AMENDMENT NO. 2 TO THE SECOND AMENDED AND RESTATED AGREEMENT OF LIMITED PARTNERSHIP OF QUEST MIDSTREAM PARTNERS, L.P.
Exhibit 10.3
AMENDMENT NO. 2 TO THE
OF
QUEST MIDSTREAM PARTNERS, L.P.
This Amendment No. 2 dated July 1, 2009 (this “Amendment No. 2”) to the Second Amended
and Restated Agreement of Limited Partnership of Quest Midstream Partners, L.P. (the
“Partnership”), dated as of November 1, 2007, as amended by that Amendment No. 1 thereto
effective as of January 1, 2007 (collectively, the “Partnership Agreement”) by and among
Quest Midstream GP, LLC, a Delaware limited liability company (the “General Partner”),
Quest Resource Corporation (“QRC”), as the holder of at least a majority of the Outstanding
Subordinated Units, and the Limited Partners listed on the signature page hereto representing the
holders of at least a majority of the Outstanding Common Units (excluding Common Units owned by the
General Partner and its Affiliates). Capitalized terms not defined herein shall have the meaning
assigned to them in the Partnership Agreement.
WHEREAS, the parties hereto desire to amend the Partnership Agreement to provide that the
Private Purchasers are not Affiliates of the General Partner and that the proposed conversion of
the Partnership to a limited liability company in accordance with the terms of the Merger Agreement
(as defined herein) will not require approval of the Limited Partners upon consummation of the
merger of QMLP contemplated by the Merger Agreement;
WHEREAS, pursuant to Section 13.2 of the Partnership Agreement, the General Partner has
proposed that this Amendment No. 2 be adopted;
WHEREAS, pursuant to Section 13.2, a proposed amendment shall be effective upon its approval
by the General Partner and the holders of a Unit Majority;
WHEREAS, certain of the Private Purchasers disclaim, deny and object to being classified as
affiliates of the General Partner on the date of execution hereof; however, if such Private
Purchasers are deemed to be Affiliates of the General Partner, a Unit Majority has been obtained by
the approval of the remaining Limited Partners listed on the signature page hereto;
WHEREAS, pursuant to Section 13.3(d), the Partnership has received an Opinion of Counsel to
the effect that such amendment will not affect the limited liability of any Limited Partner under
the Delaware Revised Uniform Limited Partnership Act.
NOW, THEREFORE, the Partnership Agreement is hereby amended as follows:
Section 1. Amendments.
(a) The definition of “Affiliate” in Section 1.1 is hereby amended and restated in its
entirety as follows:
“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. For the avoidance of doubt, no Private
Purchaser or any representative of a Private Purchaser shall be deemed to be an
“Affiliate” of the General Partner, Quest Resource Corporation or the Partnership
Group, including but not limited to as a result of service on the Board of Directors
by it or its representative, because of a contractual right to appoint a member to
the Board of Directors or because of ownership of less than a majority of the
membership interests in the General Partner.
(b) The following definition is added:
“Merger Agreement” means the Agreement and Plan of Merger to be dated as of
July 2, 2009, among the Partnership, New Quest Holdings Corp., a Delaware
corporation, Quest Resource Corporation, a Nevada corporation, Quest Energy
Partners, L.P., a Delaware limited partnership, the General Partner, Quest Energy
GP, LLC, a Delaware limited liability company, Quest Resource Acquisition Corp., a
Delaware corporation, Quest Energy Acquisition, LLC, a Delaware limited liability
company, Quest Midstream Holdings Corp., a Delaware corporation, and Quest Midstream
Acquisition, LLC, a Delaware limited liability company, as it may be amended from
time to time.
(c) A new Section 14.6 is added as follows:
Section 14.6 Conversion Pursuant to Merger Agreement. Notwithstanding anything else
contained in this Article XIV or in this Agreement, the General Partner is
permitted, without Limited Partner approval or any further action on the part of the Limited
Partners, to convert the Partnership into a Delaware limited liability company pursuant to,
and in accordance with the Merger Agreement. The Merger Agreement shall be deemed to
satisfy any requirement herein for a Plan of Conversion. The limited liability company
agreement for the new entity shall be in the form agreed to pursuant to Section 2.1 of the
Merger Agreement.
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Section 2. Ratification of Partnership Agreement. Except as expressly modified and
amended herein, all of the terms and conditions of the Partnership Agreement shall remain in full
force and effect.
Section 3. Governing Law. This Amendment No. 2 will be governed by and construed in
accordance with the laws of the State of Delaware.
[signature page follows]
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IN WITNESS WHEREOF, the parties hereto have executed this Amendment No. 2 as of the date first
written above.
QUEST MIDSTREAM GP, LLC |
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By: | /s/ Xxxxx X. Xxxxxx | |||
Xxxxx X. Xxxxxx | ||||
President and Chief Executive Officer | ||||
QUEST RESOURCE CORPORATION |
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By: | /s/ Xxxxx X. Xxxxxx | |||
Xxxxx X. Xxxxxx | ||||
President and Chief Executive Officer | ||||
ALERIAN OPPORTUNITY PARTNERS IV, LP | ||||
By: | ALERIAN OPPORTUNITY | |||
ADVISORS IV, LLC, | ||||
its General Partner | ||||
By: | /s/ Xxxxxxx Xxxxxxx | |||
Xxxxxxx Xxxxxxx | ||||
Managing Member | ||||
ALERIAN OPPORTUNITY PARTNERS IX, LP | ||||
By: | ALERIAN OPPORTUNITY | |||
ADVISORS IX, LLC, | ||||
its General Partner | ||||
By: | /s/ Xxxxxxx Xxxxxxx | |||
Xxxxxxx Xxxxxxx | ||||
Managing Member | ||||
Signature Page to Amendment No. 2 to the Second Amended and Restated Agreement
of Limited Partnership of Quest Midstream Partners, L.P.
of Limited Partnership of Quest Midstream Partners, L.P.
ALERIAN CAPITAL PARTNERS, LP | ||||
By: | ALERIAN CAPITAL ADVISORS, LLC, its General Partner, |
|||
By: | /s/ Xxxxxxx Xxxxxxx | |||
Xxxxxxx Xxxxxxx | ||||
Managing Member | ||||
ALERIAN FOCUS PARTNERS, LP | ||||
By: | ALERIAN FOCUS ADVISORS, LLC, its General Partner |
|||
By: | /s/ Xxxxxxx Xxxxxxx | |||
Xxxxxxx Xxxxxxx | ||||
Managing Member | ||||
SWANK MLP CONVERGENCE FUND, LP | ||||
By: | SWANK ENERGY INCOME ADVISORS, L.P. Its General Partner |
|||
By: | SWANK CAPITAL, LLC Its General Partner |
|||
By: | /s/ Xxxxx X. Xxxxx | |||
Xxxxx X. Xxxxx | ||||
Manager | ||||
THE XXXXXXX MLP OPPORTUNITY FUND I, LP | ||||
By: | CARBON COUNTY PARTNERS I, LP Its General Partner |
|||
By: | CARBON COUNTY GP I, LLC Its General Partner |
|||
By: | /s/ Xxxxx X. Xxxxx | |||
Xxxxx X. Xxxxx | ||||
Manager | ||||
Signature Page to Amendment No. 2 to the Second Amended and Restated Agreement
of Limited Partnership of Quest Midstream Partners, L.P.
of Limited Partnership of Quest Midstream Partners, L.P.
BEL AIR MLP ENERGY INFRASTRUCTURE FUND, LP | ||||
By: | SWANK ENERGY INCOME ADVISORS, L.P. its investment advisor |
|||
By: | SWANK CAPITAL, LLC Its General Partner |
|||
By: | /s/ Xxxxx X. Xxxxx | |||
Xxxxx X. Xxxxx | ||||
Manager | ||||
TORTOISE CAPITAL RESOURCES CORPORATION |
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By: | /s/ Xxxxxx Xxxxxxx | |||
Xxxxxx Xxxxxxx | ||||
President | ||||
TORTOISE GAS AND OIL CORPORATION |
||||
By: | /s/ Xxxxxx Xxxxxxx | |||
Xxxxxx Xxxxxxx | ||||
President | ||||
XXXXX XXXXXXXX ENERGY DEVELOPMENT COMPANY |
||||
By: | /s/ Xxxxx X. Xxxxx | |||
Xxxxx X. Xxxxx | ||||
Executive Vice President | ||||
Signature Page to Amendment No. 2 to the Second Amended and Restated Agreement
of Limited Partnership of Quest Midstream Partners, L.P.
of Limited Partnership of Quest Midstream Partners, L.P.