Document:

Exhibit 10.3

 

FOURTH AMENDMENT TO AMENDED AND RESTATED 

CREDIT AGREEMENT 

 

THIS
FOURTH AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT (this
“Amendment”), is made and entered into
as of December 31, 2004, among CURATIVE
HEALTH SERVICES, INC., a Minnesota corporation formerly known as
Curative Holding Co. (“Holdings”),
EBIOCARE.COM, INC., a Delaware
corporation (“eBioCare”), HEMOPHILIA ACCESS, INC., a Tennessee
corporation (“Hemophilia Access”),
APEX THERAPEUTIC CARE, INC., a
California corporation (“Apex”), CHS SERVICES, INC., a Delaware corporation
(“CHS”), CURATIVE HEALTH SERVICES OF NEW YORK, INC.,
a New York corporation (“CHSNY”), OPTIMAL CARE PLUS, INC., a Delaware
corporation (“Optimal Care”),  INFINITY
INFUSION, LLC, a Delaware limited liability company (“Infinity”), INFINITY INFUSION II, LLC, a Delaware limited liability
company (“Infinity II”), INFINITY INFUSION CARE, LTD., a Texas
limited partnership (“Infinity Infusion”),
MEDCARE, INC., a Delaware
corporation (“Medcare”), CURATIVE PHARMACY SERVICES, INC., a
Delaware corporation (“CPS”), CURATIVE HEALTH SERVICES CO., a Minnesota
corporation formerly known as Curative Health Services, Inc. (“CHSC”), CRITICAL
CARE SYSTEMS, INC., a Delaware corporation (“CCS”) (Holdings, eBioCare, Hemophilia
Access, Apex, CHS, CHSNY, Optimal Care, Infinity, Infinity II, Infinity
Infusion, Medcare, CPS, CHSC and CCS are sometimes collectively referred to
herein as the “Borrowers” and
individually as a “Borrower”), CURATIVE HEALTH SERVICES III CO., a Minnesota corporation, and GENERAL
ELECTRIC CAPITAL CORPORATION, a Delaware corporation (“GE Capital”), as Agent and Lender.

 

Statement of Facts

 

A.                                    Borrowers and GE Capital are parties to that
certain Amended and Restated Credit Agreement, dated April 23, 2004, as
amended by (i) that certain First Amendment to Amended and Restated Credit
Agreement and Collateral Documents dated as of May 3, 2004, (ii) that certain
Second Amendment to Amended and Restated Credit Agreement dated as of June 30,
2004 and (iii) that certain Third Amendment to Amended and Restated Credit
Agreement dated as of October 20, 2004 (as so amended, the “Credit Agreement”; capitalized terms used but not defined in
this Amendment have the meanings
given in the Credit Agreement, as amended by this Amendment), whereby the
Lenders have made available a revolving credit facility and other financial
accommodations to Borrowers, subject to the terms and conditions contained in
the Credit Agreement.

 

B.                                    The parties hereto desire to enter into this
Amendment to amend certain provisions of the Credit Agreement as provided for
herein.

 

Statement of Terms

 

NOW
THEREFORE, in consideration of the premises and mutual
covenants contained herein, and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereto
agree as follows:

 

 

1.                                      Amendments
to Credit Agreement.  Subject to
the terms and conditions of this Amendment, including without limitation Section 3
hereof, the Credit Agreement is hereby amended as follows:

 

(a)                                  Section 7.15
of the Credit Agreement is hereby amended by deleting such Section in its
entirety and substituting in lieu thereof the following new Section to
read in its entirety as follows:

 

Section 7.15. Total Leverage Ratio.  The Borrowers shall not permit the Total
Leverage Ratio as of the last day of any Fiscal Quarter to be greater than the
amount specified in the table below for the corresponding period specified
below for each Fiscal Quarter.

 

	
  Quarterly Period

  	
   

  	
  Maximum
  Total Leverage

  Ratio

  	
   

  
	
  Fiscal Quarter
  Ended June 30, 2004

  	
   

  	
  5.25:1.00

  	
   

  
	
  Fiscal Quarter
  Ended September 30, 2004

  	
   

  	
  6.50:1.00

  	
   

  
	
  Fiscal Quarter
  Ended December 31, 2004

  	
   

  	
  9.75:1.00

  	
   

  
	
  Fiscal Quarter
  Ended March 31, 2005

  	
   

  	
  10.50:1.00

  	
   

  
	
  Fiscal Quarter
  Ended June 30, 2005

  	
   

  	
  10.75:1.00

  	
   

  
	
  Fiscal Quarter
  Ended September 30, 2005

  	
   

  	
  10.75:1.00

  	
   

  
	
  Fiscal Quarter
  Ended December 31, 2005

  	
   

  	
  10.00:1.00

  	
   

  
	
  Fiscal Quarter
  Ended March 31, 2006

  	
   

  	
  3.75:1.00

  	
   

  
	
  Fiscal Quarter
  Ended June 30, 2006

  	
   

  	
  3.75:1.00

  	
   

  
	
  Fiscal Quarter
  Ended September 30, 2006

  	
   

  	
  3.25:1.00

  	
   

  
	
  Fiscal Quarter
  Ended December 31, 2006

  	
   

  	
  3.25:1.00

  	
   

  
	
  Fiscal Quarter
  Ended March 31, 2007

  	
   

  	
  3.00:1.00

  	
   

  
	
  Fiscal Quarter
  Ended June 30, 2007

  	
   

  	
  3.00:1.00

  	
   

  
	
  Fiscal Quarter
  Ended September 30, 2007

  	
   

  	
  2.75:1.00

  	
   

  
	
  Fiscal Quarter
  Ended December 31, 2007

  	
   

  	
  2.75:1.00

  	
   

  
	
  Fiscal Quarter
  Ended March 31, 2008

  	
   

  	
  2.50:1.00

  	
   

  
	
  Fiscal Quarter
  Ended June 30, 2008

  	
   

  	
  2.50:1.00

  	
   

  
	
  Fiscal Quarter
  Ended September 30, 2008 and each Fiscal Quarter thereafter

  	
   

  	
  2.25:1.00

  	
   

  

 

(b)                                 Section 7.17
of the Credit Agreement is hereby amended by deleting said Section in its
entirety and substituting in lieu thereof the following new Section to
read in its entirety as follows:

 

Section 7.17.  Fixed Charge
Coverage Ratio.  The
Borrowers shall not permit the Fixed Charge Coverage Ratio, determined on a
consolidated basis for the Borrowers and their consolidated Subsidiaries, for
the twelve (12) months ending as of the last day of any Fiscal Quarter, to be
less than the amount specified in the table below for the corresponding period
specified below for each Fiscal Quarter.

 

2

 

	
  Quarterly Period

  	
   

  	
  Minimum
  Fixed Charge

  Coverage Ratio

  	
   

  
	
  Fiscal Quarter
  Ended June 30, 2004

  	
   

  	
  1.50:1.00

  	
   

  
	
  Fiscal Quarter
  Ended September 30, 2004

  	
   

  	
  1.50:1.00

  	
   

  
	
  Fiscal Quarter
  Ended December 31, 2004

  	
   

  	
  0.85:1.00

  	
   

  
	
  Fiscal Quarter
  Ended March 31, 2005

  	
   

  	
  0.75:1.00

  	
   

  
	
  Fiscal Quarter
  Ended June 30, 2005

  	
   

  	
  0.55:1.00

  	
   

  
	
  Fiscal Quarter
  Ended September 30, 2005

  	
   

  	
  0.50:1.00

  	
   

  
	
  Fiscal Quarter
  Ended December 31, 2005

  	
   

  	
  0.50:1.00

  	
   

  
	
  Fiscal Quarter
  Ended March 31, 2006

  	
   

  	
  2.00:1.00

  	
   

  
	
  Fiscal Quarter
  Ended June 30, 2006

  	
   

  	
  2.00:1.00

  	
   

  
	
  Fiscal Quarter
  Ended September 30, 2006

  	
   

  	
  2.25:1.00

  	
   

  
	
  Fiscal Quarter
  Ended December 31, 2006

  	
   

  	
  2.25:1.00

  	
   

  
	
  Fiscal Quarter
  Ended March 31, 2007

  	
   

  	
  2.75:1.00

  	
   

  
	
  Fiscal Quarter
  Ended June 30, 2007

  	
   

  	
  2.75:1.00

  	
   

  
	
  Fiscal Quarter
  Ended September 30, 2007

  	
   

  	
  2.75:1.00

  	
   

  
	
  Fiscal Quarter
  Ended December 31, 2007

  	
   

  	
  2.75:1.00

  	
   

  
	
  Fiscal Quarter
  Ended March 31, 2008 and each Fiscal Quarter thereafter

  	
   

  	
  3.25:1.00

  	
   

  

 

(c)                                  The
definition of “Applicable Percentage” in Section 1.1 of the Credit
Agreement is hereby amended by deleting said definition in its entirety and
substituting in lieu thereof the following new definition to read in its
entirety as follows:

 

“Applicable Percentage”
means (a) three percent (3%), in the case of a prepayment or reduction on or
prior to March 1, 2006, (b) two percent (2%), in the case of a prepayment
or reduction after March 1, 2006 but on or prior to March 1, 2007,
and (c) one percent (1%), in the case of a prepayment or reduction after March 1,
2007, but on or prior to March 1, 2008.

 

2.                                      Representations
and Warranties.  Each Borrower
hereby jointly and severally represents and warrants to the Agent and the
Lenders that (a) this Amendment
and the Confirmation of Guaranty attached hereto have each been duly
authorized, executed and delivered by Borrowers and each Credit Party signatory
thereto, (b) no Default or Event of Default has occurred and is continuing as
of this date after giving effect to this Amendment, and (c) after giving effect
to this Amendment, all of the representations and warranties made by Borrowers
or any Credit Party in the Credit Agreement are true and correct in all
material respects on and as of the date of this Amendment (except to the extent that any such representations or
warranties expressly referred to a specific prior date or have changed based
upon events expressly permitted by the Credit Agreement).

 

3.                                      Conditions
to Effectiveness.  This Amendment shall be effective as of the
date of this Amendment first set forth above upon the satisfaction in full of
each of the following conditions:

 

3

 

(a)                                  the Agent shall have received counterparts of this Amendment, duly executed, completed
and delivered by GE Capital and each of the Credit Parties;

 

(b)                                 the Agent shall have received the Confirmation of Guaranty
duly executed by Curative Health Services III Co.;

 

(c)                                  the Agent shall have received a fully-earned and
non-refundable amendment fee in the amount of $200,000.

 

4.                                      Release.  (a)                              Each
Credit Party, on behalf of itself and its successors, assigns, and other legal
representatives, hereby absolutely, unconditionally and irrevocably releases,
remises and forever discharges GE Capital, Agent and Lenders, and their
successors and assigns, and their present and former shareholders, affiliates,
subsidiaries, divisions, predecessors, directors, officers, attorneys,
employees, agents and other representatives (GE Capital, Agent, each Lender and
all such other Persons being hereinafter referred to collectively as the “Releasees”
and individually as a “Releasee”), of and from all demands, actions, causes of
action, suits, controversies, sums of money, accounts, bills, reckonings,
damages and any and all other claims, counterclaims, defenses, rights of set
off, demands and liabilities whatsoever (individually, a “Claim” and
collectively, “Claims”) of every name and nature, known or unknown, suspected
or unsuspected, both at law and in equity, which such Credit Party or any of
its successors, assigns, or other legal representatives may now or hereafter
own, hold, have or claim to have against the Releasees or any of them for,
upon, or by reason of any circumstance, action, cause or thing whatsoever which
arises at any time on or prior to the date that this Amendment is executed by
all parties, including, without limitation, for or on account of, or in
relation to, or in any way in connection with the Credit Agreement or any of
the other Loan Documents or transactions thereunder or related thereto and
which arise at any time on or prior to the date that this Amendment is executed
by all parties.

 

(b)                                 Each
Credit Party understands, acknowledges and agrees that its release set forth
above may be pleaded as a full and complete defense and may be used as a basis
for an injunction against any action, suit or other proceeding which may be
instituted, prosecuted or attempted in breach of the provisions of such
release.

 

(c)                                  Each
Credit Party agrees that no fact, event, circumstance, evidence or transaction
which could now be asserted or which may hereafter be discovered shall affect
in any manner the final, absolute and unconditional nature of the release set
forth above.

 

5.                                      Covenant Not to Sue.  Each Credit Party, on behalf of itself and
its successors, assigns, and other legal representatives, hereby absolutely,
unconditionally and irrevocably, covenants and agrees with and in favor of each
Releasee that it will not sue (at law, in equity, in any regulatory proceeding
or otherwise) any Releasee on the basis of any Claim released, remised and
discharged by such Credit Party pursuant to Section 4 above.  If any Credit Party or any of their
respective successors, assigns or other legal representations violates the
foregoing covenant, each Credit Party, for themselves and their successors,
assigns and legal representatives, jointly and severally agree to pay, in
addition to such other damages as any

 

4

 

Releasee may sustain as a
result of such violation, all attorneys’ fees and costs incurred by any
Releasee as a result of such violation.

 

6.                                      Reimbursement
of Expenses.  Each Borrower hereby agrees that it shall
reimburse the Agent and the Lenders on demand for all costs and expenses
(including without limitation attorney’s fees) incurred by such parties in
connection with the negotiation, documentation and consummation of this Amendment and the other documents
executed in connection herewith and therewith and the transactions contemplated
hereby and thereby.

 

7.                                      Governing
Law.  THIS AMENDMENT SHALL BE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK FOR CONTRACTS
TO BE PERFORMED ENTIRELY WITHIN SAID STATE.

 

8.                                      Severability
of Provisions.  Any provision of this Amendment which is prohibited or unenforceable in any jurisdiction
shall, as to such jurisdiction, be ineffective to the extent of such
prohibition or unenforceability without invalidating the remaining provisions
hereof or affecting the validity or enforceability of such provision in any
other jurisdiction.  To the extent
permitted by applicable law, each Credit Party hereby waives any provision of
law that renders any provision hereof prohibited or unenforceable in any
respect.

 

9.                                      Counterparts.  This Amendment
may be executed in any number of counterparts, all of which shall be deemed to
constitute but one original and shall be binding upon all parties, their
successors and permitted assigns. 
Delivery of an executed signature page hereof by facsimile transmission
shall be effective as delivery of a manually executed counterpart hereof.

 

10.                               Effect
of this Amendment.  Except as
specifically amended or modified pursuant to Section 1 of this
Amendment, no other amendments, changes, modifications, consents or waivers to
the Loan Documents are intended or implied by this Amendment and in all other
respects the Loan Documents are hereby specifically ratified, restated and
confirmed by all parties hereto as of the effective date hereof.  To the extent of conflict between the terms
of this Amendment and the other Loan Documents, the terms of this Amendment
shall control.  The Credit Agreement and
this Amendment shall be read and construed as one agreement.

 

11.                               Entire
Agreement.  The Credit Agreement
as amended by this Amendment embodies the entire agreement between the parties
hereto relating to the subject matter hereof and supersedes all prior
agreements, representations and understandings, if any, relating to the subject
matter hereof.

 

[Remainder of page
intentionally left blank]

 

5

 

IN
WITNESS WHEREOF, the parties have caused this Fourth
Amendment to Amended and Restated Credit Agreement to be duly executed by their
respective officers thereunto duly authorized, as of the date first above written.

 

	
   

  	
  BORROWERS:

  
	
   

  	
   

  
	
   

  	
  CURATIVE HEALTH SERVICES, INC.,

  
	
   

  	
  a Minnesota corporation formerly known as

  Curative Holding Co.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
  Date:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  EBIOCARE.COM, INC.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
  Date:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  HEMOPHILIA ACCESS, INC.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
  Date:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  APEX THERAPEUTIC CARE, INC.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
  Date:

  	
   

  	
   

  
						

 

[Signature page to Fourth Amendment to Amended and Restated Credit
Agreement

 

 

	
   

  	
  CHS SERVICES, INC.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
  Date:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  CURATIVE HEALTH SERVICES OF NEW

  YORK, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
  Date:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  OPTIMAL CARE PLUS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
  Date:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  INFINITY INFUSION, LLC

  
	
   

  	
   

  
	
   

  	
  By: Curative Health Services Co., its Sole

  Member

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
  Date:

  	
   

  	
   

  
						

 

[Signature page to Fourth Amendment to Amended and Restated Credit
Agreement]

 

 

	
   

  	
  INFINITY INFUSION II, LLC

  
	
   

  	
   

  
	
   

  	
  By: Curative Health Services Co., its Sole

  Member

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
  Date:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  INFINITY INFUSION CARE, LTD.

  
	
   

  	
   

  
	
   

  	
  By: Infinity Infusion  II, LLC, its Sole General

  Partner

  
	
   

  	
   

  
	
   

  	
  By: Curative Health Services Co., the Sole

  Member of Infinity Infusion II, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
  Date:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  MEDCARE, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
  Date:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  CURATIVE PHARMACY SERVICES, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
  Date:

  	
   

  	
   

  
						

 

[Signature page to Fourth Amendment to Amended and Restated Credit
Agreement]

 

 

	
   

  	
  CURATIVE HEALTH SERVICES CO.,

  a Minnesota corporation formerly known as

  Curative Health Services, Inc.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
  Date:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  CRITICAL CARE SYSTEMS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
  Date:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  GUARANTORS:

  
	
   

  	
   

  
	
   

  	
  CURATIVE
  HEALTH SERVICES III CO.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
  Date:

  	
   

  	
   

  
						

 

[Signature page to Fourth Amendment to Amended and Restated Credit
Agreement]

 

 

	
   

  	
  GENERAL ELECTRIC CAPITAL

  CORPORATION, as Lender and Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Its Duly Authorized Signatory

  
	
   

  	
  Date:

  	
   

  	
   

  
						

 

[Signature page to Fourth Amendment to Amended and Restated Credit
Agreement]

 

 

CONFIRMATION OF GUARANTY

 

The
undersigned Guarantor hereby (a) acknowledges, consents and agrees to the terms
of the foregoing Fourth Amendment to Amended and Restated Credit Agreement (the
“Amendment”), including without
limitation, the amendments to the Amended and Restated Credit Agreement set
forth therein, and (b) agrees and confirms that its obligations under the
Guaranty Agreement to which it is a party will continue in full force and
effect and extend to all Obligations under and as defined in the Amended and
Restated Credit Agreement as amended and modified by (i) that certain First
Amendment to Amended and Restated Credit Agreement and Collateral Documents
dated as of May 3, 2004, (ii) that certain Second Amendment to Amended and
Restated Credit Agreement dated as of June 30, 2004, (iii) that certain
Third Amendment to Amended and Restated Credit Agreement dated as of October 20,
2004 and (iv) the Amendment.

 

As of this 28th day of February, 2005.

 

 

	
   

  	
  CURATIVE
  HEALTH SERVICES III CO.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
  Date:Exhibit
10.41

 

TEXAS
EASTERN PRODUCTS PIPELINE COMPANY, LLC

SECOND AMENDED AND RESTATED

NONEMPLOYEE DIRECTORS UNIT ACCUMULATION PLAN

 

Texas
Eastern Products Pipeline Company, LLC, a 
Delaware  limited liability
company (the “Company”), hereby establishes, effective January 1, 2004, a
Unit Accumulation Plan (the “Plan”). 
This Second Amended and Restated Unit Accumulation Plan (“Plan”),
providing for the automatic deferral of a certain portion of each Director’s
annual stipend as described below, is hereby established by Texas Eastern
Products Pipeline Company, LLC, a Delaware limited liability company (“Company”):

 

1.                                       Eligibility

 

Any
member of the Board of Directors of the Company who is not also an employee of
Duke Energy Corporation, the Company, or any other company affiliated with Duke
Energy Corporation including but not limited to Duke Energy Field Services, LLC
(“Director”), shall participate under the Plan (“Participant”).

 

1.                                       Fees to be
Deferred and Length of Deferral

 

Each
Director shall have a portion of his/her annual directors fees paid in the form
of TEPPCO Partners phantom LP Units (“Phantom Units”), which shall
automatically be deferred until the director terminates his/her services as a
Director, or if later, a specified age. 
Each Director shall be credited with 100 Phantom Units on the last day
of each calendar quarterly period (i.e. March 31, June 30, September 30
and December 31), provided that Participant was a member of the Board of
Directors during such quarterly period.

 

2.                                       Time and Method
of Election to Defer

 

a.                                       Each
Participant may elect on an election form that has been approved by the
Committee to have the amounts deferred under this Plan become payable upon the
later of termination as a Director or attainment of a specified age; provided,
however, that if the Participant does not file an election, such amounts shall
become payable upon termination as a Director.

 

b.                                      An election to
defer distribution until a specified age shall be irrevocable and shall apply
to all amounts deferred under this Plan unless revoked by a new Deferral
Election Form filed prior to December 31 of the year preceding the
calendar year in which the Participant ceases to be a Director.

 

 

3.                                       Phantom Unit
Account

 

The
Company shall establish a Phantom Unit account (“TEPPCO LP Account”) in the
name of each Participant, which shall be deemed invested in, or liquidated
from, whole and fractional TEPPCO Partners LP Units, based upon the closing
price of a TEPPCO Partners LP Unit as reported on the NYSE Composite Reporting
System as of the trading day immediately following the last day of each
calendar quarterly period,  or the last
day of the year that immediately precedes payment of the balance of the TEPPCO
LP Account in a lump sum or in an annual installment, whichever day is
applicable.  The Participant’s TEPPCO LP
Account shall be increased to reflect the TEPPCO Partners LP Units added on the
last day of each calendar quarterly period as set forth in Section 2 of
this Plan.  The Participant’s TEPPCO LP
Account shall be adjusted for (i) Distribution Equivalents as determined
pursuant to Section 9 of this Plan and (ii) investment gain or loss based
upon the performance of the TEPPCO Partners LP Units.  The Participant’s TEPPCO LP Account shall be
decreased to reflect any payment of the balance thereof.  TEPPCO LP Accounts shall be maintained by the
Company in accordance with such accounting rules and procedures as the Company,
in its sole discretion, shall determine.

 

4.                                       Time of Payment

 

The
Company shall pay the balance of a Participant’s TEPPCO LP Account, in a lump
sum, or in five (5) annual installments, with the lump sum payment or the first
installment payment, as the case maybe, being made by January 15 of the
year next following the later of the year in which the Participant’s service as
a Director terminates or the Participant attains the elected age on the
Deferral Election form.  Subsequent
installment payments (if any) shall be made by January 15 of subsequent
years.  All such payments shall be in
cash.

 

5.                                       Form of Payment

 

A
Participant shall elect to have payment of the balance of the TEPPCO LP Account
made in one of the following forms:

 

a.                                       In a lump sum,
the amount of which shall be the balance of the Participant’s TEPPCO LP
Account, as adjusted for Phantom Unit investment through the last day of the
preceding year, provided Participant may elect to take such lump sum amount,
without interest, in four (4) equal quarterly installments during the calendar
year in which such lump sum amount is payable with the first such quarterly
payment made by January 15th of such year, or

 

b.                                      In five (5) annual
installments, the amount of each installment shall be the balance of the
Participant’s TEPPCO LP Account, as adjusted for Phantom Unit investment
through the last day of the preceding year and 

 

 

for
any installment previously paid, divided by the number of installments not yet
paid.  Participant’s TEPPCO LP Account
shall continue to be credited with Distribution Equivalents until such time as
no balance remains in the account.

 

Notwithstanding
the foregoing:

 

a.                                       If at the close
of the year during which the Participant’s service as a Director terminates or
the year in which the Participant attains the elected age on the Deferral
Election form, whichever is later, the aggregate balance of the Participant’s
TEPPCO LP Account does not exceed $10,000.00, the aggregate balance of the
Participant’s TEPPCO LP Account shall be paid to the Participant in a lump sum
by January 15 of the next following year; or

 

b.                                      In the event of
the Participant’s death, the aggregate balance of the Participant’s TEPPCO LP
Account shall be paid to the Participant’s beneficiary in a lump sum by January 15
of the year next following the year in which the Participant died.

 

7.                                       Death
Beneficiary

 

A
Participant may designate a beneficiary or beneficiaries to receive the
aggregate balance of the Participant’s TEPPCO LP Account that is unpaid at the
time of Participant’s death.  Such
designation, including the revocation of any prior designation by a superseding
designation, shall be made by completing the approved form and filing with the
Secretary of the Company.  A beneficiary
designation by a Participant who is married at the time of his/her death which
fails to name the Participant’s surviving spouse as the sole beneficiary shall
not be effective unless such surviving spouse has consented to the designation
in writing, witnessed by the Secretary of the Company, another representative
of the Committee or notary public, acknowledging the effect of the
designation.  Spousal consent shall not
be required if, at the time of filing such designation, the Participant established
to the satisfaction of the Secretary of the Company that the consent of the
Participant’s spouse could not be obtained because there is no spouse, the
spouse could not be located or there exist such other mitigating circumstances
as may be prescribed by the Secretary of the Company.  Any spouse’s consent (or establishment that
the consent could not be obtained) shall be effective only with respect to that
spouse.  Any Participant may change
his/her beneficiary designation at any time by filing with the Secretary of the
Company a new beneficiary designation (with such spousal consent as may be required).  Such designation shall not become effective
until so filed and unless so filed prior to the time of Participant’s
death.  In the event that a beneficiary
designation is not in effect at the time of Participant’s death or in the event
that no designated beneficiary has survived the Participant’s death, the
Participant’s estate shall be the Participant’s sole beneficiary.

 

 

8.                                       Payments to
Minors and Incompetents

 

Should
the Participant become incompetent or should the Participant’s beneficiary be a
minor or incompetent, the Company is authorized to make payment to a parent or
guardian of such minor or incompetent in full discharge of its obligations to
such minor or incompetent under the Plan.

 

9.                                       Distribution
Equivalents

 

As
soon as possible after each quarterly distribution date, TEPPCO shall credit to
each  Participant’s TEPPCO LP Account a
monetary amount (“Distribution Equivalents”) equal to the product of:

 

1.                                       the total
number of Phantom Units in Participant’s TEPPCO LP Account, multiplied by

 

2.                                       the
distribution paid with respect to a TEPPCO Partners, L.P. Unit for such
quarter.

 

On
the date that a quarterly credit of Phantom Units is made to a Participant’s
TEPPCO LP Account, any monetary balance in such account will be converted to
additional Phantom Units in accordance with the provisions of Section 4 of
this Plan.

 

10.                                 Plan
Administration

 

The
Compensation Committee of the Board of Directors of the Company (the “Committee”)
is the administrator of the Plan, provided that any member of the Compensation
Committee who is eligible under the Plan shall not participate in any matters
or decisions constituting the administration of the Plan.  As Plan administrator, the Committee shall
have full and exclusive authority to control and manage the operation and
administration of the Plan.  The
Committee may adopt such rules, and approve such forms, as may be necessary or
desirable for the administration of the Plan and may delegate any of its duties
and authority to others.

 

The
Committee has the discretion:

 

1.                                       To interpret
and construe the terms and provisions of the Plan (including any rules adopted
for the Plan);

 

2,                                       To correct any
defect, supply any omission, or reconcile any inconsistency in the Plan;

 

3.                                       To decide any
claim arising under the Plan; and

 

 

4.                                       To make factual
determinations in connection with any of the foregoing.

 

A
decision by the Committee with respect to any matter pertaining to the Plan
shall be conclusive and binding on all interested  parties.

 

11.                                 Unfunded Plan

 

The
Plan is unfunded.  To the extent that a
Participant or beneficiary acquires a right to receive payments from the
Company under the Plan, such right shall not be greater than the right of an
unsecured general creditor of the Company and such right shall be an unsecured
claim against the general assets of the Company.  Title to and beneficial ownership of any
assets, whether cash or investments, which the Company may set aside in a
grantor trust or otherwise earmark to pay its obligations hereunder will at all
times remain the property of the Company, and neither the Participant nor the
Participant’s estate or other beneficiary shall have any property interest
whatsoever in any specific assets of the Company.

 

12.                                 Nonassignability

 

The
right of the Participant to receive payment from the Company under the Plan
shall not be assigned, transferred, pledged, or encumbered except as provided
by Section 7.  Any attempted
assignment, transfer, pledge, or encumbrance in violation of this Section 12
shall be null and void.

 

13.                                 Amendment or
Termination

 

The
Plan may be amended from time to time or terminated by the Board of Directors
of the Company, except that no amendment or termination shall, without the
consent of the Participant, impair the rights of the Participant to receive
payment of the aggregate balance of the Participant’s TEPPCO LP Account.

 

14.                                 Governing Law

 

The
Plan, and all determinations made and actions taken pursuant thereto, to extent
not governed by the provisions of the Internal Revenue Code or the securities
laws of the United States, shall be governed by and construed in accordance
with the laws of the state of Texas.

 

 

This
Plan document has been executed on behalf of the Company this 11th day
of February, 2004.

 

	
   

  	
  TEXAS
  EASTERN PRODUCTS PIPELINE COMPANY, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:
  

  	
  /s/
  BARRY R. PEARL

  	
   

  
	
   

  	
  Its:
  

  	
  Chief
  Executive Officer and President

  	
   

  

 

 

TEXAS EASTERN PRODUCTS PIPELINE COMPANY, LLC

AMENDED AND RESTATED

NONEMPLOYEE DIRECTORS FEE DEFERRAL PLAN

 

Deferral Election Form

 

To the Corporate Secretary:

 

Time of Payment

 

Pursuant
to the Plan, I hereby elect to have amounts deferred under this Plan paid on
the January 15th of the year next following the year specified
below (Check one).  I understand that
regardless of my election, amounts deferred under this Plan can be paid no
earlier than the January 15 of the year next following the calendar year
in which my services as a Director terminate. 
I understand that I may change this election only by filing a new
election form with you no later than the close of the calendar year preceding
the calendar year with respect to which the superseding deferral election is to
be effective.

 

o              The
year my services as a Director terminate

 

o              The
year I attain age               ,
if later than the date my services as a Director terminate.

 

 

Payment Form Election

 

To
the extent permitted by the Plan, I hereby elect that payment of the balance of
the TEPPCO LP Account established pursuant to this Plan, which payment shall
commence by January 15 of the year next following my termination of service
as a Director, or if later, my attainment of the age specified above shall be
in the form specified below.  (Check one)
I understand that this election is irrevocable.

 

o             In
one lump sum

 

o             In
five annual installments

 

 

I
acknowledge that I have received a copy of the Plan and have read is provisions
and that I agree to be bound thereby.

 

	
   

  	
   

  	
   

  
	
   

  	
  Print
  Name

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Signature

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Social
  Security Number

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Date

  

 

 

Received
by Corporate Secretary

 

	
   

  	
   

  	
   

  	
   

  
	
  Initial

  	
   

  	
  Date

  	
   

  

 

 

TEXAS EASTERN PRODUCTS PIPELINE COMPANY, LLC

AMENDED AND RESTATED

NONEMPLOYEE DIRECTORS FEE DEFERRAL PLAN

 

Beneficiary Designation Form

 

 

To the Corporate Secretary:

 

I
hereby designate the following individual(s) as my Beneficiary(ies) under the
Plan, provided he or she survives my death:

 

	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Name

  	
   

  	
  Name

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Address

  	
   

  	
  Address

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Social
  Security Number

  	
   

  	
  Social
  Security Number

  	
   

  
	
   

  	
   

  	
   

  	
   

  

 

If
more than one designated Beneficiary survives my death, each surviving
designated Beneficiary shall be paid an equal share unless I have expressly
specified otherwise herein.  I  understand
that if I am married at the date of my death, my surviving spouse shall receive
my entire TEPPCO LP Account, unless my spouse has consented (as  provided below) to not being the sole
beneficiary under the Plan.

 

I
understand that any aggregate balance of my TEPPCO LP Account remaining unpaid
at my death shall be paid to my Beneficiary (ies) in a lump sum.  I understand that in the event no designated
Beneficiary survives my death, my estate shall be my Beneficiary.

 

I
acknowledge that I have received a copy of the Plan and have read its
provisions, and I agree to be bound thereby. 
This beneficiary designation revokes and supersedes any previous
beneficiary designation made by me.

 

 

	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Signature

  	
   

  	
  Date

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Printed
  Name

  	
   

  	
  SSN

  	
   

  

 

 

SPOUSAL CONSENT (must be completed if your spouse is not your sole
beneficiary) I understand
that the Plan states that if we are married as of the date of my spouse’s
death, I will automatically receive my spouse’s remaining deferral benefits,
unless I waive this right.  I consent to
waive this right in accordance with the beneficiary designation set forth
above.  I understand that if I sign
below, my consent is irrevocable unless my spouse revokes this beneficiary
designation.  I further understand that
and acknowledge that if I sign below, no survivor benefit will be payable to
me, except as may be provided above.

 

	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Signature

  	
   

  	
  Date

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Printed
  Name

  	
   

  	
  SSN

  	
   

  

 

ACKNOWLEDGMENT: On this        day of                             
[MONTH AND YEAR].                                    
appeared before me and acknowledge that he/she is the spouse of                            
and that he/she freely and voluntarily signed the foregoing consent for the use
and purpose set forth therein.

 

 

	
  My
  commission expires:

  	
   

  	
  Signature
  of notary public or plan representative:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Received
  by Corporate Secretary:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Initial

  	
  Date

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00078-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00078-of-00352.parquet"}]]