Document:

scty-ex44_8.htm

 

Exhibit 4.4

SolarCity Corporation, as Issuer,

-and-

U.S. Bank National Association, as Trustee

 

 

ONE HUNDRED-AND-SEVENTY-SEVENTH SUPPLEMENTAL INDENTURE

Dated as of February 26, 2016

to

INDENTURE

Dated as of October 15, 2014

 

 

    5.25% Solar Bonds, Series 2016/8-5

 

 

 

 

 

 

	
 
	
TABLE OF CONTENTS
	
 

	
 
	
 
	
PAGE

	
ARTICLE 1
DEFINITIONS

	
SECTION 1.01
	
Scope of Supplemental Indenture
	
2

	
SECTION 1.02
	
Definitions
	
2

	
ARTICLE 2
ISSUE, DESCRIPTION, EXECUTION, REGISTRATION AND EXCHANGE OF NOTES

	
 
	
 
	
 

	
SECTION 2.01
	
Title and Terms
	
3

	
SECTION 2.02
	
Company Global Securities
	
3

	
SECTION 2.03
	
Payments
	
4

	
ARTICLE 3
MISCELLANEOUS PROVISIONS

	
 
	
 
	
 

	
SECTION 3.01
	
Trustee Acceptance
	
4

	
SECTION 3.02
	
Governing Law
	
5

	
SECTION 3.03
	
Trust Indenture Act
	
5

	
SECTION 3.04
	
Execution in Counterparts
	
5

	
SECTION 3.05
	
Severability
	
5

	
SECTION 3.06
	
Appointment of Paying Agent and Security Registrar
	
5

	
SECTION 3.07
	
Ratification of Original Indenture
	
5

	
 
	
 
	
 

	
EXHIBIT

	
Exhibit A
	
Form of Note
	
A-1

 

 

i

 

 

ONE HUNDRED-AND-SEVENTY-SEVENTH SUPPLEMENTAL INDENTURE, dated as of February 26, 2016 (the “Supplemental Indenture”), between SolarCity Corporation, a Delaware corporation (hereinafter called the “Company”), having its principal executive office located at 3055 Clearview Way, San Mateo, California, 94402, and U.S. Bank National Association, a national banking association duly organized and existing under the laws of the United States of America, as trustee (in such capacity, the “Trustee”), to the indenture, dated as of October 15, 2014, between the Company and the Trustee (as amended or supplemented from time to time in accordance with the terms thereof, the “Original Indenture”).

RECITALS OF THE COMPANY

WHEREAS, the Company executed and delivered the Original Indenture to the Trustee to provide, among other things, for the issuance, from time to time, of the Company’s Securities, unlimited as to principal amount, in one or more series to be established by the Company under, and authenticated and delivered as provided in, the Original Indenture;

WHEREAS, Section 801(8) of the Original Indenture provides for the Company and the Trustee to enter into a supplemental indenture to the Original Indenture to provide for the issuance of and establish the forms and terms and conditions of Securities as permitted by Sections 201 and 301 of the Original Indenture;

WHEREAS, the Board of Directors and the Offering Committee thereof have duly adopted resolutions authorizing the Company to execute and deliver this Supplemental Indenture;

WHEREAS, pursuant to the terms of the Original Indenture, the Company desires to establish a new series of its Securities to be known as its 5.25% Solar Bonds, Series 2016/8-5 (the “Notes”), the form and substance of such Notes and the terms, provisions and conditions thereof to be set forth as provided in the Original Indenture and this Supplemental Indenture;

WHEREAS, the Form of Note contemplated under the terms of the Notes is to be substantially in the form hereinafter provided; and

WHEREAS, the Company has requested that the Trustee execute and deliver this Supplemental Indenture, and all requirements necessary to make (i) this Supplemental Indenture a valid instrument in accordance with its terms, and (ii) the Notes, when executed by the Company and authenticated and delivered by the Trustee, the valid obligations of the Company, in each case, have been performed, and the execution and delivery of this Supplemental Indenture have been duly authorized in all respects.

NOW, THEREFORE, THIS SUPPLEMENTAL INDENTURE WITNESSETH, for and in consideration of the premises and the purchases of the Notes by the Holders thereof, it is mutually agreed, for the benefit of the Company and the equal and proportionate benefit of all Holders of the Notes, as follows:

 

 

Article 1
DEFINITIONS

SECTION 1.01Scope of Supplemental Indenture

.  The changes, modifications and supplements to the Original Indenture effected by this Supplemental Indenture shall be applicable only with respect to, and shall only govern the terms of (and only the rights of the Holders and the obligations of the Company with respect to), the Notes, which may be issued from time to time, and shall not apply to any other Securities that may be issued under the Original Indenture (or govern the rights of the Holders or the obligations of the Company with respect to any other such Securities) unless a supplemental indenture with respect to such other Securities specifically incorporates such changes, modifications and supplements.  The provisions of this Supplemental Indenture shall supersede any corresponding or conflicting provisions in the Original Indenture.

SECTION 1.02Definitions

.  For all purposes of the Indenture, except as otherwise expressly provided or unless the context otherwise requires:

(i)the terms defined in this Article 1 shall have the meanings assigned to them in this Article 1 and include the plural as well as the singular;

(ii)all words, terms and phrases defined in the Original Indenture (but not otherwise defined herein) shall have the same meanings as in the Original Indenture;

(iii)all other terms used herein that are defined in the Trust Indenture Act, either directly or by reference therein, shall have the meanings assigned to them in the Trust Indenture Act;

(iv)all accounting terms not otherwise defined herein shall have the meanings assigned to them in accordance with generally accepted accounting principles, and, except as otherwise herein expressly provided, the term “generally accepted accounting principles” with respect to any computation required or permitted hereunder shall mean such accounting principles as are generally accepted at the date of this instrument; and

(v)the words “herein,” “hereof” and “hereunder” and other words of similar import refer to this Supplemental Indenture as a whole and not to any particular Article, Section or other subdivision.

“Company” has the meaning set forth in the first paragraph of this Supplemental Indenture.

“Form of Note” shall mean the “Form of Note” attached hereto as Exhibit A.

“Indenture” means the Original Indenture, as originally executed and as supplemented from time to time by one or more indentures supplemental thereto, including this Supplemental Indenture, entered into pursuant to the applicable provisions of the Indenture, including, for all purposes of this instrument and any such supplemental indenture, the provisions of the Trust Indenture Act that are deemed to be a part of and govern the Original Indenture and this Supplemental Indenture.

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“Initial Notes” has the meaning specified in Section 2.03.

“Interest Payment Date” means February 15 and August 15 of each year, beginning on August 15, 2016.

“Issue Date” means, with respect to Notes owned by any Holder, the date upon which such Notes were originally issued to such Holder (or transferor of such Holder), as set forth on the Security Register.

“Note” or “Notes” has the meaning specified in the fourth paragraph of the recitals of this Supplemental Indenture, and shall include any Additional Notes issued pursuant to Section 2.03.

“Noteholder,” “Holder” or “holder” as applied to any Note, or other similar terms (but excluding the term “beneficial holder”), means any Person in whose name at the time a particular Note is registered in the Security Register.

“Original Indenture” has the meaning specified in the first paragraph of this Supplemental Indenture.

“Regular Record Date” for the interest payable on any Interest Payment Date means the fifteenth day prior to such Interest Payment Date (whether or not a Business Day).

“Stated Maturity” means, with respect to the payment of principal on the Notes, February 26, 2021.

“Supplemental Indenture” has the meaning specified in the first paragraph hereof.

Article 2
ISSUE, DESCRIPTION, EXECUTION, REGISTRATION AND EXCHANGE OF NOTES

SECTION 2.01Title and Terms

.  There is hereby established a series of Securities designated the “5.25% Solar Bonds, Series 2016/8-5”.  The aggregate principal amount of the Notes shall not be limited and shall be initially authenticated and delivered from time to time upon delivery to the Trustee of the documents required by Section 303 of the Indenture.  The Notes shall be issued only in fully registered form to each purchaser in the minimum investment amount of $1,000, with no additional limitations on increments that a purchaser may invest once such minimum investment amount has been satisfied by such purchaser.

SECTION 2.02Company Global Securities

.  The Notes initially shall be represented by one or more permanent Company Global Securities.  The Form of Note shall be substantially as set forth in Exhibit A, which is incorporated into and shall be deemed a part of this Supplemental Indenture, with such appropriate insertions, omissions, substitutions and other variations as are required or permitted by the Indenture, and may have such letters, numbers or other marks of identification and such legends or endorsements placed thereon as may be required to comply with the rules of any securities exchange or as may, consistently herewith, be determined to be necessary or appropriate by the Officers of the Company executing such Notes, as evidenced by their execution of the Notes.

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SECTION 2.03Payments 

.  The principal amount of Notes then Outstanding shall be payable at the Stated Maturity.  Interest on the Notes shall accrue at a rate of 5.25% per annum, from and including the Issue Date with respect to such Notes, or from the most recent date on which interest has been paid or duly provided for with respect to such Notes, to, but excluding, the next Interest Payment Date, until the principal thereof is paid or made available for payment.  Interest shall be payable in arrears on each Interest Payment Date, beginning on August 15, 2016, to the Persons in whose name a Note is registered on the Security Register at the Close of Business on the Regular Record Date immediately preceding the applicable Interest Payment Date.  If any Stated Maturity or Maturity of, or any other day on which a payment is due shall be a day which is not a Business Day, then such payment may be made on the next succeeding day that is a Business Day with the same force and effect as if made at the Stated Maturity or Maturity or on any such other payment date, as the case may be, and no interest shall accrue on the amount payable on such date or at such time for the period from and after such Stated Maturity, Maturity or other payment date, as the case may be, to the next succeeding Business Day.  Interest will be computed on the basis of twelve 30-day months and a 360-day year. The amount of interest payable for any period shorter than a full semi-annual interest period will be computed on the basis of the number of days elapsed in a 180-day semi-annual period of six 30-day months.  Up to $5,000,000 aggregate principal amount of Notes will be authenticated on the date of this Supplemental Indenture (the “Initial Notes”).

The Company may, without the consent of the Holders of the Notes, hereafter issue additional Notes (“Additional Notes”) under the Indenture with the same terms and conditions, except for any difference in the issue price, Issue Date and interest accrued prior to the issue date of the Additional Notes, as the Initial Notes, in an unlimited aggregate principal amount.  Any such Additional Notes shall constitute a single series together with the Initial Notes for all purposes hereunder, including, without limitation, for purposes of any waivers, supplements or amendments to the Indenture requiring the approval of Holders of the Notes and any offers to purchase the Notes.  

The Company shall pay the principal of and interest on any Note in immediately available funds to the Persons in whose name such Note is registered in the Security Register, at the office or agency designated by the Company for that purpose.  All payments on the Notes will be made in US. Dollars or in such other coin or currency of the United States of America as of the time of payment is legal tender for the payment of public and private debts. 

Article 3
MISCELLANEOUS PROVISIONS

SECTION 3.01Trustee Acceptance

  The Trustee has accepted the amendment of the Original Indenture effected by this Supplemental Indenture and agrees to execute the trust created by the Original Indenture as hereby amended, but only upon the terms and conditions set forth in the Indenture, including the terms and provisions defining and limiting the liabilities and responsibilities of the Trustee, and without limiting the generality of the foregoing, the Trustee shall not be responsible in any manner whatsoever for or with respect of any of the recitals or statements contained herein, all of which recitals or statements are made solely by the Company, or for or with respect to (a) the validity or sufficiency of this Supplemental Indenture or any of 

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the terms or provisions hereof, (b) the proper authorization hereof by the Company by corporate action or otherwise, and (c) the due execution hereof by the Company.

SECTION 3.02Governing Law

.  This Supplemental Indenture and the Notes shall be governed by, and construed in accordance with, the laws of the State of New York.

SECTION 3.03Trust Indenture Act

.  This Supplemental Indenture will be subject to, and governed by, the provisions of the Trust Indenture Act that are required to be part of this Supplemental Indenture and shall, to the extent applicable, be governed by such provisions.

SECTION 3.04Execution in Counterparts

.  This Supplemental Indenture may be executed in any number of counterparts, each of which shall be an original, but such counterparts shall together constitute but one and the same instrument.

SECTION 3.05Severability

.  In case any provision in this Supplemental Indenture or in the Notes shall be invalid, illegal or unenforceable, then (to the extent permitted by law) the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby.

SECTION 3.06Appointment of Paying Agent and Security Registrar

.  The Company is hereby appointed to act as Paying Agent and Security Registrar subject to and in accordance with the terms and conditions set forth herein and in the Original Indenture and shall have all of the rights, benefits and immunities of a Paying Agent and Security Registrar as set forth herein and therein.  

SECTION 3.07Ratification of Original Indenture

.  The Original Indenture, as supplemented by this Supplemental Indenture, is in all respects ratified and confirmed, and this Supplemental Indenture shall be deemed part of the Original Indenture in the manner and to the extent herein and therein provided.  For the avoidance of doubt, each of the Company and each Holder of the Notes, by its acceptance of such Notes, acknowledges and agrees that all of the rights, privileges, protections, immunities and benefits afforded to the Trustee and the Agents under the Original Indenture are deemed to be incorporated herein, and shall be enforceable by the Trustee and the Agents hereunder, as if set forth herein in full.

U.S. Bank National Association hereby accepts the trusts in this Supplemental Indenture declared and provided, upon the terms and conditions herein above set forth.

[Remainder of the page intentionally left blank]

 

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IN WITNESS WHEREOF, the parties hereto have caused this Supplemental Indenture to be duly executed as of the day and year first above written.

		
	
 

SOLARCITY CORPORATION

	
 
	
 

	
By:
	
/s/ Tanguy Serra

	
 
	
Name: Tanguy Serra

	
 
	
Title: Chief Financial Officer

 

		
	
U.S. BANK NATIONAL ASSOCIATION, as Trustee

	
 
	
 

	
By:
	
/s/ Judith Hyppolite

	
 
	
Name: Judith Hyppolite

	
 
	
Title: Vice President

 

 

 

 

 

Exhibit A

Form of Note

 

 

 

 

NOTE

 

SOLARCITY CORPORATION
    5.25% Solar Bonds, Series 2016/8-5

			
	
 
	
 
	
 

	
No. [  ]
	
 
	
 

 

SolarCity Corporation, a Delaware corporation (herein called the “Company,” which term includes any successor Person under the Indenture referred to on the reverse hereof), for value received hereby promises to pay to each of the Holders listed on Schedule A hereto, or their registered assigns, the principal sum set forth next to such Holder’s name on Schedule A (the aggregate of which principal sums shall not exceed $5,000,000), on February 26, 2021 at the office or agency of the Company maintained for that purpose in accordance with the terms of the Indenture, in such coin or currency of the United States of America as at the time of payment shall be legal tender for the payment of public and private debts, and to pay interest, semiannually, on February 15 and August 15 of each year (each, an “Interest Payment Date”), commencing on the Issue Date set forth set forth next to such Holder’s name on Schedule A, on said principal sum at said office or agency, in like coin or currency, at the rate per annum of 5.25%, from and including the most recent Interest Payment Date in respect of which interest has been paid (or commencing on the Issue Date set forth set forth next to such Holder’s name on Schedule A if no interest has been paid hereon).  If any Stated Maturity or Maturity of, or any other day on which a payment is due shall be a day which is not a Business Day, then such payment may be made on the next succeeding day that is a Business Day with the same force and effect as if made at the Stated Maturity or Maturity or on any such other payment date, as the case may be, and no interest shall accrue on the amount payable on such date or at such time for the period from and after such Stated Maturity, Maturity or other payment date, as the case may be, to the next succeeding Business Day.  Interest will be computed on the basis of twelve 30-day months and a 360-day year. The amount of interest payable for any period shorter than a full semi-annual interest period will be computed on the basis of the number of days elapsed in a 180-day semi-annual period of six 30-day months.

Reference is made to the further provisions of this Note set forth on the reverse hereof.  Such further provisions shall for all purposes have the same effect as though fully set forth at this place.

This Note shall not be valid or become obligatory for any purpose until the certificate of authentication hereon shall have been manually signed by the Trustee or other duly authorized Authenticating Agent under the Indenture.

 

A-1

 

 

IN WITNESS WHEREOF, the Company has caused this Note to be duly executed.

Dated: [  ]

				
	
 
	
 
	
SOLARCITY CORPORATION

	
 
	
 
	
 

	
 
	
 
	
 

	
 
	
 
	
By:
	
 

	
 
	
 
	
 
	
Name: 

	
 
	
 
	
 
	
Title: 

 

 

			
	
ATTEST:
	
 

	
 
	
 

	
 
	
 

	
By
	
 
	
 

	
 
	
Name: 
	
 

	
 
	
Title:  
	
 

 

 

A-2

 

TRUSTEE’S CERTIFICATE OF AUTHENTICATION

This is one of the Notes referred to in the within-mentioned Indenture. 

U.S. BANK NATIONAL ASSOCIATION 
as Trustee

			
	
By:
	
 
	
 

	
 
	
Authorized Signatory 
	
 

 

A-3

 

REVERSE OF NOTE
SOLARCITY CORPORATION
5.25% Solar Bonds, Series 2016/8-5

This note is one of a duly authorized issue of notes of the Company, designated as its “5.25% Solar Bonds, Series 2016/8-5” (herein called the “Notes”), issued under and pursuant to an Indenture, dated as of October 15, 2014 (the “Original Indenture”), between the Company and U.S. Bank National Association, as trustee (in such capacity, the “Trustee”), as supplemented with respect to the Notes by the One Hundred-and-Seventy-Seventh Supplemental Indenture, dated as of February 26, 2016 (the “Supplemental Indenture,” and together with the Original Indenture, the “Indenture”), between the Company, as issuer, paying agent and security registrar (herein called the “ Paying Agent and Security Registrar”), and the Trustee, as trustee, and as the authenticating agent (herein called the “Authenticating Agent”), to which Indenture and all indentures supplemental thereto reference is hereby made for a description of the rights, limitations of rights, obligations, duties and immunities thereunder of the Trustee, Authenticating Agent, Paying Agent, Security Registrar, the Company and the Holders of the Notes.  Capitalized terms used but not otherwise defined in this Note shall have the respective meanings ascribed thereto in the Indenture.

If an Event of Default (other than an Event of Default specified in clauses (4), (5) or (6) of Section 501 of the Indenture) occurs and is continuing with respect to the Notes, then the Trustee, or the Holders of not less than 25% in aggregate principal amount of the Notes may declare the principal of all the Notes, and accrued and unpaid interest, if any, and premium, if any, thereon to be due and payable immediately.  If an Event of Default specified in clauses (4), (5) or (6) of Section 501 occurs, then the principal and accrued and unpaid interest, if any, and premium, if any, on all the Notes shall ipso facto become and be immediately due and payable without any declaration or other act on the part of the Trustee or any Holder of the Notes. 

Subject to the provisions of the Indenture, the Holders of not less than a majority in aggregate principal amount of the Notes at the time Outstanding may, on behalf of the Holders of all of the Notes, waive any past default or Event of Default, subject to exceptions set forth in the Indenture.  Upon any such waiver, said default shall for all purposes of this Note and the Indenture be deemed to have been cured and not to be continuing, but no such waiver shall extend to any subsequent or other default or impair any right consequent thereon.

The Indenture contains provisions permitting the Company and the Trustee, with the consent of the Holders of not less than a majority in aggregate principal amount of the Notes at the time Outstanding, to execute supplemental indentures to modify provisions of the Indenture, subject to exceptions permitting the modification of the Indenture without the consent of any Holder of Notes or requiring the consent of each Holder of a Note affected by such modification all as set forth in the Indenture.

The Notes are issuable in fully registered form, without coupons, in the minimum investment amount of $1,000, with no additional limitations on incremental investments a Holder may make in the Notes once such minimum investment amount has been satisfied by such Holder.  The Notes may be exchanged for a like aggregate principal amount of Notes of any 

A-4

 

other authorized denominations, on the terms and subject to the conditions and limitations set forth in the Indenture.

The Company, the Trustee, Authenticating Agent, Paying Agent and Security Registrar may deem the Persons in whose name this Note shall be registered upon the Security Register to be, and may treat them as, the absolute owners of this Note with respect to the principal sum set forth opposite such Person’s name on Schedule A hereto (whether or not amounts under this Note shall be overdue and notwithstanding any notation of ownership or other writing thereon made by any Person other than the Company or any Security Registrar), for the purpose of receiving payment of or on account of the principal of, and interest on this Note and for all other purposes; and neither the Company or the Trustee nor any Authenticating Agent, Paying Agent or any Security Registrar shall be affected by any notice to the contrary.  All such payments so made to any Holders for the time being, or upon their orders, shall be valid, and, to the extent of the sum or sums so paid, effectual to satisfy and discharge the liability for monies payable upon this Note.

No recourse for the payment of the principal of or interest on this Note, or for any claim based hereon or otherwise in respect hereof, and no recourse under or upon any obligation, covenant or agreement of the Company in the Indenture or any supplemental indenture or in any Note, or because of the creation of any indebtedness represented hereby, shall be had against any incorporator, stockholder, partner, member, manager, employee, agent, officer, director or subsidiary, as such, past, present or future, of the Company or any of the Company’s subsidiaries or of any successor thereto, either directly or through the Company or any of the Company’s subsidiaries or of any successor thereto, whether by virtue of any constitution, statute or rule of law, or by the enforcement of any assessment or penalty or otherwise; it being expressly understood that all such liability is hereby expressly waived and released as a condition of, and as consideration for, the execution of the Indenture and the issue of this Note.

In the case of any conflict between the provisions of this Note and the Indenture, the provisions of the Indenture shall control. The Indenture and this Note shall be governed by, and construed in accordance with, the laws of the State of New York.

A-5

 

Schedule A

 

SOLARCITY CORPORATION
5.25% Solar Bonds, Series 2016/8-5

 

			
	
Name of Holder
	
Principal Amount
	
Issue Date 

	
 
	
 
	
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Aggregate Principal Amount Outstanding:

 

 

 

 

A-6Exhibit 10.21

RETIREMENT AND RELEASE AGREEMENT

This Retirement and Release Agreement (this "Agreement") is by and between Michael A. Creel ("Employee") and Enterprise Products Company, a Texas corporation (the "Company"), on behalf of itself and each of the Released Parties (as defined below).

            For purposes of this Agreement, the term "Company Affiliate" means and includes (individually, collectively or in any combination) (i) the Company, (ii) Enterprise Products Partners L.P., (iii) EPCO Holdings, Inc., (iv) Enterprise Products Holdings LLC, (v) Enterprise Products OLPGP, Inc., (vi) Enterprise Products Operating LLC, (vii)  Dan Duncan LLC, (viii) the respective subsidiaries and affiliates of any of the foregoing entities, (ix) any other entity which is controlled, directly or indirectly, individually, collectively or in any combination, by the Company and/or any of the foregoing entities, (x) any other entity which is controlled, directly or indirectly, individually, collectively or in any combination, by The Estate of Dan L. Duncan, Deceased, Dan L. Duncan's descendants or any trusts for any of their respective benefit, and (xi) any predecessors, subsidiaries, related entities, officers, directors, equity owners, parent entities, agents, attorneys, employees, successors, or assigns of any of the foregoing.  "Company Affiliated Group" means the Company and the Company Affiliates, whether individually, collectively or in any combination, as the context may require.

WITNESSETH

WHEREAS, Employee notified the Company in writing of Employee's intent to retire on the Retirement Date (as defined below) at least 180 days prior to the Retirement Date (or the Company, in its discretion, waived all or part of such notice period); and

WHEREAS, Employee retired from the Company on December 31, 2015 (the "Retirement Date") and upon such retirement ceased to be an employee, consultant or director of the Company  or any member of the Company Affiliated Group; and

WHEREAS, Employee's retirement shall be deemed to have been a "Qualifying Termination" for purposes of the equity-based award agreements by and between the Company and Employee that are set forth on Exhibit A hereto (collectively, the "Incentive Plan Awards"), but only if this Agreement is timely signed by Employee and becomes irrevocable as provided below; and

WHEREAS, Employee and the Company desire, among other things, to (i) clarify Employee's obligations with respect to the Confidential Information (as defined below) acquired by Employee during Employee's employment with the Company Affiliated Group and (ii) terminate all Claims (as defined below) Employee has or may have arising from, based upon or related to Employee's employment with, or Employee's termination of employment from, the Company Affiliated Group.

NOW, THEREFORE, for and in consideration of the mutual covenants and promises hereinafter set forth, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Employee and the Company hereby agree:

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Section 1.                          Vesting of Incentive Plan Awards.  If, and only if, this Agreement is timely executed by Employee and becomes irrevocable as provided below, then, in exchange for the promises and the release of Claims by Employee as provided below, the Company  agrees that Employee's termination of employment on the Retirement Date shall constitute a "Qualifying Termination" for purposes of Employee's vesting in the Incentive Plan Awards; provided, however, with respect to any Incentive Plan Award that is a unit option or unit appreciation right, such Incentive Plan Award shall continue to be exercisable only at such time(s) and in such manner as provided in the grant agreement for such Incentive Plan Award and (ii) nothing in this Agreement shall extend the term of any such unit option or unit appreciation right. Further, nothing in this Agreement shall terminate or modify any "clawback provision" that is provided in the grant agreement for any Incentive Plan Award.

Section 2.                           Employee's Rights to Consideration.  Employee acknowledges and agrees that, unless and until this Agreement becomes irrevocable as provided below, Employee has no rights to receive the consideration set forth in Section 1. Employee further acknowledges and agrees that the consideration Employee receives pursuant to this Agreement is in addition to all other consideration that Employee is or may be entitled to receive pursuant to or based upon Employee's employment, or the termination of such employment, with the Company Affiliated Group.

 

Section 3.                          Termination of Prior Rights.  Employee acknowledges and agrees that except as otherwise expressly provided in this Agreement, this Agreement terminates in full all rights Employee has or may have, contractual or otherwise, relating to or based upon Employee's employment with, or the termination of Employee's employment from,  the Company Affiliated Group.

Section 4.                           Voluntary Termination; Resignations.  Employee acknowledges and agrees that, effective on the Retirement Date, Employee voluntarily terminated Employee's employment with the Company Affiliated Group and resigned from all positions and titles Employee then held with any and all members of the Company Affiliated Group, including, if applicable, as an officer and/or a director thereof.

Section 5.                               Release of Claims.

A.            Release and Waiver:  In exchange for the consideration provided to Employee by the Company pursuant to Section 1 of this Agreement, Employee hereby forever releases all Company Affiliated Group members and all of their respective current and former directors, officers, employees, owners and agents (collectively, the "Released Parties") from any and all claims, demands, causes of actions, liabilities and expenses of any and every kind that may be waived and released by law, including any and all rights with respect to the same, that Employee has or may have based upon, arising from or in any way related to Employee's employment with the Company Affiliated Group or the termination of such employment (collectively, the "Claims"). This release and waiver includes, but is not limited to, all Claims that Employee has or may have under the Age Discrimination in Employment Act, which prohibits age discrimination in employment; Title VII of the Civil Rights Acts of 1964, as amended, which prohibits discrimination in employment based on race, color, national origin, religion or sex 

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(including claims of sexual harassment); 42 U.S.C. §1981, which prohibits race discrimination; claims under the Family and Medical Leave Act; the Federal and Texas Equal Pay Acts, which prohibit paying men and women unequal pay for equal work; the Rehabilitation Act of 1973 and the Americans with Disabilities Act, which prohibit discrimination on the basis of handicap or disability; the Employee Retirement Income Security Act of 1974, as amended ("ERISA"), but excluding any vested benefits or rights Employee has or may have under any employee benefit plan of any member of the Company Affiliated Group that is subject to ERISA; claims for discrimination under the Texas Commission on Human Rights Act as codified in the Texas Labor Code; claims for discrimination or retaliation under the Texas Workers' Compensation Act; or any other federal, state or local laws or regulations prohibiting employment discrimination, retaliation or harassment.  This release and waiver also includes any and all Claims that Employee (i) has or may have for wrongful discharge, whether based on claimed violations of statutes, regulations or public policy, or based on claims in contract or tort, and (ii) has or may have suffered any harm by or through the actions or omissions of a Released Party, including, but not limited to, all negligence claims and/or any other tort or contract claims.

B.            Scope of Release/Non-release of Future Claims based on Subsequent Acts or Omissions:  Employee agrees and acknowledges that Employee has voluntarily entered into this this release and waiver of Claims and that this release and waiver covers all Claims based on any fact, event or omission, whether known or unknown by Employee, that occurred on or before the date of Employee's execution of this Agreement. Employee fully agrees and understands that if any fact, event, act or omission on which Employee's execution of this release and waiver is premised be hereafter found, determined, suspected or claimed to be other than or different from the facts and/or circumstances now believed or understood by Employee to be true or correct, Employee nonetheless expressly accepts and assumes the risk of such possible differences in fact or circumstance and agrees that this release and waiver shall continue to  remain effective, notwithstanding  such difference in any such fact or circumstance.  The Company acknowledges that Employee has not released any Claims that Employee may have under the Age Discrimination in Employment Act that arise after the date this Agreement is executed by Employee.

C.            No Future Lawsuits, Complaints, or Claims:  Employee hereby waives any and all rights Employee has or may have to file any charge or complaint against any Released Party arising out of, based upon or related to Employee's employment with, or termination of employment from, the Company Affiliated Group before any federal, state or local court or any federal, state or local administrative agency, except where the waiver or release of such right is prohibited by applicable law. This Agreement, however, does not prevent Employee from filing a timely charge with the Equal Employment Opportunity Commission (the "EEOC") (or with any other agency with similar provisions or regulations concerning the regulation of releases between private parties) concerning claims of discrimination, including a challenge to the validity of the waiver contained in this Agreement, although Employee hereby waives Employee's right to recover any damages or other relief in any claim or suit brought by or through the EEOC or any other federal, state, or local agency on Employee's behalf. Employee hereby certifies that Employee has no pending workers' compensation claims, or any basis for any such claim, and that this Agreement is not related in any way to any claim for workers' compensation benefits.

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Section 6.                          Effective Date of this Agreement.   Employee agrees and acknowledges that:

 

A.            Receipt of Agreement:  A copy of this Agreement was delivered to Employee by the Company on or before the Retirement Date and by virtue of such delivery, Employee has been advised in writing by the Company that Employee has the right to seek Employee's own legal counsel before signing this Agreement. Employee understands and agrees that this Agreement shall be null and void for all purposes if Employee signs this Agreement prior to the Retirement Date.

 

B.            Acceptance Period:  Employee acknowledges that Employee has been given 21 days beginning immediately after the Retirement Date (the "Acceptance Period") within which to consider the releases and waivers included in this Agreement. Employee further acknowledges that any revisions or changes made to this Agreement do not extend or restart the running of the Acceptance Period. If Employee chooses to sign this Agreement at any time prior to the end of the  Acceptance Period, Employee agrees and acknowledges that Employee signs this Agreement willingly and voluntarily and expressly waives Employee's right to wait the entire 21-day period as provided in the law.

 

C.            Revocation Period:  Employee understands and acknowledges that (i) Employee has seven days after signing this Agreement (the "Revocation Period") to revoke it and (ii) this Agreement will not become effective or enforceable for any purpose unless and until the Revocation Period has expired without a revocation of this Agreement by Employee.  Any notice of revocation of this Agreement is effective only if given by Employee to the Senior Vice President, Human Resources of the Company (at the delivery address of the Company set forth in Section 15 below), in writing on or before 5:00 p.m. (Houston, Texas time) on the seventh day after the date Employee signs this Agreement. If Employee timely executes this Agreement as provided above during the Acceptance Period and does not revoke it within the Revocation Period, Employees agrees and acknowledges that this Agreement shall become irrevocable on the first day following the end of the Revocation Period and shall be deemed effective retroactively as of the Retirement Date.

D.            Failure to Accept:  Employee understands and agrees that if Employee does not sign this Agreement and deliver it to the Company during the Acceptance Period, the Company's proffer of this Agreement is automatically rescinded, and this Agreement shall be null and void for all purposes, effective as of the end of the Acceptance Period or on such earlier date, if any, that Employee informs the Company in writing that Employee has rejected (or, if executed, has timely revoked) this Agreement.

E.            Death:  If Employee dies during the Acceptance Period without having signed this Agreement, or dies in the Revocation Period without having revoked this Agreement, this Agreement shall be deemed executed and irrevocable on Employee's death.

F.           Retirement Unaffected:  Employee understands and acknowledges that Employee's termination of employment with the Company Affiliated Group on the Retirement Date is, and shall remain, effective for all purposes on the Retirement Date, regardless of whether Employee enters into this Agreement.

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Section 7.             Proprietary and Confidential Information.  Employee agrees and acknowledges that to enable Employee to perform Employee's duties with the Company Affiliated Group, Employee has been provided by one or more members of the Company Affiliated Group, and/or acquired information regarding the Company Affiliated Group's, trade secrets and/or proprietary and confidential information related to the Company Affiliated Group's past, present or anticipated business (collectively, "Confidential Information").  Employee agrees and understands that Employee has a continuing legal obligation to take all reasonable steps and precautions to insure that the Company Affiliated Group's Confidential Information is kept secret and confidential for the sole use and benefit of the Company Affiliated Group. Employee agrees to follow the Company's instructions regarding the handling of Confidential Information. Therefore, except as may be required by law, Employee acknowledges that Employee will not, at any time, disclose to others, permit to be disclosed, use, permit to be used, copy or permit to be copied, any Confidential Information acquired during Employee's employment with the Company Affiliated Group unless such Confidential Information has ceased to be confidential other than through an action or inaction of Employee in violation of this Section 7. Employee agrees that, in the event of an actual or threatened breach by Employee of the provisions of this Section 7, the Company shall be entitled to inform all potential or new employers of Employee of the existence of, and the relevant terms and provisions of, this Agreement.

Section 8.           Non-Solicitation and Non-Competition:  As an ancillary agreement to the agreements of Employee regarding Confidential Information contained in Section 7, and to further protect (i) the Confidential Information provided to Employee by the Company Affiliated Group during Employee's employment with the Company Affiliated Group and (ii) the goodwill of the Company Affiliated Group, Employee agrees to the restrictions set forth below in this Section 8.

A.             Non-Solicitation of Employees:  Employee agrees that, during the period beginning on the Retirement Date and ending on the date that is 24 months after the Retirement Date (the "Restriction Termination Date"), Employee will not solicit or induce, either directly or indirectly, any employee of any Company Affiliated Group member to cease employment with the Company Affiliated Group and Employee will not assist (either directly or indirectly) any other person or entity in any such solicitation. Employee and the Company agree that employees of the Company Affiliated Group may respond to open advertisements of employment with a future employer of Employee, but only if such response is without any inducement from Employee. Such voluntary responses by employees of the Company Affiliated Group do not violate this non-solicitation provision.

B.            Non-Solicitation of Customers:  Employee agrees that, during the period beginning on the Retirement Date and ending immediately after the Restriction Termination Date, Employee will not, either directly or indirectly, for personal gain or on behalf of a competitor or any other person, solicit or accept competing business of the same or similar type carried on by any member of the Company Affiliated Group from any Covered Customer (as defined below). Employee shall not engage in any conduct to encourage or cause a Covered Customer to cease doing business or otherwise decrease the level of business the customer does with the Company Affiliated Group. A "Covered Customer" is a customer of any member of the 

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Company Affiliated Group (i) with whom Employee had contact within the 24 months of Employee's employment with the Company Affiliated Group or (ii) for whom Employee had access to the Confidential Information of the Company Affiliated Group about such customer.

C.              Non-Competition: Employee acknowledges that: (a) the business of the Company Affiliated Group is national in scope and its products and services are marketed throughout the United States; (b) the Company Affiliated Group competes with other businesses that are or could be located in any part of the United States; and (c) the provisions of this Section 8 are reasonable and necessary to protect the Confidential Information, business and goodwill of the Company Affiliated Group. Employee hereby expressly acknowledges that the vesting of the Incentive Plan Awards provided in Section 1 is, in part, consideration for Employee's agreement to the restrictions in Section 7 and this Section 8 and that such vesting consideration is reasonably related to the Company's interest in protecting its goodwill. Therefore, Employee agrees that, during the period beginning on the Retirement Date and ending on the Restriction Termination Date, Employee will not, directly or indirectly, anywhere in the United States:

(i)  perform for, render advice to, or otherwise assist any business whose products or activities compete in whole or in part with the products or activities of any member of the Company Affiliated Group (a "Competitor") in any position, job, task, function, or responsibility that is substantially similar to the positions, jobs, tasks, functions, or material responsibilities that Employee performed on behalf of the Company Affiliated Group or any member thereof at any time during the final two years of Employee's employment with the Company Affiliated Group;

(ii)  as an employee, independent contractor or consultant, accept employment with any Competitor relating to such subjects that Confidential Information to which the Employee had access while employed by the Company Affiliated Group would likely assist the Competitor if Employee were to breach Employee's duties of confidentiality and use such Confidential Information on behalf of the Competitor; and

(iii)  invest in, own, manage, operate, finance, control, or participate in the ownership, management, operation, financing, or control of, any Competitor; provided, however, that (i) Employee may purchase or otherwise acquire up to (but not more than) one percent of any class of securities of any Competitor (but without otherwise participating in the activities of such enterprise) if such securities are listed on any national or regional securities exchange or have been registered under Section 12(g) of the Securities Exchange Act of 1934, as amended, and (ii) Employee may serve on the board of directors of a Competitor which is a publicly-traded entity as long as Employee does not use or disclose Confidential Information in performing Employee's duties as a director of such publicly-traded entity.

D.            Reformation:  If any covenant or restriction in this Section 8 is held to be unreasonable, arbitrary, or against public policy, such covenant or restriction will be considered to be divisible with respect to scope, time, and geographic area, and shall be reformed to such lesser scope, time, or geographic area, or all of them, as a court of competent jurisdiction may determine to be reasonable, not arbitrary, and not against public policy, will be effective, binding, and enforceable against Employee.

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E.             Extension of Time:  The period of time applicable to any covenant or restriction in this Section 8 will be extended by the duration of any violation by Employee of such covenant or restriction.

F.             Other Employment:  Employee will, while the covenants and restrictions in this Section 8 are in effect, give notice to the Company, within 10 days after accepting any other employment, of the identity of Employee's employer. Employee acknowledges and agrees that the Company may notify such employer that Employee is bound by this Agreement and, in the Company's sole discretion and/or at the Company's sole election, furnish such employer with a copy of this Agreement or relevant portions hereof.

G.           Reasonableness of Restrictions:  Employee acknowledges that the foregoing covenants and restrictions in this Section 8 are reasonable and appropriate means of protecting the Confidential Information and the goodwill of the Company Affiliated Group, while not unreasonably interfering with the Employee's ability to make a living. Employee agrees that these covenants and restrictions are reasonable and necessary because the activities prohibited by this Section 8 would likely result in the improper use or disclosure of the Company's Confidential Information in breach of Section 7 of this Agreement and harm the goodwill of the Company to the detriment of the Company Affiliated Group.

Section 9.            Amendments.  This Agreement may only be amended in writing signed by Employee and an authorized officer of the Company.

Section 10.        Confidentiality.  Employee agrees that Employee, and any person acting on Employee's behalf, will not, directly or indirectly, speak about, disclose or in any way, shape or form, communicate to anyone, except as permitted in this Section 10, the terms of this Agreement or the consideration received by Employee from the Company. Employee agrees that the above described information may be disclosed only as follows: (i) to the extent as may be required by law to support the filing of Employee's income tax returns; (ii) to the extent as may be compelled by legal process; (iii) to the extent necessary to Employee's legal or financial advisors, but only after such person to whom the disclosure is to be made agrees to maintain the confidentiality of such information and to refrain from making further disclosures or use of such information; (iv) to the extent necessary to enforce or comply with this Agreement; or (v) to the extent necessary to Employee's employment with another employer, Employee may furnish to such employer the portions of Sections 7 and 8 of this Agreement that are relevant to such employment.

Section 11.          Non-disparagement.  Employee agrees that Employee will not publicly disparage, criticize, condemn or impugn the business or personal reputation or character of any Released Party, or any of the actions or omissions which are, have been or may be taken or omitted by any Released Party with respect to or based upon matters, events, facts or circumstances arising or occurring prior to the date of Employee's execution of this Agreement. In response to inquiries by potential employers, Employee may respond that Employee retired. Further inquiries by a potential employer to the Company shall be responded to by the Company with statements of the dates of Employee's employment with the Company Affiliated Group members and Employee's job title. No member of the Company Affiliated Group shall have any obligation to respond to any inquiries from prospective employers of Employee unless they are 

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made in writing and addressed specifically to the Company and in response to such inquiries the Company shall not be obligated to provide any information other than to confirm Employee's dates of employment and job title. The Company shall not make any unfavorable or unflattering statements in public about Employee. The Company agrees that it will not publicly disparage, criticize, condemn or impugn the business or personal reputation or character of Employee.

Section 12.              Cooperation.  Employee agrees to cooperate with the Company Affiliated Group to the extent reasonably requested by the President or Chief Executive Officer of the Company in all matters relating to the winding up of Employee's work pending on the Retirement Date on behalf of the Company Affiliated Group, the orderly transfer of any such pending work and any then or future litigation matters related to Employee's work on behalf of the Company Affiliated Group. The Company hereby agrees to pay Employee's reasonable expenses incurred in connection with performing such cooperation requested by the Company. Employee agrees to immediately notify the Company if Employee is served, or is informed that Employee will be served, with legal process to compel Employee to disclose any information related to Employee's employment with the Company Affiliated Group, unless prohibited to do so by law.

 

Section 13.             Documents.  Employee certifies that Employee has delivered to the Company all correspondence, memoranda, notes, records, data, information, analysis, and other documents, including all copies thereof, whether in electronic or other form, and all other property of the Company Affiliated Group of whatever nature that is related in any manner to the past, present or anticipated business of the Company Affiliated Group.

Section 14.             Enforcement of Agreement.  Should any provision of this Agreement be held to be invalid or wholly or partially unenforceable, such holding shall not invalidate or void the remainder of this Agreement. Any provision of this Agreement held to be invalid or unenforceable shall be revised as is warranted to carry out the intent of the parties as embodied herein to the maximum extent permitted by law as to be valid and enforceable, or if such is not possible, then such provision shall be deemed to have been wholly excluded with the same force and effect as if it had never been included herein.

Section 15.                          Notices.  Any notice, request, demand, waiver or consent required or permitted hereunder must be in writing and must be given (i) by prepaid registered or certified mail, with return receipt requested, addressed as follows or (ii) personally delivered at the following address:

To the Company:

Enterprise Products Company

If by mail:

Post Office Box 4735

Houston, Texas 77210-4735

If by personal delivery:

1100 Louisiana Street, Suite 1000

Houston, Texas 77002-5227

Attn: Senior Vice President, Human Resources

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To Employee:

Michael A. Creel

 

The date of any notice that is mailed, and the date of delivery of such notice to the Company, shall be deemed to be the date of mailing. Each party may change its above address for the purpose of giving notice to the other by giving notice as provided above.

Section 16.                          Choice of Law; Jurisdiction; Waiver of Jury Trial.  The parties hereby agree that (i) except where preempted by applicable federal law, the laws of the State of Texas shall govern this Agreement, without regard to any conflict of laws principles, and (ii) venue shall be proper only in Houston, Harris County, Texas. The parties hereby irrevocably submit to the exclusive jurisdiction of the state and federal courts in Houston, Harris County, Texas and waive the defense of inconvenient forum to the maintenance of any action or proceeding in such venue.  Further, each party hereby knowingly, voluntarily and intentionally irrevocably waives any and all claims or rights that such party (and any successor or assign of such party) may have to any trial by jury on any issue arising out of any litigation or dispute under this Agreement, such party intending to waive and forever relinquish any and all rights under applicable law providing for a right of trial by jury.

Section 17.            Remedies.  The parties agree that, because damages at law for any breach or nonperformance of this Agreement by Employee, while recoverable, will be irreparable and inadequate, this Agreement may be enforced in equity by specific performance, injunction, or otherwise. Should any provisions of this Agreement be held to be invalid, such holdings shall not invalidate or void the remainder of this Agreement. Employee shall be entitled to enforce Employee's rights and the Company's obligations under this Agreement by any and all applicable actions at law or equity. In addition to other remedies available to it, the Company shall be entitled to petition an appropriate court for temporary restraining orders and temporary and permanent injunctions without the necessity of proving actual damages to prevent a breach or contemplate a breach by Employee of any provision of this Agreement since the Company will have no adequate remedy at law. The amount for the bond to be posted if an injunction is sought by the Company shall be $1,000.00. The Company shall also be entitled to recover its costs and attorneys' fees incurred in enforcing this Agreement.

Section 18.                     Entire Agreement.  This Agreement contains all understandings, promises and representations between Employee and the Released Parties pertaining to the subject matters hereof and supersedes and replaces in full all prior and contemporaneous understandings, agreements, promises, representations and warranties, both written and oral, between Employee and the Released Parties with respect to such subject matters.

Section 19.             IRC Section 409A.

A.            Intent:  The parties intend for the payments provided under this Agreement to be exempt, to the maximum extent possible, from Section 409A of the Internal Revenue Code of 

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1986, as amended, and, to the extent not exempt from Section 409A, to comply with Section 409A.

B.            409A Payments:  Notwithstanding any provision of this Agreement to the contrary, if Section 409A is applicable to a payment provided under this Agreement, the parties intend for such payment to be made only upon an event, at a time and in a manner that complies with Section 409A. In this regard, (i) if such payment is in installments, each installment shall be treated as a separate payment, (ii) such payment is to be made only upon or following Employee's "separation from service", as defined under Section 409A, and (iii) if Employee is a "specified employee" for purposes of Section 409A and such payment would subject Employee to additional tax under Section 409A if it were paid prior to first date that is more than six months after Employee's separation from service, then such payment is to be delayed and paid (without interest) to Employee in a lump sum on the first business day that is more than six months after Employee's separation from service (or on any earlier date permitted by Section 409A without Employee incurring  such additional tax thereunder).

Section 20.                          Taxes.

A.            Withholding:  Notwithstanding anything in this Agreement to the contrary, the Company is authorized to withhold from any and all payments made to Employee pursuant to this Agreement all taxes (income, FICA or otherwise) it may be required to withhold therefrom pursuant to any applicable law.

B.            No Company Liability:  Employee hereby acknowledges and agrees that the Company shall not be liable (i) for all or any portion of any taxes, penalties, interest or other expenses that Employee incurs or may incur on account of any payment made to Employee under this Agreement not complying with an applicable law, including, without limitation, Section 409A, or (ii) for any failure of the Company to withhold any tax or other amount required to be withheld therefrom pursuant to an applicable law.

IN WITNESS WHEREOF, THE PARTIES HAVE EXECUTED THIS RETIREMENT AND RELEASE AGREEMENT IN MULTIPLE COPIES, EACH OF WHICH SHALL BE DEEMED AN ORIGINAL, BUT ALL OF WHICH TAKEN TOGETHER SHALL CONSTITUTE ONE AND THE SAME INSTRUMENT, EFFECTIVE FOR ALL PURPOSES AS PROVIDED ABOVE.

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EMPLOYEE:

/s/ Michael A. Creel                                                          Date: January 18, 2016

Michael A. Creel

COMPANY:

Enterprise Products Company

By:            /s/ Gary Smith                                                         Date: January 26, 2016

Name:            Gary Smith                                    

Title:            Senior Vice President – HR             

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EXHIBIT A

to

RETIREMENT AND RELEASE AGREEMENT

Incentive Plan Awards

	 	
Award

	
EPD Plan

	
Grant Number

	
Date Granted

	
 

Remaining Unvested

Award Units

	
1.

	
 Phantom Units

	
LTIP

	
P08-1093

	
2-18-2015

	
120,700

	
2.

	
 Phantom Units

	
LTIP

	
P08-26

	
2-19-2014

	
106,500

	
3.

	
 Restricted Units

	
LTIP

	
R08-1142

	
2-19-2013

	
  72,200

	
4.

	
 Restricted Units

	
LTIP

	
R98-1595

	
2-21-2012

	
  36,000

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