Document:

Exhibit 4.3

 

REGISTRATION
RIGHTS AGREEMENT

 

AMONG

 

PACIFIC ENERGY
PARTNERS, L. P.,

 

PACIFIC ENERGY
FINANCE CORPORATION,

 

THE GUARANTORS

 

AND

 

THE INITIAL
PURCHASERS

 

6 1⁄4 % Senior
Notes due 2015

 

 

Dated: September 23,
2005

 

 

PACIFIC ENERGY
PARTNERS, L.P.

(a Delaware limited partnership)

 

PACIFIC ENERGY
FINANCE CORPORATION

(a Delaware corporation)

 

$150,000,000

6 1⁄4 % Senior Notes due 2015

 

REGISTRATION
RIGHTS AGREEMENT

 

September 23, 2005

 

LEHMAN
BROTHERS INC.

BANC
OF AMERICA SECURITIES LLC

CITIGROUP
GLOBAL MARKETS INC.

BNP
PARIBAS SECURITIES CORP.

SCOTIA
CAPITAL (USA) INC.

 

c/o
LEHMAN BROTHERS INC.

745 Seventh Avenue

New York, New York  10019

 

Dear Sirs:

 

Pacific Energy Partners, L.P., a Delaware limited
partnership (the “Partnership”),
Pacific Energy Finance Corporation, a Delaware corporation (“Finance Corp.” and together with the
Partnership, the “Issuers”), and
the Guarantors listed on the signature page hereto (the “Guarantors”), propose to issue and sell to
you (the “Initial Purchasers”),
upon the terms set forth in a purchase agreement dated September 15, 2005
(the “Purchase Agreement”),
$150,000,000 aggregate principal amount of their 6 1⁄4 % Senior Notes due 2015
(the “Initial Securities”). The
Initial Securities will be issued pursuant to an Indenture, to be dated as of
the date hereof (the “Indenture”),
among the Issuers, the Guarantors and Wells Fargo Bank, N.A. as trustee (the “Trustee”). The Issuers and the Guarantors
are collectively referred to herein as the “Company.”
To satisfy a condition to the obligations of the Initial Purchasers under the
Purchase Agreement, the Issuers agree with the Initial Purchasers, for the
benefit of the Initial Purchasers and the subsequent holders of the Securities
(as defined below) (collectively the “Holders”),
as follows:

 

1.                                       Registered Exchange Offer. Unless not
permitted by applicable law (after the Company has complied with the ultimate
paragraph of this Section 1), the Company shall prepare and, not later
than 90 days (such 90th day being a “Filing Deadline”)
after the date on which the Initial Purchasers purchase the Initial Securities
pursuant to the Purchase Agreement (the “Closing Date”),
file with the Securities and Exchange Commission (the “Commission”)
a registration statement (the “Exchange Offer Registration
Statement”) on an appropriate form under the Securities Act of 1933,
as amended (the

 

1

 

“Securities Act”),
with respect to a proposed offer (the “Registered Exchange Offer”)
to the Holders of Transfer Restricted Securities (as defined in Section 6
hereof), who are not prohibited by any law or policy of the Commission from
participating in the Registered Exchange Offer, to issue and deliver to such
Holders, in exchange for the Initial Securities, a like aggregate principal
amount of debt securities of the Issuers issued under the Indenture, identical
in all material respects to the Initial Securities and registered under the
Securities Act (the “Exchange Securities”).
The Company shall (i) use commercially reasonable efforts to cause such
Exchange Offer Registration Statement to become effective under the Securities
Act within 270 days after the Closing Date (such 270th day being an “Effectiveness Deadline”) and (ii) keep the Exchange
Offer Registration Statement effective for not less than 30 days (or longer, if
required by applicable law) after the date notice of the Registered Exchange
Offer is mailed to the Holders (such period being called the “Exchange Offer Registration Period”).

 

If the Company commences the Registered Exchange Offer, the Company (i) will
be entitled to consummate the Registered Exchange Offer 30 days after such
commencement (provided that the Company has accepted all the Initial Securities
theretofore validly tendered in accordance with the terms of the Registered
Exchange Offer) and (ii) will be required to consummate the Registered
Exchange Offer as soon as practicable after the date on which the Exchange
Offer Registration Statement is declared effective but no later than the 40th
Business Day after such effectiveness date (the “Consummation Deadline”).

 

As soon as practicable after the declaration of the effectiveness of
the Exchange Offer Registration Statement, the Company shall commence the
Registered Exchange Offer, it being the objective of such Registered Exchange
Offer to enable each Holder of Transfer Restricted Securities electing to
exchange the Initial Securities for Exchange Securities (assuming that such
Holder is not an affiliate of the Company within the meaning of the Securities
Act, acquires the Exchange Securities in the ordinary course of such Holder’s
business and has no arrangements with any person to participate in the
distribution of the Exchange Securities and is not prohibited by any law or
policy of the Commission from participating in the Registered Exchange Offer)
to trade such Exchange Securities from and after their receipt without any
limitations or restrictions under the Securities Act and without material
restrictions under the securities laws of the several states of the United
States.

 

The Company acknowledges that, pursuant to current interpretations by
the Commission’s staff of Section 5 of the Securities Act, in the absence
of an applicable exemption therefrom, (i) each Holder which is a broker-dealer
electing to exchange Initial Securities, acquired for its own account as a
result of market making activities or other trading activities, for Exchange
Securities (an “Exchanging Dealer”),
is required to deliver a prospectus containing the information set forth in (a) Annex
A hereto on the cover, (b) Annex B hereto in the “Exchange Offer
Procedures” section and the “Purpose of the Exchange Offer” section, and (c) Annex
C hereto in the “Plan of Distribution” section of such prospectus in
connection with a sale of any such Exchange Securities received by such
Exchanging Dealer pursuant to the Registered Exchange Offer and (ii) an
Initial Purchaser that elects to sell Securities (as defined below) acquired in
exchange

 

2

 

for Initial Securities constituting any portion of an unsold allotment,
is required to deliver a prospectus containing the information required by Item
507 or 508 of Regulation S-K under the Securities Act, as applicable, in
connection with such sale.

 

The Company shall use commercially reasonable efforts to keep the
Exchange Offer Registration Statement effective and to amend and supplement the
prospectus contained therein, in order to permit such prospectus to be lawfully
delivered by all persons subject to the prospectus delivery requirements of the
Securities Act for such period of time as such persons must comply with such
requirements in order to resell the Exchange Securities; provided, however,
that (i) in the case where such prospectus and any amendment or supplement
thereto must be delivered by an Exchanging Dealer or an Initial Purchaser, such
period shall be the lesser of 180 days and the date on which all Exchanging
Dealers and the Initial Purchasers have sold all Exchange Securities held by
them (unless such period is extended pursuant to Section 3(j) below) and (ii) the
Company shall make such prospectus and any amendment or supplement thereto
available to any broker-dealer for use in connection with any resale of any
Exchange Securities for a period of 180-days after the consummation of the
Registered Exchange Offer (or such shorter period during which participating
broker-dealers are required by law to deliver such prospectus).

 

If, upon consummation of the Registered Exchange Offer, any Initial
Purchaser holds Initial Securities acquired by it as part of its initial
distribution, the Company, simultaneously with the delivery of the Exchange
Securities pursuant to the Registered Exchange Offer, shall issue and deliver
to such Initial Purchaser upon the written request of such Initial Purchaser,
in exchange (the “Private Exchange”)
for the Initial Securities held by such Initial Purchaser, a like principal
amount of debt securities of the Issuers issued under the Indenture and identical
in all material respects to the Initial Securities (the “Private Exchange Securities”). The Initial
Securities, the Exchange Securities and the Private Exchange Securities are
herein collectively called the “Securities.”

 

In connection with the Registered Exchange Offer, the Company shall:

 

a.                                       mail
to each Holder a copy of the prospectus forming part of the Exchange Offer
Registration Statement, together with an appropriate letter of transmittal;

 

b.                                      keep
the Registered Exchange Offer open for not less than 30 days (or longer, if
required by applicable law) after the date notice thereof is mailed to the
Holders;

 

c.                                       utilize
the services of a depositary for the Registered Exchange Offer, which may be
the Trustee or an affiliate of the Trustee;

 

d.                                      permit
Holders to withdraw tendered Securities at any time prior to the close of
business, New York time, on the last business day on which the Registered
Exchange Offer shall remain open; and

 

e.                                       otherwise
comply with all applicable laws.

 

3

 

As soon as practicable after the close of the Registered Exchange Offer
or the Private Exchange, as the case may be, the Company shall:

 

(x)                                   accept for exchange
all the Securities validly tendered and not withdrawn pursuant to the
Registered Exchange Offer and the Private Exchange; and

 

(y)                                 cause the Trustee to
deliver promptly to each Holder of the Initial Securities, Exchange Securities
or Private Exchange Securities, as the case may be, equal in principal amount
to the Initial Securities of such Holder so accepted for exchange.

 

The Indenture will provide that the Exchange Securities will not be
subject to the transfer restrictions set forth in the Indenture and that all
the Securities will vote and consent together on all matters as one class and
that none of the Securities will have the right to vote or consent as a class
separate from one another on any matter.

 

Interest on each Exchange Security and Private Exchange Security issued
pursuant to the Registered Exchange Offer and in the Private Exchange will
accrue from the last interest payment date on which interest was paid on the
Initial Securities surrendered in exchange therefor or, if no interest has been
paid on the Initial Securities, from the date of original issue of the Initial
Securities.

 

Each Holder participating in the Registered Exchange Offer shall be
required to represent to the Company that at the time of the consummation of
the Registered Exchange Offer (i) any Exchange Securities received by such
Holder will be acquired in the ordinary course of business, (ii) such
Holder will have no arrangements or understanding with any person to
participate in the distribution of the Initial Securities or the Exchange
Securities within the meaning of the Securities Act, (iii) such Holder is
not an “affiliate,” as defined in Rule 405 of the Securities Act, of the
Company or if it is an affiliate, such Holder will comply with the registration
and prospectus delivery requirements of the Securities Act to the extent
applicable, (iv) if such Holder is not a broker-dealer, that it is not
engaged in, and does not intend to engage in, the distribution of the Exchange
Securities and (v) if such Holder is a broker-dealer, that it will receive
Exchange Securities for its own account in exchange for Initial Securities that
were acquired as a result of market-making activities or other trading
activities and that it will be required to acknowledge that it will deliver a
prospectus in connection with any resale of such Exchange Securities.

 

Notwithstanding any other provisions hereof, the Company will ensure
that (i) any Exchange Offer Registration Statement and any amendment
thereto and any prospectus forming part thereof and any supplement thereto
complies in all material respects with the Securities Act and the rules and
regulations thereunder, (ii) any Exchange Offer Registration Statement and
any amendment thereto does not, when it becomes effective, contain an untrue
statement of a material fact or omit to state a material fact required to be
stated therein or necessary to make the statements therein not misleading and (iii) any
prospectus forming part of any Exchange Offer Registration Statement, and any
supplement to such prospectus, does not include an untrue statement of a material
fact or

 

4

 

omit to state a material fact necessary in order to make the statements
therein, in the light of the circumstances under which they were made, not
misleading.

 

If following the date hereof there has been announced a change in
Commission policy with respect to exchange offers that in the reasonable
opinion of counsel to the Company raises a substantial question as to whether
the Registered Exchange Offer is permitted by applicable federal law, the
Company will seek a no-action letter or other favorable decision from the
Commission allowing the Company to consummate the Registered Exchange Offer.
The Company will pursue the issuance of such a decision to the Commission staff
level but shall not be required to take commercially unreasonable action to
effectuate a change of Commission policy. In connection with the foregoing, the
Company will take all such other actions as may be requested by the Commission
or otherwise required in connection with the issuance of such decision,
including without limitation (i) participating in telephonic conferences
with the Commission, (ii) delivering to the Commission staff an analysis
prepared by counsel to the Company setting forth the legal bases, if any, upon
which such counsel has concluded that the Registered Exchange Offer should be
permitted and (iii) diligently pursuing a resolution (which need not be
favorable) by the Commission staff.

 

2.                                       Shelf Registration. If, (i) because of any change in law or in
applicable interpretations thereof by the staff of the Commission, the Company
is not permitted to effect a Registered Exchange Offer, as contemplated by Section 1
hereof, (ii) any Initial Purchaser so requests within 90 days following
consummation of the Registered Exchange Offer with respect to the Initial
Securities (or the Private Exchange Securities) not eligible to be exchanged
for Exchange Securities in the Registered Exchange Offer and held by it
following consummation of the Registered Exchange Offer or (iii) any
Holder (other than an Exchanging Dealer) is not eligible to participate in the
Registered Exchange Offer or, in the case of any Holder (other than an
Exchanging Dealer) that participates in the Registered Exchange Offer, such
Holder does not receive freely tradable Exchange Securities on the date of the
exchange and any such Holder so requests and the prospectus contained in the
Exchange Offer Registration Statement is not available for resales by such
Holder, the Company shall take the following actions (the date on which any of
the conditions described in the foregoing clauses (i) through (iii) occur,
including in the case of clause (iii) the receipt of the required notice,
being a “Trigger Date”):

 

a.                                       The
Company shall (but in no event more than 75 days after the Trigger Date (such
75th day being a “Shelf Filing Deadline”))
file with the Commission and thereafter use commercially reasonable efforts to
cause to be declared effective on or prior to the 150th day after the Trigger
Date (such 150th day being an “Effectiveness Deadline”)
a registration statement (the “Shelf Registration
Statement” and, together with the Exchange Offer Registration
Statement, a “Registration Statement”) on an
appropriate form under the Securities Act relating to the offer and sale of the
Transfer Restricted Securities by the Holders thereof from time to time in
accordance with the methods of distribution set forth in the Shelf Registration
Statement and Rule 415 under the Securities Act (hereinafter, the “Shelf Registration”); provided, however, that no Holder
(other

 

5

 

than an Initial Purchaser)
shall be entitled to have the Securities held by it covered by such Shelf
Registration Statement unless such Holder agrees in writing to be bound by all
the provisions of this Agreement applicable to such Holder.

 

b.                                      The
Company shall use its commercially reasonable efforts to keep the Shelf
Registration Statement continuously effective in order to permit the prospectus
included therein to be lawfully delivered by the Holders of the relevant
Securities, for a period of two years (or for such longer period if extended
pursuant to Section 3(j)
below) from the date of its effectiveness or such shorter period that will
terminate when all the Securities covered by the Shelf Registration Statement (i) have
been sold pursuant thereto or (ii) are no longer subject to restrictions
on resale pursuant to Rule 144 under the Securities Act, or any successor rule thereof.
The Company shall be deemed not to have used commercially reasonable efforts to
keep the Shelf Registration Statement effective during the requisite period if
it voluntarily takes any action that would result in Holders of Securities
covered thereby not being able to offer and sell such Securities during that
period, unless such action is required by applicable law; provided, however, if
such Shelf Registration Statement fails to remain effective solely because of
the making, by the Company or any of its subsidiaries, of a material acquisition
that requires financial statements to be filed with the Commission, the Company
shall be deemed to have used commercially reasonable efforts to keep the Shelf
Registration Statement effective during the requisite period so long as the
period of time such Shelf Registration Statement is not effective does not
exceed sixty (60) days.

 

c.                                       Notwithstanding
any other provisions of this Agreement to the contrary, the Company shall cause
the Shelf Registration Statement and the related prospectus and any amendment
or supplement thereto, as of the effective date of the Shelf Registration
Statement, amendment or supplement, (i) to comply in all material respects
with the applicable requirements of the Securities Act and the rules and
regulations of the Commission and (ii) not to contain any untrue statement
of a material fact or omit to state a material fact required to be stated
therein or necessary in order to make the statements therein, in light of the
circumstances under which they were made, not misleading.

 

3.                                       Registration Procedures.
In connection with any Shelf Registration contemplated by Section 2 hereof
and, to the extent applicable, any Registered Exchange Offer contemplated by Section 1
hereof, the following provisions shall apply:

 

a.                                       The
Company shall (i) furnish to each Initial Purchaser, prior to the filing
thereof with the Commission, a copy of the Registration Statement and each
amendment thereof and each supplement, if any, to the prospectus included
therein and, in the event that an Initial Purchaser (with respect to any
portion of an unsold allotment from the original offering) is participating in
the Registered Exchange Offer or the Shelf Registration Statement, the Company
shall use commercially reasonable efforts to reflect in each such document,
when so filed with the Commission, such comments as such Initial Purchaser
reasonably may propose; (ii) include the

 

6

 

information set forth in Annex
A hereto on the cover, in Annex B hereto in the “Exchange Offer Procedures” section and
the “Purpose of the Exchange Offer” section and in Annex C hereto in the “Plan
of Distribution” section of the prospectus forming a part of the Exchange
Offer Registration Statement and include the information set forth in Annex D
hereto in the letter of transmittal delivered pursuant to the Registered
Exchange Offer; (iii) if requested by an Initial Purchaser, include the
information required by Item 507 or 508 of Regulation S-K under the Securities
Act, as applicable, in the prospectus forming a part of the Exchange Offer
Registration Statement; (iv) include within the prospectus contained in
the Exchange Offer Registration Statement a section entitled “Plan of
Distribution,” which shall contain a summary statement of the positions taken
or policies made by the staff of the Commission with respect to the potential “underwriter”
status of any broker-dealer that is the beneficial owner (as defined in Rule 13d-3
under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) of Exchange Securities received by such
broker-dealer in the Registered Exchange Offer (a “Participating
Broker-Dealer”), whether such positions or policies have been
publicly disseminated by the staff of the Commission or such positions or
policies, in the reasonable judgment of the Company based upon advice of
counsel (which may be in-house counsel), represent the prevailing views of the
staff of the Commission; and (v) in the case of a Shelf Registration
Statement, include the names of the Holders who propose to sell Securities
pursuant to the Shelf Registration Statement as selling securityholders.

 

b.                                      The
Company shall give written notice to the Initial Purchasers, the Holders of the
Securities (with respect to any Shelf Registration Statement) and any
Participating Broker-Dealer from whom the Company has received prior written
notice that it will be a Participating Broker-Dealer in the Registered Exchange
Offer (which notice pursuant to clauses (ii)-(v) hereof shall be
accompanied by an instruction to suspend the use of the prospectus until the
requisite changes have been made):

 

(i)                                   when the Registration Statement or any
amendment thereto has been filed with the Commission;

 

(ii)                                when the Registration Statement
or any post-effective amendment thereto has become effective;

 

(iii)                             of any request by the Commission
for amendments or supplements to the Registration Statement or the prospectus
included therein or for additional information;

 

(iv)                            of the issuance by the
Commission of any stop order suspending the effectiveness of the Registration
Statement or the initiation of any proceedings for that purpose;

 

(v)                               of the receipt by the Company or
its legal counsel of any notification with respect to the suspension of the
qualification of the Securities for sale in

 

7

 

any jurisdiction or the initiation or
threatening of any proceeding for such purpose; and

 

(vi)                            of the happening of any event
that requires the Company to make changes in the Registration Statement or the
prospectus in order that the Registration Statement or the prospectus do not
contain an untrue statement of a material fact nor omit to state a material
fact required to be stated therein or necessary to make the statements therein
(in the case of the prospectus, in light of the circumstances under which they
were made) not misleading.

 

c.                                       The
Company shall make every reasonable effort to obtain the withdrawal at the
earliest possible time, of any order suspending the effectiveness of the
Registration Statement.

 

d.                                      The
Company shall furnish to each Holder of Securities included within the coverage
of the Shelf Registration, without charge, at least one copy of the Shelf
Registration Statement and any post-effective amendment thereto, including
financial statements and schedules, and, if the Holder so requests in writing,
all exhibits thereto (including those, if any, incorporated by reference).

 

e.                                       The
Company shall deliver to each
Exchanging Dealer and each Initial Purchaser, and to any other Holder who so
requests, without charge, at least one copy of the Exchange Offer Registration
Statement and any post-effective amendment thereto, including financial
statements and schedules, and, if any Initial Purchaser or any such Holder requests,
all exhibits thereto (including those incorporated by reference).

 

f.                                         The
Company shall, during the Shelf Registration Period, deliver to each Holder of
Securities included within the coverage of the Shelf Registration, without
charge, as many copies of the prospectus (including each preliminary
prospectus) included in the Shelf Registration Statement and any amendment or
supplement thereto as such person may reasonably request. The Company consents,
subject to the provisions of this Agreement, to the use of the prospectus or
any amendment or supplement thereto by each of the selling Holders of the
Securities in connection with the offering and sale of the Securities covered
by the prospectus, or any amendment or supplement thereto, included in the Shelf
Registration Statement.

 

g.                                      The
Company shall deliver to each Initial Purchaser, any Exchanging Dealer, any
Participating Broker-Dealer and such other persons required to deliver a
prospectus following the Registered Exchange Offer, without charge, as many
copies of the final prospectus included in the Exchange Offer Registration
Statement and any amendment or supplement thereto as such persons may
reasonably request. The Company consents, subject to the provisions of this
Agreement, to the use of the prospectus or any amendment or supplement thereto
by any Initial Purchaser, if necessary, any Participating Broker-Dealer and
such

 

8

 

other persons required to
deliver a prospectus following the Registered Exchange Offer in connection with
the offering and sale of the Exchange Securities covered by the prospectus, or
any amendment or supplement thereto, included in such Exchange Offer
Registration Statement.

 

h.                                      Prior
to any public offering of the Securities pursuant to any Shelf Registration
Statement the Company shall register or qualify or cooperate with the Holders
of the Securities included therein and their respective counsel in connection
with the registration or qualification of the Securities for offer and sale
under the securities or “blue sky” laws of such states of the United States as
any Holder of the Securities reasonably requests in writing and do any and all
other acts or things necessary or advisable to enable the offer and sale in
such jurisdictions of the Securities covered by such Shelf Registration
Statement; provided, however, that the Company shall not be required to (i) qualify
generally to do business in any jurisdiction where it is not then so qualified
or (ii) take any action which would subject it to general service of
process or to taxation in any jurisdiction where it is not then so subject.

 

i.                                          The
Company shall cooperate with the Holders of the Securities to facilitate the
timely preparation and delivery of certificates representing the Securities to
be sold pursuant to any Registration Statement free of any restrictive legends.

 

j.                                          Upon
the occurrence of any event contemplated by paragraphs (ii) through (v) of
Section 3(b) above during the period for which the Company is
required to maintain an effective Registration Statement, the Company shall
promptly prepare and file a post-effective amendment to the Registration
Statement or a supplement to the related prospectus and any other required
document so that, as thereafter delivered to Holders of the Securities or
purchasers of Securities, the prospectus will not contain an untrue statement
of a material fact or omit to state any material fact necessary to make the
statements therein, in light of the circumstances under which they were made,
not misleading. If the Company notifies the Initial Purchasers, the Holders of
the Securities and any known Participating Broker-Dealer in accordance with
paragraphs (ii) through (v) of Section 3(b) above to
suspend the use of the prospectus until the requisite changes to the prospectus
have been made, then the Initial Purchasers, the Holders of the Securities and
any such Participating Broker-Dealers shall suspend use of such prospectus, and
the period of effectiveness of the Shelf Registration Statement provided for in
Section 2(b) above and the Exchange Offer Registration Statement
provided for in Section 1 above shall each be extended by the number of
days from and including the date of the giving of such notice to and including
the date when the Initial Purchasers, the Holders of the Securities and any
known Participating Broker-Dealer shall have received such amended or
supplemented prospectus pursuant to this Section 3(j).

 

k.                                       Not
later than the effective date of the applicable Registration Statement, the
Company will provide a CUSIP number for the Initial Securities, the Exchange
Securities or the Private Exchange Securities, as the case may be, and provide
the

 

9

 

applicable trustee with
certificates for the Initial Securities, the Exchange Securities or the Private
Exchange Securities, as the case may be, in a form eligible for deposit with
The Depository Trust Company.

 

l.                                          The
Partnership will comply with all rules and regulations of the Commission
to the extent and so long as they are applicable to the Registered Exchange
Offer or the Shelf Registration and will make generally available to its
security holders (or otherwise provide in accordance with Section 11(a) of
the Securities Act) an earnings statement satisfying the provisions of Section 11(a) of
the Securities Act, no later than 45 days after the end of a 12-month period
(or 90 days, if such period is a fiscal year) beginning with the first month of
the Partnership’s first fiscal quarter commencing after the effective date of
the Registration Statement, which statement shall cover such 12-month period.

 

m.                                    The
Company shall cause the Indenture to be qualified under the Trust Indenture Act
of 1939, as amended, in a timely manner and containing such changes, if any, as
shall be necessary for such qualification. In the event that such qualification
would require the appointment of a new trustee under the Indenture, the Company
shall appoint a new trustee thereunder pursuant to the applicable provisions of
the Indenture.

 

n.                                      The
Company may require each Holder of Securities to be sold pursuant to the Shelf
Registration Statement to furnish to the Company such information regarding the
Holder and the distribution of the Securities as the Company may from time to
time reasonably require for inclusion in the Shelf Registration Statement,
including requiring the Holder to properly complete and execute such selling
Security Holder notice and questionnaires, and any amendments or supplements
thereto, as the Company may reasonably deem necessary or appropriate, and the
Company may exclude from such registration the Securities of any Holder that
fails to furnish such information within a reasonable time after receiving such
request.

 

o.                                      The
Company shall enter into such customary agreements (including, if requested, an
underwriting agreement in customary form) and take all such other action, if
any, as any Holder of the Securities shall reasonably request in order to
facilitate the disposition of the Securities pursuant to any Shelf
Registration.

 

p.                                      In
the case of any Shelf Registration, the Company shall (i) make reasonably
available for inspection by the Holders of the Securities, any underwriter
participating in any disposition pursuant to the Shelf Registration Statement
and any attorney, accountant or other agent retained by the Holders of the
Securities or any such underwriter all relevant financial and other records,
pertinent corporate documents and properties of the Company and (ii) cause
the Company’s officers, directors, employees, accountants and auditors to
supply all relevant information reasonably requested by the Holders of the
Securities or any such underwriter, attorney, accountant or agent in connection
with the Shelf Registration Statement, in each case, as shall be reasonably
necessary to enable

 

10

 

such persons, to conduct a
reasonable investigation within the meaning of Section 11 of the
Securities Act; provided, however, that the foregoing inspection and
information gathering shall be coordinated on behalf of the Initial Purchasers
by Lehman Brothers Inc. and on behalf of the other parties, by one counsel
designated by and on behalf of such other parties as described in Section 4
hereof.

 

q.                                      In
the case of any Shelf Registration, the Company, if requested by any Holder of
Securities covered thereby, shall cause (i) its counsel to deliver an
opinion and updates thereof relating to the Securities in customary form
addressed to such Holders and the managing underwriters, if any, thereof and
dated, in the case of the initial opinion, the effective date of such Shelf
Registration Statement (it being agreed that the matters to be covered by such
opinion shall include, without limitation, the incorporation, organization or
formation and good standing of the Company and its subsidiaries; the
qualification of the Company and its subsidiaries to transact business as
foreign corporations, limited partnerships or limited liability companies; the
due authorization, execution and delivery of the relevant agreement of the type
referred to in Section 3(o) hereof; the due authorization, execution,
authentication and issuance, and the validity and enforceability, of the
applicable Securities; except as otherwise disclosed in the prospectus, the
absence of material legal or governmental proceedings involving the Company and
its subsidiaries; except as otherwise disclosed in the prospectus, the absence
of governmental approvals required to be obtained in connection with the Shelf
Registration Statement, the offering and sale of the applicable Securities, or
any agreement of the type referred to in Section 3(o) hereof; the
compliance as to form of such Shelf Registration Statement and any documents
incorporated by reference therein and of the Indenture with the requirements of
the Securities Act and the Trust Indenture Act, respectively; and, as of the
date of the opinion and as of the effective date of the Shelf Registration
Statement or most recent post-effective amendment thereto, as the case may be,
the absence from such Shelf Registration Statement and the prospectus included
therein, as then amended or supplemented, and from any documents incorporated
by reference therein of an untrue statement of a material fact or the omission
to state therein a material fact required to be stated therein or necessary to
make the statements therein not misleading (in the case of the prospectus and
any such documents, in light of the circumstances existing at the time that the
prospectus or such documents were filed with the Commission under the
Securities Act or the Exchange Act); (ii) its officers to execute and
deliver all customary documents and certificates and updates thereof requested
by any underwriters of the applicable Securities and (iii) its independent
public accountants and the independent public accountants with respect to any
other entity for which financial information is provided in the Shelf
Registration Statement to provide to the selling Holders of the applicable
Securities and any underwriter therefor a comfort letter in customary form and
covering matters of the type customarily covered in comfort letters in
connection with primary underwritten offerings, subject to receipt of
appropriate documentation as contemplated, and only if permitted, by Statement
of Auditing Standards No. 72.

 

11

 

r.                                         If
a Registered Exchange Offer or a Private Exchange is to be consummated, upon
delivery of the Initial Securities by Holders to the Company (or to such other
Person as directed by the Company) in exchange for the Exchange Securities or
the Private Exchange Securities, as the case may be, the Company shall mark, or
caused to be marked, on the Initial Securities so exchanged that such Initial
Securities are being canceled in exchange for the Exchange Securities or the
Private Exchange Securities, as the case may be; in no event shall the Initial
Securities be marked as paid or otherwise satisfied.

 

s.                                       In
the event that any broker-dealer registered under the Exchange Act shall
underwrite any Securities or participate as a member of an underwriting
syndicate or selling group or “assist in the distribution” (within the meaning
of the Conduct Rules (the “Rules”) of the
National Association of Securities Dealers, Inc. (“NASD”))
thereof, whether as a Holder of such Securities or as an underwriter, a
placement or sales agent or a broker or dealer in respect thereof, or
otherwise, the Company will assist such broker-dealer in complying with the
requirements of such Rules, including, without limitation, by (i) if such
Rules, including Rule 2720, shall so require, engaging a “qualified
independent underwriter” (as defined in Rule 2720) to participate in the
preparation of the Registration Statement relating to such Securities, to
exercise usual standards of due diligence in respect thereto and, if any
portion of the offering contemplated by such Registration Statement is an
underwritten offering or is made through a placement or sales agent, to
recommend the yield of such Securities, (ii) indemnifying any such
qualified independent underwriter to the extent of the indemnification of
underwriters provided in Section 5 hereof and (iii) providing such
information to such broker-dealer as may be required in order for such
broker-dealer to comply with the requirements of the Rules.

 

t.                                         The
Company shall use commercially reasonable efforts to take all other steps
necessary to effect the registration of the Securities covered by a
Registration Statement contemplated hereby.

 

4.                                       Registration Expenses.

 

a.                                       All
expenses incident to the Company’s performance of and compliance with this
Agreement will be borne by the
Company, regardless of whether a Registration Statement is ever filed or
becomes effective, including without limitation;

 

(i)                                   all registration and filing fees
and expenses;

 

(ii)                                all fees and expenses of
compliance with federal securities and state “blue sky” or securities laws;

 

(iii)                             all expenses of printing
(including printing of prospectuses), messenger and delivery services and
telephone;

 

(iv)                            all fees and disbursements of
counsel for the Company; and

 

12

 

(v)                               all fees and disbursements of
independent certified public accountants of the Company (including the expenses
of any special audit and comfort letters required by or incident to such
performance).

 

The Company will bear its internal expenses
(including, without limitation, all salaries and expenses of its officers and
employees performing legal or accounting duties), the expenses of any annual
audit and the fees and expenses of any person, including special experts,
retained by the Company.

 

b.                                      In
connection with any Registration Statement required by this Agreement, the
Company will reimburse the Initial Purchasers and the Holders of Transfer
Restricted Securities who are tendering Initial Securities in the Registered
Exchange Offer and/or selling or reselling Securities pursuant to the “Plan of
Distribution” contained in the Exchange Offer Registration Statement or the
Shelf Registration Statement, as applicable, for the reasonable fees and
disbursements of not more than one counsel, who shall be Vinson &
Elkins L.L.P. unless another firm shall be chosen by the Holders of a majority
in principal amount of the Transfer Restricted Securities for whose benefit
such Registration Statement is being prepared.

 

5.                                       Indemnification.

 

a.                                       The
Company agrees to indemnify and hold harmless each Holder of the Securities,
any Participating Broker-Dealer and each person, if any, who controls such
Holder or such Participating Broker-Dealer within the meaning of the Securities
Act or the Exchange Act (each Holder, any Participating Broker-Dealer and such
controlling persons are referred to collectively as the “Indemnified
Parties”) from and against any losses, claims, damages or
liabilities, joint or several, or any actions in respect thereof (including,
but not limited to, any losses, claims, damages, liabilities or actions
relating to purchases and sales of the Securities) to which each Indemnified
Party may become subject under the Securities Act, the Exchange Act or
otherwise, insofar as such losses, claims, damages, liabilities or actions
arise out of or are based upon (i) any untrue statement or alleged untrue
statement of a material fact contained in a Registration Statement or
prospectus or in any amendment or supplement thereto or in any preliminary
prospectus relating to a Shelf Registration, or (ii) the omission or
alleged omission to state in a Registration Statement or in any amendment
thereto a material fact required to be stated therein or necessary to make the
statements therein not misleading, or (iii) the omission or alleged
omission to state in a prospectus or in any amendment or supplement thereto a
material fact, necessary to make the statements therein, in light of the
circumstances, not misleading, and shall reimburse, as incurred, the
Indemnified Parties for any legal or other expenses reasonably incurred by them
in connection with investigating or defending any such loss, claim, damage,
liability or action in respect thereof; provided, however, that (i) the
Company shall not be liable in any such case to the extent that such loss,
claim, damage or liability arises out of or is based upon any untrue statement
or alleged untrue statement or omission or alleged omission

 

13

 

made in a Registration
Statement or prospectus or in any amendment or supplement thereto or in any
preliminary prospectus relating to a Shelf Registration in reliance upon and in
conformity with written information furnished to the Company by or on behalf of
such Holder specifically for inclusion therein and (ii) with respect to
any untrue statement or omission or alleged untrue statement or omission made
in any preliminary prospectus relating to a Shelf Registration Statement, the
indemnity agreement contained in this subsection (a) shall not inure
to the benefit of any Holder or Participating Broker-Dealer from whom the person
asserting any such losses, claims, damages or liabilities purchased the
Securities concerned, to the extent that a prospectus relating to such
Securities was required to be delivered by such Holder or Participating
Broker-Dealer under the Securities Act in connection with such purchase and any
such loss, claim, damage or liability of such Holder or Participating
Broker-Dealer results from the fact that there was not sent or given to such
person, at or prior to the written confirmation of the sale of such Securities
to such person, a copy of the final prospectus if the Company had previously
furnished copies thereof to such Holder or Participating Broker-Dealer;
provided further, however, that this indemnity agreement will be in addition to
any liability which the Company may otherwise have to such Indemnified Party.

 

b.                                      Each
Holder of the Securities, severally and not jointly, will indemnify and hold
harmless the Company and each person, if any, who controls the Company within
the meaning of the Securities Act or the Exchange Act from and against any
losses, claims, damages or liabilities or any actions in respect thereof, to
which the Company or any such controlling person may become subject under the
Securities Act, the Exchange Act or otherwise, insofar as such losses, claims,
damages, liabilities or actions arise out of or are based upon any untrue
statement or alleged untrue statement of a material fact contained in a
Registration Statement or prospectus or in any amendment or supplement thereto
or in any preliminary prospectus relating to a Shelf Registration, or arise out
of or are based upon the omission or alleged omission to state therein a
material fact necessary to make the statements therein not misleading, but in
each case only to the extent that the untrue statement or omission or alleged
untrue statement or omission was made in reliance upon and in conformity with
written information pertaining to such Holder and furnished to the Company by
or on behalf of such Holder specifically for inclusion therein; and, subject to
the limitation set forth immediately preceding this clause, shall reimburse, as
incurred, the Company for any legal or other expenses reasonably incurred by
the Company or any such controlling person in connection with investigating or
defending any loss, claim, damage, liability or action in respect thereof. This
indemnity agreement will be in addition to any liability which such Holder may
otherwise have to the Company or any of its controlling persons.

 

c.                                       Promptly
after receipt by an indemnified party under this Section 5 of notice of
the commencement of any action or proceeding (including a governmental
investigation), such indemnified party will, if a claim in respect thereof is
to be made against the indemnifying party under this Section 5, notify the
indemnifying

 

14

 

party of the commencement
thereof; but the omission so to notify the indemnifying party will not, in any
event, relieve the indemnifying party from any obligations to any indemnified
party other than the indemnification obligation provided in paragraph (a) or
(b) above. In case any such action is brought against any indemnified
party, and it notifies the indemnifying party of the commencement thereof, the
indemnifying party will be entitled to participate therein and, to the extent
that it may wish, jointly with any other indemnifying party similarly notified,
to assume the defense thereof, with counsel reasonably satisfactory to such
indemnified party (who shall not, except with the consent of the indemnified
party, be counsel to the indemnifying party), and after notice from the
indemnifying party to such indemnified party of its election so to assume the
defense thereof the indemnifying party will not be liable to such indemnified
party under this Section 5 for any legal or other expenses, other than
reasonable costs of investigation, subsequently incurred by such indemnified
party in connection with the defense thereof. No indemnifying party shall,
without the prior written consent of the indemnified party, effect any
settlement of any pending or threatened action in respect of which any
indemnified party is or could have been a party and indemnity could have been
sought hereunder by such indemnified party unless such settlement (i) includes
an unconditional release of such indemnified party from all liability on any
claims that are the subject matter of such action, and (ii) does not
include a statement as to or an admission of fault, culpability or a failure to
act by or on behalf of any indemnified party.

 

d.                                      If
the indemnification provided for in this Section 5 is unavailable or
insufficient to hold harmless an indemnified party under subsections (a) or
(b) above, then each indemnifying party shall contribute to the amount
paid or payable by such indemnified party as a result of the losses, claims,
damages or liabilities (or actions in respect thereof) referred to in subsection (a) or
(b) above in such proportion as is appropriate to reflect the relative
fault of the indemnifying party or parties on the one hand and the indemnified
party on the other in connection with the statements or omissions that resulted
in such losses, claims, damages or liabilities (or actions in respect thereof)
as well as any other relevant equitable considerations. The relative fault of
the parties shall be determined by reference to, among other things, whether
the untrue or alleged untrue statement of a material fact or the omission or
alleged omission to state a material fact relates to information supplied by
the Company on the one hand or such Holder or such other indemnified party, as
the case may be, on the other, and the parties’ relative intent, knowledge,
access to information and opportunity to correct or prevent such statement or
omission. The amount paid by an indemnified party as a result of the losses,
claims, damages or liabilities referred to in the first sentence of this subsection (d) shall
be deemed to include any legal or other expenses reasonably incurred by such
indemnified party in connection with investigating or defending any action or
claim which is the subject of this subsection (d). Notwithstanding any
other provision of this Section 5(d), the Holders of the Securities shall
not be required to contribute any amount in excess of the amount by which the
net proceeds received by such Holders from the sale of the Securities pursuant
to a Registration Statement exceeds the amount of damages which such Holders
have

 

15

 

otherwise been required to pay
by reason of such untrue or alleged untrue statement or omission or alleged
omission. No person guilty of fraudulent misrepresentation (within the meaning
of Section 11(f) of the Securities Act) shall be entitled to
contribution from any person who was not guilty of such fraudulent
misrepresentation. For purposes of this paragraph (d), each person, if any, who
controls such indemnified party within the meaning of the Securities Act or the
Exchange Act shall have the same rights to contribution as such indemnified
party and each person, if any, who controls the Company within the meaning of
the Securities Act or the Exchange Act shall have the same rights to
contribution as the Company.

 

e.                                       The
agreements contained in this Section 5 shall survive the sale of the
Securities pursuant to a Registration Statement and shall remain in full force
and effect, regardless of any termination or cancellation of this Agreement or
any investigation made by or on behalf of any indemnified party.

 

6.                                       Additional Interest Under Certain Circumstances.

 

a.                                       By
way of liquidated damages, additional interest (the “Additional
Interest”) with respect to the Securities shall be assessed as
follows if any of the following events occur (each such event in clauses (i) through
(iv) below being herein called a “Registration Default”):

 

(i)                                     any Registration Statement
required by this Agreement is not filed with the Commission on or prior to the
Filing Deadline or Shelf Filing Deadline, as applicable;

 

(ii)                                  any Registration Statement
required by this Agreement is not declared effective by the Commission on or
prior to the applicable Effectiveness Deadline;

 

(iii)                               the Registered Exchange Offer
has not been consummated on or prior to the Consummation Deadline; or

 

(iv)                              any Registration Statement
required by this Agreement has been declared effective by the Commission but (A) such
Registration Statement thereafter ceases to be effective or (B) such
Registration Statement or the related prospectus ceases to be usable in connection
with resales of Transfer Restricted Securities during the periods specified
herein because either (1) any event occurs as a result of which the
related prospectus forming part of such Registration Statement would include
any untrue statement of a material fact or omit to state any material fact
necessary to make the statements therein in the light of the circumstances
under which they were made not misleading, or (2) it shall be necessary to
amend such Registration Statement or supplement the related prospectus, to
comply with the Securities Act or the Exchange Act or the respective rules thereunder.

 

16

 

Each of the foregoing will constitute a
Registration Default whatever the reason for any such event and whether it is
voluntary or involuntary or is beyond the control of the Company or pursuant to
operation of law or as a result of any action or inaction by the Commission.

 

Additional Interest shall accrue on the
Securities over and above the interest set forth in the title of the Securities
from and including the date on which any such Registration Default shall occur
to but excluding the date on which all such Registration Defaults have been
cured, at a rate of 0.25% per annum (the “Additional
Interest Rate”) for the first 90-day period immediately following
the occurrence of such Registration Default. The Additional Interest Rate shall
increase by an additional 0.25% per annum with respect to each subsequent 90-day
period until all Registration Defaults have been cured, up to a maximum
Additional Interest Rate of 1.0 % per annum.

 

b.                                      A
Registration Default referred to in Section 6(a)(iv) hereof shall be
deemed not to have occurred and be continuing in relation to a Shelf
Registration Statement or the related prospectus if (i) such Registration
Default has occurred solely as a result of (x) the filing of a post-effective
amendment to such Shelf Registration Statement to incorporate annual audited
financial information with respect to the Company where such post-effective
amendment is not yet effective and needs to be declared effective to permit
Holders to use the related prospectus or (y) other material events, with
respect to the Company that would need to be described in such Shelf
Registration Statement or the related prospectus and (ii) in the case of
clause (y), the Company is proceeding promptly and in good faith to amend or
supplement such Shelf Registration Statement and related prospectus to describe
such events; provided, however, that Additional Interest shall be payable in
accordance with the above paragraph from the day such Registration Default
occurs until such Registration Default is cured (1) in any case, if such
Registration Default occurs for a continuous period in excess of 30 days or (2) solely
in the case of a material acquisition by the Company or any of its subsidiaries
requiring financial statements to be filed with the Commission, if such
Registration Default occurs for a continuous period in excess of sixty (60)
days.

 

c.                                       Any
amounts of Additional Interest due pursuant to Section 6(a) will be
payable in cash on the regular interest payment dates with respect to the
Securities. The amount of Additional Interest will be determined by multiplying
the applicable Additional Interest Rate by the principal amount of the
Securities and further multiplied by a fraction, the numerator of which is the
number of days such Additional Interest Rate was applicable during such period
(determined on the basis of a 360-day year comprised of twelve 30-day months),
and the denominator of which is 360.

 

d.                                      “Transfer Restricted Securities” means each Security until (i) the
date on which such Security has been exchanged by a person other than a
broker-dealer for a freely transferable Exchange Security in the Registered
Exchange Offer, (ii)

 

17

 

following the exchange by a
broker-dealer in the Registered Exchange Offer of an Initial Security for an
Exchange Security, the date on which such Exchange Security is sold to a
purchaser who receives from such broker-dealer on or prior to the date of such
sale a copy of the prospectus contained in the Exchange Offer Registration
Statement, (iii) the date on which such Security has been effectively
registered under the Securities Act and disposed of in accordance with the
Shelf Registration Statement or (iv) the date on which such Security is
distributed to the public pursuant to Rule 144 under the Securities Act or
is saleable pursuant to Rule 144(k) under the Securities Act.

 

7.                                       Rules 144 and 144A. The Company shall
use its best efforts to file the reports required to be filed by it under the
Securities Act and the Exchange Act in a timely manner and, if at any time the
Company is not required to file such reports, it will, upon the request of any
Holder of Securities, make publicly available other information so long as
necessary to permit sales of their securities pursuant to Rules 144 and
144A. The Company covenants that it will take such further action as any Holder
of Securities may reasonably request, all to the extent required from time to
time to enable such Holder to sell Securities without registration under the
Securities Act within the limitation of the exemptions provided by Rules 144
and 144A (including the requirements of Rule 144A(d)(4)). The Company will
provide a copy of this Agreement to prospective purchasers of Initial
Securities identified to the Company by the Initial Purchasers upon request.
Upon the request of any Holder of Initial Securities, the Company shall deliver
to such Holder a written statement as to whether it has complied with such
requirements. Notwithstanding the foregoing, nothing in this Section 7
shall be deemed to require the Company to register any of its securities
pursuant to the Exchange Act.

 

8.                                       Underwritten Registrations. If any of the
Transfer Restricted Securities covered by any Shelf Registration are to be sold
in an underwritten offering, the investment banker or investment bankers and
manager or managers that will administer the offering (“Managing
Underwriters”) will be selected, with the reasonable approval of the
Company, by the Holders of a majority in aggregate principal amount of such
Transfer Restricted Securities to be included in such offering.

 

No person may participate in any underwritten registration hereunder
unless such person (i) agrees to sell such person’s Transfer Restricted
Securities on the basis reasonably provided in any underwriting arrangements
approved by the persons entitled hereunder to approve such arrangements and (ii) completes
and executes all questionnaires, powers of attorney, indemnities, underwriting
agreements and other documents reasonably required under the terms of such
underwriting arrangements.

 

9.                                       Miscellaneous.

 

a.                                       Remedies. Each of the parties hereto
acknowledges and agrees that the payment of Additional Interest as provided in Section 6
hereof shall be the exclusive remedy for any failure by the Company to comply
with its obligations under Sections 1 and 2 hereof.

 

18

 

b.                                      No Inconsistent Agreements. The Company
will not on or after the date of this Agreement enter into any agreement with
respect to its securities that is inconsistent with the rights granted to the
Holders in this Agreement or otherwise conflicts with the provisions hereof.
The rights granted to the Holders hereunder do not in any way conflict with and
are not inconsistent with the rights granted to the holders of the Company’s
securities under any agreement in effect on the date hereof.

 

c.                                       Amendments and Waivers. The provisions of
this Agreement may not be amended, modified or supplemented, and waivers or
consents to departures from the provisions hereof may not be given, except by
the Company and the written consent of the Holders of a majority in principal
amount of the Securities affected by such amendment, modification, supplement,
waiver or consent. Without the consent of the Holder of each Security, however,
no modification may change the provisions relating to the payment of Additional
Interest.

 

d.                                      Notices. All notices and other
communications provided for or permitted hereunder shall be made in writing by
hand delivery, first-class mail, facsimile transmission, or air courier which
guarantees overnight delivery:

 

(1)                                  if
to a Holder of the Securities, at the most current address given by such Holder
to the Company;

 

(2)                                  if
to the Initial Purchasers, to them in care of:

 

Lehman
Brothers Inc.

745 Seventh
Avenue

New York, NY
10019

Attention:  Syndicate Department

(Fax: (212) 526-6588)

 

with a copy to:

 

Office of the
General Counsel

Lehman
Brothers Inc.

399 Park
Avenue

New York,
NY  10022

Attention:  Director of Litigation

(Fax: (646) 758-5203)

 

(3)                                  if
to the Company at its address as follows:

 

Pacific Energy
Partners, L.P.

5900 Cherry
Avenue

Long Beach,
California 90805

Attention Lynn
T. Wood

(Fax (562) 728-2318)

 

19

 

with a copy to:

 

Vinson &
Elkins L.L.P.

666 Fifth
Avenue, 26th Floor

New York, NY
10103

Attention:
Alan P. Baden

(Fax: (917) 849-5337)

 

All such notices and communications shall be
deemed to have been duly given: at the time delivered by hand, if personally
delivered; three business days after being deposited in the mail, postage
prepaid, if mailed; when receipt is acknowledged by recipient’s facsimile
machine operator, if sent by facsimile transmission; and on the day delivered,
if sent by overnight air courier guaranteeing next day delivery.

 

e.                                       Third Party Beneficiaries. The Holders
shall be third party beneficiaries to the agreements made hereunder between the
Company, on the one hand, and the Initial Purchasers, on the other hand, and
shall have the right to enforce such agreements directly to the extent they may
deem such enforcement necessary or advisable to protect their rights or the
rights of Holders hereunder.

 

f.                                         Successors and Assigns. This Agreement
shall be binding upon the Company and its successors and assigns.

 

g.                                      Counterparts. This Agreement may be
executed in any number of counterparts and by the parties hereto in separate
counterparts, each of which when so executed shall be deemed to be an original
and all of which taken together shall constitute one and the same agreement.

 

h.                                      Headings. The headings in this Agreement
are for convenience of reference only and shall not limit or otherwise affect
the meaning hereof.

 

i.                                          Governing Law. THIS AGREEMENT SHALL BE
GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW
YORK WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAWS.

 

j.                                          Severability. If any one or more of the
provisions contained herein, or the application thereof in any circumstance, is
held invalid, illegal or unenforceable, the validity, legality and
enforceability of any such provision in every other respect and of the remaining
provisions contained herein shall not be affected or impaired thereby.

 

k.                                       Securities Held by the Company. Whenever
the consent or approval of Holders of a specified percentage of principal
amount of Securities is required hereunder, Securities held by the Company or
its affiliates (other than subsequent Holders of Securities if such subsequent
Holders are deemed to be affiliates solely by reason

 

20

 

of their holdings of such
Securities) shall not be counted in determining whether such consent or
approval was given by the Holders of such required percentage.

 

l.                                          Submission to Jurisdiction. By the
execution and delivery of this Agreement, the Company submits to the
nonexclusive jurisdiction of the competent Federal and state courts in the
Borough of Manhattan in the City of New York in any suit or proceeding arising
out of or relating to this Agreement or the transactions contemplated hereby.

 

If the
foregoing is in accordance with your understanding of our agreement, please
sign and return to the Company a counterpart hereof, whereupon this instrument,
along with all counterparts, will become a binding agreement among the several
Initial Purchasers and the Company in accordance with its terms.

 

 

	
   

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
    PACIFIC
  ENERGY PARTNERS, L.P.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Pacific Energy GP, LP,

  
	
   

  	
   

  	
  its general partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By: 

  	
  Pacific Energy Management
  LLC,

  
	
   

  	
   

  	
   

  	
  its general partner

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Gerald A. Tywoniuk

  	
   

  
	
   

  	
   

  	
   

  	
  Gerald A. Tywoniuk, Senior Vice President,

  
	
   

  	
   

  	
   

  	
  Chief
  Financial Officer and Treasurer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  PACIFIC
  ENERGY FINANCE CORPORATION

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Gerald A. Tywoniuk

  	
   

  
	
   

  	
   

  	
  Gerald A. Tywoniuk

  
	
   

  	
   

  	
  Senior
  Vice President

  
	
   

  	
   

  	
  Chief
  Financial Officer and Treasurer

  
	
   

  	
   

  	
   

  
	
   

  	
  PACIFIC
  ENERGY GROUP LLC

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  Pacific Energy Partners,
  L.P., its sole member

  
	
   

  	
   

  	
   

  	
  By: 

  	
  Pacific Energy GP, LP, its
  general partner

  
	
   

  	
   

  	
   

  	
   

  	
  By:

  	
  Pacific Energy Management
  LLC, its general

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Gerald A. Tywoniuk

  	
   

  
	
   

  	
   

  	
   

  	
  Gerald A. Tywoniuk, Senior Vice President,

  
	
   

  	
   

  	
   

  	
  Chief
  Financial Officer and Treasurer

  
										

 

21

 

	
   

  	
  PEG CANADA
  GP LLC

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  Pacific Energy Partners,
  L.P., its sole member

  
	
   

  	
   

  	
   

  	
  By: 

  	
  Pacific Energy GP, LP, its
  general partner

  
	
   

  	
   

  	
   

  	
   

  	
  By:

  	
  Pacific Energy Management
  LLC, its general

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  partner

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Gerald A. Tywoniuk

  	
   

  
	
   

  	
   

  	
   

  	
  Gerald A. Tywoniuk, Senior Vice President,

  
	
   

  	
   

  	
   

  	
  Chief
  Financial Officer and Treasurer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  PEG CANADA,
  L.P.

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  PEG Canada GP LLC, its general partner

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Gerald A. Tywoniuk

  	
   

  
	
   

  	
   

  	
   

  	
  Gerald A. Tywoniuk,

  
	
   

  	
   

  	
   

  	
  Senior
  Vice President,

  
	
   

  	
   

  	
   

  	
  Chief
  Financial Officer and Treasurer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  ROCKY
  MOUNTAIN PIPELINE SYSTEM LLC

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  Pacific Energy Group LLC, its sole member

  
	
   

  	
   

  	
   

  	
  By: 

  	
  Pacific Energy Partners, L.P., its sole member

  
	
   

  	
   

  	
   

  	
   

  	
  By:

  	
    Pacific Energy
  GP, LP, its general partner

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  By:

  	
  Pacific Energy Management
  LLC,

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  its general partner

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  By:

  	
  /s/ Gerald A. Tywoniuk

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Gerald A. Tywoniuk, Senior Vice President,

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Chief
  Financial Officer and Treasurer

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  RANCH
  PIPELINE LLC

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  Pacific Energy Group LLC, its sole member

  
	
   

  	
   

  	
   

  	
  By: 

  	
  Pacific Energy Partners, L.P., its sole member

  
	
   

  	
   

  	
   

  	
   

  	
  By:

  	
    Pacific Energy
  GP, LP, its general partner

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  By:

  	
  Pacific Energy Management
  LLC,

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  its general partner

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  By:

  	
  /s/ Gerald A. Tywoniuk

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Gerald A. Tywoniuk, Senior Vice President,

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Chief
  Financial Officer and Treasurer

  
																	

 

22

 

	
   

  	
  PACIFIC
  MARKETING AND TRANSPORTATION

  LLC

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  Pacific Energy Group LLC, its sole member

  
	
   

  	
   

  	
   

  	
  By: 

  	
  Pacific Energy Partners, L.P., its sole member

  
	
   

  	
   

  	
   

  	
   

  	
  By:

  	
    Pacific Energy
  GP, LP, its general partner

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  By:

  	
  Pacific Energy Management
  LLC,

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  its general partner

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  By:

  	
  /s/ Gerald A. Tywoniuk

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Gerald A. Tywoniuk, Senior Vice President,

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Chief
  Financial Officer and Treasurer

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  PACIFIC
  ATLANTIC TERMINALS LLC

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  Pacific Energy Group LLC, its sole member

  
	
   

  	
   

  	
   

  	
  By: 

  	
  Pacific Energy Partners, L.P., its sole member

  
	
   

  	
   

  	
   

  	
   

  	
  By:

  	
    Pacific Energy
  GP, LP, its general partner

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  By:

  	
  Pacific Energy Management
  LLC,

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  its general partner

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  By:

  	
  /s/ Gerald A. Tywoniuk

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Gerald A. Tywoniuk, Senior Vice President,

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Chief
  Financial Officer and Treasurer

  
										

 

23

 

The foregoing Registration Rights Agreement is hereby confirmed and
accepted as of the date first above written.

 

 

	
  LEHMAN BROTHERS INC.

  
	
  BANK OF
  AMERICA SECURITIES LLC

  
	
  CITIGROUP
  GLOBAL MARKETS INC.

  
	
  BNP PARIBAS
  SECURITIES CORP.

  
	
  SCOTIA
  CAPITAL (USA) INC.

  
	
   

  
	
  By:     LEHMAN
  BROTHERS INC., as Authorized Representative

  
	
   

  
	
  /s/ J. Scott Schlossel

  	
   

  
	
  Authorized
  Representative

  

 

24

 

ANNEX A

 

Each
broker-dealer that receives Exchange Securities for its own account pursuant to
the Exchange Offer must acknowledge that it will deliver a prospectus in
connection with any resale of such Exchange Securities. The Letter of
Transmittal states that by so acknowledging and by delivering a prospectus, a
broker-dealer will not be deemed to admit that it is an “underwriter” within
the meaning of the Securities Act. This Prospectus, as it may be amended or
supplemented from time to time, may be used by a broker-dealer in connection
with resales of Exchange Securities received
in exchange for Initial Securities where such Initial Securities were acquired
by such broker-dealer as a result of market-making activities or other trading
activities. The Company has agreed that, for a period of 180 days after the
Expiration Date (as defined herein), it will make this Prospectus available to
any broker-dealer for use in connection with any such resale. See “Plan of
Distribution.”

 

ANNEX B

 

Each
broker-dealer that receives Exchange Securities for its own account in exchange
for Initial Securities, where such Initial Securities were acquired by such
broker-dealer as a result of market- making activities or other trading
activities, must acknowledge that it will deliver a prospectus in connection with
any resale of such Exchange Securities. See “Plan of Distribution.”

 

ANNEX C

 

PLAN OF
DISTRIBUTION

 

Each
broker-dealer that receives Exchange Securities for its own account pursuant to
the Exchange Offer must acknowledge that it will deliver a prospectus in
connection with any resale of such Exchange Securities. This Prospectus, as it
may be amended or supplemented from time to time, may be used by a
broker-dealer in connection with resales of Exchange Securities received in
exchange for Initial Securities where such Initial Securities were acquired as
a result of market-making activities or other trading activities. The Company
has agreed that, for a period of 180 days after the Expiration Date, it will
make this prospectus, as amended or supplemented, available to any
broker-dealer for use in connection with any such resale. In addition, until ,
200 , all dealers effecting transactions in the Exchange Securities may be
required to deliver a prospectus.

 

The Company
will not receive any proceeds from any sale of Exchange Securities by
broker-dealers. Exchange Securities received by broker-dealers for their own
account pursuant to the Exchange Offer may be sold from time to time in one or
more transactions in the over-the-counter market, in negotiated transactions,
through the writing of options on the Exchange Securities or a combination of
such methods of resale, at market prices prevailing at the time of resale, at
prices related to such prevailing market prices or negotiated prices. Any such
resale may be made directly to purchasers or to or through brokers or dealers
who may receive compensation in the form of commissions or concessions from any
such broker-dealer or the

 

 

purchasers of
any such Exchange Securities. Any broker-dealer that resells Exchange
Securities that were received by it for its own account pursuant to the
Exchange Offer and any broker or dealer that participates in a distribution of
such Exchange Securities may be deemed to be an “underwriter” within the
meaning of the Securities Act and any profit on any such resale of Exchange
Securities and any commission or concessions received by any such persons may
be deemed to be underwriting compensation under the Securities Act. The Letter
of Transmittal states that, by acknowledging that it will deliver and by
delivering a prospectus, a broker-dealer will not be deemed to admit that it is
an “underwriter” within the meaning of the Securities Act.

 

For a period
of 180 days after the Expiration Date the Company will promptly send additional
copies of this Prospectus and any amendment or supplement to this Prospectus to
any broker-dealer that requests such documents in the Letter of Transmittal.
The Company has agreed to pay all expenses incident to the Exchange Offer
(including the expenses of one counsel for the Holders of the Securities) other
than commissions or concessions of any brokers or dealers and will indemnify
the Holders of the Securities (including any broker-dealers) against certain
liabilities, including liabilities under the Securities Act.

 

ANNEX D

 

If the
undersigned is not a broker-dealer, the undersigned represents that it is not
engaged in, and does not intend to engage in, a distribution of Exchange
Securities. If the undersigned is a broker-dealer that will receive Exchange Securities
for its own account in exchange for Initial Securities that were acquired as a
result of market-making activities or other trading activities, it acknowledges
that it will deliver a prospectus in connection with any resale of such
Exchange Securities; however, by so acknowledging and by delivering a
prospectus, the undersigned will not be deemed to admit that it is an “underwriter”
within the meaning of the Securities Act.Exhibit 10.29

 

ADMINISTRATIVE SERVICES AGREEMENT

 

This ADMINISTRATIVE SERVICES AGREEMENT is
made as of the 1st day of January, 2005, between MediCor Ltd. (“MediCor”), a
Delaware corporation and NexGen Management LLC (“NexGen”), a Delaware limited
liability company.

 

WHEREAS
MediCor wishes NexGen to provide certain administrative services to MediCor in
connection with MediCor’s use and operation of aircraft owned and operated by
Global Aviation Delaware LLC, a third party, including all related third-party
transportation costs and services;

 

WHEREAS
MediCor requires NexGen to perform these services since NexGen is providing
similar services for other parties’ use of Global Aviation’s aircraft and since
NexGen is in a unique position to gather, analyze and separate those bills that
specifically relate to MediCor’s use of such aircraft; and

 

WHEREAS
NexGen agrees to render certain services to MediCor on the terms and conditions
hereof.

 

NOW,
THEREFORE, in consideration of the mutual promises and covenants contained
herein, MediCor and NexGen agree as follows:

 

ARTICLE 1 – GENERAL
DESCRIPTION OF SERVICES

 

The purpose of this
Agreement is to enable MediCor to receive certain designated administrative
services (the “Services”) from NexGen which would otherwise require devotion of
MediCor administrative personnel in connection with the use of third-party
services.  NexGen shall not be required
to hire any additional employees to provide the Services or to replace any
employees who provide the Services whose employment with NexGen and its
affiliates terminates.

 

 

ARTICLE 2 – SERVICES TO
BE PROVIDED BY NEXGEN TO MEDICOR

 

As requested by MediCor,
NexGen will provide to MediCor the Services described in Annex A attached
hereto.  At any time after the date
hereof, if MediCor desires NexGen to provide services not described in Annex A
upon mutual agreement of the parties hereto, Annex A shall be amended to add
any additional services to be provided pursuant to the preceding sentence.

 

ARTICLE 3 – PERIOD OF
SERVICES; TERM

 

3.01                           Subject
to the provisions of Article 3.02, the Services shall begin as of the date
hereof and continue until June 30, 2006, unless the parties mutually agree
to extend or shorten the term of any of the Services.  After June 30, 2006, the Services may be
continued upon written agreement of the parties on such terms and the parties
may agree.

 

3.02                           If
MediCor obtains an alternative source of supply for any Service or category of
Services as set forth in Annex A prior to the applicable time limit referred to
above, MediCor may terminate this Agreement with respect to such Service or
category of Services upon thirty (30) days’ notice to NexGen.

 

3.03                           The
term of this Agreement shall commence on the date hereof and shall continue
thereafter as long as any Service covered hereby shall continue to be provided
in accordance with this Agreement.

 

3.04                           Upon
the termination of this Agreement, NexGen shall be released from any and all
obligations to perform the Services hereunder subject to the terms of this
Agreement.  However, NexGen’s and MediCor’s
respective obligations under Articles 4 and 8 shall survive.

 

2

 

ARTICLE 4
– COMPENSATION; PAYMENT

 

4.01                           MediCor
shall pay to NexGen a fee for those services actually received by MediCor,
which fee shall be determined in accordance with Annex A attached hereto (the “Fee”).

 

4.02                           NexGen
shall invoice MediCor for Services performed monthly.  Payments shall be due net ten (10) days
from date of invoice.

 

4.03                           If,
within 30 days following receipt of any invoice for Services, MediCor notifies
NexGen in writing that it questions all or any part of such invoice, at the
request of MediCor, NexGen shall provide to MediCor within thirty (30) days
after such request a written response, signed by the appropriate department
head of NexGen, explaining the matter or matters in question in reasonable
detail to allow MediCor to verify the accuracy of the charges invoiced to it
and, upon the additional request of MediCor, documentary evidence of the basis
of calculation of such charges.  If
within thirty (30) days after receipt of such a written response, or in the
event MediCor does not request a written response, then if within thirty (30)
days after receipt of the invoice in question, MediCor notifies NexGen in
writing that it does not accept such invoiced Fee and the parties cannot
resolve the matter in a mutually satisfactory manner within thirty (30) days
from the date of such notice, then the matter shall, at the request of either
party, promptly be submitted for resolution to a firm of independent certified
public accountants mutually selected by the parties.  The decision of such firm of independent
certified public accountants shall be final and binding upon the parties.  Such firm of independent certified public
accountants will review the books and records of NexGen and/or MediCor and make
such other investigation as it shall deem necessary to verify such
invoice.  The costs of retaining such accountants
shall be borne by the party requesting resolution by such accountants.  Pending any

 

3

 

such final determination, MediCor shall pay the undisputed amount of
the relevant invoice of NexGen, with appropriate adjustment to be made
following such final determination.  If
NexGen is the prevailing party, MediCor shall pay NexGen interest on the unpaid
amount for the period from the date on which such payment was originally due to
the date on which the unpaid amount was actually paid, such interest to be paid
at the reference rate of Citibank, New York, as from time to time in effect and
published during such period.

 

ARTICLE 5 – TAXES

 

In addition to any other
amounts payable to NexGen, MediCor shall promptly reimburse NexGen for any
taxes, excises, imposts, duties, levies, withholdings or other similar charges
(excepting any taxes, excises, imposts, duties, levies, withholdings or charges
based on net income) that NexGen may be required to pay (i) on account of
the performance of Services, or (ii) with respect to payments made by
MediCor for such Services, pursuant to this Agreement; provided, however, that
NexGen shall not be entitled to receive any such payment to the extent any of
the foregoing have been included in the calculation of the Fee pursuant to
Annex A.

 

ARTICLE 6 – INDEPENDENT
CONTRACTOR

 

NexGen shall be an
independent contractor in the performance of its obligations hereunder.

 

ARTICLE 7 – FORCE
MAJEURE

 

The obligations of NexGen
hereunder shall be suspended to the extent that the performance of its
obligations is delayed or prevented, in whole or in part, by any occurrence
beyond its control, including without limitation acts of God, inclement
weather, floods, major accidents, strikes, lockouts, labor disputes, labor
shortages, riots, demonstration, terrorism, sabotage, laws, ordinances, rules,
regulations of governmental or other competent authorities,

 

4

 

standards or decrees of an extraordinary nature, whether valid or
invalid (including, but not limited to, import or export prohibitions or
priorities, requisitions, allocations and price adjustment restrictions),
inability to obtain or unavoidable delay in obtaining necessary power,
materials, facilities and equipment in the open market, interruption or
unavoidable delay in communication or transportation, the refusal of NexGen’s
insurance carriers to service MediCor’s insurance needs, or any other similar
or dissimilar occurrence.  If the
obligations of NexGen are suspended pursuant to the preceding sentence, NexGen
shall give written notice to that effect to MediCor within ten (10) days
after such suspension shall have commenced together with a statement setting
forth reasonably full particulars concerning the cause of such suspension and
shall use its best efforts to remedy the cause of such suspension as quickly as
possible.  The requirement that the cause
of such suspension be remedied with best efforts shall not require the
settlement of strikes, lockouts or other labor difficulties affecting NexGen.

 

ARTICLE 8 –
CONFIDENTIALITY

 

NexGen shall not disclose
to any third person, or publish, or use for its own or any third person’s
purposes and shall preserve and maintain and prevent the disclosure or
publication of, any proprietary information and trade secrets, both technical
and non-technical, including, without limitation, business, financial, customer
and supplier information, of MediCor (collectively the “Confidential
Information”).  The foregoing sentence
shall not apply to communications with third-party service providers with
respect to whom NexGen is providing administrative services for MediCor to the
extent reasonably necessary for NexGen to provide the Services.  At MediCor’s written request, NexGen will
provide to MediCor all documents containing any Confidential Information.  In the event that NexGen is required by legal
process to disclose to any third person (other than in connection with a claim
or other action between

 

5

 

MediCor and NexGen) and Confidential Information, it shall provide
MediCor prior written notice thereof and, at MediCor’s request, shall cooperate
in obtaining a protective order or injunctive relief.  MediCor shall promptly reimburse NexGen for
all reasonable expenses (including, without limitation, reasonable attorneys’
fees) incurred by NexGen in connection with such cooperation.  The obligations of NexGen in this Article 8
shall not apply to information which (i) is or becomes public knowledge
through no fault of NexGen; (ii) is independently disclosed to NexGen by a
third person without restrictions on its disclosure and who is not subject to
any restrictions on disclosure; or (iii) except as provided above, NexGen
is required by law to disclose.

 

ARTICLE 9 – NOTICES

 

Any notices or
communications permitted or required hereunder shall be deemed sufficiently
given if hand-delivered or sent (i) by postage prepaid, registered or
certified mail - return receipt requested, or (ii) by telex, to the
parties as set forth below or to such other address as any party may notify the
other party of in writing:

 

	
  If to MediCor, to:

  	
   

  	
  MediCor Ltd.

  
	
   

  	
   

  	
  4560 South Decatur
  Boulevard, Suite 300

  
	
   

  	
   

  	
  Las Vegas, Nevada 89103-5253

  
	
   

  	
   

  	
  Attention: Chief
  Financial Officer

  
	
   

  	
   

  	
   

  
	
  If to NexGen, to:

  	
   

  	
  NexGen Management LLC

  
	
   

  	
   

  	
  4560 South Decatur
  Boulevard, Suite 201

  
	
   

  	
   

  	
  Las Vegas, Nevada 89103

  
	
   

  	
   

  	
  Attention: President

  

 

ARTICLE 10 –
MISCELLANEOUS

 

10.01                     Binding
Effect;  Assignment.  This Agreement shall be binding upon, and
inure to the benefit of, the parties and their respective successors, legal
representatives and assigns

 

6

 

permitted in accordance with this Article 10.  Except as expressly provided herein, nothing
herein shall create or be deemed to create any third-party beneficiary rights
in any person or entity not a party to this Agreement.  No assignment of this Agreement or of any
rights or obligations hereunder may be made by any party (by operation of law
or otherwise) without the prior written consent of the other party.

 

10.02                     Waiver.  The failure of either party at any time or
times to enforce or require performance or any provision hereof shall in no way
operate as a waiver or affect the right of such party at a later time to
enforce the same.  No waiver by either
party of any condition or the breach of any provision contained in this
Agreement, whether by conduct or otherwise, in any one or more instances, shall
be deemed to be or construed as a further or continuing waiver of any such
condition or breach, or a waiver of any other condition, or of any breach of
any other provision contained in this Agreement.

 

10.03                     Severability.  If any provision of this Agreement shall
hereafter be held to be invalid or unenforceable for any reason, that provision
shall be reformed to the maximum extent permitted to preserve the parties’
original intent, failing which, it shall be severed from this Agreement with
the balance of this Agreement continuing in full force and effect.

 

10.04                     Governing
Law.  This Agreement shall be
governed by and construed in all respects under the law of the State of
Delaware, without reference to its conflicts of law rules or principles.

 

10.05                     Entire
Agreement.  This Agreement, together
with the Annexes attached hereto, constitutes the entire understanding of the
parties concerning the Services.  No
amendment to or modification of this Agreement or waiver of any provision or
right hereunder will be binding upon either party unless signed in writing by
an authorized representative of such party.

 

7

 

IN
WITNESS WHEREOF, the parties have caused this Administrative Services
Agreement to be executed by their duly authorized representatives as of the day
and year first above written.

 

 

	
   

  	
  MEDICOR
  LTD.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Donald K. McGhan

  	
   

  
	
   

  	
  Title:

  	
  Chairman

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  NEXGEN
  MANAGEMENT LLC

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Nikki Pomeroy

  	
   

  
	
   

  	
  Title:

  	
  President

  	
   

  
					

 

8

 

ANNEX A

 

ADMINISTRATIVE
SERVICES AGREEMENT

 

SERVICES AND FEES

 

SERVICES

 

Providing administration,
payment and recordkeeping services related to payment of third-party service
providers to MediCor, such as:

1.               Maintenance,
support services, parts and related costs

2.               Fuel
and related costs

3.               Terminal,
Port, FBO, air fees and related costs

4.               Catering
and related costs

5.               Pilot
fees and related costs

6.               Ground
transportation and related costs

7.               Miscellaneous
costs

 

  MediCor shall identify to NexGen which
third-party service providers for which MediCor desires this service.  The service shall include NexGen (1) analyzing
all third-party service provider invoices for services rendered as it relates
to Medicor’s use of Global Aviation planes, as distinct from other parties use,
(2) to the extent necessary, adjusting any such invoiced amounts on behalf
of MediCor, (3) advancing payment to such third-party service providers on
behalf of MediCor and (4) preparing monthly reports and invoices to
MediCor with respect to such invoiced and paid amounts.

 

FEES

 

	
  Invoice Administration &
  Processing

  	
   

  	
  $250.00 per monthly
  report

  

 

9

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