Document:

EX-10.1

FIRST AMENDMENT TO CREDIT AGREEMENT

THIS FIRST AMENDMENT TO CREDIT AGREEMENT (this “Amendment”) is made as of August 6,
2010 by and among DOUBLE EAGLE PETROLEUM CO., a Maryland corporation (“Borrower”), BANK OF
OKLAHOMA, N.A., individually and as agent (“Administrative Agent”) and as LC Issuer, and
the Lenders party to the Original Credit Agreement defined below (“Lenders”).

W I T N E S S E T H:

WHEREAS, Borrower, Administrative Agent and Lenders entered into that certain Amended and
Restated Credit Agreement dated as of February 5, 2010 (as amended, supplemented, or restated prior
to the date hereof, the “Original Credit Agreement”), for the purpose and consideration
therein expressed, whereby Lenders became obligated to make loans to Borrower as therein provided;
and

WHEREAS, Borrower, Administrative Agent and Lenders desire to amend the Original Credit
Agreement as set forth herein;

NOW, THEREFORE, in consideration of the premises and the mutual covenants and agreements
contained herein and in the Original Credit Agreement, in consideration of the loans which may
hereafter be made by Lenders to Borrower, and for other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereto do hereby agree as
follows:

ARTICLE I.

DEFINITIONS AND REFERENCES

§ 1.1. Terms Defined in the Original Credit Agreement. Unless the context otherwise
requires or unless otherwise expressly defined herein, the terms defined in the Original Credit
Agreement shall have the same meanings whenever used in this Amendment.

§ 1.2. Other Defined Terms. Unless the context otherwise requires, the following terms
when used in this Amendment shall have the meanings assigned to them in this Section 1.2.

“Amendment” means this First Amendment to Credit Agreement.

“Amendment Documents” means this Amendment, the confirmation by Guarantor with
respect to this Amendment and any other document required to be delivered by Borrower
pursuant to Article III hereof.

“Credit Agreement” means the Original Credit Agreement as amended hereby.

ARTICLE II.

AMENDMENTS TO ORIGINAL CREDIT AGREEMENT

§ 2.1. Borrowing Base Redetermination. Pursuant to Section 2.9(a) of the Original
Credit Agreement, Administrative Agent and Lenders have redetermined the Borrowing Base.
Accordingly, Administrative Agent and Lenders hereby notify Borrower that the Borrowing Base is
$55,000,000 from the date hereof until and including the next date as of which the Borrowing Base
is redetermined pursuant to the Credit Agreement, and by its execution hereof, Borrower accepts the
foregoing Borrowing Base.

§ 2.2. Changes in Commitments. Each Lender hereby agrees that its Commitment shall be the
amount set forth opposite such Lender’s name on Schedule 4 to this Amendment, which Schedule 4
attached to this Amendment hereby amends in its entirety the Schedule 4 attached to the Original
Credit Agreement.

§ 2.3. Allocation. Lenders hereby authorize Administrative Agent and Borrower to
request Loans from the Lenders, and to make prepayments of Loans in order to ensure that, upon the
effectiveness of this Amendment, the Loans of the Lenders shall be outstanding on a ratable basis
in accordance with their respective Percentage Shares as set forth on the Lenders Schedule, as
amended hereby, and no such borrowing, prepayment or reduction shall violate any provisions of the
Credit Agreement. Lenders hereby confirm that, from and after the effective date of this
Amendment, all participations of Lenders in respect of Letters of Credit outstanding under the
Credit Agreement shall be based upon the Percentage Shares of the Lenders (after giving effect to
this Amendment).

ARTICLE III.

CONDITIONS OF EFFECTIVENESS

§ 3.1. Effective Date. This Amendment shall become effective as of the date first above
written when and only when:

(a) Amendment Documents. Administrative Agent shall have received duly executed and
delivered counterparts of each Amendment Document (i) in form, substance and date satisfactory to
Administrative Agent, and (ii) in such numbers as Administrative Agent or its counsel may
reasonably request.

(b) Officer’s Certificate. Administrative Agent shall have received a certificate of
the secretary of Borrower certifying as of the date of this Amendment (i) that there have been no
changes to the organizational documents of Borrower since the Closing Date, (ii) the resolutions of
Borrower approving this Amendment, the other Amendment Documents and the related transactions, and
(iii) the signature and incumbency certificates of the officers of Borrower.

(c) Existence & Good Standing Certificates. Administrative Agent shall have received
an existence and good standing certificate from the applicable Governmental Authority of each
Restricted Person’s jurisdiction of incorporation, organization or formation, each dated a recent
date prior to the effectiveness of this Amendment.

(d) Fees. Borrower shall have paid all fees and expenses as required by Section 10.4
of the Credit Agreement, and Administrative Agent shall have received the Borrowing Base Increase
Fee that is due and payable pursuant to Section 5.3 of this Amendment.

(e) Completion of Proceedings. All partnership, corporate and other proceedings taken
or to be taken in connection with the transactions contemplated hereby and all documents incidental
thereto not previously found acceptable by Administrative Agent and its counsel shall be reasonably
satisfactory in form and substance to Administrative Agent and such counsel, and Administrative
Agent and such counsel shall have received all such counterpart originals or certified copies of
such documents as Administrative Agent may reasonably request.

(f) Due Diligence. Administrative Agent and Lenders shall have completed satisfactory
due diligence review of the assets, liabilities, business, operations and condition (financial or
otherwise) of the Restricted Persons, including, a review of their Oil and Gas Properties covered
by the most recently delivered Engineering Report and all legal, financial, accounting,
governmental, environmental, tax and regulatory matters, and fiduciary aspects of the proposed
financing.

(g) Other Documentation. Administrative Agent shall have received all documents and
instruments which Administrative Agent has then reasonably requested, in addition to those
described in this Section 3.1. All such additional documents and instruments shall be reasonably
satisfactory to Administrative Agent in form, substance and date.

(h) No Default. No event shall have occurred and be continuing that would constitute
an Event of Default or a Default.

ARTICLE IV.

REPRESENTATIONS AND WARRANTIES

§ 4.1. Representations and Warranties of Borrower. In order to induce each Lender to enter
into this Amendment, Borrower represents and warrants to each Lender that:

(a) The representations and warranties contained in Article V of the Original Credit Agreement
are true and correct at and as of the time of the effectiveness hereof, except to the extent such
representations and warranties specifically refer to an earlier date, in which case they are true
and correct as of such earlier date.

(b) Borrower is duly authorized to execute and deliver this Amendment and the other Amendment
Documents and is and will continue to be duly authorized to borrow monies and to perform its
obligations under the Credit Agreement. Borrower has duly taken all corporate action necessary to
authorize the execution and delivery of this Amendment and the other Amendment Documents and to
authorize the performance of the obligations of Borrower hereunder and thereunder.

(c) The execution and delivery by Borrower of this Amendment and the other Amendment
Documents, the performance by Borrower of its obligations hereunder and thereunder and the
consummation of the transactions contemplated hereby and thereby do not and will not conflict with
any provision of law, statute, rule or regulation or of the articles of incorporation and bylaws of
Borrower, or of any material agreement, judgment, license, order or permit applicable to or binding
upon Borrower, or result in the creation of any lien, charge or encumbrance upon any assets or
properties of Borrower. Except for those which have been obtained, no consent, approval,
authorization or order of any court or governmental authority or third party is required in
connection with the execution and delivery by Borrower of this Amendment and the other Amendment
Documents or to consummate the transactions contemplated hereby and thereby.

(d) When duly executed and delivered, each of this Amendment and the Credit Agreement will be
a legal and binding obligation of Borrower, enforceable in accordance with its terms, except as
limited by bankruptcy, insolvency or similar laws of general application relating to the
enforcement of creditors’ rights and by equitable principles of general application.

(e) The most recent financial statements of Borrower delivered to Lenders pursuant to Section
6(b) of the Original Credit Agreement fairly present Borrower’s financial position as of the date
thereof.

ARTICLE V.

MISCELLANEOUS

§ 5.1. Ratification of Agreements. The Original Credit Agreement as hereby amended is
hereby ratified and confirmed in all respects. The Loan Documents, as they may be amended or
affected by the various Amendment Documents, are hereby ratified and confirmed in all respects. Any
reference to the Credit Agreement in any Loan Document shall be deemed to be a reference to the
Original Credit Agreement as hereby amended. The execution, delivery and effectiveness of this
Amendment and the other Amendment Documents shall not, except as expressly provided herein or
therein, operate as a waiver of any right, power or remedy of Lenders under the Credit Agreement,
the Notes, or any other Loan Document nor constitute a waiver of any provision of the Credit
Agreement, the Notes or any other Loan Document.

§ 5.2. Survival of Agreements. All representations, warranties, covenants and agreements
of Borrower herein shall survive the execution and delivery of this Amendment and the performance
hereof, including without limitation the making or granting of the Loans, and shall further survive
until all of the Obligations are paid in full. All statements and agreements contained in any
certificate or instrument delivered by any Restricted Person hereunder or under the Credit
Agreement to any Lender shall be deemed to constitute representations and warranties by, and/or
agreements and covenants of, Borrower under this Amendment and under the Credit Agreement.

§ 5.3. Borrowing Base Increase Fee§ 5.4. . In consideration of each Lender’s
agreement to increase the Borrowing Base as described above, Borrower will pay to Administrative
Agent a Borrowing Base Increase Fee in the aggregate amount of $75,000, which will be allocated
equally for the account of each Lender, due and payable on the date hereof (the “Borrowing Base
Increase Fee”).

§ 5.5. Interpretive Provisions. Section 1.4 of the Credit Agreement is incorporated
herein by reference herein as if fully set forth.

§ 5.6. Loan Documents. This Amendment is, and each other Amendment Document is, a Loan
Document, and all provisions in the Credit Agreement pertaining to Loan Documents apply hereto and
thereto.

§ 5.7. Governing Law. This Amendment shall be governed by and construed in accordance the
laws of the State of Colorado and any applicable laws of the United States of America in all
respects, including construction, validity and performance.

§ 5.8. Counterparts; Fax. This Amendment may be separately executed in counterparts and by
the different parties hereto in separate counterparts, each of which when so executed shall be
deemed to constitute one and the same Amendment. This Amendment and the other Amendment Documents
may be validly executed by facsimile or other electronic transmission.

THIS AMENDMENT AND THE OTHER LOAN DOCUMENTS REPRESENT THE FINAL AGREEMENT BETWEEN THE PARTIES
AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF
THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS OF THE PARTIES.

[The remainder of this page has been intentionally left blank.]

IN WITNESS WHEREOF, this Amendment is executed as of the date first above written.

DOUBLE EAGLE PETROLEUM CO.,

as Borrower

	 	 	 	 	 
	By:	 	/s/ Kurtis Hooley .

	 	 	 	 	 

	 	 	 	 	Kurtis Hooley
Chief Financial Officer

	 	 	BANK OF OKLAHOMA, N.A.,

as Administrative Agent, LC Issuer and a Lender

By: /s/ Guy C. Evangelista
        .

	 	 	Guy C. Evangelista

Senior Vice President

KEYBANK NATIONAL ASSOCIATION,

as a Lender

By: /s/ Todd Coker
        .

	 	 	Todd Coker

Vice President

1

SCHEDULE 4

LENDERS SCHEDULE

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	Amount equal to
	 
	 	Commitment/
	 	 	 	 	 	Percentage Share of

	 
	 	Loan Commitment
	 	Percentage Share
	 	Borrowing Base

	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Domestic Lending Office:
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Bank of Oklahoma, N.A.
	 	$	47,727,272.73		 		63.6364	%	 	$	35,000,000	
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Address
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	1675 Broadway
Suite 1650
Denver, CO 80202
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Tel: 303/864-7347
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Fax: 303/864-7349
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Eurodollar Lending Office:
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Same.
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Domestic Lending Office:
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	KeyBank National Association
	 	$	27,272,727.27		 		36.3636	%	 	$	20,000,000	
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Address
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	8115 Preston Road
Suite 500
Preston Common East Tower
Dallas, TX 75225
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Tel: 214/414-2613
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Fax: 214/414-2610
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Eurodollar Lending Office
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Same.
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Total
	 	$	75,000,000		 		100	%	 	$	55,000,000	
	 
	 	 	 	 	 	 	 	 	 	 	 	 

 [First Amendment]

CONSENT AND AGREEMENT

Each undersigned Guarantor hereby (i) consents to the provisions of this Amendment and the
transactions contemplated herein, (ii) ratifies and confirms its Guaranty each dated as of February
5, 2010 made by it for the benefit of Administrative Agent and Lenders executed pursuant to the
Credit Agreement and the other Loan Documents, (iii) agrees that all of its respective obligations
and covenants thereunder shall remain unimpaired by the execution and delivery of this Amendment
and the other documents and instruments executed in connection herewith, and (iv) agrees that its
Guaranty and such other Loan Documents shall remain in full force and effect.

EASTERN WASHAKIE MIDSTREAM, LLC

	 	 	 	 	 
	By:	 	/s/ Kurtis Hooley .

	 	 	 	 	 

	 	 	 	 	Kurtis Hooley
Chief Financial Officer

	 	 	PETROSEARCH ENERGY CORPORATION

	 	 	 	 	 
	By:	 	/s/ Kurtis Hooley .

	 	 	 	 	 

	 	 	 	 	Kurtis Hooley
Chief Financial Officer

2exhibit10_1.htm

Exhibit 10.1

 

 

Option Grant under the

Enterprise Products Company 2005 EPE Long-Term Incentive Plan

 

 

	
Date of Grant:

 

	  
	
Name of Optionee:

 

	  
	
Option Exercise Price per Common Unit:

 

	  
	
Number of Options Granted

      (One Option equals the Right to

      Purchase One Common Unit):

 

	  
	
Option Grant Number:

 

	  

 

Enterprise Products Company (formerly EPCO, Inc.) (the “Company”) is pleased to inform you that you have been granted options (the “Options”) under the Enterprise Products Company 2005 EPE Long-Term Incentive Plan (the “Plan”) to purchase units representing limited partner interests (“Common Units”) of Enterprise GP Holdings L.P. (the “Partnership”) as follows:

 

1.         You are hereby granted the number of Options to acquire a Common Unit set forth above, each such Option having the option exercise price set forth above.

 

2.         The Options shall become fully vested (exercisable) on the earlier of (i) the date that is four years after the Date of Grant set forth above (the “Vesting Date”) and (ii) a Qualifying Termination (as defined below).

 

“Qualifying Termination” means

 

(a)           your status as an employee of the Company or any of the Company Affiliates (as defined below) (collectively, the “Affiliated Group”) is terminated due to your (i) death or (ii) receiving long-term disability benefits under the applicable Affiliated Group member’s long-term disability plan, provided such disability qualifies as a “disability” under Section 409A of the Internal Revenue Code of 1986, as amended (“Section 409A”); or

 

(b)           your employment with any Affiliated Group member is terminated due to your retirement on or after (1) reaching age 62, (2) having 10 or more years of credited service as an employee of one or more Affiliated Group member(s), (3) executing a Retirement Agreement and Release (in such form as the Company may approve from time to time) and (4) otherwise complying with any related retirement policies of the Affiliated Group member in effect at the time of the effective date of your retirement; or

 

(c)           your termination of employment by any Affiliated Group member (or its successor) and each of its Affiliates within one year after a Change of Control (as defined below) and (1) such termination of employment was initiated by the Affiliated Group member (or its successor) other than upon or after the occurrence of a Termination for Cause or (2) if such termination of employment was initiated by you, is upon or after the occurrence of a Termination for Good Reason; provided, however, that you terminate your employment with any Affiliated Group member (or any successor) and its Affiliates within 120 days following the date on which you have actual notice of the event that gives rise to the Termination for Good Reason.

 

“Change of Control” means Duncan shall cease, directly or indirectly, to control the General Partner (including for purposes of clarification, and without limitation, by control that may be deemed to exist based on (i) the facts that cause Duncan’s deemed control of the General Partner to exist as of the date of this Agreement (which existing control is hereby recognized and agreed) or (ii) Duncan’s direct or indirect power to exercise a controlling influence over either the management or policies of the General Partner (as control and power are construed and

 

  

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used under rules and regulations promulgated by the U.S. Securities and Exchange Commission, including any presumptions used thereunder relating to control).

 

“Company Affiliate” means and includes (i) EPCO Holdings, Inc., (ii) Enterprise Products GP, LLC, (iii) Enterprise Products OLPGP, Inc., (iv) Enterprise Products Partners L.P. (“EPD”), (v) EPE Holdings LLC, (vi) Enterprise GP Holdings L.P. (“EPE”), (vii) Enterprise Products Operating LLC, (viii) DEP Holdings LLC, (ix) Duncan Energy Partners L.P. (“DEP”), (x) the respective subsidiaries or affiliates of any of the foregoing entities, (xi) any other entity (A) which is controlled, directly or indirectly, individually, collectively or in any combination, by the Company or any of the foregoing entities or (B) in which any of the Company or any of the foregoing entities has a direct or indirect ownership interest, (xii) any other entity (a) which is controlled, directly or indirectly, by the Estate of Dan L. Duncan, Deceased, his spouse, his descendants or any trusts for any of their respective benefit, individually, collectively or in any combination, or (b) in which any of them has a direct or indirect ownership interest and (xiii) any predecessors, subsidiaries, related entities, officers, directors, shareholders, parent companies, agents, attorneys, employees, successors, or assigns of any of the foregoing.

 

“Duncan” means, collectively, individually or any combination, Dan L. Duncan, his wife, descendants, heirs and/or legatees and/or distributees of Dan L. Duncan’s estate, and/or trusts (including, without limitation, one or more voting trusts) established for the benefit of his wife, descendants, heirs and/or legatees and/or distributees.

 

“Termination for Cause” means the occurrence of any of the following events:

 

(a)           the commission by you of a material act of willful misconduct including, but not limited to, the willful violation of any material law, rule, regulation of a governmental entity or cease and desist order applicable to you or any Affiliated Group member (or its successor) (other than a law, rule or regulation relating to a minor traffic violation or similar offense), or an act which constitutes a breach by you of a fiduciary duty owed to any Affiliated Group member (or its successor); or

 

(b)           the commission by you of an act of dishonesty relating to the performance of your duties, habitual unexcused absence(s) from work, willful failure to perform duties in any material respect (other than any such failure resulting from your incapacity due to physical or mental illness or disability), or gross negligence in the performance of duties resulting in material damage or injury to any Affiliated Group member (or its successor), its reputation or goodwill (provided, however, that in the event of your willful failure to perform duties in any material respect, you shall be provided with written notice of such event and shall be provided with a reasonable opportunity, in no event more than 30 days, to cure such failure to perform your duties); or

 

(c)           any felony conviction of you or any conviction of you involving dishonesty, fraud or breach of trust (other than for a minor traffic violation or similar offense), whether or not in the line of duty.

 

“Termination for Good Reason” means any nonconsensual (a) material reduction in your authority, duties or responsibilities; (b) reduction in your compensation by more than 20 percent from the compensation (excluding Awards pursuant to the Plan or other equity-based compensation) paid by any Affiliated Group member (or its successor) during the completed fiscal year prior to the Change of Control; or (c) change caused by any Affiliated Group member (or its successor) in your office location of more than 50 miles from its location on the date of the Change of Control.

 

3.         Subject to the further provisions of this Agreement and the Plan, the Options, to the extent vested, may be exercised (in whole or in part or in two or more successive parts) during your employment with the Company and the Company Affiliates only during a calendar month during which the Partnership either (a) pays a cash distribution to holders of its Common Units or (b) is required to make adjustments to capital accounts upon the issuance of additional Common Units (a “Qualified Month”) in the first (1st) calendar year following the year in which the Vesting Date occurs (and the Option will expire at the end of such year if it is not so exercised).  In the event your employment with the Company and the Company Affiliates is terminated prior to the Vesting Date for any reason other than a Qualifying Termination, the Options shall automatically and immediately be forfeited and cancelled unexercised on the date of such termination of employment. For purposes of this Option grant award, the

 

  

2

  

 

term “year” shall mean a period comprised of 365 (or 366, as appropriate) days beginning on a day of a calendar year and ending on the day immediately preceding the corresponding day of the next calendar year. For example, if the Date of Grant of an Option grant award is May 20, 2010, one year after the Date of Grant would be May 20, 2011, the Vesting Date would be May 20, 2014 (assuming no earlier Qualifying Termination) and the calendar year in which the Options could be exercised (except as described in Sections 7 and 8 hereof) would be 2015.

 

4.         To the extent vested and subject to the procedures set forth in Addendum No. 2, the Options may be exercised by submitting the “Options Transaction Clearance Request and Tax Withholding Election” (“Transaction Request”) with respect to such exercise which references the Option Grant Number set forth above and the number of Options (or Common Units relating thereto) which are being exercised. Such Transaction Request shall be delivered or mailed to the Company at its corporate offices in Houston, Texas, as follows:

 

Mailing Address: Enterprise Products Company, P.O. Box 4324, Houston, Texas 77210-4324, Attention: Sr. Vice President, Human Resources.

 

Delivery Address: Enterprise Products Company, 1100 Louisiana, 10th Floor, Houston, Texas 77002, Attention: Sr. Vice President, Human Resources

 

An election to exercise shall be made in accordance with Addendum No. 2 and shall be irrevocable. If you are an employee of the Company or a Company Affiliate and such exercise occurs other than in a Qualified Month, it shall be deemed exercised in the next Qualified Month.

 

5.         No exercise shall be effective until you have made arrangements acceptable to the Company and in accordance with the Plan to satisfy the aggregate Exercise Price and all applicable tax withholding requirements of the Company, if any, with respect to such exercise.

 

6.         None of the Options are transferable (by operation of law or otherwise) by you, other than by will or the laws of descent and distribution. If, in the event of your divorce, legal separation or other dissolution of your marriage, your former spouse is awarded ownership of, or an interest in, all or part of the Options granted hereby to you (the “Awarded Options”), (i) to the extent the Awarded Options are not fully vested, the Awarded Options shall automatically and immediately be forfeited and cancelled unexercised as of the original date of the award thereof and (ii) to the extent the Awarded Options are fully vested, the Company, in its sole discretion, may at any time thereafter, during the period in which the Awarded Options are exercisable under the terms of the domestic relations order providing for the assignment, cancel the Awarded Options by delivering to such former spouse Common Units having an aggregate Fair Market Value on the payment date equal to the excess of the aggregate Fair Market Value of the Common Units subject to the Awarded Options over their aggregate Exercise Price.

 

7.         In the event you terminate employment with the Company and the Company Affiliates for any reason (which termination is a “separation from service” under Section 409A of the Internal Revenue Code) other than a Qualifying Termination, the Options, if fully vested, may be exercised by you (or, in the event of your death, by the person to whom your rights shall pass by will or the laws of the descent and distribution (“Beneficiary”)) only during the Qualified Month next following your employment termination date.  If you cease to be an “active, full-time employee”, as determined by the Company in its sole discretion, without regard as to how your status is treated by the Company for any of its other compensation or benefit plans or programs, you will be deemed to have terminated employment with the Company and the Company Affiliates for purposes of this Agreement.

 

8.         In the event of a Qualifying Termination or an “unforeseeable emergency” (as defined in Section 409A) which is approved by the Company, the vested portion of the Options may be exercised by you only during the Qualified Month next following such event. Notwithstanding the above, in the event such Qualifying Termination is due to your death, the vested portion of the Options may be exercised by your Beneficiary only during the second Qualified Month next following such event.

 

9.         Nothing in this Agreement or in the Plan shall confer any right on you to continue employment with any member of the Affiliated Group or restrict the Company or the Company Affiliates from terminating your

 

  

3

  

 

employment at any time. Unless you have a separate written employment agreement with an Affiliated Group member, you are, and shall continue to be, an “at will” employee.

 

10.         Notwithstanding any other provision of this Agreement, the Options shall not be exercisable, and neither the Company nor the Partnership shall be obligated to deliver to you any Common Units, if counsel to the Company determines such exercise or delivery, as the case may be, would violate any law or regulation of any governmental authority or agreement between the Company or the Partnership and any national securities exchange upon which the Common Units are listed or any policy of the Company or any Company Affiliate.

 

11.         Notwithstanding any other provision of this Agreement, if you give notice of exercise within a “quiet period,” as provided in Addendum No. 1 hereto, the timing of the delivery of Common Units pursuant to your exercise shall be governed by the terms of Addendum No. 1. Further, neither the Company nor the Partnership shall have any liability to you for any loss you may suffer (whether by a decrease in the value of the Common Units, failure or inability to receive Partnership distributions or otherwise) from any delay by the Company or the Partnership in delivering to you Common Units in connection with the whole or partial exercise by you of the Options.

 

12.         These Options are subject to the terms of the Plan, which is hereby incorporated by reference as if set forth in its entirety herein, including, without limitation, the ability of the Company, in its discretion, to accelerate the termination of the Option and to amend your Option grant award without your approval. In the event of a conflict between the terms of this Agreement and the Plan, the Plan shall be the controlling document. Capitalized terms that are used, but are not defined, in this Option grant award have the respective meanings provided for in the Plan. The Plan, as in effect on the Date of Grant, is attached hereto as Exhibit A.

                                                                 

	  	
Enterprise Products Company

(formerly EPCO, Inc.)

	  	  
	  	  
	  	  
	  	 	  
	  	
Senior Vice President, Human Resources

                                                                        

  

4

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