Document:

Agreement of Limited Partnership

 Exhibit 10.2 
  
 AGREEMENT OF LIMITED PARTNERSHIP 
  
 OF 
  
 EPE Unit L.P. 
  
 Dated as of 
  
 August 23, 2005 

 TABLE OF CONTENTS 
  

					
	 	  	ARTICLE I	  	 
			
	 	  	DEFINITIONS	  	 
			
	 1.01
	  	Certain Definitions	  	1
	 1.02
	  	Other Definitions	  	5
			
	 	  	ARTICLE II	  	 
			
	 	  	ORGANIZATIONAL MATTERS	  	 
			
	 2.01
	  	Formation	  	5
	 2.02
	  	Name	  	5
	 2.03
	  	Registered Office; Registered Agent; Other Offices	  	6
	 2.04
	  	Purposes	  	6
	 2.05
	  	Certificate; Foreign Qualification	  	6
	 2.06
	  	Term	  	6
	 2.07
	  	Merger or Consolidation	  	6
			
	 	  	ARTICLE III	  	 
			
	 	  	PARTNERS; DISPOSITIONS OF INTERESTS	  	 
			
	 3.01
	  	Partners	  	6
	 3.02
	  	Representations and Warranties	  	7
	 3.03
	  	Restrictions on the Disposition of an Interest	  	7
	 3.04
	  	Additional Partners	  	9
	 3.05
	  	Interests in a Partner	  	9
	 3.06
	  	Spouses of Partners	  	9
	 3.07
	  	Vesting of Limited Partners	  	9
			
	 	  	ARTICLE IV	  	 
			
	 	  	CAPITAL CONTRIBUTIONS	  	 
			
	 4.01
	  	Initial and Additional Capital Contributions	  	10
	 4.02
	  	Return of Contributions	  	10
	 4.03
	  	Advances by General Partner	  	10
	 4.04
	  	Capital Accounts	  	10
			
	 	  	ARTICLE V	  	 
			
	 	  	ALLOCATIONS AND DISTRIBUTIONS	  	 
			
	 5.01
	  	Allocations	  	11
	 5.02
	  	Income Tax Allocations	  	14
	 5.03
	  	Distributions of Cashflow from EPE Units	  	14
	 5.04
	  	Distributions of Proceeds from Sales of EPE Units	  	14

  

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	 5.05
	  	Restrictions on Distributions of EPE Units.	  	15
			
	 	  	ARTICLE VI	  	 
			
	 	  	MANAGEMENT AND OPERATION	  	 
			
	 6.01
	  	Management of Partnership Affairs	  	15
	 6.02
	  	Duties and Obligations of General Partner	  	16
	 6.03
	  	Release and Indemnification	  	16
	 6.04
	  	Power of Attorney	  	17
			
	 	  	ARTICLE VII	  	 
			
	 	  	RIGHTS OF OTHER PARTNERS	  	 
			
	 7.01
	  	Information	  	18
	 7.02
	  	Limitations	  	18
	 7.03
	  	Limited Liability	  	18
	 	  	ARTICLE VIII	  	 
			
	 	  	TAXES	  	 
			
	 8.01
	  	Tax Returns	  	19
	 8.02
	  	Tax Elections	  	19
	 8.03
	  	Tax Matters Partner	  	19
			
	 	  	ARTICLE IX	  	 
			
	 	  	BOOKS, RECORDS, REPORTS, AND BANK ACCOUNTS	  	 
			
	 9.01
	  	Maintenance of Books	  	20
	 9.02
	  	Financial Statements	  	20
	 9.03
	  	Bank Accounts	  	20
			
	 	  	ARTICLE X	  	 
			
	 	  	WITHDRAWAL, BANKRUPTCY, REMOVAL, ETC.	  	 
			
	 10.01
	  	Withdrawal, Bankruptcy, Etc. of General Partner	  	20
	 10.02
	  	Conversion of Interest	  	21
			
	 	  	ARTICLE XI	  	 
			
	 	  	DISSOLUTION, LIQUIDATION, AND TERMINATION	  	 
			
	 11.01
	  	Dissolution	  	21
	 11.02
	  	Liquidation and Termination	  	22
	 11.03
	  	Cancellation of Certificate	  	23
			
	 	  	ARTICLE XII	  	 
			
	 	  	GENERAL PROVISIONS	  	 
			
	 12.01
	  	Offset	  	23

  

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	 12.02
	  	Notices	  	23
	 12.03
	  	Entire Agreement; Supersedure	  	24
	 12.04
	  	Effect of Waiver or Consent	  	24
	 12.05
	  	Amendment or Modification	  	24
	 12.06
	  	Binding Effect; Joinder of Additional Parties	  	24
	 12.07
	  	Construction	  	24
	 12.08
	  	Further Assurances	  	25
	 12.09
	  	Indemnification	  	25
	 12.10
	  	Waiver of Certain Rights	  	25
	 12.11
	  	Counterparts	  	25
	 12.12
	  	Dispute Resolution	  	25
	 12.13
	  	No Effect on Employment Relationship	  	28
	 12.14
	  	Legal Representation	  	28

  
  

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 AGREEMENT OF LIMITED PARTNERSHIP 
 OF 
 EPE UNIT L.P. 
  
 This Agreement of Limited Partnership (this
“Agreement”) of EPE Unit L.P., a Delaware limited partnership (the “Partnership”), is made and entered into as of August 23, 2005 by and among the Partners (as defined below). 

 
 RECITALS 
  
 FOR AND IN CONSIDERATION OF the mutual covenants, rights, and obligations set
forth herein, the benefits to be derived therefrom, and other good and valuable consideration, the receipt and sufficiency of which each Partner acknowledges and confesses, the Partners agree as follows: 
  
 ARTICLE I 
  
 DEFINITIONS 
  
 1.01 Certain Definitions. As used in this Agreement, the following terms have the following respective meanings: 
  
 “Act” means the Delaware Revised
Uniform Limited Partnership Act and any successor statute, as amended from time to time. 
  
 “Adjusted Capital Account” means, with respect to any Partner, the balance in such Partner’s Capital Account
after giving effect to the following adjustments: 
  
 (a) Credit to such Capital Account any amounts that such Partner is obligated or deemed obligated to contribute pursuant to the penultimate sentences of Sections 1.704 2(g)(1) and 1.704 2(i)(5) of the Regulations; and 
  
 (b) Debit to such Capital Account the items described in
Sections 1.704 1(b)(2)(ii)(d)(4), 1.704-1(b)(2)(ii)(d)(5) and 1.704 1(b)(2)(ii)(d)(6) of the Regulations. 
  
 The foregoing definition of Adjusted Capital Account is intended to comply with the provisions of Section 1.704-1(b)(2)(ii)(d) of the
Regulations and shall be interpreted consistently therewith. 
  
 “Adjustment Date” means the (i) the fifth Business Day following the payment date with respect to each distribution made by EPE with respect to EPE units, and (ii) the fifth Business Day
following the receipt of any proceeds by the Partnership from the disposition of EPE units. 
  
 “Affiliate” means with respect to any Person any other Person that directly or indirectly through one or more
intermediaries, controls or is controlled by, or is under 
  

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 common control with, the Person specified. For the purpose of this definition, “control” shall
mean the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of a Person, whether through the ownership of voting securities, by contract or otherwise. 
  
 “Agreement” has the meaning given it
in the introductory paragraph hereof. 
  
 “Applicable Percentage” means with respect to a disposition of less than all the EPE Units owned by the Partnership, the quotient (expressed as a percentage) of the number of EPE Units held by the Partnership
immediately after such disposition divided by the number of EPE Units held by the Partnership immediately before such disposition. 
  
 “Bankrupt Partner” means any Partner (whether a General Partner or a Limited Partner) with respect to which an
event of the type described in section 17-402(a)(4) or (5) of the Act (or any equivalent successor provision) shall have occurred, subject to the lapsing of any period of time therein specified. 
  
 “Business Day” means any day other
than a Saturday, Sunday, or day on which commercial banks in the State of Texas are authorized or required to be closed for business. 
  
 “Capital Account” means the account maintained for each Partner pursuant to Section 4.04. 
  
 “Capital Contribution” means any
contribution by a Partner to the capital of the Partnership. 
  
 “Certificate” means the Certificate of Limited Partnership of the Partnership referred to in Section 2.05, as it may be amended or restated from time to time. 
  
 “Change of Control” means Duncan
shall (i) cease to own, directly or indirectly, at least a majority of the equity interests in the General Partner or the general partner of EPE, or (ii) shall cease to have the ability to elect, directly or indirectly, at least a majority of the
directors of the general partner of EPD. 
  
 “Class A Capital Base” means $51,000,000, adjusted on each Adjustment Date as follows: 
  
 (i) increased by the Class A Preference Return that has accrued since the previous Adjustment Date (or in the case of the first Adjustment
Date, since the Closing Date); and 
  
 (ii)
decreased by all distributions made to the Class A Limited Partner since the previous Adjustment Date (or in the case of the first Adjustment Date, since the Closing Date); and 
  
 “Class A Limited Partner” means Duncan Family Interests, Inc., a Delaware
corporation, and its successors and assigns. 
  

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 “Class A Preference Return” means the sum of the amounts
determined for each day, equal to the Class A Preference Return Rate multiplied by the Class A Capital Base. 
  
 “Class A Preference Return Amount” means the aggregate Class A Preference Return minus all prior distributions to
the Class A Limited Partner pursuant to Sections 5.03(a) and 5.04(a). 
  
 “Class A Preference Return Rate” means 6 1⁄4% per annum divided by 365 or 366 days, as the case may be during such calendar year. 
  
 “Class B Limited Partner” means any
Person executing (by power of attorney or otherwise) this Agreement as of the date hereof as a Class B Limited Partner or hereafter admitted to the Partnership as a Class B Limited Partner as herein provided, but shall not include any Person who has
ceased to be a Class B Limited Partner in the Partnership. 
  
 “Class B Percentage Interest” means with respect to each Class B Limited Partner the quotient (expressed as a percentage) of (i) such Class B Limited Partner’s Sharing Points, divided by
(ii) the Sharing Points of all Class B Limited Partners. For purposes of calculating the Class B Percentage Interest, Sharing Points attributable to interests in the Partnership that are forfeited pursuant to Section 3.07 shall be ignored.

  
 “Closing Date” means
the date on which EPE Units are sold to certain underwriters in connection with EPE’s initial public offering. 
  
 “Code” means the Internal Revenue Code of 1986, and any successor statute, as amended from time to time.

  
 “Default Interest
Rate” means a varying per annum rate equal at any given time to the lesser of (a) four percentage points in excess of the General Interest Rate and (b) the maximum rate permitted by applicable law. 
  
 “Disability” means the event whereby
a Limited Partner becomes entitled to receive long-term disability benefits under the long-term disability plan of the General Partner or any of its Affiliates. 
  
 “Dispose,” “Disposing,” or “Disposition” means a sale,
assignment, transfer, exchange, mortgage, pledge, grant of a security interest, or other disposition or encumbrance, or the acts thereof, other than by divorce, legal separation or other dissolution of a Partner’s marriage. 
  
 “Duncan” means, collectively,
individually or in any combination, Dan L. Duncan, his wife, descendants, heirs and/or legatees and/or distributees of Dan L. Duncan’s estate, and/or trusts established for the benefit of his wife, descendants, such legatees and/or distributees
and/or their respective descendants, heirs, legatees and distributees. 
  
 “EPD” means Enterprise Products Partners L.P., a Delaware limited partnership. 
  

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 “EPE” means Enterprise GP Holdings L.P., a Delaware limited
partnership. 
  
 “EPE
Units” means partnership units representing limited partner interests in EPE. 
  
 “General Interest Rate” means a varying per annum rate equal at any given time to the lesser of (a) the interest
rate publicly quoted by J.P. Morgan Chase from time to time as its prime commercial or similar reference interest rate, and (b) the maximum rate permitted by applicable law. 
  
 “General Partner” means EPCO, Inc., a Texas corporation, or any Person hereafter
admitted to the Partnership as a general partner as herein provided, but shall not include any Person who has ceased to be a general partner in the Partnership. 
  
 “Limited Partner” means the Class A Limited Partner or any Class B Limited Partner.

  
 “Net Income” and
“Net Loss” mean, respectively, subject to Section 4.04, an amount equal to the Partnership’s taxable income or loss determined in accordance with Code Section 703(a) (for this purpose, all items of income, gain, loss, or
deduction required to be stated separately pursuant to Code Section 703(a)(1) shall be included in taxable income or loss), with the following adjustments: 
  
 (a) Any income of the Partnership that is exempt from federal income tax and not otherwise taken into account in computing Net Income or
Net Loss pursuant to this definition of Net Income and Net Loss shall be added to such taxable income or loss; 
  
 (b) Any expenditures of the Partnership described in Code Section 705(a)(2)(B) or treated as Code Section 705(a)(2)(B) expenditures
pursuant to Section 1.704 1(b)(2)(iv)(i) of the Regulations, and not otherwise taken into account in computing Net Income or Net Loss pursuant to this definition of Net Income and Net Loss, shall be subtracted from such taxable income or loss;

  
 (c) In the event the value of any Partnership
property is adjusted pursuant to Section 4.04 (i) such adjustment shall be taken into account as gain or loss from the disposition of such Partnership property for purposes of computing Net Income or Net Loss, (ii) if such property is subject to
depreciation, cost recovery, depletion or amortization, any further deductions for such depreciation, cost recovery, depletion or amortization attributable to such property shall be determined taking into account such adjustment, and (ii) in
determining the amount of any income, gain or loss attributable to the taxable disposition of such property such adjustment (and the related adjustments for depreciation, cost recovery, depletion or amortization) shall be taken into account;

  
 (d) To the extent an adjustment to the
adjusted tax basis of any Partnership Property pursuant to Code Section 734(b) is required, pursuant to Section 1.704 1(b)(2)(iv)(m)(4) of the Regulations, to be taken into account in determining Capital Accounts as a result of a Distribution other
than in liquidation of a Partner’s interest in the Partnership, the amount of such adjustment shall be treated as an item of gain (if the 
  

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 adjustment increases the basis of the asset) or loss (if the adjustment decreases such basis) from the
disposition of such Partnership Property and shall be taken into account for purposes of computing Net Income or Net Loss; and 
  
 (e) Any items that are allocated pursuant to Section 5.01(b) shall not be taken into account in computing Net Income or Net Loss.

  
 “Partner” means the
General Partner, the Class A Limited Partner or any Class B Limited Partner. 
  
 “Partnership” has the meaning given it in the introductory paragraph. 
  
 “Person” has the meaning given it in the Act. 
  
 “Qualifying Termination” means the termination of a Class B Limited Partner’s
employment with the General Partner and its Affiliates due to (i) death, (ii) receiving long-term disability benefits under the long-term disability plan of the General Partner or any of its Affiliates or (iii) retirement with the approval of the
General Partner on or after reaching age 60. 
  
 “Regulations” means the regulations promulgated under Section 704 of the Code. 
  
 “Required Interest” means one or more Class B Limited Partners having among them more than 50% of the Class B
Percentage Interests of all Limited Partners in their capacities as such. 
  
 “Sharing Points” means, with respect to each Class B Limited Partner, the number of Sharing Points granted by the General Partner to such Class B Limited Partner (which number is set forth on
the Power of Attorney executed by the Class B Limited Partner and delivered to the General Partner), as the same may be amended from time to time pursuant to the terms of this Agreement. 
  
 “Vesting Date” means the earliest of (i) the fifth anniversary of the date of this
Agreement, (ii) a Change of Control or (iii) dissolution of the Partnership. 
  
 1.02 Other Definitions. Other terms defined herein have the meanings so given them. 
  
 ARTICLE II 
  
 ORGANIZATIONAL MATTERS 
  
 2.01 Formation. The Persons executing this Agreement hereby form a limited partnership for the purposes hereinafter set forth under and pursuant to the Act. 
  
 2.02 Name. The name of the Partnership is “EPE Unit L.P.”
and all Partnership business shall be conducted in such name or such other name or names that comply with applicable law as the General Partner may designate from time to time. 
  

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 2.03 Registered Office; Registered Agent; Other Offices. The registered office of the Partnership
in the State of Delaware 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 Delaware or any other jurisdiction shall be such Person or Persons
as the General Partner may designate from time to time. 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 acquire, own, sell, exchange or otherwise dispose of EPE Units, and to enter into, make and
perform all contracts and other undertakings and to engage in any other business, activity or transaction that now or hereafter may be necessary, incidental, proper, advisable, or convenient, as determined by the General Partner, to accomplish the
foregoing purposes. 
  
 2.05 Certificate; Foreign
Qualification. The General Partner has executed and caused to be filed on August 16, 2005 with the Secretary of State of the State of Delaware a Certificate of Limited Partnership containing information required by the Act and such other
information as the General Partner deemed appropriate. Prior to conducting business in any jurisdiction other than Delaware, the General Partner shall cause the Partnership to comply, to the extent such 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 such jurisdiction. Upon the request of the General Partner,
each Partner shall execute, acknowledge, swear to, and deliver all certificates and other instruments conforming with this Agreement that are necessary or appropriate as determined by the General Partner to qualify, continue, and terminate the
Partnership as a limited partnership under the laws of the State of Delaware 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 6.04. 
  

2.06 Term. The term of this Partnership shall continue in existence until the close of Partnership business on the earliest to occur of (i) the
fiftieth anniversary of the date of this Agreement, and (ii) such earlier time as this Agreement may specify. 
  
 2.07 Merger or Consolidation. The Partnership may merge or consolidate with or into another business entity, or enter into an agreement to do so,
with the consent of the General Partner and a Required Interest. 
  
 ARTICLE III 
  
 PARTNERS; DISPOSITIONS OF
INTERESTS 
  
 3.01 Partners. The General Partner, the
Class A Limited Partner and the Class B Limited Partners of the Partnership are the Persons executing (by power of attorney or otherwise) this Agreement as of the date hereof as the General Partner, the Class A Limited Partner and the Class B
Limited Partners, respectively, each of which is admitted to the Partnership as the General Partner, the Class A Limited Partner or a Class B Limited Partner, as the case may be, effective as of the date hereof. 
  

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 3.02 Representations and Warranties. Each Partner hereby represents and warrants to the
Partnership and each other Partner that (a) if such Partner is a corporation, it is duly organized, validly existing, and in good standing under the laws of the jurisdiction of its incorporation and is duly qualified and in good standing as a
foreign corporation in the jurisdiction of its principal place of business (if not incorporated therein), (b) if such Partner is a trust, estate or other entity, it is duly formed, validly existing, and (if applicable) in good standing under the
laws of the jurisdiction of its formation, and if required by law is duly qualified to do business and (if applicable) in good standing in the jurisdiction of its principal place of business (if not formed therein), (c) such Partner has full
corporate, trust, or other applicable right, power and authority to enter into this Agreement and to perform its obligations hereunder and all necessary actions by the board of directors, trustees, beneficiaries, or other Persons necessary for the
due authorization, execution, delivery, and performance of this Agreement by such Partner have been duly taken, and such authorization, execution, delivery, and performance do not conflict with any other agreement or arrangement to which such
Partner is a party or by which it is bound, and (d) such Partner is acquiring its interest in the Partnership for investment purposes and not with a view to distribution thereof. 
  
 3.03 Restrictions on the Disposition of an Interest. (a) No Class B Limited Partner may Dispose of all or part of its
interest in the Partnership without the prior written consent (which may be given or withheld in its sole discretion) of the General Partner, and then only after Sections 3.03(c), (d) and (e) have been complied with, except that a Class B Limited
Partner may Dispose of all of its interest upon the death of such Class B Limited Partner or upon becoming a Bankrupt Partner, but in each case only after compliance with Sections 3.03(c), (d) and (e). Neither the General Partner nor the Class A
Limited Partner may Dispose of all or a part of its interest in the Partnership to a Person who is not an Affiliate of Duncan without the prior written consent of a Required Interest, and then only after Sections 3.03(c), (d) and (e) have been
complied with. 
  
 (b) Subject to the provisions of Sections
3.03(c), (d) and (e), a permitted transferee of all or a part of a Partner’s interest in the Partnership shall be admitted to the Partnership as a General Partner or a Limited Partner (as applicable) with, in the case of a Class B Limited
Partner, such Sharing Points (no greater than the Sharing Points of the Class B Limited Partner effecting such Disposition immediately prior thereto) as the Partner effecting such Disposition and such permitted transferee may agree. 
  
 (c) The Partnership shall not recognize for any purpose any purported
Disposition of an interest in the Partnership or distributions therefrom unless and until the provisions of this Section 3.03 shall have been satisfied and there shall have been delivered to the General Partner a document (i) executed by both the
Partner effecting such Disposition and the Person to which such interest or interest in distributions are to be Disposed, (ii) including the written acceptance by any Person to be admitted to the Partnership of all the terms and provisions of this
Agreement, such Person’s notice address, and an agreement by such Person to perform and discharge timely all of the obligations and liabilities in respect of the interest being obtained, (iii) setting forth, in the case of a Class B Limited
Partner, the Sharing Points of the Class B Limited Partner effecting such Disposition and the Person to which such interest is Disposed after such Disposition (which together shall total the Sharing Points of the Class B Limited Partner effecting
such Disposition prior thereto), (iv) containing a representation and 
  

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 warranty that such Disposition complied with all applicable laws and regulations (including securities laws) and a
representation and warranty by such Person that the representations and warranties in Section 3.02 are true and correct with respect to such Person. Each such Disposition and, if applicable, admission shall be effective as of the first day of the
calendar month immediately succeeding the month in which the General Partner shall receive such notification of Disposition and the other requirements of this Section 3.03 shall have been met unless the General Partner and the Partner affecting such
Disposition agree to a different effective date; provided, however, that if there shall be only one General Partner and such Disposition or admission and, as a result of such Disposition such General Partner would cease to be a General Partner, such
permitted transferee shall be deemed admitted as a General Partner immediately prior to such cessation. 
  
 (d) Notwithstanding any provision of this Agreement to the contrary, the right of any Partner to Dispose of an interest in the Partnership or
distributions therefrom or of any Person to be admitted to the Partnership in connection therewith shall not exist or be exercised (i) unless and until the Partnership shall have received a favorable opinion of the Partnership’s legal counsel
or of other legal counsel acceptable to the General Partner to the effect that such Disposition or admission is not required to be registered under the Securities Act of 1933 or any other applicable securities laws, and such Disposition or admission
would not cause the Partnership to become an “investment company” required to register under the Investment Company Act of 1940, and (ii) unless such Disposition or admission would not result in the Partnership’s being treated as an
association taxable as a corporation for federal income tax purposes or as a publicly traded partnership as defined in section 7704 of the Code. The General Partner, however, may waive the requirements of Section 3.03(d)(i). 
  
 (e) All costs (including, without limitation, the legal fees incurred in
connection with the obtaining of the legal opinions referred to in Section 3.03(d)) incurred by the Partnership in connection with any Disposition or admission of a Person to the Partnership pursuant to this Section 3.03 shall be borne and paid by
the Partner effecting such Disposition within 10 days after the receipt by such Person of the Partnership’s invoice for the amount due. 
  
 (f) In the event of a Disposition of an interest in the Partnership pursuant to the death of a Limited Partner that would, in the opinion of the
Partnership’s legal counsel, result in the Partnership becoming an “investment company” required to register under the Investment Company Act of 1940, the General Partner shall have the right to purchase such interest from the estate
(or beneficiaries) of such deceased Partner for a price equal to the amount that the deceased Partner’s estate (or beneficiaries) would receive if all of the EPE Units held by the Partnership were sold at a price equal to the closing sale price
per EPE Unit as reported by the New York Stock Exchange (or such other applicable trading market) on the day prior to the exercise of such right by the General Partner and the proceeds from such sale were distributed to the Partners in accordance
with the provisions of Section 5.04. The determination by the General Partner of the foregoing purchase price of such deceased Partner’s interest in the Partnership shall be conclusive and binding on the deceased Partner’s estate
and beneficiaries. 
  
 (g) Any attempted Disposition by a Person
of an interest or right, or any part thereof, in or in respect of the Partnership other than in accordance with this Section 3.03 shall be, and is hereby declared, null and void ab initio. 
  

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 3.04 Additional Partners. Subject to the provisions of Section 12.05 and 3.03, additional Persons
may be admitted to the Partnership as General Partners or Limited Partners, only to the extent that, and on such terms and conditions as, the General Partner shall consent at the time of such admission or issuance. Such admission or issuance shall,
in the case of a Class B Limited Partner, specify the Sharing Points applicable thereto. Any such admission must comply with the provisions of Section 3.03(d) and shall not be effective until such new Partner shall have executed and delivered to the
General Partner a document including such new Partner’s notice address, acceptance of all the terms and provisions of this Agreement, an agreement to perform and discharge timely all of its obligations and liabilities hereunder, and a
representation and warranty that the representations and warranties in Section 3.02 are true and correct with respect to such new Partner. 
  
 3.05 Interests in a Partner. No Partner that is not a natural person shall cause or permit an interest, direct or indirect, in itself to be
Disposed of such that, on account of such Disposition, the Partnership would become an association taxable as a corporation for federal income tax purposes. 
  
 3.06 Spouses of Partners. A spouse of a Partner does not become a Partner as a result of such marital relationship or by reason of a divorce, legal
separation or other dissolution of marriage. If, in the event of a divorce, legal separation or other dissolution of marriage of a Partner, a former spouse of a Partner is awarded ownership of, or an interest in, all or part of a Partner’s
interest in the Partnership (the “Awarded Interest”), the Awarded Interest shall automatically and immediately be forfeited and cancelled without payment on such date. 
  
 3.07 Vesting of Limited Partners. One hundred percent (100%) of each
Class B Limited Partner’s interest in the Partnership shall vest on the Vesting Date, but only if (i) on such date the Class B Limited Partner continues to be an active, full-time employee of the General Partner or any of its Affiliates or (ii)
prior to the Vesting Date a Qualifying Termination has occurred with respect to the Class B Limited Partner. At such time as any Class B Limited Partner ceases, for any reason other than a Qualifying Termination, to be an active, full-time employee
of the General Partner or any of its Affiliates prior to the Vesting Date, his unvested interest in the Partnership shall be forfeited. If a Class B Limited Partner ceases to be an active, full-time employee prior to the Vesting Date, as determined
by the General Partner in its sole discretion, without regard as to how his status is treated by the General Partner or any of its Affiliates for any of its other compensation or benefit plans or programs, the Class B Limited Partner will be deemed
to have terminated employment with the General Partner and its Affiliates and forfeited his unvested interest in the Partnership for purposes of this Agreement. The Capital Account attributable to any Class B Limited Partner’s interest in the
Partnership that is forfeited pursuant to Section 3.06, this Section 3.07 or otherwise hereunder shall be allocated to the remaining Class B Limited Partners in accordance with their respective Class B Percentage Interests. 
  

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 ARTICLE IV 
  
 CAPITAL CONTRIBUTIONS 
  
 4.01 Initial and Additional Capital Contributions. The General Partner has contributed $510 to the Partnership. The Class A Limited Partner hereby
agrees to contribute $51,000,000 to the Partnership on the Closing Date. On the date hereof, the Partnership has executed a Unit Purchase Agreement among the Partnership, EPE and EPE’s general partner, pursuant to which the Partnership has
agreed to purchase $51,000,000 worth of EPE Units directly from EPE on the Closing Date at the initial public offering price of $28.00 per EPE Unit (an aggregate of 1,821,428 EPE Units). The Partnership will use the $51,000,000 to be contributed by
the Class A Limited Partner to purchase such EPE Units on the Closing Date. Subject to the provisions of applicable law or except as otherwise provided for herein, no Partner shall be liable for or obligated to make an additional Capital
Contribution to the Partnership, whether for the purpose of enabling the Partnership to meet its obligations under Section 6.03 or for any other purpose. The initial Capital Account of the General Partner is $510 and the Capital Account of the Class
A Limited Partner as of the Closing Date is $51,000,000. The initial Capital Account of each Class B Limited Partner is zero. 
  
 4.02 Return of Contributions. No Partner shall be entitled to the return of any part of its Capital Contributions or to be paid interest in respect
of either its Capital Account or any Capital Contribution made by it. No unrepaid Capital Contribution shall be deemed or considered to be a liability of the Partnership or of any Partner. No Partner shall be required to contribute, advance or lend
any cash or property to the Partnership to enable the Partnership to return any Partner’s Capital Contributions to the Partnership. To the extent, however, any Partner (by mistake, overpayment or otherwise) advances funds to the Partnership in
excess of the Capital Contributions called for under Section 4.01, such excess amounts shall not be Capital Contributions and (other than advances made by the General Partner pursuant to Section 4.03 below) shall be promptly returned by the
Partnership to the Partner so advancing such funds. 
  
 4.03
Advances by General Partner. At any time that the Partnership shall not have sufficient cash to pay its obligations, the General Partner may, but shall not be obligated to, advance such funds for or on behalf of the Partnership. Each such
advance shall constitute a loan from the General Partner to the Partnership and shall bear interest from the date of the advance until the date of repayment at the General Interest Rate. Any advances made by the General Partner pursuant to this
Section 4.03 shall not be considered to be Capital Contributions. All advances shall be repaid out of the next available funds of the Partnership, including Capital Contributions received. 
  
 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, if any, contributed by that Partner to the
Partnership (net of liabilities secured by such 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
thereof), including income and gain exempt from tax and income and gain described in Regulation § 1.704-1(b)(2)(iv)(g), but excluding income and gain described in Regulation § 1.704-1(b)(4)(i), 
  

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 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 such distributed property that such 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 thereof), including loss and deduction described in Regulation § 1.704-1(b)(2)(iv)(g),
but excluding items described in clause (b)(iii) above and loss or deduction described in Regulation § 1.704-1(b)(4)(i). The Partners’ Capital Accounts also shall be maintained and adjusted as permitted by the provisions of Regulation
§ 1.704-1(b)(2)(iv)(f) and as required by the other provisions of Regulation §§ 1.704-1(b)(2)(iv) and 1.704-1(b)(4), including adjustments to reflect the allocations to the Partners of depreciation, 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 Regulation § 1.704-1(b)(2)(iv)(g). A Partner that has more than one interest in the Partnership shall have a single
Capital Account that reflects all such interests, regardless of the class of interests owned by such Partner and regardless of the time or manner in which such interests were acquired; provided that Partners that are Affiliates but nevertheless
separate legal entities shall have separate Capital Accounts. Upon the transfer of all or part of an interest in the Partnership, the Capital Account of the transferor that is attributable to the transferred interest in the Partnership shall carry
over to the transferee Partner in accordance with the provisions of Regulation § 1.704-1(b)(2)(iv)(l). 
  
 ARTICLE V 
  
 ALLOCATIONS AND DISTRIBUTIONS 
  
 5.01
Allocations. 
  
 (a) Net Income and Net Loss. For
purposes of maintaining the Capital Accounts, Net Income or Net Loss (and all items included in the computation thereof) shall be allocated among the Partners as follows: 
  

	 	(i)	Net Income: 

  
 (A) First, to the Class A Limited Partner until the Class A Limited Partner’s Adjusted Capital Account equals the Class A Capital Base; and

  
 (B) Thereafter, to the Class B Limited Partners in accordance
with the Class B Percentage Interests. 
  

	 	(ii)	Net Loss: 

  
 (A) First, to the Class B Limited Partners in accordance with the Class B Percentage Interests until the Adjusted Capital Accounts of the Limited
Partners are reduced to zero; and 
  
 (B) Thereafter, to the
Class A Limited Partner. 
  

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 (b) Special Allocations. Notwithstanding any other provision of this Section 5.01, the following
special allocations shall be made for such taxable period: 
  
 (i) Partnership Minimum Gain Chargeback. Notwithstanding any other provision of this Section 5.01, if there is a net decrease in Partnership Minimum Gain during any Partnership taxable period, each Partner
shall be allocated items of Partnership income and gain for such period (and, if necessary, subsequent periods) in the manner and amounts provided in Regulation Sections 1.704-2(f)(6), 1.704-2(g)(2) and 1.704-2(j)(2)(i), or any successor provision.
For purposes of this Section 5.01(b), each Partner’s Adjusted Capital Account balance shall be determined, and the allocation of income or gain required hereunder shall be effected, prior to the application of any other allocations pursuant to
this Section 5.01(b) with respect to such taxable period (other than an allocation pursuant to Sections 5.01(b)(vi) and 5.01(b)(vii)). This Section 5.01(b)(i) is intended to comply with the Partnership Minimum Gain chargeback requirement in
Regulation Section 1.704-2(f) and shall be interpreted consistently therewith. 
  
 (ii) Chargeback of Partner Nonrecourse Debt Minimum Gain. Notwithstanding the other provisions of this Section 5.01 (other than
Section 5.01(b)(i)), except as provided in Regulation Section 1.704-2(i)(4), if there is a net decrease in Partner Nonrecourse Debt Minimum Gain during any Partnership taxable period, any Partner with a share of Partner Nonrecourse Debt Minimum Gain
at the beginning of such taxable period shall be allocated items of Partnership income and gain for such period (and, if necessary, subsequent periods) in the manner and amounts provided in Regulation Sections 1.704-2(i)(4) and 1.704-2(j)(2)(ii), or
any successor provisions. For purposes of this Section 5.01(b), each Partner’s Adjusted Capital Account balance shall be determined, and the allocation of income or gain required hereunder shall be effected, prior to the application of any
other allocations pursuant to this Section 5.01(b), other than Section 5.01(b)(i) and other than an allocation pursuant to Sections 5.01(b)(vi) and 5.01(b)(vii), with respect to such taxable period. This Section 5.01(b)(ii) is intended to comply
with the chargeback of items of income and gain requirement in Regulation Section 1.704-2(i)(4) and shall be interpreted consistently therewith. 
  
 (iii) Qualified Income Offset. In the event any Partner unexpectedly receives any adjustments, allocations or distributions
described in Regulation Sections 1.704 1(b)(2)(ii)(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 specially allocated to such Partner in an amount and manner sufficient to eliminate, to the
extent required by the Regulations, the deficit balance, if any, in its Adjusted Capital Account created by such adjustments, allocations or distributions as quickly as possible unless such deficit balance is otherwise eliminated pursuant to Section
5.01(b)(i) or (ii). 
  
 (iv) Gross Income
Allocations. In the event any Partner has a deficit balance in its Capital Account at the end of any Partnership taxable period in excess of the sum of (A) the amount such Partner is required to restore pursuant to 
  

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 the provisions of this Agreement and (B) the amount such Partner is deemed obligated to restore pursuant
to Regulation Sections 1.704-2(g) and 1.704-2(i)(5), 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 allocation pursuant to this Section
5.01(b)(iv) shall be made only if and to the extent that such Partner would have a deficit balance in its Capital Account as adjusted after all other allocations provided for in this Section 5.01 have been tentatively made as if this Section
5.01(b)(iv) were not in this Agreement. 
  
 (v)
Nonrecourse Deductions. Nonrecourse Deductions for any taxable period shall be allocated to the Partners in accordance with their respective Percentage Interests. If the General Partner determines that the Partnership’s Nonrecourse
Deductions should be allocated in a different ratio to satisfy the safe harbor requirements of the Regulations promulgated under Section 704(b) of the Code, the General Partner is authorized, upon notice to the other Partners, to revise the
prescribed ratio to the numerically closest ratio that does satisfy such requirements. 
  
 (vi) Partner Nonrecourse Deductions. Partner Nonrecourse Deductions for any taxable period shall be allocated 100% to the Partner
that bears the Economic Risk of Loss with respect to the Partner Nonrecourse Debt to which such Partner Nonrecourse Deductions are attributable in accordance with Regulation Section 1.704-2(i). If more than one Partner bears the Economic Risk of
Loss with respect to a Partner Nonrecourse Debt, such Partner Nonrecourse Deductions attributable thereto shall be allocated between or among such Partners in accordance with the ratios in which they share such Economic Risk of Loss. 
  
 (vii) Nonrecourse Liabilities. For purposes of
Regulation Section 1.752 3(a)(3), the Partners agree that Nonrecourse Liabilities of the Partnership in excess of the sum of (A) the amount of Partnership Minimum Gain and (B) the total amount of Nonrecourse Built-in Gain shall be allocated among
the Partners in accordance with their respective Percentage Interests. 
  
 (viii) Code Section 754 Adjustments. 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 Regulation Section
1.704-1(b)(2)(iv)(m), 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 such Section of the Regulations.

  
 (c) Allocations Caused by Transfer of Interest. All
items of income, gain, loss, deduction, and credit allocable to any interest in the Partnership that may have been transferred shall be allocated between the transferor and the transferee based upon that portion of the calendar year during which
each was recognized as owning such interest, without regard to 
  

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 the results of Partnership operations during any particular portion of such calendar year and without regard to
distributions made to the transferor and the transferee during such calendar year; provided, however, that such allocation shall be made in accordance with a method permissible under section 706 of the Code and the regulations thereunder.

  
 5.02 Income Tax Allocations. 
  
 (a) Except as provided in this Section 5.02, each item of income, gain, loss
and deduction of the Partnership for federal income tax purposes shall be allocated among the Partners in the same manner as such items are allocated for purposes of maintaining Capital Account under Section 5.01. 
  
 (b) For federal and state income tax purposes, income, gain, loss, and
deduction with respect to property contributed to the Partnership by a Partner or revalued pursuant to Regulation § 1.704-1(b)(2)(iv)(f) shall be allocated among the Partners in a manner that takes into account the variation between the
adjusted tax basis of such property and its book value, as required by section 704(c) of the Code and Regulation § 1.704-1(b)(4)(i), using any allocation method permitted by Regulation § 1.704-3. 
  
 5.03 Distributions of Cashflow from EPE Units. Promptly following the
receipt of any distributions with respect to EPE Units, the General Partner shall cause to be distributed to the Partners such receipts (and any income from the temporary investment thereof) in the manner set forth below, provided that the General
Partner may withhold and not distribute such portion of any such receipts that the General Partner has determined in its sole but good faith discretion should be withheld to pay expenses of the Partnership. Distribution to the Partners pursuant to
this Section 5.03 shall be made as follows: 
  
 (a) First, to the
Class A Limited Partner until the Class A Limited Partner’s Class A Preference Return Amount has been reduced to zero; and 
  
 (b) Thereafter, to the Limited Partners in accordance with the Class B Percentage Interests. 
  
 5.04 Distributions of Proceeds from Sales of EPE Units. Promptly following the receipt of any proceeds from the sale
of any EPE Units by the Partnership, the General Partner shall cause to be distributed to the Partners such receipts in the manner set forth below, provided that the General Partner may withhold and not distribute such portion of any such receipts
that the General Partner has determined in its sole but good faith discretion should be withheld to pay expenses of the Partnership. Distribution to the Partners pursuant to this Section 5.04 shall be made as follows: 
  
 (a) First, to the Class A Limited Partner until the Class A Preference
Return Amount has been reduced to zero; 
  
 (b) Next, to the Class
A Limited Partner until the Class A Capital Base is reduced to zero; and 
  

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 (c) Thereafter, to the Class B Limited Partners in accordance with the Class B Percentage Interests.

  
 5.05 Restrictions on Distributions of EPE Units. The
Partners and the Partnership hereby agree that they shall not cause the Partnership to offer for sale, sell, pledge or otherwise transfer, distribute or dispose of the EPE Units held by the Partnership prior to the Vesting Date. 
  
 ARTICLE VI 
  
 MANAGEMENT AND OPERATION 
  
 6.01 Management of Partnership Affairs. Except for situations in which the approval of the Limited Partners is expressly required by this Agreement
or by non-waivable 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 the same, and to
perform any and all other acts or activities customary or incident to the management of the Partnership’s business. The General Partner shall receive no compensation for its services as such. Subject to the other express provisions hereof, the
General Partner shall make or take all decisions and actions for the Partnership not otherwise provided for herein, including, without limitation, the following: 
  
 (a) acquiring, holding, managing, selling, Disposing of, and otherwise dealing with and investing in (i) the
Partnership’s EPE Units, or (ii) temporary investments of Partnership capital in U.S. government securities, certificates of deposit with maturities of less than one year, commercial paper (rated or unrated), and other highly liquid securities;

  
 (b) entering into, making, and performing all contracts,
agreements, and other undertakings binding the Partnership, as may be necessary, appropriate, or advisable in furtherance of the purposes of the Partnership and making all decisions and waivers thereunder; 
  
 (c) opening and maintaining bank and investment accounts and drawing checks
and other orders for the payment of monies; 
  
 (d) maintaining
the assets of the Partnership in compliance with applicable securities laws and protecting and preserving the Partnership’s title thereto; 
  
 (e) collecting all sums due the Partnership; 
  
 (f) to the extent that funds of the Partnership are available therefor, paying as they become due all debts and obligations of the Partnership;

  
 (g) causing securities owned by the Partnership to be
registered in the Partnership’s name or in the name of a nominee or to be held in street name, as the General Partner may elect; 
  
 (h) selecting, removing, and changing the authority and responsibility of lawyers, accountants, brokers, and other advisors and consultants; 

 
  

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 (i) obtaining insurance for the Partnership to the extent the General Partner deems appropriate; and

  
 (j) determining distributions of Partnership cash as provided
in Sections 5.03 and 5.04. 
  
 6.02 Duties and Obligations of
General Partner. The General Partner shall endeavor to conduct the affairs of the Partnership in the best interests of the Partnership and the mutual best interests of the Partners, including, without limitation, the safekeeping and use of all
Partnership funds and assets and the use thereof for the benefit of the Partnership. The General Partner at all times shall act in good faith in all activities relating to the conduct of the business of the Partnership. The General Partner shall
devote such time as it deems necessary to conduct the business and affairs of the Partnership in an appropriate manner. 
  
 6.03 Release and Indemnification. TO THE FULLEST EXTENT PERMITTED BY LAW, THE PARTNERSHIP AND EACH OTHER PARTNER ON BEHALF OF ITSELF AND ITS
SUCCESSORS AND ASSIGNS HEREBY RELEASES, ACQUITS, AND FOREVER DISCHARGES THE GENERAL PARTNER AND THE CLASS A LIMITED PARTNER, THEIR PARTNERS OR SHAREHOLDERS, AND THEIR DIRECTORS, OFFICERS, EMPLOYEES, PARTNERS, REPRESENTATIVES, AND AGENTS AND EACH
OTHER PERSON, IF ANY, CONTROLLING OR EMPLOYING SUCH PERSONS OR ENTITIES (COLLECTIVELY, THE “INDEMNITEES”) FROM ALL CLAIMS, DEMANDS, OR CAUSES OF ACTION OF ANY CHARACTER THAT SUCH PARTY MAY HAVE, WHETHER KNOWN OR UNKNOWN, AGAINST ANY
INDEMNITEE IN CONNECTION WITH THE PARTNERSHIP AND/OR THE BUSINESS CONDUCTED BY THE PARTNERSHIP; PROVIDED, HOWEVER, THAT SUCH RELEASE SHALL NOT APPLY TO ACTIONS CONSTITUTING WILLFUL MISCONDUCT OR BAD FAITH. TO THE FULLEST EXTENT PERMITTED BY LAW, THE
PARTNERSHIP SHALL INDEMNIFY AND HOLD HARMLESS EACH INDEMNITEE FROM AND AGAINST ALL LOSSES, COSTS, CLAIMS, LIABILITIES, DAMAGES, AND EXPENSES (INCLUDING, WITHOUT LIMITATION, COSTS OF SUIT AND ATTORNEYS’ FEES) SUCH INDEMNITEE MAY INCUR IN
CONNECTION WITH THE GENERAL PARTNER’S PERFORMING ITS OBLIGATIONS HEREUNDER (INCLUDING WITHOUT LIMITATION LOSSES, COSTS, CLAIMS, LIABILITIES, DAMAGES AND EXPENSES ARISING FROM, OR ALLEGED TO ARISE FROM, THE INDEMNITEE’S ACTIVE OR PASSIVE,
SOLE OR CONCURRENT, NEGLIGENCE OR GROSS NEGLIGENCE), AND THE PARTNERSHIP SHALL ADVANCE EXPENSES ASSOCIATED WITH THE DEFENSE OF ANY ACTION RELATED THERETO; PROVIDED, HOWEVER, THAT SUCH INDEMNITY SHALL NOT APPLY TO ACTIONS WHICH HAVE BEEN FINALLY,
WITHOUT FURTHER RIGHT TO APPEAL, JUDICIALLY DETERMINED TO CONSTITUTE WILLFUL MISCONDUCT OR BAD FAITH. IF THE INDEMNIFICATION PROVIDED FOR ABOVE IS NOT PERMITTED OR ENFORCEABLE UNDER APPLICABLE LAW OR IS OTHERWISE UNAVAILABLE OR INSUFFICIENT TO HOLD
HARMLESS THE INDEMNITEES AS CONTEMPLATED ABOVE, THEN THE PARTNERSHIP SHALL CONTRIBUTE TO THE AMOUNT PAID OR PAYABLE BY THE INDEMNITEES AS A RESULT OF 
  

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 SUCH LOSSES, COSTS, CLAIMS, LIABILITIES, DAMAGES AND EXPENSES REFERRED TO ABOVE IN SUCH PROPORTION AS IS APPROPRIATE
TO REFLECT THE RELATIVE BENEFITS CONTEMPLATED TO BE RECEIVED BY THE PARTNERSHIP AND THE INDEMNITEES, RESPECTIVELY, FROM THE ACTIONS GIVING RISE TO SUCH LOSSES, COSTS, CLAIMS, LIABILITIES, DAMAGES OR EXPENSES. 
  
 6.04 Power of Attorney. 
  
 (a) Each Limited Partner hereby constitutes and appoints the General Partner
and, if a liquidator (other than the General Partner) shall have been selected pursuant to Section 11.02, the liquidator, severally (and any successor to either thereof by merger, transfer, assignment, election or otherwise) and each of their
authorized officers and attorneys-in-fact, as the case may be, with full power of substitution, as his true and lawful agent and attorney-in-fact, with full power and authority in his name, place and stead, to: 
  
 (i) execute, swear to, acknowledge, deliver, file and record
in the appropriate public offices (A) all certificates, documents and other instruments (including this Agreement and the Certificate of Limited Partnership and all amendments or restatements hereof or thereof) that the General Partner or the
liquidator deems necessary or appropriate to form, qualify or continue the existence or qualification of the Partnership as a limited partnership (or a partnership in which the Limited Partners have limited liability) in the State of Delaware and in
all other jurisdictions in which the Partnership may conduct business or own property; (B) all certificates, documents and other instruments that the General Partner or the liquidator deems necessary or appropriate to reflect, in accordance with its
terms, any amendment, change, modification or restatement of this Agreement; (C) all certificates, documents and other instruments (including conveyances and a certificate of cancellation) that the General Partner or the liquidator deems necessary
or appropriate to reflect the dissolution and liquidation of the Partnership pursuant to the terms of this Agreement; and (D) all certificates, documents and other instruments relating to the admission, withdrawal, removal or substitution of any
Partner; and 
  
 (ii) execute, swear to,
acknowledge, deliver, file and record all ballots, consents, approvals, waivers, certificates, documents and other instruments necessary or appropriate, in the discretion of the General Partner or the liquidator, to make, evidence, give, confirm or
ratify any vote, consent, approval, agreement or other action that is made or given by the Partners hereunder or is consistent with the terms of this Agreement or is necessary or appropriate, in the discretion of the General Partner or the
liquidator, to effectuate the terms or intent of this Agreement; provided, that when required by any provision of this Agreement that establishes a percentage of the Limited Partners required to take any action, the General Partner and the
liquidator may exercise the power of attorney made in this Section 6.04 only after the necessary vote, consent or approval of the Limited Partners. 
  

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 This Section 6.04 shall be construed as authorizing the General Partner to amend this Agreement in any manner subject to
any provision of this Agreement that establishes a percentage of the Limited Partners required to take any action. 
  
 (b) The foregoing power of attorney is hereby declared to be irrevocable and a power coupled with an interest, and it shall survive and, to the maximum
extent permitted by law, not be affected by the subsequent death, incompetency, disability, incapacity, dissolution, bankruptcy or termination of any Limited Partner and the transfer of all or any portion of such Limited Partner’s Percentage
Interest and shall extend to such Limited Partner’s heirs, successors, assigns and personal representatives. Each such Limited Partner hereby agrees to be bound by any representation made by the General Partner or the liquidator acting in good
faith pursuant to such power of attorney; and each such Limited Partner, to the maximum extent permitted by law, hereby waives any and all defenses that may be available to contest, negate or disaffirm the action of the General Partner or the
liquidator taken in good faith under such power of attorney. Each Limited Partner shall execute and deliver to the General Partner or the liquidator, within 15 days after receipt of the request therefor, such further designation, powers of attorney
and other instruments as the General Partner or the liquidator deems necessary to effectuate this Agreement and the purposes of the Partnership. 
  
 ARTICLE VII 
  
 RIGHTS OF OTHER PARTNERS 
  
 7.01 Information. In addition to the other rights specifically set forth herein, each Partner shall have access to all information to which such Partner is entitled to have access pursuant to section 17-305 of
the Act under the circumstances and subject to the conditions therein stated. Without limiting the provisions of section 17-305(b) of the Act, the Partners agree that if the General Partner from time to time enters into on behalf of the Partnership
or the General Partner contractual obligations regarding the confidentiality of information received with respect to the Partnership’s business or assets, it shall not be reasonable for any other Partner or assignee or representative thereof to
examine or copy such information unless such Partner agrees to comply with the terms of such contractual obligations including without limitation executing a counterpart of any applicable confidentiality agreements. 
  
 7.02 Limitations. No Limited Partner shall have the authority or power
in its capacity as such to act for or on behalf of the Partnership or any other Partner, to do any act that would be binding on the Partnership or any other Partner, or to incur any expenditures on behalf of or with respect to the Partnership. No
Limited Partner shall have the right or power to withdraw from the Partnership. 
  
 7.03 Limited Liability. No Limited Partner shall be liable for the losses, debts, liabilities, contracts, or other obligations of the Partnership except to the extent required by law or otherwise set forth
herein. 
  

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 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 Partner shall furnish to the General Partner all pertinent information in its possession relating to Partnership operations that is necessary to enable such income tax returns to be
prepared and filed. 
  
 8.02 Tax Elections. The following
elections shall be made on the appropriate returns of the Partnership: 
  
 (a) to adopt the calendar year as the Partnership’s fiscal year; 
  
 (b) unless the accrual method is required under the applicable sections of the Code, to adopt the cash method of accounting and to keep the Partnership’s books and records on the income-tax method; 
  
 (c) if there shall be a distribution of Partnership property as described in
section 734 of the Code or if there shall be a transfer of a Partnership interest as described in section 743 of the Code, upon written request of any Partner, to elect, pursuant to section 754 of the Code, to adjust the basis of Partnership
properties; 
  
 (d) to elect to amortize the organizational
expenses of the Partnership ratably over a period of 60 months as permitted by section 709(b) of the Code; and 
  
 (e) any other election the General Partner may deem appropriate and in the best interests of the Partners. 
  
 No election shall be made by the Partnership or any Partner to be treated as an association
taxable as a corporation or 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 laws. 
  
 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 other Partner to become a “notice partner” within the meaning of section 6223
of the Code. The General Partner shall inform each other Partner of all significant matters that may come to its attention in its capacity as tax matters partner by giving notice thereof within ten Business Days after becoming aware thereof and,
within such time, shall forward to each other Partner copies of all significant written communications it may receive in such capacity. The General Partner shall not take any action contemplated by sections 6222 through 6232 of the Code without the
consent of a Required Interest. This provision is not intended to authorize the General Partner to take any action left to the determination of an individual Partner under sections 6222 through 6232 of the Code. 
  

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 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 cash 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 calendar year shall be the accounting year of the Partnership. 
  
 9.02 Financial Statements. Within 120 days after the end of each fiscal year during the term of the Partnership, the
General Partner shall cause each other Partner to be furnished with an unaudited balance sheet, an income statement, and a statement of changes in Partners’ capital of the Partnership for, or as of the end of, such period. All financial
statements shall be prepared in accordance with accounting principles generally employed for cash-basis records consistently applied (except as therein noted). 
  

9.03 Bank Accounts. The General Partner shall establish and maintain one or more separate accounts for Partnership funds in the Partnership name
at such financial institutions as it may designate. The General Partner may not commingle the Partnership’s funds with other funds of any Partner. 
  
 ARTICLE X 
  
 WITHDRAWAL, BANKRUPTCY, REMOVAL, ETC. 
  
 10.01 Withdrawal, Bankruptcy, Etc. of General Partner. (a) The General Partner covenants and agrees that it will not withdraw from the Partnership
as the general partner within the meaning of section 17-602 of the Act. If the General Partner shall so withdraw from the Partnership in violation of such covenant and agreement, such withdrawal shall be effective only upon 90 days’ prior
notice to all other Partners. 
  
 (b) The General Partner shall
not cease to be a general partner on the occurrence of an event of the type described in section 17-402(a)(4) through (10) of the Act, but shall cease to be a general partner 90 days thereafter. The General Partner shall notify each other Partner
that an event of the type described in section 17-402(a)(4) through (10) of the Act has occurred (without regard to the lapse of any time periods therein) with respect to it within five Business Days after such occurrence. 
  
 (c) Following any notice pursuant to Section 10.01(a) that the General
Partner shall be withdrawing, or following the occurrence of an event of the type described in section 17-402(a)(4) through (10) of the Act with respect to the General Partner (without regard to the lapse of any time periods therein), and unless
there shall be one other General Partner remaining, the greater of the Class A Limited Partner plus a Required Interest of the Class B Limited Partners or a majority in interest as defined in Internal Revenue Service Procedure 94-46 (or any
successor thereof) by written consent may select a new General Partner, which shall be admitted to the Partnership as a general partner effective immediately prior to the existing General Partner’s ceasing to be a general partner with such
general partner interest as the Limited Partners making such selection may specify, but only if such new General Partner shall have made such Capital 
  

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 Contribution as such Limited Partners may specify and shall have executed and delivered to the Partnership a document
including such new General Partner’s notice address, acceptance of all the terms and provisions of this Agreement, an agreement to perform and discharge timely all of its obligations and liabilities hereunder, and a representation and warranty
that the representation and warranties in Section 3.02 are true and correct with respect to such new General Partner. Notwithstanding the foregoing provisions of this Section 10.01(c), the right to select such new General Partner shall not exist or
be exercised unless the Partnership shall have received the favorable opinion of the Partnership’s legal counsel or of other legal counsel acceptable to the Limited Partners making such selection to the effect that such selection and admission
will not result in (i) the loss of limited liability of any Limited Partner (except to the extent a Limited Partner has consented to become the General Partner) or (ii) in 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), no such new General Partner shall be admitted (and the existing General Partner shall continue as such) if the event that permitted the
selection of a new General Partner shall have been an event of the type described in section 17-402(a)(5) of the Act that with the passage of time would cause the existing General Partner to become a Bankrupt Partner but, due to the failure of such
situation to continue, such General Partner does not become a Bankrupt Partner. 
  
 10.02 Conversion of Interest. Immediately upon 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 interest in the Partnership as a General Partner shall be converted into the interest of a Limited Partner in the Partnership having the same economic rights as specified for the General Partner herein immediately prior to its ceasing
to be a General Partner, and such General Partner shall automatically and without further action be admitted to the Partnership as a Limited Partner. 
  
 ARTICLE XI 
  
 DISSOLUTION, LIQUIDATION, AND TERMINATION 
  
 11.01 Dissolution. The Partnership shall be dissolved and its affairs shall be wound up upon the first to occur of any of the following:

  
 (a) the written consent of the General Partner, the Class A
Limited Partner and a Required Interest; 
  
 (b) unless otherwise
agreed to by the General Partner, the Class A Limited Partner and a Required Interest 30 days following the occurrence of the Vesting Date; 
  
 (c) the end of the term of the Partnership as set forth in Section 2.06; 
  
 (d) the General Partner’s ceasing to be the General Partner as described in Section 10.01(b) with no new General
Partner having been selected and admitted as provided in Section 10.01(c); or 
  

 -21- 

 (e) any other event causing dissolution as described in section 17-801 of the Act (other than an event
described in section 17-402(a)(4) through (10) of the Act, except as provided in Sections 10.01(b) and 11.01(d)); 
  
 it being understood that if an “event of withdrawal of a general partner” (as defined in section 17-101(3) of the Act) shall occur with respect to the General
Partner and at least one other General Partner shall have been or is about to be admitted pursuant to Section 3.03(b), 10.01(c), or 10.02, the Partnership shall not dissolve but shall continue and the remaining General Partner shall, and hereby
agrees to, carry on the business of the Partnership. 
  
 11.02
Liquidation and Termination. Upon dissolution of the Partnership, unless it is 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 shall be dissolved on account of an event of the type described in section 17-402(a)(4) through (10) of Act with respect to the General Partner, the liquidator shall be one or more Persons selected in writing by the Class A
Limited Partner and a Required Interest. The liquidator shall proceed diligently to wind up the affairs of the Partnership and make final distributions as provided herein, and shall file any amendments to the Certificate as may be required by
applicable law. The costs of liquidation shall be borne as a Partnership expense. Until final distribution, the liquidator shall continue to manage the Partnership assets 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 possible 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 shall have occurred or the final liquidation shall be completed, as applicable; 
  
 (b) the liquidator shall pay all of the debts and liabilities of the Partnership (including, without limitation, all expenses incurred in liquidation and
any advances made by the General Partner pursuant to Section 4.03) or otherwise make adequate provision therefor (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 fair market value of the 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 such property (that has not been reflected in the capital accounts previously) would be allocated among the Partners if there were a taxable disposition of such property
for the fair market value of such property on the Vesting Date; and 
  
 (ii) the 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 
  

 -22- 

 taxable year of the Partnership during which the liquidation of the Partnership occurs (other than those
made by reason of this clause); and such 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, within 90 days after the date of such liquidation). While
the General Partner has the right to sell EPE Units as noted in Section 5.04, and subject to the restrictions set forth in Section 5.05, it is the intent of the General Partner upon liquidation and termination of the Partnership to distribute EPE
Units to the Partners rather than sell the EPE Units and distribute the cash proceeds of such sale to the Partners. 
  
 For purposes of this Section 11.02(c), the “fair market value” of each EPE Unit held by the Partnership on the Vesting Date shall be equal to the average of the
closing sale prices per EPE Unit for the 20 trading days ending on the Vesting Date (or, if no closing sale price is reported, the average of the bid and asked prices) as reported in the composite transactions for the principal United States
securities exchange on which the EPE Units are traded or if the EPE Units are not listed on a national or regional stock exchange, as reported by The NASDAQ National Market. All distributions in kind to the Partners shall be made subject to the
liability of each distributee for costs, expenses, and liabilities theretofore incurred or for which the Partnership shall have committed prior to the date of termination and such costs, expenses, and liabilities shall be allocated to such
distributee pursuant to this Section 11.02. The distribution of property to a Partner in accordance with the provisions of this Section 11.02 shall constitute a complete return to the Partner of its Capital Contributions and a complete distribution
to the Partner of its interest in the Partnership and all the Partnership’s property and shall constitute a compromise to which all Partners have consented within the meaning of section 17-502(b) of the Act. 
  
 11.03 Cancellation of Certificate. Upon completion of the distribution
of Partnership assets as provided herein, the Partnership shall be terminated, and the General Partner (or, if there shall be no General Partner, the Limited Partners) shall cause the cancellation of the Certificate and any other filings made
pursuant to Section 2.05 and shall take such other actions as may be necessary to terminate the Partnership. 
  
 ARTICLE XII 
  
 GENERAL PROVISIONS 
  
 12.01 Offset. In the
event that any sum is payable to any Partner pursuant to this Agreement, any amounts owed by such Partner to the Partnership shall be deducted from said sum before payment to said Partner. 
  
 12.02 Notices. All notices or requests or consents provided for or
permitted to be given pursuant to this Agreement must be in writing and must be given (a) by depositing same in the United States mail, addressed to the Person to be notified, postpaid, and registered or certified with return receipt requested or
(b) by delivering such notice by courier or in person to such party. Notices given or served pursuant hereto shall be effective two Business Days after such deposit, or upon receipt if delivered in person to the person to be notified. All notices to
be sent to a Partner shall be sent to or made at the address given on the Power of Attorney executed by 
  

 -23- 

 the Partner and delivered to the General Partner on the date hereof or in the instrument described in Section 3.03(c),
3.04, or 10.01(c), or such other address as such Partner may specify by notice to the General Partner. Any notice to the Partnership shall be given to the General Partner. 
  
 12.03 Entire Agreement; Supersedure. This Agreement constitutes the entire agreement of the Partners relating to the
matters contained herein and supersedes all prior contracts or agreements, whether oral or written, among the parties hereto with respect to such matters. 
  
 12.04 Effect of Waiver or Consent. No waiver or consent, express or implied, by any Person with respect to any breach or default by any other
Person of its obligations hereunder shall be deemed or construed to be a consent or waiver with respect to any other breach or default by such other Person of the same or any other obligations of such other Person hereunder. Failure on the part of
any Person to complain of any act or omission of any other Person, or to declare any other Person in default, irrespective of how long such failure continues, shall not constitute a waiver by such Person of its rights hereunder until the applicable
limitation 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 the General Partner; provided, however, that (a) the vesting and distribution provisions of this Agreement may be amended or
modified only by a written instrument executed by the General Partner, the Class A Limited Partner and a Required Interest, and (b) no amendment or modification reducing a Partner’s Sharing Points (other than to reflect changes otherwise
provided hereby) or increasing its duties or adversely affecting its limited liability shall be effective without such Partner’s consent. 
  
 12.06 Binding Effect; Joinder of Additional Parties. Subject to the restrictions on Dispositions set forth herein, this Agreement shall be binding
upon and shall inure to the benefit of the Partners, as well as the respective heirs, legal representatives, successors, and assigns of such Partners. 
  
 12.07 Construction. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE, EXCLUDING ANY
CONFLICTS-OF-LAW RULE OR PRINCIPLE THAT MIGHT REFER THE GOVERNANCE OR CONSTRUCTION OF THIS AGREEMENT TO THE LAWS OF ANOTHER JURISDICTION. The headings in this Agreement are inserted for convenience and identification only and are not intended to
describe, interpret, define, or limit the scope, extent, or intent of this Agreement or any provision hereof. Whenever the context requires, the gender of all words used in this Agreement shall include the masculine, feminine, and neuter. All
references to Articles and Sections refer to articles and sections of this Agreement. All sums and amounts payable or to be payable pursuant to the provisions of this Agreement shall be payable in coin or currency of the United States of America
that, at the time of payment, is legal tender for the payment of public and private debts in the United States of America. If any provision of this Agreement or the application thereof to any Person or circumstance shall be held invalid or
unenforceable to any extent, the remainder of this Agreement and the application of such provision to other Persons or circumstances shall not be affected thereby and shall be enforced to the greatest extent permitted by law. 
  

 -24- 

 12.08 Further Assurances. In connection with this Agreement, as well as all transactions
contemplated by this Agreement, each Partner agrees to execute and deliver such additional documents and instruments and to perform such additional acts as may be necessary or appropriate to effectuate, carry out, and perform all of the terms,
provisions, and conditions of this Agreement and all such transactions. 
  
 12.09 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 such indemnifying Partner of this Agreement. 
  

12.10 Waiver of Certain Rights. Each Partner irrevocably waives any right it might have to maintain any action for dissolution of the
Partnership or to maintain any action for partition of the property of the Partnership. 
  
 12.11 Counterparts. This Agreement may be executed in any number of counterparts with the same effect as if all signatory parties had signed the same document. All counterparts shall be construed together and
shall constitute one and the same instrument. 
  
 12.12 Dispute
Resolution. (a) If the General Partner and one or more Limited Partners are unable to resolve any controversy, dispute, claim or other matter in question arising out of, or relating to, this Agreement, any provision hereof, the alleged breach
hereof, or in any way relating to the subject matter of this Agreement, or the relationship between the parties created by this Agreement, including questions concerning the scope and applicability of this Section 12.12, whether sounding in
contract, tort or otherwise, at law or in equity, under state or federal law, whether provided by statute or common law, for damages or any other relief (any such controversy, dispute, claim or other matter in question, a
“Dispute”), on or before the 30th day following the receipt by the General Partner or such Limited Partners of written notice of such Dispute from the other party, which notice describes in reasonable detail the nature of the
Dispute and the facts and circumstances relating thereto, the General Partner or such Limited Partners may, by delivery of written notice to the other party, require that a representative of the General Partner and of such Limited Partners meet at a
mutually agreeable time and place in an attempt to resolve such Dispute. Such meeting shall take place on or before the 15th day following the date of the notice requiring such meeting, and if the Dispute has not been resolved within 15 days
following such meeting, the General Partner or such Limited Partners may cause such Dispute to be resolved by binding arbitration in Houston, Texas, by submitting such Dispute for arbitration within 30 days following the expiration of such 15-day
period. This agreement to arbitrate shall be specifically enforceable against the parties. 
  
 (b) It is the intention of the parties that the arbitration shall be governed by and conducted pursuant to the Federal Arbitration Act, as such Act is modified by this Section 12.12. If it is determined the Federal
Arbitration Act is not applicable to this Agreement (e.g., this Agreement does not evidence a transaction involving interstate commerce), this agreement to arbitrate shall nevertheless be enforceable pursuant to applicable State law. While the
arbitrators may refer to the Commercial Arbitration Rules of the American Arbitration Association (the “Rules”) for guidance with respect to procedural matters, the arbitration 
  

 -25- 

 proceeding shall not be administered by the American Arbitration Association but instead shall be self-administered by
the parties until the arbitrators are selected and then the proceeding shall be administered by the arbitrators. 
  
 (c) The validity, construction, and interpretation of this agreement to arbitrate, and all procedural aspects of the arbitration conducted pursuant to
this agreement to arbitrate, including but not limited to, the determination of the issues that are subject to arbitration (i.e., arbitrability), the scope of the arbitrable issues, allegations of “fraud in the inducement” to enter into
this Agreement or this arbitration provision, allegations of waiver, laches, delay or other defenses to arbitrability, and the rules governing the conduct of the arbitration (including the time for filing an answer, the time for the filing of
counterclaims, the times for amending the pleadings, the specificity of the pleadings, the extent and scope of discovery, the issuance of subpoenas, the times for the designation of experts, whether the arbitration is to be stayed pending resolution
of related litigation involving third parties not bound by this arbitration agreement, the receipt of evidence, and the like), shall be decided by the arbitrators. 
  
 (d) The rules of arbitration of the Federal Arbitration Act, as modified by this Agreement, shall govern procedural aspects
of the arbitration; to the extent the Federal Arbitration Act as modified by this Agreement does not address a procedural issue, the arbitrators may refer for guidance to the Commercial Arbitration Rules then in effect with the American Arbitration
Association. The arbitrators may refer for guidance to the Federal Rules of Civil Procedure, the Federal Rules of Civil Evidence, and the federal law with respect to the discovery process, applicable legal privileges, and admissible evidence. In
deciding the substance of the parties’ Dispute, the arbitrators shall refer to the substantive laws of the State of Delaware for guidance (excluding Delaware’s conflict-of-law rules or principles that might call for the application of the
law of another jurisdiction); provided, however, IT IS EXPRESSLY AGREED THAT NOTWITHSTANDING ANY OTHER PROVISION IN THIS SECTION 12.12 TO THE CONTRARY, THE ARBITRATORS SHALL HAVE ABSOLUTELY NO AUTHORITY TO AWARD CONSEQUENTIAL DAMAGES (SUCH AS LOSS
OF PROFIT), TREBLE, EXEMPLARY OR PUNITIVE DAMAGES OF ANY TYPE UNDER ANY CIRCUMSTANCES REGARDLESS OF WHETHER SUCH DAMAGES MAY BE AVAILABLE UNDER DELAWARE LAW, THE LAW OF ANY OTHER STATE, OR FEDERAL LAW, OR UNDER THE FEDERAL ARBITRATION ACT, OR UNDER
THE COMMERCIAL ARBITRATION RULES OF THE AMERICAN ARBITRATION ASSOCIATION. The arbitrators shall have the authority to assess the costs and expenses of the arbitration proceeding (including the arbitrators’ fees and expenses) against either or
both parties. However, each party shall bear its own attorneys fees and the arbitrators shall have no authority to award attorneys fees. 
  
 (e) When a Dispute has been submitted for arbitration, within 30 days of such submission, the General Partner will choose an arbitrator, and such Limited
Partners will choose an arbitrator. The two arbitrators shall select a third arbitrator, failing agreement on which within 90 days of the original notice, the General Partner and such Limited Partners (or either of them) shall apply to any United
States District Judge for the Southern District of Texas, who shall appoint the third arbitrator. While the third arbitrator shall be neutral, the two party-appointed arbitrators are not required to be neutral and it shall not be grounds for removal
of either of the two party-appointed arbitrators or for vacating the arbitrators’ award that either of 
  

 -26- 

 such arbitrators has past or present minimal relationships with the party that appointed such arbitrator. Evident
partiality on the part of an arbitrator exists only where the circumstances are such that a reasonable person would have to conclude there in fact existed actual bias and a mere appearance or impression of bias will not constitute evident partiality
or otherwise disqualify an arbitrator. Minimal or trivial past or present relationships between the neutral arbitrator and the party selecting such arbitrator or any of the other arbitrators, or the failure to disclose such minimal or trivial past
or present relationships, will not by themselves constitute evident partiality or otherwise disqualify any arbitrator. Upon selection of the third arbitrator, each of the three arbitrators shall agree in writing to abide faithfully by the terms of
this agreement to arbitrate. The three arbitrators shall make all of their decisions by majority vote. If one of the party-appointed arbitrators refuses to participate in the proceedings or refuses to vote, the decision of the other two arbitrators
shall be binding. If an arbitrator dies or becomes physically incapacitated and is unable to fulfill his or her duties as an arbitrator, the arbitration proceeding shall continue with a substitute arbitrator selected as follows: if the incapacitated
arbitrator is a party-appointed arbitrator, the party shall promptly select a new arbitrator, and if the incapacitated arbitrator is the neutral arbitrator, the two-party appointed arbitrators shall select a substitute neutral arbitrator, failing
agreement on which the General Partner and such Limited Partners (or either of them) shall apply to any United States District Judge for the Southern District of Texas, who shall appoint the substitute neutral arbitrator. 
  
 (f) The final hearing shall be conducted within 120 days of the selection of
the third arbitrator. The final hearing shall not exceed ten working days, with each party to be granted one-half of the allocated time to present its case to the arbitrators. There shall be a transcript of the hearing before the arbitrators. The
arbitrators shall render their ultimate decision within 20 days of the completion of the final hearing completely resolving all of the Disputes between the parties that are the subject of the arbitration proceeding. The arbitrators’ ultimate
decision after final hearing shall be in writing, but shall be as brief as possible, and the arbitrators shall assign their reasons for their ultimate decision. In the case the arbitrators award any monetary damages in favor of either party, the
arbitrators shall certify in their award that they have not included any treble, exemplary or punitive damages. 
  
 (g) The arbitrators’ award shall, as between the parties to this Agreement and those in privity with them, be final and entitled to all of the
protections and benefits of a final judgment, e.g., res judicata (claim preclusion) and collateral estoppel (issue preclusion), as to all Disputes, including compulsory counterclaims, that were or could have been presented to the arbitrators. The
arbitrators’ award shall not be reviewable by or appealable to any court, except to the extent permitted by the Federal Arbitration Act. 
  
 (h) It is the intent of the parties that the arbitration proceeding shall be conducted expeditiously, without initial recourse to the courts and without
interlocutory appeals of the arbitrators’ decisions to the courts. However, if a party refuses to honor its obligations under this agreement to arbitrate, the other party may obtain appropriate relief compelling arbitration in any court having
jurisdiction over the parties; the order compelling arbitration shall require that the arbitration proceedings take place in Houston, Texas, as specified above. The parties may apply to any court for orders requiring witnesses to obey subpoenas
issued by the arbitrators. Moreover, any and all of the arbitrators’ orders and decisions may be enforced if necessary by any court. The arbitrators’ award may be confirmed in, and judgment upon the award entered by, any federal or State
court having jurisdiction over the parties. 
  

 -27- 

 (i) To the fullest extent permitted by law, this arbitration proceeding and the arbitrators award shall
be maintained in confidence by the parties. However, a violation of this covenant shall not affect the enforceability of this arbitration agreement or of the arbitrators’ award. 
  
 (j) A party’s breach of this Agreement shall not affect this agreement to arbitrate. Moreover, the parties’
obligations under this arbitration provision are enforceable even after this Agreement has terminated. The invalidity or unenforceability of any provision of this arbitration agreement shall not affect the validity or enforceability of the
parties’ obligation to submit their Disputes to binding arbitration or the other provisions of this agreement to arbitrate. 
  
 12.13 No Effect on Employment Relationship. Nothing in this Agreement shall confer upon any employee of the General Partner or any Affiliate
thereof any right to continued employment nor shall it interfere in any way with the right of the General Partner or any of its Affiliates to terminate the employment of any employee at any time. 
  
 12.14 Legal Representation. This Agreement and related documents have
been prepared by Vinson & Elkins L.L.P., as counsel for the General Partner, and not as counsel for any other Partner or the Partnership. Each party other than the General Partner has been advised to seek independent counsel in connection with
this Agreement and the related documents. 
  

 -28- 

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

  

					
	GENERAL PARTNER:	 	EPCO, INC.
			
	 	 	By:	 	 /s/ Richard H. Bachmann

	 	 	 	 	Richard H. Bachmann
	 	 	 	 	Executive Vice President
		
	CLASS A LIMITED PARTNER:	 	DUNCAN FAMILY INTERESTS, INC.
			
	 	 	By:	 	 /s/ Victoria L. Garrett

	 	 	 	 	Victoria L. Garrett
	 	 	 	 	Secretary
		
	CLASS B LIMITED PARTNERS:	 	All Class B Limited Partners initially admitted as Class B Limited Partners of the Partnership, pursuant to Powers of Attorney executed in favor of, and granted and delivered to the
General Partner
			
	 	 	By:	 	EPCO, INC.
	 	 	(As attorney-in-fact for the Class B Limited Partners pursuant to powers of attorney)
			
	 	 	By:	 	 /s/ Richard H. Bachmann

	 	 	 	 	Richard H. Bachmann
	 	 	 	 	Executive Vice PresidentForm of Indemnification Agreement

 EXHIBIT 10.3 
  
 FORM OF 
  
 MEDICINOVA, INC. 
  
 INDEMNIFICATION AGREEMENT 
  
 This Indemnification Agreement (this “Agreement”) is entered into as of
                                 , 200     (the
“Effective Date”), by and between MEDICINOVA, INC., a Delaware corporation (the “Company”), and                     
(“Indemnitee”). 
  
 RECITALS 
  
 A. Indemnitee is either a member of the board of directors of the Company
(the “Board of Directors”) or an officer of the Company, or both, and in such capacity or capacities, or otherwise as an Agent (as hereinafter defined) of the Company, is performing a valuable service for the Company. 
  
 B. Indemnitee is willing to serve, continue to serve and to take on
additional service for or on behalf of the Company on the condition that he or she be indemnified as herein provided. 
  
 C. It is intended that Indemnitee shall be paid promptly by the Company all amounts necessary to effectuate in full the indemnity provided herein.

  
 NOW, THEREFORE, in consideration of the premises and the
covenants in this Agreement, and of Indemnitee continuing to serve the Company as an Agent and intending to be legally bound hereby, the parties hereto agree as follows: 
  
 1. Services by Indemnitee. Indemnitee agrees to serve (a) as a director or an officer of the Company, or both, so
long as Indemnitee is duly appointed or elected and qualified in accordance with the applicable provisions of the Certificate of Incorporation and bylaws of the Company, and until such time as Indemnitee resigns or fails to stand for election or is
removed from Indemnitee’s position, or (b) as an Agent of the Company. Indemnitee may from time to time also perform other services at the request or for the convenience of, or otherwise benefiting, the Company. Indemnitee may at any time and
for any reason resign or be removed from such position (subject to any other contractual obligation or other obligation imposed by operation of law), in which event the Company shall have no obligation under this Agreement to continue Indemnitee in
any such position. 
  
 2. Indemnification. Subject to the
limitations set forth herein and in Section 6 hereof, the Company hereby agrees to indemnify Indemnitee as follows: 
  
 The Company shall, with respect to any Proceeding (as hereinafter defined) associated with Indemnitee’s being an Agent of the Company, indemnify
Indemnitee to the fullest extent 

  

 MEDICINOVA, INC. 
 INDEMNIFICATION AGREEMENT 

 
permitted by applicable law and the Certificate of Incorporation of the Company in effect on the date hereof or as such law or Certificate of Incorporation
may from time to time be amended (but, in the case of any such amendment, only to the extent such amendment permits the Company to provide broader indemnification rights than the law or Certificate of Incorporation permitted the Company to provide
before such amendment). The right to indemnification conferred herein and in the Certificate of Incorporation shall be presumed to have been relied upon by Indemnitee in serving or continuing to serve the Company as an Agent and shall be enforceable
as a contract right. Without in any way diminishing the scope of the indemnification provided by this Section 2, the Company will indemnify Indemnitee to the full extent permitted by law if and wherever Indemnitee is or was a party or is threatened
to be made a party to any Proceeding, including any Proceeding brought by or in the right of the Company, by reason of the fact that Indemnitee is or was an Agent or by reason of anything done or not done by Indemnitee in such capacity, against
Expenses (as hereinafter defined) and Liabilities (as hereinafter defined) actually and reasonably incurred by Indemnitee or on his or her behalf in connection with the investigation, defense, settlement or appeal of such Proceeding. In addition to,
and not as a limitation of, the foregoing, the rights of indemnification of Indemnitee provided under this Agreement shall include those rights set forth in Sections 3 and 8 below. Notwithstanding the foregoing, the Company shall be required to
indemnify Indemnitee in connection with a Proceeding commenced by Indemnitee (other than a Proceeding commenced by Indemnitee to enforce Indemnitee’s rights under this Agreement) only if the commencement of such Proceeding was authorized by the
Board of Directors. 
  
 3. Advancement of Expenses. All
reasonable Expenses incurred by or on behalf of Indemnitee (including costs of enforcement of this Agreement) shall be advanced from time to time by the Company to Indemnitee within thirty (30) days after the receipt by the Company of a written
request for an advance of Expenses, whether prior to or after final disposition of a Proceeding (except to the extent that there has been a Final Adverse Determination (as hereinafter defined) that Indemnitee is not entitled to be indemnified for
such Expenses), including, without limitation, any Proceeding brought by or in the right of the Company. The written request for an advancement of any and all Expenses under this paragraph shall contain reasonable detail of the Expenses incurred by
Indemnitee. In the event that such written request shall be accompanied by an affidavit of counsel to Indemnitee to the effect that such counsel has reviewed such Expenses and that such Expenses are reasonable in such counsel’s view, then such
expenses shall be deemed reasonable in the absence of clear and convincing evidence to the contrary. By execution of this Agreement, Indemnitee shall be deemed to have made whatever undertaking as may be required by law at the time of any
advancement of Expenses with respect to repayment to the Company of such Expenses. In the event that the Company shall breach its obligation to advance Expenses under this Section 3, the parties hereto agree that Indemnitee’s remedies available
at law would not be adequate and that Indemnitee would be entitled to specific performance. 
  
 4. Presumptions and Effect of Certain Proceedings. Upon making a request for indemnification, Indemnitee shall be presumed to be entitled to indemnification under this Agreement and the Company shall have the
burden of proof to overcome that presumption in reaching any contrary determination. The termination of any Proceeding by judgment, order, 

  

 MEDICINOVA, INC. 
 INDEMNIFICATION AGREEMENT 

 
settlement, arbitration award or conviction, or upon a plea of nolo contendere or its equivalent shall not affect this presumption or, except as determined
by a judgment or other final adjudication adverse to Indemnitee, establish a presumption with regard to any factual matter relevant to determining Indemnitee’s rights to indemnification hereunder. If the person or persons so empowered to make a
determination pursuant to Section 5 hereof shall have failed to make the requested determination within ninety (90) days after any judgment, order, settlement, dismissal, arbitration award, conviction, acceptance of a plea of nolo contendere or its
equivalent, or other disposition or partial disposition of any Proceeding or any other event that could enable the Company to determine Indemnitee’s entitlement to indemnification, the requisite determination that Indemnitee is entitled to
indemnification shall be deemed to have been made. 
  
 5.
Procedure for Determination of Entitlement to Indemnification. 
  
 (a) Whenever Indemnitee believes that Indemnitee is entitled to indemnification pursuant to this Agreement, Indemnitee shall submit a written request for indemnification to the Company. Any request for indemnification
shall include sufficient documentation or information reasonably available to Indemnitee for the determination of entitlement to indemnification. In any event, Indemnitee shall submit Indemnitee’s claim for indemnification within a reasonable
time, not to exceed five (5) years after any judgment, order, settlement, dismissal, arbitration award, conviction, acceptance of a plea of nolo contendere or its equivalent, or final determination, whichever is the later date for which Indemnitee
requests indemnification. The Secretary or other appropriate officer shall, promptly upon receipt of Indemnitee’s request for indemnification, advise the Board of Directors in writing that Indemnitee has made such request. Determination of
Indemnitee’s entitlement to indemnification shall be made not later than ninety (90) days after the Company’s receipt of Indemnitee’s written request for such indemnification, provided that any request for indemnification for
Liabilities, other than amounts paid in settlement, shall have been made after a determination thereof in a Proceeding. 
  
 (b) The Company shall be entitled to select the forum in which Indemnitee’s entitlement to indemnification will be heard; provided,
however, that if there is a Change in Control of the Company, Independent Legal Counsel (as hereinafter defined) shall determine whether Indemnitee is entitled to indemnification. The forum shall be any one of the following: 
  
 (i) the stockholders of the Company; 
  
 (ii) a majority vote of Disinterested Directors (as
hereinafter defined), even though less than a quorum; 
  
 (iii) Independent Legal Counsel, whose determination shall be made in a written opinion; or 
  
 (iv) a panel of three (3) arbitrators, one selected by the Company, another by Indemnitee and the third by the first two arbitrators; or
if for any reason three (3) 

  

 MEDICINOVA, INC. 
 INDEMNIFICATION AGREEMENT 

 
arbitrators are not selected within thirty (30) days after the appointment of the first arbitrator, then selection of additional arbitrators shall be made by
the American Arbitration Association. If any arbitrator resigns or is unable to serve in such capacity for any reason, the American Arbitration Association shall select such arbitrator’s replacement. The arbitration shall be conducted pursuant
to the commercial arbitration rules of the American Arbitration Association now in effect. 
  
 6. Specific Limitations on Indemnification. Notwithstanding anything in this Agreement to the contrary, the Company shall not be obligated under this Agreement to make any payment to Indemnitee with respect to
any Proceeding: 
  
 (a) To the extent that
payment is actually made to Indemnitee under any insurance policy, or is made to Indemnitee by the Company or an affiliate otherwise than pursuant to this Agreement. Notwithstanding the availability of such insurance, Indemnitee also may claim
indemnification from the Company pursuant to this Agreement by assigning to the Company any claims under such insurance to the extent Indemnitee is paid by the Company; 
  
 (b) Provided there has been no Change in Control, for Liabilities in connection with Proceedings settled
without the Company’s consent, which consent, however, shall not be unreasonably withheld; 
  
 (c) For an accounting of profits made from the purchase or sale by Indemnitee of securities of the Company within the meaning of Section
16(b) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or similar provisions of any state statutory or common law; or 
  
 (d) To the extent it would be otherwise prohibited by law, if so established by a judgment or other final adjudication adverse to
Indemnitee. 
  
 7. Fees and Expenses of Independent Legal
Counsel or Arbitrators. The Company agrees to pay the reasonable fees and expenses of Independent Legal Counsel or a panel of three arbitrators should such Independent Legal Counsel or such arbitrators be retained to make a determination of
Indemnitee’s entitlement to indemnification pursuant to Section 5(b) of this Agreement, and to fully indemnify such Independent Legal Counsel or arbitrators against any and all expenses and losses incurred by any of them arising out of or
relating to this Agreement or their engagement pursuant hereto. 
  
 8. Remedies of Indemnitee. 
  
 (a) In the event that (i) a determination pursuant to Section 5 hereof is made that Indemnitee is not entitled to indemnification, (ii) advances of Expenses are not made pursuant to this Agreement, (iii) payment has not been timely made
following a determination of entitlement to indemnification pursuant to this Agreement or (iv) Indemnitee otherwise seeks enforcement of this Agreement, Indemnitee shall be entitled to a final adjudication in the Court of Chancery of the State of
Delaware of the remedy sought. Alternatively, unless (x) the determination was made by a panel of arbitrators pursuant to Section 5(b)(iv) hereof, or (y) court 

  

 MEDICINOVA, INC. 
 INDEMNIFICATION AGREEMENT 

 
approval is required by law for the indemnification sought by Indemnitee, Indemnitee at Indemnitee’s option may seek an award in arbitration to be
conducted by a single arbitrator pursuant to the commercial arbitration rules of the American Arbitration Association now in effect, which award is to be made within ninety (90) days following the filing of the demand for arbitration. The Company
shall not oppose Indemnitee’s right to seek any such adjudication or arbitration award. In any such proceeding or arbitration, Indemnitee shall be presumed to be entitled to indemnification and advancement of Expenses under this Agreement and
the Company shall have the burden of proof to overcome that presumption. 
  
 (b) In the event that a determination that Indemnitee is not entitled to indemnification, in whole or in part, has been made pursuant to Section 5 hereof, the decision in the judicial proceeding or arbitration
provided in paragraph (a) of this Section 8 shall be made de novo and Indemnitee shall not be prejudiced by reason of a determination that Indemnitee is not entitled to indemnification. 
  
 (c) If a determination that Indemnitee is entitled to
indemnification has been made pursuant to Section 5 hereof, or is deemed to have been made pursuant to Section 4 hereof or otherwise pursuant to the terms of this Agreement, the Company shall be bound by such determination in the absence of a
misrepresentation or omission of a material fact by Indemnitee in connection with such determination. 
  
 (d) The Company shall be precluded from asserting that the procedures and presumptions of this Agreement are not valid, binding and
enforceable. The Company shall stipulate in any such court or before any such arbitrator that the Company is bound by all of the provisions of this Agreement and is precluded from making any assertion to the contrary. 
  
 (e) Expenses reasonably incurred by Indemnitee in connection
with Indemnitee’s request for indemnification under, seeking enforcement of or to recover damages for breach of this Agreement shall be borne by the Company when and as incurred by Indemnitee irrespective of any Final Adverse Determination that
Indemnitee is not entitled to indemnification. 
  
 9.
Contribution. To the fullest extent permissible under applicable law, if the indemnification provided for in this Agreement is unavailable to Indemnitee for any reason whatsoever, the Company, in lieu of indemnifying Indemnitee, shall
contribute to the amount incurred by Indemnitee, whether for judgments, fines, penalties, excise taxes, amounts paid or to be paid in settlement and/or for Expenses, in connection with any claim relating to an indemnifiable event under this
Agreement, in such proportion as is deemed fair and reasonable in light of all of the circumstances of such Proceeding in order to reflect (a) the relative benefits received by the Company and Indemnitee as a result of the event(s) and/or
transaction(s) giving cause to such Proceeding; and/or (b) the relative fault of the Company (and its directors, officers, employees and agents) and Indemnitee in connection with such event(s) and/or transaction(s). 
  
 10. Maintenance of Insurance. Upon the Company’s purchase of
directors’ and officers’ liability insurance policies covering its directors and officers, then, subject only to the 

  

 MEDICINOVA, INC. 
 INDEMNIFICATION AGREEMENT 

 
provisions within this Section 10, the Company agrees that so long as Indemnitee shall have consented to serve or shall continue to serve as a director or
officer of the Company, or both, or as an Agent of the Company, and thereafter so long as Indemnitee shall be subject to any possible Proceeding (such periods being hereinafter sometimes referred to as the “Indemnification Period”), the
Company will use all reasonable efforts to maintain in effect for the benefit of Indemnitee one or more valid, binding and enforceable policies of directors’ and officers’ liability insurance from established and reputable insurers,
providing, in all respects, coverage both in scope and amount which is no less favorable than that provided by such preexisting policies. Notwithstanding the foregoing, the Company shall not be required to maintain said policies of directors’
and officers’ liability insurance during any time period if during such period such insurance is not reasonably available or if it is determined in good faith by the then directors of the Company either that: 
  
 (a) The premium cost of maintaining such insurance is
substantially disproportionate to the amount of coverage provided thereunder; or 
  
 (b) The protection provided by such insurance is so limited by exclusions, deductions or otherwise that there is insufficient benefit to
warrant the cost of maintaining such insurance. 
  
 Anything in
this Agreement to the contrary notwithstanding, to the extent that and for so long as the Company shall choose to continue to maintain any policies of directors’ and officers’ liability insurance during the Indemnification Period, the
Company shall maintain similar and equivalent insurance for the benefit of Indemnitee during the Indemnification Period (unless such insurance shall be less favorable to Indemnitee than the Company’s existing policies). 
  
 11. Modification, Waiver, Termination and Cancellation. No supplement,
modification, termination, cancellation or amendment of this Agreement shall be binding unless executed in writing by both of the parties hereto. No waiver of any of the provisions of this Agreement shall be deemed or shall constitute a waiver of
any other provisions hereof (whether or not similar), nor shall such waiver constitute a continuing waiver. 
  
 12. Subrogation. In the event of payment under this Agreement, the Company shall be subrogated to the extent of such payment to all of the rights
of recovery of Indemnitee, who shall execute all papers required and shall do everything that may be necessary to secure such rights, including the execution of such documents necessary to enable the Company effectively to bring suit to enforce such
rights. 
  
 13. Notice by Indemnitee and Defense of Claim.
Indemnitee shall promptly notify the Company in writing upon being served with any summons, citation, subpoena, complaint, indictment, information or other document relating to any matter, whether civil, criminal, administrative or investigative,
but the omission so to notify the Company will not relieve it from any liability that it may have to Indemnitee if such omission does not prejudice the Company’s rights. If such omission does prejudice the Company’s rights, the Company
will be relieved from liability only to the extent of such prejudice. Notwithstanding the foregoing, such omission 

  

 MEDICINOVA, INC. 
 INDEMNIFICATION AGREEMENT 

 
will not relieve the Company from any liability that it may have to Indemnitee otherwise than under this Agreement. With respect to any Proceeding as to
which Indemnitee notifies the Company of the commencement thereof: 
  
 (a) The Company will be entitled to participate therein at its own expense; and 
  
 (b) The Company jointly with any other indemnifying party similarly notified will be entitled to assume the defense thereof, with counsel
reasonably satisfactory to Indemnitee; provided, however, that the Company shall not be entitled to assume the defense of any Proceeding if there has been a Change in Control or if Indemnitee shall have reasonably concluded that there may be a
conflict of interest between the Company and Indemnitee with respect to such Proceeding. After notice from the Company to Indemnitee of its election to assume the defense thereof, the Company will not be liable to Indemnitee under this Agreement for
any Expenses subsequently incurred by Indemnitee in connection with the defense thereof, other than reasonable costs of investigation or as otherwise provided below. Indemnitee shall have the right to employ Indemnitee’s own counsel in such
Proceeding, but the fees and expenses of such counsel incurred after notice from the Company of its assumption of the defense thereof shall be at the expense of Indemnitee unless: 
  
 (i) the employment of counsel by Indemnitee has been authorized by the Company; 
  
 (ii) Indemnitee shall have reasonably concluded that counsel
engaged by the Company may not adequately represent Indemnitee due to, among other things, actual or potential differing interests; or 
  
 (iii) the Company shall not in fact have employed counsel to assume the defense in such Proceeding or shall not in fact have assumed such
defense and be acting in connection therewith with reasonable diligence; in each of which cases the fees and expenses of such counsel shall be at the expense of the Company. 
  
 (c) The Company shall not settle any Proceeding in any manner that would impose any penalty or limitation on
Indemnitee without Indemnitee’s written consent; provided, however, that Indemnitee will not unreasonably withhold his or her consent to any proposed settlement. 
  
 14. Notices. All notices, requests, demands and other communications hereunder shall be in writing and shall be
deemed to have been duly given if (a) delivered by hand and receipted for by the party to whom said notice or other communication shall have been directed, (b) delivered by facsimile with telephone confirmation of receipt or (c) mailed by certified
or registered mail with postage prepaid, on the third business day after the date on which it is so mailed: 
  
 (a) If to Indemnitee, to the address or facsimile number set forth on the signature page hereto. 
  

 MEDICINOVA, INC. 
 INDEMNIFICATION AGREEMENT 

 (b) If to the Company, to: 
  
 MediciNova, Inc. 
 4350 La Jolla Village Drive, Suite 950 
 San Diego, CA 92122 
 Attn: Takashi Kiyoizumi, M.D., Ph.D., President and CEO 
  
 or to such other address as may have been furnished to Indemnitee by the Company or to the Company by Indemnitee, as the case may be. 
  
 15. Nonexclusivity. The rights of Indemnitee hereunder shall not be
deemed exclusive of any other rights to which Indemnitee may be entitled under applicable law, the Company’s Certificate of Incorporation or bylaws, or any agreements, vote of stockholders, resolution of the Board of Directors or otherwise, and
to the extent that during the Indemnification Period the rights of the then existing directors and officers are more favorable to such directors or officers than the rights currently provided to Indemnitee thereunder or under this Agreement,
Indemnitee shall be entitled to the full benefits of such more favorable rights. 
  
 16. Certain Definitions. 
  
 (a) “Agent” shall mean any person who is or was, or who has consented to serve as, a director, officer, employee, agent, fiduciary, joint venturer, partner, manager or other official of the Company or a
subsidiary or an affiliate of the Company, or any other entity (including without limitation, an employee benefit plan) either at the request of, for the convenience of, or otherwise to benefit the Company or a subsidiary of the Company. 

 
 (b) “Change in Control” shall mean the
occurrence of any of the following: 
  
 (i) Both
(A) any “person” (as defined below) is or becomes the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company representing at least twenty percent (20%) of the
total voting power represented by the Company’s then outstanding voting securities and (B) the beneficial ownership by such person of securities representing such percentage has not been approved by a majority of the “continuing
directors” (as defined below); 
  
 (ii) Any
“person” is or becomes the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company representing at least fifty percent (50%) of the total voting power represented
by the Company’s then outstanding voting securities; 
  
 (iii) A change in the composition of the Board of Directors occurs, as a result of which fewer than two-thirds of the incumbent directors are directors who either (A) had been directors of the Company on the
“look-back date” (as defined below) (the “Original Directors”) or (B) were elected, or nominated for election, to the Board of Directors with the affirmative votes of at least a majority in the aggregate of the Original Directors
who were still in 

  

 MEDICINOVA, INC. 
 INDEMNIFICATION AGREEMENT 

 
office at the time of the election or nomination and directors whose election or nomination was previously so approved (the “continuing
directors”); 
  
 (iv) The stockholders of
the Company approve a merger or consolidation of the Company with any other corporation, if such merger or consolidation would result in the voting securities of the Company outstanding immediately prior thereto representing (either by remaining
outstanding or by being converted into voting securities of the surviving entity) fifty percent (50%) or less of the total voting power represented by the voting securities of the Company or such surviving entity outstanding immediately after such
merger or consolidation; or 
  
 (v) The
stockholders of the Company approve (A) a plan of complete liquidation of the Company or (B) an agreement for the sale or disposition by the Company of all or substantially all of the Company’s assets. 
  
 For purposes of Subsection (i) above, the term “person” shall have
the same meaning as when used in Sections 13(d) and 14(d) of the Exchange Act, but shall exclude (x) a trustee or other fiduciary holding securities under an employee benefit plan of the Company or of a parent or subsidiary of the Company or (y) a
corporation owned directly or indirectly by the stockholders of the Company in substantially the same proportions as their ownership of the common stock of the Company. 
  
 For purposes of Subsection (iii) above, the term “look-back date” shall mean the later of (x) the Effective Date
and (y) the date twenty-four (24) months prior to the date of the event that may constitute a “Change in Control.” 
  
 Any other provision of this Section 16(b) notwithstanding, the term “Change in Control” shall not include a transaction, if undertaken at the
election of the Company, the result of which is to sell all or substantially all of the assets of the Company to another corporation (the “surviving corporation”); provided that the surviving corporation is owned directly or indirectly by
the stockholders of the Company immediately following such transaction in substantially the same proportions as their ownership of the Company’s common stock immediately preceding such transaction; and provided, further, that the surviving
corporation expressly assumes this Agreement. 
  
 (c) “Disinterested Director” shall mean a director of the Company who is not or was not a party to or otherwise involved in the Proceeding in respect of which indemnification is being sought by Indemnitee. 
  
 (d) “Expenses” shall include all direct and
indirect costs (including, without limitation, attorneys’ fees, retainers, court costs, transcripts, fees of experts, witness fees, travel expenses, duplicating costs, printing and binding costs, telephone charges, postage, delivery service
fees, all other disbursements or out-of-pocket expenses and reasonable compensation for time spent by Indemnitee for which Indemnitee is otherwise not compensated by the Company or any third party) actually and reasonably incurred in connection with
either the investigation, 

  

 MEDICINOVA, INC. 
 INDEMNIFICATION AGREEMENT 

 
defense, settlement or appeal of a Proceeding or establishing or enforcing a right to indemnification under this Agreement, applicable law or otherwise;
provided, however, that “Expenses” shall not include any Liabilities. 
  
 (e) “Final Adverse Determination” shall mean that a determination that Indemnitee is not entitled to indemnification
shall have been made pursuant to Section 5 hereof and either (1) a final adjudication in the Court of Chancery of the State of Delaware or decision of an arbitrator pursuant to Section 8(a) hereof shall have denied Indemnitee’s right to
indemnification hereunder, or (2) Indemnitee shall have failed to file a complaint in a Delaware court or seek an arbitrator’s award pursuant to Section 8(a) for a period of one hundred twenty (120) days after the determination made pursuant to
Section 5 hereof. 
  
 (f) “Independent
Legal Counsel” shall mean a law firm or a member of a firm selected by the Company and approved by Indemnitee (which approval shall not be unreasonably withheld) or, if there has been a Change in Control, selected by Indemnitee and approved
by the Company (which approval shall not be unreasonably withheld), that neither is presently nor in the past five (5) years has been retained to represent: (i) the Company or any of its subsidiaries or affiliates, or Indemnitee or any corporation
of which Indemnitee was or is a director, officer, employee or agent, or any subsidiary or affiliate of such a corporation, in any material matter, or (ii) any other party to the Proceeding giving rise to a claim for indemnification hereunder.
Notwithstanding the foregoing, the term “Independent Legal Counsel” shall not include any person who, under the applicable standards of professional conduct then prevailing, would have a conflict of interest in representing either the
Company or Indemnitee in an action to determine Indemnitee’s right to indemnification under this Agreement. 
  
 (g) “Liabilities” shall mean liabilities of any type whatsoever including, but not limited to, any judgments, fines,
ERISA excise taxes and penalties, penalties and amounts paid in settlement (including all interest assessments and other charges paid or payable in connection with or in respect of such judgments, fines, penalties or amounts paid in settlement) of
any Proceeding. 
  
 (h)
“Proceeding” shall mean any threatened, pending or completed action, claim, suit, arbitration, alternate dispute resolution mechanism, investigation, administrative hearing or any other proceeding whether civil, criminal,
administrative or investigative, that is associated with Indemnitee’s being an Agent of the Company. 
  
 17. Binding Effect; Duration and Scope of Agreement. This Agreement shall be binding upon and inure to the benefit of and be enforceable by the
parties hereto and their respective successors and assigns (including any direct or indirect successor by purchase, merger, consolidation or otherwise to all or substantially all of the business or assets of the Company), spouses, heirs and personal
and legal representatives. This Agreement shall continue in effect during the Indemnification Period, regardless of whether Indemnitee continues to serve as an Agent. 
  

 MEDICINOVA, INC. 
 INDEMNIFICATION AGREEMENT 

 18. Severability. If any provision or provisions of this Agreement (or any portion thereof) shall
be held to be invalid, illegal or unenforceable for any reason whatsoever: 
  
 (a) the validity, legality and enforceability of the remaining provisions of this Agreement shall not in any way be affected or impaired thereby; and 
  
 (b) to the fullest extent legally possible, the provisions of this Agreement shall be construed so as to
give effect to the intent of any provision held invalid, illegal or unenforceable. 
  
 19. Governing Law. This Agreement shall be governed by and construed and enforced in accordance with the laws of the State of Delaware, as applied to contracts between Delaware residents entered into and to be
performed entirely within the State of Delaware, without regard to conflict of laws rules. 
  
 20. Consent to Jurisdiction. The Company and Indemnitee each irrevocably consent to the jurisdiction of the courts of the State of Delaware for all purposes in connection with any action or proceeding that
arises out of or relates to this Agreement and agree that any action instituted under this Agreement shall be brought only in the state courts of the State of Delaware. 
  
 21. Entire Agreement. This Agreement represents the entire agreement between the parties hereto, and there are no
other agreements, contracts or understandings between the parties hereto with respect to the subject matter of this Agreement, except as specifically referred to herein or as provided in Section 15 hereof. 
  
 22. Counterparts. This Agreement may be executed in one or more
counterparts, each of which shall for all purposes be deemed to be an original but all of which together shall constitute one and the same Agreement. 
  
 [REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK.] 
  

 MEDICINOVA, INC. 
 INDEMNIFICATION AGREEMENT 

 IN WITNESS WHEREOF, the Company has caused this Agreement to be executed by a duly authorized officer and
Indemnitee has executed this Agreement as of the date first above written. 
  

			
	 MEDICINOVA, INC.,
 a Delaware corporation

		
	 By
	 	 
	 	 	 Takashi Kiyoizumi, M.D., Ph.D.

	 	 	 President and Chief Executive Officer

  

			
	 INDEMNITEE

		
	 Signature
	 	 
		
	 Print Name
	 	 
		
	 Address
	 	 
		
	 	 	 
		
	 Telephone
	 	 
		
	 Facsimile
	 	 
		
	 E-mail
	 	 

  

 MEDICINOVA, INC. 
 INDEMNIFICATION AGREEMENT

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