Targa Resources Partners LP
EX-10.2
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<TYPE>EX-10.2
<SEQUENCE>2
<FILENAME>h65564exv10w2.htm
<DESCRIPTION>EX-10.2
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<DIV align="right" style="font-size: 10pt; margin-top: 12pt">Exhibit&nbsp;10.2
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Targa Resources Investments Inc.<BR>
Long Term Incentive Plan</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>Performance Unit Grant Agreement</B>

</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="20%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="25%">&nbsp;</TD>
</TR>
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<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Grantee:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Date of Grant:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&nbsp;&#95;&#95;&#95;,
200_
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><FONT style="white-space: nowrap">Number of Performance Units Granted:</FONT>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
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</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;<U>Performance Unit Grant</U>. I am pleased to inform you that you have been granted the
above number of Performance Units with respect to Common Units (&#147;Common Units&#148; or &#147;Units&#148;) of Targa
Resources Partners LP (the &#147;MLP&#148;) under the Targa Resources Investments Inc. Long Term Incentive
Plan (the &#147;Plan&#148;). A Performance Unit is a notional Common Unit of the MLP. Each Performance Unit
also includes a tandem Distribution Equivalent Right (&#147;DER&#148;). A DER is a right to receive an
amount equal to the cash distributions made with respect to a Common Unit during the Performance
Period (set forth on Attachment A) as described in Section&nbsp;4. The terms of the grant are subject
to the terms of the Plan and this Performance Unit Grant Agreement (this &#147;Agreement&#148;), which
includes Attachment A hereto.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;<U>Performance Goal and Payment</U>. Subject to the further provisions of this Agreement,
if, and to the extent, the Performance Goal (set forth on Attachment A) is achieved for the
Performance Period, then as soon as reasonably practical following the end of the Performance
Period (but in no event later than the 15th day of March following the end of the year during which
the Performance Period ends), you will receive, in cancellation of your Performance Units, an
amount of cash equal to the product of (i)&nbsp;your number of Performance Units times (ii)&nbsp;the
Performance Percentage (set forth in Item&nbsp;II on Attachment A) for the Performance Period times
(iii)&nbsp;the Fair Market Value of a Common Unit on the last day of the Performance Period. In
addition, you will receive cash relating to the amount of the DER that you are entitled to as
described in Section&nbsp;4. If, however, the minimum Performance Goal is not achieved for the
Performance Period, all of your Performance Units and DERs will be cancelled automatically without
payment at the end of the Performance Period.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;<U>Vesting.</U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If you cease to be employed by Targa Resources Investments Inc. and its Affiliates
(collectively, the &#147;Company&#148;) during the Performance Period for any reason other than as
provided below, all Performance Units and tandem DERs awarded to you shall be automatically
forfeited without payment upon your termination. For purposes of this Agreement,
&#147;employment with the Company&#148; shall include being an employee or a Director of, or a
Consultant to, the Company.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If you cease to be employed by the Company during the Performance Period as a
result of your death or a disability that entitles you to disability benefits under the
Company&#146;s long-term disability plan, or your employment is terminated by the Company other
than for Cause, you will be vested in any Performance Units that you are otherwise qualified
to receive payment for based on achievement of the Performance Goal at the end of the
Performance Period. If you are a party to an agreement with the Company in which the term
cause is defined, that definition of cause shall apply for purposes of the Plan and this
Agreement. Otherwise, &#147;Cause&#148; means (i)&nbsp;failure to perform assigned duties and
responsibilities (ii)&nbsp;engaging in conduct which is injurious (monetarily or otherwise) to
the Company or any of its Affiliates, (iii)&nbsp;breach of any corporate policy or code of
conduct established by the Company or breach of any agreement between the Company and you,
or (iv)&nbsp;conviction of a misdemeanor involving moral turpitude or a felony.
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;<U>DERs</U>. Beginning on the later of the Date of Grant and the first day of the
Performance Period and ending on the last day of the Performance Period, on each date during such
period that the MLP makes a cash distribution with respect to its Units you will be credited with
an amount of cash equal to the product of (i)&nbsp;the cash distributions paid with respect to a Common
Unit times (ii)&nbsp;your number of Performance Units. Your DERs shall be credited to a bookkeeping
account by the Company. As soon as practical following the end of the Performance Period (but in
no event later than the 15th day of March following the end of the year during which the
Performance Period ends), your DER account will be paid (without interest) to you in cash or
forfeited, as the case may be. The amount of your DER account to be paid to you will be equal to
the product of the Performance Percentage times the amount credited to your DER account. DERs
shall not be payable with respect to any Performance Unit that is forfeited or as to which you are
not otherwise qualified to receive payment for based on the Performance Goal at the end of the
Performance Period.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.&nbsp;<U>Change of Control</U>. Upon the occurrence of a Change of Control during the
Performance Period, the Performance Percentage shall be deemed to be 100% and your Performance
Units and all DER amounts, if any, then credited to you shall be cancelled on such date and you
will be paid an amount of cash equal to the sum of (i)&nbsp;the product of (a)&nbsp;the Fair Market Value of
a Common Unit times (b)&nbsp;the number of Performance Units granted to you plus (ii)&nbsp;the amount of DERs
then credited to you, if any.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.&nbsp;<U>Nontransferability of Award</U>. The Performance Units and DERs may not be
transferred, assigned, encumbered or pledged by you in any manner otherwise than by will or by the
laws of descent or distribution. The terms of the Plan and this Agreement shall be binding upon
your executors, administrators, heirs, successors and assigns.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.&nbsp;<U>Entire Agreement; Governing Law</U>. The Plan is incorporated herein by reference.
The Plan and this Agreement constitute the entire agreement of the parties with respect to the
subject matter hereof and, except as expressly provided in this Agreement, supersede in their
entirety all prior undertakings and agreements between you and Targa Resources Investments Inc. and
its Affiliates with respect to the same. This Agreement is governed by the internal substantive
laws, but not the choice of law rules, of the State of Texas.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.&nbsp;<U>Withholding of Taxes</U>. To the extent that the vesting or payment of Performance
Units or DERs results in the receipt of compensation by you with respect to which the Company has a
tax withholding obligation pursuant to applicable law, the Company shall withhold such tax from any
payment due you hereunder.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.&nbsp;<U>Amendments</U>. This Agreement may be modified only by a written agreement signed by
you and an authorized person on behalf of Targa Resources Investments Inc. who is expressly
authorized to execute such document; provided, however, notwithstanding the foregoing, Targa
Resources Investments Inc. may make any change to this Agreement without your consent if such
change is not materially adverse to your rights under this Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.&nbsp;<U>Plan Controls</U>. By accepting this grant, you agree that the Performance Units and
DERs are granted under and governed by the terms and conditions of the Plan and this Agreement. In
the event of any conflict between the Plan and this Agreement, the terms of the Plan shall control.
Unless otherwise defined herein, the terms defined in the Plan shall have the same defined
meanings in this Agreement.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
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<TR valign="bottom">
    <TD width="45%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
</TR>
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<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left"><B>TARGA RESOURCES INVESTMENTS INC.</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;By:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Name:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Rene R. Joyce
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Title:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Chief Executive Officer</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="center" style="font-size: 10pt; margin-top: 18pt">ATTACHMENT A
</DIV>


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<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">I.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Performance Period shall begin on
<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&nbsp;&#95;&#95;&#95;, 200&#95;&#95;&#95;and end on <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, 20&#95;&#95;&#95;.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">II.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Performance Goal</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The payment of a Performance Unit will be determined based on the comparison of (i)&nbsp;the Total
Return (as defined below) of a Common Unit for the Performance Period to (ii)&nbsp;the Total
Return of a share of the common stock/unit of each member of the Peer Group for the
Performance Period. Total Return shall be measured by (i)&nbsp;subtracting the average closing
price per share/unit for the first ten trading days of the Performance Period (the &#147;Beginning
Price&#148;) from the sum of (a)&nbsp;the average closing price per share/unit for the last ten trading
days ending on the date that is 15&nbsp;days prior to the end of the Performance Period plus (b)
the aggregate amount of dividends/distributions paid with respect to a share/unit during such
period (the result being referred to as the &#147;Value Increase&#148;) and (ii)&nbsp;dividing the Value
Increase by the Beginning Price.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="47%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="47%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center"><B>Peer Group Ranking</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Performance</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>(out of 13 companies)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Percentage<SUP style="font-size: 85%; vertical-align: text-top">1</SUP></B></TD>
</TR>

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<TR valign="bottom" style="background: #cceeff">
    <TD align="center" valign="top">No.&nbsp;1-7
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">100%</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">No.&nbsp;8
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">83.33%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="center" valign="top">No.&nbsp;9
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">66.67%</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">No.&nbsp;10<SUP style="font-size: 85%; vertical-align: text-top">2</SUP>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">50%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="center" valign="top">No.&nbsp;11-13
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">0%</TD>
</TR>
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</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left"><SUP style="font-size: 85%; vertical-align: text-top">1</SUP></TD>
    <TD>&nbsp;</TD>
    <TD>The Performance Percentage between No.&nbsp;7 and No.&nbsp;10 is a percentage between
50% and 100% based on a comparison of the Total Returns described above.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left"><SUP style="font-size: 85%; vertical-align: text-top">2</SUP></TD>
    <TD>&nbsp;</TD>
    <TD>No.&nbsp;10 is the minimum Performance Goal for which there is a Performance
Percentage.</TD>
</TR>

</TABLE>



<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">III.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Adjustments to Performance Goals for Certain Events</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>If, during the Performance Period, there is a change in accounting standards required by the
Financial Accounting Standards Board, the above performance goals shall be adjusted by the
Committee as appropriate, in its discretion, to disregard the effect of such change.</TD>
</TR>

</TABLE>
</DIV>
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</TABLE>
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<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">IV.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Peer Group shall consist of the following companies:</TD>
</TR>

</TABLE>
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="90%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><B>Company</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left"><B>Ticker</B></TD>
</TR>

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<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Energy Transfer Partners
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">ETP</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Oneok Partners
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">OKS</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Copano Energy
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">CPNO</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">DCP Midstream
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">DPM</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Regency Energy Partners
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">RGNC</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Plains All American Pipeline
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">PAA</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">MarkWest Energy Partners
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">MWE</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Williams Energy Partners
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">WPZ</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Magellan Midstream
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">MMP</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Martin Midstream
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">MMLP</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Enbridge Energy Partners
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">EEP</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Crosstex Energy
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">XTEX</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Targa Resources Partners LP
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">NGLS</TD>
</TR>
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</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Committee may add or delete companies from the Peer Group and provide a related
adjustment in the rankings at any time during the Performance Period, wherever, in its
discretion, such deletion or adjustment is appropriate to reflect that such peer company is
no longer publicly traded or is determined by the Committee to no longer be a peer of the MLP
(for example due to a member no longer being publicly traded) or to reflect any other
significant event.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">V.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Committee Certification</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>As soon as reasonably practical following the end of the Performance Period, the Committee
shall review the results for the Performance Period and certify those results in writing to
the Board. No Performance Units or DERs shall be paid prior to the Committee&#146;s
certification. However, Committee certification shall not apply in the event of a Change of
Control.</TD>
</TR>

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