Document:

exv10w15

 

Exhibit 10.15

OMNIBUS AGREEMENT

BY AND AMONG

EL PASO PIPELINE PARTNERS, L.P.,

EL PASO PIPELINE GP COMPANY, L.L.C.,

SOUTHERN NATURAL GAS COMPANY,

COLORADO INTERSTATE GAS COMPANY

AND

EL PASO CORPORATION

 

 

Table of Contents

	 	 	 	 	 	 	 
	ARTICLE I

	Definitions

	 
	 	 	 	 	 	 
	1.1

	 	Definitions
	 	 	1	 
	 
	 	 	 	 	 	 
	ARTICLE II

	Indemnification

	 
	 	 	 	 	 	 
	2.1

	 	Environmental Indemnification
	 	 	5	 
	2.2

	 	Additional Indemnification
	 	 	5	 
	2.3

	 	Limitations Regarding Indemnification
	 	 	6	 
	2.4

	 	Indemnification by the Partnership Group
	 	 	7	 
	2.5

	 	Indemnification Procedures
	 	 	7	 
	2.6

	 	Access Rights
	 	 	8	 
	 
	 	 	 	 	 	 
	ARTICLE III

	Reimbursement
Obligations

	 
	 	 	 	 	 	 
	3.1

	 	Reimbursement for Operating and
General and Administrative Expenses
	 	 	9	 
	3.2

	 	Reimbursement of SNG Guarantee of
Elba Island Expansion
	 	 	9	 
	3.3

	 	Reimbursement of SNG Elba Express Expansion
	 	 	9	 
	 
	 	 	 	 	 	 
	ARTICLE IV

	License Agreement

	 
	 	 	 	 	 	 
	4.1

	 	Grant of License
	 	 	9	 
	4.2

	 	Restrictions on Mark
	 	 	9	 
	4.3

	 	Ownership
	 	 	10	 
	4.4

	 	Estoppel
	 	 	10	 
	4.5

	 	Indemnification
	 	 	10	 
	4.6

	 	Remedies and Enforcement
	 	 	10	 
	4.7

	 	In the Event of Termination
	 	 	11	 
	 
	 	 	 	 	 	 
	ARTICLE V

	Miscellaneous

	 
	 	 	 	 	 	 
	5.1

	 	Choice of Law; Submission to Jurisdiction
	 	 	11	 
	5.2

	 	Notice
	 	 	11	 
	5.3

	 	Entire Agreement
	 	 	12	 
	5.4

	 	Termination
	 	 	12	 
	5.5

	 	Effect of Waiver or Consent
	 	 	12	 
	5.6

	 	Amendment or Modification
	 	 	12	 
	5.7

	 	Assignment; Third Party Beneficiaries
	 	 	12	 
	5.8

	 	Counterparts
	 	 	13	 
	5.9

	 	Severability
	 	 	13	 
	5.10

	 	Gender, Parts, Articles and Sections
	 	 	13	 
	5.11

	 	Further Assurances
	 	 	13	 
	5.12

	 	Withholding or Granting of Consent
	 	 	13	 
	5.13

	 	Laws and Regulations
	 	 	13	 
	5.14

	 	Negation of Rights of Limited Partners, Assignees and Third Parties
	 	 	13	 
	5.15

	 	No Recourse Against Officers or Directors
	 	 	13	 

i

 

OMNIBUS AGREEMENT

     THIS OMNIBUS AGREEMENT (“Agreement”) is entered into on, and effective as of, the Closing Date
(as defined herein), and is by and among El Paso Pipeline Partners, L.P., a Delaware limited
partnership (the “MLP”), El Paso Pipeline GP Company, L.L.C., a Delaware limited liability company
(“General Partner”), Southern Natural Gas Company, a Delaware general partnership (“SNG”), Colorado
Interstate Gas Company, a Delaware general partnership (“CIG”) and El Paso Corporation, a Delaware
corporation (“El Paso”). The above-named entities are sometimes referred to in this Agreement each
as a “Party” and collectively as the “Parties.”

R E C I T A L S:

     The Parties desire by their execution of this Agreement to evidence their understanding, as
more fully set forth in this Agreement, with respect to certain indemnification and reimbursement
obligations of the Parties.

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

ARTICLE I

Definitions

     1.1 Definitions.

     (a) Capitalized terms used herein but not defined shall have the meanings given them in the
MLP Agreement.

     (b) As used in this Agreement, the following terms shall have the respective meanings set
forth below:

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

     “Change of Control” means, with respect to any Person (the “Applicable Person”), any of the
following events: (i) any sale, lease, exchange or other transfer (in one transaction or a series
of related transactions) of all or substantially all of the Applicable Person’s assets to any other
Person, unless immediately following such sale, lease, exchange or other transfer such assets are
owned, directly or indirectly, by the Applicable Person; (ii) the dissolution or liquidation of the
Applicable Person; (iii) the consolidation or merger of the Applicable Person with or into another
Person pursuant to a transaction in which the outstanding Voting Securities of the Applicable
Person are changed into or exchanged for cash, securities or other property, other than any such
transaction where (a) the outstanding Voting Securities of the Applicable Person are changed into
or exchanged for Voting Securities of the surviving Person or its parent and (b) the holders of the
Voting Securities of the Applicable Person immediately prior to such transaction own, directly or
indirectly, not less than a majority of the outstanding Voting Securities of the surviving Person
or its parent immediately after such transaction; and (iv) a “person” or “group”

 

 

(within the meaning of Sections 13(d) or 14(d)(2) of the Exchange Act) becomes the “beneficial
owner” (as defined in Rules 13d-3 and 13d-5 under the Exchange Act) of more than 50% of all of the
then outstanding Voting Securities of the Applicable Person, except (a) El Paso and any affiliates
of El Paso and (b) in a merger or consolidation which would not constitute a Change of Control
under clause (iii) above.

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

     “Closing Date” means the date of the closing of the initial public offering of Common Units.

     “Covered Environmental Losses” means all Environmental Losses by reason of or arising out of
any violation, event, circumstance, action, omission or condition which occurred before the Closing
Date.

     “Elba Island LNG Terminal” means a liquefied natural gas receiving and regasification terminal
on Elba Island near Savannah, Georgia.

     “Elba Express” is a pipeline to be constructed primarily in Georgia.

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

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

     “Environment” means (A) the navigable waters, the waters of the contiguous zone, and the ocean
waters of which the natural resources are under the exclusive management authority of the United
States under the Magnuson-Stevens Fishery Conservation and Management Act 16 U.S.C. 1801 et seq.,
and (B) any other surface water, ground water, drinking water supply, land surface or subsurface
strata, or ambient air within the United States or under the jurisdiction of the United States.

     “Environmental Activity” shall mean any investigation, study, assessment, evaluation,
sampling, testing, monitoring, containment, removal, disposal, closure, corrective action,
remediation (regardless of whether active or passive), natural attenuation, restoration,
bioremediation, response, repair, corrective measure, cleanup or abatement that is required or
necessary under any applicable Environmental Law, including, without limitation, institutional or
engineering controls or participation in a governmental voluntary cleanup program to conduct
voluntary investigatory and remedial actions for the clean-up, removal or remediation of Hazardous
Substances that exceed actionable levels established pursuant to Environmental Laws, or
participation in a supplemental environmental project in partial or whole mitigation of a fine or
penalty; provided, however, that Environmental Activity shall not include any remediation or corrective action that exceeds risk-based
cleanup standards in effect as of the Closing Date applicable to or consistent with the current
land use of those properties affected by Releases from the MLP Assets and at non-MLP Asset
locations.

2

 

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

     “Environmental Losses” means all environmental Losses (including, without limitation, costs
and expenses of any Environmental Activity) of any and every kind or character, by reason of or
arising out of (a) any violation or correction of violation of Environmental Laws or (b) any
action, omission, event, condition or circumstance associated with the ownership or operation of
the MLP Assets (including, without limitation, the exposure to or presence of Hazardous Substances
on, under, about or migrating to or from the MLP Assets or the exposure to or Release of Hazardous
Substances arising out of operation of the MLP Assets at non-MLP Asset locations, as well as
natural resource damages due to exposure or Release of Hazardous Substances arising out of
operation of the MLP Assets on, under, about or migrating to or from the MLP Assets and at non-MLP
Asset locations) including, without limitation, (i) the cost and expense of any Environmental
Activities and (ii) the cost and expense for any environmental or toxic tort pre-trial, trial or
appellate legal or litigation support work.

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

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

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

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

3

 

     “Indemnified Party” means the Partnership Group or El Paso, as the case may be, in their
capacity as the party or parties entitled to indemnification in accordance with ARTICLE II.

     “Indemnifying Party” means the Partnership Group or El Paso, as the case may be, in their
capacity as the party or parties from whom indemnification may be required in accordance with
ARTICLE II.

     “Licensee” means, for purposes of ARTICLE IV thereof, the MLP.

     “Licensor” means, for purposes of ARTICLE IV hereof, El Paso.

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

     “Mark” means the service mark and trade name EL PASO PIPELINE PARTNERS.

     “MLP” has the meaning given such term in the introduction to this Agreement.

     “MLP Agreement” means the First Amended and Restated Agreement of Limited Partnership of the
MLP, dated as of the Closing Date, as such agreement is in effect on the Closing Date, to which
reference is hereby made for all purposes of this Agreement. An amendment or modification to the
MLP Agreement subsequent to the Closing Date shall be given effect for the purposes of this
Agreement only if it has received the approval of the Conflicts Committee that would be required,
if any, pursuant to Section 5.6 hereof if such amendment or modification were an amendment or
modification of this Agreement.

     “MLP Assets” means the pipelines, processing plants or related equipment or assets, or
portions thereof, conveyed, contributed or otherwise transferred or intended to be conveyed,
contributed or otherwise transferred to any member of the Partnership Group, or owned by, leased by
or necessary for the operation of the business, properties or assets of any member of the
Partnership Group, as of the Closing Date.

     “Organizational Documents” means certificates of incorporation, by-laws, certificates of
formation, limited liability company operating agreements, certificates of limited partnership or
limited partnership agreements or other formation or governing documents of a particular entity.

     “Partnership Group” means the Partnership, the General Partner, CIG and SNG and their
respective subsidiaries.

     “Partnership Group Member” means any member of the Partnership Group.

     “Party” or “Parties” have the meaning given such terms in the introduction to this Agreement.

4

 

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

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

     “Retained Assets” has the meaning given such term in Section 2.2(c).

     “Services”
is defined in Section 3.1(a).

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

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

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

     “WIC” means Wyoming Interstate Company, Ltd., a Colorado limited partnership.

ARTICLE II

Indemnification

     2.1 Environmental Indemnification. Subject to the provisions of Section 2.3 and Section 2.4, El Paso shall indemnify, defend
and hold harmless the Partnership Group from and against any Covered Environmental Losses actually
incurred by the Partnership Group and by reason of or arising from the MLP Assets; provided,
however, that, for purposes of determining the amount of any Covered Environmental Loss suffered or
incurred by the Partnership Group or any Partnership Indemnitee with respect to CIG or any of its
Subsidiaries or SNG or any of its Subsidiaries, the Partnership’s ownership of only a 10% interest
in each of CIG and SNG shall be taken into account such that any Covered Environmental Loss
suffered or incurred by the Partnership Group or any Partnership Indemnitee with respect to CIG or
any of its Subsidiaries or SNG or any of its Subsidiaries would equal 10% of the total Covered
Environmental Losses of CIG and its Subsidiaries or SNG and its Subsidiaries, as the case may be.

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

          (a) the failure of the Partnership Group to be the owner of valid and indefeasible easement
rights, leasehold and/or fee ownership interests in and to the lands on which are located any MLP
Assets, or to have valid and indefeasible ownership of a 10% general partner interest in each of
CIG and SNG, and such failure renders the Partnership Group liable to a third party or unable to
use or operate the MLP Assets in substantially the same manner that the MLP Assets were used and
operated by the El Paso Entities immediately prior to the Closing
Date as described in the MLP’s Registration Statement on Form S-1, as amended (File No.
333-145835), initially filed with the Securities and Exchange Commission on August 31, 2007;

5

 

          (b) the failure of the Partnership Group to have on the Closing Date any consent or
governmental permit necessary to allow (i) the transfer of any of the MLP Assets, including the 10%
ownership interests in SNG and CIG, to the Partnership Group on the Closing Date or (ii) the
Partnership Group to use or operate the MLP Assets in substantially the same manner that the MLP
Assets were owned and operated by the El Paso Entities immediately prior to the Closing Date;

          (c) any Losses arising from or attributable to any litigation (whether pending as of the
Closing Date or commenced thereafter) concerning title defects, failure to obtain consents or
governmental permits relating to the transfer, use or operation of
the MLP Assets;

          (d) any Losses that may be suffered or incurred in respect of any entity, investment or
business that was owned or operated by WIC, SNG or CIG prior to the Closing Date but which are not
so owned or operated by WIC, SNG or CIG immediately after the Closing Date; and

          (e) all federal, state and local income tax liabilities attributable to the ownership or
operation of the MLP Assets prior to the Closing Date, including (i) any such income tax
liabilities of the Partnership Group that may result from the consummation of the formation
transactions for the Partnership Group occurring on or prior to the Closing Date and (ii) any
income tax liabilities arising under Treasury Regulation Section 1.1502-6 and any similar provision
from state, local or foreign applicable law, by contract, as successor, transferred or otherwise
and which income tax is attributable to having been a member of any consolidated, combined or
unitary group prior to the Closing Date.

     2.3 Limitations Regarding Indemnification.

          (a) The indemnification obligations of El Paso set forth in Section 2.1 shall survive until
the third anniversary of the Closing Date and the indemnification obligations of El Paso set forth
in Section 2.2 shall survive (i) until the third anniversary of the Closing Date in the case of
subsections (a), (b) and (c) and (ii) until sixty (60) days after the expiration of any applicable
statute of limitations in the case of subsections (d) and (e); provided, however, that any such
indemnification obligation shall remain in full force and effect with respect only to any bona fide
claim, for which supporting documentation in reasonable detail is provided, made thereunder
pursuant to Section 2.5 prior to any such expiration and then only for such period as may be
necessary for the resolution thereof. Notwithstanding anything to the contrary herein, the
indemnification obligations of El Paso set forth in Section 2.1 with respect to any individual
property shall terminate on the date either (a) a site closure is received by the applicable
regulatory authority having jurisdiction, including any a statement in writing that “no further
action is required at this time,” or a similar closure notice confirming that no further action is
required, or (b) if the regulatory authority does not issue a “no further action is required at
this time” or similar letter or other form of confirmation that the applicable requirements of
Environmental Laws have been satisfied, then on the date that El Paso has documented that it
is entitled to perform no further action under applicable laws, rules or regulations and applicable
sampling methods.

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          (b) The aggregate liability of El Paso under Section 2.1 shall not exceed $15 million.

          (c) No claims may be made against El Paso for indemnification pursuant to Section 2.1 and
unless the aggregate dollar amount of the Losses suffered or incurred by the Partnership Group
exceed $250,000, after such time El Paso shall be liable for the amount of such claims in excess of
$250,000 subject to the limitations of Section 2.3(b).

          (d) Notwithstanding anything herein to the contrary, in no event shall El Paso have any
indemnification obligations under this Agreement for claims made as a result of changes in
Environmental Laws or Environmental Permits (or interpretations thereof by the applicable
governmental authority) after the Closing Date.

          (e) Notwithstanding anything herein to the contrary, the liability of El Paso for any
indemnification obligations under this Agreement will be subject to reduction for (i) any insurance
proceeds realized by the Partnership Group with respect to the indemnified matter, net of any
premium that becomes due and payable as a result of such claim, (ii) any amounts recovered by the
Partnership Group under contractual indemnities or otherwise from third Persons and (iii) any
amounts included in the tariffs paid by the customers of the affected MLP Asset. The Partnership
Group hereby agrees to use commercially reasonable efforts to realize any applicable insurance
proceeds and amounts recoverable under such contractual indemnities.

          (f) (f) Notwithstanding anything herein to the contrary, in no event shall El Paso have any
indemnification obligations under this Agreement until the aggregate amount of Losses suffered or
incurred by the Partnership Group exceed (i) any amounts reserved or accrued for such Losses on the
pro forma consolidated balance sheet of the Partnership Group (other than CIG and SNG and their
respective Subsidiaries) as of September 30, 2007 or (ii) in the cases of Losses incurred in
respect of CIG or SNG and their respective Subsidiaries, by any amounts reserved or accrued for
such Losses on the unaudited condensed consolidated balance sheet of CIG or SNG as of September 30,
2007.

     2.4 Indemnification by the Partnership Group. In addition to and not in limitation of the indemnification provided under the MLP
Agreement, the Partnership Group (excluding CIG, SNG or any of their respective Subsidiaries) shall
indemnify, defend and hold harmless the El Paso Entities from and against any Losses suffered or
incurred by the El Paso Entities by reason of or arising out of events and conditions associated
with the operation of the MLP Assets (excluding any MLP Assets owned or operated by CIG, SNG or
their respective Subsidiaries) and occurring on or after the Closing Date, unless in any such case
indemnification would not be permitted under the MLP Agreement by reason of one of the provisos
contained in Section 7.7(a) of the MLP Agreement and except to the extent that the Partnership
Group is indemnified with respect to any such Losses pursuant to Section 2.1 or Section 2.2.

     2.5 Indemnification Procedures.

          (a) The Indemnified Party agrees that within thirty (30) days after it becomes aware of facts
giving rise to a claim for indemnification pursuant to this ARTICLE II, it will provide notice
thereof in writing to the Indemnifying Party specifying the nature of and specific

7

 

basis for such
claim; provided, however, that the Indemnified Party shall not submit claims more frequently than
once a calendar quarter (or twice in the case of the last calendar quarter prior to the expiration
of the applicable indemnity coverage under this Agreement). Notwithstanding the foregoing, the
Indemnified Party’s failure to provide notice under this Section 2.5 will not relieve the
Indemnifying Party from liability hereunder with respect to such matter except in the event and
only to the extent that the Indemnifying Party is materially prejudiced by such failure or delay.

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

          (c) The Indemnified Party agrees to cooperate fully with the Indemnifying Party with respect
to all aspects of the defense of any claims covered by the indemnification set forth in Article II,
including, without limitation, the prompt furnishing to the Indemnifying Party of any
correspondence or other notice relating thereto that the Indemnified Party may receive, permitting
the names of the Indemnified Party to be utilized in connection with such defense, the making
available to the Indemnifying Party of any files, records or other information of the Indemnified
Party that the Indemnifying Party considers relevant to such defense and the making available to
the Indemnifying Party of any employees of the Indemnified Party; provided, however, that in
connection therewith the Indemnifying Party agrees to use reasonable efforts to minimize the impact
thereof on the operations of the Indemnified Party and further agrees to maintain the
confidentiality of all files, records and other information furnished by the Indemnified Party
pursuant to this Section 2.5. In no event shall the obligation of the Indemnified Party to
cooperate with the Indemnifying Party as set forth in the immediately preceding sentence be
construed as imposing upon the Indemnified Party an obligation to hire and pay for counsel in
connection with the defense of any claims covered by the indemnification set forth in this ARTICLE
II; provided, however, that the Indemnified Party may, at its own option, cost and expense, hire
and pay for counsel in connection with any such defense. The Indemnifying Party agrees to keep any
such counsel hired by the Indemnified Party reasonably informed as to the status of any such
defense, but the Indemnifying Party shall have the right to retain sole control over such defense.

     2.6 Access Rights. Upon reasonable advance notice, the Partnership Group shall afford to the directors,
officers, employees, accountants, counsel, agents, consultants, auditors and other authorized
representatives of El Paso reasonable access, during normal business hours, to the MLP Assets in
order to conduct any Environmental Activity that El Paso has agreed to perform or is responsible
for performing or to otherwise observe, review or evaluate any matters for which the Partnership
Group may seek indemnification from El Paso pursuant to this Article II;

8

 

provided that any such access shall be conducted in a manner so as not to interfere unreasonably
with the operation of the business of the Partnership Group and El Paso shall indemnify, defend and
hold harmless the Partnership Group from and against any losses of the Partnership Group arising
from personal injury or property damage as a result of the access granted hereby to the directors,
officers, employees, accountants, counsel, agents, consultants, auditors and other authorized
representatives of El Paso.

ARTICLE III

Reimbursement Obligations

     3.1 Reimbursement for Operating and General and Administrative Expenses.

          (a) El Paso hereby agrees to continue to provide, or cause to be provided, the Partnership
Group with general and administrative services, such as legal, accounting, treasury, insurance
administration and claims processing, risk management, health, safety and environmental,
information technology, human resources, credit, payroll, internal audit, taxes and engineering,
that are substantially identical in nature and quality to the services of such type previously
provided by El Paso in connection with its management and operation of the MLP Assets during the
two (2) year period prior to the Closing Date (collectively, the “Services”).

          (b) The Partnership Group hereby agrees to reimburse El Paso for all direct and indirect
expenses incurred in conjunction with the performance of the Services, including expenditures it
incurs or payments it makes on behalf of the Partnership Group in connection with the business and
operations of the Partnership Group, including, but not limited to, (i) salaries of all El Paso
personnel performing services on the Partnership Group’s behalf and the cost of employee benefits
for such personnel, (ii) public company expenses of the MLP, such as K-1 preparation, external
audit, internal audit, transfer agent and registrar, legal, printing, unitholder reports and other
costs and expenses, (iii) general and administrative expenses, (iv) salaries and benefits of
executive management of the General Partner who are employees of El Paso and (v) any costs and
expenses incurred from third parties performing Services or providing equipment, materials, or
other goods, including contractors, suppliers and vendors.

          (c) To the extent El Paso shall have charge or possession of any of the MLP Assets in
connection with the provision of the Services, El Paso shall separately maintain, and not
commingle, the MLP Assets with those of El Paso or any other Person.

     3.2 Reimbursement of SNG Guarantee of Elba Island Expansion. El Paso hereby agrees to reimburse the Partnership Group for its ten percent (10%)
proportionate share of any amounts to be paid by SNG under a guaranty by SNG of the performance by
Southern LNG Inc. (or its successor) of its construction contract with CB&I Constructors, Inc. in
connection with the expansion of the Elba Island LNG terminal
undertaken in October 2007.

     3.3 Reimbursement of SNG Elba Express Expansion. El Paso hereby agrees to reimburse the Partnership Group for its ten percent (10%)
proportionate share of any amounts to be paid by SNG under a guaranty by SNG of the performance by
Southern LNG Inc. of its construction contract with CB&I Constructors, Inc. in connection with the
construction of the Elba Express pipeline expansion expected to begin
in April 2009.

ARTICLE IV

License Agreement

     4.1 Grant of License. Subject to the terms and conditions herein, Licensor hereby grants to Licensee the right and
license to use the Mark solely in connection with the Licensee’s business and the services
performed therewith throughout the world during the term of this Agreement.

     4.2 Restrictions on Mark. In order to ensure the quality of uses under the Mark, and to protect the goodwill of the
Mark, Licensee agrees as follows:

          (a) Licensee will only use the Mark in formats approved by Licensor and only in strict
association with the Licensee’s business and the services performed therewith;

          (b) Prior to publishing any new format, stylization or appearance of the Mark or any
advertising or promotional materials that incorporate the Mark, Licensee shall first provide such
format, stylization, appearance or materials to Licensor for its approval. If Licensor does not
inform Licensee in writing within fourteen (14) days from the date of the receipt of such new
format, stylization, appearance, or materials, that such new format, stylization, appearance, or
materials is unacceptable, then such new format, stylization, appearance, or materials shall be
deemed to be acceptable and approved by Licensor. Licensor may withhold approval of any proposed
changes to the format, stylization, appearance or materials which Licensee proposes to use in
Licensor’s sole discretion; and

9

 

          (c) Licensee shall not use any other trademarks, service marks, trade names or logos in
connection with the Mark without prior written approval from Licensee during the term of this
Agreement or use the Mark or any trademark or service mark confusingly similar to the Mark after
the termination of this Agreement. Licensee will not use the Mark in such a manner so as to impair
the validity or enforceability or in any way disparage or dilute the Mark.

     4.3 Ownership. Licensor shall own all rights, title and interest, including all goodwill relating thereto,
in and to the Mark, and all service mark rights embodied therein shall at all times be solely
vested in Licensor. Licensee have no right, title, interest or claim of ownership in the Mark,
except for the license granted in this Agreement. All use of the Mark shall inure to the benefit of
Licensor. Licensee agrees that it will not attack the title of Licensor in and to the Mark.

     4.4 Estoppel. Nothing in this Agreement shall be construed as conferring by implication, estoppel, or
otherwise upon Licensee (a) any license or other right to the intellectual property of Licensor
other than the license granted herein to the Mark as set forth expressly herein or (b) any license
rights other than those expressly granted herein.

     4.5 Indemnification.

          (a) Licensee shall, to the fullest extent permitted by applicable law, defend, indemnify and
hold harmless the Licensor and its successors and assigns authorized hereunder and any of their
respective officers, directors, employees, agents and representatives, from and against any and all
claims, demands, damages, losses, costs and expenses arising out of or related in any way to this
ARTICLE V to the extent such claims are attributable to Licensee’s failure to comply with its
obligations under this ARTICLE V or Licensee’s negligence or the negligence of
Licensee’s employees, agents, subcontractors or other representatives regarding this ARTICLE V.

          (b) Licensor shall, to the fullest extent permitted by applicable law, defend, indemnify and
hold harmless Licensee and its successors and assigns authorized hereunder and any of their
respective officers, directors, employees, agents and representatives from and against any and all
claims, demands, damages, losses, costs and expenses arising out of or related in any way to this
ARTICLE V to the extent such claims are attributable to (i) Licensor’s failure to comply with its
obligations under this ARTICLE V, (ii) any claim of infringement or ownership asserted by a third
party as to the Mark or (iii) Licensor’s negligence or the negligence of Licensor’s employees,
agents, subcontractors or other representatives regarding this ARTICLE V.

     4.6 Remedies and Enforcement. Licensee acknowledges and agrees that a breach by Licensee of its obligations under this
ARTICLE V would cause irreparable harm to Licensor and that monetary damages would not be adequate
to compensate Licensor. Accordingly, Licensee agrees that Licensor shall be entitled to immediate
equitable relief, including, without limitation, a temporary or permanent injunction, to prevent
any threatened, likely or ongoing violation by such Licensee, without the necessity of posting bond
or other security. Licensor’s right to equitable relief shall be in addition to other rights and
remedies available to Licensor for monetary damages or otherwise.

10

 

     4.7 In the Event of Termination. In the event of termination of this Agreement pursuant to Section 5.4 or otherwise,
Licensee’s right to utilize the Mark licensed under this Agreement shall automatically cease, and
concurrently with such termination of this Agreement, Licensee shall (i) cease all use of the Mark
and shall adopt new trademarks, service marks, and trade names that are not confusingly similar to
the Mark and (ii) no later than ninety (90) days following the termination of this Agreement, the
General Partner shall have caused the MLP to change its legal name so that there is no longer any
reference therein to the name “El Paso” or “El Paso Pipeline” or any variation, derivation or
abbreviation thereof, and in connection therewith, the General Partner shall cause the MLP to make
all necessary filings of certificates with the Secretary of State of the State of Delaware and to
otherwise amend its Organizational Documents by such date.

ARTICLE V

Miscellaneous

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

     5.2 Notice. All notices, requests or consents provided for or permitted to be given pursuant to this
Agreement must be in writing and must be given by depositing same in the United States mail,
addressed to the Person to be notified, postpaid, and registered or certified with return receipt
requested or by delivering such notice in person or by fax to such Party. Notice given by personal
delivery or mail shall be effective upon actual receipt. Notice given by fax shall be effective
upon actual receipt if received during the recipient’s normal business hours, or at the beginning
of the recipient’s next business day after receipt if not received during the recipient’s normal
business hours. All notices to be sent to a Party pursuant to this Agreement shall be sent to or
made at the address set forth below or at such other address as such Party may stipulate to the
other Parties in the manner provided in this Section 5.2.

For notices to the El Paso Entities:

El Paso Corporation

El Paso Building

1001 Louisiana Street

Houston, Texas 77002

Phone: (713) 420-2600

Fax: (713) 420-5043

Attention: Legal Department

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For notices to the Partnership Group:

El Paso Pipeline GP Company, L.L.C.

El Paso Building

1001 Louisiana Street

Houston, Texas 77002

Phone: (713) 420-2600

Fax: (713) 420-5043

Attention: Legal Department

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

     5.4 Termination. This Agreement, other than the provisions set forth in Articles II, IV and V, hereof, shall
terminate upon a Change of Control of the General Partner or the MLP, other than any Change of
Control of the General Partner or the MLP that may be deemed to have occurred pursuant to clause
(iv) of the definition of Change of Control solely as a result of a Change of Control of El Paso.
Notwithstanding any other provision of this Agreement, if the General Partner is removed as general
partner of the MLP under circumstances where Cause does not
exist and Common Units held by the General Partner and its Affiliates are not voted in favor
of such removal, this Agreement, other than provisions set forth in Articles II and IV, may
immediately thereupon be terminated by El Paso.

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

     5.6 Amendment or Modification. This Agreement may be amended or modified from time to time only by the written agreement
of all the Parties; provided, however, that the MLP may not, without the prior approval of the
Conflicts Committee, agree to any amendment or modification of this Agreement that, in the
reasonable discretion of the General Partner, will have an adverse effect on the holders of Common
Units. Each such instrument shall be reduced to writing and shall be designated on its face an
“Amendment” or an “Addendum” to this Agreement.

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

12

 

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

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

     5.10 Gender, Parts, Articles and Sections. Whenever the context requires, the gender of all words used in this Agreement shall include
the masculine, feminine and neuter, and the number of all words shall include the singular and
plural. All references to Article numbers and Section numbers refer to Articles and Sections of
this Agreement.

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

     5.12 Withholding or Granting of Consent. Each Party may, with respect to any consent or approval that it is entitled to grant
pursuant to this Agreement, grant or withhold such consent or approval in its sole and uncontrolled
discretion, with or without cause, and subject to such conditions as it shall deem appropriate.

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

     5.14 Negation of Rights of Limited Partners, Assignees and Third Parties. Except as set forth in Section 5.7, the provisions of this Agreement are enforceable solely
by the Parties, and no limited partner, member, or assignee of El Paso or the MLP or other Person
shall have the right, separate and apart from El Paso or the MLP, to enforce any provision of this
Agreement or to compel any Party to comply with the terms of this Agreement.

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

[Signature page follows]

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

	 	 	 	 	 
	 	EL PASO PIPELINE PARTNERS, L.P.

 	 
	 	By:  	EL PASO PIPELINE GP COMPANY,
 	 
	 	 	L.L.C., its general partner 	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:  	James C. Yardley 	 
	 	 	Title:  	President and Chief Executive
Officer 	 
	 
	 
	 	EL PASO PIPELINE GP COMPANY, L.L.C.

 	 
	 	By:  	 	 
	 	 	Name:  	James C. Yardley 	 
	 	 	Title:  	President and Chief Executive
Officer 	 
	 
	 
	 	EL PASO CORPORATION

 	 
	 	By:  	 	 
	 	 	Name:  	Robert W. Baker 	 
	 	 	Title:  	Executive Vice President and
General Counsel 	 
	 
	 
	 	COLORADO INTERSTATE GAS COMPANY

 	 
	 	By:  	 	 
	 	 	Name:  	James J. Cleary 	 
	 	 	Title:  	President 	 
	 
	 
	 	SOUTHERN NATURAL GAS COMPANY

 	 
	 	By:  	 	 
	 	 	Name:  	James C. Yardley 	 
	 	 	Title:  	Presidentexv10w1

 

	 	 	 	 	 

Exhibit 10.1

INDEMNIFICATION AGREEMENT

     INDEMNIFICATION AGREEMENT (this “Agreement”) dated as of October 18, 2007 by and between
Sucampo Pharmaceuticals, Inc. (the “Company”), a Delaware corporation, and Anthony C. Celeste
(“Indemnitee”):

     WHEREAS, competent persons are reluctant to serve a corporation as a director or in another
capacity unless they are provided with adequate protection through insurance or adequate
indemnification against inordinate risks of claims and actions against them arising out of their
service to and activities on behalf of corporations;

     WHEREAS, the Board of Directors of the Company has determined that the ability to attract and
retain such persons is in the best interests of the Company’s stockholders and that the Company
should act to assure such persons that there will be increased certainty of such protection in the
future; and

     WHEREAS, it is reasonable, prudent and necessary for the Company contractually to obligate
itself to indemnify such persons to the fullest extent permitted by applicable law so that they
will serve or continue to serve the Company free from undue concern that they will not be so
indemnified; and

     WHEREAS, Indemnitee is willing to serve, continue to serve and to take on additional service
for or on behalf of the Company on the condition that Indemnitee be so indemnified;

     NOW, THEREFORE, in consideration of the premises, the mutual agreements herein set forth below
and other good and valuable consideration, the receipt and adequacy of which are hereby
acknowledged, the parties agree as follows:

     1. Definitions. For purposes of this Agreement the following terms shall have the
meanings set forth below:

     (a) “Board” shall mean the Board of Directors of the Company.

     (b) “Change of Control” shall mean any of the following events:

     (i) Unless approved by the affirmative vote of at least two-thirds of those
members of the Board who are in office immediately prior to the event(s) and who are
not employees of the Company:

     (A) the merger or consolidation of the Company with, or the sale of all
or substantially all of the assets of the Company to, any person or entity
or group of associated persons or entities; or

     (B) the acquisition of direct or indirect beneficial ownership in the
aggregate of securities of the Company representing twenty percent (20%) or
more of the total combined voting power of the Company’s then

 

 

issued and outstanding securities by any person or entity, or group of
associated persons or entities acting in concert, not affiliated (within the
meaning of the Securities Act of 1933) with the Company as of the date of
this Agreement; or

     (C) approval by the stockholders of the Company of any plan or proposal
for the liquidation or dissolution of the Company; or

     (ii) A change in the composition of the Board at any time during any
consecutive 24-month period such that the “Continuing Directors” cease for any
reason to constitute at least a seventy percent (70%) majority of the Board. For
purposes of this clause (ii), “Continuing Directors” means those members of the
Board who either:

     (A) were members of the Board at the beginning of such consecutive
24-month period; or

     (B) were elected by, or on the nomination or recommendation of, at
least a two-thirds majority (consisting of at least five directors) of the
then-existing Board.

     (c) “Corporate Status” describes the status of a person who is or was a director,
officer, employee, agent or fiduciary of the Company or of any other corporation,
partnership, joint venture, trust, employee benefit plan or other enterprise which such
person is or was serving at the express written request of the Company.

     (d) “Disinterested Director” means a director of the Company who is not and was not a
party to the Proceeding in respect of which indemnification is sought by Indemnitee.

     (e) “Enterprise” shall mean the Company and any other corporation, partnership, joint
venture, trust, employee benefit plan or other enterprise of which Indemnitee is or was
serving at the express written request of the Company as a director, officer, employee,
agent or fiduciary.

     (f) “Expenses” shall include all reasonable attorneys’ fees, retainers, court costs,
transcript costs, fees of experts, witness fees, travel expenses, duplicating costs,
printing and binding costs, telephone charges, postage, delivery service fees, and all other
disbursements or expenses of the types customarily incurred in connection with prosecuting,
defending, preparing to prosecute or defend, investigating, being or preparing to be a
witness in a Proceeding.

     (g) “Good Faith” shall mean Indemnitee having acted in good faith and in a manner
Indemnitee reasonably believed to be in or not opposed to the best interests of the Company,
and, with respect to any criminal Proceeding, having had no reasonable cause to believe
Indemnitee’s conduct was unlawful.

2

 

     (h) “Independent Counsel” means a law firm, or a member of a law firm, that is
experienced in matters of corporation law and neither presently is, nor in the past five
years has been, retained to represent: (i) the Company or Indemnitee in any matter material
to either such party or (ii) any other party to the Proceeding giving rise to a claim for
indemnification hereunder. Notwithstanding the foregoing, the term “Independent Counsel”
shall not include any person who, under the applicable standards of professional conduct
then prevailing, would have a conflict of interest in representing either the Company or
Indemnitee in an action to determine Indemnitee’s rights under this Agreement.

     (i) “Proceeding” includes any action, suit, arbitration, alternate dispute resolution
mechanism, investigation, administrative hearing or any other actual, threatened or
completed proceeding whether civil, criminal, administrative or investigative, other than
one initiated by Indemnitee. For purposes of the foregoing sentence, a “Proceeding” shall
not be deemed to have been initiated by Indemnitee where Indemnitee seeks pursuant to
Section 9 of this Agreement to enforce Indemnitee’s rights under this Agreement.

     2. Term of Agreement. This Agreement shall continue until and terminate upon the
later of: (a) 10 years after the date that Indemnitee has ceased to serve as a director, officer,
employee, agent or fiduciary of the Company or of any other corporation, partnership, joint
venture, trust, employee benefit plan or other enterprise which Indemnitee served at the express
written request of the Company or (b) the final termination of all pending Proceedings in respect
of which Indemnitee is granted rights of indemnification or advancement of expenses hereunder and
of any proceeding commenced by Indemnitee pursuant to Section 9 of this Agreement relating thereto.
In addition, no legal action shall be brought and no cause of action shall be asserted by or in
the right of the Company against Indemnitee, Indemnitee’s estate, spouse, heirs, executors or
personal or legal representatives after the expiration of five (5) years from the date of accrual
of such cause of action, and any claim or cause of action of the Company shall be extinguished and
deemed released unless asserted by the timely filing of a legal action within such five (5) year
period; PROVIDED, HOWEVER, that if any shorter period of limitations is otherwise applicable to any
such cause of action, such shorter period shall govern.

     3. Services by Indemnitee, Notice of Proceedings.

     (a) Services. Indemnitee agrees to serve as a director of the Company.
Indemnitee may at any time and for any reason resign from such position (subject to any
other contractual obligation or any obligation imposed by operation of law).

     (b) Notice of Proceeding. Indemnitee agrees promptly to notify the Company in
writing upon being served with any summons, citation, subpoena, complaint, indictment,
information or other document relating to any Proceeding or matter that may be subject to
indemnification or advancement of Expenses covered hereunder.

3

 

     4. Indemnification.

     (a) In General. In connection with any Proceeding, the Company shall indemnify
and advance Expenses to Indemnitee as provided in this Agreement and to the fullest extent
permitted by applicable law in effect on the date hereof and to such greater extent as
applicable law may thereafter from time to time permit.

     (b) Proceedings Other Than Proceedings by or in the Right of the Company.
Indemnitee shall be entitled to the rights of indemnification provided in this Section 4(b)
if, by reason of Indemnitee’s Corporate Status, Indemnitee is, or is threatened to be made,
a party to any Proceeding, other than a Proceeding by or in the right of the Company.
Indemnitee shall be indemnified against Expenses, judgments, penalties, fines and amounts
paid in settlements actually and reasonably incurred by Indemnitee or on Indemnitee’s behalf
in connection with such Proceeding or any claim, issue or matter therein, if Indemnitee
acted in Good Faith including without limitation, any and all losses, claims, damages,
expenses and liabilities, joint or several (including any investigation, legal and other
expenses incurred in connection with, and any amount paid in settlement of, any action,
suit, proceeding or any claim asserted) under the Securities Act of 1933, the Securities
Exchange Act of 1934, as amended (the “Exchange Act of 1934”) or other federal or state
statutory law or regulation, at common law or otherwise or which relate directly or
indirectly to the registration, purchase, sale or ownership of any securities of the Company
or to any fiduciary obligation owed with respect thereto or as a direct or indirect result
of any Proceeding or any claim, issue or matter therein made by any stockholder of the
Company against Indemnitee and arising out of or related to any round of financing of the
Company (including but not limited to Proceedings or any claims, issues or matters therein
regarding non-participation, or non-pro rata participation, in such round by such
stockholder), or made by a third party against Indemnitee based on any misstatement or
omission of a material fact by the Company in violation of any duty of disclosure imposed on
the Company by federal or state securities or common laws.

     (c) Proceedings by or in the Right of the Company. Indemnitee shall be
entitled to the rights of indemnification provided in this Section 4(c) if, by reason of
Indemnitee’s Corporate Status, Indemnitee is or is threatened to be made a party to any
Proceeding brought by or in the right of the Company to procure a judgment in its favor.
Indemnitee shall be indemnified against Expenses, judgments, penalties and amounts paid in
settlement, actually and reasonably incurred by Indemnitee or on Indemnitee’s behalf in
connection with such Proceeding if Indemnitee acted in Good Faith. Notwithstanding the
foregoing, no such indemnification shall be made in respect of any claim, issue or matter in
such Proceeding as to which Indemnitee shall have been adjudged to be liable to the Company
if applicable law prohibits such indemnification; provided, however, that, if applicable law
so permits, indemnification shall nevertheless be made by the Company in such event if and
only to the extent that the Court of Chancery of the State of Delaware, or the court in
which such Proceeding shall have been brought or is pending, shall determine.

4

 

     (d) Indemnification of a Party Who is Wholly or Partly Successful.
Notwithstanding any other provision of this Agreement, to the extent that Indemnitee is, by
reason of Indemnitee’s Corporate Status, a party to and is successful, on the merits or
otherwise, in any Proceeding, Indemnitee shall be indemnified to the maximum extent
permitted by law against all Expenses, judgments, penalties, fines and amounts paid in
settlement, actually and reasonably incurred by Indemnitee or on Indemnitee’s behalf in
connection therewith. If Indemnitee is not wholly successful in such Proceeding but is
successful, on the merits or otherwise, as to one or more but less than all claims, issues
or matters in such Proceeding, the Company shall indemnify Indemnitee to the maximum extent
permitted by law, against all Expenses, judgments, penalties, fines and amounts paid in
settlement, actually and reasonably incurred by Indemnitee or on Indemnitee’s behalf in
connection with each successfully resolved claim, issue or matter. For purposes of this
Section 4(d) and without limitation, the termination of any claim, issue or matter in such a
Proceeding by dismissal, with or without prejudice, shall be deemed to be a successful
result as to such claim, issue or matter, so long as there has been no finding (either
adjudicated or pursuant to Section 6) that Indemnitee did not act in Good Faith.

     (e) Indemnification for Expenses of a Witness. Notwithstanding any other
provision of this Agreement, to the extent that Indemnitee is, by reason of Indemnitee’s
Corporate Status, a witness in any Proceeding, Indemnitee shall be indemnified against all
Expenses actually and reasonably incurred by Indemnitee or on Indemnitee’s behalf in
connection therewith.

     (f) Assumption of Defense and Settlement. Notwithstanding any other provision
of this Agreement, with respect to any such Proceeding as to which the Indemnitee gives
notice to the Company of the commencement thereof:

     (1) the Company will be entitled to participate therein at its own expense;

     (2) the Company, jointly with any other indemnifying party similarly notified,
shall be entitled to assume the defense thereof, with counsel satisfactory to the
Indemnitee. If the Company assumes the defense of the Indemnitee, it shall notify
the Indemnitee, and after the Indemnitee receives such notice, the Company shall not
be liable to the Indemnitee under this Agreement for any Expenses incurred by the
Indemnitee after the date such notice was received. The Indemnitee shall be
entitled to employ Indemnitee’s own counsel at Indemnitee’s own expense.
Nevertheless, the Company shall pay for Indemnitee’s own counsel if (1) the Company
agrees to do the same, (2) the Indemnitee shall have reasonably concluded that there
may be a conflict of interest between the Company and the Indemnitee regarding the
defense of such action, or (3) the Company shall not in fact have employed counsel
to assume the defense of the Proceeding. The Company shall not be entitled to
assume the defense of any Proceeding brought by or on behalf of the Company or as to
which the Indemnitee shall have reasonably concluded that there may be a conflict of
interest between the Company and the Indemnitee regarding the defense of such
Proceeding; and

5

 

     (3) the Company shall not be liable to the Indemnitee under this Agreement for
any amounts paid in settlement of any Proceeding unless the Company consents to such
settlement. The Company shall not settle any Proceeding in any manner that would
impose any penalty or limitation on the Indemnitee without the Indemnitee’s written
consent. Neither the Company nor the Indemnitee will unreasonably withhold their
consent to any proposed settlement.

     (g) Contribution.

     (1) Notwithstanding any other provision of this Agreement, if the
indemnification provided for in this Section 4 for any reason is held by a court of
competent jurisdiction to be unavailable to Indemnitee in respect of any losses,
claims, damages, expenses or liabilities referred to therein, then the Company, in
lieu of indemnifying Indemnitee thereunder, shall contribute to the amount paid or
payable by Indemnitee as a result of such losses, claims, damages, expenses or
liabilities

     (A) in such proportion as is appropriate to reflect the relative
benefits received by the Company and Indemnitee; or

     (B) if the allocation provided by clause (A) above is not permitted by
applicable law, in such proportion as is appropriate to reflect not only the
relative benefits referred to in clause (A) above but also the relative
fault of the Company and Indemnitee in connection with the action or
inaction which resulted in such losses, claims, damages, expenses or
liabilities, as well as any other relevant equitable considerations.

     (2) In connection with the registration of the Company’s securities, the
relative benefits received by the Company and Indemnitee shall be deemed to be in
the same respective proportions that the net proceeds from the offering (before
deducting expenses) received by the Company and Indemnitee, in each case as set
forth in the table on the cover page of the applicable prospectus, bear to the
aggregate public offering price of the securities so offered. The relative fault of
the Company and Indemnitee shall be determined by reference to, among other things,
whether the 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
Company or Indemnitee and the parties’ relative intent, knowledge, access to
information and opportunity to correct or prevent such statement or omission. The
Company and Indemnitee agree that it would not be just and equitable if contribution
pursuant to this Section 4(g) were determined by pro rata or per capita allocation
or by any other method of allocation which does not take account of the equitable
considerations referred to in the immediately preceding paragraph.

6

 

     (3) In connection with the registration of the Company’s securities, in no
event shall Indemnitee be required to contribute any amount under this Section 4(g)
in excess of the lesser of:

     (A) that proportion of the total of such losses, claims, damages or
liabilities indemnified against equal to the proportion of the total
securities sold under such registration statement which is being sold by
Indemnitee; or

     (B) the proceeds received by Indemnitee from its sale of securities
under such registration statement.

     (4) Persons found guilty of fraudulent misrepresentation (within the meaning of
Section 11(f) of the Securities Act of 1933) shall only be entitled to contribution
from any person who was found guilty of such fraudulent misrepresentation.

     5. Exceptions

     Any other provision herein to the contrary notwithstanding, the Company shall not be obligated
pursuant to the terms of this Agreement:

     (a) Claims Under Section 16(b). To indemnify Indemnitee for expenses and the
payment of profits arising from the purchase and sale by Indemnitee of securities in
violation of Section 16(b) of the Exchange Act of 1934 or any similar successor statute; or

     (b) Unlawful Indemnification. To indemnify Indemnitee if a final decision by a
court having jurisdiction in the matter shall determine that such indemnification is not
lawful.

     6. Advancement of Expenses. Notwithstanding any provision to the contrary in Section
7, the Company shall advance all reasonable Expenses which, by reason of Indemnitee’s Corporate
Status, were incurred by or on behalf of Indemnitee in connection with any Proceeding, within 20
days after the receipt by the Company of a statement or statements from Indemnitee requesting such
advance or advances, whether prior to or after final disposition of such Proceeding. Such
statement or statements shall reasonably evidence the Expenses incurred by Indemnitee and shall be
preceded or accompanied by an undertaking by or on behalf of Indemnitee to repay any Expenses if it
shall ultimately be determined that Indemnitee is not entitled to be indemnified against such
Expenses. Any advance and undertakings to repay pursuant to this Section 6 shall be unsecured and
interest free.

     7. Procedures for Determination of Entitlement to Indemnification.

     (a) Initial Request. To obtain indemnification under this Agreement,
Indemnitee shall submit to the Company a written request, including therein or therewith
such documentation and information as is reasonably available to Indemnitee and is
reasonably necessary to determine whether and to what extent Indemnitee is entitled to

7

 

indemnification. The Secretary of the Company shall promptly advise the Board in
writing that Indemnitee has requested indemnification.

     (b) Method of Determination. A determination (if required by applicable law)
with respect to Indemnitee’s entitlement to indemnification shall be made as follows:

     (1) if a Change in Control has occurred, unless Indemnitee shall request in
writing that such determination be made in accordance with clause (2) of this
Section 7(b), the determination shall be made by Independent Counsel in a written
opinion to the Board, a copy of which shall be delivered to Indemnitee;

     (2) if a Change of Control has not occurred, the determination shall be made by
the Board by a majority vote of Disinterested Directors, even though less than a
quorum. In the event that there are no Disinterested Directors or if such
Disinterested Directors so direct, the determination shall be made by Independent
Counsel in a written opinion to the Board, a copy of which shall be delivered to
Indemnitee.

     (c) Selection, Payment, Discharge, of Independent Counsel. In the event the
determination of entitlement to indemnification is to be made by Independent Counsel
pursuant to Section 7(b) of this Agreement, the Independent Counsel shall be selected, paid
and discharged in the following manner:

     (1) If a Change of Control has not occurred, the Independent Counsel shall be
selected by the Board, and the Company shall give written notice to Indemnitee
advising Indemnitee of the identity of the Independent Counsel so selected.

     (2) If a Change of Control has occurred, the Independent Counsel shall be
selected by Indemnitee (unless Indemnitee shall request that such selection be made
by the Board, in which event clause (1) of this Section 7(c) shall apply), and
Indemnitee shall give written notice to the Company advising it of the identity of
the Independent Counsel so selected.

     (3) Following the initial selection described in clauses (1) and (2) of this
Section 7(c), Indemnitee or the Company, as the case may be, may, within seven days
after such written notice of selection has been given, deliver to the other party a
written objection to such selection. Such objection may be asserted only on the
ground that the Independent Counsel so selected does not meet the requirements of
“Independent Counsel” as defined in this Agreement, and the objection shall set
forth with particularity the factual basis of such assertion. Absent a proper and
timely objection, the person so selected shall act as Independent Counsel. If such
written objection is made, the Independent Counsel so selected may not serve as
Independent Counsel unless and until a court has determined that such objection is
without merit.

     (4) Either the Company or Indemnitee may petition any court of competent
jurisdiction if the parties have been unable to agree on the selection of

8

 

Independent Counsel within 20 days after submission by Indemnitee of a written
request for indemnification pursuant to Section 7(a) of this Agreement. Such
petition may request a determination whether an objection to the party’s selection
is without merit and/or seek the appointment as Independent Counsel of a person
selected by the Court or by such other person as the Court shall designate. A
person so appointed shall act as Independent Counsel under Section 7(b) of this
Agreement.

     (5) The Company shall pay any and all reasonable fees and expenses of
Independent Counsel incurred by such Independent Counsel in connection with acting
pursuant to this Agreement, and the Company shall pay all reasonable fees and
expenses incident to the procedures of this Section 7(c), regardless of the manner
in which such Independent Counsel was selected or appointed.

     (6) Upon the due commencement of any judicial proceeding or arbitration
pursuant to Section 9(c) of this Agreement, Independent Counsel shall be discharged
and relieved of any further responsibility in such capacity (subject to the
applicable standards of professional conduct then prevailing).

     (d) Cooperation. Indemnitee shall cooperate with the person, persons or entity
making the determination with respect to Indemnitee’s entitlement to indemnification under
this Agreement, including providing to such person, persons or entity upon reasonable
advance request any documentation or information which is not privileged or otherwise
protected from disclosure and which is reasonably available to Indemnitee and reasonably
necessary to such determination. Any costs or expenses (including attorneys’ fees and
disbursements) incurred by Indemnitee in so cooperating with the person, persons or entity
making such determination shall be borne by the Company (irrespective of the determination
as to Indemnitee’s entitlement to indemnification) and the Company hereby indemnifies and
agrees to hold Indemnitee harmless therefrom.

     (e) Payment. If it is determined that Indemnitee is entitled to
indemnification, payment to Indemnitee shall be made within 10 days after such
determination.

     8. Presumptions and Effect of Certain Proceedings.

     (a) Burden of Proof. In making a determination with respect to entitlement to
Indemnification hereunder, the person or persons or entity making such determination shall
presume that Indemnitee is entitled to indemnification under this Agreement if Indemnitee
has submitted a request for indemnification in accordance with Section 7(a), and the Company
shall have the burden of proof to overcome that presumption in connection with the making by
any person, persons or entity of any determination contrary to that presumption.

     (b) Effect of Other Proceedings. The termination of any Proceeding or of any
claim, issue or matter therein, by judgment, order, settlement or conviction, or upon a plea
of nolo contendere or its equivalent, shall not (except as otherwise expressly

9

 

provided in this Agreement) of itself adversely affect the right of Indemnitee to
indemnification or create a presumption that Indemnitee did not act in Good Faith.

     (c) Reliance as Safe Harbor. For purposes of any determination of Good Faith,
Indemnitee shall be deemed to have acted in Good Faith if Indemnitee’s action is based on
the records or books of account of the Enterprise, including financial statements, or on
information supplied to Indemnitee by the officers of the Enterprise in the course of their
duties, or on the advice of legal counsel for the Enterprise or on information or records
given or reports made to the Enterprise by an independent certified public accountant or by
an appraiser or other expert selected with reasonable care by the Enterprise. The
provisions of this Section 8(c) shall not be deemed to be exclusive or to limit in any way
the other circumstances in which the Indemnitee may be deemed to have met the applicable
standard of conduct set forth in this Agreement.

     (d) Actions of Others. The knowledge and/or actions, or failure to act, of any
director, officer, agent or employee of the Enterprise shall not be imputed to Indemnitee
for purposes of determining the right to indemnification under this Agreement.

     9. Remedies of Indemnitee.

     (a) Application. This Section 9 shall apply in the event of a Dispute. For
purposes of this article, “Dispute” shall mean any of the following events:

     (1) a determination is made pursuant to Section 7 of this Agreement that
Indemnitee is not entitled to indemnification under this Agreement;

     (2) advancement of Expenses is not timely made pursuant to Section 6 of this
Agreement;

     (3) if the determination of entitlement to be made pursuant to Section 7(b) of
this Agreement is to be made by the Board and the Board has not made such
determination within 60 days after receipt by the Company of the request for
indemnification;

     (4) if the determination of entitlement to be made pursuant to Section 7(b) of
this Agreement is to be made by Independent Counsel and Independent Counsel has not
made such determination within 90 days after receipt by the Company of the request
for indemnification;

     (5) payment of indemnification is not made pursuant to Section 4(e) of this
Agreement within 10 days after receipt by the Company of a written request therefor;
or

     (6) payment of indemnification is not made within 10 days after a determination
has been made that Indemnitee is entitled to indemnification or such determination
is deemed to have been made pursuant to Section 7 of this Agreement.

10

 

     (b) Adjudication. In the event of a Dispute, Indemnitee shall be entitled to
an adjudication in an appropriate court in the State of Delaware, or in any other court of
competent jurisdiction, of Indemnitee’s entitlement to such indemnification or advancement
of Expenses. Alternatively, Indemnitee, at Indemnitee’s option, may seek an award in
arbitration to be conducted by a single arbitrator pursuant to the rules of the American
Arbitration Association. Indemnitee shall commence such proceeding seeking an adjudication
or an award in arbitration within 180 days following the date on which Indemnitee first has
the right to commence such proceeding pursuant to this Section 9(b). The Company shall not
oppose Indemnitee’s right to seek any such adjudication or award in arbitration.

     (c) De Novo Review. In the event that a determination shall have been made
pursuant to Section 7 of this Agreement that Indemnitee is not entitled to indemnification,
any judicial proceeding or arbitration commenced pursuant to this Section 9 shall be
conducted in all respects as a de novo trial, or arbitration, on the merits, and Indemnitee
shall not be prejudiced by reason of that adverse determination. In any such proceeding or
arbitration, the Company shall have the burden of proving that Indemnitee is not entitled to
indemnification or advancement of Expenses, as the case may be.

     (d) Company Bound. If a determination shall have been made or deemed to have
been made pursuant to Section 7 of this Agreement that Indemnitee is entitled to
indemnification, the Company shall be bound by such determination in any judicial proceeding
or arbitration absent (i) a misstatement by Indemnitee of a material fact, or an omission of
a material fact necessary to make Indemnitee’s statement not materially misleading in
connection with the request for indemnification or (ii) a prohibition of such
indemnification under applicable law.

     (e) Procedures Valid. The Company shall be precluded from asserting in any
judicial proceeding or arbitration commenced pursuant to this Section 9 that the procedures
and presumptions of this Agreement are not valid, binding and enforceable and shall
stipulate in any such court or before any such arbitrator that the Company is bound by all
of the provisions of this Agreement.

     (f) Expenses of Adjudication. In the event that Indemnitee, pursuant to this
Section 9, seeks a judicial adjudication of or an award in arbitration to enforce
Indemnitee’s rights under, or to recover damages for breach of, this Agreement, Indemnitee
shall be entitled to recover from the Company, and shall be indemnified by the Company
against, any and all expenses (of the types described in the definition of Expenses in this
Agreement) actually and reasonably incurred by Indemnitee in such adjudication or
arbitration, but only if Indemnitee prevails therein. If it shall be determined in such
adjudication or arbitration that Indemnitee is entitled to receive part but not all of the
indemnification or advancement of expenses sought, the expenses incurred by Indemnitee in
connection with such adjudication or arbitration shall be appropriately prorated.

11

 

     10. Non-exclusivity, Insurance, Subrogation.

     (a) Non-Exclusivity. The rights of indemnification and to receive advancement
of Expenses as provided by this Agreement shall not be deemed exclusive of any other rights
to which Indemnitee may at any time be entitled under applicable law, the Certificate of
Incorporation, the Bylaws, any agreement, a vote of stockholders or a resolution of
directors, or otherwise. No amendment, alteration, rescission or replacement of this
Agreement or any provision hereof shall be effective as to Indemnitee with respect to any
action taken or omitted by such Indemnitee in Indemnitee’s Corporate Status prior to such
amendment, alteration, rescission or replacement.

     (b) Insurance. The Company may maintain an insurance policy or policies
against liability arising out of this Agreement or otherwise.

     (c) Subrogation. In the event of any payment under this Agreement, the Company
shall be subrogated to the extent of such payment to all of the rights of recovery of
Indemnitee, who shall execute all papers required and take all action necessary to secure
such rights, including execution of such documents as are necessary to enable the Company to
bring suit to enforce such rights.

     (d) No Duplicative Payment. The Company shall not be liable under this
Agreement to make any payment of amounts otherwise indemnifiable hereunder if and to the
extent that Indemnitee has otherwise actually received such payment under any insurance
policy, contract, agreement or otherwise.

     11. Miscellaneous Provisions.

     (a) Entire Agreement. This Agreement contains the entire understanding between
the parties hereto with respect to the subject matter hereof and supersedes any prior
understandings, agreements or representations, written or oral, relating to the subject
matter hereof.

     (b) Counterparts. This Agreement may be executed in separate counterparts,
each of which will be an original and all of which taken together shall constitute one and
the same agreement, and any party hereto may execute this Agreement by signing any such
counterpart.

     (c) Severability. Whenever possible, each provision of this Agreement shall be
interpreted in such a manner as to be effective and valid under applicable law, but if any
provision of this Agreement is held to be invalid, illegal or unenforceable under any
applicable law or rule, the validity, legality and enforceability of the other provision of
this Agreement will not be affected or impaired thereby.

     (d) Successors and Assigns. This Agreement shall be binding upon and inure to
the benefit of the parties hereto and their respective heirs, personal representatives and
successors and assigns.

12

 

     (e) Modification, Amendment, Waiver or Termination. No provision of this
Agreement may be modified, amended, waived or terminated except by an instrument in writing
signed by the parties to this Agreement. No course of dealing between the parties will
modify, amend, waive or terminate any provision of this Agreement or any rights or
obligations of any party under or by reason of this Agreement.

     (f) Notices. All notices, consents, requests, instructions, approvals or other
communications provided for herein shall be in writing and delivered by personal delivery,
overnight courier, mail, electronic facsimile or e-mail addressed to the receiving party at
the address set forth herein. All such communications shall be effective when received.

If to the Company:

Ryuji Ueno, M.D., Ph.D., Ph.D.

Chief Executive Officer, Chief Scientific Officer and

Chair of the Board of Directors

c/o Sucampo Pharmaceuticals, Inc.

4520 East-West Highway

Suite 300

Bethesda, MD 20814

If to the Indemnitee:

   
                     
                
                                

   
                     
                
                                

   
                     
                
                                

     Any party may change the address set forth above by notice to each other party given as
provided herein.

     (g) Headings. The headings and any table of contents contained in this
Agreement are for reference purposes only and shall not in any way affect the meaning or
interpretation of this Agreement.

     (h) Governing Law. ALL MATTERS RELATING TO THE INTERPRETATION, CONSTRUCTION,
VALIDITY AND ENFORCEMENT OF THIS AGREEMENT SHALL BE GOVERNED BY THE INTERNAL LAWS OF THE
STATE OF DELAWARE, WITHOUT GIVING EFFECT TO ANY CHOICE OF LAW PROVISIONS THEREOF.

     (i) Third-Party Benefit. Nothing in this Agreement, express or implied, is
intended to confer upon any other person any rights, remedies, obligations or liabilities of
any nature whatsoever.

13

 

     (j) Jurisdiction and Venue. THIS AGREEMENT MAY BE ENFORCED IN ANY FEDERAL
COURT OR STATE COURT SITTING IN DELAWARE, AND EACH PARTY CONSENTS TO THE JURISDICTION AND
VENUE OF ANY SUCH COURT AND WAIVES ANY ARGUMENT THAT VENUE IN SUCH FORUM IS NOT CONVENIENT.
IF ANY PARTY COMMENCES ANY ACTION UNDER ANY TORT OR CONTRACT THEORY ARISING DIRECTLY OR
INDIRECTLY FROM THE RELATIONSHIP CREATED BY THIS AGREEMENT IN ANOTHER JURISDICTION OR VENUE,
ANY OTHER PARTY TO THIS AGREEMENT SHALL HAVE THE OPTION OF TRANSFERRING THE CASE TO THE
ABOVE-DESCRIBED VENUE OR JURISDICTION OR, IF SUCH TRANSFER CANNOT BE ACCOMPLISHED, TO HAVE
SUCH CASE DISMISSED WITHOUT PREJUDICE.

     (k) Remedies. The parties agree that money damages may not be an adequate
remedy for any breach of the provisions of this Agreement and that any party may, in its
discretion, apply to any court of law or equity of competent jurisdiction for specific
performance and injunctive relief in order to enforce or prevent any violations this
Agreement, and any party against whom such proceeding is brought hereby waives the claim or
defense that such party has an adequate remedy at law and agrees not to raise the defense
that the other party has an adequate remedy at law.

[REMAINDER OF THIS PAGE LEFT INTENTIONALLY BLANK]

14

 

     IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date set forth
in the first paragraph.

	 	 	 	 	 	 	 
	 	 	SUCAMPO PHARMACEUTICALS, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ KEI S. TOLLIVER	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Name:
	 	Kei S. Tolliver	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Its:
	 	Secretary	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	ANTHONY C. CELESTE	 	 
	 
	 	 	 	 	 	 
	 	 	/s/ Anthony C. Celeste	 	 
	 	 	 	 	 
	 	 	Indemnitee	 	 

15

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