Document:

exv4w19

 

EXHIBIT 4.19

BOOK-ENTRY SECURITY

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
COMPANY (“DTC”) (55 WATER STREET, NEW YORK, NEW YORK 10041) TO THE COMPANY OR ITS AGENT FOR
REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME
OF CEDE & CO. OR SUCH OTHER NAME AS MAY BE REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND
ANY PAYMENT IS MADE TO CEDE & CO. OR SUCH OTHER ENTITY AS MAY BE REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO
ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

TRANSFERS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART, TO
NOMINEES OF DTC OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR’S NOMINEE AND TRANSFERS OF PORTIONS OF
THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS SET
FORTH IN THE INDENTURE REFERRED TO HEREIN.

	 	 	 
	

	 	Principal Amount
	No. E-5
	 	 
	

	 	$350,000,000, which amount may be
	

	 	increased or decreased by the Schedule
	

	 	of Increases and Decreases in Global Security attached hereto.

ENTERPRISE PRODUCTS OPERATING L.P.

6.650% SERIES B SENIOR NOTES DUE 2034

CUSIP 293791 AP 4

     ENTERPRISE PRODUCTS OPERATING L.P., a Delaware limited partnership (the “Company,” which term
includes any successor under the Indenture hereinafter referred to), for value received, hereby
promises to pay to Cede & Co. or its registered assigns, the principal sum of Three Hundred Fifty
Million ($350,000,000) U.S. dollars, or such greater or lesser principal sum as is shown on the
attached Schedule of Increases and Decreases in Global Security, on October 15, 2034 in such coin
and 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 at an annual rate of 6.65% payable on
April 15 and October 15 of each year, to the person in whose name the Security is registered at the
close of business on the record date for such interest, which shall be the preceding April 1 and
October 1 (each, a “Regular Record Date”), respectively, payable commencing on April 15, 2005, with
interest accruing from October 4, 2004, or the most recent date to which interest shall have been
paid.

 

 

     Reference is made to the further provisions of this Security 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.

     The statements in the legends set forth in this Security are an integral part of the terms of
this Security and by acceptance hereof the Holder of this Security agrees to be subject to, and
bound by, the terms and provisions set forth in each such legend.

     This Security is issued in respect of a series of Debt Securities of an initial aggregate of
$350 million in principal amount designated as the 6.650% Series B Senior Notes due 2034 of the
Company and is governed by the Indenture dated as of October 4, 2004 (the “Original Indenture”),
duly executed and delivered by the Company, as issuer, and Enterprise Products Partners L.P., as
parent guarantor (the “Parent Guarantor”), to Wells Fargo Bank, National Association, as trustee
(the “Trustee”), as supplemented by the Fourth Supplemental Indenture dated as of October 4, 2004,
duly executed by the Company, the Parent Guarantor and the Trustee (the “Fourth Supplemental
Indenture”, and together with the Original Indenture, the “Indenture”). The terms of the Indenture
are incorporated herein by reference. This Security shall in all respects be entitled to the same
benefits as definitive Securities under the Indenture.

     If and to the extent any provision of the Indenture limits, qualifies or conflicts with any
other provision of the Indenture that is required to be included in the Indenture or is deemed
applicable to the Indenture by virtue of the provisions of the Trust Indenture Act of 1939, as
amended (the “TIA”), such required provision shall control.

     The Company hereby irrevocably undertakes to the Holder hereof to exchange this Security in
accordance with the terms of the Indenture without charge.

     This Security shall not be valid or become obligatory for any purpose until the Trustee’s
Certificate of Authentication hereon shall have been manually signed by the Trustee under the
Indenture.

 

 

     IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed by its sole
General Partner.

Dated: March 2, 2005

	 	 	 	 	 	 	 
	 	 	ENTERPRISE PRODUCTS OPERATING L.P.
	 
	 	 	 	 	 	 
	 	 	By:	 	Enterprise Products OLPGP, Inc.
	 	 	 	 	its General Partner
	 
	 	 	 	 	 	 
	 	 	By:	 	/s/ Richard H. Bachmann
	 	 	 	 	 
	

	 	 	 	Name:
	 	Richard H. Bachmann
	

	 	 	 	Title:
	 	Executive Vice President

TRUSTEE’S CERTIFICATE OF AUTHENTICATION:

     This is one of the Debt Securities of the series designated herein referred to in the
within-mentioned Indenture.

	 	 	 	 	 
	 	 	WELLS FARGO BANK, NATIONAL ASSOCIATION,
	

	 	 	 	as Trustee
	 
	 	 	 	 
	

	 	By:
	 	/s/ Melissa Scott
	

	 	 	 	 
	

	 	 	 	Authorized Signatory

 

 

REVERSE OF BOOK-ENTRY SECURITY

ENTERPRISE PRODUCTS OPERATING L.P.

6.650% SERIES B SENIOR NOTES DUE 2034

     This Security is one of a duly authorized issue of debentures, notes or other evidences of
indebtedness of the Company (the “Debt Securities”) of the series hereinafter specified, all issued
or to be issued under and pursuant to the Indenture, to which Indenture reference is hereby made
for a description of the rights, limitations of rights, obligations, duties and immunities
thereunder of the Trustee, the Company, the Parent Guarantor and the Holders of the Debt
Securities. The Debt Securities may be issued in one or more series, which different series may be
issued in various aggregate principal amounts, may mature at different times, may bear interest (if
any) at different rates, may be subject to different sinking, purchase or analogous funds (if any)
and may otherwise vary as provided in the Indenture. This Security is one of a series designated
as the 6.650% Series B Senior Notes due 2034 of the Company, in initial aggregate principal amount
of $350 million (the “Securities”).

     1. Interest.

     The Company promises to pay interest on the principal amount of this Security at the rate of
6.65% per annum.

The Company will pay interest semi-annually on April 15 and October 15 of each year (each an
“Interest Payment Date”), commencing April 15, 2005. Interest on the Securities will accrue from
the most recent date to which interest has been paid or, if no interest has been paid on the
Securities, from October 4, 2004. Interest will be computed on the basis of a 360-day year
consisting of twelve 30-day months. The Company shall pay interest (including post-petition
interest in any proceeding under any applicable bankruptcy laws) on overdue installments of
interest (without regard to any applicable grace period) and on overdue principal and premium, if
any, from time to time on demand at the same rate per annum, in each case to the extent lawful.

     2. Method of Payment.

     The Company shall pay interest on the Securities (except Defaulted Interest) to the persons
who are the registered Holders at the close of business on the Regular Record Date immediately
preceding the Interest Payment Date. Any such interest not so punctually paid or duly provided for
(“Defaulted Interest”) may be paid to the persons who are registered Holders at the close of
business on a special record date for the payment of such Defaulted Interest, or in any other
lawful manner not inconsistent with the requirements of any securities exchange on which such
Securities may then be listed if such manner of payment shall be deemed practicable by the Trustee,
as more fully provided in the Indenture. The Company shall pay principal, premium, if any, and
interest in such coin or currency of the United States of America as at the time of payment shall
be legal tender for payment of public and private debts. Payments in respect of a Global Security
(including principal, premium, if any, and interest) will be made by wire transfer of immediately
available funds to the accounts specified by the Depositary. Payments in respect of Securities in
definitive form (including principal, premium, if any, and

 

 

interest) will be made at the office or agency of the Company maintained for such purpose
within The City of New York, which initially will be at the corporate trust office of the Trustee
located at 45 Broadway, 12th Floor, New York, New York 10002, or, at the option of the Company,
payment of interest may be made by check mailed to the Holders on the relevant record date at their
addresses set forth in the Debt Security Register of Holders or at the option of the Holder,
payment of interest on Securities in definitive form will be made by wire transfer of immediately
available funds to any account maintained in the United States, provided such Holder has requested
such method of payment and provided timely wire transfer instructions to the paying agent. The
Holder must surrender this Security to a paying agent to collect payment of principal.

     3. Paying Agent and Registrar.

     Initially, Wells Fargo Bank, National Association will act as paying agent and Registrar. The
Company may change any paying agent or Registrar at any time upon notice to the Trustee and the
Holders. The Company may act as paying agent.

     4. Indenture.

     This Security is one of a duly authorized issue of Debt Securities of the Company issued and
to be issued in one or more series under the Indenture.

     Capitalized terms herein are used as defined in the Indenture unless otherwise defined herein.
The terms of the Securities include those stated in the Original Indenture, those made part of the
Indenture by reference to the TIA, as in effect on the date of the Original Indenture, and those
terms stated in the Fourth Supplemental Indenture. The Securities are subject to all such terms,
and Holders of Securities are referred to the Original Indenture, the Fourth Supplemental Indenture
and the TIA for a statement of them. The Securities of this Series Bre general unsecured
obligations of the Company limited to an initial aggregate principal amount of $350 million;
provided, however, that the authorized aggregate principal amount of such series may be increased
from time to time as provided in the Fourth Supplemental Indenture.

     5. Redemption.

     Following the occurrence of the Special Mandatory Redemption Trigger, the Company shall redeem
the Securities as a whole, upon notice as provided in Section 3.04 of the Original Indenture, at a
redemption price equal to 101% of the principal amount thereof plus accrued and unpaid interest to
the Redemption Date. Notwithstanding the provisions of Section 3.03 of the Original Indenture,
notice of such mandatory redemption shall be given to each Holder within ten days of the date of
the Special Mandatory Redemption Trigger in the manner provided in Section 13.03 of the Original
Indenture, and such notice shall state, in addition to the matters prescribed in Section 3.03 of
the Original Indenture, that the Special Mandatory Redemption Trigger has occurred and that all of
the Notes will be redeemed on the Redemption Date set forth in such notice, which Redemption Date
shall be no earlier than 15 days and no later than 30 days from the date such notice is mailed.

     For purposes of the preceding paragraph, the following definitions are applicable:

     “GulfTerra” means GulfTerra Energy Partners, L.P., a Delaware limited partnership.

 

 

     “Merger Agreement” means the Merger Agreement dated December 15, 2003, among the Parent
Guarantor, Enterprise Products GP, LLC, Enterprise Products Management LLC, GulfTerra and GulfTerra
Energy Company, L.L.C., as amended by Amendment No. 1 thereto dated August 31, 2004.

     “Special Mandatory Redemption Trigger” means the earliest to occur of the following three
events:

     (1) December 31, 2004, if on or before such date the Parent Guarantor has not completed
the acquisition of GulfTerra (the “GulfTerra Acquisition”) in conformity in all material
respects with the terms and upon satisfaction of all material conditions of the Merger
Agreement (after giving effect to any amendment, waiver or modification to any term or
condition, which amendment, waiver or modification does not have a material adverse effect
on Holders of the Notes);

     (2) the Parent Guarantor has abandoned the GulfTerra Acquisition; or

     (3) the Merger Agreement has terminated.

     The Securities are redeemable, at the option of the Company, at any time in whole, or from
time to time in part, at a redemption price (the “Make-Whole Price”) equal to the greater of: (i)
100% of the principal amount of the Securities to be redeemed; or (ii) the sum of the present
values of the remaining scheduled payments of principal and interest (at the rate in effect on the
date of calculation of the redemption price) on the Securities (exclusive of interest accrued to
the Redemption Date) discounted to the Redemption Date on a semi-annual basis (assuming a 360-day
year consisting of twelve 30-day months) at the applicable Treasury Yield plus 30 basis points;
plus, in either case, accrued interest to the Redemption Date.

     The actual Make-Whole Price, calculated as provided above, shall be calculated and certified
to the Trustee and the Company by the Independent Investment Banker. For purposes of determining
the Make-Whole Price, the following definitions are applicable:

     “Treasury Yield” means, with respect to any Redemption Date applicable to the Securities, the
rate per annum equal to the semi-annual equivalent yield to maturity (computed as of the third
Business Day immediately preceding such Redemption Date) of the Comparable Treasury Issue, assuming
a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal
to the applicable Comparable Treasury Price for the Redemption Date.

     “Comparable Treasury Issue” means the United States Treasury security selected by the
Independent Investment Banker as having a maturity comparable to the remaining term of the
Securities that would be utilized, at the time of selection and in accordance with customary
financial practice, in pricing new issues of corporate debt securities of comparable maturity to
the remaining terms of the Securities; provided, however, that if no maturity is within three
months before or after the maturity date for the Securities, yields for the two published
maturities most closely corresponding to such United States Treasury security will be determined
and the treasury rate will be interpolated or extrapolated from those yields on a straight line
basis rounding to the nearest month.

 

 

     “Independent Investment Banker” means either Wachovia Capital Markets, LLC (and its
successors) or Citigroup Global Markets, Inc. (and its successors), or, if neither such firm is
willing and able to select the applicable Comparable Treasury Issue, an independent investment
banking institution of national standing appointed by the Trustee and reasonably acceptable to the
Issuer.

     “Comparable Treasury Price” means, with respect to any Redemption Date, (a) the bid price for
the Comparable Treasury Issue (expressed as a percentage of its principal amount) at 4:00 p.m. on
the third Business Day preceding the Redemption Date, as set forth on “Telerate Page 500” (or such
other page as may replace Telerate Page 500), or (b) if such page (or any successor page) is not
displayed or does not contain such bid prices at such time, the average of the Reference Treasury
Dealer Quotations obtained by the Trustee for the Redemption Date.

     “Reference Treasury Dealer” means (a) Wachovia Capital Markets, LLC (and its successors) and
(b) one other primary U.S. government securities dealer in New York City selected by the
Independent Investment Banker (each, a “Primary Treasury Dealer”); provided, however, that if
either of the foregoing shall cease to be a Primary Treasury Dealer, the Company will substitute
therefor another Primary Treasury Dealer.

     “Reference Treasury Dealer Quotations” means, with respect to each Reference Treasury Dealer
and any Redemption Date for the Securities, an average, as determined by the Trustee, of the bid
and asked prices for the Comparable Treasury Issue for the Securities (expressed in each case as a
percentage of its principal amount) quoted in writing to the Trustee by such Reference Treasury
Dealer at 5:00 p.m., New York City time, on the third Business Day preceding such Redemption Date.

     Except as set forth above, the Securities will not be redeemable prior to their Stated
Maturity and will not be entitled to the benefit of any sinking fund.

     Securities called for redemption become due on the Redemption Date. Notices of optional
redemption will be mailed at least 30 but not more than 60 days before the Redemption Date to each
Holder of the Securities to be redeemed at its registered address, and notices of mandatory
redemption will be mailed at least 15 but not more than 30 days before the Redemption Date to all
Holders at their respective registered addresses. The notice of redemption for the Securities will
state, among other things, the amount of Securities to be redeemed, the Redemption Date, the
redemption price (or the method of calculating such redemption price) and the place(s) that payment
will be made upon presentation and surrender of Securities to be redeemed. Unless the Company
defaults in payment of the redemption price, interest will cease to accrue on any Securities that
have been called for redemption at the Redemption Date. If less than all the Securities are
redeemed at any time, the Trustee will select the Securities to be redeemed on a pro rata basis or
by any other method the Trustee deems fair and appropriate.

     The Securities may be redeemed in part in multiplies of $1,000 only. Any such redemption will
also comply with Article III of the Indenture.

 

 

     6. Denominations; Transfer; Exchange.

     The Securities are to be issued in registered form, without coupons, in denominations of
$1,000 and integral multiples of $1,000 in excess thereof. A Holder may register the transfer of,
or exchange, Securities in accordance with the Indenture. The Registrar may require a Holder,
among other things, to furnish appropriate endorsements and transfer documents and to pay any taxes
and fees required by law or permitted by the Indenture.

     7. Person Deemed Owners.

     The registered Holder of a Security may be treated as the owner of it for all purposes.

     8. Amendment; Supplement; Waiver.

     Subject to certain exceptions, the Indenture may be amended or supplemented, and any existing
Event of Default or compliance with any provision may be waived, with the consent of the Holders of
a majority in principal amount of the Outstanding Debt Securities of each Series Bffected. Without
consent of any Holder of a Security, the parties thereto may amend or supplement the Indenture to,
among other things, cure any ambiguity or omission, to correct any defect or inconsistency, or to
make any other change that does not adversely affect the rights of any Holder of a Security. Any
such consent or waiver by the Holder of this Security (unless revoked as provided in the Indenture)
shall be conclusive and binding upon such Holder and upon all future Holders and owners of this
Security and any Securities which may be issued in exchange or substitution herefor, irrespective
of whether or not any notation thereof is made upon this Security or such other Securities.

     9. Defaults and Remedies.

     Certain events of bankruptcy or insolvency are Events of Default that will result in the
principal amount of the Securities, together with premium, if any, and accrued and unpaid interest
thereon, becoming due and payable immediately upon the occurrence of such Events of Default. If
any other Event of Default with respect to the Securities occurs and is continuing, then in every
such case the Trustee or the Holders of not less than 25% in aggregate principal amount of the
Securities then Outstanding may declare the principal amount of all the Securities, together with
premium, if any, and accrued and unpaid interest thereon, to be due and payable immediately in the
manner and with the effect provided in the Indenture. Notwithstanding the preceding sentence,
however, if at any time after such a declaration of acceleration has been made, the Holders of a
majority in principal amount of the Outstanding Securities, by written notice to the Trustee, may
rescind such declaration and annul its consequences if the rescission would not conflict with any
judgment or decree of a court already rendered and if all Events of Default with respect to the
Securities, other than the nonpayment of the principal, premium, if any, or interest which has
become due solely by such declaration acceleration, shall have been cured or shall have been
waived. No such rescission shall affect any subsequent default or shall impair any right
consequent thereon. Holders of Securities may not enforce the Indenture or the Securities except
as provided in the Indenture. The Trustee may require indemnity or security satisfactory to it
before it enforces the Indenture or the Securities. Subject to certain limitations,

 

 

Holders of a majority in aggregate principal amount of the Securities then outstanding may
direct the Trustee in its exercise of any trust or power.

     10. Registration Rights.

     The Holder of this Security may be entitled to the benefits of the Registration Rights
Agreement (the “Registration Rights Agreement”) dated as of October 4, 2004, by and among the
Company, the Parent Guarantor and the Initial Purchasers named therein. In certain events, the
Company shall be required to pay to each affected Holder additional interest on the Securities, on
the terms and subject to the conditions of the Registration Rights Agreement, and all references to
“interest” herein include any such additional interest unless the context otherwise requires.

     11. Trustee Dealings with Company.

     The Trustee under the Indenture, in its individual or any other capacity, may make loans to,
accept deposits from, and perform services for the Company or its Affiliates or any subsidiary of
the Company’s Affiliates, and may otherwise deal with the Company or its Affiliates as if it were
not the Trustee.

     12. Authentication.

     This Security shall not be valid until the Trustee signs the certificate of authentication on
the other side of this Security.

     13. Abbreviations and Defined Terms.

     Customary abbreviations may be used in the name of a Holder of a Security or an assignee, such
as: TEN COM (tenant in common), TEN ENT (tenants by the entireties), JT TEN (joint tenants with
right of survivorship and not as tenants in common), CUST (Custodian), and U/G/M/A (Uniform Gifts
to Minors Act).

     14. CUSIP Numbers.

     Pursuant to a recommendation promulgated by the Committee on Uniform Note Identification
Procedures, the Company has caused CUSIP numbers to be printed on the Securities as a convenience
to the Holders of the Securities. No representation is made as to the accuracy of such number as
printed on the Securities and reliance may be placed only on the other identification numbers
printed hereon.

     15. Absolute Obligation.

     No reference herein to the Indenture and no provision of this Security or the Indenture shall
alter or impair the obligation of the Company, which is absolute and unconditional, to pay the
principal of, premium, if any, and interest on this Security in the manner, at the respective
times, at the rate and in the coin or currency herein prescribed.

 

 

     16. No Recourse.

     The General Partner and the general partner of the Parent Guarantor and their respective
directors, officers, employees and members, as such, shall have no liability for any obligations of
any Guarantor or the Issuer under the Securities, the Indenture or any Guarantee or for any claim
based on, in respect of, or by reason of, such obligations or their creation. Each Holder by
accepting the Securities waives and releases all such liability. The waiver and release are part
of the consideration for issuance of the Securities.

     17. Governing Law.

     This Security shall be construed in accordance with and governed by the laws of the State of
New York.

     18. Guarantee.

     The Securities are fully and unconditionally guaranteed on an unsecured, unsubordinated basis
by the Parent Guarantor as set forth in Article XIV of the Indenture, as noted in the Notation of
Guarantee to this Security, and under certain circumstances set forth in the Original Indenture one
or more Subsidiaries of the Parent Guarantor may be required to join in such guarantee.

     19. Reliance.

     The Holder, by accepting this Security, acknowledges and affirms that (i) it has purchased the
Security in reliance upon the separateness of Parent Guarantor and the general partner of Parent
Guarantor from each other and from any other Persons, including EPCO, Inc., and (ii) Parent
Guarantor and the general partner of Parent Guarantor have assets and liabilities that are separate
from those of other Persons, including EPCO, Inc.

 

 

NOTATION OF GUARANTEE

     The Parent Guarantor (which term includes any successor Person under the Indenture), has
fully, unconditionally and absolutely guaranteed, to the extent set forth in the Indenture and
subject to the provisions in the Indenture, the due and punctual payment of the principal of, and
premium, if any, and interest on the Securities and all other amounts due and payable under the
Indenture and the Securities by the Company.

     The obligations of the Parent Guarantor to the Holders of Securities and to the Trustee
pursuant to its Guarantee and the Indenture are expressly set forth in Article XIV of the Indenture
and reference is hereby made to the Indenture for the precise terms of the Guarantee.

	 	 	 	 	 	 	 
	 	 	ENTERPRISE PRODUCTS PARTNERS L.P.
	 
	 	 	 	 	 	 
	 	 	By:	 	Enterprise Products GP, LLC,
	 	 	 	 	its General Partner
	 
	 	 	 	 	 	 
	 	 	By:	 	/s/ Richard H. Bachmann
	 	 	 	 	 
	

	 	 	 	Name:

Title:
	 	Richard H. Bachmann

Executive Vice President

 

 

ABBREVIATIONS

     The following abbreviations, when used in the inscription on the face of this instrument,
shall be construed as though they were written out in full according to applicable laws or
regulations:

	 	 	 	 	 	 	 	 	 
	TEN COM

	 	-
	 	as tenants in common
	 	UNIF GIFT MIN ACT -
	 	 
	

	 	 	 	 	 	 	 	(Cust.)

	 	 	 	 	 	 	 	 	 
	TEN ENT

	 	-
	 	as tenants by entireties
	 	Custodian for:
	 	 
	

	 	 	 	 
	 	 	 	(Minor)

	 	 	 	 	 	 	 	 	 
	JT TEN

	 	-
	 	as joint tenants with right of survivorship and not as tenants in common
	 	under Uniform Gifts to
Minors Act of
	 	 
	

	 	 	 	 
	 	 	 	(State)
	

	 	 	 	 	 	 	 	 

Additional abbreviations may also be used though not in the above list.

	 	 	 	 	 
	

	 	 	 	 

ASSIGNMENT

FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s) unto

	 	 	 	 	 
	PLEASE INSERT SOCIAL SECURITY OR OTHER
	 	IDENTIFYING NUMBER OF ASSIGNEE	 
	 
	 	 	 	 
	 	 	 

 

Please print or type name and address including postal zip code of assignee

 

 

the within Security and all rights thereunder, hereby irrevocably constituting and appointing

 

to transfer said Security on the books of the Company, with full power of substitution in the
premises. 

	 	 	 	 	 	 	 
	Dated

	 	 
	 	 	 	 
	

	 	 	 	 	 	Registered Holder               
               
               
      

 

 

SCHEDULE OF INCREASES OR DECREASES

IN GLOBAL SECURITY

The following increases or decreases in this Global Security have been made:

	 	 	 	 	 	 	 	 	 
	
	 	Amount of
	 	Amount of
	 	Principal Amount	 	 
	
	 	Decrease in
	 	Increase in
	 	of this Global
	 	Signature of
	
	 	Principal
	 	Principal Amount of
	 	Security following
	 	authorized officer
	
	 	Amount of this
	 	this
	 	such decrease
	 	of Trustee or
	Date of Exchange
	 	Global Security
	 	Global Security
	 	(or increase)
	 	Depositaryexv4w31

 

EXHIBIT 4.31

AGREEMENT

Dated as of March 4, 2005

By and Among

ENTERPRISE PRODUCTS PARTNERS L.P.,

SHELL US GAS & POWER LLC

And

KAYNE ANDERSON MLP INVESTMENT COMPANY

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	Page
	

	 	ARTICLE I	 	 	 	 
	

	 	REGISTRATION OF REGISTRABLE SECURITIES	 	 	 	 
	 
	 	 	 	 	 	 
	Section 1.1

	 	Registration of Registrable Securities
	 	 	1	 
	Section 1.2

	 	Termination
	 	 	4	 
	 
	 	 	 	 	 	 
	

	 	ARTICLE II	 	 	 	 
	

	 	INDEMNIFICATION	 	 	 	 
	 
	 	 	 	 	 	 
	Section 2.1

	 	Indemnification
	 	 	4	 
	 
	 	 	 	 	 	 
	

	 	ARTICLE III	 	 	 	 
	

	 	MISCELLANEOUS	 	 	 	 
	Section 3.1

	 	Publicity
	 	 	7	 
	Section 3.2

	 	Notices
	 	 	7	 
	Section 3.3

	 	Governing Law
	 	 	8	 
	Section 3.4

	 	Entire Agreement
	 	 	8	 
	Section 3.5

	 	Amendments and Waivers
	 	 	9	 
	Section 3.6

	 	Severability
	 	 	9	 
	Section 3.7

	 	Counterparts
	 	 	9	 
	Section 3.8

	 	Interpretation of Agreement
	 	 	9	 
	Section 3.9

	 	Expenses
	 	 	9	 
	Section 3.10

	 	Attorneys’ Fees
	 	 	9	 
	Section 3.11

	 	Binding Effect
	 	 	9	 
	Section 3.12

	 	Third Parties
	 	 	9	 
	Section 3.13

	 	Incorporation of Exhibit
	 	 	9	 
	Section 3.14

	 	Remedies; Waiver of Punitive Damages
	 	 	10	 
	Section 3.15

	 	Further Assurances
	 	 	10	 
	Section 3.16

	 	Assignment
	 	 	10	 
	Section 3.17

	 	Certain Definitions.
	 	 	10	 

 

 

AGREEMENT

     This Agreement (this “Agreement”) dated as of March 4, 2005 (the “Effective Date”), is by and
among Enterprise Products Partners L.P., a Delaware limited partnership (“Enterprise Partners”),
Shell US Gas & Power LLC, a Delaware limited liability company (“Shell”), and Kayne Anderson MLP
Investment Company, a Maryland corporation (“Kayne Anderson”). Enterprise Partners, Shell and Kayne
Anderson are herein sometimes referred to individually as a “Party” and collectively as the
“Parties”.

W I T N E S S E T H:

     WHEREAS, Enterprise Partners, Shell and Kayne Anderson desire to provide for the registration
of certain Common Units of Enterprise Products, and to take such other actions as set forth herein;

     WHEREAS, certain capitalized and noncapitalized words not otherwise defined herein shall have
the meanings as defined in Section 3.17 hereof.

     NOW, THEREFORE, in consideration of the premises and the mutual covenants and agreements
herein contained, the Parties hereto agree as follows:

ARTICLE I

REGISTRATION OF REGISTRABLE SECURITIES

     Section 1.1 Registration of Registrable Securities.

(a) Subject to the terms and conditions of this Agreement, the Parties hereby agree that Enterprise
Partners shall permit each of Shell and Kayne Anderson to join as a selling unitholder (with
respect to the Registrable Securities owned by each of them on the Effective Date) in a
Registration Statement on Form S-3 (the “Registration Statement”) to be filed by Enterprise
Partners with the United States Securities and Exchange Commission (“Commission”) on or before
March 7, 2005. At the request of Kayne Anderson, Enterprise Partners hereby agrees to file a
prospectus supplement, or post-effective amendment if necessary, to include the additional Option
Units it acquires from Shell.

(b) Kayne Anderson hereby agrees to execute and deliver the lockup letter agreement attached hereto
as Exhibit A.

(c) Enterprise Partners shall use its Best Efforts to cause the Registration Statement to promptly
become and remain effective until the earlier of:

 

 

	 	i.  	with respect to the Registrable Securities owned by Kayne Anderson on
the Effective Date, on the date on which any restrictive legend on all of such
Registrable Securities shall have been removed;
	 
	 	ii.  	with respect to the Registrable Securities owned by Shell on the
Effective Date, on the date on which such Registrable Securities have been disposed
of; and
	 
	 	iii.  	two years from the effective date of the Registration Statement.

Notwithstanding the foregoing, Enterprise Partners, at its election, may cause the Registration
Statement to remain effective for a period of time beyond the time required by the preceding
sentence.

(d) Enterprise Partners may, upon written notice to the Shell and Kayne Anderson, delay the filing
or effectiveness of the Registration Statement as it reasonably deems necessary to comply with
federal or state securities laws;

(e) Enterprise Partners shall furnish, at least two Business Days before filing a Registration
Statement that registers such Registrable Securities, a prospectus relating thereto or any
amendments or supplements relating to such Registration Statement or prospectus, to Shell and Kayne
Anderson, including copies of all such documents proposed to be filed (it being understood that
such two-Business-Day period need not apply to successive drafts of the same document proposed to
be filed so long as such successive drafts are supplied to Shell and Kayne Anderson in advance of
the proposed filing by a period of time that is customary and reasonable under the circumstances);

(f) Enterprise Partners shall prepare and file with the Commission such amendments and supplements
to the Registration Statement and the Prospectus used in connection therewith as may be necessary
to keep the Registration Statement effective at all times for the period required by Section
1.1(c);

(g) Enterprise Partners shall provide a transfer agent and registrar for the Registrable
Securities;

(h) notify in writing Shell and Kayne Anderson promptly of the receipt by Enterprise Partners of
any notification with respect to (i) any stop order issued or threatened to be issued by the
Commission suspending the effectiveness of such Registration Statement or prospectus or any
amendment or supplement thereto or the initiation or threatening of any proceeding for that
purpose, and (ii) the suspension of the qualification of such Registrable Securities for sale in
any jurisdiction or the initiation or threatening of any proceeding for such purposes;

(i) furnish without charge to Shell and Kayne Anderson such number of copies of such Registration
Statement and prospectus in conformity with the requirements of the Securities Act, and such other
documents (including exhibits thereto and documents incorporated by reference therein) as such
Party may reasonably request in order to facilitate the public sale or other disposition of such
Registrable Securities;

 

 

(j) notify in writing Shell and Kayne Anderson on a timely basis at any time when a prospectus
relating to such Registrable Securities is required to be delivered under the Securities Act during
the registration period of the happening of any event as a result of which the prospectus included
in such Registration Statement, as then in effect, includes an untrue statement of a material fact
or omits to state a material fact required to be stated therein or necessary to make the statements
therein not misleading in light of the circumstances then existing and to prepare and furnish to
Shell and Kayne Anderson a reasonable number of copies of a supplement to or an amendment of such
prospectus as may be necessary so that, as thereafter delivered to the offerees and purchasers of
such units, such prospectus shall not include an untrue statement of a material fact or omit to
state a material fact required to be stated therein or necessary to make the statements therein not
misleading in light of the circumstances then existing;

(k) Each of Shell and Kayne Anderson, upon receipt of any notice from Enterprise Partners of any
event of the kind described in Section 1.1(j) hereof, shall forthwith discontinue disposition of
the Registrable Securities pursuant to the Registration Statement covering such Registrable
Securities until Shell’s or Kayne Anderson’s receipt of the copies of the supplemented or amended
prospectus contemplated by Section 1.1(j) hereof, and, if so directed by Enterprise Partners, such
Parties shall deliver to Enterprise Partners all copies, other than permanent file copies then in
such holder’s possession, of the prospectus covering such Registrable Securities at the time of
receipt of such notice.

(l) Shell and Kayne Anderson shall furnish to Enterprise Partners such written information
regarding themselves and their proposed distribution as Enterprise Partners may reasonably request
in writing and as shall be reasonably required in connection with any registration, qualification
or compliance referred to in this Agreement;

(m) All expenses incident to the registration of Registrable Securities hereof, including, without
limitation, all salaries and expenses of Enterprise Partners’ officers and employees performing
legal or accounting duties, the expense of any annual audit or quarterly review, the expense of any
liability insurance, all registration and filing fees, the expense and fees for listing securities
on one or more securities exchanges, the fees and expenses of complying with securities and blue
sky laws, printing expenses, messenger and delivery expenses, fees and expenses of Enterprise
Partners’ counsel and accountants, shall be borne by Enterprise Partners;

(n) To the extent requested by the underwriters for an offering by Enterprise Partners, (i)
neither Shell nor Kayne Anderson shall offer for sale, sell, make any short sale of, grant any
option for the purchase of, or otherwise dispose of, directly or indirectly, any Registrable
Securities without the prior written consent of Enterprise Partners, for a period designated by the
managing underwriter in writing to Shell and Kayne Anderson, which period shall begin not more than
seven days prior to the effectiveness of the Registration Statement pursuant to which such public
offering shall be made (or within seven days prior to the execution of the applicable underwriting
agreement in the case of an offering pursuant to Rule 415) and shall not last more than 60 days, in
the case of Shell, and not more than 30 days, in the case of Kayne Anderson, after the closing of
such public offering or such shorter holdback period to which Enterprise Partners is subject and
(ii) Shell and Kayne Anderson will enter into agreements with the underwriters to the foregoing
effect; provided, however, that the obligations of Kayne Anderson

 

 

under this Section 1.1(n) shall cease upon the earliest to occur of: (A) such time as Kayne
Anderson shall own Registrable Securities having a market value (calculated based on the average
NYSE closing price of Enterprise Partners common units for the twenty trading days immediately
preceding execution of the applicable underwriting agreement) of less than $50 million, (B)
December 29, 2006 or (C) such time as Kayne Anderson shall deliver a notice pursuant to Section 1.2
hereof.

(o) All obligations of Shell and Kayne Anderson to Enterprise Partners under this Agreement shall
be several and not joint; and

(p) The rights, duties and obligations of Shell and Enterprise Partners under the Registration
Rights Agreement dated as of September 17, 1999 shall remain unaffected by this Agreement;
provided, however, that as long as the Registration Statement remains effective, the obligations of
Enterprise Partners to Shell under Section 2 and Section 3 of the Registration Rights Agreement
shall be suspended and inoperable, including but not limited to, the obligations to notify Shell of
the filing of any registration statement and to effect the registration of any Registrable
Securities.

     Section 1.2 Termination. As between Enterprise Partners and Shell, or as between Enterprise
Partners and Kayne Anderson, the rights, duties and obligations set forth in Section 1.1(a) – (n)
shall terminate (i) on the date on which such Registrable Securities of Shell or Kayne Anderson
have been disposed of; or (ii) five business days following an irrevocable written notice by Shell
or Kayne Anderson to Enterprise Partners to file a prospectus supplement, or post-effective
amendment if necessary, to eliminate such Party as a selling unitholder and to remove such Party’s
Registrable Securities from the Registration Statement.

ARTICLE II

INDEMNIFICATION

     Section 2.1 Indemnification

(a) Enterprise Partners shall indemnify and hold harmless, to the fullest extent permitted by
law, Shell or Kayne Anderson, each other Person, if any, who controls Shell or Kayne Anderson
within the meaning of the Securities Act or the Exchange Act, and each of their respective
directors, partners, officers and agents, against any and all losses, claims, damages or
liabilities, joint or several (or actions or threatened actions in respect thereof), to which any
of the foregoing Persons may become subject under the Securities Act or otherwise, insofar as such
losses, claims, damages or liabilities (or actions or threatened actions in respect thereof) arise
out of or are based upon (i) an untrue statement or allegedly untrue statement of a material fact
contained in the registration statement under which such Registrable Securities were registered
under the Securities Act, any preliminary prospectus or final prospectus contained therein or
otherwise filed with the Commission, any amendment or supplement thereto or any document incident
to registration or qualification of any Registrable Securities or (ii) the omission or alleged
omission

 

 

to state therein a material fact required to be stated therein or necessary to make the statements
therein not misleading or, with respect to any prospectus, necessary to make the statements therein
in light of the circumstances under which they were made not misleading. Enterprise Partners shall
reimburse each of Shell or Kayne Anderson and each such controlling Person for any expenses
(including reasonable attorneys’ fees, disbursements and expenses as incurred) reasonably incurred
by any of them in connection with investigating or defending against any such loss, claim, damage,
liability, action or threatened action. Notwithstanding the foregoing provisions of this Section
2.1, Enterprise Partners shall not be liable to any such indemnified Person in any such case to the
extent that any such loss, claim, damage, liability, action or threatened action (including any
reasonable legal or other fees, disbursements and expenses incurred) arises out of or is based upon
an untrue statement or allegedly untrue statement or omission or alleged omission made in said
registration statement, preliminary prospectus, final prospectus, amendment, supplement or document
incident to registration or qualification of any Registrable Securities in reliance upon and in
conformity with written information furnished to Enterprise Partners by or on behalf of Shell or
Kayne Anderson, respectively, specifically for use in the preparation thereof. The foregoing
indemnity agreement is subject to the condition that, insofar as it relates to any untrue
statement, allegedly untrue statement, omission or alleged omission made in any preliminary
prospectus but eliminated or remedied in the final prospectus (filed pursuant to Rule 424 of the
Securities Act), such indemnity agreement shall not inure to the benefit of any underwriter who
participates in the offering or sale of Registrable Securities or any other Person, if any, who
controls such underwriter (within the meaning of the Securities Act or the Exchange Act) from whom
a Person asserting any loss, claim, damage, liability or expense purchased the Registrable
Securities which are the subject thereof, if a copy of such final prospectus had been made
available to such underwriter and such controlling Person and such final prospectus was not
delivered to such Person asserting any loss, claim, damage, liability or expense with or prior to
the written confirmation of the sale of such Registrable Securities to such Person.

(b) Each of Shell and Kayne Anderson shall severally and not jointly indemnify and hold
harmless, in the same manner and to the same extent as set forth in the preceding paragraph (a) of
this Section 2.1, Enterprise Partners, each director of Enterprise Partners, each officer of
Enterprise Partners who shall sign such registration statement and each Person who controls any of
the foregoing Persons (within the meaning of the Securities Act), against any losses, claims,
damages or liabilities, joint or several (or actions or threatened actions in respect thereof), to
which any of the foregoing Persons may become subject under the Securities Act or otherwise,
insofar as such losses, claims, damages or liabilities (or actions or threatened actions in respect
thereof) arise out of or are based upon any statement or omission from such registration statement,
any preliminary prospectus or final prospectus contained therein or otherwise filed with the
Commission, any amendment or supplement thereto or any document incident to registration or
qualification of any Registrable Securities, if such statement or omission was made in reliance
upon and in conformity with written information furnished to Enterprise Partners by Shell or Kayne
Anderson with respect to Shell or Kayne Anderson, respectively, specifically for use in connection
with the preparation of such registration statement, preliminary prospectus, final prospectus,
amendment, supplement or document; provided, however, that the maximum amount of liability in
respect of such indemnification shall be limited, in the case of each seller of Registrable
Securities, to an amount equal to the net proceeds actually received by such seller from the sale
of Registrable Securities effected pursuant to such registration.

 

 

(c) Promptly after receipt by an indemnified party of notice of the commencement of any action
involving a claim referred to in the preceding paragraphs of this Section 2.1, such indemnified
party will, if a claim in respect thereof is to be made against an indemnifying party, give written
notice to the latter of the commencement of such action. In case any such action is brought against
an indemnified party, the indemnifying party will be entitled to participate in and to assume the
defense thereof, jointly with any other indemnifying party similarly notified to the extent that it
may wish, with counsel reasonably satisfactory to such indemnified party, and after notice from the
indemnifying party to such indemnified party of its election so to assume the defense thereof, (i)
the indemnified party shall reasonably cooperate with the indemnifying party and its counsel in the
defense of such claim, and (ii) the indemnifying party shall not be responsible for any legal or
other fees, disbursements and expenses subsequently incurred by the indemnified party in connection
with the defense thereof; provided, however, that if any indemnified party shall have reasonably
concluded that there may be one or more legal or equitable defenses available to such indemnified
party which are additional to or conflict with those available to the indemnifying party, the
indemnifying party shall not have the right to assume the defense of such action on behalf of such
indemnified party and such indemnifying party shall reimburse such indemnified party and any Person
controlling such indemnified party for that portion of the fees, disbursements and expenses of not
more than one counsel retained by the indemnified party in connection with the matters covered by
the indemnity agreement provided in this Section 2.1 provided that no indemnifying party shall, in
connection with any such suit, be liable under this subsection for the fees and expenses of more
than one separate firm for all indemnifi
ed parties. No indemnifying party shall be liable for any
compromise or settlement of any such action effected without its consent, such consent not to be
unreasonably withheld. No indemnifying party, in the defense of any such claim or suit, shall,
except with the consent of each indemnified party which shall not be unreasonably withheld, consent
to any compromise or settlement which does not include as an unconditional term thereof the giving
by the claimant to such indemnified party of a release from all liability in respect of such claim
or suit.

(d) If the indemnification provided for in this Section 2.1 is unavailable to an indemnified party
hereunder with respect to any loss, claim, damage, liability, action or threatened action referred
to herein, then the indemnifying party, in lieu of indemnifying such indemnified party hereunder,
shall contribute to the amounts paid or payable by such indemnified party as a result of such loss,
claim, damage, liability, action or threatened action in such proportion as is appropriate to
reflect the relative fault of the indemnifying party on the one hand and of the indemnified party
on the other in connection with the statements or omissions which resulted in such loss, claim,
damage, liability, action or threatened action as well as any other relevant equitable
considerations. The relative fault of the indemnifying party and of the indemnified party shall be
determined by reference to, among other things, whether any statement or omission, including any
untrue or alleged untrue statement of a material fact or the omission or alleged omission to state
a material fact relates to information supplied by the indemnifying party or by the indemnified
party and the parties’ relative intent, knowledge, access to information and opportunity to correct
or prevent such statement or omission; provided, however, that the maximum amount of liability in
respect of such contribution shall be limited, in the case of each of Shell or Kayne Anderson, to
an amount equal to the net proceeds actually received by such seller from the sale of Registrable
Securities effected pursuant to such registration. The amount paid or payable by a party under this
Section 2.1(d) as a result of the loss, claim, damage,

 

 

liability, action or threatened action referred to above shall be deemed to include any legal or
other fees, disbursements and expenses reasonably incurred by such party in connection with any
investigation or proceeding. The parties hereto agree that it would not be just and equitable if
contributions pursuant to this Section 2.1(d) were to be determined by pro rata allocation or by
any method of allocation which does not take account of the equitable considerations referred to in
the first and second sentences of this Section 2.1(d). No Person guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to
contribution from any Person who was not guilty of such fraudulent misrepresentation.

(e) The provisions of this Section 2.1 shall be in addition to any other liability which any
indemnifying party may have to any indemnified party and shall survive the termination of this
Agreement.

ARTICLE III

MISCELLANEOUS

     Section 3.1 Publicity. The Parties hereto will consult with each other with regard to the terms and
substance of any and all press releases, announcements or other public statements with respect to
the transactions contemplated hereby. The Parties agree further that neither of them will release
any such press release, announcement or other public statement without the prior approval of the
other Party, unless such release is required by law and the Parties cannot reach agreement upon a
mutually acceptable form of release, in which event the Party releasing the information,
announcement or public statement shall not be deemed to be in breach of this Agreement. The Parties
agree further that such approval will not be unreasonably withheld, and they pledge to make a good
faith effort to reach agreement expeditiously on the terms of any such press release, announcement
or other public statement.

     Section 3.2 Notices. Any notice or communication required or permitted hereunder shall be
sufficiently given if in writing and (i) delivered in person or by overnight delivery or courier
service, (ii) sent by facsimile or (iii) deposited in the United States mail, by certified mail
postage prepaid and return receipt requested (provided that any notice given pursuant to clause
(ii) is also confirmed by the means described in clause (i) or (iii)), as follows:

      To Enterprise Partners:

      Enterprise Products Partners L.P.

      2727 North Loop West

      Houston, Texas 770008

      Attention: Chief Legal Officer

      Fax: (713) 880-6570

      To Shell:

      Shell US Gas & Power LLC

      Two Shell Plaza

      777 Walker, 22nd Floor

      Houston, Texas 77002

      Attention: Lee Strebel, Vice President, Portfolio Management

      Fax: 713-265-2574

 

 

     With copies to:

     Shell Oil Company

     910 Louisiana

     Houston, Texas 77002

     Attention: Richard W. Bohan, Senior Counsel

     Fax: 713-241-4855

     To Kayne Anderson:

     Kayne Anderson MLP Investment Company

     1800 Avenue of the Stars, Second Floor

     Los Angeles, CA 90067

     Attention: David Shladovsky

     Fax: 310-284-6490

     With a copy to:

     Kayne Anderson MLP Investment Company

     1100 Louisiana Street, Suite 4550

     Houston, Texas 77002

     Attention: Kevin McCarthy

     Fax: 713-655-7359

     Such notice or other communication shall be deemed given when so delivered personally, or sent
by facsimile transmission, or, if sent by overnight delivery or courier service, the business day
after being sent from within the United States, or if mailed, four days after the date of deposit
in the United States mails.

     Section 3.3 Governing Law. This Agreement and the legal relations between the Parties shall be
governed by and construed in accordance with the internal laws of the State of Texas without taking
into account provisions regarding choice of law, except to the extent certain matters may be
governed by the laws of the State of Delaware, as the jurisdictions of incorporation or
organization of Shell and Enterprise Partners.

     Section 3.4 Entire Agreement. The exhibit referred to in this Agreement is an integral part hereof.
It is understood and agreed that this Agreement, together with such exhibit, contains the entire
agreement between the
Parties regarding the matters which are the subject of this Agreement and supersedes any and all
prior agreements, arrangements or understandings, if any, between the Parties regarding the matters
which are the subject of this Agreement. Further, as between these Parties, no oral understandings,
statements, promises or inducements contrary to the terms of this Agreement exist.

 

 

     Section 3.5 Amendments and Waivers. This Agreement may not be amended except upon the written
consent of each Party hereto. By an instrument in writing, a Party may waive compliance by the
Party owing an obligation to it, provided, however, that such waiver shall not
operate as a waiver of, or estoppel with respect to, any other or subsequent failure. No failure to
exercise and no delay in exercising any right, remedy or power hereunder shall operate as a waiver
thereof, nor shall any single or partial exercise of any right, remedy or power hereunder preclude
any other or further exercise thereof or the exercise of any other right, remedy or power provided
herein or by law or in equity. The waiver by any Party of the time for performance of any act or
condition hereunder does not constitute a waiver of the act or condition itself.

     Section 3.6 Severability. If any provision of this Agreement, or the application thereof to any
Person, place or circumstance, shall be held by a final judgment of a court of competent
jurisdiction to be invalid, unenforceable or void, the remainder of this Agreement and such
provisions as applied to other Persons, places and circumstances shall remain in full force and
effect after the expiration of the time within which the judgment is appealable only if, after
excluding the portion deemed to be unenforceable, the remaining terms shall provide for the
consummation of the transactions contemplated hereby in substantially the same manner as originally
set forth at the later of the date this Agreement was executed or last amended.

     Section 3.7 Counterparts. This Agreement may be executed in multiple counterparts, each of which
shall constitute one and the same instrument.

     Section 3.8 Interpretation of Agreement. The article, section and other headings used in this
Agreement are for reference purposes only and shall not constitute a part hereof or affect the
meaning or interpretation of this Agreement. References herein to the transactions contemplated by
this Agreement or other similar words shall include, without limitation, all of the transactions
contemplated hereunder.

     Section 3.9 Expenses. Except as otherwise provided in this Agreement, whether or not the
transactions contemplated hereby are consummated, all costs and expenses incurred in connection
with the transactions contemplated hereby will be paid by the Party incurring such costs and
expenses.

     Section 3.10 Attorneys’ Fees. If any legal action is brought for the enforcement of this Agreement or because of an alleged
dispute, breach or default in connection with this Agreement, the prevailing Party shall be
entitled to recover reasonable attorneys’ fees and other costs incurred in such action or
proceeding, in addition to any other relief to which it may be entitled.

     Section 3.11 Binding Effect. This Agreement shall be binding upon and shall inure to the benefit of
the Parties hereto and their respective successors and assigns.

     Section 3.12 Third Parties. Each Party intends that this Agreement shall not benefit or create any
right or cause of action or remedy of any nature whatsoever in any Person other than the Parties to
this Agreement.

     Section 3.13 Incorporation of Exhibit. The Exhibit identified in this Agreement is incorporated
herein by reference and made a part hereof.

 

 

     Section 3.14 Remedies; Waiver of Punitive Damages. In the event of any breach of any covenants,
agreements or terms of this Agreement by any Party, the other Party(s) shall be entitled to invoke
any right or remedy allowed at law or in equity, or by statute or otherwise, to enforce the
obligations of the breaching Party; all rights and remedies shall be cumulative and may be
exercised concurrently and whenever and as often as occasion therefor arises; and the exercise of
any remedy shall not preclude the simultaneous or later exercise of any other remedy. Each Party
waives any right to recover punitive, special, exemplary and consequential damages arising in
connection with this Agreement.

     Section 3.15 Further Assurances. At any time or from time to time after the Effective Date,
Enterprise Partners shall, at the reasonable request of Shell or Kayne Anderson, execute and
deliver any further instruments or documents and take all such further action as Shell may
reasonably request to effect this Agreement. At any time or from time to time after the Effective
Date, Shell and Kayne Anderson shall, at the reasonable request of Enterprise Partners, execute and
deliver any further instruments or documents and take all such further action as Enterprise
Partners may reasonably request to consummate and make effective this Agreement.

     Section 3.16 Assignment. No Party may, without the written consent of the other Parties, assign
this Agreement or any rights or proceeds hereunder to any Person other than an Affiliate, and Shell
shall assign this Agreement only to Affiliates that are within the same business group as the
Affiliate of Shell that holds the Shell Units. No assignment shall release any Party from any
liability under this Agreement. If this Agreement is assigned to an Affiliate, then each of the
original Parties hereto that is the direct or indirect assignor thereof and the assignee covenant
and agree that the assignee shall at all times remain an Affiliate of such original party hereto or this Agreement
shall be assigned to another entity that is an Affiliate of such original party hereto.

     Section 3.17 Certain Definitions.

     “Affiliate” means in relation to a Party, (i) its Ultimate Parent Company (or in the
case of Shell, the Ultimate Parent Companies or either of them or their successors) or (ii) any
company (other than the Party itself) which is for the time being directly or indirectly controlled
by the Ultimate Parent Company (or in the case of Shell, the Ultimate Parent Companies, or either
of them), or (iii) in the case of a Party which does not have an Ultimate Parent Company, any
company which is for the time being directly or indirectly controlled by that Party. For the
purposes of this Agreement: (i) a company is directly controlled by another company (or in the case
of Shell, companies) if the latter company beneficially owns more than fifty per cent of the voting
rights attached to the issued share capital of the first mentioned company; and (ii) a company is
indirectly controlled by another company (or in the case of Shell, companies) if a series of
companies can be specified, beginning with that latter company or companies and ending with the
first mentioned company, so related that each company of the series is directly controlled by one
or more of the companies earlier in the series. “Ultimate Parent Company or Companies” means in
relation to Shell, N.V. Koninklijke Nederlandsche Petroleum Maatschappij and The “Shell” Transport
and Trading Company, p.l.c. or either of them or their successors, and in relation to Enterprise,
Enterprise Products Company.

     “Agreement” shall mean this Agreement.

 

 

     “Best Efforts” shall mean reasonable best efforts in accordance with reasonable
commercial practice.

     “Common Units” means the common units of Enterprise Partnership, each representing a
limited partnership interest in the Partnership.

     “Governmental Authority” shall mean any federal, state or local governmental agency
or authority.

     “Person” shall include any individual, partnership, joint venture, corporation, trust
or unincorporated organization, any other business entity and any Governmental Authority, in each
case whether acting in an individual, fiduciary or other capacity.

     “Registrable Securities” shall mean, with respect to Kayne Anderson, up to 4,427,878
Common Units of Enterprise Partners plus such additional Common Units that may be acquired from
Shell pursuant to the Common Unit Purchase Agreement dated as of December 28, 2004 between Shell
and Kayne Anderson (“Option Units”); and with respect to Shell, up to 36,572,122 Common Units of
Enterprise Partners.

[Remainder of Page Intentionally Left Blank]

 

 

     IN WITNESS WHEREOF, the Parties hereto have executed this Agreement as of the day and year
first above written.

	 	 	 	 	 
	 
	 	ENTERPRISE PRODUCTS PARTNERS L.P.
	

	 	By:
	 	Enterprise Products GP, LLC,

Its General Partner
	 
	 	 	 	 
	

	 	By:	 	/s/ Richard H. Bachmann
	

	 	 	 	 
	

	 	 	 	Executive Vice President
	 
	 	 	 	 
	 
	 	SHELL US GAS & POWER LLC
	 
	 	 	 	 
	

	 	By:	 	/s/ Lee B.D. Strebel
	

	 	 	 	 
	

	 	Name:	 	Lee B.D. Strebel
	

	 	 	 	 
	

	 	Title:	 	Vice President
	

	 	 	 	 
	 
	 	 	 	 
	 
	 	KAYNE ANDERSON MLP INVESTMENT COMPANY
	 
	 	 	 	 
	

	 	By:	 	/s/ Kevin S. McCarthy
	

	 	 	 	 
	

	 	Name:	 	Kevin S. McCarthy
	

	 	 	 	 
	

	 	Title:	 	CEO and President
	

	 	 	 	 

 

 

EXHIBIT A

[Letterhead of Kayne Anderson MLP Investment Company]

March 4, 2005

UBS Securities LLC

Citigroup Global Markets Inc.

c/o UBS Securities LLC

299 Park Avenue

New York, New York 10013

c/o Citigroup Global Markets Inc.

388 Greenwich Street

New York, New York 10013

Dear Sirs:

The undersigned understands that you, as representatives (the “Representatives”) of the
several underwriters (the “Underwriters”), have entered into an Underwriting Agreement (the
“Underwriting Agreement”) with Enterprise Products Partners L.P. (the
“Partnership”), Enterprise Products GP, LLC, Enterprise Products OLPGP, Inc., and
Enterprise Products Operating L.P. providing for the purchase by you and such other Underwriters of
common units, each representing a limited partner interest (the “Units”) in the
Partnership, and reoffering by the Underwriters of the Units to the public (the
“Offering”). As used herein, “Common Units” means 4,427,878 common units of the
Partnership, each representing a limited partnership interest in the Partnership plus such
additional common units that the undersigned may acquire from an affiliate of Shell Oil Company
pursuant to the Common Unit Purchase Agreement dated as of December 28, 2004; and “Prospectus”
means the final prospectus supplement of the Partnership related to the Offering, dated February
10, 2005, together with the accompanying base prospectus.

In consideration of the execution of the Underwriting Agreement by the Underwriters, the execution
of the Agreement to be dated on or about March 11, 2005 by and among the Partnership, Shell US Gas
& Power LLC (“Shell”) and Kayne Anderson, and for other good and valuable consideration, the
undersigned hereby irrevocably agrees that, without the prior written consent of the
Representatives on behalf of the Underwriters, the undersigned will not, directly or indirectly,
(1) offer for sale, sell, pledge or otherwise dispose of (or enter into any transaction or device
that is designed to, or could be expected to, result in the disposition by any person at any time
in the future of) any Common Units (including, without limitation, Common Units that may be issued
upon exercise of any option or warrant) or securities convertible into or exchangeable for Common
Units owned by the undersigned on the date of execution of this Lock-up Letter Agreement or on the
date of the completion of the Offering, or (2) enter into any swap or other derivatives transaction
that transfers to another, in whole or in part, any of the economic benefits or risks of ownership
of such Common Units, whether any such transaction described in clause (1) or (2)
above is to be settled by delivery of Common Units or other securities, in cash or otherwise, in
each case for a period of 60 days from the date of the

 

 

Prospectus (February 10, 2005). The foregoing restrictions do not apply to transfers of Common
Units to a custodian acting on behalf of the undersigned or private transfers of Common Units to
Shell or its affiliate.

In furtherance of the foregoing, the Partnership and its Transfer Agent are hereby authorized to
decline to make any transfer of securities if such transfer would constitute a violation or breach
of this Lock-Up Letter Agreement.

The undersigned understands that the Partnership and the Underwriters have proceeded with the
Offering in reliance on this Lock-Up Letter Agreement.

The undersigned understands that the making of the Offering depended on a number of factors,
including market conditions, and that the Offering was made pursuant to the Underwriting Agreement,
the terms of which were subject to negotiation between the Partnership and the Underwriters.

The undersigned hereby represents and warrants that the undersigned has full power and authority to
enter into this Lock-Up Letter Agreement and that, upon request, the undersigned will execute any
additional documents necessary in connection with the enforcement hereof. Any obligations of the
undersigned shall be binding upon the successors and assigns of the undersigned.

	 	 	 	 	 
	 	Yours very truly,

KAYNE ANDERSON MLP INVESTMENT COMPANY

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:

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