Document:

QuickLinks
 -- Click here to rapidly navigate through this document

Exhibit 10.11  

 
 

FORM
  OF
  AMENDED AND RESTATED EMPLOYMENT AGREEMENT    
    

        AGREEMENT by and between PRO GP CORP. ("BECLP GP"), BREITBURN MANAGEMENT COMPANY, LLC ("Manageco), BreitBurn GP,
LLC (the "MLP GP"), and RANDALL BREITENBACH (the "Executive"), dated as of September    , 2006 (the "Agreement"). 

        WHEREAS, the Executive currently is an employee of BreitBurn Energy Company L.P. (the "Partnership"); 

        WHEREAS, certain assets of the Partnership will be contributed to BreitBurn Energy Partners L.P. (the "MLP") and the employees of the
Partnership, including the Executive, will be transferred to Manageco, all effective upon the effective date of the initial public offering of common units of the MLP (the "IPO Date"); and 

        WHEREAS, in conjunction with the foregoing, the parties wish to amend and restate that certain Employment Agreement between the Executive
and the Partnership dated June 15, 2004 (the "Prior Agreement") to provide for the employment of the Executive in the capacities and on the terms and subject to the conditions set forth in this
Agreement; 

 NOW, THEREFORE, IT IS HEREBY AGREED AS FOLLOWS:  

        1.    Definitions.    All capitalized terms not defined herein shall have the meanings set forth in Appendix A
hereto. 

        2.    Employment Period.    The Employer hereby agrees to employ the Executive, and the Executive hereby agrees to
remain in the employ of the Employer, subject to the terms and conditions of this Agreement during the period (the "Employment Period") beginning on the date of this Agreement and ending on
December 31, 2008; provided, however, that commencing on December 31, 2008 (and each December 31 thereafter), the term of this Agreement shall automatically be extended for one
(1) additional year, unless at least ninety (90) days prior to such date, the Employer or the Executive gives written notice to the other party that it or he, as the case may be, does
not wish to so extend the term of this Agreement. 

        3.    Terms of Employment.    

        (a)    Position and Duties.    

          (i)  During
the Employment Period, (A) the Executive shall serve as Co-Chief Executive Officer of the Employer, with the usual and customary duties of
such office, and shall report to the Board or a nominee designated by the Board, (B) except as limited by applicable law or the Partnership Agreement, and subject to the direction of the Board
or its nominee, the Executive shall have full authority, together with the Employer's other Co-Chief Executive Officer, to operate the day to day business affairs of the Employer and
(C) the Executive shall be appointed to and serve as a member of the Board. 

         (ii)  During
the Employment Period, and excluding any periods of vacation and sick leave to which the Executive is entitled, the Executive agrees to devote such attention and
time during normal business hours to the business and affairs of the Employer as necessary to perform his duties under the Agreement. During the Employment Period it shall not be a violation of this
Agreement for the Executive to (A) carry on other non-competitive business ventures with the consent of the Board or its nominee (not to be unreasonably withheld), (B) serve
on the boards or committees of such ventures or trade associations or civic or charitable organizations, provided, however, the Executive may not serve at the same time on more than two boards or
committees of "for profit" entities unless requested to do so by the 

 

Employer,
which request shall be subject to the prior approval of the Board, (C) deliver lectures, fulfill speaking engagements or teach at educational institutions and (D) manage
personal investments, so long as such activities do not significantly interfere with the performance of the Executive's responsibilities as an employee of the Employer in accordance with this
Agreement. 

        (iii)  The
Executive's services shall be performed at the headquarters of the Employer, and such location shall be in the Greater Los Angeles metropolitan area. 

        (b)    Compensation.    

        (i)    Base Salary.    During the Employment Period, the Executive shall receive a base salary (the "Base Salary") at
an annual rate of $275,000, as the same may be increased thereafter in the discretion of the Board. The Base Salary shall be paid at such intervals as the Employer pays executive salaries generally.
During the Employment Period, the Base Salary shall be reviewed by the Board annually for possible increase. Any increase in the Base Salary shall not serve to limit or reduce any other obligation to
the Executive under this Agreement. The Base Salary shall not be reduced after any such increase, and the term Base Salary as utilized in this Agreement shall refer to the Base Salary as so increased. 

        (ii)    Annual Bonus.    In addition to the Base Salary, the Executive shall be eligible to earn, for each fiscal year
of the Employer ending during the Employment Period, an annual cash bonus of up to one hundred percent (100%) of the Base Salary based upon performance parameters as approved by the Board based upon
the Employer's Short Term Incentive Plan (the "Annual Bonus"). 

        (iii)    Phantom Options.    Effective as of the first (1st) day of each fiscal year of the Employer during the
Employment Period, the Executive shall be granted a Phantom Option (the "Phantom Option") on the terms and conditions set forth in Appendix B hereto. 

        (iv)    Benefit Plans and Policies.    During the Employment Period, the Executive and/or the Executive's eligible
dependents, as the case may be, shall be entitled to participate in and shall receive all benefits, at levels suitable for executives, under the Employer's savings and retirement plans and policies,
welfare plans and policies and fringe benefit plans and policies (with the automobile lease allowance not to exceed one thousand dollars ($1000) per month), which plans and policies shall be
consistent with those maintained by the Employer for similarly situated employees, but in no event shall be inferior to the plans and policies maintained by the Employer as of the date of this
Agreement. 

        (v)    Expenses.    During the Employment Period, the Executive shall be entitled to receive prompt reimbursement for
all reasonable expenses incurred by the Executive on behalf of or in furtherance of the business of the Employer. 

        (vi)    Vacation.    During the Employment Period, the Executive shall be entitled to paid vacation in accordance with
the Employer's vacation policy, but in no event less than five (5) weeks per year. 

        4.    Termination of Employment.    

        (a)    Death or Disability.    The Executive's employment shall terminate automatically upon the Executive's death
during the Employment Period. If the Employer determines in good faith that the Disability of the Executive has occurred during the Employment Period, it may give to the Executive written notice in
accordance with Section 11(b) hereof of its intention to terminate the Executive's employment. In such event, the Executive's employment with the Employer shall terminate effective on the
thirtieth (30th) day after receipt of such notice by the Executive (the 

2

 

"Disability
Effective Date"); provided, that within thirty (30) days after such receipt, the Executive shall not have returned to full-time performance of the Executive's duties. 

        (b)    Cause.    The Employer may terminate the Executive's employment during the Employment Period for Cause or
without Cause. 

        (c)    Good Reason.    The Executive's employment may be terminated by the Executive during the Employment Period for
Good Reason or without Good Reason. 

        (d)    Notice of Termination.    Any termination by the Employer or the Executive shall be communicated by a Notice of
Termination to the other parties hereto given in accordance with Section 11(b) hereof. The failure by the Executive or the Employer to set forth in the Notice of Termination any fact or
circumstance which contributes to a showing of Good Reason or Cause shall not waive any right of the Executive or the Employer, respectively, hereunder or preclude the Executive or the Employer,
respectively, from asserting such fact or circumstance in enforcing the Executive's or the Employer's rights hereunder. 

        5.    Obligations of the Employer upon Termination.    

        (a)    Good Reason; Other Than for Cause, Death or Disability.    If, during the Employment Period, the Employer shall
terminate the Executive's employment without Cause (other than as a consequence of death or Disability, which shall have the effects set forth in Section 5(c) below), or the Executive shall
terminate employment for Good Reason: 

          (i)  The
Executive shall be paid, in a single lump sum payment within thirty (30) days after the Date of Termination, the aggregate amount of (A) the
Executive's earned but unpaid Base Salary and accrued but unpaid vacation pay, if any, through the Date of Termination, any Annual Bonus required to be paid to the Executive pursuant to
Section 3(b)(ii) hereof for any fiscal year that ends on or before the Date of Termination and payment with respect to Phantom Options required to be paid to the Executive pursuant to
Section 3(b)(iii) hereof for any fiscal year that ends on or before the Date of Termination to the extent not previously paid (the "Accrued Obligations"), plus (B) the present
value (using the prime rate of the Employer's banker at such time) of all employee benefits referred to in Section 3(b)(iv) hereof, other than group medical, drug and dental benefits, as
referred to in Section 5(a)(ii) hereof (which would have been available to the Executive for a period of twenty-four (24) months from the Date of Termination), plus
(C) two (2) times the sum of (X) the Executive's Base Salary as in effect immediately prior to the Date of Termination and (Y) the average of his Annual Bonuses for the two
(2) years immediately preceding the Date of Termination; 

         (ii)  For
a period of two (2) years following the Date of Termination, the Executive and/or the Executive's eligible dependents shall continue to be provided with
medical, prescription and dental benefits at least equal to those which would have been provided to them in accordance with the plans, programs, practices and policies if the Executive's employment
had not been terminated. Notwithstanding the foregoing, the Executive shall cease to receive such medical, prescription and dental benefits on the date the Executive is eligible to receive such
benefits under another employer-provided group plan. Such health benefits shall be provided to the Executive in a manner that neither the coverage nor the benefits are includible in the Executive's
taxable gross income. If the Employer is unable to provide such coverage or benefits to the Executive on that basis, then the Employer shall pay the Executive such additional amounts as necessary to
make the Executive "whole" on a net after-tax basis for the receipt of such coverage or benefits; 

        (iii)  The
Executive's Phantom Options shall vest as of the Date of Termination and shall be payable as set forth in Appendix B hereto; and 

3

 

        (iv)  To
the extent not theretofore paid or provided, the Employer shall timely pay or provide to the Executive any accrued benefits and other amounts or benefits required to
be paid or provided or which the Executive is eligible to receive prior to the Date of Termination under any plan, program, policy or practice or contract or agreement of the Employer and its
affiliates according to their terms (such other amounts and benefits shall be hereinafter referred to as the "Other Benefits"). 

        (b)    Cause; Other than for Good Reason.    If the Executive's employment shall be terminated by the Employer for
Cause or by the Executive other than for Good Reason during the Employment Period, the Employer shall pay to the Executive the Accrued Obligations in cash within thirty (30) days after the Date
of Termination and shall provide any Other Benefits which have accrued during the Employment Period. 

        (c)    Death or Disability.    If the Executive's employment is terminated by reason of the Executive's death or
Disability during the Employment Period: 

          (i)  The
Accrued Obligations shall be paid to the Executive's estate or beneficiaries or to the Executive, as applicable, in cash within thirty (30) days of the Date
of Termination; 

         (ii)  At
the time when annual bonuses are paid to other peer executives of the Employer for the fiscal year in which the Date of Termination occurs, the Executive's estate or
beneficiaries or the Executive, as applicable, shall be paid an amount equal to the product of (A) the amount of the Annual Bonus to which the Executive would have been entitled, if the
Executive's employment had not been terminated, and (B) a fraction, the numerator of which shall be the number of days in such fiscal year through the Date of Termination and the denominator of
which shall be 365, to the extent not theretofore paid; 

        (iii)  The
Executive's Phantom Options shall vest as of the Date of Termination and shall be payable as set forth in Appendix B hereto; and 

        (iv)  The
Other Benefits shall be paid or provided to the Executive's estate or beneficiaries or to the Executive, as applicable, on a timely basis; and 

         (v)  Through
the remainder of the Employment Period, or such longer period as may be provided by the terms of the appropriate plan, program, practice or policy, the Executive
and/or the Executive's eligible dependents shall continue to be provided with medical, prescription and dental benefits as if the Executive's employment had not been terminated. Such health benefits
shall be provided to the eligible dependents in a manner that neither the coverage nor the benefits are includible in the eligible dependent's taxable gross income. If the Employer is unable to
provide such coverage or benefits to the eligible dependent on that basis, then the Employer shall pay the eligible dependent such additional amounts as necessary to make the eligible dependent
"whole" on a net after-tax basis for the receipt of such coverage or benefits; 

        6.    Non-exclusivity of Rights.    Nothing in this Agreement shall prevent or limit the Executive's
continuing or future participation in any plan, program, policy or practice provided by the Employer (other than policies relating to severance payments or obligations on termination of employment for
any reason) and for which the Executive may qualify, nor shall anything herein limit or otherwise affect such rights as the Executive may have under any contract or agreement with the Employer.
Amounts which are vested benefits or which the Executive is otherwise entitled to receive under any plan, policy, practice or program of or any contract or agreement with the Employer at or subsequent
to the Date of Termination shall be payable in accordance with such plan, policy, practice or program or contract or agreement except as explicitly modified by this Agreement. 

4

 

        7.    Full Settlement.    The Employer's obligation to make the payments provided for in this Agreement and otherwise
to perform its obligations hereunder shall not be affected by any set-off, counterclaim, recoupment, defense or other claim, right or action which the Employer may have against the
Executive or others. In no event shall the Executive be obligated to seek other employment or take any other action by way of mitigation of the amounts payable to the Executive under any of the
provisions of this Agreement, and, except as provided in Section 5(a)(ii) hereof, such amounts shall not be reduced whether or not the Executive obtains other employment. 

        8.    Executive's Covenants.    

        (a)   The
Executive shall hold in a fiduciary capacity for the benefit of the Employer all secret or confidential information, knowledge or data relating to the Employer, and
its respective businesses, which shall have been obtained by the Executive during the Executive's employment by the Employer and which shall not be or become public knowledge (other than by acts by
the Executive or representatives of the Executive in violation of this Agreement). After termination of the Executive's employment with the Employer, the Executive shall not, directly or indirectly,
without the prior written consent of the Employer or as may otherwise be required by law or legal process, use for his own benefit such information, knowledge or data, or communicate or divulge any
such information, knowledge or data to anyone other than the Employer and those designated by it; provided, that if the Executive receives actual notice that the Executive is or may be required by law
or legal process to communicate or divulge any such information, knowledge or data, the Executive shall promptly so notify the Employer. 

        (b)   While
employed by the Employer and for a period of two (2) years following the Date of Termination, regardless of the reason for the termination, the Executive
shall not, without the prior consent of the Employer (which consent shall not be unreasonably withheld), directly or indirectly (i) solicit, induce, or encourage any employee of the Employer
who is employed at any time within six (6) months of the time of termination to terminate his or her employment with the Employer or (ii) hire any such employee within six
(6) months after that employee's termination of employment with the Employer. 

        (c)   While
employed by the Employer and for a period of two (2) years following the Date of Termination, regardless of the reason for the termination, the Executive
shall not, without the prior consent of the Employer, be employed by, provide consultative service to (with or without pay), own, manage, operate, join, control, participate in, or be connected with
(as a stockholder, partner, or otherwise), any business, individual, partner, firm, corporation, or other entity that is a Competitor of the Employer; provided, however, that the "beneficial
ownership" by the Executive, either individually or as a member of a "group," as such terms are used in Rule 13d of the General Rules and Regulations under the Securities Exchange Act of 1934,
as amended, of not more than two percent (2%) of the voting stock of any publicly held corporation shall not be a violation of this Agreement. 

        (d)   In
no event shall an asserted violation of the provisions of this Section 8 constitute a basis for deferring or withholding any amounts otherwise payable to the
Executive under this Agreement. However, in recognition of the facts that irreparable injury will result to the Employer in the event of a breach by the Executive of his obligations under Sections
8(a), 8(b) and 8(c) above, that monetary damages for such breach would not be readily calculable, and that the Employer would not have an adequate remedy at law therefor, the Executive acknowledges,
consents and agrees that in the event of such breach, or the threat thereof, the Employer shall be entitled, in addition to any other legal remedies and damages available, to specific performance
thereof and to temporary and permanent injunctive relief (without the necessity of posting a bond) to restrain the violation or threatened violation of such obligations by the Executive. 

5

 

        (e)   Upon
the termination of Executive's employment with the Employer for any reason, Executive shall immediately return and deliver to the Employer any and all papers,
books, records, documents, memoranda and manuals, e-mail, electronic or magnetic recordings or data, including all copies thereof, belonging to the Employer or relating to its business, in
Executive's possession, whether prepared by Executive or others. If at any time after the Employment Period, Executive determines that he has any secret or confidential information in his possession
or control, Executive shall immediately return to the Employer all such information, including all copies and portions thereof. 

        9.    Successors.    

        (a)   This
Agreement is personal to the Executive and without the prior written consent of the Employer shall not be assignable by the Executive otherwise than by will or the
laws of descent and distribution. This Agreement shall inure to the benefit of and be enforceable by the Executive's legal representatives. 

        (b)   This
Agreement shall inure to the benefit of and be binding upon the Employer and its successors and assigns. 

        (c)   The
Employer shall require any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the business and/or
assets of the Employer to assume expressly and agree to perform this Agreement in the same manner and to the same extent that the Employer would be required to perform it if no such succession had
taken place. As used in this Agreement, "Employer" shall mean the Employer as defined in this Agreement and any successor to its business and/or assets as aforesaid which assumes and agrees to perform
this Agreement by operation of law or otherwise. 

        10.    Indemnification and Directors' and Officers' Insurance.    

        (a)   During
the Employment Period and thereafter, the Employer shall indemnify the Executive to the fullest extent permitted under law from and against any expenses
(including but not limited to attorneys' fees, expenses of investigation and preparation and fees and disbursements of the Executive's accountants or other experts), judgments, fines, penalties and
amounts paid in settlement actually and reasonably incurred by the Executive in connection with any proceeding in which the Executive was or is made party or was or is involved (for example, as a
witness) by reason of the fact the Executive was or is employed by the Employer. Such indemnification shall continue as to the Executive during the Employment Period and for at least six
(6) years from the Date of Termination with respect to acts or omissions which occurred prior to his cessation of employment with the Employer and shall inure to the benefit of the Executive's
heirs, executors and administrators. The Employer shall advance to the Executive all costs and expenses incurred by him in connection with any proceeding covered by this provision within twenty
(20) calendar days after receipt by the Employer of a written request for such advance. Such request shall include an undertaking by the Executive to repay the amount of such advance if it
shall ultimately be determined that he is not entitled to be indemnified against such costs and expenses. 

        (b)   The
Employer agrees to maintain directors' and officers' liability insurance policies covering the Executive which shall provide him with coverage that is at least as
favorable to the Executive as the coverage that Provident provides to its directors and officers from time to time. Such insurance coverage shall continue as to the Executive even if he has ceased to
be a director, member, employee or agent of the Employer with respect to acts or omissions which occurred prior to his cessation of employment with the Employer. Insurance contemplated under this
Section 10(b) shall inure to the benefit of the Executive's heirs, executors and administrators. 

6

 

        11.    Miscellaneous.    

        (a)   This
Agreement shall be governed by and construed in accordance with the laws of the State of California, without reference to principles of conflict of laws. The
captions of this Agreement are not part of the provisions hereof and shall have no force or effect. This Agreement may not be amended or modified otherwise than by a written agreement executed by the
parties hereto or their respective successors and legal representatives. 

        (b)   All
notices and other communications hereunder shall be in writing and shall be given by hand delivery to the other party or by registered or certified mail, return
receipt requested, postage prepaid, addressed as follows: 

        If to the Executive:    at the Executive's most recent address on the records of the Employer; and 

        If to the Employer:    

	 	 	Before the IPO Date:	 	 	 	After the IPO Date:	 	 
	

 	
 	

BreitBurn Energy Company L.P.

Attn.: Randall Findlay

515 South Flower Street, Suite 4800

Los Angeles, CA 90071	
 	

or	
 	

BreitBurn Management Company LLC

Attn.: Randall Findlay

515 South Flower Street, Suite 4800

Los Angeles, CA 90071	
 	

 

        with
a copy to: 

	 	 	Before the IPO Date:	 	 	 	After the IPO Date:	 	 
	

 	
 	

BreitBurn Energy Company L.P.

c/o Provident Energy Trust

Suite 700

112-4th Avenue SW

Calgary, AB T20 OH3

Attn: Randall Findlay

Thomas Buchanan	
 	

or	
 	

BreitBurn Management Company LLC

c/o Provident Energy Trust

Suite 700

112-4th Avenue SW

Calgary, AB T20 OH3

Attn: Randall Findlay

Thomas Buchanan	
 	

 
	

 	
 	

Macleod Dixon LLP

Attn.: Thomas Hirst, Q.C.

3700 Canterra Tower

400 3rd Avenue SW

Calgary, AB T2P 4H2	
 	

or	
 	

Macleod Dixon LLP

Attn.: Thomas Hirst, Q.C.

3700 Canterra Tower

400 3rd Avenue SW

Calgary, AB T2P 4H2	
 	

 

or
to such other address as either party shall have furnished to the other in writing in accordance herewith. Notice and communications shall be effective when actually received by the addressee. 

        (c)   The
invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement. 

        (d)   The
Employer may withhold from any amounts payable under this Agreement such federal, state, local or foreign taxes as shall be required to be withheld pursuant to any
applicable law or regulation. 

        (e)   The
Executive's or the Employer's failure to insist upon strict compliance with any provision of this Agreement or the failure to assert any right the Executive or the
Employer may have hereunder, including, without limitation, the right of the Executive to terminate employment for Good Reason pursuant to Section 4(c) hereof, shall not be deemed to be a
waiver of such provision or right or any other provision or right of this Agreement. 

7

 

        (f)    This
Agreement, including the Appendices hereto, constitutes the entire agreement of the parties with respect to the subject matter hereof and is intended to supersede
and replace the Prior Agreement and any other prior employment or severance agreements or arrangements between the Executive, on the one hand, and BECLP GP, the Partnership, the MLP GP and Manageco,
on the other. 

        (g)   The
Executive represents that he has not, either individually or as a representative or member of a class, filed or caused to be filed any complaints, charges or
lawsuits against the Partnership or the Employer with any governmental agency, court, arbitrator or mediator with respect to his employment by the Partnership or the Employer and releases any such
claims he may have against the Partnership or the Employer as of the date of this Agreement. 

        (h)   Notwithstanding
anything in this Agreement to the contrary, it is intended that all items of compensation provided for under this Agreement, including Attachment B,
shall be paid to the Executive within the time period required to qualify as a "short-term deferral" that is exempt from the additional tax under Section 409A of the Internal
Revenue Code ("Code"); provided, however, if the Executive is a "specified employee," as defined in Code Section 409A with respect to the Employer or an affiliate, payments pursuant to this
Agreement shall be paid on the date which is six months after the date of the Executive's "separation from service," as defined in Code Section 409A and the regulations thereunder, or, if
earlier, the date of the Executive's death in a lump sum. In the event that any payment hereunder would subject the Executive to the additional tax provided under Section 409A, the parties
shall take all reasonable actions, including amendments hereto, for such payment either to comply with the requirements of Section 409A or to be exempt therefrom. If the Executive, nonetheless,
becomes subject to the additional tax under Section 409A with respect to any payment hereunder, the Employer shall pay the Executive an additional lump sum cash amount such that after such
additional lump sum the Executive is in the same net after-tax position he would have been in had no payments under this Agreement subjected him to the additional tax under
Section 409A. 

        (i)    During
the Employment Period beginning on and following the IPO Date, the parties agree that the Executive shall serve as the Co-Chief Executive Officer of
BECLP GP, the MLP GP and Manageco and also as a member of the Boards of Directors of each of such entities. The parties intend for the provisions of this Agreement to be construed as necessary to
effectuate this intent, including when appropriate as if it were a separate agreement with each Employer. However, nothing herein shall operate or be construed as providing the Executive with a
duplication of compensation from the
Employers. The Boards of Directors of BECLP GP, the MLP GP and Manageco shall use their best efforts to resolve any ambiguities or conflicts as to their respective obligations to the Executive under
this Agreement and the cost of the Executive's compensation (other than the Phantom Options) and benefits shall be shared by them on the basis of his estimated time devoted to the business of each or
on such other basis as the Employers may mutually agree. 

        (j)    This
Agreement may be executed simultaneously in one or more counterparts, each of which shall be deemed an original but which together shall constitute one and the same
instrument. 

[Signature
page follows] 

8

   
        IN WITNESS WHEREOF, the parties have executed this Agreement, effective for all purposes as of the day and year first above written. 

	 	 	Executive
	

 	
 	

 Randall Breitenbach
	

 	
 	
Pro GP Corp.
	

 	
 	

By:	
 	

 
	 	 	 	 	
 Name:

Title:
	

 	
 	
BreitBurn Management Company, LLC
	

 	
 	

By:	
 	

[                        ], its
	 	 	 	 	

	

 	
 	

By:	
 	

 
	 	 	 	 	
 Name:

Title:
	

 	
 	
BreitBurn GP, LLC
	 	 	By:	 	[                        ],
	 	 	 	 	

	

 	
 	

By:	
 	

 
	 	 	 	 	
 Name:

Title:

9

   APPENDIX A  

        "Board" means (i) prior to the IPO Date, the Board of Directors of Pro GP Corp. and (ii) on or after the IPO Date, the Board of Directors of Pro GP
Corp., BreitBurn GP, LLC or BreitBurn Management Company, LLC, as the context requires. 

        "Cause"
means the following: 

          (i)  the
willful and continued failure of the Executive to perform substantially the Executive's duties with the Employer (as described in Section 3(a) hereof) (other
than any such failure resulting from incapacity due to physical or mental illness), after a written demand for substantial performance is delivered to the Executive by the Board which specifically
identifies the manner in which the Board believes that the Executive has not substantially performed the Executive's duties and the Executive is given a reasonable opportunity of not more than ten
(10) business days to cure any such failure to substantially perform; 

         (ii)  the
willful engaging by the Executive in illegal conduct or gross misconduct, in each case which is materially and demonstrably injurious to the Employer; or 

        (iii)  (A)
any act of fraud, or material embezzlement or material theft by the Executive, in each case, in connection with the Executive's duties hereunder or in the course
of the Executive's employment hereunder or (B) the Executive's admission in any court, or conviction, or plea of nolo contendere, of a felony involving moral turpitude, fraud, or material
embezzlement, material theft or material misrepresentation, in each case, against or affecting the Employer. 

        For
purposes of this provision, no act or failure to act, on the part of (he Executive, shall be considered "willful" unless it is done, or omitted to be done, by the Executive in bad
faith or without reasonable belief that the Executive's action or omission was in the best interests of the Employer. Any act, or failure to act, based upon authority given pursuant to a resolution
duly adopted by the Board or based upon the advice of counsel for the Employer shall be conclusively presumed to be done, or omitted to be done, by the Executive in good faith and in the best
interests of the Employer. The cessation of employment of the Executive shall not be deemed to be for Cause unless and until there shall have been delivered to the Executive a copy of a resolution
duly adopted by the affirmative vote of the Board at a meeting of the Board called and held for such purpose (after reasonable notice is
provided to the Executive and the Executive is given an opportunity, together with counsel for the Executive, to be heard before the Board), finding that, in the good faith opinion of the Board, the
Executive is guilty of the conduct described in clauses (i), (ii) and (iii) above, and specifying the particulars thereof in detail; provided, that if the Executive is a member of the
Board, the Executive shall not vote on such resolution nor shall the Executive be counted. 

        "Change
in Control" means any of the following: 

          (i)  with
respect to Provident Energy Trust ("Provident"), the acquisition and exercise, or either of them, of de facto control or the acquisition of the power to exercise
de facto control over twenty percent (20%) of the issued and outstanding securities which carry the right to vote for directors of Provident or Provident Energy Ltd. by any person, firm or
corporation or group which did not, as of the date hereof, exercise or have power to exercise such control over Provident or Provident Energy Ltd.; 

         (ii)  with
respect to the Employer, a transaction which results in (a) the sale or other disposition of all or substantially all of the assets of the Employer or
(b) persons who are not stockholders (or members) of the Employer before the transaction acquiring stock (or membership interests) of the Employer holding more than fifty percent (50%) of the
voting power of the Employer's stock (or membership interests) in the Employer; or 

A-1

 

        (iii)  with
respect to the MLP or the Partnership, (a) the sale or other disposition in one or more transactions of all or substantially all of the assets of either
the MLP or the Partnership, but excluding (i) any sale or transaction that is between the MLP and the Partnership and (ii) any sale or transaction by the Partnership that relates to
Subject Assets (as defined in the Omnibus Agreement) that were offered to the MLP in accordance with the right of first offer provisions of Article III of the Omnibus Agreement but were not
purchased by the MLP, or (b) BreitBurn GP, LLC or Pro GP Corp. ceasing to be the general partner of the MLP or the Partnership, respectively. 

        "Competitor"
means any person, trade or business which is engaged in the business of producing oil and/or gas on properties on which the Partnership or, after the IPO Date, the MLP or
the Partnership, produces oil and/or gas or on properties within two miles of the Partnership's or the MLP's properties or which, as of the Date of Termination, the Partnership or, after the IPO Date,
the MLP or the Partnership, has identified and is then still actively evaluating as step-out or development opportunities. 

        "Date
of Termination" means (i) if the Executive's employment is terminated by the Employer for Cause, or by the Executive for Good Reason, the date of receipt of the Notice of
Termination or any
later date specified therein (which date shall not be more than thirty (30) days after the giving of such notice), as the case may be, (ii) if the Executive's employment is terminated by
the Employer other than for Cause or Disability, the date on which the Employer notifies the Executive of such termination and (iii) if the Executive's employment is terminated by reason of
death or Disability, the date of the death of the Executive or the Disability Effective Date, as the case may be. 

        "Disability"
means the absence of the Executive from the Executive's duties with the Employer on a full-time basis for ninety (90) consecutive days or on a total of
180 days in any twelve (12) month period, in either case as a result of incapacity due to mental or physical illness which is determined to be total and permanent by a physician selected
by the Employer or its insurers and acceptable to the Executive or the Executive's legal representative (such acceptance not to be unreasonably withheld). 

        "Employer"
means (i) prior to the IPO Date, Pro GP Corp. and (ii) on and after the IPO Date, Pro GP Corp., the MLP GP or Manageco, as the context requires. 

        "Good
Reason" means, in the absence of a written consent of the Executive, the following: 

          (i)  the
assignment to the Executive of any material duties inconsistent in any respect with the Executive's title of Co-Chief Executive Officer and reporting
requirements, position (including status and offices), authority, material duties or responsibilities as contemplated by Section 3(a) hereof, or any other action by the Employer which results
in a diminution in such title, reporting requirements, position, authority, material duties or responsibilities, excluding for this purpose an isolated, insubstantial and inadvertent action not taken
in bad faith and which is remedied by the Employer promptly after receipt of notice thereof given by the Executive; 

         (ii)  any
material breach by the Employer of any material provisions of this Agreement; 

        (iii)  the
Employer's requiring the Executive to be based at any office or location other than as provided in Section 3(a)(iii) hereof; 

        (iv)  any
purported termination by the Employer of the Executive's employment otherwise than as expressly permitted by this Agreement; 

         (v)  any
failure by the Employer to comply with and satisfy Section 9(c) hereof; 

        (vi)  any
failure to elect the Executive to the Board or the removal of the Executive from the Board for any reason other than Cause, death, his voluntary resignation, or
Disability; 

       (vii)  a
Change in Control, as defined above; or 

A-2

 

      (viii)  Provident's
direct or indirect acquisition of any interest in, or operation of, any upstream oil and gas producing properties or assets located in the United States
other than through the Partnership or, on and after the IPO Date, other than through the MLP or the Partnership, unless (i) prior to such acquisition the Executive consents in writing to such
acquisition or (ii) such acquisition includes midstream or downstream assets and the fair market value of any upstream oil and gas producing properties or assets located in the United States
(as determined in good faith by Provident) constitutes less than the fair market value of the midstream or downstream assets (as determined in good faith by the Provident). 

        "Notice
of Termination" means a written notice which (i) indicates the specific termination provision in this Agreement relied upon, (ii) to the extent applicable, sets
forth in reasonable detail the facts and circumstances claimed to provide a basis for termination of the Executive's employment under the provision so indicated and (iii) if the Date of
Termination is other than the date of receipt of such notice, specifies the termination date (which date shall be not more than thirty (30) days after the giving of such notice). 

        "Partnership
Agreement" means the Partnership Agreement of BreitBurn Energy Company, L.P. and, on and after the IPO Date, the LLC Agreement of Manageco, the Partnership Agreement of the
MLP or the Partnership Agreement of the Partnership, as the context requires. 

        "Omnibus
Agreement" means the Omnibus Agreement effective as of                        , 2006, by and among Provident, Pro GP Corp, the
Partnership, the MLP GP and the MLP. 

A-3

   APPENDIX B  

 Phantom Options  

A.    Pre-IPO Date Grants.    

        1.     Pursuant
to Section 3(b)(iii) of the Employment Agreement by and between Pro GP Corp. (the "BECLP GP"), BreitBurn Management Company, LLC (the "Manageco"),
BreitBurn GP, LLC (the "MLP GP") and Randall Breitenbach (the "Executive"), dated as of [                        ], 2006 (the
"Agreement"), the Partnership shall grant Phantom Options
to the Executive on the following terms and conditions. All capitalized terms not defined herein shall have the meanings set forth in the Agreement. 

        2.     Effective
as of the first (1st) day of each fiscal year of the Partnership (currently the calendar year) after the date of the Agreement and during the Employment Period
(the "Grant Date"), BECLP GP shall cause the Partnership to grant a Phantom Option to the Executive with respect to one Phantom Unit, as defined below. 

        3.     A
"Phantom Unit" shall mean a hypothetical, nonexistent unit of Partnership Interests (as defined in the Partnership Agreement) equal to the lesser of (a) a
Percentage Interest (as defined in the Partnership Agreement) equal to one and one-half percent (1.5%) of the total outstanding Partnership Interests as of the Grant Date or (b) a
Percentage Interest that has a value equal to fifteen million dollars ($15,000,000) as of the Grant Date determined on the basis of the Partnership Valuation (defined in Section 6.6.1 of the
Partnership Agreement) for the year prior to the Grant Date for each grant. 

        4.     Each
Phantom Option shall represent the right to a receive a payment (the "Phantom Option Payment") equal to the difference between (a) sum of (i) the Value
of the Phantom Unit (as defined below) as of the Determination Date (as defined below) and (ii) the amount of distributions of cash or property (valued by the Board at fair market value and in
good faith) made by the Partnership to its partners during the period (the "Option Period") beginning on the Grant Date and ending on the Determination Date that the Executive would have been entitled
to receive during the Option Period if he had actually owned the Partnership Interests represented by the Phantom Unit during the entire Option Period, and (b) one hundred and eight percent
(108%) of the Value of the Phantom Unit as of the Grant Date. In no event shall the amount of a Phantom Option Payment be a negative number or in any way affect the amount of the Executive's
compensation under the Agreement or any subsequent Phantom Option granted hereunder. 

        5.     The
"Value of the Phantom Unit" as of any date shall be equal to the value, determined on the basis of the Partnership Valuation as of that date, of the Partnership
Interests underlying the Phantom Unit as set forth in paragraph 3 above. 

        6.     The
"Determination Date" with respect to a Phantom Option shall be the last day of the Partnership's fiscal year (currently, December 31), except in the event of
the termination of the Executive's employment with the Employer prior to the end of the Partnership's fiscal year, in which case the Determination Date shall be the Date of Termination. 

        7.     The
Phantom Option Payment shall be made in cash, unless the Board of Directors of Pro GP Corp. determines that it should be paid in freely tradable publicly held trust
units of Provident. The Phantom Option Payment shall be made to the Executive, or to his beneficiaries, heirs or estate in the event of his death, as soon as practicable, but in no event more than
sixty (60) days after the Determination Date. 

        8.     Subject
to Section 9 below, the Executive shall acquire a vested and non-forfeitable interest in the Phantom Option as of the last day of the
Partnership's fiscal year if the Executive is employed by the Employer on such day. 

B-1

 

        9.     In
the event of the termination of the Executive's employment by the Employer without Cause, by the Executive for Good Reason, or by reason of the Executive's death or
Disability, (a) the Executive shall acquire a vested and non-forfeitable interest in the Phantom Option as of the Date of Termination, (b) the Option Period shall end on the
Date of Termination and (c) the Phantom Option Payment shall be made as soon as practicable, but in no event more than sixty (60) days after the Date of Termination. In the event of the
termination of the Executive's employment by the Employer for Cause or by the Executive without Good Reason, the Executive shall forfeit the Phantom Option as of the Date of Termination and the
Employer shall have no further obligations to the Executive with respect to such Phantom Option. 

        10.   Upon
the Employer's payment of the Phantom Option Payment with respect to a Phantom Option, such Phantom Option shall automatically terminate and be of no further force
or effect. 

        11.   The
Employer shall withhold all applicable income taxes and employment taxes from the Phantom Option Payment as may be required by law. 

        12.   The
Phantom Option, or any interest in it, shall not be assignable by the Executive and shall not be subject to attachment, lien, levy or other creditors' rights under
state or Federal law. The Phantom Option Payments shall be payable by the Employer from its general assets or pursuant to such other means as the Employer deems appropriate, and the Executive shall
not be entitled to look to any source for payment of such benefits other than the general assets of the Employer. 

        13.   Effective
on the IPO Date, the Executive's outstanding Phantom Option for the 2006 fiscal year of the Employer shall be converted automatically into the following three
separate Phantom Option awards: (1) a Phantom Unit representing a 1.5% Partnership Interest with respect to the operations for the 2006 fiscal year attributable to the properties of the
Partnership not transferred to BreitBurn Energy Partners L.P. (the "Retained Business") (the "First Option"), (2) a Phantom Unit representing a 1.5% Partnership Interest with respect to the
operations attributable to the properties of the Partnership transferred to BreitBurn Energy Partners L.P. (the "Transferred Business") (the "Second Option") for the 2006 fiscal period ending on the
IPO Date, and (3) a Phantom Unit representing a 1.5% Partnership Interest in the MLP for the period beginning on the IPO Date and ending on December 31, 2006. The value of the First
Option shall be determined as set forth in paragraph 4 above on the basis of the Partnership Valuation for 2006 for the Retained Business; the value of the Second Option shall be determined as
set forth in paragraph 4 above on the basis of the Partnership Valuation for the Transferred Business for the period beginning January 1, 2006 and ending on the IPO Date, based on the
January 1, 2006 Partnership Valuation for the Transferred Business and the IPO offering price for a MLP unit; and the value of the Third Option shall be determined as set forth in
paragraph 4 above based on the value of a MLP unit for the period beginning on the IPO Date and ending December 31, 2006. 

        Except
for these changes, the Phantom Options shall continue with the same terms as before the IPO except that the Phantom Options may be further modified as necessary or helpful to
effectuate the intent of the parties to reflect the conversion of the Phantom Option into three separate Phantom Options as described above on the IPO Date. 

B.    Post-IPO Date Grants.    

        1.     Pursuant
to Section 3(b)(iii) of the Agreement, the Employer shall grant or cause the grant of Phantom Options with respect to a Partnership Phantom Unit
and a MLP Phantom Unit (as defined below) to the Executive on the following terms and conditions. 

        2.     Effective
as of the first (1st) day of each fiscal year of the Employer (currently the calendar year) after the IPO Date and during the Employment Period (the "Grant
Date"), (i) Pro GP Corp. shall grant or cause the grant to the Executive of one Partnership Phantom Unit and (ii) Manageco shall grant or cause the grant to the Executive of one MLP
Phantom Unit, as such terms are defined below. 

B-2

 

        3.     (i) A
"Partnership Phantom Unit" shall mean a hypothetical, nonexistent unit of Partnership Interests (as defined in the Partnership Agreement) equal to the lesser
of (a) a Percentage Interest (as defined in the Partnership Agreement) equal to one and one-half percent (1.5%) of the total outstanding Partnership Interests as of the Grant Date
or (b) a Percentage Interest that has a value equal to the Applicable Dollar Amount (as defined below) as of the Grant Date, determined on the basis of the Partnership Valuation (defined in
Section 6.6.1 of the Partnership Agreement) for the Grant Date for each grant; 

        (ii)   A
"MLP Phantom Unit" shall mean a hypothetical, nonexistent unit of MLP Partnership Interests (as defined in the MLP Partnership Agreement) equal to the lesser of
(a) a Percentage Interest (as defined in the MLP Partnership Agreement) equal to one and one-half percent (1.5%) of the total outstanding MLP Partnership Interests as of the Grant
Date or (b) a Percentage Interest that has a value equal to the Applicable Dollar Amount as of the Grant Date, determined on the basis of the value of the MLP Units on the Grant Date for each
grant. 

        (iii)  If
the sum of the Partnership Valuation and the MLP value on the Grant Date (the "Combined Value") exceeds $1 billion, then the Applicable Dollar Amounts with
respect to a Partnership Phantom Unit and a MLP Phantom Unit shall be determined as follows: (i) the Partnership Applicable Dollar Amount shall be equal to the product of $15 million and
the Partnership fraction, where the numerator is the Partnership Valuation and the denominator is the Combined Value, and (ii) the MLP Applicable Dollar Amount shall be equal to the product of
$15 million and the MLP fraction, where the numerator is the MLP value and the denominator is the Combined Value. If the Combined Value on the Grant Date does not exceed $1 billion, then
the Applicable Dollar Amount for the Partnership and the MLP shall be equal to the value of the one and one-half percent (1.5%) Percentage Interest applicable for the Partnership and the
MLP, respectively, on such Grant Date. 

        As
used herein, the Partnership Agreement and the MLP Partnership Agreement shall mean the partnership agreement for the Partnership and the MLP, respectively. A "Phantom Unit" shall
mean either a Partnership Phantom Unit, a MLP Phantom Unit or both, as the context requires. 

        4.     Subject
to paragraph 6 below, each Phantom Unit shall represent the right to a receive a payment (the "Phantom Unit Payment") equal to the difference between
(a) the sum of (i) the Value of the Phantom Unit (as defined below) as of the Determination Date (as defined below) and (ii) the amount of distributions of cash or property (with
respect to a property distribution, valued by the Board of Directors of the general partner of the Partnership or the MLP GP at fair market value and in good faith) made by the Partnership or the MLP,
as the case may be, to its partners during the period (the "Option Period") beginning on the Grant Date and ending on the Determination Date that the Executive would have been entitled to receive
during the Option Period if he had actually owned the Partnership Interests represented by the Phantom Unit during the entire Option Period, and (b) one hundred and eight percent (108%) of the
Value of the Phantom Unit as of the Grant Date. Except as provided in paragraph 6 below with respect to the MLP carry over amount, in no event shall the amount of a Phantom Unit Payment be a
negative number or in any way affect the amount of the Executive's compensation under the Agreement or any subsequent Phantom Option granted hereunder. 

        5.     The
"Value of the Phantom Unit" as of any date (i) with respect to a Partnership Phantom Unit, shall be equal to the value, determined on the basis of the
Partnership Valuation as of that date (but using the market value of any MLP units owned by the Partnership), of the Partnership Interests underlying the Phantom Unit as set forth in
paragraph 3 above, and (ii) with respect to a MLP Phantom Unit, shall be equal to the value of the Partnership Interests underlying the Phantom Unit as set forth in paragraph 3
above based upon the closing sales price of a MLP Unit on the Determination Date as reported by such reporting service as the Board may choose. 

        6.     If
for any year a MLP Phantom Unit Payment is made pursuant to paragraph 4 that is greater than the payment that would have been made based on the combined results
for the Partnership 

B-3

 

Phantom
Unit and a MLP Phantom Unit with respect to such year, if the Phantom Unit Payment were instead determined on a combined basis rather than on a separate basis for the Partnership and the MLP,
then the amount of the MLP Phantom Unit Payment paid for such year in excess of what would have been paid for such year if the payment were determined on a combined basis shall be carried forward to
subsequent years and shall be applied as an offset against any Partnership Phantom Unit Payment in any such subsequent years that is otherwise payable, until such MLP carry forward amount has been
fully used as an offset to any such Partnership Phantom Unit Payments. No Partnership Phantom Unit Payment shall be made unless there is no MLP carry forward amount for such year or such MLP carry
forward amount is first fully applied as an offset in such year. 

        7.     The
"Determination Date" with respect to a Phantom Option shall be the last day of the Partnership's or the MLP's (as the case may be) fiscal year (currently,
December 31), except in the event of the termination of the Executive's employment with the Employer prior to the end of the Partnership's or the MLP's (as the case may be) fiscal year, in
which case the Determination Date shall be the Date of Termination. 

        8.     The
Phantom Unit Payment shall be made in cash; however, with respect to a MLP Phantom Unit Payment the Executive may elect to receive such MLP Phantom Unit Payment all
in freely tradeable MLP Units, in cash or in any combination thereof, and with respect to a Partnership Phantom Unit Payment the Executive may elect to receive such Partnership Phantom Unit Payment
all in "restricted" phantom Partnership Units (notional units representing a corresponding partnership interest in the Partnership) with such restrictions concerning payments and transfers as may be
applicable to similar phantom awards under other long-term incentive plans of the Employer, in cash or in any combination thereof. The Phantom Unit Payment shall be made to the Executive,
or to his beneficiaries, heirs or estate in the event of his death, as soon as practicable, but in no event more than sixty (60) days after the Determination Date. 

        9.     Subject
to Section 10 below, the Executive shall acquire a vested and non-forfeitable interest in the Phantom Option as of the last day of the
Partnership's or the MLP's (as the case may be) fiscal year if the Executive is employed by the Employer on such day. 

        10.   In
the event of the termination of the Executive's employment by the Employer without Cause, by the Executive for Good Reason, or by reason of the Executive's death or
Disability, (a) the Executive shall acquire a vested and non-forfeitable interest in the Phantom Option as of the Date of Termination, (b) the Option Period shall end on the
Date of Termination and (c) the Phantom Unit Payment shall be made as soon as practicable, but in no event more than sixty (60) days after the Date of Termination. In the event of the
termination of the Executive's employment with the Employer by the Employer for Cause or by the Executive without Good Reason, the Executive shall forfeit the Phantom Option as of the Date of
Termination and the Employer, the Partnership and the MLP shall have no further obligations to the Executive with respect to such Phantom Option. 

        11.   Upon
payment of the Phantom Unit Payment with respect to a Phantom Option, such Phantom Option shall automatically terminate and be of no further force or effect. 

        12.   The
Employer shall withhold or shall cause to be withheld all applicable income taxes and employment taxes from the Phantom Unit Payment as may be required by law. 

        13.   The
Phantom Option, or any interest in it, shall not be assignable by the Executive and shall not be subject to attachment, lien, levy or other creditors' rights under
state or Federal law. The Phantom Unit Payments shall be payable from the general assets of the Employer, the MLP or the Partnership, as the case may be, or pursuant to such other means as they deem
appropriate, and the Executive shall not be entitled to look to any source for payment of such benefits other than the general assets of the Employer, the MLP or the Partnership, as the case may be. 

B-4

QuickLinks

FORM OF AMENDED AND RESTATED EMPLOYMENT AGREEMENTExhibit 10.12  

EMPLOYMENT AGREEMENT  

        AGREEMENT by and between BREITBURN ENERGY COMPANY L.P., a Delaware limited partnership (together with its successors and assigns, the
"Partnership"), and James G. Jackson (the "Executive"), dated as of July 7th, 2006 (the
"Agreement"). 

        WHEREAS,
the Executive and the Partnership wish to enter into an employment relationship; and 

        WHEREAS,
the Partnership and the Executive wish to enter into an Employment Agreement, in the capacities and on the terms set forth in this Agreement. 

        NOW,
THEREFORE, IT IS HEREBY AGREED AS FOLLOWS: 

        1.    Definitions.    All capitalized terms not defined herein shall have the meanings set forth in  Appendix A hereto.

        2.    Employment Period.    The Partnership hereby agrees to employ the Executive, and the Executive hereby agrees to
accept such employment, subject to the terms and conditions of this Agreement during the period (the "Employment Period") beginning on August 30,
2006 or such earlier date as the Executive commences employment with the Partnership (the "Commencement Date") and ending on the third (3rd) anniversary
thereof; provided, however, that commencing on the third (3rd) anniversary of the Commencement Date (and each anniversary of the Commencement Date
thereafter), the term of this Agreement shall automatically be extended for one (1) additional year, unless at least ninety (90) days prior to such date, the Partnership or the Executive
gives written notice to the other party that it or he, as the case may be, does not wish to so extend the term of this Agreement. Notwithstanding the foregoing, the Employment Period shall end on the
Date of Termination. 

        3.    Terms of Employment.    (a) Position and
Duties.    (i) During the Employment Period, the Executive shall be employed as the Chief Financial Officer of the Partnership, with the usual and customary
duties of such office in entities of a similar nature and size. The Executive shall also serve as the Chief Financial Officer of BreitBurn Energy Partners, L.P., a Delaware limited partnership
(together with its successors and assigns, "BreitBurn Partners"), and BreitBurn GP, LLC, a Delaware limited liability company (together with its
successors and assigns, the "General Partner"), and shall have such other duties, responsibilities and authority as the Board may specify from time to
time. In no event will the Executive be entitled to any additional compensation (from the Partnership or otherwise) for services rendered to the General Partner, BreitBurn Partners or any other
affiliate of the Partnership, including, without limitation, BreitBurn Management Company LLC, a Delaware limited liability company (together with its successors and assigns, the
"BreitBurn Management"). The Executive will be the senior most executive officer in charge of financial operations of the Partnership, the General
Partner, BreitBurn Partners and any other related entity for which the Executive shall be assigned similar duties and responsibilities consistent with his position as the senior most financial officer
in such entities (each a "BreitBurn Entity" and, collectively, the "BreitBurn Entities"). The Executive
shall report directly to the Co-Chief Executive Officers of the Partnership (the "Co-CEOs"). 

         (ii)  During
the Employment Period, and excluding any periods of vacation and sick leave to which the Executive is entitled, the Executive agrees to devote substantially
full-time attention and time during normal business hours to the business and affairs of the BreitBurn Entitles consistent with Section 3 hereof. During the Employment Period it
shall not be a violation of this Agreement for the Executive to (A) carry on other non-competitive business ventures with the consent of the Partnership or its nominee (not to be
unreasonably withheld), (B) serve on the boards or committees of such ventures or trade associations or civic or charitable organizations or to engage 

1

 

in
activities with such entities, (C) deliver lectures, fulfill speaking engagements or teach at educational institutions and (D) manage personal investments, so long as such activities
do not significantly interfere with the performance of the Executive's responsibilities as an employee of the Partnership in accordance with this Agreement. Notwithstanding the foregoing, the
Executive shall be permitted to hold and make investments in companies through limited liability companies provided the Executive's investments in all such companies, whether direct or indirect, do
not exceed $500,000 in the aggregate. 

        (iii)  The
Executive's services shall be performed at the headquarters of the Partnership, and such location shall be in the Greater Los Angeles metropolitan area. 

        (b)    Compensation.    (i) Base Salary.    During
the Employment Period, the Executive shall receive a base salary (the "Base Salary") at an annual rate of $250,000, as the same may be increased (but
not decreased) thereafter in the discretion of the Partnership. The Base Salary shall be paid at such regular intervals as the Partnership pays executive salaries generally, but in no event less
frequently than monthly. During the Employment Period, the Base Salary shall be reviewed at least annually by the Partnership for possible increase in the discretion of the Partnership. Any increase
in the Base Salary shall not serve to limit or reduce any other obligation to the Executive under this Agreement. The Base Salary shall not
be reduced after any such increase, and the term Base Salary as utilized in this Agreement shall refer to the Base Salary as so increased. 

         (ii)  Short-Term Incentives.    For each fiscal year of the Partnership ending during the Employment
Period, the Executive will be entitled to participate in the BreitBurn Annual Cash Bonus Program at the Executive Vice President level and will be eligible to earn an annual cash bonus based on
achievement of performance criteria established by the Board as soon as administratively practicable following the beginning of each such year (the "Annual
Bonus"). The maximum Annual Bonus for any fiscal year will be an amount equal to 100% of the Executive's Base Salary. The Partnership shall pay the Annual Bonus for each fiscal
year in a single cash lump sum after the end of the Partnership's fiscal year in accordance with procedures established by the Board, but in no event later than the fifteenth day of the third month
following the end of such fiscal year. For the year ending December 31, 2006, the Executive shall be guaranteed an Annual Bonus in an amount equal to 100% of the Executive's Base Salary times a
fraction, the numerator of which is the number of days from the Commencement Date to December 31, 2006 and the denominator of which is 365; provided, that the Executive remains in employment
with the Partnership through the date of payment. 

        (iii)  Long Term Incentives.    (A) As of the Commencement Date, the Partnership shall grant the Executive
250,000 unit appreciation rights (the "Founder's UARs") under the Partnership's Unit Appreciation Plan for Officers and Key Individuals (the
"Unit Plan"), with each unit appreciation right having a base price equal to the Value (as defined in the Unit Plan) of one Phantom Unit (as defined in
the Unit Plan). Except as otherwise provided in Section 5 hereof, the Founder's UARs will vest over a five-year period as follows: one-third (1/3) of the
Founder's UARs will vest upon the Executive's completion of three (3) years of service to the Partnership measured from the Commencement Date, an additional one-third
(1/3) of the Founder's UARs will vest upon the Executive's completion of four (4) years of service to the Partnership measured from the Commencement Date, and an additional
one-third (1/3) of the Founder's UARs will vest upon the Executive's completion of five (5) years of service to the Partnership measured from the Commencement Date.
Except as otherwise provided in Section 5 hereof, in no event will the Executive continue to vest in the Founder's UARs following the Executive's cessation of service to the Partnership. Except
as otherwise provided in Section 5 hereof, the terms and conditions of the Founder's UARs shall be governed by and subject to the Unit Plan and the Unit Appreciation Rights Agreement and Grant
Notice to be entered into between Executive and the Partnership, in the form of Exhibit A (the "Founder's UAR
Agreement"). (B) As of the Commencement Date, the 

2

 

Partnership
shall grant Executive a performance trust unit award under the Partnership's Long Term Incentive Plan (the "LTIP") covering incentive units
("PTUs") with an aggregate "Current Market Price" (as defined in the LTIP) equal to $500,000, determined as of the Commencement Date. Except as
otherwise provided in Section 5 hereof, the PTUs will vest upon the Executive's completion of three years of continuous employment with the Partnership. Except as otherwise provided in
Section 5 hereof, the terms and conditions of the PTUs shall be governed by and subject to the LTIP and the award agreement to be entered into between the Executive and the Partnership, in the
form of Exhibit B. (C) For years subsequent to 2006, the Executive shall be eligible to participate in the LTIP and any other equity award
program maintained by the Partnership and any other BreitBurn Entity and will be granted additional awards under the LTIP or other equity award program at the Executive Vice President level as
determined by the Board in its sole discretion; provided, that the terms and conditions of such awards shall be no less favorable to the Executive than provided to any other Peer Executive.
Notwithstanding the foregoing, in connection with a Change in Control, all equity and equity-based awards, including, without limitation, the Founder's UARs, the PTUs, and any other LTIP awards, held
by the Executive shall become fully vested, non-forfeitable and exercisable (if applicable) immediately prior to such Change in Control and shall be exercisable (if applicable) in
accordance with the terms of the applicable award agreements. 

        (iv)  Commencement Payment.    Within 30 days of the Commencement Date, the Partnership shall make a
one-time cash payment to the Executive of $100,000. If the Executive's employment is terminated for any reason (other than a termination of the Executive's employment by the Partnership
without Cause) on or before the first anniversary of the Commencement Date, a prorated amount of this bonus must be repaid to the Partnership determined by multiplying $100,000 by a fraction, the
numerator of which is the number of days from the Date of Termination to the first anniversary of the Commencement Date and the denominator of which is 365. 

         (v)  City Club Membership.    During the Employment Period, the Partnership shall pay all initiation fees, monthly
dues, and reasonable expenses incurred for business related use of one (1) city, athletic or
dining club, as approved in advance by the Co-CEOs. The Executive's membership shall be the property of the Executive. 

        (vi)  Benefit Plans and Policies.    During the Employment Period, the Executive and/or the Executive's eligible
dependents, as the case may be, shall be entitled to participate in and shall receive all benefits; at levels suitable for executives, under the savings and retirement plans and policies, welfare
plans (including, without limitation, medical and dental) and policies and fringe benefit plans and policies of the Partnership on a basis no less favorable than provided any other Peer Executive. In
addition, the Partnership shall pay for the Executive's monthly parking expenses and, prior to the Executive and/or his dependents eligibility for enrollment in the Partnership's medical and/or dental
plans, shall reimburse the Executive for the COBRA costs for his current employer's medical and/or dental plans covering both the Executive and his eligible dependents (with any such reimbursement
grossed up for any income withholding taxes incurred by the Executive (if any) on such reimbursement). 

       (vii)  Expenses.    During the Employment Period, the Executive shall be entitled to receive prompt reimbursement
for reasonable expenses incurred by the Executive on behalf of or in furtherance of the business of any BreitBurn Entity pursuant to the terms and conditions of the Partnership's expense reimbursement
policies. 

      (viii)  Vacation.    During the Employment Period, the Executive shall be entitled to paid vacation in accordance
with the Partnership's vacation policy, but in no event less than four 

3

 

(4) weeks
per year. Executive shall immediately vest in two (2) weeks of vacation upon the Commencement Date. 

        (ix)  Legal Fees.    The Partnership shall reimburse the Executive for any reasonable legal fees and expenses
incurred by the Executive in connection with the review of this Agreement, up to a maximum of $15,000 in the aggregate, provided that such fees are
properly documented and such documentation is submitted to the Partnership in a timely manner. 

        4.    Termination of Employment.    (a) Death or
Disability.    The Executive's employment shall terminate automatically upon the Executive's death during the Employment Period. If the Partnership determines in good
faith that the Disability of the Executive has occurred during the Employment Period, it may give to the Executive written notice in accordance with Section 13(b) hereof of its intention to
terminate the Executive's employment. In such event, the Executive's employment with the Partnership and all other BreitBurn Entities shall terminate effective on the thirtieth (30th) day after
receipt of such notice by the Executive (the "Disability Effective Date"); provided, that within thirty
(30) days after such receipt, the Executive shall not have returned to full-time performance of the Executive's duties. 

        (b)    Cause.    The Partnership may terminate the Executive's employment during the Employment Period for Cause or
without Cause, provided that the Partnership may not terminate the Executive's employment for Cause prior to obtaining the requisite approval of the Board provided for in the definition of "Cause." 

        (c)    Good Reason.    The Executive's employment may be terminated by the Executive during the Employment Period for
Good Reason or without Good Reason. 

        (d)    Notice of Termination.    Any termination by the Partnership or the Executive shall be communicated by a Notice
of Termination to the other parties hereto given in accordance with Section 13(b) hereof. The failure by the Executive or the Partnership to set forth in the Notice of Termination any fact or
circumstance which contributes to a showing of Good Reason or Cause shall not waive any right of the Executive or the Partnership, respectively, hereunder or preclude the Executive or the Partnership,
respectively, from asserting such fact or circumstance in enforcing the Executive's or the Partnership's rights hereunder. 

        5.    Obligations of the Partnership upon Termination.    (a) Good Reason: Other Than
for Cause, Death or Disability.    If, during the Employment Period, the Partnership shall terminate the Executive's employment without Cause (other than as a
consequence of death or disability, which shall have the effects set forth in Section 5(c) below), or the Executive shall terminate employment for Good Reason: 

          (i)  Except
as otherwise provided in Section 12, the Executive shall be paid, in a single lump sum payment within thirty (30) days after the Date of
Termination, the aggregate amount of (A) the Executive's earned but unpaid Base Salary and accrued but unpaid vacation pay, if any, through the Date of Termination, any Annual Bonus earned by
the Executive pursuant to Section 3(b)(ii) hereof for any fiscal year that ends on or before the Date of Termination, and any unreimbursed business expenses incurred up through the Date
of Termination, subject to the terms and conditions of the Partnership's expense reimbursement policies (the "Accrued Obligations"), (B) one and
one-half (11/2) times the sum of (X) the Executive's Base Salary as in effect immediately prior to the Date of Termination and (Y) the average of his Annual
Bonuses earned (including any amounts deferred) for the two (2) years immediately preceding the Date of Termination (or in the event that the Executive has not been employed for two
(2) years, then the average of the Annual Bonus paid for the first (1st) year (if completed) and the forecasted bonus for the current year based on performance parameters as described in
Section 3(b)(ii) hereof through the Date of Termination extrapolated through the end of such year) (the "Bonus Amount"). Solely for
purposes of determining the Executive's benefits payable under this 

4

 

Section 5(a)(i) or
Section 5(a)(ii), the Annual Bonus for 2006 shall be deemed to be 100% of Base Salary. 

         (ii)  At
the time when annual bonuses are paid to other Peer Executives for the fiscal year in which the Date of Termination occurs (but in no event later than the fifteenth
day of the third month following the end of the fiscal year in which the Date of Termination occurs), the Executive shall be paid an amount equal to the product of (A) the Bonus Amount and
(B) a fraction, the numerator of which shall be the number of days in such fiscal year through the Date of Termination and the denominator of which shall be 365, to the extent not theretofore
paid; 

        (iii)  For
a period of eighteen (18) months following the Date of Termination, the Executive and/or the Executive's eligible dependents shall continue to be provided
with medical, prescription and dental benefits at least equal to those which would have been provided to them in accordance with the plans, programs, practices and policies if the Executive's
employment had not been terminated. Notwithstanding the foregoing, the Executive shall cease to receive such medical, prescription and dental benefits on the date the Executive is eligible to receive
such benefits under another employer-provided group plan; 

        (iv)  All
equity or equity-based awards, including, without limitation, the Founder's UARs, the PTUs and any other LTIP awards, held by the Executive shall become fully
vested, non-forfeitable and exercisable (if applicable) as of the Date of Termination and shall be exercisable (if applicable) according to the terms of the applicable award agreements;
and 

         (v)  To
the extent not theretofore paid or provided, the Partnership shall timely pay or provide to the Executive any accrued benefits and other amounts or benefits required
to be paid or provided or which the Executive is eligible to receive prior to the Date of Termination under any plan, program, policy or practice or contract or agreement of the Partnership and its
affiliates according to their terms (such other amounts and benefits shall be hereinafter referred to as the "Other Benefits"). 

        (b)    Cause; Other than for Good Reason.    If the Executive's employment shall be terminated by the Partnership for
Cause or by the Executive other than for Good Reason during the Employment Period, the Partnership shall pay to the Executive the Accrued Obligations in cash within thirty (30) days after the
Date of Termination and shall provide any Other Benefits which have accrued during the Employment Period. Any outstanding equity awards, including, without limitation, the Founder's UARs and the PTUs,
shall be treated in accordance with the applicable plan and award agreement. 

        (c)    Death or Disability.    If the Executive's employment is terminated by reason of the Executive's death or
Disability during the Employment Period; 

          (i)  The
Accrued Obligations shall be paid to the Executive's estate or beneficiaries or to the Executive, as applicable, in cash within thirty (30) days of the Date
of Termination; 

         (ii)  At
the time when annual bonuses are paid to other Peer Executives for the fiscal year in which the Date of Termination occurs (but in no event later than the fifteenth
day of the third month following the end of the fiscal year in which the Date of Termination occurs), the Executive's estate or beneficiaries or the Executive, as applicable, shall be paid an amount
equal to the product of (A) the amount of the Annual Bonus to which the Executive would have been entitled, if the Executive's employment had not been terminated, and (B) a fraction, the
numerator of which shall be the number of days in such fiscal year through the Date of Termination and the denominator of which shall be 365, to the extent not theretofore paid; 

        (iii)  All
equity or equity-based awards, including the Founder's UARs and the PTUs, held by the Executive shall become fully vested, non-forfeitable and
exercisable (if applicable) as of the 

5

 

Date
of Termination and shall be exercisable (if applicable) according to the terms of the applicable award agreement; 

        (iv)  The
Other Benefits shall be paid or provided to the Executive's estate or beneficiaries or to the Executive, as applicable, in accordance with the applicable plans; and 

         (v)  Through
the remainder of the Employment Period, or such longer period as may be provided by the terms of the appropriate plan, program, practice or policy, the Executive
and/or the Executive's eligible dependents shall continue to be provided with medical, prescription and dental benefits as if the Executive's employment had not been terminated. 

        (d)    Non-renewal.    If the Partnership provides a notice of non-renewal of the Employment
Period as set forth in Section 2 hereof, all equity or equity-based awards, including, without limitation, the Founder's UARs, the PTUs and any other LTTP awards, held by the Executive shall
become fully vested, non-forfeitable and exercisable (if applicable) as of the Date of Termination and shall be exercisable (if applicable) according to the terms of the applicable award
agreements. The benefits of this Section 5(d) shall only be applicable if following such notice of non-renewal by the Partnership, the Executive does not voluntarily terminate his
employment (other than upon death or Disability) before the end of the Employment Term, as determined without regard to the last sentence of Section 2 hereof. 

        6.    Non-exclusivity of Rights.    Nothing in this Agreement shall prevent or limit the Executive's
continuing or future participation in any plan, program, policy or practice provided by any BreitBurn Entity (other than policies relating to severance payments or obligations on termination of
employment for any reason) and for which the Executive may qualify, nor shall anything herein limit or otherwise affect such rights as the Executive may have under any contract or agreement with any
BreitBurn Entity. Amounts which are vested benefits or which the Executive is otherwise entitled to
receive under any plan, policy, practice or program of or any contract or agreement with any BreitBurn Entity or any of its affiliates at or subsequent to the Date of Termination shall be payable in
accordance with such plan, policy, practice or program or contract or agreement except as explicitly modified by this Agreement. 

        7.    Full Settlement.    The Partnership's obligation to make the payments provided for in this Agreement and
otherwise to perform its obligations hereunder shall not be affected by any set-off, counterclaim, recoupment, defense or other claim, right or action which the Partnership, the General
Partner, BreitBurn Partners or any of their affiliates may have against the Executive or others. In no event shall the Executive be obligated to seek other employment or take any other action by way
of mitigation of the amounts payable to the Executive under any of the provisions of this Agreement, and, except as provided in Section 5(a)(iii) hereof, such amounts shall not be
reduced whether or not the Executive obtains other employment. 

        8.    Executive's Covenants.    (a) The Executive shall hold in a fiduciary capacity for the benefit of the
Partnership and each BreitBurn Entity all secret or confidential information, knowledge or data relating to the Partnership and each BreitBurn Entity, and its respective businesses, which shall have
been obtained by the Executive during the Executive's employment by the Partnership and each BreitBurn Entity and which shall not be or become public knowledge or known within the relevant trade or
industry (other than by acts by the Executive or representatives of the Executive in violation of this Agreement). After termination of the Executive's employment with the Partnership and each
BreitBurn Entity, the Executive shall not, directly or indirectly, without the prior written consent of the Partnership or as may otherwise be required by law or legal process, use for his own benefit
such information, knowledge or data, or communicate or divulge any such information, knowledge or data to anyone other than a BreitBurn Entity and those designated by a BreitBurn Entity;  provided, that
if the Executive receives actual notice that the Executive is or may be required by law or legal process to communicate or divulge any
such information, knowledge or data, unless otherwise prohibited by law or 

6

 

regulation,
the Executive shall promptly so notify the appropriate BreitBurn Entity. Anything herein to the contrary notwithstanding, the provisions of this Section 8 shall not apply with
respect to any litigation, arbitration or mediation involving this Agreement, including its Exhibits, or any other agreement between the Executive and any BreitBurn Entity or any of their affiliates;
provided, however, that the Executive shall take all reasonable steps to maintain such information as confidential, including, without limitation, seeking protective orders and filing documents
containing such information under seal. 

        (b)   While
employed by the Partnership and for a period of two (2) years following the Date of Termination, regardless of the reason for the termination, other than in
the ordinary course of the Executive's duties for any BreitBurn Entity, the Executive shall not, without the prior consent of the Partnership (which consent shall not be unreasonably withheld),
directly or indirectly (i) solicit, induce, or encourage any employee of any BreitBurn Entity or any of their respective affiliates who is employed on the Date of Termination (or at any time
within six (6) months of such date) to terminate his or her employment with such entity or (ii) hire any such employee within six (6) months after that employee's termination of
employment with any BreitBurn Entity or any of their respective affiliates. The Partnership acknowledges that its employees may join entities with which the Executive is affiliated and that that event
will not constitute a violation of this Agreement if the Executive was not involved in the solicitation, hiring or identification of such employee as a potential recruit. 

        (c)   In
no event shall an asserted violation of the provisions of this Section 8 constitute a basis for deferring or withholding any amounts otherwise payable to the
Executive under this Agreement. However, in recognition of the facts that irreparable injury will result to the Partnership in the event of a breach by the Executive of his obligations under Sections
8(a), 8(b) and 8(c) above, that monetary damages for such breach would not be readily calculable, and that the Partnership would not have an adequate remedy at law therefor, the Executive
acknowledges, consents and agrees that in the event of such breach, or the threat thereof, the Partnership shall be entitled, in addition to any other legal remedies and damages available, to specific
performance thereof and to temporary and permanent injunctive relief (without the necessity of posting a bond) to restrain the violation or threatened violation of such obligations by the Executive. 

        (d)   Upon
the termination of Executive's employment with the Partnership for any reason, Executive shall immediately return and deliver to the Partnership any and all papers,
books, records, documents, memoranda and manuals, e-mail, electronic or magnetic recordings or data, including all copies thereof, belonging to the Partnership or relating to its business,
in Executive's possession, whether prepared by Executive or others. If at any time after the Employment Period, Executive determines that he has any secret or confidential information of the
Partnership or any BreitBurn Entity in his possession or control, Executive shall immediately return to the Partnership or such BreitBurn Entity all such information, including all copies and portions
thereof. Nothing herein shall prevent the Executive from retaining a copy of his personal papers, information or documentation relating to his compensation. 

        9.    Successors.    (a) This Agreement is personal to the Executive and without the prior written consent of
the General Partner shall not be assignable by the Executive otherwise than by will or the laws of descent and distribution. This Agreement shall inure to the benefit of and be enforceable by the
Executive's legal representatives, including, without limitation, his heirs and/or beneficiaries. 

        (b)   This
Agreement shall inure to the benefit of and be binding upon the Partnership and its successors and assigns and may be assigned to BreitBurn Management Company and
any of its successors or assigns; provided, however, that such assignment shall not relieve BreitBurn Energy Company L.P. of its obligations under Section 10 of this Agreement. Except as
specified in the preceding sentence, no rights or obligations of the Partnership under this Agreement may be assigned or transferred by the Partnership without the Executive's prior written consent,
except that such rights 

7

 

or
obligations may be assigned or transferred in connection with a merger, consolidation, reorganization or other similar corporate transaction following which Provident Energy Trust, a trust
organized under the laws of Alberta, Canada (together with its successors and assigns, "Provident") will no longer own at least 50% of the equity
securities of BreitBurn Partners (determined on a fully diluted basis), or a sale of all or substantially all of BreitBurn Partners' assets provided that the assignee or transferee is the successor to
all or substantially all of BreitBurn Partners' assets and assumes the liabilities, obligations and duties of the Partnership under this Agreement. 

        (c)   The
Partnership shall require any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the business
and/or assets of the Partnership or any assign permitted under Section 9(b) above to assume expressly and agree to perform this Agreement in the same manner and to the same extent that the
Partnership would be required to perform it if no such succession had taken place. As used in this Agreement, "Partnership" shall mean the Partnership as hereinbefore defined and any successor to its
business and/or assets or assigns as aforesaid which assumes and agrees to perform this Agreement by operation of law, or otherwise. 

        10.    Indemnification and Directors' and Officers' Insurance.    (a) During the Employment Period and
thereafter, the Partnership shall indemnify the Executive to the fullest extent permitted under law from and against any expenses (including but not limited to attorneys' fees, expenses of
investigation and preparation and fees and disbursements of the Executive's accountants or other experts), judgments, fines, penalties and amounts paid in settlement actually and reasonably incurred
by the Executive in connection with any proceeding in which the Executive was or is made party, was or is involved (for example, as a witness) or is threatened to be made a party to, by reason of the
fact the Executive was or is employed by the Partnership or was performing services for any BreitBurn Entity. Such indemnification shall continue as to the Executive during the Employment Period and
for at least six (6) years from the Date of Termination with respect to acts or omissions which occurred prior to his cessation of employment with the Partnership and shall inure to the benefit
of the Executive's heirs, executors and administrators. The Partnership shall advance to the Executive all costs and expenses incurred by him in connection with any proceeding covered by this
provision within twenty (20) calendar days after receipt by the Partnership of a written request for such advance. Such request shall include an undertaking by the Executive to repay the amount
of such advance if it shall ultimately be determined that he is not entitled to be indemnified against such costs and expenses. 

        (b)   The
Partnership agrees to maintain directors' and officers' liability insurance policies covering the Executive on a basis no less favorable than provided to the Peer
Executives, which coverage shall continue as to the Executive even if he has ceased to be a director, member, employee or agent of the Partnership with respect to acts or omissions which occurred
prior to his cessation of employment with the Partnership. Insurance contemplated under this Section 10(b) shall inure to the benefit of the Executive's heirs, executors and administrators. 

        11.    Arbitration Agreement.    (a) Any controversy, dispute or claim between Executive and the Partnership,
or its parents, subsidiaries, affiliates and any of their officers, directors, agents or other employees, relating to Executive's employment or termination thereof, shall be resolved by final and
binding arbitration, at the request of either party. 

        The
arbitrability of any controversy, dispute or claim under this Agreement or any other agreement between the parties shall be determined by application of the substantive provisions of
the Federal Arbitration Act (9 U.S.C. sections 1 and 2) and by application of the procedural provisions of California law, except as provided herein. Arbitration shall be the exclusive method
for resolving any dispute and all remedies available from a court of competent jurisdiction shall be available; provided, however, that either party may request provisional relief from a court of
competent jurisdiction, if such relief is not available in a timely fashion through arbitration. 

8

 

        The
claims which are to be arbitrated include, but are not limited to any claim arising out of or relating to this Agreement or the employment relationship between Executive and the
Partnership, claims for wages and other compensation, claims for breach of contract (express or implied), claims for violation of public policy, wrongful termination, tort claims, claims for unlawful
discrimination and/or harassment (including, but not limited to, race, religious creed, color, national origin, ancestry, physical disability, mental disability, gender identity or expression, medical
condition, marital status, age, pregnancy, sex or sexual orientation) to the extent allowed by law, and claims for violation of any federal, state, or other government law, statute, regulation, or
ordinance, except for claims for workers' compensation and unemployment insurance benefits. This Agreement shall not be interpreted to provide for arbitration of any dispute that does not constitute a
claim recognized under applicable law. 

        (b)   The
Executive and the Partnership will select a single neutral arbitrator by mutual agreement. If the Executive and the Partnership are unable to agree on a neutral
arbitrator within thirty days of a demand for arbitration, either party may elect to obtain a list of arbitrators from the Judicial Arbitration and Mediation Service
("JAMS") or the American Arbitration Association ("AAA"), and the arbitrator shall be selected by
alternate striking of names from the list until a single arbitrator remains. The party initiating the arbitration shall be the first to strike a name. 

        (c)   The
demand for arbitration must be in writing and must be made by the aggrieved party within the statute of limitations period provided under applicable state and/or
federal law for the particular claim(s). Failure to make a written demand within the applicable statutory period constitutes a waiver of the right to assert that claim in any forum. 

        (d)   Arbitration
proceedings will be held in Los Angeles, California. 

        (e)   The
arbitrator shall apply applicable state and/or federal substantive law to determine issues of liability and damages regarding all claims to be arbitrated, and shall
apply the Federal Rules of Evidence to the proceeding. 

        (f)    The
parties shall be entitled to conduct reasonable discovery and the arbitrator shall have the authority to determine what constitutes reasonable discovery. The
arbitrator shall hear motions for summary judgment/adjudication as provided in the Federal Rules of Civil Procedure. 

        (g)   Within
thirty days following the hearing and the submission of the matter to the arbitrator, the arbitrator shall issue a written opinion and award which shall be signed
and dated. The arbitrator's award shall decide all issues submitted by the parties, and the arbitrator may not decide any issue not submitted. The opinion and award shall include factual findings and
the reasons upon which the decision is based. The arbitrator shall be permitted to award only those remedies in law or equity which are requested by the parties and allowed by law. 

        (h)   The
cost of the arbitrator and other incidental costs of arbitration that would not be incurred in a court proceeding shall be borne by the Partnership. The parties
shall each bear their own costs and attorneys' fees in any arbitration proceeding, provided, however, that the arbitrator shall have the authority to require either party to pay the costs and
attorneys' fees of the other party to the extent permitted under applicable federal or state law, as a part of any remedy that may be ordered. 

        (i)    Both
the Partnership and Executive understand that by using arbitration to resolve disputes they are giving up any right that they may have to a judge or jury trial with
regard to all issues concerning employment or otherwise covered by this Section 11. 

        12.    Internal Revenue Code Section 409A.    Notwithstanding anything to the contrary herein, in the event
that any benefit (other than the Founder's UARs) provided pursuant to this Agreement is not actually or constructively received by the Executive on or before the Short-Term Deferral Date
(as defined below), or to the extent required to comply with the requirements of Code Section 409A(a)(2), (3), and (4), then: (i) subject to clause (ii), such benefit shall be
paid to the Executive on the thirtieth 

9

 

day
following the Executive's Separation from Service, with respect to the Partnership and its affiliates, and (ii) if the Executive is a "specified employee," as defined in Code
Section 409A(a)(2)(B)(i), with respect to the Partnership and its affiliates, such benefit shall be paid on the date which is six months after the date of the Executive's Separation from
Service (or, if earlier, the date of the Executive's death). For purposes of this Agreement, the "Short-Term Deferral Date" means the later
of: (i) the fifteenth day of the third month following the Executive's first taxable year in which such benefit is no longer subject to a substantial risk of forfeiture, and (ii) the
fifteenth day of the third month following the first taxable year of the Partnership in which such benefit is no longer subject to a substantial risk of forfeiture, as determined in accordance with
Code Section 409A and any Treasury Regulations and other guidance issued thereunder. In the event that any payment, benefit or entitlement provided pursuant to this Agreement, including its
Exhibits, constitutes a deferral of compensation subject to the requirements of Code Section 409A(a)(2), (3), and (4), the Partnership and the Executive agree to cooperate and work together in
good faith to timely amend this Agreement, including its Exhibits, in a manner intended to comply with the requirement of Code Section 409A, or an exemption therefrom. 

        13.    Miscellaneous.    (a) This Agreement shall be governed by and construed in accordance with the laws of
the State of California, without reference to principles of conflict of laws. The captions of this Agreement are not part of the provisions hereof and shall have no force or effect. This Agreement may
not be amended or modified otherwise than by a written agreement executed by the parties hereto or their respective successors and legal representatives. 

        (b)   All
notices and other communications hereunder shall be in writing and shall be given by hand delivery to the other party or by registered or certified mail, return
receipt requested, postage prepaid, addressed as follows: 

        If to the Executive: at the Executive's most recent address on the records of the Partnership, 

If to the Partnership: 

BreitBurn
Energy Company L.P.

Attn.: Halbert Washburn

515 South Flower Street, Suite 4800

Los Angeles, CA 90071 

or
to such other address as either party shall have furnished to the other in writing in accordance herewith. Notice and communications shall be effective when actually received by the addressee. 

        (c)   The
invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement. Upon the
expiration or termination of the Employment Period, the respective rights and obligations of the parties hereunder shall survive such expiration or termination to the extent necessary to carry out the
intentions of the parties as embodied in this Agreement. 

        (d)   The
Partnership or any other BreitBurn Entity may withhold from any amounts payable under this Agreement such federal, state, local or foreign taxes as shall be required
to be withheld pursuant to any applicable law or regulation. The Partnership and the Executive intend for the Executive to be treated as an employee of the Partnership and not as a member or partner
of any BreitBurn Entity or any of their affiliates. 

        (e)   The
Partnership represents and warrant that (i) the execution, delivery and performance of this Agreement, including its Exhibits, by it has been fully and
validly authorized, (ii) the entity signing this Agreement, including its Exhibits, on its behalf is duly authorized to do so, (iii) the execution and delivery of this Agreement,
including its Exhibits, does not violate any order, judgment or decree or any agreement, plan or corporate governance document to which it is a party or by which it is bound and (iv) upon
execution and delivery of this Agreement and its Exhibits by the parties, it shall be a 

10

 

valid
and binding obligation of the Partnership, enforceable against it in accordance with its terms, except to the extent that enforceability may be limited by applicable laws, including, without
limitation, bankruptcy, insolvency or similar laws affecting the enforcement of creditors' rights generally. 

        (f)    The
Executive's or the Partnership's failure to insist upon strict compliance with any provision of this Agreement or the failure to assert any right of the Executive or
any BreitBurn Entity hereunder, including, without limitation, the right of the Executive to terminate employment for Good Reason pursuant to Section 4(c) hereof, shall not be deemed to be a
waiver of such provision or right or any other provision or right of this Agreement. Any waiver of any provision of this Agreement, including its Exhibits, shall be effective only if in a writing,
specifically referencing the provision being waived and signed by the party against whom the enforcement of the waiver is being sought. 

        (g)   This
Agreement constitutes the entire agreement of the parties with respect to the subject matter hereof and shall supersede and replace all prior representations,
warranties, agreements and understandings, both written and oral, made by the Partnership or the Executive with respect to the terms of the Executive's employment by the Partnership. The parties to
this Agreement have participated jointly in the negotiation and drafting of this Agreement. In the event an ambiguity or question of intent or interpretation arises with respect to any term or
provision of this Agreement, this Agreement shall be construed as if drafted jointly by the parties hereto, and no presumption or burden of proof shall arise favoring or disfavoring any party hereto
by virtue of the authorship of any of the terms or provisions hereof. 

        (h)   This
Agreement may be executed in one or more counterparts, each of which shall be deemed an original but all of which taken together shall constitute one and the same
instrument. 

Signature page follows.

11

   
        IN WITNESS WHEREOF, the Executive has hereunto set the Executive's hand and the Partnership has caused these presents to be executed in its name on its behalf, all as of the day and year
first above written. 

	 	 	/s/  JAMES G. JACKSON      
 James G. Jackson
	

 	
 	

BreitBurn Energy Company L.P.
	

 	
 	

By:	

Pro GP Corp., its General Partner
	

 	
 	

By:	

/s/  RANDALL J. FINDLAY      
 Name: Randall J. Findlay

Title:

12

   APPENDIX A  

        "AAA" has the meaning assigned thereto in Section 11(b) hereof. 

        "Accrued Obligations" has the meaning assigned thereto in Section 5(a)(i) hereof. 

        "Agreement" has the meaning assigned thereto in the recitals hereof. 

        "Annual Bonus" has the meaning assigned thereto in Section 3(b)(ii) hereof. 

        "Base Salary" has the meaning assigned thereto in Section 3(b)(i) hereof. 

        "Board" means the Board of Directors of the Pro GP Corp., the general partner of the Partnership. 

        "Bonus Amount" has the meaning assigned thereto in Section 5(a)(i) hereof. 

        "BreitBurn Annual Cash Bonus Program" means any and all annual cash bonus programs maintained by the Partnership (or any other BreitBurn
Entity) in which the Peer Executives are entitled to participate. 

        "BreitBurn Energy" means BreitBurn Energy Corporation, a California corporation, and its successors and assigns. 

        "BreitBurn Entity" has the meaning assigned thereto in Section 3(a)(i) hereof. 

        "BreitBurn Management" has the meaning assigned thereto in Section 3(a)(i) hereof. 

        "BreitBurn Partners" has the meaning assigned thereto in Section 3(a)(i) hereof. 

        "Cause" means the following: 

          (i)  the
willful and continued failure of the Executive to perform substantially the Executive's duties for the Partnership or any BreitBurn Entity (as described in
Section 3(a) hereof) (other than any such failure resulting from incapacity due to physical or mental illness), after a written demand for substantial performance is delivered to the Executive
by the Partnership (after a vote to this effect by a majority of the Board) which specifically identifies the manner in which the Board believes that the Executive has not substantially performed the
Executive's duties and the Executive is given a reasonable opportunity of not more than twenty (20) business days to cure any such failure to substantially perform; 

         (ii)  the
willful engaging by the Executive in illegal conduct or gross misconduct, in each case which is materially and demonstrably injurious to the Partnership or any
BreitBurn Entity; or 

        (iii)  (A)
any act of fraud, or material embezzlement or material theft by the Executive, in each case, in connection with the Executive's duties hereunder or in the course
of the Executive's employment hereunder or (B) the Executive's admission in any court, or conviction, or plea of nolo contendere, of a felony involving moral turpitude, fraud, or material
embezzlement, material theft or material misrepresentation, in each case, against or affecting the Partnership or any BreitBurn Entity. 

        For
purposes of this provision, no act or failure to act, on the part of the Executive, shall be considered "willful" unless it is done, or omitted to be done, by the Executive in bad
faith or without reasonable belief that the Executive's action or omission was in the best interests of the Partnership or any BreitBurn Entity. Any act, or failure to act, based upon authority given
pursuant to a resolution duly adopted by the Partnership or the General Partner, including, without limitation, the Board, or based upon the advice of counsel for the Partnership or the General
Partner shall be conclusively presumed to be done, or omitted to be done, by the Executive in good faith and in the best interests of the Partnership and the BreitBurn Entities. Notwithstanding the
foregoing, the Executive's employment 

A-1

 

shall
not be terminated for Cause within the meaning of clauses (i), (ii) and (iii)(A) above until there is vote by a majority of the members of the Board to so terminate the Executive's
employment for Cause. 

        "Change in Control" means: 

          (i)  the
acquisition, directly or indirectly, by any "person" or "group" (within the meaning of Sections 3(a)(9), 13(d)(3) or 14(d)(2) of the Exchange Act) of "beneficial
ownership" (as determined pursuant to Rule 13d-3 promulgated under the Exchange Act) of more than 50% of the combined voting power of the then-outstanding voting
securities of the general partner of BreitBurn Partners entitled to vote generally in the election of its board of directors, managing member, general partner or equivalent; provided, however, that
for purposes of this clause (i), the following acquisitions will not constitute a Change in Control: (A) any acquisition of securities by the General Partner or any "affiliate" (within
the meaning of Rule l2b-2 promulgated under the Exchange Act) of the General Partner, (B) any acquisition of securities by Provident or affiliate of Provident, (C) any
acquisition of securities by BreitBurn Energy or any affiliate of BreitBurn Energy, or (D) any acquisition of securities by any employee benefit plan (or related trust) sponsored or maintained
by BreitBurn Partners or any affiliate of BreitBurn Partners; 

         (ii)  the
acquisition, directly or indirectly, by any "person" or "group" (within the meaning of Sections 3(a)(9), 13(d)(3) or 14(d)(2) of the Exchange Act) of "beneficial
ownership" (as determined pursuant to Rule 13d-3 promulgated under the Exchange Act) of more than 50% of the combined voting power of the then-outstanding voting
securities of BreitBurn Partners entitled to vote generally in the election of its general partner; provided, however, that for purposes of this clause (ii), the following acquisitions will not
constitute a Change in Control: (A) any acquisition of securities by the General Partner or any "affiliate" (within the meaning of Rule 12b-2 promulgated under the Exchange
Act) of the General Partner, (B) any acquisition of securities by Provident or any affiliate of Provident, (C) any acquisition of securities by BreitBurn Energy or any affiliate of
BreitBurn Energy, (D) any acquisition of securities by any employee benefit plan (or related trust) sponsored or maintained by BreitBurn Partners or any affiliate of BreitBurn Partners, or
(E) any acquisition of securities held by Provident or BreitBurn Energy or from BreitBurn Partners arising out of or in connection with an initial public offering of BreitBurn Partners'
securities; 

        (iii)  the
consummation of a sale of all or substantially all of the assets of BreitBurn Partners; or 

        (iv)  the
approval by the general partner of BreitBurn Partners of a liquidation or dissolution of BreitBurn Partners. 

        In
no event, however, will a Change in Control be deemed to occur upon (1) any change in ownership or control of Provident, whether by merger, consolidation, reorganization or
otherwise, (2) an incorporation of the General Partner (or other change in the organization of the General Partner), or (3) the occurrence of any reorganization or combination involving
the General Partner following which Provident and BreitBurn Energy Corporation retain, directly or indirectly, more than fifty percent (50%) of the beneficial ownership of either (A) the total
combined voting power of the outstanding securities of BreitBurn Partners or any successor entitled to vote generally in the election of its board of directors, managing member, general partner or
equivalent, or (B) the total combined voting power of the general partner of BreitBurn Partners or any successor, as determined immediately following such reorganization or combination, in each
case based upon the voting power of the outstanding securities entitled to vote generally in the election of such entity's board of directors, managing member, general partner or equivalent. For
purposes of subsection (i) above, the calculation of voting power shall be made as if the date of the acquisition were a record date for a vote of the General Partners' securityholders; for
purposes of subsection (ii) above, the calculation of voting power shall be made as if the date of the acquisition were a record date for a vote of the BreitBurn Partners' 

A-2

 

securityholders;
and for purposes of clause (3) in the preceding sentence, the calculation of voting power shall be made as if the date of the consummation of the reorganization or combination
were a record date for a vote of the relevant entity's securityholders. 

        "Code" means the Internal Revenue Code of 1986, as amended. 

        "Commencement Date" has the meaning assigned thereto in Section 2 hereof. 

        "Co-CEOs" has the meaning assigned thereto in Section 3(a)(i) hereof. 

        "Date of Termination" means (i) if the Executive's employment is terminated by the Partnership for Cause, or by the Executive with
or without Good Reason, the date of receipt of the Notice of Termination or any later date specified therein (which date shall not be more than thirty (30) days after the giving of such
notice), as the case may be; provided that in the event the Executive's employment is terminated by the Partnership for Cause, such Notice of Termination shall not be given until after the requisite
Board vote provided for in the definition of "Cause," (ii) if the Executive's employment is terminated by the Partnership other than for Cause or Disability, the date on which the Partnership
notifies the Executive of such termination, (iii) if the Executive's employment is terminated by reason of death or Disability, the date of the death of the Executive or the Disability
Effective Date, as the case may be and (iv) if the Partnership provides a notice of non-renewal of the Employment Period in accordance with Section 2 of this Agreement and
the Executive elects to terminate his employment immediately following the expiration of the Employment Period, the last day of the Employment Period. 

        "Disability" means the absence of the Executive from the Executive's duties with the Partnership (or any other entity for which the
Executive was performing services at the Partnership's request) on a full-time basis for ninety (90) consecutive days or on a total of 180 days in any twelve
(12) month period, in either case as a result of incapacity due to mental or physical illness which is determined to be total and permanent by a physician selected by the Partnership or its
insurers and acceptable to the Executive or the Executive's legal representative (such acceptance not to be unreasonably withheld). 

        "Disability Effective Date" has the meaning assigned thereto in Section 4(a) hereof. 

        "Employment Period" has the meaning assigned thereto in Section 2 hereof. 

        "Executive" has the meaning assigned thereto in the recitals hereof. 

        "Exchange Act" means the Securities Exchange Act of 1934, as amended. 

        "Founder's UAR Agreement" has the meaning assigned thereto in Section 3(b)(iii) hereof. 

        "Founder's UARs" has the meaning assigned thereto in Section 3(b)(iii) hereof. 

        "General Partner" has the meaning assigned thereto in Section 3(a)(i) hereof. 

        "Good Reason" means, in the absence of a written consent of the Executive (except in case of clause (vi) below), the following: 

          (i)  the
assignment to the Executive of any material duties inconsistent in any respect with the Executive's title and reporting requirements, position (including status and
offices), authority, material duties or responsibilities as contemplated by Section 3(a) hereof, or any other action by the Partnership, the General Partner or BreitBurn Partners which results
in a diminution in such title, reporting requirements, position, authority, material duties or responsibilities, including, without limitation, the failure to elect or re-elect the
Executive to the position of Chief Financial Officer of the Partnership (which shall continue to mean BreitBurn Energy Company L.P. in the event that the Agreement is assigned to BreitBurn
Management), the General Partner or BreitBurn Partners or the removal of the Executive from any such position or the failure of the Executive to be the senior most financial officer in any BreitBurn
Entity during the period the 

A-3

 

Executive
is asked to render such services to such BreitBurn Entity, excluding for this purpose an isolated, insubstantial and inadvertent action not taken in bad faith and which is remedied by the
Partnership promptly after receipt of notice thereof given by the Executive; 

         (ii)  any
material breach by the Partnership of any material provision of this Agreement, including, without limitation, any reduction in the Executive's Base Salary or
Annual Bonus opportunity, or any failure to award the Executive the Founder's UARs or the PTUs pursuant to Section 3(b)(iii) hereof; 

        (iii)  requiring
the Executive to be based at any office or location other than as provided in Section 3(a) (iii) hereof; 

        (iv)  any
purported termination by the Partnership of the Executive's employment otherwise than as expressly permitted by this Agreement; 

         (v)  the
Initial Public Offering for BreitBurn Partners not being consummated on or before September 30, 2007; 

        (vi)  a
Change in Control (which shall be effective whether or not the Executive consented to such Change in Control); or 

       (vii)  any
failure by the Partnership to comply with and satisfy Section 9(c) hereof within 20 days of the consummation of any transaction covered by
Section 9(c). 

        "JAMS" has the meaning assigned thereto in Section 11(b) hereof. 

        "Long Term Incentive Plan Performance Trust Units Agreement" has the meaning assigned thereto in Section 3(b)(iii) hereof. 

        "LTIP" has the meaning assigned thereto in Section 3(b)(iii) hereof. 

        "Notice of Termination" means a written notice which (i) indicates the specific termination provision in this Agreement relied
upon, (ii) to the extent applicable, sets forth in reasonable detail the facts and circumstances claimed to provide a basis for termination of the Executive's employment under the provision so
indicated and (iii) if the Date of Termination is other than the date of receipt of such notice, specifies the termination date (which date shall be not more than thirty (30) days after
the giving of such notice). 

        "Other Benefits" has the meaning assigned thereto in Section 5(a)(v) hereof. 

        "Partnership" has the meaning assigned thereto in the recitals hereof. 

        "Provident" has the meaning assigned thereto in Section 9(b) hereof. 

        "Peer Executives" means the other Executive Vice Presidents of the Partnership. 

        "PTUs" has the meaning assigned thereto in Section 3(b)(iii) hereof. 

        "Separation from Service" means the Executive's "separation from service" within the meaning of Section 409A(a)(2)(A)(i) of
the Code and the Treasury Regulations thereunder. 

        "Short-Term Deferral Date" has the meaning assigned thereto in Section 12 hereof. 

        "Unit Plan" has the meaning assigned thereto in Section 3(b)(iii) hereof. 

A-4

	 	 	OFFICERS AND

KEY INDIVIDUALS

BREITBURN ENERGY COMPANY L.P.

UNIT APPRECIATION RIGHTS GRANT NOTICE  

        Notice is hereby given of the following grant of unit appreciation rights (the "Unit Appreciation Rights") relating to Phantom Units of BreitBurn Energy Company
L.P., a Delaware limited partnership (the "Company"), granted to Participant under the BreitBurn Energy Company L.P. Unit Appreciation Plan for Officers and Key Individuals (the "Plan"). Unless
otherwise defined herein, the terms defined in the Plan shall have the same defined meanings in this Grant Notice and the Unit Appreciation Rights Agreement. 

	Participant:	 	 
	 	 	

	

Grant Date:	
 	

 
	 	 	

	

Vesting Commencement Date:	
 	

 
	 	 	

	

Determination Period Commencement Date:	
 	

 
	 	 	

	

Base Price per Unit Appreciation Right:	
 	

 
	 	 	

	

Number of Unit Appreciation Rights:	
 	

 
	 	 	

	

Expiration Date:	
 	

 
	 	 	

	

Exercise Schedule:    Except as otherwise provided in the Employment Agreement between the Company and the Participant dated as
of                        (the "Employment Agreement"), this Award shall vest and become exercisable for one-third
(1/3) of the Unit Appreciation Rights upon Participant's completion of three (3) years of Service measured from the Vesting Commencement Date, an additional one-third (1/3) of the Unit
Appreciation Rights upon Participant's completion of four (4) years of Service measured from the Vesting Commencement Date, and an additional one-third (1/3) of the Unit Appreciation Rights upon Participant's completion
of five (5) years of Service measured from the Vesting Commencement Date. Except as otherwise provided in your Employment Agreement, in no event shall this Award become vested and exercisable for any additional Unit Appreciation Rights after
Participant's cessation of Service.

        By his or her signature, Participant agrees to he bound by the terms and conditions of the Plan, the Unit Appreciation Rights Agreement and this
Grant Notice. Participant has reviewed the Unit Appreciation Rights Agreement, the Plan and this Grant Notice in their entirety, has had an opportunity to obtain the advice of counsel prior to
executing this Grant Notice and fully understands all provisions of this Grant Notice, the Unit Appreciation Rights Agreement and the Plan. Participant hereby agrees to accept as binding, conclusive
and final all decisions or interpretations of the Plan Administrator upon any questions arising under the Plan, this Grant Notice or the Unit Appreciation Rights Agreement. 

DATED:                        , 200  

	 BREITBURN ENERGY COMPANY L.P.:	 	PARTICIPANT:
	

By:	

 	
 	

By:	

 
	 	
	 	 	

	

Print Name:	

 	
 	

Print Name:	

 
	 	
	 	 	

	

Title:            	

 	
 	

 	

 
	 	
	 	 	 
	

Address:	

515 South Flower Street, Suite 4800

Los Angeles, CA 90071	
 	

Address:	

  
  

ATTACHMENTS
  Exhibit A—Unit Appreciation Rights Agreement

Exhibit B—Notice of Exercise

Exhibit C—Unit Appreciation Plan for Officers and Key Individuals  

  

	 	 	OFFICERS AND

KEY INDIVIDUALS

EXHIBIT A  

 UNIT APPRECIATION RIGHTS AGREEMENT  

        Pursuant to the Unit Appreciation Rights Grant Notice ("Grant Notice") to which this Unit Appreciation Rights Agreement (this "Agreement") is attached, BreitBurn
Energy Company L.P. (the "Company") has granted to Participant the number of Unit Appreciation Rights indicated in the Grant Notice under the Company's Unit Appreciation Plan for Officers and Key
Individuals (the "Plan"). 

ARTICLE I  

 GENERAL  

        1.1    Defined Terms.    Capitalized terms not specifically defined herein shall have the meanings specified in the
Plan and the Grant Notice. 

        1.2    Incorporation of Terms of Plan.    The Award is subject to the terms and conditions of the Plan which are
incorporated herein by reference. 

ARTICLE II  

 GRANT OF UNIT APPRECIATION RIGHTS  

        2.1    Grant of Unit Appreciation Rights.    In consideration of Participant's past and/or continued employment with
or service to the Company (or any Parent or Subsidiary) and for other good and valuable consideration, effective as of the Grant Date (the "Grant Date") set forth in the Grant Notice, the Company
grants to Participant the number of Unit Appreciation Rights set forth in the Grant Notice, upon the terms and conditions set forth in the Plan, this Agreement and the Grant Notice. 

        2.2    Base Price.    The Base Price of each Unit Appreciation Right shall be as set forth in the Grant Notice. 

ARTICLE III  

 PERIOD OF EXERCISABILITY  

        3.1    Commencement of Exercisability.    

        (a)   Subject
to Sections 3.2 and 5.6, the Unit Appreciation Rights subject to the Award shall vest and become exercisable in one or more installments in accordance with the
Exercise Schedule set forth in the Grant Notice. As the Award vests and becomes exercisable for such installments, those installments shall accumulate, and the Award shall remain vested and
exercisable for the accumulated installments until the Expiration Date or earlier termination of the Award in accordance with the terms of the Plan. 

        (b)   No
portion of the Award which has not become vested and exercisable upon the Participant's cessation of Service shall thereafter become vested and exercisable, except as
may be otherwise provided by the Plan Administrator or as set forth in a written agreement between the Company and Participant. 

        3.2    Expiration of Award.    The Award may not be exercised to any extent by anyone after the first to occur of the
following events: 

        (a)   The
Expiration Date; 

A-1

 

        (b)   The
expiration of ninety (90) days following the date of Participant's cessation of Service for any reason other than death or Misconduct (as defined below); 

        (c)   The
expiration of one hundred and eighty (180) days following the date of Participant's cessation of Service by reason of death; or 

        (d)   Participant's
dismissal or discharge from Service by reason of Misconduct, or Participant's commission of acts constituting Misconduct following his or her cessation of
Service. 

ARTICLE IV  

 EXERCISE OF AWARD  

        4.1    Person Eligible to Exercise.    During the lifetime of Participant, only Participant may exercise the Award or
any portion thereof. After the death of Participant, any exercisable portion of the Award may, prior to the time when the Award becomes unexercisable under Section 3.2, be exercised by
Participant's personal representative or by any person empowered to do so under the deceased Participant's will or under the then applicable laws of descent and distribution. 

        4.2    Partial Exercise.    Any exercisable portion of the Award, or the entire Award, if then wholly exercisable, may
be exercised in whole or in part at any time prior to the time when the Award or portion thereof becomes unexercisable under Section 3.2. 

        4.3    Manner of Exercise.    The Award, or any exercisable portion thereof, may be exercised solely by delivery to
the Chief Executive Officer of the Company or the Chief Executive Officer's office of all of the following prior to the time when the Award or such portion thereof becomes unexercisable under
Section 3.2: 

        (a)   A
Notice of Exercise in writing signed by Participant, or any other person then entitled to exercise the Award or portion thereof, stating that the Award or portion
thereof is thereby exercised, such notice complying with all applicable rules established by the Plan Administrator. Such notice shall be substantially in the form attached as  Exhibit B to the
Grant Notice (or such other form as is prescribed by the Plan Administrator); and 

        (b)   In
the event the Award or portion thereof shall be exercised pursuant to Section 4.1 by any person or persons other than Participant, appropriate proof of the
right of such person or persons to exercise the Award. 

        4.4.    Exercise Proceeds.    

        (a)   Not
later than ten (10) days following the Exercise Date, the Company shall mail or otherwise deliver to the Participant (or any other person permitted hereunder
to exercise this Award) an amount in respect of each Unit Appreciation Right exercised equal to the sum of (i) the Value of a Phantom Unit (determined as of the Exercise Date), plus
(ii) the Distributions with respect to the Partnership Interest underlying a Phantom Unit, less (iii) the Base Price per Unit Appreciation Right set forth in the Grant Notice. 

        (b)   Any
amount payable pursuant to this Section 4.4 shall be subject to the Company's collection of all applicable federal, state and local income and employment
taxes required to be withhold therefrom. 

        4.5    No Rights of Ownership.    At no time shall the Participant have any rights of ownership with respect to any
Partnership Interests by reason of the grant or exercise of this Award, and Participant shall have no voting, distribution, liquidation or other similar rights with respect to the Company or of a
holder of Partnership Interests in the Company. 

A-2

 

ARTICLE V  

 OTHER PROVISIONS  

        5.1    Administration.    The Plan Administrator shall have the power to interpret the Plan and this Agreement and to
adopt such rules for the administration, interpretation and application of the Plan as are consistent therewith and to interpret, amend or revoke any such rules. All actions taken and all
interpretations and determinations made by the Plan Administrator in good faith shall be final, binding and conclusive upon Participant, the Company and all other interested persons. In its absolute
discretion, the Board may at any time and from time to time exercise any and all rights and duties of the Plan Administrator under the Plan and this Agreement. 

        5.2    Award Not Transferable.    

        (a)   The
Award may not be sold, pledged, assigned or transferred in any manner other than by will or the laws of descent and distribution. Neither the Award nor any interest
or right therein shall be liable for the debts, contracts or engagements of Participant or his or her successors in interest or shall be subject to disposition by transfer, alienation, anticipation,
pledge, encumbrance, assignment or any other means whether such disposition be voluntary or involuntary or by operation of law by judgment, levy, attachment, garnishment or any other legal or
equitable proceedings (including bankruptcy), and any attempted disposition thereof shall be null and void and of no effect, except to the extent that such disposition is permitted by the preceding
sentence. 

        (b)   During
the lifetime of Participant, only Participant may exercise the Award or any portion thereof. After the death of Participant, any exercisable portion of the Award
may, prior to the time when the Award becomes unexercisable under Section 3.2, be exercised by Participant's personal representative or by any person empowered to do so under the deceased
Participant's will or under the then applicable laws of descent and distribution. 

        5.3    Notices.    Any notice to be given under the terms of this Agreement to the Company shall be addressed to the
Company in care of the Chief Executive Officer of the Company, and any notice to be given to Participant shall be addressed to Participant at the address given beneath Participant's signature on the
Grant Notice. By a notice given pursuant to this Section 5.3, either party may hereafter designate a different address for notices to be given to that party. Any notice which is required to be
given to Participant shall, if Participant is then deceased, be given to the person entitled to exercise his or her Award pursuant to Section 4.1 by written notice under this
Section 5.3. Any notice shall be deemed duly given when sent via email or when sent by certified mail (return receipt requested) and deposited (with postage prepaid) in a post office or branch
post office regularly maintained by the United States Postal Service. 

        5.4    Titles.    Titles are provided herein for convenience only and are not to serve as a basis for interpretation
or construction of this Agreement. 

        5.5    Governing Law; Severability.    This Agreement shall be administered, interpreted and enforced under the laws
of the State of California without regard to conflicts of laws thereof. Should any provision of this Agreement be determined by a court of law to be illegal or unenforceable, the other provisions
shall nevertheless remain effective and shall remain enforceable. 

        5.6    Compliance with Laws and Regulations.    

        (a)   The
exercise of this Award shall be subject to compliance by the Company and Participant with all applicable requirements of law relating thereto. 

        (b)   The
exercise of this Award shall be subject to compliance by the Company and Participant with all applicable federal and state laws, rules and regulations (including but
not limited to state and 

A-3

 

federal
securities law) and to such approvals by any listing, regulatory or governmental authority as may, in the opinion of counsel for the Company, be necessary or advisable in connection therewith. 

        (c)   The
inability of the Company to obtain approval from any regulatory body having authority deemed by the Company to be necessary for the issuance or exercise of this
Award shall relieve the Company of any liability with respect to such right, and this Award shall become null and void. The Company, however, shall use its best efforts to obtain all such approvals. 

        5.7    Amendments.    Except as otherwise provided under the Plan, this Agreement may not be modified, amended or
terminated except by an instrument in writing, signed by Participant or such other person as may be permitted to exercise the Award pursuant to Section 4.1 and by a duly authorized
representative of the Company. 

        5.8    No Employment Rights.    If Participant is an Employee, nothing in the Plan or this Agreement shall confer upon
Participant any right to continue in the employ of the Company or any Parent or Subsidiary or shall interfere with or restrict in any way the rights of the Company or any Parent or Subsidiary, which
are expressly reserved, to discharge Participant at any time for any reason whatsoever,
with or without cause, except to the extent expressly provided otherwise in a written agreement between the Company and Participant. 

        5.9    Successors and Assigns.    The Company may assign any of its rights under this Agreement to single or multiple
assignees, and this Agreement shall inure to the benefit of the successors and assigns of the Company. Subject to the restrictions on transfer herein set forth, this Agreement shall be binding upon
Participant and his or her heirs, executors, administrators, successors and assigns. 

A-4

	 	 	OFFICERS AND

KEY INDIVIDUALS

EXHIBIT B  

 NOTICE OF EXERCISE  

        Effective as of today,                        ,
        , the undersigned ("Participant") hereby notifies BreitBurn Energy Company L.P. (the "Company") of
Participant's election to exercise his or her outstanding Award with respect to the number of Unit Appreciation Rights specified below. The Award was granted under and pursuant to the BreitBurn Energy
Company L.P. Unit Appreciation Plan for Officers and Key Individuals (the "Plan") and memorialized by a Unit Appreciation Rights Grant Notice, dated as
of                        , 2006 (the "Grant Notice"),
and a Unit Appreciation Rights Agreement (the "Agreement"). Capitalized terms used herein without definition shall have the meanings given in the Agreement. 

	Grant Date:	 	 	 	, 2006
	 	 	 	
	 
	
Number of Unit Appreciation Rights as to which the Award is being Exercised:	
 	

 	

 	

 
	 	 	 	

	
Base Price per Appreciation Right:	
 	

$	

 	

 
	 	 	 	

	 	 	 	 	 

        1.    Representations of Participant.    Participant acknowledges that Participant has received, read and understood
the Plan, the Grant Notice and the Agreement. Participant agrees to abide by and be bound by their terms and conditions. 

        2.    No Rights of Ownership.    Participant acknowledges that the exercise of the Unit Appreciation Rights shall
entitle him or her only to the cash payment provided by the terms of the Agreement and that Participant shall not have any rights of ownership with respect to any Partnership Interests by reason of
the grant or exercise of this Award, and Participant shall have no voting, distribution, liquidation or other similar rights with respect to the Company or of a holder of Partnership Interests in the
Company. 

        3.    Tax Consultation.    Participant understands that there are tax consequences to Participant as a result of
Participant's exercise of the Award. Participant represents that Participant has consulted with any tax consultants Participant deems advisable in connection with the exercise of the Award and that
Participant is not relying on the Company for any tax advice. 

        4.    Entire Agreement.    The Plan, the Grant Notice and the Agreement are incorporated herein by reference. This
Exercise Notice, the Plan, the Grant Notice and the Agreement constitute the entire agreement of the parties and supersede in their entirety all prior undertakings and agreements of the Company and
Participant with respect to the subject matter hereof. 

	 	 	 	SUBMITTED BY:

PARTICIPANT
	

 	

 	
 	

By:	

 
	 	 	 	 	

	

 	

 	
 	

Print Name:	

 
	 	 	 	 	

	

 	

 	
 	

Address:	

  
  

EXHIBIT C  

 BREITBURN ENERGY COMPANY L.P.

UNIT APPRECIATION PLAN

FOR OFFICERS AND KEY INDIVIDUALS  

LONG TERM INCENTIVE PLAN AGREEMENT

                        , 2006  

BETWEEN:  

BreitBurn Energy Company L.P., a Delaware limited partnership having its head office in Los Angeles, California (the
"Company") 

AND:  

James G. Jackson, of the City of Pacific Palisades in the State of  California (the "Service Provider") 

Recitals  

	A.
	The
Company has adopted a Long Term Incentive Plan ("LTIP" or the "Plan") for the
employees, officers, directors and certain consultants of the Company and its Subsidiaries for the purposes set forth in the Plan.

	B.
	The
Company wishes to grant Awards as set forth herein to the Service Provider pursuant to the Plan. 

The parties agree as follows:  

ARTICLE 1

GRANT OF INCENTIVE AWARDS  

1.1    Any
terms used herein and not otherwise defined shall have the meanings ascribed thereto in the Plan. 

1.2    The
Company hereby grants to the Service Provider a Performance Award of                        Incentive Units, subject to the terms
of this Agreement and the Plan. The amount the Service
Provider shall be entitled to shall be calculated in accordance with the Plan based on such number of Incentive Units and the terms and conditions of the Plan. 

ARTICLE 2

TERMS AND CONDITIONS OF AWARDS  

2.1    All
adjustments to the Performance Award shall be made in accordance with the Plan. 

2.2    The
Awards described herein are made pursuant to and subject to the terms and conditions of the Plan. Where an inconsistency exists between the provisions of this Agreement and the
Plan, the provisions of this Agreement as it may be amended from time to time shall prevail. It is understood and agreed by the parties hereto that questions may arise as to the interpretation,
construction or enforcement of this Agreement and the Plan and the parties are desirous of having the Administrator determine any such question of interpretation, construction or enforcement. It is,
therefore, understood and agreed by and between the parties hereto that any question arising under the terms of this Agreement and the Plan as to interpretation, construction or enforcement shall be
referred to the Administrator and their majority decision shall be final and binding on both of the parties hereto. 

2.3    The
Service Provider acknowledges that he or she shall have no right hereunder or under the Plan to receive Units, or any other securities of the Trust or any of its affiliates. This
Agreement only entitles the Service Provider to a cash amount determined and payable pursuant to the terms of the Plan. 

 

ARTICLE 3

MISCELLANEOUS  

3.1    The
Service Provider shall not assign or transfer this Agreement either in whole or in part. Any purported assignment or transfer in contravention of this section will cause this
Agreement to become null and void and of no further force or effect. 

3.2    Except
as otherwise set forth in the Plan, this Agreement shall be binding upon and endure to the benefit of the heirs, executors, administrators and successors of the Service
Provider and the successors of the Company respectively. 

3.3    This
Agreement shall be administered, interpreted and enforced under the laws of the State of California without regard to that state's conflict-of-law rules.
Should any provision of this Agreement be determined by a court of law to be illegal or unenforceable, the other provisions shall nevertheless remain effective and shall remain enforceable. 

3.4    Except
as otherwise provided under the Plan, this Agreement may not be modified, amended or terminated except by an instrument in writing, signed by the Service Provider and by a duly
authorized representative of the Company. 

3.5    Nothing
in the Plan or this Agreement shall confer upon the Service Provider any right to continue in the employ of the Company or any Parent or Subsidiary or shall interfere with or
restrict in any way the rights of the Company or any Parent or Subsidiary, which are expressly reserved, to discharge the Service Provider at any time for any reason whatsoever, with or without cause,
except to the extent expressly provided otherwise in a written agreement between the Company and the Service Provider. 

3.6    This
Agreement and the Plan represent the entire agreement between the parties relating to the subject matter hereof. 

3.7    This
Agreement and the date of the grant of Awards set forth herein shall be effective as of the date set forth above. 

Signature page follows.  

2

 

IN WITNESS WHEREOF the parties have executed and delivered this Agreement effective as of the date first written above. 

	 	 	 	BreitBurn Energy Company L.P.
	

 	
 	

 	

Per:	

 
	 	 	 	 	
 Name:

Title:
	SIGNED AND	 	)	 	 
	DELIVERED in the presence of:	 	)	 	 
	 	 	)	 	 
	 	 	)	 	 
	
	 	)	

	Witness	 	)	James G. Jackson

3

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00110-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00110-of-00352.parquet"}]]