Equity Compensation Plan Information
The following table summarizes information about our equity compensation plan as of December 31,
2011.
Number of
securities to be
issued upon
exercise of
outstanding
options, warrants
and rights (1)
Weighted-
average
exercise price
of outstanding
options,
warrants and
rights
Number of securities
remaining available for
future issuance under
equity compensation
plans (excluding
securities reflected in
column (a))
(a)
(b)
(c)
Equity compensation plans approved by unitholders . . . . —
$—
—
Equity compensation plans not approved by
unitholders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . —
—
785,861
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . —
$—
785,861
(1) The long-term incentive plan currently permits the grant of awards covering an aggregate of 850,000 units.
For more information on our long-term incentive plan, which did not require approval by our limited
partners, refer to Item 11. “Executive Compensation—Components of Compensation.”
Item 13.
Certain Relationships and Related Transactions, and Director Independence
Distributions and Payments to our General Partner and its Affiliates
The following table summarizes the distributions and payments to be made by us to our General Partner
and its affiliates in connection with our formation, ongoing operation, and liquidation. These distributions and
payments are determined by and among affiliated entities and, consequently, are not the result of arm’s-length
negations.
Operational Stage:
Distributions of Available Cash to our
General Partner and its affiliates . . . . . We will generally make cash distributions to the unitholders and to
our General Partner, in accordance with their pro rata interest. In
addition, if distributions exceed the minimum quarterly distribution
and other higher target levels, our General Partner will be entitled to
increasing percentages of the distributions, up to 48% of the
distributions above the highest target level. Currently, our
distribution to our general partner related to its incentive distribution
rights is at the highest level.
Payments to our General Partner and
its affiliates . . . . . . . . . . . . . . . . . . . . . We reimburse DCP Midstream, LLC and its affiliates $17.6 million
per year, For further information regarding the reimbursement.
Please see the “Omnibus Agreement” section below.
Withdrawal or removal of our General
Partner . . . . . . . . . . . . . . . . . . . . . . . . .
If our General Partner withdraws or is removed, its general partner
interest and its incentive distribution rights will either be sold to the
new general partner for cash or converted into common units, in
each case for an amount equal to the fair market value of those
interests.
Liquidation Stage:
Liquidation . . . . . . . . . . . . . . . . . . . . . Upon our liquidation, the partners, including our General Partner,
will be entitled to receive liquidating distributions according to their
respective capital account balances.
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