Enterprise Products Partners L.P.

SEC Filings

10-K
ENTERPRISE PRODUCTS PARTNERS L P filed this Form 10-K on 02/28/2018
Entire Document
 


In general, the Class A limited partner earns a quarterly preferred return equal to $0.39 per unit on the number of Enterprise common units contributed by EPCO Holdings to each Employee Partnership, with any residual cash amount remaining in each Employee Partnership being paid to the applicable Class B limited partners on a quarterly basis as a distribution. Upon liquidation of an Employee Partnership, assets having a then current fair market value equal to the Class A limited partner’s capital base in such Employee Partnership will be distributed to the Class A limited partner. Any remaining assets of such Employee Partnership will be distributed to the Class B limited partners of such Employee Partnership as a residual profits interest, which represents the appreciation in value of the Employee Partnership’s assets since the date of EPCO Holdings’ contribution to it, as described above.

Unless otherwise agreed to by EPCO and a majority in interest of the limited partners of each Employee Partnership, such Employee Partnership will terminate at the earliest to occur of (i) 30 days following its vesting date, (ii) a change of control or (iii) a dissolution of such Employee Partnership.  The Class B limited partner interests in PubCo I vest four years from February 22, 2016, and the Class B limited partner interests in PubCo II and PrivCo I vest five years from February 22, 2016.

Individually, each Class B limited partner interest is subject to forfeiture if the participating employee’s employment with EPCO is terminated prior to vesting, with customary exceptions for death, disability and certain retirements. The risk of forfeiture will also lapse upon certain change of control events. Forfeited individual Class B limited partner interests are allocated to the remaining Class B limited partners.

Vesting of Equity-Based Awards in 2017

The following table presents the vesting of restricted common unit and phantom unit awards to our named executive officers during the year ended December 31, 2017.  These amounts are presented on a gross basis and do not reflect any allocation of compensation to affiliates under the ASA.

 
 
Unit Awards
 
   
Number of
       
 
 
Units
   
Value
 
 
 
Acquired on
   
Realized on
 
 
 
Vesting
   
Vesting
 
Named Executive Officer 
 
(#) (1)
 
 
($) (2)
 
A. James Teague:
             
   Restricted common unit awards
   
36,100
   
$
1,038,597
 
   Phantom unit awards
   
105,925
     
3,051,487
 
W. Randall Fowler:
               
   Restricted common unit awards
   
25,000
     
719,250
 
   Phantom unit awards
   
73,738
     
2,124,566
 
Bryan F. Bulawa:
               
   Restricted common unit awards
   
8,124
     
233,727
 
   Phantom unit awards
   
25,074
     
722,454
 
William Ordemann:
               
   Restricted common unit awards
   
10,000
     
287,700
 
   Phantom unit awards
   
35,375
     
1,016,228
 
Graham W. Bacon:
               
   Restricted common unit awards
   
7,750
     
222,968
 
   Phantom unit awards
   
31,750
     
915,073
 
Brent B. Secrest:
               
   Restricted common unit awards
   
3,500
     
100,695
 
   Phantom unit awards
   
8,875
     
255,646
 
                 
(1)   Represents the gross number of common units acquired upon vesting of restricted common unit and phantom unit awards, as applicable, before adjustments for associated tax withholdings.
(2)   Amount determined by multiplying the gross number of restricted common unit and phantom unit awards, as applicable, that vested during 2017 by the closing price of our common units on the date of vesting.
 


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