Document:

exv10w7

 

Exhibit 10.7

Option Grant under the

EPCO, Inc. 2006 TPP Long-Term Incentive Plan

	 	 	 
	Date of Grant:
	 	[                    ]
	 
	 	 
	Name of Optionee:
	 	[                    ]
	 
	 	 
	Option Exercise Price per Common Unit:
	 	$[_.__]
	 
	 	 
	Number of Options Granted (One
	 	 
	Option equals the Right to
	 	 
	Purchase One Common Unit):
	 	[                    ]
	 
	 	 
	Option Grant Number:
	 	O06-[                    ]

          EPCO, Inc (the “Company”) is pleased to inform you that you have been granted options (the
“Options”) under the EPCO, Inc. 2006 TPP Long-Term Incentive Plan (the “Plan”) to purchase Units
(“Units”) of TEPPCO Partners, L.P. (the “Partnership”) as follows:

     1. You are hereby granted the number of Options to acquire a Common Unit set forth above, each
such Option having the option exercise price set forth above.

     2. The Options shall become fully vested (exercisable) on the earlier of (i) the date that is
four years after the Date of Grant set forth above (the “Vesting Date”) or (ii) a Qualifying
Termination (as defined below). Subject to the further provisions of this Agreement, the Options,
to the extent vested, may be exercised (in whole or in part or in two or more successive parts)
during your employment with the Company and its Affiliates only during any February, May, August,
November or any other month in respect of which the Company notifies you that the Options may be
exercised (a “Qualified Month”) that is within the period beginning on and after the Vesting Date
and ending on the date which is nine years and 364 days after the Date of Grant set forth above
(the “Termination Date”). In the event your employment with the Company and its Affiliates is
terminated prior to the Vesting Date for any reason other than a Qualifying Termination, the
Options shall automatically and immediately be forfeited and cancelled unexercised on the date of
such termination of employment. For purposes of this Option grant award, the term “year” shall
mean a period comprised of 365 (or 366, as appropriate) days beginning on a day of a calendar year
and ending on the day immediately preceding the corresponding day of the next calendar year. For
example, if the Date of Grant of an Option grant award is January 20, 2007, one year after the Date
of Grant would be January 20, 2008, the Vesting Date would be January 20, 2011 and the Termination
Date would be January 20, 2017.

     3. To the extent vested and after receiving clearance from the Transactions Committee, as
provided in the Compliance Procedures for Exercising Options in TPP Units Granted Under the Plan,
as such procedure may be modified from time to time, the Options may be exercised from time to time
by a notice in writing of such exercise which references the Option Grant Number set forth above
and the number of Options (or Units relating thereto) which are being exercised. Such notice shall
be delivered or mailed to the Company at its corporate offices in Houston, Texas, as follows:

     Mailing Address: EPCO, Inc., P.O. Box 4735, Houston, Texas 77210-4735, Attention:
Secretary

     Delivery Address: EPCO, Inc., 1100 Louisiana Street, Suite 1000, Houston, Texas
77002, Attention: Secretary

An election to exercise shall be irrevocable. The date of exercise shall be, if such election is
by delivery, the date the notice is hand delivered to the Company, or if such election is mailed to
the Company, the date on which the envelope is postmarked by the U.S. Postal Service, whichever is
applicable; provided, however, if you are an employee of the Company or an Affiliate and such
mailing or delivery date occurs other than in a Qualified Month, it shall be deemed exercised in
the next Qualified Month. Further, if the date of exercise is on a day on which the New York Stock
Exchange is generally closed for trading, the exercise date shall be deemed to be the next
preceding date on which the New York Stock Exchange is generally open for trading.

     4. An election to exercise one or more of the Options shall be accompanied by the tender of
the full exercise price of the Options (rounded to the nearest whole cent) for which the election
is made. Payment of the purchase price may be made in cash or a check acceptable to the Company or
a cashless-broker procedure approved by the Company. However, no exercise shall be effective until
you have made arrangements acceptable to the Company to satisfy all applicable tax withholding
requirements of the Company, if any, with respect to such exercise.

     5. None of the Options are transferable (by operation of law or otherwise) by you, other than
by will or the laws of descent and distribution. If, in the event of your divorce, legal
separation or other dissolution of your marriage, your former

 

 

spouse is awarded ownership of, or an interest in, all or part of the Options granted hereby to you
(the “Awarded Options”), (i) to the extent the Awarded Options are not fully vested, the Awarded
Options shall automatically and immediately be forfeited and cancelled unexercised as of the
original date of the award thereof and (ii) to the extent the Awarded Options are fully vested, the
Company, in its sole discretion, may at any time thereafter cancel the Awarded Options by
delivering to such former spouse Units having an aggregate Fair Market Value equal to the excess of
the aggregate Fair Market Value of the Units subject to the Awarded Options over their aggregate
Exercise Price.

     6. In the event you terminate employment with the Company and its Affiliates for any reason
other than a Qualifying Termination (as defined below), the Options, if fully vested, may be
exercised by you (or, in the event of your death, by the person to whom your rights shall pass by
will or the laws of the descent and distribution (“Beneficiary”)) only during the 30-day period
beginning on your employment termination date; provided, however, that, other than
for a Qualifying Termination, in no event shall the Options be exercisable after the Termination
Date. A “Qualifying Termination” means your employment with the Company and its Affiliates is
terminated due to your (i) death, (ii) receiving long-term disability benefits under the Company’s
long-term disability plan or (iii) retirement with the approval of the Committee on or after
reaching age 60. If you cease to be an “active, full-time employee”, as determined by the
Committee in its sole discretion, without regard as to how your status is treated by the Company
for any of its other compensation or benefit plans or programs, you will be deemed to have
terminated employment with the Company and its Affiliates for purposes of this Agreement.

     7. In the event of a Qualifying Termination, the Options may be exercised by you or, in the
event such Qualifying Termination was due to your death, by your Beneficiary, at any time on or
prior to the earlier of (A) the date which is 365 days after the date of such Qualifying
Termination or (B) the date which is 90 days after the Termination Date.

     8. Nothing in this Agreement or in the Plan shall confer any right on you to continue
employment with the Company or its Affiliates or restrict the Company or its Affiliates from
terminating your employment at any time. Unless you have a separate written employment agreement
with the Company or an Affiliate, you are, and shall continue to be, an “at will” employee.

     9. Notwithstanding any other provision of this Agreement, the Options shall not be
exercisable, and the Company shall not be obligated to deliver to you any Units, if counsel to the
Company determines such exercise or delivery, as the case may be, would violate any law or
regulation of any governmental authority or agreement between the Company and any national
securities exchange upon which the Units are listed or any policy of the Company or any Affiliate
of the Company.

     10. Notwithstanding any other provision of this Agreement, if you give notice of exercise
within a “quiet period,” as provided in the Policy Regarding “Quiet Periods” and Exercise of
Options Under the Plan, as such procedure may be modified from time to time, the timing of the
delivery of Units pursuant to your exercise shall be governed by the terms of such policy.
Further, the Company shall have no liability to you for any loss you may suffer (whether by a
decrease in the value of the Units, failure or inability to receive Partnership distributions or
otherwise) from any delay by the Company in delivering to you Units in connection with the whole or
partial exercise by you of the Options.

     11. These Options are subject to the terms of the Plan, which is hereby incorporated by
reference as if set forth in its entirety herein, including, without limitation, the ability of the
Company, in its discretion, to accelerate the termination of the Option and to amend your Option
grant award without your approval. In the event of a conflict between the terms of this Agreement
and the Plan, the Plan shall be the controlling document. Capitalized terms that are used, but are
not defined, in this Option grant award have the respective meanings provided for in the Plan. The
Plan, as in effect on the Date of Grant, is attached hereto as Exhibit A.

	 	 	 	 	 
	 	EPCO, INC.

 	 
	 	By:  	 	 
	 	 	[Name, Title] 	 
	 	 	 	 
	 

 

 

Exhibit A

EPCO, INC.

2006 TPP LONG-TERM INCENTIVE PLAN

1 Purpose of the Plan. The EPCO, Inc. 2006 TPP Long-Term Incentive Plan, as
established hereby (the “Plan”), is intended to promote the interests of EPCO, Inc., a Texas
corporation (the “Company”), TEPPCO Partners, L.P., a Delaware limited partnership (the
“Partnership”) and Texas Eastern Products Pipeline Company LLC, the general partner of the
Partnership (“General Partner”), by encouraging directors and employees of the Company and its
Affiliates who perform services for the Partnership, General Partner or their Affiliates to acquire
or increase their equity interests in the Partnership and to provide a means whereby they may
develop a sense of proprietorship and personal involvement in the development and financial success
of the Partnership, and to encourage them to remain with the Company and its Affiliates and to
devote their best efforts to the Company, the General Partner and the Partnership.

2 Definitions.

     As used in the Plan, the following terms shall have the meanings set forth below:

     “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.

     “Award” means an Option, Unit Appreciation Right, a Restricted Unit, a Phantom Unit or DER
granted under the Plan.

     “Board” means the Board of Directors of the Company.

     “Committee” means the Audit and Conflicts Committee of the Board of Directors of the General
Partner.

     “DER” means a contingent right to receive an amount of cash equal to all or a designated
portion (whether by formula or otherwise) of the cash distributions made by the Partnership with
respect to a Unit during a specified period.

     “Director” means a “non-employee director,” as defined in Rule 16b-3, of the General Partner.

     “Employee” means any employee of the Company or an Affiliate.

     “Exchange Act” means the Securities Exchange Act of 1934, as amended.

     “Fair Market Value” means the closing sales price of a Unit on the applicable date (or if
there is no trading in the Units on such date, on the next preceding date on which there was
trading) as reported in The Wall Street Journal (or other reporting service approved by the
Committee). In the event Units are not publicly traded at the time a determination of Fair Market
Value is required to be made hereunder, the determination of Fair Market Value shall be made in
good faith by the Committee.

     “Option” means an option to purchase Units granted under the Plan.

     “Participant” means any Employee or Director granted an Award under the Plan.

     “Person” means any individual, corporation, limited liability company, partnership, joint
venture, association, joint-stock company, trust, unincorporated organization, government or
political subdivision thereof or other entity.

     “Phantom Unit” means a notional or phantom unit granted under the Plan which upon vesting
entitles the holder to receive one Unit upon vesting.

     “Restricted Unit” means a Unit granted under the Plan that is subject to forfeiture provisions
and restrictions on its transferability.

     “Rule 16b-3” means Rule 16b-3 promulgated by the SEC under the Exchange Act, or any successor
rule or regulation thereto as in effect from time to time.

 

 

     “SEC” means the Securities and Exchange Commission, or any successor thereto.

     “Unit” means a Unit of the Partnership.

     “Unit Appreciation Right” or “UAR” means an Award that, upon exercise or vesting, as provided
in the Award agreement, entitles the holder to receive the excess, or such designated portion of
the excess not to exceed 100%, of the Fair Market Value of a Unit on the exercise or vesting date,
as the case may be, over the exercise or grant price established for such Unit Appreciation Right.
Such excess may be paid in cash and/or in Units as determined by the Committee in its discretion.

3 Administration. The Plan shall be administered by the Committee. A majority of the
Committee shall constitute a quorum, and the acts of the members of the Committee who are present
at any meeting thereof at which a quorum is present, or acts unanimously approved by the members of
the Committee in writing, shall be the acts of the Committee. Subject to the terms of the Plan and
applicable law, and in addition to other express powers and authorizations conferred on the
Committee by the Plan, the Committee shall have full power and authority to: (i) designate
Participants; (ii) determine the type or types of Awards to be granted to a Participant; (iii)
determine the number of Units to be covered by Awards; (iv) determine the terms and conditions of
any Award; (v) determine whether, to what extent, and under what circumstances Awards may be
settled, exercised, canceled, or forfeited; (vi) interpret and administer the Plan and any
instrument or agreement relating to an Award made under the Plan; (vii) establish, amend, suspend,
or waive such rules and regulations and appoint such agents as it shall deem appropriate for the
proper administration of the Plan; and (viii) make any other determination and take any other
action that the Committee deems necessary or desirable for the administration of the Plan. Unless
otherwise expressly provided in the Plan, all designations, determinations, interpretations, and
other decisions under or with respect to the Plan or any Award shall be within the sole discretion
of the Committee, may be made at any time and shall be final, conclusive, and binding upon all
Persons, including the Company, the Partnership, any Affiliate, any Participant, and any
beneficiary thereof.

4 Units Available for Awards.

4.1 Units Available. Subject to adjustment as provided in Section 4(c), the number of
Units with respect to which Awards may be granted under the Plan is 5,000,000. To the extent an
Award is forfeited or otherwise terminates or is canceled without the delivery of Units, then the
Units covered by such Award, to the extent of such forfeiture, termination or cancellation, shall
again be Units with respect to which Awards may be granted. If any Award is exercised and less than
all of the Units covered by such Award are delivered in connection with such exercise, then the
Units covered by such Award which were not delivered upon such exercise shall again be Units with
respect to which Awards may be granted. Units withheld to satisfy tax withholding obligations of
the Company or an Affiliate shall not be considered to have been delivered under the Plan for this
purpose.

4.2 Sources of Units Deliverable Under Awards. Any Units delivered pursuant to an
Award shall consist, in whole or in part, of Units acquired in the open market, from any Affiliate
(including, without limitation, the Partnership) or other Person, or any combination of the
foregoing, as determined by the Committee in its discretion. If, at the time of exercise by a
Participant of all or a portion of such Participant’s Award, the Company determines to acquire
Units in the open market and the Company is prohibited, under applicable law, or the rules and/or
regulations promulgated by the Securities and Exchange Committee or the New York Stock Exchange or
the policies of the Company or an Affiliate, from acquiring Units in the open market, delivery of
any Units to the Participant in connection with such Participant’s exercise of an Award may be
delayed until such reasonable time as the Company is entitled to acquire, and does acquire, Units
in the open market.

4.3 Adjustments. In the event the Committee determines that any distribution (whether
in the form of cash, Units, other securities, or other property), recapitalization, split, reverse
split, reorganization, merger, consolidation, split-up, spin-off, combination, repurchase, or
exchange of Units or other securities of the Partnership, issuance of warrants or other rights to
purchase Units or other securities of the Partnership, or other similar transaction or event
affects the Units such that an adjustment is determined by the Committee to be appropriate in order
to prevent dilution or enlargement of the benefits or potential benefits intended to be made
available under the Plan, then the Committee shall, in such manner as it may deem equitable, adjust
any or all of (i) the number and type of Units (or other securities or property) with respect to
which Awards may be granted, (ii) the number and type of Units (or other securities or property)
subject to outstanding Awards, and (iii) the grant or

 

 

exercise price with respect to any Award; provided, that the number of Units subject to any
Award shall always be a whole number.

5 Eligibility. Any Employee or Director who performs services for the Partnership or
the General Partner shall be eligible to be designated a Participant.

6 Awards.

     6.1 Options. The Committee shall have the authority to determine the Employees and
Directors to whom Options shall be granted, the number of Units to be covered by each Option, the
exercise price therefor and the conditions and limitations applicable to the exercise of the
Option, including the following terms and conditions and such additional terms and conditions, as
the Committee shall determine, that are not inconsistent with the provisions or intent of the Plan.

          6.1.1 Exercise Price. The purchase price per Unit purchasable under an Option shall
be determined by the Committee at the time the Option is granted, but may not be less than 100% of
the Fair Market Value per Unit as of the date of grant.

          6.1.2 Time and Method of Exercise. The Committee shall determine the time or times at
which an Option may be exercised in whole or in part, and the method or methods by which any
payment of the exercise price with respect thereto may be made or deemed to have been made, which
may include, without limitation, cash, check acceptable to the Company, a “cashless-broker”
exercise (through procedures approved by the Company), other property or any combination thereof,
having a value on the exercise date equal to the relevant exercise price.

          6.1.3 Term. Each Option shall expire as provided in the grant agreement for such
Option.

     6.2 Restricted Units. The Committee shall have the authority to determine the
Employees and Directors to whom Restricted Units shall be granted, the number of Restricted Units
to be granted to each such Participant, the period and the conditions under which the Restricted
Units may become vested or forfeited, which may include, without limitation, the accelerated
vesting upon the achievement of specified performance goals or other criteria, and such other terms
and conditions as the Committee may establish with respect to such Award, including whether any
distributions made by the Partnership with respect to the Restricted Units shall be subject to the
same forfeiture and other restrictions as the Restricted Unit. If distributions are so restricted,
such distributions shall be held by the Company, without interest, until the Restricted Unit vests
or is forfeited with the retained distributions then being paid or forfeited at the same time, as
the case may be. Absent such a restriction on distributions in the grant agreement, Partnership
distributions shall be paid currently to the holder of the Restricted Unit without restriction.

     6.3 Phantom Units. The Committee shall have the authority to determine the Employees
and Directors to whom Phantom Units shall be granted, the number of Phantom Units to be granted to
each such Participant, the period during which the Award remains subject to forfeiture, the
conditions under which the Phantom Units may become vested or forfeited, and such other terms and
conditions as the Committee may establish with respect to such Award.

     6.4 DERs. The Committee shall have the authority to determine the Employees and
Directors to whom DERs shall be granted, the number of DERs to be granted to each such Participant,
the period during which the Award remains subject to forfeiture, the limits, if any, or portion of
a DER that is payable, the conditions under which the DERs may become vested or forfeited, and such
other terms and conditions as the Committee may establish with respect to such Award.

     6.5 UARs. The Committee shall have the authority to determine the Employees and
Directors to whom UARs shall be granted, the number of Units to be covered by each grant, the
exercise price therefor and the conditions and limitations applicable to the exercise of the UAR,
and such additional terms and conditions as the Committee may establish with respect to such Award.

 

 

6.6 General.

          6.6.1 Awards May Be Granted Separately or Together. Awards may, in the discretion of
the Committee, be granted either alone or in addition to, in tandem with, or in substitution for
any other Award granted under the Plan or any award granted under any other plan of the Company or
any Affiliate. Awards granted in addition to or in tandem with other Awards or awards granted under
any other plan of the Company or any Affiliate may be granted either at the same time as or at a
different time from the grant of such other Awards or awards.

          6.6.2 Limits on Transfer of Awards.

               6.6.2.1 Each Option shall be exercisable only by the Participant during the Participant’s
lifetime, or by the person to whom the Participant’s rights shall pass by will or the laws of
descent and distribution.

               6.6.2.2 No Award and no right under any such Award may be assigned, alienated, pledged,
attached, sold or otherwise transferred or encumbered by a Participant otherwise than by will or by
the laws of descent and distribution and any such purported assignment, alienation, pledge,
attachment, sale, transfer or encumbrance shall be void and unenforceable against the Company or
any Affiliate.

          6.6.3 Unit Certificates. All certificates for Units or other securities of the
Partnership delivered under the Plan pursuant to any Award or the exercise thereof shall be subject
to such stop transfer orders and other restrictions as the Committee may deem advisable under the
Plan or the rules, regulations, and other requirements of the SEC, any stock exchange upon which
such Units or other securities are then listed, and any applicable federal or state laws, and the
Committee may cause a legend or legends to be put on any such certificates to make appropriate
reference to such restrictions.

          6.6.4 Consideration for Grants. Awards may be granted for no cash consideration
payable by a Participant or for such consideration payable by a Participant as the Committee
determines including, without limitation, services or such minimal cash consideration as may be
required by applicable law.

          6.6.5 Delivery of Units or other Securities and Payment by Participant of
Consideration. No Units or other securities shall be delivered pursuant to any Award until
payment in full of any amount required to be paid pursuant to the Plan or the applicable Award
grant agreement (including, without limitation, any exercise price or required tax withholding) is
received by the Company. Such payment may be made by such method or methods and in such form or
forms as the Committee shall determine, including, without limitation, cash, withholding of Units,
“cashless-broker” exercises with simultaneous sale, or any combination thereof; provided that the
combined value, as determined by the Committee, of all cash and cash equivalents and the fair
market value of any such property so tendered to, or withheld by, the Company, as of the date of
such tender, is at least equal to the full amount required to be paid to the Company pursuant to
the Plan or the applicable Award agreement.

7 Amendment and Termination. Except to the extent prohibited by applicable law and
unless otherwise expressly provided in an Award agreement or in the Plan:

          7.1.1 Amendments to the Plan. Except as required by applicable law or the rules of
the principal securities exchange on which the Units are traded and subject to Section 7(ii) below,
the Board or the Committee may amend, alter, suspend, discontinue, or terminate the Plan without
the consent of any partner, Participant, other holder or beneficiary of an Award, or other Person.

          7.1.2 Amendments to Awards. The Committee may waive any conditions or rights under,
amend any terms of, or alter any Award theretofore granted, provided no change, other than pursuant
to Section 7(iii), in any Award shall materially reduce the benefit to Participant without the
consent of such Participant.

          7.1.3 Adjustment or Termination of Awards Upon the Occurrence of Certain Events. The
Committee is hereby authorized to make adjustments in the terms and conditions of, and the criteria
(if any) included in, Awards in recognition of unusual or significant events (including, without
limitation, the events described in Section 4(c) of the Plan) affecting the Partnership or the
financial statements of the Partnership, of

 

 

changes in applicable laws, regulations, or accounting principles, or a change in control of
the Company (as determined by its Board) or the Partnership (as determined by the Committee),
whenever the Committee determines that such adjustments are appropriate in order to prevent
dilution or enlargement of the benefits or potential benefits intended to be made available under
the Plan. Such adjustments may include, without limitation, accelerating the exercisability of an
Award, accelerating the date on which the Award will terminate and/or canceling Awards by the
issuance or transfer of Units having a value equal to the Option’s positive “spread.”

8 General Provisions.

     8.1 No Rights to Awards. No Person shall have any claim to be granted any Award, and
there is no obligation for uniformity of treatment of Participants. The terms and conditions of
Awards need not be the same with respect to each recipient.

     8.2 Termination of Employment. For purposes of the Plan, unless the Award agreement
provides to the contrary, a Participant shall not be deemed to have terminated employment with the
Company and its Affiliates or membership from the Board until such date as the Participant is no
longer either an Employee of the Company or an Affiliate or a Director, i.e., a change in status
from Employee to Director or Director to Employee shall not be a termination.

     8.3 No Right to Employment. The grant of an Award shall not be construed as giving a
Participant the right to be retained in the employ of the Company or any Affiliate or to remain a
Director, as applicable. Further, the Company or an Affiliate may at any time dismiss a Participant
from employment, free from any liability or any claim under the Plan, unless otherwise expressly
provided in the Plan or in any Award agreement. Nothing in the Plan or any Award agreement shall
operate or be construed as constituting an employment agreement with any Participant and each
Participant shall be an “at will” employee, unless such Participant has entered into a separate
written employment agreement with the Company or an Affiliate.

     8.4 Governing Law. The validity, construction, and effect of the Plan and any rules
and regulations relating to the Plan shall be determined in accordance with the laws of the State
of Delaware and applicable federal law, without giving effect to principles of conflicts of law.

     8.5 Severability. If any provision of the Plan or any Award is or becomes or is
deemed to be invalid, illegal, or unenforceable in any jurisdiction or as to any Person or Award,
or would disqualify the Plan or any Award under any law deemed applicable by the Committee, such
provision shall be construed or deemed amended to conform to the applicable laws, or if it cannot
be construed or deemed amended without, in the determination of the Committee, materially altering
the intent of the Plan or the Award, such provision shall be stricken as to such jurisdiction,
Person or Award and the remainder of the Plan and any such Award shall remain in full force and
effect.

     8.6 Other Laws. The Committee may refuse to issue or transfer any Units or other
consideration under an Award if, in its sole discretion, it determines that the issuance or
transfer or such Units or such other consideration might violate any applicable law or regulation,
the rules of any securities exchange, or entitle the Partnership or an Affiliate to recover the
same under Section 16(b) of the Exchange Act, and any payment tendered to the Company by a
Participant, other holder or beneficiary in connection with the exercise of such Award shall be
promptly refunded to the relevant Participant, holder or beneficiary.

     8.7 No Trust Fund Created; Unsecured Creditors. Neither the Plan nor any Award shall
create or be construed to create a trust or separate fund of any kind or a fiduciary relationship
between the Company or any Affiliate and a Participant or any other Person. To the extent that any
Person acquires a right to receive payments from the Company or any Affiliate pursuant to an Award,
such right shall be no greater than the right of any general unsecured creditor of the Company or
the Affiliate.

     8.8 No Fractional Units. No fractional Units shall be issued or delivered pursuant to
the Plan or any Award, and any such fractional Units or any rights thereto shall be canceled,
terminated, or otherwise eliminated, without the payment of any consideration therefor.

 

 

     8.9 Headings. Headings are given to the Sections and subsections of the Plan solely
as a convenience to facilitate reference. Such headings shall not be deemed in any way material or
relevant to the construction or interpretation of the Plan or any provision thereof.

     8.10 Tax Withholding. The Company or any Affiliate is authorized to withhold from any
Award, from any payment due or transfer made under any Award or from any compensation or other
amount owing to a Participant the amount (in cash, Units or other property) of any applicable taxes
payable in respect of the grant of an Award, its exercise, the lapse of restrictions thereon, or
any payment or transfer under an Award or under the Plan and to take such other action as may be
necessary in the opinion of the Company or the Affiliate to satisfy its withholding obligations for
the payment of such taxes.

     8.11 Facility Payment. Any amounts payable hereunder to any person under legal
disability or who, in the judgment of the Committee, is unable to properly manage his financial
affairs, may be paid to the legal representative of such person, or may be applied for the benefit
of such person in any manner which the Committee may select, and the Company and its Affiliates
shall be relieved of any further liability for payment of such amounts.

     8.12 Participation by Affiliates. In making Awards to Employees employed by an
Affiliate of the Company, the Committee shall be acting on behalf of the Affiliate, and to the
extent the Partnership has an obligation to reimburse the Affiliate for compensation paid to
Employees for services rendered for the benefit of the Partnership, such payments or reimbursement
payments may be made by the Partnership directly to the Affiliate, and, if made to the Company,
shall be received by the Company as agent for the Affiliate.

9 Term of the Plan; Unitholder Approval. The Plan, as hereby amended and restated,
shall be effective on the date of its approval by the Unitholders of the Partnership and shall
continue until the earliest of (i) all available Units under the Plan have been paid to
Participants, (ii) the termination of the Plan by action of the Board or the Committee or (iii) the
10th anniversary of the date of the approval by the Unitholders of this Plan. However, unless
otherwise expressly provided in the Plan or in an applicable Award agreement, any Award granted
prior to such termination, and the authority of the Board or the Committee to amend, alter, adjust,
suspend, discontinue, or terminate any such Award or to waive any conditions or rights under such
Award, shall extend beyond such termination date.

10 Section 409A. Notwithstanding anything in this Plan to the contrary, if any Plan
provision or Award under the Plan would result in the imposition of an additional tax under Code
Section 409A and related regulations and United States Department of the Treasury pronouncements
(“Section 409A”), that Plan provision or Award will be reformed to the extent practicable to avoid
imposition of the applicable tax and no action taken to comply with Section 409A shall be deemed to
adversely affect the Participant’s rights to an Award or require the consent of the Participant.exv10w8

 

Exhibit 10.8

TPP Unit Appreciation Right Grant

(Texas Eastern Products Pipeline Company LLC Directors)

	 	 	 
	Grant No.:

	 	TPPUAR-                    
	 
	 	 
	Date of Grant:

	 	                                        , 20      
	 
	 	 
	Name of Grantee:

	 	                                        
	 
	 	 
	Grant Price per Unit:

	 	$                                        
	 
	 	 
	Number of UARs Granted:

	 	                    

     Texas Eastern Products Pipeline Company LLC (the “General Partner”) is pleased to inform you
that you have been granted, under the EPCO, Inc. 2006 TPP Long-Term Incentive Plan, as the same may
from time to time hereafter be amended, supplemented or modified (the “Plan”), Unit Appreciation
Rights with respect to units of TEPPCO Partners, L.P. (“UARs”) as set forth above. The terms of the
Award are as follows:

     1. Vesting. The UARs shall become automatically payable with respect to 100% of the
Units subject to the UARs on the fifth anniversary of the Date of Grant (the “Vesting Date”) if you
have been a director of the General Partner or an Affiliate of the General Partner continuously
during the period beginning on the Date of Grant and ending on the Vesting Date. Notwithstanding
the foregoing, the UARs shall become automatically
payable on the date on which you have had a Qualifying Event, in which case the date of the Qualifying Event shall be deemed the Vesting Date. A “Qualifying Event” means your
status as a director of the General Partner and/or an Affiliate of the General Partner
(collectively, the “Affiliated Group”) is terminated due to (A) your death or (B) your removal as,
or not being re-elected or re-appointed as, a director of one or more entity member(s) of the
Affiliated Group by the member(s), shareholder(s) or Board of Directors, as appropriate, of such
entity or entities, as applicable, which removal or failure to re-elect or re-appoint shall not
have been as a result of, caused by, or related to, your resignation, or your unwillingness to
serve, for whatever reason, as a director of such entity or entities. If, on any date prior to the
Vesting Date you are not a director of the General Partner or an
Affiliate for a reason other than a Qualifying Termination, the UARs shall automatically and immediately be forfeited and cancelled without payment on
such date.

     2. No Right to Continue as a Director. Nothing in this Award or in the Plan shall
confer any right on you to continue as a director of the General Partner and/or one or more of its
Affiliates or restrict the member(s), shareholder(s) or the Board of Directors, as appropriate, of
the applicable entity member(s) of the Affiliated Group from removing you, or not re-electing or
re-appointing you, as a director of such entity.

     3. UAR Payment. On the Vesting Date, the General Partner will pay you, with respect
to each UAR, an amount equal to the excess, if any, of the Fair Market Value of a Unit on the
Vesting Date over the Grant Price per Unit. In the sole discretion of the Committee, payment may
be made in Units, cash or any combination thereof.

     4. Transferability. None of the UARs are transferable (by operation of law or
otherwise) by you, other than by will or the laws of descent and distribution. If, in the event of
your divorce, legal separation or other dissolution of your marriage, your former spouse is awarded
ownership of, or an interest in, all or part of the UARs granted hereby to you, the Award shall
automatically and immediately be forfeited and cancelled in full without payment on such date.

     5. Governing Law. This Award shall be governed by, and construed in accordance with,
the laws of the State of Texas, without regard to conflicts of laws principles thereof.

 

 

     6. Plan Controls. This Award is subject to the terms of the Plan, which is hereby
incorporated by reference as if set forth in its entirety herein. In the event of a conflict
between the terms of this Award and the Plan, the Plan shall be the controlling document.
Capitalized terms which are used, but are not defined, in this Award have the respective meanings
provided for in the Plan.

	 	 	 	 	 
	 	 	TEXAS EASTERN PRODUCTS PIPELINE COMPANY LLC
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 	 	[Name, Title]

2

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