Document:

exv10w1

 

EXHIBIT 10.1

QUANTA SERVICES, INC. 2001 STOCK INCENTIVE PLAN

RESTRICTED STOCK AGREEMENT

Grantee:

Address:

Number of Awarded Shares:

Date of Award:

Vesting of the Awarded Shares:

	 	 	 	 	 	 	 	 	 
	Date	 	No. Shares	 	 	Vested %	 
	Vest Date — 1
	 	 	0	 	 	 	33-1/3%	
	Vest Date — 2
	 	 	0	 	 	 	33-1/3%	
	Vest Date — 3
	 	 	0	 	 	 	33-1/3%	
	 
	 	 	 	 	 	 
	Total
	 	 	0	 	 	 	100%	

      Quanta Services, Inc., a Delaware corporation (the “Company”), hereby grants to the individual
whose name appears above (“Grantee"), pursuant to the provisions of the Quanta
Services, Inc. 2001 Stock Incentive Plan (As Amended and Restated March 13, 2003) as amended from
time to time in accordance with its terms (the “Plan”), a
restricted stock award (this “Award”) of shares (the
“Awarded Shares”) of
its common stock, par value $0.00001 per share (the “Common
Stock”), effective as
of the date of award as set forth above (the “Grant Date”), upon and subject to the
terms and conditions set forth in this Restricted Stock Agreement (this “Agreement”) and in
the Plan, which are incorporated herein by reference. Unless otherwise defined in this Agreement,
capitalized terms used in this Agreement shall have the meanings
assigned to them in the Plan.

      1. EFFECT
OF THE PLAN. The Awarded Shares granted to Grantee are subject to
all of the provisions of the Plan and of this Agreement, together with all rules and determinations
from time to time issued by the Committee and by the Board pursuant to the Plan. The Company hereby
reserves the right to amend, modify, restate, supplement or terminate
the Plan without the consent
of Grantee, so long as such amendment, modification, restatement or supplement shall not materially
reduce the rights and benefits available to Grantee hereunder, and this Award shall be subject,
without further action by the Company or Grantee, to such amendment, modification, restatement or
supplement unless provided otherwise therein.

 

 

      2. GRANT. This Award shall evidence Grantee’s ownership of the Awarded Shares, and
Grantee acknowledges that he or she will not receive a stock certificate representing the Awarded
Shares unless and until the Awarded Shares vest as provided in this
Award and all tax withholding
obligations applicable to the Vested Awarded Shares (as defined below) have been satisfied. The
Awarded Shares will be held in custody for Grantee, in a book entry account with the Company’s
transfer agent, until the Awarded Shares have vested in accordance with Section 3 of this Award.
Upon vesting of the Awarded Shares, the Company shall, unless otherwise paid by Grantee as
described in Section 9(a) of this Award, withhold that number of Vested Awarded Shares necessary to
satisfy any applicable tax withholding obligation of Grantee in accordance with the provisions of
Section 9(a) of this Award, and thereafter instruct its transfer agent to deliver to Grantee all
remaining Vested Awarded Shares. Grantee agrees that the Awarded Shares shall be subject to all of
the terms and conditions set forth in this Agreement and the Plan, including, but not limited to,
the forfeiture conditions set forth in Section 4 of this Agreement, the restrictions on transfer
set forth in Section 5 of this Agreement and the satisfaction of the Required Withholding as set
forth in Section 9(a) of this Agreement.

      3. VESTING
SCHEDULE; SERVICE REQUIREMENT. Except as provided otherwise in
Section 4 of this Agreement, the Awarded Shares shall vest if Grantee’s Continuous Service is not
interrupted during the period commencing with the Grant Date and ending with the applicable date
that such portion of the Awarded Shares vests (each, a “Vesting Date”). Awarded
Shares that have vested pursuant to this Agreement are referred to herein as “Vested Awarded Shares” and Awarded Shares that have not yet vested pursuant to this
Agreement are referred to herein as “Unvested Awarded Shares.” Subject to the provisions of
Section 4 of this Agreement, if Grantee’s Continuous Service is not interrupted prior to an applicable
Vesting Date, thirty-three and one-third (33-1/3%) of the awarded Shares will vest
on the first Vesting Date; an additional thirty-three and one-third
(33-1/3%) of the Awarded Shares will
vest on the second Vesting Date; and the remaining thirty-three and
one-third (33-1/3%) of the
Awarded Shares will vest on the third Vesting Date, all as set forth
on the first page of this Agreement
under the heading “Vesting of Awarded Shares.” Shares will vest on a given date in the quarter in which
they were granted and not necessarily on the anniversary of the grant date. If an installment of
the vesting would result in a fractional Vested Awarded Share, such installment will be rounded to
the next higher or lower Awarded Share, as determined by the Company, except the final installment,
which will be for the balance of the Awarded Shares.

4. CONDITIONS OF FORFEITURE.

     (a)
Upon any termination of Grantee’s Continuous Service (the
“Termination Date”) for any or
no reason (other than due to Grantee’s death), including but not limited to Grantee’s voluntary
resignation or termination by the Company with or without cause
before all of the Awarded Shares
become Vested Awarded Shares, all Unvested Awarded Shares as of the Termination Date shall, without
further action of any kind by the Company or Grantee, be forfeited. Unvested Awarded Shares that
are forfeited shall be deemed to be immediately transferred to the Company without any payment by
the Company or action by Grantee, and the Company shall have the full right to cancel any evidence
of Grantee’s ownership of such forfeited Unvested Awarded Shares and to take any other action
necessary to demonstrate that Grantee no longer owns such forfeited Unvested Awarded Shares
automatically upon such forfeiture. Following such forfeiture, Grantee shall have no further
rights with respect to such forfeited Unvested Awarded Shares. Grantee, by his acceptance of the
Award granted pursuant to this Agreement, irrevocably grants to the Company a power of attorney to
transfer Unvested Awarded Shares that are forfeited to the Company and agrees to execute any
documents requested by the Company in connection with such forfeiture and transfer. The provisions
of this Agreement regarding transfers of Unvested Awarded Shares that are forfeited shall be
specifically performable by the Company in a court of equity or law.

 

 

     (b) Notwithstanding anything to the contrary in this Agreement, the Unvested Awarded
Shares shall become vested (i) on the death of Grantee during Grantee’s Continuous Service or (ii)
in accordance with the provisions of Section 11(c) of the Plan relating to a Change in Control
event.

      5. NON-TRANSFERABILITY. Grantee may not sell, transfer, pledge, exchange, hypothecate,
or otherwise encumber or dispose of any of the Unvested Awarded Shares, or any right or interest
therein, by operation of law or otherwise, except only with respect
to a transfer of title effected
pursuant to Grantee’s will or the laws of descent and distribution following Grantee’s death.
References to Grantee, to the extent relevant in the context, shall include references to
authorized transferees. Any transfer in violation of this Section 5 shall be void and of no force
or effect, and shall result in the immediate forfeiture of all Unvested Awarded Shares.

      6. DIVIDEND
AND VOTING RIGHTS. Subject to the restrictions contained in this Agreement,
Grantee shall have the rights of a stockholder with respect to the Awarded Shares, including the
right to vote all such Awarded Shares, including Unvested Awarded Shares, and to receive all
dividends, cash or stock, paid or delivered thereon, from and after
the date hereof. In the event of
forfeiture of Unvested Awarded Shares, Grantee shall have no further rights with respect to such
Unvested Awarded Shares. However, the forfeiture of the Unvested Awarded Shares pursuant to Section
4 hereof shall not create any obligation to repay cash dividends received as to such Unvested
Awarded Shares, nor shall such forfeiture invalidate any votes given by Grantee with respect to
such Unvested Awarded Shares prior to forfeiture.

      7. CAPITAL
ADJUSTMENTS AND CORPORATE EVENTS. If, from time to time during the term
of this Agreement, there is any capital adjustment affecting the outstanding Common Stock as a
class without the Company’s receipt of consideration, the Unvested Shares shall be adjusted in
accordance with the provisions of Section 11(a) of the Plan. Any and all new, substituted or additional securities to which Grantee maybe
entitled by reason of Grantee’s ownership of the Unvested Awarded Shares hereunder because of a
capital adjustment shall be immediately subject to the forfeiture provisions of this Agreement and
included thereafter as “Unvested Awarded Shares” for
purposes of this Agreement.

      8. REFUSAL
TO TRANSFER. The Company shall not be required (i) to transfer on its books
any Unvested Awarded Shares that have been sold or otherwise transferred in violation of any of the
provisions of this Agreement or the Plan, or (ii) to treat as owner of such Unvested Awarded
Shares, or accord the right to vote or pay or deliver dividends or other distributions to, any
purchaser or other transferee to whom or which such Unvested Awarded Shares shall have been so
transferred.

      9. TAX MATTERS.

     (a) The Company’s obligation to deliver Awarded Shares to Grantee upon the vesting of such
shares shall be subject to the satisfaction of all applicable federal, state and local income and
employment tax withholding requirements (the “Required
Withholding”). If
the Company has not received from Grantee a certified check or money order for the full amount of
the Required Withholding by 5:00 P.M. Central Standard Time on the
date Awarded Shares become
Vested Awarded Shares, the Company shall withhold from the Vested Awarded Shares that otherwise
would have been delivered to Grantee a number of Vested Awarded Shares necessary to satisfy
Grantee’s Required Withholding, and deliver the remaining Vested Awarded Shares to Grantee. The
amount of the Required Withholding and the number of Vested Awarded Shares to be withheld by the
Company, if applicable, to satisfy Grantee’s Required Withholding, as well as the amount reflected
on tax reports filed by the Company, shall be based on the value of the Vested Awarded Shares as of
12:01 A.M. Central Standard Time on the applicable Vesting Date. The obligations of the Company
under this Award will be conditioned on such satisfaction of the Required Withholding.

 

 

     (b) Grantee acknowledges that the tax consequences associated with the award are
complex and that the Company has urged Grantee to review with Grantee’s own tax advisors the
federal, state and local tax consequences of this Award. Grantee is relying solely on such advisors
and not on any statements or representations of the Company or any of its agents. Grantee
understands that Grantee (and not the Company) shall be responsible for Grantee’s own tax liability
that may arise as a result of the Award. Grantee understands further that Section 83 of the
Internal Revenue Code of 1986, as amended (the “Code”), taxes as ordinary income the fair
market value of the Awarded Shares as of the Vesting Date. Grantee also understands that
Grantee may elect to be taxed at Grant Date rather than at the time the Awarded Shares vest by
filing an election under Section 83(b) of the Code with the Internal Revenue Service and by
providing a copy of the election to the Company. GRANTEE ACKNOWLEDGES THAT HE OR SHE HAS BEEN
INFORMED OF THE AVAILABILITY OF MAKING AN ELECTION IN ACCORDANCE WITH SECTION 83(b) OF THE CODE;
THAT SUCH ELECTION MUST BE FILED WITH THE INTERNAL REVENUE SERVICE (AND A COPY OF THE ELECTION
GIVEN TO THE COMPANY) WITHIN 30 DAYS OF THE GRANT OF AWARDED SHARES TO GRANTEE; AND THAT GRANTEE IS
SOLELY RESPONSIBLE FOR MAKING SUCH ELECTION.

      10. ENTIRE
AGREEMENT; GOVERNING LAW. The Plan and this Agreement constitute the
entire agreement of the Company and Grantee (collectively, the
“Parties”) with
respect to the subject matter hereof and supersede in their entirety all prior undertakings and agreements of the Parties with respect to
the subject matter hereof. If there is any inconsistency between the
provisions of this Agreement
and of the Plan, the provisions of the Plan shall govern. Nothing in
the Plan and this Agreement
(except as expressly provided therein or herein) is intended to confer any rights or remedies on
any person other than the Parties. The Plan and this Agreement are to be construed in accordance
with and governed by the internal laws of the State of Texas, without giving effect to any
choice-of-law rule that would cause the application of the laws of any jurisdiction other than the
internal laws of the State of Texas to
the rights and duties of the Parties. Should any provision of the Plan or this Agreement relating
to the Shares be determined by a court of law to be illegal or unenforceable, such provision shall
be enforced to the fullest extent allowed by law and the other provisions shall nevertheless remain
effective and shall remain enforceable.

      11. INTERPRETIVE
MATTERS. Whenever required by the context, pronouns
and any variation thereof shall be deemed to refer to the masculine, feminine, or neuter, and the
singular shall include the plural, and vice versa. The term “include” or “including” does not
denote or imply any limitation. The captions and headings used in
this Agreement are inserted for
convenience and shall not be deemed a part of the Restricted Stock Award or this Agreement for
construction or interpretation.

      12. DISPUTE
RESOLUTION. The provisions of this Section 12 shall be
the exclusive
means of resolving disputes of the Parties (including any other persons claiming any rights or
having any obligations through the Company or Grantee) arising out of
or relating to the Plan and
this Agreement. The Parties shall attempt in good faith to
resolve any disputes arising out of or relating to the Plan and this Agreement by negotiation
between individuals who have authority to settle the controversy. Negotiations shall be commenced
by either Party by a written statement of the Party‘s position and the name and title of the individual
who will represent the Party. Within thirty (30) days of the
written notification, the Parties shall meet
at a mutually acceptable time and place, and thereafter as often as they reasonably deem necessary,
to resolve the dispute. If the dispute has not been resolved by negotiation within ninety
(90) days of the written notification of the dispute, either Party may file suit and each Party
agrees that any suit, action or proceeding arising out of or relating to the Plan or this Agreement
shall be brought in the United States District Court for the Southern District of Texas (or should
such court lack jurisdiction to hear such suit, action or proceeding, in a Texas state court in
Harris County, Texas) and that the Parties shall submit to the jurisdiction of such court. The
Parties irrevocably waive, to the fullest extent permitted by law, any objection a Party may have to
the laying of venue

 

 

for any such suit, action or proceeding brought in such court. THE PARTIES ALSO EXPRESSLY WAIVE ANY
RIGHT THEY HAVE OR MAY HAVE TO A JURY TRIAL OF ANY SUCH SUIT, ACTION OR PROCEEDING. If any one or
more provisions of this Section 12 shall for any reason be held invalid or unenforceable, it is the
specific intent of the Parties that such provisions shall be modified to the minimum extent
necessary to make it or its application valid and enforceable.

      13. NATURE OF PAYMENTS. Any and all grants or deliveries of
Awarded Shares hereunder shall constitute special incentive payments to Grantee and shall
not be taken into account in computing the amount of salary or compensation of Grantee
for the purpose of determining any retirement, death or other benefits under (a) any
retirement, bonus, life insurance or other employee benefit plan of the Company, or (b) any
agreement between the company and Grantee, except as such plan or agreement
shall otherwise expressly provide.

      14. NON-SOLICITATION. In consideration for the grant of this Award, Grantee hereby
agrees that during Grantee’s Continuous Service and for one year thereafter, Grantee shall not
solicit any person who is an employee of the Company or any Affiliate for the purpose or with the
intent of enticing such employee away from or out of the employ of the Company or any
Affiliate.

      15. PAYMENT OF PAR VALUE. In connection with the issuance of the Awarded Shares
pursuant to this Agreement, the Board has determined that the Company has
received consideration of not less than the aggregate par value of the Awarded Shares in the form
of past services rendered by Grantee to the Company and/or one or more Affiliates.

      16. AMENDMENT; WAIVER. This Agreement may be amended or modified only by means of
a written document or documents signed by the Company and Grantee. Any provision for the benefit of
the Company contained in this Agreement may be waived, either generally or in any
particular instance, by the Board or by the Committee. A waiver on one occasion shall not be deemed
to be a waiver of the same or any other breach on a future occasion.

      17. NOTICE. Any notice of other communication required or permitted
hereunder shall be given in writing and shall be deemed given, effective, and received upon prepaid
delivery in person or by courier or upon the earlier of delivery or the third business day after
deposit in the United States mail if sent by certified mail, with postage and fees prepaid,
addressed to the other Party at its address as shown beneath its signature in this Agreement, or to
such other address as such Party may designate in writing from time to time by notice to the other
Party in accordance with this Section 17.

      IN WITNESS WHEREOF, this Award has been executed as of the date first above written.

	 	 	 
	QUANTA SERVICES, INC.

	 
	 	 
	 
	 	 
	By:
	 	 
	

	 	 
	 
	 	 
	

	 	Name:  John R. Colson
	 
	 	 
	

	 	Title:    Chairman of the Board and Chief Executive Officer
	 
	 	 
	Address:

	 	1360 Post Oak Boulevard, Suite 2100
	

	 	Houston, TX 77056-3023

 

     GRANTEE ACKNOWLEDGES AND AGREES
THAT THE SHARES SUBJECT TO THIS RESTRICTED STOCK AWARD SHALL VEST AND
THE FORFEITURE RESTRICTIONS SHALL LAPSE, IF AT ALL, ONLY DURING THE
PERIOD OF GRANTEE'S CONTINUOUS SERVICE OR AS OTHERWISE PROVIDED IN
THIS AGREEMENT (NOT THROUGH THE ACT OF BEING GRANTED THE RESTRICTED
STOCK AWARD). GRANTEE FURTHER ACKNOWLEDGES AND AGREES THAT NOTHING IN
THIS AGREEMENT OR THE PLAN SHALL CONFER UPON GRANTEE ANY RIGHT WITH
RESPECT TO FUTURE AWARDS OR CONTINUATION OF GRANTEE’S CONTINUOUS
SERVICE. Grantee acknowledges receipt of a copy of the Plan,
represents that he or she is familiar with the terms and provisions
thereof, and hereby accepts the Restricted Stock Award subject to all
of the terms and provisions hereof and thereof. Grantee has
reviewed this Agreement and the Plan in their entirety, has had an
opportunity to obtain the advice of counsel prior to executing this
Agreement, and fully understands all provisions of this Agreement and
the Plan. Grantee hereby agrees that all disputes arising out of or
relating to this Agreement and the Plan shall be resolved in
accordance with Section 12 of this Agreement. Grantee further agrees
to notify the Company upon any change in the address for notice
indicated in this Agreement.

	 	 	 	 	 	 	 
	ACCEPTED:	 	 	 	 
	 
	 	 	 	 	 	 
	Dated:

	 	

	 	Signed:
	 	

	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	Social Security No.:

	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	The Optionee acknowledges receipt of a copy of
the Plan, represents that he or she is familiar with the terms
and provisions thereof, and hereby rejects this grant.
	 
	 	 	 	 	 	 
	REJECTED:

	 
	 	 	 	 	 	 
	Dated:

	 	

	 	Signed:
	 	

	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	Social Security No.:exv4w14

 

EXHIBIT 4.14

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-1
	 	 
	

	 	$500,000,000, which amount may be
	

	 	increased or decreased by the Schedule
	

	 	of Increases and Decreases in Global Security attached hereto.

ENTERPRISE PRODUCTS OPERATING L.P.

4.000% SERIES B SENIOR NOTES DUE 2007

CUSIP 293791 AL 3

     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 Five Hundred Million
($500,000,000) 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, 2007 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 4.0% 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
$500 million in principal amount designated as the 4.000% Series B Senior Notes due 2007 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 First Supplemental Indenture dated as of October 4, 2004,
duly executed by the Company, the Parent Guarantor and the Trustee (the “First 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.

4.000% SERIES B SENIOR NOTES DUE 2007

     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 4.000% Series B Senior Notes due 2007 of the Company, in initial aggregate principal amount
of $500 million (the “Securities”).

     1. Interest.

     The Company promises to pay interest on the principal amount of this Security at the rate of
4.0% 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 First Supplemental Indenture. The Securities are subject to all such terms,
and Holders of Securities are referred to the Original Indenture, the First 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 $500 million;
provided, however, that the authorized aggregate principal amount of such series may be increased
from time to time as provided in the First 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 20 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)
	 	Depositary

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