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EXHIBIT 3.1
AMENDMENT NO. 1 TO THIRD
AMENDED AND RESTATED
AGREEMENT OF LIMITED
PARTNERSHIP OF
ONEOK PARTNERS,
L.P.
This Amendment No. 1,
dated July 20, 2007 (this “ Amendment ”),
to the Third Amended and Restated Agreement of Limited Partnership
(the “ Partnership Agreement ”), of ONEOK
Partners, L.P., a Delaware limited partnership, dated as of
September 15, 2006, is entered into and effectuated by ONEOK
Partners GP, L.L.C., a Delaware limited liability company and f/k/a
Northern Plains Natural Gas Company, LLC in its capacity as the
General Partner, pursuant to authority granted to it in Article XV
of the Partnership Agreement. Capitalized terms used but not
defined herein are used as defined in the Partnership
Agreement.
RECITALS:
WHEREAS,
Section 15.1(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;
WHEREAS, on December 1,
2006, the Partnership entered into the stipulation of settlement
(the “ Settlement ”) in connection with the
now-dismissed lawsuit, F. Richard Manson v. Northern Plains Natural
Gas Company, LLC, et al., C.A. No. 1973-N (Court of Chancery
in the State of Delaware, County of New Castle) in which, among
other matters, it agreed to make changes to the terms of the
Partnership Agreement to (a) amend the definition of
“Audit Committee” to provide that at least one member
of the Audit Committee will be an audit committee financial expert,
and (b) amend the terms of the Class B Units to provide that
(i) if the Conversion Approval or Amendment Approval was not
obtained, the holder of the Class B Units would be entitled to
increased distributions equal to 110% of the distributions due to
Common Unitholders instead of 115% as set forth in the original
terms of the Class B Units, and (ii) in certain circumstances,
the holder of the Class B Units would be entitled to increased
distributions equal to 123.5% of the distributions due to Common
Unitholders instead of 125% as set forth in the original terms of
the Class B Units;
WHEREAS, at a special meeting
of Common Unitholders of the Partnership held on March 29,
2007, the Conversion Approval was obtained, and the meeting was
adjourned to May 10, 2007 without obtaining the Amendment
Approval;
WHEREAS, at the adjourned
special meeting of Common Unitholders of the Partnership held on
May 10, 2007, the Amendment Approval was not
obtained;
WHEREAS, the Audit Committee
has determined, pursuant to Section 6.9 of the Partnership
Agreement, that amending the Partnership Agreement to reflect the
terms of the Settlement and the outcome of the special meeting and
the adjourned special meeting referenced
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above is fair and reasonable to the
Partnership, and has recommended to the General Partner that such
updating amendments to the Partnership Agreement be approved;
and
WHEREAS, the General Partner,
has determined that it is in the best interest of the Partnership
and the Limited Partners, and does not adversely affect the Limited
Partners in any material respect, to amend the Partnership
Agreement to reflect the outcome of the special meeting and the
adjourned special meeting, to reflect the terms of the Settlement
and to make such other changes pursuant to Section 15.1(d)(i)
as the General Partner deems to be appropriate.
NOW, THEREFORE, it is hereby
agreed as follows:
A. Amendment. The
Partnership Agreement is hereby amended as follows:
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1) |
Section 2.1 is hereby amended as follows: |
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a) |
the definition of “Audit Committee” shall be
deleted in its entirety and replaced with the
following: |
“ Audit
Committee ” means a committee of the Board of Directors
of the General Partner consisting of three or more members of the
Board of Directors appointed by the Board of Directors who meet the
independence and other standards required of directors who serve on
an audit committee of a board of directors established by
(a) the Securities Exchange Act and rules and regulations of
the Commission thereunder, (b) the National Securities
Exchange on which the Common Units are listed or admitted to
trading and (c) the Board of Directors; provided that at least
one member of the Audit Committee will be an audit committee
financial expert (as defined in Item 407(d)(5) of Regulation
S-K, the Standard Instructions for Filing Forms under the
Securities Act of 1933, Securities and Exchange Act of 1934, and
Energy and Policy Conversion Act of 1975) and provided further that
the aforesaid definition cannot be amended other than with the
prior approval of a majority of the Outstanding Common Units
(excluding Units held by the General Partner and its
Affiliates).
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2) |
Section 2.1 is hereby amended to delete the following
definitions: |
“ Class B
Subordination Period ”;
“ Class B Unit
Arrearage ”;
“ Common Unit
Arrearage ”;
“ Conversion
Approval Termination Date ”;
“ Cumulative Class B
Unit Arrearage ”;
“ Cumulative Common
Unit Arrearage ”; and
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“ Section 4.9(b)
Distribution Increase Date ”.
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3) |
Section 2.1 is hereby amended to substitute the following
definitions in place of the existing definitions: |
“ Class B
Distribution Increase Date ” means April 7, 2007;
and
“ Conversion
Approval Date ” means March 29, 2007.
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4) |
Section 2.1 is hereby amended to add the following
definition: |
“ Conversion
Approval ” means the approval of a change in the terms of
the Class B Units to provide that each Class B Unit shall be
convertible from time to time, at the option of the holders
thereof, into one Common Unit (subject to appropriate adjustment in
the event of any split-up, combination or similar event affecting
the Common Units that occurs prior to the conversion of the Class B
Units).
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5) |
Section 4.8 shall be deleted in its entirety and replaced
with the following: |
Section 4.8
Establishment of Class B Units.
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a) |
General. Prior to the Effective Date, the Partnership
Policy Committee designated and created a class of Units designated
as “Class B Units” and consisting of a total of
36,494,126 Class B Units, and fixed the designations, preferences
and relative, participating, optional or other special rights,
power and duties of holders of the Class B Units as set forth in
this Section 4.8. |
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b) |
Rights Associated with Class B Units. Prior to the
conversion of all of the Class B Units pursuant to
Section 4.8(f) below: |
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i) |
subject to the provisions of Section 5.1(d)(iii)(A) and
paragraphs (ii) and (iii) below, all items of Partnership
income, gain, loss, deduction and credit shall be allocated to the
Class B Units to the same extent such items would be allocated if
such Class B Units were Common Units then Outstanding, and the
allocations to Class B Units shall have the same order of priority
relative to allocations on the Common Units; |
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ii) |
the Class B
Units shall have the right to share in Partnership quarterly cash
distributions based on 110% of the amount of any Partnership
distribution that would be made to each Common Unit so that the
amount of any Partnership distribution to each Class B Unit will
equal 110% of the amount of such distribution to each Common Unit
(such additional 10% pro rated for the quarter in which the Class
B
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Distribution Increase Date
occurs), and the right of holders of Class B Units to receive
distributions shall have the same order of priority relative to
distributions on the Common Units; and
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iii) |
the Class B Units shall have rights upon dissolution and
liquidation of the Partnership, including the right to share in any
liquidating distributions, that are based on 110% of the
liquidating distributions that would be made to the Common Units so
that the amount of any liquidating distribution to each Class B
Unit will equal 110% of the amount of such distribution to each
Common Unit, and accordingly, notwithstanding anything to the
contrary in this Agreement, prior to any distribution under
Section 14.4, the Capital Account of each Partner shall be
adjusted to give effect to the foregoing liquidation
rights. |
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c) |
Voting Rights. The Class B Units will have such voting
rights pursuant to the Partnership Agreement as such Class B Units
would have if they were Common Units that were then Outstanding
except that (i) for the purposes of the definition of
“Outstanding” such Class B Units shall be deemed to be
“Units” but not “Common Units” for all
purposes thereof, and (ii) with respect to the Amendment
Approval, none of the Class B Units shall be deemed Outstanding as
of the record date for such vote or be entitled to vote. Each Class
B Unit will be entitled to the number of votes equal to the number
of Common Units into which a Class B Unit is
convertible.” |
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d) |
Certificates. The Class B Units are evidenced by
certificates in the form previously approved by the Partnership
Policy Committee and, subject to the satisfaction of any applicable
legal and regulatory requirements, may be assigned or transferred
in a manner identical to the assignment and transfer of other
Units. The Class B Unit Certificates include the restrictive legend
set forth below: |
THE UNITS REPRESENTED BY THIS
CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
1933, AS AMENDED, OR ANY STATE SECURITIES LAW (“ACTS”).
THE UNITS HAVE BEEN ACQUIRED
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