SEC Contract Filing

Filing Date: 2020-02-14

Document Content:
<DOCUMENT>
<TYPE>EX-10.4
<SEQUENCE>5
<FILENAME>wes20208-kxfebruaryxex104.htm
<DESCRIPTION>EXHIBIT 10.4
<TEXT>
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<div><a name="s9E212EFA0C55D3FF414542060D775E17"></a></div><div><div style="line-height:120%;text-align:right;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;">EXHIBIT 10.4</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br></font></div><div style="line-height:120%;text-align:left;"><img src="usdocs114064631v22020_image1.jpg" alt="usdocs114064631v22020_image1.jpg" style="height:26px;width:289px;"></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;color:#006ebf;font-weight:bold;">&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br></font></div><div style="line-height:120%;text-align:left;"><img src="usdocs113828569v62020_image2.gif" alt="usdocs113828569v62020_image2.gif" style="height:0px;width:672px;"></div></div><div><br></div><div style="line-height:120%;text-align:left;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">/$GrantDate$/</font></div><div style="line-height:120%;text-align:left;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;text-align:justify;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">Dear /$ParticipantName$/:</font></div><div style="line-height:120%;text-align:justify;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;text-align:justify;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">We value your contributions and are therefore pleased to grant you this award of performance based Phantom Units (the &#8220;PA&#8221;) under the Western Gas Equity Partners, LP 2012 Long-Term Incentive Plan (&#8220;the Plan&#8221;), Section 6(h). This PA is subject to all terms and conditions of the Plan and the provisions of this Award Agreement. Unless defined herein, capitalized terms shall have the meaning assigned to them under the Plan. For the avoidance of doubt, references in the Plan to (i) the &#8220;Company&#8221; mean Western Midstream Holdings, LLC, and (ii) the &#8220;Partnership&#8221; mean Western Midstream Partners, LP.</font></div><div style="line-height:120%;text-align:justify;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;text-align:justify;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">Effective {INSERT GRANT DATE} (&#8220;Grant Date&#8221;), you have been awarded &lt;INSERT NUMBER&gt; PA units as your target (&#8220;Target&#8221;). The value of this PA, if any, will be dependent upon the Partnership&#8217;s return on assets (&#8220;ROA&#8221;) over the specified three-year performance period that begins &lt;INSERT BEGIN DT&gt; and ends &lt;INSERT END DT&gt; (the &#8220;Performance Period&#8221;). At the end of the Performance Period, your Target will vest based on the performance outcome. </font></div><div style="line-height:120%;text-align:justify;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;text-align:justify;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">The maximum number of PA units that you can earn during the Performance Period will be calculated as follows {&lt;INSERT NUMBER&gt; x 200%}</font><font style="font-family:inherit;font-size:12pt;font-style:italic;">, </font><font style="font-family:inherit;font-size:12pt;">with actual payout based on the Company&#8217;s ROA ranking as described below. </font></div><div style="line-height:120%;text-align:justify;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;text-align:justify;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">Each PA unit represents the value of one common unit in the Partnership (&#8220;Common Unit&#8221;). The payout of this PA is contingent upon the Company&#8217;s ROA during the Performance Period. The ROA measure provides an internal measure of the Company&#8217;s efficient use of capital and will be calculated for each year during the Performance Period as follows:</font></div><div style="line-height:120%;text-align:justify;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;text-align:justify;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">Adjusted EBITDA divided by average Consolidated Total Assets</font></div><div style="line-height:120%;text-align:justify;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;text-align:justify;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">The actual number of PA units you will earn for the Performance Period is based upon the Company&#8217;s average ROA for the Performance Period as follows:</font></div><div style="line-height:120%;text-align:justify;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;text-align:justify;font-size:12pt;"><font style="font-f