AGREEMENT OF LIMITED PARTNERSHIP OF QR ENERGY, LP
Exhibit 3.2
AGREEMENT OF
LIMITED PARTNERSHIP OF
THIS AGREEMENT OF LIMITED PARTNERSHIP, dated as of September 28, 2010 (this “Agreement”), is
made, executed and agreed to by QRE GP, LLC, a Delaware limited liability company, as general
partner, and The Quantum Aspect Partnership, LP, a Delaware limited partnership, as Organizational
Limited Partner.
ARTICLE I
DEFINITIONS
The following definitions shall for all purposes, unless otherwise clearly indicated to the
contrary, apply to the terms used in this Agreement.
“Certificate of Limited Partnership” means the Certificate of Limited Partnership filed with
the Secretary of State of the State of Delaware as described in the first sentence of Section 2.5
as amended or restated from time to time.
“Delaware Act” means the Delaware Revised Uniform Limited Partnership Act, as amended from
time to time, and any successor to such act.
“General Partner” means QRE GP, LLC, a Delaware limited liability company.
“Limited Partner” means the Organizational Limited Partner and any other limited partner
admitted to the Partnership from time to time.
“Organizational Limited Partner” means The Quantum Aspect Partnership, LP, a Delaware limited
partnership.
“Partner” means the General Partner or any Limited Partner.
“Partnership” means QR Energy, LP, a Delaware limited partnership.
“Percentage Interest” means, with respect to any Partner, the percentage of cash contributed
by such Partner to the Partnership as a percentage of all cash contributed by all the Partners to
the Partnership.
ARTICLE II
ORGANIZATIONAL MATTERS
2.1 Formation. Subject to the provisions of this Agreement, the General Partner and the
Organizational Limited Partner have formed the Partnership as a limited partnership pursuant to the
provisions of the Delaware Act. The General Partner and the Organizational Limited Partner hereby
enter into this Agreement to set forth the rights and obligations of the Partnership and certain
matters related thereto. Except as expressly provided herein to the contrary, the rights and
obligations of the Partners and the administration, dissolution and termination of the Partnership
shall be governed by the Delaware Act.
2.2 Name. The name of the Partnership shall be, and the business of the Partnership shall be
conducted under the name “QR Energy, LP”.
2.3 Principal Office; Registered Office.
(a) The principal office of the Partnership shall be at 5 Houston Center, 0000 XxXxxxxx
Xxxxxx, Xxxxx 0000, Xxxxxxx, Xxxxx 00000 or such other place as the General Partner may from time
to time designate.
(b) The address of the Partnership’s registered office in the State of Delaware shall be 000
X. XxXxxx Xxxxxxx, Xxxxx, XX 00000, and the name of the Partnership’s registered agent for service
of process at such address shall be Capitol Services, Inc.
2.4 Term. The Partnership shall continue in existence until an election to dissolve the
Partnership by the General Partner.
2.5 Organizational Certificate. A Certificate of Limited Partnership of the Partnership has
been filed by the General Partner with the Secretary of State of the State of Delaware as required
by the Delaware Act. The General Partner shall cause to be filed such other certificates or
documents as may be required for the formation, operation and qualification of a limited
partnership in the State of Delaware and any state in which the Partnership may elect to do
business. The General Partner shall thereafter file any necessary amendments to the Certificate of
Limited Partnership and any such other certificates and documents and do all things requisite to
the maintenance of the Partnership as a limited partnership (or as a partnership in which the
Limited Partners have limited liability) under the laws of Delaware and any state or jurisdiction
in which the Partnership may elect to do business.
2.6 Partnership Interests. Effective as of the date hereof, the General Partner shall have a
0.1% general partner Percentage Interest and the Organizational Limited Partner shall have a 99.9%
limited partner Percentage Interest.
ARTICLE III
PURPOSE
The purpose and business of the Partnership shall be to engage in any lawful activity for
which limited partnerships may be organized under the Delaware Act.
ARTICLE IV
CAPITAL ACCOUNT ALLOCATIONS
4.1 Capital Accounts. The Partnership shall maintain a capital account for each of the
Partners in accordance with the regulations issued pursuant to Section 704 of the Internal Revenue
Code of 1986, as amended (the “Code”), and as determined by the General Partner as consistent
therewith.
4.2 Allocations. For federal income tax purposes, each item of income, gain, loss, deduction
and credit of the Partnership shall be allocated among the Partners in accordance with their
Percentage Interests, except that the General Partner shall have the authority to make such other
allocations as are necessary and appropriate to comply with Section 704 of the Code and the
regulations pursuant thereto.
4.3 Distributions. From time to time, but not less often than quarterly, the General Partner
shall review the Partnership’s accounts to determine whether distributions are appropriate. The
General Partner may make such cash distribution as it, in its sole discretion, may determine
without being limited to current or accumulated income or gains from any Partnership funds,
including, without limitation, Partnership revenues, capital contributions or borrowed funds;
provided, however, that no such distribution shall be made if, after giving effect thereto, the
liabilities of the Partnership exceed the fair market value of the assets of the Partnership. In
its sole discretion, the General Partner may, subject to the foregoing proviso, also distribute to
the Partners other Partnership property, or other securities of the Partnership or other entities.
All distributions by the General Partner shall be made in accordance with the Percentage Interests
of the Partners.
ARTICLE V
MANAGEMENT AND OPERATIONS OF BUSINESS
Except as otherwise expressly provided in this Agreement, all powers to control and manage the
business and affairs of the Partnership shall be vested exclusively in the General Partner; the
Limited Partner shall not have any power to control or manage the Partnership.
ARTICLE VI
RIGHTS AND OBLIGATIONS OF LIMITED PARTNER
The Limited Partner shall have no liability under this Agreement except as provided in Article IV.
ARTICLE VII
DISSOLUTION AND LIQUIDATION
The Partnership shall be dissolved, and its affairs shall be wound up as provided in Section 2.4.
ARTICLE VIII
AMENDMENT OF PARTNERSHIP AGREEMENT
The General Partner may amend any provision of this Agreement without the consent of the
Limited Partner and may execute, swear to, acknowledge, deliver, file and record whatever documents
may be required in connection therewith.
ARTICLE IX
GENERAL PROVISIONS
9.1 Addresses and Notices. Any notice to the Partnership, the General Partner or the Limited
Partner shall be deemed given if received by it in writing at the principal office of the
Partnership designated pursuant to Section 2.3(a).
9.2 Binding Effect. This Agreement shall be binding upon and inure to the benefit of the
parties hereto and their successors and assigns.
9.3 Integration. This Agreement constitutes the entire agreement among the parties pertaining
to the subject matter hereof and supersedes all prior agreements and understandings pertaining
thereto.
9.4 Severability. 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
hereof, or of such provision in other respects, shall not be affected thereby.
9.5 Applicable Law. This Agreement shall be governed by and construed and enforced in
accordance with the laws of the State of Delaware.
[Signature Page Follows]
IN WITNESS WHEREOF, this Agreement has been duly executed by the General Partner and the
Organizational Limited Partner as of the date first set forth above.
| GENERAL PARTNER: QRE GP, LLC |
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| By: | /s/ XXXX X. XXXXX | |||
| Name: | Xxxx X. Xxxxx | |||
| Title: | Chief Executive Officer | |||
| ORGANIZATIONAL LIMITED PARTNER: THE QUANTUM ASPECT PARTNERSHIP, LP |
||||
| By: | QA GP, LLC, its General Partner | |||
| By: | /s/ XXXX X. XXXXX | |||
| Name: | Xxxx X. Xxxxx | |||
| Title: | Chief Executive Officer | |||
[Signature Page to Limited Partnership Agreement of QR Energy, LP]
