|   | A. | Phantom      Units awarded to a Participant shall be credited to a Participant’s      Phantom Unit Account as of the credit date (also called Vesting Date) set      forth in the Award Agreement or Phantom Unit Award Certificate and      redemption and payment shall automatically occur within 60 days following      the date of credit in accordance with such terms and conditions as the      Committee shall prescribe. |
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|   | B. | Any      Phantom Units that have been awarded, but not credited, to a Participant’s      Account shall be deemed forfeited as of the date of the Participant’s      retirement or termination of employment for any reason except termination      of employment due to death or disability (as defined in Section 409A of      the Code and applicable regulatoryguidance). |
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|   | C. | Notwithstanding      anything to the contrary herein, if the Committee, in its sole discretion,      determines that the Participant has an unforeseeable emergency as defined      in Treasury Regulation Section 1.409A-3(i)(3) and meets all the conditions      as set forth therein, then it shall accelerate the crediting of Phantom      Units to the Participant’s Phantom Unit Account and redemption and      payment |
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|   | shall      occur within 60 days after the occurrence of the unforeseeable      emergency.  The Committee’s decision as to the determination of      an unforeseeable emergency under this paragraph shall be      conclusive. |
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|   | D.     | The      cash value of each Phantom Unit will be based on the Market Value of a      Limited Partnership Unit as of the date of credit (also called Vesting      Date). The Committee shall establish the necessary procedures for      redemption of Phantom Units.  Redemption and cash payments under      this Plan shall be made no later than 60 days following the credit date of      the Phantom Units. Cash payment shall be made to the Participant; provided      however, payment upon the death of a Participant shall be made to the      Participant’s surviving spouse, or if no surviving spouse exists, to his      or her estate or legal representative. |
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|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |

|   | E. | Specified      Employee Limitation.  Notwithstanding any provisions in the Plan      or Award Agreement to the contrary, to the extent that the Participant is      a “specified employee” (as defined in Section 409A of the Code and      applicable regulatory guidance), and any stock or units of TEPPCO (or of      any entity that together with TEPPCO is treated as a single employer under      Section 414(b) or (c) of the Code), is publicly traded on an established      securities market or otherwise, no distribution or payment that is subject      to Section 409A of the Code shall be made hereunder on account of a      Participant’s “separation from service” (as defined in Section 409A of the      Code and applicable regulatory guidance) before the date that it the first      day of the month that occurs six months after the date of the      Participant’s separation from service (or earlier, the date of death of      the Participant or any other date permitted under Section 409A of the Code      and applicable regulatory guidance) Any such payments shall be aggregated      and paid in a lump sum, withoutinterest.” |
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|   | A. | As      of each quarterly distribution date, and no later than 60 days after each      quarterly distribution date, TEPPCO shall pay to each Participant, if he      or she is then an Eligible Employee and has not had a termination of      employment, an amount equal to the productof: |
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|   | 1. | the      total number of Phantom Units awarded (whether or not then credited to the      Participant’s Phantom Unit Account) to a Participant less the total number      of Phantom Units redeemed and paid before the distribution record date,      multiplied by |
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|   | 2. | the distribution      paid with respect to a Limited Partnership Unit for such  quarter. |
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|   | TEXAS EASTERN PRODUCTS PIPELINE      COMPANY, LLC |
|--------|---------------------------------------------------|

|                                                    | By: /s/  JERRY      E. THOMPSON                                              |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------|--------|
|                                                                                                                                                                                                                                                                           |        Jerry      E. Thompson                       |   |
|                                                                                                                                                                                                                                                                           |        President      & Chief Executive Officer |   |

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