Document:

exv10w15

 

Exhibit 10.15

Execution Copy

AMENDED AND RESTATED

LIMITED LIABILITY COMPANY AGREEMENT

OF

SOUTH TEXAS NGL PIPELINES, LLC

A Delaware Limited Liability Company

 

 

AMENDED AND RESTATED

LIMITED LIABILITY COMPANY AGREEMENT

OF

SOUTH TEXAS NGL PIPELINES, LLC

A Delaware Limited Liability Company

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	ARTICLE 1

	DEFINITIONS

	 
	 	 	 	 	 	 
	1.01

	 	Definitions
	 	 	2	 
	1.02

	 	Construction
	 	 	2	 
	 
	 	 	 	 	 	 
	ARTICLE 2

	ORGANIZATION

	 
	 	 	 	 	 	 
	2.01

	 	Formation
	 	 	2	 
	2.02

	 	Name
	 	 	2	 
	2.03

	 	Registered Office; Registered Agent; Principal Office; Other Offices
	 	 	2	 
	2.04

	 	Purpose
	 	 	3	 
	2.05

	 	Term
	 	 	3	 
	2.06

	 	No State-Law Partnership; Withdrawal
	 	 	3	 
	 
	 	 	 	 	 	 
	ARTICLE 3

	MATTERS RELATING TO MEMBERS

	 
	 	 	 	 	 	 
	3.01

	 	Members
	 	 	3	 
	3.02

	 	Creation of Additional Membership Interest
	 	 	3	 
	3.03

	 	Liability to Third Parties
	 	 	3	 
	 
	 	 	 	 	 	 
	ARTICLE 4

	CAPITAL CONTRIBUTIONS

	 
	 	 	 	 	 	 
	4.01

	 	Capital Contributions
	 	 	3	 
	4.02

	 	Loans
	 	 	4	 
	4.03

	 	Return of Contributions
	 	 	4	 
	4.04

	 	Capital Accounts
	 	 	4	 
	 
	 	 	 	 	 	 
	ARTICLE 5

	ALLOCATIONS AND DISTRIBUTIONS

	 
	 	 	 	 	 	 
	5.01

	 	Allocations
	 	 	5	 
	5.02

	 	Distributions
	 	 	6	 

i 

 

	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	ARTICLE 6

	RIGHTS AND OBLIGATIONS OF MEMBERS

	 
	 	 	 	 	 	 
	6.01

	 	Limitation of Members’ Responsibility, Liability
	 	 	7	 
	6.02

	 	Return of Distributions
	 	 	7	 
	6.03

	 	Priority and Return of Capital
	 	 	7	 
	6.04

	 	Competition
	 	 	7	 
	6.05

	 	Admission of Additional Members
	 	 	7	 
	6.06

	 	Resignation
	 	 	7	 
	6.07

	 	Indemnification
	 	 	7	 
	 
	 	 	 	 	 	 
	ARTICLE 7

	MEETINGS OF MEMBERS

	 
	 	 	 	 	 	 
	7.01

	 	Meetings
	 	 	8	 
	7.02

	 	Place of Meetings
	 	 	8	 
	7.03

	 	Notice of Meetings
	 	 	8	 
	7.04

	 	Meeting of All Members
	 	 	8	 
	7.05

	 	Action by Members Without a Meeting
	 	 	8	 
	7.06

	 	Waiver of Notice
	 	 	8	 
	7.07

	 	Delegation to Board
	 	 	8	 
	 
	 	 	 	 	 	 
	ARTICLE 8

	MANAGEMENT

	 
	 	 	 	 	 	 
	8.01

	 	Management by Board of Directors
	 	 	9	 
	8.02

	 	Officers
	 	 	11	 
	8.03

	 	Duties of Officers and Directors
	 	 	13	 
	8.04

	 	Compensation
	 	 	13	 
	8.05

	 	Indemnification
	 	 	13	 
	8.06

	 	Liability of Indemnitees
	 	 	15	 
	 
	 	 	 	 	 	 
	ARTICLE 8

	ACCOUNTING METHOD, PERIOD, RECORDS AND REPORTS

	 
	 	 	 	 	 	 
	8.01

	 	Accounting Method
	 	 	16	 
	8.02

	 	Accounting Period
	 	 	16	 
	8.03

	 	Records, Audits and Reports
	 	 	16	 
	8.04

	 	Inspection
	 	 	16	 
	 
	 	 	 	 	 	 
	ARTICLE 10

	TAX MATTERS

	 
	 	 	 	 	 	 
	10.01

	 	Tax Returns.
	 	 	16	 
	10.02

	 	Tax Elections
	 	 	16	 
	10.03

	 	Tax Matters Partner
	 	 	16	 

ii 

 

	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	ARTICLE 11

	RESTRICTIONS ON TRANSFERABILITY

	 
	 	 	 	 	 	 
	11.01

	 	Transfer Restrictions
	 	 	17	 
	 
	 	 	 	 	 	 
	ARTICLE 12

	BOOKS, RECORDS, REPORTS, AND BANK ACCOUNTS

	 
	 	 	 	 	 	 
	12.01

	 	Maintenance of Books
	 	 	17	 
	12.02

	 	Reports
	 	 	17	 
	12.03

	 	Bank Accounts
	 	 	17	 
	12.04

	 	Tax Statements
	 	 	17	 
	 
	 	 	 	 	 	 
	ARTICLE 13

	DISSOLUTION, WINDING-UP AND TERMINATION

	 
	 	 	 	 	 	 
	13.01

	 	Dissolution
	 	 	18	 
	13.02

	 	Winding-Up and Termination
	 	 	18	 
	 
	 	 	 	 	 	 
	ARTICLE 14

	MERGER

	 
	 	 	 	 	 	 
	14.01

	 	Authority
	 	 	19	 
	14.02

	 	Procedure for Merger or Consolidation
	 	 	20	 
	14.03

	 	Approval by Members of Merger or Consolidation
	 	 	21	 
	14.04

	 	Certificate of Merger or Consolidation
	 	 	21	 
	14.05

	 	Effect of Merger or Consolidation
	 	 	21	 
	 
	 	 	 	 	 	 
	ARTICLE 15

	GENERAL PROVISIONS

	 
	 	 	 	 	 	 
	15.01

	 	Notices
	 	 	22	 
	15.02

	 	Entire Agreement; Supersedure
	 	 	22	 
	15.03

	 	Effect of Waiver or Consent
	 	 	22	 
	15.04

	 	Amendment or Restatement
	 	 	22	 
	15.05

	 	Binding Effect
	 	 	22	 
	15.06

	 	Governing Law; Severability
	 	 	22	 
	15.07

	 	Further Assurances
	 	 	23	 
	15.08

	 	Offset
	 	 	23	 
	15.09

	 	Counterparts
	 	 	23	 
	15.10

	 	Execution of Additional Instruments
	 	 	23	 
	15.11

	 	Severability
	 	 	23	 
	15.12

	 	Headings
	 	 	23	 

iii 

 

AMENDED AND RESTATED

LIMITED LIABILITY COMPANY AGREEMENT

OF

SOUTH TEXAS NGL PIPELINES, LLC

A Delaware Limited Liability Company

     THIS AMENDED AND RESTATED LIMITED LIABILITY COMPANY AGREEMENT (this “Agreement”) of SOUTH
TEXAS NGL PIPELINES, LLC, a Delaware limited liability company (the “Company”), executed on
February 5, 2007 (the “Effective Date”), is adopted, executed and agreed to, by Enterprise Products
Operating L.P., a Delaware limited partnership (“EPD OLP”) and DEP Operating Partnership, L.P., a
Delaware limited partnership (“DEP OLP”), as the Members of the Company.

RECITALS

     A. The Company was formed on October 5, 2006 by the filing of a Certificate of Formation with
the Secretary of State of the State of Delaware.

     B. The Limited Liability Company Agreement of the Company was executed effective October 6,
2006 by its sole Member, EPD OLP (as amended by the First Amendment dated January 23, 2007, but
effective January 1, 2007, the “Existing Agreement”).

     C. EPD OLP, Enterprise GC, L.P., a Delaware limited partnership (“Enterprise GC”), Enterprise
Holding III, LLC (“Holdings III”), Enterprise GTM Holdings LP (“GTM Holdings”), Enterprise GTMGP,
LLC (“GTMGP”) and the Company entered into a Contribution, Conveyance and Assumption Agreement,
dated January 23, 2007 (the “Asset Contribution Agreement”), pursuant to which (i) Enterprise GC
conveyed the South Texas NGL pipeline assets, as set forth on the schedules thereto, to the Company
effective on January 1, 2007, in exchange for Membership Interests of the Company, (ii) Enterprise
GC distributed all of such Membership Interests 99% to GTM Holdings and 1% to Holdings III, (iii)
Holdings III distributed all of its Membership Interests to GTM Holdings, (iv) GTM Holdings
distributed all of its resulting Membership Interests 99% to EPD OLP and 1% to GTMGP, (v) GTMGP
distributed all of its Membership Interests to GTM, (vi) GTM distributed all of such Membership
Interests to EPD OLP, and (vii) GTMGP distributed all of such Membership Interests to EPD OLP, with
the result that EPD OLP remained the sole member of the Company after giving effect to the
transactions under the Asset Contribution Agreement.

     D. DEP OLP entered into that certain Contribution, Conveyance and Assumption Agreement by and
among DEP Holdings, LLC, Duncan Energy Partners L.P. (“MLP”), DEP OLPGP, LLC and EPD OLP on the
Effective Date (the “Contribution Agreement”), pursuant to which (i) EPD OLP contributed 66% of its
membership interests in the Company (the “Interest”) to MLP for the consideration set forth in the
Contribution Agreement and (ii) MLP contributed the Interest (including 0.001% on behalf of DEP
OLPGP, LLC, a Delaware limited liability company (“DEP OLPGP”), to DEP OLP as a capital
contribution.

     E. EPD OLP deems it advisable to amend and restate the Existing Agreement in its entirety as
set forth herein to reflect (i) the contributions of the Interest from EPD OLP to MLP,

 

 

and from MLP (including 0.001% on behalf of DEP OLPGP to DEP OLP, and (ii) the admission of
DEP OLP as a Member of the Company.

ARTICLE 1

DEFINITIONS

     1.01 Definitions. Each capitalized term used herein shall have the meaning given such term in
Attachment I.

     1.02 Construction. Unless the context requires otherwise: (a) the gender (or lack of gender) of
all words used in this Agreement includes the masculine, feminine and neuter; (b) references to
Articles and Sections refer to Articles and Sections of this Agreement; (c) references to Laws
refer to such Laws as they may be amended from time to time, and references to particular
provisions of a Law include any corresponding provisions of any succeeding Law; (d) references to
money refer to legal currency of the United States of America; (e) “including” means “including
without limitation” and is a term of illustration and not of limitation; (f) all definitions set
forth herein shall be deemed applicable whether the words defined are used herein in the singular
or the plural; and (g) neither this Agreement nor any other agreement, document or instrument
referred to herein or executed and delivered in connection herewith shall be construed against any
Person as the principal draftsperson hereof or thereof.

ARTICLE 2

ORGANIZATION

     2.01 Formation. The Company was organized as a Delaware limited liability company by the filing of
a Certificate of Formation (“Organizational Certificate”) on October 5, 2006 with the Secretary of
State of the State of Delaware.

     2.02 Name . The name of the Company is “South Texas NGL Pipelines, LLC” and all Company business must
be conducted in that name or such other names that comply with Law as the Board of Directors may
select.

     2.03 Registered Office; Registered Agent; Principal Office; Other Offices. The registered office
of the Company required by the Act to be maintained in the State of Delaware shall be the office of
the initial registered agent for service of process named in the Organizational Certificate or such
other office (which need not be a place of business of the Company) as the Board of Directors may
designate in the manner provided by Law. The registered agent for service of process of the
Company in the State of Delaware shall be the initial registered agent for service of process named
in the Organizational Certificate or such other Person or Persons as the Board of Directors may
designate in the manner provided by Law.The principal office of the Company in the United States shall
be at such a place as the Board of Directors may from time to time designate, which need not be in the
State of Delaware, and the Company shall maintain records there and shall keep the street address of
such principal office at the registered office of the Company in the State of Delaware. The Company
may have such other offices as the Board of Directors may designate.

2

 

     2.04 Purpose. The purposes of the Company are the transaction of any or all lawful business for
which limited liability companies may be organized under the Act.

     2.05 Term. The period of existence of the Company commenced on October 5, 2006 and shall end at
such time as a Certificate of Cancellation is filed in accordance with Section 13.02(c).

     2.06 No State-Law Partnership; Withdrawal. It is the intent that the Company shall be a limited
liability company formed under the Laws of the State of Delaware and shall not be a partnership
(including a limited partnership) or joint venture, and that the Members not be a partner or joint
venturer of any other party for any purposes other than federal and state tax purposes, and this
Agreement may not be construed to suggest otherwise. A Member does not have the right to Withdraw
from the Company; provided, however, that a Member shall have the power to Withdraw at any time in
violation of this Agreement. If a Member exercises such power in violation of this Agreement, (a)
such Member shall be liable to the Company and its Affiliates for all monetary damages suffered by
them as a result of such Withdrawal; and (b) such Member shall not have any rights under Section
18.604 of the Act. In no event shall the Company have the right, through specific performance or
otherwise, to prevent a Member from Withdrawing in violation of this Agreement.

ARTICLE 3

MATTERS RELATING TO MEMBERS

     3.01 Members.

          (a) EPD OLP has previously been admitted as a Member of the Company.

          (b) DEP OLP is admitted as a Member of the Company as of the date of this Agreement.

     3.02 Creation of Additional Membership Interest. The Company may issue additional Membership Interests in
the Company only in compliance with the provisions in Article 5 of the Omnibus Agreement. The Company shall be
bound by the terms of such Omnibus Agreement.

     3.03 Liability to Third Parties. No Member or beneficial owner of any Membership Interest shall be
liable for the Liabilities of the Company.

ARTICLE 4

CAPITAL CONTRIBUTIONS

     4.01 Capital Contributions.

          (a) The amount of money and the fair market value (as of the date of contribution) of any
property (other than money) contributed to the Company by a Member shall constitute a “Capital
Contribution.” Any reference in this Agreement to the Capital Contribution of a Member shall
include a Capital Contribution of its predecessors in interest.

3

 

          (b) EPD OLP is the assignee of its Membership Interests, and the Member or its predecessor in
interest has made certain Capital Contributions.

          (c)
DEP OLP is the assignee of its Membership Interests, and the Member or its
predecessor in interest has made certain Capital Contributions.

     4.02 Loans. If the Company does not have sufficient cash to pay its obligations, any Member that
may agree to do so may, upon approval by the Board of Directors, advance all or part of the needed
funds for such obligation to or on behalf of the Company. An advance described in this Section
4.02 constitutes a loan from the Member to the Company, shall bear interest at a rate comparable to
the rate the Company could obtain from third parties, from the date of the advance until the date
of repayment, and is not a Capital Contribution.

     4.03 Return of Contributions. A Member is not entitled to the return of any part of its Capital
Contributions or to be paid interest in respect of its Capital Contributions. An unrepaid Capital
Contribution is not a liability of the Company or of any Member. No Member will be required to
contribute or to lend any cash or property to the Company to enable the Company to return any
Member’s Capital Contributions.

     4.04 Capital Accounts. A capital account shall be established and maintained for each Member. Each
Member’s capital account (a) shall be increased by (i) the amount of money contributed by that
Member to the Company, (ii) the fair market value of property contributed by that Member to
the Company (net of liabilities secured by the contributed property that the Company is considered
to assume or take subject to under section 752 of the Code), and (iii) allocations to that Member
of Company income and gain (or items of income and gain), including income and gain exempt from tax
and income and gain described in Treas. Reg. § 1.704-1(b)(2)(iv)(g), but excluding income and gain
described in Treas. Reg. § 1.704-1(b)(4)(i), and (b) shall be decreased by (i) the amount of money
distributed to that Member by the Company, (ii) the fair market value of property distributed to
that Member by the Company (net of liabilities secured by the distributed property that the Member
is considered to assume or take subject to under section 752 of the Code), (iii) allocations to
that Member of expenditures of the Company described in section 705(a)(2)(B) of the Code, and (iv)
allocations of Company loss and deduction (or items of loss and deduction), including loss and
deduction described in Treas. Reg. § 1.704-1(b)(2)(iv)(g), but excluding items described in clause
(b)(iii) above and loss or deduction described in Treas. Reg. § 1.704-1(b)(4)(i) or §
1.704-1(b)(4)(iii). The Members’ capital accounts also shall be maintained and adjusted as
permitted by the provisions of Treas. Reg. § 1.704-1(b)(2)(iv)(f) and as required by the other
provisions of Treas. Reg. §§ 1.704-1(b)(2)(iv) and 1.704-1(b)(4), including adjustments to reflect
the allocations to the Members of depreciation, depletion, amortization, and gain or loss as
computed for book purposes rather than the allocation of the corresponding items as computed for
tax purposes, as required by Treas. Reg. § 1.704-1(b)(2)(iv)(g). A Member that has more than one
Membership Interest shall have a single capital account that reflects all its Membership Interests,
regardless of the class of Membership Interests owned by that Member and regardless of the time or
manner in which those Membership Interests were acquired.

4

 

ARTICLE 5

ALLOCATIONS AND DISTRIBUTIONS

     5.01 Allocations.

          (a) Except as otherwise set forth in Section 5.01(b), for purposes of maintaining the capital
accounts and in determining the rights of the Members among themselves, all items of income, gain,
loss, deduction, and credit of the Company shall be allocated among the Members in accordance with
their Sharing Ratios.

          (b) The following special allocations shall be made prior to making any allocations provided
for in 5.01(a) above:

                              (i) Minimum Gain Chargeback. Notwithstanding any other provision hereof to the contrary, if
there is a net decrease in Minimum Gain (as generally defined under Treas. Reg. § 1.704-1 or §
1.704-2) for a taxable year (or if there was a net decrease in Minimum Gain for a prior taxable
year and the Company did not have sufficient amounts of income and gain during prior years to
allocate among the Members under this subsection 5.01(b)(i), then items of income and gain shall be
allocated to each Member in an amount equal to such Member’s share of the net decrease in such
Minimum Gain (as determined pursuant to Treas. Reg. § 1.704-2(g)(2)). It is the intent of the
Members that any allocation pursuant to this
subsection 5.01(b)(i) shall constitute a “minimum gain chargeback” under Treas. Reg. §
1.704-2(f) and shall be interpreted consistently therewith.

                              (ii) Member Nonrecourse Debt Minimum Gain Chargeback. Notwithstanding any other provision of
this Article 5, except subsection 5.01(b)(i), if there is a net decrease in Member Nonrecourse Debt
Minimum Gain (as generally defined under Treas. Reg. § 1.704-1 or § 1.704-2), during any taxable
year, any Member who has a share of the Member Nonrecourse Debt Minimum Gain shall be allocated
such amount of income and gain for such year (and subsequent years, if necessary) determined in the
manner required by Treas. Reg. § 1.704-2(i)(4) as is necessary to meet the requirements for a
chargeback of Member Nonrecourse Debt Minimum Gain.

                              (iii) Qualified Income Offset. Except as provided in subsection 5.01(b)(i) and (ii) hereof,
in the event any Member unexpectedly receives any adjustments, allocations or distributions
described in Treas. Reg. Sections 1.704-1(b)(2)(i)(d)(4), 1.704-1(b)(2)(ii)(d)(5), or
1.704-1(b)(2)(ii)(d)(6), items of Company income and gain shall be specifically allocated to such
Member in an amount and manner sufficient to eliminate, to the extent required by the Allocation
Regulations, the deficit balance, if any, in its adjusted capital account created by such
adjustments, allocations or distributions as quickly as possible.

                              (iv) Gross Income Allocations. In the event any Member has a deficit balance in its adjusted
capital account at the end of any Company taxable period, such Member shall be specially allocated
items of Company gross income and gain in the amount of such excess as quickly as possible;
provided, that an allocation pursuant to this subsection 5.01(b)(iv) shall be made only if and to
the extent that such Member would have a deficit balance in its

5

 

adjusted capital account after all other allocations provided in this Section 5.01 have
been tentatively made as if subsection 5.01(b)(iv) were not in the Agreement.

                              (v) Company Nonrecourse Deductions. Company Nonrecourse Deductions (as determined under
Treas. Reg. Section 1.704-2(c)) for any fiscal year shall be allocated among the Members in
proportion to their Membership Interests.

                              (vi) Member Nonrecourse Deductions. Any Member Nonrecourse Deductions (as defined under
Treas. Reg. Section 1.704-2(i)(2)) shall be allocated pursuant to Treas. Reg. Section 1.704-2(i) to
the Member who bears the economic risk of loss with respect to the partner nonrecourse debt to
which it is attributable.

                              (vii) Code Section 754 Adjustment. To the extent an adjustment to the adjusted tax basis of
any Company asset pursuant to Section 734(b) or 743(b) of the Code is required, pursuant to the
Allocation Regulations, to be taken into account in determining capital accounts, the amount of
such adjustment to the capital accounts shall be treated as an item of gain (if the adjustment
increases the basis of the asset) or loss (if the adjustment decreases such basis), and such item
of gain or loss shall be specially allocated to the Members in a manner consistent with the manner
in which their capital accounts are required to be adjusted pursuant to the Allocation Regulations.

                              (viii) Curative Allocation. The special allocations set forth in subsections 5.01(b)(i)-(vi)
(the “Regulatory Allocations”) are intended to comply with the Allocation Regulations.
Notwithstanding any other provisions of this Section 5.01, the Regulatory Allocations shall be
taken into account in allocating items of income, gain, loss and deduction among the Members such
that, to the extent possible, the net amount of allocations of such items and the Regulatory
Allocations to each Member shall be equal to the net amount that would have been allocated to each
Member if the Regulatory Allocations had not occurred.

                              For federal income tax purposes, except as otherwise required by the Code, the Allocation
Regulations or the following sentence, each item of Company income, gain, loss, deduction and
credit shall be allocated among the Members in the same manner as corresponding items are allocated
in Section 5.01(a). Notwithstanding any provisions contained herein to the contrary, solely for
federal income tax purposes, items of income, gain, depreciation, gain or loss with respect to
property contributed or deemed contributed to the Company by a Member or whose value is adjusted
pursuant to the Allocation Regulations shall be allocated among the Members so as to take into
account the variation between the Company’s tax basis in such property and its Carrying Value in
the manner provided under section 704(c) of the Code and Treas. Reg. § 1.704-3(d) (i.e. the
“remedial method”).

     5.02 Distributions.

          (a) At least once each month prior to commencement of winding up under Section 13.01, the
Board of Directors shall determine in its reasonable judgment to what extent (if any) the
Company’s cash on hand exceeds its current and anticipated needs, including, without limitation,
for operating expenses, debt service, acquisitions, and a reasonable contingency reserve. If such
an excess exists, the Board of Directors shall cause the Company

6

 

to distribute to the Members, in accordance with their Sharing Ratios, an amount in cash equal
to that excess.

          (b) From time to time the Board of Directors also may cause property of the Company other
than cash to be distributed to the Members, which distribution must be made in accordance with
their Sharing Ratios and may be made subject to existing liabilities and obligations. Immediately
prior to such a distribution, the capital accounts of the Members shall be adjusted as provided in
Treas. Reg. § 1.704-1(b)(2)(iv)(f).

ARTICLE 6

RIGHTS AND OBLIGATIONS OF MEMBERS

     6.01 Limitation of Members’ Responsibility, Liability. The Members shall not perform any act on
behalf of the Company, incur any expense, obligation or indebtedness of any nature on behalf of the
Company, or in any manner participate in the management of the Company, except as specifically
contemplated hereunder. No Member shall be liable under a judgment, decree or order of a court, or
in any other manner, except as agreed to by any such Member, for the indebtedness or any other
obligations or liabilities of the Company or liable, responsible or accountable in damages to the
Company or its Members for breach of fiduciary duty as a Member, for any acts performed within the
scope of the authority conferred on it by this Agreement, or for its failure or refusal to perform
any acts except those expressly required by or pursuant to the terms of this Agreement, or for any
debt or loss in connection with the affairs of the Company, except as required by the Delaware Act.

     6.02 Return of Distributions. In accordance with Section 18-607 of the Delaware Act, a Member will
be obligated to return any distribution from the Company only as provided by applicable law.

     6.03 Priority and Return of Capital. Except as may be provided in this Agreement, no Member shall
have priority over any other Member, either as to the return of Capital Contributions or as to
profits, losses or distributions; provided that this Section shall not apply to loans (as
distinguished from Capital Contributions) that a Member has made to the Company.

     6.04 Competition. Except as otherwise expressly provided in this Agreement, each Member may engage
in or possess an interest in any other business venture or ventures, including any activity that is
competitive with the Company without offering any such opportunity to the Company, and neither the
Company nor the other Member shall have any rights in or to such venture or ventures or activity or
the income or profits derived therefrom.

     6.05 Admission of Additional Members. The Company shall not admit additional Members without the
prior written consent of all of the Members.

     6.06 Resignation. Without the prior approval of all other Members, no Member may resign from the
Company.

     6.07 Indemnification. To the extent permitted by law, the Company shall (to the extent of the
assets of the Company) indemnify, defend and hold harmless each Member and each officer, employee
and director of such Member from and against all losses, expenses,

7

 

claims or liabilities, including reasonable attorneys’ fees and disbursements, arising out of or in connection with the indebtedness
or any other obligation or liabilities of the Company, other than losses, expenses, claims or
liabilities of such indemnified Member which result from a violation in any material respect of any
of the provisions of this Agreement or fraud, willful misconduct, gross negligence or
misappropriation of funds. The foregoing indemnity expressly includes an indemnity with respect to
the negligence (excluding the gross negligence) of a Member.

ARTICLE 7

MEETINGS OF MEMBERS

     7.01 Meetings. Meetings of the Members, for any purpose or purposes, unless otherwise prescribed
by law, may be called by the Chairman of the Board of Directors or the President of the Company or
by any Member. The chairperson at any meeting shall be designated by the Chairman of the Board of
Directors or the President of the Company.

     7.02 Place of Meetings. Meetings of the Members shall be held at the principal place of business
of the Company or at such other place as may be designated by the Chairman of the Board of
Directors or the President of the Company.

     7.03 Notice of Meetings. Except as provided in Section 7.04, written notice stating the place, day
and hour of the meeting and the purpose or purposes for which the meeting is called shall be sent
not less than five days before the date of the meeting, either personally, by facsimile or by mail,
by or at the direction of the person calling the meeting, to each Member.

     7.04 Meeting of All Members. If all of the Members shall meet at any time and place and consent to
the holding of a meeting at such time and place, such meeting shall be valid without call or
notice, and at such meeting any lawful action may be taken.

     7.05 Action by Members Without a Meeting. Action required or permitted to be taken at a meeting of
Members may be taken without a meeting if the action is evidenced by one or more written consents
describing the action taken, signed by all Members and delivered to the Secretary or any Assistant
Secretary of the Company for inclusion in the minutes or for filing with the Company records.
Action taken under this Section is effective when all Members have signed the consent, unless the
consent specifies a different effective date.

     7.06 Waiver of Notice. When any notice is required to be given to any Member, a waiver thereof in
writing signed by the Person entitled to such notice, whether before, at or after the time stated
therein, shall be equivalent to the giving of such notice.

     7.07 Delegation to Board.Except as may be otherwise specifically provided in this Agreement
or the Delaware Act, the Members agree that they shall act solely through the mechanisms provided
herein relating to the appointment and authority of the Board of Directors.

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ARTICLE 8

MANAGEMENT

     8.01 Management by Board of Directors.

          (a) Generally. Subject to any powers reserved to the Members under this Agreement, the
business and affairs of the Company shall be fully vested in, and managed by, a Board of Directors
(the “Board”) and subject to the discretion of the Board, officers elected pursuant to this
Article 8. The Directors and officers shall collectively constitute “managers” of the Company
within the meaning of the Act. Except as otherwise provided in this Agreement, the authority and
functions of the Board, on the one hand, and of the officers, on the other hand, shall be
identical to the authority and functions of the board of directors and officers, respectively, of
a corporation organized under the General Corporation Law of the State of Delaware. The officers
shall be vested with such powers and duties as are set forth in this Article 8 and as are
specified by the Board. Accordingly, except as otherwise specifically provided in this Agreement,
the business and affairs of the Company shall be managed under the direction of the Board, and the
day-to-day activities of the Company shall be conducted on the Company’s behalf by the officers
who shall be agents of the Company.

          (b) Number; Qualification; Tenure. The number of Directors constituting the initial Board of
Directors shall be four. The number of Directors constituting the Board of Directors may be
increased or decreased from time to time by resolution of the Members. Except as provided in
Section 8.01(e) hereof, Directors shall be elected by the Members holding a plurality of the
Member Interests, and each Director so elected shall hold office for the full term to which he
shall have been elected and until his successor is duly elected and qualified, or until his
earlier death, resignation or removal. Any Director may resign at any time upon notice to the
Company. A Director need not be a Member of the Company or a resident of the State of Delaware.

          (c) Regular Meetings. Regular quarterly and annual meetings of the Board shall be held at
such time and place as shall be designated from time to time by resolution of the Board. Notice
of such regular quarterly and annual meetings shall not be required.

          (d) Special Meetings. Special meetings of the Board of Directors may be held at any time,
whenever called by the Chairman of the Board of Directors, the President of the Company or a
majority of Directors then in office, at such place or places within or without the State of
Delaware as may be stated in the notice of the meeting. Notice of the time and place of a special
meeting must be given by the person or persons calling such meeting at least twenty-four (24)
hours, before the special meeting. The attendance of a Director at any meeting shall constitute a
waiver of notice of such meeting, except where a Director attends a meeting for the sole purpose
of objecting to the transaction of any business because the
meeting is not lawfully called or convened. Neither the business to be transacted at, nor
the purpose of, any special meeting of the Board of Directors need be specified in the notice or
waiver of notice of such meeting.

          (e) Term; Resignation; Vacancies; Removal. Each Director shall hold office until his
successor is appointed and qualified or until his earlier resignation or removal.

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Any Director may resign at any time upon written notice to the Board, the Chairman of the Board, to the Chief
Executive Officer or to any other Officer. Such resignation shall take effect at the time
specified therein, and unless otherwise specified therein no acceptance of such resignation shall
be necessary to make it effective. Vacancies and newly created directorships resulting from any
increase in the authorized number of Directors or from any other cause shall be filled by an
affirmative vote of a majority of the remaining Directors then in office, though less than a
quorum, or by a sole remaining Director, and each Director so elected shall hold office for the
remainder of the full term in which the new directorship was created or the vacancy occurred and
until such Director’s successor is duly elected and qualified, or until his earlier death,
resignation or removal. Any Director may be removed, with or without cause, by a majority of the
Members at any time, and the vacancy in the Board caused by any such removal shall be filled by a
majority of the Members.

                    (f) Quorum; Required Vote for Action. Except as may be otherwise specifically provided by
law or this Agreement, at all meetings of the Board of Directors a majority of the whole Board of
Directors shall constitute a quorum for the transaction of business. The vote of a majority of
the Directors present at any meeting of the Board of Directors at which there is a quorum shall be
the act of the Board of Directors. If a quorum shall not be present at any meeting of the Board
of Directors, the Directors present thereat may adjourn the meeting from time to time, without
notice other than announcement at the meeting, until a quorum shall be present.

                    (g) Committees. The Board of Directors may, by resolution passed by a majority of the whole
Board of Directors, designate one or more committees, each committee to consist of one or more of
the Directors of the Company. The Board of Directors may designate one or more Directors as
alternate members of any committee, who may replace any absent or disqualified member at any
meeting of the committee. In the absence or disqualification of a member of a committee, and in
the absence of a designation by the Board of Directors of an alternate member to replace the
absent or disqualified member, the member or members thereof present at any meeting and not
disqualified from voting, whether or not he, she or they constitute a quorum, may unanimously
appoint another member of the Board of Directors to act at the meeting in place of any absent or
disqualified member. Any committee, to the extent provided in the resolution of the Board of
Directors establishing such committee, shall have and may exercise all the powers and authority of
the Board of Directors in the management of the business and affairs of the Company, and may
authorize the seal of the Company to be affixed to all papers which may require it. Each
committee shall keep regular minutes and report to the Board of Directors when required.

     The designation of any such committee and the delegation thereto of authority shall not
operate to relieve the Board of Directors, or any member thereof, of any responsibility imposed
upon it or him by law, nor shall such committee function where action of the Board of Directors
is required under applicable law. The Board of Directors shall have the power at any time to
change the membership of any such committee and to fill vacancies in it. A majority of the members
of any such committee shall constitute a quorum. Each such committee may elect a chairman and
appoint such subcommittees and assistants as it may deem necessary. Except as otherwise provided
by the Board of Directors, meetings of any committee shall be conducted in the same manner as the
Board of Directors conducts its business pursuant to this Agreement, as

10

 

the same shall from time to time be amended. Any member of any such committee elected or appointed
by the Board of Directors may be removed by the Board of Directors whenever in its judgment the best
interests of the Company will be served thereby, but such removal shall be without prejudice to the
contract rights, if any, of the person so removed. Election or appointment of a member of a committee
shall not of itself create contract rights.

     8.02 Officers.

          (a) Generally. The officers of the Company shall be appointed by the Board of Directors.
Unless provided otherwise by resolution of the Board of Directors, the Officers shall have the
titles, power, authority and duties described below in this Section 8.02.

          (b) Titles and Number. The Officers of the Company shall be the Chairman of the Board
(unless the Board of Directors provides otherwise), the Chief Executive Officer, the President,
any and all Vice Presidents (including any Vice Presidents who may be designated as Executive Vice
President or Senior Vice President), the Secretary, the Chief Financial Officer, any Treasurer and
any and all Assistant Secretaries and Assistant Treasurers and the General Counsel. There shall
be appointed from time to time such Vice Presidents, Secretaries, Assistant Secretaries,
Treasurers and Assistant Treasurers as the Board of Directors may desire. Any person may hold
more than one office.

          (c) Appointment and Term of Office. The Officers shall be appointed by the Board of
Directors at such time and for such term as the Board of Directors shall determine. Any Officer
may be removed, with or without cause, only by the Board of Directors. Vacancies in any office
may be filled only by the Board of Directors.

          (d) Chairman of the Board. The Chairman of the Board shall preside at all meetings of the
Board of Directors and he shall be a non-executive unless and until other executive powers and
duties are assigned to him from time to time by the Board of Directors.

          (e) Chief Executive Officer. Subject to the limitations imposed by this Agreement, any
employment agreement, any employee plan or any determination of the Board of Directors, the Chief
Executive Officer, subject to the direction of the Board of Directors, shall be the chief
executive officer of the Company and shall be responsible for the management and direction of the
day-to-day business and affairs of the Company, its other Officers, employees and agents, shall
supervise generally the affairs of the Company and shall have full authority to execute all
documents and take all actions that the Company may legally take. In the absence of the Chairman
of the Board, the Chief Executive Officer shall preside at all meetings (should he be a director)
of the Board of Directors. The Chief Executive Officer shall exercise such other powers and perform
such other duties as may be assigned to him by this Agreement or the Board of Directors, including any
duties and powers stated in any employment agreement approved by the Board of Directors.

          (f) President. Subject to the limitations imposed by this Agreement, any employment
agreement, any employee plan or any determination of the Board of Directors, the President,
subject to the direction of the Board of Directors, shall be the chief executive officer of the
Company in the absence of a Chief Executive Officer and shall be responsible for the

11

 

management and direction of the day-to-day business and affairs of the Company, its other Officers,
employees and agents, shall supervise generally the affairs of the Company and shall have full authority to
execute all documents and take all actions that the Company may legally take. The President shall
preside at all meetings of the Members and, in the absence of the Chairman of the Board and a
Chief Executive Officer, the President shall preside at all meetings (should he be a director) of
the Board of Directors. The President shall exercise such other powers and perform such other
duties as may be assigned to him by this Agreement or the Board of Directors, including any duties
and powers stated in any employment agreement approved by the Board of Directors.

          (g) Vice Presidents. In the absence of a Chief Executive Officer and the President, each
Vice President (including any Vice Presidents designated as Executive Vice President or Senior
Vice President) appointed by the Board of Directors shall have all of the powers and duties
conferred upon the President, including the same power as the President to execute documents on
behalf of the Company. Each such Vice President shall perform such other duties and may exercise
such other powers as may from time to time be assigned to him by the Board of Directors or the
President.

          (h) Secretary and Assistant Secretaries. The Secretary shall record or cause to be recorded
in books provided for that purpose the minutes of the meetings or actions of the Board of
Directors, shall see that all notices are duly given in accordance with the provisions of this
Agreement and as required by law, shall be custodian of all records (other than financial), shall
see that the books, reports, statements, certificates and all other documents and records required
by law are properly kept and filed, and, in general, shall perform all duties incident to the
office of Secretary and such other duties as may, from time to time, be assigned to him by this
Agreement, the Board of Directors or the President. The Assistant Secretaries shall exercise the
powers of the Secretary during that Officer’s absence or inability or refusal to act.

          (i) Chief Financial Officer. The Chief Financial Officer shall keep and maintain, or cause
to be kept and maintained, adequate and correct books and records of account of the Company. He
shall receive and deposit all moneys and other valuables belonging to the Company in the name and
to the credit of the Company and shall disburse the same and only in such manner as the Board of
Directors or the appropriate Officer of the Company may from time to time determine. He shall
render to the Board of Directors and the Chief Executive Officer, whenever any of them request it,
an account of all his transactions as Chief Financial Officer and of the financial condition of
the Company, and shall perform such further duties as the Board of Directors or the Chief
Executive Officer may require. The Chief Financial Officer shall have the same power as the Chief
Executive Officer to execute documents on behalf of the Company.

          (j) Treasurer and Assistant Treasurers. The Treasurer shall have such duties as may be
specified by the Chief Financial Officer in the performance of his duties. The Assistant
Treasurers shall exercise the power of the Treasurer during that Officer’s absence or inability or
refusal to act. Each of the Assistant Treasurers shall possess the same power as the Treasurer to
sign all certificates, contracts, obligations and other instruments of the Company. If no
Treasurer or Assistant Treasurer is appointed and serving or in the absence of the appointed
Treasurer and Assistant Treasurer, the Senior Vice President, or such other Officer

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of Directors shall select, shall have the powers and duties conferred upon the Treasurer.

          (k) General Counsel. The General Counsel subject to the discretion of the Board of
Directors, shall be responsible for the management and direction of the day-to-day legal affairs
of the Company. The General Counsel shall perform such other duties and may exercise such other
powers as may from time to time be assigned to him by the Board of Directors or the President.

          (l) Powers of Attorney. The Company may grant powers of attorney or other authority as
appropriate to establish and evidence the authority of the Officers and other persons.

          (m) Delegation of Authority. Unless otherwise provided by resolution of the Board of
Directors, no Officer shall have the power or authority to delegate to any person such Officer’s
rights and powers as an Officer to manage the business and affairs of the Company.

          (n) Officers. The Board of Directors shall appoint Officers of the Company to serve from the
date of such appointment until the death, resignation or removal by the Board of Directors with or
without cause of such officer.

     8.03 Duties of Officers and Directors. Except as otherwise specifically provided in this
Agreement, the duties and obligations owed to the Company and to the Board of Directors by the
Officers of the Company and by members of the Board of Directors of the Company shall be the same
as the respective duties and obligations owed to a corporation organized under the Delaware General
Corporation Law by its officers and directors, respectively.

     8.04 Compensation. The members of the Board of Directors who are neither Officers nor employees of
the Company shall be entitled to compensation as directors and committee members as approved by the
Board and shall be reimbursed for out-of-pocket expenses incurred in connection with attending
meetings of the Board of Directors or committees thereof.

     8.05 Indemnification.

          (a) To the fullest extent permitted by Law but subject to the limitations expressly provided
in this Agreement, each Indemnitee (as defined below) shall be indemnified and held harmless by
the Company from and against any and all losses, claims, damages, liabilities (joint or several),
expenses (including reasonable legal fees and expenses), judgments, fines, penalties, interest,
settlements and other amounts arising from any and all claims, demands, actions, suits or
proceedings, whether civil, criminal, administrative or investigative, in which any such person
may be involved, or is threatened to be involved, as a party or otherwise, by reason of such
person’s status as (i) a present or former member of the Board of Directors or any committee
thereof, (ii) a present or former Member, (iii) a present or former Officer, or (iv) a Person
serving at the request of the Company in another entity in a similar capacity as that referred to
in the immediately preceding clauses (i) or (iii), provided, that the Person described in the
immediately preceding clauses (i), (ii), (iii) or (iv) (“Indemnitee”) shall not be indemnified and
held harmless if there has been a final and non-appealable judgment entered by a court of
competent jurisdiction determining that, in respect

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of the matter for which the Indemnitee is
seeking indemnification pursuant to this Section 8.05, the Indemnitee acted in bad faith or
engaged in fraud, willful misconduct or, in the case of a criminal matter, acted with knowledge
that the Indemnitee’s conduct was unlawful. Any indemnification pursuant to this Section 8.05
shall be made only out of the assets of the Company.

          (b) To the fullest extent permitted by law, expenses (including reasonable legal fees and
expenses) incurred by an Indemnitee who is indemnified pursuant to Section 8.05(a) in defending
any claim, demand, action, suit or proceeding shall, from time to time, be advanced by the Company
prior to the final disposition of such claim, demand, action, suit or proceeding upon receipt by
the Company of an undertaking by or on behalf of the Indemnitee to repay such amount if it shall
be determined that the Indemnitee is not entitled to be indemnified as authorized in this Section
8.05.

          (c) The indemnification provided by this Section 8.05 shall be in addition to any other
rights to which an Indemnitee may be entitled under any agreement, as a matter of law or
otherwise, both as to actions in the Indemnitee’s capacity as an Indemnitee and as to actions in
any other capacity, and shall continue as to an Indemnitee who has ceased to serve in such
capacity.

          (d) The Company may purchase and maintain insurance, on behalf of the members of the Board of
Directors, the Officers and such other persons as the Board of Directors shall determine, against
any liability that may be asserted against or expense that may be incurred by such person in
connection with the Company’s activities, regardless of whether the Company would have the power
to indemnify such person against such liability under the provisions of this Agreement.

          (e) For purposes of this Section 8.05, the Company shall be deemed to have requested an
Indemnitee to serve as fiduciary of an employee benefit plan whenever the performance by the
Indemnitee of such Indemnitee’s duties to the Company also imposes duties on, or otherwise
involves services by, the Indemnitee to the plan or participants or beneficiaries of the plan;
excise taxes assessed on an Indemnitee with respect to an employee benefit plan pursuant to
applicable law shall constitute “fines” within the meaning of Section
8.05(a); and action taken or omitted by the Indemnitee with respect to an employee benefit
plan in the performance of such Indemnitee’s duties for a purpose reasonably believed by such
Indemnitee to be in the interest of the participants and beneficiaries of the plan shall be deemed
to be for a purpose which is in, or not opposed to, the best interests of the Company.

          (f) In no event may an Indemnitee subject any Members of the Company to personal liability by
reason of the indemnification provisions of this Agreement.

          (g) An Indemnitee shall not be denied indemnification in whole or in part under this Section
8.05 because the Indemnitee had an interest in the transaction with respect to which the
indemnification applies if the transaction was otherwise permitted by the terms of this Agreement.

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          (h) The provisions of this Section 8.05 are for the benefit of the Indemnitees, their heirs,
successors, assigns and administrators and shall not be deemed to create any rights for the
benefit of any other Persons.

          (i) No amendment, modification or repeal of this Section 8.05 or any provision hereof shall
in any manner terminate, reduce or impair either the right of any past, present or future
Indemnitee to be indemnified by the Company or the obligation of the Company to indemnify any such
Indemnitee under and in accordance with the provisions of this Section 8.05 as in effect
immediately prior to such amendment, modification or repeal with respect to claims arising from or
relating to matters occurring, in whole or in part, prior to such amendment, modification or
repeal, regardless of when such claims may arise or be asserted, and such Person became an
Indemnitee hereunder prior to such amendment, modification or repeal.

          (j) THE PROVISIONS OF THE INDEMNIFICATION PROVIDED IN THIS SECTION 8.05 ARE INTENDED BY THE
PARTIES TO APPLY EVEN IF SUCH PROVISIONS HAVE THE EFFECT OF EXCULPATING THE INDEMNITEE FROM LEGAL
RESPONSIBILITY FOR THE CONSEQUENCES OF SUCH PERSON’S NEGLIGENCE, FAULT OR OTHER CONDUCT.

     8.06 Liability of Indemnitees.

          (a) Notwithstanding anything to the contrary set forth in this Agreement, no Indemnitee shall
be liable for monetary damages to the Company, the Members or any other Person for losses
sustained or liabilities incurred as a result of any act or omission of an Indemnitee unless there
has been a final and non-appealable judgment entered in a court of competent jurisdiction
determining that, in respect of the matter in question, the Indemnitee acted in bad faith or
engaged in fraud, willful misconduct or, in the case of a criminal matter, acted with knowledge
that the Indemnitee’s conduct was criminal.

     (b) Subject to its obligations and duties as set forth in this Article 8, the Board of
Directors and any committee thereof may exercise any of the powers granted to it by this Agreement
and perform any of the duties imposed upon it hereunder either directly or by

     or through the Company’s Officers or agents, and neither the Board of Directors nor any
committee thereof shall be responsible for any misconduct or negligence on the part of any such
Officer or agent appointed by the Board of Directors or any committee thereof in good faith.

     (c) Any amendment, modification or repeal of this Section 8.06 or any provision hereof shall
be prospective only and shall not in any way affect the limitations on liability under this
Section 8.06 as in effect immediately prior to such amendment, modification or repeal with respect
to claims arising from or relating to matters occurring, in whole or in part, prior to such
amendment, modification or repeal, regardless of when such claims may be asserted.

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ARTICLE 9

ACCOUNTING METHOD, PERIOD, RECORDS AND REPORTS

     9.01 Accounting Method. The books and records of account of the Company shall be maintained in
accordance with the accrual method of accounting.

     9.02 Accounting Period. The Company’s accounting period shall be the Fiscal Year.

     9.03 Records, Audits and Reports. At the expense of the Company, the Board of Directors shall
maintain books and records of account of all operations and expenditures of the Company.

     9.04 Inspection. The books and records of account of the Company shall be maintained at the
principal place of business of the Company or such other location as shall be determined by the
Board of Directors and shall be open to inspection by the Members at all reasonable times during
any business day.

ARTICLE 10

TAX MATTERS

     10.01 Tax Returns. The Board shall cause to be prepared and filed all necessary federal and state
income tax returns for the Company, including making the elections described in Section 10.02. Each
Member shall furnish to the Board all pertinent information in its possession relating to Company
operations that is necessary to enable the Company’s income tax returns to be prepared and filed.

     10.02 Tax Elections. The Company shall make the following elections on the appropriate tax returns:

          (a) to adopt a fiscal year ending on December 31 of each year;

          (b) to adopt the accrual method of accounting and to keep the Company’s books and records on
the income-tax method;

          (c) to adjust the basis of Company properties pursuant to section 754 of the Code; and

          (d) any other election the Board may deem appropriate and in the best interests of the
Members.

Neither the Company nor any Member may make an election for the Company to be excluded from the
application of the provisions of subchapter K of chapter 1 of subtitle A of the Code or any similar
provisions of applicable state law.

     10.03 Tax Matters Partner. DEP OLP shall be the “tax matters partner” of the Company pursuant to
section 6231(a)(7) of the Code. Tax matters partner shall take such action as may be necessary to
cause each Member to become a “notice partner” within the meaning of section 6223 of the Code. The
tax matters partner shall inform each Member of all significant

16

 

matters that may come to its attention in its capacity as tax matters partner by giving notice on or before the fifth Business
Day after becoming aware of the matter and, within that time, shall forward to each Member copies
of all significant written communications it may receive in that capacity.

ARTICLE 11

RESTRICTIONS ON TRANSFERABILITY

     11.01 Transfer Restrictions. Except as set forth in Article 4 of the Omnibus Agreement, no Member
shall be permitted to sell, assign, transfer or otherwise dispose of, or mortgage, hypothecate or
otherwise encumber, or permit or suffer any encumbrance of, all or any portion of its Member
Interest without the prior written consent of all other Members (which consent may be withheld in
the sole discretion of such Members).

ARTICLE 12

BOOKS, RECORDS, REPORTS, AND BANK ACCOUNTS

     12.01 Maintenance of Books.

          (a) The Board of Directors shall keep or cause to be kept at the principal office of the
Company or at such other location approved by the Board of Directors complete and accurate books
and records of the Company, supporting documentation of the transactions with respect to the
conduct of the Company’s business and minutes of the proceedings of the Board of Directors and any
other books and records that are required to be maintained by applicable Law.

          (b) The books of account of the Company shall be maintained on the basis of a fiscal year
that is the calendar year and on an accrual basis in accordance with generally accepted accounting
principles, consistently applied, except that the capital accounts of the Members shall be
maintained in accordance with Section 4.04.

     12.02 Reports. The Board of Directors shall cause to be prepared and delivered to each Member such
reports, forecasts, studies, budgets and other information as the Members may reasonably request
from time to time.

     12.03 Bank Accounts. Funds of the Company shall be deposited in such banks or other depositories as
shall be designated from time to time by the Board of Directors. All withdrawals from any such
depository shall be made only as authorized by the Board of Directors and shall be made only by
check, wire transfer, debit memorandum or other written instruction.

     12.04 Tax Statements. The Company shall use reasonable efforts to furnish, within 90 Days of the
close of each taxable year of the Company, estimated tax information reasonably required by the
Members for federal and state income tax reporting purposes.

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ARTICLE 13

DISSOLUTION, WINDING-UP AND TERMINATION

     13.01 Dissolution.

          (a) The Company shall dissolve and its affairs shall be wound up on the first to occur of the
following events (each a “Dissolution Event”):

                              (i) the unanimous consent of the Members in writing;

                              (ii) the entry of a decree of judicial dissolution of the Company under Section 18-802 of the
Act;

                              (iii) at any time there are no Members of the Company, unless the Company is continued in
accordance with the Act or this Agreement.

          (b) No other event shall cause a dissolution of the Company.

          (c) Upon the occurrence of any event that causes there to be no Members of the Company, to
the fullest extent permitted by law, the personal representative of the last remaining Member is
hereby authorized to, and shall, within 90 days after the occurrence of the event that terminated
the continued membership of such Member in the Company, agree in writing (i) to continue the
Company and (ii) to the admission of the personal representative or its nominee or designee, as
the case may be, as a substitute Member of the Company, effective as of the occurrence of the
event that terminated the continued membership of such Member in the Company.

          (d) Notwithstanding any other provision of this Agreement, the Bankruptcy of a Member shall
not cause such Member to cease to be a member of the Company and, upon the occurrence of such an
event, the Company shall continue without dissolution.

     13.02 Winding-Up and Termination.

          (a) On the occurrence of a Dissolution Event, the Board of Directors shall select one or more
Persons to act as liquidator. The liquidator shall proceed diligently to wind up the affairs of
the Company and make final distributions as provided herein and in the Act. The costs of winding
up shall be borne as a Company expense. Until final distribution, the liquidator shall continue
to operate the Company properties with all of the power and authority of the Board of Directors.
The steps to be accomplished by the liquidator are as follows:

                              (i) as promptly as possible after dissolution and again after final winding up, the liquidator
shall cause a proper accounting to be made by a recognized firm of certified public accountants of
the Company’s assets, liabilities, and operations through the last calendar day of the month in
which the dissolution occurs or the final winding up is completed, as applicable;

                              (ii) the liquidator shall discharge from Company funds all of the debts, liabilities and
obligations of the Company or otherwise make adequate provision for payment

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and discharge thereof (including the establishment of a cash escrow fund for contingent liabilities in such amount and
for such term as the liquidator may reasonably determine); and

                              (iii) all remaining assets of the Company shall be distributed to the Members as follows:

                                        (A) the liquidator may sell any or all Company property, including to Members, and any
resulting gain or loss from each sale shall be computed and allocated to the capital accounts of
the Members;

                                        (B) with respect to all Company property that has not been sold, the fair market value of that
property shall be determined and the capital accounts of the Members shall be adjusted to reflect
the manner in which the unrealized income, gain, loss, and deduction inherent in property that has
not been reflected in the capital accounts previously would be allocated among the Members if there
were a taxable disposition of that property for the fair market value of that property on the date of
distribution; and

                                        (C) Company property shall be distributed among the Members in accordance with the positive
capital account balances of the Members, as determined after taking into account all capital
account adjustments for the taxable year of the Company during which the liquidation of the Company
occurs (other than those made by reason of this clause (iii)); and those distributions shall be
made by the end of the taxable year of the Company during which the liquidation of the Company
occurs (or, if later, 90 days after the date of the liquidation).

                    (b) The distribution of cash or property to a Member in accordance with the provisions of
this Section 13.02 constitutes a complete return to the Member of its Capital Contributions and a
complete distribution to the Member of its share of all the Company’s property and constitutes a
compromise to which all Members have consented within the meaning of Section 18-502(b) of the Act.
No Member shall be required to make any Capital Contribution to the Company to enable the Company
to make the distributions described in this Section 13.02.

                    (c) On completion of such final distribution, the liquidator shall file a Certificate of
Cancellation with the Secretary of State of the State of Delaware and take such other actions as
may be necessary to terminate the existence of the Company.

ARTICLE 14

MERGER

     14.01 Authority. The Company may merge or consolidate with one or more limited liability companies,
corporations, business trusts or associations, real estate investment trusts, common law trusts or
unincorporated businesses, including a general partnership or limited partnership, formed under the
laws of the State of Delaware or any other jurisdiction, pursuant to a written agreement of merger
or consolidation (“Merger Agreement”) in accordance with this Article 14.

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     14.02 Procedure for Merger or Consolidation. The merger or consolidation of the Company pursuant to
this Article 14 requires the prior approval of a majority the Board of Directors and compliance
with Section 14.03. Upon such approval, the Merger Agreement shall set forth:

          (a) The names and jurisdictions of formation or organization of each of the business entities
proposing to merge or consolidate;

                    (b) The name and jurisdiction of formation or organization of the business entity that is to
survive the proposed merger or consolidation (“Surviving Business Entity”);

          (c) The terms and conditions of the proposed merger or consolidation;

                    (d) The manner and basis of exchanging or converting the equity securities of each
constituent business entity for, or into, cash, property or general or limited partnership or
limited liability company interests, rights, securities or obligations of the Surviving Business
Entity; and (i) if any general or limited partnership or limited liability company interests,
rights, securities or obligations of any constituent business entity are not to be exchanged or
converted solely for, or into, cash, property or general or limited partnership or limited
liability company interests, rights, securities or obligations of the Surviving Business Entity,
the cash, property or general or limited partnership or limited liability company interests,
rights, securities or obligations of any general or limited partnership, limited liability
company, corporation, trust or other entity (other than the Surviving Business Entity) which the
holders of such interests, rights, securities or obligations of the constituent business entity
are to receive in exchange for, or upon conversion of, their interests, rights, securities or
obligations and (ii) in the case of securities represented by certificates, upon the surrender of
such certificates, which cash, property or general or limited partnership or limited liability
company interests, rights, securities or obligations of the Surviving Business Entity or any
general or limited partnership, limited liability company, corporation, trust or other entity
(other than the Surviving Business Entity), or evidences thereof, are to be delivered;

                    (e) A statement of any changes in the constituent documents or the adoption of new
constituent documents (the articles or certificate of incorporation, articles of trust,
declaration of trust, certificate or agreement of limited partnership or limited liability company
or other similar charter or governing document) of the Surviving Business Entity to be effected by
such merger or consolidation;

                    (f) The effective time of the merger or consolidation, which may be the date of the filing of
the certificate of merger pursuant to Section 14.04 or a later date specified in or determinable
in accordance with the Merger Agreement (provided, that if the effective time of the merger or
consolidation is to be later than the date of the filing of the certificate of merger or
consolidation, the effective time shall be fixed no later than the time of the filing of the
certificate of merger or consolidation and stated therein); and

                    (g) Such other provisions with respect to the proposed merger or consolidation as are deemed
necessary or appropriate by the Board of Directors.

20

 

     14.03 Approval by Members of Merger or Consolidation.

                    (a) The Board of Directors, upon its approval of the Merger Agreement, shall direct that the
Merger Agreement be submitted to a vote of the Members, whether at a meeting or by written
consent. A copy or a summary of the Merger Agreement shall be included in or enclosed with the
notice of a meeting or the written consent.

                    (b) After approval by vote or consent of the Members, and at any time prior to the filing of
the certificate of merger or consolidation pursuant to Section 14.04, the merger or consolidation
may be abandoned pursuant to provisions therefor, if any, set forth in the Merger Agreement.

     14.03 Certificate of Merger or Consolidation. Upon the required approval by the Board of Directors
and the Members of a Merger Agreement, a certificate of merger or consolidation shall be executed
and filed with the Secretary of State of the State of Delaware in conformity with the requirements
of the Act.

     14.04 Effect of Merger or Consolidation.

          (a) At the effective time of the certificate of merger or consolidation:

                              (i) all of the rights, privileges and powers of each of the business entities that has merged
or consolidated, and all property, real, personal and mixed, and all debts due to any of those
business entities and all other things and causes of action belonging to each of those business
entities shall be vested in the Surviving Business Entity and after the merger or consolidation
shall be the property of the Surviving Business Entity to the extent they were property of each
constituent business entity;

                              (ii) the title to any real property vested by deed or otherwise in any of those constituent
business entities shall not revert and is not in any way impaired because of the merger or
consolidation;

                              (iii) all rights of creditors and all liens on or security interest in property of any of
those constituent business entities shall be preserved unimpaired; and

                              (iv) all debts, liabilities and duties of those constituent business entities shall attach to
the Surviving Business Entity, and may be enforced against it to the same extent as if the debts,
liabilities and duties had been incurred or contracted by it.

                    (b) A merger or consolidation effected pursuant to this Article 14 shall not (i) be deemed to
result in a transfer or assignment of assets or liabilities from one entity to another having
occurred or (ii) require the Company (if it is not the Surviving Business Entity) to wind up its
affairs, pay its liabilities or distribute its assets as required under Article 13 of this
Agreement or under the applicable provisions of the Act.

21

 

ARTICLE 15

GENERAL PROVISIONS

     15.01 Notices. Except as expressly set forth to the contrary in this Agreement, all notices,
requests or consents provided for or permitted to be given under this Agreement must be in writing
and must be delivered to the recipient in person, by courier or mail or by facsimile or other
electronic transmission and a notice, request or consent given under this Agreement is effective on
receipt by the Person to receive it; provided, however, that a facsimile or other electronic
transmission that is transmitted after the normal business hours of the recipient shall be deemed
effective on the next Business Day. All notices, requests and consents to be sent to a Member must
be sent to or made at the addresses given for that Member as that Member may specify by notice to the
other Members. Any notice, request or consent to the Company must be given to all of the Members.
Whenever any notice is required to be given by applicable Law, the Organizational Certificate or
this Agreement, a written waiver thereof, signed by the Person entitled to notice, whether before
or after the time stated therein, shall be deemed equivalent to the giving of such notice.
Whenever any notice is required to be given by Law, the Organizational Certificate or this
Agreement, a written waiver thereof, signed by the Person entitled to notice, whether before or
after the time stated therein, shall be deemed equivalent to the giving of such notice.

     15.02 Entire Agreement; Supersedure. This Agreement constitutes the entire agreement of the Members
and their respective Affiliates relating to the subject matter hereof and supersedes all prior
contracts or agreements with respect to such subject matter, whether oral or written.

     15.03 Effect of Waiver or Consent. Except as provided in this Agreement, a waiver or consent,
express or implied, to or of any breach or default by any Person in the performance by that Person
of its obligations with respect to the Company is not a consent or waiver to or of any other breach
or default in the performance by that Person of the same or any other obligations of that Person
with respect to the Company. Except as provided in this Agreement, failure on the part of a Person
to complain of any act of any Person or to declare any Person in default with respect to the
Company, irrespective of how long that failure continues, does not constitute a waiver by that
Person of its rights with respect to that default until the applicable statute-of-limitations
period has run.

     15.04 Amendment or Restatement. This Agreement may be amended or restated only by a written
instrument executed by all Members.

     15.05 Binding Effect. This Agreement is binding on and shall inure to the benefit of the Members
and their respective heirs, legal representatives, successors and assigns.

     15.06 Governing Law; Severability. THIS AGREEMENT IS GOVERNED BY AND SHALL BE CONSTRUED IN
ACCORDANCE WITH THE LAW OF THE STATE OF DELAWARE, EXCLUDING ANY CONFLICT-OF-LAWS RULE OR PRINCIPLE
THAT MIGHT REFER THE GOVERNANCE OR THE CONSTRUCTION OF THIS AGREEMENT TO THE LAW OF ANOTHER
JURISDICTION. In the event of a direct conflict between the provisions of this Agreement and (a)
any provision of the Organizational Certificate, or (b) any

22

 

mandatory, non-waivable provision of the Act, such provision of the Organizational Certificate or the Act shall control. If any
provision of the Act provides that it may be varied or superseded in the limited liability company
agreement (or otherwise by agreement of the members or managers of a limited liability company),
such provision shall be deemed superseded and waived in its entirety if this
Agreement contains a provision addressing the same issue or subject matter. If any provision
of this Agreement or the application thereof to any Person or circumstance is held invalid or
unenforceable to any extent, (a) the remainder of this Agreement and the application of that
provision to other Persons or circumstances is not affected thereby and that provision shall be
enforced to the greatest extent permitted by Law, and (b) the Members or Directors (as the case may
be) shall negotiate in good faith to replace that provision with a new provision that is valid and
enforceable and that puts the Members in substantially the same economic, business and legal
position as they would have been in if the original provision had been valid and enforceable.

     15.07 Further Assurances. In connection with this Agreement and the transactions contemplated
hereby, each Member shall execute and deliver any additional documents and instruments and perform
any additional acts that may be necessary or appropriate to effectuate and perform the provisions
of this Agreement and those transactions.

     15.08 Offset. Whenever the Company is to pay any sum to any Member, any amounts that a Member owes
the Company may be deducted from that sum before payment.

     15.09 Counterparts. This Agreement may be executed in any number of counterparts with the same
effect as if all signing parties had signed the same document. All counterparts shall be construed
together and constitute the same instrument.

     15.10 Execution of Additional Instruments. Each Member hereby agrees to execute such other and
further statements of interest and holdings, designations, powers of attorney and other instruments
necessary to comply with any laws, rules or regulations.

     15.11 Severability. If any provision of this Agreement or the application thereof to any person or
circumstance shall be invalid, illegal or unenforceable to any extent, the remainder of this
Agreement and the application thereof shall not be affected and shall be enforceable to the fullest
extent permitted by law.

     15.12 Headings. The headings in this Agreement are inserted for convenience only and are in no way
intended to describe, interpret, define or limit the scope, extent or intent of this Agreement or
any provision hereof.

[Signature Page Follows]

23

 

     IN WITNESS WHEREOF, the Members have executed this Agreement as of the date first set forth
above.

	 	 	 	 	 	 	 	 	 
	 	 	MEMBERS:	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	DEP OPERATING PARTNERSHIP, L.P.	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:
	 	DEP OLPGP, LLC,	 	 
	 

	 	 	 	its general partner 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	/s/ Michael A. Creel 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	Michael A. Creel	 	 
	 	 	 	 	Executive Vice
President and Chief Financial Officer	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	ENTERPRISE PRODUCTS OPERATING L.P.	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	Enterprise Products OLPGP, Inc., 	 	 
	 

	 	 	 	its general partner	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	/s/ Richard H. Bachmann 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	Richard H. Bachmann	 	 
	 	 	 	 	Executive Vice
President, Chief Legal Officer and Secretary	 	 

24

 

Attachment I

Defined Terms

     Act — the Delaware Limited Liability Company Act and any successor statute, as amended from
time to time.

     Affiliate — with respect to any Person, each Person Controlling, Controlled by or under
common Control with such first Person.

     Agreement — this Amended and Restated Limited Liability Company Agreement of the Company, as
the same may be amended, modified, supplemented or restated from time to time.

     Allocation Regulations — means Treas. Reg. §§ 1.704-1(b), 1.704-2 and 1.704-3 (including any
temporary regulations) as such regulations may be amended and in effect from time to time and any
corresponding provision of succeeding regulations.

     Asset Contribution Agreement —  Recitals.

     Bankruptcy or Bankrupt — with respect to any Person, that (a) such Person (i) makes an
assignment for the benefit of creditors; (ii) files a voluntary petition in bankruptcy; (iii) is
insolvent, or has entered against such Person an order for relief in any bankruptcy or insolvency
proceeding; (iv) files a petition or answer seeking for such Person any reorganization,
arrangement, composition, readjustment, liquidation, dissolution or similar relief under any Law;
(v) files an answer or other pleading admitting or failing to contest the material allegations of a
petition filed against such Person in a proceeding of the type described in subclauses (i) through
(iv) of this clause (a); or (vi) seeks, consents to or acquiesces in the appointment of a trustee,
receiver or liquidator of such Person or of all or any substantial part of such Person’s
properties; or (b) 120 Days have passed after the commencement of any proceeding seeking
reorganization, arrangement, composition, readjustment, liquidation, dissolution or similar relief
under any Law, if the proceeding has not been dismissed, or 90 Days have passed after the
appointment without such Person’s consent or acquiescence of a trustee, receiver or liquidator of
such Person or of all or any substantial part of such Person’s properties, if the appointment is
not vacated or stayed, or 90 Days have passed after the date of expiration of any such stay, if the
appointment has not been vacated.

     Board of Directors or Board — Section 8.01.

     Business Day — any Day other than a Saturday, a Sunday or a Day on which national banking
associations in the State of Texas are authorized or required by Law to close.

     Capital Contribution — with respect to any Member of the Company, the amount of money and the
initial Carrying Value of any property (other than money) contributed to the Company by such
Member.

     Carrying Value — means (a) with respect to property contributed to the Company, the fair
market value of such property at the time of contribution reduced (but not below zero) by all
depreciation, depletion (computed as a separate item of deduction), amortization and cost

Attachment I - 1

 

 

recovery deductions charged to the Members’ capital accounts, (b) with respect to any property
whose value is adjusted pursuant to the Allocation Regulations, the adjusted value of such property
reduced (but not below zero) by all depreciation and cost recovery deductions charged to the
Partner’s capital accounts and (c) with respect to any other Company property, the adjusted basis
of such property for federal income tax purposes, all as of the time of determination.

     Company — initial paragraph.

     Control — shall mean the possession, directly or indirectly, of the power and authority to
direct or cause the direction of the management and policies of a Person, whether through ownership
or control of Voting Stock, by contract or otherwise.

     Contribution Agreement - Recitals.

     Day — a calendar Day; provided, however, that, if any period of Days referred to in this
Agreement shall end on a Day that is not a Business Day, then the expiration of such period shall
be automatically extended until the end of the first succeeding Business Day.

     Delaware General Corporation Law — Title 8 of the Delaware Code, as amended from time to
time.

     Director — each member of the Board of Directors elected as provided in Section 8.01.

     Dispose, Disposing or Disposition means, with respect to any asset, any sale, assignment,
transfer, conveyance, gift, exchange or other disposition of such asset, whether such disposition
be voluntary, involuntary or by operation of Law.

     Dissolution Event — Section 13.01(a).

     Effective Date — initial paragraph.

     Enterprise GC - Recitals.

     EPD OLP — initial paragraph.

     Existing Agreement — Recitals.

     GTM Holdings - Recitals.

     GTMGP - Recitals.

     Holdings III - Recitals.

     Indemnitee — Section 8.05(a).

     Initial Member — EPD OLP.

Attachment I - 2

 

 

     Law — any applicable constitutional provision, statute, act, code (including the Code), law,
regulation, rule, ordinance, order, decree, ruling, proclamation, resolution, judgment, decision,
declaration or interpretative or advisory opinion or letter of a governmental authority.

     Liability — any liability or obligation, whether known or unknown, asserted or unasserted,
absolute or contingent, matured or unmatured, conditional or unconditional, latent or patent,
accrued or unaccrued, liquidated or unliquidated, or due or to become due.

     Member — any Person executing this Agreement as of the date of this Agreement as a member or
hereafter admitted to the Company as a member as provided in this Agreement, but such term does not
include any Person who has ceased to be a member in the Company.

     Membership Interest — with respect to any Member, (a) that Member’s status as a Member; (b)
that Member’s share of the income, gain, loss, deduction and credits of, and the right to receive
distributions from, the Company; (c) all other rights, benefits and privileges enjoyed by that
Member (under the Act, this Agreement, or otherwise) in its capacity as a Member; and (d) all
obligations, duties and liabilities imposed on that Member (under the Act, this Agreement or
otherwise) in its capacity as a Member, including any obligations to make Capital Contributions.

     Merger Agreement — Section 14.01.

     MLP — Recitals.

     Officers — any person elected as an officer of the Company as provided in Section 8.02(a),
but such term does not include any person who has ceased to be an officer of the Company.

     Omnibus Agreement — means the Omnibus Agreement between EPD OLP, DEP Holdings, LLC, MLP, DEP
OLPGP, LLC, DEP OLP, Enterprise Lou-Tex Propylene Pipeline L.P., Sabine Propylene Pipeline L.P.,
Acadian Gas, LLC, Mont Belvieu Caverns, LLC and the Company, dated February 5, 2007, as amended or
restated from time to time.

     Organizational Certificate — Section 2.01.

     Person — a natural person, partnership (whether general or limited), limited liability
company, governmental entity, trust, estate, association, corporation, venture, custodian, nominee
or any other individual or entity in its own or any representative capacity.

     Sharing Ratio — subject in each case to adjustments in accordance with this Agreement or in
connection with Dispositions of Membership Interests, (a) in the case of a Member executing this
Agreement as of the date of this Agreement or a Person acquiring such Member’s Membership Interest,
the percentage specified for that Member as its Sharing Ratio on Exhibit A, and (b) in the
case of Membership Interests issued pursuant to Section 3.02, the Sharing Ratio established
pursuant thereto; provided, however, that the total of all Sharing Ratios shall always equal 100%.

     Surviving Business Entity — Section 14.02(b).

Attachment I - 3

 

 

     Voting Stock — with respect to any Person, Equity Interests in such Person, the holders of
which are ordinarily, in the absence of contingencies, entitled to vote for the election of, or
otherwise appoint, directors (or Persons with management authority performing similar functions) of
such Person.

     Withdraw, Withdrawing and Withdrawal — the withdrawal, resignation or retirement of a Member
from the Company as a Member.

Attachment I - 4

 

 

Exhibit A

	 	 	 	 	 
	Name and Address of Partner	 	Sharing Ratio
	 
	DEP Operating Partnership, L.P.

1100 Louisiana Street, 10th Floor

Houston, Texas 77002

	 	 	66	%
	Enterprise Products Operating L.P.

1100 Louisiana Street, 10th Floor

Houston, Texas 77002

	 	 	34	%

Exhibit A-1exv10w16

 

Exhibit 10.16

Execution Copy

 

AMENDED AND RESTATED

AGREEMENT OF LIMITED PARTNERSHIP

OF

ENTERPRISE LOU-TEX PROPYLENE PIPELINE L.P.

 

 

 

AMENDED AND RESTATED

AGREEMENT OF LIMITED PARTNERSHIP

OF

ENTERPRISE LOU-TEX PROPYLENE PIPELINE L.P.

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 

	 	ARTICLE I: DEFINITIONS	 	 	 	 
	 
	 	 	 	 	 	 
	1.01

	 	Certain Definitions
	 	 	2	 
	1.02

	 	Other Definitions
	 	 	4	 
	1.03

	 	Construction
	 	 	4	 
	 
	 	 	 	 	 	 
	 

	 	ARTICLE II: ORGANIZATION	 	 	 	 
	 
	 	 	 	 	 	 
	2.01

	 	Formation and Continuation
	 	 	4	 
	2.02

	 	Name
	 	 	4	 
	2.03

	 	Offices
	 	 	4	 
	2.04

	 	Purposes
	 	 	4	 
	2.05

	 	Certificate; Foreign Qualification
	 	 	5	 
	2.06

	 	Term
	 	 	5	 
	2.07

	 	Merger
	 	 	5	 
	 
	 	 	 	 	 	 
	 

	 	ARTICLE III: PARTNERS AND PARTNERSHIP INTERESTS	 	 	 	 
	 
	 	 	 	 	 	 
	3.01

	 	Partners
	 	 	5	 
	3.02

	 	No Dispositions of Partnership Interests
	 	 	5	 
	3.03

	 	Additional Partnership Interests
	 	 	5	 
	 
	 	 	 	 	 	 
	 

	 	ARTICLE IV: CAPITAL CONTRIBUTIONS	 	 	 	 
	 
	 	 	 	 	 	 
	4.01

	 	Initial Contributions
	 	 	6	 
	4.02

	 	Subsequent Contributions
	 	 	6	 
	4.03

	 	Advances by Partners
	 	 	6	 
	4.04

	 	Capital Accounts
	 	 	6	 
	 
	 	 	 	 	 	 
	 

	 	ARTICLE V: ALLOCATIONS AND DISTRIBUTIONS	 	 	 	 
	 
	 	 	 	 	 	 
	5.01

	 	Allocations
	 	 	7	 
	5.02

	 	Distributions
	 	 	9	 
	 
	 	 	 	 	 	 
	 

	 	ARTICLE VI: MANAGEMENT AND OPERATION	 	 	 	 
	 
	 	 	 	 	 	 
	6.01

	 	Management of Partnership Affairs
	 	 	9	 
	6.02

	 	Compensation
	 	 	9	 
	6.03

	 	Standards and Conflicts
	 	 	9	 
	6.04

	 	Indemnification
	 	 	10	 
	6.05

	 	Power of Attorney
	 	 	10	 
	 
	 	 	 	 	 	 
	 

	 	ARTICLE VII: RIGHTS OF LIMITED PARTNERS	 	 	 	 
	 
	 	 	 	 	 	 
	7.01

	 	Information
	 	 	10	 
	7.02

	 	Withdrawal
	 	 	11	 
	7.03

	 	Consents and Voting
	 	 	11	 

i 

 

	 	 	 	 	 	 	 
	7.04

	 	Meetings
	 	 	11	 
	 
	 	 	 	 	 	 
	 

	 	ARTICLE VIII: TAXES	 	 	 	 
	 
	 	 	 	 	 	 
	8.01

	 	Tax Returns
	 	 	12	 
	8.02

	 	Tax Elections
	 	 	12	 
	8.03

	 	Tax Matters Partner
	 	 	12	 
	 
	 	 	 	 	 	 
	 

	 	ARTICLE IX: BOOKS, RECORDS, REPORTS, AND BANK ACCOUNTS	 	 	 	 
	 
	 	 	 	 	 	 
	9.01

	 	Maintenance of Books
	 	 	12	 
	9.02

	 	Reports
	 	 	13	 
	9.03

	 	Accounts
	 	 	13	 
	 
	 	 	 	 	 	 
	 

	 	ARTICLE X: WITHDRAWAL, BANKRUPTCY, ETC. OF GENERAL PARTNER	 	 	 	 
	 
	 	 	 	 	 	 
	10.01

	 	Withdrawal, Bankruptcy, Etc. of General Partner
	 	 	13	 
	10.02

	 	Conversion of Interest
	 	 	14	 
	 
	 	 	 	 	 	 
	 

	 	ARTICLE XI: DISSOLUTION, LIQUIDATION, AND TERMINATION	 	 	 	 
	 
	 	 	 	 	 	 
	11.01

	 	Dissolution
	 	 	14	 
	11.02

	 	Liquidation and Termination
	 	 	14	 
	11.03

	 	Termination
	 	 	16	 
	 
	 	 	 	 	 	 
	 

	 	ARTICLE XII: GENERAL PROVISIONS	 	 	 	 
	 
	 	 	 	 	 	 
	12.01

	 	Offset
	 	 	16	 
	12.02

	 	Notices
	 	 	16	 
	12.03

	 	Entire Agreement; Supersedure
	 	 	16	 
	12.04

	 	Effect of Waiver or Consent
	 	 	16	 
	12.05

	 	Amendment or Modification
	 	 	16	 
	12.06

	 	Binding Effect
	 	 	16	 
	12.07

	 	Governing Law; Severability
	 	 	17	 
	12.08

	 	Further Assurances
	 	 	17	 
	12.09

	 	Waiver of Certain Rights
	 	 	17	 
	12.10

	 	Indemnification
	 	 	17	 
	12.11

	 	Counterparts
	 	 	17	 

EXHIBITS:

	 	 	 	A            Names, Addresses and Sharing Ratios of Partners

ii

 

 

AMENDED AND RESTATED

AGREEMENT OF LIMITED PARTNERSHIP

OF

ENTERPRISE LOU-TEX PROPYLENE PIPELINE L.P.

     This AMENDED AND RESTATED AGREEMENT OF LIMITED PARTNERSHIP OF ENTERPRISE LOU-TEX PROPYLENE
PIPELINE L.P., a Texas limited partnership (the “Partnership”) is made and entered into as of
February 5, 2007, (the “Effective Date”) by and among the Partners (as defined below).

RECITALS

     WHEREAS, the Partnership was formed under the laws of the State of Texas by the Original
General Partner’s filing with the Secretary of State of Texas on August 25, 1999 an Original
Certificate of Limited Partnership and the execution by the Original General Partner and Original
Limited Partner of an Agreement of Limited Partnership (as amended to date, the “Original
Agreement”) effective as of August 25, 1999 (the “Organization Date”);

     WHEREAS, the Original General Partner entered into that certain Contribution, Conveyance and
Assumption Agreement by and among DEP Holdings, LLC, Duncan Energy Partners L.P. (“MLP”), DEP
OLPGP, LLC and DEP Operating Partnership, L.P. on the Effective Date (the “Contribution Agreement”)
whereby the Original General Partner contributed its 66% general partner interest in the
Partnership (the “GP Interest”) to MLP as consideration for the receipt of proceeds raised in the
initial public offering of MLP;

     WHEREAS, pursuant to the Contribution Agreement, MLP contributed the GP interest to the
General Partner as a capital contribution;

     WHEREAS, the General Partner and the Limited Partners now desire to amend the Original
Agreement to reflect (i) the contribution of the GP Interest from the Original General Partner to
the General Partner, (ii) the withdrawal of the Original General Partner as general partner of the
Partnership, (iii) the conversion of the Original General Partner’s remaining 33% of the General
Partner Interests into Limited Partner Interests and admittance of EPD OLP to the Partnership as a
limited partner and (iv) the substitution of the General Partner as the general partner of the
Partnership; and

     WHEREAS, the parties now desire to amend and restate the Original Agreement to set forth their
agreements with respect to this Partnership as set forth below and intend for this Agreement to
supersede the Original Agreement.

     NOW, THEREFORE, in consideration of the mutual covenants, rights, and obligations set forth in
this Agreement, the benefits to be derived from them, and other good and valuable consideration,
the receipt and the sufficiency of which each Partner acknowledges and confesses, the Partners
agree as follows:

1

 

ARTICLE I: DEFINITIONS

     1.01 Certain Definitions. As used in this Agreement, the following terms have the following
meanings:

     “Act” means the Texas Revised Limited Partnership Act and any successor statute, as
amended from time to time.

     “Agreement” means this Amended and Restated Agreement of Limited Partnership of
Enterprise Lou-Tex Propylene Pipeline L.P., as it may be amended, modified or supplemented
in accordance with the provisions below.

     “Allocation Regulations” means Treas. Reg. §§ 1.704-1(b), 1.704-2 and 1.703-3
(including any temporary regulations) as such regulations may be amended and in effect from
time to time and any corresponding provision of succeeding regulations.

     “Bankrupt Partner” means any Partner (whether the General Partner or a Limited
Partner) with respect to which an event of the type described in Section 4.02(a)(4) or (5)
of the Act has occurred, subject to the lapsing of any period of time therein specified.

     “Business Day” means any day other than a Saturday, a Sunday, or a holiday on which
banks in the State of Texas generally are closed.

     “Capital Contribution” means any contribution by a Partner to the capital of the
Partnership.

     “Carrying Value” means (a) with respect to property contributed to the Partnership,
the fair market value of such property at the time of contribution reduced (but not below
zero) by all depreciation, depletion (computed as a separate item of deduction),
amortization and cost recovery deductions charged to the Partners’ capital accounts, (b)
with respect to any property whose value is adjusted pursuant to the Allocation
Regulations, the adjusted value of such property reduced (but not below zero) by all
depreciation and cost recovery deductions charged to the Partners’ capital accounts and (c)
with respect to any other Partnership property, the adjusted basis of such property for
federal income tax purposes, all as of the time of determination.

     “Certificate” means the Certificate of Amendment of Certificate of Limited Partnership
of the Partnership, as filed with the Secretary of State of the State of Texas on February
5, 2007, and as amended or restated from time to time.

     “Code” means the Internal Revenue Code of 1986 and any successor statute, as amended
from time to time.

     “Contribution Agreement” has the meaning set forth in the recitals.

     “DEP OLP” means DEP Operating Partnership, L.P., a Delaware limited partnership.

2

 

     “Dispose” or “Disposition” means a sale, assignment, transfer, exchange, mortgage,
pledge, grant of a security interest, or other disposition or encumbrance, or the acts of
the foregoing.

     “Effective Date” has the meaning set forth in the first paragraph of this Agreement.

     “EPD OLP” means Enterprise Products Operating L.P., a Delaware limited partnership.

     “General Partner” means (a) DEP OLP or (b) any other Person subsequently admitted to
the Partnership as the general partner as provided in this Agreement, but does not include
any Person who has ceased to be the general partner in the Partnership.

     “GP Interest” has the meaning set forth in the recitals.

     “Limited Partner” means EPD OLP, PPP or any other Person subsequently admitted to the
Partnership as a limited partner as provided in this Agreement, but does not include any
Person who has ceased to be a limited partner in the Partnership.

     “MLP” has the meaning set forth in the recitals.

     “Omnibus Agreement” means the Omnibus Agreement between EPD OLP, DEP Holdings, LLC,
MLP, DEP OLPGP, LLC, DEP OLP, Enterprise Lou-Tex Propylene Pipeline L.P., Acadian Gas, LLC,
Mont Belvieu Caverns, LLC, South Texas NGL Pipelines, LLC and the Partnership, dated
February 5, 2007, as amended or restated from time to time.

     “Original Agreement” means the Agreement of Limited Partnership of the Partnership as
of the Organization Date.

     “Organization Date” has the meaning given that term in the recitals.

     “Original Certificate” means the Certificate of Limited Partnership as filed with the
Secretary of State of the State of Texas on August 25, 1999.

     “Original General Partner” means EPD OLP.

     “Original Limited Partner” means PPP.

     “Partner” means the General Partner or any Limited Partner.

     “Partnership” has the meaning given that term in the first paragraph.

     “Partnership Interest” means the interest of a Partner in the Partnership, including,
without limitation, rights to distributions (liquidating or otherwise), allocations,
information, and to consent or approve.

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     “Person” means an individual or a corporation, firm, limited liability company,
partnership, joint venture, unincorporated organization, association, government agency or
political subdivision thereof or other entity.

     “PPP” means Propylene Pipeline Partnership, L.P., a Texas limited partnership.

     “Required Interest” means one or more Limited Partners having among them more than 50%
of the Sharing Ratios of all Limited Partners in their capacities as such.

     “Sharing Ratio” means (a) in the case of a Partner executing this Agreement as of the
date of this Agreement, the percentage specified for that Partner as its Sharing Ratio on
Exhibit A, and (b) in the case of a Partnership Interest issued under Section 10.01(c) or
10.02, the Sharing Ratio established in that provision.

     1.02 Other Definitions. Other terms defined in this Agreement have the meanings so given
them.

     1.03 Construction. Whenever the context requires, the gender of all words used in this
Agreement includes the masculine, feminine, and neuter. All references to Articles and Sections
refer to articles and sections of this Agreement, and all references to Exhibits are to Exhibits
attached to this Agreement, each of which is made a part of this Agreement for all purposes.

ARTICLE II: ORGANIZATION

     2.01 Formation and Continuation. The Partnership has been previously formed as a limited
partnership pursuant to the provisions of the Act. The General Partner and the Limited Partners
hereby amend and restate in its entirety the Original Agreement. Subject to the provisions of this
Agreement, the General Partner and the Limited Partners hereby continue the Partnership as a
limited partnership pursuant to the provisions of the Act. This amendment and restatement shall
become effective on the date of this Agreement.

     2.02 Name. The name of the Partnership is “Enterprise Lou-Tex Propylene Pipeline L.P.” and
all Partnership business must be conducted in that name or such other names that comply with
applicable law as the General Partner may select from time to time.

     2.03 Offices. The registered office of the Partnership in the State of Texas shall be at such
place as the General Partner may designate from time to time. The registered agent for service of
process on the Partnership in the State of Texas or any other jurisdiction shall be such Person or
Persons as the General Partner may designate from time to time. The principal office of the
Partnership in the United States shall be at such place as the General Partner may designate from
time to time, which need not be in the State of Texas, and the Partnership shall maintain records
there as required by the Act. The Partnership may have such other offices as the General Partner
may designate from time to time.

     2.04 Purposes. The purposes of the Partnership are to engage in any business or activity that
now or in the future may be necessary, incidental, proper, advisable, or convenient to accomplish
the foregoing purpose (including, without limitation, obtaining appropriate

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financing) and that is not forbidden by the law of the jurisdiction in which the Partnership
engages in that business.

     2.05 Certificate; Foreign Qualification. The General Partner has executed and caused to be
filed with the Secretary of State of Texas a Certificate, amending the Original Certificate filed
on August 25, 1999 and containing information required by the Act. Prior to the Partnership’s
conducting business in any jurisdiction other than Texas, the General Partner shall cause the
Partnership to comply, to the extent those matters are reasonably within the control of the General
Partner, with all requirements necessary to qualify the Partnership as a foreign limited
partnership (or a partnership in which the Limited Partners have limited liability) in that
jurisdiction. At the request of the General Partner, each Limited Partner shall execute,
acknowledge, swear to, and deliver all certificates and other instruments conforming with this
Agreement that are necessary or appropriate to form, qualify, continue, and terminate the
Partnership as a limited partnership under the law of the State of Texas and to qualify, continue,
and terminate the Partnership as a foreign limited partnership (or a partnership in which the
Limited Partners have limited liability) in all other jurisdictions in which the Partnership may
conduct business, and to this end the General Partner may use the power of attorney described in
Section 6.05.

     2.06 Term. The Partnership commenced on August 25, 1999, when the Original Certificate first
was properly filed with the Secretary of State of Texas and shall continue in existence until its
business and affairs are wound up following dissolution automatically at the close of Partnership
business on December 31, 2050 unless (i) the Partners unanimously agree to extend the term of the
Partnership for a longer duration or (ii) the Partnership is earlier dissolved pursuant to the
provisions hereof.

     2.07 Merger. The Partnership may engage in mergers, but only with the unanimous consent of
the Partners.

ARTICLE III: PARTNERS AND PARTNERSHIP INTERESTS

     3.01 Partners. The general partner is DEP OLP, which is admitted to the Partnership as a
general partner effective with the filing of the Certificate with the Secretary of State of the
State of Texas. The limited partners are EPD OLP, which is admitted to the Partnership as a limited
partner effective with the filing of the Certificate with the Secretary of State of the State of
Texas and PPP, which was admitted to the Partnership as a limited partner effective with the
commencement of the Partnership.

     3.02 No Dispositions of Partnership Interests. Except as set forth in Article 4 of the
Omnibus Agreement, the Partnership Interests may not be Disposed of, and any purported Disposition
of the Partnership Interests shall be null and void.

     3.03 Additional Partnership Interests. Additional Partnership Interests may be created and
issued to new or existing Partners only in compliance with the provisions in Article 5 of the
Omnibus Agreement. The Partnership shall be bound by the terms of such Omnibus Agreement.

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ARTICLE IV: CAPITAL CONTRIBUTIONS

     4.01 Initial Contributions. The Partners have previously contributed (whether through actual
contributions or as a result of their acquisition of their Partnership Interests from MLP) to the
Partnership those assets which are currently listed as assets of the Partnership on the
Partnership’s books and records.

     4.02 Subsequent Contributions. Additional Capital Contributions shall be made only with the
unanimous consent of the Partners.

     4.03 Advances by Partners. If the Partnership does not have sufficient cash to pay its
obligations, the General Partner, or any Limited Partner(s) that may agree to do so with the
General Partner’s consent, may advance all or part of the needed funds to or on behalf of the
Partnership. Payment by the General Partner on account of liability as a matter of law for
Partnership obligations is deemed to be an advance under this Section 4.03. An advance described in
this Section 4.03 constitutes a loan from the Partner to the Partnership, bears interest at a rate
determined by the General Partner (and, if applicable, the Limited Partner making the advance) from
the date of the advance until the date of payment, and is not a Capital Contribution.

     4.04 Capital Accounts. A capital account shall be established and maintained for each
Partner. Each Partner’s capital account (a) shall be increased by (i) the amount of money
contributed by that Partner to the Partnership, (ii) the fair market value of property contributed
by that Partner to the Partnership (net of liabilities secured by the contributed property that the
Partnership is considered to assume or take subject to under section 752 of the Code), and (iii)
allocations to that Partner of Partnership income and gain (or items of income and gain), including
income and gain exempt from tax and income and gain described in Treas. Reg. §
1.704-1(b)(2)(iv)(g), but excluding income and gain described in Treas. Reg. § 1.704-1(b)(4)(i),
and (b) shall be decreased by (i) the amount of money distributed to that Partner by the
Partnership, (ii) the fair market value of property distributed to that Partner by the Partnership
(net of liabilities secured by the distributed property that the Partner is considered to assume or
take subject to under section 752 of the Code), (iii) allocations to that Partner of expenditures
of the Partnership described in section 705(a)(2)(B) of the Code, and (iv) allocations of
Partnership loss and deduction (or items of loss and deduction), including loss and deduction
described in Treas. Reg. § 1.704-1(b)(2)(iv)(g), but excluding items described in clause (b)(iii)
above and loss or deduction described in Treas. Reg. § 1.704-1(b)(4)(i) or § 1.704-1(b)(4)(iii).
The Partners’ capital accounts also shall be maintained and adjusted as permitted by the provisions
of Treas. Reg. § 1.704-1(b)(2)(iv)(f) and as required by the other provisions of Treas. Reg. §§
1.704-1(b)(2)(iv) and 1.704-1(b)(4), including adjustments to reflect the allocations to the
Partners of depreciation, depletion, amortization, and gain or loss as computed for book purposes
rather than the allocation of the corresponding items as computed for tax purposes, as required by
Treas. Reg. § 1.704-1(b)(2)(iv)(g). A Partner that has more than one Partnership Interest shall
have a single capital account that reflects all its Partnership Interests, regardless of the class
of Partnership Interests owned by that Partner and regardless of the time or manner in which those
Partnership Interests were acquired.

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ARTICLE V:ALLOCATIONS AND DISTRIBUTIONS

     5.01 Allocations.

          (a) Except as otherwise set forth in Section 5.01(b), for purposes of maintaining the capital
accounts and in determining the rights of the Partners among themselves, all items of income, gain,
loss, deduction, and credit of the Partnership shall be allocated among the Partners in accordance
with their Sharing Ratios.

          (b) The following special allocations shall be made prior to making any allocations provided
for in 5.01(a) above:

     (i) Minimum Gain Chargeback. Notwithstanding any other provision hereof to the
contrary, if there is a net decrease in Minimum Gain (as generally defined under
Treas. Reg. § 1.704-1 or § 1.704-2) for a taxable year (or if there was a net
decrease in Minimum Gain for a prior taxable year and the Partnership did not have
sufficient amounts of income and gain during prior years to allocate among the
Partners under this subsection 5.01(b)(i), then items of income and gain shall be
allocated to each Partner in an amount equal to such Partner’s share of the net
decrease in such Minimum Gain (as determined pursuant to Treas. Reg. §
1.704-2(g)(2)). It is the intent of the Partners that any allocation pursuant to
this subsection 5.01(b)(i) shall constitute a “minimum gain chargeback” under Treas.
Reg. § 1.704-2(f) and shall be interpreted consistently therewith.

     (ii) Partner Nonrecourse Debt Minimum Gain Chargeback. Notwithstanding any
other provision of this Article 5, except subsection 5.01(b)(i), if there is a net
decrease in Partner Nonrecourse Debt Minimum Gain (as generally defined under Treas.
Reg. § 1.704-1 or § 1.704-2), during any taxable year, any Partner who has a share
of the Partner Nonrecourse Debt Minimum Gain shall be allocated such amount of
income and gain for such year (and subsequent years, if necessary) determined in the
manner required by Treas. Reg. § 1.704-2(i)(4) as is necessary to meet the
requirements for a chargeback of Partner Nonrecourse Debt Minimum Gain.

     (iii) Qualified Income Offset. Except as provided in subsection 5.01(b)(i) and
(ii) hereof, in the event any Partner unexpectedly receives any adjustments,
allocations or distributions described in Treas. Reg. Sections
1.704-1(b)(2)(i)(d)(4), 1.704-1(b)(2)(ii)(d)(5), or 1.704-1(b)(2)(ii)(d)(6), items
of Partnership income and gain shall be specifically allocated to such Partner in an
amount and manner sufficient to eliminate, to the extent required by the Allocation
Regulations, the deficit balance, if any, in its adjusted capital account created by
such adjustments, allocations or distributions as quickly as possible.

     (iv) Gross Income Allocations. In the event any Partner has a deficit balance
in its adjusted capital account at the end of any Partnership taxable period, such
Partner shall be specially allocated items of Partnership gross income and gain in
the amount of such excess as quickly as possible; provided, that an

7

 

allocation pursuant to this subsection 5.01(b)(iv) shall be made only if and to
the extent that such Partner would have a deficit balance in its adjusted capital
account after all other allocations provided in this Section 5.01 have been
tentatively made as if subsection 5.01(b)(iv) were not in the Agreement.

     (v) Partnership Nonrecourse Deductions. Partnership Nonrecourse Deductions (as
determined under Treas. Reg. Section 1.704-2(c)) for any fiscal year shall be
allocated among the Partners in proportion to their Partnership Interests.

     (vi) Partner Nonrecourse Deductions. Any Partner Nonrecourse Deductions (as
defined under Treas. Reg. Section 1.704-2(i)(2)) shall be allocated pursuant to
Treas. Reg. Section 1.704-2(i) to the Partner who bears the economic risk of loss
with respect to the partner nonrecourse debt to which it is attributable.

     (vii) Code Section 754 Adjustment. To the extent an adjustment to the adjusted
tax basis of any Partnership asset pursuant to Section 734(b) or 743(b) of the Code
is required, pursuant to the Allocation Regulations, to be taken into account in
determining capital accounts, the amount of such adjustment to the capital accounts
shall be treated as an item of gain (if the adjustment increases the basis of the
asset) or loss (if the adjustment decreases such basis), and such item of gain or
loss shall be specially allocated to the Partners in a manner consistent with the
manner in which their capital accounts are required to be adjusted pursuant to the
Allocation Regulations.

     (viii) Curative Allocation. The special allocations set forth in subsections
5.01(b)(i)-(vi) (the “Regulatory Allocations”) are intended to comply with the
Allocation Regulations. Notwithstanding any other provisions of this Section 5.01,
the Regulatory Allocations shall be taken into account in allocating items of
income, gain, loss and deduction among the Partners such that, to the extent
possible, the net amount of allocations of such items and the Regulatory Allocations
to each Partner shall be equal to the net amount that would have been allocated to
each Partner if the Regulatory Allocations had not occurred.

          (c) For federal income tax purposes, except as otherwise required by the Code, the Allocation
Regulations or the following sentence, each item of Partnership income, gain, loss, deduction and
credit shall be allocated among the Partners in the same manner as corresponding items are
allocated in Section 5.01(a). Notwithstanding any provisions contained herein to the contrary,
solely for federal income tax purposes, items of income, gain, depreciation, gain or loss with
respect to property contributed or deemed contributed to the Partnership by a Partner shall be
allocated so as to take into account the variation between the Partnership’s tax basis in such
contributed property and its Carrying Value pursuant to such method under the Code as is chosen by
the General Partner.

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     5.02 Distributions.

          (a) At least once each month prior to commencement of winding up under Section 11.02, the
General Partner shall determine in its reasonable judgment to what extent (if any) the
Partnership’s cash on hand exceeds its current and anticipated needs, including, without
limitation, for operating expenses, debt service, acquisitions, and a reasonable contingency
reserve. If such an excess exists, the General Partner shall cause the Partnership to distribute to
the Partners, in accordance with their Sharing Ratios, an amount in cash equal to that excess.

          (b) From time to time the General Partner also may cause property of the Partnership other
than cash to be distributed to the Partners, which distribution must be made in accordance with
their Sharing Ratios and may be made subject to existing liabilities and obligations. Immediately
prior to such a distribution, the capital accounts of the Partners shall be adjusted as provided in
Treas. Reg. § 1.704-1(b)(2)(iv)(f).

ARTICLE VI:MANAGEMENT AND OPERATION

     6.01 Management of Partnership Affairs.

          (a) Except for situations in which the approval of the Limited Partners is expressly required
by this Agreement or by nonwaivable provisions of applicable law, the General Partner shall have
full, complete, and exclusive authority to manage and control the business, affairs, and properties
of the Partnership, to make all decisions regarding those matters, and to perform any and all other
acts or activities customary or incident to the management of the Partnership’s business. The
General Partner may make all decisions and take all actions for the Partnership not otherwise
provided for in this Agreement.

          (b) A Limited Partner may not act for or on behalf of the Partnership, do any act that would
be binding on the Partnership, or incur any expenditures on behalf of the Partnership.

          (c) Any Person dealing with the Partnership, other than a Limited Partner, may rely on the
authority of the General Partner in taking any action in the name of the Partnership without
inquiry into the provisions of this Agreement or compliance with it, regardless of whether that
action actually is taken in accordance with the provisions of this Agreement.

     6.02 Compensation. The General Partner is not entitled to compensation for its services as
General Partner, but it is entitled to be reimbursed for out-of-pocket costs and expenses incurred
in the course of its service in that capacity in accordance with this Agreement, including for the
portion of its overhead reasonably allocable to Partnership activities.

     6.03 Standards and Conflicts.

          (a) Except as provided otherwise in this Agreement, the General Partner shall conduct the
affairs of the Partnership in good faith toward the best interests of the Partnership. THE GENERAL
PARTNER IS LIABLE FOR ERRORS OR OMISSIONS IN PERFORMING ITS DUTIES WITH RESPECT TO THE PARTNERSHIP
ONLY IN

9

 

THE CASE OF BAD FAITH, GROSS NEGLIGENCE, OR BREACH OF THE PROVISIONS OF THIS AGREEMENT, BUT
NOT OTHERWISE. The General Partner shall devote such time and effort to the Partnership business
and operations as is necessary to promote fully the interests of the Partnership; however, the
General Partner need not devote full time to Partnership business.

          (b) Subject to the other provisions of this Agreement, the General Partner and each Limited
Partner at any time and from time to time may engage in and possess interests in other business
ventures of any and every type and description, independently or with others, including ones in
competition with the Partnership, with no obligation to offer to the Partnership or any other
Partner the right to participate in those activities.

          (c) The Partnership may transact business with any Partner or affiliate of a Partner, provided
the terms of the transactions are no less favorable than those the Partnership could obtain from
unrelated third parties.

     6.04 Indemnification. To the fullest extent permitted by law, and subject to the procedures
in Article 11 of the Act, on request by the Person indemnified the Partnership shall indemnify the
General Partner, its affiliates, and their respective officers, directors, partners, employees, and
agents and hold them harmless from and against all losses, costs, liabilities, damages, and
expenses (including, without limitation, costs of suit and attorney’s fees) any of them may incur
as a general partner in the Partnership or in performing the obligations of the General Partner
with respect to the Partnership, SPECIFICALLY INCLUDING THE PERSON INDEMNIFIED’S SOLE, PARTIAL, OR
CONCURRENT NEGLIGENCE, and on request by the Person indemnified the Partnership shall advance
expenses associated with defense of any related action; provided, however, that this indemnity does
not apply to actions constituting bad faith, gross negligence, or breach of the provisions of this
Agreement.

     6.05 Power of Attorney. Each Limited Partner appoints the General Partner (and any liquidator
pursuant to Section 11.02) as that Limited Partner’s attorney-in-fact for the purpose of executing,
swearing to, acknowledging, and delivering all certificates, documents, and other instruments as
may be necessary, appropriate, or advisable in the judgment of the General Partner (or the
liquidator) in furtherance of the business of the Partnership or complying with applicable law,
including, without limitation, filings of the type described in Section 2.05. This power of
attorney is irrevocable and is coupled with an interest. On request by the General Partner (or the
liquidator), a Limited Partner shall confirm its grant of this power of attorney or any use of it
by the General Partner (or the liquidator) and shall execute, swear to, acknowledge, and deliver
any such certificate, document, or other instrument.

ARTICLE VII:RIGHTS OF LIMITED PARTNERS

     7.01 Information.

          (a) In addition to the other rights set forth in this Agreement, each Limited Partner is
entitled to all information to which that Limited Partner is entitled to have access under the Act
under the circumstances and subject to the conditions therein stated; provided, however, that the
General Partner may determine, due to contractual obligations, business concerns, or

10

 

other considerations, that certain information regarding the business, affairs, properties,
and financial condition of the Partnership should be kept confidential and not provided to some or
all Limited Partners. The Partners agree that the restrictions in the immediately preceding
sentence are just and reasonable.

          (b) The Partners acknowledge that, from time to time, they may receive information from or
regarding the Partnership in the nature of trade secrets or that otherwise is confidential, the
release of which may be damaging to the Partnership or Persons with which it does business. Each
Partner shall hold in strict confidence and not use (except for matters involving the Partnership)
any information it receives regarding the Partnership that is identified as being confidential (and
if that information is provided in writing, that is so marked) and may not disclose it to any
Person other than another Partner, except for disclosures (a) compelled by law (but the Partner
must notify the General Partner promptly of any request for that information, before disclosing it
if practicable), (b) to advisers or representatives of the Partner, but only if the recipients have
agreed to be bound by the provisions of this Section 7.01(b), or (c) of information that Partner
also has received from a source independent of the Partnership that the Partner reasonably believes
obtained that information without breach of any obligation of confidentiality. The Partners
acknowledge that breach of the provisions of this Section 7.01(b) may cause irreparable injury to
the Partnership for which monetary damages are inadequate, difficult to compute, or both.
Accordingly, the Partners agree that the provisions of this Section 7.01(b) may be enforced by
specific performance.

     7.02 Withdrawal. A Limited Partner does not have the right or power to withdraw from the
Partnership as a limited partner.

     7.03 Consents and Voting.

          (a) Subject to the provisions of Section 6.03(a) with respect to the General Partner in its
capacity as such, a Partner (including the General Partner with respect to any Partnership Interest
it may have as a Limited Partner) may grant or withhold its consent or vote its interest in its
sole discretion, without regard to the interests of the Partnership or any other Partner.

          (b) In any request for consent or approval from another Partner, the General Partner may
specify a response period, ending no earlier than the fifth and no later than the 15th Business Day
following the date on which the Partner whose consent or approval is sought receives the request as
described in Section 12.02. If the receiving Partner does not respond by the end of this period, it
shall be deemed to have consented to or approved the action set forth in the request.

     7.04 Meetings. On written request of Partners having 50% of the Sharing Ratios, the General
Partner shall call, and at any time it may call, a meeting of the Partners to transact business
that the Partners or any group of Partners may conduct as provided in this Agreement. The call must
be made by notice to all other Partners on or before the tenth day prior to the date of the meeting
specifying the location and the time and stating the business to be transacted at the meeting,
which must include any items the Partners requesting the meeting have specified in their request.
The chairperson of the meeting shall be an individual the General Partner specifies.

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At the meeting, the Partners may take any action included in the notice of the meeting by vote
of Partners present, in person or by proxy, constituting Partners whose consent is required for
that action pursuant to the other provisions of this Agreement. With respect to other matters, the
meeting must be conducted in accordance with rules that the General Partner may establish.

ARTICLE VIII: TAXES

     8.01 Tax Returns. The General Partner shall cause to be prepared and filed all necessary
federal and state income tax returns for the Partnership, including making the elections described
in Section 8.02. Each Limited Partner shall furnish to the General Partner all pertinent
information in its possession relating to Partnership operations that is necessary to enable the
Partnership’s income tax returns to be prepared and filed.

     8.02 Tax Elections. The Partnership shall make the following elections on the appropriate tax
returns:

          (a) to adopt a fiscal year ending on December 31 of each year;

          (b) to adopt the accrual method of accounting and to keep the Partnership’s books and records
on the income-tax method;

          (c) pursuant to section 754 of the Code, to adjust the basis of Partnership properties; and

          (d) any other election the General Partner may deem appropriate and in the best interests of
the Partners.

Neither the Partnership nor any Partner may make an election for the Partnership to be excluded
from the application of the provisions of subchapter K of chapter 1 of subtitle A of the Code or
any similar provisions of applicable state law.

     8.03 Tax Matters Partner. The General Partner shall be the “tax matters partner” of the
Partnership pursuant to section 6231(a)(7) of the Code. The General Partner shall take such action
as may be necessary to cause each Limited Partner to become a “notice partner” within the meaning
of section 6223 of the Code. The General Partner shall inform each Limited Partner of all
significant matters that may come to its attention in its capacity as tax matters partner by giving
notice on or before the fifth Business Day after becoming aware of the matter and, within that
time, shall forward to each Limited Partner copies of all significant written communications it may
receive in that capacity.

ARTICLE IX: BOOKS, RECORDS, REPORTS, AND BANK ACCOUNTS

     9.01 Maintenance of Books. The books of account for the Partnership shall be maintained on a
accrual basis in accordance with the terms of this Agreement, except that the capital accounts of
the Partners shall be maintained in accordance with Section 4.04. The accounting year of the
Partnership shall end on December 31 of each year.

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     9.02 Reports. If requested by any Partner in writing, on or before the 120th day following
the end of each fiscal year during the term of the Partnership, the General Partner shall cause
each Limited Partner to be furnished with a balance sheet, an income statement, and a statement of
changes in Partners’ capital of the Partnership for, or as of the end of, that year. These
financial statements must be prepared in accordance with accounting principles generally employed
for cash basis records consistently applied (except as noted in the statements). The General
Partner also may cause to be prepared or delivered such other reports as it may deem appropriate.
The Partnership shall bear the costs of all these reports.

     9.03 Accounts. The General Partner shall establish and maintain one or more separate bank and
investment accounts and arrangements for Partnership funds in the Partnership name with financial
institutions and firms that the General Partner determines. The General Partner may not commingle
the Partnership’s funds with the funds of any Partner; however, Partnership funds may be invested
in a manner the same as or similar to the General Partner’s investment of its own funds or
investments by its affiliates.

ARTICLE X: WITHDRAWAL, BANKRUPTCY, ETC. OF GENERAL PARTNER

     10.01 Withdrawal, Bankruptcy, Etc. of General Partner.

          (a) The General Partner agrees that it will not withdraw from the Partnership as the general
partner within the meaning of Section 6.02(a) of the Act. If the General Partner withdraws from the
Partnership in violation of this covenant, the withdrawal is effective on the 90th day following
notice of the withdrawal to all Limited Partners, or such later date as the notice may specify. On
a withdrawal in violation of this Section 10.01(a), the Partnership’s remedies shall be limited to
the recovery of monetary damages arising from such violation, it being understood that neither the
Partnership nor any Limited Partner shall have the right, through specific performance or
otherwise, to prevent the General Partner from withdrawing in violation of this Agreement.

          (b) The General Partner does not cease to be the general partner in the Partnership on the
occurrence of an event of the type described in Section 4.02(a)(7)-(9) of the Act, but ceases to be
the general partner on the substantial completion of winding up of the General Partner’s
activities. The General Partner shall notify each Limited Partner that an event of the type
described in Section 4.02(a)(4), (5), or (7)-(10) of the Act has occurred with respect to it on or
before the fifth Business Day after that occurrence.

          (c) Following any notice that the General Partner is withdrawing, or following the occurrence
of an event of the type described in Section 4.02(a)(4)-(10) of the Act with respect to the General
Partner (without regard to the lapse of any time periods), a Required Interest by written consent
may select a new General Partner. The Person selected shall be admitted to the Partnership as the
General Partner effective immediately prior to the existing General Partner’s ceasing to be the
General Partner with a Sharing Ratio that the Limited Partners making the selection specify, but
only if the new General Partner has made a Capital Contribution in an amount the Limited Partners
making the selection specify and has executed and delivered to the Partnership a document including
the new General Partner’s notice address and its agreement to be bound by this Agreement.
Notwithstanding the foregoing provisions of

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this Section 10.01(c), for the right to select a new General Partner to exist or be exercised,
the Partnership must receive a favorable opinion of the Partnership’s legal counsel or of other
legal counsel acceptable to the Limited Partners making the selection to the effect that the
selection and admission (if any) will not result in (i) the loss of limited liability of any
Limited Partner or (ii) the Partnership’s being treated as an association taxable as a corporation
for federal income tax purposes. Notwithstanding the foregoing provisions of this Section 10.01(c),
the selection of a new General Partner shall be rescinded (and the existing General Partner shall
continue as such) if the event that permitted the selection of a new General Partner is an event of
the type described in Section 4.02(a)(5) of the Act that with the passage of time would cause the
existing General Partner to become a Bankrupt Partner but that situation does not continue and the
existing General Partner does not become a Bankrupt Partner.

     10.02 Conversion of Interest. Simultaneously with the General Partner’s ceasing to be General
Partner following the admission of a new General Partner pursuant to Section 10.01(c), the former
General Partner’s Partnership Interest as the General Partner automatically is converted into that
of a Limited Partner having a Sharing Ratio equal to the Sharing Ratio of the former General
Partner as the General Partner immediately prior to its ceasing to be the General Partner, and the
General Partner automatically is admitted to the Partnership as a Limited Partner.

ARTICLE XI: DISSOLUTION, LIQUIDATION, AND TERMINATION

     11.01 Dissolution. The Partnership shall dissolve and its business and affairs shall be wound
up on the first to occur of the following:

          (a) the written consent of the General Partner and a Required Interest;

          (b) the date set forth in Section 2.06;

          (c) the General Partner’s ceasing to be the General Partner as described in Section 10.01(a)
or (b), unless a new General Partner is selected and admitted as provided in Section 10.01(c); or

          (d) any other event causing dissolution as described in Section 8.01 of the Act (other than an
event described in Section 4.02(a)(4) or (7)-(10) of the Act, except as provided in Sections
10.01(b) and 11.01(c));

provided, however, that if dissolution occurs due to an “event of withdrawal” (as defined in
Section 4.02(a) of the Act) with respect to the General Partner and a new General Partner is being
admitted pursuant to Section 10.01(c), the Partnership automatically shall be reconstituted and the
new General Partner shall, and hereby agrees to, carry on the business of the Partnership.

     11.02 Liquidation and Termination. On dissolution of the Partnership, unless it is
reconstituted and continued as provided in Section 11.01, the General Partner shall act as
liquidator or may appoint one or more other Persons as liquidator; provided, however, that if the
Partnership dissolves on account of an event of the type described in Section 4.02(a)(4)-(10) of
the Act with respect to the General Partner, the liquidator shall be one or more Persons selected
in writing by a Required Interest. The liquidator shall proceed diligently to wind up the affairs
of

14

 

the Partnership and make final distributions as provided in this Agreement. The costs of
liquidation shall be borne as a Partnership expense. Until final distribution, the liquidator shall
continue to operate the Partnership properties with all of the power and authority of the General
Partner. The steps to be accomplished by the liquidator are as follows:

          (a) as promptly as practicable after dissolution and again after final liquidation, the
liquidator shall cause a proper accounting to be made by a recognized firm of certified public
accountants of the Partnership’s assets, liabilities, and operations through the last day of the
calendar month in which the dissolution occurs or the final liquidation is completed, as
applicable;

          (b) the liquidator shall pay from Partnership funds all of the debts and liabilities of the
Partnership (including, without limitation, all expenses incurred in liquidation and any advances
described in Section 4.03) or otherwise make adequate provision for them (including, without
limitation, the establishment of a cash escrow fund for contingent liabilities in such amount and
for such term as the liquidator may reasonably determine); and

          (c) all remaining assets of the Partnership shall be distributed to the Partners as follows:

     (i) the liquidator may sell any or all Partnership property, including to
Partners, and any resulting gain or loss from each sale shall be computed and
allocated to the capital accounts of the Partners;

     (ii) with respect to all Partnership property that has not been sold, the fair
market value of that property shall be determined and the capital accounts of the
Partners shall be adjusted to reflect the manner in which the unrealized income,
gain, loss, and deduction inherent in property that has not been reflected in the
capital accounts previously would be allocated among the Partners if there were a
taxable disposition of that property for the fair market value of that property on
the date of distribution; and

     (iii) Partnership property shall be distributed among the Partners in
accordance with the positive capital account balances of the Partners, as determined
after taking into account all capital account adjustments for the taxable year of
the Partnership during which the liquidation of the Partnership occurs (other than
those made by reason of this clause (iii)); and those distributions shall be made by
the end of the taxable year of the Partnership during which the liquidation of the
Partnership occurs (or, if later, 90 days after the date of the liquidation).

All distributions in kind to the Partners shall be made subject to the liability of each
distributee for its allocable share of costs, expenses, and liabilities previously incurred or for
which the Partnership has committed prior to the date of termination and those costs, expenses, and
liabilities shall be allocated to the distributee under this Section 11.02. The distribution of
cash and/or property to a Partner in accordance with the provisions of this Section 11.02
constitutes a complete return to the Partner of its Capital Contributions and a complete
distribution to the

15

 

Partner of its Partnership Interest and all the Partnership’s property and constitutes a compromise
to which all Partners have consented within the meaning of Section 5.02(d) of the Act. To the
extent that a Partner returns funds to the Partnership, it has no claim against any other Partner
for those funds.

     11.03 Termination. On completion of the distribution of Partnership assets as provided in
this Agreement, the Partnership is terminated, and the General Partner (or such other Person or
Persons as the Act may require or permit) shall cause the cancellation of the Certificate and any
filings made as provided in Section 2.05 and shall take such other actions as may be necessary to
terminate the Partnership.

ARTICLE XII: GENERAL PROVISIONS

     12.01 Offset. Whenever the Partnership is to pay any sum to any Partner, any amounts that
Partner owes the Partnership may be deducted from that sum before payment.

     12.02 Notices. All notices, requests, or consents provided for or permitted to be given under
this Agreement must be in writing and must be given either by depositing that writing in the United
States mail, addressed to the recipient, postage paid, and registered or certified with return
receipt requested or by delivering that writing to the recipient in person, by courier, or by
facsimile transmission. A notice, request, or consent given under this Agreement is effective on
receipt at the address of the Person to receive it. All notices, requests, and consents to be sent
to a Partner must be sent to or made at the addresses given for that Partner on Exhibit A or in the
instrument described in Section 10.01(c), or such other address as that Partner may specify by
notice to the other Partners. Any notice, request, or consent to the Partnership must be given to
the General Partner.

     12.03 Entire Agreement; Supersedure. This Agreement constitutes the entire agreement of the
Partners and their affiliates relating to the Partnership and supersedes all prior contracts or
agreements with respect to the Partnership, whether oral or written.

     12.04 Effect of Waiver or Consent. A waiver or consent, express or implied, to or of any
breach or default by any Person in the performance by that Person of its obligations with respect
to the Partnership is not a consent or waiver to or of any other breach or default in the
performance by that Person of the same or any other obligations of that Person with respect to the
Partnership. Failure on the part of a Person to complain of any act of any Person or to declare any
Person in default with respect to the Partnership, irrespective of how long that failure continues,
does not constitute a waiver by that Person of its rights with respect to that default until the
applicable statute of-limitations period has run.

     12.05 Amendment or Modification. This Agreement may be amended or modified from time to time
only by a written instrument executed by all of the Partners.

     12.06 Binding Effect. Subject to the restrictions on Dispositions set forth in this
Agreement, this Agreement is binding on and inures to the benefit of the Partners and their
respective heirs, legal representatives and successors.

16

 

     12.07 Governing Law; Severability. THIS AGREEMENT IS GOVERNED BY AND SHALL BE CONSTRUED IN
ACCORDANCE WITH THE LAW OF THE STATE OF TEXAS, EXCLUDING ANY CONFLICT-OF-LAWS RULE OR PRINCIPLE
THAT MIGHT REFER THE GOVERNANCE OR THE CONSTRUCTION OF THIS AGREEMENT TO THE LAW OF ANOTHER
JURISDICTION. If any provision of this Agreement or its application to any Person or circumstance
is held invalid or unenforceable to any extent, the remainder of this Agreement and the application
of that provision to other Persons or circumstances is not affected and that provision shall be
enforced to the greatest extent permitted by law.

     12.08 Further Assurances. In connection with this Agreement and the transactions contemplated
by it, each Partner shall execute and deliver any additional documents and instruments and perform
any additional acts that may be necessary or appropriate to effectuate and perform the provisions
of this Agreement and those transactions.

     12.09 Waiver of Certain Rights. Each Partner irrevocably waives any right it may have to
maintain any action for dissolution of the Partnership or for partition of the property of the
Partnership.

     12.10 Indemnification. To the fullest extent permitted by law, each Partner shall indemnify
the Partnership and each other Partner and hold them harmless from and against all losses, costs,
liabilities, damages, and expenses (including, without limitation, costs of suit and attorney’s
fees) they may incur on account of any breach by that Partner of this Agreement.

     12.11 Counterparts. This Agreement maybe executed in any number of counterparts with the same
effect as if all signing parties had signed the same document. All counterparts shall be construed
together and constitute the same instrument.

[Signature page follows]

17

 

EXECUTED as of the date first set forth above.

	 	 	 	 	 
	 	 	GENERAL PARTNER:
	 
	 	 	 	 
	 	 	DEP OPERATING PARTNERSHIP, L.P.
	 
	 	 	 	 
	 

	 	By:
	 	DEP OLPGP, LLC,
	 

	 	 	 	its general partner
	 
	 	 	 	 
	 

	 	By:	 	 /s/ Michael A. Creel
	 

	 	 	 	 
	 

	 	 	 	Michael A. Creel
	 

	 	 	 	Executive Vice President and Chief Financial
Officer
	 
	 	 	 	 
	 	 	LIMITED PARTNERS:
	 
	 	 	 	 
	 	 	ENTERPRISE PRODUCTS OPERATING L.P.
	 
	 	 	 	 
	 

	 	By:
	 	Enterprise Products OLPGP, Inc.,
	 

	 	 	 	its general partner
	 
	 	 	 	 
	 

	 	By:	 	 /s/ Richard H. Bachmann
	 

	 	 	 	 
	 

	 	 	 	Richard H. Bachmann
	 

	 	 	 	Executive Vice President, Chief Legal Officer and
Secretary
	 
	 	 	 	 
	 	 	PROPYLENE PIPELINE PARTNERSHIP, L.P.
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	ENTERPRISE PRODUCTS OPERATING L.P., its general
partner
	 
	 	 	 	 
	 

	 	 	 	                    By:  Enterprise Products OLPGP, Inc.,
	 

	 	 	 	               its general partner
	 
	 	 	 	 
	 

	 	By:	 	 /s/ Richard H. Bachmann
	 

	 	 	 	 
	 

	 	 	 	Richard H. Bachmann
	 

	 	 	 	Executive Vice President, Chief Legal Officer and Secretary

18

 

EXHIBIT A

	 	 	 	 	 
	Name and Address of Partner	 	Sharing Ratio
	 
	 	 	 	 
	General
Partner:
	 	 	 	 
	 
	 	 	 	 
	Duncan Energy Partners L.P.

1100 Louisiana Street, 10th Floor

Houston, Texas 77002

	 	 	66	%
	 
	 	 	 	 
	Limited Partners:
	 	 	 	 
	 
	 	 	 	 
	Enterprise Products Operating L.P.

1100 Louisiana Street, 10th Floor

Houston, Texas 77002

	 	 	33	%
	 
	 	 	 	 
	Propylene Pipeline Partnership, L.P.

1100 Louisiana Street, 10th Floor

Houston, Texas 77002

	 	 	1	%

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00116-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00116-of-00352.parquet"}]]