THIRD AMENDED AND RESTATED AGREEMENT OF LIMITED PARTNERSHIP OF TE PRODUCTS PIPELINE COMPANY, LIMITED PARTNERSHIP
Exhibit 10.66
THIRD AMENDED AND RESTATED
AGREEMENT OF LIMITED PARTNERSHIP OF
TE PRODUCTS PIPELINE COMPANY, LIMITED PARTNERSHIP
THIS THIRD AMENDED AND RESTATED AGREEMENT OF LIMITED PARTNERSHIP OF TE PRODUCTS PIPELINE
COMPANY, LIMITED PARTNERSHIP, dated as of February 27, 2007 is entered into by and between TEPPCO
GP, Inc., a Delaware corporation, as the General Partner (as defined below) and TEPPCO Partners,
L.P., a Delaware limited partnership (“TEPPCO”), as the Limited Partner (as defined below).
WHEREAS, the General Partner and the Limited Partner entered into the Second Amended and
Restated Agreement of Limited Partnership of TE Products Pipeline Company, Limited Partnership,
dated as of September 21, 2001 (the “Previous Partnership Agreement”);
WHEREAS, on December 8, 2006, the agreement of limited partnership of TEPPCO, which is the
Limited Partner and the sole stockholder of the General Partner, was amended and restated, among
other things, to delete therefrom provisions requiring approval of the unitholders of TEPPCO to
amend the partnership agreement of the Partnership under specified circumstances, such provisions
serving no meaningful purpose once the General Partner became a wholly-owned subsidiary of TEPPCO;
and
WHEREAS, the General Partner and the Limited Partner desire to amend and restate the Previous
Partnership Agreement in its entirety to make such changes as they have deemed appropriate in light
of matters described in the foregoing recitals;
NOW, THEREFORE, in consideration of the covenants, conditions and agreements contained herein,
the General Partner and the Limited Partner do hereby amend and restate the Previous Partnership
Agreement in its entirety as follows:
ARTICLE I
DEFINITIONS
DEFINITIONS
The following definitions shall for all purposes, unless otherwise clearly indicated to the
contrary, apply to the terms used in this Agreement.
“Affiliate” means, with respect to any Person, any other Person that directly or indirectly
controls, is controlled by or is under common control with, the Person in question. As used
herein, the term “control” means the possession, directly or indirectly, of the power to direct or
cause the direction of the management and policies of a Person, whether through ownership of voting
securities, by contract or otherwise.
“Certificate of Limited Partnership” means the Certificate of Limited Partnership filed with
the Secretary of State of the State of Delaware as referenced in Section 2.5, as such Certificate
may be amended and/or restated from time to time.
“Code” means the Internal Revenue Code of 1986, as amended and in effect from time to time, as
interpreted by the applicable regulations thereunder. Any reference herein to a specific section
or sections of the Code shall be deemed to include a reference to any corresponding provision of
future law.
“Delaware Act” means the Delaware Revised Uniform Limited Partnership Act, 6 Del. C. Section
17-101 et seq., as amended, supplemented or restated from time to time, and any successor to such
statute.
“General Partner” means TEPPCO GP, Inc., a Delaware corporation, in its capacity as the
general partner of the Partnership, and any successor to TEPPCO GP, Inc., as general partner.
“Indemnitee” has the meaning given such term in Section 10.1(a).
“Limited Partner” means TEPPCO, in its capacity as the limited partner of the Partnership, and
any other limited partner admitted to the Partnership from time to time and that is shown as a
limited partner on the books and records of the Partnership.
“Partner” means the General Partner or the Limited Partner.
“Partnership” means TE Products Pipeline Company, Limited Partnership, a Delaware limited
partnership.
“Partnership Interest” means the interest of a Partner in the Partnership.
“Percentage Interest” means, as of the date of such determination, (a) 0.001% as to the
General Partner and (b) 99.999% as to the Limited Partner.
“Person” means an individual or a corporation, partnership, limited liability company, trust,
unincorproated organization, association or other entity.
“Previous Partnership Agreement” has the meaning given such term in the recitals.
“Subsidiary” means a Person controlled by the Partnership directly, or indirectly through one
or more intermediaries.
“TEPPCO” means TEPPCO Partners, L.P., a Delaware limited partnership.
ARTICLE II
ORGANIZATIONAL MATTERS
ORGANIZATIONAL MATTERS
Section 2.1 Continuation. The General Partner and the Limited Partner hereby continue this
Partnership as a limited partnership pursuant to the provisions of the Delaware Act. This amendment
and restatement shall become effective on the date of this Agreement. Except as expressly provided
to the contrary in this Agreement, the rights, duties (including fiduciary duties), liabilities and
obligations of the Partners and the administration, dissolution and termination of the Partnership
shall be governed by the Delaware Act. The Partnership Interest of each Partner shall be personal
property for all purposes.
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Section 2.2 Name. The name of the Partnership shall be “TE Products Pipeline Company, Limited
Partnership” The Partnership’s business may be conducted under any other name or names deemed
necessary or appropriate by the General Partner, including, without limitation, the name of the
General Partner or any Affiliate thereof. The words “Limited Partnership,” “L.P.,” “Ltd.” or
similar words or letters shall be included in the Partnership’s name where necessary for the
purposes of complying with the laws of any jurisdiction that so requires. The General Partner in
its sole discretion may change the name of the Partnership at any time and from time to time.
Section 2.3 Registered Office; Principal Office. Unless and until changed by the General Partner,
the registered office of the Partnership in the State of Delaware shall be located at The
Corporation Trust Center, 1209 Orange Street, New Castle County, Xxxxxxxxxx, Xxxxxxxx 00000 and the
registered agent for service of process on the Partnership in the State of Delaware at such
registered office shall be The Corporation Trust Company. The principal office of the Partnership
and the address of the General Partner shall be 0000 Xxxxxxxxx Xxxxxx, Xxxxxxx, Xxxxx 00000, or
such other place as the General Partner may from time to time designate. The Partnership may
maintain offices at such other place or places within or outside the State of Delaware as the
General Partner deems advisable.
Section 2.4 Term. The Partnership commenced upon the filing of the Certificate of Limited
Partnership in accordance with the Delaware Act and shall continue in existence until the close of
Partnership business on December 31, 2084, or until the earlier termination of the Partnership in
accordance with the provisions of this Agreement. The existence of the Partnership as a separate
legal entity shall continue until the cancellation of the Certificate of Limited Partnership as
provided in the Delaware Act.
Section 2.5 Certificate of Limited Partnership. The General Partner has caused the Certificate of
Limited Partnership to be filed with the Secretary of State of the State of Delaware as required by
the Delaware Act and shall use all reasonable efforts to cause to be filed such other certificates
or documents as may be determined by the General Partner in its sole discretion to be reasonable
and necessary or appropriate for the formation, continuation, qualification and operation of a
limited partnership (or a partnership in which the limited partners have limited liability) in the
State of Delaware or any other state in which the Partnership may elect to do business or own
property. To the extent that such action is determined by the General Partner in its sole
discretion to be reasonable and necessary or appropriate, the General Partner shall file amendments
to and restatements of the Certificate of Limited Partnership and do all things to maintain the
Partnership as a limited partnership (or a partnership in which the limited partners have limited
liability) under the laws of the State of Delaware or of any other state in which the Partnership
may elect to do business or own property.
ARTICLE III
PURPOSE
PURPOSE
Section 3.1 Purpose and Business. The purpose and nature of the business to be conducted by the
Partnership shall be (a) to engage in the common carrier transportation of refined petroleum
products and liquefied petroleum gases and related products and related terminaling, storage and
other activities through ownership of one or more pipeline systems,
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(b) to engage directly in, or to enter into or form any corporation, partnership, joint venture,
limited liability company or similar arrangement to engage in, any business activity that may be
lawfully conducted by a limited partnership organized pursuant to the Delaware Act and, in
connection therewith, to exercise all of the rights and powers conferred upon the Partnership
pursuant to the agreements relating to such business activity, (c) to do anything necessary or
appropriate to the foregoing (including, without limitation, the making of capital contributions or
loans to any Subsidiary or in connection with its involvement in the activities referred to in
clause (b) of this sentence), and (d) to engage in any other business activity as permitted under
Delaware law.
Section 3.2 Powers. The Partnership shall be empowered to do any and all acts and things
necessary, appropriate, proper, advisable, incidental to or convenient for the furtherance and
accomplishment of the purposes and business described in Section 3.1 and for the protection and
benefit of the Partnership.
ARTICLE IV
CAPITAL CONTRIBUTIONS
CAPITAL CONTRIBUTIONS
Section 4.1 Prior Contributions. Prior to the date hereof, the Limited Partner and the General
Partner, or their predecessors, have made capital contributions to the Partnership.
Section 4.2 Additional Contributions. A Partner may contribute additional cash or property to the
capital of the Partnership, but no Partner has any obligation pursuant to this Agreement to make
any such contribution.
Section 4.3 Return of Contributions; Other Provisions Relating to Contributions. No Partner shall
be entitled to withdraw any part of its capital contributions or its capital account or to receive
any distribution from the Partnership, except as provided in this Agreement. An unrepaid capital
contribution is not a liability of the Partnership or any Partner, and no interest shall accrue on
capital contributions or on balances in Partners’ capital accounts.
Section 4.4 Loans. A Partner may make secured or unsecured loans to the Partnership, but no
Partner has any obligation pursuant to this Agreement to make any such loan. Loans by a Partner to
the Partnership shall not be considered capital contributions.
ARTICLE V
CAPITAL ACCOUNTS; ALLOCATIONS; DISTRIBUTIONS
CAPITAL ACCOUNTS; ALLOCATIONS; DISTRIBUTIONS
Section 5.1 Capital Accounts. The Partnership shall maintain for each Partner a separate capital
account in accordance with the regulations issued pursuant to Section 704 of the Code and as
determined by the General Partner as consistent therewith.
Section 5.2 Allocations for Tax and Capital Account Purposes. For federal income tax purposes,
each item of income, gain, loss, deduction and credit of the Partnership shall be allocated among
the Partners in accordance with their Percentage Interests, except that the General Partner shall
have the authority to make such other allocations as are necessary and appropriate to comply with
Section 704 of the Code and the regulations issued pursuant thereto.
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Section 5.3 Distributions. The Partnership shall make distributions to the Partners at such times,
and in such forms and amounts, as the General Partner may from time to time determine.
Distributions in liquidation of the Partnership shall be made in accordance with the positive
balances in the Partners’ respective capital accounts maintained pursuant to Section 5.1. All
other distributions shall be made to the Partners in accordance with their respective Percentage
Interests.
ARTICLE VI
MANAGEMENT AND OPERATIONS OF BUSINESS
MANAGEMENT AND OPERATIONS OF BUSINESS
The General Partner shall conduct, direct and exercise full control over all activities of the
Partnership. Except as otherwise expressly provided in this Agreement, all management powers over
the business and affairs of the Partnership shall be exclusively vested in the General Partner. In
addition to the powers now or hereafter granted a general partner of a limited partnership under
applicable law or which are granted to the General Partner under any other provision of this
Agreement, the General Partner shall have full power and authority to do all things and on such
terms as it, in its sole discretion, may deem necessary or desirable to conduct the business of the
Partnership, to exercise all powers set forth in Section 3.2 and to effectuate the purposes set
forth in Section 3.1.
ARTICLE VII
RIGHTS AND OBLIGATIONS OF LIMITED PARTNER
RIGHTS AND OBLIGATIONS OF LIMITED PARTNER
The Limited Partner shall have no liability under this Agreement except as expressly provided
in this Agreement or the Delaware Act. The Limited Partner shall not take part in the operation,
management or control (within the meaning of the Delaware Act) of the Partnership’s business,
transact any business in the Partnership’s name or have the power to sign documents for or
otherwise bind the Partnership. The transaction of any such business by the General Partner, any
of its Affiliates or any officer, director, employee, partner, agent or trustee of the General
Partner or any of its Affiliates, in its capacity as such, shall not affect, impair or eliminate
the limitations on the liability of the Limited Partner under this Agreement.
ARTICLE VIII
DISSOLUTION AND LIQUIDATION
DISSOLUTION AND LIQUIDATION
The Partnership shall dissolve, and its affairs shall be wound up, upon (a) the expiration of
its term as provided in Section 2.4, (b) the occurrence of an event of withdrawal of the General
Partner under the Delaware Act, (c) an election to dissolve the Partnership by the General Partner
that is approved by the Limited Partner, (d) entry of a decree of judicial dissolution of the
Partnership pursuant to the provisions of the Delaware Act, (e) the sale of all or substantially
all of the assets and properties of the Partnership and its Subsidiaries, taken as a whole or (f)
the dissolution of TEPPCO, if such dissolution occurs while TEPPCO is a Partner; provided, however,
that the Partnership shall not be dissolved or required to be wound up by reason of any event of
withdrawal of the General Partner described in the preceding clause (b), if (i) at the time of such
event of withdrawal, there is at least one other general partner of the Partnership who carries on
the business of the Partnership (any remaining or successor general partner being hereby authorized
to carry on the business of the Partnership) or (ii) within 90 days
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after the withdrawal, the Limited Partner agrees in writing or votes to continue the business
of the Partnership and to the appointment, effective as of the date of withdrawal, of one or more
general partners of the Partnership.
ARTICLE IX
AMENDMENT OF PARTNERSHIP AGREEMENT
AMENDMENT OF PARTNERSHIP AGREEMENT
The General Partner may amend any provision of this Agreement without the consent of the
Limited Partner and may execute, swear to, acknowledge, deliver, file and record whatever documents
may be required in connection therewith, except that any amendment that would increase the
liability of the Limited Partner or materially and adversely affect the rights of the Limited
Partner under this Agreement requires the consent of the Limited Partner.
ARTICLE X
INDEMNIFICATION
INDEMNIFICATION
Section 10.1 Indemnification.
(a) To the fullest extent permitted by law but subject to the limitations expressly provided
in this Agreement, the General Partner, the Limited Partner and any Person who is or was an officer
or director of the General Partner (each, an “Indemnitee”) shall each be indemnified and held
harmless by the Partnership from and against any and all losses, claims, damages, liabilities
(joint or several), expenses (including, without limitation, legal fees and expenses), judgments,
fines, penalties, interest, settlements and other amounts arising from any and all claims, demands,
actions, suits or proceedings, whether civil, criminal, administrative or investigative, in which
any Indemnitee may be involved, or is threatened to be involved, as a party or otherwise, by reason
of its status as an Indemnitee; provided, that the Indemnitee shall not be indemnified and held
harmless if there has been a final and non-appealable judgment entered by a court of competent
jurisdiction determining that, in respect of the matter for which the Indemnitee is seeking
indemnification pursuant to this Section 10.1, the Indemnitee acted in bad faith or engaged in
fraud, willful misconduct or, in the case of a criminal matter, acted with knowledge that the
Indemnitee’s conduct was unlawful. Any indemnification pursuant to this Section 10.1 shall be made
only out of the assets of the Partnership, it being agreed that the General Partner shall not be
personally liable for such indemnification and shall have no obligation to contribute or loan any
monies or property to the Partnership to enable it to effectuate such indemnification.
(b) To the fullest extent permitted by law, expenses (including, without limitation, legal
fees and expenses) incurred by an Indemnitee in defending any claim, demand, action, suit or
proceeding shall, from time to time, be advanced by the Partnership prior to the final disposition
of such claim, demand, action, suit or proceeding upon receipt by the Partnership of an undertaking
by or on behalf of the Indemnitee to repay such amount if it shall be determined that the
Indemnitee is not entitled to be indemnified as authorized in this Section 10.1.
(c) The indemnification provided by this Section 10.1 shall be in addition to any other rights
to which an Indemnitee may be entitled under any agreement, as a matter of law
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or otherwise, both as to actions in the Indemnitee’s capacity as an Indemnitee and as to
actions in any other capacity, and shall continue as to an Indemnitee who has ceased to serve in
such capacity.
(d) The Partnership may purchase and maintain (or reimburse the General Partner or its
Affiliates for the cost of) insurance, on behalf of the General Partner and such other Persons as
the General Partner shall determine, against any liability that may be asserted against or expense
that may be incurred by such Person in connection with the Partnership’s activities, whether or not
the Partnership would have the power to indemnify such Person against such liabilities under the
provisions of this Agreement.
(e) In no event shall the Limited Partner be subjected to personal liability by reason of the
indemnification provisions set forth in this Agreement, whether by action of an Indemnitee or
otherwise.
(f) An Indemnitee shall not be denied indemnification in whole or in part under this Section
10.1 because the Indemnitee had an interest in the transaction with respect to which the
indemnification applies if the transaction was otherwise permitted by the terms of this Agreement.
(g) The provisions of this Section 10.1 are for the benefit of the Indemnitees, their heirs,
successors and assigns and shall not be deemed to create any rights for the benefit of any other
Persons.
(h) No amendment, modification or repeal of this Section 10.1 or any provision hereof shall in
any manner terminate, reduce or impair the right of any past, present or future Indemnitee to be
indemnified by the Partnership, nor the obligation of the Partnership to indemnify any such
Indemnitee under and in accordance with the provisions of this Section 10.1 as in effect
immediately prior to such amendment, modification or repeal with respect to claims arising from or
relating to matters occurring, in whole or in part, prior to such amendment, modification or
repeal, regardless of when such claims may arise or be asserted.
(i) THE PROVISIONS OF THE INDEMNIFICATION PROVIDED IN THIS SECTION 10.1 ARE INTENDED BY THE
PARTIES TO APPLY EVEN IF SUCH PROVISIONS HAVE THE EFFECT OF EXCULPATING THE INDEMNITEE FROM LEGAL
RESPONSIBILITY FOR THE CONSEQUENCES OF SUCH PERSON’S NEGLIGENCE, FAULT OR OTHER CONDUCT.
Section 10.2 Liability of Indemnitees.
(a) Notwithstanding anything to the contrary set forth in this Agreement, no Indemnitee shall
be liable for monetary damages to the Partnership or any Partner for losses sustained or
liabilities incurred as a result of any act or omission of an Indemnitee unless there has been a
final and non-appealable judgment entered by a court of competent jurisdiction determining that, in
respect of the matter in question, the Indemnitee acted in bad faith or engaged in fraud, willful
misconduct or, in the case of a criminal matter, acted with knowledge that the Indemnitee’s conduct
was criminal.
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(b) Subject to its obligations and duties as General Partner set forth in Article VI, the
General Partner may exercise any of the powers granted to it by this Agreement and perform any of
the duties imposed upon it hereunder either directly or by or through its agents, and the General
Partner shall not be responsible for any misconduct or negligence on the part of any such agent
appointed by the General Partner in good faith.
(c) Any amendment, modification or repeal of this Section 10.2 or any provision hereof shall
be prospective only and shall not in any way affect the limitations on the liability of an
Indemnitee under this Section 10.2 as in effect immediately prior to such amendment, modification
or repeal with respect to claims arising from or relating to matters occurring, in whole or in
part, prior to such amendment, modification or repeal, regardless of when such claims may arise or
be asserted.
ARTICLE XI
BOOKS AND RECORDS
BOOKS AND RECORDS
The General Partner shall keep or cause to be kept at the principal office of the Partnership
appropriate books and records with respect to the Partnership’s business including, without
limitation, all books and records necessary to provide to the Limited Partner any information,
lists, and copies of documents required to be provided pursuant to the Delaware Act. Any such
records may be maintained in other than a written form if such form is capable of conversion into a
written form within a reasonable time.
ARTICLE XII
GENERAL PROVISIONS
GENERAL PROVISIONS
Section 12.1 Addresses and Notices. Any notice, demand, request or report required or permitted to
be given or made to a Partner under this Agreement shall be in writing and shall be deemed given or
made if received by it at the principal office of the Partnership referred to in Section 2.3.
Section 12.2 Titles and Captions. All article or section titles or captions in this Agreement are
for convenience only. They shall not be deemed part of this Agreement and in no way define, limit,
extend or describe the scope or intent of any provisions hereof. Except as specifically provided
otherwise, references to “Articles” and “Sections” are to articles and sections of this Agreement.
Section 12.3 Pronouns and Plurals. Whenever the context may require, any pronoun used in this
Agreement shall include the corresponding masculine, feminine or neuter forms, and the singular
form of nouns, pronouns and verbs shall include the plural and vice-versa.
Section 12.4 Binding Effect. This Agreement shall be binding upon and inure to the benefit of the
parties hereto and their successors, legal representatives and permitted assigns.
Section 12.5 Integration. This Agreement constitutes the entire agreement among the parties hereto
pertaining to the subject matter hereof and supersedes all prior agreements and understandings
pertaining thereto.
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Section 12.6 Creditors. None of the provisions of this Agreements shall be for the benefit of, or
shall be enforceable by, any creditor of the Partnership.
Section 12.7 Waiver. No failure by any party to insist upon the strict performance of any
covenant, duty, agreement or condition of this Agreement or to exercise any right or remedy
consequent upon a breach thereof shall constitute waiver of any such breach or any other covenant,
duty, agreement or condition.
Section 12.8 Applicable Law. This Agreement shall be construed in accordance with and governed by
the laws of the State of Delaware, without regard to the principles of conflicts of law.
Section 12.9 Invalidity of Provisions. If any provision of this Agreement is or becomes invalid,
illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining
provisions contained herein shall not be affected thereby.
Section 12.10 Counterparts. This Agreement may be executed in counterparts, all of which together
shall constitute an agreement binding on all the parties hereto, notwithstanding that all such
parties are not signatories to the original or the same counterpart.
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IN WITNESS WHEREOF, this Agreement has been duly executed by the General Partner and the
Limited Partner as of the date first above written.
| GENERAL PARTNER: | ||||||
| TEPPCO GP, INC. | ||||||
| By: | /s/ XXXXXXX X. XXXXXX | |||||
| Title: Vice President and Chief Financial Officer | ||||||
| LIMITED PARTNER: | ||||||
| TEPPCO PARTNERS, L.P. | ||||||
| By: Texas Eastern Products Pipeline Company, | ||||||
| LLC, its general partner | ||||||
| By: | /s/ XXXXX X. XXXXXXXX | |||||
| Title: President and Chief Executive Officer | ||||||
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