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UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): September 7, 2006
ENTERPRISE PRODUCTS PARTNERS L.P.
(Exact name of registrant as specified in its charter)
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Delaware
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1-14323
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76-0568219 |
(State or other jurisdiction of
incorporation )
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(Commission
File Number)
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(IRS Employer
Identification No.) |
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1100 Louisiana St, 10th Floor, Houston, Texas
(Address of principal executive offices)
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77002
(Zip Code) |
Registrants telephone number, including area code: (713) 381-6500
Check the appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following provisions (see
General Instruction A.2 below):
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17
CFR 240.14d-2(b)) |
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17
CFR 240.13e-4(c)) |
TABLE OF CONTENTS
Item 8.01 Other Events.
On September 7, 2006, Enterprise Products Partners L.P. (the Partnership) entered into an
underwriting agreement for the public offering of 11,000,000 common units, and up to 1,650,000
additional common units to cover over-allotments, if any. A copy of the Underwriting Agreement is
filed as Exhibit 1.1 hereto. Closing of the issuance and sale of the common units is scheduled for
September 12, 2006.
On September 8, 2006, the Partnership filed with the Securities and Exchange Commission a
prospectus supplement dated September 7, 2006 to the accompanying base prospectus dated March 23,
2005 included in the Partnerships registration statement on Form S-3 (Registration No. 333-123150), as amended. The prospectus supplement was filed
pursuant to Rule 424(b)(5) under the Securities Act of 1933, as amended, in connection with the
above described offering. Certain opinions related to such registration statement and the offering
are filed as exhibits to this Current Report on Form 8-K.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
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1.1 |
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Underwriting Agreement dated September 7, 2006, among
Enterprise Products Partners L.P., Enterprise Products OLPGP, Inc.,
Enterprise Products Operating L.P. and the underwriters listed on Schedule
I thereto. |
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5.1 |
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Opinion of Andrews Kurth LLP. |
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8.1 |
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Opinion of Andrews Kurth LLP. |
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23.1 |
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Consent of Andrews Kurth LLP (included in Exhibits 5.1 and 8.1 hereto). |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly
caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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ENTERPRISE PRODUCTS PARTNERS L.P.
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By: |
Enterprise Products GP, LLC,
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its general partner |
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Date: September 8, 2006 |
By: |
/s/ Michael J. Knesek
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Michael J. Knesek |
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Senior Vice President, Controller and Principal Accounting Officer of Enterprise
Products GP, LLC |
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EXHIBIT INDEX
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Exhibit No. |
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Description |
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1.1
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Underwriting Agreement dated September 7, 2006, among
Enterprise Products Partners L.P., Enterprise Products OLPGP, Inc.,
Enterprise Products Operating L.P. and the underwriters listed on Schedule
I thereto. |
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5.1
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Opinion of Andrews Kurth LLP. |
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8.1
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Opinion of Andrews Kurth LLP. |
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23.1
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Consent of Andrews Kurth LLP (included in Exhibits 5.1 and 8.1 hereto). |
exv1w1
EXHIBIT 1.1
Execution Version
ENTERPRISE PRODUCTS PARTNERS L.P.
11,000,000 Common Units
Representing Limited Partner Interests
UNDERWRITING AGREEMENT
September 7, 2006
Citigroup Global Markets Inc.
UBS Securities LLC
As Representatives of the several
Underwriters
named in Schedule I attached hereto,
c/o Citigroup Global Markets Inc.
388 Greenwich Street
New York, New York 10013
c/o UBS Securities LLC
299 Park Avenue
New York, New York 10173
Ladies and Gentlemen:
Enterprise Products Partners L.P., a Delaware limited partnership (the Partnership),
proposes to issue and sell 11,000,000 common units (the Firm Units), each representing a
limited partner interest in the Partnership (the Common Units), to the underwriters
listed on Schedule I hereto (the Underwriters). In addition, the Partnership
proposes to grant to the Underwriters an option to purchase up to an additional 1,650,000 Common
Units, on the terms and for the purposes set forth in Section 2 (the Option Units). The
Firm Units and the Option Units, if purchased, are hereinafter collectively called the
Units. Capitalized terms used but not defined herein shall have the same meanings given
them in the Partnership Agreement (as defined herein).
This is to confirm the agreement among the Partnership, Enterprise Products OLPGP, Inc., a
Delaware corporation (the OLPGP), and Enterprise Products Operating L.P., a Delaware
limited partnership (the Operating Partnership and collectively with the Partnership and
the OLPGP, the Enterprise Parties), and the Underwriters concerning the purchase of the
Firm Units and the Option Units from the Partnership by the Underwriters.
1. Representations, Warranties and Agreements of the Enterprise Parties. Each of the
Enterprise Parties represents and warrants to, and agrees with, the Underwriters that:
(a) A registration statement on Form S-3 (File No. 333-123150) relating to the Units (i) has
been prepared by the Partnership pursuant to the requirements of the Securities Act of
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1933, as
amended (the Securities Act), and the rules and regulations (the Rules and
Regulations) of the Securities and Exchange Commission (the Commission) thereunder;
(ii) has been filed with the Commission under the Securities Act; and (iii) is effective under the
Securities Act. Copies of such registration statement and any amendment thereto have been
delivered by the Partnership to you as the representatives (the Representatives) of the
Underwriters. As used in this Agreement:
(i) Applicable Time means 5:45 p.m. (New York City time) on the date of this
Agreement, which the Underwriters have informed the Partnership is a time prior to the time
of the first sale of the Units;
(ii) Base Prospectus means the base prospectus included in the Registration
Statement at the Applicable Time;
(ii) Effective Date means any date as of which any part of such registration
statement relating to the Units became, or is deemed to have become, effective under the
Securities Act in accordance with the Rules and Regulations;
(iii) Issuer Free Writing Prospectus means each free writing prospectus (as
defined in Rule 405 of the Rules and Regulations) prepared by or on behalf of the
Partnership or used or referred to by the Partnership in connection with the offering of the
Units;
(iv) Preliminary Prospectus means any preliminary prospectus relating to the
Units included in such registration statement or filed with the Commission pursuant to Rule
424(b) of the Rules and Regulations, including the Base Prospectus and any preliminary
prospectus supplement thereto relating to the Units;
(v) Pricing Disclosure Package means, as of the Applicable Time, the most
recent Preliminary Prospectus, together with (A) each Issuer Free Writing Prospectus filed
by the Partnership on or before the Applicable Time, and (B) the number of Units, the public
offering price for the Units and the First Delivery Date (as defined in Section 4), which
are set forth on Schedule II hereto and will be included on the cover page of the
Prospectus;
(vi) Prospectus means the final prospectus relating to the Units, including
the Base Prospectus and any prospectus supplement thereto relating to the Units, as filed
with the Commission pursuant to Rule 424(b) of the Rules and Regulations; and
(vii) Registration Statement means, collectively, the various parts of such
registration statement, each as amended as of the Effective Date for such part, including
any Preliminary Prospectus or the Prospectus and all exhibits to such registration
statement.
Any reference to any Preliminary Prospectus or the Prospectus shall be deemed to refer to and
include any documents incorporated by reference therein pursuant to Form S-3 under the
Securities Act as of the date of such Preliminary Prospectus or the Prospectus, as the case may be.
Any reference to the most recent Preliminary Prospectus shall be deemed to refer to the
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latest Preliminary Prospectus included in the Registration Statement or filed pursuant to Rule
424(b) on or prior to the date hereof. Any reference to any amendment or supplement to any
Preliminary Prospectus or the Prospectus shall be deemed to refer to and include any document filed
under the Securities Exchange Act of 1934, as amended (the Exchange Act), after the date
of such Preliminary Prospectus or the Prospectus, as the case may be, and incorporated by reference
in such Preliminary Prospectus or the Prospectus, as the case may be; and any reference to any
amendment to the Registration Statement shall be deemed to include the most recent annual report of
the Partnership on Form 10-K filed with the Commission pursuant to Section 13(a) or 15(d) of the
Exchange Act after the Effective Date that is incorporated by reference in the Registration
Statement. The Commission has not issued any order preventing or suspending the use of any
Preliminary Prospectus or the Prospectus or suspending the effectiveness of the Registration
Statement, and no proceeding or examination for such purpose has been instituted or, to the
Partnerships knowledge, threatened by the Commission. The Commission has not notified the
Partnership of any objection to the use of the form of the Registration Statement.
(b) Seasoned Issuer and Not an Ineligible Issuer. The Partnership has been since December 1, 2005
and continues to be a seasoned issuer (as defined in Rule 405) eligible to use Form S-3 for the
offering of the Units, including not having been an ineligible issuer (as defined in Rule 405) at
any such time or date.
(c) Form of Documents. The Registration Statement conformed and will conform in all material
respects on the Effective Date and on the applicable Delivery Date, and any amendment to the
Registration Statement filed after the date hereof will conform in all material respects when
filed, to the requirements of the Securities Act and the Rules and Regulations. The Preliminary
Prospectus conformed, and the Prospectus will conform, in all material respects when filed with the
Commission pursuant to Rule 424(b) to the requirements of the Securities Act and the Rules and
Regulations. The documents incorporated by reference in any Preliminary Prospectus or the
Prospectus conformed, and any further documents so incorporated will conform, when filed with the
Commission, in all material respects to the requirements of the Exchange Act or the Securities Act,
as applicable, and the rules and regulations of the Commission thereunder.
(d) Registration Statement. The Registration Statement did not, as of the Effective Date,
contain an untrue statement of a material fact or omit to state a material fact required to be
stated therein or necessary to make the statements therein not misleading; provided that no
representation or warranty is made as to information contained in or omitted from the Registration
Statement in reliance upon and in conformity with written information furnished to the Partnership
through the Representatives by or on behalf of any Underwriter specifically for inclusion therein,
which information is specified in Section 8(b).
(e) Prospectus. The Prospectus will not, as of its date and on the applicable Delivery Date,
contain an untrue statement of a material fact or omit to state a material fact necessary to make
the statements therein, in the light of the circumstances under which they were made, not
misleading; provided that no representation or warranty is made as to information contained in
or omitted from the Prospectus in reliance upon and in conformity with written information
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furnished to the Partnership through the Representatives by or on behalf of any Underwriter
specifically for inclusion therein, which information is specified in Section 8(b).
(f) Documents Incorporated by Reference. The documents incorporated by reference in any
Preliminary Prospectus or the Prospectus did not, and any further documents filed and incorporated
by reference therein will not, when filed with the Commission, contain an untrue statement of a
material fact or omit to state a material fact necessary to make the statements therein, in the
light of the circumstances under which they were made, not misleading.
(g) Pricing Disclosure Package. The Pricing Disclosure Package did not, as of the Applicable
Time, contain an untrue statement of a material fact or omit to state a material fact necessary to
make the statements therein, in the light of the circumstances under which they were made, not
misleading; provided that no representation or warranty is made as to information contained in or
omitted from the Pricing Disclosure Package in reliance upon and in conformity with written
information furnished to the Partnership through the Representatives by or on behalf of any
Underwriters specifically for inclusion therein, which information is specified in Section 8(b).
(h) Issuer Free Writing Prospectus and Pricing Disclosure Package. Each Issuer Free Writing
Prospectus (including, without limitation, any road show that is a free writing prospectus under
Rule 433), when considered together with the Pricing Disclosure Package as of the Applicable Time,
did not contain an untrue statement of a material fact or omit to state a material fact necessary
to make the statements therein, in the light of the circumstances under which they were made, not
misleading; provided that no representation or warranty is made as to information contained in or
omitted from any Issuer Free Writing Prospectus in reliance upon and in conformity with written
information furnished to the Partnership through the Representatives by or on behalf of any
Underwriters specifically for inclusion therein, which information is specified in Section 8(b).
(i) Each Issuer Free Writing Prospectus. Each Issuer Free Writing Prospectus conformed or
will conform in all material respects to the requirements of the Securities Act and the Rules and
Regulations on the date of first use, and the Partnership has complied with any filing requirements
applicable to such Issuer Free Writing Prospectus pursuant to the Rules and Regulations. The
Partnership has not made any offer relating to the Units that would constitute an Issuer Free
Writing Prospectus without the prior written consent of the Representatives, except as set forth on
Schedule V hereto. The Partnership has retained in accordance with the Rules and
Regulations all Issuer Free Writing Prospectuses that were not required to be filed pursuant to the
Rules and Regulations (it being understood that, as of the date hereof, the Partnership has not
retained any Issuer Free Writing Prospectus for the three-year period required thereby). Each
Issuer Free Writing Prospectus does not include any information that conflicts with the information
contained in the Registration Statement, including any document incorporated therein and any
prospectus supplement deemed to be a part thereof that has not been superseded or modified.
(j) Formation and Qualification of the Partnership Entities. Each of Enterprise Products GP, LLC, a Delaware limited liability company (the General
Partner), the Partnership, the OLPGP, the Operating Partnership and their respective
subsidiaries listed on
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Schedule III hereto (each, a Partnership Entity and
collectively, the Partnership Entities, and the subsidiaries of the Partnership listed on
Schedule III hereto, the Subsidiaries) has been duly formed or incorporated, as
the case may be, and is validly existing in good standing under the laws of its respective
jurisdiction of formation or incorporation, as the case may be, with all corporate, limited
liability company or partnership, as the case may be, power and authority necessary to own or hold
its properties and conduct the businesses in which it is engaged and, in the case of the General
Partner and the OLPGP, to act as general partner of the Partnership and the Operating Partnership,
respectively, in each case in all material respects as described in the Registration Statement and
the Prospectus. Each Partnership Entity is duly registered or qualified to do business and is in
good standing as a foreign corporation, limited liability company or limited partnership, as the
case may be, in each jurisdiction in which its ownership or lease of property or the conduct of its
businesses requires such qualification or registration, except where the failure to so qualify or
register would not, individually or in the aggregate, have a material adverse effect on the
condition (financial or otherwise), results of operations, business or prospects of the Partnership
Entities taken as a whole (a Material Adverse Effect) or subject the limited partners of
the Partnership to any material liability or disability.
(k) Ownership of General Partner. Enterprise GP Holdings L.P., a Delaware limited partnership
(EPE), owns 100% of the issued and outstanding membership interests in the General
Partner; such membership interests have been duly authorized and validly issued in accordance with
the limited liability company agreement of the General Partner, as amended and/or restated on or
prior to the date hereof (the GP LLC Agreement); and EPE owns such membership interests
free and clear of all liens, encumbrances, security interests, equities, charges or claims other
than those in favor of lenders of EPE.
(l) Ownership of General Partner Interest in the Partnership. The General Partner is the sole
general partner of the Partnership with a 2.0% general partner interest in the Partnership
(including the right to receive Incentive Distributions (as defined in the Partnership Agreement)
(the Incentive Distribution Rights)); such general partner interest has been duly
authorized and validly issued in accordance with the agreement of limited partnership of the
Partnership, as amended and/or restated on or prior to the date hereof (the Partnership
Agreement); and the General Partner owns such general partner interest free and clear of all
liens, encumbrances, security interests, equities, charges or claims.
(m) Ownership of the OLPGP. The Partnership owns 100% of the issued and outstanding capital stock
in the OLPGP; such capital stock has been duly authorized and validly issued in accordance with the
bylaws of the OLPGP, as amended or restated on or prior to the date hereof (the OLPGP
Bylaws), and the certificate of incorporation of the OLPGP, as amended and restated on or
prior to the date hereof (the OLPGP Certificate of Incorporation), and is fully paid and
non-assessable; and the
Partnership owns such capital stock free and clear of all liens, encumbrances, security interests,
equities, charges or claims.
(n) Ownership of Operating Partnership. (i) The OLPGP is the sole general partner of the Operating
Partnership with a 0.001% general partner interest in the Operating Partnership; such general
partner interest has been duly authorized and validly issued in accordance with the agreement of
limited partnership of the Operating Partnership, as amended and/or restated on or prior to the
date hereof (the Operating Partnership Agreement); and the OLPGP owns such
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general partner interest free and clear of all liens, encumbrances, security interests, equities, charges
or claims; and (ii) the Partnership is the sole limited partner of the Operating Partnership with a
99.999% limited partner interest in the Operating Partnership; such limited partner interest has
been duly authorized and validly issued in accordance with the Operating Partnership Agreement and
is fully paid (to the extent required under the Operating Partnership Agreement) and non-assessable
(except as such non-assessability may be affected by Section 17-607 of the Delaware Revised Uniform
Limited Partnership Act (the Delaware LP Act) and as otherwise described in the
Prospectus); and the Partnership owns such limited partner interest free and clear of all liens,
encumbrances, security interests, equities, charges or claims.
(o) Capitalization. As of the date hereof and immediately prior to the issuance of Units pursuant
to this Agreement, the issued and outstanding limited partner interests of the Partnership consist
of 419,184,217 Common Units. All of such outstanding Common Units and the limited partner
interests represented thereby have been duly authorized and validly issued in accordance with the
Partnership Agreement and are fully paid (to the extent required under the Partnership Agreement)
and non-assessable (except as such non-assessability may be affected by Section 17-607 of the
Delaware LP Act and as otherwise disclosed in the Prospectus); and EPCO, Inc. (EPCO), Dan L.
Duncan and their affiliates (including EPE) collectively beneficially own 146,379,464 Common Units
free and clear of all liens, encumbrances, security interests, equities, charges or claims, other
than liens in favor of lenders of EPCO and its affiliates.
(p) Valid Issuance of the Units. At the First Delivery Date or the Second Delivery Date, as the
case may be, the Firm Units or the Option Units, as the case may be, and the limited partner
interests represented thereby, will be duly authorized by the Partnership and, when issued and
delivered to the Underwriters against payment therefor in accordance with the terms hereof, will be
validly issued, fully paid (to the extent required under the Partnership Agreement) and
non-assessable (except as such non-assessability may be affected by Section 17-607 of the Delaware
LP Act and as otherwise disclosed in the Prospectus).
(q) No Preemptive Rights, Registration Rights or Options. Except for rights pursuant to the
Partnership Agreement and the Unitholder Rights Agreement, dated as of September 17, 1999, by and
among Tejas Energy, LLC, Tejas Midstream Enterprises, LLC, the Partnership, the Operating
Partnership, Enterprise Products Company, the General
Partner and EPC Partners II, Inc., as amended to date (the Unitholder Rights Agreement),
which have been effectively complied with, satisfied or waived, there are no preemptive rights or
other rights to subscribe for or to purchase, nor any restriction upon the voting or transfer of,
any partnership or membership interests or capital stock in the Partnership Entities, in each case
pursuant to the organizational documents or any agreement or other instrument to which any
Partnership Entity is a party or by which any of them may be bound. Neither the filing of the
Registration Statement nor the offering or sale of the Units as contemplated by this Agreement
gives rise to any rights for or relating to the registration of any Common Units or other
securities of the Partnership or any of its Subsidiaries, other than registration rights pursuant
to the Partnership Agreement and the Registration Rights Agreement, dated as of September 17, 1999,
among the Partnership and Tejas Energy, LLC, as amended to date (the Shell Registration Rights
Agreement), which have been effectively complied with, satisfied or waived. Except for
options granted pursuant to employee benefits plans, qualified unit option plans or other employee
compensation plans and
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rights to purchase Common Units under the Partnerships distribution
reinvestment plan (the DRIP), there are no outstanding options or warrants to purchase
any partnership or membership interests or capital stock in any Partnership Entity.
(r) Authority. Each of the Enterprise Parties has all requisite right, power and authority to
execute and deliver this Agreement and to perform its respective obligations hereunder. The
Partnership has all requisite power and authority to issue, sell and deliver the Units in
accordance with and upon the terms and conditions set forth in this Agreement, the Partnership
Agreement, the Registration Statement and Prospectus. All action required to be taken by the
Enterprise Parties or any of their security holders, partners or members for (i) the due and proper
authorization, execution and delivery of this Agreement, (ii) the authorization, issuance, sale and
delivery of the Units and (iii) the consummation of the transactions contemplated hereby has been
duly and validly taken.
(s) Ownership of Subsidiaries. All of the outstanding shares of capital stock, partnership
interests or membership interests, as the case may be, of each Subsidiary have been duly and
validly authorized and issued, and are fully paid and non-assessable (except as such
non-assessability may be affected by Section 17-607 of the Delaware LP Act, in the case of
partnership interests, or Section 18-607 of the Delaware LLC Act, in the case of membership
interests, and except as otherwise disclosed in the Prospectus). Except as described in the
Prospectus, the Partnership and/or the Operating Partnership, as the case may be, directly or
indirectly, owns the shares of capital stock, partnership interests or membership interests in each
Subsidiary as set forth on Schedule III hereto free and clear of all liens, encumbrances
(other than contractual restrictions on transfer contained in the applicable constituent
documents), security interests, equities, charges, claims or restrictions upon voting or any other
claim of any third party. None of the Enterprise Parties has any subsidiaries other than as set
forth on Schedule III hereto that, individually or in the aggregate, would be deemed to be
a significant subsidiary as such term is defined in Rule 405 of the Securities Act.
(t) Authorization, Execution and Delivery of Agreement. This Agreement has been duly authorized and validly executed and delivered by each of the
Enterprise Parties.
(u) Authorization, Execution and Enforceability of Agreements. (i) The GP LLC Agreement has been
duly authorized, executed and delivered by EPE and is a valid and legally binding agreement of EPE,
enforceable against EPE in accordance with its terms, (ii) the Partnership Agreement has been duly
authorized, executed and delivered by the General Partner and is a valid and legally binding
agreement of the General Partner, enforceable against the General Partner in accordance with its
terms; and (iii) the Operating Partnership Agreement has been duly authorized, executed and
delivered by each of the OLPGP and the Partnership and is a valid and legally binding agreement of
each of the OLPGP and the Partnership, enforceable against each of the OLPGP and the Partnership in
accordance with its terms; provided that, with respect to each such agreement listed in this
Section (u)(i)-(iii), the enforceability thereof may be limited by bankruptcy, insolvency,
fraudulent transfer, reorganization, moratorium and similar laws relating to or affecting
creditors rights generally and by general principles of equity (regardless of whether such
enforceability is considered in a proceeding in equity or at law).
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(v) No Conflicts. None of the (i) offering, issuance and sale by the Partnership of the Units,
(ii) the execution, delivery and performance of this Agreement by the Enterprise Parties, or (iii)
consummation of the transactions contemplated hereby (A) conflicts or will conflict with or
constitutes or will constitute a violation of the certificate of limited partnership or agreement
of limited partnership, certificate of formation or limited liability company agreement,
certificate or articles of incorporation or bylaws or other organizational documents of any of the
Partnership Entities, (B) conflicts or will conflict with or constitutes or will constitute a
breach or violation of, or a default (or an event that, with notice or lapse of time or both, would
constitute such a default) under, any indenture, mortgage, deed of trust, loan agreement, lease or
other agreement or instrument to which any of the Partnership Entities is a party or by which any
of them or any of their respective properties may be bound, (C) violates or will violate any
statute, law or regulation or any order, judgment, decree or injunction of any court, arbitrator or
governmental agency or body having jurisdiction over any of the Partnership Entities or any of
their properties or assets, or (D) results or will result in the creation or imposition of any
lien, charge or encumbrance upon any property or assets of any of the Partnership Entities, which
conflicts, breaches, violations, defaults or liens, in the case of clauses (B) or (D), would,
individually or in the aggregate, have a Material Adverse Effect.
(w) No Consents. No permit, consent, approval, authorization, order, registration, filing or qualification
(consent) of or with any court, governmental agency or body having jurisdiction over the
Partnership Entities or any of their respective properties is required in connection with (i) the
offering, issuance and sale by the Partnership of the Units, (ii) the execution, delivery and
performance of this Agreement by the Enterprise Parties or (iii) the consummation by the Enterprise
Parties of the transactions contemplated by this Agreement, except for (A) such
consents required under the Securities Act, the Exchange Act and state securities or Blue Sky laws
in connection with the purchase and distribution of the Units by the Underwriters and (B) such
consents that have been, or prior to any such Delivery Date will be, obtained.
(x) No Default. None of the Partnership Entities is (i) in violation of its certificate of limited
partnership or agreement of limited partnership, certificate of formation or limited liability
company agreement, certificate or articles of incorporation or bylaws or other organizational
documents, (ii) in violation of any law, statute, ordinance, administrative or governmental rule or
regulation applicable to it or of any order, judgment, decree or injunction of any court or
governmental agency or body having jurisdiction over it or has failed to obtain any license,
permit, certificate, franchise or other governmental authorization or permit necessary to the
ownership of its property or to the conduct of its business, or (iii) in breach, default (and no
event that, with notice or lapse of time or both, would constitute such a default has occurred or
is continuing) or violation in the performance of any obligation, agreement or condition contained
in any bond, debenture, note or any other evidence of indebtedness or in any agreement, indenture,
lease or other instrument to which it is a party or by which it or any of its properties may be
bound, which breach, default or violation, in the case of clause (ii) or (iii), would, if
continued, have a Material Adverse Effect, or could materially impair the ability of any of the
Partnership Entities to perform their obligations under this Agreement.
(y) Independent Registered Public Accounting Firm. Deloitte & Touche LLP, who has audited the
audited financial statements contained or incorporated by reference in the
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Registration Statement
and the most recent Preliminary Prospectus (or any amendment or supplement thereto) is an
independent registered public accounting firm with respect to the Partnership and the General
Partner within the meaning of the Securities Act and the applicable rules and regulations
thereunder adopted by the Commission and the Public Company Accounting Oversight Board (United
States) (the PCAOB).
(z) Financial Statements. The historical financial statements (including the related notes and
supporting schedule) contained or incorporated by reference in the Registration Statement and the
most recent Preliminary Prospectus (and any amendment or supplement thereto) (i) comply in all
material respects with the applicable requirements under the Securities Act and the Exchange Act
(except that certain supporting schedules are omitted), (ii) present fairly in all material
respects the financial position, results of operations and cash flows of the entities purported to
be shown thereby on the basis stated therein at the respective dates or for the respective periods,
and (iii) have been prepared in accordance with accounting principles generally accepted in the
United States of America consistently applied throughout the periods involved, except to the extent
disclosed therein. The other financial information of the General Partner and the Partnership and
its subsidiaries, including non-GAAP financial measures, if any, contained or incorporated by
reference in the Registration Statement and the most recent Preliminary Prospectus (and any
amendment or supplement thereto) has been derived from the accounting
records of the General Partner, the Partnership and its subsidiaries, and fairly presents the
information purported to be shown thereby. Nothing has come to the attention of any of the
Partnership Entities that has caused them to believe that the statistical and market-related data
included in the Registration Statement and the most recent Preliminary Prospectus is not based on
or derived from sources that are reliable and accurate in all material respects.
(aa) No Distribution of Other Offering Materials. None of the Partnership Entities has distributed
or, prior to the completion of the distribution of the Units, will distribute, any offering
material in connection with the offering and sale of the Units other than any Preliminary
Prospectus, the Prospectus, any Issuer Free Writing Prospectus to which the Representatives have
consented in accordance with Section 1(i), 5(l) or 5(m) and any Issuer Free Writing Prospectus set
forth on Schedule V hereto and any other materials, if any, permitted by the Securities
Act, including Rule 134 of the Rules and Regulations.
(bb) Conformity to Description of Units. The Units, when issued and delivered against payment
therefor as provided herein, will conform in all material respects to the descriptions thereof
contained or incorporated by reference in the Registration Statement and the most recent
Preliminary Prospectus.
(cc) Certain Transactions. Except as disclosed in the Registration Statement and the most recent
Preliminary Prospectus (or any amendment or supplement thereto), subsequent to the respective dates
as of which such information is given in the Registration Statement and the most recent Preliminary
Prospectus (or any amendment or supplement thereto), (i) none of the Partnership Entities has
incurred any liability or obligation, indirect, direct or contingent, or entered into any
transactions, not in the ordinary course of business, that, individually or in the aggregate, is
material to the Partnership Entities, taken as a whole, and (ii) there has not been any material
change in the capitalization or material increase in the long-term debt of the Partnership
9
Entities, or any dividend or distribution of any kind declared, paid or made by the Partnership on
any class of its partnership interests.
(dd) No Omitted Descriptions; Legal Descriptions. There are no legal or governmental proceedings
pending or, to the knowledge of the Enterprise Parties, threatened or contemplated, against any of
the Partnership Entities, or to which any of the Partnership Entities is a party, or to which any
of their respective properties or assets is subject, that are required to be described in the
Registration Statement or the most recent Preliminary Prospectus but are not described as required,
and there are no agreements, contracts, indentures, leases or other instruments that are required
to be described in the Registration Statement or the most recent Preliminary Prospectus or to be
filed as an exhibit to the Registration Statement that are not described or filed as required by
the Securities Act or the Rules and Regulations or the Exchange Act or the rules and regulations
thereunder. The statements included in or incorporated by reference into the Registration
Statement and the most recent Preliminary Prospectus under the headings Description of Our Common
Units, Cash Distribution Policy and Description of Our Partnership Agreement, and, in the
prospectus supplements of the most recent Preliminary Prospectus, Material Tax Consequences,
insofar as
such statements summarize legal matters, agreements, documents or proceedings discussed therein,
are accurate and fair summaries of such legal matters, agreements, documents or proceedings.
(ee) Title to Properties. Each Partnership Entity has (i) good and indefeasible title to all its
interests in its properties that are material to the operations of the Partnership Entities, taken
as a whole, and (ii) good and marketable title in fee simple to, or valid rights to lease or
otherwise use, all items of other real and personal property which are material to the business of
the Partnership Entities, in each case free and clear of all liens, encumbrances, claims and
defects and imperfections of title except such as (A) do not materially affect the value of such
property and do not materially interfere with the use made and proposed to be made of such property
by the Partnership Entities, (B) could not reasonably be expected to have a Material Adverse Effect
or (C) are described, and subject to the limitations contained, in the most recent Preliminary
Prospectus.
(ff) Rights-of-Way. Each of the Partnership Entities has such consents, easements, rights-of-way
or licenses from any person (rights-of-way) as are necessary to conduct its business in
the manner described in the most recent Preliminary Prospectus, subject to such qualifications as
may be set forth in the most recent Preliminary Prospectus and except for such rights-of-way the
failure of which to have obtained would not have, individually or in the aggregate, a Material
Adverse Effect; each of the Partnership Entities has fulfilled and performed all its material
obligations with respect to such rights-of-way and no event has occurred which allows, or after
notice or lapse of time would allow, revocation or termination thereof or would result in any
impairment of the rights of the holder of any such rights-of-way, except for such revocations,
terminations and impairments that will not have a Material Adverse Effect, subject in each case to
such qualification as may be set forth in the most recent Preliminary Prospectus; and, except as
described in the most recent Preliminary Prospectus, none of such rights-of-way contains any
restriction that is materially burdensome to the Partnership Entities, taken as a whole.
10
(gg) Permits. Each of the Partnership Entities has such permits, consents, licenses, franchises,
certificates and authorizations of governmental or regulatory authorities (permits) as
are necessary to own or lease its properties and to conduct its business in the manner described in
the most recent Preliminary Prospectus, subject to such qualifications as may be set forth in the
most recent Preliminary Prospectus and except for such permits that, if not obtained, would not
have, individually or in the aggregate, a Material Adverse Effect; each of the Partnership Entities
has fulfilled and performed all its material obligations with respect to such permits in the manner
described, and subject to the limitations contained in the most recent Preliminary Prospectus, and
no event has occurred that would prevent the permits from being renewed or reissued or that allows,
or after notice or lapse of time would allow, revocation or termination thereof or results or would
result in any impairment of the rights of the holder of any such permit, except for such
non-renewals, non-issues, revocations, terminations and impairments that would not, individually or
in the aggregate, have a Material Adverse Effect. None of the Partnership
Entities has received notification of any revocation or modification of any such permit or has any
reason to believe that any such permit will not be renewed in the ordinary course.
(hh) Books and Records; Accounting Controls. The Partnership Entities (i) make and keep books,
records and accounts that, in reasonable detail, accurately and fairly reflect the transactions and
dispositions of assets, and (ii) maintain systems of internal accounting controls sufficient to
provide reasonable assurances that (A) transactions are executed in accordance with managements
general or specific authorization; (B) transactions are recorded as necessary to permit preparation
of financial statements in conformity with accounting principles generally accepted in the United
States of America and to maintain accountability for assets; (C) access to assets is permitted only
in accordance with managements general or specific authorization; and (D) the recorded
accountability for assets is compared with existing assets at reasonable intervals and appropriate
action is taken with respect to any differences.
(ii) Related Party Transactions. No relationship, direct or indirect, exists between or among the
Partnership Entities on the one hand, and the directors, officers, partners, customers or suppliers
of the General Partner and its affiliates (other than the Partnership Entities) on the other hand,
which is required to be described in the most recent Preliminary Prospectus and which is not so
described.
(jj) Environmental Compliance. There has been no storage, generation, transportation, handling,
treatment, disposal or discharge of any kind of toxic or other wastes or other hazardous substances
by any of the Partnership Entities (or, to the knowledge of the Enterprise Parties, any other
entity (including any predecessor) for whose acts or omissions any of the Partnership Entities is
or could reasonably be expected to be liable) at, upon or from any of the property now or
previously owned or leased by any of the Partnership Entities or upon any other property, in
violation of any statute or any ordinance, rule, regulation, order, judgment, decree or permit or
which would, under any statute or any ordinance, rule (including rule of common law), regulation,
order, judgment, decree or permit, give rise to any liability, except for any violation or
liability that could not reasonably be expected to have, individually or in the aggregate with all
such violations and liabilities, a Material Adverse Effect; and there has been no disposal,
discharge, emission or other release of any kind onto such property or into the environment
surrounding such property of any toxic or other wastes or other hazardous
11
substances with respect
to which any of the Enterprise Parties has knowledge, except for any such disposal, discharge,
emission or other release of any kind which could not reasonably be expected to have, individually
or in the aggregate with all such discharges and other releases, a Material Adverse Effect.
(kk) Insurance. The Partnership Entities maintain insurance covering their properties, operations,
personnel and businesses against such losses and risks as are reasonably adequate to protect them
and their businesses in a manner consistent with other businesses similarly situated. Except as
disclosed in the most recent Preliminary Prospectus, none of the Partnership Entities has received
notice from any insurer or agent of such insurer that substantial capital improvements or other
expenditures will have to be made in order to continue such insurance; all such insurance is
outstanding and duly in force on the date hereof and will be outstanding and duly in force on each
Delivery Date.
(ll) Litigation. There are no legal or governmental proceedings pending to which any Partnership
Entity is a party or of which any property or assets of any Partnership Entity is the subject that,
individually or in the aggregate, if determined adversely to such Partnership Entity, could
reasonably be expected to have a Material Adverse Effect; and to the knowledge of the Enterprise
Parties, no such proceedings are threatened or contemplated by governmental authorities or
threatened by others.
(mm) No Labor Disputes. No labor dispute with the employees that are engaged in the business of
the Partnership or its subsidiaries exists or, to the knowledge of the Enterprise Parties, is
imminent or threatened that is reasonably likely to result in a Material Adverse Effect.
(nn) Intellectual Property. Each Partnership Entity owns or possesses adequate rights to use all
material patents, patent applications, trademarks, service marks, trade names, trademark
registrations, service mark registrations, copyrights, licenses and know-how (including trade
secrets and other unpatented and/or unpatentable proprietary or confidential information, systems
or procedures) necessary for the conduct of their respective businesses; and the conduct of their
respective businesses will not conflict in any material respect with, and no Partnership Entity has
received any notice of any claim of conflict with, any such rights of others.
(oo) Investment Company. None of the Partnership Entities is now, or after sale of the Units to be
sold by the Partnership hereunder and application of the net proceeds from such sale as described
in the most recent Preliminary Prospectus under the caption Use of Proceeds will be, an
investment company or a company controlled by an investment company
within the meaning of the Investment Company Act of 1940, as amended (the Investment Company
Act).
(pp) Absence of Certain Actions. No action has been taken and no statute, rule, regulation or
order has been enacted, adopted or issued by any governmental agency or body which prevents the
issuance or sale of the Units in any jurisdiction; no injunction, restraining order or order of any
nature by any federal or state court of competent jurisdiction has been issued with respect to any
Partnership Entity which would prevent or suspend the issuance or sale of the Units or the use of
the most recent Preliminary Prospectus in any jurisdiction; no action, suit or proceeding is
pending against or, to the knowledge of the Enterprise Parties,
12
threatened against or affecting any
Partnership Entity before any court or arbitrator or any governmental agency, body or official,
domestic or foreign,
which could reasonably be expected to interfere with or adversely affect the issuance of the Units
or in any manner draw into question the validity or enforceability of this Agreement or any action
taken or to be taken pursuant hereto; and the Partnership has complied with any and all requests by
any securities authority in any jurisdiction for additional information to be included in the most
recent Preliminary Prospectus.
(qq) Other Sales; No Stabilizing Transactions. The Partnership has not sold or issued any Common
Units during the six-month period preceding the date of the Prospectus other than (i) Common Units
issued pursuant to the EPCO Employee Unit Purchase Plan or any employee benefit plans, qualified
options plans or other employee compensation plans, (ii) Common Units issued pursuant to the
Partnerships DRIP or pursuant to outstanding options, rights or warrants described in the most
recent Preliminary Prospectus, (iii) Common Units issued pursuant to that certain underwriting
agreement dated March 2, 2006 and (iv) Common Units issued pursuant to that certain purchase
agreement dated July 12, 2006. None of the General Partner, the Partnership or any of their
affiliates has taken, directly or indirectly, any action designed to or which has constituted or
which would reasonably be expected to cause or result, under the Exchange Act or otherwise, in
stabilization or manipulation of the price of any securities of the Partnership to facilitate the
sale or resale of the Units.
(rr) Form S-3. The conditions for the use of Form S-3, as set forth in the General Instructions
thereto, have been satisfied.
(ss) Disclosure Controls. The General Partner and the Partnership have established and maintain
disclosure controls and procedures (as such term is defined in Rule 13a-15(f) and 15d-15(f) under
the Exchange Act) which (i) are designed to ensure that material information relating to the
Partnership, including its consolidated subsidiaries, is made known to the General Partners
principal executive officer and its principal financial officer by others within those entities,
particularly during the periods in which the periodic reports required under the Exchange Act are
being prepared; (ii) have been evaluated for effectiveness as of the end of the period covered by
the Partnerships most recent annual report filed with the Commission; and (iii) are effective in
achieving reasonable assurances that the Partnerships desired control objectives as described in
Item 9A of the Partnerships Annual Report on Form 10-K for the period ended December 31, 2005 (the
2005 Annual Report) have been met.
(tt) No Deficiency in Internal Controls. Based on the evaluation of its disclosure controls and
procedures conducted in connection with the preparation and filing of the 2005 Annual Report,
neither the Partnership nor the General Partner is aware of (i) any significant deficiencies or
material weaknesses in the design or operation of its internal controls over financial reporting
that are likely to adversely affect the Partnerships ability to record, process, summarize and
report financial data; or (ii) any fraud,
whether or not material, that involves management or other employees who have a role in the
Partnerships internal controls over financial reporting.
(uu) No Changes in Internal Controls. Since the date of the most recent evaluation of the
disclosure controls and procedures described in Section 1(tt) hereof, there have been no
13
significant changes in the Partnerships internal controls that materially affected or are
reasonably likely to materially affect the Partnerships internal controls over financial
reporting.
(vv) Sarbanes-Oxley Act. The principal executive officer and principal financial officer of the
General Partner have made all certifications required by the Sarbanes-Oxley Act of 2002 (the
Sarbanes-Oxley Act) and any related rules and regulations promulgated by the Commission,
and the statements contained in any such certification are complete and correct. The Partnership
and the General Partner are otherwise in compliance in all material respects with all applicable
provisions of the Sarbanes-Oxley Act that are effective.
Any certificate signed by any officer of any Enterprise Party and delivered to the
Representatives or counsel for the Underwriters pursuant to this Agreement shall be deemed a
representation and warranty by the Enterprise Parties signatory thereto, as to the matters covered
thereby, to each Underwriter.
2. Purchase of the Firm Units.
(a) Subject to the terms and conditions and in reliance upon the representations and
warranties herein set forth, the Partnership agrees to sell to the several Underwriters, and each
of the Underwriters, severally and not jointly, agrees to purchase from the Partnership, at a
purchase price of $24.839 per Unit, the amount of the Firm Units set forth opposite that
Underwriters name in Schedule I hereto.
(b) Subject to the terms and conditions and in reliance upon the representations and
warranties herein set forth, the Partnership hereby grants an option to the Underwriters to
purchase up to 1,650,000 Option Units at the same purchase price per Unit as the Underwriters shall
pay for the Firm Units. Said option may be exercised only to cover over-allotments in the sale of
the Firm Units by the Underwriters. Said option may be exercised in whole or in part at any time
on or before the 30th day after the date of the Prospectus upon written or facsimile notice by the
Underwriters to the Partnership setting forth the number of Option Units as to which the
Underwriters are exercising the option and the settlement date. Each Underwriter agrees, severally
and not jointly, to purchase the number of Option Units (subject to such adjustments to eliminate
fractional Units as the Representatives may determine) that bears the same proportion to the total
number of Option Units to be sold on such Delivery Date as the number of Firm Units set forth in
Schedule I hereto opposite the name of such Underwriter bears to the total number of Firm
Units.
(c) The Partnership shall not be obligated to deliver any of the Units to be delivered on any
Delivery Date, as the case may be, except upon payment for all the Units to be purchased on such
Delivery Date as provided herein.
3. Offering of Units by the Underwriters. It is understood that the Underwriters propose
to offer the Units for sale to the public as set forth in the Prospectus.
4. Delivery of and Payment for the Units. Delivery of and payment for the Firm Units
(including any Option Units provided for in Section 2(b) hereof that have been exercised) shall be
made at the office of Andrews Kurth LLP, Houston, Texas, at 10:00 A.M., New York City time, on
September 12, 2006 or such other date and time and place as shall be determined
14
by agreement between the Underwriters and the Partnership (such date and time of delivery and payment for the
Firm Units being herein called the First Delivery Date). Delivery of the Firm Units
shall be made to the Underwriters against payment by the Underwriters of the purchase price thereof
to or upon the order of the Partnership by wire transfer payable in same-day funds to an account
specified by the Partnership. Delivery of the Firm Units shall be made in book-entry form through
the Full Fast Program of the facilities of The Depository Trust Company (DTC) unless the
Underwriters shall otherwise instruct. Time shall be of the essence, and delivery at the time and
place specified pursuant to this Agreement is a further condition of the obligation of the
Underwriters.
If the option provided for in Section 2(b) hereof is exercised after the third business day
prior to the First Delivery Date, the Partnership will deliver the Option Units (at the expense of
the Partnership) to Citigroup Global Markets Inc. at the place and on the date specified by the
Underwriters in the noticed given pursuant to Section 2(b) hereof (which shall be within five
business days after exercise of said option) (the Second Delivery Date, and together with
the First Delivery Date, each a Delivery Date) against payment by the Underwriters of the
purchase price thereof to or upon the order of the Partnership by wire transfer payable in same-day
funds to an account specified by the Partnership. If settlement for the Option Units occurs after
the First Delivery Date, the Partnership will deliver to the Underwriters on the settlement date
for the Option Units, and the obligation of the Underwriters to purchase the Option Units shall be
conditioned upon receipt of, supplemental opinions, certificates and letters confirming as of such
date the opinions, certificates and letters delivered on the Closing Date pursuant to Section 7
hereof.
5. Further Agreements of the Parties. Each of the Enterprise Parties covenants and
agrees with the Underwriters:
(a) Preparation of Prospectus and Registration Statement. (i) To prepare the Prospectus in a
form approved by the Underwriters and to file such Prospectus pursuant to Rule 424(b) under the
Securities Act not later than Commissions close of business on the second business day following
the execution and delivery of this Agreement or, if applicable, such earlier time as may be
required by Rule 430A(a)(3) under the Securities Act; (ii) to make no further amendment or any
supplement to the Registration Statement or to the Prospectus except
as permitted herein; (iii) to advise the Underwriters, promptly after it receives notice
thereof, of the time when any amendment to the Registration Statement has been filed or becomes
effective or any supplement to the Prospectus or any amended Prospectus has been filed and to
furnish the Underwriters with copies thereof; (iv) to advise the Underwriters promptly after it
receives notice thereof of the issuance by the Commission of any stop order or of any order
preventing or suspending the use of the Prospectus or any Issuer Free Writing Prospectus, of the
suspension of the qualification of the Units for offering or sale in any jurisdiction, of the
initiation or threatening of any proceeding for any such purpose or of any request by the
Commission for the amending or supplementing of the Registration Statement, the Prospectus or any
Issuer Free Writing Prospectus or for additional information; and (v) in the event of the issuance
of any stop order or of any order preventing or suspending the use of the Prospectus or any Issuer
Free Writing Prospectus or suspending any such qualification, to use promptly its best efforts to
obtain its withdrawal.
15
(b) Signed Copies of Registration Statements. To furnish promptly to the Underwriters and to
counsel for the Underwriters, upon request, a signed copy of the Registration Statement as
originally filed with the Commission, and each amendment thereto filed with the Commission,
including all consents and exhibits filed therewith.
(c) Exchange Act Reports. To file promptly all reports and any definitive proxy or
information statements required to be filed by the Partnership with the Commission pursuant to
Section 13(a), 13(c), 14 or 15(d) of the Exchange Act (Exchange Act Reports) subsequent
to the date of the Prospectus and for so long as the delivery of a prospectus is required in
connection with the offering or sale of the Units.
(d) Copies of Documents to the Underwriters. To deliver promptly to the Underwriters such
number of the following documents as the Underwriters shall reasonably request: (i) conformed
copies of the Registration Statement as originally filed with the Commission and each amendment
thereto (in each case excluding exhibits), (ii) each Preliminary Prospectus, the Prospectus and any
amended or supplemented Prospectus, (iii) each Issuer Free Writing Prospectus and (iv) any document
incorporated by reference in any Preliminary Prospectus or the Prospectus; and, if the delivery of
a prospectus is required at any time after the date hereof in connection with the offering or sale
of the Units or any other securities relating thereto and if at such time any events shall have
occurred as a result of which the Prospectus as then amended or supplemented would include an
untrue statement of a material fact or omit to state any material fact necessary in order to make
the statements therein, in the light of the circumstances under which they were made when such
Prospectus is delivered, not misleading, or, if for any other reason it shall be necessary to amend
or supplement the Prospectus or to file under the Exchange Act any document incorporated by
reference in the Prospectus in order to comply with the Securities Act or the Exchange Act or with
a request from the Commission, to notify the Underwriters immediately thereof and to promptly
prepare and, subject to Section 5(e) hereof, file with the Commission an amended Prospectus or
supplement to the Prospectus which will correct such statement or omission or effect such
compliance.
(e) Filing of Amendment or Supplement. To file promptly with the Commission any amendment to
the Registration Statement or the Prospectus or any supplement to the Prospectus that may, in the
judgment of the Partnership or the Underwriters, be required by the Securities
Act or the Exchange Act or requested by the Commission. Prior to filing with the Commission
any amendment to the Registration Statement or supplement to the Prospectus, any document
incorporated by reference in the Prospectus or any Prospectus pursuant to Rule 424 of the Rules and
Regulations, to furnish a copy thereof to the Underwriters and counsel for the Underwriters and not
to file any such document to which the Underwriters shall reasonably object after having been given
reasonable notice of the proposed filing thereof unless the Partnership is required by law to make
such filing.
(f) Reports to Security Holders. As soon as practicable after the First Delivery Date, to
make generally available to the Partnerships security holders an earnings statement of the
Partnership and its Subsidiaries (which need not be audited) complying with Section 11(a) of the
Securities Act and the Rules and Regulations (including, at the option of the Partnership, Rule
158).
16
(g) Copies of Reports. For a period of two years following the date hereof, to furnish to the
Underwriters copies of all materials furnished by the Partnership to its security holders and all
reports and financial statements furnished by the Partnership to the principal national securities
exchange upon which the Units may be listed pursuant to requirements of or agreements with such
exchange or to the Commission pursuant to the Exchange Act or any rule or regulation of the
Commission thereunder, in each case to the extent that such materials, reports and financial
statements are not publicly filed with the Commission.
(h) Blue Sky Laws. Promptly to take from time to time such actions as the Underwriters may
reasonably request to qualify the Units for offering and sale under the securities or Blue Sky laws
of such jurisdictions as the Underwriters may designate and to continue such qualifications in
effect for so long as required for the resale of the Units; and to arrange for the determination of
the eligibility for investment of the Units under the laws of such jurisdictions as the
Underwriters may reasonably request; provided that no Partnership Entity shall be obligated to
qualify as a foreign corporation in any jurisdiction in which it is not so qualified or to file a
general consent to service of process in any jurisdiction.
(i) Lock-up Period; Lock-up Letters. For a period of 45 days from the date of the Prospectus
(the Lock-Up Period), not to, directly or indirectly, (i) offer for sale, sell, pledge or
otherwise dispose of (or enter into any transaction or device that is designed to, or could be
expected to, result in the disposition by any person at any time in the future of) any Common Units
or securities convertible into, or exchangeable for Common Units, or sell or grant options, rights
or warrants with respect to any Common Units or securities convertible into or exchangeable for
Common Units (other than the grant of options pursuant to option plans existing on the date
hereof), or (ii) enter into any swap or other derivatives transaction that transfers to another, in
whole or in part, any of the economic benefits or risks of ownership of such Common Units, whether
any such transaction described in clause (i) or (ii) above is to be settled by delivery of Common
Units or other securities, in cash or otherwise, (iii) file or cause to be filed a registration
statement, including any amendments, with respect to the registration of any Common Units or
securities convertible, exercisable or exchangeable into Common Units (other than any registration
statement on Form S-8 or as otherwise excepted from this lock-up provision) or (iv) publicly
disclose the intention to do any of the foregoing, in each case without the prior written consent
of the Representatives; provided, however, that the foregoing
restrictions do not apply to: (A) the issuance and sale of Common Units by the Partnership to
the Underwriters in connection with the public offering contemplated by this Agreement, (B) the
issuance and sale of Common Units, phantom units, restricted units and options by the Partnership
to employees and directors of EPCO and its affiliates under the EPCO Employee Unit Purchase Plan,
the Enterprise Products 1998 Long-Term Incentive Plan and the Enterprise Products GP, LLC 1999
Long-Term Incentive Plan, including sales pursuant to cashless-broker exercises of options to
purchase Common Units in accordance with such plans as consideration for the exercise price and
withholding taxes applicable to such exercises, (C) the issuance and sale of Common Units issued
pursuant to the Partnerships DRIP or (D) the filing of a universal shelf registration statement
on Form S-3, including both debt and equity securities, and any amendments thereto, which
registration statement may also include Common Units of selling unitholders; provided, that (1) the
Enterprise Parties shall otherwise remain subject to the restrictions set forth in this Section
5(i) with respect to any Common Units or any securities convertible into, or exercisable or
exchangeable for, Common Units registered
17
thereunder, (2) such registration statement and
amendments if so filed shall contain only a generic and undetermined plan of distribution with
respect to such securities during the Lock-Up Period, and (3) any selling unitholders registering
Common Units under such registration statement shall agree in writing to be subject to the lock-up
provisions set forth in the form of letter attached as Exhibit C hereto. Each person
listed on Schedule IV, including each executive officer and director of the General
Partner, shall furnish to the Underwriters, prior to or on the First Delivery Date, a letter or
letters, substantially in the form of Exhibit C hereto.
(j) Application of Proceeds. To apply the net proceeds from the sale of the Units as set
forth in the Prospectus.
(k) Investment Company. To take such steps as shall be necessary to ensure that no
Partnership Entity shall become an investment company as defined in the Investment Company Act.
(l) Issuer Free Writing Prospectuses. Not to make any offer relating to the Units that would
constitute an Issuer Free Writing Prospectus without the prior written consent of the
Representatives.
(m) Retention of Issuer Free Writing Prospectuses. To retain in accordance with the Rules and
Regulations all Issuer Free Writing Prospectuses not required to be filed pursuant to the Rules and
Regulations; and if at any time after the date hereof and prior to any Delivery Date, any events
shall have occurred as a result of which any Issuer Free Writing Prospectus, as then amended or
supplemented, would conflict with the information in the Registration Statement, the most recent
Preliminary Prospectus or the Prospectus or, when considered together with the most recent
Preliminary Prospectus, would include an untrue statement of a material fact or omit to state any
material fact necessary in order to make the statements therein, in the light of the circumstances
under which they were made, not misleading, or, if for any other reason it shall be necessary to
amend or supplement any Issuer Free Writing Prospectus, to notify the Representatives and, upon
their reasonable request or as required by the Rules and Regulations, to file such document and to
prepare and furnish without charge to each Underwriter as many copies as the Representatives may
from time to time reasonably request of
an amended or supplemented Issuer Free Writing Prospectus that will correct such conflict,
statement or omission or effect such compliance.
(n) Issuer Information. Each Underwriter severally agrees that such Underwriter, without the
prior written consent of the Partnership, has not used or referred to publicly and shall not use or
refer to publicly any free writing prospectus (as defined in Rule 405 but excluding any Issuer
Free Writing Prospectus identified on Schedule V hereto and any electronic road show
constituting a free writing prospectus under Rule 433) in connection with the offer and sale of the
Units; provided that no such consent shall be required with respect to any free writing prospectus
filed by the Partnership with the Commission prior to the use of such free writing prospectus.
(o) NYSE Listing. Prior to and on the First Delivery Date, to ensure the Units have been approved
for listing on the New York Stock Exchange, subject only to official notice of issuance.
18
6. Expenses. The Partnership agrees to pay (a) the costs incident to the authorization,
issuance, sale and delivery of the Units and any taxes payable in that connection; (b) the costs
incident to the preparation, printing and filing under the Securities Act of the Registration
Statement and any amendments and exhibits thereto; (c) the costs of printing and distributing the
Registration Statement as originally filed and each amendment thereto and any post-effective
amendments thereof (including, in each case, exhibits), the Prospectus and any amendment or
supplement to the Prospectus, all as provided in this Agreement; (d) the costs of producing and
distributing this Agreement, any underwriting and selling group documents and any other related
documents in connection with the offering, purchase, sale and delivery of the Units; (e) the filing
fees incident to securing the review, if applicable, by the National Association of Securities
Dealers, Inc. of the terms of sale of the Units; (f) any applicable listing or other similar fees;
(g) the fees and expenses of preparing, printing and distributing a Blue Sky Memorandum (including
related fees and expenses of counsel to the Underwriters); (h) the cost of printing certificates
representing the Units; (i) the costs and charges of any transfer agent or registrar; (j) the costs
and expenses of the Partnership relating to investor presentations on any road show undertaken in
connection with the marketing of the offering of the Units, including, without limitation, expenses
associated with the production of road show slides and graphics, fees and expenses of any
consultants engaged in connection with the road show presentations with the prior approval of the
Partnership, travel and lodging expenses of the representatives and officers of the Partnership and
any such consultants; (k) one-half of the cost of plane charters and related expenses incurred by
the Underwriters or the Partnership in connection with any road show undertaken in connection
with the marketing of the offering of the Units; and (l) all other costs and expenses incident to
the performance of the obligations of the Partnership under this Agreement; provided that, except
as provided in this Section 6 and in Section 12 hereof, the Underwriters shall pay their own costs
and expenses, including the costs and expenses of its counsel, any transfer taxes on the Units
which it may sell and the expenses of advertising any offering of the Units made by the
Underwriters. The Underwriters will reimburse the Partnership for certain expenses that are
incurred by the Partnership in connection with the transactions contemplated by this Agreement
(including from the sale of any Option Units) in an amount of up to the lesser of $326,370 or the
actual expenses incurred by the Partnership, in each case as such expenses are evidenced by a
written invoice provided to the Representatives. Such reimbursement may be made by wire transfer
of immediately available funds to such account or accounts designated by the Partnership or such
other method as agreed to by the Representatives and Partnership following delivery of reasonably
satisfactory documentation of the expenses to the Representatives.
7. Conditions of Underwriters Obligations. The respective obligations of the Underwriters
hereunder are subject to the accuracy, when made and on each Delivery Date, of the representations
and warranties of the Enterprise Parties contained herein, to the accuracy of the statements of the
Enterprise Parties and the officers of the General Partner made in any certificates delivered
pursuant hereto, to the performance by each of the Enterprise Parties of its obligations hereunder
and to each of the following additional terms and conditions:
(a) The Prospectus shall have been timely filed with the Commission in accordance with Section
5(a); no stop order suspending the effectiveness of the Registration Statement or preventing or
suspending the use of the Prospectuses or any Issuer Free Writing Prospectuses or any part thereof
shall have been issued and no proceeding for that purpose shall have been
19
initiated or threatened
by the Commission; any request of the Commission for inclusion of additional information in the
Registration Statement or the Prospectus or otherwise shall have been complied with to the
reasonable satisfaction of the Underwriters; and the Commission shall not have notified the
Partnership of any objection to the use of the form of the Registration Statement.
(b) The Underwriters shall not have discovered and disclosed to the Partnership on or prior to
such Delivery Date that the Registration Statement, the Prospectus or the Pricing Disclosure
Package, or any amendment or supplement thereto, contains an untrue statement of a fact which, in
the opinion of counsel for the Underwriters, is material or omits to state any fact which, in the
opinion of such counsel, is material and is required to be stated therein or in the documents
incorporated by reference therein or is necessary to make the statements therein not misleading.
(c) All corporate, partnership and limited liability company proceedings and other legal
matters incident to the authorization, execution and delivery of this Agreement, the authorization,
execution and filing of the Registration Statement, the Prospectus and any Issuer Free Writing
Prospectus, and all other legal matters relating to this Agreement and the transactions
contemplated hereby shall be reasonably satisfactory in all material respects to counsel for the
Underwriters, and the Partnership shall have furnished to such counsel all documents and
information that they or their counsel may reasonably request to enable them to pass upon such
matters.
(d) Andrews Kurth LLP shall have furnished to the Underwriters its written opinion, as counsel
for the Enterprise Parties, addressed to the Underwriters and dated such Delivery Date, in form and
substance satisfactory to the Underwriters, substantially to the effect set forth in Exhibit
A to this Agreement.
(e) Richard H. Bachmann, Esq., shall have furnished to the Underwriters his written opinion,
as Chief Legal Officer of the Enterprise Parties, addressed to the Underwriters and dated such
Delivery Date, in form and substance reasonably satisfactory to the Underwriters, substantially to
the effect set forth in Exhibit B hereto.
(f) The Underwriters shall have received from Baker Botts L.L.P., counsel for the
Underwriters, such opinion or opinions, dated such Delivery Date, with respect to such matters as
the Underwriters may reasonably require, and the Partnership shall have furnished to such counsel
such documents and information as they may reasonably request for the purpose of enabling them to
pass upon such matters.
(g) At the time of execution of this Agreement, the Underwriters shall have received from
Deloitte & Touche LLP a letter or letters, in form and substance satisfactory to the Underwriters,
addressed to the Underwriters and dated the date hereof (i) confirming that they are an independent
registered public accounting firm within the meaning of the Securities Act and are in compliance
with the applicable rules and regulations thereunder adopted by the Commission and the PCAOB, and
(ii) stating that, as of the date hereof (or, with respect to matters involving changes or
developments since the respective dates as of which specified financial information is given in the
most recent Preliminary Prospectus and the Prospectus, as of
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a date not more than five days prior
to the date hereof), the conclusions and findings of such firm with respect to the financial
information and other matters ordinarily covered by accountants comfort letters to underwriters
in connection with registered public offerings.
(h) With respect to the letter or letters of Deloitte & Touche LLP referred to in the
preceding paragraph and delivered to the Underwriters concurrently with the execution of this
Agreement (the initial letters), such accounting firm shall have furnished to the
Underwriters a letter (the bring-down letter) of Deloitte & Touche LLP, addressed to the
Underwriters and dated such Delivery Date, (i) confirming that they are an independent registered
public accounting firm within the meaning of the Securities Act and are in compliance with the
applicable rules and regulations thereunder adopted by the Commission and the PCAOB, (ii) stating
that, as of the date of the bring-down letter (or, with respect to matters involving changes or
developments since the respective dates as of which specified financial information is given in the
Prospectus, as of a date not more than five days prior to the date of the bring-down letter), the
conclusions and findings of such firm with respect to the financial information and other matters
covered by the initial letters and (iii) confirming in all material respects the conclusions and
findings set forth in the initial letters.
(i) The Partnership shall have furnished to the Underwriters a certificate, dated such
Delivery Date, of the chief executive officer and the chief financial officer of the General
Partner stating that: (i) such officers have carefully examined the Registration Statement, the
Prospectus and the Pricing Disclosure Package; (ii) in their opinion, (1) the Registration
Statement, including the documents incorporated therein by reference, as of the most recent
Effective Date, (2) the Prospectus, including any documents incorporated by reference therein, as
of the date of the Prospectus and as of such Delivery Date, and (3) the Pricing Disclosure Package,
as of the Applicable Time, did not and do not include any untrue statement of a material fact and
did not and do not omit to state a material fact necessary in order to make the statements therein,
in the light of the circumstances under which they were made, not misleading; (iii) as of such
Delivery Date, the representations and warranties of the Enterprise Parties in this Agreement are true
and correct; (iv) the Enterprise Parties have complied with all their agreements contained herein
and satisfied all conditions on their part to be performed or satisfied hereunder on or prior to
such Delivery Date; (v) no stop order suspending the effectiveness of the Registration Statement
has been issued and no proceedings for that purpose have been instituted or, to the best of such
officers knowledge, are threatened; (vi) the Commission has not notified the Partnership of any
objection to the use of the form of the Registration Statement or any post-effective amendment
thereto; (vii) since the date of the most recent financial statements included or incorporated by
reference in the Prospectus, there has been no material adverse effect on the condition (financial
or otherwise), results of operations, business or prospects of the Partnership Entities, taken as a
whole, whether or not arising from transactions in the ordinary course of business, except as set
forth in or contemplated in the Prospectus; and (viii) since the Effective Date, no event has
occurred that is required under the Rules and Regulations or the Securities Act to be set forth in
a supplement or amendment to the Registration Statement, the Prospectus or any Issuer Free Writing
Prospectus that has not been so set forth.
(j) If any event shall have occurred on or prior to such Delivery Date that requires the
Partnership under Section 5(e) to prepare an amendment or supplement to the Prospectus, such
amendment or supplement shall have been prepared, the Underwriters shall have been given
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a reasonable opportunity to comment thereon as provided in Section 5(e) hereof, and copies thereof
shall have been delivered to the Underwriters reasonably in advance of such Delivery Date.
(k) No action shall have been taken and no statute, rule, regulation or order shall have been
enacted, adopted or issued by any governmental agency or body which would, as of such Delivery
Date, prevent the issuance or sale of the Units; and no injunction, restraining order or order of
any other nature by any federal or state court of competent jurisdiction shall have been issued as
of such Delivery Date which would prevent the issuance or sale of the Units.
(l) Except as described in the most recent Preliminary Prospectus, (i) neither the Partnership
nor any of its subsidiaries shall have sustained, since the date of the latest audited financial
statements included or incorporated by reference in the most recent Preliminary Prospectus, any
loss or interference with its business from fire, explosion, flood or other calamity, whether or
not covered by insurance, or from any labor dispute or court or governmental action, order or
decree or (ii) since such date there shall not have been any change in the capital or long-term
debt of the Partnership or any of its subsidiaries or any change, or any development involving a
prospective change, in or affecting the condition (financial or otherwise), results of operations,
unitholders equity, properties, management, business or prospects of the Partnership and its
subsidiaries taken as a whole, the effect of which, in any such case described in clause (i) or
(ii), is, in the judgment of the Representatives, so material and adverse as to make it
impracticable or inadvisable to proceed with the public offering or the delivery of the Units being
delivered on such Delivery Date on the terms and in the manner contemplated in the Prospectus.
(m) Subsequent to the execution and delivery of this Agreement there shall not have occurred
any of the following: (i) trading in the Common Units shall have been suspended by the Commission
or the New York Stock Exchange, (ii) trading in securities generally on the New
York Stock Exchange or the American Stock Exchange shall have been suspended or materially
limited or the settlement of such trading generally shall have been materially disrupted or minimum
prices shall have been established on the New York Stock Exchange, (iii) a banking moratorium shall
have been declared by federal or New York State authorities, (iv) a material disruption in
commercial banking or clearance services in the United States, (v) the United States shall have
become engaged in hostilities, there shall have been an escalation in hostilities involving the
United States or there shall have been a declaration of a national emergency or war by the United
States or (vi) a calamity or crisis the effect of which on the financial markets is such as to make
it, in the sole judgment of the Representatives, impracticable or inadvisable to proceed with the
offering or delivery of the Units being delivered on such Delivery Date on the terms and in the
manner contemplated in the Prospectus.
(n) The New York Stock Exchange shall have approved the Units for listing, subject only to
official notice of issuance.
(o) The Lock-Up Agreements between the Representatives and the persons listed on Schedule
IV, delivered to the Representatives on or before the date of this Agreement, shall be in full
force and effect on such Delivery Date, except to the extent waived, released, suspended or
terminated in writing by the Representatives.
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All such opinions, certificates, letters and documents mentioned above or elsewhere in this
Agreement shall be deemed to be in compliance with the provisions hereof only if they are in form
and substance reasonably satisfactory to the Underwriters and to counsel for the Underwriters.
8. Indemnification and Contribution.
(a) Each of the Enterprise Parties, jointly and severally, agrees to indemnify and hold
harmless each Underwriter, the directors, officers, employees and agents of any Underwriter and
each person who controls any Underwriter within the meaning of either the Securities Act or the
Exchange Act from and against any and all losses, claims, damages or liabilities, joint or several,
to which that Underwriter, director, officer, employee or contesting person may become subject
under the Securities Act, the Exchange Act or other Federal or state statutory law or regulation,
at common law or otherwise, insofar as such losses, claims, damages or liabilities (or actions in
respect thereof) arise out of or are based upon (i) any untrue statement or alleged untrue
statement of a material fact contained in: (A) the Registration Statement, the Prospectus or any
Preliminary Prospectus or in any amendment thereof or supplement thereto, or (B) any Issuer Free
Writing Prospectus or in any amendment or supplement thereto; or (ii) the omission or the alleged
omission to state in any Preliminary Prospectus, the Registration Statement, the Prospectus, any
Issuer Free Writing Prospectus or in any amendment or supplement thereto any material fact required
to be stated therein or necessary to make the statements therein not misleading; and agrees to
reimburse each such indemnified party, as incurred, for any legal or other expenses reasonably
incurred by them in connection with investigating or defending any such loss, claim, damage,
liability or action; provided, however, that the Enterprise Parties will not be liable in any such
case to the extent that any such loss, claim, damage or liability arises out of or is based upon
any such untrue statement or alleged untrue statement or omission or alleged omission made therein
in reliance upon and in conformity with written information
furnished to the Enterprise Parties by the Underwriters through the Representatives
specifically for inclusion therein, which information consists solely of the information specified
in Section 8(b). This indemnity agreement will be in addition to any liability which the
Enterprise Parties may otherwise have.
(b) Each Underwriter, severally and not jointly, agrees to indemnify and hold harmless each
Enterprise Party, the directors of the General Partner, the respective officers of the General
Partner who sign the Registration Statement, and each person who controls the Enterprise Parties
within the meaning of either the Securities Act or the Exchange Act to the same extent as the
foregoing indemnity from the Partnership to the Underwriters, but only with reference to written
information relating to the Underwriters furnished to the Partnership by the Underwriters
specifically for inclusion in the documents referred to in the foregoing indemnity. This indemnity
agreement will be in addition to any liability which the Underwriters may otherwise have. The
Enterprise Parties acknowledge that the statements set forth (i) in the most recent Preliminary
Prospectus and the Prospectus, (A) the last paragraph of the cover page regarding delivery of the
Units and, (B) under the heading Underwriting, (1) the sentence relating to concessions, (2) the
paragraphs (including the bullet points contained therein) under the heading Price Stabilization,
Short Positions and Penalty Bids, and (3) the paragraphs under the heading Electronic
Distribution, and (ii) in the pricing sheet filed with the Commission by the Partnership as a Free
Writing Prospectus on September 7, 2006, the information regarding
23
pre-pricing stabilizing
transactions, constitute the only information furnished in writing by or on behalf of the
Underwriters for inclusion in any Preliminary Prospectus, the Registration Statement, the
Prospectus, any Issuer Free Writing Prospectuses or in any amendment or supplement thereto.
(c) Promptly after receipt by an indemnified party under this Section 8 of notice of any claim
or the commencement of any action, such indemnified party will, if a claim in respect thereof is to
be made against the indemnifying party under this Section 8, notify the indemnifying party in
writing of the claim or the commencement thereof; but the failure so to notify the indemnifying
party (i) will not relieve it from liability under paragraph (a) or (b) above unless and to the
extent it did not otherwise learn of such action and such failure results in the forfeiture by the
indemnifying party of substantive rights and defenses and (ii) will not, in any event, relieve the
indemnifying party from any obligations to any indemnified party other than the indemnification
obligation provided in paragraph (a) or (b) above. The indemnifying party shall be entitled to
appoint counsel of the indemnifying partys choice at the indemnifying partys expense to represent
the indemnified party in any action for which indemnification is sought (in which case the
indemnifying party shall not thereafter be responsible for the reasonable fees, costs and expenses
of any separate counsel retained by the indemnified party or parties except as set forth below);
provided, however, that such counsel shall be reasonably satisfactory to the indemnified party.
Notwithstanding the indemnifying partys election to appoint counsel to represent the indemnified
party in an action, the indemnified party shall have the right to employ separate counsel
(including local counsel), and the indemnifying party shall bear the reasonable fees, costs and
expenses of such separate counsel if (i) the use of counsel chosen by the indemnifying party to
represent the indemnified party would present such counsel with a conflict of interest, (ii) the
actual or potential defendants in, or targets of, any such action include both the indemnified
party and the indemnifying party and the indemnified party shall have reasonably concluded that
there may be legal defenses available to it and/or other
indemnified parties which are different from or additional to those available to the
indemnifying party, (iii) the indemnifying party shall not have employed counsel reasonably
satisfactory to the indemnified party to represent the indemnified party within a reasonable time
after notice of the institution of such action or (iv) the indemnifying party shall authorize the
indemnified party to employ separate counsel at the expense of the indemnifying party. An
indemnifying party will not, without the prior written consent of the indemnified parties, settle
or compromise or consent to the entry of any judgment with respect to any pending or threatened
claim, action, suit or proceeding in respect of which indemnification or contribution may be sought
hereunder (whether or not the indemnified parties are actual or potential parties to such claim or
action) unless such settlement, compromise or consent includes an unconditional release of each
indemnified party from all liability arising out of such claim, action, suit or proceeding.
(d) In the event that the indemnity provided in this Section 8 is unavailable to or
insufficient to hold harmless an indemnified party for any reason, the Partnership and the
Underwriters agree to contribute to the aggregate losses, claims, damages and liabilities
(including legal or other expenses reasonably incurred in connection with investigating or
defending same) (collectively, the Losses) to which the Partnership and the Underwriters
may be subject in such proportion as is appropriate to reflect the relative benefits received by
the Partnership on the one hand and by the Underwriters on the other from the offering of the
Units; provided, however, that in no case shall (i) the Underwriters be responsible for any amount in
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excess of the amount by which the total price at which the Units underwritten by it and
distributed to the public were offered to the public exceeds the amount of any damages which the
Underwriters have otherwise been required to pay by reason of such untrue or alleged untrue
statement or omission or alleged omission. If the allocation provided by the immediately preceding
sentence is unavailable for any reason, the Partnership and the Underwriters shall contribute in
such proportion as is appropriate to reflect not only such relative benefits but also the relative
fault of the Partnership on the one hand and of the Underwriters on the other in connection with
the statements or omissions which resulted in such Losses as well as any other relevant equitable
considerations. Benefits received by the Partnership shall be deemed to be equal to the total net
proceeds from the offering (before deducting expenses) received by it, and benefits received by the
Underwriters shall be deemed to be equal to the total underwriting discounts and commissions, in
each case as set forth on the cover page of the Prospectus. Relative fault shall be determined by
reference to, among other things, whether any untrue or any alleged untrue statement of a material
fact or the omission or alleged omission to state a material fact relates to information provided
by the Partnership on the one hand or the Underwriters on the other, the intent of the parties and
their relative knowledge, access to information and opportunity to correct or prevent such untrue
statement or omission. The Partnership and each of the Underwriters agree that it would not be
just and equitable if contribution were determined by pro rata allocation or any other method of
allocation which does not take account of the equitable considerations referred to above.
Notwithstanding the provisions of this paragraph (d), no person guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to
contribution from any person who was not guilty of such fraudulent misrepresentation. For purposes
of this Section 8, each person who controls any Underwriter within the meaning of either the
Securities Act or the Exchange Act and each director, officer, employee and agent of any
Underwriter shall have the same rights to contribution as the Underwriters, and each person who
controls the Partnership within the meaning of either the Securities Act or the Exchange Act, each
officer of the General Partner
who shall have signed the Registration Statement and each director of the General Partner
shall have the same rights to contribution as the Partnership, subject in each case to the
applicable terms and conditions of this paragraph (d).
9. No Fiduciary Duty. The Partnership hereby acknowledges that each Underwriter is
acting solely as an underwriter in connection with the purchase and sale of the Units. The
Partnership further acknowledges that each Underwriter is acting pursuant to a contractual
relationship created solely by this Agreement entered into on an arms-length basis and in no event
do the parties intend that each Underwriter acts or be responsible as a fiduciary to any of the
Partnership Entities, their management, unitholders, creditors or any other person in connection
with any activity that each Underwriter may undertake or have undertaken in furtherance of the
purchase and sale of the Units, either before or after the date hereof. Each Underwriter hereby
expressly disclaims any fiduciary or similar obligations to any of the Partnership Entities, either
in connection with the transactions contemplated by this Agreement or any matters leading up to
such transactions, and the Partnership hereby confirms its understanding and agreement to that
effect. The Partnership and the Underwriters agree that they are each responsible for making their
own independent judgments with respect to any such transactions and that any opinions or views
expressed by the Underwriters to any of the Partnership Entities regarding such transactions,
including but not limited to any opinions or views with respect to the price or market for the
Units, do not constitute advice or
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recommendations to any of the Partnership Entities. The
Partnership hereby waives and releases, to the fullest extent permitted by law, any claims that the
Partnership may have against each Underwriter with respect to any breach or alleged breach of any
fiduciary or similar duty to any of the Partnership Entities in connection with the transactions
contemplated by this Agreement or any matters leading up to such transactions.
10. Defaulting Underwriters. If, on any Delivery Date, any Underwriter defaults in the
performance of its obligations under this Agreement, the remaining non-defaulting Underwriters
shall be obligated to purchase the Units that the defaulting Underwriter agreed but failed to
purchase on such Delivery Date in the respective proportions which the number of Firm Units set
forth opposite the name of each remaining non-defaulting Underwriter in Schedule I hereto
bears to the total number of Firm Units set forth opposite the names of all the remaining
non-defaulting Underwriters in Schedule I hereto; provided, however, that the remaining
non-defaulting Underwriters shall not be obligated to purchase any of the Units on such Delivery
Date if the total number of Units that the defaulting Underwriter or Underwriters agreed but failed
to purchase on such date exceeds 10% of the total number of Units to be purchased on such Delivery
Date, and any remaining non-defaulting Underwriters shall not be obligated to purchase more than
110% of the number of Units that it agreed to purchase on such Delivery Date pursuant to the terms
of Section 2. If the foregoing maximums are exceeded, the remaining non-defaulting Underwriters,
or those other underwriters satisfactory to the Representatives who so agree, shall have the right,
but shall not be obligated, to purchase, in such proportion as may be agreed upon among them, all
the Units to be purchased on such Delivery Date. If the remaining Underwriters or other
underwriters satisfactory to the Representatives do not elect to purchase the Units that the
defaulting Underwriter or Underwriters agreed but failed to purchase on such Delivery Date, this
Agreement (or, with respect to any Second Delivery Date, the obligation of the Underwriters to
purchase, and of the Partnership to sell, the Option Units) shall terminate without liability on
the part of any non-defaulting Underwriters or the Partnership, except that the Partnership will
continue to be liable for the payment of expenses to the extent set forth in Sections 6 and 12. As
used in this Agreement, the term Underwriter includes, for all purposes of this Agreement unless
the context requires otherwise, any party not listed in Schedule I hereto that, pursuant to
this Section 10, purchases Units that a defaulting Underwriter agreed but failed to purchase.
Nothing contained herein shall relieve a defaulting Underwriter of any liability it may have
to the Partnership for damages caused by its default. If other Underwriters are obligated or agree
to purchase the Units of a defaulting or withdrawing Underwriter, either the Representatives or the
Partnership may postpone the Delivery Date for up to seven full business days in order to effect
any changes that in the opinion of counsel for the Partnership or counsel for the Underwriters may
be necessary in the Registration Statement, the Prospectus or in any other document or arrangement.
11. Termination. The obligations of the Underwriters hereunder may be terminated by the
Representatives by notice given to and received by the Partnership prior to delivery of and payment
for the Firm Units if, prior to that time, any of the events described in Sections 7(l) or 7(m)
shall have occurred or if the Underwriters shall decline to purchase the Units for any reason
permitted under this Agreement.
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12. Reimbursement of Underwriters Expenses. If the sale of the Units provided for herein
is not consummated because any condition to the obligations of the Underwriters set forth in
Section 7 hereof is not satisfied, because of any termination pursuant to Section 7(m)(i) hereof or
because of any refusal, inability or failure on the part of any Enterprise Party to perform any
agreement herein or comply with any provision hereof other than by reason of a default by the
Underwriters, the Partnership will reimburse the Underwriters, severally through the
Representatives, on demand for all reasonable out-of-pocket expenses (including reasonable fees and
disbursements of counsel) that shall have been incurred by the Underwriters in connection with the
proposed purchase and sale of the Units. If this Agreement is terminated pursuant to Section 10
hereof by reason of the default of one or more of the Underwriters, the Partnership shall not be
obligated to reimburse any defaulting Underwriter on account of such Underwriters expenses.
13. Research Analyst Independence. Each of the Enterprise Parties acknowledges that the
Underwriters research analysts and research departments are required to be independent from their
respective investment banking divisions and are subject to certain regulations and internal
policies, and that such Underwriters research analysts may hold views and make statements or
investment recommendations and/or publish research reports with respect to each of the Enterprise
Parties and/or the offering that differ from the views of their respective investment banking
divisions. Each of the Enterprise Parties hereby waives and releases, to the fullest extent
permitted by law, any claims that the Enterprise Parties may have against the Underwriters with
respect to any conflict of interest that
may arise from the fact that the views expressed by their independent research analysts and
research departments may be different from or inconsistent with the views or advice communicated to
the Partnership by such Underwriters investment banking divisions. Each of the Enterprise Parties
acknowledges that each of the Underwriters is a full service securities firm and as such from time
to time, subject to applicable securities laws, may effect transactions for its own account or the
account of its customers and hold long or short positions in debt or equity securities of the
companies that may be the subject of the transactions contemplated by this Agreement.
14. Notices. All statements, requests, notices and agreements hereunder shall be in
writing, and:
(a) if to the Underwriters, shall be delivered or sent by mail or facsimile transmission to
(i) Citigroup Global Markets Inc. General Counsel (Fax: (212) 816-7912) and confirmed to the
General Counsel, Citigroup Global Markets Inc., at 388 Greenwich Street, New York, New York 10013,
Attention: General Counsel, and (ii) UBS Securities LLC, 299 Park Avenue, New York, New York 10173
(Fax: (212) 821-4042), Attention: Legal Department.
(b) if to the Enterprise Parties, shall be delivered or sent by mail or facsimile transmission
to Enterprise Products Partners L.P., 1100 Louisiana Street, 10th Floor, Houston, Texas 77002,
Attention: Chief Legal Officer (Fax: (713) 381-6570);
(c) provided, however, that any notice to any Underwriter pursuant to Section 8(c) shall be
delivered or sent by mail, telex or facsimile transmission to such Underwriters at its address set
forth in its acceptance telex to the Underwriters, which address will be supplied to
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any other party hereto by the Underwriters upon request. Any such statements, requests, notices or
agreements shall take effect at the time of receipt thereof.
The Enterprise Parties shall be entitled to rely upon any request, notice, consent or
agreement given or made by the Representatives on behalf of the Underwriters.
15. Persons Entitled to Benefit of Agreement. This Agreement shall inure to the benefit of
and be binding upon the Underwriters, the Enterprise Parties and their respective successors. This
Agreement and the terms and provisions hereof are for the sole benefit of only those persons,
except as provided in Section 8 with respect to affiliates, officers, directors, employees,
representatives, agents and controlling persons of the Partnership, the Operating Partnership and
the Underwriters. Nothing in this Agreement is intended or shall be construed to give any person,
other than the persons referred to in this Section 15, any legal or equitable right, remedy or
claim under or in respect of this Agreement or any provision contained herein.
16. Survival. The respective indemnities, representations, warranties and agreements of
the Enterprise Parties and the Underwriters contained in this Agreement or made by or on behalf on
them, respectively, pursuant to this Agreement or any certificate delivered pursuant hereto, shall
survive the delivery of and payment for the Units and shall remain in full force and effect,
regardless of any termination or cancellation of this Agreement or any investigation made by or on
behalf of any of them or any person controlling any of them. The Underwriters acknowledge and
agree that the obligations of the Enterprise Parties hereunder are non-recourse to the General
Partner.
17. Definition of the Terms Business Day and Subsidiary. For purposes of this
Agreement, (a) business day means any day on which the New York Stock Exchange, Inc. is open for
trading and (b) affiliate and subsidiary have their respective meanings set forth in Rule 405
of the Rules and Regulations.
18. Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH
THE LAWS OF THE STATE OF NEW YORK.
19. Jurisdiction; Venue. The parties hereby consent to (i) nonexclusive jurisdiction in
the courts of the State of New York located in the City and County of New York or in the United
States District Court for the Southern District of New York, (ii) nonexclusive personal service
with respect thereto, and (iii) personal jurisdiction, service and venue in any court in which any
claim arising out of or in any way relating to this Agreement is brought by any third party against
the Underwriters or any indemnified party. Each of the parties (on its behalf and, to the extent
permitted by applicable law, on behalf of its limited partners and affiliates) waives all right to
trial by jury in any action, proceeding or counterclaim (whether based upon contract, tort or
otherwise) in any way arising out of or relating to this Agreement. The parties agree that a final
judgment in any such action, proceeding or counterclaim brought in any such court shall be
conclusive and binding upon the parties and may be enforced in any other courts to the jurisdiction
of which the parties is or may be subject, by suit upon such judgment.
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20. Counterparts. This Agreement may be executed in one or more counterparts and, if
executed in more than one counterpart, the executed counterparts shall each be deemed to be an
original but all such counterparts shall together constitute one and the same instrument.
21. Amendments. No amendment or waiver of any provision of this Agreement, nor any consent
or approval to any departure therefrom, shall in any event be effective unless the same shall be in
writing and signed by the parties hereto.
22. Headings. The headings herein are inserted for convenience of reference only and are
not intended to be part of, or to affect the meaning or interpretation of, this Agreement.
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If the foregoing correctly sets forth the agreement among the Enterprise Parties and the
Underwriters, please indicate your acceptance in the space provided for that purpose below.
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Very truly yours, |
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ENTERPRISE PRODUCTS PARTNERS L.P. |
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Enterprise Products GP, LLC, its general partner |
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/s/ Richard H. Bachmann |
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Richard H. Bachmann |
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Executive Vice President, Chief Legal Officer and Secretary |
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ENTERPRISE PRODUCTS OLPGP, INC. |
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/s/ Richard H. Bachmann |
|
|
|
|
|
|
|
|
|
Richard H. Bachmann |
|
|
|
|
Executive Vice President, Chief Legal Officer and Secretary |
|
|
|
|
|
|
|
|
|
ENTERPRISE PRODUCTS OPERATING L.P. |
|
|
By: |
|
Enterprise Products OLPGP, Inc., its general partner |
|
|
|
|
|
|
|
|
|
|
|
By:
|
|
/s/ Richard H. Bachmann |
|
|
|
|
|
|
|
|
|
|
|
|
|
Richard H. Bachmann |
|
|
|
|
|
|
Executive Vice President, Chief Legal Officer and Secretary |
30
For themselves and as Representatives of the several Underwriters named in Schedule I hereto.
|
|
|
|
|
|
|
By: CITIGROUP GLOBAL MARKETS INC. |
|
|
|
|
|
|
|
|
|
|
|
By:
|
|
/s/ Trevor Heinzinger |
|
|
|
|
|
|
|
|
|
|
|
Name: Trevor Heinzinger |
|
|
|
|
Title: Vice President |
|
|
|
|
|
|
|
|
|
By: UBS SECURITIES LLC |
|
|
|
|
|
|
|
|
|
|
|
By:
|
|
/s/ Christopher C. Juban |
|
|
|
|
|
|
|
|
|
|
|
Name: Christopher C. Juban |
|
|
|
|
Title: Director |
|
|
|
|
|
|
|
|
|
|
|
By:
|
|
/s/ Brian Henry |
|
|
|
|
|
|
|
|
|
|
|
Name: Brian Henry |
|
|
|
|
Title: Associate Director |
|
|
31
Schedule I
|
|
|
|
|
|
|
Number of Firm Units |
Underwriters |
|
to be Purchased |
Citigroup Global Markets Inc. |
|
|
2,282,158 |
|
UBS Securities LLC |
|
|
2,282,158 |
|
Lehman Brothers Inc. |
|
|
1,186,722 |
|
Morgan Stanley & Co. Incorporated |
|
|
1,186,722 |
|
Wachovia Capital Markets, LLC |
|
|
958,506 |
|
Goldman, Sachs & Co. |
|
|
639,004 |
|
A.G. Edwards & Sons, Inc. |
|
|
547,718 |
|
Raymond James & Associates, Inc. |
|
|
547,718 |
|
RBC Capital Markets Corporation |
|
|
547,718 |
|
Sanders Morris Harris Inc. |
|
|
547,718 |
|
Banc of America Securities LLC |
|
|
91,286 |
|
Natexis Bleichroeder Inc. |
|
|
91,286 |
|
Oppenheimer & Co. Inc. |
|
|
91,286 |
|
TOTAL |
|
|
11,000,000 |
|
|
|
|
|
|
Schedule I
Schedule II
Additional Pricing Disclosure Package
|
|
|
Number of Units:
|
|
11,000,000 Firm Units or, if the Underwriters
exercise in full their option to purchase
additional Units granted in Section 2 hereof,
11,650,000 Units |
|
|
|
Public offering price
for the Units:
|
|
$25.80 per unit |
|
|
|
First Delivery Date:
|
|
September 12, 2006 |
|
|
|
Stabilizing Transactions:
|
|
Prior to purchasing the common units being
offered pursuant to the prospectus supplement,
between September 6, 2006 and September 7, 2006,
one of the underwriters purchased, on behalf of
the syndicate, 254,300 common units at an
average price of $25.8071 per unit in
stabilizing transactions. |
Schedule II
Schedule III
Subsidiaries of the Operating Partnership
|
|
|
|
|
|
|
|
|
|
|
Ownership |
|
|
Jurisdiction of |
|
Interest |
Subsidiary |
|
Formation |
|
Percentage |
Enterprise Gas Processing, LLC |
|
Delaware |
|
|
100.00 |
% |
Enterprise GTMGP, LLC |
|
Delaware |
|
|
100.00 |
% |
Enterprise GTM Holdings L.P. |
|
Delaware |
|
|
100.00 |
% |
Enterprise Lou-Tex Propylene Pipeline L.P. |
|
Texas |
|
|
100.00 |
% |
Enterprise Products GTM, LLC |
|
Delaware |
|
|
100.00 |
% |
Enterprise Hydrocarbons L.P. |
|
Delaware |
|
|
100.00 |
% |
Enterprise Field Services, L.L.C. |
|
Delaware |
|
|
100.00 |
% |
Enterprise Texas Pipeline L.P. |
|
Delaware |
|
|
100.00 |
% |
Mapletree, LLC |
|
Delaware |
|
|
100.00 |
% |
Mid-America Pipeline Company, LLC |
|
Delaware |
|
|
100.00 |
% |
Schedule III
Schedule IV
Affiliates, Executive Officers
and Directors Subject to Lock-Up Agreements
EPCO, Inc. (formerly Enterprise Products Company)
Enterprise GP Holdings L.P.
DFI Delaware Holdings L.P. (formerly Enterprise Products Delaware Holdings L.P.)
Duncan Family 2000 Trust
Duncan Family 1998 Trust
Richard H. Bachmann
E. William Barnett
Stephen L. Baum
Michael A. Creel
Ralph S. Cunningham
Dan L. Duncan
W. Randall Fowler
Philip C. Jackson Jr.
Michael J. Knesek
James H. Lytal
Robert G. Phillips
A. James Teague
Schedule IV
Schedule V
Issuer Free Writing Prospectuses
other than those to which the Underwriters provided their consent
None.
Schedule V
EXHIBIT A
FORM OF ISSUERS COUNSEL OPINION
1. Each of the General Partner, the Partnership, the Operating Partnership and OLPGP is
validly existing in good standing as a limited liability company, limited partnership or
corporation, as applicable, under the laws of the State of Delaware with all necessary limited
liability company, limited partnership or corporate, as the case may be, power and authority to own
or lease its properties and conduct its businesses and, in the case of the General Partner, to act
as the general partner of the Partnership and, in the case of OLPGP, to act as the general partner
of the Operating Partnership, in each case in all material respects as described in the
Registration Statement and the Prospectus. Each of the General Partner, the Partnership, the
Operating Partnership and OLPGP is duly registered or qualified as a foreign limited liability
company, limited partnership or corporation, as the case may be, for the transaction of business
under the laws of the State of Texas.
2. The General Partner is the sole general partner of the Partnership with a 2.0% general
partner interest in the Partnership (including the right to receive Incentive Distributions (as
defined in the Partnership Agreement)); such general partner interest has been duly authorized and
validly issued in accordance with the Partnership Agreement; and the General Partner owns such
general partner interest free and clear of all liens, encumbrances, security interests, charges or
claims (A) in respect of which a financing statement under the Uniform Commercial Code of the State
of Delaware naming the General Partner as debtor is on file in the office of the Secretary of State
of the State of Delaware or (B) otherwise known to such counsel without independent investigation,
other than those created by or arising under Sections 17-607 or 17-303 of the Delaware LP Act.
3. To the knowledge of such counsel, EPE owns 100% of the issued and outstanding membership
interests in the General Partner; such membership interests have been duly authorized and validly
issued in accordance with the GP LLC Agreement; and EPE owns such membership interests free and
clear of all liens, encumbrances, security interests, equities, charges or claims, in each case,
(A) in respect of which a financing statement under the Uniform Commercial Code of the State of
Delaware naming EPE as debtor is on file in the office of the Secretary of State of the State of
Delaware, or (B) otherwise known to such counsel without independent investigation, other than
those created by or arising under Section 18-607 of the Delaware LLC Act, and those in favor of
lenders of EPE.
4. The Partnership owns 100% of the issued and outstanding capital stock in the OLPGP; such
capital stock has been duly authorized and validly issued in accordance with the OLPGP Bylaws and
the OLPGP Certificate of Incorporation; and the Partnership owns such capital stock free and clear
of all liens, encumbrances, security interests, charges or claims (A) in respect of which a
financing statement under the Uniform Commercial Code of the State of Delaware naming the
Partnership as debtor is on file in the office of the Secretary of State of the State of Delaware
or (B) otherwise known to such counsel without independent investigation.
5. (i) The OLPGP is the sole general partner of the Operating Partnership with a 0.001%
general partner interest in the Operating Partnership; such general partner interest has
A-1
been duly authorized and validly issued in accordance with the Operating Partnership
Agreement; and the OLPGP owns such general partner interest free and clear of all liens,
encumbrances, security interests, charges or claims (A) in respect of which a financing statement
under the Uniform Commercial Code of the State of Delaware naming the OLPGP as debtor is on file in
the office of the Secretary of State of the State of Delaware or (B) otherwise known to such
counsel without independent investigation, other than those created by or arising under Sections
17-607 or 17-303 of the Delaware LP Act; and (ii) the Partnership is the sole limited partner of
the Operating Partnership with a 99.999% limited partner interest in the Operating Partnership;
such limited partner interest has been duly authorized and validly issued in accordance with the
Operating Partnership Agreement and is fully paid (to the extent required under the Operating
Partnership Agreement) and non-assessable (except as such non-assessability may be affected by
Sections 17-607 or 17-303 of the Delaware LP Act); and the Partnership owns such limited partner
interest free and clear of all liens, encumbrances, security interests, charges or claims (A) in
respect of which a financing statement under the Uniform Commercial Code of the State of Delaware
naming the Partnership as debtor is on file in the office of the Secretary of State of the State of
Delaware or (B) otherwise known to such counsel without independent investigation, other than those
created by or arising under Sections 17-607 or 17-303 of the Delaware LP Act.
6. (i) The GP LLC Agreement has been duly authorized, executed and delivered by EPE and is a
valid and legally binding agreement of EPE, enforceable against EPE in accordance with its terms;
(ii) the Partnership Agreement has been duly authorized, executed and delivered by the General
Partner and is a valid and legally binding agreement of the General Partner, enforceable against
the General Partner in accordance with its terms; and (iii) the Operating Partnership Agreement has
been duly authorized, executed and delivered by each of the OLPGP and the Partnership and is a
valid and legally binding agreement of each of the OLPGP and the Partnership, enforceable against
each of the OLPGP and the Partnership in accordance with its terms; provided that, with respect to
each such agreement, the enforceability thereof may be limited by (A) applicable bankruptcy,
insolvency, moratorium, fraudulent conveyance, fraudulent transfer and similar laws relating to or
affecting creditors rights generally, (B) principles of equity (regardless of whether such
enforceability is considered in a proceeding in equity or at law), (C) public policy limitations,
(D) applicable law relating to fiduciary duties, and (E) indemnification and an implied covenant of
good faith and fair dealing.
7. As of the date hereof and immediately prior to the issuance of the Units pursuant to the
Underwriting Agreement, there were 419,184,217 issued and outstanding Common Units.
8. The Units and the limited partner interests represented thereby have been duly authorized
by the Partnership and, when issued and delivered to the Underwriters against payment therefor in
accordance with the terms of the Underwriting Agreement, will be validly issued, fully paid (to the
extent required under the Partnership Agreement) and non-assessable (except as such
non-assessability may be affected by Sections 17-607 and 17-303 of the Delaware LP Act and as
described in the Prospectus).
9. Except for rights that have been effectively complied with or waived, there are no
preemptive rights or other rights to subscribe for or to purchase, nor any restriction upon the
voting or transfer of, any partnership or membership interests or capital stock in the Enterprise
A-2
Parties, in each case pursuant to the organizational documents of such entity. To such
counsels knowledge, neither the filing of the Registration Statement nor the offering or sale of
the Units as contemplated by the Underwriting Agreement gives rise to any rights for or relating to
the registration of any Common Units or other securities of the Partnership, other than as have
been waived, effectively complied with or satisfied.
10. The Partnership has all requisite partnership power and authority to issue, sell and
deliver the Units in accordance with and upon the terms and conditions set forth in the
Underwriting Agreement, the Partnership Agreement, the Registration Statement and Prospectus.
11. The Underwriting Agreement has been duly authorized and validly executed and delivered by
each of the Enterprise Parties.
12. None of (i) the offering, issuance and sale by the Partnership of the Units, (ii) the
execution, delivery and performance of the Underwriting Agreement by the Enterprise Parties, or
(iii) the consummation by the Enterprise Parties of the transactions contemplated thereby (A)
constitutes or will constitute a violation of the certificate of limited partnership or agreement
of limited partnership, certificate of formation or limited liability company agreement,
certificate or articles of incorporation or bylaws or other organizational documents of any of the
Enterprise Parties or (B) results or will result in any violation of the Delaware LP Act, the
Delaware LLC Act, the Delaware General Corporation Law (the DGCL), the laws of the State of Texas
or the applicable laws of the United States of America; which violations, in the case of clause
(B), would, individually or in the aggregate, have a material adverse effect on the financial
condition, business or results of operations of the Partnership Entities, taken as a whole or could
materially impair the ability of any of the Enterprise Parties to perform its obligations under the
Underwriting Agreement; provided, however, that for purposes of this paragraph, such counsel
expresses no opinion with respect to federal or state securities laws or other antifraud laws.
13. No Governmental Approval, which has not been obtained or taken and is not in full force
and effect, is required in connection with (i) the offering, issuance and sale by the Partnership
of the Units, (ii) the execution, delivery and performance of the Underwriting Agreement by the
Enterprise Parties or (iii) the consummation of the transactions contemplated by the Underwriting
Agreement, except for such consents required under state securities or Blue Sky laws, as to which
such counsel need not express any opinion. As used in this paragraph, Governmental Approval
means any consent, approval, license, authorization or validation of, or filing, recording or
registration with, any executive, legislative, judicial, administrative or regulatory body of the
State of Texas, the State of Delaware or the United States of America, pursuant to applicable laws
of the State of Texas, the State of Delaware or applicable laws of the United States of America.
14. The statements under the captions Description of Our Common Units, Cash Distribution
Policy and Description of Our Partnership Agreement in the Prospectus, insofar as such
statements purport to summarize certain provisions of documents and legal matters referred to
therein, fairly summarize such provisions and legal matters in all material respects, subject to
the qualifications and assumptions stated therein; and the Common Units conform in all material
respects to the description set forth under Description of Our Common Units in the Prospectus.
A-3
15. The statements under the caption Material Tax Consequences in the Prospectus Supplement,
insofar as they refer to statements of law or legal conclusions, fairly summarize the matters
referred to therein in all material respects, subject to the qualifications and assumptions stated
therein.
16. The opinion of Andrews Kurth LLP that is filed as Exhibit 8.1 on Form 8-K (filed with the
Commission on September 8, 2006) is confirmed and the Underwriters may rely upon such opinion as if
it were addressed to them.
17. None of the Partnership Entities is an investment company, as such term is defined in
the Investment Company Act of 1940, as amended.
18. Any required filing of the Prospectus pursuant to Rule 424(b) has been made in the manner
and within the time period required by such Rule.
Such counsel shall state that they have been orally advised by the Commission that the
Registration Statement was declared effective under the Securities Act on March 23, 2005; to the
knowledge of such counsel, no stop order suspending the effectiveness of the Registration Statement
has been issued and, to such counsels knowledge based on such oral communication with the
Commission, no proceedings for that purpose have been instituted or threatened by the Commission.
In addition, such counsel shall state that they have participated in conferences with officers
and other representatives of the General Partner and the Partnership, the independent registered
public accounting firm for the General Partner and the Partnership, your counsel and your
representatives, at which the contents of the Registration Statement, the Pricing Disclosure
Package and the Prospectus and related matters were discussed, and, although such counsel has not
independently verified, is not passing upon, and do not assume any responsibility for the accuracy,
completeness or fairness of, the statements contained or incorporated by reference in the
Registration Statement, the Pricing Disclosure Package and the Prospectus (except as and to the
extent set forth in opinions 14 and 15 above), on the basis of the foregoing (relying to a limited
extent with respect to factual matters upon statements by officers and other representatives of the
Partnership Entities and their subsidiaries), (a) such counsel confirms that, in their opinion,
each of the Registration Statement, as of the latest Effective Date, the Preliminary Prospectus, as
of its date, and the Prospectus, as of its date, appeared on its face to be appropriately
responsive, in all material respects, to the requirements of the Securities Act and the Rules and
Regulations (except that such counsel need not make a statement with respect to Regulation S-T)
and, (b) no facts have come to such counsels attention that have led them to believe that (i) the
Registration Statement, as of the latest Effective Date, contained an untrue statement of a
material fact or omitted to state any material fact required to be stated therein or necessary to
make the statements therein not misleading, (ii) the Pricing Disclosure Package, as of the
Applicable Time, contained an untrue statement of a material fact or omitted to state any material
fact necessary to make the statements therein, in the light of the circumstances under which they
were made, not misleading, or (iii) the Prospectus, as of its date and as of the Delivery Date,
contained or contains an untrue statement of a material fact or omitted or omits to state any
material fact necessary to make the statements therein, in the light of the circumstances under
which they were made, not misleading; it being understood that such counsel expresses no
A-4
statement or belief in this letter with respect to (A) the financial statements and related
schedules, including the notes and schedules thereto and the auditors report thereon, (B) any
other financial or statistical data, included or incorporated or deemed incorporated by reference
in, or excluded from, the Registration Statement, the Preliminary Prospectus, the Prospectus or the
Pricing Disclosure Package, and (C) representations and warranties and other statements of fact
included in the exhibits to the Registration Statement or to the Incorporated Documents.
In rendering such opinions, such counsel may (A) rely in respect of matters of fact upon
certificates of officers and employees for the Partnership Entities and of the transfer agent of
the Partnership and upon information obtained from public officials, (B) assume that all documents
submitted to them as originals are authentic, that all copies submitted to them conform to the
originals thereof, and that the signatures on all documents examined by them are genuine, (C) state
that their opinion is limited to the Delaware LP Act, the Delaware LLC Act, the DGCL and the laws
of the State of Texas, the applicable laws of the United States of America and, with respect to the
opinion set forth in paragraph 15 above, United States federal income tax law, (D) with respect to
the opinion expressed in paragraph 1 above as to the due qualification or registration under the
laws of the State of Texas as a foreign limited partnership, limited liability company or
corporation, as the case may be, of the General Partner, the Partnership, the Operating Partnership
and the OLPGP, state that such opinions are based solely on certificates of foreign qualification
or registration for each such entity provided by the Secretary of State of the State of Texas, and
(E) state that such counsel expresses no opinion with respect to (i) any permits to own or operate
any real or personal property or (ii) state or local tax statutes to which any of the limited
partners of the Partnership or any of the Enterprise Parties or the General Partner may be subject.
A-5
EXHIBIT B
FORM OF GENERAL COUNSELS OPINION
1. Each of the Partnership Entities (other than the Enterprise Parties) has been duly formed
or incorporated, as the case may be, and is validly existing and in good standing under the laws of
its respective jurisdiction of formation with all necessary corporate, limited liability company or
limited partnership, as the case may be, power and authority to own or lease its properties and
conduct its business, in each case in all material respects as described in the Registration
Statement and the Prospectus. Each of the Partnership Entities (other than the Enterprise Parties)
is duly registered or qualified as a foreign corporation, limited partnership or limited liability
company, as the case may be, for the transaction of business under the laws of each jurisdiction in
which its ownership or lease of property or the conduct of its businesses requires such
qualification or registration, except where the failure to so qualify or register would not,
individually or in the aggregate, have a Material Adverse Effect.
2. All of the outstanding shares of capital stock, partnership interests or membership
interests, as the case may be, of each of the Partnership Entities (other than the Enterprise
Parties) have been duly and validly authorized and issued, are fully paid and non-assessable.
Except as described in the Prospectus, the Operating Partnership and/or the Partnership, as the
case may be, directly or indirectly, owns the shares of capital stock, partnership interests or
membership interests, as applicable, in each of the Partnership Entities (other than the Enterprise
Parties and the General Partner) as set forth on Schedule III, free and clear of any lien, charge,
encumbrance, security interest, restriction upon voting or any other claim.
3. Except as described in the Prospectus and for rights that have been waived, there are no
preemptive rights or other rights to subscribe for or to purchase, nor any restriction upon the
voting or transfer of, any capital stock or partnership or membership interests or capital stock
(a) in the Partnership Entities (other than the Enterprise Parties), in each case, pursuant to the
organizational documents of any such entity or (b) in the Partnership Entities pursuant to any
agreement or other instrument known to such counsel to which any of them is a party or by which any
of them may be bound (other than the organizational documents of such entity). To such counsels
knowledge, neither the filing of the Registration Statement nor the offering or sale of the Units
as contemplated by the Underwriting Agreement gives rise to any rights for or relating to the
registration of any Common Units or other securities of the Partnership or any of its subsidiaries,
other than as have been waived. To such counsels knowledge, except for options granted pursuant
to employee benefits plans, qualified unit option plans or other employee compensation plans and
the Partnerships DRIP, there are no outstanding options or warrants to purchase any partnership or
membership interests or capital stock in any Partnership Entity.
4. Each of the Enterprise Parties has all requisite right, power and authority to execute and
deliver the Underwriting Agreement and to perform its respective obligations thereunder. The
Partnership has all requisite partnership power and authority to issue, sell and deliver the Firm
Units in accordance with and upon the terms and conditions set forth in the Underwriting Agreement,
the Partnership Agreement, the Registration Statement and Prospectus. All action required to be
taken by the Enterprise Parties or any of their security holders, partners
B-1
or members for (i) the due and proper authorization, execution and delivery of this Agreement,
(ii) the authorization, issuance, sale and delivery of the Units and (iii) the consummation of the
transactions contemplated hereby has been duly and validly taken.
5. None of (i) the offering, issuance and sale by the Partnership of the Units, (ii) the
execution, delivery and performance of the Underwriting Agreement by the Enterprise Parties, or
(iii) the consummation of the transactions contemplated hereby (A) conflicts or will conflict with
or constitutes or will constitute a violation of the certificate of limited partnership or
agreement of limited partnership, certificate of formation or limited liability company agreement,
certificate or articles of incorporation or bylaws or other organizational documents of any of the
Partnership Entities (other than the Enterprise Parties), (B) conflicts or will conflict with or
constitutes or will constitute a breach or violation of, or a default (or an event that, with
notice or lapse of time or both, would constitute such a default) under, any indenture, mortgage,
deed of trust, loan agreement, lease or other agreement or instrument known to such counsel to
which any of the Partnership Entities is a party or by which any of them or any of their respective
properties may be bound, or (C) will result, to the knowledge of such counsel, in any violation of
any judgment, order, decree, injunction, rule or regulation of any court, arbitrator or
governmental agency or body having jurisdiction over any of the Partnership Entities or any of
their assets or properties, or (D) results or will result in the creation or imposition of any
lien, charge or encumbrance upon any property or assets of any of the Partnership Entities, which
conflicts, breaches, violations, defaults or liens, in the case of clauses (B), (C) or (D), would,
individually or in the aggregate, have a material adverse effect on the financial condition,
business or results of operations of the Partnership Entities, taken as a whole, or could
materially impair the ability of any of the Enterprise Parties to perform its obligations under the
Underwriting Agreement.
6. To the knowledge of such counsel, (a) there is no legal or governmental proceeding pending
or threatened to which any of the Partnership Entities is a party or to which any of their
respective properties is subject that is required to be disclosed in the Registration Statement or
the Prospectus and is not so disclosed and (b) there are no agreements, contracts or other
documents to which any of the Partnership Entities is a party that are required to be described in
the Registration Statement or the Prospectus or to be filed as exhibits to the Registration
Statement that are not described or filed as required.
In addition, such counsel shall state that he has participated in conferences with officers
and other representatives of the Partnership Entities, the independent registered public accounting
firm for the General Partner and the Partnership, your counsel and your representatives, at which
the contents of the Registration Statement, the Pricing Disclosure Package and the Prospectus and
related matters were discussed, and, although such counsel has not independently verified, is not
passing upon and does not assume any responsibility for the accuracy, completeness or fairness of,
the statements contained or incorporated by reference in, the Registration Statement, the Pricing
Disclosure Package and the Prospectus (except as and to the extent set forth in certain opinions
above), on the basis of the foregoing (relying to a limited extent with respect to factual matters
upon statements by officers and other representatives of the Partnership Entities and their
subsidiaries), no facts have come to such counsels attention that have led him to believe that (i)
the Registration Statement, as of the latest Effective Date, contained an untrue statement of a
material fact or omitted to state any material fact required to be stated therein or necessary to
make the statements therein not misleading, (ii) the Pricing
B-2
Disclosure Package, as of the Applicable Time, contained an untrue statement of a material
fact or omitted to state any material fact necessary to make the statements therein, in the light
of the circumstances under which they were made, not misleading, or (iii) the Prospectus, as of its
date and as of the Delivery Date, contained or contains an untrue statement of a material fact or
omitted or omits to state any material fact necessary to make the statements therein, in the light
of the circumstances under which they were made, not misleading; it being understood that such
counsel expresses no statement or belief in this letter with respect to (i) the financial
statements and related schedules, including the notes and schedules thereto and the auditors
report thereon, any other financial or statistical data, included or incorporated or deemed
incorporated by reference in, or excluded from, the Registration Statement or the Prospectus or the
Pricing Disclosure Package, and (ii) representations and warranties and other statements of fact
included in the exhibits to the Registration Statement or to the Incorporated Documents.
In rendering such opinion, such counsel may (A) rely on certificates of officers and
representatives of the Partnership Entities and upon information obtained from public officials,
(B) assume that all documents submitted to him as originals are authentic, that all copies
submitted to him conform to the originals thereof, and that the signatures on all documents
examined by him are genuine, (C) state that his opinion is limited to federal laws, the Delaware LP
Act, the Delaware LLC Act, the DGCL and the laws of the State of Texas, and (D) state that such
counsel expresses no opinion with respect to: (i) any permits to own or operate any real or
personal property, (ii) the title of any of the Partnership Entities to any of their respective
real or personal property, other than with regard to the opinions set forth above regarding the
ownership of capital stock, partnership interests and membership interests, or with respect to the
accuracy or descriptions of real or personal property or (iii) state or local taxes or tax statutes
to which any of the limited partners of the Partnership or any of the Partnership Entities may be
subject.
B-3
EXHIBIT C
FORM OF LOCK-UP LETTER AGREEMENT
September 7, 2006
Citigroup Global Markets Inc.
UBS Securities LLC
As Representatives of the several
Underwriters
named in Schedule I to the Underwriting Agreement,
c/o Citigroup Global Markets Inc.
388 Greenwich Street
New York, New York 10013
Ladies and Gentlemen:
The undersigned understands that you propose to enter into an Underwriting Agreement (the
Underwriting Agreement) with the Enterprise Parties providing for the purchase by you of
common units, each representing a limited partner interest (the Units) in the
Partnership, and that you propose to reoffer the Units to the public (the Offering).
Capitalized terms used but not defined herein have the meanings given to them in the Underwriting
Agreement.
In consideration of the execution of the Underwriting Agreement by you, and for other good and
valuable consideration, the undersigned hereby irrevocably agrees that the undersigned will not,
directly or indirectly, (i) offer for sale, sell, pledge or otherwise dispose of (or enter into any
transaction or device that is designed to, or could be expected to, result in the disposition by
any person at any time in the future of) any Common Units or securities convertible into, or
exchangeable for Common Units, or sell or grant options, rights or warrants with respect to any
Common Units or securities convertible into or exchangeable for Common Units (other than the grant
of options pursuant to option plans existing on the date hereof), in each case owned by the
undersigned on the date of execution of this Lock-up Letter Agreement or on the date of the
completion of the Offering, or (ii) enter into any swap or other derivatives transaction that
transfers to another, in whole or in part, any of the economic benefits or risks of ownership of
such Common Units, whether any such transaction described in clause (i) or (ii) above is to be
settled by delivery of Common Units or other securities, in cash or otherwise, or (iii) publicly
disclose the intention to do any of the foregoing, in each case for a period of 45 days from the
date of the Prospectus without the prior written consent of Citigroup Global Markets Inc. and UBS
Securities LLC; provided, however, that with respect to the undersigned, the foregoing restrictions
do not apply to sales pursuant to cashless-broker exercises of options for Common Units in
accordance with the Partnerships benefit plans as consideration for the exercise price and
withholding taxes applicable to such exercises.
In furtherance of the foregoing, the Partnership and its Transfer Agent are hereby authorized
to decline to make any transfer of securities if such transfer would constitute a violation or
breach of this Lock-Up Letter Agreement.
C-1
It is understood that, if the Partnership notifies you that it does not intend to proceed with
the Offering, if the Underwriting Agreement does not become effective, or if the Underwriting
Agreement (other than the provisions thereof that survive termination) shall terminate or be
terminated prior to payment for and delivery of the Units, the undersigned will be released from
his obligations under this Lock-Up Letter Agreement.
The undersigned understands that the Partnership and you will proceed with the Offering in
reliance on this Lock-Up Letter Agreement.
Whether or not the Offering actually occurs depends on a number of factors, including market
conditions. Any Offering will only be made pursuant to an Underwriting Agreement, the terms of
which are subject to negotiation between the Partnership and you.
The undersigned hereby represents and warrants that the undersigned has full power and
authority to enter into this Lock-Up Letter Agreement and that, upon request, the undersigned will
execute any additional documents necessary in connection with the enforcement hereof. Any
obligations of the undersigned shall be binding upon the heirs and personal representatives, in the
case of individuals, or successors and assigns, in the case of nonnatural persons, of the
undersigned.
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Yours very truly, |
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exv5w1
EXHIBIT 5.1
[Andrews Kurth Letterhead]
September 7, 2006
Enterprise Products Partners L.P.
1100 Louisiana, 10th Floor
Houston, Texas 77002
Ladies and Gentlemen:
We have acted as counsel to Enterprise Products Partners L.P., a Delaware limited partnership
(the Partnership), in connection with the
public offering of up to 12,650,000 of the
Partnerships common units (including common units to be issued upon exercise of the underwriters
option to purchase additional common units) (the Common Units) pursuant to the
Partnerships registration statement on Form S-3 (No. 333-123150) filed on March 4, 2005 by the
Partnership with the Securities and Exchange Commission (the Commission) under the
Securities Act of 1933, as amended (the Securities Act), and declared effective by the
Commission on March 23, 2005 (the Registration Statement). A prospectus supplement dated
September 7, 2006, which together with the prospectus filed with the Registration Statement shall
constitute the Prospectus, has been filed pursuant to Rule 424(b) promulgated under the
Securities Act. Capitalized terms not defined herein shall have the meanings ascribed to them in
the Underwriting Agreement dated September 7, 2006 relating to the offer and sale of the Common
Units (the Underwriting Agreement).
As the basis for the opinion hereinafter expressed, we have examined such statutes, including
the Delaware Revised Uniform Limited Partnership Act (the Delaware Act), regulations,
corporate records and documents, including the Fifth Amended and Restated Agreement of Limited
Partnership of the Partnership dated as of August 8, 2005 (the Partnership Agreement),
certificates of corporate and public officials, and other instruments and documents as we have
deemed necessary or advisable for the purposes of this opinion. In making our examination, we have
assumed that all signatures on documents examined by us are genuine, the authenticity of all
documents submitted to us as originals and the conformity with the original documents of all
documents submitted to us as certified, conformed or photostatic copies. We have also assumed that
all Common Units will be issued and sold in the manner described in the Prospectus and in
accordance with the terms of the Underwriting Agreement.
Based upon the foregoing, and subject to the limitations and assumptions set forth herein, and
having due regard for such legal considerations as we deem relevant, we are of the opinion that (i)
the issuance of the Common Units by the Partnership in accordance with the terms of the
Underwriting Agreement has been duly authorized by the general partner of the Partnership and (ii)
when the Common Units have been issued and delivered in accordance with the terms of the
Underwriting Agreement, the Common Units will be validly issued, fully paid (to the extent required
under the Partnership Agreement) and non-assessable (except as such non-assessability
Enterprise Products Partners L.P.
September 7, 2006
Page 2
may be affected by Sections 17-607 or 17-303 of the Delaware Act and as described in the
Prospectus).
We express no opinion other than as to the federal laws of the United States of America and
the Delaware Act (which is deemed to include the applicable provisions of the Delaware Constitution
and reported judicial opinions interpreting those laws).
We consent to the filing of this opinion as an exhibit to a Current Report on Form 8-K, and we
further consent to the use of our name under the caption Legal Matters in the Prospectus. In
giving these consents, we do not thereby admit that we are within the category of persons whose
consent is required under Section 7 of the Securities Act or the rules and regulations issued
thereunder.
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Very truly yours, |
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ANDREWS KURTH LLP
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exv8w1
EXHIBIT 8.1
[Andrews Kurth Letterhead]
September 7, 2006
Enterprise Products Partners L.P.
1100 Louisiana, 10th Floor
Houston, Texas 77002
Ladies and Gentlemen:
We have acted as special counsel to Enterprise Products Partners L.P. (the Partnership), a
Delaware limited partnership, with respect to certain legal matters in connection with the
preparation of a prospectus supplement dated September 7, 2006 (the Prospectus Supplement)
forming a part of the Registration Statement on Form S-3 filed by the Partnership with the
Securities and Exchange Commission (the Commission) on March 4, 2005 and declared effective by the commission on March 23, 2005 (the
Registration Statement) in connection with the offer and sale (the Offering) of up to an
aggregate of 12,650,000 common units representing limited partner interests in the Partnership (the
Common Units). In connection therewith, we have participated in the preparation of the
discussion set forth under the caption Material Tax Consequences (the Discussion) in the
Prospectus Supplement. Capitalized terms used and not otherwise defined herein are used as defined
in the Registration Statement.
The Discussion, subject to the qualifications and assumptions stated in the Discussion and the
limitations and qualifications set forth herein, constitutes our opinion as to the material United
States federal income tax consequences for purchasers of the Common Units pursuant to the Offering.
This opinion letter is limited to the matters set forth herein, and no opinions are intended
to be implied or may be inferred beyond those expressly stated herein. Our opinion is rendered as
of the date hereof and we assume no obligation to update or supplement this opinion or any matter
related to this opinion to reflect any change of fact, circumstances, or law after the date hereof.
In addition, our opinion is based on the assumption that the matter will be properly presented to
the applicable court.
Furthermore, our opinion is not binding on the Internal Revenue Service or a court. In
addition, we must note that our opinion represents merely our best legal judgment on the matters
presented and that others may disagree with our conclusion. There can be no assurance that the
Internal Revenue Service will not take a contrary position or that a court would agree with our
opinion if litigated.
We hereby consent to the filing of this opinion as an exhibit to a Current Report on Form 8-K
of the Partnership and to the references to our firm and this opinion contained in the Discussion.
In giving this consent, we do not admit that we are experts under the Securities Act of 1933, as
amended, or under the rules and regulations of the Commission relating thereto, with respect to any
part of the Registration Statement, including this exhibit to the Current Report on Form 8-K.
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Very truly yours, |
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ANDREWS KURTH LLP
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