Document:

exv4w3

 

Exhibit 4.3

COLLATERAL ACCOUNT AGREEMENT

          COLLATERAL ACCOUNT AGREEMENT, dated as of April 4, 2008, made by SUPERIOR OFFSHORE
INTERNATIONAL, INC., a Delaware corporation (the “Pledgor”), in favor of JPMORGAN CHASE
BANK, N.A., as Administrative Agent (in such capacity, the “the Administrative Agent”) and
as Securities Intermediary (in such capacity, the “Securities Intermediary”) for the
Secured Parties (as hereinafter defined).

Preliminary Statement

          As security for those certain letters of credit listed on Schedule I hereto (such listed
letters of credit, the “L/C Agreement”), the Pledgor has agreed to enter into this
Agreement for the benefit of the Administrative Agent, the issuer of such letters of credit and
their respective successors and assigns (each individually, a “Secured Party”,
collectively, the “Secured Parties”).

          In addition, Secured Parties will offer certain other services (commercial credit cards and
stored value cards (the “Cards”)) in accordance with agreements in form and substance
substantially identical to the ones attached as Exhibit A (the “Services Agreements”).
Cash Collateral deposited into the Collateral Account will also be used to secure the obligations
of Pledgor to the Second Parties.

               1. Defined Terms. As used herein, the following terms shall have the following
meanings:

          “Agreement”: this Collateral Account Agreement, as the same may be amended,
supplemented or otherwise modified from time to time.

          “Cash Collateral”: the collective reference to:

     (a) all cash, instruments, securities, other financial assets and funds deposited from
time to time in the Collateral Account;

     (b) all investments of funds in the Collateral Account and all instruments, securities
and other financial assets evidencing such investments;

     (c) all interest, dividends, cash, instruments, securities and other financial assets
and other property received in respect of, or as proceeds of, or in substitution or exchange
for, any of the foregoing; and

     (d) any security entitlement to any of the foregoing.

          “Collateral
Account”: account no.                   established at the office of JPMorgan
Chase Bank, N.A. at 201 St. Charles Avenue, 28th Floor, New Orleans LA 70170, Attention: Carol
DiVita for the Administrative Agent as entitlement holder thereto designated “Superior Offshore
International, Inc. Collateral Account” with such abbreviations as may be required to comply with
the Securities Intermediary’s operating systems.

          “Collateral”: the collective reference to the Cash Collateral and the Collateral
Account.

 Collateral
Account Agreement

  

 

          “Collateral Account Termination Date”: the date of termination of each L/C Agreement
and of the final and irrevocable termination of all the Secured Parties’ obligations to make any
payments thereunder or under the letters of credit issued thereunder and the termination of all
Cards and the Secured Parties’ obligations to make any payments or reimbursements thereunder.

          “Moody’s”: Moody’s Investors Service, Inc.

          “Permitted Investments”: (i) investments in certificates of deposit and time deposits
maturing before the Collateral Account Termination Date issued or guaranteed by or placed with, and
money market deposit accounts issued or offered by, the domestic office of the Administrative
Agent, (ii) commercial paper rated, at the time of acquisition, at least “A-1” or the equivalent
thereof by S&P or “P-1” or the equivalent thereof by Moody’s in either case maturing within twelve
months after the date of acquisition and (iii) other investments approved by the Administrative
Agent.

          “Secured Obligations”: the collective references to all obligations and liabilities
of the Pledgor which may arise under or in connection with this Agreement and the Underlying
Agreements.

          “S&P”: Standard & Poor’s Ratings Services, a division of The McGraw Hill Companies,
Inc.

          “UCC”: the Uniform Commercial Code in effect in the State of Texas or any other
applicable jurisdiction from time to time.

          “Underlying Agreements”: the collective reference to the L/C Agreement and the
Services Agreements.

               2. Grant of Security Interest. As collateral security for the prompt and complete
payment and performance when due (whether at the stated maturity, by acceleration or otherwise) of
the Secured Obligations, the Pledgor hereby grants to the Administrative Agent, for the benefit of
the Collateral Agent and for the ratable benefit of the Secured Parties, a security interest in the
Collateral.

               3. Establishment and Maintenance of Collateral Account.

               (a) The Collateral Account shall be a “Securities Account” as such term is defined in Section
8.501(a) of the UCC. The Securities Intermediary shall, subject to the terms of this Agreement,
treat the Administrative Agent as entitled to exercise the rights that comprise any financial asset
credited to the Collateral Account. All securities or other property underlying any financial
assets credited to the Collateral Account shall be registered in the name of the Securities
Intermediary (or its nominee), endorsed to the Securities Intermediary (or its nominee) or in blank
or credited to another securities account maintained in the name of the Securities Intermediary and
in no case will any financial asset credited to the Collateral Account be registered in the name of
the Pledgor, payable to the order of the Pledgor or specially indorsed to the Pledgor except to the
extent the foregoing have been specially endorsed to the Securities Intermediary (or its nominee)
or in blank.

               (b) The Collateral Account shall be maintained until the Collateral Account Termination Date.

               (c) The Collateral shall be subject to the exclusive dominion and control of the
Administrative Agent, which shall hold the Collateral and administer the Collateral Account subject
to

 Collateral
Account Agreement

 2

 

the terms and conditions of this Agreement. The Pledgor shall have no right of withdrawal
from the Collateral Account, except as expressly provided herein.

               4. “Financial Assets” Election. The Securities Intermediary hereby agrees that each item
of property (whether investment property, financial asset, security, instrument or cash) credited
to the Collateral Account shall be treated as a “financial asset” within the meaning of Section
8.102(a)(9) of the UCC.

               5. Deposit of Funds. On the Closing Date, the Pledgor shall deposit immediately available
funds in the Collateral Account so that the total amount deposited in the Collateral Account as of
the Closing Date is not less than an amount equal to (a) $12,606,508.52 to secure the letters of
credit outstanding on the date hereof (as listed on Schedule I hereto) plus (b) $150,000.00
to secure the Cards issued on or as of the date hereof.

               6. Representations and Warranties of the Pledgor. The Pledgor represents and warrants to
the Administrative Agent that:

               (a) The Pledgor has the power and authority and the legal right to execute and deliver, to
perform its obligations under, and to grant the security interest in the Collateral pursuant to,
this Agreement and has taken all necessary action to authorize its execution, delivery and
performance of, and grant of the security interest in the Collateral pursuant to, this Agreement.

               (b) This Agreement constitutes a legal, valid and binding obligation of the Pledgor
enforceable against the Pledgor in accordance with its terms and creates in favor of the
Administrative Agent a perfected, first priority security interest in the Collateral, enforceable
in accordance with its terms, except in each case as affected by bankruptcy, insolvency, fraudulent
conveyance, reorganization, moratorium and other similar laws relating to or affecting creditors’
rights generally, general equitable principles (whether considered in a proceeding in equity or at
law) and an implied covenant of good faith and fair dealing.

               7. Covenants of the Pledgor. The Pledgor covenants and agrees with the Administrative
Agent that:

               (a) The Pledgor will not sell, assign, transfer, exchange, or otherwise dispose of, or grant
any option with respect to, the Collateral, or create, incur or permit to exist any Lien or option
in favor of, or any claim of any Person with respect to, any of the Collateral, or any interest
therein, except for the security interest created by this Agreement.

               (b) The Pledgor will maintain the security interest created by this Agreement as a first
priority, perfected security interest, and defend the right, title and interest of the
Administrative Agent and the Secured Parties in and to the Collateral against the claims and
demands of all Persons whomsoever. At any time and from time to time, upon the request of the
Administrative Agent, and at the sole expense of the Pledgor, the Pledgor will promptly and duly
execute and deliver such further instruments and documents and take such further actions as the
Administrative Agent reasonably may request for the purposes of obtaining or preserving the full
benefits of this Agreement and of the rights and powers herein granted, including, without limitation, the filing of financing statements
under the UCC.

 Collateral
Account Agreement

 3

 

               8. Investment of Cash Collateral.

               (a) Subject to the provisions of Section 8(b), collected funds on deposit in the Collateral
Account shall be invested by the Securities Intermediary from time to time in Permitted
Investments; provided, however, that so long as no default hereunder and/or under an Underlying
Agreement shall have occurred and be continuing, the Securities Intermediary shall, if and to the
extent that the Pledgor so directs, make such investments in Permitted Investments at the direction
of the Pledgor. All investments shall be made in the name of the Securities Intermediary or a
nominee of the Securities Intermediary and in a manner, determined by the Administrative Agent in
its sole discretion, that preserves the Administrative Agent’s perfected, first priority security
interest on behalf of the Secured Parties in such investments.

               (b) The Securities Intermediary shall have no obligation to invest collected funds during the
first night after their collection.

               (c) The Securities Intermediary shall have no responsibility to the Pledgor for any loss or
liability arising in respect of investments of the Cash Collateral in Permitted Investments
(including, without limitation, as a result of the liquidation of any portion thereof before
maturity).

               (d) The Pledgor will pay or reimburse the Securities Intermediary for any and all costs,
expenses and liabilities of the Securities Intermediary incurred in connection with this Agreement,
the maintenance and operation of the Collateral Account and the investment of the Collateral, and
any reasonable investment charges or other fees in connection with maintenance of the Collateral
Account.

               9. Remedies.

               (a) Following an event of default hereunder and/or under an Underlying Agreement, if Cash
Collateral remains in the Collateral Account, the Administrative Agent may, without notice of any
kind, except for notices required by law which may not be waived, apply the Cash Collateral, after
deducting all reasonable costs and expenses of every kind incurred in respect thereof or in any way
relating to the Cash Collateral or the rights of the Administrative Agent and the Secured Parties
hereunder, including, without limitation, reasonable attorneys’ fees and disbursements of counsel
to the Administrative Agent, to the payment in whole or in part of the Secured Obligations, and
only after such application and after the payment by the Administrative Agent of any other amount
required by any provision of law, including, without limitation, Section 9.608(a)(1)(C) of the UCC,
need the Administrative Agent account for the surplus, if any, to the Pledgor. In addition to the
rights, powers and remedies granted to it under this Agreement and in any other agreement securing,
evidencing or relating to the Secured Obligations, the Administrative Agent shall, following the
acceleration of the Obligations, have all the rights, powers and remedies available at law,
including, without limitation, the rights and remedies of a secured party under the UCC. To the
extent permitted by law, the Pledgor waives presentment, demand, protest and all notices of any
kind and all claims, damages and demands it may acquire against the Administrative Agent or any
Secured Party arising out of the exercise by them of any rights hereunder.

               (b) The Secured Parties shall have a right of set-off against the Collateral Account and all
of the rights and remedies of a secured party under the Texas Uniform Commercial Code,

or other applicable law, and all rights and remedies provided herein and in any Underlying
Agreement, all of which rights and remedies shall, to the full extent permitted by law, be
cumulative.

               (c) Upon the payment of any draw under any letter of credit subject hereto, or if the Pledgor
fails to pay any fees payable with respect to such letters of credit as and when due (giving effect
to any applicable grace or cure period) the Pledgor hereby directs Secured Parties to set-off

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Account Agreement

 4

 

the
Collateral Account in the amount of such draw, and to liquidate any Permitted Investments then held
in the Collateral Account as the Secured Parties deem necessary in connection therewith.

               (d) Upon the Pledgor’s failure to pay any amounts then due and owing under any Card on or
before the due date for such payment in accordance with the applicable Services Agreement (giving
effect to any applicable grace or cure period), the Pledgor hereby directs Secured Parties to
set-off the Collateral Account in the amount of the past due amount, and to liquidate any Permitted
Investments then held in the Collateral Account as the Secured Parties deem necessary in connection
therewith.

               (e) The Pledgor shall remain liable for any deficiency if the proceeds of any sale or other
disposition of the Collateral are insufficient to pay the Secured Obligations, and the fees and
disbursements of any attorneys employed by the Administrative Agent or any Secured Party to collect
such deficiency and any other expenses incurred by the Administrative Agent or any Secured Party in
connection with such collection.

               10. Administrative Agent’s Appointment as Attorney-in-Fact.

               (a) The Pledgor hereby irrevocably constitutes and appoints the Administrative Agent and any
officer or agent of the Administrative Agent, with full power of substitution, as its true and
lawful attorney-in-fact with full irrevocable power and authority in the place and stead of the
Pledgor and in the name of the Pledgor or in the Administrative Agent’s own name, from time to time
in the Administrative Agent’s discretion, for the purpose of carrying out the terms of this
Agreement, to take, upon the occurrence and during the continuation of an event of default
hereunder and/or under any Underlying Agreement, any and all appropriate action and to execute any
and all documents and instruments which may be necessary or desirable to accomplish the purposes of
this Agreement, including, without limitation, any endorsements, assignments or other instruments
of transfer.

               (b) The Pledgor hereby ratifies all that said attorneys shall lawfully do or cause to be done
pursuant to the power of attorney granted in Section 10(a). All powers, authorizations and
agencies contained in this Agreement are coupled with an interest and are irrevocable until this
Agreement is terminated and the security interests created hereby are released.

               11. Duty of the Securities Intermediary and the Administrative Agent. The Securities
Intermediary’s and the Administrative Agent’s sole duty with respect to the custody, safekeeping
and physical preservation of any Collateral in its possession, under Section 9.207 of the UCC or
otherwise, shall be to comply with the specific duties and responsibilities set forth herein.
Except as specifically set forth herein, the powers conferred on the Administrative Agent in this
Agreement are solely for the protection of the Administrative Agent’s and the Secured Parties’
interests in the Collateral and shall not impose any duty upon the Administrative Agent or any
Secured Party to exercise any such powers. Neither the Administrative Agent nor any Secured Party
nor its or their directors, officers, employees or agents shall be liable for any action lawfully
taken or omitted to be taken by any of them under or in connection with the Collateral or this
Agreement, except for its or their gross negligence or willful misconduct as finally determined by
a court of competent jurisdiction.

          The Securities Intermediary may conclusively rely on a direction which it believes in good faith is from a person or persons
having authority to take such action. The Securities Intermediary shall incur no liability to any Secured Party or the Pledgor for acting on any instruction,
direction or other communication on which the Securities Intermediary is authorized to rely pursuant to this Agreement, or for any delay in delivery or non-delivery
or error in transmission (in each case, other than in the case of gross negligence or willful misconduct).

Collateral
Account Agreement

 5

 

          12. Filing of Financing Statements. Pursuant to applicable law, the Pledgor
authorizes the Administrative Agent to file financing statements with respect to the Collateral in
such form and in such filing offices as the Administrative Agent reasonably determines appropriate
to perfect the security interests of the Administrative Agent under this Agreement.

          13. Authority of Administrative Agent. The Pledgor acknowledges that as between the
Administrative Agent and the Pledgor, the Administrative Agent shall be conclusively presumed to be
acting as Administrative Agent for the Secured Parties with full and valid authority so to act or
refrain from acting, and the Pledgor shall not be under any obligation, or entitlement, to make any
inquiry respecting such authority.

          14. Certain Releases. Amounts on deposit in the Collateral Account will be released
to the Pledgor upon request of the Pledgor under the following circumstances:

          (a) If any letter of credit expires in accordance with its terms without being drawn upon or
is otherwise returned to a Secured Party for cancellation without being drawn upon, the Pledgor
hereby directs the Secured Parties to transfer from the Collateral Account to such account as the
Pledgor shall specify in writing an amount equal to 105% of the face amount of such letter of
credit, less all accrued but unpaid fees and expenses related to such expired letter of credit, and
to liquidate any Permitted Investments as the Secured Party deems necessary in connection with such
transfer.

          (b) Upon the termination or expiration of the Cards and the timely payment of the amounts due
thereunder, the Pledgor hereby directs the Secured Parties to transfer from the Collateral Account
to such account as the Pledgor shall specify in writing an amount equal to 100% of the maximum
credit limit of such terminated or expired Card, less all accrued but unpaid fees and expenses
related to such Card, and to liquidate any Permitted Investments as the Secured Party deems
necessary in connection with such transfer.

          (c) The Administrative Agent will release to such account as the Pledgor shall specify in
writing amounts on deposit (or to the credit of), if any, in the Collateral Account on the
Collateral Account Termination Date.

          15. Termination. At the close of business of the Securities Intermediary on the
Collateral Account Termination Date, this Agreement and all obligations (other than those expressly
stated to survive termination) of the parties hereunder shall terminate.

          16. Notices. All notices and other communications to or between the respective parties hereto to be
effective shall be addressed as follows:

To Administrative Agent:

JPMorgan Chase Bank, N.A.

201 St. Charles Avenue, 28th Floor,

New Orleans LA 70170

Attention: Robert L. Rumney

To Pledgor:

Superior Offshore International, Inc.

717 Texas Avenue, Suite 3150

Houston, Texas 77002

Attention: Thomas Daman

 Collateral
Account Agreement

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          17. Severability. Any provision of this Agreement that is prohibited or unenforceable
in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such
prohibition or unenforceability without invalidating the remaining provisions hereof, and any such
prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable
such provision in any other jurisdiction.

          18. Amendments in Writing; No Waiver; Cumulative Remedies.

          (a) None of the terms or provisions of this Agreement may be waived, amended,
supplemented or otherwise modified except by a written instrument executed by the Pledgor, the
Administrative Agent and the Securities Intermediary.

          (b) Neither the Administrative Agent nor any Secured Party shall by any act (except by a
written instrument pursuant to Section 18(a) hereof) of delay, indulgence, omission or otherwise be
deemed to have waived any right or remedy hereunder or to have acquiesced in any Default or Event
of Default or in any breach of any of the terms and conditions hereof. No failure to exercise, nor
any delay in exercising, on the part of the Administrative Agent or any Secured Party, any right,
power or privilege hereunder shall operate as a waiver thereof. No single or partial exercise of
any right, power or privilege hereunder shall preclude any other or further exercise thereof or the
exercise of any other right, power or privilege. A waiver by the Administrative Agent or any
Secured Party of any right or remedy hereunder on any one occasion shall not be construed as a bar
to any right or remedy which the Administrative Agent or such Secured Party would otherwise have on
any future occasion.

          (c) The rights and remedies herein provided are cumulative, may be exercised singly or
concurrently and are not exclusive of any other rights or remedies provided by law.

          19. Section Headings. The section headings used in this Agreement are for convenience
of reference only and are not to affect the construction hereof or be taken into consideration in
the interpretation hereof.

          20. Successors and Assigns. This Agreement and the Collateral Account shall be binding upon the successors and assigns of
the Pledgor and the Securities Intermediary and shall inure to the benefit of the Administrative
Agent and the Secured Parties and their successors and assigns.

          21. Indemnity and Expenses.

          (a) The Pledgor agrees to indemnify the Administrative Agent, from and against any and all
claims, losses and liabilities to the extent relating to, growing out of or resulting from this
Agreement and the transactions contemplated hereby (including, without limitation, enforcement of
this Agreement), other than such claims, losses or liabilities resulting from the Administrative
Agent’s gross negligence or willful misconduct as finally determined by a court of competent
jurisdiction.

          (b) The Pledgor shall pay to the Administrative Agent upon demand the amount of any and all
costs and expenses, including the reasonable fees and expenses of its counsel, that the
Administrative Agent may incur in connection with (i) the administration of this Agreement, (ii)
the custody, preservation, use or operation of, or the sale of, collection from, or other
realization upon, any of the Collateral, (iii) the exercise or enforcement of any of the rights of
the Administrative Agent or the Securities Intermediary hereunder, or (iv) the failure by the
Pledgor to perform or observe any of the provisions hereof.

Collateral
Account Agreement

 7

 

          (c) The agreements in this Section 21 shall survive termination of this Agreement.

          22. Governing Law. Both this Agreement and the Collateral Account shall be governed
by, and construed and interpreted in accordance with, the law of the State of Texas. For purposes
of the UCC, Texas shall be deemed to be the Securities Intermediary’s jurisdiction and the
Collateral Account (as well as the securities entitlements related thereto) shall be governed by
the laws of the State of Texas.

Collateral
Account Agreement

 8

 

     IN WITNESS WHEREOF, the Pledgor, the Administrative Agent and the Securities Intermediary have
caused this Collateral Agreement to be duly executed and delivered as of the date first above
written.

	 	 	 	 	 
	 	SUPERIOR OFFSHORE INTERNATIONAL, Inc.,

as the Pledgor

 	 
	 	By:  	/s/ Thomas E. Daman
 	 
	 	 	Name:  	Thomas E. Daman 	 
	 	 	Title:  	EVP & Chief Financial Officer 	 
	 
	 	JPMORGAN CHASE BANK, N.A.,

as the Administrative Agent

 	 
	 	By:  	/s/ Christy West
 	 
	 	 	Name:  	Christy West 	 
	 	 	Title:  	Vice President 	 
	 
	 	JPMORGAN CHASE BANK, N.A.,

as the Securities Intermediary

 	 
	 	By:  	/s/ Christy West
 	 
	 	 	Name:  	Christy West 	 
	 	 	Title:  	Vice President 	 
	 

[Signature Page to Collateral Account Agreement]

 

 

Schedule I

Existing Letters of Credit

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	L/C Number	 	L/C Type	 	Expiry	 	Amount	 	Beneficiary
	 
	 	CTCS-347437	 	 	A70S	 	 	May 26, 2008	 	$	742,064.04	 	 	The Commercial Bank of Qatar
	 
	 	CTCS-625823	 	 	A70S	 	 	Nov. 30, 2008	 	$	25,000.00	 	 	Western Surety Company
	 
	 	CTCS-289573	 	 	A70S	 	 	Jan. 21, 2009	 	$	8,000,000.00	 	 	Hornbeck Offshore Services, LLC
	 
	 	CTCS-305857	 	 	A70S	 	 	Dec. 1, 2008	 	$	500,000.00	 	 	Standard Bank of South Africa
	 
	 	CTCS-313377	 	 	A70S	 	 	Aug. 15, 2009	 	$	2,725,000.00	 	 	JPMorgan Chase Bank, N.A.
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	$	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	$	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	$	 	 	 	 
	Total Amount of L/C
Obligations
	 	 	 	 	 	 	 	 	 	 	 	 	 	$	11,992,064.04	 	 	 
	Amount of Cash
Collateral required
by this Agreement
to secure L/C
Obligations
	 	 	 	 	 	 	 	 	 	 	 	 	 	$	12,606,508.52	 	 	 

 Collateral
Account Agreement — Schedule I

  

 

 

Exhibit A

Services Agreements

(See attached)

Collateral
Account Agreement — Exhibit Bexv10w3

 

EXHIBIT 10.3

SERVICES AND SECONDMENT AGREEMENT

BY AND BETWEEN

WESTERN GAS HOLDINGS, LLC

AND

ANADARKO PETROLEUM CORPORATION

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 
	 	ARTICLE I	 	 	 	 
	 
	 	SECONDMENT	 	 	 	 
	1.1
	 	Seconded Employees.	 	 	1	 
	1.2
	 	Period of Secondment.	 	 	2	 
	1.3
	 	Withdrawal, Departure or Resignation.	 	 	2	 
	1.4
	 	Termination of Secondment.	 	 	3	 
	1.5
	 	Supervision.	 	 	3	 
	1.6
	 	Seconded Employee Qualifications; Approval.	 	 	4	 
	 
	 	 	 	 	 	 
	 
	 	ARTICLE II	 	 	 	 
	 
	 	SECONDMENT SERVICES	 	 	 	 
	 
	 	 	 	 	 	 
	2.1
	 	Secondment Services.	 	 	4	 
	2.2
	 	Cancellation or Reduction of Secondment Services.	 	 	4	 
	2.3
	 	Workers’ Compensation.	 	 	4	 
	 
	 	 	 	 	 	 
	 
	 	ARTICLE III	 	 	 	 
	 
	 	SERVICES REIMBURSEMENT	 	 	 	 
	 
	 	 	 	 	 	 
	3.1
	 	Operational, Management, Reporting and Routine Maintenance Expenses.	 	 	5	 
	3.2
	 	Seconded Employees.	 	 	5	 
	 
	 	 	 	 	 	 
	 
	 	ARTICLE IV	 	 	 	 
	 
	 	ALLOCATION; RECORDS; AGENT	 	 	 	 
	 
	 	 	 	 	 	 
	4.1
	 	Allocation; Records.	 	 	6	 
	4.2
	 	Agent.	 	 	6	 
	 
	 	 	 	 	 	 
	 
	 	ARTICLE V	 	 	 	 
	 
	 	TERM	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	ARTICLE VI	 	 	 	 
	 
	 	GENERAL PROVISIONS	 	 	 	 
	 
	 	 	 	 	 	 
	6.1
	 	Accuracy of Recitals.	 	 	7	 
	6.2
	 	Choice of Law; Submission to Jurisdiction.	 	 	7	 
	6.3
	 	Notices.	 	 	7	 
	6.4
	 	Further Assurances.	 	 	8	 
	6.5
	 	Entire Agreement.	 	 	8	 
	6.6
	 	Effect of Waiver or Consent.	 	 	8	 
	6.7
	 	Amendment or Modification.	 	 	8	 
	6.8
	 	Assignment; Third-Party Beneficiaries.	 	 	8	 
	6.9
	 	Counterparts.	 	 	8	 
	6.10
	 	Severability.	 	 	9	 
	6.11
	 	Interpretation.	 	 	9	 
	6.12
	 	Titles and Headings.	 	 	9	 
	6.13
	 	Relationship of the Parties.	 	 	9	 

i

 

	 	 	 	 	 	 	 
	6.14
	 	Binding Effect.	 	 	10	 
	6.15
	 	Time of the Essence.	 	 	10	 
	6.16
	 	Delay or Partial Exercise Not Waiver.	 	 	10	 
	6.17
	 	Withholding or Granting of Consent.	 	 	10	 
	6.18
	 	Laws and Regulations.	 	 	10	 
	6.19
	 	No Recourse Against Officers or Directors.	 	 	10	 
	6.20
	 	Signatories Duly Authorized.	 	 	10	 
	6.21
	 	Incorporation of Exhibits by References.	 	 	10	 
	6.22
	 	Dispute Resolution and Arbitration.	 	 	11	 
	6.23
	 	Continuation of Work During Dispute.	 	 	12	 
	6.24
	 	Legal Compliance.	 	 	12	 

-ii-

 

SERVICES AND SECONDMENT AGREEMENT

     This Services and Secondment Agreement (the “Agreement”), dated as of [                    ], 2008 (the
“Effective Date”), is entered into between Anadarko Petroleum Corporation, a Delaware corporation
(“Anadarko”), and Western Gas Holdings, LLC, a Delaware limited liability company (“General
Partner”) and the general partner of Western Gas Partners, LP, a Delaware limited partnership (the
“Partnership”). Anadarko and the General Partner are hereinafter each referred to as a “Party” and
are collectively referred to as the “Parties.” Capitalized terms used herein but not defined shall
have the meanings given them in that certain Omnibus Agreement by and among the Partnership, the
General Partner and Anadarko, dated [                    ], 2008 (the “Omnibus Agreement”).

RECITALS:

     WHEREAS, Anadarko will cause the Anadarko Entities to provide to the Partnership Group the
services necessary to operate, manage, maintain and report the operating results of the
Partnership’s assets, including gathering pipelines, compressors, treating facilities,
transportation pipelines or related equipment or assets (the “Partnership Assets”);

     WHEREAS, in connection with the provision of the services under this Agreement, Anadarko
desires to second to the General Partner certain personnel employed or contracted by the Anadarko
Entities in connection with the Partnership Assets;

     NOW THEREFORE, in consideration of the premises and the mutual covenants and agreements
contained herein, and other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, Anadarko and the General Partner hereby agree as follows:

ARTICLE I

SECONDMENT

1.1 Seconded Employees.

     Subject to the terms of this Agreement, Anadarko agrees to cause the Anadarko Entities to
second to the General Partner, and the General Partner agrees to accept the secondment of, those
certain specifically identified individuals (each, a “Seconded Employee” and collectively, the
“Seconded Employees”) listed on Exhibit A (the “Seconded Employee Schedule”) for the
purpose of performing job functions related to the Partnership Assets (the “Secondment”). The
Seconded Employees will remain at all times employees of the Anadarko Entities but, in addition,
they will also be temporary employees of the General Partner during the Period of Secondment (as
defined below) and shall, at all times during the Period of Secondment, work under the direction,
supervision and control of the General Partner. Anadarko will retain the right to cause the
Anadarko Entities to hire or discharge the Seconded Employees but, subject to the provisions in
Section 1.2, will not have the right to cause the Anadarko Entities to terminate the Secondment to
the General Partner or otherwise exercise direction, supervision or control over the Seconded
Employees. For each Seconded Employee, the “Period of Secondment” shall be that period of time as
set forth in Section 1.2. Seconded Employees shall have no authority or

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apparent authority to act on behalf of the Anadarko Entities during the Period of Secondment.
The Seconded Employee Schedule sets forth the names of the Seconded Employees seconded by the
Anadarko Entities, the job functions of the Seconded Employees and the starting date for the Period
of Secondment for each Seconded Employee. Individuals may be added or removed from the Seconded
Employee Schedule from time to time by the execution by the Parties of a completed
“Addition/Removal/Change of Responsibility of Seconded Employee” form, the form of which is
attached to this Agreement as Exhibit B, which will be fully binding on the Parties for all
purposes under this Agreement. Those rights and obligations of the Parties under this Agreement
that relate to individuals that were on the Seconded Employee Schedule but then later removed from
the Seconded Employee Schedule, which rights and obligations accrued before the removal of such
individual, will survive the removal of such individual from the Seconded Employee Schedule to the
extent necessary to enforce such rights and obligations.

1.2 Period of Secondment.

     Anadarko will cause the Anadarko Entities to second to the General Partner each Seconded
Employee on the start date set forth on the Seconded Employee Schedule and continue to second,
during the period (and only during the period) that the Seconded Employee is performing services
for the General Partner, until the earliest of:

     (a) the end of the term of this Agreement;

     (b) the end date, if any, set forth for the Seconded Employee on the Seconded Employee
Schedule (or another end date for such Seconded Employee as mutually agreed in writing by the
Parties) (the “End Date”);

     (c) a withdrawal, departure, resignation or termination of such Seconded Employee under
Section 1.3;

     (d) the date on which WGR Holdings, LLC ceases to own a majority of the issued and outstanding
voting equity of the General Partner and the General Partner has entered into satisfactory
arrangements which it determines, in good faith, will provide it with suitable qualified and
experienced full-time or seconded employees necessary to operate, manage and maintain the
Partnership Assets and

     (e) a termination of Secondment for such Seconded Employee under Section 1.4.

     At the end of the Period of Secondment for any Seconded Employee, such Seconded Employee will
no longer be subject to the direction of the General Partner with regard to the Seconded Employee’s
day-to-day activities.

1.3 Withdrawal, Departure or Resignation.

     Anadarko will use reasonable efforts to cause the Anadarko Entities to prevent any early
withdrawal, departure or resignation of any Seconded Employee prior to the End Date for such
Seconded Employee’s Period of Secondment. If any Seconded Employee tenders his resignation to an
Anadarko Entity as an employee of such Anadarko Entity, Anadarko will promptly notify the General
Partner. During the Period of Secondment for any Seconded Employee, Anadarko

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will cause the Anadarko Entities to not voluntarily withdraw or terminate any Seconded
Employee except with the written consent of the General Partner (which may be through the execution
of a completed Addition/Removal/Change of Responsibility of Seconded Employee form), such consent
not to be unreasonably withheld. Anadarko will indemnify, defend and hold harmless the General
Partner and its directors, officers and employees against any and all costs, expenses (including
reasonable attorneys’ fees), claims, demands, losses, liabilities, obligations, actions, lawsuits
and other proceedings, judgments and awards (each, a “Loss” and collectively, the “Losses”) arising
out of or in any way connected with or related to the termination of employment of any Seconded
Employee by any Anadarko Entity without the consent of THE GENERAL PARTNER, EVEN THOUGH SUCH LOSS
MAY BE CAUSED IN PART BY THE NEGLIGENCE OF ONE OR MORE OF THE PARTNERSHIP ENTITIES, except to the
extent that such Losses (i) arise solely out of or result solely from the negligence, gross
negligence or willful misconduct of any of the Partnership Entities, or (ii) arise in connection
with the termination of a Seconded Employee for cause. Upon the termination of employment, the
Seconded Employee will cease performing services for the General Partner.

1.4 Termination of Secondment.

     The General Partner will have the right to terminate the Secondment to it of any Seconded
Employee for any reason at any time. Subject to Section 1.2, Anadarko will not have the right to
cause any Anadarko Entity to terminate the Secondment to the General Partner of any Seconded
Employee. Upon the termination of any Seconded Employee’s Period of Secondment, Anadarko will be
solely liable for any costs or expenses associated with the termination of the Secondment, except
as otherwise specifically set forth in this Agreement. Anadarko will indemnify, defend and hold
harmless the General Partner and its directors, officers and employees against all Losses arising
out of or in any way connected with or related to the termination of the Secondment of any Seconded
Employee by THE GENERAL PARTNER, EVEN THOUGH SUCH LOSS MAY BE CAUSED IN PART BY THE NEGLIGENCE OF
ONE OR MORE OF THE PARTNERSHIP ENTITIES, except to the extent that such Losses arise solely out of
or result solely from the negligence, gross negligence or willful misconduct of any of the
Partnership Entities. Upon the termination of a Secondment, the Seconded Employee will cease
performing services for the General Partner. At no time will the General Partner have the right to
terminate the employment with the Anadarko Entities of the Seconded Employees.

1.5 Supervision.

     During the Period of Secondment, the General Partner shall:

     (a) be ultimately and fully responsible for the daily work assignments of the Seconded
Employee (and with respect to Seconded Employees that also provide services to the Anadarko
Entities in connection with its operations (“Shared Seconded Employees”), during those times that
the Shared Seconded Employees are performing services for the General Partner hereunder), including
supervision of their day-to-day work activities and performance consistent with the purposes stated
in Section 1.1 and the job functions set forth in the Seconded Employee Schedule;

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     (b) set the hours of work and the holidays and vacation schedules (other than with respect to
Shared Seconded Employees, as to which the General Partner and Anadarko shall jointly determine)
for the Seconded Employee and

     (c) have the right to determine training which will be received by the Seconded Employee.

     In the course and scope of performing any Seconded Employee’s job functions, the Seconded
Employee will be integrated into the organization of the General Partner, will report into the
General Partner’s management structure, and will be under the direct management and supervision of
the General Partner. The General Partner shall designate one of its officers to be responsible for
the supervisory function set forth in this Section 1.5 on behalf of the General Partner.

1.6 Seconded Employee Qualifications; Approval.

     Anadarko will cause the Anadarko Entities to provide such suitably qualified and experienced
Seconded Employees as it is able to make available to the General Partner, and the General Partner
will have the right to approve or reject each such Seconded Employee.

ARTICLE II

SECONDMENT SERVICES

2.1 Secondment Services.

     Anadarko shall cause the Anadarko Entities to second Seconded Employees to the General Partner
to provide the General Partner with those services necessary to operate, manage, maintain and
report the operating results of the Partnership Assets (the “Secondment Services”).

2.2 Cancellation or Reduction of Secondment Services.

     The General Partner may terminate or reduce the level of any of the Secondment Services on 30
days’ prior written notice to Anadarko. In the event the General Partner terminates the Secondment
Services, the General Partner shall pay Anadarko the monthly installment for the last month (or
portion thereof) in which it received such services. Upon payment thereof, the General Partner
shall have no further payment obligations. In the event that the General Partner reduces the level
of any of the Secondment Services, the Parties will negotiate in good faith to determine an
appropriate Services Reimbursement (as defined in Section 3.1 below) for the reduced Secondment
Services.

2.3 Workers’ Compensation.

     At all times, Anadarko will cause the Anadarko Entities to maintain workers’ compensation
insurance (either through an insurance company or self-insured arrangement) applicable to the
Seconded Employees. Anadarko will cause the Anadarko Entities to name the General Partner as an
also insured employer under such insurance policy. Prior to being assigned any duties by the
General Partner, each Seconded Employee must sign an acknowledgement that the Seconded Employee is
an employee during the Secondment Period of

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     both the Anadarko Entities and the General Partner and that for any work place injury, the
Seconded Employee’s sole remedy will be under such Anadarko Entity’s workers’ compensation
insurance policy. Notwithstanding the foregoing, nothing herein shall preclude a Seconded Employee
from participating in benefit programs generally available to employees of Anadarko Entities.

ARTICLE III

SERVICES REIMBURSEMENT

3.1 Operational, Management, Reporting and Routine Maintenance Expenses.

     On or before the fifth business day of each month, Anadarko shall send an invoice to the
General Partner for that amount of money associated with all expenses incurred by the Anadarko
Entities in connection with the performance of the Secondment Services during the preceding month
(the “Services Reimbursement”). The General Partner shall pay such invoice within 30 days of
receipt.

3.2 Seconded Employees.

     Among other items, the Services Reimbursement shall include all reasonable costs and expenses
incurred by the Anadarko Entities for the Seconded Employees, including, but not limited to:

	 	(a)	 	compensation, salary and wages (including payroll and withholding taxes associated
therewith);
	 
	 	(b)	 	401(k) costs and any matching 401(k) contributions;
	 
	 	(c)	 	vacation and sick leave benefits;
	 
	 	(d)	 	medical and health insurance benefits;
	 
	 	(e)	 	disability insurance;
	 
	 	(f)	 	workers’ compensation insurance;
	 
	 	(g)	 	life insurance;
	 
	 	(h)	 	severance payments, if any and
	 
	 	(i)	 	any other employee benefit for which the Anadarko Entities incur costs.

     The costs and expenses
described in (a) through (i) above are referred to as “Seconded
Employee Expenses.” For the avoidance of any doubt, the Seconded Employee Expenses shall not include any payments made
to Seconded Employees under Anadarko’s Value Creation Plan (or any successor plan thereto) and the
excess of actual bonus amounts awarded under Anadarko’s Annual Incentive Plan (“AIP”) to any
Seconded Employee over 120% of such Seconded Employee’s AIP bonus target (collectively, “Excess
Bonus Expenses”). Where it is not reasonably practicable to determine the cost of such a cost or
expense, Anadarko or the applicable Anadarko Entity may make a good faith reasonable estimate of
such cost or expense (and provided that any such estimates, other than with respect to benefit
load, are “trued up” within 10 days of the end of each quarter based on the actual amount of the
expenses, expenditures or payments in respect of which estimates were made in

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the immediately preceding quarter). Anadarko or the applicable Anadarko Entity may include
the costs and expenses described in (b) through (i) above in a percentage benefit load based upon
the amount of costs and expenses incurred in (a) above. Subject
to the parenthetical clause included in this paragraph, the General Partner shall accept any
estimate or benefit load described in this paragraph, provided that such estimate is reasonable and
made in good faith.

ARTICLE IV

ALLOCATION; RECORDS; AGENT

4.1 Allocation; Records.

     Anadarko will use commercially reasonable efforts to maintain an allocation schedule
reflecting the direct and indirect costs of the Seconded Employee Expenses based on the Secondment
Services. The General Partner will use commercially reasonable efforts to keep and maintain
books/records reflecting hours worked and costs and expenses incurred in connection with each of
the Seconded Employees, and Anadarko will have the right from time to time upon its reasonable
request to audit such books/records maintained by the General Partner. The General Partner and its
representatives will have the right to audit the allocation schedule and such other records as the
General Partner may reasonably require in connection with its verification of the Seconded Employee
Expenses during regular business hours and on reasonable prior notice. Based on these records, the
General Partner may request adjustments under Section 3.2 above.

4.2 Agent.

     Seconded Employee Expenses remain the primary legal responsibility of the General Partner as
the employer of the Seconded Employees during the Secondment Period. Anadarko agrees to act as
agent for the General Partner in paying the Seconded Employee Expenses of the employees temporarily
assigned under this Secondment Agreement. Anadarko agrees to indemnify and hold the General
Partner harmless from any and all Losses incurred by the General Partner or any of the other
Partnership Entities related to Anadarko’s failure to carry out its duties as agent for the payment
of the Seconded Employee Expenses as set forth above, except to the extent that such Losses arise
solely out of or result solely from the negligence, gross negligence or willful misconduct of any
of the Partnership Entities.

ARTICLE V

TERM

     The term of this Agreement will commence on the Effective Date and will continue for an
initial period of 10 years. Upon the expiration of the initial 10 year period, the term of this
Agreement shall automatically extend for an additional 12 month period, unless either Party
provides at least 180 days’ prior written notice to the other Party, prior to the expiration of
such initial period, that the Party wishes for this Agreement to expire at the end of the initial
10 year period. After the initial 12 month renewal period, the term of this Agreement shall
automatically extend for additional 12 month periods, unless either Party provides prior written
notice, at least 180 days prior to the expiration of the applicable 12 month period, that the Party
wishes for this Agreement to expire at the end of such 12 month period. Upon proper notice by a
Party to the

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other Party, in accordance with this Article 5, that the Party wishes for this Agreement to
expire on the expiration of the applicable 10 year or 12 month period, this Agreement shall not
automatically extend, but shall instead expire upon the expiration of the applicable 10 year or 12
month period and only those provisions that, by their terms, expressly survive this Agreement shall
so survive. Notwithstanding the foregoing, the General Partner may terminate this Agreement at any
time, upon 180 days prior written notice to Anadarko, and only those provisions that, by their
terms, expressly survive this Agreement shall so survive.

ARTICLE VI

GENERAL PROVISIONS

6.1 Accuracy of Recitals.

     The paragraphs contained in the recitals to this Agreement are incorporated in this Agreement
by this reference, and the Parties to this Agreement acknowledge the accuracy thereof.

6.2 Choice of Law; Submission to Jurisdiction.

     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.

6.3 Notices.

     Any notice, demand or communication required or permitted under this Agreement shall be in
writing and delivered personally, by reputable courier or by telecopier, and shall be deemed to
have been duly given as of the date and time reflected on the delivery receipt, if delivered
personally or sent by reputable courier service, or on the automatic telecopier receipt, if sent by
telecopier, addressed as follows:

Anadarko Petroleum Corporation

1201 Lake Robbins Drive

The Woodlands, Texas 77380

Attn: General Counsel

Fax: 832-636-3214

Western Gas Holdings, LLC

1201 Lake Robbins Drive

The Woodlands, Texas 77380

Attn: President

Fax: 832-636-6001

     A Party may change its address for the purposes of notices hereunder by giving notice to the
other Party specifying such changed address in the manner specified in this Section 6.2.

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6.4 Further Assurances.

     The Parties agree to execute such additional instruments, agreements and documents, and to
take such other actions, as may be necessary to effect the purposes of this Agreement.

6.5 Entire Agreement.

     This Agreement constitutes the entire agreement of the Parties relating to the matters
contained herein, superseding all prior contracts or agreements, whether oral or written, relating
to the matters contained herein.

6.6 Effect of Waiver or Consent.

     No waiver or consent, express or implied, by any Party to or of any breach or default by any
Person (as defined in Section 6.11 below) in the performance by such Person of its obligations
hereunder shall be deemed or construed to be a consent or waiver to or of any other breach or
default in the performance by such Person of the same or any other obligations of such Person
hereunder. Failure on the part of a Party to complain of any act of any Person or to declare any
Person in default, irrespective of how long such failure continues, shall not constitute a waiver
by such Party of its rights hereunder until the applicable statute of limitations period has run.

6.7 Amendment or Modification.

     This Agreement may be amended or modified from time to time only by the written agreement of
all the Parties; provided, however, that the Partnership may not, without the prior approval of the
Special Committee, agree to any amendment or modification of this Agreement that, in the reasonable
discretion of the General Partner, will have an adverse effect on the holders of Common Units.
Each such instrument shall be reduced to writing and shall be designated on its face an “Amendment”
or an “Addendum” to this Agreement.

6.8 Assignment; Third-Party Beneficiaries.

     No Party shall have the right to assign its rights or obligations under this Agreement without
the prior written consent of the other Parties. Each of the Parties hereto specifically intends
that each entity comprising the Anadarko Entities and the Partnership Entities, as applicable,
whether or not a Party to this Agreement, shall be entitled to assert rights and remedies hereunder
as third-party beneficiaries hereto with respect to those provisions of this Agreement affording a
right, benefit or privilege to any such entity.

6.9 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.

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6.10 Severability.

     If any provision of this Agreement or the application thereof to any Person or circumstance
shall be held invalid or unenforceable to any extent, the remainder of this Agreement and the
application of such provision to other Persons or circumstances shall not be affected thereby and
shall be enforced to the greatest extent permitted by law.

6.11 Interpretation.

     In this Agreement, unless a clear contrary intention appears: (a) the singular includes the
plural and vice versa; (b) reference to any individual, or any partnership, corporation, limited
liability company, trust or other legal entity (“Person”) includes such Person’s successors and
assigns but, in the case of Party, only if such successors and assigns are permitted by this
Agreement, and reference to a Person in a particular capacity excludes such Person in any other
capacity; (c) reference to any gender includes each other gender; (d) reference to any agreement
(including this Agreement), document or instrument means such agreement, document, or instrument as
amended or modified and in effect from time to time in accordance with the terms thereof and, if
applicable, the terms of this Agreement; (e) reference to any Section means such Section of this
Agreement, and references in any Section or definition to any clause means such clause of such
Section or definition; (f) “hereunder,” “hereof,” “hereto” and words of similar import will be
deemed references to this Agreement as a whole and not to any particular Section or other provision
hereof or thereof; (g) “including” (and with correlative meaning “include”) means including without
limiting the generality of any description preceding such term; and (h) relative to the
determination of any period of time, “from” means “from and including,” “to” means “to but
excluding” and “through” means “through and including.”

6.12 Titles and Headings.

     Section titles and headings in this Agreement are inserted for convenience of reference only
and are not intended to be a part of, or to affect the meaning or interpretation of, this
Agreement.

6.13 Relationship of the Parties.

     (a) Nothing in this Agreement shall cause any of the Anadarko Entities or the Partnership
Entities to become members of any other partnership, joint venture, association, syndicate or other
entity. Nothing in this Agreement shall cause any Partnership Entity to be considered an Anadarko
Entity, and vice versa.

     (b) As used in this Agreement, “Affiliate” means, with respect to any Person, (a) any other
Person directly or indirectly controlling, controlled by or under common control with such Person,
(b) any Person owning or controlling fifty percent (50%) or more of the voting interests of such
Person, (c) any officer or director of such Person or (d) any Person who is the officer, director,
trustee or holder of fifty percent (50%) or more of the voting interest of any Person described in
clauses (a) through (c). For purposes of this definition, the term “controls,” “is controlled by”
or “is under common control with” shall mean the possession, direct or indirect, of the power to
direct or cause the direction of the management and policies of a Person, whether through the
ownership of voting securities, by contract or otherwise. For purposes of this

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Agreement, no Partnership Entity shall be deemed to be an Affiliate of the Anadarko Entities
nor shall any Anadarko Entity be deemed to be an Affiliate of the Partnership Entities.

6.14 Binding Effect.

     This Agreement will be binding upon, and will inure to the benefit of, the Parties and their
respective successors, permitted assigns and legal representatives.

6.15 Time of the Essence.

     Time is of the essence in the performance of this Agreement.

6.16 Delay or Partial Exercise Not Waiver.

     No failure or delay on the part of any Party to exercise any right or remedy under this
Agreement will operate as a waiver thereof; nor shall any single or partial exercise of any right
or remedy under this Agreement preclude any other or further exercise thereof or the exercise of
any other right or remedy granted hereby or any related document. The waiver by either Party of a
breach of any provisions of this Agreement will not constitute a waiver of a similar breach in the
future or of any other breach or nullify the effectiveness of such provision.

6.17 Withholding or Granting of Consent.

     Unless otherwise provided in this Agreement, each Party may, with respect to any consent or
approval that it is entitled to grant pursuant to this Agreement, grant or withhold such consent or
approval in its sole and uncontrolled discretion, with or without cause, and subject to such
conditions as it shall deem appropriate.

6.18 Laws and Regulations.

     Notwithstanding any provision of this Agreement to the contrary, no Party shall be required to
take any act, or fail to take any act, under this Agreement if the effect thereof would be to cause
such Party to be in violation of any applicable law, statute, rule or regulation.

6.19 No Recourse Against Officers or Directors.

     For the avoidance of doubt, the provisions of this Agreement shall not give rise to any right
of recourse against any officer or director of any Anadarko Entity or any Partnership Entity.

6.20 Signatories Duly Authorized.

     Each of the signatories to this Agreement represents that he is duly authorized to execute
this Agreement on behalf of the Party for which he is signing, and that such signature is
sufficient to bind the Party purportedly represented.

6.21 Incorporation of Exhibits by References.

     Any reference herein to any exhibit to this Agreement will incorporate it herein, as if it
were set out in full in the text of this Agreement.

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6.22 Dispute Resolution and Arbitration.

     (a) Should a dispute arise between the Parties, the Parties shall promptly seek to amicably
resolve any such dispute by negotiations between the Parties prior to the initiation of binding
arbitration in accordance with Section 6.22(b). The Parties shall meet at a mutually acceptable
time and place within fifteen (15) days after written notice by any Party to any other Party
seeking resolution of a dispute under this Section 6.22(a) and thereafter as often as they
reasonably determine to be necessary or appropriate to exchange relevant information and to attempt
to resolve the dispute. All negotiations and communications pursuant to this Section 6.22(a) shall
be treated and maintained by the Parties as confidential information and shall be treated as
compromise and settlement negotiations for purposes of the Federal Rules of Evidence. Any proposed
resolution of a dispute under this Agreement must be approved on behalf of the Partnership by the
Special Committee of the Board of Directors of the General Partner before it is finalized. If the
matter is not resolved within 30 days after the initial meeting of the Parties, or such longer
period as may be mutually agreed upon, either Party may initiate arbitration in accordance with
Section 6.22(b).

     (b) Any disputes hereunder, including the inability of the Parties to agree to an adjustment
to the Services Reimbursements pursuant to the provisions of Section 3.1, must be resolved through
the use of binding arbitration using three arbitrators, in accordance with the Commercial
Arbitration Rules of the American Arbitration Association, as supplemented to the extent necessary
to determine any procedural appeal questions by the Federal Arbitration Act (Title 9 of the United
States Code). If there is any inconsistency between this Section and the Commercial Arbitration
Rules or the Federal Arbitration Act, the terms of this Section 6.22 will control the rights and
obligations of the Parties. Arbitration must be initiated within the applicable time limits set
forth in this Agreement and not thereafter or if no time limit is given, within the time period
allowed by the applicable statute of limitations. Arbitration may be initiated by a party
(“Claimant”) serving written notice on another party (“Respondent”) that the Claimant elects to
refer a particular dispute to binding arbitration. Claimant’s notice initiating binding arbitration
must identify the arbitrator Claimant has appointed. The Respondent shall respond to Claimant
within 30 days after receipt of Claimant’s notice, identifying the arbitrator Respondent has
appointed. If the Respondent fails for any reason to name an arbitrator within the 30-day period,
Claimant shall petition to the American Arbitration Association for appointment of an arbitrator
for Respondent’s account. The two arbitrators so chosen shall select a third arbitrator within 30
days after the second arbitrator has been appointed. The Claimant will pay the compensation and
expenses of the arbitrator named by or for it, and the Respondent will pay the compensation and
expenses of the arbitrator named by or for it. The costs of petitioning for the appointment of an
arbitrator, if any, shall be paid by Respondent. The Claimant and Respondent will each pay one-half
of the compensation and expenses of the third arbitrator. All arbitrators must (a) be neutral
parties with no prior relationships to any participants, parties, attorneys or law firms involved
in the proceedings, (b) have never been officers, directors or employees of any of the Partnership
Entities or Anadarko Entities and (c) have not less than seven years experience in the energy
industry. The hearing will be conducted in Fort Worth, Texas and commence within 30 days after the
selection of the third arbitrator. The Parties and the arbitrators should proceed diligently and in
good faith in order that the award may be made as promptly as possible. Except as provided in the
Federal Arbitration Act, the decision of the

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arbitrators will be binding on and non-appealable by the Parties hereto. The arbitrators shall
have no right to grant or award indirect, consequential, punitive or exemplary damages of any kind.

6.23 Continuation of Work During Dispute.

     Subject to Section 2.2 hereof, notwithstanding any dispute, it shall be the responsibility of
each Party to continue to perform its obligations under this Agreement pending resolution of the
dispute.

6.24 Legal Compliance.

     The Parties acknowledge and agree that this Agreement, and all services provided under this
Agreement, are intended to comply with any and all laws and legal obligations and that this
Agreement should be construed and interpreted with this purpose in mind. In this regard, the
Parties specifically agree as follows:

     (a) The Parties will comply with all equal employment opportunity requirements and other
applicable employment laws. Where a joint or combined action is required by the law in order to
comply with an employment obligation, the parties will cooperate fully and in good faith to comply
with the applicable obligation.

     (b) The General Partner acknowledges and agrees that Seconded Employees may utilize the
complaint reporting and resolution process of Anadarko and agrees to cooperate in the investigation
and resolution of any complaint that may be made.

     (c) The Parties agree that they will adhere to the Fair Labor Standards Act of 1938, as
amended, any comparable state law and any law regulating the payment of wages or compensation. The
General Partner is solely responsible for ensuring that non-exempt Seconded Employees accurately
record their hours and time worked.

[Signature page follows]

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     AS WITNESS HEREOF, the Parties have caused this Agreement to be executed by their duly
authorized representatives on the date herein above mentioned.

	 	 	 	 	 
	 	ANADARKO PETROLEUM CORPORATION

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	

WESTERN GAS HOLDINGS, LLC

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

 

 

	 	 	 	 	 

EXHIBIT A TO THE

SERVICES AND SECONDMENT AGREEMENT

     This Exhibit A is attached the Services and Secondment Agreement (the “Agreement”)
dated
[                    ], 2008
by and between Anadarko Petroleum Corporation and Western Gas Holdings,
LLC. All defined terms used herein shall have the same meaning as set forth in the Agreement.

     All information must be filled in for this form to be valid.

SECONDED EMPLOYEE SCHEDULE

	 	 	 	 	 
	Name of Seconded Employee	 	Title and Job Function	 	Start Date
	 
	 	 
	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 

	 	 	 	 	 
	ANADARKO PETROLEUM CORPORATION	 	WESTERN GAS HOLDINGS, LLC
	 	 	 	 	 
	By: 	 
	 	By: 	 

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

 

 

EXHIBIT B TO THE

SERVICES AND SECONDMENT AGREEMENT

     This Exhibit B is attached the Services and Secondment Agreement (the “Agreement”)
dated [                    ], [     ] by and between Anadarko Petroleum Corporation and Western Gas
Holdings, LLC. All defined terms used herein shall have the same meaning as set forth in the
Agreement.

ADDITION/REMOVAL/CHANGE OF RESPONSIBILITY

OF SECONDED EMPLOYEE

     In accordance with Section 1.1 of the Secondment Agreement, the Parties hereto wish to add,
remove, or change the responsibilities of the following Seconded Employees.

     All information must be filled in for this form to be valid.

	 	 	 	 	 	 	 
	Name of Seconded Employee	 	Title and Job Function	 	Start Date	 	End Date
	 

	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 

	 	 	 	 	 
	ANADARKO PETROLEUM CORPORATION	 	WESTERN GAS HOLDINGS, LLC
	 	 	 	 	 
	By: 	 
	 	By: 	 

	Name: 	 	 	Name: 	 
	Title: 	 	 	Title: 	[President]

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00140-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00140-of-00352.parquet"}]]