Document:

Exhibit 10.3

 

FORM OF SUPPLEMENTAL AGREEMENT TO

EMPLOYMENT AGREEMENT FOR VICE PRESIDENTS

 

SUPPLEMENTAL AGREEMENT

 

This
SUPPLEMENTAL AGREEMENT No. 1 supplements and amends that certain EMPLOYMENT
AGREEMENT, entered into the         day of               ,
         by and between TEXAS EASTERN
PRODUCTS PIPELINE COMPANY, LLC (“TEPPCO”), a Delaware limited liability company
with its principal executive offices in Houston, Texas, and                     
(“Executive”).

 

1.             Section
9 of the EMPLOYMENT AGREEMENT is hereby deleted in its entirety and a new
Section 9 shall be substituted in place of the prior, deleted Section 9 and the
new, substituted Section 9 shall provide as follows:

 

(a)           In
the event that following a change in control as set forth in Section 9(b),
Executive’s employment shall be involuntarily terminated or Executive shall
(i) have a significant reduction in responsibilities or reporting level,
(ii) have a reduction in base or incentive compensation at target by five
percent (5%) or more or (iii) be required to relocate from the regular
assigned work place by more than fifty (50) additional miles from the Executive’s
current work location, he shall be entitled to a lump sum severance payment
equal to two (2) times his base annual salary plus two (2) times target
bonus.  In order to qualify for a
severance benefit on account of being required to relocate by more than fifty
(50) additional miles from Executive’s residence, Executive must provide notice
to TEPPCO pursuant to Section 10 within thirty (30) days after Executive
receives notice pursuant to Section 10 that he is required to
relocate.  In addition, if Executive is
enrolled in any of TEPPCO’s Medical and/or Dental Plan coverages as an active
employee, TEPPCO shall credit Executive with a lump sum in an amount that will
provide an after-tax lump sum (assuming Executive is in the highest marginal
income tax bracket) equal to the current monthly COBRA continuation coverage
cost of Executive’s coverage(s) at the time such amount is credited (including,
where applicable, an HMO option, but excluding any Cafeteria Plan – Medical
Spending Account) for twenty-four (24) consecutive months from the termination
of Executive’s employment with TEPPCO. 
TEPPCO will promptly remit the income taxes due on such amount directly
to the appropriate taxing authority. 
Should Executive obtain subsequent employment and become eligible for
medical and/or dental coverages available to employees of the new employer or
otherwise cease to be covered under TEPPCO’s Medical and/or Dental Plans,
Executive shall immediately notify TEPPCO which shall immediately terminate
Executive’s coverage(s) in its Medical and/or Dental Plans, as
appropriate.  Executive shall have no
further right to any amounts that otherwise would have been applied to pay the
monthly COBRA continuation coverage cost of medical and/or dental continuation
coverage provided hereunder.  Should
Executive be eligible for retiree coverages under the TEPPCO Medical and Dental
Plans at the termination of employment, TEPPCO and Executive will take the same
actions with respect to the retiree coverages under the TEPPCO Medical and
Dental Plan as would have been taken under the above provisions hereof had
Executive been enrolled as an active employee except that the lump sum to be
credited to Executive will be determined with reference to the current monthly
cost of

 

 

Executive’s cost
of retiree coverage at the time such lump sum amount is credited.  All payments under this Section 9(a)
shall be made not later than thirty (30) days after the termination of
employment.

 

(b)           For
the purposes of this Section 9, a “change in control” shall be deemed to have
occurred if:

 

(i)            any
person is or becomes the beneficial owner, directly or indirectly, of
securities of TEPPCO representing more than fifty percent 

(50%) of the combined voting power of TEPPCO’s then outstanding voting
securities; or

 

(ii)           all
or substantially all of the assets and business of TEPPCO or the Partnership
are sold, transferred or assigned to, or otherwise acquired by, any other
person or persons; or

 

(iii)          the
dissolution or liquidation of Partnership or TEPPCO; or

 

(iv)          adoption
by the Board of Directors of TEPPCO of a resolution to the effect that any
person has acquired effective control of the business and affairs of TEPPCO, or
the Partnership.

 

(c)           The
term “beneficial owner” shall have the meaning set forth in Section 13(d) of
the Securities Exchange Act of 1934, as amended, and in the regulations
promulgated thereunder.  The term “person”
shall mean an individual, corporation, partnership, trust, unincorporated
business organization, association or other entity provided that the term “person”
shall not include (i) Duke Energy Corporation (“Duke”), (ii) any affiliate of
Duke, including but not limited to Duke Energy Field Services, L.P., or (iii)
any employee benefit plan maintained by Duke or any affiliate of Duke.  For the purpose of this Section 9, “control”
or “controlled” when used with respect to any specified person or entity means
the power to direct the management and policies of that person or entity
whether through the ownership of voting securities, membership interest or by
contract.

 

2.             Except
as hereby amended by this SUPPLEMENTAL AGREEMENT No. 1, the EMPLOYMENT
AGREEMENT is hereby ratified and affirmed in all respects.

 

IN WITNESS
WHEREOF, the parties hereto have executed this SUPPLEMENTAL AGREEMENT No. 1
this          day of                     ,
200    .

 

	
  TEXAS EASTERN PRODUCTS

  	
  EXECUTIVE:

  
	
  PIPELINE COMPANY, LLC

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  	
  Printed Name:

  	
   

  	
   

  
						

 

2Exhibit 10.4

 

FORM OF SUPPLEMENTAL AGREEMENT TO

EMPLOYMENT AGREEMENT FOR SENIOR VICE
PRESIDENTS

 

SUPPLEMENTAL AGREEMENT

 

This
SUPPLEMENTAL AGREEMENT No. 1 supplements and amends that certain EMPLOYMENT
AGREEMENT, entered into the        day of            ,
        by and between TEXAS EASTERN
PRODUCTS PIPELINE COMPANY, LLC (“TEPPCO”), a Delaware limited liability company
with its principal executive offices in Houston, Texas, and                    
(“Executive”).

 

1.             Section
9 of the EMPLOYMENT AGREEMENT is hereby deleted in its entirety and a new
Section 9 shall be substituted in place of the prior, deleted Section 9 and the
new, substituted Section 9 shall provide as follows:

 

(a)           (1)   In
the event that within twelve (12) months following a change in control as set
forth in Section 9(b), Executive’s employment shall be involuntarily terminated
or Executive shall (i) have a
significant reduction in responsibilities or reporting level, (ii) have
a reduction in base or incentive compensation at target by five percent (5%) or
more or (iii) be required to relocate from the regular assigned work place by
more than fifty (50) additional miles from the Executive’s current work
location, he shall be entitled to a lump sum severance payment equal to three
(3) times his annual base salary plus three (3) times target bonus.  In order to qualify for a severance benefit
on account of being required to relocate by more than fifty (50) additional
miles from Executive’s residence, Executive must provide notice to TEPPCO pursuant
to Section 10 within thirty (30) days after Executive receives notice pursuant
to Section 10 that he is required to relocate. 
In addition, if Executive is enrolled in any of TEPPCO’s Medical or
Dental Plan coverages as an active employee, TEPPCO shall credit Executive with
a lump sum in an amount that will provide an after-tax lump sum (assuming
Executive is in the highest marginal income tax bracket) equal to the current
monthly COBRA continuation coverage cost of Executive’s coverage(s) at the time
such amount is credited (including, where applicable, an HMO option, but
excluding any Cafeteria Plan – Medical Spending Account) for thirty-six (36)
consecutive months from the termination of Executive’s employment with
TEPPCO.  TEPPCO will promptly remit the
income taxes due on such amount directly to the appropriate taxing
authority.  Should Executive obtain
subsequent employment and become eligible for medical and/or dental coverages
available to employees of the new employer or otherwise cease to be covered
under TEPPCO’s Medical and/or Dental Plans, Executive shall immediately notify
TEPPCO which shall immediately terminate Executive’s coverage(s) in its Medical
and/or Dental Plans, as appropriate. 
Executive shall have no further right to any amounts that otherwise
would have been applied to pay the monthly COBRA continuation coverage cost of
medical and/or dental continuation coverage provided hereunder.  Should Executive be eligible for retiree
coverages under the TEPPCO Medical and Dental Plans at the termination of
employment, TEPPCO and Executive will take the same actions with respect to the
retiree coverages under the TEPPCO Medical and Dental Plan as would have been
taken under the above provisions hereof had Executive been enrolled as an active
employee except that the lump sum to be credited to Executive will be
determined

 

 

with
reference to the current monthly cost of Executive’s cost of retiree coverage
at the time such lump sum amount is credited. 
All payments under this Section 9(a)(1) shall
be made not later than thirty (30) days after the termination of employment.

 

(2)           In the event that
after twelve (12) months following a change in control as set forth in Section
9(b), Executive’s employment shall be involuntarily terminated or Executive
shall (i) have a significant reduction in responsibilities or reporting level,
(ii) have a reduction in base or incentive compensation at target by five
percent (5%) or more or (iii) be required to relocate from the regular assigned
work place by more than fifty (50) additional miles from the Executive’s
current work location, he shall be entitled to a lump sum severance payment
equal to two (2) times his base annual salary plus two (2) times target
bonus.  In order to qualify for a
severance benefit on account of being required to relocate by more than fifty
(50) additional miles from Executive’s residence, Executive must provide notice
to TEPPCO pursuant to Section 10 within thirty (30) days after Executive
receives notice pursuant to Section 10 that he is required to relocate.  In addition, if Executive is enrolled in any
of TEPPCO’s Medical or Dental Plan coverages as an active employee, TEPPCO
shall credit Executive with a lump sum in an amount that will provide an
after-tax lump sum (assuming Executive is in the highest marginal income tax
bracket) equal to the current monthly COBRA continuation coverage cost of
Executive’s coverage(s) at the time such amount is credited (including, where
applicable, an HMO option, but excluding any Cafeteria Plan – Medical Spending
Account) for twenty-four (24) consecutive months from the termination of
Executive’s employment with TEPPCO. 
TEPPCO will promptly remit the income taxes due on such amount directly
to the appropriate taxing authority. 
Should Executive obtain subsequent employment and become eligible for
medical and/or dental coverages available to employees of the new employer or
otherwise cease to be covered under TEPPCO’s Medical and/or Dental Plans,
Executive shall immediately notify TEPPCO which shall immediately terminate
Executive’s coverage(s) in its Medical and/or Dental Plans, as
appropriate.  Executive shall have no
further right to amounts that otherwise would have been applied to pay the
monthly COBRA continuation coverage cost of medical and/or dental continuation
coverage provided hereunder.  Should
Executive be eligible for retiree coverages under the TEPPCO Medical and Dental
Plans at the termination of employment, TEPPCO and Executive will take the same
actions with respect to the retiree coverages under the TEPPCO Medical and
Dental Plan as would have been taken under the above provisions hereof had
Executive been enrolled as an active employee except that the lump sum to be
credited to Executive will be determined with reference to the current monthly
cost of Executive’s cost of retiree coverage at the time such lump sum amount
is credited.  All payments under this
Section 9(a)(2) shall be made not later than
thirty (30) days after the date of the Change in Control.

 

(b)           For
the purposes of this Section 9, a “change in control” shall be deemed to have
occurred if:

 

(i)            any
person is or becomes the beneficial owner, directly or indirectly, of
securities of TEPPCO representing more than fifty percent (50%) of the combined
voting power of TEPPCO’s then outstanding voting securities; or

 

2

 

(ii)           all
or substantially all of the assets and business of TEPPCO or the Partnership
are sold, transferred or assigned to, or otherwise acquired by, any other
person or persons; or

 

(iii)          the dissolution or liquidation of Partnership or TEPPCO; or

 

(iv)          adoption by the Board of Directors of TEPPCO of a resolution
to the effect that any person has acquired effective control of the business
and affairs of TEPPCO, or the Partnership.

 

(c)           The
term “beneficial owner” shall have the meaning set forth in Section 13(d)
of the Securities Exchange Act of 1934, as amended, and in the regulations
promulgated thereunder.  The term “person”
shall mean an individual, corporation, partnership, trust, unincorporated
business organization, association or other entity provided that the term “person”
shall not include (i) Duke Energy Corporation (“Duke”), (ii) any affiliate of
Duke, including but not limited to Duke Energy Field Services, L.P., or (iii)
any employee benefit plan maintained by Duke or any affiliate of Duke.  For the purpose of this Section 9, “control”
or “controlled” when used with respect to any specified person or entity means
the power to direct the management and policies of that person or entity
whether through the ownership of voting securities, membership interest or by
contract.

 

2.             Except as hereby amended by this SUPPLEMENTAL AGREEMENT No.
1, the EMPLOYMENT AGREEMENT is hereby ratified and affirmed in all respects.

 

IN WITNESS
WHEREOF, the parties hereto have executed this SUPPLEMENTAL AGREEMENT No. 1
this        day of                     ,
200     .

 

	
  TEXAS EASTERN PRODUCTS PIPELINE COMPANY, LLC

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  EXECUTIVE:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Printed Name:

  	
   

  	
   

  	
   

  
						

 

3

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