Document:

exv10w17

 

EXHIBIT
10.17

 

 

AMENDED AND RESTATED

AGREEMENT OF LIMITED PARTNERSHIP

OF

SABINE PROPYLENE PIPELINE L.P.

 

 

 

 

AMENDED AND RESTATED

AGREEMENT OF LIMITED PARTNERSHIP

OF

SABINE PROPYLENE PIPELINE L.P.

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 
	 	ARTICLE I: DEFINITIONS	 	 	 	 
	 
	 	 	 	 	 	 
	1.01
	 	Certain Definitions	 	 	2	 
	1.02
	 	Other Definitions	 	 	4	 
	1.03
	 	Construction	 	 	4	 
	 
	 	 	 	 	 	 
	 
	 	ARTICLE II: ORGANIZATION	 	 	 	 
	 
	 	 	 	 	 	 
	2.01
	 	Formation and Continuation	 	 	4	 
	2.02
	 	Name	 	 	4	 
	2.03
	 	Offices	 	 	4	 
	2.04
	 	Purposes	 	 	4	 
	2.05
	 	Certificate; Foreign Qualification	 	 	5	 
	2.06
	 	Term	 	 	5	 
	2.07
	 	Merger	 	 	5	 
	 
	 	 	 	 	 	 
	 
	 	ARTICLE III: PARTNERS AND PARTNERSHIP INTERESTS	 	 	 	 
	 
	 	 	 	 	 	 
	3.01
	 	Partners	 	 	5	 
	3.02
	 	No Dispositions of Partnership Interests	 	 	5	 
	3.03
	 	Additional Partnership Interests	 	 	5	 
	 
	 	 	 	 	 	 
	 
	 	ARTICLE IV: CAPITAL CONTRIBUTIONS	 	 	 	 
	 
	 	 	 	 	 	 
	4.01
	 	Initial Contributions	 	 	6	 
	4.02
	 	Subsequent Contributions	 	 	6	 
	4.03
	 	Advances by Partners	 	 	6	 
	4.04
	 	Capital Accounts	 	 	6	 
	 
	 	 	 	 	 	 
	 
	 	ARTICLE V: ALLOCATIONS AND DISTRIBUTIONS	 	 	 	 
	 
	 	 	 	 	 	 
	5.01
	 	Allocations	 	 	7	 
	5.02
	 	Distributions	 	 	8	 
	 
	 	 	 	 	 	 
	 
	 	ARTICLE VI: MANAGEMENT AND OPERATION	 	 	 	 
	 
	 	 	 	 	 	 
	6.01
	 	Management of Partnership Affairs	 	 	9	 
	6.02
	 	Compensation	 	 	9	 
	6.03
	 	Standards and Conflicts	 	 	9	 
	6.04
	 	Indemnification	 	 	10	 
	6.05
	 	Power of Attorney	 	 	10	 
	 
	 	 	 	 	 	 
	 
	 	ARTICLE VII: RIGHTS OF LIMITED PARTNERS	 	 	 	 
	 
	 	 	 	 	 	 
	7.01
	 	Information	 	 	10	 
	7.02
	 	Withdrawal	 	 	11	 
	7.03
	 	Consents and Voting	 	 	11	 

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	7.04
	 	Meetings	 	 	11	 
	 
	 	 	 	 	 	 
	 
	 	ARTICLE VIII: TAXES	 	 	 	 
	 
	 	 	 	 	 	 
	8.01
	 	Tax Returns	 	 	12	 
	8.02
	 	Tax Elections	 	 	12	 
	8.03
	 	Tax Matters Partner	 	 	12	 
	 
	 	 	 	 	 	 
	 
	 	ARTICLE IX: BOOKS, RECORDS, REPORTS, AND BANK ACCOUNTS	 	 	 	 
	 
	 	 	 	 	 	 
	9.01
	 	Maintenance of Books	 	 	12	 
	9.02
	 	Reports	 	 	12	 
	9.03
	 	Accounts	 	 	13	 
	 
	 	 	 	 	 	 
	 
	 	ARTICLE X: WITHDRAWAL, BANKRUPTCY, ETC. OF GENERAL PARTNER	 	 
	 
	 	 	 	 	 	 
	10.01
	 	Withdrawal, Bankruptcy, Etc. of General Partner	 	 	13	 
	10.02
	 	Conversion of Interest	 	 	14	 
	 
	 	 	 	 	 	 
	 
	 	ARTICLE XI: DISSOLUTION, LIQUIDATION, AND TERMINATION	 	 	 	 
	 
	 	 	 	 	 	 
	11.01
	 	Dissolution	 	 	14	 
	11.02
	 	Liquidation and Termination	 	 	14	 
	11.03
	 	Termination	 	 	16	 
	 
	 	 	 	 	 	 
	 
	 	ARTICLE XII: GENERAL PROVISIONS	 	 	 	 
	 
	 	 	 	 	 	 
	12.01
	 	Offset	 	 	16	 
	12.02
	 	Notices	 	 	16	 
	12.03
	 	Entire Agreement; Supersedure	 	 	16	 
	12.04
	 	Effect of Waiver or Consent	 	 	16	 
	12.05
	 	Amendment or Modification	 	 	16	 
	12.06
	 	Binding Effect	 	 	16	 
	12.07
	 	Governing Law; Severability	 	 	16	 
	12.08
	 	Further Assurances	 	 	17	 
	12.09
	 	Waiver of Certain Rights	 	 	17	 
	12.10
	 	Indemnification	 	 	17	 
	12.11
	 	Counterparts	 	 	17	 

EXHIBITS:

	 	 	 	A            Names, Addresses and Sharing Ratios of Partners

 ii

 

 

AMENDED AND RESTATED

AGREEMENT OF LIMITED PARTNERSHIP

OF

SABINE PROPYLENE PIPELINE L.P.

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

RECITALS

     WHEREAS, the Partnership was formed under the laws of the State of Texas by the Original
General Partner’s filing with the Secretary of State of Texas on August 10, 2000 an Original
Certificate of Limited Partnership and the execution by the Original General Partner and Original
Limited Partner of an Agreement of Limited Partnership (as amended to date, the “Original
Agreement”) effective as of August 10, 2000 (the “Organization Date”);

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

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

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

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

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

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ARTICLE I: DEFINITIONS

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

     “Original Certificate” means the Certificate of Limited Partnership as filed with the
Secretary of State of the State of Texas on August 10, 2000.

     “Original General Partner” means EPD OLP.

     “Original Limited Partner” means PPP.

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

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

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

3

 

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

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

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

     “Sharing Ratio” subject in each case to adjustments in accordance with this Agreement or in connection with Dispositions of
Partnership Interests, (a) in the case of a Partner executing this Agreement as of the date of this Agreement or
a Person acquiring such Partner’s Partnership Interest, the percentage specified for that Partner as its Sharing
Ratio on Exhibit A, (b) in the case of Membership Interests issued pursuant to Section 3.03, the Sharing Ratio
established pursuant thereto and (c) in the case of a Partnership Interest issued under Section 10.01(c) or 10.02,
the Sharing Ratio established in that provision; provided, however, that the total of all Sharing Ratios shall
always equal 100%.

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

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

ARTICLE II: ORGANIZATION

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

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

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

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

4

 

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

     2.05 Certificate; Foreign Qualification. The General Partner has executed and caused to be
filed with the Secretary of State of Texas a Certificate, amending the Original Certificate filed
on August 10, 2000 and containing information required by the Act. Prior to the Partnership’s
conducting business in any jurisdiction other than Texas, the General Partner shall cause the
Partnership to comply, to the extent those matters are reasonably within the control of the General
Partner, with all requirements necessary to qualify the Partnership as a foreign limited
partnership (or a partnership in which the Limited Partners have limited liability) in that
jurisdiction. At the request of the General Partner, each Limited Partner shall execute,
acknowledge, swear to, and deliver all certificates and other instruments conforming with this
Agreement that are necessary or appropriate to form, qualify, continue, and terminate the
Partnership as a limited partnership under the law of the State of Texas and to qualify, continue,
and terminate the Partnership as a foreign limited partnership (or a partnership in which the
Limited Partners have limited liability) in all other jurisdictions in which the Partnership may
conduct business, and to this end the General Partner may use the power of attorney described in
Section 6.05.

     2.06 Term. The Partnership commenced on August 10, 2000, when the Original Certificate first
was properly filed with the Secretary of State of Texas and shall continue in existence until its
business and affairs are wound up following dissolution automatically at the close of Partnership
business on December 31, 2050 unless (i) the Partners unanimously agree to extend the term of the
Partnership for a longer duration or (ii) the Partnership is earlier dissolved pursuant to the
provisions hereof.

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

ARTICLE III: PARTNERS AND PARTNERSHIP INTERESTS

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

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

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

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ARTICLE IV: CAPITAL CONTRIBUTIONS

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

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

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

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

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ARTICLE
V: ALLOCATIONS AND DISTRIBUTIONS

     5.01 Allocations.

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

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

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

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

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

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

7

 

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

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

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

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

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

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

     5.02 Distributions.

8

 

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

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

ARTICLE VI: MANAGEMENT AND OPERATION

     6.01 Management of Partnership Affairs.

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

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

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

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

     6.03 Standards and Conflicts.

          (a) Except as provided otherwise in this Agreement, the General Partner shall conduct the
affairs of the Partnership in good faith toward the best interests of the Partnership. THE GENERAL
PARTNER IS LIABLE FOR ERRORS OR OMISSIONS IN PERFORMING ITS DUTIES WITH RESPECT TO THE PARTNERSHIP
ONLY IN THE CASE OF BAD FAITH, GROSS NEGLIGENCE, OR BREACH OF THE PROVISIONS OF THIS AGREEMENT, BUT
NOT OTHERWISE. The General Partner

9

 

shall devote such time and effort to the Partnership business
and operations as is necessary to promote fully the interests of the Partnership; however, the
General Partner need not devote full time to Partnership business.

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

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

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

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

ARTICLE VII: RIGHTS OF LIMITED PARTNERS

     7.01 Information.

          (a) In addition to the other rights set forth in this Agreement, each Limited Partner is
entitled to all information to which that Limited Partner is entitled to have access under the Act
under the circumstances and subject to the conditions therein stated; provided, however, that the
General Partner may determine, due to contractual obligations, business concerns, or other
considerations, that certain information regarding the business, affairs, properties, and financial
condition of the Partnership should be kept confidential and not provided to some or all

10

 

Limited
Partners. The Partners agree that the restrictions in the immediately preceding sentence are just
and reasonable.

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

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

     7.03 Consents and Voting.

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

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

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

11

 

action
pursuant to the other provisions of this Agreement. With respect to other matters, the meeting must
be conducted in accordance with rules that the General Partner may establish.

ARTICLE VIII: TAXES

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

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

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

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

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

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

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

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

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

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

     9.02 Reports. If requested by any Partner in writing, on or before the 120th day following
the end of each fiscal year during the term of the Partnership, the General Partner shall

12

 

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

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

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

     10.01 Withdrawal, Bankruptcy, Etc. of General Partner.

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

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

          (c) Following any notice that the General Partner is withdrawing, or following the occurrence
of an event of the type described in Section 4.02(a)(4)-(10) of the Act with respect to the General
Partner (without regard to the lapse of any time periods), a Required Interest by written consent
may select a new General Partner. The Person selected shall be admitted to the Partnership as the
General Partner effective immediately prior to the existing General Partner’s ceasing to be the
General Partner with a Sharing Ratio that the Limited Partners making the selection specify, but
only if the new General Partner has made a Capital Contribution in an amount the Limited Partners
making the selection specify and has executed and delivered to the Partnership a document including
the new General Partner’s notice address and its agreement to be bound by this Agreement.
Notwithstanding the foregoing provisions of
this Section 10.01(c), for the right to select a new General Partner to exist or be exercised,
the Partnership must receive a favorable opinion of the Partnership’s legal counsel or of other
legal

13

 

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

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

ARTICLE XI: DISSOLUTION, LIQUIDATION, AND TERMINATION

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

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

          (b) the date set forth in Section 2.06;

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

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

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

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

14

 

continue to operate the Partnership properties with all of
the power and authority of the General Partner. The steps to be accomplished by the liquidator are
as follows:

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

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

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

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

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

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

All distributions in kind to the Partners shall be made subject to the liability of each
distributee for its allocable share of costs, expenses, and liabilities previously incurred or for
which the Partnership has committed prior to the date of termination and those costs, expenses, and
liabilities shall be allocated to the distributee under this Section 11.02. The distribution of
cash and/or property to a Partner in accordance with the provisions of this Section 11.02
constitutes a complete return to the Partner of its Capital Contributions and a complete
distribution to the Partner of its Partnership Interest and all the Partnership’s property and
constitutes a compromise to which all Partners have consented within the meaning of Section 5.02(d)
of the Act. To the

15

 

extent that a Partner returns funds to the Partnership, it has no claim against
any other Partner for those funds.

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

ARTICLE XII: GENERAL PROVISIONS

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

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

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

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

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

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

     12.07 Governing Law; Severability. THIS AGREEMENT IS GOVERNED BY AND SHALL BE CONSTRUED IN
ACCORDANCE WITH THE LAW OF THE STATE OF TEXAS, EXCLUDING ANY CONFLICT-OF-LAWS RULE OR PRINCIPLE
THAT

16

 

MIGHT REFER THE GOVERNANCE OR THE CONSTRUCTION OF THIS AGREEMENT TO THE LAW OF ANOTHER
JURISDICTION. If any provision of this Agreement or its application to any Person or circumstance
is held invalid or unenforceable to any extent, the remainder of this Agreement and the application
of that provision to other Persons or circumstances is not affected and that provision shall be
enforced to the greatest extent permitted by law.

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

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

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

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

17

 

     EXECUTED as of the date first set forth above.

	 	 	 	 	 	 	 	 	 
	 	 	GENERAL PARTNER:	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	DEP OPERATING
PARTNERSHIP, L.P.	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	Duncan Energy Partners
L.P.,
its sole member	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	DEP Holdings, LLC,	 	 
	 	 	 	 	its general partner	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:
	 	Richard H. Bachmann	 	 
	 

	 	 	 	Title:
	 	President and Chief Executive Officer	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	LIMITED PARTNERS:	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	ENTERPRISE PRODUCTS OPERATING L.P.	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	Enterprise Products OLPGP, Inc.,	 	 
	 	 	 	 	its general partner	 	 

	 	 	 	 	 	 	 
	 

	 	By:
	 	 	 	 
	 

	 	 	 	 	 	 
	 	 	Name: Richard H. Bachmann	 	 
	 	 	Title: Executive Vice President, Chief Legal Officer	 	 
	 	 	and Secretary	 	 
	 
	 	 	 	 	 	 
	 	 	PROPYLENE PIPELINE PARTNERSHIP, L.P.	 	 
	 
	 	 	 	 	 	 
	 	 	By: ENTERPRISE PRODUCTS OPERATING L.P.,	 	 
	 	 	its general partner	 	 

	 	 	 	 	 	 	 
	 

	 	By:
	 	Enterprise Products OLPGP, Inc.,
	 	 
	 

	 	 	 	its general partner	 	 

	 	 	 	 	 	 	 
	 

	 	By:
	 	 	 	 
	 

	 	 	 	 	 	 
	 	 	Name: Richard H. Bachmann	 	 
	 	 	Title: Executive Vice President, Chief Legal Officer	 	 
	 	 	and Secretary	 	 

18

 

EXHIBIT A

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

	 	 	66	%
	1100 Louisiana Street, 10th Floor

Houston, Texas 77002
	 	 	 	 
	 
	 	 	 	 
	Limited Partners:
	 	 	 	 
	 
	 	 	 	 
	Enterprise Products Operating L.P.

	 	 	33	%
	1100 Louisiana Street, 10th Floor

Houston, Texas 77002
	 	 	 	 
	 
	 	 	 	 
	Propylene Pipeline Partnership, L.P.

	 	 	1	%
	1100 Louisiana Street, 10th Floor

Houston, Texas 77002exv10w19

 

Exhibit 10.19

OMNIBUS AGREEMENT

AMONG

ENTERPRISE PRODUCTS OPERATING L.P.

DEP HOLDINGS, LLC

DUNCAN ENERGY PARTNERS L.P.

DEP OLPGP, LLC

DEP OPERATING PARTNERSHIP, L.P.

ENTERPRISE LOU-TEX PROPYLENE PIPELINE L.P.

SABINE PROPYLENE PIPELINE L.P.

ACADIAN GAS, LLC

MONT BELVIEU CAVERNS, LLC

SOUTH TEXAS NGL PIPELINES, LLC

 

 

OMNIBUS AGREEMENT

     THIS OMNIBUS AGREEMENT is entered into on, and effective as of, the Closing Date, among
Enterprise Products Operating L.P., a Delaware limited partnership (“EPD OLP”), DEP
Holdings, LLC, a Delaware limited liability company (the “General Partner”), Duncan Energy
Partners L.P., a Delaware limited partnership (the “Partnership”), DEP OLPGP, LLC, a
Delaware limited liability company (the “OLPGP”), DEP Operating Partnership, L.P., a
Delaware limited partnership (the “Operating Partnership”), Enterprise Lou-Tex Propylene
Pipeline L.P., a Texas limited partnership (“Lou-Tex”), Sabine Propylene Pipeline L.P., a
Texas limited partnership (“Sabine”), Acadian Gas, LLC, a Delaware limited liability
company (“Acadian Gas”), Mont Belvieu Caverns, LLC, a Delaware limited liability company
(“Mont Belvieu Caverns”), South Texas NGL Pipelines, LLC, a Delaware limited liability
company (“South Texas NGL”, and collectively with Lou-Tex, Sabine, Acadian Gas and Mont
Belvieu Caverns, the “Initial Subsidiaries”). The above-named entities are sometimes
referred to in this Agreement each as a “Party” and collectively as the “Parties.”

     WHEREAS, the Parties desire by their execution of this Agreement to evidence their
understanding, as more fully set forth in Article 2 of this Agreement, with respect to certain
indemnification obligations of EPD Entities.

     NOW, THEREFORE, in consideration of the premises and the covenants, conditions and agreements
contained herein, and for other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the Parties hereby agree as follows:

ARTICLE 1

Construction

     Section 1.1 Definitions. Capitalized terms used, but not defined herein, shall have
the meanings given them in the Partnership Agreement. As used in this Agreement, the following
terms shall have the respective meanings set forth below:

     “Acadian Gas” has the meaning assigned to such term in the preamble to this Agreement

     “Acceptance Deadline” has the meaning assigned to such term in Section 4.2(b).

     “Agreement” means this Omnibus Agreement, as it may be amended, modified or
supplemented from time to time in accordance with the terms hereof.

     “Audit and Conflicts Committee” has the meaning given such term in the Partnership
Agreement.

     “Capital Stock” has the meaning assigned to such term in Section 5.1(a).

     “Change of Control” means, with respect to any Person (the “Applicable
Person”), any of the following events: (i) any sale, lease, exchange or other transfer (in one
transaction or a series of related transactions) of all or substantially all of the Applicable
Person’s assets to any other Person, unless immediately following such sale, lease, exchange or
other transfer such assets are owned, directly or indirectly, by the Applicable Person; (ii) the
dissolution or liquidation of the

 

 

Applicable Person; (iii) the consolidation or merger of the Applicable Person with or into
another Person pursuant to a transaction in which the outstanding Voting Securities of the
Applicable Person are changed into or exchanged for cash, securities or other property, other than
any such transaction where (a) the outstanding Voting Securities of the Applicable Person are
changed into or exchanged for Voting Securities of the surviving Person or its parent and (b) the
holders of the Voting Securities of the Applicable Person immediately prior to such transaction
own, directly or indirectly, not less than a majority of the outstanding Voting Securities of the
surviving Person or its parent immediately after such transaction; and (iv) a “person” or “group”
(within the meaning of Sections 13(d) or 14(d)(2) of the Exchange Act) being or becoming the
“beneficial owner” (as defined in Rules 13d-3 and 13d-5 under the Exchange Act) of more than 50% of
all of the then outstanding Voting Securities of the Applicable Person, except in a merger or
consolidation which would not constitute a Change of Control under clause (iii) above.

     “Closing Date” means the date of the closing of the initial public offering of common
units representing limited partner interests in the Partnership.

     “Common Unit” has the meaning given such term in the Partnership Agreement.

     “Covered Environmental Losses” means all environmental losses, damages, liabilities,
claims, demands, causes of action, judgments, settlements, fines, penalties, costs and expenses
(including, without limitation, costs and expenses of any Environmental Activity, court costs and
reasonable attorney’s and experts’ fees) of any and every kind or character, known or unknown,
fixed or contingent, suffered or incurred by the Partnership Group by reason of or arising out of:

     (i) any violation or correction of violation, including without limitation performance of any
Environmental Activity, of Environmental Laws; or

     (ii) any event, omission or condition associated with ownership or operation of the
Partnership Assets (including, without limitation, the exposure to or presence of Hazardous
Substances on, under, about or migrating to or from the Partnership Assets or the exposure to or
Release of Hazardous Substances arising out of operation of the Partnership Assets at
non-Partnership Asset locations) including, without limitation, (A) the cost and expense of any
Environmental Activities, (B) the cost or expense of the preparation and implementation of any
closure, remedial or corrective action or other plans required or necessary under Environmental
Laws and (C) the cost and expense for any environmental or toxic tort pre-trial, trial or appellate
legal or litigation support work; provided, in the case of clauses (A) and (B), such cost and
expense shall not include the costs of and associated with project management and soil and ground
water monitoring;

     but only to the extent that such violation complained of under clause (i), or such events or
conditions included in clause (ii), occurred before the Closing Date.

     “Credit Facility” means the Credit Agreement dated as of                     , 2007 by and among
the Partnership, Wachovia Bank, National Association, as the Administrative Agent, and the Lenders
named therein, as the same may be amended, restated or modified from time to time.

2

 

     “Environmental Activities” shall mean any investigation, study, assessment,
evaluation, sampling, testing, monitoring, containment, removal, disposal, closure, corrective
action, remediation (regardless of whether active or passive), natural attenuation, restoration,
bioremediation, response, repair, corrective measure, cleanup, or abatement that is required or
necessary under any applicable Environmental Law, including, but not limited to, institutional or
engineering controls or participation in a governmental voluntary cleanup program to conduct
voluntary investigatory and remedial actions for the clean-up, removal or remediation of Hazardous
Substances that exceed actionable levels established pursuant to Environmental Laws, or
participation in a supplemental environmental project in partial or whole mitigation of a fine or
penalty.

     “Environmental Laws” means all federal, state, and local laws, statutes, rules,
regulations, orders, judgments, ordinances, codes, injunctions, decrees, Environmental Permits and
other legally enforceable requirements and rules of common law relating to (a) pollution or
protection of the environment or natural resources including, without limitation, the federal
Comprehensive Environmental Response, Compensation and Liability Act, the Superfund Amendments and
Reauthorization Act, the Resource Conservation and Recovery Act, the Clean Air Act, the Clean Water
Act, the Safe Drinking Water Act, the Toxic Substances Control Act, the Oil Pollution Act of 1990,
the Hazardous Materials Transportation Act, the Marine Mammal Protection Act, the Endangered
Species Act, the National Environmental Policy Act, and other environmental conservation and
protection laws, each as amended through the Closing Date, (b) any Release or threatened Release
of, or any exposure of any Person or property to, any Hazardous Substances and (c) the generation,
manufacture, processing, distribution, use, treatment, storage, transport, or handling of any
Hazardous Substances.

     “Environmental Permit” means any permit, approval, identification number, license,
registration, consent, exemption, variance, or other authorization required under or issued
pursuant to any applicable Environmental Law.

     “EPD” means Enterprise Products Partners, L.P., a Delaware limited partnership, and
its successors.

     “EPD Entities” means EPD, EPD OLP, and any other Person controlled by EPD, other than
the Partnership Entities. For purposes of this definition, “control” means the possession,
direct or indirect, of the power to direct or cause the direction of the management and policies of
a Person, whether through ownership of Voting Securities, by contract or otherwise.

     “EPD OLP” has the meaning given such term in the preamble to this Agreement.

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

     “General Partner” has the meaning given such term in the preamble to this Agreement.

     “Hazardous Substance” means (a) any substance that is designated, defined or
classified as a hazardous waste, solid waste, hazardous material, pollutant, contaminant or toxic
or hazardous substance, or terms of similar meaning, or that is otherwise regulated under any
Environmental Law, including, without limitation, any hazardous substance as defined under the
Comprehensive Environmental Response, Compensation and Liability Act, as amended, (b) oil as
defined in the Oil Pollution Act of 1990, as amended, including oil, gasoline, natural gas, fuel
oil, motor oil, waste oil, diesel fuel, jet fuel and other refined petroleum hydrocarbons and
petroleum products and (c) radioactive materials, asbestos containing materials or
polychlorinated biphenyls.

3

 

     “Indemnified Party” means the Partnership Group or the EPD Entities, as the case may
be, in their capacity as the parties entitled to indemnification in accordance with Article 2.

     “Indemnifying Party” means either the Partnership Group or the EPD Entities, as the
case may be, in their capacity as the parties from whom indemnification may be required in
accordance with Article 2.

     “Initial Subsidiaries” has the meaning assigned to such term in the preamble to this
Agreement.

     “Losses” means any losses, damages, liabilities, claims, demands, causes of action,
judgments, settlements, fines, penalties, costs and expenses (including, without limitation, court
costs and reasonable attorney’s and experts’ fees) of any and every kind or character, known or
unknown, fixed or contingent.

     “Lou-Tex” has the meaning assigned to such term in the preamble to this Agreement.

     “Mont Belvieu Caverns” has the meaning assigned to such term in the preamble to this
Agreement.

     “OLPGP” has the meaning given such term in the preamble to this Agreement.

     “Operating Partnership” has the meaning given such term in the preamble to this
Agreement.

     “Partnership” has the meaning given such term in the preamble to this Agreement.

     “Partnership Acquisition Proposal” has the meaning assigned to such term in
Section 4.2(a).

     “Partnership Agreement” means the Amended and Restated Agreement of Limited
Partnership of the Partnership, dated as of the Closing Date, as such agreement is in effect on the
Closing Date, to which reference is hereby made for all purposes of this Agreement. An amendment or
modification to the Partnership Agreement subsequent to the Closing Date shall be given effect for
the purposes of this Agreement only if it has received the approval that would be required pursuant
to Section 6.5 hereof if such amendment or modification were an amendment or modification
of this Agreement.

     “Partnership Assets” means the pipeline, natural gas liquids storage facilities or
related equipment or asset, or portion thereof, conveyed, contributed or otherwise transferred to
any member of the Partnership Group, or owned by or necessary for the operation of the business,
properties or assets of any member of the Partnership Group, prior to or as of the Closing Date.

     “Partnership Disposition Notice” has the meaning assigned to such term in Section
4.2(a).

4

 

     “Partnership Entities” means the General Partner and each member of the Partnership
Group.

     “Partnership Group” means the Partnership, OLPGP, the Operating Partnership and any
Subsidiary of the Operating Partnership.

     “Partnership Offer Price” has the meaning assigned to such term in Section
4.2(a).

     “Person” means a natural person, corporation, partnership, joint venture, trust,
limited liability company, unincorporated organization or any other entity.

     “Proposed Transferee” has the meaning assigned to such term in Section 4.1(a).

     “Release” means any depositing, spilling, leaking, pumping, pouring, placing,
emitting, discarding, abandoning, emptying, discharging, migrating, injecting, escaping, leaching,
dumping, or disposing into the environment.

     “ROFR Assets” has the meaning assigned to such term in Section 4.1(b).

     “Sabine” has the meaning assigned to such term in the preamble to this Agreement.

     “South Texas NGL” has the meaning assigned to such term in the preamble to this
Agreement.

     “South Texas NGL Pipeline” means the 290-mile natural gas liquids pipeline system
owned and operated by South Texas NGL.

     “Subsequent Notice” has the meaning assigned to such term in Section 5.1(b).

     “Subsidiary” has the meaning given such term in the Partnership Agreement.

     “Transfer” means any sale, assignment, transfer, pledge, hypothecation or other
disposition.

     “Voting Securities” means securities of any class of Person entitling the holders
thereof to vote in the election of members of the board of directors or other similar governing
body of the Person.

     Section 1.2 Construction. Unless the context requires otherwise: (a) any pronoun used
in this Agreement shall include the corresponding masculine, feminine or neuter forms, and the
singular form of nouns, pronouns and verbs shall include the plural and vice versa; (b) references
to Articles and Sections refer to Articles and Sections of this Agreement; and (c) the term
“include” or “includes” means includes, without limitation, and “including” means including,
without limitation.

5

 

ARTICLE 2

Indemnification

     Section 2.1 Environmental Indemnification.

     (a) Subject to the provisions of Section 2.3 and Section 2.4, EPD OLP shall indemnify, defend
and hold harmless the Partnership Group from and against any Covered Environmental Losses suffered
or incurred by the Partnership Group and arising from or relating to the Partnership Assets for a
period of three (3) years from the Closing Date.

     (b) The Partnership Group shall indemnify, defend and hold harmless the EPD Entities from and
against any Covered Environmental Losses relating to the Partnership Assets occurring after the
Closing Date, except to the extent that the Partnership Group is indemnified with respect to any of
such Covered Environmental Losses under Section 2.1(a)

     Section 2.2 Additional Indemnification. Subject to the provisions of Section 2.3 and
Section 2.4, the EPD OLP shall indemnify, defend and hold harmless the Partnership Group from and
against any Losses suffered or incurred by the Partnership Group by reason of or arising out of:

     (a) The failure of the applicable member of the Partnership Group to be the owner of valid and
indefeasible easement rights, leasehold and/or fee ownership interests in and to the lands on which
are located any Partnership Assets, and such failure renders the Partnership Group liable or unable
to use or operate the Partnership Assets in substantially the same manner that the Partnership
Assets were used and operated by the EPD Entities immediately prior to the Closing Date;

     (b) (i) The failure of the applicable member of the Partnership Group to be the owner of such
valid and indefeasible easement rights or fee ownership interests in and to the lands on which any
of the Partnership Assets conveyed or contributed or otherwise transferred (including by way of a
transfer of the ownership interest of a Person or by operation of law) to the applicable member of
the Partnership Group on the Closing Date is located as of the Closing Date; (ii) the failure of
the applicable member of the Partnership Group to have the consents, licenses and permits necessary
to allow of the Partnership Assets to cross the roads, waterways railroads and other areas upon
which any of the Partnership Assets are located as of the Closing Date; and (iii) the cost of
curing any condition set forth in clause (i) or (ii) above that does not allow any of the
Partnership Assets to be operated in accordance with customary industry practice.

     (c) All federal, state and local income tax liabilities attributable to the ownership or
operation of the Partnership Assets prior to the Closing Date, including any such income tax
liabilities of the EPD Entities that may result from the consummation of the formation transactions
for the Partnership Group occurring on or prior to the Closing Date.

provided, however, that in the case of clauses (a) and (b) above, such indemnification obligations
shall survive for three (3) years from the Closing Date; that in the case of clause (c) above, such
indemnification obligations shall survive until sixty (60) days after the expiration of any
applicable statute of limitations.

     Section 2.3 Indemnification Procedures.

     (a) The Indemnified Party agrees that within a reasonable period of time after it becomes
aware of facts giving rise to a claim for indemnification pursuant to this Article 2, they
will provide notice thereof in writing to the Indemnifying Party specifying the nature of and
specific basis for such claim; provided, however, that the Indemnified Party shall not submit
claims more frequently than once a calendar quarter (or twice in the case of the last calendar
quarter prior to the expiration of the applicable indemnity coverage under this Agreement).

6

 

     (b) The Indemnifying Party shall have the right to control all aspects of the defense of (and
any counterclaims with respect to) any claims brought against the Indemnified Party that are
covered by the indemnification set forth in this Article 2, including, without limitation, the
selection of counsel, determination of whether to appeal any decision of any court and the settling
of any such matter or any issues relating thereto; provided, however, that no such settlement shall
be entered into without the consent (which consent shall not be unreasonably withheld, conditioned
or delayed) of the Indemnified Party unless it includes a full release of the Indemnified Party
from such matter or issues, as the case may be.

     (c) The Indemnified Party agrees to cooperate fully with the Indemnifying Party with respect
to all aspects of the defense of any claims covered by the indemnification set forth in Article 2,
including, without limitation, the prompt furnishing to the Indemnifying Party of any
correspondence or other notice relating thereto that the Indemnified Party may receive, permitting
the names of the Indemnified Party to be utilized in connection with such defense, the making
available to the Indemnifying Party of any files, records or other information of the Indemnified
Party that the Indemnifying Party considers relevant to such defense and the making available to
the Indemnifying Party of any employees of the Indemnified Party; provided, however, that in
connection therewith the Indemnifying Party agrees to use reasonable efforts to minimize the impact
thereof on the operations of the Indemnified Party and further agrees to maintain the
confidentiality of all files, records and other information furnished by the Indemnified Party
pursuant to this Section 2.3. In no event shall the obligation of the Indemnified Party to
cooperate with the Indemnifying Party as set forth in the immediately preceding sentence be
construed as imposing upon the Indemnified Party an obligation to hire and pay for counsel in
connection with the defense of any claims covered by the indemnification set forth in this Article
2; provided, however, that the Indemnified Party may, at its own option, cost and expense, hire and
pay for counsel in connection with any such defense. The Indemnifying Party agrees to keep any
such counsel hired by the Indemnified Party reasonably informed as to the status of any such
defense, but the Indemnifying Party shall have the right to retain sole control over such defense.

     (d) In determining the amount of any loss, cost, damage or expense for which the Indemnified
Party is entitled to indemnification under this Agreement, the gross amount of the indemnification
will be reduced by (i) any insurance proceeds realized by the Indemnified Party, and such
correlative insurance benefit shall be net of any incremental insurance premium that becomes due
and payable by the Indemnified Party as a result of such claim and (ii) all amounts recovered by
the Indemnified Party under contractual indemnities from third Persons. The Partnership hereby
agrees to use commercially reasonable efforts to realize any applicable insurance proceeds or
amounts recoverable under such contractual indemnities.

7

 

     Section 2.4 Limitations on Liability.

     (a) The aggregate liability of EPD OLP under Section 2.1 and Section 2.2 shall not exceed
$15.0 million.

     (b) No claims may be made against EPD OLP for indemnification pursuant to Section 2.1 and
Section 2.2 unless the aggregate dollar amount of such claims for indemnification exceed $250,000,
after such time EPD OLP shall be liable for the full amount of such claims, subject to the
limitation of Section 2.4(a).

     (c) In no event shall EPD OLP have any indemnification obligations under this Agreement for
claims related to unknown Covered Environmental Losses made as a result of additions to or
modifications of Environmental Laws promulgated after the Closing Date.

ARTICLE 3

Reimbursement

     Section 3.1 General. EPD OLP hereby agrees to reimburse the Partnership Group for an
amount equal to sixty-six percent (66%) of any Expenditures by the Partnership Group related to
construction costs for the expansion of the South Texas NGL Pipeline. For purposes of this Article
3, “Expenditures” shall mean those expenditures by the Partnership Group in excess of $28,600,000
million.

     Section 3.2 Reimbursement Procedures. EPD OLP shall have no obligation to make any
reimbursement to the Partnership Group pursuant to Section 3.1 until the three (3) business days
following receipt by EPD OLP of written notice from the Partnership Group that the Partnership
Group has actually paid or incurred Expenditures related to construction costs for the expansion of
the South Texas NGL Pipeline. Upon receipt of such notice, EPD OLP shall promptly contribute to
the Partnership Group funds in an amount equal to sixty-six percent (66%) of the amount of
Expenditures specified in such notice.

ARTICLE 4

Rights of First Refusal

     Section 4.1 Right of First Refusal.

     (a) Subject to Section 4.1(b), for so long as an EPD Entity controls EPD OLP, (i) the
Operating Partnership hereby grants to EPD OLP a right of first refusal on any proposed Transfer
(other than a grant of a security interest to a bona fide third-party lender or a Transfer to
another member of the Partnership Group) of any equity interest in the Subsidiaries held by the
Operating Partnership and (ii) the Operating Partnership and each of the Initial Subsidiaries
hereby grants to EPD OLP a right of first refusal on any proposed Transfer (other than a grant of a
security interest to a bona fide third-party lender or a Transfer to another member of the
Partnership Group) of any assets held by the Partnership Group; provided, the foregoing shall not
apply to Transfers of (i) any assets that are not material to the conduct of the business and
operations of the Operating Partnership or any of the Initial Subsidiaries and (ii) inventory or
other assets of the Partnership Group in the ordinary course of business; and provided, further,
that EPD OLP agrees to pay or to cause such other EPD Entity to pay no less than 100% of the
purchase price offered by a bona fide, third-party prospective acquiror (a “Proposed
Transferee”).

8

 

     (b) The Parties acknowledge that any potential Transfer of assets pursuant to this Article 4
(such assets, the “ROFR Assets”) shall be subject to, conditioned on and in compliance with
the terms and conditions in the Credit Facility and obtaining any and all necessary consents of
equityholders, noteholders or other securityholders, governmental authorities, lenders or other
third parties.

     (c) The Operating Partnership and each of the Initial Subsidiaries hereby agree that it will
not consent to, and direct any of their officers or directors not to consent to, the Transfer of
any assets by any members of the Partnership Group who are not Parties to this Agreement in
violation of this Article 4 and will use its best efforts to require any other members of the
Partnership Group to comply with this Article 4 as if they were Parties to this Agreement.

     Section 4.2 Procedures.

     (a) If a member of the Partnership Group proposes to Transfer any ROFR Assets to a Proposed
Transferee (a “Partnership Acquisition Proposal”), then the OLPGP shall promptly give
written notice (a “Partnership Disposition Notice”) thereof to EPD OLP. The Partnership
Disposition Notice shall set forth the following information in respect of the proposed Transfer:

     (i) the name and address of the Proposed Transferee;

     (ii) the ROFR Asset(s) subject to the Partnership Acquisition Proposal;

     (iii) the purchase price offered by such Proposed Transferee (the
“Partnership Offer Price”);

     (iv) reasonable detail concerning any non-cash portion of the proposed
consideration, if any, to allow EPD OLP to reasonably determine the fair value of
such non-cash consideration;

     (v) the OLPGP’s estimate of the fair value of any non-cash consideration; and

     (vi) all other material terms and conditions of the Partnership Acquisition
Proposal that are then known to the OLPGP.

     To the extent the Proposed Transferee’s offer consists of consideration other than cash (or in
addition to cash), the Partnership Offer Price shall be deemed equal to the amount of any such cash
plus the fair value of such non-cash consideration. If EPD OLP determines that it wishes to, or
wishes to cause another EPD Entity to, purchase the applicable ROFR Assets on the terms set forth
in the Partnership Disposition Notice (subject to the provisos set forth in Section 4.1(a),
including without limitation the requirement therein to pay 100% of the purchase price specified in
the Partnership Disposition Notice), it will deliver notice thereof to the OLPGP within 45 days
after the OLPGP’s delivery of the Partnership Disposition Notice (the “Acceptance
Deadline”). Failure to provide such notice within such 45-day period shall be deemed to
constitute a decision not to purchase the applicable ROFR Assets, and EPD OLP shall be deemed to
have waived its rights with respect to such proposed disposition of the applicable ROFR Assets, but
not with respect to any future offer of such ROFR Assets. If the Transfer by the member of the

9

 

Partnership Group to the Proposed Transferee is not consummated in accordance with the terms of the
Partnership Acquisition Proposal within the later of (A) 180 days after the Acceptance Deadline,
and (B) 10 days after the satisfaction of all consent, governmental approval or filing
requirements, if any, the Partnership Acquisition Proposal shall be deemed to lapse, and the member
of the Partnership Group may not Transfer any of the ROFR Assets described in the Partnership
Disposition Notice without complying again with the provisions of this Article 4 if and to the
extent then applicable.

     (b) If requested by the transferee Party, the transferor Party shall use commercially
reasonable efforts to obtain financial statements with respect to any ROFR Assets Transferred
pursuant to this Article 4 as required under Regulation S-X promulgated by the Securities and
Exchange Commission or any successor statute. EPD OLP and the Partnership Group shall cooperate in
good faith in obtaining all necessary consents of equityholders, noteholders or other
securityholders, governmental authorities, lenders or other third parties.

ARTICLE 5

Preemptive Rights

     Section 5.1 Preemptive Rights in Initial Subsidiaries.

     (a) If any Initial Subsidiary proposes to sell any of its authorized limited liability company
interests, partnership interests, shares or other equity interests (“Capital Stock”) to any
Person in a transaction or transactions, as the case may be, other than (i) as consideration for
the acquisition of any other Person, assets or businesses, or (ii) any equity securities (including
convertible debt or warrants) issued as consideration in connection with a loan to or debt
financing of the Initial Subsidiary, each of the Operating Partnership and EPD OLP shall have the
right to purchase, at the same price per unit, percentage interest or share of such Capital Stock
and upon substantially similar terms and conditions, a pro rata number or percentage interest of
such Capital Stock based on the number or percentage interest of the Capital Stock as it owned
immediately prior to such issuance.

     (b) In the event of a proposed transaction or transactions, as the case may be, that would
give rise to preemptive rights of the Operating Partnership and EPD OLP under this Article 5, the
Operating Partnership shall provide notice to EPD OLP no later than thirty (30) days prior to the
expected consummation of such transaction or transactions. Each Party possessing preemptive rights
hereunder shall provide notice of its election to exercise such rights within ten (10) Business
Days after delivery of such notice from the Operating Partnership. If any Party having a right to
purchase Capital Stock under the preceding sentence shall elect not to exercise such right, then
the other Party that has elected to exercise their rights with respect hereto shall have the right
to purchase such additional Capital Stock from the Party upon which such right was not exercised;
provided, however, that if, in connection with any proposed transaction or transactions giving rise
to rights hereunder, any Capital Stock remains from those that were available to the Parties
pursuant to their rights hereunder, no Party shall have any preemptive rights under this Article 5
and the proposed transaction or transactions shall be consummated without any exercise of
preemptive rights hereunder. In the event of a situation described in the preceding sentence in
which a Party elects not to exercise its preemptive rights with respect to a proposed transaction
or transactions, the Operating Partnership shall provide

10

 

notice (the “Subsequent Notice”) of such fact within five (5) Business Days following
the receipt of all of the notices concerning such elections from the Parties possessing such
preemptive rights. Each Party possessing the right to purchase the additional Capital Stock upon
which the preemptive rights were not exercised shall respond to this Subsequent Notice by sending a
response notice with respect thereto within five (5) Business Days after delivery of the Subsequent
Notice. Failure of any Party to respond to such Subsequent Notice with a notice stating the
election of such Party to purchase such additional Capital Stock shall be deemed to be an election
not to purchase such Capital Stock, and the proposed transaction or transactions shall be
consummated without any exercise of preemptive rights hereunder. Subsequent Notices shall also not
be required if EPD OLP has previously notified the Operating Partnership, and the Operating
Partnership has notified EPD OLP, of their respective desires not to purchase additional Capital
Stock.

     (c) Each of the Operating Partnership and the Initial Subsidiary agrees that it shall not
authorize or permit any of direct or indirect Subsidiaries of the Initial Subsidiaries to issue (by
initial issuance or by way of merger, consolidation or similar transaction) any of its Capital
Stock to any Person other than (i) to a direct or indirect wholly owned Subsidiary of such Initial
Subsidiary, (ii) pro rata based on the then-current percentage interests owned by such other
Persons in a transaction in which the Initial Subsidiary shall maintain its then-current percentage
interest, (iii) as consideration for the acquisition of any other Person, assets or businesses, or
(iv) any equity securities (including convertible debt or warrants) issued as consideration in
connection with a loan to or debt financing of the Initial Subsidiary. Each Initial Subsidiary
agrees that it shall not issue any of its Capital Stock, and shall not permit any of its
Subsidiaries to issue any Capital Stock, in violation of this Article 5.

ARTICLE 6

Miscellaneous

     Section 6.1 Choice of Law; Submission to Jurisdiction. This Agreement shall be
subject to and governed by the laws of the State of Texas, excluding any conflicts-of-law rule or
principle that might refer the construction or interpretation of this Agreement to the laws of
another state. Each Party hereby submits to the jurisdiction of the state and federal courts in
the State of Texas and to venue in Texas.

     Section 6.2 Notice. 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 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 by delivering such notice in person or by fax to such Party.
Notice given by personal delivery or mail shall be effective upon actual receipt. Notice given by
fax shall be effective upon actual receipt if received during the recipient’s normal business
hours, or at the beginning of the recipient’s next business day after receipt if not received
during the recipient’s normal business hours. All notices to be sent to a Party pursuant to this
Agreement shall be sent to or made at the address set forth below or at such other address as such
Party may provide to the other Parties in the manner provided in this Section 6.2.

11

 

     For notices to EPD OLP or its Affiliates:

1100 Louisiana Street, 10th Floor

Houston, Texas 77002

Phone: (713) 381-6500

Fax: (713) 381-8200

Attn: Chief Legal Officer

     For notices to the Partnership Entities:

1100 Louisiana Street, 10th Floor

Houston, Texas 77002

Phone: (713) 381-6500

Fax: (713) 381-8200

Attn: Chief Executive Officer

     Section 6.3 Entire Agreement. This Agreement constitutes the entire agreement of the
Parties relating to the matters contained herein, superseding all prior contracts or agreements,
whether oral or written, relating to the matters contained herein.

     Section 6.4 Effect of Waiver or Consent. No waiver or consent, express or implied, by
any Party to or of any breach or default by any Person in the performance by such Person of its
obligations hereunder shall be deemed or construed to be a consent or waiver to or of any other
breach or default in the performance by such Person of the same or any other obligations of such
Person hereunder. Failure on the part of a Party to complain of any act of any Person or to
declare any Person in default, irrespective of how long such failure continues, shall not
constitute a waiver by such Party of its rights hereunder until the applicable statute of
limitations period has run.

     Section 6.5 Amendment or Modification. This Agreement may be amended, restated or
modified from time to time only by the written agreement of all the Parties; provided, however,
that no member of the Partnership Group may, without the prior approval of the Audit and Conflicts
Committee, agree to any amendment or modification of this Agreement that will adversely affect the
holders of Common Units. Each such instrument shall be reduced to writing and shall be designated
on its face an “Amendment,” “Addendum” or a “Restatement” to this Agreement.

     Section 6.6 Assignment; Third Party Beneficiaries. No Party shall have the right to
assign its rights or obligations under this Agreement without the prior written consent of all of
the other Parties. Each of the Parties hereto specifically intends that each entity comprising the
EPD Entities or the Partnership Entities, as applicable, whether or not a Party to this Agreement,
shall be entitled to assert rights and remedies hereunder as third-party beneficiaries hereto with
respect to those provisions of this Agreement affording a right, benefit or privilege to any such
entity.

     Section 6.7 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

 

     Section 6.8 Severability. If any provision of this Agreement or the application
thereof to any Person or circumstance shall be held invalid or unenforceable to any extent by a
court or regulatory body of competent jurisdiction, 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.

     Section 6.9 Further Assurances. In connection with this Agreement and all
transactions contemplated by this Agreement, each Party 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.

     Section 6.10 Withholding or Granting of Consent. Except as expressly provided to the
contrary in this Agreement, each Party may, with respect to any consent or approval that it is
entitled to grant pursuant to this Agreement, grant or withhold such consent or approval in its
sole and uncontrolled discretion, with or without cause, and subject to such conditions as it shall
deem appropriate.

     Section 6.11 Laws and Regulations. Notwithstanding any provision of this Agreement to
the contrary, no Party shall be required to take any act, or fail to take any act, under this
Agreement if the effect thereof would be to cause such Party to be in violation of any applicable
law, statute, rule or regulation.

     Section 6.12 Negation Rights of Limited Partners, Assignees and Third Parties. The
provisions of this Agreement are enforceable solely by the Parties, and no limited partner, member
or assignee of EPD OLP, the Partnership, the Operating Partnership or the Initial Subsidiaries or
other Person shall have the right, separate and apart from EPD OLP, the Partnership, the Operating
Partnership or the Initial Subsidiaries, to enforce any provision of this Agreement or to compel
any Party to comply with the terms of this Agreement.

     Section 6.13 No Recourse Against Officers or Directors. For the avoidance of doubt,
the provisions of this Agreement shall not give rise to any right of recourse against any officer
or director of any EPD Entity or any Partnership Entity.

[Signature page follows]

13

 

     IN WITNESS WHEREOF, the Parties have executed this Agreement on, and effective as of, the
Closing Date.

	 	 	 	 	 
	 	ENTERPRISE PRODUCTS OPERATING L.P.

 	 
	 	By:  	Enterprise Products OLPGP, Inc.,
 	 
	 	 	its General Partner 	 

	 	 	 	 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	 	 DEP HOLDINGS, LLC
 	 

	 	 	 	 	 
	 	By:  	
 	 
	 	 	Richard H. Bachmann 	 
	 	 	President and Chief Executive Officer 	 
	 

	 	 	 	 	 
	 	DUNCAN ENERGY PARTNERS L.P.

 	 
	 	By:  	DEP Holdings, LLC, its general partner
 	 

	 	 	 	 	 
	 	By:  	
 	 
	 	 	Richard H. Bachmann 	 
	 	 	President and Chief Executive Officer 	 
	 

	 	 	 	 	 
	 	DEP OLPGP, LLC

 	 
	 	By:  	Duncan Energy Partners L.P., its sole member
 	 

					
	 	 	 
	 	By:  	   DEP Holdings, LLC, its general partner
 	 

					
	 	 	 
	 	By:  	
 	 
	 	 	Richard H. Bachmann 	 
	 	 	President and Chief Executive Officer 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	DEP OPERATING PARTNERSHIP, L.P.

 	 
	 	By:  	DEP OLPGP, LLC, its general partner
 	 

	 	 	 	 	 
	 	By:  	   Duncan Energy Partners L.P., its sole member
 	 

	 	 	 	 	 
	 	By:  	   DEP Holdings, LLC, its general partner
 	 

	 	 	 	 	 
	 	By:  	
 	 
	 	 	Richard H. Bachmann 	 
	 	 	President and Chief Executive Officer 	 
	 

	 	 	 	 	 
	 	ENTERPRISE LOU-TEX PROPYLENE

    PIPELINE L.P.

 	 
	 	By:  	DEP Operating Partnership, L.P.,

its general partner
 	 

	 	 	 	 	 
	 	By:  	       DEP OLPGP, LLC, its general partner
 	 

	 	 	 	 	 
	 	By:  	       Duncan Energy Partners L.P., its sole member
 	 

	 	 	 	 	 
	 	By:  	       DEP Holdings, LLC, its general partner
 	 

	 	 	 	 	 
	 	By:  	
 	 
	 	 	Richard H. Bachmann 	 
	 	 	President and Chief Executive 	 
	 

	 	 	 	 	 
	 	SABINE PROPYLENE PIPELINE L.P.

 	 
	 	By:  	DEP Operating Partnership, L.P.,

its general partner
 	 

	 	 	 	 	 
	 	By:  	       DEP OLPGP, LLC, its general partner
 	 

	 	 	 	 	 
	 	By:  	       Duncan Energy Partners L.P., its sole member
 	 

	 	 	 	 	 
	 	By:  	       DEP Holdings, LLC, its general partner
 	 

	 	 	 	 	 
	 	By:  	
 	 
	 	 	Richard H. Bachmann 	 
	 	 	President and Chief Executive 	 

 

 

	 	 	 	 	 
	 	ACADIAN GAS, LLC

 	 

	 	 	 	 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	 	MONT BELVIEU CAVERNS, LLC

 	 
	 	By:  	DEP Operating Partnership, L.P.,

its managing member
 	 

	 	 	 	 	 
	 	By:  	             DEP OLPGP, LLC, its general partner
 	 

	 	 	 	 	 
	 	By:  	             Duncan Energy Partners L.P., its sole member
 	 

	 	 	 	 	 
	 	By:  	             DEP Holdings, LLC, its general partner
 	 

	 	 	 	 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	 	SOUTH TEXAS NGL PIPELINES, LLC

 	 
	 	By:  	DEP Operating Partnership, L.P.,

its managing member
 	 

	 	 	 	 	 
	 	By:  	             DEP OLPGP, LLC, its general partner
 	 

	 	 	 	 	 
	 	By:  	             Duncan Energy Partners L.P., its sole member
 	 

	 	 	 	 	 
	 	By:  	             DEP Holdings, LLC, its general partner
 	 

	 	 	 	 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00114-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00114-of-00352.parquet"}]]