Document:

Exhibit 10.4

 

EMPLOYMENT AGREEMENT

 

This EMPLOYMENT AGREEMENT (the “Agreement”)
is entered into as of [       ] by and
between Bona Film Group, Ltd., a company incorporated and existing under
the laws of the Cayman Islands (the “Company”) and [          ], an individual (the “Executive”).
The term “Company” as used herein with respect to all obligations of the
Executive hereunder shall be deemed to include the Company and all of its
direct or indirect parent companies, subsidiaries, affiliates, or subsidiaries
or affiliates of its parent companies (collectively, the “Group”).

 

RECITALS

 

A.            The Company desires to
employ the Executive and to assure itself of the services of the Executive
during the term of Employment (as defined below).

 

B.            The Executive desires to
be employed by the Company during the term of Employment and under the terms
and conditions of this Agreement.

 

AGREEMENT

 

The parties hereto agree as follows:

 

1.                                      POSITION

 

The Executive hereby
accepts a position of [           ] (the “Employment”) of the Company.

 

2.                                      TERM

 

Subject to the terms and
conditions of this Agreement, the initial term of the Employment shall be three
years, commencing on [         ] (the “Effective
Date”), until [         ], unless
terminated earlier pursuant to the terms of this Agreement.  Upon expiration of the initial [     ] term, the Employment shall be
automatically extended for successive one-year terms unless either party gives
the other party hereto a prior written notice to terminate the Employment prior
to the expiration of such one-year term or unless terminated earlier pursuant
to the terms of this Agreement.

 

3.                                      DUTIES AND RESPONSIBILITIES

 

The Executive’s duties at
the Company will include all jobs assigned by the Board of Directors of the
Company (the “Board”)[, or if authorized by the Board, by the Company’s
Chief Executive Officer].

 

The Executive shall devote all of his/her working
time, attention and skills to the performance of his/her duties at the Company
and shall faithfully and diligently serve the Company  in
accordance with this Agreement and the guidelines,
policies and procedures of the Company approved from time to time by the
Board.

 

 

The Executive shall use his/her best efforts to
perform his/her duties hereunder.  The
Executive shall not, without the prior written consent of the Board, become an
employee of any entity other than the Company
and any subsidiary or affiliate of the Company, and shall not be concerned or
interested in the business or entity that
competes with that carried on by the Company (any such business or entity, a “Competitor”),
provided that nothing in this clause shall preclude the Executive from holding
any shares or other securities of any Competitor that is listed on any
securities exchange or recognized securities market anywhere.  The Executive shall notify the Company in
writing of his/her interest in such shares or securities in a timely manner and
with such details and particulars as the Company may reasonably require.

 

4.                                      NO BREACH OF CONTRACT

 

The Executive hereby represents
to the Company that: (i) the execution and delivery of this Agreement by
the Executive and the performance by the Executive of the Executive’s duties
hereunder shall not constitute a breach of, or otherwise contravene, the terms
of any other agreement or policy to which the Executive is a party or otherwise
bound, except for agreements that are required to be entered into by and
between the Executive and any member of the Group pursuant to applicable law of
the jurisdiction where the Executive is based, if any; (ii) that the
Executive has no information (including, without limitation, confidential
information and trade secrets) relating to any other person or entity which
would prevent, or be violated by, the Executive entering into this Agreement or
carrying out his/her duties hereunder; and (iii) that the Executive is not
bound by any confidentiality, trade secret or similar agreement (other than
this) with any other person or entity except for other member(s) of the
Group, as the case may be.

 

5.                                      LOCATION

 

The Executive will be
based in [         ] or any other
location as requested by the Company during the term of this Agreement.

 

6.                                      COMPENSATION AND BENEFITS

 

(a)                                 Cash Compensation.  The Executive’s cash compensation (inclusive
of the statutory welfare reserves that the Company is required to set aside for
the Executive under applicable law) shall be provided by the Company pursuant
to Schedule A hereto, subject to annual review and adjustment by the
Company or the compensation committee of the Board (or the Board itself, before
the formation of the compensation committee).

 

(b)                                 Equity Incentives.  To the extent the Company adopts and
maintains a share incentive plan, the Executive will be eligible for participating
in such plan pursuant to the terms thereof as determined by the Company, and
the Company will grant an option to purchase the number of ordinary shares of
the Company pursuant to Schedule B hereto, to the Executive at an
exercise price to be determined by the Board.

 

(c)                                  Benefits.  The Executive is eligible for participation
in any standard employee benefit plan of the Company that currently exists or
may be adopted by the Company in the future, including, but not limited to, any
retirement plan, and travel/holiday policy.

 

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7.                                      TERMINATION OF THE AGREEMENT

 

(a)                                 By the Company.  The Company may terminate the Employment for
cause, at any time, without advance notice or remuneration, if (i) the
Executive is convicted or pleads guilty to a felony or to an act of fraud,
misappropriation or embezzlement, (ii) the Executive has been negligent or
acted dishonestly to the detriment of the Company, (iii) the Executive has
engaged in actions amounting to misconduct or failed to perform his/her duties
hereunder and such failure continues after the Executive is afforded a
reasonable opportunity to cure such failure, (iv) the Executive has died,
or (v) the Executive has a disability which shall mean a physical or
mental impairment which, as reasonably determined by the Board, renders the
Executive unable to perform the essential functions of his/her employment with
the Company, even with reasonable accommodation that does not impose an undue
hardship on the Company, for more than 180 days in any 12-month period, unless
a longer period is required by applicable law, in which case that longer period
would apply.  In addition, the Company
may terminate the Employment without cause, at any time, upon one-month prior written
notice to the Executive.  Upon termination
without cause, the Company shall provide the Executive with a severance payment
in cash in an amount equal to the Executive’s [   ] months salary at the then current
rate.  Under such circumstance, the
Executive agrees not to make any further claims for compensation for loss of
office, accrued remuneration, fees, wrongful dismissal or any other claim
whatsoever against the Company or its subsidiaries or the respective officers
or employees of any of them.

 

(b)                              By the Executive.  If there is a material and substantial
reduction in the Executive’s existing authority and responsibilities, the
Executive may resign upon one-month prior written notice to the Company.  In addition, the Executive may resign prior
to the expiration of the Agreement if such resignation is approved by the Board
or an alternative arrangement with respect to the Employment is agreed to by
the Board.

 

(c)                                  Notice of Termination.  Any termination of the Executive’s employment
under this Agreement shall be communicated by written notice of termination
from the terminating party to the other party. 
The notice of termination shall indicate the specific provision(s) of
this Agreement relied upon in effecting the termination.

 

8.                                      CONFIDENTIALITY AND NONDISCLOSURE

 

(a)                                 Confidentiality and Non-disclosure.  In
the course of the Executive’s services, the Executive may have access to the
Company and/or the Company’s customer/supplier’s and/or prospective customer/supplier’s
trade secrets and confidential information, including but not limited to those
embodied in memoranda, manuals, letters or other documents, computer disks,
tapes or other information storage devices, hardware, or other media or
vehicles, pertaining to the Company and/or the Company’s customer/supplier’s
and/or prospective customer/supplier’s business.  All such trade secrets and confidential
information are considered confidential. 
All materials containing any such trade secret and confidential
information are the property of the Company and/or the Company’s customer/supplier
and/or prospective customer/supplier, and shall be returned to the Company
and/or the Company’s customer/supplier and/or prospective customer/supplier
upon expiration or earlier termination of this Agreement.  The Executive shall not directly or indirectly
disclose or use any such trade secret or confidential information, except as
required in the performance of the Executive’s duties in connection with the
Employment, or pursuant to applicable law.

 

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(b)                                 Trade Secrets.  During
and after the Employment, the Executive shall hold the Trade Secrets in strict
confidence; the Executive shall not disclose these Trade Secrets to anyone
except other employees of the Company who have a need to know the Trade Secrets
in connection with the Company’s business. 
The Executive shall not use the Trade Secrets other than for the
benefits of the Company.

 

“Trade Secrets”
means information deemed confidential by the Company, treated by the Company or
which the Executive know or ought reasonably to have known to be confidential,
and trade secrets, including without limitation designs, processes, pricing
policies, methods, inventions, conceptions, technology, technical data,
financial information, corporate structure and know-how, relating to the
business and affairs of the Company and its subsidiaries, affiliates and
business associates, whether  embodied in
memoranda, manuals, letters or other documents, computer disks, tapes or other
information storage devices, hardware, or other media or vehicles.  Trade Secrets do not include information
generally known or released to public domain through no fault of yours.

 

(c)                                 Former Employer Information.  The
Executive agrees that he or she has not and will not, during the term of his/her
employment, (i) improperly use or disclose any proprietary information or
trade secrets of any former employer or other person or entity with which the
Executive has an agreement or duty to keep in confidence information acquired
by Executive, if any, or (ii) bring into the premises of Company any
document or confidential or proprietary information belonging to such former
employer, person or entity unless consented to in writing by such former
employer, person or entity.  The Executive
will indemnify the Company and hold it harmless from and against all claims,
liabilities, damages and expenses, including reasonable attorneys’ fees and
costs of suit, arising out of or in connection with any violation of the
foregoing.

 

(d)                              Third Party Information. 
The Executive recognizes that the Company may have received, and in the future
may receive, from third parties their confidential or proprietary information
subject to a duty on the Company’s part to maintain the confidentiality of such
information and to use it only for certain limited purposes.  The Executive agrees that the Executive owes
the Company and such third parties, during the Executive’s employment by the
Company and thereafter, a duty to hold all such confidential or proprietary
information in the strictest confidence and not to disclose it to any person or
firm and to use it in a manner consistent with, and for the limited purposes
permitted by, the Company’s agreement with such third party.

 

This Section 8 shall survive the termination of this Agreement for
any reason.  In the event the Executive
breaches this Section 8, the Company shall have right to seek remedies
permissible under applicable law.

 

9.                                      INVENTIONS

 

(a)                                 Inventions Retained and Licensed.  The
Executive has attached hereto, as Schedule B, a list describing all inventions, ideas, improvements,
designs and discoveries, whether or not patentable and whether or not reduced
to practice, original works of authorship and trade secrets made or conceived
by or belonging to the Executive (whether made solely by the Executive or
jointly with others) that (i) were developed by Executive prior to the
Executive’s employment by the Company (collectively, “Prior Inventions”), (ii) relate
to the Company’ actual or proposed business, products or research and
development, and 

 

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(iii) are
not assigned to the Company hereunder; or, if no such list is attached, the
Executive represents that there are no such Prior Inventions.  Except to the extent set forth in Schedule
C, the Executive hereby
acknowledges that, if in the course of his/her service for the Company, the
Executive incorporates into a Company product, process or machine a Prior
Invention owned by the Executive or in which he or she has an interest, the Company
is hereby granted and shall have a nonexclusive, royalty-free, irrevocable,
perpetual, worldwide right and license (which may be freely transferred by the
Company to any other person or entity) to make, have made, modify, use, sell,
sublicense and otherwise distribute such Prior Invention as part of or in
connection with such product, process or machine.

 

(b)                                 Disclosure and Assignment of Inventions.  The Executive understands that the Company engages in research and
development and other activities in connection with its business and that, as
an essential part of the Employment, the Executive is expected to make new
contributions to and create inventions of value for the Company.

 

From and after the
Effective Date, the Executive shall disclose in confidence to the Company all
inventions, improvements, designs, original works of authorship, formulas,
processes, compositions of matter, computer software programs, databases, mask
works and trade secrets (collectively, the “Inventions”), which the Executive
may solely or jointly conceive or develop or reduce to practice, or cause to be
conceived or developed or reduced to practice, during the period of the
Executive’s Employment at the Company. 
The Executive acknowledges that copyrightable works prepared by the
Executive within the scope of and during the period of the Executive’s
Employment with the Company are “works for hire” and that the Company will be
considered the author thereof.  The
Executive agrees that all the Inventions shall be the sole and exclusive
property of the Company and the Executive hereby assign all his/her right,
title and interest in and to any and all of the Inventions to the Company or
its successor in interest without further consideration.

 

(c)                                  Patent and Copyright Registration.  The
Executive agrees to assist the Company in every proper way to obtain for the
Company and enforce patents, copyrights, mask work rights, trade secret rights,
and other legal protection for the Inventions. 
The Executive will execute any documents that the Company may reasonably
request for use in obtaining or enforcing such patents, copyrights, mask work
rights, trade secrets and other legal protections.  The Executive’s obligations under this
paragraph will continue beyond the termination of the Employment with the
Company, provided that the Company will reasonably compensate the Executive
after such termination for time or expenses actually spent by the Executive at
the Company’s request on such assistance. 
The Executive appoints the Secretary of the Company as the Executive’s
attorney-in-fact to execute documents on the Executive’s behalf for this
purpose.

 

(d)                                 Return of Confidential Material.  In the event of the Executive’s termination
of employment with the Company for any reason whatsoever, Executive agrees
promptly to surrender and deliver to the Company all records, materials,
equipment, drawings, documents and data of any nature pertaining to any
confidential information or to his/her employment, and Executive will not
retain or take with him or her any tangible materials or electronically stored
data, containing or pertaining to any confidential information that Executive
may produce, acquire or obtain access to during the course of his/her
employment.

 

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This Section 9 shall survive the termination
of this Agreement for any reason.  In the
event the Executive breaches this Section 9, the Company shall have right
to seek remedies permissible under applicable law.

 

10.                               CONFLICTING EMPLOYMENT.

 

The
Executive hereby agrees that, during the term of his/her employment with the Company, he or she will not engage in
any other employment, occupation, consulting or other business activity related
to the business in which the Company is now involved or becomes involved during
the term of the Executive’s employment, nor will the Executive engage in any
other activities that conflict with his/her obligations to the Company without
the prior written consent of the Company.

 

11.                               NON-COMPETITION AND NON-SOLICITATION

 

In consideration of the compensation provided to
the Executive by the Company hereunder, the adequacy of which is hereby
acknowledged by the parties hereto, the Executive agree that during the term of
the Employment and for a period of two years following the termination of the
Employment for whatever reason:

 

(a)                                 The Executive will not approach clients, customers or contacts of the
Company or other persons or entities introduced to the Executive in the
Executive’s capacity as a representative of the Company for the purposes of
doing business with such persons or entities which will harm the business
relationship between the Company and such persons and/or entities;

 

(b)                                 unless expressly consented to by
the Company, the Executive will not assume employment with or provide services
as a director or otherwise for any Competitor, or engage,
whether as principal, partner, licensor or otherwise, in any Competitor; and

 

(c)                                  unless expressly consented to by
the Company, the Executive will not seek directly or indirectly,
by the offer of alternative employment or other inducement whatsoever, to
solicit the services of any employee of the Company employed as at or after the
date of such termination, or in the year preceding such termination.

 

The provisions contained in Section 11 are
considered reasonable by the Executive and the Company.  In the event that any such provisions should
be found to be void under applicable laws but would be valid if some part
thereof was deleted or the period or area of application reduced, such
provisions shall apply with such modification as may be necessary to make them
valid and effective.

 

This Section 11
shall survive the termination of this Agreement for any reason.  In the event the Executive breaches this Section 11,
the Executive acknowledges that there will be no adequate remedy at law, and
the Company shall be entitled to injunctive relief and/or a decree for specific
performance, and such other relief as may be proper (including monetary damages
if appropriate).  In any event, the
Company shall have right to seek all remedies permissible under applicable law.

 

12.          WITHHOLDING
TAXES

 

Notwithstanding anything else herein to the
contrary, the Company may withhold (or cause there to be withheld, as the case
may be) from any amounts otherwise due or payable under or pursuant 

 

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to this Agreement such national, provincial,
local or any other income, employment, or other taxes as may be required to be
withheld pursuant to any applicable law or regulation.

 

13.          ASSIGNMENT

 

This Agreement is personal in its nature and
neither of the parties hereto shall, without the consent of the other, assign
or transfer this Agreement or any rights or obligations hereunder; provided,
however, that (i) the Company may assign or transfer this Agreement or any rights or
obligations hereunder to any member of the Group without such consent, and (ii) in the event of a merger,
consolidation, or transfer or sale of all or substantially all of the assets of
the company with or to any other individual(s) or entity, this Agreement
shall, subject to the provisions hereof, be binding upon and inure to the
benefit of such successor and such successor shall discharge and perform all
the promises, covenants, duties, and obligations of the Company hereunder.

 

14.          SEVERABILITY

 

If any provision of this Agreement or the
application thereof is held invalid, the invalidity shall not affect other
provisions or applications of this Agreement which can be given effect without
the invalid provisions or applications and to this end the provisions of this
Agreement are declared to be severable.

 

15.          ENTIRE
AGREEMENT

 

This Agreement
constitutes the entire agreement and understanding between the Executive and
the Company regarding the terms of the Employment and supersedes all prior or
contemporaneous oral or written agreements concerning such subject matter.  The Executive acknowledges that he or she has
not entered into this  Agreement in
reliance upon any representation, warranty or undertaking which is not set
forth in this Agreement.  Any amendment
to this Agreement must be in writing and signed by the Executive and the
Company.

 

16.          GOVERNING
LAW

 

This Agreement shall be
governed by and construed in accordance with the law of the State of New York,
USA, without regard to the conflicts of law principles.

 

17.          AMENDMENT

 

This
Agreement may not be amended, modified or changed (in whole or in part), except
by a formal, definitive written agreement expressly referring to this Agreement,
which agreement is executed by both of the parties hereto.

 

18.          WAIVER

 

Neither
the failure nor any delay on the part of a party to exercise any right, remedy,
power or privilege under this Agreement shall operate as a waiver thereof, nor
shall any single or partial exercise of any right, remedy, power or privilege
preclude any other or further exercise of the same or of any right, remedy,
power or privilege, nor shall any waiver of any right, remedy, power or
privilege with respect to any occurrence be construed as a waiver of such
right, remedy, power or privilege with respect to any other occurrence.  No waiver shall be effective unless it is in
writing and is signed by the party asserted to have granted such waiver.

 

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19.          NOTICES

 

All notices, requests, demands and other
communications required or permitted under this Agreement shall be in writing
and shall be deemed to have been duly given and made if (i) delivered by hand, (ii)
otherwise delivered against receipt therefor, (iii) sent by a recognized
courier with next-day or second-day delivery to the last known address of the
other party; or (iv) sent by e-mail with confirmation of receipt.

 

20.          COUNTERPARTS

 

This
Agreement may be executed in any number of counterparts, each of which shall be
deemed an original as against any party whose signature appears thereon, and
all of which together shall constitute one and the same instrument.  This Agreement shall become binding when one
or more counterparts hereof, individually or taken together, shall bear the
signatures of all of the parties reflected hereon as the signatories.  Photographic copies of such signed
counterparts may be used in lieu of the originals for any purpose.

 

21.          NO
INTERPRETATION AGAINST DRAFTER

 

Each party recognizes that this Agreement is a
legally binding contract and acknowledges that such party has had the
opportunity to consult with legal counsel of choice.  In any construction of the terms of this Agreement,
the same shall not be construed against either party on the basis of that party
being the drafter of such terms.

 

[Remainder of this page intentionally has been
intentionally left blank.]

 

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IN WITNESS WHEREOF, this Agreement
has been executed as of the date first written above.

 

	
   

  	
  Bona Film Group
  Limited

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Executive

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Signature:

  	
   

  
	
   

  	
  Name:exhibit10_1.htm

Exhibit 10.1

 

 

DISTRIBUTION WAIVER AGREEMENT

 

 

BY AND AMONG

 

 

ENTERPRISE PRODUCTS PARTNERS L.P.,

 

EPCO HOLDINGS, INC.

 

AND

 

THE EPD UNITHOLDER

 

 

 

DATED AS OF NOVEMBER 22, 2010

  

  

  

DISTRIBUTION WAIVER AGREEMENT

 

DISTRIBUTION WAIVER AGREEMENT, dated as of November 22, 2010 (this “Agreement”), by and among Enterprise Products Partners L.P., a Delaware limited partnership (the “Partnership”), on the one hand, and EPCO Holdings, Inc., a Delaware corporation (“EPCO Holdings”) and DFI Delaware Holdings, L.P., a Delaware limited partnership (the “EPD Unitholder”), on the other hand.

 

W I T N E S S E T H:

 

Whereas, the Partnership, Enterprise Products GP, LLC, Enterprise ETE LLC (“MergerCo”), Enterprise GP Holdings L.P. (“Holdings”) and EPE Holdings, LLC (“Holdings GP”) are entering into an Agreement and Plan of Merger, dated as of September 3, 2010 (as amended, supplemented, restated or otherwise modified from time to time, the “Merger Agreement”) pursuant to which, among other things, Holdings will merge with and into MergerCo (the “Merger”), with MergerCo as the surviving entity, and (i) each outstanding limited partner unit of Holdings will be converted into the right to receive the merger consideration specified therein and (ii) the general partner interest owned by Holdings GP will be converted into the right to receive the merger consideration specified therein; and

 

Whereas, as of the date hereof, the EPD Unitholder is the record or direct owner, and following the Merger will continue to be the record owner, of Common Units representing limited partner interests of the Partnership (“EPD Units”); and

 

Whereas, the EPD Unitholder is an indirect, wholly owned subsidiary of EPCO Holdings, which also directly owns EPD Units;

 

Whereas, in connection with the transactions contemplated by the Merger, the Partnership and the EPD Unitholder and EPCO Holdings have agreed to enter into this Agreement and abide by the covenants and obligations set forth herein with respect to the Designated Units (as hereinafter defined), and the execution and delivery of this Agreement is a condition to the closing of the Merger on the date hereof; and

 

Now Therefore, in consideration of the foregoing and the mutual representations, warranties, covenants and agreements herein contained, and intending to be legally bound hereby, the parties hereto agree as follows:

 

ARTICLE 1

 

GENERAL

 

1.1           Defined Terms. The following capitalized terms, as used in this Agreement, shall have the meanings set forth below.  Capitalized terms not otherwise defined herein shall have the meaning set forth in the Partnership Agreement.

 

“Designated Units” means the EPD Units subject to the terms of this Agreement, the applicable number of which for any applicable four-quarter period during the term of this

  

  

  

Agreement is specified in Section 2.1(b), and which are designated by the EPD Unitholder as such in its sole discretion in accordance with Section 2.1 of this Agreement, and any Replacement Units.

 

“Effective Date” means the effective date of the Merger.

 

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

 

“General Partner” means Enterprise Products GP, LLC, a Delaware limited liability company, and any other successor as general partner of the Partnership as applicable from time to time, including EPE Holdings, LLC, a Delaware limited liability company, after giving effect to the Merger.

 

“Lien” means any mortgage, lien, charge, restriction (including restrictions on transfer), pledge, security interest, option, right of first offer or refusal, preemptive right, put or call option, lease or sublease, claim, right of any third party, covenant, right of way, easement, encroachment or encumbrance.

 

“Partnership Agreement” means the Fifth Amended and Restated Agreement of Limited Partnership of the Partnership, dated effective as of August 8, 2005, as amended to date, and as may be amended hereafter from time to time, including the Sixth Amended and Restated Agreement of Limited Partnership of the Partnership, substantially in the form attached to the Merger Agreement, to be executed and delivered on the date hereof.  References to Sections of the Partnership Agreement used in this Agreement shall mean the Sixth Amended and Restated Agreement as executed and delivered on the date hereof.

 

“Person” means any individual, corporation, limited liability company, limited or general partnership, joint venture, association, joint stock company, trust, unincorporated organization, government or any agency or political subdivision thereof or any other entity, or any group comprised of two or more of the foregoing.

 

“Replacement Units” means any EPD Units designated by the EPD Unitholder pursuant to Section 5.1(b), by EPCO Holdings or any of its subsidiaries pursuant to Article 3 or by the Partnership pursuant to Section 5.3.

 

“Transfer” means, directly or indirectly, to sell, transfer, assign or similarly dispose of (by merger (including by conversion into securities or other consideration), by tendering into any tender or exchange offer, by testamentary disposition, by operation of law or otherwise), either voluntarily or involuntarily, or to enter into any contract, option or other arrangement or understanding with respect to the voting of or sale, transfer, assignment or similar disposition of (by merger, by tendering into any tender or exchange offer, by testamentary disposition, by operation of law or otherwise); provided, for purposes of clarification, a Transfer shall not include any existing or future pledges or security interests issued by the EPD Unitholder in connection with a bona fide credit agreement or loan.

 

“2011 Designated Units” means 30,610,000 Designated Units, which shall consist of the EPD Units identified pursuant to Section 2.1(a), or any Replacement Units therefor.

  

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“2012 Designated Units” means 26,130,000 Designated Units, which shall consist of the EPD Units identified pursuant to Section 2.1(a), or any Replacement Units therefor.

“2013 Designated Units” means 23,700,000 Designated Units, which shall consist of the EPD Units identified pursuant to Section 2.1(a), or any Replacement Units therefor.

“2014 Designated Units” means 22,560,000 Designated Units, which shall consist of the EPD Units identified pursuant to Section 2.1(a), or any Replacement Units therefor.

“2015 Designated Units” means 17,690,000 Designated Units, which shall consist of the EPD Units identified pursuant to Section 2.1(a), or any Replacement Units therefor.

 

ARTICLE 2

 

DESIGNATED UNITS; WAIVER OF DISTRIBUTIONS WITH RESPECT TO DESIGNATED UNITS

 

2.1           Designated Units; Waiver of Distributions with Respect to Designated Units.

 

(a)           Designated Units.  As soon as reasonably practicable after the date hereof, but in no event later than the earlier of (i) five Business Days after the date hereof or (ii) the next record date for distributions on EPD Units after the date of this Agreement, the EPD Unitholder agrees to designate specific EPD Units held in certificated or book-entry form as “Designated Units” subject to and in accordance with the terms of this Agreement.

 

(b)           Waiver of Distributions.  The EPD Unitholder hereby waives its right to receive distributions of Available Cash pursuant to Section 6.3 of the Partnership Agreement (“Distributions”) as follows:

 

(i)          the EPD Unitholder waives its right to receive Distributions paid during calendar year 2011 with respect to the 2011 Designated Units;

 

(ii)         the EPD Unitholder waives its right to receive Distributions paid during calendar year 2012 with respect to the 2012 Designated Units;

 

(iii)       the EPD Unitholder waives its right to receive Distributions paid during calendar year 2013 with respect to the 2013 Designated Units;

 

(iv)        the EPD Unitholder waives its right to receive Distributions paid during calendar year 2014 with respect to the 2014 Designated Units; and

 

(v)          the EPD Unitholder waives its right to receive Distributions paid during calendar year 2015 with respect to the 2015 Designated Units.

 

(c)           The EPD Unitholder agrees to use its best efforts to permit the Partnership and the transfer agent for the EPD Units to identify and designate the Designated

  

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Units in order to give effect to the provisions of this Agreement.

 

2.2           Tax Matters with Respect to Designated Units.

 

(a)           Capital Account with Respect to Designated Units.  Subject to Section 2.2(c) of this Agreement, immediately prior to the transfer of a Designated Unit by the EPD Unitholder (other than a transfer to an Affiliate unless the General Partner elects to have this Section 2.2 apply), the Capital Account maintained for such Person with respect to its Designated Units will (A) first, be allocated to the Designated Units to be transferred in an amount equal to the product of (x) the number of such Designated Units to be transferred and (y) the Per Unit Capital Amount for a Common Unit that is also not a Designated Unit, and (B) second, any remaining balance in such Capital Account will be retained by the transferor, regardless of whether it has retained any Designated Units.  Following any such allocation, the transferor’s Capital Account, if any, maintained with respect to the retained Designated Units, if any, will have a balance equal to the amount allocated under clause (B) hereinabove, and the transferee’s Capital Account established with respect to the transferred Designated Units will have a balance equal to the amount allocated under clause (A) hereinabove.

 

(b)           Allocations.  Except as otherwise provided in this Agreement, all items of Partnership income, gain, loss, deduction and credit, including Unrealized Gain or Unrealized Loss to be allocated to the Partners pursuant to the Partnership Agreement, shall be allocated to the Designated Units to the same extent as such items would be allocated if such Designated Units were Common Units then Outstanding that were not also Designated Units.  For the avoidance of doubt, Section 6.1(c)(iii) of the Partnership Agreement shall apply to Designated Units held by the EPD Unitholder and, for the purposes of that provision, the holders of Common Units of the Partnership that are not also Designated Units shall be treated as receiving distributions of cash that are greater than the amounts of cash distributed to the EPD Unitholder (on a per Unit basis) as a result of the distributions waived by the EPD Unitholder pursuant to Section 2.1 of this Agreement.

 

(c)           Special Provisions Relating to the Designated Units. The EPD Unitholder shall not be permitted to Transfer a Designated Unit other than as set forth in Section 5.1(a) until such time as the General Partner determines, based on advice of counsel, that the Designated Unit should have, as a substantive matter, like intrinsic economic and federal income tax characteristics of an Initial Common Unit.  In connection with the condition imposed by this Section 2.2(c), the General Partner shall take whatever steps are required to provide economic uniformity to the Designated Units in preparation for a Transfer of such Common Units, including the application of Sections 2.2(a) and 2.2(b) of this Agreement; provided, however, that no such steps may be taken that would have a material adverse effect on the other Unitholders of the Partnership holding Common Units.

  

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ARTICLE 3

 

PERFORMANCE GUARANTEE BY EPCO HOLDINGS

 

EPCO Holdings hereby agrees that in the event any Designated Units (including, in any case, any EPD Units previously designated as Designated Units by EPCO Holdings or any of its subsidiaries pursuant to Article 3) are Transferred in violation of Section 5.1(a) or foreclosed or sold in connection with a bona fide loan pursuant to Section 5.1(a) (in each case as applied to the EPD Unitholder or to EPCO Holdings or any of its subsidiaries pursuant to this Article 3) (such Designated Units so Transferred, foreclosed or sold, the “Specified Units”), and the EPD Unitholder does not immediately designate other EPD Units owned by it to be Designated Units hereunder, EPCO Holdings shall immediately designate as Designated Units hereunder a number of EPD Units owned by it, or cause a subsidiary of EPCO Holdings to designate as Designated Units hereunder a number of EPD Units owned by it, equal to the number of Specified Units, and shall agree (or cause its subsidiary to agree, as applicable) to become bound to the terms of this Agreement with respect to such Designated Units to the same extent as the EPD Unitholder.  To the extent that EPCO Holdings and its subsidiaries do not own a sufficient number of EPD Units that are not Designated Units at such time upon such event to comply with the prior sentence, EPCO Holdings agrees to acquire or cause a subsidiary of EPCO Holdings to acquire a sufficient number of additional EPD Units to so comply and to designate such EPD Units as Designated Units in accordance with this Agreement.  The foregoing shall not relieve the EPD Unitholder from any of its obligations under this Agreement or any liabilities to the Partnership for any damages or losses suffered by the Partnership as a result of the EPD Unitholder’s breach of this Agreement.

 

ARTICLE 4

 

REPRESENTATIONS AND WARRANTIES

 

4.1           Representations and Warranties of the EPD Unitholder and EPCO Holdings.  The EPD Unitholder and EPCO Holdings (except to the extent otherwise provided herein) each hereby represents and warrants to the Partnership as follows:

 

(a)           Organization; Authorization; Validity of Agreement; Necessary Action.  EPD Unitholder and EPCO Holdings each has the requisite power and authority and/or capacity to execute and deliver this Agreement, to carry out his or its obligations hereunder and to consummate the transactions contemplated hereby.  The execution and delivery by the EPD Unitholder and EPCO Holdings of this Agreement, the performance by it of the obligations hereunder and the consummation of the transactions contemplated hereby have been duly and validly authorized by EPD Unitholder and EPCO Holdings and no other actions or proceedings on the part of EPD Unitholder or EPCO Holdings to authorize the execution and delivery of this Agreement, the performance by EPD Unitholder or EPCO Holdings of the obligations hereunder or the consummation of the transactions contemplated hereby are required.  This Agreement has been duly executed and delivered by EPD Unitholder and EPCO Holdings and, assuming the due authorization, execution and delivery

  

5

  

of this Agreement by the Partnership, constitutes a legal, valid and binding agreement of EPD Unitholder and EPCO Holdings, enforceable against it in accordance with its terms, subject to bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and similar laws of general applicability relating to or affecting creditors’ rights and to general equitable principles.

 

(b)           Ownership. EPD Unitholder legally owns the EPD Units to be designated as Designated Units, and each Designated Unit owned by EPD Unitholder from the date hereof through and on the date this Agreement is terminated pursuant to Section 6.1 will be legally owned by EPD Unitholder.

 

(c)           No Violation.  Neither the execution and delivery of this Agreement by EPD Unitholder or EPCO Holdings nor the performance by EPD Unitholder or EPCO Holdings of its obligations under this Agreement will (A) result in a violation or breach of or conflict with any provisions of, or constitute a default (or an event which, with notice or lapse of time or both, would constitute a default) under, or result in the termination, cancellation of, or give rise to a right of purchase under, or accelerate the performance required by, or result in a right of termination or acceleration under, or result in the creation of any Lien upon any of the properties, rights or assets, including but not limited to the EPD Units to be designated as Designated Units, owned by EPD Unitholder or EPCO Holdings or any of its subsidiaries, or result in being declared void, voidable, or without further binding effect, or otherwise result in a detriment to EPD Unitholder, EPCO Holdings or any of its subsidiaries under any of the terms, conditions or provisions of any note, bond, mortgage, indenture, deed of trust, license, contract, lease, agreement or other instrument or obligation of any kind to which EPD Unitholder, EPCO Holdings or any of its subsidiaries is a party or by which EPD Unitholder or EPCO Holdings or any of its subsidiaries or any of their respective properties, rights or assets may be bound, (B) violate any judgments, decrees, injunctions, rulings, awards, settlements, stipulations or orders (collectively, “Orders”) or laws applicable to EPD Unitholder, EPCO Holdings or any of its subsidiaries or any of their respective properties, rights or assets or, (C) result in a violation or breach of or conflict with its organizational and governing documents of it or any of its subsidiaries.

 

(d)           Consents and Approvals.  No consent, approval, Order or authorization of, or registration, declaration or filing with, any governmental authority is necessary to be obtained or made by EPD Unitholder or EPCO Holdings in connection with EPD Unitholder’s or EPCO Holdings’ execution, delivery and performance of this Agreement or the consummation by EPD Unitholder or EPCO Holdings of the transactions contemplated hereby, except for any reports under Sections 13(d) and 16 of the Exchange Act as may be required in connection with this Agreement and the transactions contemplated hereby.

 

(e)           Reliance by the Partnership.  The EPD Unitholder and EPCO Holdings each understands and acknowledges that the Partnership is entering into the Merger Agreement in reliance upon EPD Unitholder’s and EPCO Holdings’ execution and delivery of this Agreement and the representations, warranties, covenants and obligations of each of EPD Unitholder and EPCO Holdings contained herein.

  

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4.2           Representations and Warranties of the Partnership.  The Partnership hereby represents and warrants to the EPD Unitholder and EPCO Holdings that the execution and delivery of this Agreement by the Partnership and the consummation of the transactions contemplated hereby have been duly authorized by all necessary action on the part of Enterprise Products GP, LLC, the general partner of the Partnership.

 

ARTICLE 5

 

OTHER COVENANTS

 

5.1           Prohibition on Transfers; Other Actions.

 

(a)           Within any period during which EPD waives Distributions with respect to a Designated Unit pursuant to Section 2.1, the EPD Unitholder hereby agrees not to (i) Transfer any Designated Unit, beneficial ownership thereof or any other interest therein; (ii) enter into any agreement, arrangement or understanding, or take any other action, that violates or conflicts with or would reasonably be expected to violate or conflict with, or result in or give rise to a violation of or conflict with, EPD Unitholder’s representations, warranties, covenants and obligations under this Agreement; or (iii) take any action that could restrict or otherwise affect EPD Unitholder’s legal power, authority and right to comply with and perform his or its covenants and obligations under this Agreement; provided, the foregoing shall not include or prohibit Transfers resulting from the foreclosure or sale of Designated Units made by a lender pursuant to any pledges or security interests relating to existing or future bona fide loans to EPD Unitholder that do not affect EPD Unitholder’s legal power, authority and right to comply with and perform his or its covenants and obligations under this Agreement.  Any Transfer in violation of this provision shall be null and void.

 

(b)           In the event of any Transfer resulting from the foreclosure or sale of Designated Units made by a lender pursuant to any bona fide loans to EPD Unitholder, EPD Unitholder hereby agrees to designate immediately an equal number of EPD Units to constitute the Designated Units required to be owned by it hereunder.  To the extent EPD Unitholder does not own a sufficient number of EPD Units that are not Designated Units, to comply with its obligations under the prior sentence, at such time upon such event, EPD Unitholder agrees to acquire a sufficient number of additional EPD Units to so comply as promptly as practicable, and to designate such EPD Units as Designated Units in accordance with this Agreement.

 

5.2           Further Assurances.  From time to time, at the other party’s request and without further consideration, the parties hereto shall execute and deliver such additional documents and take all such further action as may be reasonably necessary or advisable to effect the actions and consummate the transactions contemplated by this Agreement.

 

5.3           Set Off.  In the event that EPD Unitholder or EPCO Holdings fails to own and to designate or cause to be designated EPD Units as Designated Units in accordance with this Agreement, the Partnership shall be entitled to designate and to withhold distributions paid with respect to any other EPD Units owned by the EPD Unitholder or EPCO Holdings up to an amount equal to the distributions payable with respect to the number of EPD Units required to be

  

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designated as Designated Units in accordance with this Agreement.  The foregoing in this Section 5.3 shall be in addition to any other remedies available to the Partnership and shall not limit the Partnership’s remedies for any other damages or losses incurred by it in connection with such breach by the EPD Unitholder or EPCO Holdings.

 

ARTICLE 6

 

MISCELLANEOUS

 

6.1           Termination.  This Agreement shall remain in effect until the earliest to occur of (i) January 1, 2016 and (ii) the written agreement of the EPCO Holdings, EPD Unitholder and the Partnership to terminate this Agreement.  After the occurrence of such applicable event, all rights and obligations of the parties hereto under this Agreement shall terminate and be of no further force or effect, except the provisions of Section 2.2 shall survive such termination until satisfaction of the conditions imposed by Section 2.2(c) with respect to each Designated Unit.  Nothing in this Section 6.1 and no termination of this Agreement shall relieve or otherwise limit any party of liability for any breach of this Agreement occurring prior to such termination.

 

6.2           No Ownership Interest.

 

(a)           Nothing contained in this Agreement shall be deemed to vest in the Partnership any direct or indirect ownership or incidence of ownership of or with respect to any Designated Unit.  All rights, ownership and economic benefit relating to the Designated Units shall remain vested in and belong to the EPD Unitholder, and the Partnership shall have no authority to direct the EPD Unitholder in the voting or disposition of any of the Designated Units, except as otherwise provided herein.

 

6.3           Notices.  All notices and other communications hereunder shall be in writing and shall be deemed given when delivered personally or by telecopy (upon telephonic confirmation of receipt) or on the first Business Day following the date of dispatch if delivered by a recognized next day courier service.  All notices hereunder shall be delivered as set forth below or pursuant to such other instructions as may be designated in writing by the party to receive such notice:

 

If to the Partnership, to:

 

Enterprise Products Partners L.P.

1100 Louisiana, 10th Floor

Houston, Texas 77002

Attention: President and Chief Executive Officer

With copies to:

 

Andrews Kurth LLP

600 Travis, Suite 4200

Houston, Texas 77002

Attention: David C. Buck

  

8

  

If to the EPD Unitholder or EPCO Holdings, to:

 

1100 Louisiana, 10th Floor

Houston, Texas 77002

Attention: President and Chief Executive Officer

With copies to:

 

Enterprise Products Company

1100 Louisiana, 10th Floor

Houston, Texas 77002

Attention: Chief Legal Officer

6.4           Interpretation.  The words “hereof,” “herein” and “hereunder” and words of similar import when used in this Agreement shall refer to this Agreement as a whole and not to any particular provision of this Agreement, and Section references are to this Agreement unless otherwise specified.  Whenever the words “include,” “includes” or “including” are used in this Agreement, they shall be deemed to be followed by the words “without limitation.”  The meanings given to terms defined herein shall be equally applicable to both the singular and plural forms of such terms.  The headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement.  This Agreement is the product of negotiation by the parties having the assistance of counsel and other advisers.  It is the intention of the parties that this Agreement not be construed more strictly with regard to one party than with regard to the others.

 

6.5           Counterparts.  This Agreement may be executed by facsimile and in counterparts, all of which shall be considered one and the same agreement and shall become effective when counterparts have been signed by each of the parties and delivered to the other parties, it being understood that all parties need not sign the same counterpart.

 

6.6           Entire Agreement.  This Agreement and the Partnership Agreement embody the complete agreement and understanding among the parties hereto with respect to the subject matter hereof and supersede and preempt any prior understandings, agreements or representations by or among the parties, written and oral, that may have related to the subject matter hereof in any way.

 

6.7           Governing Law; Consent to Jurisdiction; Waiver of Jury Trial.

 

(a)           This Agreement shall be governed by and construed in accordance with the laws of the State of Delaware, regardless of the laws that might otherwise govern under applicable principles of conflicts of laws thereof.

 

(b)           Each of the parties hereto (i) consents to submit itself to the personal jurisdiction of the Court of Chancery of the State of Delaware (and any appellate court of the State of Delaware) and the Federal courts of the United States of America located in the State of Delaware in the event any dispute arises out of this Agreement or the transactions contemplated by this Agreement, (ii) agrees that it will not attempt to deny or defeat such

  

9

  

personal jurisdiction by motion or other request for leave from any such court and (iii) agrees that it will not bring any action relating to this Agreement or the transactions contemplated by this Agreement in any court other than the Court of Chancery of the State of Delaware or a Federal court of the United States of America located in the State of Delaware. Without limiting the foregoing, each party agrees that service of process on such party as provided in Section 6.3 shall be deemed effective service of process on such party.

 

(c)           EACH PARTY HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT AND ANY OF THE AGREEMENTS DELIVERED IN CONNECTION HEREWITH OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY.  EACH PARTY CERTIFIES AND ACKNOWLEDGES THAT (A) NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE EITHER OF SUCH WAIVERS, (B) IT UNDERSTANDS AND HAS CONSIDERED THE IMPLICATIONS OF SUCH WAIVERS, (C) IT MAKES SUCH WAIVERS VOLUNTARILY, AND (D) IT HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 6.7.

 

6.8           Amendment; Waiver.  This Agreement may not be amended except by an instrument in writing signed by the Partnership, the EPD Unitholder and EPCO Holdings.  Each party may waive any right of such party hereunder by an instrument in writing signed by such party and delivered to the Partnership, the EPD Unitholder and EPCO Holdings.

 

6.9           Remedies.

 

(a)           Each party hereto acknowledges that monetary damages would not be an adequate remedy in the event that any covenant or agreement in this Agreement is not performed in accordance with its terms, and it is therefore agreed that, in addition to and without limiting any other remedy or right it may have, the non-breaching party will have the right to an injunction, temporary restraining order or other equitable relief in any court of competent jurisdiction enjoining any such breach and enforcing specifically the terms and provisions hereof.  Each party hereto agrees not to oppose the granting of such relief in the event a court determines that such a breach has occurred, and to waive any requirement for the securing or posting of any bond in connection with such remedy.

 

(b)           All rights, powers and remedies provided under this Agreement or otherwise available in respect hereof at law or in equity shall be cumulative and not alternative, and the exercise or beginning of the exercise of any thereof by any party shall not preclude the simultaneous or later exercise of any other such right, power or remedy by such party.

 

6.10        Severability.  Any term or provision of this Agreement which is determined by a court of competent jurisdiction to be invalid or unenforceable in any jurisdiction shall, as to that jurisdiction, be ineffective to the extent of such invalidity or unenforceability without rendering

  

10

  

invalid or unenforceable the remaining terms and provisions of this Agreement or affecting the validity or enforceability of any of the terms or provisions of this Agreement in any other jurisdiction, and if any provision of this Agreement is determined to be so broad as to be unenforceable, the provision shall be interpreted to be only so broad as is enforceable, in all cases so long as neither the economic nor legal substance of the transactions contemplated hereby is affected in any manner adverse to any party or its equityholders.  Upon any such determination, the parties shall negotiate in good faith in an effort to agree upon a suitable and equitable substitute provision to effect the original intent of the parties as closely as possible and to the end that the transactions contemplated hereby shall be fulfilled to the maximum extent possible.

 

6.11         Action by the Partnership.  No waiver, consent or other action by or on behalf of the Partnership pursuant to or as contemplated by this Agreement shall have any effect unless such waiver, consent or other action is expressly approved by the Audit, Conflicts and Governance Committee of the General Partner’s board of directors.

 

6.12         Successors and Assigns; Third Party Beneficiaries. Neither this Agreement nor any of the rights or obligations of any party under this Agreement shall be assigned, in whole or in part (by operation of law or otherwise), by any party without the prior written consent of the other parties hereto.  Subject to the foregoing, this Agreement shall bind and inure to the benefit of and be enforceable by the parties hereto and their respective successors and permitted assigns.  Nothing in this Agreement, express or implied, is intended to confer on any Person other than the parties hereto or the parties’ respective successors and permitted assigns any rights, remedies, obligations or liabilities under or by reason of this Agreement.

 

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In Witness Whereof, the parties hereto have caused this Agreement to be signed (where applicable, by their respective officers or other authorized Person thereunto duly authorized) as of the date first written above.

 

	  	
Partnership:

	  	  
	  	  
	  	
ENTERPRISE PRODUCTS PARTNERS L.P.

	  	  
	  	
By: ENTERPRISE PRODUCTS GP, LLC,

	  	
its general partner

	  	  	  
	  	  	  
	  	
By:

	
/s/ Michael A. Creel

	
 

	  	
Name:

	
Michael A. Creel

	  	
Title:

	
President and Chief Executive Officer

 

 

Signature Page to Distribution Waiver Agreement

  

  

  

 

	  	
EPD Unitholder:

	  	  
	  	
DFI DELAWARE HOLDINGS, L.P.

	  	  
	  	
By: DFI DELAWARE GENERAL, LLC,

	  	
its general partner

	  	  
	  	  
	  	
By:

	
/s/ Darryl E. Smith

	
 

	  	
Name:

	
Darryl E. Smith

	  	
Title:

	
Manager

	  	  
	  	  
	  	
EPCO Holdings:

	  	  
	  	
EPCO HOLDINGS, INC.

	  	  
	  	  
	  	
By:

	
/s/ W. Randall Fowler

	
 

	  	
Name:

	
W. Randall Fowler

	  	
Title:

	
President and Chief Executive Officer

 

 

Signature Page to Distribution Waiver Agreement

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