Document:

Exhibit 10.1

 

Execution Version

 

ADMINISTRATIVE AGREEMENT

 

by and among

 

PLAINS GP HOLDINGS, L.P.

 

PAA GP HOLDINGS LLC

 

PLAINS ALL AMERICAN PIPELINE, L.P.

 

PAA GP LLC

 

PLAINS AAP, L.P.

 

and

 

PLAINS ALL AMERICAN GP LLC

 

 

TABLE OF CONTENTS

 

	
 
    	
ARTICLE 1
    	
 
    
	
 
    	
DEFINITIONS
    	
 
    
	
 
    	
 
    	
 
    
	
1.1
    	
Definitions
    	
1
    
	
1.2
    	
Construction
    	
1
    
	
 
    	
 
    	
 
    
	
 
    	
ARTICLE 2
    	
 
    
	
 
    	
SERVICES
    	
 
    
	
 
    	
 
    	
 
    
	
2.1
    	
GP LLC Services; Term
    	
1
    
	
2.2
    	
GP LLC Compensation
    	
2
    
	
2.3
    	
Invoices and Payment
    	
3
    
	
2.4
    	
Dispute Regarding Services or Calculation of Costs
    	
3
    
	
2.5
    	
Disputes; Default
    	
3
    
	
2.6
    	
Representations Regarding Use of Services
    	
4
    
	
2.7
    	
Warranties; Indemnification and Limitation of Liability
    	
4
    
	
2.8
    	
Force Majeure
    	
4
    
	
2.9
    	
Affiliates
    	
4
    
	
 
    	
 
    	
 
    
	
 
    	
ARTICLE 3
    	
 
    
	
 
    	
BUSINESS OPPORTUNITIES
    	
 
    
	
 
    	
 
    	
 
    
	
3.1
    	
Business Opportunities
    	
4
    
	
 
    	
 
    	
 
    
	
 
    	
ARTICLE 4
    	
 
    
	
 
    	
OTHER AGREEMENTS
    	
 
    
	
 
    	
 
    	
 
    
	
4.1
    	
Joint Litigation
    	
5
    
	
4.2
    	
Grant of License
    	
5
    
	
 
    	
 
    	
 
    
	
 
    	
ARTICLE 5
    	
 
    
	
 
    	
MISCELLANEOUS
    	
 
    
	
 
    	
 
    	
 
    
	
5.1
    	
Choice of Law; Submission to Jurisdiction
    	
6
    
	
5.2
    	
Notices
    	
6
    
	
5.3
    	
Entire Agreement; Supersedure
    	
6
    
	
5.4
    	
Effect of Waiver of Consent
    	
6
    
	
5.5
    	
Amendment or Modification
    	
6
    
	
5.6
    	
Assignment
    	
6
    
	
5.7
    	
Counterparts
    	
6
    
	
5.8
    	
Severability
    	
6
    
	
5.9
    	
Further Assurances
    	
7
    
	
5.10
    	
Withholding or Granting of Consent
    	
7
    
	
5.11
    	
U.S. Currency
    	
7
    
	
5.12
    	
Laws and Regulations
    	
7
    
	
5.13
    	
Negation of Rights of Third Parties
    	
7
    
	
5.14
    	
Termination
    	
7
    
	
5.15
    	
Successors
    	
7
    
	
5.16
    	
No Recourse Against Officers or Directors
    	
7
    
	
5.17
    	
Legal Compliance
    	
7
    
	
 
    	
 
    	
 
    
	
Exhibit A — Defined Terms
    	
 
    

 

 

ADMINISTRATIVE AGREEMENT

 

This ADMINISTRATIVE AGREEMENT (this “Agreement”) is entered into this 21st day of October, 2013 (the “Effective Date”), by and among Plains GP Holdings, L.P., a Delaware limited partnership (“PAGP”), PAA GP Holdings LLC, a Delaware limited liability company (“PAGP GP”), Plains All American Pipeline, L.P., a Delaware limited partnership (“PAA”), PAA GP LLC, a Delaware limited liability company (“PAA GP”), Plains AAP, L.P., a Delaware limited partnership (“AAP,” together with PAGP, PAGP GP and their direct and indirect subsidiaries (other than members of the GP LLC Group), the “PAGP Entities”) and Plains All American GP LLC, a Delaware limited liability company (“GP LLC,” together with PAA GP, PAA and their direct and indirect subsidiaries (other than AAP), the “GP LLC Group”).  The above-named entities are sometimes referred to in this Agreement each as a “Party” and collectively as the “Parties.” Capitalized terms not otherwise defined below have the meanings ascribed to such terms as set forth on Exhibit A to this Agreement.

 

R E C I T A L S

 

The Parties hereto desire, by their execution of this Agreement, to evidence the terms and conditions pursuant to which (i) GP LLC will provide certain services to the PAGP Entities and (ii) certain business opportunities will be allocated among the Parties.

 

A G R E E M E N T S

 

NOW, THEREFORE, in consideration of the premises and the covenants, conditions, and agreements contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereto hereby agree as follows:

 

ARTICLE 1
 DEFINITIONS

 

1.1                               Definitions.  The definitions listed on Exhibit A shall be for all purposes, unless otherwise clearly indicated to the contrary, applied to the terms used in this Agreement.

 

1.2                               Construction.  Unless the context requires otherwise: (a) any pronoun used in this Agreement shall include the corresponding masculine, feminine or neuter forms, and the singular form of nouns, pronouns and verbs shall include the plural and vice versa; (b) references to Articles and Sections refer to Articles and Sections of this Agreement; (c) the terms “include,” “includes,” “including” or words of like import shall be deemed to be followed by the words “without limitation;” and (d) the terms “hereof,” “herein” or “hereunder” refer to this Agreement as a whole and not to any particular provision of this Agreement.  The table of contents and headings contained in this Agreement are for reference purposes only, and shall not affect in any way the meaning or interpretation of this Agreement.

 

ARTICLE 2
 SERVICES

 

2.1                               GP LLC Services; Term.  Beginning on the Effective Date and continuing until such time as this Agreement has been terminated pursuant to Section 5.14, subject to the terms of

 

 

this Article 2 and in exchange for the compensation described in Section 2.2, GP LLC hereby agrees to provide, or to cause the GP LLC Group to provide, the PAGP Entities with such general and administrative services as may be necessary to manage and operate the business, properties and assets of the PAGP Entities; it being understood and agreed by the Parties that in connection with the provision of such services, GP LLC shall employ or otherwise retain the services of such personnel as may be necessary to cause the business, properties and assets of the PAGP Entities to be so managed and operated (individually, a “GP LLC Service” and, collectively, the “GP LLC Services”).

 

2.2                               GP LLC Compensation.

 

(a)                                 Administrative Services Fee.  As compensation for the provision by GP LLC of the GP LLC Services to the PAGP Entities, GP LLC shall be entitled to receive, and AAP agrees to pay to GP LLC, without duplication, $1.5 million annually (the “Administrative Services Fee”).  Following the first anniversary of this Agreement, the Administrative Services Fee shall be increased or decreased annually by the percentage increase or decrease, as applicable, in the Consumer Price Index — All Urban Consumers, U.S. City Average, Not Seasonally Adjusted for the applicable year (the “CPI Index”).  In making such adjustment, the Administrative Services Fee shall be increased or decreased, as applicable, commencing on January 1, 2015 and continuing on each January 1 thereafter, by the CPI Index for the prior year (or longer in the case of the first adjustment on January 1, 2015) based on the most recent information available from the U.S. Department of Labor and similarly increased or decreased, as applicable, on each subsequent January 1 by the CPI Index for the prior year period. In the event that the PAGP Entities make any acquisitions of assets or businesses or the business of the PAGP Entities otherwise changes following the Effective Date or the PAGP Entities become subject to new or modified laws, regulations, listing requirements or accounting rules that, in any case, impact the nature and/or scope of the GP LLC Services, then the Administrative Services Fee shall be appropriately increased or decreased to account for adjustments in the nature and/or scope of the GP LLC Services.  The Administrative Services Fee shall be in addition to any reimbursement for direct expenses of the PAGP Entities as provided in Section 2.2(b).

 

(b)                                 Reimbursement for Direct Expenses.  It is contemplated that direct expenses for the PAGP Entities, other than income taxes payable by PAGP, will be paid by AAP. It is contemplated that PAGP income taxes will be paid from PAGP funds.  To the extent any member of the GP LLC Group incurs or pays any direct expenses or expenditures on behalf of the PAGP Entities, AAP hereby agrees to reimburse the GP LLC Group for such expenses and expenditures.  AAP further agrees to pay or reimburse the GP LLC Group, as applicable, for any GP LLC Franchise Costs.  AAP hereby agrees to reimburse the GP LLC Group for any expenses and expenditures incurred or paid in the process of or as a result of PAGP becoming a publicly traded entity, including expenses associated with (i) compensation for new directors of PAGP GP, (ii) incremental director and officer liability insurance, (iii) listing on the New York Stock Exchange, (iv) investor relations, (v) legal, (vi) tax and (vii) accounting.  The aggregate amount payable by AAP to the GP LLC Group pursuant to this Section 2.2(b) with respect to a given period of time shall be referred to herein as the “Expense Reimbursement Fee.”  The obligation of AAP to reimburse the GP LLC Group pursuant to this Section 2.2(b) shall not be subject to any monetary limitation, and shall be in addition to the Administrative Services Fee contained in Section 2.2(a).

 

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(c)                                  Other.  To the extent any member of the GP LLC Group incurs or pays any expenses or expenditures not otherwise contemplated hereunder that benefits any PAGP Entity and any member of the GP LLC Group, GP LLC will allocate the costs between PAA and PAGP in its reasonable discretion. Any such costs allocated to PAGP shall be paid by AAP.

 

(d)                                 Parties’ Intent. The primary purpose of this agreement is to maintain effective and efficient management and administrative processes and procedures for the benefit of all Parties, and not for any Party to generate profit.  In that regard, it is the intention of the Parties that the Administrative Services Fee, the Expense Reimbursement Fee and any other costs allocated to the PAGP Entities and paid by AAP hereunder represent fair and reasonable compensation to GP LLC for the PAGP Entities’ allocable share of all general and administrative expenses and other costs for services borne or performed by GP LLC for the benefit of any PAGP Entity.

 

2.3                               Invoices and Payment.

 

(a)                                 Administrative Services Fee.  The Administrative Services Fee shall be payable in quarterly installments on the last day of the applicable fiscal quarter, without invoice, beginning on the last day of the first fiscal quarter of PAGP ending after the date of this Agreement (prorated to account for any partial quarterly period).

 

(b)                                 Expense Reimbursement Fee and other Costs. AAP shall reimburse GP LLC within five (5) days after receipt of an invoice and related support for any Expense Reimbursement Fee.

 

2.4                               Dispute Regarding Services or Calculation of Costs.  Should there be a dispute over the nature or quality of the GP LLC Services, the calculation of any Administrative Services Fee, the calculation of any Expense Reimbursement Fee, or the calculation of any other fee, reimbursement or allocation hereunder, GP LLC and AAP, on behalf of the applicable PAGP Entity or Entities, shall first attempt to resolve such dispute, acting diligently and in good faith, using the past practices of such Parties and documentary evidence of costs as guidelines for such resolution.  If GP LLC and AAP, on behalf of the applicable PAGP Entity or Entities, are unable to resolve any such dispute within thirty days, or such additional time as may be reasonable under the circumstances, unless the Parties agree to an alternative dispute resolution process, the dispute shall be referred to the applicable Conflicts Committees of PAA and PAGP for resolution.  The Parties agree that the applicable Conflicts Committee shall have the authority to settle any such dispute, in its sole discretion, recognizing that it is the intent of all Parties that the dispute be resolved on a fair and reasonable basis.

 

2.5                               Disputes; Default.  Notwithstanding any provision of this Article 2 to the contrary, should AAP fail to pay GP LLC, when due, any amounts owing in respect of the applicable GP LLC Services, including both the Administrative Services Fee and the Expense Reimbursement Fee, except as set forth in the last sentence of this Section 2.5, upon 30 days’ notice, GP LLC may terminate this Article 2 as to those GP LLC Services that relate to the unpaid portion of the invoice.  Should there be a dispute as to the propriety of invoiced amounts, AAP shall pay all undisputed amounts on each invoice, but shall be entitled to withhold payment of any amount in dispute and shall promptly notify GP LLC of such disputed amount.  GP LLC shall promptly provide AAP with records relating to the disputed amount so as to enable GP

 

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LLC and AAP to resolve the dispute.  So long as such Parties are attempting in good faith to resolve the dispute, GP LLC shall not be entitled to terminate the GP LLC Services that relate to the disputed amount.

 

2.6                               Representations Regarding Use of Services.  The PAGP Entities represent and agree that they will use the GP LLC Services only in accordance with all applicable federal, state and local laws and regulations, and in accordance with the reasonable conditions, rules, regulations, and specifications that may be set forth in any manuals, materials, documents, or instructions furnished from time to time by GP LLC to such PAGP Entities.  GP LLC reserves the right to take all actions, including, without limitation, termination of any portion of the GP LLC Services for any PAGP Entity that it reasonably believes is required to be terminated in order to assure compliance with applicable laws and regulations.

 

2.7                               Warranties; Indemnification and Limitation of Liability.  GP LLC MAKES NO (AND HEREBY DISCLAIMS AND NEGATES ANY AND ALL) WARRANTIES OR REPRESENTATIONS WHATSOEVER, EXPRESS OR IMPLIED, WITH RESPECT TO THE GP LLC SERVICES.  The PAGP Entities shall indemnify, defend and hold harmless the GP LLC Group and their respective directors, officers, partners, affiliates, agents or employees (the “Indemnified Persons”) from and against, and the PAGP Entities agree that no Indemnified Person shall have any liability to the PAGP Entities or its owners, parents, affiliates, security holders or creditors for, any losses, claims, damages or liabilities (including actions or proceedings in respect thereof) (collectively, “Losses”) related to or arising out of otherwise related to the GP LLC Services, except that the foregoing indemnity shall not apply to any Losses that are finally determined by a court or arbitral tribunal to have resulted primarily from the gross negligence, bad faith or willful misconduct of such Indemnified Person.  IN NO EVENT SHALL THE GP LLC GROUP OR THE INDEMNIFIED PERSONS BE LIABLE TO THE PAGP ENTITIES OR TO ANY OTHER PERSON FOR ANY EXEMPLARY, PUNITIVE, INDIRECT, INCIDENTAL, CONSEQUENTIAL, OR SPECIAL DAMAGES RESULTING FROM THE PERFORMANCE OF THE GP LLC SERVICES.

 

2.8                               Force Majeure.  GP LLC shall have no obligation to perform the GP LLC Services if its failure to do so is caused by or results from any act of God, governmental action, natural disaster, strike, failure of essential equipment, or any other cause or circumstance, whether similar or dissimilar to the foregoing causes or circumstances, beyond the reasonable control of GP LLC.

 

2.9                               Affiliates.  At its election, GP LLC may cause one or more of its Affiliates or third party contractors, reasonably acceptable to the Party receiving any GP LLC Services, to provide such GP LLC Services; provided, however, GP LLC shall remain responsible for the provision of such GP LLC Service in accordance with this Agreement.

 

ARTICLE 3
 BUSINESS OPPORTUNITIES

 

3.1                               Business Opportunities.  If any of the PAGP Entities or any member of the GP LLC Group is offered a business opportunity by a third party, or discovers a business opportunity, the PAGP Entity or member of the GP LLC Group that is offered or discovers such business opportunity shall promptly advise GP LLC and present such business opportunity to

 

4

 

PAA. PAA will have the right to pursue such business opportunity.  PAGP will have the right to pursue and/or participate in such business opportunity if invited to do so by PAA, or if PAA abandons the business opportunity and GP LLC so notifies PAGP GP.

 

ARTICLE 4
 OTHER AGREEMENTS

 

4.1                               Joint Litigation.  In any litigation or proceeding involving one or more members of the PAGP Entities and one or more members of the GP LLC Group, GP LLC shall have primary responsibility for assuming the defense of the related claim(s) and may employ counsel to represent jointly the PAGP Entity or PAGP Entities and the member or members of the GP LLC Group, unless PAGP GP has reasonably concluded, based on the advice of counsel, that (a) there may be a legal defense available to any PAGP Entity that is different from or in addition to those available to the GP LLC Group or (b) joint representation of the PAGP Entity or PAGP Entities and the member or members of the GP LLC Group by the same counsel would present a conflict due to actual or potential differing interests between them.  In the event that GP LLC assumes the defense of any claim(s) pursuant to this Section 4.1, GP LLC may not settle or compromise any such claim(s) on behalf of any PAGP Entity without the prior written consent of the applicable PAGP Entity.  If GP LLC assumes the defense of any claim(s) pursuant to this Section 4.1, GP LLC shall allocate the cost of such defense between the PAGP Entities and the GP LLC Group on a fair and reasonable basis.

 

4.2                               Grant of License.  Upon the terms and conditions set forth in this Section 4.2, PAA hereby grants and conveys to each of the entities currently or hereafter comprising a part of the PAGP Entities, a nontransferable, nonexclusive, royalty free right and license (“License”) to use the names “PAA” and “Plains” (the “Names”) and any associated or related marks (the “Marks”).  PAGP agrees that ownership of the Names and the Marks and the goodwill relating thereto shall remain vested in PAA both during the term of this License and thereafter, and PAGP further agrees, and agrees to cause the other PAGP Entities, never to challenge, contest or question the validity of PAA’s ownership of the Names and the Marks or any registration thereto by PAA. In connection with the use of the Names and the Marks, PAGP and any other PAGP Entity shall not in any manner represent that they have any ownership in the Names and the Marks or registration thereof except as set forth herein, and PAGP, on behalf of itself and the other PAGP Entities, acknowledges that the use of the Names and the Marks shall not create any right, title or interest in or to the Names and the Marks, and all use of the Names and the Marks by PAGP or any other PAGP Entity, shall inure to the benefit of PAA. PAGP agrees, and agrees to cause the other PAGP Entities, to use the Names and the Marks in accordance with such quality standards established by PAA and communicated to PAGP from time to time, it being understood that the products and services offered by the PAGP Entities immediately before the date of this Agreement are of a quality that is acceptable to PAA and justify the License.  The License shall terminate upon a termination of this Agreement pursuant to Section 5.14.

 

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ARTICLE 5
 MISCELLANEOUS

 

5.1                               Choice of Law; Submission to Jurisdiction.  This Agreement shall be subject to and governed by the laws of the State of Texas.  Each Party hereby submits to the exclusive jurisdiction of the state and federal courts in the State of Texas and to exclusive venue in Houston, Harris County, Texas.

 

5.2                               Notices.  All notices or requests or consents provided for or permitted to be given pursuant to this Agreement must be in writing and must be given (a) by depositing same in the United States mail, addressed to the Party to be notified, postpaid, and registered or certified with return receipt requested, (b) by delivering such notice in person or (c) by facsimile to such Party.  Notice given by personal delivery or mail shall be effective upon actual receipt.  Notice given by facsimile shall be effective upon actual receipt if received during the recipient’s normal business hours, or at the beginning of the recipient’s next business day after receipt if not received during the recipient’s normal business hours.  All notices to be sent to a Party pursuant to this Agreement shall be sent to or made at the address set forth below such Party’s signature to this Agreement, or at such other address as such Party may stipulate to the other Parties by notice given in the manner provided in this Section 5.2.

 

5.3                               Entire Agreement; Supersedure.  This Agreement constitutes the entire agreement of the Parties relating to the matters contained herein, superseding all prior contracts or agreements among the Parties, whether oral or written, relating to the matters contained herein.

 

5.4                               Effect of Waiver of Consent.  No Party’s express or implied waiver of, or consent to, any breach or default by any Party in the performance by such Party of its obligations hereunder shall be deemed or construed to be a consent or waiver to or of any other breach or default in the performance by such Party of the same or any other obligations of such Party hereunder.  Failure on the part of a Party to complain of any act of any Party or to declare any Party in default, irrespective of how long such failure continues, shall not constitute a waiver by such Party of its rights hereunder until the applicable statute of limitations period has run.

 

5.5                               Amendment or Modification.  This Agreement may be amended or modified from time to time only by the agreement of all the Parties affected by any such amendment; provided, however, that PAGP and PAA may not, without the prior approval of its Conflicts Committee, agree to any amendment or modification of this Agreement that, in the reasonable discretion of PAGP GP or PAA GP, as applicable, will materially and adversely affect the holders of equity interests of PAGP or PAA, as applicable.

 

5.6                               Assignment.  No Party shall have the right to assign or delegate its rights or obligations under this Agreement without the consent of the other Parties.

 

5.7                               Counterparts.  This Agreement may be executed in any number of counterparts with the same effect as if all Parties had signed the same document.  All counterparts shall be construed together and shall constitute one and the same instrument.

 

5.8                               Severability.  If any provision of this Agreement or the application thereof to any Party or circumstance shall be held invalid or unenforceable to any extent, the remainder of this

 

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Agreement and the application of such provision to other Parties or circumstances shall not be affected thereby and shall be enforced to the greatest extent permitted by law.

 

5.9                               Further Assurances.  In connection with this Agreement and all transactions contemplated by this Agreement, each Party hereto agrees to execute and deliver such additional documents and instruments and to perform such additional acts as may be necessary or appropriate to effectuate, carry out and perform all of the terms, provisions and conditions of this Agreement and all such transactions.

 

5.10                        Withholding or Granting of Consent.  Unless the consent or approval of a Party is expressly required not to be unreasonably withheld (or words to similar effect), each Party may, with respect to any consent or approval that it is entitled to grant pursuant to this Agreement, grant or withhold such consent or approval in its sole and uncontrolled discretion, with or without cause, and subject to such conditions as it shall deem appropriate.

 

5.11                        U.S. Currency.  All sums and amounts payable or to be payable pursuant to the provisions of this Agreement shall be payable in coin or currency of the United States of America that, at the time of payment, is legal tender for the payment of public and private debts in the United States of America.

 

5.12                        Laws and Regulations.  Notwithstanding any provision of this Agreement to the contrary, no Party hereto shall be required to take any act, or fail to take any act, under this Agreement if the effect thereof would be to cause such Party to be in violation of any applicable law, statute, rule or regulation.

 

5.13                        Negation of Rights of Third Parties.  The provisions of this Agreement are enforceable solely by the Parties, and no limited partner of PAGP or PAA or other Person shall have the right to enforce any provision of this Agreement or to compel any Party to comply with the terms of this Agreement.

 

5.14                        Termination.  Notwithstanding any other provision of this Agreement, this Agreement shall remain in full force and effect until terminated by mutual agreement of all Parties hereto.

 

5.15                        Successors.  This Agreement shall bind and inure to the benefit of the Parties and to their respective successors and assigns.

 

5.16                        No Recourse Against Officers or Directors.  For the avoidance of doubt, the provisions of this Agreement shall not give rise to any right of recourse against any officer or director of PAGP, PAGP GP, PAA, AAP, PAA GP or GP LLC.

 

5.17                        Legal Compliance.  The Parties acknowledge and agree that this Agreement, and all services provided under this Agreement, are intended to comply with any and all laws and legal obligations and that this Agreement should be construed and interpreted with this purpose in mind. In this regard, the Parties specifically agree as follows:

 

(a)                                 The Parties will comply with all equal employment opportunity requirements and other applicable employment laws. Where a joint or combined action is

 

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required by the law in order to comply with an employment obligation, the Parties will cooperate fully and in good faith to comply with the applicable obligation.

 

(b)                                 The Parties agree that they will adhere to the Fair Labor Standards Act of 1938, as amended, any comparable state law and any law regulating the payment of wages or compensation.

 

[SIGNATURE PAGE FOLLOWS]

 

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IN WITNESS WHEREOF, the Parties have caused this Agreement to be duly executed by their respective authorized officers as of the date first above written, to be effective as of the Effective Date.

 

	
 
    	
PLAINS   GP HOLDINGS, L.P.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
PAA   GP HOLDINGS LLC
    
	
 
    	
 
    	
Individually   and as General Partner of
    
	
 
    	
 
    	
Plains   GP Holdings, L.P.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Richard McGee
    
	
 
    	
Name:
    	
Richard   McGee
    
	
 
    	
Title:
    	
Executive   Vice President,
    
	
 
    	
 
    	
General   Counsel and Secretary
    
	
 
    	
 
    	
 
    
	
 
    	
Address   for Notice:
    
	
 
    	
333   Clay Street, Suite 1600
    
	
 
    	
Houston,   Texas 77002
    
	
 
    	
Facsimile   No.: (713) 646-4313
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
PLAINS   ALL AMERICAN PIPELINE, L.P.
    
	
 
    	
 
    	
 
    
	
 
    	
PAA   GP LLC
    
	
 
    	
 
    	
 
    
	
 
    	
PLAINS   AAP, L.P.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
PLAINS   ALL AMERICAN GP LLC, Individually   and as General Partner of Plains AAP, L.P., the General Partner of PAA GP   LLC, the General Partner of Plains All American Pipeline, L.P.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Richard McGee
    
	
 
    	
Name:
    	
Richard   McGee
    
	
 
    	
Title:
    	
Executive   Vice President,
    
	
 
    	
 
    	
General   Counsel and Secretary
    
	
 
    	
 
    	
 
    
	
 
    	
Address   for Notice:
    
	
 
    	
333   Clay Street, Suite 1600
    
	
 
    	
Houston,   Texas 77002
    
	
 
    	
Facsimile   No.: (713) 646-4313
    

 

 

Exhibit A

 

DEFINED TERMS

 

“AAP” shall have the meaning set forth in the Preamble.

 

“Administrative Services Fee” shall have the meaning set forth in Section 2.2(a).

 

“Affiliate” shall mean, with respect to any Person, any other Person that directly or indirectly through one or more intermediaries controls, is controlled by or is under common control with, the Person in question. As used herein, the term “control” means the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a Person, whether through ownership of voting securities, by contract or otherwise.

 

“Agreement” shall mean this Administrative Agreement, as it may be amended, modified, or supplemented from time to time.

 

“Conflicts Committee” has the definition of such committee in the partnership agreements of PAA and PAGP, as applicable.

 

“CPI Index” shall have the meaning set forth in Section 2.2(a).

 

“Effective Date” shall have the meaning set forth in the Preamble.

 

“Expense Reimbursement Fee” shall have the meaning set forth in Section 2.2(b).

 

“Franchise Costs,” with respect to any Person, shall mean any costs associated with establishing and maintaining the good standing, business existence and operations of a particular entity, including state franchise or business taxes, preparation costs and filing fees.

 

“GP LLC” shall have the meaning set forth in the Preamble.

 

“GP LLC Group” shall have the meaning set forth in the Preamble.

 

“GP LLC Services” shall have the meaning set forth in Section 2.1.

 

“Indemnified Persons” shall have the meaning set forth in Section 2.7.

 

“License” shall have the meaning set forth in Section 4.2.

 

“Losses” shall have the meaning set forth in Section 2.7.

 

“Marks” shall have the meaning set forth in Section 4.2.

 

“Names” shall have the meaning set forth in Section 4.2.

 

“PAA” shall have the meaning set forth in the Preamble.

 

“PAA GP” shall have the meaning set forth in the Preamble.

 

“PAGP” shall have the meaning set forth in the Preamble.

 

“PAGP Entities” shall have the meaning set forth in the Preamble.

 

A-1

 

“PAGP GP” shall have the meaning set forth in the Preamble.

 

“Party” shall mean any one of the Persons that executes this Agreement.

 

“Person” means an individual or a corporation, limited liability company, partnership, joint venture, trust, unincorporated organization, association, government agency or political subdivision thereof or other entity.

 

A-2Exhibit 10.2

 

Execution Version

 

CONTRIBUTION AGREEMENT

 

By and Among,

 

PLAINS GP HOLDINGS, L.P.,

 

PAA GP HOLDINGS LLC

 

And

 

THE OTHER PARTIES SIGNATORY HERETO

 

Dated as of October 21, 2013

 

 

CONTRIBUTION AGREEMENT

 

This Contribution Agreement, dated as of October 21, 2013 (this “Contribution Agreement”), is by and among Plains GP Holdings, L.P., a Delaware limited partnership (“PAGP”), PAA GP Holdings LLC, a Delaware limited liability company and the general partner of PAGP (“PAGP GP”), the Persons listed under the heading “Existing Owners” on the signature pages hereto (collectively, the “Existing Owners”) and the Persons listed under the heading “EMG Seller Parties” on the signature pages hereto (such EMG Seller Parties, together with any Existing Owner who will receive a cash payment as reflected on Exhibit A hereto, the “Sellers”).  The above-named Persons are sometimes referred to in this Contribution Agreement each as a “Party” and collectively as the “Parties.”  Capitalized terms used herein shall have the meanings assigned to such terms in Article I.

 

RECITALS

 

WHEREAS, the Existing Owners collectively own 100% of the Class A Units (the “AAP Units”) in Plains AAP, L.P., a Delaware limited partnership (“AAP”), and 100% of the membership interests in Plains All American GP LLC, a Delaware limited liability company (“GP LLC”) (each as reflected in Exhibit A attached hereto);

 

WHEREAS, AAP directly owns all of the incentive distribution rights in Plains All American Pipeline, L.P., a Delaware limited partnership (“PAA”), and 100% of the membership interests in PAA GP LLC, a Delaware limited partnership and direct owner of a 2% general partner interest in PAA (“PAA GP”);

 

WHEREAS, PAA Management, L.P., a Delaware limited partnership (“PAA Management”), formed PAGP GP, pursuant to the terms of the Delaware Limited Liability Company Act to act as the general partner of PAGP;

 

WHEREAS, PAA Management and PAGP GP formed PAGP pursuant to the terms of the Delaware Revised Uniform Limited Partnership Act for the purpose of facilitating the Offering;

 

WHEREAS, pursuant to resolutions adopted by GP LLC (on behalf of itself and in its capacity as the general partner of AAP), the 1% general partner interest in AAP owned by GP LLC has been converted into AAP Units and a non-economic general partner interest in AAP, and GP LLC has effected a pro rata distribution of such AAP Units it received as a result of such conversion to the Existing Owners;

 

WHEREAS, the Existing Owners desire to contribute their membership interests in GP LLC to PAGP GP in exchange for the issuance by PAGP GP of  membership interests in PAGP GP (the “GP Units”), whereupon the organizational membership interest of PAA Management in PAGP GP shall be cancelled;

 

WHEREAS, PAGP GP desires to further contribute all of the membership interests in GP LLC received by it from the Existing Owners to PAGP in exchange for the continuation of its non-economic general partner interest;

 

 

WHEREAS, promptly following its receipt of GP Units from PAGP GP, EMG Investment, LLC will make a distribution of a portion of its AAP Units and GP Units to the EMG Seller Parties and the EMG Seller Parties have agreed to be Sellers hereunder; and

 

WHEREAS, in connection with the foregoing contributions, the Existing Owners will be issued PAGP Class B Shares as reflected on Exhibit A;

 

WHEREAS, in connection with the contributions noted above and as part of the Offering and in exchange for the Consideration, the Sellers desire to transfer to PAGP the interests set forth for such Party in the columns “AAP Units Sold” and “GP Units Sold,” in each case as reflected on Exhibit A (collectively, the “Transferred Assets”);

 

NOW, THEREFORE, in consideration of the mutual covenants, representations, warranties and agreements herein contained, the Parties agree as follows:

 

ARTICLE I
 DEFINITIONS

 

The terms set forth below in this ARTICLE I shall have the meanings ascribed to them below:

 

“AAP” has the meaning set forth in the recitals.

 

“AAP Partnership Agreement” has the meaning set forth in Section 5.2.

 

“AAP Units” has the meaning set forth in the recitals.

 

“Commission” means the U.S. Securities and Exchange Commission.

 

“Consideration” has the meaning set forth in Section 2.3.

 

“Closing” means the closing of the transactions contemplated pursuant to this Contribution Agreement.

 

“Effective Time” means immediately prior to the closing of the Offering pursuant to the Underwriting Agreement.

 

“Existing Owners” has the meaning set forth in the introductory paragraph.

 

“Governmental Authority” means (i) the United States of America, (ii) any state, province, county, municipality or other governmental subdivision within the United States of America, and (iii) any court or any governmental department, commission, board, bureau, agency or other instrumentality of the United States of America, or of any state, province, county, municipality or other governmental subdivision within the United States of America.

 

“GP LLC” has the meaning set forth in the recitals.

 

“GP LLC Agreement” has the meaning set forth in Section 5.3.

 

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“GP Units” has the meaning set forth in the recitals.

 

“Offering” means the initial public offering of the Class A Shares contemplated by the Registration Statement.

 

“Option” has the meaning set forth in Section 3.1.

 

“Option Proceeds” has the meaning set forth in Section 3.1.

 

“Oxy” has the meaning set forth in Section 3.2.

 

“PAA” has the meaning set forth in the recitals.

 

“PAA GP” has the meaning set forth in the recitals.

 

“PAA Management” has the meaning set forth in the recitals.

 

“PAGP” has the meaning set forth in the introductory paragraph.

 

“PAGP Class B Shares” means the Class B Shares of PAGP, representing limited partner interests in PAGP.

 

“PAGP GP” has the meaning set forth in the introductory paragraph.

 

“Party or Parties” has the meaning set forth in the introductory paragraph.

 

“Person” means any individual, partnership, corporation, limited liability company, trust, incorporated or unincorporated organization or other legal entity of any kind.

 

“Registration Statement” means PAGP’s Registration Statement on Form S-1 filed with the Commission (Registration No. 333-190227), as amended.

 

“Sellers” has the meaning set forth in the introductory paragraph.

 

“Spread” means the underwriting discounts and commissions payable by PAGP to the underwriters in connection with the Offering, including in respect of the Option.

 

“Transferred Assets” has the meaning set forth in the recitals.

 

“Underwriters” means those underwriters listed in the Underwriting Agreement.

 

“Underwriting Agreement” means that certain Underwriting Agreement among Barclays Capital Inc., as representative of the Underwriters, PAGP GP and PAGP dated as of October 15, 2013.

 

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ARTICLE II
 CONTRIBUTION AND DISTRIBUTION TRANSACTIONS

 

Section 2.1                                   Contribution by the Existing Owners of Interests in GP LLC to PAGP GP and PAGP.  Each of the Existing Owners hereby grants, contributes, bargains, assigns, transfers, sets over and delivers to PAGP GP, its successors and assigns, for its and their own use forever, the membership interests in GP LLC of such Existing Owner set forth for such Party in the column “Pre-Closing Percentage Ownership of GP LLC” on Exhibit A in exchange for the receipt of the membership interests in PAGP GP set forth for such Party in the column titled “GP Units Received” on Exhibit A.  In connection with such contribution, PAA Management hereby agrees to the cancellation of its initial formation interest in PAGP GP. Immediately following such contribution, PAGP GP hereby contributes all of such membership interests in GP LLC to PAGP in exchange for the continuation of its non-economic general partner interest in PAGP.

 

Section 2.2                                   Receipt of PAGP Class B Shares.  As a result of the contributions by the General Partner described in Section 2.1, in connection with the closing of the Offering, PAGP will issue the total number of PAGP Class B Shares set forth at the bottom of the column “PAGP Class B Shares Received” on Exhibit A to PAGP GP. Immediately following such issuance, PAGP GP will distribute to each Existing Owner the number of PAGP Class B Shares set forth for such Party in the column “PAGP Class B Shares Received” on Exhibit A.

 

Section 2.3                                   Sale of Interests in PAGP GP and AAP.  Each Seller hereby grants, contributes, bargains, assigns, sells, transfers, sets over and delivers to PAGP, its successors and assigns, for its and their own use forever, the Transferred Assets owned by such Seller.  In exchange for such transfer, each Seller shall in connection with the closing of the Offering receive a cash payment from PAGP in the amount set forth for such Party in the column “Cash Payment” on Exhibit A (the “Consideration”).  Each Seller and PAGP shall, upon consummation of the transactions contemplated by this Section 2.3, execute and deliver to each other a cross-receipt acknowledging receipt of the consideration to which such party is entitled pursuant to this Section 2.3.

 

Section 2.4                                   Resulting Ownership Interests.  After giving effect to the transactions contemplated by Sections 2.1, 2.2, 2.3 and 2.5, the Existing Owners will collectively own a 78.9% membership interest in PAGP GP and a 78.9% limited partnership interest in AAP, as reflected on an individual basis on Exhibit A and PAGP will own a 21.1% membership interest in PAGP GP and a 21.1% limited partnership interest in AAP. Additionally, PAA Management hereby agrees to the cancellation of its initial limited partner interest in PAGP.

 

Section 2.5                                   Underwriter’s Cash Contribution.  The Parties acknowledge that, contemporaneously with the execution and delivery of this Contribution Agreement, the Underwriters are, pursuant to the Underwriting Agreement, making a capital contribution to PAGP of $2.816 billion in cash, (or a net capital contribution of $2.73152 billion after deducting the Spread of $84.48 million) in exchange for the issuance by PAGP to the Underwriters of 128,000,000 Class A Shares, representing a 21.1% limited partner interest in PAGP.

 

Section 2.6                                   Payment of Transaction Expenses by PAGP.  The Parties hereby acknowledge (a) the incurrence by PAGP, in connection with the transactions contemplated

 

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hereby, of transaction expenses in the estimated amount of approximately $5.0 million (exclusive of the Spread), including reimbursement of certain transaction expenses advanced by certain of the Existing Owners, and (b) the payment by PAGP of $2.72652 billion, representing the net proceeds of the Offering after deducting expenses in a manner consistent with this Section 2.6, to the Sellers as contemplated by Section 2.3 above. The Parties further acknowledge that certain of the transaction expenses incurred by PAGP relate to the Offering and other transaction expenses are not directly related to the Offering but relate generally to the formation and restructuring of PAGP, PAGP GP and related entities.  In recognition of the foregoing, the Parties agree that (i) the Sellers receiving cash proceeds in connection with the Offering, as reflected on Exhibit A, will bear 75% of the above described estimated transaction expenses, in proportion to their relative receipt of cash proceeds of the Offering and (ii) PAGP will cause AAP to bear the remainder of such transaction expenses (including any expenses that exceed the estimate described above).  The residual transaction expenses to be borne by AAP shall be deducted from the distribution payable to the Existing Owners by AAP with respect to the third quarter of 2013.

 

Section 2.7                                   Tax Matters.

 

(a)                                 The Parties agree to treat the transfer and sale of the Transferred Assets by the Sellers to PAGP in exchange for the Consideration as a taxable sale or exchange.  The Parties also agree to report such transfer in accordance with the foregoing sentence for all U.S. federal income and any applicable state and local income or franchise tax purposes.

 

(b)                                 At Closing, each Seller shall provide to PAGP an executed certificate of non-foreign status described in Treasury Regulation § 1.1445-2(b)(2) substantially in the form attached hereto as Exhibit B (individual form) or Exhibit C (entity form), as appropriate.  With respect to any Seller that fails to provide such certificate, PAGP will withhold pursuant to Section 1445 of the Internal Revenue Code cash in an amount equal to 10% of the Consideration delivered to such Seller.

 

(c)                                  The Parties agree that the allocations of taxable income of AAP for the 2013 tax year shall be made in a manner that reflects the rights of the Sellers and PAGP to cash distributions as reflected in Section 4.2 of the AAP Partnership Agreement.

 

Section 2.8                                   Nature of Existing Owners’ and Sellers’ Obligations and Rights.  The respective obligations of each Existing Owner and each Seller under this Contribution Agreement are several and not joint with the obligations of any other Existing Owner and Seller, and no Existing Owner or Seller shall be responsible in any way for the performance of the obligations of any other Existing Owner or Seller under this Contribution Agreement. The failure or waiver of performance under this Contribution Agreement by any Existing Owner or Seller, or on its behalf, does not excuse performance by any other Existing Owner or Seller. Nothing contained herein, no transactions contemplated hereby, and no action taken by any Existing Owner or Seller pursuant hereto, shall be deemed to constitute the Existing Owners and/or the Sellers as a partnership, an association, a joint venture or any other kind of entity, or create a presumption that the Existing Owners or the Sellers are in any way acting in concert or as a group with respect to such obligations or the transactions contemplated hereby. Each Existing Owner and each Seller shall be entitled to independently protect and enforce its rights, and it

 

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shall not be necessary for any other Existing Owner or Seller to be joined as an additional party in any proceeding for such purpose.

 

ARTICLE III
 ADDITIONAL TRANSACTIONS

 

Section 3.1                                   Over-Allotment Option.  The Parties agree that in the event the option granted by PAGP to the Underwriters in the Underwriting Agreement to purchase additional Class A Shares is exercised in whole or in part by the Underwriters (the “Option”), the Underwriters will contribute additional cash to PAGP (the “Option Proceeds”) in exchange for up to an additional 19,200,000 Class A Shares  on the basis of the initial public offering price per Class A Share set forth in the Registration Statement, net of the Spread and offering expenses associated with the Option.

 

Section 3.2                                   Redemption of Class B Shares and AAP Units.  The Parties agree, that if the Option is exercised in whole or in part by the Underwriters, (a) PAGP will redeem from Oxy Holding Company (Pipeline), Inc. (“Oxy”) a number of PAGP Class B Shares, and purchase from Oxy a corresponding number of AAP Units, equal to the number of Class A Shares purchased by the Underwriters pursuant to the Option  for a price equal to the product of (i) the initial public offering price per Class A Share set forth in the Registration Statement, less the Spread and (ii) the number of AAP Units being purchased  by PAGP, less the total amount of  offering expenses associated with the Option, and (b) Oxy will contribute to PAGP a number of GP Units that equals the number of PAGP Class B Shares redeemed.

 

ARTICLE IV
 REPRESENTATIONS AND WARRANTIES OF THE 
 EXISTING OWNERS AND THE SELLERS

 

Each Existing Owner and each Seller, severally and not jointly, hereby represents and warrants to PAGP with respect to itself, as of the date hereof, as follows:

 

(a)                                 Such Party is an individual or has been duly incorporated or formed and is validly existing in good standing under the laws of its state of incorporation or formation, with all individual, corporate or partnership power and authority necessary to own or hold each such Party’s properties and conduct the businesses in which each such Party is engaged and, to execute and deliver this Contribution Agreement and to consummate the transactions contemplated hereby.

 

(b)                                 Such Party owns the “Pre-Closing Percentage Ownership of AAP Units,” “Pre-Closing Percentage Ownership of GP LLC,” “GP Units Received,” “AAP Units Sold” and “GP Units Sold” set forth opposite such Party’s name in the columns so titled on Exhibit A, free and clear of all liens, encumbrances, security interests, equities, charges or claims.

 

(c)                                  All individual, corporate or partnership action required to be taken by such Party or any of its securityholders for the authorization, execution and delivery of this Contribution Agreement and the consummation of the transactions contemplated by this Contribution Agreement has been validly taken.

 

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(d)                                 None of the (i) the execution, delivery and performance of this Contribution Agreement by such Party, or (ii) consummation of the transactions contemplated hereby (A) conflicts with or constitutes a violation of the organizational documents of such Party, (B) conflicts with or constitutes 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 such Party is a party or by which such Party or any of its respective properties may be bound, (C) violates any statute, law or regulation or any order, judgment, decree or injunction of any Governmental Authority or body having jurisdiction over such Party, or any of its respective properties or assets, or (D) results in the creation or imposition of any lien, charge or encumbrance upon any property or assets of such Party, which conflicts, breaches, violations, defaults or liens, in the case of clauses (B), (C) or (D), would, individually or in the aggregate, materially impair (i) the transactions contemplated by this Contribution Agreement or (ii) the ownership and use by PAGP of the Transferred Assets at or after the Effective Time.

 

(e)                                  No permit, consent, approval, authorization, order, registration, filing or qualification (a “consent”) of or with any Governmental Authority or body having jurisdiction over such Party or any of its respective properties is required in connection with (i) the execution, delivery and performance of this Contribution Agreement by such Party, or (ii) the consummation by such Party of the transactions contemplated by this Contribution Agreement, except for such consents that have been obtained.

 

ARTICLE V
 APPROVALS

 

Section 5.1                                   Consent to Contribution Agreement Transactions.  Each of the Existing Owners and the Sellers, on behalf of themselves, GP LLC and AAP, in their capacity as members of GP LLC and in their capacity as holders of AAP Units, and in GP LLC’s capacity as the general partner of AAP, hereby ratifies, authorizes, approves, confirms and consents to, in all respects, the terms and provisions of, and the transactions contemplated by, this Contribution Agreement.  Without limiting the generality of the foregoing, each Party (i) deems the transfers of AAP Units and membership interests in GP LLC and, if applicable the transfers of PAGP Class B Shares, pursuant to Article II or Article III hereof, when consummated in accordance with this Contribution Agreement, to have satisfied all requirements for the effectiveness of such transfers under the AAP Partnership Agreement (including, as in effect prior to the date hereof) and the GP LLC Agreement (including, as in effect prior to the date hereof); and (ii) permanently, irrevocably and unconditionally waives any right or power it might have to prevent, alter, encumber, rescind or nullify any of such transfers, including a waiver of any right of first refusal it may hold pursuant to Section 7.8 of the AAP Partnership Agreement (including, as in effect prior to the date hereof) and/or Section 9.8 of the GP LLC Agreement (including, as in effect prior to the date hereof) with respect to such transfers.

 

Section 5.2                                   Amendment and Restatement of the Limited Partnership Agreement of AAP.  Each of the Existing Owners, on behalf of themselves, GP LLC and AAP, in their capacity as members of GP LLC, and in GP LLC’s capacity as the general partner of AAP, hereby ratifies, authorizes, approves, adopts and confirms, in all respects, the terms and

 

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provisions of the Seventh Amended and Restated Limited Partnership Agreement of AAP, substantially in the form attached hereto as Exhibit D (the “AAP Partnership Agreement”).

 

Section 5.3                                   Amendment and Restatement of the Limited Liability Company Agreement of GP LLC.  Each of the Existing Owners, on behalf of themselves and GP LLC, in their capacity as members of GP LLC, hereby ratifies, authorizes, approves, adopts and confirms, in all respects, the terms and provisions of the Sixth Amended and Restated Limited Liability Company Agreement of GP LLC, substantially in the form attached hereto as Exhibit E (the “GP LLC Agreement”).

 

Section 5.4                                   Amendment and Restatement of the Limited Liability Company Agreement of PAGP GP.  Each of the Existing Owners, on behalf of themselves and PAGP GP, in their capacity as members of PAGP GP, hereby ratifies, authorizes, approves, adopts and confirms, in all respects, the terms and provisions of the Amended and Restated Limited Liability Company Agreement of PAGP GP, substantially in the form attached hereto as Exhibit F.

 

ARTICLE VI
 FURTHER ASSURANCES

 

From time to time after the Effective Time, and without any further consideration, the Parties agree to execute, acknowledge and deliver all such additional deeds, assignments, bills of sale, conveyances, instruments, notices, releases, acquittances and other documents, and will do all such other acts and things, all in accordance with applicable law, as may be necessary or appropriate (a) more fully to assure that the applicable Parties own all of the properties, rights, titles, interests, estates, remedies, powers and privileges granted by this Contribution Agreement, or which are intended to be so granted, or (b) more fully and effectively to vest in the applicable Parties and their respective successors and assigns beneficial and record title to the interests contributed and assigned by this Contribution Agreement or intended so to be, and (c) more fully and effectively to carry out the purposes and intent of this Contribution Agreement.

 

ARTICLE VII
 EFFECTIVE TIME

 

Notwithstanding anything contained in this Contribution Agreement to the contrary, none of the provisions of ARTICLE II or ARTICLE III of this Contribution Agreement shall be operative or have any effect prior to the Effective Time; immediately following the Effective Time all the provisions of ARTICLE II of this Contribution Agreement shall be effective and operative, without further action by any Party hereto; and to the extent the Option is exercised by the Underwriters, the transactions contemplated by the ARTICLE III shall be effective and operative at the closing of the Option, in accordance with ARTICLE III.

 

ARTICLE VIII
 INDEMNIFICATION

 

Section 8.1                                   Indemnification by the Existing Owners and Sellers.  Subject to the other provisions of this ARTICLE VIII, each Existing Owner and each Seller agrees, severally and not jointly, to indemnify, defend and hold harmless PAGP from and against any losses,

 

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damages, liabilities, claims, demands, causes of action, judgments, settlements, fines, penalties, costs and expenses (including, without limitation, court costs and reasonable attorney’s fees and expert fees) of any and every kind and character (“Losses”), insofar as such Losses arise out of or are based upon:

 

(a)                                 the failure of such Existing Owner or Seller to transfer to PAGP GP and PAGP good and valid title to the equity interests set forth such Existing Owner’s or Seller’s name on Exhibit A hereto, free and clear of all liens, encumbrances, security interests, equities, charges or claims (other than as may arise or exist under the AAP Partnership Agreement), pursuant to the terms of this Contribution Agreement;

 

(b)                                 the failure of such Existing Owner or Seller to have as of the Closing any consent or approval of a Governmental Authority necessary to allow the transfer by such Existing Owner or Seller of its portion of the membership interest in GP LLC or the Transferred Assets, as applicable; and

 

(c)                                  all federal, state and local income tax liabilities attributable to the Transferred Assets allocable to such Existing Owner or Seller prior to the Closing, including any such income tax liabilities of any Seller that may result from the consummation of the transactions contemplated by this Contribution Agreement.

 

Section 8.2                                   Indemnification Procedure.

 

(a)                                 As used in this Section 8.2, the term “Indemnifying Party” refers to the Existing Owners; and the term “Indemnified Party” refers to PAGP.

 

(b)                                 The Indemnified Party agrees that within a reasonable period of time after it becomes aware of facts giving rise to a claim for indemnification under this ARTICLE VIII, it will provide notice thereof in writing to the Indemnifying Party, specifying the nature of and specific basis for such claim.

 

(c)                                  The Indemnifying Party shall have the right to control, at its sole cost and expense, all aspects of the defense of (and any counterclaims with respect to) any claims brought against the Indemnified Party that are covered by the indemnification under this ARTICLE VIII, including, without limitation, the selection of counsel, determination of whether to appeal any decision of any Governmental Authority and the settling of any such matter or any issues relating thereto; provided, however, that no such settlement shall be entered into without the consent of the Indemnified Party (which consent shall not be unreasonably withheld) unless it includes a full release of the Indemnified Party from such matter or issues, as the case may be.

 

(d)                                 The Indemnified Party agrees to cooperate fully with the Indemnifying Party, with respect to (i) its pursuit of insurance coverage or recoveries with respect to the claims covered by the indemnification under this ARTICLE VIII and (ii) all aspects of the defense of any claims covered by the indemnification under this ARTICLE VIII, including, without limitation, the prompt furnishing to the Indemnifying Party of any correspondence or other notice relating thereto that the Indemnified Party may receive, permitting the name of the Indemnified Party to be utilized in connection with such defense, the making available to the Indemnifying Party of any files, records or other information of the Indemnified Party that the Indemnifying Party

 

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considers relevant to such defense and the making available to the Indemnifying Party of any employees of the Indemnified Party; provided, however, that in connection therewith the Indemnifying Party agrees to use reasonable efforts to minimize the impact thereof on the operations of the Indemnified Party and further agrees to maintain the confidentiality of all files, records, and other information furnished by the Indemnified Party pursuant to this Section 8.2.  In no event shall the obligation of the Indemnified Party to cooperate with the Indemnifying Party as set forth in the immediately preceding sentence be construed as imposing upon the Indemnified Party an obligation to hire and pay for counsel in connection with the defense of any claims covered by the indemnification set forth in this ARTICLE VIII provided, however, that the Indemnified Party may, at its own option, cost and expense, hire and pay for counsel in connection with any such defense.  The Indemnifying Party agrees to keep any such counsel hired by the Indemnified Party informed as to the status of any such defense, but the Indemnifying Party shall have the right to retain sole control over such defense.

 

ARTICLE IX
 MISCELLANEOUS

 

Section 9.1                                   Order of Completion of Transactions.  The transactions provided for in ARTICLE II shall be completed immediately following the Effective Time.  The transactions provided for in ARTICLE III shall be completed as reflected therein in connection with the closing of the Option.

 

Section 9.2                                   Headings; References; Interpretation.  All Article and Section headings in this Contribution Agreement are for convenience only and shall not be deemed to control or affect the meaning or construction of any of the provisions hereof.  The words “hereof,” “herein” and “hereunder” and words of similar import, when used in this Contribution Agreement, shall refer to this Contribution Agreement as a whole, including, without limitation, all Exhibits attached hereto, and not to any particular provision of this Contribution Agreement.  All personal pronouns used in this Contribution Agreement, whether used in the masculine, feminine or neuter gender, shall include all other genders, and the singular shall include the plural and vice versa.  The use herein of the word “including” following any general statement, term or matter shall not be construed to limit such statement, term or matter to the specific items or matters set forth immediately following such word or to similar items or matters, whether or not non-limiting language (such as “without limitation”, “but not limited to”, or words of similar import) is used with reference thereto, but rather shall be deemed to refer to all other items or matters that could reasonably fall within the broadest possible scope of such general statement, term or matter.

 

Section 9.3                                   Successors and Assigns.  The Contribution Agreement shall be binding upon and inure to the benefit of the Parties and their respective successors and assigns.

 

Section 9.4                                   No Third Party Rights.  The provisions of this Contribution Agreement are intended to bind the Parties as to each other and are not intended to and do not create rights in any other person or confer upon any other person any benefits, rights or remedies and no person is or is intended to be a third party beneficiary of any of the provisions of this Contribution Agreement.

 

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Section 9.5                                   Counterparts.  This Contribution Agreement may be executed in any number of counterparts, all of which together shall constitute one agreement binding on the Parties hereto.

 

Section 9.6                                   Governing Law.  This Contribution Agreement shall be governed by, and construed in accordance with, the laws of the State of Texas applicable to contracts made and to be performed wholly within such state without giving effect to conflict of law principles thereof.

 

Section 9.7                                   Severability.  If any of the provisions of this Contribution Agreement are held by any court of competent jurisdiction to contravene, or to be invalid under, the laws of any political body having jurisdiction over the subject matter hereof, such contravention or invalidity shall not invalidate the entire Contribution Agreement. Instead, this Contribution Agreement shall be construed as if it did not contain the particular provision or provisions held to be invalid and an equitable adjustment shall be made and necessary provision added so as to give effect to the intention of the Parties as expressed in this Contribution Agreement at the time of execution of this Contribution Agreement.

 

Section 9.8                                   Amendment or Modification.  This Contribution Agreement may be amended or modified from time to time only by the written agreement of all the Parties. Each such instrument shall be reduced to writing and shall be designated on its face as an Amendment to this Contribution Agreement.

 

Section 9.9                                   Integration.  This Contribution Agreement and the instruments referenced herein supersede all previous understandings or agreements among the Parties, whether oral or written, with respect to their subject matter. This Contribution Agreement and such instruments contain the entire understanding of the Parties with respect to the subject matter hereof and thereof. No understanding, representation, promise or agreement, whether oral or written, is intended to be or shall be included in or form part of this Contribution Agreement unless it is contained in a written amendment hereto executed by the parties hereto after the date of this Contribution Agreement.

 

Section 9.10                            Deed; Bill of Sale; Assignment.  To the extent required and permitted by applicable law, this Contribution Agreement shall also constitute a “deed,” “bill of sale” or “assignment” of the assets and interests referenced herein.

 

Section 9.11                            EMG Seller Parties.  Each of the Persons identified as an EMG Seller Party (collectively, the “EMG Seller Parties”) by separate correspondence delivered to PAGP from John T. Raymond, in his capacity as attorney-in-fact for the EMG Seller Parties, have granted John T. Raymond a power-of-attorney with full power and authority to execute and deliver this  Contribution Agreement.  EMG Investment, LLC or its authorized representative has delivered to PAGP an agreement evidencing such power-of-attorney.  EMG Investment, LLC represents and warrants to PAGP that such power-of-attorney remains in full force and effect as of the date hereof.  The EMG Seller Parties or their authorized representative have provided PAGP with certain notice, wiring and other information requested by PAGP by separate letter.

 

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[signature pages follow]

 

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IN WITNESS WHEREOF, the Parties to this Contribution Agreement have caused it to be duly executed as of the date first above written.

 

	
 
    	
PLAINS   GP HOLDINGS, L.P.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
PAA   GP HOLDINGS LLC,
    
	
 
    	
 
    	
its   general partner
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Richard McGee
    
	
 
    	
 
    	
Name:
    	
Richard   McGee
    
	
 
    	
 
    	
Title:
    	
Executive   Vice President,
    
	
 
    	
 
    	
 
    	
General   Counsel and Secretary
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
PAA   GP HOLDINGS LLC
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Richard McGee
    
	
 
    	
 
    	
Name:
    	
Richard   McGee
    
	
 
    	
 
    	
Title:
    	
Executive   Vice President,
    
	
 
    	
 
    	
 
    	
General   Counsel and Secretary
    
					

 

Signature Page to Contribution Agreement

 

 

	
 
    	
EXISTING   OWNERS:
    
	
 
    	
 
    
	
 
    	
OXY   HOLDING COMPANY (PIPELINE), INC.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Todd A. Stevens
    
	
 
    	
 
    	
Name:
    	
Todd   A. Stevens
    
	
 
    	
 
    	
Title:
    	
Vice   President
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
EMG INVESTMENT, LLC
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
EMG   Admin LP, its manager
    
	
 
    	
By:
    	
EMG   Admin, LLC, its general partner
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   John T. Raymond
    
	
 
    	
 
    	
Name:
    	
John   T. Raymond
    
	
 
    	
 
    	
Title:
    	
Chief   Executive Officer
    
	
 
    	
 
    	
 
    
	
 
    	
KAFU HOLDINGS, L.P.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
KAFU   Holdings, LLC, its general partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   David Shladovsky
    
	
 
    	
 
    	
Name:
    	
David   Shladovsky
    
	
 
    	
 
    	
Title:
    	
General   Counsel
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
KA FIRST RESERVE XII, LLC
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   David Shladovsky
    
	
 
    	
 
    	
Name:
    	
David   Shladovsky
    
	
 
    	
 
    	
Title:
    	
General   Counsel
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
PAA MANAGEMENT, L.P.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
PAA   Management LLC, its general partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Al Swanson
    
	
 
    	
 
    	
Name:
    	
Al   Swanson
    
	
 
    	
 
    	
Title:
    	
Executive   Vice President, Treasurer and
    
	
 
    	
 
    	
 
    	
Chief   Financial Officer
    

 

Signature Page to Contribution Agreement

 

 

	
 
    	
STROME PAA, L.P.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
Strome   Investment Management, LP,
    
	
 
    	
 
    	
its   general partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Mark. E Strome
    
	
 
    	
 
    	
Name:
    	
Mark   E. Strome
    
	
 
    	
 
    	
Title:
    	
President &   Chief Executive Officer
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
MARK E. STROME LIVING TRUST
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Mark. E Strome
    
	
 
    	
 
    	
Name:
    	
Mark   E. Strome
    
	
 
    	
 
    	
Title:
    	
Settlor &   Trustee
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
WINDY, L.L.C.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   W. David Scott
    
	
 
    	
 
    	
Name:
    	
W.   David Scott
    
	
 
    	
 
    	
Title:
    	
Manager
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
LYNX HOLDINGS I, LLC
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   John T. Raymond
    
	
 
    	
 
    	
Name:
    	
John   T. Raymond
    
	
 
    	
 
    	
Title:
    	
Sole   Member
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
KAFU HOLDINGS II, L.P.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
KAFU Holdings, LLC, its general partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   David Shladovsky
    
	
 
    	
 
    	
Name:
    	
David   Shladovsky
    
	
 
    	
 
    	
Title:
    	
General   Counsel
    

 

Signature Page to Contribution Agreement

 

 

	
 
    	
KAYNE ANDERSON MLP INVESTMENT COMPANY
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   David Shladovsky
    
	
 
    	
 
    	
Name:
    	
David   Shladovsky
    
	
 
    	
 
    	
Title:
    	
General   Counsel
    
	
 
    	
 
    	
 
    
	
 
    	
KAYNE ANDERSON ENERGY DEVELOPMENT   COMPANY
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   David Shladovsky
    
	
 
    	
 
    	
Name:
    	
David   Shladovsky
    
	
 
    	
 
    	
Title:
    	
General   Counsel
    
	
 
    	
 
    	
 
    
	
 
    	
KAYNE ANDERSON MIDSTREAM/ENERGY FUND, INC.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   David Shladovsky
    
	
 
    	
 
    	
Name:
    	
David   Shladovsky
    
	
 
    	
 
    	
Title:
    	
General   Counsel
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
JAY   CHERNOSKY
    
	
 
    	
 
    	
 
    
	
 
    	
/s/ Jay Chernosky
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
PAUL   N. RIDDLE
    
	
 
    	
 
    	
 
    
	
 
    	
/s/ Paul N. Riddle
    
	
 
    	
 
    	
 
    
	
 
    	
 
    
	
 
    	
RUSSELL   T. CLINGMAN
    
	
 
    	
 
    	
 
    
	
 
    	
/s/ Russell T. Clingman
    
	
 
    	
 
    	
 
    
	
 
    	
 
    
	
 
    	
DAVID   E. HUMPHREYS
    
	
 
    	
 
    	
 
    
	
 
    	
/s/ David E. Humphreys
    

 

Signature Page to Contribution Agreement

 

 

	
 
    	
PHILIP   J. TRINDER
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
/s/ Philip J. Trinder
    
	
 
    	
 
    	
 
    
	
 
    	
 
    
	
 
    	
KIPP PAA TRUST
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Christine Kipp
    
	
 
    	
 
    	
Name:
    	
Christine   Kipp
    
	
 
    	
 
    	
Title:
    	
Trustee
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
EMG   SELLERS:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
EMG SELLER PARTIES
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
John T. Raymond, as attorney-in-fact for each of   the EMG Seller Parties
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   John T. Raymond
    
	
 
    	
 
    	
Name:
    	
John   T. Raymond
    

 

Signature Page to Contribution Agreement

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