Document:

exv10w2

 

Exhibit 10.2

AGREEMENT

     This Agreement (this “Agreement”) is made and entered into by and between Global Industries,
Ltd., a Louisiana corporation (hereinafter referred to as the “Company”), and William J. Doré, an
individual (hereinafter referred to as
“Mr. Doré”), effective as of September 18, 2006 (the
“Effective Date”).

W I T N E S S E T H:

     WHEREAS, Mr. Doré is the founder of the Company and has been employed by the Company for over
30 years, currently as its Chief Executive Officer and Chairman of the Board of Directors; and

     WHEREAS, Mr. Doré has expressed his intention to retire as Chief Executive Officer on the date
on which the new Chief Executive Officer (the “New CEO”) assumes office and to retire as executive
Chairman of the Board and terminate his employment on the earlier of the date of the Company’s 2007
Annual Stockholders Meeting and June 1, 2007 (the “Retirement Date”); and

     WHEREAS, in consideration of the many years of valuable service provided to the Company by Mr.
Doré, his agreement to assist in facilitating a smooth transition of his duties to his successor
and to provide the Company with covenants against competition, solicitation of employees and
disclosure of confidential information, both parties desire to enter into an agreement that will
provide for the compensation and other benefits to which Mr. Doré will be entitled by reason of and
after his retirement;

     NOW, THEREFORE, in consideration of the mutual promises contained herein and for other good
and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the
Company and Mr. Doré agree as follows:

Section 1. Executive Period.

     (a) Position. Through the Retirement Date (the “Executive Period”), Mr. Doré shall remain an
employee at will of the Company (i) as Chairman of the Board and Chief Executive Officer until the
effective time of his resignation as Chief Executive Officer as provided in Section 3 and (ii) as
executive Chairman of the Board until the Retirement Date. During the period commencing on the
effective time of his resignation as Chief Executive Officer as provided in Section 3 and ending on
the Retirement Date, Mr. Doré shall perform only those duties as are customary for a Chairman of
the Board and shall devote the necessary business time and attention to the business and affairs of
the Company and use his best efforts to promote the business and welfare of the Company and its
subsidiaries or affiliates, including assisting the Board of Directors of the Company (the “Board”)
in the transition of leadership from Mr. Doré to the New CEO as requested from time to time by the
Board or by the New CEO.

     (b) Compensation. During the Executive Period and for so long as he remains an employee, Mr.
Doré shall (i) continue to receive his salary at the annual rate in effect on the Effective Date,
(ii) continue to be provided the perquisites being provided to Mr. Doré as of the Effective Date,
(iii) be entitled to the rights, payments and benefits under existing contracts,

 

 

awards, option agreements and restricted stock and performance awards issued to Mr. Doré prior
to the Effective Date, including payment of any annual cash bonus for the year ending December 31,
2006 earned under the Company’s Management Incentive Plan (without any adjustment or pro-ration due
to Mr. Doré’s ceasing to be Chief Executive Officer) and (iv) continue to participate in the
employee benefit plans and policies in which he participates as of the Effective Date; provided,
however, that after the Effective Date, Mr. Doré shall receive no further long-term or incentive
compensation awards, and in particular shall not be awarded any further grants under the Company’s
2005 Equity Incentive Plan or any other equity compensation plan. During the Executive Period, Mr.
Doré shall be an employee of the Company for all purposes. Effective as of the Retirement Date,

     (i) the Company will pay or provide to Mr. Doré (A) Mr. Doré’s base salary through the
Retirement Date to the extent not previously paid; (B) any incentive compensation due Mr.
Doré if, under the terms of the relevant incentive compensation arrangement, such incentive
compensation was due and payable to Mr. Doré on or before the Retirement Date; (C) those
benefits that are provided by retirement and benefit plans and programs adopted and approved
by the Company for Mr. Doré that are earned and vested on or before the Retirement Date; (D)
any rights Mr. Doré or his survivors may have under any grants of options to purchase the
Company’s Common Stock or under any grants of restricted stock or performance units of the
Company; and (E) medical and similar employee welfare benefits the continuation of which is
required by applicable law or as provided by the applicable benefit plan (together, the
benefits and payments described in clause (A) through (E) are herein referred to as the
“Earned Benefits”); and

     (ii) each option to acquire Common Stock of the Company held by Mr. Doré immediately
prior to the Retirement Date the vesting of which is dependent solely on the passage of time
and not the performance of Mr. Doré or the Company shall (A) if unvested as of such date,
vest and become fully and immediately vested and exercisable, and (B) remain exercisable
through the earlier of the end of the Consulting Period hereunder (or, if Mr. Doré dies
during the Consulting Period, the first anniversary of his death) and the tenth anniversary
of the original grant date of such option, and

     (iii) all forfeiture restrictions on any restricted Common Stock of the Company granted
to Mr. Doré prior to the Retirement Date the lapse of the forfeiture restrictions on which
are dependent solely on the passage of time and not the performance of Mr. Doré or the
Company shall lapse as of the Retirement Date and such Common Stock shall be freely
transferable (subject to applicable securities laws); and

     (iv) each of the Designated Performance Unit Awards (as defined below) that remains
outstanding immediately prior to the Retirement Date shall continue unchanged and vest (if
at all) in accordance with its terms (i.e., pro-rated based on the portion of the
performance period applicable to such awards that occurs prior to the Retirement Date) at
the end of the relevant performance period; and

     (v) each of the Designated Restricted Stock Awards (as defined below) that remains
outstanding immediately prior to the Retirement Date shall continue unchanged and the
forfeiture restrictions on any restricted stock thereunder shall lapse (if at all) in

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accordance with its terms at the end of the relevant performance period except that the
number of shares on which the forfeiture restrictions shall lapse shall not be pro rated
based on the portion of the performance period applicable to such award that occurs prior to
the Retirement Date but instead will be treated as if Mr. Doré remained an employee during
the entire performance period.

For purposes of this Agreement, “Designated Performance Units” and Designated Restricted Stock
Awards” means the performance unit awards and performance vesting restricted stock awards,
respectively, set forth on Exhibit A hereto. Upon the payment or provision of Earned
Benefits, the Company shall have no further obligations to Mr. Doré for any salary, bonuses,
benefit programs, or other compensation of any type for services rendered by Mr. Doré to the
Company prior to the Retirement Date.

Section 2. Consulting Period.

          (a) Transition to Contractor. As of the Retirement Date, the relationship presently existing
between the Company and Mr. Doré shall change from an at will employment relationship to a
contractor relationship. The Company and Mr. Doré agree that Mr. Doré’s ability to earn the
amounts provided for in this Section 2 and to receive the benefits described in this Section 2 are
in consideration of (a) the covenants and agreements being made by Mr. Doré as set forth in this
Agreement (including the covenants set forth in Section 5 and 6) and (b) the readiness and
performance of the Consulting Services (as defined herein) to be performed by Mr. Doré hereunder.
From and after the Retirement Date, the Company’s obligations to pay compensation to Mr. Doré for
services rendered shall be governed exclusively by this Agreement. During the Consulting Period,
Mr. Doré shall not be considered an employee of the Company for any purpose, and accordingly shall
not participate in the employee benefit plans of the Company except to the extent former or retired
employees are entitled to do so under the applicable terms of such plans.

          (b) Extent of Consulting Services; Duties of Consultant. During the period from the
Retirement Date through April 30, 2010 (the “Consulting Period”), Mr. Doré agrees to serve as a
consultant of the Company in accordance with the provisions of this Agreement. During the
Consulting Period, Mr. Doré shall make himself available to the Company as requested by the
Company’s Board or Chief Executive Officer. When so requested, Mr. Doré will consult with officers
and employees of the Company, and others, from time to time at mutually agreeable times and places
pertaining to the business of the Company (“Consulting Services”). The particular amount of time
Mr. Doré may spend in fulfilling his Consulting Services obligations may vary from day to day or
week to week, but Mr. Doré shall use his reasonable efforts to be prepared and available at such
times as are reasonably requested by the Company, which shall include travel time to and from the
city where he resides and the location where the Consulting Services take place. When Mr. Doré is
requested by the Company to travel from the city of his permanent residence to provide Consulting
Services, Mr. Doré shall be reimbursed for reasonable and customary travel expenses in accordance
with the Company’s policies; provided, however, that (a) Mr. Doré shall be reimbursed for first
class air travel and for travel within the United States using private or charter aircraft (other
than the Company’s aircraft), the Company will reimburse him the amount of a first class ticket on
a commercial flight and (b) for international travel, if the Company determines it is beneficial to
its business

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purpose for Mr. Doré’s spouse to accompany him then Mr. Doré shall also be reimbursed for the
reasonable and customary travel expenses of his spouse. While retained as a consultant by the
Company, Mr. Doré shall have the right to devote his business day and working efforts to such other
business, professional, public service, or community pursuits as do not interfere with the
rendering of Consulting Services by Mr. Doré hereunder.

          (c) Fees. During the Consulting Period, subject to and in consideration of Mr. Doré’s
compliance with the covenants set forth in Section 5 and 6, the Company shall pay or provide to Mr.
Doré the following: (i) a monthly consulting fee, payable in arrears, at an annual rate equal to
$400,000, the first monthly payment shall be due and payable on the first business day of the month
following the month in which the Retirement Date occurs (and such payment shall be for the period
from the Retirement Date through the last day of the month in which the Retirement Date occurs) and
subsequent monthly payments shall be made on the first business day of the succeeding 35 months,
(ii) an office fee, payable annually in advance, at an annual rate of $175,000 to cover office
space and related services for Mr. Doré (the first annual payment of $175,000 shall be due and
payable on the first business day following the date for his ceasing to maintain an office in the
Company’s offices mutually agreed between Mr. Doré and the Company, subsequent payments of $175,000
shall be made on the second and third anniversary of such date and a final payment (equal to
$175,000 multiplied by a fraction, the numerator of which shall be the number of months remaining
between the date payment is due and April 30, 2010 and the denominator of which is 12) shall be
paid on the fourth anniversary of such date), and (iii) provided that Mr. Doré has timely elected
under the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”) to continue
the medical benefits (the “Medical Benefits”) for Mr. Doré (and his spouse if she was covered as of
the Retirement Date through Mr. Doré (a “Covered Dependent”)) under the Company’s group health plan
as in effect on the Retirement Date, reimbursement monthly of (x) the amount of the COBRA premium
paid by Mr. Doré less (y) the cost or expense then payable by senior executives of the Company for
Medical Benefits and the Company further agrees to continue Mr. Dore’s and his Covered Dependent’s
(if applicable) eligibility for Medical Benefits under the Company’s group health plan as in effect
from time to time after the COBRA coverage expires and until the end of the Consulting Period
provided that Mr. Doré continues to pay to the Company monthly the amount specified in clause (y);
and provided further, that, if Mr. Doré becomes re-employed with another employer during the
Consulting Period and is eligible to receive such benefits under another employer provided plan,
the Medical Benefits shall be secondary to those provided under such other plan during such
applicable period of eligibility.

          (d) Independent Contractor Relationship. Throughout the Consulting Period, Mr. Doré shall be
an independent contractor with the full power and authority to select the means, methods and manner
of performing the Consulting Services hereunder; provided, however, that Mr. Doré shall secure the
approval of the Company as to the means, methods, and manner in which the Company and its
affiliates are represented. Mr. Doré will in no way be considered to be an agent, employee, or
servant of the Company. Mr. Doré shall have no authority to bind the Company in any capacity for
any purpose. It is not the purpose or intention of this Agreement or the parties to create, and
the same shall not be construed as creating, any partnership, partnership relation, joint venture,
agency, or employment relationship after the Retirement Date.

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Section 3. Resignations.

     Mr. Doré has signed and provided to the Company a resignation letter, effective as of the date
on which the New CEO commences his employment, resigning as Chief Executive Officer of the Company
(but not as an employee or director) and from all other positions Mr. Doré then holds as an
officer, director or otherwise with any of the Company’s subsidiaries or affiliates. Mr. Doré has
informed the Board of the Company that he will not stand for re-election as Chairman or member of
the Board at the Company’s 2007 Annual Stockholders Meeting and therefore the Company and Mr. Doré
agree that he will not be requested to (or stand for) re-election at the Company’s 2007 Annual
Stockholders Meeting. Mr. Doré agrees to sign any additional documentation to ratify and evidence
such resignation as may be reasonably requested from time to time by the Company. On the
Retirement Date, Mr. Doré shall cease to be an employee of the Company for all purposes.

Section 4. Termination of Consulting Relationship.

          (a) If Mr. Doré dies after the Retirement Date but before April 30, 2010 (and has not prior to
such death materially breached any of his obligations under this Agreement which breach was not
cured prior to his death), (i) the Company shall (A) pay Mr. Doré’s estate any unpaid fees under
Section 2(c) through the date of death on the dates such fees would otherwise be due, (B) provide
the Medical Benefits to the Covered Dependents through April 30, 2010 (or, if earlier with respect
to any such Covered Dependent, the date of such Covered Dependent’s death) in accordance with
Section 2, and (C) have no further obligations under this Agreement, except to provide Mr. Doré’s
estate and family with any Earned Benefits to which they may be entitled, and (ii) all stock
options, restricted stock, Designated Performance Units and Designated Restricted Stock Awards
shall continue to be treated as set forth in Section 1(b).

          (b) If prior to the Retirement Date, Mr. Doré’s employment is terminated by the Company for
Cause or Mr. Doré voluntarily terminates his employment with the Company without consent of the
Board, (i) the Company shall have no further obligations under this Agreement except to pay to Mr.
Doré any Earned Benefits through the date of such termination, (ii) all stock options shall be
governed by the applicable provisions of the applicable award agreements thereunder, and (iii) Mr.
Doré shall remain bound by the covenants set forth in Section 5 and 6 (treating the Non-Competition
Period as commencing on the date of such termination of employment). For purposes of this Section
4(b) “Cause” shall mean Mr. Doré (A) has engaged in gross negligence or willful misconduct, (B) has
willfully refused without proper legal reason to perform the duties and responsibilities assigned
to him by the Board (other than as a result of disability), (C) has materially breached any
provision of this Agreement or any corporate policy, including substance abuse policies, ethics
policies or any code of conduct maintained and established by the Company in writing that is
applicable to the Company’s executives and such breach, if correctable, remains uncorrected for 14
days following receipt by Mr. Doré of written notice of such breach, (D) has willfully engaged in
conduct that he knows or should have known is materially injurious to the Company or any of its
affiliates, including fraud or misappropriation, or (E) has been convicted of a misdemeanor
involving moral turpitude or a felony; provided, however, that Mr. Doré’s employment shall only be
deemed terminated for “Cause” pursuant to clauses (A) through (D) of this Section 4(b) if: (x) he
is given written notice of the alleged Cause and the facts supporting such allegation, and (y) an
opportunity to appear

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before the Board to refute such allegation, at which he may be accompanied by counsel; and (C)
following such opportunity the Board by of vote of two-thirds of its membership determines that
termination for Cause is warranted.

Section 5. Obligations; Confidentiality; Nondisparagement.

          (a) Obligations. Mr. Doré shall not, during the existence of the consulting relationship, use
or appropriate, directly or indirectly, for his own benefit or for the benefit of another, any
business opportunities concerning the Company’s business and shall make full disclosure of all such
business opportunities to the Company. During the Consulting Period, Mr. Doré shall not engage,
directly or indirectly, in any business, investment, or activity that materially interferes with
Mr. Doré’s performance of his duties hereunder or is contrary in any material respect to the
interests of the Company or affiliates. Mr. Doré agrees that he shall not knowingly become
involved in such a conflict of interest with the Company or its affiliates, or upon discovery
thereof, allow such a conflict to continue. Moreover, Mr. Doré agrees that he shall disclose to or
discuss with the Board any facts or circumstances which might involve such a conflict of interest.

          (b) Intellectual Property and Proprietary Information. All information, ideas, concepts,
improvements, discoveries, and inventions, whether patentable or not, which are conceived, made,
developed, or acquired by Mr. Doré, individually or in conjunction with others, during Mr. Doré’s
employment by the Company prior to the Retirement Date (whether during business hours or otherwise
and whether on the Company’s premises or otherwise) or in future during Mr. Doré’s consulting
relationship with the Company, which relate to the Company’s business, products, or services
(including all such information relating to corporate opportunities, research, financial and sales
data, pricing terms, evaluations, opinions, interpretations, acquisition prospects, the identity of
customers or their requirements, the identity of key contacts within the customer’s organizations,
or marketing and merchandising techniques) are and shall be the sole and exclusive property of the
Company and shall be disclosed to the Company. Moreover, all documents, drawings, memoranda,
notes, records, files, correspondence, manuals, models, specifications, computer programs, E-mail,
voice mail, electronic databases, maps, and all other writings or materials of any type
(“Documents”) embodying any of such information, ideas, concepts, improvements, discoveries, and
inventions are and shall be the sole and exclusive property of the Company. If Mr. Doré created
during his employment or creates during his consulting relationship with the Company any work of
authorship fixed in any tangible medium of expression which is the subject matter of copyright
(such as videotapes, written presentations, computer programs, E-mail, voice mail, electronic
databases, drawings, maps, architectural renditions, models, manuals, brochures, or the like)
relating to (but only to the extent such work so relates) the Company’s business, products, or
services, whether such work is created solely by Mr. Doré or jointly with others (whether during
business hours or otherwise and whether on the Company’s premises or otherwise), the Company shall
be deemed the author of such work if the work is prepared by Mr. Doré in the scope of Mr. Doré’s
employment or consulting relationship; or, if the work is not prepared by Mr. Doré within the scope
of Mr. Doré’s employment or consulting relationship but is specially ordered by the Company, then
the work shall be considered to be work made for hire and the Company shall be the author of the
work. If such work is neither prepared by Mr. Doré within the scope of Mr. Doré’s employment or
consulting relationship nor a work specially ordered that is deemed to

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be a work made for hire, then Mr. Doré hereby agrees to assign, and by these presents does
assign, to the Company all of Mr. Doré’s worldwide right, title, and interest in and to such work
and all rights of copyright therein. Both during the period of Mr. Doré’s employment by the
Company and thereafter (in the latter case, subject to reimbursement of all reasonable expenses
incurred in doing so), Mr. Doré shall assist the Company and its nominees, at any time, in the
protection of the Company’s worldwide right, title, and interest in and to information, ideas,
concepts, improvements, discoveries, and inventions, and its copyrighted works, including the
execution of all formal assignment documents requested by the Company or its nominees and the
execution of all lawful oaths and applications for patents and registration of copyright in the
United States and foreign countries. To the extent Mr. Doré’s assistance is required by the
Company under this Section 5(b) after the Consulting Period, the Company shall reimburse Mr. Doré
for his time required at a rate per diem mutually agreed, plus reimbursement of reasonable travel
and lodging expenses.

          (c) Nondisclosure. Mr. Doré acknowledges that the Company’s business is highly competitive
and that the Company’s methods, strategies, books, records and documents, the Company’s technical
information concerning its products, prospects, equipment, services and processes, procurement
procedures and pricing techniques, and the names of and other information (such as credit and
financial data) concerning the Company’s customers and business affiliates, all comprise
confidential business information and trade secrets of the Company which are valuable, special, and
unique assets of the Company which the Company uses in its business to obtain a competitive
advantage over the Company’s competitors which do not know or use this information. Mr. Doré
further acknowledges that protection of the Company’s confidential business information and trade
secrets against unauthorized disclosure and use is of critical importance to the Company in
maintaining its competitive position. Accordingly, Mr. Doré agrees to protect and safeguard the
Company’s and its affiliates’ information, trade secrets, ideas, concepts, improvements,
discoveries, and inventions and any proprietary, confidential and other information relating to the
Company or its affiliates or its or their business (collectively, “Confidential Information”) and,
except as may be required by the Company, Mr. Doré will not, either during his employment by the
Company or thereafter, directly or indirectly, use for his own benefit or for the benefit of
another, or disclose to another, any Confidential Information, except (i) with the prior written
consent of the Company; (ii) in the course of the proper performance of Mr. Doré’s duties under
this Agreement; (iii) for information that becomes generally available to the public other than as
a result of the unauthorized disclosure by Mr. Doré; (iv) for information that becomes available to
Mr. Doré on a nonconfidential basis from a source other than the Company or its affiliates who is
not bound by a duty of confidentiality to the Company; or (v) as may be required by any applicable
law, rule, regulation or order. As a result of Mr. Doré’s employment by the Company as an employee
or engagement as a consultant, Mr. Doré may from time to time have access to, or knowledge of,
confidential business information or trade secrets of third parties, such as customers, suppliers,
partners and joint venturers of the Company and its affiliates. Mr. Doré agrees to preserve and
protect the confidentiality of such third party confidential information and trade secrets to the
same extent, and on the same basis, as the Company’s Confidential Information.

          (d) Return of Intellectual Property and Company Information. Upon termination of his
employment with the Company for any reason, Mr. Doré will immediately deliver to the Company all
property of the Company or any of its affiliates including all

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Documents in Mr. Doré’s possession or under his control (including all copies thereof) which
embody any of the intellectual property and proprietary information described in Section 5(a) or
any Confidential Information. All payments and benefits due or to be paid to Mr. Doré shall be
contingent upon Mr. Doré complying with this Section 5(d) and providing a written certification to
the Company to that effect.

          (e) Nondisparagement. Mr. Doré shall refrain, both during his employment and thereafter, from
making any disparaging oral or written statements about the Company, any of its affiliates or any
of such entities’ directors, executive officers or employees provided that this provision shall not
restrict Mr. Doré’s ability to review other employees’ performance while he is employed by the
Company, to provide information in connection with any internal investigation by the Board, the
Company or its internal auditors, or to respond to inquiries from governmental entities. The
Company shall refrain, and shall use its reasonable efforts to cause its directors and officers to
refrain, both during Mr. Doré’s employment and thereafter, from making publicly any disparaging
oral or written statements about Mr. Doré, provided that this sentence shall not restrict the
ability of the Board, the Company or its internal auditors to conduct reviews of Mr. Doré’s
performance as an employee or under this Agreement, to provide information in connection with any
internal investigation, to respond to inquiries for references or from governmental entities or to
the extent required to make such statements to comply with applicable law.

Section 6. Non-Competition; Non-Solicitation.

          (a) Mr. Doré agrees that, effective as of the Effective Date and for the Non-Competition
Period (as defined below), Mr. Doré shall not, without the prior written consent of the Company,
directly or indirectly, for Mr. Doré or others in any geographic area (including any parish of the
State of Louisiana set forth on Exhibit B hereto) or market where the Company or any of its
affiliates are conducting any material business as of the Effective Date or the Retirement Date or
have during the twelve months previous to the Retirement Date conducted material business:

          (i) engage in any business similar to or competitive with the business conducted by the
Company or its affiliates, including the offshore and shallow water pipeline and related
construction, diving, installation and salvage business and related operations, or

          (ii) become an employee of or own any interest in (whether as an owner, shareholder,
joint venturer, partner or otherwise) any Competitor (as defined herein), or

          (iii) render services to, consult with, or otherwise assist any Competitor.

provided, however, that nothing herein shall prohibit Mr. Doré from holding or making passive
investments in corporations, associations or other entities whose securities are traded in a
generally recognized market provided that Mr. Doré’s interest, together with those of his

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affiliates and family members does not exceed 1% of the outstanding shares or interests in such
corporation, association or entity.

          (b) These non-competition obligations shall apply during the period that Mr. Doré is employed
by the Company and extend until the earlier of (i) 2 years after the last day that Mr. Doré
provides Consulting Services under this Agreement and (ii) April 30, 2010 (the “Non-Competition
Period”). The Non-Competition Period shall be extended by the duration of any violation of
provisions of this Section 6. For purposes of this Section 6, the term “Competitor” shall mean
Technip S.A., Heerema S.A., Acergy S.A. (formerly Stolt Offshore S.A.), Allseas Marine Contractors
S.A., J. Ray McDermott S.A., Saipem S.p.a., Helix Energy Solutions Group, Inc. (formerly Cal Dive
International, Inc.), Heerema S.A. , Horizon Offshore, Inc. and Offshore Specialties Fabricators,
Inc, and Wilbros Brothers Inc., and any successor to any material portion of their offshore
construction business, and any corporation, association or entity that materially engages, directly
or indirectly, in any business similar to or competitive with the business conducted by the Company
or its affiliates, including the offshore and shallow water pipeline and related construction,
diving, installation and salvage businesses and related operations.

          (c) In addition to the restrictions set forth in Section 6(a), Mr. Doré agrees that, during
the Non-Competition Period, Mr. Doré will not, either directly or indirectly to the extent not
otherwise publicly known, (i) make known to any person, corporation, association or entity that is
in competition with the business of the Company or any of its affiliates the names and addresses
of, or any other information pertaining to, any of the suppliers or customers of the Company or any
of its affiliates, or any potential customers of the Company or any of its affiliates upon whom the
Company or any of its affiliates has called in the preceding 12 months, (ii) call on or solicit, or
assist others in calling on or soliciting, any of the suppliers or customers of the Company or any
of its affiliates, for the purpose of taking away or attempting to take away business from the
Company, whether for Mr. Doré or for any other person, corporation, association or entity or (iii)
on his own account or for any other person, corporation, association, or other entity solicit any
employee of the Company or any of its affiliates (other than Melissa Fontenot) to leave such
employment or assist any other person, corporation, association or other entity in such
solicitation by providing information with respect to any employee including the skills, knowledge,
experience or compensation of employees of the Company or any of its affiliates except that clause
(iii) shall not prohibit the hiring of any such employee (A) who responds to any public advertising
for employment without any other direct or indirect solicitation or (B) whose employment by the
Company or its affiliates has been terminated prior to the commencement of discussions with such
employee.

          (d) Mr. Doré understands that the restrictions set forth in Section 5 and this Section 6 may
limit Mr. Doré’s ability to engage in certain businesses in certain geographic areas or markets
during the period provided for above, but acknowledges that Mr. Doré will receive sufficiently high
remuneration and other benefits under this Agreement to justify such restriction.

          (e) Whenever possible, each provision of the covenant not to compete shall be interpreted in
such a manner as to be effective and valid under applicable law, but if any provision of this
covenant not to compete shall be prohibited by or invalid under applicable law in any particular
jurisdiction whether it be a municipality, county, parish, state or country, such provision shall
be ineffective only to the extent of such prohibition or invalidity and only in such

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jurisdiction, without invalidating the remaining provisions of this covenant not to compete.
If any provision of this covenant not to compete shall, for any reason, be judged by any court of
competent jurisdiction to be invalid or unenforceable in any particular jurisdiction whether it be
a municipality, county, parish, state or country, such judgment shall not affect, impair or
invalidate the remainder of this covenant not to compete but shall be confined in its operation to
the particular jurisdiction as to provision of this covenant not to compete directly involved in
the controversy in which such judgment shall have been rendered. In the event that the provisions
of this covenant not to compete should ever be deemed to exceed the time or geographic limitations
permitted by applicable laws in any particular jurisdiction whether it be a municipality, county,
parish, state or country, then such provision shall be reformed for purposes of such particular
jurisdiction to the maximum time or geographic limitations permitted by applicable law.

Section 7. Arbitration; Expenses of Enforcement.

     Except as otherwise specifically provided in this Agreement, the Company and Mr. Doré agree to
submit exclusively to final and binding arbitration any and all disputes or disagreements relating
to or concerning the interpretation, performance or subject matter of this Agreement in accordance
with the National Rules for the Resolution of Employment Disputes of the American Arbitration
Association (“AAA”) using a single arbitrator. The arbitration will take place in Houston, Texas.
Mr. Doré and the Company agree that the decision of the arbitrators will be final and binding on
both parties. Arbitration shall be commenced by either party filing a demand for arbitration with
the AAA within 60 days after such dispute has arisen. The prevailing party in such an arbitration
proceeding shall be entitled to recover from the non-prevailing party all reasonable out-of-pocket
costs and disbursements incurred by such party in connection therewith (including reasonable
attorneys’ fees), as well as any and all charges that may be made for the cost of the arbitration
and the fees of the arbitrator; provided, however, that after a Change in Control and upon demand
by Mr. Doré made to the Company, the Company shall reimburse Mr. Doré for the reasonable
out-of-pocket expenses (including attorneys’ fees) incurred by Mr. Doré after the Change in Control
in enforcing or seeking to enforce the payment of any amount or other benefit to which Mr. Doré
shall have become entitled under this Agreement as a result of the termination of Mr. Doré’s
employment after the Change in Control regardless of the outcome of such enforcement effort. Any
court having jurisdiction may enter a judgment upon the award rendered by the arbitrator. In the
event of litigation to enforce an arbitration award in connection with or concerning the subject
matter of this Agreement, the prevailing party shall be entitled to recover from the non-prevailing
party all reasonable out-of-pocket costs and disbursements incurred by such party in connection
therewith (including reasonable attorneys’ fees). Notwithstanding the provisions of this Section
7, the Company may, if it so chooses, bring an action in any court of competent jurisdiction for
injunctive relief to enforce Mr. Doré’s obligations under Sections 3, 5 or 6 hereof.

Section 8. Representations and Warranties by Mr. Doré.

          (a) Mr. Doré represents and warrants to the Company that the execution and delivery by Mr.
Doré of this Agreement do not, and the performance by Mr. Doré of Mr. Doré’s obligations hereunder
will not, with or without the giving of notice or the passage of time, or both (i) violate any
judgment, writ, injunction, or order of any court, arbitrator, or governmental agency applicable to
Mr. Doré; or (ii) conflict with, result in the breach of any provisions of, or

10

 

constitute a default under, any agreement to which Mr. Doré is a party or by which Mr. Doré is
or may be bound.

          (b) Mr. Doré acknowledges and represents that (i) he has had sufficient time and opportunity
to have this Agreement reviewed by legal counsel of his choosing and to be advised by such counsel
as to his rights and obligations hereunder, (ii) he has read and fully understands the terms of
this Agreement and voluntarily accepts them, and (iii) he is not relying on any statements or
representations of the Company or any of its representatives regarding the tax effects or other
legal implications of his execution of this Agreement or his receipt of payments or other benefits
hereunder.

Section 9. Successors; Binding Agreement.

          (a) This Agreement is personal to Mr. Doré and he may not assign or pledge any interest herein
or delegate or assign any obligation hereunder without the Company’s prior written consent. This
Agreement shall inure to the benefit of and be enforceable by Mr. Doré’s personal or legal
representatives, executors, administrators, heirs, and beneficiaries.

          (b) This Agreement shall inure to the benefit of and be binding upon the Company and its
successors.

          (c) In the event of a Change of Control, any successor (whether direct or indirect, by
purchase, merger, amalgamation, consolidation or otherwise) to all or substantially all of the
business and/or assets of the Company shall expressly assume and agree to perform this Agreement in
the same manner and to the same extent that the Company would be required to perform it if no such
succession had taken place. As used in this Agreement, the “Company” shall mean the Company as
hereinbefore defined and any successor to its business and/or assets as aforesaid which assumes and
agrees to perform this Agreement as provided for in this Section 9(c) or which otherwise becomes
bound by the terms and provisions of this Agreement by operation of law or otherwise.

Section 10. Miscellaneous.

          (a) Notices. All notices and other communications required or permitted hereunder will be in
writing and will be deemed to have been given (i) when delivered by hand (with written confirmation
of receipt), (ii) when sent by facsimile (with written confirmation of receipt) or by email,
provided that a copy is mailed by registered mail, return receipt requested, or (iii) two business
days after being sent by a nationally recognized overnight delivery service (return receipt
requested), in each case to the appropriate addresses, facsimile numbers or email addresses set
forth below (or to such other addresses, facsimile numbers or email addresses as a party may
designate by notice to the other party):

11

 

If to the Company, to:

Board of Directors

Global Industries, Ltd.

11490 Westheimer – Suite 400

Houston, Texas 77077

Attention: General Counsel

Fax No. 281-529-7747

Email: russr@globind.com

If to Mr. Doré, to:

2007 Oliver Street

Lake Charles, Louisiana 70607

          (b) Taxes and Payments. All salary, bonus and other payments made or benefits provided by the
Company to Mr. Doré as a result of his being an employee of the Company will be subject to (i) such
payroll and withholding deductions as may be required by applicable law and (ii) other deductions
applied generally for insurance and other employee benefit plans in which Mr. Doré participates.
Mr. Doré shall pay all social security, federal income taxes, unemployment insurance, worker’s
compensation insurance, pensions, annuities or other liabilities or taxes incurred by or on behalf
or for the benefit of Mr. Doré arising out of the performance of his obligations under this
Agreement.

          (c) Entire Agreement; Modification. This Agreement (including the exhibit attached hereto and
the forms of award agreements referenced herein and the plans under which such awards were granted)
supersedes, replaces and merges all previous agreements, term sheets, and discussions relating to
the same or similar subject matters between Mr. Doré and the Company and constitutes the entire
agreement between Mr. Doré and the Company with respect to the subject matter of this Agreement.
For the avoidance of doubt, except as expressly provided herein this Agreement shall not affect the
rights or obligations of the Company or Mr. Doré under existing contracts, compensatory awards and
option agreements or that certain Registration Rights Agreement dated February 1993. This
Agreement may not be modified on behalf of the Company in any respect by any verbal statement,
representation or agreement made by any employee, officer, director or representative of the
Company or by any written agreement unless signed by a director or officer of the Company who is
expressly authorized by the Board to execute such document.

          (d) Severability. If any provision of this Agreement or application thereof to anyone or
under any circumstances should be determined to be invalid or unenforceable, such invalidity or
unenforceability will not affect any other provisions or applications of this Agreement which can
be given effect without the invalid or unenforceable provision or application. In addition, if any
provision of this Agreement is held by an arbitration panel or a court of competent jurisdiction to
be invalid, unenforceable, unreasonable, unduly restrictive or overly broad, the parties intend
that such arbitration panel or court modify said provision to the

12

 

extent necessary so as to render it valid, enforceable, reasonable and not unduly restrictive
or overly broad.

          (e) Waiver. Neither the failure nor any delay by either party in exercising any right, power,
or privilege under this Agreement will operate as a waiver of such right, power, or privilege, and
no single or partial exercise of any such right, power, or privilege will preclude any other or
further exercise of such right, power, or privilege or the exercise of any other right, power, or
privilege.

          (f) Reimbursement of Attorneys’ Fees. The Company shall pay up to $40,000.00 for fees and
expenses of legal counsel for Mr. Doré’s in connection with the review and execution of this
Agreement.

          (g) Construction. The parties agree that no provision of this Agreement shall be interpreted
or construed against any party solely because that party or its legal counsel drafted such
provision. The headings in this Agreement are provided for convenience only and will not affect
its construction or interpretation. All references to “Section” or “Sections” refer to the
corresponding Section or Sections of this Agreement unless otherwise specified. Unless otherwise
expressly provided, the word “including” does not limit the preceding words or terms. All
references in this Agreement to dollars or “$” mean lawful money of the Unites States.

          (h) Counterparts. This Agreement may be executed in one or more counterparts, each of which
will be deemed to be an original copy of this Agreement and all of which, when taken together, will
be deemed to constitute one and the same agreement.

          (i) Governing Law; Jurisdiction. The internal laws of the State of Louisiana without
application of any conflicts of laws or principles will govern the interpretation, validity,
enforcement and effect of this Agreement without regard to the place of execution or the place for
performance thereof. THE PARTIES HERETO HEREBY WAIVE A JURY TRIAL IN ANY DISPUTE OR LITIGATION
WITH RESPECT TO THIS AGREEMENT. THE PARTIES HERETO IRREVOCABLY SUBMIT TO THE JURISDICTION OF THE
COURTS OF THE STATE OF LOUISIANA AND THE FEDERAL COURTS OF THE UNITED STATES OF AMERICA LOCATED IN
THE STATE OF LOUISIANA IN CONNECTION WITH ANY DISPUTE THAT ARISES IN RESPECT OF THE INTERPRETATION
AND ENFORCEMENT OF THE PROVISIONS OF THIS AGREEMENT, AND HEREBY WAIVE, AND AGREE NOT TO ASSERT, AS
A DEFENSE IN ANY ACTION, SUIT OR PROCEEDING FOR INTERPRETATION OR ENFORCEMENT HEREOF THAT IT IS NOT
SUBJECT THERETO OR THAT SUCH ACTION, SUIT OR PROCEEDING MAY NOT BE BROUGHT OR IS NOT MAINTAINABLE
IN SAID COURTS OR THAT VENUE THEREOF MAY NOT BE APPROPRIATE OR THAT THIS AGREEMENT OR ANY SUCH
DOCUMENT MAY NOT BE ENFORCED IN OR BY SUCH COURTS. THE PARTIES HEREBY CONSENT TO AND GRANT ANY
SUCH COURT JURISDICTION OVER THE PERSON OF SUCH PARTIES AND OVER THE SUBJECT MATTER OF SUCH DISPUTE
AND AGREE THAT MAILING OF PROCESS OR OTHER PAPERS IN CONNECTION WITH SUCH ACTION, SUIT OR
PROCEEDING IN THE MANNER

13

 

PROVIDED IN SECTION 10(a) OR IN SUCH OTHER MANNER AS MAY BE PERMITTED BY LAW SHALL BE VALID
AND SUFFICIENT SERVICE THEREOF.

          (j) Specific Performance; Remedies. Mr. Doré acknowledges that money damages would not be
sufficient remedy for any breach of the covenants and provisions of Sections 3, 5 and 6 by Mr.
Doré, and the Company shall be entitled to enforce the provisions of Sections 3, 5 and 6 by
terminating any payments then owing to Mr. Doré under this Agreement (provided, that the Company
shall not terminate any Medical Benefits to be provided under this Agreement unless and until there
is a final judgment or ruling that Mr. Doré has willfully failed to perform in any material
respects any of his obligations under this Agreement). Notwithstanding the provisions of Section
7, by seeking specific performance and injunctive relief in courts of applicable jurisdiction as
remedies for such breach or any threatened breach. Such remedies shall not be deemed the exclusive
remedies for a breach of Sections 3, 5 or 6, but shall be in addition to all remedies available at
law or in equity to the Company, including the recovery of damages from Mr. Doré and his agents
involved in such breach, and remedies otherwise available to the Company.

[SIGNATURES ON FOLLOWING PAGE]

14

 

     IN WITNESS WHEREOF, the undersigned, intending to be legally bound, have executed this
Agreement as to be effective as of the Effective Date.

	 	 	 	 	 	 	 	 	 
	 	 	COMPANY:	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	GLOBAL INDUSTRIES, LTD.	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 /s/ Edgar G. Hotard	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Edgar G. Hotard	 	 
	 

	 	 	 	 	 	Chairman

Nominating and Governance Committee

of the Board of Directors	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	MR. DORÉ:	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 /s/ William J. Doré	 	 
	 	 	 	 	 
	 	 	       William J. Doré	 	 

15

 

EXHIBIT A

Designated Performance Units

Grant of 35,000 Units made on February 14, 2006

Designated Restricted Stock Awards

Grant of 250,000 Restricted Shares made on September 28, 2004

A-1

 

EXHIBIT B

Louisiana Parishes

Acadia Parish

Allen Parish

Ascension Parish

Assumption Parish

Avoyelles Parish

Beauregard Parish

Bienville Parish

Bossier Parish

Caddo Parish

Calcasieu Parish

Caldwell Parish

Cameron Parish

Catahoula Parish

Claiborne Parish

Concordia Parish

De Soto Parish

East Baton Rouge Parish

East Carroll Parish

East Feliciana Parish

Evangeline Parish

Franklin Parish

Grant Parish

Iberia Parish

Iberville Parish

Jackson Parish

Jefferson Parish

Jefferson Davis Parish

Lafayette Parish

Lafourche Parish

La Salle Parish

Lincoln Parish

Livingston Parish

Madison Parish

Morehouse Parish

Natchitoches Parish

Orleans Parish

Ouachita Parish

Plaquemines Parish

Pointe Coupee Parish

Rapides Parish

Red River Parish

Richland Parish

Sabine Parish

St. Bernard Parish

St. Charles Parish

St. Helena Parish

St. James Parish

St. John the Baptist Parish

St. Landry Parish

St. Martin Parish

St. Mary Parish

St. Tammany Parish

Tangipahoa Parish

Tensas Parish

Terrebonne Parish

Union Parish

Vermilion Parish

Vernon Parish

Washington Parish

Webster Parish

West Baton Rouge Parish

West Carroll Parish

West Feliciana Parish

Winn Parish

B-1exv4w2

 

Exhibit 4.2

Execution Copy

      

AMENDED AND RESTATED

AGREEMENT OF LIMITED PARTNERSHIP

OF

WILLIAMS PARTNERS L.P.

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	ARTICLE I

	 
	 	 	 	 	 	 
	DEFINITIONS
	 
	 	 	 	 	 	 
	Section 1.1

	 	Definitions
	 	 	1	 
	Section 1.2

	 	Construction
	 	 	21	 
	 
	 	 	 	 	 	 
	ARTICLE II

	 
	 	 	 	 	 	 
	ORGANIZATION

	 
	 	 	 	 	 	 
	Section 2.1

	 	Formation
	 	 	21	 
	Section 2.2

	 	Name
	 	 	21	 
	Section 2.3

	 	Registered Office; Registered Agent; Principal Office; Other Offices
	 	 	21	 
	Section 2.4

	 	Purpose and Business
	 	 	22	 
	Section 2.5

	 	Powers
	 	 	22	 
	Section 2.6

	 	Power of Attorney
	 	 	22	 
	Section 2.7

	 	Term
	 	 	23	 
	Section 2.8

	 	Title to Partnership Assets
	 	 	24	 
	 
	 	 	 	 	 	 
	ARTICLE III

	 
	 	 	 	 	 	 
	RIGHTS OF LIMITED PARTNERS

	 
	 	 	 	 	 	 
	Section 3.1

	 	Limitation of Liability
	 	 	24	 
	Section 3.2

	 	Management of Business
	 	 	24	 
	Section 3.3

	 	Outside Activities of the Limited Partners
	 	 	25	 
	Section 3.4

	 	Rights of Limited Partners
	 	 	25	 
	 
	 	 	 	 	 	 
	ARTICLE IV

	 
	 	 	 	 	 	 
	CERTIFICATES; RECORD HOLDERS; TRANSFER OF

	PARTNERSHIP INTERESTS; REDEMPTION OF PARTNERSHIP INTERESTS

	 
	 	 	 	 	 	 
	Section 4.1

	 	Certificates
	 	 	26	 
	Section 4.2

	 	Mutilated, Destroyed, Lost or Stolen Certificates
	 	 	26	 
	Section 4.3

	 	Record Holders
	 	 	27	 
	Section 4.4

	 	Transfer Generally
	 	 	27	 
	Section 4.5

	 	Registration and Transfer of Limited Partner Interests
	 	 	28	 
	Section 4.6

	 	Transfer of the General Partner’s General Partner Interest
	 	 	28	 
	Section 4.7

	 	Transfer of Incentive Distribution Rights
	 	 	29	 
	Section 4.8

	 	Restrictions on Transfers
	 	 	29	 
	Section 4.9

	 	Citizenship Certificates; Non-citizen Assignees
	 	 	31	 
	Section 4.10

	 	Redemption of Partnership Interests of Non-citizen Assignees
	 	 	31	 

WILLIAMS PARTNERS L.P.

AMENDED AND RESTATED AGREEMENT OF LIMITED PARTNERSHIP

i 

 

	 	 	 	 	 	 	 
	ARTICLE V

	 
	 	 	 	 	 	 
	CAPITAL CONTRIBUTIONS AND

	ISSUANCE OF PARTNERSHIP INTERESTS

	 
	Section 5.1

	 	Organizational Contributions
	 	 	33	 
	Section 5.2

	 	Contributions by the General Partner and its Affiliates
	 	 	33	 
	Section 5.3

	 	Contributions by Initial Limited Partners and Distributions to the
General Partner and its Affiliates
	 	 	34	 
	Section 5.4

	 	Interest and Withdrawal
	 	 	34	 
	Section 5.5

	 	Capital Accounts
	 	 	34	 
	Section 5.6

	 	Issuances of Additional Partnership Securities
	 	 	37	 
	Section 5.7

	 	Conversion of Subordinated Units
	 	 	38	 
	Section 5.8

	 	Limited Preemptive Right
	 	 	39	 
	Section 5.9

	 	Splits and Combinations
	 	 	39	 
	Section 5.10

	 	Fully Paid and Non-Assessable Nature of Limited Partner Interests
	 	 	40	 
	 
	 	 	 	 	 	 
	ARTICLE VI

	 
	 	 	 	 	 	 
	ALLOCATIONS AND DISTRIBUTIONS

	 
	 	 	 	 	 	 
	Section 6.1

	 	Allocations for Capital Account Purposes
	 	 	40	 
	Section 6.2

	 	Allocations for Tax Purposes
	 	 	48	 
	Section 6.3

	 	Requirement and Characterization of Distributions; Distributions to
Record Holders
	 	 	50	 
	Section 6.4

	 	Distributions of Available Cash from Operating Surplus
	 	 	51	 
	Section 6.5

	 	Distributions of Available Cash from Capital Surplus
	 	 	53	 
	Section 6.6

	 	Adjustment of Minimum Quarterly Distribution and Target Distribution
Levels
	 	 	53	 
	Section 6.7

	 	Special Provisions Relating to the Holders of Subordinated Units
	 	 	54	 
	Section 6.8

	 	Special Provisions Relating to the Holders of Incentive Distribution Rights
	 	 	55	 
	Section 6.9

	 	Entity-Level Taxation
	 	 	55	 
	 
	 	 	 	 	 	 
	ARTICLE VII

	 
	 	 	 	 	 	 
	MANAGEMENT AND OPERATION OF BUSINESS

	 
	 	 	 	 	 	 
	Section 7.1

	 	Management
	 	 	55	 
	Section 7.2

	 	Certificate of Limited Partnership
	 	 	58	 
	Section 7.3

	 	Restrictions on the General Partner’s Authority
	 	 	58	 
	Section 7.4

	 	Reimbursement of the General Partner
	 	 	59	 
	Section 7.5

	 	Outside Activities
	 	 	60	 
	Section 7.6

	 	Loans from the General Partner; Loans or Contributions from the
Partnership or Group Members
	 	 	61	 
	Section 7.7

	 	Indemnification
	 	 	61	 

WILLIAMS PARTNERS L.P.

AMENDED AND RESTATED AGREEMENT OF LIMITED PARTNERSHIP

ii 

 

	 	 	 	 	 	 	 
	Section 7.8

	 	Liability of Indemnitees
	 	 	63	 
	Section 7.9

	 	Resolution of Conflicts of Interest; Standards of Conduct and
Modification of Duties
	 	 	64	 
	Section 7.10

	 	Other Matters Concerning the General Partner
	 	 	65	 
	Section 7.11

	 	Purchase or Sale of Partnership Securities
	 	 	66	 
	Section 7.12

	 	Registration Rights of the General Partner and its Affiliates
	 	 	66	 
	Section 7.13

	 	Reliance by Third Parties
	 	 	69	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	ARTICLE VIII

	 
	 	 	 	 	 	 
	BOOKS, RECORDS, ACCOUNTING AND REPORTS

	 
	 	 	 	 	 	 
	Section 8.1

	 	Records and Accounting
	 	 	70	 
	Section 8.2

	 	Fiscal Year
	 	 	70	 
	Section 8.3

	 	Reports
	 	 	70	 
	 
	 	 	 	 	 	 
	ARTICLE IX

	 
	 	 	 	 	 	 
	TAX MATTERS

	 
	 	 	 	 	 	 
	Section 9.1

	 	Tax Returns and Information
	 	 	71	 
	Section 9.2

	 	Tax Elections
	 	 	71	 
	Section 9.3

	 	Tax Controversies
	 	 	71	 
	Section 9.4

	 	Withholding
	 	 	71	 
	 
	 	 	 	 	 	 
	ARTICLE X

	 

	 	 	 	 	 	 
	ADMISSION OF PARTNERS

	 
	 	 	 	 	 	 
	Section 10.1

	 	Admission of Initial Limited Partners
	 	 	72	 
	Section 10.2

	 	Admission of Limited Partners
	 	 	72	 
	Section 10.3

	 	Admission of Successor General Partner
	 	 	73	 
	Section 10.4

	 	Amendment of Agreement and Certificate of Limited Partnership
	 	 	73	 
	 
	 	 	 	 	 	 
	ARTICLE XI

	 
	 	 	 	 	 	 
	WITHDRAWAL OR REMOVAL OF PARTNERS

	 
	 	 	 	 	 	 
	Section 11.1

	 	Withdrawal of the General Partner
	 	 	73	 
	Section 11.2

	 	Removal of the General Partner
	 	 	75	 
	Section 11.3

	 	Interest of Departing Partner and Successor General Partner
	 	 	75	 
	Section 11.4

	 	Termination of Subordination Period, Conversion of Subordinated
Units and Extinguishment of Cumulative Common Unit Arrearages
	 	 	77	 
	Section 11.5

	 	Withdrawal of Limited Partners
	 	 	77	 

WILLIAMS PARTNERS L.P.

AMENDED AND RESTATED AGREEMENT OF LIMITED PARTNERSHIP

iii 

 

	 	 	 	 	 	 	 
	ARTICLE XII

	 
	 	 	 	 	 	 
	DISSOLUTION AND LIQUIDATION

	 
	 	 	 	 	 	 
	Section 12.1

	 	Dissolution
	 	 	77	 
	Section 12.2

	 	Continuation of the Business of the Partnership After Dissolution
	 	 	78	 
	Section 12.3

	 	Liquidator
	 	 	79	 
	Section 12.4

	 	Liquidation
	 	 	79	 
	Section 12.5

	 	Cancellation of Certificate of Limited Partnership
	 	 	80	 
	Section 12.6

	 	Return of Contributions
	 	 	80	 
	Section 12.7

	 	Waiver of Partition
	 	 	80	 
	Section 12.8

	 	Capital Account Restoration
	 	 	80	 
	 
	 	 	 	 	 	 
	ARTICLE XIII

	 
	 	 	 	 	 	 
	AMENDMENT OF PARTNERSHIP

	AGREEMENT; MEETINGS; RECORD DATE

	 
	 	 	 	 	 	 
	Section 13.1

	 	Amendments to be Adopted Solely by the General Partner
	 	 	81	 
	Section 13.2

	 	Amendment Procedures
	 	 	82	 
	Section 13.3

	 	Amendment Requirements
	 	 	82	 
	Section 13.4

	 	Special Meetings
	 	 	83	 
	Section 13.5

	 	Notice of a Meeting
	 	 	84	 
	Section 13.6

	 	Record Date
	 	 	84	 
	Section 13.7

	 	Adjournment
	 	 	84	 
	Section 13.8

	 	Waiver of Notice; Approval of Meeting; Approval of Minutes
	 	 	84	 
	Section 13.9

	 	Quorum and Voting
	 	 	85	 
	Section 13.10

	 	Conduct of a Meeting
	 	 	85	 
	Section 13.11

	 	Action Without a Meeting
	 	 	85	 
	Section 13.12

	 	Right to Vote and Related Matters
	 	 	86	 
	 
	 	 	 	 	 	 
	ARTICLE XIV

	 
	 	 	 	 	 	 
	MERGER

	 
	 	 	 	 	 	 
	Section 14.1

	 	Authority
	 	 	87	 
	Section 14.2

	 	Procedure for Merger or Consolidation
	 	 	87	 
	Section 14.3

	 	Approval by Limited Partners of Merger or Consolidation
	 	 	88	 
	Section 14.4

	 	Certificate of Merger
	 	 	89	 
	Section 14.5

	 	Amendment of Partnership Agreement
	 	 	89	 
	Section 14.6

	 	Effect of Merger
	 	 	89	 

WILLIAMS PARTNERS L.P.

AMENDED AND RESTATED AGREEMENT OF LIMITED PARTNERSHIP

iv 

 

	 	 	 	 	 	 	 
	ARTICLE XV

	 
	 	 	 	 	 	 
	RIGHT TO ACQUIRE LIMITED PARTNER INTERESTS

	 
	 	 	 	 	 	 
	Section 15.1

	 	Right to Acquire Limited Partner Interests
	 	 	90	 
	 
	 	 	 	 	 	 
	ARTICLE XVI

	 
	 	 	 	 	 	 
	GENERAL PROVISIONS

	 
	 	 	 	 	 	 
	Section 16.1

	 	Addresses and Notices
	 	 	91	 
	Section 16.2

	 	Further Action
	 	 	92	 
	Section 16.3

	 	Binding Effect
	 	 	92	 
	Section 16.4

	 	Integration
	 	 	92	 
	Section 16.5

	 	Creditors
	 	 	92	 
	Section 16.6

	 	Waiver
	 	 	93	 
	Section 16.7

	 	Third-Party Beneficiaries
	 	 	93	 
	Section 16.8

	 	Counterparts
	 	 	93	 
	Section 16.9

	 	Applicable Law
	 	 	93	 
	Section 16.10

	 	Invalidity of Provisions
	 	 	93	 
	Section 16.11

	 	Consent of Partners
	 	 	93	 
	Section 16.12

	 	Facsimile Signatures
	 	 	93	 

WILLIAMS PARTNERS L.P.

AMENDED AND RESTATED AGREEMENT OF LIMITED PARTNERSHIP

v 

 

AMENDED AND RESTATED AGREEMENT OF

LIMITED PARTNERSHIP OF WILLIAMS PARTNERS L.P.

     THIS AMENDED AND RESTATED AGREEMENT OF LIMITED PARTNERSHIP OF WILLIAMS PARTNERS L.P. dated as
of August 23, 2005, is entered into by and between Williams Partners GP LLC, a Delaware limited
liability company, as the General Partner, and each of Williams Energy Services, LLC, a Delaware
limited liability company, Williams Energy, L.L.C., a Delaware limited liability company, Williams
Discovery Pipeline, LLC, a Delaware limited liability company, and Williams Partners Holdings, a
Delaware limited liability company, as limited partners, together with any other Persons who become
Partners in the Partnership or parties hereto as provided herein. In consideration of the
covenants, conditions and agreements contained herein, the parties hereto hereby agree as follows:

ARTICLE I

DEFINITIONS

Section 1.1 Definitions.

     The following definitions shall be for all purposes, unless otherwise clearly indicated to the
contrary, applied to the terms used in this Agreement.

     “Acquisition” means any transaction in which any Group Member acquires (through an asset
acquisition, merger, stock acquisition or other form of investment) control over all or a portion
of the assets, properties or business of another Person for the purpose of increasing the operating
capacity or revenues of the Partnership Group from the operating capacity or revenues of the
Partnership Group existing immediately prior to such transaction.

     “Additional Book Basis” means the portion of any remaining Carrying Value of an Adjusted
Property that is attributable to positive adjustments made to such Carrying Value as a result of
Book-Up Events. For purposes of determining the extent that Carrying Value constitutes Additional
Book Basis:

     (i) Any negative adjustment made to the Carrying Value of an Adjusted Property as a
result of either a Book-Down Event or a Book-Up Event shall first be deemed to offset or
decrease that portion of the Carrying Value of such Adjusted Property that is attributable
to any prior positive adjustments made thereto pursuant to a Book-Up Event or Book-Down
Event.

     (ii) If Carrying Value that constitutes Additional Book Basis is reduced as a result of
a Book-Down Event and the Carrying Value of other property is increased as a result of such
Book-Down Event, an allocable portion of any such increase in Carrying Value shall be
treated as Additional Book Basis; provided, that the amount treated as Additional Book Basis
pursuant hereto as a result of such Book-Down Event shall not exceed the amount by which the
Aggregate Remaining Net Positive Adjustments after such Book-Down Event exceeds the
remaining Additional Book Basis attributable to all
of the Partnership’s Adjusted Property after such Book-Down Event (determined without
regard to the application of this clause (ii) to such Book-Down Event).

 

 

     “Additional Book Basis Derivative Items” means any Book Basis Derivative Items that are
computed with reference to Additional Book Basis. To the extent that the Additional Book Basis
attributable to all of the Partnership’s Adjusted Property as of the beginning of any taxable
period exceeds the Aggregate Remaining Net Positive Adjustments as of the beginning of such period
(the “Excess Additional Book Basis”), the Additional Book Basis Derivative Items for such period
shall be reduced by the amount that bears the same ratio to the amount of Additional Book Basis
Derivative Items determined without regard to this sentence as the Excess Additional Book Basis
bears to the Additional Book Basis as of the beginning of such period.

     “Adjusted Capital Account” means the Capital Account maintained for each Partner as of the end
of each fiscal year of the Partnership, (a) increased by any amounts that such Partner is obligated
to restore under the standards set by Treasury Regulation Section 1.704-1(b)(2)(ii)(c) (or is
deemed obligated to restore under Treasury Regulation Sections 1.704-2(g) and 1.704-2(i)(5)) and
(b) decreased by (i) the amount of all losses and deductions that, as of the end of such fiscal
year, are reasonably expected to be allocated to such Partner in subsequent years under Sections
704(e)(2) and 706(d) of the Code and Treasury Regulation Section 1.751-1(b)(2)(ii), and (ii) the
amount of all distributions that, as of the end of such fiscal year, are reasonably expected to be
made to such Partner in subsequent years in accordance with the terms of this Agreement or
otherwise to the extent they exceed offsetting increases to such Partner’s Capital Account that are
reasonably expected to occur during (or prior to) the year in which such distributions are
reasonably expected to be made (other than increases as a result of a minimum gain chargeback
pursuant to Section 6.1(d)(i) or Section 6.1(d)(ii)). The foregoing definition of Adjusted Capital
Account is intended to comply with the provisions of Treasury Regulation Section
1.704-1(b)(2)(ii)(d) and shall be interpreted consistently therewith. The “Adjusted Capital
Account” of a Partner in respect of a General Partner Unit, a Common Unit, a Subordinated Unit or
an Incentive Distribution Right or any other Partnership Interest shall be the amount that such
Adjusted Capital Account would be if such General Partner Unit, Common Unit, Subordinated Unit,
Incentive Distribution Right or other Partnership Interest were the only interest in the
Partnership held by such Partner from and after the date on which such General Partner Unit, Common
Unit, Subordinated Unit, Incentive Distribution Right or other Partnership Interest was first
issued.

     “Adjusted Operating Surplus” means, with respect to any period, Operating Surplus generated
with respect to such period (a) less (i) any net increase in Working Capital Borrowings with
respect to such period and (ii) any net reduction in cash reserves for Operating Expenditures with
respect to such period to the extent such reduction does not relate to an Operating Expenditure
made with respect to such period, and (b) plus (i) any net decrease in Working Capital Borrowings
with respect to such period, and (ii) any net increase in cash reserves for Operating Expenditures
with respect to such period to the extent such reserve is required by any debt instrument for the
repayment of principal, interest or premium. Adjusted Operating Surplus does not include that
portion of Operating Surplus included in clauses (a)(i) and (a)(ii) of the definition of Operating
Surplus.

     “Adjusted Property” means any property the Carrying Value of which has been adjusted pursuant
to Section 5.5(d)(i) or Section 5.5(d)(ii).

2

 

     “Affiliate” means, with respect to any Person, any other Person that directly or indirectly
through one or more intermediaries controls, is controlled by or is under common control with, the
Person in question. As used herein, the term “control” means the possession, direct or indirect,
of the power to direct or cause the direction of the management and policies of a Person, whether
through ownership of voting securities, by contract or otherwise.

     “Aggregate Remaining Net Positive Adjustments” means, as of the end of any taxable period, the
sum of the Remaining Net Positive Adjustments of all the Partners.

     “Agreed Allocation” means any allocation, other than a Required Allocation, of an item of
income, gain, loss or deduction pursuant to the provisions of Section 6.1, including, without
limitation, a Curative Allocation (if appropriate to the context in which the term “Agreed
Allocation” is used).

     “Agreed Value” of any Contributed Property means the fair market value of such property or
other consideration at the time of contribution as determined by the General Partner. The General
Partner shall use such method as it determines to be appropriate to allocate the aggregate Agreed
Value of Contributed Properties contributed to the Partnership in a single or integrated
transaction among each separate property on a basis proportional to the fair market value of each
Contributed Property.

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

     “Associate” means, when used to indicate a relationship with any Person, (a) any corporation
or organization of which such Person is a director, officer or partner or is, directly or
indirectly, the owner of 20% or more of any class of voting stock or other voting interest; (b) any
trust or other estate in which such Person has at least a 20% beneficial interest or as to which
such Person serves as trustee or in a similar fiduciary capacity; and (c) any relative or spouse of
such Person, or any relative of such spouse, who has the same principal residence as such Person.

     “Available Cash” means, with respect to any Quarter ending prior to the Liquidation Date:

          (a) the sum of (i) all cash and cash equivalents of the Partnership Group on hand at the end
of such Quarter, and (ii) all additional cash and cash equivalents of the Partnership Group on hand
on the date of determination of Available Cash with respect to such Quarter resulting from Working
Capital Borrowings made subsequent to the end of such Quarter, less

          (b) the amount of any cash reserves established by the General Partner to (i) provide for the
proper conduct of the business of the Partnership Group (including reserves for future capital
expenditures and for anticipated future credit needs of the Partnership Group) subsequent to such
Quarter, (ii) comply with applicable law or any loan agreement, security
agreement, mortgage, debt instrument or other agreement or obligation to which any Group
Member is a party or by which it is bound or its assets are subject or (iii) provide funds for
distributions under Section 6.4 or Section 6.5 in respect of any one or more of the next four

3

 

Quarters; provided, however, that the General Partner may not establish cash reserves pursuant to
(iii) above if the effect of such reserves would be that the Partnership is unable to distribute
the Minimum Quarterly Distribution on all Common Units, plus any Cumulative Common Unit Arrearage
on all Common Units, with respect to such Quarter; and, provided further, that disbursements made
by a Group Member or cash reserves established, increased or reduced after the end of such Quarter
but on or before the date of determination of Available Cash with respect to such Quarter shall be
deemed to have been made, established, increased or reduced, for purposes of determining Available
Cash, within such Quarter if the General Partner so determines.

     Notwithstanding the foregoing, “Available Cash” with respect to the Quarter in which the
Liquidation Date occurs and any subsequent Quarter shall equal zero.

     “Board of Directors” means the board of directors or managers of a corporation or limited
liability company, as applicable, or if a limited partnership, the board of directors or board of
managers of the general partner of such limited partnership, as applicable.

     “Book Basis Derivative Items” means any item of income, deduction, gain or loss included in
the determination of Net Income or Net Loss that is computed with reference to the Carrying Value
of an Adjusted Property (e.g., depreciation, depletion, or gain or loss with respect to an Adjusted
Property).

     “Book-Down Event” means an event that triggers a negative adjustment to the Capital Accounts
of the Partners pursuant to Section 5.5(d).

     “Book-Tax Disparity” means with respect to any item of Contributed Property or Adjusted
Property, as of the date of any determination, the difference between the Carrying Value of such
Contributed Property or Adjusted Property and the adjusted basis thereof for federal income tax
purposes as of such date. A Partner’s share of the Partnership’s Book-Tax Disparities in all of
its Contributed Property and Adjusted Property will be reflected by the difference between such
Partner’s Capital Account balance as maintained pursuant to Section 5.5 and the hypothetical
balance of such Partner’s Capital Account computed as if it had been maintained strictly in
accordance with federal income tax accounting principles.

     “Book-Up Event” means an event that triggers a positive adjustment to the Capital Accounts of
the Partners pursuant to Section 5.5(d).

     “Business Day” means Monday through Friday of each week, except that a legal holiday
recognized as such by the government of the United States of America or the State of New York shall
not be regarded as a Business Day.

     “Capital Account” means the capital account maintained for a Partner pursuant to Section 5.5.
The “Capital Account” of a Partner in respect of a General Partner Unit, a Common Unit, a
Subordinated Unit, an Incentive Distribution Right or any other Partnership Interest shall be the
amount that such Capital Account would be if such General Partner Unit, Common Unit,
Subordinated Unit, Incentive Distribution Right or other Partnership Interest were the only
interest in the Partnership held by such Partner from and after the date on which such General

4

 

Partner Unit, Common Unit, Subordinated Unit, Incentive Distribution Right or other Partnership
Interest was first issued.

     “Capital Contribution” means any cash, cash equivalents or the Net Agreed Value of Contributed
Property that a Partner contributes to the Partnership.

     “Capital Improvement” means any (a) addition or improvement to the capital assets owned by any
Group Member, (b) acquisition of existing, or the construction of new, capital assets (including,
without limitation, any hydrocarbon gathering systems or pipelines, any natural gas processing or
natural gas liquids fractionation facilities, any storage or terminal facilities and any related or
similar midstream assets), or (c) capital contribution by a Group Member to a Person in which a
Group Member has an equity interest, to fund the Group Member’s pro rata share of the cost of the
acquisition of existing, or the construction of new, capital assets (including, without limitation,
any hydrocarbon gathering systems or pipelines, any natural gas processing or natural gas liquids
fractionation facilities, any storage or terminal facilities and any related or similar midstream
assets) by such Person, in each case if such addition, improvement, acquisition or construction is
made to increase the operating capacity or revenues of the Partnership Group, in the case of
clauses (a) and (b), or such Person, in the case of clause (c), from the operating capacity or
revenues of the Partnership Group or such Person, as the case may be, existing immediately prior to
such addition, improvement, acquisition or construction.

     “Capital Surplus” has the meaning assigned to such term in Section 6.3(a).

     “Carrying Value” means (a) with respect to a Contributed Property, the Agreed Value of such
property reduced (but not below zero) by all depreciation, amortization and cost recovery
deductions charged to the Partners’ Capital Accounts in respect of such Contributed Property, and
(b) with respect to any other Partnership property, the adjusted basis of such property for federal
income tax purposes, all as of the time of determination. The Carrying Value of any property shall
be adjusted from time to time in accordance with Section 5.5(d)(i) and Section 5.5(d)(ii) and to
reflect changes, additions or other adjustments to the Carrying Value for dispositions and
acquisitions of Partnership properties, as deemed appropriate by the General Partner.

     “Cause” means a court of competent jurisdiction has entered a final, non-appealable judgment
finding the General Partner liable for actual fraud, gross negligence or willful or wanton
misconduct in its capacity as a general partner of the Partnership.

     “Certificate” means a certificate (i) substantially in the form of Exhibit A to this
Agreement, (ii) issued in global form in accordance with the rules and regulations of the
Depositary or (iii) in such other form as may be adopted by the General Partner, issued by the
Partnership evidencing ownership of one or more Common Units or a certificate, in such form as may
be adopted by the General Partner, issued by the Partnership evidencing ownership of one or more
other Partnership Securities.

     “Certificate of Limited Partnership” means the Certificate of Limited Partnership of the
Partnership filed with the Secretary of State of the State of Delaware as referenced in

5

 

Section 7.2, as such Certificate of Limited Partnership may be amended, supplemented or restated from time
to time.

     “Citizenship Certification” means a properly completed certificate in such form as may be
specified by the General Partner by which a Limited Partner certifies that he (and if he is a
nominee holding for the account of another Person, that to the best of his knowledge such other
Person) is an Eligible Citizen.

     “Claim” (as used in Section 7.12(d)) has the meaning assigned to such term in Section 7.12(d).

     “Closing Date” means the first date on which Common Units are sold by the Partnership to the
Underwriters pursuant to the provisions of the Underwriting Agreement.

     “Closing Price” has the meaning assigned to such term in Section 15.1(a).

     “Code” means the Internal Revenue Code of 1986, as amended and in effect from time to time.
Any reference herein to a specific section or sections of the Code shall be deemed to include a
reference to any corresponding provision of any successor law.

     “Combined Interest” has the meaning assigned to such term in Section 11.3(a).

     “Commission” means the United States Securities and Exchange Commission.

     “Common Unit” means a Partnership Security representing a fractional part of the Partnership
Interests of all Limited Partners, and having the rights and obligations specified with respect to
Common Units in this Agreement. The term “Common Unit” does not include a Subordinated Unit prior
to its conversion into a Common Unit pursuant to the terms hereof.

     “Common Unit Arrearage” means, with respect to any Common Unit, whenever issued, as to any
Quarter within the Subordination Period, the excess, if any, of (a) the Minimum Quarterly
Distribution with respect to a Common Unit in respect of such Quarter over (b) the sum of all
Available Cash distributed with respect to a Common Unit in respect of such Quarter pursuant to
Section 6.4(a)(i).

     “Conflicts Committee” means a committee of the Board of Directors of the General Partner
composed entirely of two or more directors who are not (a) security holders, officers or employees
of the General Partner, (b) officers, directors or employees of any Affiliate of the General
Partner or (c) holders of any ownership interest in the Partnership Group other than Common Units
and who also meet the independence standards required of directors who serve on an audit committee
of a board of directors established by the Securities Exchange Act of 1934, as amended, and the
rules and regulations of the Commission thereunder and by the National Securities Exchange on which
the Common Units are listed or admitted to trading.

     “Contributed Property” means each property or other asset, in such form as may be permitted by
the Delaware Act, but excluding cash, contributed to the Partnership. Once the
Carrying Value of a Contributed Property is adjusted pursuant to Section 5.5(d), such property
shall no longer constitute a Contributed Property, but shall be deemed an Adjusted Property.

6

 

     “Contribution Agreement” means that certain Contribution, Conveyance and Assumption Agreement,
dated as of the Closing Date, among the General Partner, the Partnership, the Operating Company,
WES, Williams Energy, L.L.C., Williams Discovery Pipeline LLC, Williams Partners Holdings LLC and
Williams Natural Gas Liquids, Inc. and the other parties named therein, together with the
additional conveyance documents and instruments contemplated or referenced thereunder, as such may
be amended, supplemented or restated from time to time.

     “Cumulative Common Unit Arrearage” means, with respect to any Common Unit, whenever issued,
and as of the end of any Quarter, the excess, if any, of (a) the sum resulting from adding together
the Common Unit Arrearage as to an Initial Common Unit for each of the Quarters within the
Subordination Period ending on or before the last day of such Quarter over (b) the sum of any
distributions theretofore made pursuant to Section 6.4(a)(ii) and the second sentence of Section
6.5 with respect to an Initial Common Unit (including any distributions to be made in respect of
the last of such Quarters).

     “Curative Allocation” means any allocation of an item of income, gain, deduction, loss or
credit pursuant to the provisions of Section 6.1(d)(xi).

     “Current Market Price” has the meaning assigned to such term in Section 15.1(a).

     “Delaware Act” means the Delaware Revised Uniform Limited Partnership Act, 6 Del C. Section
17-101, et seq., as amended, supplemented or restated from time to time, and any successor to such
statute.

     “Departing Partner” means a former General Partner from and after the effective date of any
withdrawal or removal of such former General Partner pursuant to Section 11.1 or Section 11.2.

     “Depositary” means, with respect to any Units issued in global form, The Depository Trust
Company and its successors and permitted assigns.

     “Economic Risk of Loss” has the meaning set forth in Treasury Regulation Section 1.752-2(a).

     “Eligible Citizen” means a Person qualified to own interests in real property in jurisdictions
in which any Group Member does business or proposes to do business from time to time, and whose
status as a Limited Partner the General Partner determines does not or would not subject such Group
Member to a significant risk of cancellation or forfeiture of any of its properties or any interest
therein.

     “Environmental Indemnity Obligation” means the obligation of the General Partner or an
Affiliate to indemnify the Partnership Group for certain environmental obligations and repair and
compliance costs pursuant to the Omnibus Agreement.

     “Estimated Incremental Quarterly Tax Amount” has the meaning assigned to such term in Section
6.9.

7

 

     “Event of Withdrawal” has the meaning assigned to such term in Section 11.1(a).

     “Excess G&A Expenses” means the excess of (i) the amount of any general and administrative
expenses required to be reimbursed to the General Partner pursuant to Section 7.4, over (ii) the
amount of such expenses permitted to be reimbursed by the Partnership Group pursuant to Article IV
of the Omnibus Agreement.

     “Final Subordinated Units” has the meaning assigned to such term in Section 6.1(d)(x).

     “First Liquidation Target Amount” has the meaning assigned to such term in Section
6.1(c)(i)(D).

     “First Target Distribution” means $0.4025 per Unit per Quarter (or, with respect to the period
commencing on the Closing Date and ending on September 30, 2005, it means the product of $0.4025
multiplied by a fraction of which the numerator is the number of days in such period, and of which
the denominator is 92), subject to adjustment in accordance with Section 6.6 and Section 6.9.

     “Fully Diluted Basis” means, when calculating the number of Outstanding Units for any period,
a basis that includes, in addition to the Outstanding Units, all Partnership Securities and
options, rights, warrants and appreciation rights relating to an equity interest in the Partnership
(a) that are convertible into or exercisable or exchangeable for Units that are senior to or pari
passu with the Subordinated Units, (b) whose conversion, exercise or exchange price is less than
the Current Market Price on the date of such calculation, (c) that may be converted into or
exercised or exchanged for such Units prior to or during the Quarter immediately following the end
of the period for which the calculation is being made without the satisfaction of any contingency
beyond the control of the holder other than the payment of consideration and the compliance with
administrative mechanics applicable to such conversion, exercise or exchange and (d) that were not
converted into or exercised or exchanged for such Units during the period for which the calculation
is being made; provided, that for purposes of determining the number of Outstanding Units on a
Fully Diluted Basis when calculating whether the Subordination Period has ended or the Subordinated
Units are entitled to convert into Common Units pursuant to Section 5.7, such Partnership
Securities, options, rights, warrants and appreciation rights shall be deemed to have been
Outstanding Units only for the four Quarters that comprise the last four Quarters of the
measurement period; provided, further, that if consideration will be paid to any Group Member in
connection with such conversion, exercise or exchange, the number of Units to be included in such
calculation shall be that number equal to the difference between (i) the number of Units issuable
upon such conversion, exercise or exchange and (ii) the number of Units that such consideration
would purchase at the Current Market Price.

     “General Partner” means Williams Partners GP LLC, a Delaware limited liability company, and
its successors and permitted assigns that are admitted to the Partnership as general partner of the
Partnership, in its capacity as general partner of the Partnership (except as the context otherwise
requires).

     “General Partner Interest” means the ownership interest of the General Partner in the
Partnership (in its capacity as a general partner without reference to any Limited Partner Interest

8

 

held by it), which is evidenced by General Partner Units and includes any and all benefits to which
the General Partner is entitled as provided in this Agreement, together with all obligations of the
General Partner to comply with the terms and provisions of this Agreement.

     “General Partner Unit” means a fractional part of the General Partner Interest having the
rights and obligations specified with respect to the General Partner Interest. A General Partner
Unit is not a Unit.

     “Group” means a Person that with or through any of its Affiliates or Associates has any
agreement, arrangement or understanding for the purpose of acquiring, holding, voting (except
voting pursuant to a revocable proxy or consent given to such Person in response to a proxy or
consent solicitation made to 10 or more Persons), exercising investment power or disposing of any
Partnership Interests with any other Person that beneficially owns, or whose Affiliates or
Associates beneficially own, directly or indirectly, Partnership Interests.

     “Group Member” means a member of the Partnership Group.

     “Group Member Agreement” means the partnership agreement of any Group Member, other than the
Partnership, that is a limited or general partnership, the limited liability company agreement of
any Group Member that is a limited liability company, the certificate of incorporation and bylaws
or similar organizational documents of any Group Member that is a corporation, the joint venture
agreement or similar governing document of any Group Member that is a joint venture and the
governing or organizational or similar documents of any other Group Member that is a Person other
than a limited or general partnership, limited liability company, corporation or joint venture, as
such may be amended, supplemented or restated from time to time.

     “Holder” as used in Section 7.12, has the meaning assigned to such term in Section 7.12(a).

     “Incentive Distribution Right” means a non-voting Limited Partner Interest issued to the
General Partner, which Partnership Interest will confer upon the holder thereof only the rights and
obligations specifically provided in this Agreement with respect to Incentive Distribution Rights
(and no other rights otherwise available to or other obligations of a holder of a Partnership
Interest). Notwithstanding anything in this Agreement to the contrary, the holder of an Incentive
Distribution Right shall not be entitled to vote such Incentive Distribution Right on any
Partnership matter except as may otherwise be required by law.

     “Incentive Distributions” means any amount of cash distributed to the holders of the Incentive
Distribution Rights pursuant to Section 6.4(a)(v), (vi) and (vii) and Section 6.4(b)(iii), (iv) and
(v).

     “Indemnified Persons” has the meaning assigned to such term in Section 7.12(d).

     “Indemnitee” means (a) the General Partner, (b) any Departing Partner, (c) any Person who is
or was an Affiliate of the General Partner (including Williams and its Subsidiaries) or any
Departing Partner, (d) any Person who is or was a member, partner, director, officer,
fiduciary or trustee of any Person that any of the preceding clauses of this definition describes,
(e) any Person

9

 

who is or was serving at the request of the General Partner or any Departing Partner
or any Affiliate of the General Partner or any Departing Partner as an officer, director, member,
partner, fiduciary or trustee of another Person, provided that that Person shall not be an
Indemnitee by reason of providing, on a fee-for-services basis, trustee, fiduciary or custodial
services, and (f) any Person the General Partner designates as an “Indemnitee” for purposes of this
Agreement.

     “Initial Common Units” means the Common Units sold in the Initial Offering.

     “Initial Limited Partners” means WES, Williams Energy, L.L.C., Williams Discovery Pipeline LLC
and Williams Partners Holdings LLC and the General Partner (with respect to the Incentive
Distribution Rights received by it pursuant to Section 5.2), and the Underwriters, in each case
upon being admitted to the Partnership in accordance with Section 10.1.

     “Initial Offering” means the initial offering and sale of Common Units to the public, as
described in the Registration Statement.

     “Initial Unit Price” means (a) with respect to the Common Units and the Subordinated Units,
the initial public offering price per Common Unit at which the Underwriters offered the Common
Units to the public for sale as set forth on the cover page of the prospectus included as part of
the Registration Statement and first issued at or after the time the Registration Statement first
became effective or (b) with respect to any other class or series of Units, the price per Unit at
which such class or series of Units is initially sold by the Partnership, as determined by the
General Partner, in each case adjusted as the General Partner determines to be appropriate to give
effect to any distribution, subdivision or combination of Units.

     “Interim Capital Transactions” means the following transactions if they occur prior to the
Liquidation Date: (a) borrowings, refinancings or refundings of indebtedness (other than Working
Capital Borrowings and other than for items purchased on open account in the ordinary course of
business) by any Group Member and sales of debt securities of any Group Member; (b) sales of equity
interests of any Group Member (including the Common Units sold to the Underwriters pursuant to the
exercise of the Over-Allotment Option); and (c) sales or other voluntary or involuntary
dispositions of any assets of any Group Member other than (i) sales or other dispositions of
inventory, accounts receivable and other assets in the ordinary course of business, and (ii) sales
or other dispositions of assets as part of normal retirements or replacements.

     “Issue Price” means the price at which a Unit is purchased from the Partnership, excluding any
sales commission or underwriting discount charged to the Partnership.

     “Limited Partner” means, unless the context otherwise requires, (a) the Organizational Limited
Partner prior to its withdrawal from the Partnership, each Initial Limited Partner, each additional
person that becomes a Limited Partner pursuant to the terms of this Agreement and any Departing
Partner upon the change of its status from General Partner to Limited Partner pursuant to Section
11.3, in each case, in such Person’s capacity as a limited partner of the Partnership; provided,
however, that when the term “Limited Partner” is used herein in the
context of any vote or other approval, including Article XIII and Article XIV, such term shall
not, solely for such purpose, include any holder of an Incentive Distribution Right (solely with

10

 

respect to its Incentive Distribution Rights and not with respect to any other Limited Partner
Interest held by such Person) except as may otherwise be required by law.

     “Limited Partner Interest” means the ownership interest of a Limited Partner in the
Partnership, which may be evidenced by Common Units, Subordinated Units, Incentive Distribution
Rights or other Partnership Securities or a combination thereof or interest therein, and includes
any and all benefits to which such Limited Partner is entitled as provided in this Agreement,
together with all obligations of such Limited Partner to comply with the terms and provisions of
this Agreement; provided, however, that when the term “Limited Partner Interest” is used herein in
the context of any vote or other approval, including Article XIII and Article XIV, such term shall
not, solely for such purpose, include any Incentive Distribution Right except as may otherwise be
required by law.

     “Liquidation Date” means (a) in the case of an event giving rise to the dissolution of the
Partnership of the type described in clauses (a) and (b) of the first sentence of Section 12.2, the
date on which the applicable time period during which the holders of Outstanding Units have the
right to elect to continue the business of the Partnership has expired without such an election
being made, and (b) in the case of any other event giving rise to the dissolution of the
Partnership, the date on which such event occurs.

     “Liquidator” means one or more Persons selected by the General Partner to perform the
functions described in Section 12.4 as liquidating trustee of the Partnership within the meaning of
the Delaware Act.

     “Merger Agreement” has the meaning assigned to such term in Section 14.1.

     “Minimum Quarterly Distribution” means $0.35 per Unit per Quarter (or with respect to the
period commencing on the Closing Date and ending on September 30, 2005, it means the product of
$0.35 multiplied by a fraction of which the numerator is the number of days in such period and of
which the denominator is 92), subject to adjustment in accordance with Section 6.6 and Section 6.9.

     “National Securities Exchange” means an exchange registered with the Commission under Section
6(a) of the Securities Exchange Act of 1934, as amended, supplemented or restated from time to
time, and any successor to such statute, or The Nasdaq Stock Market or any successor thereto.

     “Net Agreed Value” means, (a) in the case of any Contributed Property, the Agreed Value of
such property reduced by any liabilities either assumed by the Partnership upon such contribution
or to which such property is subject when contributed, and (b) in the case of any property
distributed to a Partner by the Partnership, the Partnership’s Carrying Value of such property (as
adjusted pursuant to Section 5.5(d)(ii)) at the time such property is distributed, reduced by any
indebtedness either assumed by such Partner upon such distribution or to which such property is
subject at the time of distribution, in either case, as determined under Section 752 of the Code.

     “Net Income” means, for any taxable year, the excess, if any, of the Partnership’s items of
income and gain (other than those items taken into account in the computation of Net

11

 

Termination Gain or Net Termination Loss) for such taxable year over the Partnership’s items of loss and
deduction (other than those items taken into account in the computation of Net Termination Gain or
Net Termination Loss) for such taxable year. The items included in the calculation of Net Income
shall be determined in accordance with Section 5.5(b) and shall not include any items specially
allocated under Section 6.1(d); provided, that the determination of the items that have been
specially allocated under Section 6.1(d) shall be made as if Section 6.1(d)(xii) were not in this
Agreement.

     “Net Loss” means, for any taxable year, the excess, if any, of the Partnership’s items of loss
and deduction (other than those items taken into account in the computation of Net Termination Gain
or Net Termination Loss) for such taxable year over the Partnership’s items of income and gain
(other than those items taken into account in the computation of Net Termination Gain or Net
Termination Loss) for such taxable year. The items included in the calculation of Net Loss shall
be determined in accordance with Section 5.5(b) and shall not include any items specially allocated
under Section 6.1(d); provided, that the determination of the items that have been specially
allocated under Section 6.1(d) shall be made as if Section 6.1(d)(xii) were not in this Agreement.

     “Net Positive Adjustments” means, with respect to any Partner, the excess, if any, of the
total positive adjustments over the total negative adjustments made to the Capital Account of such
Partner pursuant to Book-Up Events and Book-Down Events.

     “Net Termination Gain” means, for any taxable year, the sum, if positive, of all items of
income, gain, loss or deduction recognized by the Partnership after the Liquidation Date. The
items included in the determination of Net Termination Gain shall be determined in accordance with
Section 5.5(b) and shall not include any items of income, gain or loss specially allocated under
Section 6.1(d).

     “Net Termination Loss” means, for any taxable year, the sum, if negative, of all items of
income, gain, loss or deduction recognized by the Partnership after the Liquidation Date. The
items included in the determination of Net Termination Loss shall be determined in accordance with
Section 5.5(b) and shall not include any items of income, gain or loss specially allocated under
Section 6.1(d).

     “Non-citizen Assignee” means a Person whom the General Partner has determined does not
constitute an Eligible Citizen and as to whose Partnership Interest the General Partner has become
the Limited Partner, pursuant to Section 4.9.

     “Nonrecourse Built-in Gain” means with respect to any Contributed Properties or Adjusted
Properties that are subject to a mortgage or pledge securing a Nonrecourse Liability, the amount of
any taxable gain that would be allocated to the Partners pursuant to Section 6.2(b)(i)(A), Section
6.2(b)(ii)(A) and Section 6.2(b)(iii) if such properties were disposed of in a taxable transaction
in full satisfaction of such liabilities and for no other consideration.

     “Nonrecourse Deductions” means any and all items of loss, deduction or expenditure (including,
without limitation, any expenditure described in Section 705(a)(2)(B) of the Code)

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that, in accordance with the principles of Treasury Regulation Section 1.704-2(b), are attributable to a
Nonrecourse Liability.

     “Nonrecourse Liability” has the meaning set forth in Treasury Regulation Section
1.752-1(a)(2).

     “Notice of Election to Purchase” has the meaning assigned to such term in Section 15.1(b).

     “Omnibus Agreement” means that Omnibus Agreement, dated as of the Closing Date, among the
General Partner, the Partnership, the Operating Company, WES, Williams Energy, L.L.C., Williams
Discovery Pipeline LLC, Williams Partners Holdings LLC and (for purposes of Articles V and VI
thereof only) Williams.

     “Operating Company” means Williams Partners Operating LLC, a Delaware limited liability
company, and any successors thereto.

     “Operating Company Agreement” means the Limited Liability Company Agreement of the Operating
Company, as it may be amended, supplemented or restated from time to time.

     “Operating Expenditures” means all Partnership Group expenditures, including, but not limited
to, taxes, reimbursements of the General Partner, repayment of Working Capital Borrowings, debt
service payments and capital expenditures, subject to the following:

          (a) Payments (including prepayments) of principal of and premium on indebtedness other than
Working Capital Borrowings shall not constitute Operating Expenditures; and

          (b) Operating Expenditures shall not include (i) capital expenditures made for Acquisitions
or Capital Improvements, (ii) payment of transaction expenses relating to Interim Capital
Transactions or (iii) distributions to Partners.

               Where capital expenditures are made in part for Acquisitions or for Capital Improvements and
in part for other purposes, the General Partner, with the concurrence of the Conflicts Committee,
shall determine the allocation between the amounts paid for each and, with respect to the part of
such capital expenditures made for other purposes, the period over which the capital expenditures
made for other purposes will be deducted as an Operating Expenditure in calculating Operating
Surplus.

     “Operating Surplus” means, with respect to any period ending prior to the Liquidation Date, on
a cumulative basis and without duplication,

          (a) the sum of (i) $10.0 million, (ii) all cash and cash equivalents of the Partnership Group
on hand as of the close of business on the Closing Date (other than amounts retained from the
proceeds of the Initial Offering to make a capital contribution to Discovery Producer Services LLC
to fund an escrow account required in connection with the Tahiti pipeline
lateral expansion project), (iii) all cash receipts of the Partnership Group for the period
beginning on the Closing Date and ending on the last day of such period, other than cash receipts
from

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Interim Capital Transactions (except to the extent specified in Section 6.5) and (iv) all cash
receipts of the Partnership Group after the end of such period but on or before the date of
determination of Operating Surplus with respect to such period resulting from Working Capital
Borrowings, less

          (b) the sum of (i) Operating Expenditures for the period beginning on the Closing Date and
ending on the last day of such period (other than Operating Expenditures funded with cash reserves
established pursuant to clause (ii) of this paragraph (b)) and (ii) the amount of cash reserves
established by the General Partner to provide funds for future Operating Expenditures; provided,
however, that disbursements made (including contributions to a Group Member or disbursements on
behalf of a Group Member) or cash reserves established, increased or reduced after the end of such
period but on or before the date of determination of Available Cash with respect to such period
shall be deemed to have been made, established, increased or reduced, for purposes of determining
Operating Surplus, within such period if the General Partner so determines.

     Notwithstanding the foregoing, “Operating Surplus” with respect to the Quarter in which the
Liquidation Date occurs and any subsequent Quarter shall equal zero.

     “Opinion of Counsel” means a written opinion of counsel (who may be regular counsel to the
Partnership or the General Partner or any of its Affiliates) acceptable to the General Partner.

     “Option Closing Date” means the date or dates on which any Common Units are sold by the
Partnership to the Underwriters upon exercise of the Over-Allotment Option.

     “Organizational Limited Partner” means WES in its capacity as the organizational limited
partner of the Partnership pursuant to this Agreement.

     “Outstanding” means, with respect to Partnership Securities, all Partnership Securities that
are issued by the Partnership and reflected as outstanding on the Partnership’s books and records
as of the date of determination; provided, however, that if at any time any Person or Group (other
than the General Partner or its Affiliates) beneficially owns 20% or more of any Outstanding
Partnership Securities of any class then Outstanding, all Partnership Securities owned by such
Person or Group shall not be voted on any matter and shall not be considered to be Outstanding when
sending notices of a meeting of Limited Partners to vote on any matter (unless otherwise required
by law), calculating required votes, determining the presence of a quorum or for other similar
purposes under this Agreement, except that Common Units so owned shall be considered to be
Outstanding for purposes of Section 11.1(b)(iv) (such Common Units shall not, however, be treated
as a separate class of Partnership Securities for purposes of this Agreement); provided, further,
that the foregoing limitation shall not apply (i) to any Person or Group who acquired 20% or more
of any Outstanding Partnership Securities of any class then Outstanding directly from the General
Partner or its Affiliates, (ii) to any Person or Group who acquired 20% or more of any Outstanding
Partnership Securities of any class then Outstanding directly or indirectly from a Person or Group
described in clause (i) provided that the General Partner shall have notified such Person or Group
in writing that such limitation shall not apply,
or (iii) to any Person or Group who acquired 20% or more of any Partnership Securities issued
by the Partnership with the prior approval of the board of directors of the General Partner.

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     “Over-Allotment Option” means the over-allotment option granted to the Underwriters by the
Selling Unitholders pursuant to the Underwriting Agreement.

     “Parity Units” means Common Units and all other Units of any other class or series that have
the right (i) to receive distributions of Available Cash from Operating Surplus pursuant to each of
subclauses (a)(i) and (a)(ii) of Section 6.4 in the same order of priority with respect to the
participation of Common Units in such distributions or (ii) to participate in allocations of Net
Termination Gain pursuant to Section 6.1(c)(i)(B) in the same order of priority with the Common
Units, in each case regardless of whether the amounts or value so distributed or allocated on each
Parity Unit equals the amount or value so distributed or allocated on each Common Unit. Units
whose participation in such (i) distributions of Available Cash from Operating Surplus and (ii)
allocations of Net Termination Gain are subordinate in order of priority to such distributions and
allocations on Common Units shall not constitute Parity Units even if such Units are convertible
under certain circumstances into Common Units or Parity Units.

     “Partner Nonrecourse Debt” has the meaning set forth in Treasury Regulation Section
1.704-2(b)(4).

     “Partner Nonrecourse Debt Minimum Gain” has the meaning set forth in Treasury Regulation
Section 1.704-2(i)(2).

     “Partner Nonrecourse Deductions” means any and all items of loss, deduction or expenditure
(including, without limitation, any expenditure described in Section 705(a)(2)(B) of the Code)
that, in accordance with the principles of Treasury Regulation Section 1.704-2(i), are attributable
to a Partner Nonrecourse Debt.

     “Partners” means the General Partner and the Limited Partners.

     “Partnership” means Williams Partners L.P., a Delaware limited partnership, and any successors
thereto.

     “Partnership Group” means the Partnership and its Subsidiaries treated as a single
consolidated entity.

     “Partnership Interest” means an interest in the Partnership, which shall include the General
Partner Interest and Limited Partner Interests.

     “Partnership Minimum Gain” means that amount determined in accordance with the principles of
Treasury Regulation Section 1.704-2(d).

     “Partnership Security” means any class or series of equity interest in the Partnership (but
excluding any options, rights, warrants and appreciation rights relating to an equity interest in
the Partnership), including without limitation, Common Units, Subordinated Units and Incentive
Distribution Rights.

     “Percentage Interest” means as of any date of determination (a) as to the General Partner with
respect to General Partner Units and as to any Unitholder with respect to Units, the product
obtained by multiplying (i) 100% less the percentage applicable to clause (b) below by (ii) the

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quotient obtained by dividing (A) the number of General Partner Units held by the General Partner
or the number of Units held by such Unitholder, as the case may be, by (B) the total number of all
Outstanding Units and all General Partner Units, and (b) as to the holders of other Partnership
Securities issued by the Partnership in accordance with Section 5.6, the percentage established as
a part of such issuance. The Percentage Interest with respect to an Incentive Distribution Right
shall at all times be zero.

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

     “Per Unit Capital Amount” means, as of any date of determination, the Capital Account, stated
on a per Unit basis, underlying any Unit held by a Person other than the General Partner or any
Affiliate of the General Partner who holds Units.

     “Pro Rata” means (a) when modifying Units or any class thereof, apportioned equally among all
designated Units in accordance with their relative Percentage Interests, (b) when modifying
Partners or Record Holders, apportioned among all Partners or Record Holders, as the case may be,
in accordance with their relative Percentage Interests and (c) when modifying holders of Incentive
Distribution Rights, apportioned equally among all holders of Incentive Distribution Rights in
accordance with the relative number or percentage of Incentive Distribution Rights held by each
such holder.

     “Purchase Date” means the date determined by the General Partner as the date for purchase of
all Outstanding Limited Partner Interests of a certain class (other than Limited Partner Interests
owned by the General Partner and its Affiliates) pursuant to Article XV.

     “Quarter” means, unless the context requires otherwise, a fiscal quarter of the Partnership,
or, with respect to the first fiscal quarter of the Partnership after the Closing Date, the portion
of such fiscal quarter after the Closing Date.

     “Recapture Income” means any gain recognized by the Partnership (computed without regard to
any adjustment required by Section 734 or Section 743 of the Code) upon the disposition of any
property or asset of the Partnership, which gain is characterized as ordinary income because it
represents the recapture of deductions previously taken with respect to such property or asset.

     “Record Date” means the date established by the General Partner or otherwise in accordance
with this Agreement for determining (a) the identity of the Record Holders entitled to notice of,
or to vote at, any meeting of Limited Partners or entitled to vote by ballot or give approval of
Partnership action in writing without a meeting or entitled to exercise rights in respect of any
lawful action of Limited Partners or (b) the identity of Record Holders entitled to receive any
report or distribution or to participate in any offer.

     “Record Holder” means the Person in whose name a Common Unit is registered on the books of the
Transfer Agent as of the opening of business on a particular Business Day, or with respect to other
Partnership Interests, the Person in whose name any such other Partnership

16

 

Interest is registered on the books that the General Partner has caused to be kept as of the opening of business on such
Business Day.

     “Redeemable Interests” means any Partnership Interests for which a redemption notice has been
given, and has not been withdrawn, pursuant to Section 4.10.

     “Registration Statement” means the Registration Statement on Form S-1 (Registration No.
333-124517) as it has been or as it may be amended or supplemented from time to time, filed by the
Partnership with the Commission under the Securities Act to register the offering and sale of the
Common Units in the Initial Offering.

     “Remaining Net Positive Adjustments” means as of the end of any taxable period, (i) with
respect to the Unitholders holding Common Units or Subordinated Units, the excess of (a) the Net
Positive Adjustments of the Unitholders holding Common Units or Subordinated Units as of the end of
such period over (b) the sum of those Partners’ Share of Additional Book Basis Derivative Items for
each prior taxable period, (ii) with respect to the General Partner (as holder of the General
Partner Units), the excess of (a) the Net Positive Adjustments of the General Partner as of the end
of such period over (b) the sum of the General Partner’s Share of Additional Book Basis Derivative
Items with respect to the General Partner Units for each prior taxable period, and (iii) with
respect to the holders of Incentive Distribution Rights, the excess of (a) the Net Positive
Adjustments of the holders of Incentive Distribution Rights as of the end of such period over (b)
the sum of the Share of Additional Book Basis Derivative Items of the holders of the Incentive
Distribution Rights for each prior taxable period.

     “Required Allocations” means (a) any limitation imposed on any allocation of Net Losses or Net
Termination Losses under Section 6.1(b) or Section 6.1(c)(ii) and (b) any allocation of an item of
income, gain, loss or deduction pursuant to Section 6.1(d)(i), Section 6.1(d)(ii), Section
6.1(d)(iv), Section 6.1(d)(vii) or Section 6.1(d)(ix).

     “Residual Gain” or “Residual Loss” means any item of gain or loss, as the case may be, of the
Partnership recognized for federal income tax purposes resulting from a sale, exchange or other
disposition of a Contributed Property or Adjusted Property, to the extent such item of gain or loss
is not allocated pursuant to Section 6.2(b)(i)(A) or Section 6.2(b)(ii)(A), respectively, to
eliminate Book-Tax Disparities.

     “Second Liquidation Target Amount” has the meaning assigned to such term in Section
6.1(c)(i)(E).

     “Second Target Distribution” means $0.4375 per Unit per Quarter (or, with respect to the
period commencing on the Closing Date and ending on September 30, 2005, it means the product of
$0.4375 multiplied by a fraction of which the numerator is equal to the number of days in such
period and of which the denominator is 92), subject to adjustment in accordance with Section 6.6
and Section 6.9.

     “Securities Act” means the Securities Act of 1933, as amended, supplemented or restated from
time to time and any successor to such statute.

17

 

     “Selling Unitholders” has the meaning assigned to such term in the Underwriting Agreement.

     “Share of Additional Book Basis Derivative Items” means in connection with any allocation of
Additional Book Basis Derivative Items for any taxable period, (i) with respect to the Unitholders
holding Common Units or Subordinated Units, the amount that bears the same ratio to such Additional
Book Basis Derivative Items as the Unitholders’ Remaining Net Positive Adjustments as of the end of
such period bears to the Aggregate Remaining Net Positive Adjustments as of that time, (ii) with
respect to the General Partner (as holder of the General Partner Units), the amount that bears the
same ratio to such Additional Book Basis Derivative Items as the General Partner’s Remaining Net
Positive Adjustments as of the end of such period bears to the Aggregate Remaining Net Positive
Adjustment as of that time, and (iii) with respect to the Partners holding Incentive Distribution
Rights, the amount that bears the same ratio to such Additional Book Basis Derivative Items as the
Remaining Net Positive Adjustments of the Partners holding the Incentive Distribution Rights as of
the end of such period bears to the Aggregate Remaining Net Positive Adjustments as of that time.

     “Special Approval” means approval by a majority of the members of the Conflicts Committee.

     “Subordinated Unit” means a Unit representing a fractional part of the Partnership Interests
of all Limited Partners, and having the rights and obligations specified with respect to
Subordinated Units in this Agreement. The term “Subordinated Unit” as used herein does not include
a Common Unit or Parity Unit. A Subordinated Unit that is convertible into a Common Unit or a
Parity Unit shall not constitute a Common Unit or Parity Unit until such conversion occurs.

     “Subordination Period” means the period commencing on the Closing Date and ending on the first
to occur of the following dates:

          (a) the first day of any Quarter beginning after June 30, 2010 in respect of which (i) (A)
distributions of Available Cash from Operating Surplus on each of the Outstanding Common Units and
Subordinated Units and any other Outstanding Units that are senior or equal in right of
distribution to the Subordinated Units with respect to each of the three consecutive,
non-overlapping four-Quarter periods immediately preceding such date equaled or exceeded the sum of
the Minimum Quarterly Distribution on all Outstanding Common Units and Subordinated Units and any
other Outstanding Units that are senior or equal in right of distribution to the Subordinated Units
during such periods and (B) the Adjusted Operating Surplus generated during each of the three
consecutive, non-overlapping four-Quarter periods immediately preceding such date equaled or
exceeded the sum of the Minimum Quarterly Distribution on all of the Common Units and Subordinated
Units and any other Units that are senior or equal in right of distribution to the Subordinated
Units that were Outstanding during such periods on a Fully Diluted Basis, plus the related
distribution on the General Partner Units, during such periods and (ii) there are no Cumulative
Common Unit Arrearages; and

          (b) the date on which the General Partner is removed as general partner of the Partnership
upon the requisite vote by holders of Outstanding Units under circumstances where

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Cause does not exist and Units held by the General Partner and its Affiliates are not voted in favor of such
removal.

     “Subsidiary” means, with respect to any Person, (a) a corporation of which more than 50% of
the voting power of shares entitled (without regard to the occurrence of any contingency) to vote
in the election of directors or other governing body of such corporation is owned, directly or
indirectly, at the date of determination, by such Person, by one or more Subsidiaries of such
Person or a combination thereof, (b) a partnership (whether general or limited) in which such
Person or a Subsidiary of such Person is, at the date of determination, a general or limited
partner of such partnership, but only if more than 50% of the partnership interests of such
partnership (considering all of the partnership interests of the partnership as a single class) is
owned, directly or indirectly, at the date of determination, by such Person, by one or more
Subsidiaries of such Person, or a combination thereof, or (c) any other Person (other than a
corporation or a partnership) in which such Person, one or more Subsidiaries of such Person, or a
combination thereof, directly or indirectly, at the date of determination, has (i) at least a
majority ownership interest or (ii) the power to elect or direct the election of a majority of the
directors or other governing body of such Person.

     “Surviving Business Entity” has the meaning assigned to such term in Section 14.2(b).

     “Third Liquidation Target Amount” has the meaning assigned to such term in Section
6.1(c)(i)(F).

     “Third Target Distribution” means $0.5250 per Unit per Quarter (or, with respect to the period
commencing on the Closing Date and ending on September 30, 2005, it means the product of $0.5250
multiplied by a fraction of which the numerator is equal to the number of days in such period and
of which the denominator is 92), subject to adjustment in accordance with Section 6.6 and Section
6.9.

     “Trading Day” has the meaning assigned to such term in Section 15.1(a).

     “Transfer” has the meaning assigned to such term in Section 4.4(a).

     “Transfer Agent” means such bank, trust company or other Person (including the General Partner
or one of its Affiliates) as shall be appointed from time to time by the General Partner to act as
registrar and transfer agent for the Common Units; provided, that if no Transfer Agent is
specifically designated for any other Partnership Securities, the General Partner shall act in such
capacity.

     “Underwriter” means each Person named as an underwriter in Schedule I to the
Underwriting Agreement who purchases Common Units pursuant thereto.

     “Underwriting Agreement” means the Underwriting Agreement dated August 17, 2005 among the
Underwriters, the Partnership, the General Partner, the Operating Company, WES, Williams Energy,
L.L.C., Williams Discovery Pipeline LLC, Williams Partners Holdings LLC,
Williams Midstream Natural Gas Liquids, Inc. and Williams Natural Gas Liquids, Inc. providing
for the purchase of Common Units by such Underwriters.

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     “Unit” means a Partnership Security that is designated as a “Unit” and shall include Common
Units and Subordinated Units but shall not include (i) General Partner Units (or the General
Partner Interest represented thereby) or (ii) Incentive Distribution Rights.

     “Unitholders” means the holders of Units.

     “Unit Majority” means, during the Subordination Period, at least a majority of the Outstanding
Common Units (excluding Common Units owned by the General Partner and its Affiliates) voting as a
class and at least a majority of the Outstanding Subordinated Units voting as a single class, and
after the end of the Subordination Period, at least a majority of the Outstanding Units.

     “Unpaid MQD” has the meaning assigned to such term in Section 6.1(c)(i)(B).

     “Unrealized Gain” attributable to any item of Partnership property means, as of any date of
determination, the excess, if any, of (a) the fair market value of such property as of such date
(as determined under Section 5.5(d)) over (b) the Carrying Value of such property as of such date
(prior to any adjustment to be made pursuant to Section 5.5(d) as of such date).

     “Unrealized Loss” attributable to any item of Partnership property means, as of any date of
determination, the excess, if any, of (a) the Carrying Value of such property as of such date
(prior to any adjustment to be made pursuant to Section 5.5(d) as of such date) over (b) the fair
market value of such property as of such date (as determined under Section 5.5(d)).

     “Unrecovered Capital” means at any time, with respect to a Unit, the Initial Unit Price less
the sum of all distributions constituting Capital Surplus theretofore made in respect of an Initial
Common Unit and any distributions of cash (or the Net Agreed Value of any distributions in kind) in
connection with the dissolution and liquidation of the Partnership theretofore made in respect of
an Initial Common Unit, adjusted as the General Partner determines to be appropriate to give effect
to any distribution, subdivision or combination of such Units.

     “U.S. GAAP” means United States generally accepted accounting principles consistently applied.

     “WES” means Williams Energy Services, LLC, a Delaware limited liability company, and any
successors thereto.

     “Williams” means The Williams Companies, Inc., a Delaware corporation, and any successors
thereto.

     “Withdrawal Opinion of Counsel” has the meaning assigned to such term in Section 11.1(b).

     “Working Capital Borrowings” means borrowings used solely for working capital purposes or to
pay distributions to Partners made pursuant to a credit facility or other
arrangement to the extent such borrowings are required to be reduced to a relatively small
amount each year (or for the year in which the Initial Offering is consummated, the 12-month period
beginning on the Closing Date) for an economically meaningful period of time.

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Section 1.2 Construction.

     Unless the context requires otherwise: (a) any pronoun used in this Agreement shall include
the corresponding masculine, feminine or neuter forms, and the singular form of nouns, pronouns and
verbs shall include the plural and vice versa; (b) references to Articles and Sections refer to
Articles and Sections of this Agreement; and (c) the term “include” or “includes” means includes,
without limitation, and “including” means including, without limitation.

ARTICLE II

ORGANIZATION

Section 2.1 Formation.

     The General Partner and the Organizational Limited Partner have previously formed the
Partnership as a limited partnership pursuant to the provisions of the Delaware Act and hereby
amend and restate the original Agreement of Limited Partnership of Williams Partners L.P. in its
entirety. This amendment and restatement shall become effective on the date of this Agreement.
Except as expressly provided to the contrary in this Agreement, the rights, duties (including
fiduciary duties), liabilities and obligations of the Partners and the administration, dissolution
and termination of the Partnership shall be governed by the Delaware Act. All Partnership
Interests shall constitute personal property of the owner thereof for all purposes and a Partner
has no interest in specific Partnership property.

Section 2.2 Name.

     The name of the Partnership shall be “Williams Partners L.P.” The Partnership’s business may
be conducted under any other name or names as determined by the General Partner, including the name
of the General Partner. The words “Limited Partnership,” “L.P.,” “Ltd.” or similar words or
letters shall be included in the Partnership’s name where necessary for the purpose of complying
with the laws of any jurisdiction that so requires. The General Partner may change the name of the
Partnership at any time and from time to time and shall notify the Limited Partners of such change
in the next regular communication to the Limited Partners.

Section 2.3 Registered Office; Registered Agent; Principal Office; Other Offices.

     Unless and until changed by the General Partner, the registered office of the Partnership in
the State of Delaware shall be located at 1209 Orange Street, Wilmington, New Castle County,
Delaware 19801, and the registered agent for service of process on the Partnership in the State of
Delaware at such registered office shall be Corporation Trust Center. The principal office of the
Partnership shall be located at One Williams Center, Suite 4100, Tulsa, Oklahoma 74172-0172 or such
other place as the General Partner may from time to time designate by notice to the Limited
Partners. The Partnership may maintain offices at such other place or places within or outside the
State of Delaware as the General Partner determines to be necessary or appropriate. The address of
the General Partner shall be One Williams Center, Suite 4100, Tulsa, Oklahoma 74172-0172 or such
other place as the General Partner may from time to time designate by notice to the Limited
Partners.

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Section 2.4 Purpose and Business.

     The purpose and nature of the business to be conducted by the Partnership shall be to (a)
engage directly in, or enter into or form, hold or dispose of any corporation, partnership, joint
venture, limited liability company or other arrangement to engage indirectly in, any business
activity that is approved by the General Partner and that lawfully may be conducted by a limited
partnership organized pursuant to the Delaware Act and, in connection therewith, to exercise all of
the rights and powers conferred upon the Partnership pursuant to the agreements relating to such
business activity, and (b) do anything necessary or appropriate to the foregoing, including the
making of capital contributions or loans to a Group Member; provided, however, that the General
Partner shall not cause the Partnership to engage, directly or indirectly, in any business activity
that the General Partner determines would cause the Partnership to be treated as an association
taxable as a corporation or otherwise taxable as an entity for federal income tax purposes. To the
fullest extent permitted by law, the General Partner shall have no duty or obligation to propose or
approve, and may decline to propose or approve, the conduct by the Partnership of any business free
of any fiduciary duty or obligation whatsoever to the Partnership or any Limited Partner and, in
declining to so propose or approve, shall not be required to act in good faith or pursuant to any
other standard imposed by this Agreement, any Group Member Agreement, any other agreement
contemplated hereby or under the Delaware Act or any other law, rule or regulation or at equity.

Section 2.5 Powers.

     The Partnership shall be empowered to do any and all acts and things necessary and appropriate
for the furtherance and accomplishment of the purposes and business described in Section 2.4 and
for the protection and benefit of the Partnership.

Section 2.6 Power of Attorney.

     (a) Each Limited Partner hereby constitutes and appoints the General Partner and, if a
Liquidator shall have been selected pursuant to Section 12.3, the Liquidator (and any successor to
the Liquidator by merger, transfer, assignment, election or otherwise) and each of their authorized
officers and attorneys-in-fact, as the case may be, with full power of substitution, as his true
and lawful agent and attorney-in-fact, with full power and authority in his name, place and stead,
to:

     (i) execute, swear to, acknowledge, deliver, file and record in the appropriate public
offices (A) all certificates, documents and other instruments (including this Agreement and
the Certificate of Limited Partnership and all amendments or restatements hereof or thereof)
that the General Partner or the Liquidator determines to be necessary or appropriate to
form, qualify or continue the existence or qualification of the Partnership as a limited
partnership (or a partnership in which the limited partners have limited liability) in the
State of Delaware and in all other jurisdictions in which the Partnership may conduct
business or own property; (B) all certificates, documents and other instruments that the
General Partner or the Liquidator determines to be necessary or appropriate to reflect, in
accordance with its terms, any amendment, change, modification or restatement of this
Agreement; (C) all certificates, documents and other instruments

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(including conveyances and a certificate of cancellation) that the General Partner or the Liquidator determines to be
necessary or appropriate to reflect the dissolution and liquidation of the Partnership
pursuant to the terms of this Agreement; (D) all certificates, documents and other
instruments relating to the admission, withdrawal, removal or substitution of any Partner
pursuant to, or other events described in, Article IV, Article X, Article XI or Article XII;
(E) all certificates, documents and other instruments relating to the determination of the
rights, preferences and privileges of any class or series of Partnership Securities issued
pursuant to Section 5.6; and (F) all certificates, documents and other instruments
(including agreements and a certificate of merger) relating to a merger, consolidation or
conversion of the Partnership pursuant to Article XIV; and

     (ii) execute, swear to, acknowledge, deliver, file and record all ballots, consents,
approvals, waivers, certificates, documents and other instruments that the General Partner
or the Liquidator determines to be necessary or appropriate to (A) make, evidence, give,
confirm or ratify any vote, consent, approval, agreement or other action that is made or
given by the Partners hereunder or is consistent with the terms of this Agreement or (B)
effectuate the terms or intent of this Agreement; provided, that when required by Section
13.3 or any other provision of this Agreement that establishes a percentage of the Limited
Partners or of the Limited Partners of any class or series required to take any action, the
General Partner and the Liquidator may exercise the power of attorney made in this Section
2.6(a)(ii) only after the necessary vote, consent or approval of the Limited Partners or of
the Limited Partners of such class or series, as applicable.

Nothing contained in this Section 2.6(a) shall be construed as authorizing the General Partner to
amend this Agreement except in accordance with Article XIII or as may be otherwise expressly
provided for in this Agreement.

     (b) The foregoing power of attorney is hereby declared to be irrevocable and a power coupled
with an interest, and it shall survive and, to the maximum extent permitted by law, not be affected
by the subsequent death, incompetency, disability, incapacity, dissolution, bankruptcy or
termination of any Limited Partner and the transfer of all or any portion of such Limited Partner’s
Limited Partner Interest and shall extend to such Limited Partner’s heirs, successors, assigns and
personal representatives. Each such Limited Partner hereby agrees to be bound by any
representation made by the General Partner or the Liquidator acting in good faith pursuant to such
power of attorney; and each such Limited Partner, to the maximum extent permitted by law, hereby
waives any and all defenses that may be available to contest, negate or disaffirm the action of the
General Partner or the Liquidator taken in good faith under such power of attorney. Each Limited
Partner shall execute and deliver to the General Partner or the Liquidator, within 15 days after
receipt of the request therefor, such further designation, powers of attorney and other instruments
as the General Partner or the Liquidator may request in order to effectuate this Agreement and the
purposes of the Partnership.

Section 2.7 Term.

     The term of the Partnership commenced upon the filing of the Certificate of Limited
Partnership in accordance with the Delaware Act and shall continue in existence until the

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dissolution of the Partnership in accordance with the provisions of Article XII. The existence of
the Partnership as a separate legal entity shall continue until the cancellation of the Certificate
of Limited Partnership as provided in the Delaware Act.

Section 2.8 Title to Partnership Assets.

     Title to Partnership assets, whether real, personal or mixed and whether tangible or
intangible, shall be deemed to be owned by the Partnership as an entity, and no Partner,
individually or collectively, shall have any ownership interest in such Partnership assets or any
portion thereof. Title to any or all of the Partnership assets may be held in the name of the
Partnership, the General Partner, one or more of its Affiliates or one or more nominees, as the
General Partner may determine. The General Partner hereby declares and warrants that any
Partnership assets for which record title is held in the name of the General Partner or one or more
of its Affiliates or one or more nominees shall be held by the General Partner or such Affiliate or
nominee for the use and benefit of the Partnership in accordance with the provisions of this
Agreement; provided, however, that the General Partner shall use reasonable efforts to cause record
title to such assets (other than those assets in respect of which the General Partner determines
that the expense and difficulty of conveyancing makes transfer of record title to the Partnership
impracticable) to be vested in the Partnership as soon as reasonably practicable; provided,
further, that, prior to the withdrawal or removal of the General Partner or as soon thereafter as
practicable, the General Partner shall use reasonable efforts to effect the transfer of record
title to the Partnership and, prior to any such transfer, will provide for the use of such assets
in a manner satisfactory to the General Partner. All Partnership assets shall be recorded as
the property of the Partnership in its books and records, irrespective of the name in which
record title to such Partnership assets is held.

ARTICLE III

RIGHTS OF LIMITED PARTNERS

Section 3.1 Limitation of Liability.

     The Limited Partners and assignees shall have no liability under this Agreement except as
expressly provided in this Agreement or the Delaware Act.

Section 3.2 Management of Business.

     No Limited Partner, in its capacity as such, shall participate in the operation, management or
control (within the meaning of the Delaware Act) of the Partnership’s business, transact any
business in the Partnership’s name or have the power to sign documents for or otherwise bind the
Partnership. Any action taken by any Affiliate of the General Partner or any officer, director,
employee, manager, member, general partner, agent or trustee of the General Partner or any of its
Affiliates, or any officer, director, employee, manager, member, general partner, agent or trustee
of a Group Member, in its capacity as such, shall not be deemed to be participation in the control
of the business of the Partnership by a limited partner of the Partnership (within the meaning of
Section 17-303(a) of the Delaware Act) and shall not affect, impair or eliminate the limitations on
the liability of the Limited Partners or assignees under this Agreement.

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Section 3.3 Outside Activities of the Limited Partners.

     Subject to the provisions of Section 7.5, which shall continue to be applicable to the Persons
referred to therein, regardless of whether such Persons shall also be Limited Partners, any Limited
Partner shall be entitled to and may have business interests and engage in business activities in
addition to those relating to the Partnership, including business interests and activities in
direct competition with the Partnership Group. Neither the Partnership nor any of the other
Partners shall have any rights by virtue of this Agreement in any business ventures of any Limited
Partner.

Section 3.4 Rights of Limited Partners.

     (a) In addition to other rights provided by this Agreement or by applicable law, and except as
limited by Section 3.4(b), each Limited Partner shall have the right, for a purpose reasonably
related to such Limited Partner’s interest as a Limited Partner in the Partnership,
upon reasonable written demand stating the purpose of such demand and at such Limited
Partner’s own expense:

     (i) promptly after becoming available, to obtain a copy of the Partnership’s federal,
state and local income tax returns for each year;

     (ii) to obtain a current list of the name and last known business, residence or mailing
address of each Partner;

     (iii) to obtain true and full information regarding the amount of cash and a
description and statement of the Net Agreed Value of any other Capital Contribution by each
Partner and which each Partner has agreed to contribute in the future, and the date on which
each became a Partner;

     (iv) to obtain a copy of this Agreement and the Certificate of Limited Partnership and
all amendments thereto, together with a copy of the executed copies of all powers of
attorney pursuant to which this Agreement, the Certificate of Limited Partnership and all
amendments thereto have been executed;

     (v) to obtain true and full information regarding the status of the business and
financial condition of the Partnership Group; and

     (vi) to obtain such other information regarding the affairs of the Partnership as is
just and reasonable.

     (b) The General Partner may keep confidential from the Limited Partners, for such period of
time as the General Partner deems reasonable, (i) any information that the General Partner
reasonably believes to be in the nature of trade secrets or (ii) other information the disclosure
of which the General Partner in good faith believes (A) is not in the best interests of the
Partnership Group, (B) could damage the Partnership Group or its business or (C) that any Group
Member is required by law or by agreement with any third party to keep confidential (other than
agreements with Affiliates of the Partnership the primary purpose of which is to circumvent the
obligations set forth in this Section 3.4).

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ARTICLE IV

CERTIFICATES; RECORD HOLDERS; TRANSFER OF

PARTNERSHIP INTERESTS; REDEMPTION OF PARTNERSHIP INTERESTS

Section 4.1 Certificates.

     Upon the Partnership’s issuance of Common Units or Subordinated Units to any Person, the
Partnership shall issue, upon the request of such Person, one or more Certificates in the name of
such Person evidencing the number of such Units being so issued. In addition, (a) upon the General
Partner’s request, the Partnership shall issue to it one or more Certificates in the name of the
General Partner evidencing its General Partner Units and (b) upon the request of any Person
owning Incentive Distribution Rights or any other Partnership Securities other than Common
Units or Subordinated Units, the Partnership shall issue to such Person one or more certificates
evidencing such Incentive Distribution Rights or other Partnership Securities other than Common
Units or Subordinated Units. Certificates shall be executed on behalf of the Partnership by the
Chairman of the Board, President or any Executive Vice President or Vice President and the Chief
Financial Officer or the Secretary or any Assistant Secretary of the General Partner. No Common
Unit Certificate shall be valid for any purpose until it has been countersigned by the Transfer
Agent; provided, however, that if the General Partner elects to issue Common Units in global form,
the Common Unit Certificates shall be valid upon receipt of a certificate from the Transfer Agent
certifying that the Common Units have been duly registered in accordance with the directions of the
Partnership. Subject to the requirements of Section 6.7(c), the Partners holding Certificates
evidencing Subordinated Units may exchange such Certificates for Certificates evidencing Common
Units on or after the date on which such Subordinated Units are converted into Common Units
pursuant to the terms of Section 5.7.

Section 4.2 Mutilated, Destroyed, Lost or Stolen Certificates.

     (a) If any mutilated Certificate is surrendered to the Transfer Agent, the appropriate
officers of the General Partner on behalf of the Partnership shall execute, and the Transfer Agent
shall countersign and deliver in exchange therefor, a new Certificate evidencing the same number
and type of Partnership Securities as the Certificate so surrendered.

     (b) The appropriate officers of the General Partner on behalf of the Partnership shall execute
and deliver, and the Transfer Agent shall countersign, a new Certificate in place of any
Certificate previously issued if the Record Holder of the Certificate:

     (i) makes proof by affidavit, in form and substance satisfactory to the General
Partner, that a previously issued Certificate has been lost, destroyed or stolen;

     (ii) requests the issuance of a new Certificate before the General Partner has notice
that the Certificate has been acquired by a purchaser for value in good faith and without
notice of an adverse claim;

     (iii) if requested by the General Partner, delivers to the General Partner a bond, in
form and substance satisfactory to the General Partner, with surety or sureties and with
fixed or open penalty as the General Partner may direct to indemnify the Partnership, the

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Partners, the General Partner and the Transfer Agent against any claim that may be made on
account of the alleged loss, destruction or theft of the Certificate; and

     (iv) satisfies any other reasonable requirements imposed by the General Partner.

     If a Limited Partner fails to notify the General Partner within a reasonable period of time
after he has notice of the loss, destruction or theft of a Certificate, and a transfer of the
Limited Partner Interests represented by the Certificate is registered before the Partnership, the
General Partner or the Transfer Agent receives such notification, the Limited Partner shall be
precluded from making any claim against the Partnership, the General Partner or the Transfer Agent for
such transfer or for a new Certificate.

     (c) As a condition to the issuance of any new Certificate under this Section 4.2, the General
Partner may require the payment of a sum sufficient to cover any tax or other governmental charge
that may be imposed in relation thereto and any other expenses (including the fees and expenses of
the Transfer Agent) reasonably connected therewith.

Section 4.3 Record Holders.

     The Partnership shall be entitled to recognize the Record Holder as the Partner with respect
to any Partnership Interest and, accordingly, shall not be bound to recognize any equitable or
other claim to, or interest in, such Partnership Interest on the part of any other Person,
regardless of whether the Partnership shall have actual or other notice thereof, except as
otherwise provided by law or any applicable rule, regulation, guideline or requirement of any
National Securities Exchange on which such Partnership Interests are listed or admitted to trading.
Without limiting the foregoing, when a Person (such as a broker, dealer, bank, trust company or
clearing corporation or an agent of any of the foregoing) is acting as nominee, agent or in some
other representative capacity for another Person in acquiring and/or holding Partnership Interests,
as between the Partnership on the one hand, and such other Persons on the other, such
representative Person shall be the Record Holder of such Partnership Interest.

Section 4.4 Transfer Generally.

     (a) The term “transfer,” when used in this Agreement with respect to a Partnership Interest,
shall be deemed to refer to a transaction (i) by which the General Partner assigns its General
Partner Units to another Person or by which a holder of Incentive Distribution Rights assigns its
Incentive Distribution Rights to another Person, and includes a sale, assignment, gift, pledge,
encumbrance, hypothecation, mortgage, exchange or any other disposition by law or otherwise or (ii)
by which the holder of a Limited Partner Interest (other than an Incentive Distribution Right)
assigns such Limited Partner Interest to another Person who is or becomes a Limited Partner, and
includes a sale, assignment, gift, exchange or any other disposition by law or otherwise, including
any transfer upon foreclosure of any pledge, encumbrance, hypothecation or mortgage.

     (b) No Partnership Interest shall be transferred, in whole or in part, except in accordance
with the terms and conditions set forth in this Article IV. Any transfer or purported transfer of
a Partnership Interest not made in accordance with this Article IV shall be null and void.

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     (c) Nothing contained in this Agreement shall be construed to prevent a disposition by any
stockholder, member, partner or other owner of the General Partner of any or all of the shares of
stock, membership interests, partnership interests or other ownership interests in the General
Partner.

Section 4.5 Registration and Transfer of Limited Partner Interests.

     (a) The General Partner shall keep or cause to be kept on behalf of the Partnership a register
in which, subject to such reasonable regulations as it may prescribe and subject to the provisions
of Section 4.5(b), the Partnership will provide for the registration and transfer of Limited
Partner Interests. The Transfer Agent is hereby appointed registrar and transfer agent for the
purpose of registering Common Units and transfers of such Common Units as herein provided. The
Partnership shall not recognize transfers of Certificates evidencing Limited Partner Interests
unless such transfers are effected in the manner described in this Section 4.5. Upon surrender of
a Certificate for registration of transfer of any Limited Partner Interests evidenced by a
Certificate, and subject to the provisions of Section 4.5(b), the appropriate officers of the
General Partner on behalf of the Partnership shall execute and deliver, and in the case of Common
Units, the Transfer Agent shall countersign and deliver, in the name of the holder or the
designated transferee or transferees, as required pursuant to the holder’s instructions, one or
more new Certificates evidencing the same aggregate number and type of Limited Partner Interests as
was evidenced by the Certificate so surrendered.

     (b) Except as otherwise provided in Section 4.9, the General Partner shall not recognize any
transfer of Limited Partner Interests until the Certificates evidencing such Limited Partner
Interests are surrendered for registration of transfer. No charge shall be imposed by the General
Partner for such transfer; provided, that as a condition to the issuance of any new Certificate
under this Section 4.5, the General Partner may require the payment of a sum sufficient to cover
any tax or other governmental charge that may be imposed with respect thereto.

     (c) Subject to (i) the foregoing provisions of this Section 4.5, (ii) Section 4.3, (iii)
Section 4.8, (iv) with respect to any class or series of Limited Partner Interests, the provisions
of any statement of designations or amendment to this Agreement establishing such class or series,
(v) any contractual provisions binding on any Limited Partner and (vi) provisions of applicable law
including the Securities Act, Limited Partner Interests (other than the Incentive Distribution
Rights) shall be freely transferable.

     (d) The General Partner and its Affiliates shall have the right at any time to transfer their
Subordinated Units and Common Units (whether issued upon conversion of the Subordinated Units or
otherwise) to one or more Persons.

Section 4.6 Transfer of the General Partner’s General Partner Interest.

     (a) Subject to Section 4.6(c) below, prior to June 30, 2015, the General Partner shall not
transfer all or any part of its General Partner Interest (represented by General Partner Units) to
a Person unless such transfer (i) has been approved by the prior written consent or vote of the
holders of at least a majority of the Outstanding Common Units (excluding Common Units held by the
General Partner and its Affiliates) or (ii) is of all, but not less than all, of its General

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Partner Interest to (A) an Affiliate of the General Partner (other than an individual) or (B)
another Person (other than an individual) in connection with the merger or consolidation of
the General Partner with or into such other Person or the transfer by the General Partner of
all or substantially all of its assets to such other Person.

     (b) Subject to Section 4.6(c) below, on or after June 30, 2015, the General Partner may
transfer all or any of its General Partner Interest without Unitholder approval.

     (c) Notwithstanding anything herein to the contrary, no transfer by the General Partner of all
or any part of its General Partner Interest to another Person shall be permitted unless (i) the
transferee agrees to assume the rights and duties of the General Partner under this Agreement and
to be bound by the provisions of this Agreement, (ii) the Partnership receives an Opinion of
Counsel that such transfer would not result in the loss of limited liability of any Limited Partner
or of any limited partner or cause the Partnership to be treated as an association taxable as a
corporation or otherwise to be taxed as an entity for federal income tax purposes (to the extent
not already so treated or taxed) and (iii) such transferee also agrees to purchase all (or the
appropriate portion thereof, if applicable) of the partnership or membership interest of the
General Partner as the general partner or managing member, if any, of each other Group Member. In
the case of a transfer pursuant to and in compliance with this Section 4.6, the transferee or
successor (as the case may be) shall, subject to compliance with the terms of Section 10.3, be
admitted to the Partnership as the General Partner immediately prior to the transfer of the General
Partner Interest, and the business of the Partnership shall continue without dissolution.

Section 4.7 Transfer of Incentive Distribution Rights.

     Prior to June 30, 2015, a holder of Incentive Distribution Rights may transfer any or all of
the Incentive Distribution Rights held by such holder without any consent of the Unitholders to (a)
an Affiliate of such holder (other than an individual) or (b) another Person (other than an
individual) in connection with (i) the merger or consolidation of such holder of Incentive
Distribution Rights with or into such other Person, (ii) the transfer by such holder of all or
substantially all of its assets to such other Person or (iii) the sale of all of the ownership
interests in such holder. Any other transfer of the Incentive Distribution Rights prior to June
30, 2015 shall require the prior approval of holders of at least a majority of the Outstanding
Common Units (excluding Common Units held by the General Partner and its Affiliates). On or after
June 30, 2015, the General Partner or any other holder of Incentive Distribution Rights may
transfer any or all of its Incentive Distribution Rights without Unitholder approval.
Notwithstanding anything herein to the contrary, no transfer of Incentive Distribution Rights to
another Person shall be permitted unless the transferee agrees to be bound by the provisions of
this Agreement.

Section 4.8 Restrictions on Transfers.

     (a) Except as provided in Section 4.8(d) below, but notwithstanding the other provisions of
this Article IV, no transfer of any Partnership Interests shall be made if such transfer would (i)
violate the then applicable federal or state securities laws or rules and regulations of the
Commission, any state securities commission or any other governmental authority with
jurisdiction over such transfer, (ii) terminate the existence or qualification of the
Partnership

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under the laws of the jurisdiction of its formation or (iii) cause the Partnership to
be treated as an association taxable as a corporation or otherwise to be taxed as an entity for
federal income tax purposes (to the extent not already so treated or taxed).

     (b) The General Partner may impose restrictions on the transfer of Partnership Interests if it
receives an Opinion of Counsel that such restrictions are necessary to avoid a significant risk of
the Partnership becoming taxable as a corporation or otherwise becoming taxable as an entity for
federal income tax purposes. The General Partner may impose such restrictions by amending this
Agreement; provided, however, that any amendment that would result in the delisting or suspension
of trading of any class of Limited Partner Interests on the principal National Securities Exchange
on which such class of Limited Partner Interests is then listed or admitted to trading must be
approved, prior to such amendment being effected, by the holders of at least a majority of the
Outstanding Limited Partner Interests of such class.

     (c) The transfer of a Subordinated Unit that has converted into a Common Unit shall be subject
to the restrictions imposed by Section 6.7(c).

     (d) Nothing contained in this Article IV, or elsewhere in this Agreement, shall preclude the
settlement of any transactions involving Partnership Interests entered into through the facilities
of any National Securities Exchange on which such Partnership Interests are listed or admitted to
trading.

     (e) In the event that any Partnership Interest is evidenced in certificated form, each such
certificate shall bear a conspicuous legend in substantially the following form:

THE HOLDER OF THIS SECURITY ACKNOWLEDGES FOR THE BENEFIT OF WILLIAMS PARTNERS L.P. THAT THIS
SECURITY MAY NOT BE SOLD, OFFERED, RESOLD, PLEDGED OR OTHERWISE TRANSFERRED IF SUCH TRANSFER WOULD
(A) VIOLATE THE THEN APPLICABLE FEDERAL OR STATE SECURITIES LAWS OR RULES AND REGULATIONS OF THE
SECURITIES AND EXCHANGE COMMISSION, ANY STATE SECURITIES COMMISSION OR ANY OTHER GOVERNMENTAL
AUTHORITY WITH JURISDICTION OVER SUCH TRANSFER, (B) TERMINATE THE EXISTENCE OR QUALIFICATION OF
WILLIAMS PARTNERS L.P. UNDER THE LAWS OF THE STATE OF DELAWARE, OR (C) CAUSE WILLIAMS PARTNERS L.P.
TO BE TREATED AS AN ASSOCIATION TAXABLE AS A CORPORATION OR OTHERWISE TO BE TAXED AS AN ENTITY FOR
FEDERAL INCOME TAX PURPOSES (TO THE EXTENT NOT ALREADY SO TREATED OR TAXED). WILLIAMS PARTNERS GP
LLC, THE GENERAL PARTNER OF WILLIAMS PARTNERS L.P., MAY IMPOSE ADDITIONAL RESTRICTIONS ON THE
TRANSFER OF THIS SECURITY IF IT RECEIVES AN OPINION OF COUNSEL THAT SUCH RESTRICTIONS ARE NECESSARY
TO AVOID A SIGNIFICANT RISK OF WILLIAMS PARTNERS L.P. BECOMING TAXABLE AS A CORPORATION OR
OTHERWISE BECOMING TAXABLE AS AN ENTITY FOR FEDERAL INCOME TAX PURPOSES. THE RESTRICTIONS SET
FORTH ABOVE SHALL NOT PRECLUDE THE SETTLEMENT OF ANY TRANSACTIONS INVOLVING THIS SECURITY ENTERED
INTO THROUGH THE FACILITIES OF ANY NATIONAL SECURITIES EXCHANGE ON WHICH THIS SECURITY IS LISTED OR ADMITTED TO TRADING.

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Section 4.9 Citizenship Certificates; Non-citizen Assignees.

     (a) If any Group Member is or becomes subject to any federal, state or local law or regulation
that the General Partner determines would create a substantial risk of cancellation or forfeiture
of any property in which the Group Member has an interest based on the nationality, citizenship or
other related status of a Limited Partner, the General Partner may request any Limited Partner to
furnish to the General Partner, within 30 days after receipt of such request, an executed
Citizenship Certification or such other information concerning his nationality, citizenship or
other related status (or, if the Limited Partner is a nominee holding for the account of another
Person, the nationality, citizenship or other related status of such Person) as the General Partner
may request. If a Limited Partner fails to furnish to the General Partner within the
aforementioned 30-day period such Citizenship Certification or other requested information or if
upon receipt of such Citizenship Certification or other requested information the General Partner
determines that a Limited Partner is not an Eligible Citizen, the Limited Partner Interests owned
by such Limited Partner shall be subject to redemption in accordance with the provisions of Section
4.10. In addition, the General Partner may require that the status of any such Limited Partner be
changed to that of a Non-citizen Assignee and, thereupon, the General Partner shall be substituted
for such Non-citizen Assignee as the Limited Partner in respect of the Non-citizen Assignee’s
Limited Partner Interests.

     (b) The General Partner shall, in exercising voting rights in respect of Limited Partner
Interests held by it on behalf of Non-citizen Assignees, distribute the votes in the same ratios as
the votes of Partners (including the General Partner) in respect of Limited Partner Interests other
than those of Non-citizen Assignees are cast, either for, against or abstaining as to the matter.

     (c) Upon dissolution of the Partnership, a Non-citizen Assignee shall have no right to receive
a distribution in kind pursuant to Section 12.4 but shall be entitled to the cash equivalent
thereof, and the Partnership shall provide cash in exchange for an assignment of the Non-citizen
Assignee’s share of any distribution in kind. Such payment and assignment shall be treated for
Partnership purposes as a purchase by the Partnership from the Non-citizen Assignee of his Limited
Partner Interest (representing his right to receive his share of such distribution in kind).

     (d) At any time after he can and does certify that he has become an Eligible Citizen, a
Non-citizen Assignee may, upon application to the General Partner, request that with respect to any
Limited Partner Interests of such Non-citizen Assignee not redeemed pursuant to Section 4.10, such
Non-citizen Assignee be admitted as a Limited Partner, and upon approval of the General Partner,
such Non-citizen Assignee shall be admitted as a Limited Partner and shall no longer constitute a
Non-citizen Assignee and the General Partner shall cease to be deemed to be the Limited Partner in
respect of the Non-citizen Assignee’s Limited Partner Interests.

Section 4.10 Redemption of Partnership Interests of Non-citizen Assignees.

     (a) If at any time a Limited Partner fails to furnish a Citizenship Certification or other
information requested within the 30-day period specified in Section 4.9(a), or if upon receipt of
such Citizenship Certification or other information the General Partner determines, with the advice
of counsel, that a Limited Partner is not an Eligible Citizen, the Partnership may, unless the
Limited Partner establishes to the satisfaction of the General Partner that such Limited

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Partner is an Eligible Citizen or has transferred his Partnership Interests to a Person who is an Eligible
Citizen and who furnishes a Citizenship Certification to the General Partner prior to the date
fixed for redemption as provided below, redeem the Limited Partner Interest of such Limited Partner
as follows:

     (i) The General Partner shall, not later than the 30th day before the date fixed for
redemption, give notice of redemption to the Limited Partner, at his last address designated
on the records of the Partnership or the Transfer Agent, by registered or certified mail,
postage prepaid. The notice shall be deemed to have been given when so mailed. The notice
shall specify the Redeemable Interests, the date fixed for redemption, the place of payment,
that payment of the redemption price will be made upon surrender of the Certificate
evidencing the Redeemable Interests and that on and after the date fixed for redemption no
further allocations or distributions to which the Limited Partner would otherwise be
entitled in respect of the Redeemable Interests will accrue or be made.

     (ii) The aggregate redemption price for Redeemable Interests shall be an amount equal
to the Current Market Price (the date of determination of which shall be the date fixed for
redemption) of Limited Partner Interests of the class to be so redeemed multiplied by the
number of Limited Partner Interests of each such class included among the Redeemable
Interests. The redemption price shall be paid, as determined by the General Partner, in
cash or by delivery of a promissory note of the Partnership in the principal amount of the
redemption price, bearing interest at the rate of 10% annually and payable in three equal
annual installments of principal together with accrued interest, commencing one year after
the redemption date.

     (iii) Upon surrender by or on behalf of the Limited Partner, at the place specified in
the notice of redemption, of the Certificate evidencing the Redeemable Interests, duly
endorsed in blank or accompanied by an assignment duly executed in blank, the Limited
Partner or his duly authorized representative shall be entitled to receive the payment
therefor.

     (iv) After the redemption date, Redeemable Interests shall no longer constitute issued
and Outstanding Limited Partner Interests.

     (b) The provisions of this Section 4.10 shall also be applicable to Limited Partner Interests
held by a Limited Partner as nominee of a Person determined to be other than an Eligible Citizen.

     (c) Nothing in this Section 4.10 shall prevent the recipient of a notice of redemption from
transferring his Limited Partner Interest before the redemption date if such transfer is otherwise
permitted under this Agreement. Upon receipt of notice of such a transfer, the General Partner
shall withdraw the notice of redemption, provided the transferee of such Limited Partner Interest
certifies to the satisfaction of the General Partner that he is an Eligible Citizen. If the
transferee fails to make such certification, such redemption shall be effected from the transferee
on the original redemption date.

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ARTICLE V

CAPITAL CONTRIBUTIONS AND

ISSUANCE OF PARTNERSHIP INTERESTS

Section 5.1 Organizational Contributions.

     In connection with the formation of the Partnership under the Delaware Act, the General
Partner made an initial Capital Contribution to the Partnership in the amount of $20.00, for a 2%
General Partner Interest in the Partnership and has been admitted as the General Partner of the
Partnership, and the Organizational Limited Partner made an initial Capital Contribution to the
Partnership in the amount of $980 for a 98% Limited Partner Interest in the Partnership and has
been admitted as a Limited Partner of the Partnership. As of the Closing Date, the interest of the
Organizational Limited Partner shall be redeemed; and the initial Capital Contribution of the
Organizational Limited Partner shall thereupon be refunded. Ninety-eight percent of any interest
or other profit that may have resulted from the investment or other use of such initial Capital
Contributions shall be allocated and distributed to the Organizational Limited Partner, and the
balance thereof shall be allocated and distributed to the General Partner.

Section 5.2 Contributions by the General Partner and its Affiliates.

     (a) On the Closing Date and pursuant to the Contribution Agreement: (i) the General Partner
shall agree to contribute all of its ownership interest in Carbonate Trend Pipeline LLC to the
Partnership, as a Capital Contribution, in exchange for (A) 285,714 General Partner Units
representing the 2% General Partner Interest, subject to all of the rights, privileges and duties
of the General Partner under this Agreement and (B) the Incentive Distribution Rights; (ii) WES
shall agree to contribute all of its ownership interest in Carbonate Trend Pipeline LLC to the
Partnership, as a Capital Contribution, in exchange for (A) 253,557 Common Units and (B) 887,450
Subordinated Units; (iii) Williams Energy, L.L.C. shall agree to contribute a 23.3% member interest
in Discovery Producer Services LLC to the Partnership, as a Capital Contribution, in exchange for
(A) 715,693 Common Units and (B) 2,504,925 Subordinated Units; (iv) Williams Discovery Pipeline LLC
shall agree to contribute a 16.7% member interest in Discovery Producer Services LLC to the
Partnership, as a Capital Contribution, in exchange for (A) 345,567 Common Units and (B) 1,209,486
Subordinated Units; and (v) Williams Partners Holdings LLC shall agree to contribute all of its
member interests in Mid-Continent Fractionation and Storage, LLC to the Partnership, as a Capital
Contribution, in exchange for (A) 685,183 Common Units and (B) 2,398,139 Subordinated Units.

     (b) Upon the issuance of any additional Limited Partner Interests by the Partnership, the
General Partner may, in exchange for a proportionate number of General Partner Units, make
additional Capital Contributions in an amount equal to the product obtained by multiplying (i)
the quotient determined by dividing (A) the General Partner’s Percentage Interest by (B) 100 less
the General Partner’s Percentage Interest times (ii) the amount contributed to the Partnership by
the Limited Partners in exchange for such additional Limited Partner Interests. Except as set forth
in Section 5.2(c) and Article XII, the General Partner shall not be obligated to make any
additional Capital Contributions to the Partnership.

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     (c) On each date provided for reimbursement of expenses to the General Partner pursuant to
Section 7.4(b), the General Partner shall contribute an amount to the Partnership, as a Capital
Contribution, equal to the amount of any Excess G&A Expenses outstanding on such date.

     (d) Each payment by the General Partner or an Affiliate (other than a Group Member) in
satisfaction of all or any portion of the Environmental Indemnity Obligation shall be treated as a
Capital Contribution to the Partnership by the General Partner in the amount of such payment.

			
	Section 5.3	 	Contributions by Initial Limited Partners and Distributions to the General Partner and
its Affiliates.

     (a) On the Closing Date and pursuant to the Underwriting Agreement, each Underwriter shall
contribute to the Partnership cash in an amount equal to the Issue Price per Initial Common Unit,
multiplied by the number of Common Units specified in the Underwriting Agreement to be purchased by
such Underwriter at the Closing Date. In exchange for such Capital Contributions by the
Underwriters, the Partnership shall issue Common Units to each Underwriter on whose behalf such
Capital Contribution is made in an amount equal to the quotient obtained by dividing (i) the cash
contribution to the Partnership by or on behalf of such Underwriter by (ii) the Issue Price per
Initial Common Unit.

     (b) No Limited Partner Interests will be issued or issuable as of or at the Closing Date other
than (i) the Common Units issuable pursuant to subparagraph (a) hereof in aggregate number equal to
5,000,000, (ii) the 2,000,000 Common Units and 7,000,000 Subordinated Units issuable pursuant to
Section 5.2 hereof, (iii) the Incentive Distribution Rights and (iv) any Common Units issuable
under, or to satisfy the obligations of the Partnership or any of its Affiliates under the Williams
Partners GP LLC Long-Term Incentive Plan. No additional Limited Partner Interests will be issued
in connection with any exercise of the Over-Allotment Option.

Section 5.4 Interest and Withdrawal.

     No interest shall be paid by the Partnership on Capital Contributions. No Partner shall be
entitled to the withdrawal or return of its Capital Contribution, except to the extent, if any,
that distributions made pursuant to this Agreement or upon termination of the Partnership may be
considered as such by law and then only to the extent provided for in this Agreement. Except to
the extent expressly provided in this Agreement, no Partner shall have priority over any other
Partner either as to the return of Capital Contributions or as to profits, losses or distributions.
Any such return shall be a compromise to which all Partners agree within the meaning of Section
17-502(b) of the Delaware Act.

Section 5.5 Capital Accounts.

     (a) The Partnership shall maintain for each Partner (or a beneficial owner of Partnership
Interests held by a nominee in any case in which the nominee has furnished the identity of such
owner to the Partnership in accordance with Section 6031(c) of the Code or any other method
acceptable to the General Partner) owning a Partnership Interest a separate Capital Account with

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respect to such Partnership Interest in accordance with the rules of Treasury Regulation Section
1.704-1(b)(2)(iv). Such Capital Account shall be increased by (i) the amount of all Capital
Contributions made to the Partnership with respect to such Partnership Interest and (ii) all items
of Partnership income and gain (including, without limitation, income and gain exempt from tax)
computed in accordance with Section 5.5(b) and allocated with respect to such Partnership Interest
pursuant to Section 6.1, and decreased by (x) the amount of cash or Net Agreed Value of all actual
and deemed distributions of cash or property made with respect to such Partnership Interest and (y)
all items of Partnership deduction and loss computed in accordance with Section 5.5(b) and
allocated with respect to such Partnership Interest pursuant to Section 6.1.

     (b) For purposes of computing the amount of any item of income, gain, loss or deduction which
is to be allocated pursuant to Article VI and is to be reflected in the Partners’ Capital Accounts,
the determination, recognition and classification of any such item shall be the same as its
determination, recognition and classification for federal income tax purposes (including any method
of depreciation, cost recovery or amortization used for that purpose), provided, that:

     (i) Solely for purposes of this Section 5.5, the Partnership shall be treated as owning
directly its proportionate share (as determined by the General Partner based upon the
provisions of the applicable Group Member Agreement or governing, organizational or similar
documents) of all property owned by (x) any other Group Member classified as a partnership
for federal income tax purposes and (y) any other partnership, limited liability company,
unincorporated business or other entity classified as a partnership for federal income tax
purposes of which a Group Member is, directly or indirectly, a partner.

     (ii) All fees and other expenses incurred by the Partnership to promote the sale of (or
to sell) a Partnership Interest that can neither be deducted nor amortized under Section 709
of the Code, if any, shall, for purposes of Capital Account maintenance, be treated as an
item of deduction at the time such fees and other expenses are incurred and shall be
allocated among the Partners pursuant to Section 6.1.

     (iii) Except as otherwise provided in Treasury Regulation Section 1.704-1(b)(2)(iv)(m),
the computation of all items of income, gain, loss and deduction shall be made without
regard to any election under Section 754 of the Code which may
be made by the Partnership and, as to those items described in Section 705(a)(1)(B) or
705(a)(2)(B) of the Code, without regard to the fact that such items are not includable in
gross income or are neither currently deductible nor capitalized for federal income tax
purposes. To the extent an adjustment to the adjusted tax basis of any Partnership asset
pursuant to Section 734(b) or 743(b) of the Code is required, pursuant to Treasury
Regulation Section 1.704-1(b)(2)(iv)(m), to be taken into account in determining Capital
Accounts, the amount of such adjustment in the Capital Accounts shall be treated as an item
of gain or loss.

     (iv) Any income, gain or loss attributable to the taxable disposition of any
Partnership property shall be determined as if the adjusted basis of such property as of
such date of disposition were equal in amount to the Partnership’s Carrying Value with
respect to such property as of such date.

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     (v) In accordance with the requirements of Section 704(b) of the Code, any deductions
for depreciation, cost recovery or amortization attributable to any Contributed Property
shall be determined as if the adjusted basis of such property on the date it was acquired by
the Partnership were equal to the Agreed Value of such property. Upon an adjustment
pursuant to Section 5.5(d) to the Carrying Value of any Partnership property subject to
depreciation, cost recovery or amortization, any further deductions for such depreciation,
cost recovery or amortization attributable to such property shall be determined (A) as if
the adjusted basis of such property were equal to the Carrying Value of such property
immediately following such adjustment and (B) using a rate of depreciation, cost recovery or
amortization derived from the same method and useful life (or, if applicable, the remaining
useful life) as is applied for federal income tax purposes; provided, however, that, if the
asset has a zero adjusted basis for federal income tax purposes, depreciation, cost recovery
or amortization deductions shall be determined using any method that the General Partner may
adopt.

     (vi) If the Partnership’s adjusted basis in a depreciable or cost recovery property is
reduced for federal income tax purposes pursuant to Section 48(q)(1) or 48(q)(3) of the
Code, the amount of such reduction shall, solely for purposes hereof, be deemed to be an
additional depreciation or cost recovery deduction in the year such property is placed in
service and shall be allocated among the Partners pursuant to Section 6.1. Any restoration
of such basis pursuant to Section 48(q)(2) of the Code shall, to the extent possible, be
allocated in the same manner to the Partners to whom such deemed deduction was allocated.

     (c) (i) A transferee of a Partnership Interest shall succeed to a pro rata portion of the
Capital Account of the transferor relating to the Partnership Interest so transferred.

     (ii) Immediately prior to the transfer of a Subordinated Unit or of a Subordinated Unit
that has converted into a Common Unit pursuant to Section 5.7 by a holder thereof (other
than a transfer to an Affiliate unless the General Partner elects to have this Section
5.5(c)(ii) apply), the Capital Account maintained for such Person with respect to its
Subordinated Units or converted Subordinated Units will (A) first, be allocated to the
Subordinated Units or converted Subordinated Units to be transferred in
an amount equal to the product of (x) the number of such Subordinated Units or
converted Subordinated Units to be transferred and (y) the Per Unit Capital Amount for a
Common Unit, and (B) second, any remaining balance in such Capital Account will be retained
by the transferor, regardless of whether it has retained any Subordinated Units or converted
Subordinated Units. Following any such allocation, the transferor’s Capital Account, if
any, maintained with respect to the retained Subordinated Units or converted Subordinated
Units, if any, will have a balance equal to the amount allocated under clause (B)
hereinabove, and the transferee’s Capital Account established with respect to the
transferred Subordinated Units or converted Subordinated Units will have a balance equal to
the amount allocated under clause (A) hereinabove.

     (d) (i) In accordance with Treasury Regulation Section 1.704-1(b)(2)(iv)(f), on an issuance of
additional Partnership Interests for cash or Contributed Property, the issuance of Partnership
Interests as consideration for the provision of services or the conversion of the

36

 

General Partner’s Combined Interest to Common Units pursuant to Section 11.3(b), the Capital Account of all Partners
and the Carrying Value of each Partnership property immediately prior to such issuance shall be
adjusted upward or downward to reflect any Unrealized Gain or Unrealized Loss attributable to such
Partnership property, as if such Unrealized Gain or Unrealized Loss had been recognized on an
actual sale of each such property immediately prior to such issuance and had been allocated to the
Partners at such time pursuant to Section 6.1 in the same manner as any item of gain or loss
actually recognized during such period would have been allocated. In determining such Unrealized
Gain or Unrealized Loss, the aggregate cash amount and fair market value of all Partnership assets
(including, without limitation, cash or cash equivalents) immediately prior to the issuance of
additional Partnership Interests shall be determined by the General Partner using such method of
valuation as it may adopt; provided, however, that the General Partner, in arriving at such
valuation, must take fully into account the fair market value of the Partnership Interests of all
Partners at such time. The General Partner shall allocate such aggregate value among the assets of
the Partnership (in such manner as it determines) to arrive at a fair market value for individual
properties.

     (ii) In accordance with Treasury Regulation Section 1.704-1(b)(2)(iv)(f), immediately
prior to any actual or deemed distribution to a Partner of any Partnership property (other
than a distribution of cash that is not in redemption or retirement of a Partnership
Interest), the Capital Accounts of all Partners and the Carrying Value of all Partnership
property shall be adjusted upward or downward to reflect any Unrealized Gain or Unrealized
Loss attributable to such Partnership property, as if such Unrealized Gain or Unrealized
Loss had been recognized in a sale of such property immediately prior to such distribution
for an amount equal to its fair market value, and had been allocated to the Partners, at
such time, pursuant to Section 6.1 in the same manner as any item of gain or loss actually
recognized during such period would have been allocated. In determining such Unrealized
Gain or Unrealized Loss the aggregate cash amount and fair market value of all Partnership
assets (including, without limitation, cash or cash equivalents) immediately prior to a
distribution shall (A) in the case of an actual distribution that is not made pursuant to
Section 12.4 or in the case of a deemed distribution, be determined and allocated in the
same manner as that provided in Section 5.5(d)(i) or (B) in the case of a liquidating
distribution pursuant to Section 12.4,
be determined and allocated by the Liquidator using such method of valuation as it may
adopt.

Section 5.6 Issuances of Additional Partnership Securities.

     (a) The Partnership may issue additional Partnership Securities and options, rights, warrants
and appreciation rights relating to the Partnership Securities for any Partnership purpose at any
time and from time to time to such Persons for such consideration and on such terms and conditions
as the General Partner shall determine, all without the approval of any Limited Partners.

     (b) Each additional Partnership Security authorized to be issued by the Partnership pursuant
to Section 5.6(a) may be issued in one or more classes, or one or more series of any such classes,
with such designations, preferences, rights, powers and duties (which may be senior to existing
classes and series of Partnership Securities), as shall be fixed by the General Partner,

37

 

including (i) the right to share Partnership profits and losses or items thereof; (ii) the right to share in
Partnership distributions; (iii) the rights upon dissolution and liquidation of the Partnership;
(iv) whether, and the terms and conditions upon which, the Partnership may redeem the Partnership
Security; (v) whether such Partnership Security is issued with the privilege of conversion or
exchange and, if so, the terms and conditions of such conversion or exchange; (vi) the terms and
conditions upon which each Partnership Security will be issued, evidenced by certificates and
assigned or transferred; (vii) the method for determining the Percentage Interest as to such
Partnership Security; and (viii) the right, if any, of each such Partnership Security to vote on
Partnership matters, including matters relating to the relative rights, preferences and privileges
of such Partnership Security.

     (c) The General Partner shall take all actions that it determines to be necessary or
appropriate in connection with (i) each issuance of Partnership Securities and options, rights,
warrants and appreciation rights relating to Partnership Securities pursuant to this Section 5.6,
(ii) the conversion of the General Partner Interest (represented by General Partner Units) or any
Incentive Distribution Rights into Units pursuant to the terms of this Agreement, (iii) the
admission of Additional Limited Partners and (iv) all additional issuances of Partnership
Securities. The General Partner shall determine the relative rights, powers and duties of the
holders of the Units or other Partnership Securities being so issued. The General Partner shall do
all things necessary to comply with the Delaware Act and is authorized and directed to do all
things that it determines to be necessary or appropriate in connection with any future issuance of
Partnership Securities or in connection with the conversion of the General Partner Interest or any
Incentive Distribution Rights into Units pursuant to the terms of this Agreement, including
compliance with any statute, rule, regulation or guideline of any federal, state or other
governmental agency or any National Securities Exchange on which the Units or other Partnership
Securities are listed or admitted to trading.

     (d) No fractional Units shall be issued by the Partnership.

Section 5.7 Conversion of Subordinated Units.

     (a) All of the Subordinated Units shall convert into Common Units on a one-for-one basis on
the second Business Day following the distribution of Available Cash to Partners pursuant to
Section 6.3(a) in respect of the final Quarter of the Subordination Period.

     (b) Notwithstanding Section 5.7(a) above, the Subordination Period shall terminate and all
Outstanding Subordinated Units shall convert into Common Units on a one-for-one basis on the second
Business Day following the distribution of Available Cash to Partners pursuant to Section 6.3(a) in
respect of any Quarter in respect of which:

          (i) distributions under Section 6.4 in respect of all Outstanding Common Units and
Subordinated Units and any other Outstanding Units that are senior or equal in right of
distribution to the Subordinated Units with respect to the four-Quarter period immediately
preceding the date of such distribution equaled or exceeded the sum of the Third Target
Distribution on all of the Outstanding Common Units and Subordinated Units and any other
Outstanding Units that are senior or equal in right of distribution to the Subordinated
Units during such period;

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          (ii) the Adjusted Operating Surplus generated during the four-Quarter period
immediately preceding the date of such distribution equaled or exceeded the sum of the Third
Target Distribution on all of the Common Units, Subordinated Units and any other Units that
are senior or equal in right of distribution to the Subordinated Units that were Outstanding
during such period on a Fully Diluted Basis, plus the related distribution on the General
Partner Units during such period; and

          (iii) the Cumulative Common Unit Arrearage on all of the Common Units is zero.

     (c) Notwithstanding any other provision of this Agreement, all the Subordinated Units will
automatically convert into Common Units on a one-for-one basis as set forth in, and pursuant to the
terms of, Section 11.4.

     (d) A Subordinated Unit that has converted into a Common Unit shall be subject to the
provisions of Section 6.7(b).

Section 5.8 Limited Preemptive Right.

     Except as provided in this Section 5.8 and in Section 5.2(b), no Person shall have any
preemptive, preferential or other similar right with respect to the issuance of any Partnership
Security, whether unissued, held in the treasury or hereafter created. The General Partner shall
have the right, which it may from time to time assign in whole or in part to any of its Affiliates,
to purchase Partnership Securities from the Partnership whenever, and on the same terms that, the
Partnership issues Partnership Securities to Persons other than the General Partner and its
Affiliates, to the extent necessary to maintain the Percentage Interests of the General
Partner and its Affiliates equal to that which existed immediately prior to the issuance of such
Partnership Securities.

Section 5.9 Splits and Combinations.

     (a) Subject to Section 5.9(d), Section 6.6 and Section 6.9 (dealing with adjustments of
distribution levels), the Partnership may make a Pro Rata distribution of Partnership Securities to
all Record Holders or may effect a subdivision or combination of Partnership Securities so long as,
after any such event, each Partner shall have the same Percentage Interest in the Partnership as
before such event, and any amounts calculated on a per Unit basis (including any Common Unit
Arrearage or Cumulative Common Unit Arrearage) or stated as a number of Units (including the number
of Subordinated Units that may convert prior to the end of the Subordination Period) are
proportionately adjusted.

     (b) Whenever such a distribution, subdivision or combination of Partnership Securities is
declared, the General Partner shall select a Record Date as of which the distribution, subdivision
or combination shall be effective and shall send notice thereof at least 20 days prior to such
Record Date to each Record Holder as of a date not less than 10 days prior to the date of such
notice. The General Partner also may cause a firm of independent public accountants selected by

39

 

it to calculate the number of Partnership Securities to be held by each Record Holder after giving
effect to such distribution, subdivision or combination. The General Partner shall be entitled to
rely on any certificate provided by such firm as conclusive evidence of the accuracy of such
calculation.

     (c) Promptly following any such distribution, subdivision or combination, the Partnership may
issue Certificates to the Record Holders of Partnership Securities as of the applicable Record Date
representing the new number of Partnership Securities held by such Record Holders, or the General
Partner may adopt such other procedures that it determines to be necessary or appropriate to
reflect such changes. If any such combination results in a smaller total number of Partnership
Securities Outstanding, the Partnership shall require, as a condition to the delivery to a Record
Holder of such new Certificate, the surrender of any Certificate held by such Record Holder
immediately prior to such Record Date.

     (d) The Partnership shall not issue fractional Units upon any distribution, subdivision or
combination of Units. If a distribution, subdivision or combination of Units would result in the
issuance of fractional Units but for the provisions of this Section 5.9(d), each fractional Unit
shall be rounded to the nearest whole Unit (and a 0.5 Unit shall be rounded to the next higher
Unit).

Section 5.10 Fully Paid and Non-Assessable Nature of Limited Partner Interests.

     All Limited Partner Interests issued pursuant to, and in accordance with the requirements of,
this Article V shall be fully paid and non-assessable Limited Partner Interests in the
Partnership, except as such non-assessability may be affected by Section 17-607 of the
Delaware Act.

ARTICLE VI

ALLOCATIONS AND DISTRIBUTIONS

Section 6.1 Allocations for Capital Account Purposes.

     For purposes of maintaining the Capital Accounts and in determining the rights of the Partners
among themselves, the Partnership’s items of income, gain, loss and deduction (computed in
accordance with Section 5.5(b)) shall be allocated among the Partners in each taxable year (or
portion thereof) as provided herein below.

     (a) Net Income. After giving effect to the special allocations set forth in Section 6.1(d),
Net Income for each taxable year and all items of income, gain, loss and deduction taken into
account in computing Net Income for such taxable year shall be allocated as follows:

          (i) First, 100% to the General Partner, in an amount equal to the aggregate Net Losses
allocated to the General Partner pursuant to Section 6.1(b)(iii) for all previous taxable
years until the aggregate Net Income allocated to the General Partner pursuant to this
Section 6.1(a)(i) for the current taxable year and all previous taxable years is equal to
the aggregate Net Losses allocated to the General Partner pursuant to Section 6.1(b)(iii)
for all previous taxable years;

40

 

          (ii) Second, 100% to the General Partner and the Unitholders, in accordance with their
respective Percentage Interests, until the aggregate Net Income allocated to such Partners
pursuant to this Section 6.1(a)(ii) for the current taxable year and all previous taxable
years is equal to the aggregate Net Losses allocated to such Partners pursuant to Section
6.1(b)(ii) for all previous taxable years; and

          (iii) Third, the balance, if any, 100% to the General Partner and the Unitholders, in
accordance with their respective Percentage Interests.

     (b) Net Losses. After giving effect to the special allocations set forth in Section 6.1(d),
Net Losses for each taxable period and all items of income, gain, loss and deduction taken into
account in computing Net Losses for such taxable period shall be allocated as follows:

          (i) First, 100% to the General Partner and the Unitholders, in accordance with their
respective Percentage Interests, until the aggregate Net Losses allocated pursuant to this
Section 6.1(b)(i) for the current taxable year and all previous taxable years is equal to
the aggregate Net Income allocated to such Partners pursuant to Section 6.1(a)(iii) for all
previous taxable years; provided, that the Net Losses shall not be allocated pursuant to
this Section 6.1(b)(i) to the extent that such allocation would cause any Unitholder to have
a deficit balance in its Adjusted Capital Account at the end of such taxable year (or
increase any existing deficit balance in its Adjusted Capital Account);

          (ii) Second, 100% to the General Partner and the Unitholders, in accordance with their
respective Percentage Interests; provided, that Net Losses shall not be allocated pursuant
to this Section 6.1(b)(ii) to the extent that such allocation would cause any Unitholder to
have a deficit balance in its Adjusted Capital Account at the end of such taxable year (or
increase any existing deficit balance in its Adjusted Capital Account); and

          (iii) Third, the balance, if any, 100% to the General Partner.

     (c) Net Termination Gains and Losses. After giving effect to the special allocations set
forth in Section 6.1(d), all items of income, gain, loss and deduction taken into account in
computing Net Termination Gain or Net Termination Loss for such taxable period shall be allocated
in the same manner as such Net Termination Gain or Net Termination Loss is allocated hereunder.
All allocations under this Section 6.1(c) shall be made after Capital Account balances have been
adjusted by all other allocations provided under this Section 6.1 and after all distributions of
Available Cash provided under Section 6.4 and Section 6.5 have been made; provided, however, that
solely for purposes of this Section 6.1(c), Capital Accounts shall not be adjusted for
distributions made pursuant to Section 12.4.

          (i) If a Net Termination Gain is recognized (or deemed recognized pursuant to Section
5.5(d)), such Net Termination Gain shall be allocated among the Partners in the following
manner (and the Capital Accounts of the Partners shall be increased by the amount so
allocated in each of the following subclauses, in the order listed, before an allocation is
made pursuant to the next succeeding subclause):

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               (A) First, to each Partner having a deficit balance in its Capital Account, in
the proportion that such deficit balance bears to the total deficit balances in the
Capital Accounts of all Partners, until each such Partner has been allocated Net
Termination Gain equal to any such deficit balance in its Capital Account;

               (B) Second, (x) to the General Partner in accordance with its Percentage
Interest and (y) to all Unitholders holding Common Units, Pro Rata, a percentage
equal to 100% less the percentage applicable to subclause (x) of this clause (B),
until the Capital Account in respect of each Common Unit then Outstanding is equal
to the sum of (1) its Unrecovered Capital plus (2) the Minimum Quarterly
Distribution for the Quarter during which the Liquidation Date occurs, reduced by
any distribution pursuant to Section 6.4(a)(i) or Section 6.4(b)(i) with respect to
such Common Unit for such Quarter (the amount determined pursuant to this clause (2)
is hereinafter defined as the “Unpaid MQD”) and (3) any then existing Cumulative
Common Unit Arrearage;

               (C) Third, if such Net Termination Gain is recognized (or is deemed to be
recognized) prior to the conversion of the last Outstanding Subordinated Unit, (x)
to the General Partner in accordance with its Percentage Interest and (y) all
Unitholders holding Subordinated Units, Pro Rata, a percentage equal to 100% less
the percentage applicable to subclause (x) of this clause (c), until the Capital
Account in respect of each Subordinated Unit then Outstanding equals the sum of
(1) its Unrecovered Capital, determined for the taxable year (or portion thereof) to
which this allocation of gain relates, and (2) the Minimum Quarterly Distribution
for the Quarter during which the Liquidation Date occurs, reduced by any
distribution pursuant to Section 6.4(a)(iii) with respect to such Subordinated Unit
for such Quarter;

               (D) Fourth, 100% to the General Partner and all Unitholders, in accordance with
their respective Percentage Interests, until the Capital Account in respect of each
Common Unit then Outstanding is equal to the sum of (1) its Unrecovered Capital, (2)
the Unpaid MQD, (3) any then existing Cumulative Common Unit Arrearage, and (4) the
excess of (aa) the First Target Distribution less the Minimum Quarterly Distribution
for each Quarter of the Partnership’s existence over (bb) the cumulative per Unit
amount of any distributions of Available Cash that is deemed to be Operating Surplus
made pursuant to Section 6.4(a)(iv) and Section 6.4(b)(ii) (the sum of (1), (2), (3)
and (4) is hereinafter defined as the “First Liquidation Target Amount”);

               (E) Fifth, (x) to the General Partner in accordance with its Percentage
Interest and (y) 13% to the holders of the Incentive Distribution Rights, Pro Rata,
and (z) to all Unitholders, Pro Rata, a percentage equal to 100% less the sum of the
percentages applicable to subclause (x) and (y) of this clause (E), until the
Capital Account in respect of each Common Unit then Outstanding is equal to the sum
of (1) the First Liquidation Target Amount, and (2) the excess of (aa) the Second
Target Distribution less the First Target Distribution for each Quarter of

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the Partnership’s existence over (bb) the cumulative per Unit amount of any
distributions of Available Cash that is deemed to be Operating Surplus made pursuant
to Section 6.4(a)(v) and Section 6.4(b)(iii) (the sum of (1) and (2) is hereinafter
defined as the “Second Liquidation Target Amount”);

               (F) Sixth, (x) to the General Partner in accordance with its Percentage
Interest, (y) 23% to the holders of the Incentive Distribution Rights, Pro Rata, and
(z) to all Unitholders, Pro Rata, a percentage equal to 100% less the sum of the
percentages applicable to subclause (x) and (y) of this clause (F), until the
Capital Account in respect of each Common Unit then Outstanding is equal to the sum
of (1) the Second Liquidation Target Amount, and (2) the excess of (aa) the Third
Target Distribution less the Second Target Distribution for each Quarter of the
Partnership’s existence over (bb) the cumulative per Unit amount of any
distributions of Available Cash that is deemed to be Operating Surplus made pursuant
to Section 6.4(a)(vi) and Section 6.4(b)(iv) (the sum of (1) and (2) is hereinafter
defined as the “Third Liquidation Target Amount”); and

               (G) Finally, (x) to the General Partner in accordance with its Percentage
Interest and (y) 48% to the holders of the Incentive Distribution Rights, Pro Rata,
and (z) to all Unitholders, Pro Rata, a percentage equal to 100% less the sum of the
percentages applicable to subclause (x) and (y) of this clause (G).

          (ii) If a Net Termination Loss is recognized (or deemed recognized pursuant to Section
5.5(d)), such Net Termination Loss shall be allocated among the Partners in the following
manner:

               (A) First, if such Net Termination Loss is recognized (or is deemed to be
recognized) prior to the conversion of the last Outstanding Subordinated Unit, (x)
to the General Partner in accordance with its Percentage Interest and (y) to all
Unitholders holding Subordinated Units, Pro Rata, a percentage equal to 100% less
the percentage applicable to subclause (x) of this clause (A), until the Capital
Account in respect of each Subordinated Unit then Outstanding has been reduced to
zero;

               (B) Second, (x) to the General Partner in accordance with its Percentage
Interest and (y) to all Unitholders holding Common Units, Pro Rata, a percentage
equal to 100% less the percentage applicable to subclause (x) of this clause (B),
until the Capital Account in respect of each Common Unit then Outstanding has been
reduced to zero; and

               (C) Third, the balance, if any, 100% to the General Partner.

     (d) Special Allocations. Notwithstanding any other provision of this Section 6.1, the
following special allocations shall be made for such taxable period:

          (i) Partnership Minimum Gain Chargeback. Notwithstanding any other provision of this
Section 6.1, if there is a net decrease in Partnership Minimum Gain

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during any Partnership
taxable period, each Partner shall be allocated items of Partnership income and gain for
such period (and, if necessary, subsequent periods) in the manner and amounts provided in
Treasury Regulation Sections 1.704-2(f)(6), 1.704-2(g)(2) and 1.704-2(j)(2)(i), or any
successor provision. For purposes of this Section 6.1(d), each Partner’s Adjusted Capital
Account balance shall be determined, and the allocation of income or gain required hereunder
shall be effected, prior to the application of any other allocations pursuant to this
Section 6.1(d) with respect to such taxable period (other than an allocation pursuant to
Section 6.1(d)(vi) and Section 6.1(d)(vii)). This Section 6.1(d)(i) is intended to comply
with the Partnership Minimum Gain chargeback requirement in Treasury Regulation Section
1.704-2(f) and shall be interpreted consistently therewith.

          (ii) Chargeback of Partner Nonrecourse Debt Minimum Gain. Notwithstanding the other
provisions of this Section 6.1 (other than Section 6.1(d)(i)), except as provided in
Treasury Regulation Section 1.704-2(i)(4), if there is a net decrease in Partner Nonrecourse
Debt Minimum Gain during any Partnership taxable period, any Partner with a share of Partner
Nonrecourse Debt Minimum Gain at the beginning of such taxable period shall be allocated
items of Partnership income and gain for such period (and, if necessary, subsequent periods)
in the manner and amounts provided in Treasury Regulation Sections 1.704-2(i)(4) and
1.704-2(j)(2)(ii), or any successor provisions. For purposes of this Section 6.1(d), each
Partner’s Adjusted Capital Account balance shall be determined, and the allocation of income
or gain required hereunder
shall be effected, prior to the application of any other allocations pursuant to this
Section 6.1(d), other than Section 6.1(d)(i) and other than an allocation pursuant to
Section 6.1(d)(vi) and Section 6.1(d)(vii), with respect to such taxable period. This
Section 6.1(d)(ii) is intended to comply with the chargeback of items of income and gain
requirement in Treasury Regulation Section 1.704-2(i)(4) and shall be interpreted
consistently therewith.

          (iii) Priority Allocations.

               (A) If the amount of cash or the Net Agreed Value of any property distributed
(except cash or property distributed pursuant to Section 12.4) to any Unitholder
with respect to its Units for a taxable year is greater (on a per Unit basis) than
the amount of cash or the Net Agreed Value of property distributed to the other
Unitholders with respect to their Units (on a per Unit basis), then (1) each
Unitholder receiving such greater cash or property distribution shall be allocated
gross income in an amount equal to the product of (aa) the amount by which the
distribution (on a per Unit basis) to such Unitholder exceeds the distribution (on a
per Unit basis) to the Unitholders receiving the smallest distribution and (bb) the
number of Units owned by the Unitholder receiving the greater distribution; and (2)
the General Partner shall be allocated gross income in an aggregate amount equal to
the product obtained by multiplying (aa) the quotient determined by dividing (x) the
General Partner’s Percentage Interest at the time in which the
greater cash or
property distribution occurs by (y) the sum of 100 less the General Partner’s
Percentage Interest at the time in which the

44

 

greater cash or property distribution
occurs times (bb) the sum of the amounts allocated in clause (1) above.

               (B) After the application of Section 6.1(d)(iii)(A), all or any portion of the
remaining items of Partnership gross income or gain for the taxable period, if any,
shall be allocated (1) to the holders of Incentive Distribution Rights, Pro Rata,
until the aggregate amount of such items allocated to the holders of Incentive
Distribution Rights pursuant to this Section 6.1(d)(iii)(B) for the current taxable
year and all previous taxable years is equal to the cumulative amount of all
Incentive Distributions made to the holders of Incentive Distribution Rights from
the Closing Date to a date 45 days after the end of the current taxable year and (2)
to the General Partner an amount equal to the product of (aa) an amount equal to the
quotient determined by dividing (x) the General Partner’s Percentage Interest by (y)
the sum of 100 less the General Partner’s Percentage Interest times (bb) the sum of
the amounts allocated in clause (1) above.

          (iv) Qualified Income Offset. In the event any Partner unexpectedly receives any
adjustments, allocations or distributions described in Treasury Regulation Sections
1.704-1(b)(2)(ii)(d)(4), 1.704-1(b)(2)(ii)(d)(5), or 1.704-1(b)(2)(ii)(d)(6), items of
Partnership income and gain shall be specially allocated to such Partner in an amount and
manner sufficient to eliminate, to the extent required by the Treasury Regulations
promulgated under Section 704(b) of the Code, the deficit balance, if any, in its Adjusted
Capital Account created by such adjustments, allocations or distributions as quickly as
possible unless such deficit balance is otherwise eliminated pursuant to Section
6.1(d)(i) or Section 6.1(d)(ii).

          (v) Gross Income Allocations. In the event any Partner has a deficit balance in its
Capital Account at the end of any Partnership taxable period in excess of the sum of (A) the
amount such Partner is required to restore pursuant to the provisions of this Agreement and
(B) the amount such Partner is deemed obligated to restore pursuant to Treasury Regulation
Sections 1.704-2(g) and 1.704-2(i)(5), such Partner shall be specially allocated items of
Partnership gross income and gain in the amount of such excess as quickly as possible;
provided, that an allocation pursuant to this Section 6.1(d)(v) shall be made only if and to
the extent that such Partner would have a deficit balance in its Capital Account as adjusted
after all other allocations provided for in this Section 6.1 have been tentatively made as
if this Section 6.1(d)(v) were not in this Agreement.

          (vi) Nonrecourse Deductions. Nonrecourse Deductions for any taxable period shall be
allocated to the Partners in accordance with their respective Percentage Interests. If the
General Partner determines that the Partnership’s Nonrecourse Deductions should be allocated
in a different ratio to satisfy the safe harbor requirements of the Treasury Regulations
promulgated under Section 704(b) of the Code, the General Partner is authorized, upon notice
to the other Partners, to revise the prescribed ratio to the numerically closest ratio that
does satisfy such requirements.

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          (vii) Partner Nonrecourse Deductions. Partner Nonrecourse Deductions for any taxable
period shall be allocated 100% to the Partner that bears the Economic Risk of Loss with
respect to the Partner Nonrecourse Debt to which such Partner Nonrecourse Deductions are
attributable in accordance with Treasury Regulation Section 1.704-2(i). If more than one
Partner bears the Economic Risk of Loss with respect to a Partner Nonrecourse Debt, such
Partner Nonrecourse Deductions attributable thereto shall be allocated between or among such
Partners in accordance with the ratios in which they share such Economic Risk of Loss.

          (viii) Nonrecourse Liabilities. For purposes of Treasury Regulation Section
1.752-3(a)(3), the Partners agree that Nonrecourse Liabilities of the Partnership in excess
of the sum of (A) the amount of Partnership Minimum Gain and (B) the total amount of
Nonrecourse Built-in Gain shall be allocated among the Partners in accordance with their
respective Percentage Interests.

          (ix) Code Section 754 Adjustments. To the extent an adjustment to the adjusted tax
basis of any Partnership asset pursuant to Section 734(b) or 743(b) of the Code is required,
pursuant to Treasury Regulation Section 1.704-1(b)(2)(iv)(m), to be taken into account in
determining Capital Accounts, the amount of such adjustment to the Capital Accounts shall be
treated as an item of gain (if the adjustment increases the basis of the asset) or loss (if
the adjustment decreases such basis), and such item of gain or loss shall be specially
allocated to the Partners in a manner consistent with the manner in which their Capital
Accounts are required to be adjusted pursuant to such Section of the Treasury Regulations.

          (x) Economic Uniformity. At the election of the General Partner with respect to any
taxable period ending upon, or after, the termination of the Subordination Period, all or a
portion of the remaining items of Partnership gross income or gain for such taxable period,
after taking into account allocations pursuant to Section 6.1(d)(iii), shall be allocated
100% to each Partner holding Subordinated Units that are Outstanding as of the termination
of such Subordination Period (“Final Subordinated Units”) in the proportion of the number of
Final Subordinated Units held by such Partner to the total number of Final Subordinated
Units then Outstanding, until each such Partner has been allocated an amount of gross income
or gain that increases the Capital Account maintained with respect to such Final
Subordinated Units to an amount equal to the product of (A) the number of Final Subordinated
Units held by such Partner and (B) the Per Unit Capital Amount for a Common Unit. The
purpose of this allocation is to establish uniformity between the Capital Accounts
underlying Final Subordinated Units and the Capital Accounts underlying Common Units held by
Persons other than the General Partner and its Affiliates immediately prior to the
conversion of such Final Subordinated Units into Common Units. This allocation method for
establishing such economic uniformity will be available to the General Partner only if the
method for allocating the Capital Account maintained with respect to the Subordinated Units
between the transferred and retained Subordinated Units pursuant to Section 5.5(c)(ii) does
not otherwise provide such economic uniformity to the Final Subordinated Units.

46

 

          (xi) Curative Allocation.

               (A) Notwithstanding any other provision of this Section 6.1, other than the
Required Allocations, the Required Allocations shall be taken into account in making
the Agreed Allocations so that, to the extent possible, the net amount of items of
income, gain, loss and deduction allocated to each Partner pursuant to the Required
Allocations and the Agreed Allocations, together, shall be equal to the net amount
of such items that would have been allocated to each such Partner under the Agreed
Allocations had the Required Allocations and the related Curative Allocation not
otherwise been provided in this Section 6.1. Notwithstanding the preceding
sentence, Required Allocations relating to (1) Nonrecourse Deductions shall not be
taken into account except to the extent that there has been a decrease in
Partnership Minimum Gain and (2) Partner Nonrecourse Deductions shall not be taken
into account except to the extent that there has been a decrease in Partner
Nonrecourse Debt Minimum Gain. Allocations pursuant to this Section 6.1(d)(xi)(A)
shall only be made with respect to Required Allocations to the extent the General
Partner determines that such allocations will otherwise be inconsistent with the
economic agreement among the Partners. Further, allocations pursuant to this
Section 6.1(d)(xi)(A) shall be deferred with respect to allocations pursuant to
clauses (1) and (2) hereof to the extent the General Partner determines that such
allocations are likely to be offset by subsequent Required Allocations.

               (B) The General Partner shall, with respect to each taxable period, (1) apply
the provisions of Section 6.1(d)(xi)(A) in whatever order is most likely to minimize
the economic distortions that might otherwise result from the
Required Allocations, and (2) divide all allocations pursuant to Section
6.1(d)(xi)(A) among the Partners in a manner that is likely to minimize such
economic distortions.

          (xii) Corrective Allocations. In the event of any allocation of Additional Book Basis
Derivative Items or any Book-Down Event or any recognition of a Net Termination Loss, the
following rules shall apply:

               (A) In the case of any allocation of Additional Book Basis Derivative Items
(other than an allocation of Unrealized Gain or Unrealized Loss under Section 5.5(d)
hereof), the General Partner shall allocate additional items of gross income and
gain away from the holders of Incentive Distribution Rights to the Unitholders and
the General Partner, or additional items of deduction and loss away from the
Unitholders and the General Partner to the holders of Incentive Distribution Rights,
to the extent that the Additional Book Basis Derivative Items allocated to the
Unitholders or the General Partner exceed their Share of Additional Book Basis
Derivative Items. For this purpose, the Unitholders and the General Partner shall
be treated as being allocated Additional Book Basis Derivative Items to the extent
that such Additional Book Basis Derivative Items have reduced the amount of income
that would otherwise have been allocated to the Unitholders or the General Partner
under the Partnership Agreement (e.g.,

47

 

Additional Book Basis Derivative Items taken
into account in computing cost of goods sold would reduce the amount of book income
otherwise available for allocation among the Partners). Any allocation made
pursuant to this Section 6.1(d)(xii)(A) shall be made after all of the other Agreed
Allocations have been made as if this Section 6.1(d)(xii) were not in this Agreement
and, to the extent necessary, shall require the reallocation of items that have been
allocated pursuant to such other Agreed Allocations.

               (B) In the case of any negative adjustments to the Capital Accounts of the
Partners resulting from a Book-Down Event or from the recognition of a Net
Termination Loss, such negative adjustment (1) shall first be allocated, to the
extent of the Aggregate Remaining Net Positive Adjustments, in such a manner, as
determined by the General Partner, that to the extent possible the aggregate Capital
Accounts of the Partners will equal the amount that would have been the Capital
Account balance of the Partners if no prior Book-Up Events had occurred, and (2) any
negative adjustment in excess of the Aggregate Remaining Net Positive Adjustments
shall be allocated pursuant to Section 6.1(c) hereof.

               (C) In making the allocations required under this Section 6.1(d)(xii), the
General Partner may apply whatever conventions or other methodology it determines
will satisfy the purpose of this Section 6.1(d)(xii).

          (xiii) Certain Allocations to the General Partner. Any deduction or loss attributable
to the Partnership’s obligation to reimburse the General Partner for, or incurred by the
Partnership and constituting, Excess G&A Expenses, which the General Partner has funded or
agreed to fund pursuant to Section 5.2(c), and any deduction or loss
attributable to environmental losses, costs, damages and expenses and repair and
compliance costs suffered or incurred by the Partnership Group, which the General Partner or
an Affiliate (other than a Group Member) has reimbursed or agreed to reimburse and which
constitute Environmental Indemnity Obligations, shall be allocated to the General Partner.

Section 6.2 Allocations for Tax Purposes.

     (a) Except as otherwise provided herein, for federal income tax purposes, each item of income,
gain, loss and deduction shall be allocated among the Partners in the same manner as its
correlative item of “book” income, gain, loss or deduction is allocated pursuant to Section 6.1.

     (b) In an attempt to eliminate Book-Tax Disparities attributable to a Contributed Property or
Adjusted Property, items of income, gain, loss, depreciation, amortization and cost recovery
deductions shall be allocated for federal income tax purposes among the Partners as follows:

          (i) (A) In the case of a Contributed Property, such items attributable thereto shall be
allocated among the Partners in the manner provided under Section 704(c) of the Code that
takes into account the variation between the Agreed Value of such property and its adjusted
basis at the time of contribution; and (B) any item of Residual Gain or Residual Loss
attributable to a Contributed Property shall be allocated among the

48

 

Partners in the same
manner as its correlative item of “book” gain or loss is allocated pursuant to Section 6.1.

          (ii) (A) In the case of an Adjusted Property, such items shall (1) first, be allocated
among the Partners in a manner consistent with the principles of Section 704(c) of the Code
to take into account the Unrealized Gain or Unrealized Loss attributable to such property
and the allocations thereof pursuant to Section 5.5(d)(i) or Section 5.5(d)(ii), and (2)
second, in the event such property was originally a Contributed Property, be allocated among
the Partners in a manner consistent with Section 6.2(b)(i)(A); and (B) any item of Residual
Gain or Residual Loss attributable to an Adjusted Property shall be allocated among the
Partners in the same manner as its correlative item of “book” gain or loss is allocated
pursuant to Section 6.1.

          (iii) The General Partner shall apply the principles of Treasury Regulation Section
1.704-3(d) to eliminate Book-Tax Disparities.

     (c) For the proper administration of the Partnership and for the preservation of uniformity of
the Limited Partner Interests (or any class or classes thereof), the General Partner shall (i)
adopt such conventions as it deems appropriate in determining the amount of depreciation,
amortization and cost recovery deductions; (ii) make special allocations for federal income tax
purposes of income (including, without limitation, gross income) or deductions; and (iii) amend the
provisions of this Agreement as appropriate (x) to reflect the proposal or promulgation of Treasury
Regulations under Section 704(b) or Section 704(c) of the Code or (y) otherwise to preserve or
achieve uniformity of the Limited Partner Interests (or any class or classes thereof). The General
Partner may adopt such conventions, make such allocations and make such
amendments to this Agreement as provided in this Section 6.2(c) only if such conventions,
allocations or amendments would not have a material adverse effect on the Partners, the holders of
any class or classes of Limited Partner Interests issued and Outstanding or the Partnership, and if
such allocations are consistent with the principles of Section 704 of the Code.

     (d) The General Partner may determine to depreciate or amortize the portion of an adjustment
under Section 743(b) of the Code attributable to unrealized appreciation in any Adjusted Property
(to the extent of the unamortized Book-Tax Disparity) using a predetermined rate derived from the
depreciation or amortization method and useful life applied to the Partnership’s common basis of
such property, despite any inconsistency of such approach with Treasury Regulation Section
1.167(c)-l(a)(6) or any successor regulations thereto. If the General Partner determines that such
reporting position cannot reasonably be taken, the General Partner may adopt depreciation and
amortization conventions under which all purchasers acquiring Limited Partner Interests in the same
month would receive depreciation and amortization deductions, based upon the same applicable rate
as if they had purchased a direct interest in the Partnership’s property. If the General Partner
chooses not to utilize such aggregate method, the General Partner may use any other depreciation
and amortization conventions to preserve the uniformity of the intrinsic tax characteristics of any
Limited Partner Interests, so long as such conventions would not have a material adverse effect on
the Limited Partners or the Record Holders of any class or classes of Limited Partner Interests.

49

 

     (e) Any gain allocated to the Partners upon the sale or other taxable disposition of any
Partnership asset shall, to the extent possible, after taking into account other required
allocations of gain pursuant to this Section 6.2, be characterized as Recapture Income in the same
proportions and to the same extent as such Partners (or their predecessors in interest) have been
allocated any deductions directly or indirectly giving rise to the treatment of such gains as
Recapture Income.

     (f) All items of income, gain, loss, deduction and credit recognized by the Partnership for
federal income tax purposes and allocated to the Partners in accordance with the provisions hereof
shall be determined without regard to any election under Section 754 of the Code that may be made
by the Partnership; provided, however, that such allocations, once made, shall be adjusted (in the
manner determined by the General Partner) to take into account those adjustments permitted or
required by Sections 734 and 743 of the Code.

     (g) Each item of Partnership income, gain, loss and deduction shall for federal income tax
purposes, be determined on an annual basis and prorated on a monthly basis and shall be allocated
to the Partners as of the opening of the New York Stock Exchange on the first Business Day of each
month; provided, however, such items for the period beginning on the Closing Date and ending on the
last day of the month in which the Option Closing Date or the expiration of the Over-Allotment
Option occurs shall be allocated to the Partners as of the opening of the New York Stock Exchange
on the first Business Day of the next succeeding month; and provided, further, that gain or loss on
a sale or other disposition of any assets of the Partnership or any other extraordinary item of
income or loss realized and recognized other than in the ordinary course of business, as determined
by the General Partner, shall be allocated to the Partners as of the opening of the New York Stock
Exchange on the first Business Day of the month in which such gain or loss is recognized for
federal income tax purposes. The General
Partner may revise, alter or otherwise modify such methods of allocation to the extent
permitted or required by Section 706 of the Code and the regulations or rulings promulgated
thereunder.

     (h) Allocations that would otherwise be made to a Limited Partner under the provisions of this
Article VI shall instead be made to the beneficial owner of Limited Partner Interests held by a
nominee in any case in which the nominee has furnished the identity of such owner to the
Partnership in accordance with Section 6031(c) of the Code or any other method determined by the
General Partner.

			
	Section 6.3	 	Requirement and Characterization of Distributions; Distributions to Record Holders.

     (a) Within 45 days following the end of each Quarter commencing with the Quarter ending on
September 30, 2005, an amount equal to 100% of Available Cash with respect to such Quarter shall,
subject to Section 17-607 of the Delaware Act, be distributed in accordance with this Article VI by
the Partnership to the Partners as of the Record Date selected by the General Partner. All amounts
of Available Cash distributed by the Partnership on any date from any source shall be deemed to be
Operating Surplus until the sum of all amounts of Available Cash theretofore distributed by the
Partnership to the Partners pursuant to Section 6.4 equals the Operating Surplus from the Closing
Date through the close of the immediately preceding Quarter. Any remaining amounts of Available
Cash distributed by the Partnership on such date

50

 

shall, except as otherwise provided in Section
6.5, be deemed to be “Capital Surplus.” All distributions required to be made under this Agreement
shall be made subject to Section 17-607 of the Delaware Act.

     (b) Notwithstanding Section 6.3(a), in the event of the dissolution and liquidation of the
Partnership, all receipts received during or after the Quarter in which the Liquidation Date
occurs, other than from borrowings described in (a)(ii) of the definition of Available Cash, shall
be applied and distributed solely in accordance with, and subject to the terms and conditions of,
Section 12.4.

     (c) The General Partner may treat taxes paid by the Partnership on behalf of, or amounts
withheld with respect to, all or less than all of the Partners, as a distribution of Available Cash
to such Partners.

     (d) Each distribution in respect of a Partnership Interest shall be paid by the Partnership,
directly or through the Transfer Agent or through any other Person or agent, only to the Record
Holder of such Partnership Interest as of the Record Date set for such distribution. Such payment
shall constitute full payment and satisfaction of the Partnership’s liability in respect of such
payment, regardless of any claim of any Person who may have an interest in such payment by reason
of an assignment or otherwise.

Section 6.4 Distributions of Available Cash from Operating Surplus.

     (a) During Subordination Period. Available Cash with respect to any Quarter within the
Subordination Period that is deemed to be Operating Surplus pursuant to the provisions of Section
6.3 or Section 6.5 shall, subject to Section 17-607 of the Delaware Act, be distributed as follows,
except as otherwise required by Section 5.6(b) in respect of other Partnership Securities issued
pursuant thereto:

          (i) First, (A) to the General Partner in accordance with its Percentage Interest and
(B) to the Unitholders holding Common Units, Pro Rata, a percentage equal to 100% less the
General Partner’s Percentage Interest, until there has been distributed in respect of each
Common Unit then Outstanding an amount equal to the Minimum Quarterly Distribution for such
Quarter;

          (ii) Second, (A) to the General Partner in accordance with its Percentage Interest and
(B) to the Unitholders holding Common Units, Pro Rata, a percentage equal to 100% less the
General Partner’s Percentage Interest, until there has been distributed in respect of each
Common Unit then Outstanding an amount equal to the Cumulative Common Unit Arrearage
existing with respect to such Quarter;

          (iii) Third, (A) to the General Partner in accordance with its Percentage Interest and
(B) to the Unitholders holding Subordinated Units, Pro Rata, a percentage equal to 100% less
the General Partner’s Percentage Interest, until there has been distributed in respect of
each Subordinated Unit then Outstanding an amount equal to the Minimum Quarterly
Distribution for such Quarter;

51

 

          (iv) Fourth, to the General Partner and the Unitholders, holding Common Units, in
accordance with their respective Percentage Interests, until there has been distributed in
respect of each Unit then Outstanding an amount equal to the excess of the First Target
Distribution over the Minimum Quarterly Distribution for such Quarter;

          (v) Fifth, (A) to the General Partner in accordance with its Percentage Interest; (B)
13% to the holders of the Incentive Distribution Rights, Pro Rata; and (C) to all
Unitholders, Pro Rata, a percentage equal to 100% less the sum of the percentages applicable
to subclauses (A) and (B) of this clause (v), until there has been distributed in respect of
each Unit then Outstanding an amount equal to the excess of the Second Target Distribution
over the First Target Distribution for such Quarter;

          (vi) Sixth, (A) to the General Partner in accordance with its Percentage Interest, (B)
23% to the holders of the Incentive Distribution Rights, Pro Rata; and (C) to all
Unitholders, Pro Rata, a percentage equal to 100% less the sum of the percentages applicable
to subclause (A) and (B) of this subclause (vi), until there has been distributed in respect
of each Unit then Outstanding an amount equal to the excess of the Third Target Distribution
over the Second Target Distribution for such Quarter; and

          (vii) Thereafter, (A) to the General Partner in accordance with its Percentage
Interest; (B) 48% to the holders of the Incentive Distribution Rights, Pro Rata; and (C) to
all Unitholders, Pro Rata, a percentage equal to 100% less the sum of the percentages
applicable to subclauses (A) and (B) of this clause (vii);

provided, however, if the Minimum Quarterly Distribution, the First Target Distribution, the Second
Target Distribution and the Third Target Distribution have been reduced to zero pursuant to the
second sentence of Section 6.6(a), the distribution of Available Cash that is deemed to be
Operating Surplus with respect to any Quarter will be made solely in accordance with Section
6.4(a)(vii).

     (b) After Subordination Period. Available Cash with respect to any Quarter after the
Subordination Period that is deemed to be Operating Surplus pursuant to the provisions of Section
6.3 or Section 6.5, subject to Section 17-607 of the Delaware Act, shall be distributed as follows,
except as otherwise required by Section 5.6(b) in respect of additional Partnership Securities
issued pursuant thereto:

          (i) First, 100% to the General Partner and the Unitholders in accordance with their
respective Percentage Interests, until there has been distributed in respect of each Unit
then Outstanding an amount equal to the Minimum Quarterly Distribution for such Quarter;

          (ii) Second, 100% to the General Partner and the Unitholders in accordance with their
respective Percentage Interests, until there has been distributed in respect of each Unit
then Outstanding an amount equal to the excess of the First Target Distribution over the
Minimum Quarterly Distribution for such Quarter;

          (iii) Third, (A) to the General Partner in accordance with its Percentage Interest; (B)
13% to the holders of the Incentive Distribution Rights, Pro Rata; and (C) to

52

 

all Unitholders, Pro Rata, a percentage equal to 100% less the sum of the percentages applicable
to subclauses (A) and (B) of this clause (iii), until there has been distributed in respect
of each Unit then Outstanding an amount equal to the excess of the Second Target
Distribution over the First Target Distribution for such Quarter;

          (iv) Fourth, (A) to the General Partner in accordance with its Percentage Interest; (B)
23% to the holders of the Incentive Distribution Rights, Pro Rata; and (C) to all
Unitholders, Pro Rata, a percentage equal to 100% less the sum of the percentages applicable
to subclause (A) and (B) of this clause (iv), until there has been distributed in respect of
each Unit then Outstanding an amount equal to the excess of the Third Target Distribution
over the Second Target Distribution for such Quarter; and

          (v) Thereafter, (A) to the General Partner in accordance with its Percentage Interest;
(B) 48% to the holders of the Incentive Distribution Rights, Pro Rata; and (C) to all
Unitholders, Pro Rata, a percentage equal to 100% less the sum of the percentages applicable
to subclauses (A) and (B) of this clause (v);

provided, however, if the Minimum Quarterly Distribution, the First Target Distribution, the Second
Target Distribution and the Third Target Distribution have been reduced to zero pursuant to the
second sentence of Section 6.6(a), the distribution of Available Cash that is deemed to be
Operating Surplus with respect to any Quarter will be made solely in accordance with Section
6.4(b)(v).

Section 6.5 Distributions of Available Cash from Capital Surplus.

     Available Cash that is deemed to be Capital Surplus pursuant to the provisions of Section
6.3(a) shall, subject to Section 17-607 of the Delaware Act, be distributed, unless the provisions
of Section 6.3 require otherwise, 100% to the General Partner and the Unitholders in accordance
with their respective Percentage Interests, until a hypothetical holder of a Common Unit acquired
on the Closing Date has received with respect to such Common Unit, during the period since the
Closing Date through such date, distributions of Available Cash that are deemed to be Capital
Surplus in an aggregate amount equal to the Initial Unit Price. Available Cash that is deemed to
be Capital Surplus shall then be distributed (A) to the General Partner in accordance with its
Percentage Interest and (B) to all Unitholders holding Common Units, Pro Rata, a percentage equal
to 100% less the General Partner’s Percentage Interest, until there has been distributed in respect
of each Common Unit then Outstanding an amount equal to the Cumulative Common Unit Arrearage.
Thereafter, all Available Cash shall be distributed as if it were Operating Surplus and shall be
distributed in accordance with Section 6.4.

			
	Section 6.6	 	Adjustment of Minimum Quarterly Distribution and Target Distribution Levels.

     (a) The Minimum Quarterly Distribution, First Target Distribution, Second Target Distribution,
Third Target Distribution, Common Unit Arrearages and Cumulative Common Unit Arrearages shall be
proportionately adjusted in the event of any distribution, combination or subdivision (whether
effected by a distribution payable in Units or otherwise) of Units or other Partnership Securities
in accordance with Section 5.9. In the event of a distribution of Available Cash that is deemed to
be from Capital Surplus, the then applicable Minimum Quarterly

53

 

Distribution, First Target Distribution, Second Target Distribution and Third Target Distribution, shall be adjusted
proportionately downward to equal the product obtained by multiplying the otherwise applicable
Minimum Quarterly Distribution, First Target Distribution, Second Target Distribution and Third
Target Distribution, as the case may be, by a fraction of which the numerator is the Unrecovered
Capital of the Common Units immediately after giving effect to such distribution and of which the
denominator is the Unrecovered Capital of the Common Units immediately prior to giving effect to
such distribution.

     (b) The Minimum Quarterly Distribution, First Target Distribution, Second Target Distribution
and Third Target Distribution, shall also be subject to adjustment pursuant to Section 6.9.

Section 6.7 Special Provisions Relating to the Holders of Subordinated Units.

     (a) Except with respect to the right to vote on or approve matters requiring the vote or
approval of a percentage of the holders of Outstanding Common Units and the right to participate in
allocations of income, gain, loss and deduction and distributions made with respect to Common
Units, the holder of a Subordinated Unit shall have all of the rights and obligations
of a Unitholder holding Common Units hereunder; provided, however, that immediately upon the
conversion of Subordinated Units into Common Units pursuant to Section 5.7, the Unitholder holding
a Subordinated Unit shall possess all of the rights and obligations of a Unitholder holding Common
Units hereunder, including the right to vote as a Common Unitholder and the right to participate in
allocations of income, gain, loss and deduction and distributions made with respect to Common
Units; provided, however, that such converted Subordinated Units shall remain subject to the
provisions of Section 5.5(c)(ii), Section 6.1(d)(x) and Section 6.7(c).

     (b) A Unitholder shall not be permitted to transfer a Subordinated Unit or a Subordinated Unit
that has converted into a Common Unit pursuant to Section 5.8 (other than a transfer to an
Affiliate) if the remaining balance in the transferring Unitholder’s Capital Account with respect
to the retained Subordinated Units or retained converted Subordinated Units would be negative after
giving effect to the allocation under Section 5.5(c)(ii)(B).

     (c) The Unitholder holding a Subordinated Unit that has converted into a Common Unit pursuant
to Section 5.7 shall not be issued a Common Unit Certificate pursuant to Section 4.1, and shall not
be permitted to transfer its converted Subordinated Units to a Person that is not an Affiliate of
the holder until such time as the General Partner determines, based on advice of counsel, that a
converted Subordinated Unit should have, as a substantive matter, like intrinsic economic and
federal income tax characteristics, in all material respects, to the intrinsic economic and federal
income tax characteristics of an Initial Common Unit. In providing such advice, counsel may rely
upon the fact that the General Partner will take positions in filing the tax returns of the
Partnership (including information returns to unitholders) which are intended to preserve the
uniformity of units, as described at “Material Tax Consequences—Uniformity of Units” in the
Registration Statement, and may assume the validity of such positions. In connection with the
condition imposed by this Section 6.7(c), the General Partner may take whatever steps are required
to provide economic uniformity to the converted Subordinated Units in preparation for a transfer of
such converted Subordinated Units, including the application of Section 5.5(c)(ii) and Section
6.1(d)(x); provided, however, that no such steps may be taken that

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would have a material adverse
effect on the Unitholders holding Common Units represented by Common Unit Certificates.

			
	Section 6.8	 	Special Provisions Relating to the Holders of Incentive Distribution Rights.

     Notwithstanding anything to the contrary set forth in this Agreement, the holders of the
Incentive Distribution Rights (a) shall (i) possess the rights and obligations provided in this
Agreement with respect to a Limited Partner pursuant to Article III and Article VII and (ii) have a
Capital Account as a Partner pursuant to Section 5.5 and all other provisions related thereto and
(b) shall not (i) be entitled to vote on any matters requiring the approval or vote of the holders
of Outstanding Units, except as provided by law, (ii) be entitled to any distributions other than
as provided in Section 6.4(a)(v), (vi) and (vii), Section 6.4(b)(iii), (iv) and (v), and Section
12.4 or (iii) be allocated items of income, gain, loss or deduction other than as specified in this
Article VI.

Section 6.9 Entity-Level Taxation.

     If legislation is enacted or the interpretation of existing language is modified by a
governmental taxing authority so that a Group Member is treated as an association taxable as a
corporation or is otherwise subject to an entity-level tax for federal, state or local income tax
purposes, then the General Partner shall estimate for each Quarter the Partnership Group’s
aggregate liability (the “Estimated Incremental Quarterly Tax Amount”) for all such income taxes
that are payable by reason of any such new legislation or interpretation; provided that any
difference between such estimate and the actual tax liability for such Quarter that is owed by
reason of any such new legislation or interpretation shall be taken into account in determining the
Estimated Incremental Quarterly Tax Amount with respect to each Quarter in which any such
difference can be determined. For each such Quarter, the Minimum Quarterly Distribution, First
Target Distribution, Second Target Distribution and Third Target Distribution, shall be the product
obtained by multiplying (a) the amounts therefor that are set out herein prior to the application
of this Section 6.9 times (b) the quotient obtained by dividing (i) Available Cash with respect to
such Quarter by (ii) the sum of Available Cash with respect to such Quarter and the Estimated
Incremental Quarterly Tax Amount for such Quarter, as determined by the General Partner. For
purposes of the foregoing, Available Cash with respect to a Quarter will be deemed reduced by the
Estimated Incremental Quarterly Tax Amount for that Quarter.

ARTICLE VII

MANAGEMENT AND OPERATION OF BUSINESS

Section 7.1 Management.

     (a) The General Partner shall conduct, direct and manage all activities of the Partnership.
Except as otherwise expressly provided in this Agreement, all management powers over the business
and affairs of the Partnership shall be exclusively vested in the General Partner, and no Limited
Partner shall have any management power over the business and affairs of the Partnership. In
addition to the powers now or hereafter granted a general partner of a limited partnership under
applicable law or that are granted to the General Partner under any other

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provision of this Agreement, the General Partner, subject to Section 7.3, shall have full power and authority to do
all things and on such terms as it determines to be necessary or appropriate to conduct the
business of the Partnership, to exercise all powers set forth in Section 2.5 and to effectuate the
purposes set forth in Section 2.4, including the following:

          (i) the making of any expenditures, the lending or borrowing of money, the assumption
or guarantee of, or other contracting for, indebtedness and other liabilities, the issuance
of evidences of indebtedness, including indebtedness that is convertible into Partnership
Securities, and the incurring of any other obligations;

          (ii) the making of tax, regulatory and other filings, or rendering of periodic or other
reports to governmental or other agencies having jurisdiction over the business or assets of
the Partnership;

          (iii) the acquisition, disposition, mortgage, pledge, encumbrance, hypothecation or
exchange of any or all of the assets of the Partnership or the merger or other combination
of the Partnership with or into another Person (the matters described in this clause (iii)
being subject, however, to any prior approval that may be required by Section 7.3);

          (iv) the use of the assets of the Partnership (including cash on hand) for any purpose
consistent with the terms of this Agreement, including the financing of the conduct of the
operations of the Partnership Group; subject to Section 7.6(a), the lending of funds to
other Persons (including other Group Members); the repayment or guarantee of obligations of
any Group Member; and the making of capital contributions to any Group Member;

          (v) the negotiation, execution and performance of any contracts, conveyances or other
instruments (including instruments that limit the liability of the Partnership under
contractual arrangements to all or particular assets of the Partnership, with the other
party to the contract to have no recourse against the General Partner or its assets other
than its interest in the Partnership, even if same results in the terms of the transaction
being less favorable to the Partnership than would otherwise be the case);

          (vi) the distribution of Partnership cash;

          (vii) the selection and dismissal of employees (including employees having titles such
as “president,” “vice president,” “secretary” and “treasurer”) and agents, outside
attorneys, accountants, consultants and contractors and the determination of their
compensation and other terms of employment or hiring;

          (viii) the maintenance of insurance for the benefit of the Partnership Group and the
Partners;

          (ix) the formation of, or acquisition of an interest in, and the contribution of
property and the making of loans to, any further limited or general partnerships, joint
ventures, corporations, limited liability companies or other relationships (including the

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acquisition of interests in, and the contributions of property to, any Group Member from
time to time) subject to the restrictions set forth in Section 2.4;

          (x) the control of any matters affecting the rights and obligations of the Partnership,
including the bringing and defending of actions at law or in equity and otherwise engaging
in the conduct of litigation, arbitration or mediation and the incurring of legal expense
and the settlement of claims and litigation;

          (xi) the indemnification of any Person against liabilities and contingencies to the
extent permitted by law;

          (xii) the entering into of listing agreements with any National Securities Exchange and
the delisting of some or all of the Limited Partner Interests from, or requesting that
trading be suspended on, any such exchange (subject to any prior approval that may be
required under Section 4.8);

          (xiii) the purchase, sale or other acquisition or disposition of Partnership
Securities, or the issuance of additional options, rights, warrants and appreciation rights
relating to Partnership Securities;

          (xiv) the undertaking of any action in connection with the Partnership’s participation
in any Group Member; and

          (xv) the entering into of agreements with any of its Affiliates to render services to a
Group Member or to itself in the discharge of its duties as General Partner of the
Partnership.

     (b) Notwithstanding any other provision of this Agreement, any Group Member Agreement, the
Delaware Act or any applicable law, rule or regulation, each of the Partners and each other Person
who may acquire an interest in Partnership Securities hereby (i) approves, ratifies and confirms
the execution, delivery and performance by the parties thereto of this Agreement, the Underwriting
Agreement, the Omnibus Agreement, the Contribution Agreement, any Group Member Agreement of any
other Group Member and the other agreements described in or filed as exhibits to the Registration
Statement that are related to the transactions contemplated by the Registration Statement; (ii)
agrees that the General Partner (on its own or through any officer of the Partnership) is
authorized to execute, deliver and perform the agreements referred to in clause (i) of this
sentence and the other agreements, acts, transactions and matters described in or contemplated by
the Registration Statement on behalf of the Partnership without any further act, approval or vote
of the Partners or the other Persons who may acquire an interest in Partnership Securities; and
(iii) agrees that the execution, delivery or performance by the General Partner, any Group Member
or any Affiliate of any of them of this Agreement or any agreement authorized or permitted under
this Agreement (including the exercise by the General Partner or any Affiliate of the General
Partner of the rights accorded pursuant to Article XV) shall not constitute a breach by the General
Partner of any duty that the General Partner may owe the Partnership or the Limited Partners or any
other Persons under this Agreement (or any other agreements) or of any duty stated or implied by
law or equity.

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Section 7.2 Certificate of Limited Partnership.

     The General Partner has caused the Certificate of Limited Partnership to be filed with the
Secretary of State of the State of Delaware as required by the Delaware Act. The General Partner
shall use all reasonable efforts to cause to be filed such other certificates or documents that the
General Partner determines to be necessary or appropriate for the formation, continuation,
qualification and operation of a limited partnership (or a partnership in which the limited
partners have limited liability) in the State of Delaware or any other state in which the
Partnership may elect to do business or own property. To the extent the General Partner
determines such action to be necessary or appropriate, the General Partner shall file
amendments to and restatements of the Certificate of Limited Partnership and do all things to
maintain the Partnership as a limited partnership (or a partnership or other entity in which the
limited partners have limited liability) under the laws of the State of Delaware or of any other
state in which the Partnership may elect to do business or own property. Subject to the terms of
Section 3.4(a), the General Partner shall not be required, before or after filing, to deliver or
mail a copy of the Certificate of Limited Partnership, any qualification document or any amendment
thereto to any Limited Partner.

Section 7.3 Restrictions on the General Partner’s Authority.

     (a) Except as otherwise provided in this Agreement, the General Partner may not, without
written approval of the specific act by holders of all of the Outstanding Limited Partner Interests
or by other written instrument executed and delivered by holders of all of the Outstanding Limited
Partner Interests subsequent to the date of this Agreement, take any action in contravention of
this Agreement, including, (i) committing any act that would make it impossible to carry on the
ordinary business of the Partnership; (ii) possessing Partnership property, or assigning any rights
in specific Partnership property, for other than a Partnership purpose; (iii) admitting a Person as
a Partner; (iv) amending this Agreement in any manner; or (v) transferring its interest as a
general partner of the Partnership.

     (b) Except as provided in Article XII and Article XIV, the General Partner may not sell,
exchange or otherwise dispose of all or substantially all of the assets of the Partnership Group,
taken as a whole, in a single transaction or a series of related transactions (including by way of
merger, consolidation or other combination or sale of ownership interests of the Partnership’s
Subsidiaries) without the approval of holders of a Unit Majority; provided, however, that this
provision shall not preclude or limit the General Partner’s ability to mortgage, pledge,
hypothecate or grant a security interest in all or substantially all of the assets of the
Partnership Group and shall not apply to any forced sale of any or all of the assets of the
Partnership Group pursuant to the foreclosure of, or other realization upon, any such encumbrance.
Without the approval of holders of a Unit Majority, the General Partner shall not, on behalf of the
Partnership, (i) consent to any amendment to the Operating Company Agreement or, except as
expressly permitted by Section 7.9(f), take any action permitted to be taken by a member of the
Operating Company, in either case, that would adversely affect the Limited Partners (including any
particular class of Partnership Interests as compared to any other class of Partnership Interests)
in any material respect or (ii) except as permitted under Section 4.6, Section 11.1 and Section
11.2, elect or cause the Partnership to elect a successor general partner of the Partnership.

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Section 7.4 Reimbursement of the General Partner.

     (a) Except as provided in this Section 7.4 and elsewhere in this Agreement, the General
Partner shall not be compensated for its services as a general partner or managing member of any
Group Member.

     (b) The General Partner shall be reimbursed on a monthly basis, or such other basis as the
General Partner may determine, for (i) all direct and indirect expenses it incurs or payments it
makes on behalf of the Partnership Group (including salary, bonus, incentive compensation and other
amounts paid to any Person including Affiliates of the General Partner to perform services for the
Partnership Group or for the General Partner in the discharge of its duties to the Partnership
Group), and (ii) all other expenses allocable to the Partnership Group or otherwise incurred by the
General Partner in connection with operating the Partnership Group’s business (including expenses
allocated to the General Partner by its Affiliates). The General Partner shall determine the
expenses that are allocable to the Partnership Group. Reimbursements pursuant to this Section 7.4
shall be in addition to any reimbursement to the General Partner as a result of indemnification
pursuant to Section 7.7. To the extent the Partnership is obligated to reimburse the General
Partner for expenses pursuant to this Section 7.4(b), such reimbursements may be offset against any
Capital Contributions to the Partnership that the General Partner is obligated to make pursuant to
Section 5.2(c).

     (c) The General Partner, without the approval of the Limited Partners (who shall have no right
to vote in respect thereof), may propose and adopt on behalf of the Partnership employee benefit
plans, employee programs and employee practices (including plans, programs and practices involving
the issuance of Partnership Securities or options to purchase or rights, warrants or appreciation
rights relating to Partnership Securities), or cause the Partnership to issue Partnership
Securities in connection with, or pursuant to, any employee benefit plan, employee program or
employee practice maintained or sponsored by the General Partner or any of its Affiliates, in each
case for the benefit of employees of the General Partner, any Group Member or any Affiliate, or any
of them, in respect of services performed, directly or indirectly, for the benefit of the
Partnership Group. The Partnership agrees to issue and sell to the General Partner or any of its
Affiliates any Partnership Securities that the General Partner or such Affiliates are obligated to
provide to any employees pursuant to any such employee benefit plans, employee programs or employee
practices. Expenses incurred by the General Partner in connection with any such plans, programs
and practices (including the net cost to the General Partner or such Affiliates of Partnership
Securities purchased by the General Partner or such Affiliates from the Partnership to fulfill
options or awards under such plans, programs and practices) shall be reimbursed in accordance with
Section 7.4(b). Any and all obligations of the General Partner under any employee benefit plans,
employee programs or employee practices adopted by the General Partner as permitted by this Section
7.4(c) shall constitute obligations of the General Partner hereunder and shall be assumed by any
successor General Partner approved pursuant to Section 11.1 or Section 11.2 or the transferee of or
successor to all of the General Partner’s General Partner Interest (represented by General Partner
Units) pursuant to Section 4.6.

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Section 7.5 Outside Activities.

     (a) After the Closing Date, the General Partner, for so long as it is the General Partner of
the Partnership (i) agrees that its sole business will be to act as a general partner or managing
member, as the case may be, of the Partnership and any other partnership or limited liability
company of which the Partnership is, directly or indirectly, a partner or member and to undertake
activities that are ancillary or related thereto (including being a limited partner in the
Partnership), and (ii) shall not engage in any business or activity or incur any debts or
liabilities except in connection with or incidental to (A) its performance as general partner or
managing member, if any, of one or more Group Members or as described in or contemplated by the
Registration Statement or (B) the acquiring, owning or disposing of debt or equity securities in
any Group Member.

     (b) Each Indemnitee (other than the General Partner) shall have the right to engage in
businesses of every type and description and other activities for profit and to engage in and
possess an interest in other business ventures of any and every type or description, whether in
businesses engaged in or anticipated to be engaged in by any Group Member, independently or with
others, including business interests and activities in direct competition with the business and
activities of any Group Member, and none of the same shall constitute a breach of this Agreement or
any duty expressed or implied by law to any Group Member or any Partner. Notwithstanding anything
to the contrary in this Agreement, (i) the engaging in competitive activities by any Indemnitees
(other than the General Partner) in accordance with the provisions of this Section 7.5 is hereby
approved by the Partnership and all Partners, (ii) it shall be deemed not to be a breach of any
fiduciary duty or any other obligation of any type whatsoever of the General Partner or of any
Indemnitee for the Indemnitees (other than the General Partner) to engage in such business
interests and activities in preference to or to the exclusion of the Partnership.

     (c) Notwithstanding anything to the contrary in this Agreement, the doctrine of corporate
opportunity, or any analogous doctrine, shall not apply to any Indemnitee (including the General
Partner). No Indemnitee (including the General Partner) who acquires knowledge of a potential
transaction, agreement, arrangement or other matter that may be an opportunity for the Partnership
shall have any duty to communicate or offer such opportunity to the Partnership, and such
Indemnitee (including the General Partner) shall not be liable to the Partnership, to any Limited
Partner or any other Person for breach of any fiduciary or other duty by reason of the fact that
such Indemnitee (including the General Partner) pursues or acquires for itself, directs such
opportunity to another Person or does not communicate such opportunity or information to the
Partnership.

     (d) None of any Group Member, any Limited Partner or any other Person shall have any rights by
virtue of this Agreement, any Group Member Agreement, or the partnership relationship established
hereby in any business ventures of any Indemnitee.

     (e) The General Partner and each of its Affiliates may acquire Units or other Partnership
Securities in addition to those acquired on the Closing Date and, except as otherwise provided in
this Agreement, shall be entitled to exercise, at their option, all rights relating to all Units or

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other Partnership Securities acquired by them. For purposes of this Section 7.5(d), the term
“Affiliates,” when used with respect to the General Partner, shall not include any Group Member.

			
	Section 7.6	 	Loans from the General Partner; Loans or Contributions from the Partnership or Group Members.

     (a) The General Partner or any of its Affiliates may lend to any Group Member, and any Group
Member may borrow from the General Partner or any of its Affiliates, funds needed or desired by the
Group Member for such periods of time and in such amounts as the General Partner may determine;
provided, however, that in any such case the lending party may not charge the borrowing party
interest at a rate greater than the rate that would be charged the borrowing party or impose terms
less favorable to the borrowing party than would be charged or imposed on the borrowing party by
unrelated lenders on comparable loans made on an arm’s-length basis (without reference to the
lending party’s financial abilities or guarantees), all as determined by the General Partner. The
borrowing party shall reimburse the lending party for any costs (other than any additional interest
costs) incurred by the lending party in connection with the borrowing of such funds. For purposes
of this Section 7.6(a) and Section 7.6(b), the term “Group Member” shall include any Affiliate of a
Group Member that is controlled by the Group Member.

     (b) The Partnership may lend or contribute to any Group Member, and any Group Member may
borrow from the Partnership, funds on terms and conditions determined by the General Partner. No
Group Member may lend funds to the General Partner or any of its Affiliates (other than another
Group Member).

     (c) No borrowing by any Group Member or the approval thereof by the General Partner shall be
deemed to constitute a breach of any duty, expressed or implied, of the General Partner or its
Affiliates to the Partnership or the Limited Partners by reason of the fact that the purpose or
effect of such borrowing is directly or indirectly to (i) enable distributions to the General
Partner or its Affiliates (including in their capacities as Limited Partners) to exceed the General
Partner’s Percentage Interest of the total amount distributed to all partners or (ii) hasten the
expiration of the Subordination Period or the conversion of any Subordinated Units into Common
Units.

Section 7.7 Indemnification.

     (a) To the fullest extent permitted by law but subject to the limitations expressly provided
in this Agreement, all Indemnitees shall be indemnified and held harmless by the Partnership from
and against any and all losses, claims, damages, liabilities, joint or several, expenses (including
legal fees and expenses), judgments, fines, penalties, interest, settlements or other amounts
arising from any and all claims, demands, actions, suits or proceedings, whether civil, criminal,
administrative or investigative, in which any Indemnitee may be involved, or is threatened to be
involved, as a party or otherwise, by reason of its status as an Indemnitee; provided, that the
Indemnitee shall not be indemnified and held harmless if there has been a final and non-appealable
judgment entered by a court of competent jurisdiction determining that, in respect of the matter
for which the Indemnitee is seeking indemnification pursuant to this Section 7.7, the Indemnitee
acted in bad faith or engaged in fraud, willful misconduct or, in the
case of a criminal matter, acted with knowledge that the Indemnitee’s conduct was unlawful;

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provided, further, no indemnification pursuant to this Section 7.7 shall be available to the
General Partner or its Affiliates (other than a Group Member) with respect to its or their
obligations incurred pursuant to the Underwriting Agreement, the Omnibus Agreement or the
Contribution Agreement (other than obligations incurred by the General Partner on behalf of the
Partnership). Any indemnification pursuant to this Section 7.7 shall be made only out of the
assets of the Partnership, it being agreed that the General Partner shall not be personally liable
for such indemnification and shall have no obligation to contribute or loan any monies or property
to the Partnership to enable it to effectuate such indemnification.

     (b) To the fullest extent permitted by law, expenses (including legal fees and expenses)
incurred by an Indemnitee who is indemnified pursuant to Section 7.7(a) in defending any claim,
demand, action, suit or proceeding shall, from time to time, be advanced by the Partnership prior
to a determination that the Indemnitee is not entitled to be indemnified upon receipt by the
Partnership of any undertaking by or on behalf of the Indemnitee to repay such amount if it shall
be determined that the Indemnitee is not entitled to be indemnified as authorized in this Section
7.7.

     (c) The indemnification provided by this Section 7.7 shall be in addition to any other rights
to which an Indemnitee may be entitled under any agreement, pursuant to any vote of the holders of
Outstanding Limited Partner Interests, as a matter of law or otherwise, both as to actions in the
Indemnitee’s capacity as an Indemnitee and as to actions in any other capacity (including any
capacity under the Underwriting Agreement), and shall continue as to an Indemnitee who has ceased
to serve in such capacity and shall inure to the benefit of the heirs, successors, assigns and
administrators of the Indemnitee.

     (d) The Partnership may purchase and maintain (or reimburse the General Partner or its
Affiliates for the cost of) insurance, on behalf of the General Partner, its Affiliates and such
other Persons as the General Partner shall determine, against any liability that may be asserted
against, or expense that may be incurred by, such Person in connection with the Partnership’s
activities or such Person’s activities on behalf of the Partnership, regardless of whether the
Partnership would have the power to indemnify such Person against such liability under the
provisions of this Agreement.

     (e) For purposes of this Section 7.7, the Partnership shall be deemed to have requested an
Indemnitee to serve as fiduciary of an employee benefit plan whenever the performance by it of its
duties to the Partnership also imposes duties on, or otherwise involves services by, it to the plan
or participants or beneficiaries of the plan; excise taxes assessed on an Indemnitee with respect
to an employee benefit plan pursuant to applicable law shall constitute “fines” within the meaning
of Section 7.7(a); and action taken or omitted by it with respect to any employee benefit plan in
the performance of its duties for a purpose reasonably believed by it to be in the best interest of
the participants and beneficiaries of the plan shall be deemed to be for a purpose that is in the
best interests of the Partnership.

     (f) In no event may an Indemnitee subject the Limited Partners to personal liability by reason
of the indemnification provisions set forth in this Agreement.

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     (g) An Indemnitee shall not be denied indemnification in whole or in part under this Section
7.7 because the Indemnitee had an interest in the transaction with respect to which the
indemnification applies if the transaction was otherwise permitted by the terms of this Agreement.

     (h) The provisions of this Section 7.7 are for the benefit of the Indemnitees, their heirs,
successors, assigns and administrators and shall not be deemed to create any rights for the benefit
of any other Persons.

     (i) No amendment, modification or repeal of this Section 7.7 or any provision hereof shall in
any manner terminate, reduce or impair the right of any past, present or future Indemnitee to be
indemnified by the Partnership, nor the obligations of the Partnership to indemnify any such
Indemnitee under and in accordance with the provisions of this Section 7.7 as in effect immediately
prior to such amendment, modification or repeal with respect to claims arising from or relating to
matters occurring, in whole or in part, prior to such amendment, modification or repeal, regardless
of when such claims may arise or be asserted.

Section 7.8 Liability of Indemnitees.

     (a) Notwithstanding anything to the contrary set forth in this Agreement, no Indemnitee shall
be liable for monetary damages to the Partnership, the Limited Partners or any other Persons who
have acquired interests in the Partnership Securities, for losses sustained or liabilities incurred
as a result of any act or omission of an Indemnitee unless there has been a final and
non-appealable judgment entered by a court of competent jurisdiction determining that, in respect
of the matter in question, the Indemnitee acted in bad faith or engaged in fraud, willful
misconduct or, in the case of a criminal matter, acted with knowledge that the Indemnitee’s conduct
was criminal.

     (b) Subject to its obligations and duties as General Partner set forth in Section 7.1(a), the
General Partner may exercise any of the powers granted to it by this Agreement and perform any of
the duties imposed upon it hereunder either directly or by or through its agents, and the General
Partner shall not be responsible for any misconduct or negligence on the part of any such agent
appointed by the General Partner in good faith.

     (c) To the extent that, at law or in equity, an Indemnitee has duties (including fiduciary
duties) and liabilities relating thereto to the Partnership or to the Partners, the General Partner
and any other Indemnitee acting in connection with the Partnership’s business or affairs shall not
be liable to the Partnership or to any Partner for its good faith reliance on the provisions of
this Agreement.

     (d) Any amendment, modification or repeal of this Section 7.8 or any provision hereof shall be
prospective only and shall not in any way affect the limitations on the liability of the
Indemnitees under this Section 7.8 as in effect immediately prior to such amendment, modification
or repeal with respect to claims arising from or relating to matters occurring, in whole or in
part, prior to such amendment, modification or repeal, regardless of when such claims may arise or
be asserted.

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	Section 7.9	 	Resolution of Conflicts of Interest; Standards of Conduct and Modification of Duties.

     (a) Unless otherwise expressly provided in this Agreement or any Group Member Agreement,
whenever a potential conflict of interest exists or arises between the General Partner or any of
its Affiliates, on the one hand, and the Partnership, any Group Member or any Partner, on the
other, any resolution or course of action by the General Partner or its Affiliates in respect of
such conflict of interest shall be permitted and deemed approved by all Partners, and shall not
constitute a breach of this Agreement, of any Group Member Agreement, of any agreement contemplated
herein or therein, or of any duty stated or implied by law or equity, if the resolution or course
of action in respect of such conflict of interest is (i) approved by Special Approval, (ii)
approved by the vote of a majority of the Common Units (excluding Common Units owned by the General
Partner and its Affiliates), (iii) on terms no less favorable to the Partnership than those
generally being provided to or available from unrelated third parties or (iv) fair and reasonable
to the Partnership, taking into account the totality of the relationships between the parties
involved (including other transactions that may be particularly favorable or advantageous to the
Partnership). The General Partner shall be authorized but not required in connection with its
resolution of such conflict of interest to seek Special Approval of such resolution, and the
General Partner may also adopt a resolution or course of action that has not received Special
Approval. If Special Approval is not sought and the Board of Directors of the General Partner
determines that the resolution or course of action taken with respect to a conflict of interest
satisfies either of the standards set forth in clauses (iii) or (iv) above, then it shall be
presumed that, in making its decision, the Board of Directors of the General Partner acted in good
faith, and in any proceeding brought by any Limited Partner or by or on behalf of such Limited
Partner or any other Limited Partner or the Partnership challenging such approval, the Person
bringing or prosecuting such proceeding shall have the burden of overcoming such presumption.
Notwithstanding anything to the contrary in this Agreement or any duty otherwise existing at law or
equity, the existence of the conflicts of interest described in the Registration Statement are
hereby approved by all Partners and shall not constitute a breach of this Agreement.

     (b) Whenever the General Partner makes a determination or takes or declines to take any other
action, or any of its Affiliates causes it to do so, in its capacity as the general partner of the
Partnership as opposed to in its individual capacity, whether under this Agreement, any Group
Member Agreement or any other agreement contemplated hereby or otherwise, then, unless another
express standard is provided for in this Agreement, the General Partner, or such Affiliates causing
it to do so, shall make such determination or take or decline to take such other action in good
faith and shall not be subject to any other or different standards imposed by this Agreement, any
Group Member Agreement, any other agreement contemplated hereby or under the Delaware Act or any
other law, rule or regulation or at equity. In order for a determination or other action to be in
“good faith” for purposes of this Agreement, the Person or Persons making such determination or
taking or declining to take such other action must believe that the determination or other action
is in the best interests of the Partnership, unless the context otherwise requires.

     (c) Whenever the General Partner makes a determination or takes or declines to take any other
action, or any of its Affiliates causes it to do so, in its individual capacity as opposed to in
its capacity as the general partner of the Partnership, whether under this Agreement, any Group

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Member Agreement or any other agreement contemplated hereby or otherwise, then the General Partner,
or such Affiliates causing it to do so, are entitled to make such determination or to take or
decline to take such other action free of any fiduciary duty or obligation whatsoever to the
Partnership, any Limited Partner, and the General Partner, or such Affiliates causing it to do so,
shall not be required to act in good faith or pursuant to any other standard imposed by this
Agreement, any Group Member Agreement, any other agreement contemplated hereby or under the
Delaware Act or any other law, rule or regulation or at equity. By way of illustration and not of
limitation, whenever the phrase, “at the option of the General Partner,” or some variation of that
phrase, is used in this Agreement, it indicates that the General Partner is acting in its
individual capacity. For the avoidance of doubt, whenever the General Partner votes or transfers
its Partnership Interests, or refrains from voting or transferring its Partnership Interests, it
shall be acting in its individual capacity.

     (d) Notwithstanding anything to the contrary in this Agreement, the General Partner and its
Affiliates shall have no duty or obligation, express or implied, to (i) sell or otherwise dispose
of any asset of the Partnership Group other than in the ordinary course of business or (ii) permit
any Group Member to use any facilities or assets of the General Partner and its Affiliates, except
as may be provided in contracts entered into from time to time specifically dealing with such use.
Any determination by the General Partner or any of its Affiliates to enter into such contracts
shall be at its option.

     (e) Except as expressly set forth in this Agreement, neither the General Partner nor any other
Indemnitee shall have any duties or liabilities, including fiduciary duties, to the Partnership or
any Limited Partner and the provisions of this Agreement, to the extent that they restrict,
eliminate or otherwise modify the duties and liabilities, including fiduciary duties, of the
General Partner or any other Indemnitee otherwise existing at law or in equity, are agreed by the
Partners to replace such other duties and liabilities of the General Partner or such other
Indemnitee.

     (f) The Unitholders hereby authorize the General Partner, on behalf of the Partnership as a
partner or member of a Group Member, to approve of actions by the general partner or managing
member of such Group Member similar to those actions permitted to be taken by the General Partner
pursuant to this Section 7.9.

Section 7.10 Other Matters Concerning the General Partner.

     (a) The General Partner may rely and shall be protected in acting or refraining from acting
upon any resolution, certificate, statement, instrument, opinion, report, notice, request, consent,
order, bond, debenture or other paper or document believed by it to be genuine and to have been
signed or presented by the proper party or parties.

     (b) The General Partner may consult with legal counsel, accountants, appraisers, management
consultants, investment bankers and other consultants and advisers selected by it,
and any act taken or omitted to be taken in reliance upon the opinion (including an Opinion of
Counsel) of such Persons as to matters that the General Partner reasonably believes to be within
such Person’s professional or expert competence shall be conclusively presumed to have been done or
omitted in good faith and in accordance with such opinion.

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     (c) The General Partner shall have the right, in respect of any of its powers or obligations
hereunder, to act through any of its duly authorized officers, a duly appointed attorney or
attorneys-in-fact or the duly authorized officers of the Partnership.

Section 7.11 Purchase or Sale of Partnership Securities.

     The General Partner may cause the Partnership to purchase or otherwise acquire Partnership
Securities; provided that, except as permitted pursuant to Section 4.10, the General Partner may
not cause any Group Member to purchase Subordinated Units during the Subordination Period. As long
as Partnership Securities are held by any Group Member, such Partnership Securities shall not be
considered Outstanding for any purpose, except as otherwise provided herein. The General Partner
or any Affiliate of the General Partner may also purchase or otherwise acquire and sell or
otherwise dispose of Partnership Securities for its own account, subject to the provisions of
Article IV and Article X.

Section 7.12 Registration Rights of the General Partner and its Affiliates.

     (a) If (i) the General Partner or any Affiliate of the General Partner (including for purposes
of this Section 7.12, any Person that is an Affiliate of the General Partner at the date hereof
notwithstanding that it may later cease to be an Affiliate of the General Partner) holds
Partnership Securities that it desires to sell and (ii) Rule 144 of the Securities Act (or any
successor rule or regulation to Rule 144) or another exemption from registration is not available
to enable such holder of Partnership Securities (the “Holder”) to dispose of the number of
Partnership Securities it desires to sell at the time it desires to do so without registration
under the Securities Act, then at the option and upon the request of the Holder, the Partnership
shall file with the Commission as promptly as practicable after receiving such request, and use all
commercially reasonable efforts to cause to become effective and remain effective for a period of
not less than six months following its effective date or such shorter period as shall terminate
when all Partnership Securities covered by such registration statement have been sold, a
registration statement under the Securities Act registering the offering and sale of the number of
Partnership Securities specified by the Holder; provided, however, that the Partnership shall not
be required to effect more than three registrations pursuant to Section 7.12(a) and Section
7.12(c); and provided further, however, that if the Conflicts Committee determines that the
requested registration would be materially detrimental to the Partnership and its Partners because
such registration would (x) materially interfere with a significant acquisition, reorganization or
other similar transaction involving the Partnership, (y) require premature disclosure of material
information that the Partnership has a bona fide business purpose for preserving as confidential or
(z) render the Partnership unable to comply with requirements
under applicable securities laws, then the Partnership shall have the right to postpone such
requested registration for a period of not more than three months after receipt of the Holder’s
request, such right pursuant to this Section 7.12(a) or Section 7.12(b) not to be utilized more
than twice in any twelve-month period. Except as provided in the preceding sentence, the
Partnership shall be deemed not to have used all commercially reasonable efforts to keep the
registration statement effective during the applicable period if it voluntarily takes any action
that would result in Holders of Partnership Securities covered thereby not being able to offer and
sell such Partnership Securities at any time during such period, unless such action is required by
applicable law. In connection with any registration pursuant to the first sentence of this Section

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7.12(a), the Partnership shall (i) promptly prepare and file (A) such documents as may be necessary
to register or qualify the securities subject to such registration under the securities laws of
such states as the Holder shall reasonably request; provided, however, that no such qualification
shall be required in any jurisdiction where, as a result thereof, the Partnership would become
subject to general service of process or to taxation or qualification to do business as a foreign
corporation or partnership doing business in such jurisdiction solely as a result of such
registration, and (B) such documents as may be necessary to apply for listing or to list the
Partnership Securities subject to such registration on such National Securities Exchange as the
Holder shall reasonably request, and (ii) do any and all other acts and things that may be
necessary or appropriate to enable the Holder to consummate a public sale of such Partnership
Securities in such states. Except as set forth in Section 7.12(d), all costs and expenses of any
such registration and offering (other than the underwriting discounts and commissions) shall be
paid by the Partnership, without reimbursement by the Holder.

     (b) if any Holder holds Partnership Securities that it desires to sell and Rule 144 of the
Securities Act (or any successor rule or regulation to Rule 144) or another exemption from
registration is not available to enable such Holder to dispose of the number of Partnership
Securities it desires to sell at the time it desires to do so without registration under the
Securities Act, then at the option and upon the request of the Holder, the Partnership shall file
with the Commission as promptly as practicable after receiving such request, and use all reasonable
efforts to cause to become effective and remain effective for a period of not less than six months
following its effective date or such shorter period as shall terminate when all Partnership
Securities covered by such shelf registration statement have been sold, a “shelf” registration
statement covering the Partnership Securities specified by the Holder on an appropriate form under
Rule 415 under the Securities Act, or any similar rule that may be adopted by the Commission;
provided, however, that the Partnership shall not be required to effect more than three
registrations pursuant to Section 7.12(a) and this Section 7.12(b); and provided further, however,
that if the Conflicts Committee determines in good faith that any offering under, or the use of any
prospectus forming a part of, the shelf registration statement would be materially detrimental to
the Partnership and its Partners because such offering or use would (x) materially interfere with a
significant acquisition, reorganization or other similar transaction involving the Partnership, (y)
require premature disclosure of material information that the Partnership has a bona fide business
purpose for preserving as confidential or (z) render the Partnership unable to comply with
requirements under applicable securities laws, then the Partnership shall have the right to suspend
such offering or use for a period of not more than three months after receipt of the Holder’s
request, such right pursuant to Section 7.12(a) or this Section 7.12(b) not to be utilized more
than twice in any twelve-month period. Except as provided in the preceding sentence, the
Partnership shall be deemed not to have used all reasonable efforts to keep the shelf
registration statement effective during the applicable period if it voluntarily takes any
action that would result in Holders of Partnership Securities covered thereby not being able to
offer and sell such Partnership Securities at any time during such period, unless such action is
required by applicable law. In connection with any shelf registration pursuant to this Section
7.12(b), the Partnership shall (i) promptly prepare and file (A) such documents as may be necessary
to register or qualify the securities subject to such shelf registration under the securities laws
of such states as the Holder shall reasonably request; provided, however, that no such
qualification shall be required in any jurisdiction where, as a result thereof, the Partnership
would become subject to general service of process or to taxation or qualification to do business
as a foreign

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corporation or partnership doing business in such jurisdiction solely as a result of
such shelf registration, and (B) such documents as may be necessary to apply for listing or to list
the Partnership Securities subject to such shelf registration on such National Securities Exchange
as the Holder shall reasonably request, and (ii) do any and all other acts and things that may be
necessary or appropriate to enable the Holder to consummate a public sale of such Partnership
Securities in such states. Except as set forth in Section 7.12(d), all costs and expenses of any
such shelf registration and offering (other than the underwriting discounts and commissions) shall
be paid by the Partnership, without reimbursement by the Holder.

     (c) If the Partnership shall at any time propose to file a registration statement under the
Securities Act for an offering of equity securities of the Partnership for cash (other than an
offering relating solely to an employee benefit plan), the Partnership shall use all reasonable
efforts to include such number or amount of securities held by the Holder in such registration
statement as the Holder shall request; provided, that the Partnership is not required to make any
effort or take any action to so include the securities of the Holder once the registration
statement is declared effective by the Commission, including any registration statement providing
for the offering from time to time of securities pursuant to Rule 415 of the Securities Act. If
the proposed offering pursuant to this Section 7.12(c) shall be an underwritten offering, then, in
the event that the managing underwriter or managing underwriters of such offering advise the
Partnership and the Holder in writing that in their opinion the inclusion of all or some of the
Holder’s Partnership Securities would adversely and materially affect the success of the offering,
the Partnership shall include in such offering only that number or amount, if any, of securities
held by the Holder that, in the opinion of the managing underwriter or managing underwriters, will
not so adversely and materially affect the offering. Except as set forth in Section 7.12(d), all
costs and expenses of any such registration and offering (other than the underwriting discounts and
commissions) shall be paid by the Partnership, without reimbursement by the Holder.

     (d) If underwriters are engaged in connection with any registration referred to in this
Section 7.12, the Partnership shall provide indemnification, representations, covenants, opinions
and other assurance to the underwriters in form and substance reasonably satisfactory to such
underwriters. Further, in addition to and not in limitation of the Partnership’s obligation under
Section 7.7, the Partnership shall, to the fullest extent permitted by law, indemnify and hold
harmless the Holder, its officers, directors and each Person who controls the Holder (within the
meaning of the Securities Act) and any agent thereof (collectively, “Indemnified Persons”) from and
against any and all losses, claims, damages, liabilities, joint or several, expenses (including
legal fees and expenses), judgments, fines, penalties, interest, settlements or other amounts
arising from any and all claims, demands, actions, suits or proceedings, whether civil, criminal,
administrative or investigative, in which any Indemnified Person may be involved, or is
threatened to be involved, as a party or otherwise under the Securities Act or otherwise
(hereinafter referred to in this Section 7.12(d) as a “claim” and in the plural as “claims”) based
upon, arising out of or resulting from any untrue statement or alleged untrue statement of any
material fact contained in any registration statement under which any Partnership Securities were
registered under the Securities Act or any state securities or Blue Sky laws, in any preliminary
prospectus (if used prior to the effective date of such registration statement), or in any summary
or final prospectus or in any amendment or supplement thereto (if used during the period the
Partnership is required to keep the registration statement current), or arising out of, based upon
or resulting from the omission or alleged omission to state therein a material fact required to be

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stated therein or necessary to make the statements made therein not misleading; provided, however,
that the Partnership shall not be liable to any Indemnified Person to the extent that any such
claim arises out of, is based upon or results from an untrue statement or alleged untrue statement
or omission or alleged omission made in such registration statement, such preliminary, summary or
final prospectus or such amendment or supplement, in reliance upon and in conformity with written
information furnished to the Partnership by or on behalf of such Indemnified Person specifically
for use in the preparation thereof.

     (e) The provisions of Section 7.12(a), Section 7.12(b) and Section 7.12(c) shall continue to
be applicable with respect to the General Partner (and any of the General Partner’s Affiliates)
after it ceases to be a General Partner of the Partnership, during a period of two years subsequent
to the effective date of such cessation and for so long thereafter as is required for the Holder to
sell all of the Partnership Securities with respect to which it has requested during such two-year
period inclusion in a registration statement otherwise filed or that a registration statement be
filed; provided, however, that the Partnership shall not be required to file successive
registration statements covering the same Partnership Securities for which registration was
demanded during such two-year period. The provisions of Section 7.12(d) shall continue in effect
thereafter.

     (f) The rights to cause the Partnership to register Partnership Securities pursuant to this
Section 7.12 may be assigned (but only with all related obligations) by a Holder to a transferee or
assignee of such Partnership Securities, provided (i) the Partnership is, within a reasonable time
after such transfer, furnished with written notice of the name and address of such transferee or
assignee and the Partnership Securities with respect to which such registration rights are being
assigned; and (ii) such transferee or assignee agrees in writing to be bound by and subject to the
terms set forth in this Section 7.12.

     (g) Any request to register Partnership Securities pursuant to this Section 7.12 shall (i)
specify the Partnership Securities intended to be offered and sold by the Person making the
request, (ii) express such Person’s present intent to offer such Partnership Securities for
distribution, (iii) describe the nature or method of the proposed offer and sale of Partnership
Securities, and (iv) contain the undertaking of such Person to provide all such information and
materials and take all action as may be required in order to permit the Partnership to comply with
all applicable requirements in connection with the registration of such Partnership Securities.

Section 7.13 Reliance by Third Parties.

     Notwithstanding anything to the contrary in this Agreement, any Person dealing with the
Partnership shall be entitled to assume that the General Partner and any officer of the General
Partner authorized by the General Partner to act on behalf of and in the name of the Partnership
has full power and authority to encumber, sell or otherwise use in any manner any and all assets of
the Partnership and to enter into any authorized contracts on behalf of the Partnership, and such
Person shall be entitled to deal with the General Partner or any such officer as if it were the
Partnership’s sole party in interest, both legally and beneficially. Each Limited Partner hereby
waives any and all defenses or other remedies that may be available against such Person to contest,
negate or disaffirm any action of the General Partner or any such officer in connection with any
such dealing. In no event shall any Person dealing with the General Partner or any such officer or
its representatives be obligated to ascertain that the terms of this Agreement have been

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complied with or to inquire into the necessity or expedience of any act or action of the General Partner or
any such officer or its representatives. Each and every certificate, document or other instrument
executed on behalf of the Partnership by the General Partner or its representatives shall be
conclusive evidence in favor of any and every Person relying thereon or claiming thereunder that
(a) at the time of the execution and delivery of such certificate, document or instrument, this
Agreement was in full force and effect, (b) the Person executing and delivering such certificate,
document or instrument was duly authorized and empowered to do so for and on behalf of the
Partnership and (c) such certificate, document or instrument was duly executed and delivered in
accordance with the terms and provisions of this Agreement and is binding upon the Partnership.

ARTICLE VIII

BOOKS, RECORDS, ACCOUNTING AND REPORTS

Section 8.1 Records and Accounting.

     The General Partner shall keep or cause to be kept at the principal office of the Partnership
appropriate books and records with respect to the Partnership’s business, including all books and
records necessary to provide to the Limited Partners any information required to be provided
pursuant to Section 3.4(a). Any books and records maintained by or on behalf of the Partnership in
the regular course of its business, including the record of the Record Holders and assignees of
Units or other Partnership Securities, books of account and records of Partnership proceedings, may
be kept on, or be in the form of, computer disks, hard drives, punch cards, magnetic tape,
photographs, micrographics or any other information storage device; provided, that the books and
records so maintained are convertible into clearly legible written form within a reasonable period
of time. The books of the Partnership shall be maintained, for financial reporting purposes, on an
accrual basis in accordance with U.S. GAAP.

Section 8.2 Fiscal Year.

     The fiscal year of the Partnership shall be a fiscal year ending December 31.

Section 8.3 Reports.

     (a) As soon as practicable, but in no event later than 120 days after the close of each fiscal
year of the Partnership, the General Partner shall cause to be mailed or made available to each
Record Holder of a Unit as of a date selected by the General Partner, an annual report containing
financial statements of the Partnership for such fiscal year of the Partnership, presented in
accordance with U.S. GAAP, including a balance sheet and statements of operations, Partnership
equity and cash flows, such statements to be audited by a firm of independent public accountants
selected by the General Partner.

     (b) As soon as practicable, but in no event later than 90 days after the close of each Quarter
except the last Quarter of each fiscal year, the General Partner shall cause to be mailed or made
available to each Record Holder of a Unit, as of a date selected by the General Partner, a report
containing unaudited financial statements of the Partnership and such other information as may be
required by applicable law, regulation or rule of any National Securities Exchange on

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which the Units are listed or admitted to trading, or as the General Partner determines to be necessary or
appropriate.

ARTICLE IX

TAX MATTERS

Section 9.1 Tax Returns and Information.

     The Partnership shall timely file all returns of the Partnership that are required for
federal, state and local income tax purposes on the basis of the accrual method and a taxable year
ending on December 31. The tax information reasonably required by Record Holders for federal and
state income tax reporting purposes with respect to a taxable year shall be furnished to them
within 90 days of the close of the calendar year in which the Partnership’s taxable year ends. The
classification, realization and recognition of income, gain, losses and deductions and other items
shall be on the accrual method of accounting for federal income tax purposes.

Section 9.2 Tax Elections.

     (a) The Partnership shall make the election under Section 754 of the Code in accordance with
applicable regulations thereunder, subject to the reservation of the right to seek to revoke any
such election upon the General Partner’s determination that such revocation is in the best
interests of the Limited Partners. Notwithstanding any other provision herein contained, for the
purposes of computing the adjustments under Section 743(b) of the Code, the General Partner shall
be authorized (but not required) to adopt a convention whereby the price paid by a transferee of a
Limited Partner Interest will be deemed to be the lowest quoted closing price of the Limited
Partner Interests on any National Securities Exchange on which such Limited
Partner Interests are listed during the calendar month in which such transfer is deemed to
occur pursuant to Section 6.2(g) without regard to the actual price paid by such transferee.

     (b) Except as otherwise provided herein, the General Partner shall determine whether the
Partnership should make any other elections permitted by the Code.

Section 9.3 Tax Controversies.

     Subject to the provisions hereof, the General Partner is designated as the Tax Matters Partner
(as defined in the Code) and is authorized and required to represent the Partnership (at the
Partnership’s expense) in connection with all examinations of the Partnership’s affairs by tax
authorities, including resulting administrative and judicial proceedings, and to expend Partnership
funds for professional services and costs associated therewith. Each Partner agrees to cooperate
with the General Partner and to do or refrain from doing any or all things reasonably required by
the General Partner to conduct such proceedings.

Section 9.4 Withholding.

     Notwithstanding any other provision of this Agreement, the General Partner is authorized to
take any action that may be required to cause the Partnership and other Group Members to comply
with any withholding requirements established under the Code or any other federal, state

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or local law including, without limitation, pursuant to Sections 1441, 1442, 1445 and 1446 of the Code. To
the extent that the Partnership is required or elects to withhold and pay over to any taxing
authority any amount resulting from the allocation or distribution of income to any Partner
(including, without limitation, by reason of Section 1446 of the Code), the General Partner may
treat the amount withheld as a distribution of cash pursuant to Section 6.3 in the amount of such
withholding from such Partner.

ARTICLE X

ADMISSION OF PARTNERS

Section 10.1 Admission of Initial Limited Partners.

     Upon the issuance by the Partnership of Common Units, Subordinated Units and Incentive
Distribution Rights to the General Partner, WES, Williams Energy, L.L.C., Williams Discovery
Pipeline LLC, Williams Partners Holdings LLC and the Underwriters as described in Section 5.2 and
Section 5.3 in connection with the Initial Offering, the General Partner shall admit such parties
to the Partnership as Initial Limited Partners in respect of the Common Units, Subordinated Units
or Incentive Distribution Rights issued to them.

Section 10.2 Admission of Limited Partners.

     (a) By acceptance of the transfer of any Limited Partner Interests in accordance with Article
IV or the acceptance of any Limited Partner Interests issued pursuant to Article V or pursuant to a
merger or consolidation pursuant to Article XIV, and except as provided in Section 4.9, each
transferee of, or other such Person acquiring, a Limited Partner Interest (including any nominee
holder or an agent or representative acquiring such Limited Partner Interests for the account of
another Person) (i) shall be admitted to the Partnership as a Limited Partner with respect to the
Limited Partner Interests so transferred or issued to such Person when any such transfer, issuance
or admission is reflected in the books and records of the Partnership and such Limited Partner
becomes the Record Holder of the Limited Partner Interests so transferred, (ii) shall become bound
by the terms of this Agreement, (iii) represents that the transferee has the capacity, power and
authority to enter into this Agreement, (iv) grants the powers of attorney set forth in this
Agreement and (v) makes the consents and waivers contained in this Agreement, all with or without
execution of this Agreement by such Person. The transfer of any Limited Partner Interests and the
admission of any new Limited Partner shall not constitute an amendment to this Agreement. A Person
may become a Limited Partner or Record Holder of a Limited Partner Interest without the consent or
approval of any of the Partners. A Person may not become a Limited Partner without acquiring a
Limited Partner Interest and until such Person is reflected in the books and records of the
Partnership as the Record Holder of such Limited Partner Interest. The rights and obligations of a
Person who is a Non-citizen Assignee shall be determined in accordance with Section 4.9 hereof.

     (b) The name and mailing address of each Limited Partner shall be listed on the books and
records of the Partnership maintained for such purpose by the Partnership or the Transfer Agent.
The General Partner shall update the books and records of the Partnership from time to time as
necessary to reflect accurately the information therein (or shall cause the Transfer Agent

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to do so, as applicable). A Limited Partner Interest may be represented by a Certificate, as provided in
Section 4.1 hereof.

     (c) Any transfer of a Limited Partner Interest shall not entitle the transferee to share in
the profits and losses, to receive distributions, to receive allocations of income, gain, loss,
deduction or credit or any similar item or to any other rights to which the transferor was entitled
until the transferee becomes a Limited Partner pursuant to Section 10.2(a).

Section 10.3 Admission of Successor General Partner.

     A successor General Partner approved pursuant to Section 11.1 or Section 11.2 or the
transferee of or successor to all of the General Partner Interest (represented by General Partners
Units) pursuant to Section 4.6 who is proposed to be admitted as a successor General Partner shall
be admitted to the Partnership as the General Partner, effective immediately prior to the
withdrawal or removal of the predecessor or transferring General Partner, pursuant to Section 11.1
or Section 11.2 or the transfer of the General Partner Interest (represented by
General Partners Units) pursuant to Section 4.6, provided, however, that no such successor
shall be admitted to the Partnership until compliance with the terms of Section 4.6 has occurred
and such successor has executed and delivered such other documents or instruments as may be
required to effect such admission. Any such successor shall, subject to the terms hereof, carry on
the business of the members of the Partnership Group without dissolution.

Section 10.4 Amendment of Agreement and Certificate of Limited Partnership.

     To effect the admission to the Partnership of any Partner, the General Partner shall take all
steps necessary or appropriate under the Delaware Act to amend the records of the Partnership to
reflect such admission and, if necessary, to prepare as soon as practicable an amendment to this
Agreement and, if required by law, the General Partner shall prepare and file an amendment to the
Certificate of Limited Partnership, and the General Partner may for this purpose, among others,
exercise the power of attorney granted pursuant to Section 2.6.

ARTICLE XI

WITHDRAWAL OR REMOVAL OF PARTNERS

Section 11.1 Withdrawal of the General Partner.

     (a) The General Partner shall be deemed to have withdrawn from the Partnership upon the
occurrence of any one of the following events (each such event herein referred to as an “Event of
Withdrawal”);

          (i) The General Partner voluntarily withdraws from the Partnership by giving written
notice to the other Partners;

          (ii) The General Partner transfers all of its rights as General Partner pursuant to
Section 4.6;

          (iii) The General Partner is removed pursuant to Section 11.2;

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          (iv) The General Partner (A) makes a general assignment for the benefit of creditors;
(B) files a voluntary bankruptcy petition for relief under Chapter 7 of the United States
Bankruptcy Code; (C) files a petition or answer seeking for itself a liquidation,
dissolution or similar relief (but not a reorganization) under any law; (D) files an answer
or other pleading admitting or failing to contest the material allegations of a petition
filed against the General Partner in a proceeding of the type described in clauses (A)-(C)
of this Section 11.1(a)(iv); or (E) seeks, consents to or acquiesces in the appointment of a
trustee (but not a debtor-in-possession), receiver or liquidator of the General Partner or
of all or any substantial part of its properties;

          (v) A final and non-appealable order of relief under Chapter 7 of the United States
Bankruptcy Code is entered by a court with appropriate jurisdiction pursuant to a voluntary
or involuntary petition by or against the General Partner; or

          (vi) (A) in the event the General Partner is a corporation, a certificate of
dissolution or its equivalent is filed for the General Partner, or 90 days expire after the
date of notice to the General Partner of revocation of its charter without a reinstatement
of its charter, under the laws of its state of incorporation; (B) in the event the General
Partner is a partnership or a limited liability company, the dissolution and commencement of
winding up of the General Partner; (C) in the event the General Partner is acting in such
capacity by virtue of being a trustee of a trust, the termination of the trust; (D) in the
event the General Partner is a natural person, his death or adjudication of incompetency;
and (E) otherwise in the event of the termination of the General Partner.

If an Event of Withdrawal specified in Section 11.1(a)(iv), (v) or (vi)(A), (B), (C) or (E) occurs,
the withdrawing General Partner shall give notice to the Limited Partners within 30 days after such
occurrence. The Partners hereby agree that only the Events of Withdrawal described in this Section
11.1 shall result in the withdrawal of the General Partner from the Partnership.

     (b) Withdrawal of the General Partner from the Partnership upon the occurrence of an Event of
Withdrawal shall not constitute a breach of this Agreement under the following circumstances: (i)
at any time during the period beginning on the Closing Date and ending at 12:00 midnight, Central
Time, on June 30, 2015, the General Partner voluntarily withdraws by giving at least 90 days’
advance notice of its intention to withdraw to the Limited Partners; provided, that prior to the
effective date of such withdrawal, the withdrawal is approved by Unitholders holding at least a
majority of the Outstanding Common Units (excluding Common Units held by the General Partner and
its Affiliates) and the General Partner delivers to the Partnership an Opinion of Counsel
(“Withdrawal Opinion of Counsel”) that such withdrawal (following the selection of the successor
General Partner) would not result in the loss of the limited liability of any Limited Partner or
any Group Member or cause any Group Member to be treated as an association taxable as a corporation
or otherwise to be taxed as an entity for federal income tax purposes (to the extent not already so
treated or taxed); (ii) at any time after 12:00 midnight, Central Time, on June 30, 2015, the
General Partner voluntarily withdraws by giving at least 90 days’ advance notice to the
Unitholders, such withdrawal to take effect on the date specified in such notice; (iii) at any time
that the General Partner ceases to be the General Partner pursuant to Section 11.1(a)(ii) or is
removed pursuant to Section 11.2; or (iv) notwithstanding

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clause (i) of this sentence, at any time that the General Partner voluntarily withdraws by giving at least 90 days’ advance notice of its
intention to withdraw to the Limited Partners, such withdrawal to take effect on the date specified
in the notice, if at the time such notice is given one Person and its Affiliates (other than the
General Partner and its Affiliates) own beneficially or of record or control at least 50% of the
Outstanding Units. The withdrawal of the General Partner from the Partnership upon the occurrence
of an Event of Withdrawal shall also constitute the withdrawal of the General Partner as general
partner or managing member, if any, to the extent applicable, of the other Group Members. If the
General Partner gives a notice of withdrawal pursuant to Section 11.1(a)(i), the holders of a Unit
Majority, may, prior to the effective date of such withdrawal, elect a successor General Partner.
The Person so elected as
successor General Partner shall automatically become the successor general partner or managing
member, to the extent applicable, of the other Group Members of which the General Partner is a
general partner or a managing member. If, prior to the effective date of the General Partner’s
withdrawal, a successor is not selected by the Unitholders as provided herein or the Partnership
does not receive a Withdrawal Opinion of Counsel, the Partnership shall be dissolved in accordance
with Section 12.1. Any successor General Partner elected in accordance with the terms of this
Section 11.1 shall be subject to the provisions of Section 10.3.

Section 11.2 Removal of the General Partner.

     The General Partner may be removed if such removal is approved by the Unitholders holding at
least 66 2/3% of the Outstanding Units (including Units held by the General Partner and its
Affiliates) voting as a single class. Any such action by such holders for removal of the General
Partner must also provide for the election of a successor General Partner by the Unitholders
holding a majority of the outstanding Common Units voting as a class and a majority of the
outstanding Subordinated Units voting as a class (including Units held by the General Partner and
its Affiliates). Such removal shall be effective immediately following the admission of a
successor General Partner pursuant to Section 10.3. The removal of the General Partner shall also
automatically constitute the removal of the General Partner as general partner or managing member,
to the extent applicable, of the other Group Members of which the General Partner is a general
partner or a managing member. If a Person is elected as a successor General Partner in accordance
with the terms of this Section 11.2, such Person shall, upon admission pursuant to Section 10.3,
automatically become a successor general partner or managing member, to the extent applicable, of
the other Group Members of which the General Partner is a general partner or a managing member.
The right of the holders of Outstanding Units to remove the General Partner shall not exist or be
exercised unless the Partnership has received an opinion opining as to the matters covered by a
Withdrawal Opinion of Counsel. Any successor General Partner elected in accordance with the terms
of this Section 11.2 shall be subject to the provisions of Section 10.3.

Section 11.3 Interest of Departing Partner and Successor General Partner.

     (a) In the event of (i) withdrawal of the General Partner under circumstances where such
withdrawal does not violate this Agreement or (ii) removal of the General Partner by the holders of
Outstanding Units under circumstances where Cause does not exist, if the successor General Partner
is elected in accordance with the terms of Section 11.1 or Section 11.2, the Departing Partner
shall have the option, exercisable prior to the effective date of the departure of such

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Departing Partner, to require its successor to purchase its General Partner Interest (represented by General
Partners Units) and its general partner interest (or equivalent interest), if any, in the other
Group Members and all of its Incentive Distribution Rights (collectively, the “Combined Interest”)
in exchange for an amount in cash equal to the fair market value of such Combined Interest, such
amount to be determined and payable as of the effective date of its departure. If the General
Partner is removed by the Unitholders under circumstances where Cause exists or if
the General Partner withdraws under circumstances where such withdrawal violates this
Agreement, and if a successor General Partner is elected in accordance with the terms of Section
11.1 or Section 11.2 (or if the business of the Partnership is continued pursuant to Section 12.2
and the successor General Partner is not the former General Partner), such successor shall have the
option, exercisable prior to the effective date of the departure of such Departing Partner (or, in
the event the business of the Partnership is continued, prior to the date the business of the
Partnership is continued), to purchase the Combined Interest for such fair market value of such
Combined Interest of the Departing Partner. In either event, the Departing Partner shall be
entitled to receive all reimbursements due such Departing Partner pursuant to Section 7.4,
including any employee-related liabilities (including severance liabilities), incurred in
connection with the termination of any employees employed by the Departing Partner or its
Affiliates (other than any Group Member) for the benefit of the Partnership or the other Group
Members.

     For purposes of this Section 11.3(a), the fair market value of the Departing Partner’s
Combined Interest shall be determined by agreement between the Departing Partner and its successor
or, failing agreement within 30 days after the effective date of such Departing Partner’s
departure, by an independent investment banking firm or other independent expert selected by the
Departing Partner and its successor, which, in turn, may rely on other experts, and the
determination of which shall be conclusive as to such matter. If such parties cannot agree upon
one independent investment banking firm or other independent expert within 45 days after the
effective date of such departure, then the Departing Partner shall designate an independent
investment banking firm or other independent expert, the Departing Partner’s successor shall
designate an independent investment banking firm or other independent expert, and such firms or
experts shall mutually select a third independent investment banking firm or independent expert,
which third independent investment banking firm or other independent expert shall determine the
fair market value of the Combined Interest of the Departing Partner. In making its determination,
such third independent investment banking firm or other independent expert may consider the then
current trading price of Units on any National Securities Exchange on which Units are then listed
or admitted to trading, the value of the Partnership’s assets, the rights and obligations of the
Departing Partner and other factors it may deem relevant.

     (b) If the Combined Interest is not purchased in the manner set forth in Section 11.3(a), the
Departing Partner (or its transferee) shall become a Limited Partner and its Combined Interest
shall be converted into Common Units pursuant to a valuation made by an investment banking firm or
other independent expert selected pursuant to Section 11.3(a), without reduction in such
Partnership Interest (but subject to proportionate dilution by reason of the admission of its
successor). Any successor General Partner shall indemnify the Departing Partner (or its
transferee) as to all debts and liabilities of the Partnership arising on or after the date on
which the Departing Partner (or its transferee) becomes a Limited Partner. For purposes of this

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Agreement, conversion of the Combined Interest of the Departing Partner to Common Units will be
characterized as if the Departing Partner (or its transferee) contributed its Combined Interest to
the Partnership in exchange for the newly issued Common Units.

     (c) If a successor General Partner is elected in accordance with the terms of Section 11.1 or
Section 11.2 (or if the business of the Partnership is continued pursuant to Section 12.2 and
the successor General Partner is not the former General Partner) and the option described in
Section 11.3(a) is not exercised by the party entitled to do so, the successor General Partner
shall, at the effective date of its admission to the Partnership, contribute to the Partnership
cash in the amount equal to the product of the Percentage Interest of the Departing Partner and the
Net Agreed Value of the Partnership’s assets on such date. In such event, such successor General
Partner shall, subject to the following sentence, be entitled to its Percentage Interest of all
Partnership allocations and distributions to which the Departing Partner was entitled. In
addition, the successor General Partner shall cause this Agreement to be amended to reflect that,
from and after the date of such successor General Partner’s admission, the successor General
Partner’s interest in all Partnership distributions and allocations shall be its Percentage
Interest.

			
	Section 11.4	 	Termination of Subordination Period, Conversion of Subordinated Units and Extinguishment of Cumulative Common Unit Arrearages.

     Notwithstanding any provision of this Agreement, if the General Partner is removed as general
partner of the Partnership under circumstances where Cause does not exist and Units held by the
General Partner and its Affiliates are not voted in favor of such removal, (i) the Subordination
Period will end and all Outstanding Subordinated Units will immediately and automatically convert
into Common Units on a one-for-one basis, (ii) all Cumulative Common Unit Arrearages on the Common
Units will be extinguished and (iii) the General Partner will have the right to convert its General
Partner Interest (represented by General Partner Units) and its Incentive Distribution Rights into
Common Units or to receive cash in exchange therefor.

			
	Section 11.5	 	Withdrawal of Limited Partners.

     No Limited Partner shall have any right to withdraw from the Partnership; provided, however,
that when a transferee of a Limited Partner’s Limited Partner Interest becomes a Record Holder of
the Limited Partner Interest so transferred, such transferring Limited Partner shall cease to be a
Limited Partner with respect to the Limited Partner Interest so transferred.

ARTICLE XII

DISSOLUTION AND LIQUIDATION

			
	Section 12.1	 	Dissolution.

     The Partnership shall not be dissolved by the admission of additional Limited Partners or by
the admission of a successor General Partner in accordance with the terms of this Agreement. Upon
the removal or withdrawal of the General Partner, if a successor General Partner is elected
pursuant to Section 11.1 or Section 11.2, the Partnership shall not be dissolved and such successor
General Partner shall continue the business of the Partnership. The Partnership shall dissolve,
and (subject to Section 12.2) its affairs shall be wound up, upon:

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     (a) an election to dissolve the Partnership by the General Partner that is approved by the
holders of a Unit Majority;

     (b) the entry of a decree of judicial dissolution of the Partnership pursuant to the
provisions of the Delaware Act;

     (c) an Event of Withdrawal of the General Partner as provided in Section 11.1(a) (other than
Section 11.1(a)(ii)), unless a successor is elected and an Opinion of Counsel is received as
provided in Section 11.1(b) or Section 11.2 and such successor is admitted to the Partnership
pursuant to Section 10.3; or

     (d) at any time there are no Limited Partners, unless the Partnership is continued without
dissolution in accordance with the Delaware Act.

Section 12.2 Continuation of the Business of the Partnership After Dissolution.

     Upon (a) dissolution of the Partnership following an Event of Withdrawal caused by the
withdrawal or removal of the General Partner as provided in Section 11.1(a)(i) or (iii) and the
failure of the Partners to select a successor to such Departing Partner pursuant to Section 11.1 or
Section 11.2, then within 90 days thereafter, or (b) dissolution of the Partnership upon an event
constituting an Event of Withdrawal as defined in Section 11.1(a)(iv), (v) or (vi), then, to the
maximum extent permitted by law, within 180 days thereafter, the holders of a Unit Majority may
elect to continue the business of the Partnership on the same terms and conditions set forth in
this Agreement by appointing as a successor General Partner a Person approved by the holders of a
Unit Majority. Unless such an election is made within the applicable time period as set forth
above, the Partnership shall conduct only activities necessary to wind up its affairs. If such an
election is so made, then:

          (i) the Partnership shall continue without dissolution unless earlier dissolved in
accordance with this Article XII;

          (ii) if the successor General Partner is not the former General Partner, then the
interest of the former General Partner shall be treated in the manner provided in Section
11.3; and

          (iii) the successor General Partner shall be admitted to the Partnership as General
Partner, effective as of the Event of Withdrawal, by agreeing in writing to be bound by this
Agreement; provided, that the right of the holders of a Unit Majority to approve a successor
General Partner and to continue the business of the Partnership shall not exist and may not
be exercised unless the Partnership has received an Opinion of Counsel that (x) the exercise
of the right would not result in the loss of limited liability of any Limited Partner and
(y) neither the Partnership nor any Group Member would be treated as an association taxable
as a corporation or otherwise be taxable as an entity for federal income tax purposes upon
the exercise of such right to continue (to the extent not already so treated or taxed).

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Section 12.3 Liquidator.

     Upon dissolution of the Partnership, unless the business of the Partnership is continued
pursuant to Section 12.2, the General Partner shall select one or more Persons to act as
Liquidator. The Liquidator (if other than the General Partner) shall be entitled to receive such
compensation for its services as may be approved by holders of at least a majority of the
Outstanding Common Units and Subordinated Units voting as a single class. The Liquidator (if other
than the General Partner) shall agree not to resign at any time without 15 days’ prior notice and
may be removed at any time, with or without cause, by notice of removal approved by holders of at
least a majority of the Outstanding Common Units and Subordinated Units voting as a single class.
Upon dissolution, removal or resignation of the Liquidator, a successor and substitute Liquidator
(who shall have and succeed to all rights, powers and duties of the original Liquidator) shall
within 30 days thereafter be approved by holders of at least a majority of the Outstanding Common
Units and Subordinated Units voting as a single class. The right to approve a successor or
substitute Liquidator in the manner provided herein shall be deemed to refer also to any such
successor or substitute Liquidator approved in the manner herein provided. Except as expressly
provided in this Article XII, the Liquidator approved in the manner provided herein shall have and
may exercise, without further authorization or consent of any of the parties hereto, all of the
powers conferred upon the General Partner under the terms of this Agreement (but subject to all of
the applicable limitations, contractual and otherwise, upon the exercise of such powers, other than
the limitation on sale set forth in Section 7.3) necessary or appropriate to carry out the duties
and functions of the Liquidator hereunder for and during the period of time required to complete
the winding up and liquidation of the Partnership as provided for herein.

Section 12.4 Liquidation.

     The Liquidator shall proceed to dispose of the assets of the Partnership, discharge its
liabilities, and otherwise wind up its affairs in such manner and over such period as determined by
the Liquidator, subject to Section 17-804 of the Delaware Act and the following:

     (a) The assets may be disposed of by public or private sale or by distribution in kind to one
or more Partners on such terms as the Liquidator and such Partner or Partners may agree. If any
property is distributed in kind, the Partner receiving the property shall be deemed for purposes of
Section 12.4(c) to have received cash equal to its fair market value; and contemporaneously
therewith, appropriate cash distributions must be made to the other Partners. The Liquidator may
defer liquidation or distribution of the Partnership’s assets for a reasonable time if it
determines that an immediate sale or distribution of all or some of the Partnership’s assets would
be impractical or would cause undue loss to the Partners. The Liquidator may distribute the
Partnership’s assets, in whole or in part, in kind if it determines that a sale would be
impractical or would cause undue loss to the Partners.

     (b) Liabilities of the Partnership include amounts owed to the Liquidator as compensation for
serving in such capacity (subject to the terms of Section 12.3) and amounts to
Partners otherwise than in respect of their distribution rights under Article VI. With
respect to any liability that is contingent, conditional or unmatured or is otherwise not yet due
and payable, the Liquidator shall either settle such claim for such amount as it thinks appropriate
or establish a

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reserve of cash or other assets to provide for its payment. When paid, any unused
portion of the reserve shall be distributed as additional liquidation proceeds.

     (c) All property and all cash in excess of that required to discharge liabilities as provided
in Section 12.4(b) shall be distributed to the Partners in accordance with, and to the extent of,
the positive balances in their respective Capital Accounts, as determined after taking into account
all Capital Account adjustments (other than those made by reason of distributions pursuant to this
Section 12.4(c)) for the taxable year of the Partnership during which the liquidation of the
Partnership occurs (with such date of occurrence being determined pursuant to Treasury Regulation
Section 1.704-1(b)(2)(ii)(g)), and such distribution shall be made by the end of such taxable year
(or, if later, within 90 days after said date of such occurrence).

Section 12.5 Cancellation of Certificate of Limited Partnership.

     Upon the completion of the distribution of Partnership cash and property as provided in
Section 12.4 in connection with the liquidation of the Partnership, the Certificate of Limited
Partnership and all qualifications of the Partnership as a foreign limited partnership in
jurisdictions other than the State of Delaware shall be canceled and such other actions as may be
necessary to terminate the Partnership shall be taken.

Section 12.6 Return of Contributions.

     The General Partner shall not be personally liable for, and shall have no obligation to
contribute or loan any monies or property to the Partnership to enable it to effectuate, the return
of the Capital Contributions of the Limited Partners or Unitholders, or any portion thereof, it
being expressly understood that any such return shall be made solely from Partnership assets.

Section 12.7 Waiver of Partition.

     To the maximum extent permitted by law, each Partner hereby waives any right to partition of
the Partnership property.

Section 12.8 Capital Account Restoration.

     No Limited Partner shall have any obligation to restore any negative balance in its Capital
Account upon liquidation of the Partnership. The General Partner shall be obligated to restore any
negative balance in its Capital Account upon liquidation of its interest in the
Partnership by the end of the taxable year of the Partnership during which such liquidation
occurs, or, if later, within 90 days after the date of such liquidation.

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ARTICLE XIII

AMENDMENT OF PARTNERSHIP

AGREEMENT; MEETINGS; RECORD DATE

Section 13.1 Amendments to be Adopted Solely by the General Partner.

     Each Partner agrees that the General Partner, without the approval of any Partner may amend
any provision of this Agreement and execute, swear to, acknowledge, deliver, file and record
whatever documents may be required in connection therewith, to reflect:

     (a) a change in the name of the Partnership, the location of the principal place of business
of the Partnership, the registered agent of the Partnership or the registered office of the
Partnership;

     (b) admission, substitution, withdrawal or removal of Partners in accordance with this
Agreement;

     (c) a change that the General Partner determines to be necessary or appropriate to qualify or
continue the qualification of the Partnership as a limited partnership or a partnership in which
the Limited Partners have limited liability under the laws of any state or to ensure that the Group
Members will not be treated as associations taxable as corporations or otherwise taxed as entities
for federal income tax purposes;

     (d) a change that the General Partner determines, (i) does not adversely affect the Limited
Partners (including any particular class of Partnership Interests as compared to other classes of
Partnership Interests) in any material respect, (ii) to be necessary or appropriate to (A) satisfy
any requirements, conditions or guidelines contained in any opinion, directive, order, ruling or
regulation of any federal or state agency or judicial authority or contained in any federal or
state statute (including the Delaware Act) or (B) facilitate the trading of the Units (including
the division of any class or classes of Outstanding Units into different classes to facilitate
uniformity of tax consequences within such classes of Units) or comply with any rule, regulation,
guideline or requirement of any National Securities Exchange on which the Units are or will be
listed or admitted to trading, (iii) to be necessary or appropriate in connection with action taken
by the General Partner pursuant to Section 5.9 or (iv) is required to effect the intent expressed
in the Registration Statement or the intent of the provisions of this Agreement or is otherwise
contemplated by this Agreement;

     (e) a change in the fiscal year or taxable year of the Partnership and any other changes that
the General Partner determines to be necessary or appropriate as a result of a change in the fiscal
year or taxable year of the Partnership including, if the General Partner shall so determine, a
change in the definition of “Quarter” and the dates on which distributions are to be made by the
Partnership;

     (f) an amendment that is necessary, in the Opinion of Counsel, to prevent the Partnership, or
the General Partner or its directors, officers, trustees or agents from in any manner being
subjected to the provisions of the Investment Company Act of 1940, as amended, the Investment
Advisers Act of 1940, as amended, or “plan asset” regulations adopted under the

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Employee Retirement Income Security Act of 1974, as amended, regardless of whether such are substantially similar to
plan asset regulations currently applied or proposed by the United States Department of Labor;

     (g) an amendment that the General Partner determines to be necessary or appropriate in
connection with the authorization of issuance of any class or series of Partnership Securities
pursuant to Section 5.6;

     (h) any amendment expressly permitted in this Agreement to be made by the General Partner
acting alone;

     (i) an amendment effected, necessitated or contemplated by a Merger Agreement approved in
accordance with Section 14.3;

     (j) an amendment that the General Partner determines to be necessary or appropriate to reflect
and account for the formation by the Partnership of, or investment by the Partnership in, any
corporation, partnership, joint venture, limited liability company or other entity, in connection
with the conduct by the Partnership of activities permitted by the terms of Section 2.4;

     (k) a merger or conveyance pursuant to Section 14.3(d); or

     (l) any other amendments substantially similar to the foregoing.

Section 13.2 Amendment Procedures.

     Except as provided in Section 13.1 and Section 13.3, all amendments to this Agreement shall be
made in accordance with the following requirements. Amendments to this Agreement may be proposed
only by the General Partner; provided, however, that the General Partner shall have no duty or
obligation to propose any amendment to this Agreement and may decline to do so free of any
fiduciary duty or obligation whatsoever to the Partnership or any Limited Partner and, in declining
to propose an amendment, to the fullest extent permitted by law shall not be required to act in
good faith or pursuant to any other standard imposed by this Agreement, any Group Member Agreement,
any other agreement contemplated hereby or under the Delaware Act or any other law, rule or
regulation or at equity. A proposed amendment shall be effective upon its approval by the General
Partner and the holders of a Unit Majority, unless a greater or different percentage is required
under this Agreement or by Delaware law. Each proposed amendment that requires the approval of the
holders of a specified percentage of Outstanding Units shall be set forth in a writing that
contains the text of the proposed amendment. If such an amendment is proposed, the General Partner
shall seek the written approval of the requisite percentage of Outstanding Units or call a meeting
of the Unitholders to consider and vote on
such proposed amendment. The General Partner shall notify all Record Holders upon final
adoption of any such proposed amendments.

Section 13.3 Amendment Requirements.

     (a) Notwithstanding the provisions of Section 13.1 and Section 13.2, no provision of this
Agreement that establishes a percentage of Outstanding Units (including Units deemed owned by

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the General Partner) required to take any action shall be amended, altered, changed, repealed or
rescinded in any respect that would have the effect of reducing such voting percentage unless such
amendment is approved by the written consent or the affirmative vote of holders of Outstanding
Units whose aggregate Outstanding Units constitute not less than the voting requirement sought to
be reduced.

     (b) Notwithstanding the provisions of Section 13.1 and Section 13.2, no amendment to this
Agreement may (i) enlarge the obligations of any Limited Partner without its consent, unless such
shall be deemed to have occurred as a result of an amendment approved pursuant to Section 13.3(c),
or (ii) enlarge the obligations of, restrict in any way any action by or rights of, or reduce in
any way the amounts distributable, reimbursable or otherwise payable to, the General Partner or any
of its Affiliates without its consent, which consent may be given or withheld at its option.

     (c) Except as provided in Section 14.3, and without limitation of the General Partner’s
authority to adopt amendments to this Agreement without the approval of any Partners as
contemplated in Section 13.1, any amendment that would have a material adverse effect on the rights
or preferences of any class of Partnership Interests in relation to other classes of Partnership
Interests must be approved by the holders of not less than a majority of the Outstanding
Partnership Interests of the class affected.

     (d) Notwithstanding any other provision of this Agreement, except for amendments pursuant to
Section 13.1 and except as otherwise provided by Section 14.3(b), no amendments shall become
effective without the approval of the holders of at least 90% of the Outstanding Units voting as a
single class unless the Partnership obtains an Opinion of Counsel to the effect that such amendment
will not affect the limited liability of any Limited Partner under applicable law.

     (e) Except as provided in Section 13.1, this Section 13.3 shall only be amended with the
approval of the holders of at least 90% of the Outstanding Units.

Section 13.4 Special Meetings.

     All acts of Limited Partners to be taken pursuant to this Agreement shall be taken in the
manner provided in this Article XIII. Special meetings of the Limited Partners may be called by
the General Partner or by Limited Partners owning 20% or more of the Outstanding Units of the class
or classes for which a meeting is proposed. Limited Partners shall call a special meeting by
delivering to the General Partner one or more requests in writing stating that the signing
Limited Partners wish to call a special meeting and indicating the general or specific purposes for
which the special meeting is to be called. Within 60 days after receipt of such a call from
Limited Partners or within such greater time as may be reasonably necessary for the Partnership to
comply with any statutes, rules, regulations, listing agreements or similar requirements governing
the holding of a meeting or the solicitation of proxies for use at such a meeting, the General
Partner shall send a notice of the meeting to the Limited Partners either directly or indirectly
through the Transfer Agent. A meeting shall be held at a time and place determined by the General
Partner on a date not less than 10 days nor more than 60 days after the mailing of notice of the
meeting. Limited Partners shall not vote on matters that would cause the Limited

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Partners to be deemed to be taking part in the management and control of the business and affairs of the
Partnership so as to jeopardize the Limited Partners’ limited liability under the Delaware Act or
the law of any other state in which the Partnership is qualified to do business.

Section 13.5 Notice of a Meeting.

     Notice of a meeting called pursuant to Section 13.4 shall be given to the Record Holders of
the class or classes of Units for which a meeting is proposed in writing by mail or other means of
written communication in accordance with Section 16.1. The notice shall be deemed to have been
given at the time when deposited in the mail or sent by other means of written communication.

Section 13.6 Record Date.

     For purposes of determining the Limited Partners entitled to notice of or to vote at a meeting
of the Limited Partners or to give approvals without a meeting as provided in Section 13.11 the
General Partner may set a Record Date, which shall not be less than 10 nor more than 60 days before
(a) the date of the meeting (unless such requirement conflicts with any rule, regulation, guideline
or requirement of any National Securities Exchange on which the Units are listed or admitted to
trading, in which case the rule, regulation, guideline or requirement of such National Securities
Exchange shall govern) or (b) in the event that approvals are sought without a meeting, the date by
which Limited Partners are requested in writing by the General Partner to give such approvals. If
the General Partner does not set a Record Date, then (a) the Record Date for determining the
Limited Partners entitled to notice of or to vote at a meeting of the Limited Partners shall be the
close of business on the day next preceding the day on which notice is given, and (b) the Record
Date for determining the Limited Partners entitled to give approvals without a meeting shall be the
date the first written approval is deposited with the Partnership in care of the General Partner in
accordance with Section 13.11.

Section 13.7 Adjournment.

     When a meeting is adjourned to another time or place, notice need not be given of the
adjourned meeting and a new Record Date need not be fixed, if the time and place thereof are
announced at the meeting at which the adjournment is taken, unless such adjournment shall be for
more than 45 days. At the adjourned meeting, the Partnership may transact any business which might
have been transacted at the original meeting. If the adjournment is for more than 45 days or if a
new Record Date is fixed for the adjourned meeting, a notice of the adjourned meeting shall be
given in accordance with this Article XIII.

Section 13.8 Waiver of Notice; Approval of Meeting; Approval of Minutes.

     The transactions of any meeting of Limited Partners, however called and noticed, and whenever
held, shall be as valid as if it had occurred at a meeting duly held after regular call and notice,
if a quorum is present either in person or by proxy. Attendance of a Limited Partner at a meeting
shall constitute a waiver of notice of the meeting, except when the Limited Partner attends the
meeting for the express purpose of objecting, at the beginning of the meeting, to the transaction
of any business because the meeting is not lawfully called or convened; and except that attendance
at a meeting is not a waiver of any right to disapprove the consideration of

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matters required to be included in the notice of the meeting, but not so included, if the
disapproval is expressly made at the meeting.

Section 13.9 Quorum and Voting.

     The holders of a majority of the Outstanding Units of the class or classes for which a meeting
has been called (including Outstanding Units deemed owned by the General Partner) represented in
person or by proxy shall constitute a quorum at a meeting of Limited Partners of such class or
classes unless any such action by the Limited Partners requires approval by holders of a greater
percentage of such Units, in which case the quorum shall be such greater percentage. At any
meeting of the Limited Partners duly called and held in accordance with this Agreement at which a
quorum is present, the act of Limited Partners holding Outstanding Units that in the aggregate
represent a majority of the Outstanding Units entitled to vote and be present in person or by proxy
at such meeting shall be deemed to constitute the act of all Limited Partners, unless a greater or
different percentage is required with respect to such action under the provisions of this
Agreement, in which case the act of the Limited Partners holding Outstanding Units that in the
aggregate represent at least such greater or different percentage shall be required. The Limited
Partners present at a duly called or held meeting at which a quorum is present may continue to
transact business until adjournment, notwithstanding the withdrawal of enough Limited Partners to
leave less than a quorum, if any action taken (other than adjournment) is approved by the required
percentage of Outstanding Units specified in this Agreement (including Outstanding Units deemed
owned by the General Partner). In the absence of a quorum any meeting of Limited Partners may be
adjourned from time to time by the affirmative vote of holders of at least a majority of the
Outstanding Units entitled to vote at such meeting (including Outstanding Units deemed owned by the
General Partner) represented either in person or by proxy, but no other business may be transacted,
except as provided in Section 13.7.

Section 13.10 Conduct of a Meeting.

     The General Partner shall have full power and authority concerning the manner of conducting
any meeting of the Limited Partners or solicitation of approvals in writing, including the
determination of Persons entitled to vote, the existence of a quorum, the satisfaction of the
requirements of Section 13.4, the conduct of voting, the validity and effect of any proxies and the
determination of any controversies, votes or challenges arising in connection with or during the
meeting or voting. The General Partner shall designate a Person to serve as chairman of any
meeting and shall further designate a Person to take the minutes of any meeting. All minutes shall
be kept with the records of the Partnership maintained by the General Partner. The General Partner
may make such other regulations consistent with applicable law and this Agreement as it may deem
advisable concerning the conduct of any meeting of the Limited Partners or solicitation of
approvals in writing, including regulations in regard to the appointment of proxies, the
appointment and duties of inspectors of votes and approvals, the submission and examination of
proxies and other evidence of the right to vote, and the revocation of approvals in writing.

Section 13.11 Action Without a Meeting.

     If authorized by the General Partner, any action that may be taken at a meeting of the Limited
Partners may be taken without a meeting if an approval in writing setting forth the action

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so taken is signed by Limited Partners owning not less than the minimum percentage of the Outstanding Units
(including Units deemed owned by the General Partner) that would be necessary to authorize or take
such action at a meeting at which all the Limited Partners were present and voted (unless such
provision conflicts with any rule, regulation, guideline or requirement of any National Securities
Exchange on which the Units are listed or admitted to trading, in which case the rule, regulation,
guideline or requirement of such National Securities Exchange shall govern). Prompt notice of the
taking of action without a meeting shall be given to the Limited Partners who have not approved in
writing. The General Partner may specify that any written ballot submitted to Limited Partners for
the purpose of taking any action without a meeting shall be returned to the Partnership within the
time period, which shall be not less than 20 days, specified by the General Partner. If a ballot
returned to the Partnership does not vote all of the Units held by the Limited Partners, the
Partnership shall be deemed to have failed to receive a ballot for the Units that were not voted.
If approval of the taking of any action by the Limited Partners is solicited by any Person other
than by or on behalf of the General Partner, the written approvals shall have no force and effect
unless and until (a) they are deposited with the Partnership in care of the General Partner, (b)
approvals sufficient to take the action proposed are dated as of a date not more than 90 days prior
to the date sufficient approvals are deposited with the Partnership and (c) an Opinion of Counsel
is delivered to the General Partner to the effect that the exercise of such right and the action
proposed to be taken with respect to any particular matter (i) will not cause the Limited Partners
to be deemed to be taking part in the management and control of the business and affairs of the
Partnership so as to jeopardize the Limited Partners’ limited liability, and (ii) is otherwise
permissible under the state statutes then governing the rights, duties and liabilities of the
Partnership and the Partners.

Section 13.12 Right to Vote and Related Matters.

     (a) Only those Record Holders of the Units on the Record Date set pursuant to Section 13.6
(and also subject to the limitations contained in the definition of “Outstanding”) shall be
entitled to notice of, and to vote at, a meeting of Limited Partners or to act with respect to
matters as to which the holders of the Outstanding Units have the right to vote or to act. All
references in this Agreement to votes of, or other acts that may be taken by, the Outstanding Units
shall be deemed to be references to the votes or acts of the Record Holders of such Outstanding
Units.

     (b) With respect to Units that are held for a Person’s account by another Person (such as a
broker, dealer, bank, trust company or clearing corporation, or an agent of any of the foregoing),
in whose name such Units are registered, such other Person shall, in exercising the voting rights
in respect of such Units on any matter, and unless the arrangement between such Persons provides
otherwise, vote such Units in favor of, and at the direction of, the Person who is the beneficial
owner, and the Partnership shall be entitled to assume it is so acting without further inquiry.
The provisions of this Section 13.12(b) (as well as all other provisions of this Agreement) are
subject to the provisions of Section 4.3.

86

 

ARTICLE XIV

MERGER

Section 14.1 Authority.

     The Partnership may merge or consolidate with or into one or more corporations, limited
liability companies, statutory trusts or associations, real estate investment trusts, common law
trusts or unincorporated businesses, including a partnership (whether general or limited including
a limited liability partnership), formed under the laws of the State of Delaware or any other state
of the United States of America, pursuant to a written agreement of merger or consolidation
(“Merger Agreement”) in accordance with this Article XIV.

Section 14.2 Procedure for Merger or Consolidation.

     Merger or consolidation of the Partnership pursuant to this Article XIV requires the prior
consent of the General Partner; provided, however, that, to the fullest extent permitted by law,
the General Partner shall have no duty or obligation to consent to any merger or consolidation of
the Partnership and may decline to do so free of any fiduciary duty or obligation whatsoever to the
Partnership, any Limited Partner and, in declining to consent to a merger or consolidation, shall
not be required to act in good faith or pursuant to any other standard imposed by this Agreement,
any Group Member Agreement, any other agreement contemplated hereby or under the Delaware Act or
any other law, rule or regulation or at equity. If the General Partner shall
determine to consent to the merger or consolidation, the General Partner shall approve the
Merger Agreement, which shall set forth:

     (a) the names and jurisdictions of formation or organization of each of the business entities
proposing to merge or consolidate;

     (b) the name and jurisdiction of formation or organization of the business entity that is to
survive the proposed merger or consolidation (the “Surviving Business Entity”);

     (c) the terms and conditions of the proposed merger or consolidation;

     (d) the manner and basis of exchanging or converting the equity securities of each constituent
business entity for, or into, cash, property or interests, rights, securities or obligations of the
Surviving Business Entity; and (i) if any general or limited partner interests, securities or
rights of any constituent business entity are not to be exchanged or converted solely for, or into,
cash, property or interests, rights, securities or obligations of the Surviving Business Entity,
the cash, property or interests, rights, securities or obligations of any general or limited
partnership, corporation, trust, limited liability company, unincorporated business or other entity
(other than the Surviving Business Entity) which the holders of such interests, securities or
rights are to receive in exchange for, or upon conversion of their interests, securities or rights,
and (ii) in the case of securities represented by certificates, upon the surrender of such
certificates, which cash, property or general or limited partner interests, rights, securities or
obligations of the Surviving Business Entity or any general or limited partnership, corporation,
trust, limited liability company, unincorporated business or other entity (other than the Surviving
Business Entity), or evidences thereof, are to be delivered;

87

 

     (e) a statement of any changes in the constituent documents or the adoption of new constituent
documents (the articles or certificate of incorporation, articles of trust, declaration of trust,
certificate or agreement of limited partnership or other similar charter or governing document) of
the Surviving Business Entity to be effected by such merger or consolidation;

     (f) the effective time of the merger, which may be the date of the filing of the certificate
of merger pursuant to Section 14.4 or a later date specified in or determinable in accordance with
the Merger Agreement (provided, that if the effective time of the merger is to be later than the
date of the filing of such certificate of merger, the effective time shall be fixed at a date or
time certain at or prior to the time of the filing of such certificate of merger and stated
therein); and

     (g) such other provisions with respect to the proposed merger or consolidation that the
General Partner determines to be necessary or appropriate.

Section 14.3 Approval by Limited Partners of Merger or Consolidation.

     (a) Except as provided in Section 14.3(d) or Section 14.3(e), the General Partner, upon its
approval of the Merger Agreement, shall direct that the Merger Agreement be submitted to a vote of
Limited Partners, whether at a special meeting or by written consent, in either case in accordance
with the requirements of Article XIII. A copy or a summary of the Merger
Agreement shall be included in or enclosed with the notice of a special meeting or the written
consent.

     (b) Except as provided in Section 14.3(d) or Section 14.3(e), the Merger Agreement shall be
approved upon receiving the affirmative vote or consent of the holders of a Unit Majority.

     (c) Except as provided in Section 14.3(d) or Section 14.3(e), after such approval by vote or
consent of the Limited Partners, and at any time prior to the filing of the certificate of merger
pursuant to Section 14.4, the merger or consolidation may be abandoned pursuant to provisions
therefor, if any, set forth in the Merger Agreement.

     (d) Notwithstanding anything else contained in this Article XIV or in this Agreement, the
General Partner is permitted, without Limited Partner approval, to convert the Partnership or any
Group Member into a new limited liability entity, to merge the Partnership or any Group Member
into, or convey all of the Partnership’s assets to, another limited liability entity which shall be
newly formed and shall have no assets, liabilities or operations at the time of such conversion,
merger or conveyance other than those it receives from the Partnership or other Group Member if (i)
the General Partner has received an Opinion of Counsel that the conversion, merger or conveyance,
as the case may be, would not result in the loss of the limited liability of any Limited Partner or
cause the Partnership to be treated as an association taxable as a corporation or otherwise to be
taxed as an entity for federal income tax purposes (to the extent not previously treated as such),
(ii) the sole purpose of such conversion, merger or conveyance is to effect a mere change in the
legal form of the Partnership into another limited liability entity and (iii) the governing
instruments of the new entity provide the Limited Partners and the General Partner with the same
rights and obligations as are herein contained.

     (e) Additionally, notwithstanding anything else contained in this Article XIV or in this
Agreement, the General Partner is permitted, without Limited Partner approval, to merge or

88

 

consolidate the Partnership with or into another entity if (A) the General Partner has received an
Opinion of Counsel that the merger or consolidation, as the case may be, would not result in the
loss of the limited liability of any Limited Partner or cause the Partnership to be treated as an
association taxable as a corporation or otherwise to be taxed as an entity for federal income tax
purposes (to the extent not previously treated as such), (B) the merger or consolidation would not
result in an amendment to the Partnership Agreement, other than any amendments that could be
adopted pursuant to Section 13.1, (C) the Partnership is the Surviving Business Entity in such
merger or consolidation, (D) each Unit outstanding immediately prior to the effective date of the
merger or consolidation is to be an identical Unit of the Partnership after the effective date of
the merger or consolidation, and (E) the number of Partnership Securities to be issued by the
Partnership in such merger or consolidation do not exceed 20% of the Partnership Securities
Outstanding immediately prior to the effective date of such merger or consolidation.

Section 14.4 Certificate of Merger.

     Upon the required approval by the General Partner and the Unitholders of a Merger Agreement, a
certificate of merger shall be executed and filed with the Secretary of State of the State of
Delaware in conformity with the requirements of the Delaware Act.

Section 14.5 Amendment of Partnership Agreement.

     Pursuant to Section 17-211(g)of the Delaware Act, an agreement of merger or consolidation
approved in accordance with this Article XIV may (a) effect any amendment to this Agreement or (b)
effect the adoption of a new partnership agreement for the Partnership if it is the Surviving
Business Entity. Any such amendment or adoption made pursuant to this Section 14.5 shall be
effective at the effective time or date of the merger or consolidation.

Section 14.6 Effect of Merger.

     (a) At the effective time of the certificate of merger:

          (i) all of the rights, privileges and powers of each of the business entities that has
merged or consolidated, and all property, real, personal and mixed, and all debts due to any
of those business entities and all other things and causes of action belonging to each of
those business entities, shall be vested in the Surviving Business Entity and after the
merger or consolidation shall be the property of the Surviving Business Entity to the extent
they were of each constituent business entity;

          (ii) the title to any real property vested by deed or otherwise in any of those
constituent business entities shall not revert and is not in any way impaired because of the
merger or consolidation;

          (iii) all rights of creditors and all liens on or security interests in property of any
of those constituent business entities shall be preserved unimpaired; and

          (iv) all debts, liabilities and duties of those constituent business entities shall
attach to the Surviving Business Entity and may be enforced against it to the same extent as
if the debts, liabilities and duties had been incurred or contracted by it.

89

 

     (b) A merger or consolidation effected pursuant to this Article shall not be deemed to result
in a transfer or assignment of assets or liabilities from one entity to another.

ARTICLE XV

RIGHT TO ACQUIRE LIMITED PARTNER INTERESTS

Section 15.1 Right to Acquire Limited Partner Interests.

     (a) Notwithstanding any other provision of this Agreement, if at any time the General Partner
and its Affiliates hold more than 80% of the total Limited Partner Interests of any class then
Outstanding, the General Partner shall then have the right, which right it may assign and transfer
in whole or in part to the Partnership or any Affiliate of the General Partner, exercisable at its
option, to purchase all, but not less than all, of such Limited Partner Interests of such class
then Outstanding held by Persons other than the General Partner and its Affiliates, at the greater
of (x) the Current Market Price as of the date three days prior to the date that the notice
described in Section 15.1(b) is mailed and (y) the highest price paid by the General Partner or any
of its Affiliates for any such Limited Partner Interest of such class purchased during the 90-day
period preceding the date that the notice described in Section 15.1(b) is mailed. As used in this
Agreement, (i) “Current Market Price” as of any date of any class of Limited Partner Interests
means the average of the daily Closing Prices (as hereinafter defined) per Limited Partner Interest
of such class for the 20 consecutive Trading Days (as hereinafter defined) immediately prior to
such date; (ii) “Closing Price” for any day means the last sale price on such day, regular way, or
in case no such sale takes place on such day, the average of the closing bid and asked prices on
such day, regular way, as reported in the principal consolidated transaction reporting system with
respect to securities listed on the principal National Securities Exchange (other than The Nasdaq
Stock Market) on which such Limited Partner Interests are listed or admitted to trading or, if such
Limited Partner Interests of such class are not listed or admitted to trading on any National
Securities Exchange (other than The Nasdaq Stock Market), the last quoted price on such day or, if
not so quoted, the average of the high bid and low asked prices on such day in the over-the-counter
market, as reported by The Nasdaq Stock Market or such other system then in use, or, if on any such
day such Limited Partner Interests of such class are not quoted by any such organization, the
average of the closing bid and asked prices on such day as furnished by a professional market maker
making a market in such Limited Partner Interests of such class selected by the General Partner, or
if on any such day no market maker is making a market in such Limited Partner Interests of such
class, the fair value of such Limited Partner Interests on such day as determined by the General
Partner; and (iii) “Trading Day” means a day on which the principal National Securities Exchange on
which such Limited Partner Interests of any class are listed or admitted for trading is open for
the transaction of business or, if Limited Partner Interests of a class are not listed or admitted
for trading on any National Securities Exchange, a day on which banking institutions in New York
City generally are open.

     (b) If the General Partner, any Affiliate of the General Partner or the Partnership elects to
exercise the right to purchase Limited Partner Interests granted pursuant to Section 15.1(a), the
General Partner shall deliver to the Transfer Agent notice of such election to purchase (the
"Notice of Election to Purchase”) and shall cause the Transfer Agent to mail a copy of such Notice
of Election to Purchase to the Record Holders of Limited Partner Interests of such class

90

 

(as of a Record Date selected by the General Partner) at least 10, but not more than 60, days prior
to the Purchase Date. Such Notice of Election to Purchase shall also be published for a
period of at least three consecutive days in at least two daily newspapers of general circulation
printed in the English language and published in the Borough of Manhattan, New York. The Notice of
Election to Purchase shall specify the Purchase Date and the price (determined in accordance with
Section 15.1(a)) at which Limited Partner Interests will be purchased and state that the General
Partner, its Affiliate or the Partnership, as the case may be, elects to purchase such Limited
Partner Interests, upon surrender of Certificates representing such Limited Partner Interests in
exchange for payment, at such office or offices of the Transfer Agent as the Transfer Agent may
specify, or as may be required by any National Securities Exchange on which such Limited Partner
Interests are listed. Any such Notice of Election to Purchase mailed to a Record Holder of Limited
Partner Interests at his address as reflected in the records of the Transfer Agent shall be
conclusively presumed to have been given regardless of whether the owner receives such notice. On
or prior to the Purchase Date, the General Partner, its Affiliate or the Partnership, as the case
may be, shall deposit with the Transfer Agent cash in an amount sufficient to pay the aggregate
purchase price of all of such Limited Partner Interests to be purchased in accordance with this
Section 15.1. If the Notice of Election to Purchase shall have been duly given as aforesaid at
least 10 days prior to the Purchase Date, and if on or prior to the Purchase Date the deposit
described in the preceding sentence has been made for the benefit of the holders of Limited Partner
Interests subject to purchase as provided herein, then from and after the Purchase Date,
notwithstanding that any Certificate shall not have been surrendered for purchase, all rights of
the holders of such Limited Partner Interests (including any rights pursuant to Article IV, Article
V, Article VI and Article XII) shall thereupon cease, except the right to receive the purchase
price (determined in accordance with Section 15.1(a)) for Limited Partner Interests therefor,
without interest, upon surrender to the Transfer Agent of the Certificates representing such
Limited Partner Interests, and such Limited Partner Interests shall thereupon be deemed to be
transferred to the General Partner, its Affiliate or the Partnership, as the case may be, on the
record books of the Transfer Agent and the Partnership, and the General Partner or any Affiliate of
the General Partner, or the Partnership, as the case may be, shall be deemed to be the owner of all
such Limited Partner Interests from and after the Purchase Date and shall have all rights as the
owner of such Limited Partner Interests (including all rights as owner of such Limited Partner
Interests pursuant to Article IV, Article V, Article VI and Article XII).

     (c) At any time from and after the Purchase Date, a holder of an Outstanding Limited Partner
Interest subject to purchase as provided in this Section 15.1 may surrender his Certificate
evidencing such Limited Partner Interest to the Transfer Agent in exchange for payment of the
amount described in Section 15.1(a), therefor, without interest thereon.

ARTICLE XVI

GENERAL PROVISIONS

Section 16.1 Addresses and Notices.

     Any notice, demand, request, report or proxy materials required or permitted to be given or
made to a Partner under this Agreement shall be in writing and shall be deemed given or made
when delivered in person or when sent by first class United States mail or by other means of

91

 

written communication to the Partner at the address described below. Any notice, payment or report
to be given or made to a Partner hereunder shall be deemed conclusively to have been given or made,
and the obligation to give such notice or report or to make such payment shall be deemed
conclusively to have been fully satisfied, upon sending of such notice, payment or report to the
Record Holder of such Partnership Securities at his address as shown on the records of the Transfer
Agent or as otherwise shown on the records of the Partnership, regardless of any claim of any
Person who may have an interest in such Partnership Securities by reason of any assignment or
otherwise. An affidavit or certificate of making of any notice, payment or report in accordance
with the provisions of this Section 16.1 executed by the General Partner, the Transfer Agent or the
mailing organization shall be prima facie evidence of the giving or making of such notice, payment
or report. If any notice, payment or report addressed to a Record Holder at the address of such
Record Holder appearing on the books and records of the Transfer Agent or the Partnership is
returned by the United States Postal Service marked to indicate that the United States Postal
Service is unable to deliver it, such notice, payment or report and any subsequent notices,
payments and reports shall be deemed to have been duly given or made without further mailing (until
such time as such Record Holder or another Person notifies the Transfer Agent or the Partnership of
a change in his address) if they are available for the Partner at the principal office of the
Partnership for a period of one year from the date of the giving or making of such notice, payment
or report to the other Partners. Any notice to the Partnership shall be deemed given if received
by the General Partner at the principal office of the Partnership designated pursuant to Section
2.3. The General Partner may rely and shall be protected in relying on any notice or other
document from a Partner or other Person if believed by it to be genuine.

Section 16.2 Further Action.

     The parties shall execute and deliver all documents, provide all information and take or
refrain from taking action as may be necessary or appropriate to achieve the purposes of this
Agreement.

Section 16.3 Binding Effect.

     This Agreement shall be binding upon and inure to the benefit of the parties hereto and their
heirs, executors, administrators, successors, legal representatives and permitted assigns.

Section 16.4 Integration.

     This Agreement constitutes the entire agreement among the parties hereto pertaining to the
subject matter hereof and supersedes all prior agreements and understandings pertaining thereto.

Section 16.5 Creditors.

     None of the provisions of this Agreement shall be for the benefit of, or shall be enforceable
by, any creditor of the Partnership.

92

 

Section 16.6 Waiver.

     No failure by any party to insist upon the strict performance of any covenant, duty, agreement
or condition of this Agreement or to exercise any right or remedy consequent upon a breach thereof
shall constitute waiver of any such breach of any other covenant, duty, agreement or condition.

Section 16.7 Third-Party Beneficiaries

     Each Partner agrees that any Indemnitee, including Williams or any of its Subsidiaries, shall
be entitled to assert rights and remedies hereunder as a third-party beneficiary hereto with
respect to those provisions of this Agreement affording a right, benefit or privilege to such
Indemnitee.

Section 16.8 Counterparts.

     This Agreement may be executed in counterparts, all of which together shall constitute an
agreement binding on all the parties hereto, notwithstanding that all such parties are not
signatories to the original or the same counterpart. Each party shall become bound by this
Agreement immediately upon affixing its signature hereto or, in the case of a Person acquiring a
Limited Partner Interest, pursuant to Section 10.2(a) without execution of this Agreement.

Section 16.9 Applicable Law.

     This Agreement shall be construed in accordance with and governed by the laws of the State of
Delaware, without regard to the principles of conflicts of law.

Section 16.10 Invalidity of Provisions.

     If any provision of this Agreement is or becomes invalid, illegal or unenforceable in any
respect, the validity, legality and enforceability of the remaining provisions contained herein
shall not be affected thereby.

Section 16.11 Consent of Partners.

     Each Partner hereby expressly consents and agrees that, whenever in this Agreement it is
specified that an action may be taken upon the affirmative vote or consent of less than all of the
Partners, such action may be so taken upon the concurrence of less than all of the Partners and
each Partner shall be bound by the results of such action.

Section 16.12 Facsimile Signatures.

     The use of facsimile signatures affixed in the name and on behalf of the transfer agent and
registrar of the Partnership on certificates representing Common Units is expressly permitted by
this Agreement.

[REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK.]

93

 

     IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first
written above.

	 	 	 	 	 	 	 
	 	 	GENERAL PARTNER:
	 
	 	 	 	 	 	 
	 	 	Williams Partners GP LLC
	 
	 	 	 	 	 	 
	 	 	By:	 	/s/ Alan S. Armstrong
	 	 	 	 	 
	 

	 	 	 	Name:
	 	Alan S. Armstrong
	 

	 	 	 	Title:
	 	Chief Operating Officer
	 
	 	 	 	 	 	 
	 	 	LIMITED PARTNERS
	 
	 	 	 	 	 	 
	 	 	Williams Energy Services, LLC
	 
	 	 	 	 	 	 
	 	 	By:	 	/s/ Alan S. Armstrong
	 	 	 	 	 
	 

	 	 	 	Name:
	 	Alan S. Armstrong
	 

	 	 	 	Title:
	 	Senior Vice President
	 
	 	 	 	 	 	 
	 	 	Williams Energy, L.L.C.
	 
	 	 	 	 	 	 
	 	 	By:	 	/s/ Alan S. Armstrong
	 	 	 	 	 
	 

	 	 	 	Name:
	 	Alan S. Armstrong
	 

	 	 	 	Title:
	 	Senior Vice President and General Manager -
	 

	 	 	 	 	 	Business Development
	 
	 	 	 	 	 	 
	 	 	Williams Discovery Pipeline LLC
	 
	 	 	 	 	 	 
	 	 	By:	 	/s/ Alan S. Armstrong
	 	 	 	 	 
	 

	 	 	 	Name:
	 	Alan S. Armstrong
	 

	 	 	 	Title:
	 	Senior Vice President and General
Manager

S-94

 

	 	 	 	 	 	 	 
	 	 	Williams Partners Holdings LLC
	 
	 	 	 	 	 	 
	 	 	By:	 	/s/ Alan S. Armstrong
	 	 	 	 	 
	 

	 	 	 	Name:
	 	Alan S. Armstrong

	 

	 	 	 	Title:
	 	Chief Operating Officer

	 	 	 
	 

	 	All Limited Partners now and hereafter admitted as
Limited Partners of the Partnership, pursuant to
powers of attorney now and hereafter executed in
favor of, and granted and delivered to the General
Partner or without execution hereof pursuant to
Section 10.2(a) hereof.

	 	 	 	 	 	 	 
	 	 	Williams Partners GP LLC
	 
	 	 	 	 	 	 
	 	 	By:	 	/s/ Alan S. Armstrong
	 	 	 	 	 
	 

	 	 	 	Name:
	 	Alan S. Armstrong

	 

	 	 	 	Title:
	 	Chief Operating Officer

S-95

 

EXHIBIT A

to the Amended and Restated

Agreement of Limited Partnership of

Williams Partners L.P.

Certificate Evidencing Common Units

Representing Limited Partner Interests in

Williams Partners L.P.

			
	No. ___
	 	___Common Units

CUSIP ________

     In accordance with Section 4.1 of the Amended and Restated Agreement of Limited Partnership of
Williams Partners L.P., as amended, supplemented or restated from time to time (the “Partnership
Agreement”), Williams Partners L.P., a Delaware limited partnership (the “Partnership”), hereby
certifies that ___(the “Holder”) is the registered owner of
Common Units representing limited partner interests in the Partnership (the “Common Units”)
transferable on the books of the Partnership, in person or by duly authorized attorney, upon
surrender of this Certificate properly endorsed. The rights, preferences and limitations of the
Common Units are set forth in, and this Certificate and the Common Units represented hereby are
issued and shall in all respects be subject to the terms and provisions of, the Partnership
Agreement. Copies of the Partnership Agreement are on file at, and will be furnished without
charge on delivery of written request to the Partnership at, the principal office of the
Partnership located at One Williams Center, Attn: Legal Department, Tulsa, Oklahoma 74172-0172.
Capitalized terms used herein but not defined shall have the meanings given them in the Partnership
Agreement.

     THE HOLDER OF THIS SECURITY ACKNOWLEDGES FOR THE BENEFIT OF WILLIAMS PARTNERS L.P. THAT THIS
SECURITY MAY NOT BE SOLD, OFFERED, RESOLD, PLEDGED OR OTHERWISE TRANSFERRED IF SUCH TRANSFER WOULD
(A) VIOLATE THE THEN APPLICABLE FEDERAL OR STATE SECURITIES LAWS OR RULES AND REGULATIONS OF THE
SECURITIES AND EXCHANGE COMMISSION, ANY STATE SECURITIES COMMISSION OR ANY OTHER GOVERNMENTAL
AUTHORITY WITH JURISDICTION OVER SUCH TRANSFER, (B) TERMINATE THE EXISTENCE OR QUALIFICATION OF
WILLIAMS PARTNERS L.P. UNDER THE LAWS OF THE STATE OF DELAWARE, OR (C) CAUSE WILLIAMS PARTNERS
L.P. TO BE TREATED AS AN ASSOCIATION TAXABLE AS A CORPORATION OR OTHERWISE TO BE TAXED AS AN
ENTITY FOR FEDERAL INCOME TAX PURPOSES (TO THE EXTENT NOT ALREADY SO TREATED OR TAXED). WILLIAMS
PARTNERS GP LLC, THE GENERAL PARTNER OF WILLIAMS PARTNERS L.P., MAY IMPOSE ADDITIONAL RESTRICTIONS
ON THE TRANSFER OF THIS SECURITY IF IT RECEIVES AN OPINION OF COUNSEL THAT SUCH RESTRICTIONS ARE
NECESSARY TO AVOID A SIGNIFICANT RISK OF WILLIAMS PARTNERS L.P. BECOMING TAXABLE AS A CORPORATION
OR OTHERWISE BECOMING TAXABLE AS AN ENTITY FOR FEDERAL INCOME TAX PURPOSES. THE RESTRICTIONS SET
FORTH ABOVE SHALL NOT PRECLUDE THE SETTLEMENT OF ANY TRANSACTIONS INVOLVING THIS SECURITY ENTERED
INTO THROUGH THE FACILITIES OF ANY NATIONAL

A-1

 

SECURITIES EXCHANGE ON WHICH THIS SECURITY IS LISTED OR ADMITTED TO TRADING.

     The Holder, by accepting this Certificate, is deemed to have (i) requested admission as, and
agreed to become, a Limited Partner and to have agreed to comply with and be bound by and to have
executed the Partnership Agreement, (ii) represented and warranted that the Holder has all right,
power and authority and, if an individual, the capacity necessary to enter into the Partnership
Agreement, (iii) granted the powers of attorney provided for in the Partnership Agreement and (iv)
made the waivers and given the consents and approvals contained in the Partnership Agreement.

     This Certificate shall not be valid for any purpose unless it has been countersigned and
registered by the Transfer Agent and Registrar.

	 	 	 	 	 
	Dated:                                        	 	Williams Partners L.P.
	 
	 	 	 	 
	Countersigned and Registered by:

	 	By:
	 	Williams Partners GP LLC,
	 

	 	 	 	its General Partner
	 
	 	 	 	 
	 	 	By:	 	 
	 	 	 	 	 
	as Transfer Agent and Registrar

	 	Name:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	By:

	 	By:	 	 
	

 

	 	 	 	 
	          Authorized Signature

	 	 	 	          Secretary

[Reverse of Certificate]

ABBREVIATIONS

     The following abbreviations, when used in the inscription on the face of this Certificate,
shall be construed as follows according to applicable laws or regulations:

	 	 	 	 	 
	TEN COM -

	 	as tenants in common
	 	UNIF GIFT/TRANSFERS MIN ACT
	TEN ENT -

	 	as tenants by the entireties
	 	                                         Custodian                                         
	 

	 	 	 	(Cust)                                                                           (Minor)
	JT TEN -

	 	as joint tenants with right of
	 	under Uniform Gifts/Transfers to CD
	 

	 	survivorship and not as
	 	Minors Act (State)
	 

	 	tenants in common	 	 
	 	 	Additional abbreviations, though not in the above list, may also be used.

ASSIGNMENT OF COMMON UNITS

in

WILLIAMS PARTNERS L.P.

FOR VALUE RECEIVED, __________ hereby assigns, conveys, sells and transfers unto

	 	 	 
	                                                            

	 	                                                            
	(Please print or typewrite name

	 	(Please insert Social Security or other
	and address of assignee)

	 	identifying number of assignee)

A-2

 

                                         Common Units representing limited partner interests evidenced by this Certificate,
subject to the Partnership Agreement, and does hereby irrevocably constitute and appoint                                         
as its attorney-in-fact with full power of substitution to transfer the same on the books of
Williams Partners L.P.

	 	 	 	 	 
	Date:                                         

	 	NOTE:
	 	The signature to any endorsement hereon must correspond with the name as written upon
the face of this Certificate in every particular, without alteration, enlargement or change.

A-3

 

	 	 	 
	THE SIGNATURE(S) MUST BE

	 	                                                            
	GUARANTEED BY AN ELIGIBLE

	 	(Signature)
	GUARANTOR INSTITUTION (BANKS,
	 	 
	STOCKBROKERS, SAVINGS AND
	 	 
	LOAN ASSOCIATIONS AND CREDIT
	 	 
	UNIONS WITH MEMBERSHIP IN AN

	 	                                                            
	APPROVED SIGNATURE

	 	(Signature)
	GUARANTEE MEDALLION
	 	 
	PROGRAM), PURSUANT TO S.E.C.
	 	 
	RULE 17d-15
	 	 
	 
	 	 
	                                                            
	 	 
	 
	 	 
	Signature(s) Guaranteed
	 	 

     No transfer of the Common Units evidenced hereby will be registered on the books of the
Partnership, unless the Certificate evidencing the Common Units to be transferred is surrendered
for registration or transfer.

A-4

 

Amendment No. 1

to

Amended and Restated Agreement of Limited Partnership

of Williams Partners L.P.

     This Amendment No. 1, dated August 7, 2006 (this “Amendment”), to the Amended and
Restated Agreement of Limited Partnership (the “Partnership Agreement”) of Williams
Partners L.P., a Delaware limited partnership, dated as of August 23, 2005, is entered into and
effectuated by Williams Partners GP LLC, a Delaware limited liability company, as the General
Partner, pursuant to authority granted to it in Article 13 of the Partnership Agreement.
Capitalized terms used but not defined herein are used as defined in the Partnership Agreement.

     WHEREAS, Section 13.1(d)(iv) of the Partnership Agreement provides that the General Partner,
without the approval of any Partner, may amend any provision of the Partnership Agreement to
reflect a change that the General Partner determines is required to effect the intent expressed in
the registration statement on Form S-1 (Registration No. 333-124517) (the
“Registration Statement”) filed with and declared effective by the Commission in connection
with the Partnership’s initial public offering of Common Units);

     WHEREAS, the description of the Partnership Agreement contained in the Registration Statement
and the form of the Partnership Agreement attached as Appendix A to the prospectus contained in the
Registration Statement contemplated that, during the Subordination Period, holders of Common Units
and Subordinated Units would participate on a pro rata basis with respect to distributions of the
excess of the First Target Distribution over the Minimum Quarterly Distribution for a Quarter.
However, as a result of a scrivener’s error, clause (iv) of Section 6.4(a) of the Partnership
Agreement incorrectly states that Unitholders holding Common Units are entitled to receive
distributions of such excess, creating an ambiguity regarding whether Holders of Subordinated Units
are also entitled to participate on a pro rata basis with respect to such distributions; and

     WHEREAS, the General Partner deems it in the best interest of the Partnership to effect this
Amendment in order to amend clause (iv) of Section 6.4(a) of the Partnership Agreement, to effect
the intent expressed in the Registration Statement.

     NOW, THEREFORE, in light of the foregoing, it is hereby agreed as follows:

     1. Clause (iv) of Section 6.4(a) of the Partnership is hereby amended and restated to
read in its entirety as follows:

     “(iv) Fourth, to the General Partner and the Unitholders, in accordance with their
respective Percentage Interests, until there has been distributed in respect of each Unit
then Outstanding an amount equal to the excess of the First Target Distribution over the
Minimum Quarterly Distribution for such Quarter;”

     2. This Amendment shall be effective as of August 23, 2005, which date is the effective
date of the Partnership Agreement.

 

 

     3. This Amendment may be executed in counterparts, each of which shall be deemed an
original, but all of which shall constitute one and the same instrument.

     4. Except as hereby amended, the Partnership Agreement shall remain in full force and
effect.

     5. This Amendment shall be governed by, and interpreted in accordance with, the laws of
the State of Delaware, all rights and remedies being governed by such laws without regard to
principles of conflicts of laws.

     6. Each provision of this Amendment shall be considered severable and if for any reason
any provision or provisions herein are determined to be invalid, unenforceable or illegal
under any existing or future law, such invalidity, unenforceability or illegality shall not
impair the operation of or affect those portions of this Amendment that are valid,
enforceable and legal.

[REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]

 

 

     IN WITNESS WHEREOF, this Amendment has been executed as of the date first
written above.

	 	 	 	 	 	 	 
	 	 	GENERAL PARTNER:	 	 
	 
	 	 	 	 	 	 
	 	 	Williams Partners GP LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Alan S. Armstrong
 

	 	 
	 

	 	 	 	Alan S. Armstrong	 	 
	 

	 	 	 	Chief Operating Officer	 	 

 

 

Amendment No. 2

to

Amended and Restated Agreement of Limited Partnership

of Williams Partners L.P.

     This Amendment No. 2, dated August 23, 2006 (this “Amendment”), to the Amended and
Restated Agreement of Limited Partnership, as amended (the “Partnership Agreement”), of
Williams Partners L.P., a Delaware limited partnership, dated as of August 23, 2005, is entered
into and effectuated by Williams Partners GP LLC, a Delaware limited liability company, as the
General Partner, pursuant to authority granted to it in Article 13 of the Partnership Agreement.
Capitalized terms used but not defined herein are used as defined in the Partnership Agreement.

     WHEREAS, Section 13.1(d)(i) of the Partnership Agreement provides that the General Partner,
without the approval of any Partner, may amend any provision of the Partnership Agreement to
reflect a change that the General Partner determines does not adversely affect the
Limited Partners (including any particular class of Partnership Interests as compared to other
classes of Partnership Interests) in any material respect; and

     WHEREAS, the General Partner deems it in the best interest of the Partnership and the Limited
Partners to amend the definition of “Capital Improvement” in Section 1.1 of the Partnership
Agreement to include additions or improvements to, or the construction or acquisition of, capital
assets that are made to increase the cash flow from operations of the Partnership Group, or an
equity investee thereof, in addition to those that increase revenues or operating capacity.

     NOW, THEREFORE, in light of the foregoing, it is hereby agreed as follows:

     1. Section 1.1 of the Partnership Agreement is hereby amended to amend and restate the
following definition:

     “Capital Improvement” means any (a) addition or improvement to the capital assets owned
by any Group Member, (b) acquisition of existing, or the construction of new, capital assets
(including, without limitation, any hydrocarbon gathering systems or pipelines, any natural
gas processing or natural gas liquids fractionation facilities, any storage or terminal
facilities and any related or similar midstream assets), or (c) capital contribution by a
Group Member to a Person in which a Group Member has an equity interest, to fund the Group
Member’s pro rata share of the cost of the acquisition of existing, or the construction of
new, capital assets (including, without limitation, any hydrocarbon gathering systems or
pipelines, any natural gas processing or natural gas liquids fractionation facilities, any
storage or terminal facilities and any related or similar midstream assets) by such Person,
in each case if such addition, improvement, acquisition or construction is made to increase
the operating capacity, revenues or cash flow from operations of the Partnership Group, in
the case of clauses (a) and (b), or such Person, in the case of clause (c), from the
operating capacity, revenues or cash flow from operations
of the Partnership Group or such Person, as the case may be, existing immediately prior
to such addition, improvement, acquisition or construction.

 

 

     2. Except as hereby amended, the Partnership Agreement shall remain in full force and effect.

     3. This Amendment shall be governed by, and interpreted in accordance with, the laws of the
State of Delaware, all rights and remedies being governed by such laws without regard to principles
of conflicts of laws.

     4. Each provision of this Amendment shall be considered severable and if for any reason any
provision or provisions herein are determined to be invalid, unenforceable or illegal under any
existing or future law, such invalidity, unenforceability or illegality shall not impair the
operation of or affect those portions of this Amendment that are valid, enforceable and legal.

[REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]

 

 

IN
WITNESS WHEREOF, this Amendment has been executed as of the date first written above.

	 	 	 	 	 
	 	GENERAL PARTNER:

Williams Partners GP LLC

 	 
	 	By:  	/s/ Alan S. Armstrong
 	 
	 	 	Alan S. Armstrong 	 
	 	 	Chief Operating Officer

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