Document:

exv10w17

 

Exhibit 10.17

Execution Copy

 

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	 

i 

 

	 	 	 	 	 	 	 
	7.04

	 	Meetings
	 	 	11	 
	 
	 	 	 	 	 	 
	 

	 	ARTICLE VIII: TAXES	 	 	 	 
	 
	 	 	 	 	 	 
	8.01

	 	Tax Returns
	 	 	12	 
	8.02

	 	Tax Elections
	 	 	12	 
	8.03

	 	Tax Matters Partner
	 	 	12	 
	 
	 	 	 	 	 	 
	 

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

	 	Maintenance of Books
	 	 	12	 
	9.02

	 	Reports
	 	 	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 February 5, 2007,
(the “Effective Date”) by and among the Partners (as defined below).

RECITALS

     WHEREAS, the Partnership was formed under the laws of the State of Texas by the Original
General Partner’s filing with the Secretary of State of Texas on August 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:

1

 

ARTICLE I: DEFINITIONS

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

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

     “Agreement” means this Amended and Restated Agreement of Limited Partnership of 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 February
5, 2007, and as amended or restated from time to time.

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

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

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

2

 

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

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

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

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

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

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

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

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

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

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

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

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

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

ARTICLE II: ORGANIZATION

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

     2.02 Name. The name of the Partnership is “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.

5

 

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.

6

 

ARTICLE V:ALLOCATIONS AND DISTRIBUTIONS

     5.01 Allocations.

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

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

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

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

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

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

7

 

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

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

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

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

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

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

8

 

     5.02 Distributions.

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

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

ARTICLE VI:MANAGEMENT AND OPERATION

     6.01 Management of Partnership Affairs.

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

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

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

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

6.03 Standards and Conflicts.

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

9

 

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

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

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

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

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

ARTICLE VII:RIGHTS OF LIMITED PARTNERS

     7.01 Information.

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

10

 

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

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

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

     7.03 Consents and Voting.

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

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

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

11

 

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

ARTICLE VIII: TAXES

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

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

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

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

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

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

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

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

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

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

12

 

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

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

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

10.01 Withdrawal, Bankruptcy, Etc. of General Partner.

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

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

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

13

 

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

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

ARTICLE XI: DISSOLUTION, LIQUIDATION, AND TERMINATION

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

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

          (b) the date set forth in Section 2.06;

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

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

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

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

14

 

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

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

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

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

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

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

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

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

15

 

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

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

ARTICLE XII: GENERAL PROVISIONS

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

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

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

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

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

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

16

 

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

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

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

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

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

[Signature page follows]

17

 

EXECUTED as of the date first set forth above.

	 	 	 	 	 
	 	 	GENERAL PARTNER:
	 
	 	 	 	 
	 	 	DEP OPERATING PARTNERSHIP, L.P.
	 
	 	 	 	 
	 

	 	By:
	 	DEP OLPGP, LLC,
	 

	 	 	 	its general partner
	 
	 	 	 	 
	 

	 	By:	 	 /s/ Michael A. Creel
	 

	 	 	 	 
	 

	 	 	 	Michael A. Creel
	 

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

	 	By:
	 	Enterprise Products OLPGP, Inc.,
	 

	 	 	 	its general partner
	 
	 	 	 	 
	 

	 	By:	 	 /s/ Richard H. Bachmann
	 

	 	 	 	 
	 

	 	 	 	Richard H. Bachmann
	 

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

	 	By:
	 	ENTERPRISE PRODUCTS OPERATING L.P.,
	 

	 	 	 	its general partner
	 
	 	 	 	 
	 

	 	 	 	By:    Enterprise Products OLPGP, Inc.,
	 

	 	 	 	          its general partner
	 
	 	 	 	 
	 

	 	By:	 	 /s/ Richard H. Bachmann
	 

	 	 	 	 
	 

	 	 	 	Richard H. Bachmann
	 

	 	 	 	Executive Vice President, Chief Legal Officer and Secretary

18

 

EXHIBIT A

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

1100 Louisiana Street, 10th Floor

Houston, Texas 77002

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

1100 Louisiana Street, 10th Floor

Houston, Texas 77002

	 	 	33	%
	 
	 	 	 	 
	Propylene Pipeline Partnership, L.P.

1100 Louisiana Street, 10th Floor

Houston, Texas 77002

	 	 	1	%exv10w18

 

Exhibit 10.18

Execution Copy

FORM OF FOURTH AMENDED AND RESTATED

ADMINISTRATIVE SERVICES AGREEMENT

(formerly called, EPCO AGREEMENT)

by and among

EPCO, INC.

(formerly known as Enterprise Products Company)

ENTERPRISE GP HOLDINGS L.P.

EPE HOLDINGS, LLC

ENTERPRISE PRODUCTS PARTNERS L.P.

ENTERPRISE PRODUCTS OPERATING L.P.

ENTERPRISE PRODUCTS GP, LLC

ENTERPRISE PRODUCTS OLPGP, INC.

DEP HOLDINGS, LLC

DUNCAN ENERGY PARTNERS L.P.

DEP OPERATING PARTNERSHIP, L.P.

TEPPCO PARTNERS, L.P.

TEXAS EASTERN PRODUCTS PIPELINE COMPANY, LLC

TE PRODUCTS PIPELINE COMPANY, LIMITED PARTNERSHIP

TEPPCO MIDSTREAM COMPANIES, L.P.

TCTM, L.P.

and

TEPPCO GP, INC.

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	ARTICLE 1: DEFINITIONS
	 	 	 	 
	 
	 	 	 	 
	1.1 Definitions
	 	 	2	 
	1.2 Construction
	 	 	2	 
	 
	 	 	 	 
	ARTICLE 2: SERVICES
	 	 	 	 
	 
	 	 	 	 
	2.1 EPCO Services; Term
	 	 	2	 
	2.2 EPCO Compensation
	 	 	3	 
	2.3 Dispute Regarding Services or Calculation of Costs
	 	 	3	 
	2.4 Invoices
	 	 	3	 
	2.5 Disputes; Default
	 	 	3	 
	2.6 Input Regarding EPCO Services
	 	 	3	 
	2.7 Limitation Regarding EPCO Services
	 	 	4	 
	2.8 Representations Regarding Use of Services
	 	 	4	 
	2.9 Warranties; Limitation of Liability
	 	 	4	 
	2.10 Force Majeure
	 	 	4	 
	2.11 Affiliates
	 	 	4	 
	2.12 Dedication of EPCO Employees
	 	 	4	 
	 
	 	 	 	 
	ARTICLE 3: USE OF NAME AND MARK
	 	 	 	 
	 
	 	 	 	 
	3.1 Grant of License
	 	 	4	 
	3.2 Reimbursement of Costs
	 	 	5	 
	 
	 	 	 	 
	ARTICLE 4: EPCO’S INDEMNIFICATION FOR EXCLUDED LIABILITIES
	 	 	 	 
	 
	 	 	 	 
	4.1 Indemnification
	 	 	5	 
	4.2 Indemnification Procedures
	 	 	5	 
	 
	 	 	 	 
	ARTICLE 5: OTHER AGREEMENTS
	 	 	 	 
	 
	 	 	 	 
	5.1 Insurance Matters
	 	 	5	 
	5.2 Sublease of Equipment
	 	 	5	 
	5.3 EPCO’s Employees
	 	 	5	 
	5.4 Business Opportunities
	 	 	6	 
	5.5 Adoption of Policies and Procedures
	 	 	8	 
	 
	 	 	 	 
	ARTICLE 6: MISCELLANEOUS
	 	 	 	 
	 
	 	 	 	 
	6.1 Choice of Law; Submission to Jurisdiction
	 	 	8	 
	6.2 Notices
	 	 	8	 
	6.3 Entire Agreement; Supersedure
	 	 	9	 
	6.4 Effect of Waiver of Consent
	 	 	9	 
	6.5 Amendment or Modification
	 	 	9	 

-i-

 

	 	 	 	 	 
	6.6 Assignment
	 	 	9	 
	6.7 Counterparts
	 	 	9	 
	6.8 Severability
	 	 	9	 
	6.9 Further Assurances
	 	 	9	 
	6.10 Withholding or Granting of Consent
	 	 	9	 
	6.11 U.S. Currency
	 	 	9	 
	6.12 Laws and Regulations
	 	 	9	 
	6.13 Negation of Rights of Third Parties
	 	 	9	 

Exhibit A — Definitions

Exhibit B — Policies and Procedures

Schedule 2.12 — Schedule of Initial Dedicated EPCO Employees

-ii-

 

FOURTH AMENDED AND RESTATED

ADMINISTRATIVE SERVICES AGREEMENT

     THIS FOURTH AMENDED AND RESTATED ADMINISTRATIVE SERVICES AGREEMENT (this “Agreement”) is
entered into this 30th day of January, 2007, but effective as of February 5, 2007 (the “Effective
Date”), by and among EPCO, Inc., a Texas corporation formerly known as Enterprise Products Company
(“EPCO”), Enterprise GP Holdings L.P., a Delaware limited partnership (“EPE”), EPE Holdings, LLC, a
Delaware limited liability company (“EPE GP”), Enterprise Products Partners L.P., a Delaware
limited partnership (“EPD”), Enterprise Products Operating L.P., a Delaware limited partnership
(“EPD OLP”), Enterprise Products GP, LLC, a Delaware limited liability company (“EPD GP”),
Enterprise Products OLPGP, Inc., a Delaware corporation (“EPD OLPGP”), DEP Holdings, LLC, a
Delaware limited liability company (“DEP Holdings”), Duncan Energy Partners L.P., a Delaware
limited partnership (“DEP”), DEP Operating Partnership, L.P., a Delaware limited partnership (“DEP
OLP”), TEPPCO Partners, L.P., a Delaware limited partnership (“TPP”), Texas Eastern Products
Pipeline Company, LLC, a Delaware limited liability company (“TPP GP”), TE Products Pipeline
Company, Limited Partnership, a Delaware limited partnership (“TE LP”), TEPPCO Midstream Companies,
L.P., a Delaware limited partnership (“TEPPCO Midstream”), TCTM, L.P., a Delaware limited
partnership (“TCTM”), and TEPPCO GP, Inc., a Delaware corporation (“TEPPCO Inc.”). Capitalized
terms not otherwise defined below have the meanings ascribed to such terms as set forth on
Exhibit A to this Agreement.

R E C I T A L S

     The purpose of this Agreement is to amend and restate, in its entirety, that certain Third
Amended and Restated Administrative Services Agreement (the “Third Amendment”), dated August 15,
2005 but effective as of February 24, 2005, among certain of the Parties hereto.

     The Parties hereto (other than EPE, EPE GP, EPD OLPGP, DEP Holdings, DEP, DEP OLP, TPP, TPP
GP, TE LP, TEPPCO Midstream, TCTM and TEPPCO Inc.) originally entered into that certain EPCO
Agreement, dated as of July 31, 1998, in connection with the initial public offering of EPD units,
pursuant to which EPCO and its Affiliates (other than the EPD Partnership Entities) agreed to
provide certain operational and financial support to the EPD Partnership Entities.

     Effective as of December 10, 2003, EPD OLPGP succeeded EPD GP as the general partner of EPD
OLP.

     Effective as of January 1, 2004, the Parties hereto (other than EPE, EPE GP, DEP Holdings,
DEP, DEP OLP, TPP, TPP GP, TE LP, TEPPCO Midstream, TCTM and TEPPCO Inc.) amended and restated the
EPCO Agreement pursuant to the First Amended and Restated Administrative Services Agreement (the
“First Amendment”), (i) to reduce the operational and financial support provided by the EPCO Group
to the EPD Partnership Entities, (ii) to change the manner in which the EPD Partnership Entities
were charged for certain administrative, management, and operating services provided by EPCO, from
a fixed fee to allocating the cost of such services to the EPD Partnership Entities on a pro rata
basis, (iii) to assign certain contract rights, initially retained by EPCO, but which related to
assets owned by the EPD Partnership Entities to the EPD Partnership Entities, and (iv) to reflect
certain other understandings between the EPCO Group and the EPD Partnership Entities.

     Effective as of June 21, 2004, EPCO assigned the Name and the Mark to EPD GP, and effective as
of October 1, 2004, Enterprise GP assigned the Name and Mark to EPD OLP.

     Effective October 1, 2004, the Parties hereto (other than EPE, EPE GP, DEP Holdings, DEP, DEP
OLP, TPP, TPP GP, TE LP, TEPPCO Midstream, TCTM and TEPPCO Inc.) amended and restated the First
Amendment to evidence, among other matters the terms and conditions upon which (i) the EPCO Group
would provide certain services to the EPD Partnership Entities, (ii) EPD OLP would license the use
of the Name and the Mark to EPCO and (iii) EPCO would provide indemnification to the EPD
Partnership Entities for certain matters.

     On February 24, 2005, an Affiliate of EPCO acquired TPP GP. Effective February 24, 2005, the
Parties to the Second Amendment executed Amendment No. 1 to the Second Amendment to exclude the TPP
Partnership

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Entities from the definition of EPCO Group and exclude such entities from the business
opportunity agreements set forth in the Second Amendment.

     Effective February 24, 2005, the parties hereto (other than DEP Holdings, DEP and DEP OLP)
amended and restated the Second Amendment to evidence, among other matters the terms and conditions
pursuant to which (i) the EPCO Group provided certain services to the EPE Partnership Entities,
(ii) the EPCO Group provided certain services to the TPP Partnership Entities and (iii) a variety
of additional matters were handled among the EPCO Group, the EPE Partnership Entities, the EPD
Partnership Entities and the TPP Partnership Entities.

     EPE completed the initial public offering of its units in August 2005.

     Effective February 13, 2006, the Parties executed a waiver regarding certain provisions of the
Conflicts Policies and Procedures set forth in the Third Amendment.

     On November 2, 2006, DEP filed a registration statement on Form S-1 and is in the process of
completing the initial public offering of its common units.

     The Parties hereto desire, by their execution of this Agreement, to evidence the terms and
conditions pursuant to which (i) the EPCO Group will provide certain services to the DEP
Partnership Entities and (ii) a variety of additional matters will be handled among the EPCO Group,
the EPE Partnership Entities, the EPD Partnership Entities, the DEP Partnership Entities and the
TPP Partnership Entities.

A G R E E M E N T S

     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 hereto hereby agree as follows:

ARTICLE 1:    DEFINITIONS

     1.1 Definitions. The definitions listed on Exhibit A shall be for all purposes, unless
otherwise clearly indicated to the contrary, applied to the terms used in this Agreement.

     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; (c) the terms “include”, “includes”,
“including” or words of like import shall be deemed to be followed by the words “without
limitation”; and (d) the terms “hereof”, “herein” or “hereunder” refer to this Agreement as a whole
and not to any particular provision of this Agreement. The table of contents and headings
contained in this Agreement are for reference purposes only, and shall not affect in any way the
meaning or interpretation of this Agreement.

ARTICLE 2:    SERVICES

     2.1 EPCO Services; Term. During the period beginning on the Effective Date and ending on December
31, 2010, subject to the terms of this Article 2 and Exhibit B to this Agreement and in
exchange for the reimbursement described in Section 2.2, EPCO hereby agrees to provide, or to cause
EPCO Holdings, Inc., a Texas corporation (“EPCO Holdings”), to provide, the Partnership Entities
with such selling, general and administrative services and such management and operating services
as may be necessary to manage and operate the business, properties and assets of the Partnership
Entities in accordance with Prudent Industry Practices; it being understood and agreed by the
Parties that in connection with the
provision of such services, EPCO shall employ or otherwise retain the services of such personnel as
may be necessary to cause the business, properties and assets of the Partnership Entities to be so
managed and operated (individually, an “EPCO Service” and, collectively, the “EPCO Services”).

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     2.2 EPCO Compensation. As compensation for the provision by EPCO of the EPCO Services to each of
the Partnership Entities, EPCO shall be entitled to receive, and each of the Partnership Entities
agrees to pay to EPCO, without duplication, an amount equal to the sum of all costs and expenses
(direct or indirect) incurred by EPCO which are directly or indirectly related to the business or
activities of such Partnership Entity (including, without limitation, expenses, direct or indirect,
reasonably allocated to such Partnership Entity by EPCO). In addition, each of the Partnership
Entities shall pay all sales, use, excise, value added or similar taxes, if any, that may be
applicable from time to time in respect of the EPCO Services provided to such Partnership Entity by
EPCO. The aggregate amount payable by the Partnership Entities to EPCO pursuant to this Section
2.2 with respect to a given period of time shall be referred to herein as such entity’s
“Administrative Services Fee”. It is the intention of the Parties that, with the exception of
Article V and the Retained Leases (as hereinafter defined) in the case of the EPD Partnership
Entities, the Administrative Services Fee with respect to the Partnership Entities represents fair
and reasonable compensation to EPCO for the Partnership Entities’ allocable share of all general
and administrative expenses, capital expenses and other costs for Shared Services borne or
performed by EPCO, or any of the other members of the EPCO Group, for the benefit of any
Partnership Entity.

     2.3 Dispute Regarding Services or Calculation of Costs. Should there be a dispute over the nature
or quality of the EPCO Services, or the calculation and allocation of any Administrative Services
Fee, relating to any of the EPCO Services, EPCO and the applicable Partnership Entity or Entities
shall first attempt to resolve such dispute, acting diligently and in good faith, using the past
practices of such Parties and documentary evidence of costs as guidelines for such resolution. If
EPCO and the applicable Partnership Entity or Entities are unable to resolve any such dispute
within thirty days, or such additional time as may be reasonable under the circumstances, the
dispute shall be referred to the Audit and Conflicts Committee of EPE GP, EPD GP, DEP Holdings or
TPP GP, as applicable. EPCO shall provide to each of the Partnership Entities a quarterly
statement indicating the total EPCO costs and expenses allocated to all of the Partnership Entities
and a detailed statement of the EPCO costs and expenses that are allocated to the particular group
of Partnership Entities and representative of such Partnership Entities’ Administrative Service Fee
(including an explanation of such allocation, which shall generally be consistent from period to
period); provided that one group of Partnership Entities will not receive the allocation for
another group of Partnership Entities (e.g., the EPD Partnership Entities will not receive the
detailed statement of the TPP Partnership Entities’ costs and expenses, and vice-versa). The
Parties agree that the applicable Audit and Conflicts Committee shall have the authority to settle
any such dispute, in its sole discretion, recognizing that it is the intent of all Parties that all
shared expenses or services be allocated among the EPCO Group and the applicable Partnership Entity
or Entities on a fair and reasonable basis.

     2.4 Invoices. EPCO shall invoice the applicable Billing Agent on or before the last day of each
month for the estimated Administrative Services Fee for the next succeeding month, plus or minus
any adjustment necessary to correct prior estimated billings to actual billings. All invoices
shall be due and payable on the last day of the month which the invoice covers. Upon request from
the applicable Billing Agent, EPCO shall furnish in reasonable detail a description of the EPCO
Services performed for the corresponding Partnership Entity or Entities during any month or other
relevant period.

     2.5 Disputes; Default. Notwithstanding any provision of this Article 2 to the contrary, should the
applicable Billing Agent fail to pay EPCO, when due, any amounts owing in respect of the applicable
EPCO Services, except as set forth in the third succeeding sentence, upon 30 days’ notice, EPCO may
terminate this Article 2 as to those EPCO Services that relate to the unpaid portion of the
invoice. Should there be a dispute as to the propriety of invoiced amounts, the applicable Billing
Agent shall pay all undisputed amounts on each invoice, but shall be entitled to withhold payment
of any amount in dispute and shall promptly notify EPCO of such disputed amount. EPCO shall
promptly provide the applicable Billing Agent with records relating to the disputed amount so as to
enable EPCO and the applicable Partnership Entities to resolve the dispute. So long as such
parties are attempting in good faith to resolve the dispute, EPCO shall not be entitled to
terminate the EPCO Services that relate to the disputed amount.

     2.6 Input Regarding EPCO Services. Subject to the Conflicts Policies and Procedures attached as
Exhibit B, any records, information or other input from the Partnership Entities that is
necessary for EPCO to perform any EPCO Services shall be submitted, upon EPCO’s written request
therefor, to EPCO by such Partnership Entities. If the Partnership Entities fail to supply such
records, information or other input to EPCO and such failure renders EPCO’s performance of any EPCO
Services unreasonably difficult, in EPCO’s reasonable judgment, EPCO,

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upon reasonable notice to the
applicable Partnership Entity, may refuse to perform such EPCO Services until such records,
information or other input is supplied.

     2.7 Limitation Regarding EPCO Services. The Partnership Entities acknowledge that EPCO shall only
be required to perform and provide (i) those EPCO Services with respect to the business of such
Partnership Entities as operated on the Effective Date in the case of the EPD Partnership Entities,
the TPP Partnership Entities, and the EPE Partnership Entities, and as of the closing date of DEP’s
initial public offering, in the case of the DEP Partnership Entities, and (ii) such additional EPCO
Services as may be mutually agreed orally or in writing by EPCO and the Partnership Entities, which
agreement regarding additional or fewer EPCO Services shall reflect an appropriate adjustment to
the applicable Administrative Services Fee. EPCO shall not be required to perform any EPCO
Services hereunder for the benefit of any Person other than the Partnership Entities.

     2.8 Representations Regarding Use of Services. The Partnership Entities represent and agree that
they will use the EPCO Services only in accordance with all applicable federal, state and local
laws and regulations, and in accordance with the reasonable conditions, rules, regulations, and
specifications that may be set forth in any manuals, materials, documents, or instructions
furnished from time to time by EPCO to such Partnership Entities. EPCO reserves the right to take
all actions, including, without limitation, termination of any portion of the EPCO Services for any
Partnership Entity that it reasonably believes is required to be terminated in order to assure
compliance with applicable laws and regulations.

     2.9 Warranties; Limitation of Liability. The EPCO Services shall be provided in accordance with
the Services Standard. EXCEPT AS SET FORTH IN THE PRECEDING SENTENCE, EPCO MAKES NO (AND HEREBY
DISCLAIMS AND NEGATES ANY AND ALL) WARRANTIES OR REPRESENTATIONS WHATSOEVER, EXPRESS OR IMPLIED,
WITH RESPECT TO THE EPCO SERVICES. IN NO EVENT SHALL EPCO OR ANY OF ITS AFFILIATES BE LIABLE TO
ANY OF THE PERSONS RECEIVING ANY EPCO SERVICES OR TO ANY OTHER PERSON FOR ANY EXEMPLARY, PUNITIVE,
INDIRECT, INCIDENTAL, CONSEQUENTIAL, OR SPECIAL DAMAGES RESULTING FROM ANY ERROR IN THE PERFORMANCE
OF SUCH SERVICE, REGARDLESS OF WHETHER THE PERSON PROVIDING SUCH SERVICE, ITS AFFILIATES, OR OTHERS
MAY BE WHOLLY, CONCURRENTLY, PARTIALLY, OR SOLELY NEGLIGENT OR OTHERWISE AT FAULT, EXCEPT TO THE
EXTENT SUCH EXEMPLARY, PUNITIVE, INDIRECT, INCIDENTAL, CONSEQUENTIAL OR SPECIAL DAMAGES ARE PAID BY
THE PARTY INCURRING SUCH DAMAGES TO A THIRD PARTY.

     2.10 Force Majeure. EPCO shall have no obligation to perform the EPCO Services if its failure to
do so is caused by or results from any act of God, governmental action, natural disaster, strike,
failure of essential equipment, or any other cause or circumstance, whether similar or dissimilar
to the foregoing causes or circumstances, beyond the reasonable control of EPCO.

     2.11 Affiliates. At its election, EPCO may cause one or more of its Affiliates or third party
contractors reasonably acceptable to the Party receiving any EPCO Services to provide such EPCO
Services; provided, however, EPCO shall remain responsible for the provision of such EPCO Service
in accordance with this Agreement.

     2.12 Dedication of EPCO Employees. EPCO shall cause the employees initially set forth on
Schedule 2.12 to perform EPCO Services exclusively for the benefit of the corresponding DEP
Partnership Entity or its successor set forth on Schedule 2.12. In addition, EPCO shall
designate and cause such additional personnel necessary to provide EPCO Services exclusively for
the benefit of such entities or any other DEP Partnership Entity or its successor as DEP Holdings
shall reasonably request.

.

ARTICLE 3:    USE OF NAME AND MARK

     3.1 Grant of License. Effective as of October 1, 2004, EPD OLP has granted EPCO a worldwide
royalty-free, five year right and license to use the Name and Mark pursuant to the License
Agreement.

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     3.2 Reimbursement of Costs. EPD OLP shall reimburse EPCO for the cost of removing the Name and
Mark from EPCO’s trucks in order to meet the schedule for removal of all Names and Marks on or
before the end of the term of the License Agreement.

ARTICLE 4:    EPCO’S INDEMNIFICATION FOR EXCLUDED LIABILITIES

     4.1 Indemnification. From and after the date hereof and subject to the remaining provisions of
this Article 4, EPCO shall indemnify, defend and hold harmless the Partnership Entities from and
against any loss, cost, claim, liability, prepayment or similar penalty, damage, expense, attorneys
fees, judgment, award or settlement of any kind or nature whatsoever (other than out-of-pocket
costs and expenses incurred by the Partnership Entities in connection with the discharge of their
obligations pursuant to Section 4.2(b)) (collectively, “Losses”) incurred by the Partnership
Entities in connection with the Excluded Liabilities; provided, however, in no event shall such
indemnification obligation, or the term “Losses,” cover or include exemplary, punitive, special,
consequential, indirect, or incidental damages or lost profits suffered by the Partnership Entities
in connection with the Excluded Liabilities, except to the extent such exemplary, punitive,
special, consequential, indirect or incidental damages or lost profits are actually paid by any
Partnership Entity to a third party.

     4.2 Indemnification Procedures.

          (a) EPCO shall have the right to control all aspects of the defense of any claims (and any
counterclaims) related to the Excluded Liabilities, 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 of the applicable Partnership Entities unless (i) it includes a full
release of the applicable Partnership Entities from such matter or issues, as the case may be or
(ii) following such settlement there is no realistic scenario under which the applicable
Partnership Entities could be held liable for such matter or issues.

          (b) The Partnership Entities agree, at their own cost and expense, to cooperate fully with
EPCO with respect to all aspects of the defense of any claims related to the Excluded Liabilities,
including, without limitation, the prompt furnishing to EPCO of any correspondence or other notice
relating thereto that the applicable Partnership Entities may receive, permitting the names of the
applicable Partnership Entities to be utilized in connection with such defense and the making
available to EPCO of any files, records or other information of the applicable Partnership Entities
that EPCO considers relevant to such defense; provided, however, that in connection therewith EPCO
agrees to use reasonable efforts to minimize the impact thereof on the operations of such
Partnership Entities. In no event shall the obligation of the applicable Partnership Entities to
cooperate with EPCO as set forth in the immediately preceding sentence be construed as imposing
upon the applicable Partnership Entities an obligation to hire and pay for counsel in connection
with the defense of any claims related to the Excluded Liabilities.

ARTICLE 5:    OTHER AGREEMENTS

     5.1 Insurance Matters. EPCO hereby agrees to cause the Partnership Entities to be named as
additional insureds in EPCO’s insurance program, as in effect from time to time. Subject to
Section 2.5, each of the Partnership Entities shall be allocated, and pay for, such insurance
coverage in an amount equal to EPCO’s cost of insuring the assets and operations of such
partnership entities.

     5.2 Sublease of Equipment. Effective June 1, 1998, EPCO and EPD OLP entered into one or more
Sublease Agreements (the “Sublease Agreements”), pursuant to which EPCO agreed to sublease to EPD
OLP the equipment covered by the Retained Leases. EPCO has assigned to EPD OLP all options held by
EPCO to purchase any and all equipment subject to the Sublease Agreements and the Retained Leases.

     5.3 EPCO’s Employees.

          (a) The obligation of each Billing Agent to pay the Administrative Services Fee shall, as such
obligation relates to EPCO’s expenses incurred to compensate its employees providing the EPCO
Services,

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reimburse EPCO for the appropriate pro rata cost of such employees’ salaries, wages,
bonuses, benefits, social security and other taxes, workers compensation insurance, retirement and
insurance benefits, training, and other direct and indirect costs of such employee fringe benefits.
The applicable Billing Agent shall not be obligated to pay any amount directly to EPCO’s
employees; provided, however, if EPCO ever fails to pay any employee providing EPCO Services within
30 days following the date such employee’s payment is due:

          (i) the applicable Billing Agent or any Affiliate may (w) pay such employee directly,
(x) employ such employee directly, (y) notify EPCO and begin to pay all employees providing
EPCO Services directly, or (z) notify EPCO that the portion of this Agreement relating to
the EPCO Services is terminated and employ directly any or all of such employees, or employ
such other individuals as the applicable Billing Agent and its Affiliates may choose in
their sole discretion, and

          (ii) EPCO shall reimburse the applicable Billing Agent for any amount that such Billing
Agent or its Affiliate paid to EPCO, for EPCO’s employees providing the EPCO Services, that
EPCO did not pay to, or on behalf of, such employees.

          (b) Notwithstanding anything in Section 5.3(a) to the contrary, the applicable Billing Agent,
shall have the right, at any time upon at least 90 days notice to EPCO, to terminate the portion of
this Agreement relating to the EPCO Services and to employ any or all of EPCO’s employees providing
the EPCO Services directly, or employ such other individuals as the applicable Billing Agent or its
Affiliates may choose in its sole discretion.

     5.4 Business Opportunities.

          (a) If any member of the EPCO Group, the EPE Partnership Entities, the EPD Partnership
Entities, or the DEP Partnership Entities (the “Business Opportunity Parties”) is offered by a
third party, or discovers an opportunity to acquire from a third party, Equity Securities (an
“Equity Business Opportunity”), the Business Opportunity Party that is offered or discovers such
Equity Business Opportunity shall promptly advise the Board of Directors of EPE GP and present such
Equity Business Opportunity to EPE. EPE shall be presumed to desire to acquire the Equity
Securities until such time as EPE GP advises the EPCO Group, EPD GP (on behalf of the EPD
Partnership Entities) and DEP Holdings (on behalf of the DEP Partnership Entities) that EPE has
abandoned the pursuit of such Equity Business Opportunity. In the event that the purchase price of
the Equity Securities is reasonably likely to equal or exceed $100 million, any decision to decline
the Equity Business Opportunity shall be made by the Chief Executive Officer of EPE GP after
consultation with and subject to the approval of its Audit and Conflicts Committee. If the
purchase price is reasonably likely to be less than $100 million, the Chief Executive Officer of
EPE GP may make the determination to decline the Equity Business Opportunity without consulting the
Audit and Conflicts Committee of EPE GP. In the event that EPE abandons the Equity Business
Opportunity and so notifies the EPCO Group, EPD GP (on behalf of the EPD Partnership Entities) and
DEP Holdings (on behalf of the DEP Partnership Entities), EPD shall have the second right to pursue
such Equity Business Opportunity. EPD shall be presumed to desire to acquire the equity securities
until such time as EPD GP advises the EPCO Group and DEP Holdings (on behalf of the DEP Partnership
Entities) that EPD has abandoned the pursuit of such Equity Business Opportunity. In determining
whether or not to pursue the Equity Business Opportunity, EPD will follow the same procedures
applicable to EPE, as described above but utilizing EPD GP’s Chief Executive Officer and Audit and
Conflicts Committee. EPD, in its sole discretion, may also keep and designate such Equity Business
Opportunity for the benefit and pursuit by DEP. In such event, DEP shall have the opportunity to
pursue such acquisition until the earlier of (i) the Board of Directors of DEP Holdings notifies
EPD that DEP does not intend to pursue such Equity Business Opportunity or (ii) EPD abandons such
Equity Business Opportunity for both itself and for the benefit of DEP. In the event that EPD
abandons the Equity Business Opportunity and so notifies the EPCO Group and DEP Holdings (on behalf
of the DEP Partnership Entities), the EPCO Group may either pursue the Equity Business Opportunity
or offer the Equity Business Opportunity to EPCO Holdings, or the TPP Partnership Entities, in
either case, without any further obligation to the Business Opportunity Parties. Notwithstanding
anything to the contrary in this agreement, the Chief Executive Officer of EPE GP is not required
to present such Equity Business Opportunity equal to or in excess of $100 million to the Audit and
Conflicts Committee of EPE GP in order to decline such opportunity unless such opportunity is to be
reoffered to, or is desired to be taken by, another Party to this Agreement or their Affiliates.

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          (b) If any Business Opportunity Party is offered by a third party, or discovers a business
opportunity not covered by Section 5.4(a) (a “Non-Equity Securities Opportunity”), the Business
Opportunity Party that is offered or discovers such Non-Equity Securities Opportunity shall
promptly advise the Board of Directors of EPD GP and present such Non-Equity Securities Opportunity
to EPD. EPD shall be presumed to desire to pursue the Non-Equity Securities Opportunity until such
time as EPD GP advises the EPCO Group, EPE GP (on behalf of the EPE Partnership Entities) and DEP
Holdings (on behalf of the DEP Partnership Entities) that EPD has abandoned the pursuit of such
Non-Equity Securities Opportunity.

     In the event that the purchase price of the Non-Equity Securities Opportunity is reasonably
likely to equal or exceed $100 million, any decision to decline the Non-Equity Securities
Opportunity shall be made by the Chief Executive Officer of EPD GP after consultation with and
subject to the approval of its Audit and Conflicts Committee. If the purchase price is reasonably
likely to be less than $100 million, the Chief Executive Officer of EPD GP may make the
determination to decline the Non-Equity Securities Opportunity without consulting the Audit and
Conflicts Committee of EPD GP. Notwithstanding anything to the contrary in this agreement, the
Chief Executive Officer of EPD GP is not required to present such Non-Equity Securities Opportunity
equal to or in excess of $100 million to such Audit and Conflicts Committee in order to decline
such opportunity unless such opportunity is to be reoffered to, or is desired to be taken by,
another Party to this Agreement or their Affiliates.

     EPD, in its sole discretion, may also keep and designate such Non-Equity Securities
Opportunity for the benefit and pursuit by DEP. In such event, DEP shall have the opportunity to
pursue such acquisition until the
earlier of (i) the Board of Directors of DEP Holdings notifies EPD that DEP does not intend to
pursue such Non-Equity Securities Opportunity or (ii) EPD abandons such Non-Equity Securities
Opportunity for both itself and for the benefit of DEP.

     In the event that EPD abandons the Non-Equity Securities Opportunity and so notifies the EPCO
Group, EPE GP (on behalf of the EPE Partnership Entities) and DEP Holdings (on behalf of the DEP
Partnership Entities), EPE shall have the second right to pursue such Non-Equity Securities
Opportunity. EPE shall be presumed to desire to pursue the Non-Equity Securities Opportunity until
such time as EPE GP advises the EPCO Group that EPE has abandoned the pursuit of such opportunity.
In determining whether or not to pursue the Non-Equity Securities Opportunity, EPE will follow the
same procedures applicable to EPD, as described above but utilizing EPE GP’s Chief Executive
Officer and Audit and Conflicts Committee.

     In the event that EPE abandons the Non-Equity Securities Opportunity and so notifies the EPCO
Group, the EPCO Group may either pursue the Non-Equity Securities Opportunity or offer the
Non-Equity Securities Opportunity to EPCO Holdings or the TPP Partnership Entities, in either case,
without any further obligation to the Business Opportunity Parties.

          (c) None of the EPCO Group, the EPE Partnership Entities, the EPD Partnership Entities nor the
DEP Partnership Entities shall have any obligation to present any Business Opportunity to any of
the TPP Partnership Entities. None of the TPP Partnership Entities shall have any obligation to
present any Business Opportunity to the EPCO Group, the EPE Partnership Entities, the EPD
Partnership Entities or the DEP Partnership Entities.

          (d) Any Business Opportunity offered to or discovered by any EPCO employee solely responsible
for the business and affairs of any of the TPP Partnership Entities shall not be subject to the
Business Opportunity agreements contained in this Section 5.4 other than Section 5.4(c).

          (e) Any Business Opportunity offered to or discovered by an EPCO employee solely responsible
for the business and affairs of any of the EPE Partnership Entities shall be considered a Business
Opportunity of the EPE Partnership Entities for purposes of this Section 5.4.

          (f) Any Business Opportunity offered to or discovered by an EPCO employee solely responsible
for the business and affairs of any of the EPD Partnership Entities shall be considered a Business
Opportunity of the EPD Partnership Entities for purposes of this Section 5.4.

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          (g) Any Business Opportunity offered to or discovered by EPCO employee solely responsible for
the business and affairs of any of the DEP Partnership Entities shall be considered a Business
Opportunity of the DEP Partnership Entities for purposes of this Section 5.4 only to the extent
expressly designated as an Business Opportunity for the DEP Partnership Entities in accordance with
the agreement of limited partnership of DEP or DEP OLP, and otherwise shall be considered a
Business Opportunity of the EPD Partnership Entities for purposes of this Section 5.4. DEP and DEP
OLP acknowledge and agree that such partnerships have renounced their interest in Business
Opportunities to the extent set forth in their respective partnership agreements, and hereby agree
that, to the extent such opportunities are abandoned by EPD, EPE, the EPCO Group or other third
parties may rely on such agreements in their respective partnership agreements in connection with
their pursuit of such Business Opportunities.

          (h) Any Business Opportunity offered to or discovered by any EPCO employee who performs Shared
Services shall be allocated to the EPCO Group, the EPE Partnership Entities, the EPD Partnership
Entities and/or the TPP Partnership Entities:

          (i) to the extent that the Business Opportunity is first presented to such employee in
such employee’s capacity as a representative of the EPCO Group, the EPE Partnership
Entities, the EPD Partnership Entities, the DEP Partnership Entities, or the TPP Partnership
Entities, such Business Opportunity shall be allocated to the Partnership Entities then
represented by such employee (or to the EPD Partnership Entities with respect to a
representative of the DEP Partnership Entities to the extent not
expressly designated as an Business Opportunity for the DEP Partnership Entities in
accordance with the agreement of limited partnership of DEP or DEP OLP); and

          (ii) to the extent that the Business Opportunity is first presented to such employee in
such employee’s individual capacity without regard to his representation of any Partnership
Entity, such Business Opportunity shall be allocated to the Partnership Entity for which
such employee devotes the most significant amount of such employee’s time (or to the EPD
Partnership Entities with respect to a representative of the DEP Partnership Entities to the
extent not expressly designated as an Business Opportunity for the DEP Partnership Entities
in accordance with the agreement of limited partnership of DEP or DEP OLP).

          (i) EPCO has caused all EPCO employees who may receive Business Opportunities to acknowledge
and agree to comply with the Business Opportunity agreements set forth in this Section 5.4.

     5.5 Adoption of Policies and Procedures. The Boards of Directors of EPCO, EPE GP, EPD GP, DEP
Holdings and TPP GP have adopted the Conflicts Policies and Procedures attached hereto as
Exhibit B (the “Conflicts Policy”). EPCO agrees to, and agrees to use all reasonable
efforts to cause its employees to, comply with the Conflicts Policy.

ARTICLE 6:    MISCELLANEOUS

     6.1 Choice of Law; Submission to Jurisdiction. This Agreement shall be subject to and governed by
the laws of the State of Texas. Each Party hereby submits to the exclusive jurisdiction of the
state and federal courts in the State of Texas and to exclusive venue in Houston, Harris County,
Texas.

     6.2 Notices. All notices or requests or consents provided for or permitted to be given pursuant to
this Agreement must be in writing and must be given by depositing same in the United States mail,
addressed to the Party to be notified, postpaid, and registered or certified with return receipt
requested or by delivering such notice in person or by facsimile to such Party. Notice given by
personal delivery or mail shall be effective upon actual receipt. Notice given by facsimile 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 such Party’s signature to this Agreement,
or at such other address as such Party may stipulate to the other Parties in the manner provided in
this Section 6.2.

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

     6.4 Effect of Waiver of Consent. No Party’s express or implied waiver of, or consent to, any
breach or default by any Party in the performance by such Party 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 Party of the same or any other obligations of such Party hereunder. Failure on
the part of a Party to complain of any act of any Party or to declare any Party 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.

     6.5 Amendment or Modification. This Agreement may be amended or modified from time to time only by
the agreement of all the Parties affected by any such amendment; provided, however, that EPE, EPD,
DEP and TPP may not, without the prior approval of its Audit and Conflicts Committee, agree to any
amendment or modification of this Agreement that, in the reasonable discretion of EPE GP, EPD GP,
DEP Holdings, or TPP GP, as applicable, will materially and adversely affect the holders of units
of EPE, EPD, DEP or TPP, as applicable.

     6.6 Assignment. No Party shall have the right to assign or delegate its rights or obligations
under this Agreement without the consent of the other Parties.

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

     6.8 Severability. If any provision of this Agreement or the application thereof to any Party or
circumstance shall be held invalid or unenforceable to any extent, the remainder of this Agreement
and the application of such provision to other Parties or circumstances shall not be affected
thereby and shall be enforced to the greatest extent permitted by law.

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

     6.10 Withholding or Granting of Consent. Unless the consent or approval of a Party is expressly
required not to be unreasonably withheld (or words to similar effect), 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.

     6.11 U.S. Currency. All sums and amounts payable or to be payable pursuant to the provisions of
this Agreement shall be payable in coin or currency of the United States of America that, at the
time of payment, is legal tender for the payment of public and private debts in the United States
of America.

     6.12 Laws and Regulations. Notwithstanding any provision of this Agreement to the contrary, no
Party hereto 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.

     6.13 Negation of Rights of Third Parties. The provisions of this Agreement are enforceable solely
by the Parties, and no limited partner of EPE, EPD, DEP or TPP or other Person shall have the right
to enforce any provision of this Agreement or to compel any Party to comply with the terms of this
Agreement.

[SIGNATURE PAGES FOLLOW]

-9-

 

     IN WITNESS WHEREOF, the Parties have caused this Agreement to be duly executed by their
respective authorized officers as of January 30, 2007, to be effective as of the Effective Date.

	 	 	 	 	 	 	 
	 	 	EPCO, INC. (formerly known as Enterprise

Products Company, a Texas corporation)	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 /s/ Richard H. Bachmann	 	 
	 

	 	 	 	 

	 	 
	 

	 	Name:
	 	Richard H. Bachmann	 	 
	 

	 	Title:
	 	Executive Vice President and	 	 
	 

	 	 	 	Chief Legal Officer	 	 
	 
	 	 	 	 	 	 
	 	 	Address for Notice:

1100 Louisiana, 10th Floor

Houston, Texas 77002

Facsimile No.: (713) 381-6500	 	 

[signature page]

 

 

	 	 	 	 	 	 	 
	 	 	ENTERPRISE GP HOLDINGS L.P.	 	 
	 
	 	 	 	 	 	 
	 	 	EPE HOLDINGS, LLC

Individually and as Sole General Partner of

Enterprise GP Holdings L.P.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 /s/ W. Randall Fowler	 	 
	 

	 	 	 	 

W. Randall Fowler
	 	 
	 

	 	 	 	Senior Vice President and Chief	 	 
	 

	 	 	 	Financial Officer	 	 
	 
	 	 	 	 	 	 
	 	 	Address for Notice: 

1100 Louisiana, 10th Floor

Houston, Texas 77002

Facsimile No.: (713) 381-8200	 	 
	 
	 	 	 	 	 	 
	 	 	ENTERPRISE PRODUCTS PARTNERS L.P.	 	 
	 
	 	 	 	 	 	 
	 	 	ENTERPRISE PRODUCTS OPERATING L.P.	 	 
	 
	 	 	 	 	 	 
	 	 	ENTERPRISE PRODUCTS GP, LLC,

Individually and as Sole General Partner of

Enterprise Products Partners L.P., and	 	 
	 
	 	 	 	 	 	 
	 	 	ENTERPRISE PRODUCTS OLPGP, INC.,

Individually and as Sole General Partner of

Enterprise Products Operating L.P.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 /s/ W. Randall Fowler	 	 
	 

	 	 	 	 

W. Randall Fowler

Senior Vice President and Treasurer
	 	 
	 
	 	 	 	 	 	 
	 	 	Address for Notice: 

1100 Louisiana, 10th Floor

Houston, Texas 77002

Facsimile No.: (713) 381-8200	 	 

 

 

	 	 	 	 	 	 	 
	 	 	DUNCAN ENERGY PARTNERS L.P.	 	 
	 	 	DEP HOLDINGS, LLC

Individually and as Sole General Partner

of Duncan Energy Partners L.P.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 /s/ Michael A. Creel	 	 
	 

	 	 	 	 

Michael A. Creel
	 	 
	 

	 	 	 	Executive Vice President and Chief Financial
Officer	 	 
	 
	 	 	 	 	 	 
	 	 	Address for Notice:

1100 Louisiana, 10th Floor

Houston, Texas 77002

Facsimile No.: (713) 381-8200	 	 
	 
	 	 	 	 	 	 
	 	 	DEP OPERATING PARTNERSHIP, L.P.	 	 
	 
	 	 	 	 	 	 
	 	 	By: DEP OLPGP, LLC, as Sole General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 /s/ Michael A. Creel	 	 
	 

	 	 	 	 

Michael A. Creel
	 	 
	 

	 	 	 	Executive Vice President and Chief Financial
Officer	 	 
	 
	 	 	 	 	 	 
	 	 	Address for Notice:

1100 Louisiana, 10th Floor

Houston, Texas 77002

Facsimile No.: (713) 381-8200	 	 

[signature page]

 

 

	 	 	 	 	 	 	 
	 	 	TEPPCO PARTNERS, L.P.	 	 
	 
	 	 	 	 	 	 
	 	 	TEXAS EASTERN PRODUCTS PIPELINE

COMPANY, LLC

Individually and as Sole General Partner of

TEPPCO Partners, L.P.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ William G. Manias 	 	 
	 

	 	 	 	 

William G. Manias, Vice President and Chief
Financial Officer
	 	 
	 
	 	 	 	 	 	 
	 	 	Address for Notice:

1100 Louisiana, Suite 1600

Houston, Texas 77002

Facsimile No.: (713) 381-4039	 	 
	 
	 	 	 	 	 	 
	 	 	TE PRODUCTS PIPELINE COMPANY,

LIMITED PARTNERSHIP	 	 
	 
	 	 	 	 	 	 
	 	 	TEPPCO MIDSTREAM COMPANIES, L.P.	 	 
	 
	 	 	 	 	 	 
	 	 	TCTM, L.P.	 	 
	 
	 	 	 	 	 	 
	 	 	TEPPCO GP, Inc.

Individually and as Sole General Partner of TE

Products Pipeline Company, Limited Partnership,

TEPPCO Midstream Companies, L.P. and TCTM,
L.P.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ William G. Manias 	 	 
	 

	 	 	 	 

William G. Manias, Vice President and Chief
Financial Officer
	 	 
	 
	 	 	 	 	 	 
	 	 	Address for Notice:

1100 Louisiana, Suite 1600

Houston, Texas 77002

Facsimile No.: (713) 381-4039	 	 

[signature page]

 

 

Exhibit A

DEFINED TERMS

     “Administrative Services Fee” shall have the meaning set forth in Section 2.2.

     “Affiliate” shall mean, with respect to any Person, any other Person that directly or
indirectly through one or more intermediaries controls, is controlled by or is under common control
with, the Person in question. As used herein, the term “control” means the possession, direct or
indirect, of the power to direct or cause the direction of the management and policies of a Person,
whether through ownership of voting securities, by contract or otherwise. Notwithstanding the
foregoing, a Person shall only be considered an “Affiliate” of the general partner of EPE, EPD, DEP
or TPP, as applicable, if such Person owns, directly or indirectly, 50% or more of the voting
securities of such general partner or otherwise possesses the sole power to direct or cause the
direction of the management and policies of such general partner.

     “Agreement” shall mean this Fourth Amended and Restated Administrative Services Agreement, as
it may be amended, modified, or supplemented from time to time.

     “Audit and Conflicts Committee” means a committee of the Board of Directors of EPE GP, EPD GP.
DEP Holdings or TPP GP, as applicable, composed entirely of three or more directors who meet the
independence, qualification and experience requirements established by the Securities Exchange Act
and the rules and regulations of the Commission thereunder and by The New York Stock Exchange, and
with respect to EPD GP and TPP GP, at least two of whom also meet the S&P Criteria.

     “Billing Agent” shall mean (i) in the case of the EPE Partnership Entities, EPE Holdings, LLC,
(ii) in the case of the EPD Partnership Entities, Enterprise Products GP, LLC, (iii) in the case of
the DEP Partnership Entities, DEP Holdings, and (iv) in the case of TPP, TEPPCO GP, Inc.

     “Business Opportunity” shall mean, collectively or individually, as the context may require,
an Equity Business Opportunity and/or a Non-Equity Securities Opportunity.

     “Business Opportunity Parties” shall have the meaning set forth in Section 5.4(a).

     “Commission” shall mean the United States Securities and Exchange Commission.

     “DEP” shall have the meaning set forth in the Preamble.

     “DEP Holdings” shall have the meaning set forth in the Preamble.

     “DEP OLP” shall have the meaning set forth in the Preamble.

     “DEP Partnership Entities” shall mean DEP Holdings, DEP, DEP OLP and any Affiliate controlled
(and only so long as such Affiliates are controlled) by DEP Holdings, DEP or DEP OLP (as the term
“control” is used in the definition of “Affiliate”).

     “Effective Date” shall have the meaning set forth in the Preamble.

     “EPCO” shall have the meaning set forth in the Preamble.

     “EPCO Group” shall mean EPCO and its Affiliates (other than the Partnership Entities).

     “EPCO Holdings” shall have the meaning set forth in Section 2.1(a).

     “EPCO Services” shall have the meaning set forth in Section 2.1.

A-1 

 

     “EPD” shall have the meaning set forth in the Preamble.

     “EPD GP” shall have the meaning set forth in the Preamble.

     “EPD OLP” shall have the meaning set forth in the Preamble.

     “EPD OLPGP” shall have the meaning set forth in the Preamble.

     “EPD Partnership Entities” shall mean EPD GP, EPD, EPD OLP and any Affiliate controlled (and
only so long as such Affiliates are controlled) by EPD GP, EPD or EPD OLP (as the term “control” is
used in the definition of “Affiliate”).

     “EPE” shall have the meaning set forth in the Preamble.

     “EPE GP” shall have the meaning set forth in the Preamble.

     “EPE Partnership Entities” shall mean EPE GP, EPE and any Affiliate controlled (and only so
long as such Affiliates are controlled) by EPE GP or EPE (as the term “control” is used in the
definition of “Affiliate”) but excluding the EPD Partnership Entities.

     “Equity Business Opportunity” shall have the meaning set forth in Section 5.4(a).

     “Equity Securities” shall mean (i) general partner interests (or securities which have
characteristics similar to general partner interests) and incentive distribution rights or similar
rights in publicly traded partnerships or interests in Persons that own or control such general
partner or similar interests (collectively, “GP Interests”) and securities convertible,
exercisable, exchangeable or otherwise representing ownership or control of such GP Interests and
(ii) incentive distribution rights and limited partner interests (or securities which have
characteristics similar to incentive distribution rights or limited partner interests) in publicly
traded partnerships or interests in Persons that own or control such limited partner or similar
interests (collectively, “non-GP Interests”); provided that such non-GP Interests are associated
with GP Interests and are owned by the owners of GP Interests or their respective Affiliates.

     “Excluded Liabilities” shall mean the following liabilities and obligations:

          (a) all indebtedness of EPCO and its Affiliates other than the Partnership Entities for
borrowed money; and

          (b) any income tax liability of EPCO that may result from the consummation of the transactions
contemplated by the First Amendment, the Second Amendment or this Agreement.

     “First Amendment” shall have the meaning set forth in the Preamble.

     “Independent Director” shall mean an individual who meets the independence, qualification and
experience requirements of the New York Stock Exchange

     “License Agreement” shall mean that certain Trademark License Agreement, effective August 18,
2004, by and between EPD OLP and EPCO.

     “Losses” shall have the meaning set forth in Section 4.1.

     “Name” and “Mark” shall mean the name “Enterprise”, as described in Registration Number
1,236,995 registered on May 10, 1983 and issued by the United States Patent and Trademark Office,
and the mark “Enterprise”, as described in Application Registration Number 1,292,612 registered on
September 4, 1984 and issued by the United States Patent and Trademark Office.

A-2 

 

     “Non-Equity Securities Opportunity” shall have the meaning set forth in Section 5.4(b).

     “Party” shall mean any one of the Persons that executes this Agreement.

     “Partnership Entity” or “Partnership Entities” shall mean the individual or collective
reference, as the context may require, to the EPD Partnership Entities, the EPE Partnership
Entities, the DEP Partnership Entities and/or the TPP Partnership Entities.

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

     “Prudent Industry Practices” shall mean, at a particular time, any of the practices, methods
and acts which, in the exercise of reasonable judgment, will result in the proper operation and
maintenance of the assets owned by a Party or its Affiliates and shall include, without limitation,
the practices, methods and acts engaged in or approved by a significant portion of the industry at
such time with respect to the assets of the same or similar types as the assets owned by such Party
or its Affiliates. Prudent Industry Practices are not intended to be limited to optimum practices,
methods or acts, to the exclusion of all others, but rather represent a spectrum of possible
practices, methods and acts which could have been expected to accomplish the desired result at a
commercially reasonable cost in a reliable, safe and timely fashion, in compliance with the
applicable limited partnership agreement and limited liability company agreement and in accordance
with all applicable laws. Prudent Industry Practices are intended to entail the same standards as
the Parties would, in the prudent management of their own properties, use from time to time.

     “Retained Leases” shall mean the operating leases relating to (i) one cogeneration unit, and
(ii) approximately 100 rail cars, the liabilities of each of which were retained by EPCO in
connection with the formation of EPD and EPD OLP.

     “S&P Criteria” shall mean a duly appointed member of the Audit and Conflicts Committee who had
not been, at the time of such appointment or at any time in the preceding five years, (a) a direct
or indirect legal or beneficial owner of interests in EPD or TPP, as applicable, or any of its
Affiliates (excluding de minimis ownership interests having a value of less than $1 million), (b) a
creditor, supplier, employee, officer, director, family member, manager or contractor of EPD or
TPP, as applicable, or any of its Affiliates, or (c) a person who controls (whether directly,
indirectly or otherwise) EPD or TPP, as applicable, or any of its Affiliates or any creditor,
supplier, employee, officer, director, manager or contractor of EPD or TPP, as applicable, or any
of its Affiliates.

     “Second Amendment” shall have the meaning set forth in the Preamble.

     “Securities Act” shall mean the Securities Act of 1933, as amended, supplemented or restated
from time to time, and any successor to such statute.

     “Securities Exchange Act” shall mean the Securities Exchange Act of 1934, as amended,
supplemented or restated from time to time, and any successor to such statute.

     “Services Standard” shall mean, with respect to the performance of the EPCO Services, the good
faith undertaking, on a commercially reasonable basis, to perform the EPCO Services (i) in the case
of the EPD Partnership Entities, at least the same quality and manner as EPCO Services were
provided by EPCO or its Affiliates to the EPD Partnership Entities during calendar year 2004, (ii)
in the case of the TPP Partnership Entities, at least the same quality and manner as services were
provided by Duke Energy Field Services LLC or its Affiliates to the TPP Partnership Entities during
calendar year 2004 and (iii) in all material respects in compliance with applicable laws and
Prudent Industry Practices.

     “Shared Services” shall mean the performance of services for more than one of the groups of
entities comprising the EPCO Group, the EPE Partnership Entities, the EPD Partnership Entities, the
DEP Partnership Entities and the TPP Partnership Entities.

A-3 

 

     “Sublease Agreements” shall have the meaning set forth in Section 5.2.

     “TCTM” shall have the meaning set forth in the Preamble.

     “TE LP” shall have the meaning set forth in the Preamble.

     “TEPPCO Midstream” shall have the meaning set forth in the Preamble.

     “TEPPCO Inc.” shall have the meaning set forth in the Preamble.

     “Third Amendment” shall have the meaning set forth in the Recitals.

     “TPP” shall have the meaning set forth in the Preamble.

     “TPP GP” shall have the meaning set forth in the Preamble.

     “TPP Partnership Entities” shall mean TPP GP, TPP and any Affiliate controlled (and only so long as
such Affiliates are controlled) by TPP GP or TPP (as the term “control” is used in the definition
of “Affiliate”).

A-4 

 

Exhibit B

Conflicts Policies and Procedures

     Capitalized terms used but not defined in this Exhibit B shall have the meanings assigned to
such terms in that certain Fourth Amended and Restated Administrative Services Agreement, effective
February 5, 2007, of which this Exhibit B forms a part.

     This Exhibit B outlines the corporate governance structure and the policies and procedures
that have been adopted by EPE GP, EPD GP, DEP Holdings and TPP GP to address potential conflicts
among, protect the confidential information of, and govern the sharing of EPCO personnel among, the
Partnership Entities.

Corporate Governance

Boards of Directors –

     (a) Independent Directors. Each of EPE GP, EPD GP, DEP Holdings and TPP GP will have
at least three Independent Directors on its board of directors. None of such Independent Directors
will overlap among EPE GP, EPD GP, DEP Holdings and TPP GP. Each of EPE GP, EPD GP, DEP Holdings
and TPP GP shall maintain a majority of Independent Directors on its board of directors to the
extent required under applicable rules of the securities exchange on which securities of EPE, EPD,
DEP and TPP trade, but otherwise shall not be required to maintain a majority of Independent
Directors on its board of directors.

     (b) Other Directors. Other than the persons expressly noted below, no director shall
serve on more than one of the boards of directors of EPE GP, EPD GP, DEP Holdings and TPP GP. Dan
L. Duncan, Robert G. Phillips, Michael A. Creel, W. Randall Fowler and/or Richard H. Bachmann may
serve on more than one of the foregoing boards of directors or any committee thereof.

     Notwithstanding the foregoing in clauses (a) and (b) above, Mr. Duncan and any one or more of
the other individuals serving as directors of EPE GP, EPD GP or DEP Holdings and any one or more of
the individuals serving as directors of TPP GP may attend the meetings of the board of directors of
the Partnership Entity of which Mr. Duncan and/or such individuals are not directors, but only at
the invitation of EPE GP, EPD GP, DEP Holdings or TPP GP, as applicable, and so long as no
information concerning Commercial and Development Activities involving Potential Overlapping Assets
is provided to Mr. Duncan and/or such individuals while in attendance at such meetings.

     Separate Commercial Management and Employees – EPCO employees performing Commercial and
Development Activities involving Potential Overlapping Assets for the EPE Partnership Entities, the
EPD Partnership Entities and/or the DEP Partnership Entities, on the one hand, and the TPP
Partnership Entities, on the other hand, shall not overlap. EPCO employees performing Commercial
and Development Activities which do not involve Potential Overlapping Assets for the EPE
Partnership Entities, the EPD Partnership Entities, the DEP Partnership Entities and/or the TPP
Partnership Entities may overlap.

     Shared Services – EPCO employees may be assigned to perform Shared Services for all or any of
the Partnership Entities. EPCO employees performing Shared Services may be appointed to officer
positions (including executive officer positions) at more than one of EPE GP, EPD GP, DEP Holdings
and TPP GP or their respective controlled Affiliates. However, as stated above, EPCO employees
performing Commercial and Development Activities for either the EPE Partnership Entities, the EPD
Partnership Entities, and/or the DEP Partnership Entities, on the one hand, or the TPP Partnership
Entities, on the other hand, may perform Shared Services for any group of Entities except to the
extent that such Shared Services constitute Commercial and Development Activities involving
Potential Overlapping Assets. As a result of their performance of Shared Services, Shared
Employees may obtain Commercial Information that relates to more than one of the groups of
Partnership Entities. To the extent that any Shared Employee has Commercial Information that
relates to the EPE Partnership Entities, the EPD Partnership Entities, the DEP Partnership Entities
and the TPP Partnership Entities and involves Potential Overlapping Assets, such Shared Employee
shall not engage in any activities to which such Commercial Information relates unless such

B-1 

 

activities are approved by both the Screening Officer of the EPE Partnership Entities, the EPD
Partnership Entities, the DEP Partnership Entities and the Screening Officer of the TPP Partnership
Entities.

Information Screening for Shared Employees

     To the fullest extent possible, Shared Employees should avoid access to Commercial Information
for any Partnership Entities for which they do not perform Commercial and Development Activities.
To the extent that any Shared Employee who engages in Commercial and Development Activities becomes
privy to Commercial Information relating to Potential Overlapping Assets of any Partnership
Entities for which such employee does not perform Commercial and Development Activities, such
Shared Employee must report that fact and the nature of the Confidential Information to the
Screening Officers who will maintain a record of the name of the person, the date of the report,
and the nature of the Commercial Information obtained by the Shared Employee.

     Except as expressly permitted by the Screening Officers, to the extent required to effectively
perform the Shared Services or in connection with existing or potential joint venture arrangements
between any of the EPE Partnership Entities, the EPD Partnership Entities and the DEP Partnership
Entities, on the one hand, and any of the TPP Partnership Entities, on the other hand, (i) Shared
Employees shall not disclose Commercial Information relating to Potential Overlapping Assets of the
TPP Partnership Entities to any director, officer or employee associated with the EPE Partnership
Entities, the EPD Partnership Entities or the DEP Partnership Entities; and (ii) Shared Employees
shall not disclose Commercial Information relating to Potential Overlapping Assets of the EPE
Partnership Entities, the EPD Partnership Entities or the DEP Partnership Entities to any director,
officer or employee associated with the TPP Partnership Entities.

     Shared Employees should seek guidance on the foregoing restrictions from the Screening
Officers to the extent that they are uncertain as to an appropriate course of action.

Information Screening for Dan L. Duncan

     Mr. Dan L. Duncan and his Affiliates directly and indirectly own and control EPE GP, EPD GP,
DEP Holdings and TPP GP. As a result of the potential conflicts generated by this cross-ownership,
Mr. Duncan shall limit his access to information and his ability to control the management of the
TPP Partnership Entities as described below.

     Mr. Duncan will be screened from any information relating to the Potential Overlapping Assets
of the TPP Partnership Entities except (a) information that the TPP Partnership Entities have made
available to the public, (b) aggregated financial information and budgets of the TPP Partnership
Entities and (c) information related to environmental matters. The foregoing restrictions shall
not apply if it is determined that Mr. Duncan requires access to additional information concerning
the TPP Partnership Entities and the Screening Officer of the TPP Partnership Entities determines
that the information would not be competitively sensitive; provided, the foregoing shall apply to
the extent sharing of additional information concerning the TPP Partnership Entities (including
information concerning shippers who store NGLs in Mont Belvieu Storage Partners, L.P. terminals, or
in any other storage facility, or on the TEPPCO mainline delivery system, in each case as described
in the Consent and Order of the U.S. Federal Trade Commission applicable to the TPP Partnership
Entities) would violate any applicable governmental order.

     Mr. Duncan will not participate in activities involving Commercial Information related to
Potential Overlapping Assets of the TPP Partnership Entities. All information to be provided to
Mr. Duncan will first be given to the Screening Officer for the TPP Partnership Entities who will
ensure that all Commercial Information relating to the Potential Overlapping Assets has been
removed.

Definitions

     For purposes of these policies and procedures, capitalized terms used but not defined above
shall have the following meanings:

B-2 

 

     “Commercial Information” shall mean information about Commercial and Development Activities or
other competitively sensitive information of any Partnership Entities. Commercial Information
includes information regarding prices, costs, margins, volumes and contractual terms for any
particular customer, any method, tool or computer program used to determine prices for any asset;
all plans or strategies used or adopted to negotiate, target or identify a particular customer for
any asset; all information regarding plans and prospective budgets to expand or build a new
facility; all information regarding a proposal to buy an existing facility; capacity and capacity
utilization of any facility.

     “Commercial and Development Activities” shall mean operations of the Partnership Entities
relating to sales, marketing, or other services provided to customers; operation of or proposed
changes to, such Partnership Entities’ assets, and the plans and strategies dealing with the
business of such Partnership Entities.

     “Independent Director” shall mean an individual directors who meets the independence,
qualification and experience requirements established by the Securities Exchange Act of 1934, as
amended, and the rules and regulations of the Securities and Exchange Commission thereunder and by
The New York Stock Exchange.

     “Potential Overlapping Assets” shall mean (i) with respect to the TPP Partnership Entities,
(a) the TE Products Pipeline (to the extent that such pipeline transports propane), (b) the Val
Verde Gathering System, (c) the Chaparral Pipeline, (d) the Quanah Pipeline and (e) Mont Belvieu
Storage Partners, L.P. terminals, or in any other storage facility, or on the TEPPCO mainline
delivery system (with respect to the assets described in clause (e), as described in the Consent
and Order of the U.S. Federal Trade Commission applicable to the TPP Partnership Entities) and (ii)
with respect to the EPE Partnership Entities and the EPD Partnership Entities, the Lou-Tex NGL
Pipeline, the Dixie Pipeline, the San Juan Gathering System, the Seminole Pipeline System and the
natural gas liquids storage facilities located at Mont Belvieu, Texas.

     “Screening Officer” shall mean any of Roy Monarch, Michael A. Creel, Richard H. Bachmann or
Stephanie C. Hildebrandt, or subsequent persons designated by the Boards of each of EPE GP and EPD
GP, in the case of the EPE Partnership Entities and the EPD Partnership Entities and the DEP
Partnership Entities, and William G. Manias or Patricia A. Totten, or subsequent persons designated
by the Board of TPP GP, in the case of the TPP Partnership Entities.

     “Shared Employees” shall mean EPCO employees providing Shared Services.

     “Shared Services” shall mean services provided by EPCO employees to more than one of the
groups of entities comprising the EPE Partnership Entities, the EPD Partnership Entities, the DEP
Partnership Entities and the TPP Partnership Entities and such services shall include, but not be
limited to, human resources, information technology, financial and accounting services, legal
services and such other services that do not involve Commercial and Development Activities.

B-3

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