|
AMENDMENT NO. 1 TO
FIRST AMENDED AND RESTATED AGREEMENT OF LIMITED
PARTNERSHIP
OF
QUEST ENERGY PARTNERS, L.P.
This Amendment No. 1 (this “
Amendment No. 1 ”) to the First Amended and Restated Agreement of Limited
Partnership of Quest Energy Partners, L.P. is hereby adopted
effective as of January 1, 2007, by Quest Energy GP, LLC, a
Delaware limited liability company (the “
General Partner ”), as general partner of Quest Energy Partners, L.P., a
Delaware limited partnership (the “ Partnership ”). Capitalized
terms used but not defined herein are used as defined in the First
Amended and Restated Agreement of Limited Partnership, dated as of
November 15, 2007 (the “ Partnership Agreement ”).
WHEREAS , the General
Partner, the Organizational Limited Partner and the Limited
Partners of the Partnership entered into the Partnership Agreement;
and
WHEREAS , acting
pursuant to the power and authority granted to it under
Section 13.1(d) of the Partnership Agreement, the General
Partner has determined that the following amendment to the
Partnership Agreement does not require the approval of any Limited
Partner.
NOW THEREFORE , the
General Partner does hereby amend the Partnership Agreement as
follows:
(a) Section
1.1 is hereby amended to add or amend and restate the following
definitions:
(i) “
Disposed of Adjusted Property
” has the meaning assigned to such term
in Section 6.1(d)(xii)(B)
.
(ii) “
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 (a) after the Liquidation Date or (b)
upon the sale, exchange or other disposition 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 (excluding any disposition to a member of the
Partnership Group). The items included in the determination of Net
Termination Gain shall be determined in accordance with
Section 5.5(b) and
include Simulated Gains, Simulated Losses and Simulated Depletion,
but shall not include any items of income, gain or loss specially
allocated under Section 6.1(d)
.
(iii) “
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 (a) after the Liquidation Date or (b)
upon the sale, exchange or other disposition 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 (excluding any disposition to a member of the
Partnership Group). The items included in the determination of Net
Termination Loss shall be determined in accordance with
Section 5.5(b) and
shall include Simulated Gains, Simulated Losses and Simulated
Depletion, but shall not include any items of income, gain or loss
specially allocated under Section
6.1(d) .
|
|
(b)
|
Section 5.5(d) is
hereby amended and restated in its entirety as follows:
|
(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, the issuance of Class
B Units pursuant to Section
5.11 or the conversion of the General
Partner’s Combined Interest to Common Units pursuant
to Section 11.3(b) , the Capital Accounts 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 for an amount equal to its fair
market value immediately prior to such issuance and had been
allocated to the Partners at such time pursuant to
Section 6.1(c) in the
same manner as any item of gain, loss, Simulated Gain or Simulated
Loss actually recognized following an event giving rise to the
dissolution of the Partnership 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 cash or cash equivalents) immediately prior to the
issuance of additional Partnership Interests shall be
determined
|