Document:

exv10w10

EXHIBIT 10.10

PNGS GP LLC CLASS B

RESTRICTED UNITS AGREEMENT

     This PNGS GP LLC CLASS B RESTRICTED UNITS AGREEMENT (this “Agreement”) is entered into as of
«Grant_Date» (the “Grant Date”) by and between PNGS GP LLC, a Delaware limited liability company
(the “Company”), and «Executive» (“Executive”).

RECITALS:

     WHEREAS, to provide an incentive to Executive to enhance the profitability and growth of the
Company and its Affiliates and to encourage Executive to remain employed by the Company or its
Affiliates, the Company desires to grant to Executive «Units» Class B Units (the “Granted Units”)
on the Grant Date, which Granted Units shall have such rights, designations and preferences as are
set forth in this Agreement and the LLC Agreement;

     WHEREAS, the Company and Executive desire to enter into this Agreement to evidence certain
terms and conditions that relate to the grant, ownership and transfer of the Granted Units; and

     NOW, THEREFORE, in consideration of the mutual agreements set forth herein and other good and
valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Company
and Executive agree as follows:

ARTICLE I

DEFINITIONS AND CONSTRUCTION

     1.1 Construction. Unless the context requires otherwise: (a) the gender (or lack of gender)
of all words used in this Agreement includes the masculine, feminine, and neuter; (b) references to
Sections refer to sections of this Agreement; (c) references to Exhibits refer to the Exhibits
attached to this Agreement, each of which is made a part hereof for all purposes; (d) references to
money refer to legal currency of the United States of America; and (e) the word “including” means
“including without limitation.”

     1.2 Definitions. Capitalized terms used in this Agreement (including Exhibit A attached
hereto) that are not defined in this Section 1.2 or in the body of this Agreement shall have the
meanings given to them in the LLC Agreement.

     “Affiliate” of a person means any person controlling, controlled by, or under common control
with such person. As used herein, the terms “controlling”, “controlled by” and “under common
control with” mean the possession, directly or indirectly, of the power to direct or cause the
direction of management or policies (whether through ownership of securities or any partnership or
other ownership interest, by contract or otherwise) of a person. For the purposes of the preceding
sentence, control shall be deemed to exist when a person possesses, directly or indirectly, through
one or more intermediaries (a) in the case of a corporation, more than 50% of

 

 

the outstanding voting securities thereof; (b) in the case of a limited liability company,
partnership, limited partnership or venture, the right to more than 50% of the voting membership,
general partner or equivalent interest therein; or (c) in the case of any other person, more than
50% of the economic or beneficial interest therein.

     “Board” means the Board of Directors or governing board or committee of the Company.

     “Capital Call” means the occurrence of an event that requires the partners to make a cash
contribution to the Company pursuant to Section 3.1(c) of the LLC Agreement.

     “Capital Call Amount” means, with respect to a particular Capital Call, the aggregate amount
of the cash contributions required to be made to the Company by its members in connection
therewith.

     “Cause” means Executive’s (i) failure to perform his job function in accordance with standards
described to him in writing, or (ii) violation of the Company’s Code of Business Conduct (unless
waived in accordance with the terms thereof), in each case, with the specific failure or violation
described to Executive in writing.

     “Change in Control” means the determination by the Board that one of the following events has
occurred:

     (i) Any event as a result of which the Company or an Affiliate of the Company
retains neither direct nor indirect control over the MLP;

     (ii) PAA and its Affiliates (collectively referred to as the “Owner
Affiliates”) cease to own directly or indirectly at least 50% of the member
interests of the Company;

     (iii) a “person” or “group” (as such terms are used in Sections 13(d) and 14(d)
of the Exchange Act) other than the Owner Affiliates becomes after the Grant Date
the “beneficial owner” (as defined in Rules 13(d)-3 and 13(d)-5 under the Exchange
Act), directly or indirectly, of more than 50% of the member interests of the
Company; or

     (iv) a transfer, sale, exchange or other disposition in a single transaction or
series of transactions (whether directly ≥or indirectly, by merger or otherwise) of
all or substantially all of the assets of the Company or the MLP to one or more
persons who are not Affiliates of the Company, other than a transaction in which the
Owner Affiliates become the “beneficial owners”, directly or indirectly, of more
than 50% of the voting power of such person or persons immediately following such
transaction;

provided, however, that no Change of Control shall be deemed to have occurred in
connection with a restructuring or reorganization related to a GP IPO if the Owner
Affiliates retain direct or indirect control over the IPO Entity and the Company.

 

 

     “Class A Unit” means a Class A common unit of the Company.

     “Class B Series Cap” has the meaning set forth in the LLC Agreement.

     “Class B Unit” means a Class B common unit of the Company.

     “Company Distribution” means, with respect to a particular fiscal quarter, that portion of the
Company’s quarterly cash distributions, if any, payable pursuant to Section 4.1(b) of the LLC
Agreement.

     “Conversion Factor” means, as of a particular time, a fraction, (a) the numerator of which is
the most recent regular quarterly cash distribution paid with respect to an Earned Unit or Vested
Unit, and (b) the denominator of which is the most recent regular quarterly cash distribution paid
with respect to a Class A Unit.

     “Earned Unit” means, as of any date, a Granted Unit that has become “earned,” as provided in
Section 2.2(b), subject to the proviso to Section 2.2(a).

     “Exchange Act” means the Securities Exchange Act of 1934, as amended.

     “Forfeiture Event” means, with respect to a Restricted Unit or Earned Unit, the termination of
Executive’s employment with the Company and its Affiliates for any reason (including death or
disability) prior to such unit becoming a Vested Unit pursuant to Section 2.2(c) or (d).

     “GP IPO” means an initial registered public offering of equity interests in an entity that
owns directly or indirectly at least 75% of the incentive distribution rights issued by the MLP.

     “IPO Entity” means, with respect to a GP IPO, the entity that is registering its equity
interests under the Securities Act of 1933 in connection with such GP IPO.

     “LLC Agreement” means that certain Amended and Restated Limited Liability Company Agreement of
PNGS GP LLC dated as of May 5, 2010, as such agreement may be amended or restated from time to
time.

     “MLP” means PAA Natural Gas Storage L.P., a Delaware limited partnership.

     “MLP Quarterly Distribution” means the amount of the quarterly cash distribution made with
respect to a common unit of the MLP on the relevant quarterly distribution date for the MLP.

     “PAA” means Plains All American Pipeline, L.P.

     “Restricted Unit” means, as of any date, a Granted Unit that is not an Earned Unit or a Vested
Unit.

     “Transfer” means any direct or indirect transfer, assignment, sale, gift, pledge,
hypothecation or other encumbrance, or any other disposition (whether voluntary, involuntary or

 

 

by operation of law other than to the estate of Executive in the event of death), of
Restricted Units, Earned Units or Vested Units, including derivative or similar transactions or
arrangements whereby a portion or all of the economic interest in, risk of loss or opportunity for
gain with respect to, or voting or other rights, of such units are transferred or shifted to
another person.

     “Vested Unit” means an Earned Unit or a Restricted Unit that in either case becomes a “Vested
Unit” pursuant to Section 2.2(b), 2.2(c) or 2.2(d).

ARTICLE II

GRANT; FORFEITURE OF RESTRICTED UNITS

AND EARNED UNITS; DISTRIBUTIONS

     2.1 Grant. The Company hereby grants to Executive the Granted Units effective as of the Grant
Date. Unless Class A Units are uncertificated, the Company shall issue Executive a certificate
representing the Granted Units, and such certificate shall bear such legends as provided for in
Exhibit A and such additional legends as may be determined by Company counsel to reflect the other
terms and conditions of this Agreement and to comply with applicable securities laws. To insure
the availability for delivery of Executive’s Restricted Units upon a Forfeiture Event, Executive
hereby appoints the Secretary of the Company (or any other person designated by the Company) as
escrow agent, as Executive’s attorney-in-fact to sell, assign and transfer unto the Company such
Restricted Units or Earned Units, if any, and upon execution of this Agreement, Executive delivers
and deposits with the Secretary of the Company, or such other person designated by the Company, the
certificates representing the Granted Units, together with the unit assignment duly endorsed in
blank, attached hereto as Exhibit B. The Granted Units and unit assignment shall be held by the
Secretary (or any other person designated by the Company as escrow agent) in escrow, pursuant to
the Joint Escrow Instructions of the Company and Executive attached as Exhibit C hereto, until such
time as the Granted Units become forfeited or Vested Units, as the case may be, at which time
unless Class A Units are uncertificated, the Company shall issue and deliver to Executive a new
certificate or certificates evidencing the ownership of the Vested Units. Upon issuance of the new
certificate evidencing the ownership of the Vested Units, the certificate deposited with the escrow
agent shall be marked “Exchanged and Cancelled” and returned to the unit transfer book of the
Company and the Company shall deliver a replacement certificate to the escrow agent to reflect any
remaining Restricted Units and Earned Units. Any new certificate issued to evidence the ownership
of Vested Units shall bear such legends as may be determined by Company counsel to reflect the
terms and conditions of this Agreement and the LLC Agreement and to comply with applicable
securities laws.

     2.2 Vesting and Forfeitures of Restricted Units and Earned Units.

     (a) Forfeiture of Restricted Units. If a Forfeiture Event occurs, then Executive
shall, for no consideration, automatically forfeit to the Company as of the date such event
occurs all then Restricted Units and Earned Units of Executive on such date, and neither the
Executive nor any of his successors, heirs, assigns, or personal representatives shall
thereafter have any further rights or interests in such Restricted Units or Earned Units or
the certificates representing such Restricted Units and Earned Units; provided, however, if
such Forfeiture Event is termination of Executive’s

 

 

employment (A) by reason of death or disability or (B) by the Company or any of its
Affiliates without Cause, then for all purposes of this Agreement, such Forfeiture Event
shall be suspended and shall not be deemed to occur until the 180th day after the date of
such termination unless during such 180-day period (x) Executive shall breach in any
material respect any confidentiality obligation to the Company or any of its Affiliates or
(y) any of the events described in clause (ii) of the definition of “Cause” shall occur or
shall be discovered to have occurred, in which case (1) for all purposes of this Agreement,
such Forfeiture Event shall be deemed to have occurred on the date of such termination and
(2) any Granted Unit which otherwise would have become an Earned Unit or a Vested Unit
during such suspension period shall be deemed to be a Restricted Unit for all purposes under
this Agreement and, for the avoidance of doubt, shall (together with all other Restricted
Units) be forfeited to the Company, for no consideration, effective as of such date of
termination.

     (b) Earned and Vested Units. A percentage of Granted Units shall become Earned and
Vested Units on the 180th day following the distribution date on which the MLP pays a
quarterly distribution (such 180th day being the “Earn-Out Date”) in accordance
with the following schedule:

	 	 	 	 	 	 	 	 	 	 	 	 	 
	MLP Quarterly Distribution	 	Percentage of Initially Granted
	per MLP Common Unit	 	Units that Become Earned and Vested Units
	 	 	Earned	 	Vested	 	Cumulative
	 	 	 	 	 	 	 	 	 	 	Total
	< $0.50
	 	 	0.0	%	 	 	0.0	%	 	 	0.0	%
	≥$0.50, but < $0.575
	 	 	12.5	%	 	 	12.5	%	 	 	25.0	%
	≥$0.575, but < $0.625
	 	 	12.5	%	 	 	12.5	%	 	 	50.0	%
	≥$0.625, but < $0.675
	 	 	12.5	%	 	 	12.5	%	 	 	75.0	%
	≥$0.675
	 	 	12.5	%	 	 	12.5	%	 	 	100.0	%

If the MLP pays a distribution that meets or exceeds more than one threshold with a single
payment, Granted Units shall become Earned or Vested Units in an amount such that the
cumulative total corresponds to the higher of the threshold amounts as indicated in the
schedule. Once a Granted Unit has become an Earned Unit pursuant to the above schedule, the
Earned Unit shall remain an Earned Unit thereafter until it becomes a Vested Unit or is
forfeited.

     (c) Vesting and Forfeiture of Earned Units. With respect to those Granted Units that
become Earned Units on an Earn-Out Date occurring prior to May 5, 2015, such Earned Units
shall become Vested Units on May 5, 2015, unless a Forfeiture Event occurs prior to such
Earn-Out Date or May 5, 2015, in which event such Earned Units shall be subject to
forfeiture in accordance with Section 2(a). Any Granted Units that would otherwise become
Earned Units on an Earn-Out Date that occurs after May 5, 2015 shall instead become Vested
Units on such Earn-Out Date, unless a Forfeiture Event

 

 

occurs prior to such Earn-Out Date, in which event such Granted Units shall be subject
to forfeiture in accordance with Section 2(a).

     (d) Change in Control. Notwithstanding anything herein to the contrary, all Earned
Units automatically shall become Vested Units upon a Change in Control. If prior to the
Change in Control 0% of the Granted Units have become Earned or Vested Units, then 25% of
the Granted Units automatically shall become Vested Units upon the Change in Control. If
prior to the Change in Control only 25% of the Granted Units have become Earned Units and
Vested Units, then an additional 25% of the Granted Units automatically shall become Vested
Units upon the Change in Control. If prior to the Change in Control only 50% of the Granted
Units have become Earned Units and Vested Units, then an additional 25% of the Granted Units
automatically shall become Vested Units upon the Change in Control. If prior to the Change
in Control 75% of the Granted Units have become Earned Units and Vested Units, then all
remaining Granted Units automatically shall become Vested Units upon the Change in Control.
Unless and except to the extent specifically provided otherwise by the Partnership upon or
in connection with such Change in Control, Executive shall, for no consideration,
automatically forfeit to the Company as of the date such Change in Control occurs all
Restricted Units of Executive that do not vest upon such Change in Control as provided
herein, and neither Executive nor any of his successors, heirs, assigns, or personal
representatives shall thereafter have any further rights or interests in such Restricted
Units or the certificates representing such Restricted Units. Solely for purposes of this
Section 2.2(d), any Restricted Units for which the MLP distribution threshold in Section
2.2(b) has been met but the Earn-Out Date has not been reached shall be deemed to have
become Earned Units and Vested Units as of the date of such MLP distribution.

     2.3 Company Distributions. With respect to Restricted Units, Executive shall not be entitled
to, and shall not, receive any Company Distributions. With respect to Earned Units and Vested
Units, Executive shall be entitled to receive a share of (i) Company Distributions, as provided in
Section 4.1(b) of the LLC Agreement, and (ii) any “liquidating distributions,” as provided in
Section 10.3(c) of the LLC Agreement. Company Distributions and any “liquidating distributions,”
to the extent payable to Executive with respect to an Earned Unit or Vested Unit, shall be paid to
Executive at the same time that such Company Distributions or “liquidating distributions” are paid
to holders of Class A Units.

     2.4 Limitation on Company Distributions. After Executive’s termination of employment with the
Company and its Affiliates for any reason, Company Distributions made with respect to Executive’s
Vested Units shall be limited to the Class B Series Cap applicable to Executive’s Vested Units as
provided in Section 4.1(b) of the LLC Agreement.

     2.5 Capital Calls. In the event of a Capital Call, Executive shall be required to pay to the
Partnership his or her allocable share of the associated Capital Call Amount, which allocable share
shall be determined in accordance with Section 3.1(c) of the LLC Agreement.

 

 

ARTICLE III

ACKNOWLEDGEMENT; RESTRICTIONS; ELECTIONS;

ANTI-DILUTION PROVISIONS

     3.1 Acknowledgment; Conflicts. Executive agrees that the Granted Units shall be subject to
the LLC Agreement. Executive (a) hereby accepts and adopts, and agrees to be bound by, the terms
and provisions of the Certificate of Formation of the Company filed with the Secretary of State of
Delaware, as amended or restated, and the LLC Agreement to the same extent as if Executive had
executed the LLC Agreement and (b) agrees that the Granted Units shall be bound by the terms and
conditions of such agreement, including, but not limited to, the transfer restrictions, if any, set
forth therein, provided however, that in the event of any conflict between the provisions of such
agreement and the provisions of this Agreement, the provisions of this Agreement shall govern.

     3.2 Company Acts. Subject to the anti-dilution provisions set forth in Section 3.5, the
existence of the Restricted Units, Earned Units or Vested Units shall not affect in any way the
right or power of the Board or the holders of Class A Units to make or authorize any adjustment,
recapitalization, reorganization or other change in the Company’s capital structure or its
business, any merger, consolidation, equity exchange or other business combination of the
Partnership with or into any other entity (and, where necessary or appropriate (as determined by
the Board in good faith), the conversion or exchange of Class A Units and Class B Units into other
securities or interests in the Company or any other entity in connection therewith, provided that
the relative economic rights and preferences of the Class A Units and the Class B Units are
affected proportionately, taking into account their current terms), any issue of debt or equity
securities, the dissolution or liquidation of the Company or any sale, lease, exchange or other
disposition of all or any part of its assets or business or any other act or proceeding.

     3.3 Transfer Restrictions. The Restricted Units and Earned Units shall be subject to the
Transfer restrictions and other terms and conditions set forth or described in Exhibit A attached
hereto, as applicable. Vested Units shall be subject only to the provisions of the LLC Agreement.
Executive agrees that Executive will, at any time and from time to time as requested by the
Company, execute and deliver to the Company such other documents and instruments, if any, as the
Board, in its discretion, may require to evidence Executive’s agreement to be bound by the terms of
Exhibit A. The terms and conditions of Exhibit A shall survive the termination of this Agreement.
The restrictions set forth in Exhibit A shall not apply to the transfer of Restricted Units or
Earned Units pursuant to a plan of reorganization of the Company, but the Class A Units, securities
or other property received in exchange therefor shall also become subject to the Transfer
restrictions to the same extent as the Restricted Units, Earned Units and Vested Units exchanged
therefor and the certificates, if any, representing such Class A Units, securities or other
property shall be legended to show such restrictions.

     3.4 Tax Withholding; §83(b) Election.

     (a) To the extent that the receipt of the Restricted Units, Earned Units, Vested Units,
or any other event pursuant to this Agreement results in compensation income or wages to
Executive for federal, state or local tax purposes, Executive shall deliver to the Company
at the time of such receipt, lapse or event, as the case may be, such amount of

 

 

money as the Company may require to meet its minimum withholding obligation under
applicable tax laws, and if Executive fails to do so, the Company is authorized to withhold
from any cash or other remuneration (including withholding and cancelling any Restricted
Units, Earned Units or Vested Units distributable to Executive under this Agreement) then or
thereafter payable to Executive any tax required to be withheld by reason of such resulting
compensation income or wages.

     (b) Within 30 days after the date of issuance of the Restricted Units, Executive shall
make an election authorized by section 83(b) of the Code with respect to such Restricted
Units and Executive shall submit to the Company a copy of the statement filed by Executive
to make such election. The form of such election shall be in such form as approved by the
Company and delivered to the Executive following the issuance of the Restricted Units.

     (c) Executive acknowledges and agrees that he is not relying upon any written or oral
statement or representation of the Company, its Affiliates, or any of their respective
Executives, directors, officers, attorneys or agents regarding the tax effects associated
with the Restricted Units, Earned Units, Vested Units or the execution of this Agreement.
Executive acknowledges and agrees that in deciding to enter into this Agreement, Executive
is relying on his own judgment and the judgment of the professionals of his choice with whom
he has consulted.

3.5 Anti-Dilution Provisions.

     (a) If after the date of this Agreement, the Class A Units shall be changed or proposed
to be changed into a different number or class of units by reason of the occurrence of any
reclassification, recapitalization, split-up, combination, exchange of shares or similar
readjustment, or a unit dividend thereon shall be paid, appropriate proportional adjustments
shall be made to the Class B Units, as determined by the Board in good faith.
Notwithstanding the foregoing, no repurchase of Class A Units for fair value (as determined
by the Board in good faith) shall require any adjustment under this Section 3.5(a).

     (b) If the Company issues any additional member interests or other securities other
than those currently authorized for issuance, the Company may, but shall not be required to,
make adjustments to the terms or outstanding amounts of the Class B Units, if determined in
the good faith discretion of the Board to be appropriate and desireable.

3.6 Drag-Along Provisions.

     (a) In the event of a sale of all or substantially all of the assets or equity of the
Company in a bona fide arms’ length transaction, then the Board shall have the right to
require Executive to transfer all of his Earned Units and Vested Units (including any
Granted Units that vest pursuant to Section 2.2(d) hereof) in such transaction in exchange
for consideration per transferred Class B Unit that is equal to the Conversion Factor times
the consideration to be received per Class A Unit in such transaction.

 

 

     (b) In connection with any transfer required pursuant to this Section 3.6, Executive
shall deliver the certificates representing his Class B Units duly endorsed or accompanied
by written instruments of transfer, in form and substance reasonably satisfactory to the
Company, free and clear of any liens, together with any other documents reasonably required
to be executed in connection with such transaction.

     (c) Class B Units subject to this Section 3.6 will be included in a proposed sale
pursuant hereto and be subject to any agreement with the purchaser in such transaction
relating thereto, on the same terms and subject to the same conditions applicable to the
Class A Units. Such terms and conditions shall be determined in the sole discretion of the
Board, and shall include (i) the consideration to be paid (including without limitation the
form and the aggregate amount thereof) and (ii) the provision of information,
representations, warranties, covenants and requisite indemnifications; provided, however,
that Executive shall not be required to make any representations and warranties, other than
those relating specifically to Executive’s execution and delivery of any transaction
agreement (including absence of conflicts), and title to the Class B Units, and any
indemnification provided by Executive shall be on a several, not joint, basis and shall be
based on (and shall not exceed) Executive’s pro rata share of the aggregate consideration
paid in such transaction. For purposes of this Section 3.6 “Executive” includes any
Permitted Transferee (as defined in the Partnership Agreement).

ARTICLE IV

GENERAL PROVISIONS

     4.1 Notices. For purposes of this Agreement, notices and all other communications provided
for herein shall be given in the same manner as indicated in the LLC Agreement.

     4.2 Employment Relationship. For purposes of this Agreement (including Exhibit A attached
hereto), Executive shall be considered to be in the employment of the Company as long as Executive
remains an employee of an Affiliate of the Company. Without limiting the scope of the preceding
sentence, it is expressly provided that Executive shall be considered to have terminated employment
with the Company at the time the entity or other organization that employs Executive is no longer
an Affiliate of the Company. Any question as to whether and when there has been a termination of
such employment or association, and the cause of such termination, shall be determined by the Board
and its determination shall be final.

     4.3 Entire Agreement; Amendment. This Agreement and the LLC Agreement constitute the entire
agreement, and supersede all previous agreements and discussions relating to the same or similar
subject matters between Executive and the Company or any Affiliate and constitute the entire
agreement between Executive and the Company and any Affiliate with respect to the subject matter of
this Agreement. Without limiting the scope of the preceding sentence, except for this Agreement
and the Company Agreement, all prior and contemporaneous understandings and agreements, if any,
among the parties hereto relating to the subject matter hereof are hereby null and void and of no
further force and effect. Except as provided below, any modification of this Agreement shall be
effective only if it is in writing and signed by both Executive and the Company as authorized by
the Board. Notwithstanding the foregoing, the Company may unilaterally amend this Agreement in any
manner that the Board

 

 

determines in good faith is necessary or advisable to facilitate the consummation of a GP IPO.
For the avoidance of doubt, notwithstanding anything in this Agreement to the contrary, in the
event of a GP IPO, the Board shall be entitled (but not required) to make such adjustments as the
Board shall determine in good faith to be equitable, including without limitation causing all or a
portion of the Class B Units not to be converted into or exchanged for similar equity interests in
the IPO Entity, and to remain outstanding as Class B Units of the Company. Notwithstanding
anything in this Agreement to the contrary, if the Board determines that (i) the provisions of
section 409A of the Code apply to this Agreement or the Class B Units and that the terms of this
Agreement or such units do not, in whole or in part, satisfy the requirements of such section, or
(ii) any provision of this Agreement or the effect or operation thereof would produce material
adverse tax consequences to Executive, then the Company, in the sole discretion of the Board, may
unilaterally modify this Agreement in such manner as the Board deems appropriate to comply with
such section 409A and any regulations or guidance issued thereunder or to mitigate or avoid such
adverse tax consequences.

     4.4 Binding Effect. This Agreement shall be binding upon and inure to the benefit of any
successors to the Company and all permitted transferees of any Transfer made in compliance with
Exhibit A and other persons lawfully claiming under Executive.

     4.5 Governing Law. This Agreement is governed by and shall be construed in accordance with
the laws of the State of Delaware, excluding any conflict-of-laws rule or principle that might
refer the governance or the construction of this Agreement to the laws of another jurisdiction. If
any provision of this Agreement or the application thereof to any person or circumstance is held
invalid or unenforceable to any extent, the remainder of this Agreement and the application of that
provision to other persons or circumstances is not affected thereby and that provision shall be
enforced to the greatest extent permitted by law.

     4.6 Injunctive Relief. Executive acknowledges that a remedy at law for any breach or
attempted breach of this Agreement will be inadequate, agrees that the Company may be entitled to
specific performance and injunctive and other equitable relief to be implemented by a court of
competent jurisdiction in case of any such breach or attempted breach, and further agrees to waive
any requirement for the securing or purchasing of any bond in connection with the obtaining of any
such injunctive or any other equitable relief. Executive agrees that the Company’s right to
injunctive relief will be in addition to any other rights the Company may have.

     IN WITNESS WHEREOF, the undersigned have executed this Agreement effective for all purposes as
of the Grant Date.

	 	 	 	 	 	 	 

	 	 	PAA NATURAL GAS STORAGE, L.P.	 	 
	 
	 	 	 	 	 	 
	 	 	By: PLAINS ALL AMERICAN GP LLC	 	 
	 	 	          (pursuant to Omnibus Agreement)	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:
	 		 	 

 

 

	 	 	 	 	 

	 

	 	EXECUTIVE	 	 
	 
	 
	 	 	 	 
	 

	 	 

«Executive»exv10w5

Exhibit 10.5

PORTIONS OF THIS EXHIBIT MARKED BY AN (***) HAVE BEEN OMITTED PURSUANT TO A REQUEST FOR
CONFIDENTIAL TREATMENT FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

First Amended UltraDirect Services Schedule

THIS FIRST AMENDED ULTRADIRECT SERVICES SCHEDULE SUPERCEDES AND REPLACES THE ULTRADIRECT
SERVICES SCHEDULE BETWEEN PEGASUS AND ORBITZ WORLDWIDE, LLC DATED AUGUST 8, 2007.

This First Amended UltraDirect Services Schedule is attached to and a part of the Master Services
Agreement with the Effective Date of August 8, 2007, by and between Pegasus Solutions, Inc.
(“Pegasus”) and Orbitz Worldwide, LLC (“Customer”).

1. Definitions. All capitalized terms used in this First Amended UltraDirect Services
Schedule but not defined herein shall have the meanings set forth elsewhere in this Agreement.
In addition, the following definitions shall apply for purposes of this First Amended UltraDirect
Services Schedule:

(a) First Amended UltraDirect Services Schedule Effective Date means April 1, 2010.

(b) Available means that (i) the Reservation Function transmits Reservations Data
materially in accordance with the terms of this First Amended UltraDirect Services
Schedule; and (ii) the Reservation Function is accessible from the point at which the
Pegasus data center local area network intersects with the wide area networks over which
Reservations Data are transmitted to the Reservation Function pursuant to this First
Amended UltraDirect Services Schedule. It is the intent of both parties to work toward
valid responses from the central reservations systems represented. Pegasus’ contribution
will include the Best Practices Certification initiative for CRS’s.

(c) Customer’s System means an electronic system operated by or on behalf of Customer that
displays and transmits Reservations Data.

(d) Downtime is the amount of time during which the Reservation Function is not Available,
subject to the provisions of subparagraph 8(c) of this First Amended UltraDirect Services
Schedule.

(e) Fees mean those fees set forth in paragraphs 2, 3 and 4 of the UltraDirect Pricing
Schedule to this Agreement.

(f) Geo Search means functionality allowing an accessor of Customer’s System to receive,
in response to a query, a list of the lodging establishments whose information appears in
the Hotel Content Database that satisfy the following criteria: (i) a location described
as either a physical address or latitude and longitude; and (ii) a radial distance in
miles or kilometers from such location.

(g) Hotel Content Database means a digital database created and maintained by or for
Pegasus that contains lodging data and descriptive content (including text, image and rich
media), and any updates thereto made available to Customer by Pegasus.

(h) Issue means a problem that causes a failure of, or degradation in, the operation of
the Reservation Function or the Hotel Content Database.

(i) Look to Book Ratio means the ratio of (i) the sum of Single Property Availability
Requests plus Multi-Property Availability Requests plus Rate Plan Information Requests
with respect to a particular time period, to (ii) Total Reservations with respect to the
same time period.

(j) Maintenance Window means the following hours, subject to change upon the agreement of
Pegasus and Customer: (i) 10:00 p.m. to midnight, Mountain Standard Time (North America), on each
Friday; and (ii) 9:00 p.m. to midnight, Mountain Standard Time (North America), on each Saturday.

(k) Mapping means functionality allowing an accessor of Customer’s System(s) to (i)
request and view a map image, and (ii) make subsequent requests to (1) zoom in, (2) zoom
out, (3) move up, (4) move down, (5) move right, or (6) move left while viewing the
response to a map request.

-1-

 

(l) Monitoring Application means an automated monitoring application employed by Pegasus
that generates test messages, causes such messages to be transmitted throughout the
technology infrastructure used by Pegasus to deliver the Services and records the results
of each transmission for later analysis.

(m) Multi-Property Availability Request means a single request message for rates and
availability relating to two or more lodging properties that is transmitted through the
UltraDirect Interface pursuant to this First Amended UltraDirect Services Schedule.

(n) Net Reservations means the number of reservations transmitted through the UltraDirect
Interface during a particular time period, less the number of cancellations of
reservations transmitted through the UltraDirect Interface during the same time period.

(o) Offensive Content means content that is defamatory, obscene, pornographic,
gratuitously violent or otherwise offensive.

(p) Onward Distributor means a party other than Pegasus, Customer or an Affiliate that
operates an electronic system that displays and transmits Reservations Data which includes
providers of metasearch or rate auditing functionality (also known as crawlers) that have
contractual relationships with Customer.

(q) Pegasus Rate Cache means a Pegasus database that temporarily stores rate and
availability information previously processed by UltraSwitch on behalf of hotels and made
available for use by third party distributors.

(r) Prohibited Requests means (i) any information request that is transmitted to the
UltraDirect Interface by Customer’s System(s) that is not transmitted in response to an
information request by an accessor of Customer’s System(s) (unless otherwise pre-approved
in writing by Pegasus); and (ii) any information requests analogous to those described in
subparagraph (i) that are transmitted to the UltraDirect Interface by an Onward
Distributor.

(s) Rate Plan Information Request means a single request message for detailed information
regarding a specified rate and room type that is transmitted through the UltraDirect
Interface pursuant to this First Amended UltraDirect Services Schedule.

(t) Reservations Data means reservation rate and availability information, and information
relating to the making, changing and canceling of reservations.

(u) Reservation Function means Pegasus-provided functionality that is accessed by Customer
through the UltraDirect Interface and that transmits Reservations Data between reservation
systems used by lodging establishments and other systems.

(v) Scheduled Downtime means a period of time (i) during the Maintenance Window, (ii) during
which the Reservation Function is not Available, and (iii) with respect to which Pegasus gives
Customer notice in compliance with subparagraph 8(d) of this First Amended UltraDirect Services
Schedule.

(w) CRS Scheduled Downtime means a period of time during which a particular CRS is not
Available, and with respect to which such CRS has given Pegasus advance notice.

(x) Single Property Availability Request means a single request message for rates and
availability relating to one lodging property that is transmitted through the UltraDirect
Interface pursuant to this UltraDirect Services Schedule.

(y) Total Reservations means the total number of reservation requests transmitted through
the UltraDirect Interface pursuant to this First Amended UltraDirect Services Schedule.

(z) UltraDirect Interface means an interface between: (i) Customer’s System and (ii) the
Hotel Content Database and the Pegasus system(s) performing the Reservation Function.

(aa) UltraDirect Services means the services described in paragraph 2 of this First
Amended UltraDirect Services Schedule.

2. UltraDirect Services. Pegasus agrees to:

(a) provide Customer with specifications for Customer’s use in creating and implementing
the UltraDirect Interface;

-2-

 

(b) grant Customer’s System access to the Hotel Content Database and the Reservation
Function through the UltraDirect Interface created, implemented and maintained by Customer
in conformity with such specifications, for the purpose of permitting accessors of
Customer’s System to view data residing in the Hotel Content Database and to transmit and
view Reservations Data;

(c) use commercially reasonable efforts to support Customer’s implementation and
maintenance of the UltraDirect Interface; and

(d) permit Customer to retain a copy of the information obtained from the Hotel Content
Database on Customer’s System(s) provided Customer performs, on a daily basis, an update
to Customer’s System(s) of any information in the Hotel Content Database that has been
modified since the last update was made available to Customer by Pegasus.

3. Customer’s Duties.

(a) General. The parties agree that as of the First Amended UltraDirect Services Schedule
Effective Date, the UltraDirect Interface has been created and implemented between Pegasus
and Customer. Customer shall:

	 	(i)	 	diligently maintain the UltraDirect Interface in accordance
with this First Amended UltraDirect Services Schedule;
	 
	 	(ii)	 	be solely responsible for the creation of all necessary URL
links from Customer’s System to the Hotel Content Database and the Reservation
Function; and
	 
	 	(iii)	 	except as expressly permitted under this Agreement, not permit
the Hotel Content Database, the Reservation Function or the UltraDirect
Interface to be copied, downloaded, hyperlinked or in any manner used or
redistributed in whole or in part except as expressly permitted by this
Agreement.

(b) Onward Distribution. Customer is generally prohibited from permitting any
third party, other than end-user consumers who access Customer’s System(s), access to
or use of information contained in the Hotel Content Database, or use of other data
transmitted through the UltraDirect Interface. However, Customer may permit Onward
Distributors access to and use of information contained in the Hotel Content
Database, and use and access to other data transmitted through the UltraDirect
Interface, subject to Pegasus’ right to prohibit such access and use by any Onward
Distributor, provided that:

(i) prior to permitting such access and use by an Onward Distributor, Customer
provides written notice to such Onward Distributor stating that (A) such data and
the systems transmitting the same are the sole and exclusive property of Pegasus
(which may be identified in Customer’s written notice to Onward Distributors
generically as a “third party service provider” or similar designation), its
licensors and/or the lodging establishments whose information appears in the Hotel
Content Database; and (B) no right, title or interest of any kind in such systems or
data is granted by Pegasus to such Onward Distributor by virtue of its access to and
use of such data;

(ii) any access to or use of the information contained in the Hotel Content Database
by any Onward Distributor (as permitted by Pegasus hereunder) shall be solely for
the purpose of permitting accessors of such Onward Distributor’ system(s) to view
such information in connection with the processing of Reservations Data through the
Reservation Function;

(iii) upon the request of Pegasus, Customer will provide Pegasus confirmation as to
whether a particular, named party is an Onward Distributor;

(iv) Customer, upon 30 days prior written notice from Pegasus, terminates such
access and use by any Onward Distributor that (A) displays Offensive Content on any
electronic system maintained and hosted by or on behalf of such Onward Distributor,
(B) transmits Prohibited Requests or (C) violates the requirements set forth in
paragraph 4(e) below; and

(v) in consideration of Pegasus’ agreement to permit Onward Distributors access to
and use of data transmitted through the UltraDirect Interface, Customer hereby
agrees to indemnify, defend and hold harmless Pegasus, its directors, officers,
employees, agents, successors and assigns, from and against any and all liability
and every loss, cost, damage, claim, cause of action and expense (including
reasonable attorneys’ fees) paid or incurred by any one or more of them directly or
indirectly arising from or attributable to such access or use by any Onward
Distributor or a user of any Onward Distributor.

-3-

 

(c) Bursting; Look to Book Ratio.

(i) Methods to Reduce Ratio. Each party shall (i) confer with the other party
in good faith regarding recommended methods for reducing the Look to Book Ratio;
and (ii) use commercially reasonable efforts to implement those recommended methods
that Pegasus and Customer agree in good faith are practicable. Pegasus shall
continue to implement measures to improve system stability.

(ii) Excess Ratio. If the Look to Book Ratio exceeds (***):1 with respect to a
calendar month then Pegasus shall not be obligated to transmit Customer
Reservations Data during the calendar month immediately following such month to any
central reservation system to which the operator of such system has requested that
Customer Reservations Data not be transmitted, provided, however, that Pegasus
promptly notifies Customer of such request.

(iii) Notwithstanding the foregoing, or anything to the contrary set
forth in this Agreement, in the event that (i) Customer’s Look to Book Ratio
exceeds (***):1, and (ii) Pegasus reasonably concludes that Customer’s Look to
Book Ratio poses an imminent material threat to the Reservation Function by
materially inhibiting, disrupting or otherwise causing performance degradation,
of the Reservation Function or otherwise causing a performance degradation to
any of Pegasus’ facilities used to deliver the UltraDirect Services, Pegasus
may immediately suspend its performance of the UltraDirect Services, solely to
the extent necessary to reduce the imminent material threat and with such
suspension of the UltraDirect Services to cease once the imminent material
threat has been addressed.

4. Use of Content.

(a) Subject to the terms and conditions of this Agreement, Pegasus hereby grants to
Customer a non-exclusive, worldwide license during the term of this UltraDirect Services
Schedule to publicly display and transmit Hotel Content Database content to an end user
for the purpose of generating Reservations Data to be transmitted through the Reservation
Function.

(b) Subject to the terms and conditions of this Agreement, Pegasus hereby grants to
Customer a non-exclusive, worldwide license during the term of this UltraDirect Services
Schedule to distribute Hotel Content Database content to (i) its Affiliates, (ii) Onward
Distributors in accordance with Section 3(b), and (iii) any other entity to which Pegasus
consents in writing.

(c) Subject to the terms and conditions of this Agreement, Pegasus hereby grants to
Customer a non-exclusive, worldwide license during the term of this UltraDirect Services
Schedule to reproduce, edit, promote, and create derivative works of the content from the
Hotel Content Database provided such activity and use is limited to Customer and
Affiliates. Customer may combine such information and data with Customer’s own content.

(d) Pegasus acknowledges and agrees that it will not obtain any right, title or interest
in the Reservations Data.

(e) If information from the Hotel Content Database regarding a lodging establishment is
provided to an accessor of Customer’s System or an Onward Distributor, Customer shall use
reasonable efforts to ensure that such accessor of Customer’s System or Onward Distributor
transmits Reservations Data regarding such lodging establishment exclusively through the
Reservation Function, provided that Pegasus’ sole remedy for a breach of this Section 4
shall be to terminate this Schedule upon thirty (30) days’ prior notice to Customer.

(f) Pegasus shall provide Customer with the Hotel Content Database content translated into
language other than English where Pegasus has such translations available.

5. Offensive Content. Pegasus may immediately terminate the provision of UltraDirect
Services to Customer for any period of time during which Customer’s System, or any electronic
system maintained and hosted by or on behalf of an Onward Distributor with access to and use of
data transmitted through the UltraDirect Interface, displays any Offensive Content.
Notwithstanding the foregoing, before Pegasus exercises its termination right set forth in the
preceding sentence, Pegasus shall first afford Customer the opportunity to remove such Offensive
Content within twenty-four (24) hours after receiving written notice from Pegasus.

-4-

 

6. Data Transmission. The transmission of data between Customer’s System and the
UltraDirect Interface shall occur by such means as are mutually agreed by Customer and Pegasus.

7. Hotel Content Database Download. Pegasus agrees to allow Customer, and Customer
agrees to perform, a complete download to Customer’s System of all property-descriptive
information in the Hotel Content Database, such download to occur on a date mutually agreed by
Customer and Pegasus, but not occur after the 5th day of each month. Pegasus agrees to
allow, and Customer agrees to perform, on a daily basis thereafter one (1) download to Customer’s
System of any property-descriptive information in the Hotel Content Database that has been
modified since the last download. Customer further agrees to make a good faith effort to make
modified property-descriptive information accessible to accessors of Customer’s System within two
(2) business days of Customer’s download of the same. Customer shall not permit information
downloaded pursuant to this paragraph to be further downloaded to any third party system and
shall not distribute such information to any third party in any tangible medium. Upon the
earlier of the termination of this UltraDirect Services Schedule or such time as Customer ceases
to perform downloads as provided above, Customer shall promptly delete from its systems all
information downloaded pursuant to this paragraph which is not publicly available elsewhere and
shall promptly destroy or return to Pegasus all physical copies of any such information. Upon
Pegasus’ request, Customer shall certify to Pegasus any such deletion, destruction and return
within five business days of receipt of such request.

8. Downtime.

(a) Downtime Service Level. Downtime during each calendar month as a percentage of all
time during such calendar month will not exceed three-tenths percent (0.3%) (“Downtime
Commitment”). Customer’s sole and exclusive remedy if Downtime exceeds the Downtime
Commitment is set out in Section 5 of the Pricing Schedule.

(b) Downtime Measurement. The amount of Downtime during any period will be determined by
reference to the results recorded by the Monitoring Application and agreed upon by Pegasus
and Customer (agreement not to be unreasonably withheld by either party). Downtime end
times will be demarked by written (email) notification by Pegasus to Customer.

(c) Loss of Negotiated Rate Functionality: For purposes of this subparagraph 8(c), Loss of
negotiated rate functionality (“LONRF”) is the amount of time during with the negotiated
rate functionality is not available excluding any Downtime exclusions as defined in
subparagraph 8d below.

If a LONRF event occurs, Pegasus will, as Customer’s sole and exclusive remedy for
such event, credit against the amounts due from Customer to Pegasus with respect to
the next calendar month a fee calculated in accordance with the following formula:

[((# of minutes with loss of functionality) / (# of minutes in the month)) * (# of
UltraDirect Net Reservations)] * [$(***)]

For example, if the LONRF event is for one full hour and Customer processes 150,000
UltraDirect Net Reservations in the month when the LONRF event occurred, Pegasus
would provide a credit to Customer of $ (***).

(((60) / (44640)) * (150,000)) * ($(***)) = $(***)

(d) Downtime Exclusions. Downtime shall not include any time during which the Reservation
Function is not Available due to:

	 	(i)	 	up to four (4) hours of Scheduled Downtime per calendar
month;
	 
	 	(ii)	 	acts or omissions of any party other than Pegasus or Pegasus’
vendors and agents;
	 
	 	(iii)	 	hardware, software, networks, equipment or interfaces other than
those provided or managed by Pegasus or Pegasus’ vendors and agents;
	 
	 	(iv)	 	third-party service providers other than Pegasus’ vendors and
agents;
	 
	 	(v)	 	any other equipment, applications or components not directly
managed or controlled by Pegasus or Pegasus’ vendors and agents; or

-5-

 

	 	(vi)	 	one or more of the causes listed in Section 7.2 of the Master Services
Agreement.
	 
	 	(vii)	 	Pegasus will not pay for Downtime and loss of functionality at the same time -
either or depending on the root cause analysis of the outage or loss of negotiated
rate functionality as determined by both parties.

(e) Notice by Pegasus of Scheduled Downtime. Pegasus will give notice of Scheduled
Downtime to Customer by e-mail or such other means as mutually agreed by Customer and
Pegasus. In addition, Pegasus will give notice of CRS Scheduled downtime to Customer by
e-mail or such other means as mutually agreed by Customer and Pegasus, to the extent
Customer obtains written permission from such CRS for Pegasus to provide such notice.
Such notice will be given by Pegasus to the individual designated by Customer for the
receipt of such notices and will be given no less than five (5) calendar days prior to the
commencement of the subject Scheduled Downtime provided Pegasus is informed prior to five
(5) calendar days. Any such notice given by Pegasus will include the date and time of
commencement of the subject Scheduled Downtime and an estimate of the duration of the
subject Scheduled Downtime.

(f) Notice by Customer of Scheduled Outage. The parties acknowledge and agree that
Pegasus could interpret the cessation of activity though the UltraDirect Interface from
Customer’s System as an Issue requiring action by Pegasus pursuant to paragraph 9 below.
Consequently, Customer agrees to use commercially reasonable efforts to provide Pegasus
prior notice, by e-mail or such other means as mutually agreed by Customer and Pegasus, of
any plan by Customer to make Customer’s System unavailable to transmit Reservations Data
to, or to receive transmissions of Reservations Data from, the Reservation Function for
any period of time. Any such notice given by Customer will include the date and time of
commencement of the subject unavailability and an estimate of the duration of the subject
unavailability.

(g) Event of Default. Nothing contained in paragraph 8(a) above shall be interpreted to
limit the rights and remedies of Customer in the case of an Event of Default; as such term
is defined in Section 7.0 of Master Services Agreement.

9. Use of Pegasus Rate Cache. Customer shall not be required to hit the Pegasus Rate
Cache for rate or availability information unless the parties so agree in writing.

10. Issue Resolution.

(a) Severity Level Description. The following table sets forth the criteria by which
Customer will determine the appropriate classification for each Issue identified by or
reported to Pegasus:

	 	 	 
	Severity Level	 	Description
	1

Emergency

	 	Reservation Function not Available (other than during Scheduled
Downtime); or severe impact to Customer business operations; or
potential for significant Customer loss of revenue
	 
	 	 
	2

High

	 	Significant impact to Customer business operations; or significant
impact to Customer’s use of the Reservation Function and absence of
a work-around
	 
	 	 
	3

Medium

	 	Significant impact to Customer’s use of the Reservation Function but
a work-around exists
	 
	 	 
	4

Low

	 	Any Issue that is not appropriately classified as Severity 1, 2 or 3

(b) Issue Resolution Procedures. The following table sets forth (i) the time periods
within which Pegasus will communicate with Customer (by telephone or electronic means)
with respect to each Issue reported to Pegasus; and (ii) Pegasus’ commitments to resolve,
or mitigate the effects of, such Issue:

-6-

 

	 	 	 	 	 
	Severity Level	 	Communication	 	Resolution or Mitigation
	1

Emergency

	 	Pegasus will contact
Customer within
thirty (30) minutes
of receiving the
initial report of the
Issue, and will
update Customer every
thirty (30) minutes
thereafter until the
Issue is resolved.
	 	Pegasus commits to resolve
the Issue or implement a
work-around for the Issue
that effectively mitigates
the effects of the Issue
within two (2) hours of
Pegasus’ receipt of the
initial report of such
Issue. 

	 

	 	 	 	Within five (5) business
days of resolution,
Pegasus will deliver to
Customer a written
analysis detailing the
causes of the Issue.
	 
	 	 	 	 
	2

High

	 	Pegasus will contact
Customer within sixty
(60) minutes of
receiving the initial
report of the Issue,
and will update
Customer every sixty
(60) minutes until
the Issue is
resolved.
	 	Pegasus commits to resolve
the Issue or implement a
work-around for the Issue
that effectively mitigates
the effects of the Issue
within six (6) hours of
Pegasus’ receipt of the
initial report of such
Issue.

	 

	 	 	 	Within five (5) business
days of resolution,
Pegasus will deliver to
Customer a written
analysis detailing the
causes of the Issue.
	 
	 	 	 	 
	3

Medium

	 	Pegasus will contact
Customer: (i) on the
same business day if
the initial report is
received during
normal business hours
and Pegasus is able
to respond on the
same business day or
(ii) the next
business day of
receiving the initial
report of the Issue
if Pegasus is unable
to resolve on the
same business day.
Pegasus will update
Customer daily
thereafter until the
Issue is resolved.
	 	Pegasus commits to resolve
the Issue or implement a
work-around for the Issue
that effectively mitigates
the effects of the Issue
within five (5) business
days of Pegasus’ receipt
of the initial report of
such Issue.
	 
	 	 	 	 
	4

Low

	 	Pegasus will contact
Customer within three
(3) business days of
receiving the initial
report of the Issue.
	 	Pegasus will resolve the
Issue or implement a
work-around for the Issue
that effectively mitigates
the effects of the Issue
within ten (10) business
days of Pegasus’ receipt
of the initial report of
such issue.

(c) Conditions to Pegasus’ Obligations. Pegasus’ performance of the obligations set forth
in the preceding subparagraph 

9(b) with respect to an Issue are conditioned upon (i)
Customer taking such reasonable actions within its control as are required to resolve or
mitigate the Issue, as applicable; (ii) with respect to a Severity Level 1 Issue, Customer
committing personnel and corporate resources as reasonably necessary and without regard
to normal business hours to assist Pegasus so that Pegasus can promptly research and
resolve the Issue; and (iii) with respect to a Severity Level 2 or a Severity Level 3
Issue, Customer committing personnel and corporate resources as reasonably necessary
during normal business hours to assist Pegasus so that Pegasus can promptly research and
resolve or mitigate the Issue, as applicable.

11. Time Period Targets.

(a) Implementation. Pegasus and Customer will each use commercially reasonable efforts to
implement the UltraDirect Services for any Affiliates of Customer that wish to receive  the Services hereunder within ninety (90) business days of the First Amended
UltraDirect Services Schedule Effective Date, subject to the provisions of the governing
plan and schedule of implementation and to the performance of all necessary actions by any
third party.

(b) Professional Services. Pegasus will use commercially reasonable efforts to provide to
Customer, within ten (10) business days of Customer’s request for services to be performed
by Pegasus’ Professional Services group, an estimated schedule for, and the estimated
total cost of, the requested services.

-7-

 

	12.	 	Term. This UltraDirect Services Schedule shall be effective as of the First
Amended UltraDirect Services Schedule Effective Date and shall continue in effect for an
initial term of two (2) years from such date unless terminated earlier as provided in this
Agreement. The term of this First Amended UltraDirect Services Schedule shall thereafter
automatically renew for additional, successive ninety (90) day terms unless either party
provides written notice to the other party of its intent to terminate this First Amended
UltraDirect Services Schedule at least ninety (90) days prior to the expiration of the
then-current term.

	 	 	 	 	 	 	 

	PEGASUS SOLUTIONS, INC.	 	ORBITZ WORLDWIDE, LLC
	 
	 	 	 	 	 	 
	By:

	 	/s/ Richard V. Leutwyler
	 	By:
	 	/s/ Julie Szudarek
	 

	 	 
	 	 	 	 
	 	

	Name: Richard V. Leutwyler
	 	 
	 	Print: Julie Szudarek
	

	 	Title:    COO
	 	 
	 	Title:  VP

-8-

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