature and Availability. Subject to the terms and conditions hereof, the Borrower may
increase or decrease loans under this Agreement by making drawdowns, repayments and further
drawdowns.

6. Conditions of Loans. The obligation of Lender to make the loans described herein is subject to
the following conditions:

     (a) Default has not occurred and is continuing;

     (b) the proceeds of the proposed loan disbursement are, at the date of the relevant request,
needed by the Borrower for working capital purposes, as reasonably determined by Borrower.

7. Interest. The Borrower promises to pay all accrued and unpaid interest on the unpaid principal
amount of any borrowing on the earlier to occur of (i) the last day of each fiscal quarter of
Borrower that such borrowing is outstanding, or (ii) the date that the applicable borrowing is
repaid. All payments of principal and interest shall be payable in lawful currency of the United
States of America at the office of the Lender as provided above or such other address as the holder
hereof shall have designated to the Borrower, in immediately available funds.

8. Prepayment. Borrower may prepay all or part of any amounts outstanding hereunder at any time
without payment of penalty. Any partial prepayment, however, shall be applied against unpaid
installments outstanding hereunder in the inverse order of maturity beginning with the shortest
maturity and shall not be made in amounts of less than $5,000.

9. Default. Borrower shall be in default (“Default”) if any of the following events occur and
continue:

     (a) It becomes insolvent or admits in writing its inability to pay its debts as they mature;
applies for, consents to, or acquiesces in the appointment of a trustee or receiver for any of its
property; in the absence of an application, consent, or acquiescence a trustee or receiver is
appointed for it or a substantial part of its property and is not discharged within 60 days; it
otherwise commits an act of bankruptcy; or any bankruptcy, reorganization, debt arrangement, or

 

 

other proceeding under any bankruptcy or insolvency law, or any dissolution or liquidation
proceeding, is instituted by or against it and if instituted is consented to or acquiesced in by it
or remains for 60 days undismissed;

     (b) It defaults in the performance of the terms and conditions of this Agreement and such
default continues for 30 days after notice thereof from Lender; or

     (c) Any government, board, agency, department, or commission takes possession or control of a
substantial part of Borrower’s property and such possession or control continues for 30 days.

10. Acceleration at Option of Lender. If any of the events listed in paragraph 9(a), (b), or (c)
occur and continue, Lender may declare the amounts outstanding under this Agreement immediately due
and payable, at which time all unpaid installments shall immediately become due and payable.
Lender shall promptly advise Borrower in writing of any acceleration under this paragraph, but the
failure to do so shall not impair the effect of a subsequent declaration.

11. Cross-References to Williams Companies Credit Agreement. Notwithstanding anything contained in
this Agreement to the contrary, in the event (i) there is a default under the Williams Companies
Credit Agreement, and/or (ii) the Williams Companies Credit Agreement or the commitments of the
lenders to make loans thereunder are terminated for any reason, Lender and Borrower agree that any
provision in this Agreement that relies on cross-references to the Williams Companies Credit
Agreement shall be interpreted as if the Williams Companies Credit Agreement was not in default and
was in full force and effect, the intention of the parties to this Agreement being that Borrower
shall, following such default and/or termination, have the right to continue to make revolving
borrowings under this Agreement at the interest rates and upon the other terms and conditions so
cross-referenced as if such default and/or termination had not occurred with respect to the
Williams Companies Credit Agreement. The parties hereto agree and acknowledge that the reduction
in, or termination of, the commitments under the Williams Companies Credit Agreement or the failure
or refusal of the lenders under the Williams Companies Credit Agreement to make loans thereunder
for any reason, including, without limitation, due to a default thereunder and/or the termination
thereof, shall not affect Lender’s obligations to make loans under this Agreement.

12. Binding Effect. This Agreement shall be binding on the respective successors and assigns of
Lender and Borrower and shall inure to the benefit of Lender’s successors and assigns.

13. Loan Expenses. Except as expressly set forth herein, Borrower shall not be required to pay any
fees or other expenses of Lender in connection with this Agreement or the Loans made hereunder.

14. Commitment Fee.
The Borrower shall pay to the Lender a commitment fee on the
daily average unused amount of the revolving loans for the period
from and including the Effective Date up to, but excluding, the
Maturity Date at a rate of 0.30%. Accrued commitment fees shall be
payable quarterly in arrears on the last day of each fiscal quarter
of Borrower and on the Maturity Date. All commitment fees shall be
computed on the basis of a year of 365 days (or 366 days in
a leap year) and shall be payable for the actual number of days elapsed
(including the first day but excluding the last day).

15. Non-Waiver. No delay or failure by Lender to exercise any right under this Agreement, and no
partial or single exercise of that right, shall constitute a waiver of that or any other right,
unless otherwise expressly provided herein.

16. Governing Law. This Agreement shall be construed in accordance with and governed by the laws
of the State of New York.

 

 

17. Headings. Headings in this Agreement are for convenience only and shall not be used to
interpret or construe its provisions.

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

19. Time of Essence. Time is expressly declared to be the essence of this Agreement.

20. Entire Agreement; Modification. This instrument and any other loan documents executed in
connection herewith constitute the entire Agreement between Lender and Borrower and may not be
contradicted by evidence of prior, contemporaneous or subsequent oral agreements of the parties.
There are no oral agreements between the parties. This Agreement may not be modified except in a
writing signed by both parties.

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

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

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

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

25. Indemnification. Borrower agrees to pay on demand all reasonable costs and expenses incurred
by Lender in connection with enforcement of this Agreement. Borrower agrees to the fullest extent
permitted by law, to indemnify and hold harmless the Lender and each of its directors, officers,
employees and agents (each an “Indemnified Party”) from and against any and all claims, damages,
liabilities and expenses (including without limitation fees and disbursements of counsel) arising
out of or in connection with any investigation, litigation or proceeding (whether or not any
Indemnified Party is a party) arising out of, related to or in connection with this Agreement, the
loans made hereunder or any transaction in which any proceeds of all or any part of the loans made
hereunder are applied.

 

 

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

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

28. Interest Rate Limitation. Notwithstanding anything herein to the contrary, if at any time the
interest rate applicable to any amounts outstanding hereunder, together with all fees, charges and
other amounts which are treated as interest on such amounts under applicable law (collectively the
“Charges”), shall exceed the maximum lawful rate (the “Maximum Rate”) which may be
contracted for, charged, taken, received or reserved by Lender in accordance with applicable law,
the rate of interest payable in respect of such amounts outstanding hereunder, together with all
Charges payable in respect thereof, shall be limited to the Maximum Rate and, to the extent lawful,
the interest and Charges that would have been payable in respect of such amounts outstanding but
were not payable as a result of the operation of this Section 28 shall be cumulated and the
interest and Charges payable to Lender in respect of other amounts outstanding hereunder or periods
shall be increased (but not above the Maximum Rate therefor) until such cumulated amount, together
with interest thereon at the Federal Funds Effective Rate to the date of repayment, shall have been
received by such Lender. “Federal Funds Effective Rate” as used herein means, for any day, the
weighted average (rounded upwards, if necessary, to the next 1/100 of 1%) of the rates on overnight
Federal funds transactions with members of the Federal Reserve System arranged by Federal funds
brokers, as published on the next succeeding business day by the Federal Reserve Bank of New York,
or, if such rate is not so published for any day that is a business day, the average (rounded
upwards, if necessary, to the next 1/100 of 1%) of the quotations for such day for such
transactions received by Lender from three Federal funds brokers of recognized standing selected by
it.

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

 

 

	 	 	 	 
	 

	The Williams Companies, Inc.
	 
	 	 
	 

	By:	 
	 
	 	 
	 

	Williams Partners L.P.
	 
	 	 
	 

	By:	Williams Partners GP
	 
	 	 
	 

	 	by:_______________________________________

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