Document:

Exhibit 10.1 

 

GLORI ENERGY INC. 

 

2014 LONG TERM INCENTIVE PLAN

 

    	 

    	 

    

 

Table
of Contents

 

	 	 	Page
	 	 	 
	Article I	ESTABLISHMENT, PURPOSE AND DURATION	1
	 	 	 
	1.1	Establishment	1
	1.2	Purpose of the Plan	1
	1.3	Duration of the Plan	1
	 	 	 
	Article II	DEFINITIONS	1
	 	 	 
	2.1	Affiliate	1
	2.2	Assets	1
	2.3	Award	2
	2.4	Award Agreement	2
	2.5	Beneficial Owner	2
	2.6	Board	2
	2.7	Change of Control	2
	2.8	Code	3
	2.9	Committee	3
	2.10	Company	3
	2.11	Compensation Committee	3
	2.12	Consultant	3
	2.13	Corporate Change	3
	2.14	Covered Employee	3
	2.15	 Director	3
	2.16	Disability	3
	2.17	Dividend Equivalent	4
	2.18	Effective Date	4
	2.19	Employee	4
	2.20	Entity	4
	2.21	Exchange Act	4
	2.22	Fair Market Value	4
	2.23	Fiscal Year	4
	2.24	Full Value Award	4
	2.25	Holder	4
	2.26	Immediate Family	4
	2.27	Incumbent Director	4
	2.28	Incentive Stock Option	5
	2.29	Mature Shares	5
	2.30	Merger	5
	2.31	Minimum Statutory Tax Withholding Obligation	5
	2.32	Nonqualified Stock Option	5
	2.33	Option	5
	2.34	Option Agreement	5
	2.35	Option Price	5
	2.36	Parent Corporation	5
	2.37	Participant	5

 

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Table
of Contents

(continued)

 

	 	 	Page
	 	 	 
	2.38	Performance Award	5
	2.39	Performance-Based Compensation	6
	2.40	Performance Goals	6
	2.41	Performance Stock Award	6
	2.42	Performance Unit Award	6
	2.43	Period of Restriction	6
	2.44	Person	6
	2.45	Plan	6
	2.46	Plan Share Limit	6
	2.47	Restricted Stock	6
	2.48	Restricted Stock Award	6
	2.49	Restricted Stock Unit	6
	2.50	Restricted Stock Unit Award	6
	2.51	Rule 16b-3	6
	2.52	SAR Agreement	6
	2.53	Section 162(m) 	7
	2.54	Section 409A	7
	2.55	Share	7
	2.56	Specified Owner	7
	2.57	Stock	7
	2.58	Stock Appreciation Right	7
	2.59	Subsidiary Corporation	7
	2.60	Substantial Risk of Forfeiture	8
	2.61	Ten Percent Stockholder	8
	2.62	Termination of Employment	8
	2.63	Voting Securities	8
	 	 	 
	Article III	ELIGIBILITY and participation	8
	 	 	 
	3.1	Eligibility	8
	3.2	Participation	8
	 	 	 
	Article IV	GENERAL PROVISIONS RELATING TO AWARDS	8
	 	 	 
	4.1	Authority to Grant Awards	8
	4.2	Number of Shares Available for Awards	9
	4.3	Non-Transferability	10
	4.4	Requirements of Law	10
	4.5	Changes in the Company’s Capital Structure	11
	4.6	Election Under Section 83(b) of the Code	13
	4.7	Forfeiture for Cause	14
	4.8	Forfeiture Events	14
	4.9	Recoupment in Restatement Situations	14
	4.10	Award Agreements	14
	4.11	Amendments of Award Agreements	15

 

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Table
of Contents

(continued)

 

	 	 	Page
	 	 	 
	4.12	Rights as Stockholder	15
	4.13	Issuance of Shares of Stock	15
	4.14	Restrictions on Stock Received	15
	4.15	Compliance With Section 409A	15
	4.16	Source of Shares Deliverable Under Awards	15
	4.17	Date of Grant	15
	 	 	 
	Article V	OPTIONS and stock appreciation rights	16
	 	 	 
	5.1	Authority to Grant Options	16
	5.2	Type of Options Available	16
	5.3	Option Agreement	16
	5.4	Option Price	16
	5.5	Duration of Option	16
	5.6	Amount Exercisable	16
	5.7	Exercise of Option	17
	5.8	Notification of Disqualifying Disposition	17
	5.9	$100,000 Limitation on Incentive Stock Options	17
	5.10	Duration of SAR	17
	5.11	SAR Agreement	18
	5.12	Restrictions on Repricing of Stock Options or Stock Appreciation Rights	18
	 	 	 
	Article VI	RESTRICTED Stock AWARDS	18
	 	 	 
	6.1	Restricted Stock Awards	18
	6.2	Restricted Stock Award Agreement	19
	6.3	Holder’s Rights as Stockholder	19
	 	 	 
	Article VII	RESTRICTED STOCK UNIT AWARDS	19
	 	 	 
	7.1	Authority to Grant Restricted Stock Unit Awards	19
	7.2	Restricted Stock Unit Award	19
	7.3	Restricted Stock Unit Award Agreement	19
	7.4	Form of Payment Under Restricted Stock Unit Award	19
	7.5	Time of Payment Under Restricted Stock Unit Award	19
	 	 	 
	Article VIII	PERFORMANCE STOCK AWARDS AND PERFORMANCE UNIT Awards	20
	 	 	 
	8.1	Authority to Grant Performance Stock Awards and Performance Unit Awards	20
	8.2	Performance Goals and Performance Criteria	20
	8.3	Time of Establishment of Performance Goals	21
	8.4	Written Agreement	21
	8.5	Form of Payment Under Performance Unit Award	21
	8.6	Time of Payment Under Performance Unit Award	21
	8.7	Holder’s Rights as Stockholder With Respect to a Performance Stock Award	21

 

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Table
of Contents

(continued)

 

	 	 	Page
	 	 	 
	8.8	Increases Prohibited	22
	8.9	Stockholder Approval	22
	8.10	Dividends	22
	 	 	 
	Article IX	SUBSTITUTION AWARDS	22
	 	 	 
	Article X	ADMINISTRATION	23
	 	 	 
	10.1	Awards	23
	10.2	Authority of the Committee	23
	10.3	Decisions Binding	23
	10.4	No Liability	24
	 	 	 
	Article XI	AMENDMENT OR TERMINATION OF PLAN	24
	 	 	 
	11.1	Amendment, Modification, Suspension, and Termination	24
	11.2	Awards Previously Granted	24
	 	 	 
	Article XII	ACCELERATION OF VESTING FOR CERTAIN AWARDS UPON A Change OF Control	24
	 	 	 
	Article XIII	MISCELLANEOUS	24
	 	 	 
	13.1	Unfunded Plan/No Establishment of a Trust Fund	24
	13.2	No Employment Obligation	25
	13.3	Tax Withholding	25
	13.4	Indemnification of the Committee	26
	13.5	Gender and Number	26
	13.6	Severability	27
	13.7	Headings	27
	13.8	Other Compensation Plans	27
	13.9	Retirement and Welfare Plans	27
	13.10	Other Awards	27
	13.11	Successors	27
	13.12	Law Limitations/Governmental Approvals	27
	13.13	Delivery of Title	27
	13.14	Inability to Obtain Authority	27
	13.15	Investment Representations	28
	13.16	Persons Residing Outside of the United States	28
	13.17	No Fractional Shares	28
	13.18	Validity of Awards	28
	13.19	Interpretation	28
	13.20	Governing Law; Venue	28

 

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GLORI
eNERGY iNC. 

2014
LONG TERM INCENTIVE PLAN

 

Article
I

 

ESTABLISHMENT,
PURPOSE AND DURATION

 

1.1           Establishment.
The Company hereby establishes an incentive compensation plan, to be known as the “Glori Energy Inc. 2014 Long Term Incentive
Plan”, as set forth in this document. The Plan permits the grant of Options, Stock Appreciation Rights, Restricted Stock,
Restricted Stock Unit Awards, Performance Stock Awards and Performance Unit Awards. The Plan shall become effective on the later
of (a) the date the Plan is approved by the Board and (b) the date the Plan is approved by the stockholders of the Company
(the “Effective Date”).

 

1.2           Purpose
of the Plan. The Plan is intended to promote the long-term growth and profitability of the Company by providing certain directors,
officers, and Employees of, the Company and its Affiliates with incentives to maximize stockholder value and to otherwise contribute
to the success of the Company, thereby aligning the interests of such service providers with the interests of the Company’s
stockholders.

 

1.3           Duration
of the Plan. The Plan shall continue indefinitely until it is terminated pursuant to Section 11.1. No Incentive Stock
Options may be granted under the Plan on or after the tenth anniversary of the Effective Date. The applicable provisions of the
Plan will continue in effect with respect to an Award granted under the Plan for as long as such Award remains outstanding.

 

Article
II

 

DEFINITIONS

 

The words and phrases
defined in this Article shall have the meaning set out below throughout the Plan, unless the context in which any such word or
phrase appears reasonably requires a broader, narrower or different meaning.

 

2.1           “Affiliate”
means any corporation, partnership, limited liability company or association, trust or other entity or organization which, directly
or indirectly, controls, is controlled by, or is under common control with, the Company. For purposes of the preceding sentence,
“control” (including, with correlative meanings, the terms “controlled by” and “under common control
with”), as used with respect to any entity or organization, shall mean the possession, directly or indirectly, of the power
(a) to vote more than fifty percent (50%) of the securities having ordinary voting power for the election of directors of
the controlled entity or organization, or (b) to direct or cause the direction of the management and policies of the controlled
entity or organization, whether through the ownership of voting securities or by contract or otherwise.

 

2.2           “Assets”
means assets of any kind owned by the Company, including but not limited to securities of the Company’s direct and indirect
subsidiaries and Affiliates.

 

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2.3           “Award”
means an Option, Stock Appreciation Right, Restricted Stock Award Restricted Stock Unit Award, Performance Stock Award or Performance
Unit Award, in each case subject to the terms and provisions of the Plan.

 

2.4           “Award
Agreement” means a written agreement that sets forth the terms and conditions applicable to an Award granted under
the Plan.

 

2.5           “Beneficial
Owner” or “Beneficial Ownership” shall have the meaning ascribed to the term in Rule 13d-3
of the General Rules and Regulations under the Exchange Act.

 

2.6           “Board”
means the Board of Directors of the Company.

 

2.7           “Change
of Control” means the occurrence of one of the following events:

 

(a)          the
individuals who are Incumbent Directors cease for any reason to constitute a majority of the members of the Board;

 

(b)          the
consummation of a Merger of the Company with another Entity, unless the individuals and Entities who were the Beneficial Owners
of the Voting Securities of the Company outstanding immediately prior to such Merger own, directly or indirectly, at least 50 percent
of the combined voting power of the Voting Securities of any of the Company, the surviving Entity or the parent of the surviving
Entity outstanding immediately after such Merger;

 

(c)          any
Person, other than a Specified Owner, becomes a Beneficial Owner, directly or indirectly, of securities of the Company representing
30 percent or more of the combined voting power of the Company’s then outstanding Voting Securities;

 

(d)          a
sale, transfer, lease or other disposition of all or substantially all of the Company’s Assets is consummated (an “Asset
Sale”), unless:

 

(1)         the
individuals and Entities who were the Beneficial Owners of the Voting Securities of the Company immediately prior to such Asset
Sale own, directly or indirectly, 50 percent or more of the combined voting power of the Voting Securities of the Entity that
acquires such Assets in such Asset Sale or its parent immediately after such Asset Sale in substantially the same proportions as
their ownership of the Company’s Voting Securities immediately prior to such Asset Sale; or

 

(2)         the
individuals who comprise the Board immediately prior to such Asset Sale constitute a majority of the board of directors or other
governing body of either the Entity that acquired such Assets in such Asset Sale or its parent (or a majority plus one member where
such board or other governing body is comprised of an odd number of directors); or

 

(e)          The
stockholders of the Company approve a plan of complete liquidation or dissolution of the Company.

 

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Notwithstanding the
foregoing, with respect to Restricted Stock Unit Awards, Performance Stock Unit Awards and any Award that is intended to comply
with (rather than be merely exempt from) the requirements of Section 409A), an event listed above in this Section 2.6 shall not
constitute a “Change of Control” unless the event is a “change in control event” within the meaning
of Department of Treasury Regulation § 1.409A-3(i)(5).

 

2.8           “Code”
means the United States Internal Revenue Code of 1986, as amended from time to time. Reference in the Plan to any section of the
Code shall be deemed to include any amendments or successor provisions to such section and any regulations issued by the Department
of Treasury or the Internal Revenue Service under such section.

 

2.9           “Committee”
means (a) in the case of an Award granted to a Director, the Board, (b) in the case of an Award granted to a Covered Employee
that is intended to qualify as performance based compensation under Section 162(m), the Compensation Committee, and (c) in
the case of any other Award granted under the Plan, subject to the last sentence hereof, the Compensation Committee.

 

2.10         “Company”
means Glori Energy Inc., a Delaware corporation, or any successor (by reincorporation, merger or otherwise).

 

2.11         “Compensation
Committee” means the Compensation Committee of the Board.

 

2.12         “Consultant”
means any person who is not an Employee or a Director and who is providing advisory or consulting services to the Company or an
Affiliate.

 

2.13         “Corporate
Change” shall have the meaning ascribed to that term in Section 4.5(c).

 

2.14         “Covered
Employee” means an Employee who is a “covered employee,” as defined in Section 162(m).

 

2.15         “
Director” means a means a director of the Company who is not an Employee.

 

2.16         “Disability”
means as determined by the Committee in its discretion exercised in good faith, (a) in the case of an Award that is exempt
from the application of the requirements of Section 409A, a physical or mental condition of the Holder that would entitle
him to payment of disability income payments under the Company’s long-term disability insurance policy or plan for employees
as then in effect; or in the event that the Holder is a Director or is not covered, for whatever reason, under the Company’s
long-term disability insurance policy or plan for employees or in the event the Company does not maintain such a long-term disability
insurance policy, “Disability” means a permanent and total disability as defined in section 22(e)(3) of
the Code and (b) in the case of an Award that is not exempt from the application of the requirements of Section 409A,
(i) the Holder is unable to engage in any substantial gainful activity by reason of any medically determinable physical or
mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than 12
months, or (ii) the Holder is, by reason of any medically determinable physical or mental impairment that can be expected
to result in death or can be expected to last for a continuous period of not less than 12 months, receiving income replacement
benefits for a period of not less than three months under an accident and health plan covering employees of the Company. A determination
of Disability may be made by a physician selected or approved by the Committee and, in this respect, the Holder shall submit to
an examination by such physician upon request by the Committee.

 

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2.17         “Dividend
Equivalent” means a payment equivalent in amount to dividends paid to the Company’s stockholders.

 

2.18         “Effective
Date” shall have the meaning ascribed to that term in Section 1.1.

 

2.19         “Employee”
means a person employed by the Company or any Affiliate as a common law employee.

 

2.20         “Entity”
means any corporation, partnership, association, joint-stock company, limited liability company, trust, unincorporated organization
or other business entity.

 

2.21         “Exchange
Act” means the Securities Exchange Act of 1934, or any successor act, and the rules and regulations thereunder, as
such laws, rules and regulations may be amended from time to time.

 

2.22         “Fair
Market Value” of the Stock as of any particular date means, (a) the closing price of the Stock on that date on the
principal securities exchange on which the Stock is listed, or (b) if the stock is not listed on a national stock exchange, the
average of the high and low bid quotations for the Stock on that date as reported by the NASDAQ National Market System, or (c)
if the Stock is not so listed or reported, or if, in the discretion of the Committee, another means of determining the fair market
value of a Share at such date shall be necessary or advisable, the Committee may provide for another method or means for determining
such fair market value, which method or means shall comply with the requirements of a reasonable valuation method as described
under Section 409A.

 

2.23         “Fiscal
Year” means the Company’s fiscal year.

 

2.24         “Full
Value Award” means an Award other than in the form of an Incentive Stock Option, Nonqualified Stock Option,
or Stock Appreciation Right, and which is settled by the issuance of Shares.

 

2.25         “Holder”
means the holder of an Award.

 

2.26         “Immediate
Family” means, with respect to a Participant, the Participant’s spouse, children or grandchildren (including
adopted children, stepchildren and grandchildren). 

 

2.27         “Incumbent
Director” means:

 

(a)          a
member of the Board on the Effective Date; or

 

(b)          an
individual:

 

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(1)         who
becomes a member of the Board after the Effective Date;

 

(2)         whose
appointment or election by the Board or nomination for election by the Company’s stockholders is approved or recommended
by a vote of at least two-thirds of the then serving Incumbent Directors (as defined herein); and

 

(3)         whose
initial assumption of service on the Board is not in connection with an actual or threatened election contest.

 

2.28         “Incentive
Stock Option” means an Option that is intended to be an “incentive stock option” that satisfies the requirements
of section 422 of the Code.

 

2.29         “Mature
Shares” means shares of Stock that have been held by the Holder, and with respect to which any applicable forfeiture
restrictions have lapsed, in each case, for at least six months.

 

2.30         “Merger”
means a merger, consolidation or similar transaction.

 

2.31         “Minimum
Statutory Tax Withholding Obligation” means, with respect to an Award, the amount the Company or an Affiliate is
required to withhold for federal, state, local and foreign taxes based upon the applicable minimum statutory withholding rates
required by the relevant tax authorities.

 

2.32         “Nonqualified
Stock Option” or “NSO means an Option that is intended to be a “nonqualified stock option”
that does not satisfy the requirements of section 422 of the Code.

 

2.33         “Option”
means an Award (other than a SAR) granted under Article V (whether an ISO or a NSO).

 

2.34         “Option
Agreement” means a written agreement that sets forth the terms and conditions applicable to an Option granted under
the Plan.

 

2.35         “Option
Price” has the meaning ascribed to that term in Section 5.4.

 

2.36         “Parent
Corporation” means any corporation (other than the Company) in an unbroken chain of corporations ending with the
Company if, at the time of the action or transaction, each of the corporations other than the Company owns stock possessing 50 percent
or more of the total combined voting power of all classes of stock in one of the other corporations in the chain.

 

2.37         “Participant”
means an Employee, Consultant or Director who has been granted an Award.

 

2.38         “Performance
Award” means an Award granted under Article VIII.

 

    	- 5 -

    	 

    

 

2.39         “Performance-Based
Compensation” means compensation under an Award that is intended by the Compensation Committee to satisfy the requirements
of section 162(m) of the Code for deductibility of remuneration paid to Covered Employees.

 

2.40         “Performance
Goals” means one or more of the performance goals established with respect to a Performance Award that is based on
one of more of the criteria described in Section 8.2.

 

2.41         “Performance
Stock Award” means an Award providing for an issuance of Stock that is designated as a performance stock award granted
pursuant to Article VIII.

 

2.42         “Performance
Unit Award” means an Award designated as a performance unit award granted pursuant to Article VIII.

 

2.43         “Period
of Restriction” means the period during which Restricted Stock is subject to a substantial risk of forfeiture (based
on the passage of time, the achievement of performance goals, or upon the occurrence of other events as determined by the Committee,
in its discretion), as provided in Article VI.

 

2.44         “Person”
means any individual, partnership, corporation, limited liability company, trust, incorporated or unincorporated organization or
association or other legal entity of any kind, or any “group” as contemplated by Section 13(d)(3) of the Exchange Act.

 

2.45         “Plan”
means the Glori Energy Inc. 2014 Long Term Incentive Plan, as set forth in this document as it may be amended from time to time.

 

2.46         “Plan
Share Limit” shall have the meaning assigned to such term in Section 4.2.

 

2.47         “Restricted
Stock” means shares of restricted Stock issued or granted under the Plan pursuant to Article VI.

 

2.48         “Restricted
Stock Award” means an authorization by the Committee to issue or transfer Restricted Stock to a Holder.

 

2.49         “Restricted
Stock Unit Award” means a restricted stock unit credited to a Holder’s ledger account maintained
by the Company pursuant to Article VII.

 

2.50         “Restricted
Stock Unit Award” means an Award granted pursuant to Article VII.

 

2.51         “Rule
16b-3” means SEC Rule 16b-3 promulgated under the Exchange Act, as such may be amended from time to time, and any
successor rule, regulation or statute fulfilling the same or a similar function.

 

2.52         “SAR
Agreement” means a written agreement that sets forth the terms and conditions applicable to a SAR granted under the
Plan.

 

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2.53         “Section
162(m) ” means section 162(m) of the Code and other guidance issued by the Internal Revenue Service and the Department
of Treasury under section 162(m) of the Code.

 

2.54         “Section 409A”
means section 409A of the Code and other guidance issued by the Internal Revenue Service and the Department of Treasury under
section 409A of the Code.

 

2.55         “Share”
means a share of Stock.

 

2.56         “Specified
Owner” means any of the following:

 

(a)          the
Company;

 

(a)          an
Affiliate of the Company;

 

(b)          an
employee benefit plan (or related trust) sponsored or maintained by the Company or any Affiliate of the Company;

 

(c)          a
Person that becomes a Beneficial Owner of the Company’s outstanding Voting Securities representing 30 percent or more of
the combined voting power of the Company’s then outstanding Voting Securities as a result of the acquisition of securities
directly from the Company and/or its Affiliates; or

 

(d)          a
Person that becomes a Beneficial Owner of the Company’s outstanding Voting Securities representing 30 percent or more of
the combined voting power of the Company’s then outstanding Voting Securities as a result of a Merger if the individuals
and Entities who were the Beneficial Owners of the Voting Securities of the Company outstanding immediately prior to such Merger
own, directly or indirectly, at least 50 percent of the combined voting power of the Voting Securities of any of the Company, the
surviving Entity or the parent of the surviving Entity outstanding immediately after such Merger in substantially the same proportions
as their ownership of the Voting Securities of the Company outstanding immediately prior to such Merger

 

2.57         “Stock”
means the common stock of the Company, $0.0001 par value per share (or such other par value as may be designated by act of the
Company’s stockholders), or any security into which such common stock may be changed by reason of any transaction or event
of the type described in Section 4.5.

 

2.58         “Stock
Appreciation Right” or “SAR” means a stock appreciation right granted pursuant to Article
V.

 

2.59         “Subsidiary
Corporation” means any corporation (other than the Company) in an unbroken chain of corporations beginning with the
Company if, at the time of the action or transaction, each of the corporations other than the last corporation in an unbroken chain
owns stock possessing 50 percent or more of the total combined voting power of all classes of stock in one of the other corporations
in the chain.

 

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2.60         “Substantial
Risk of Forfeiture” shall have the meaning ascribed to that term in Section 409A.

 

2.61         “Ten
Percent Stockholder” means an individual who, at the time the Option is granted, owns stock possessing more than
ten percent (10%) of the total combined voting power of all classes of stock or series of the Company or of any Parent Corporation
or Subsidiary Corporation. An individual shall be considered as owning the stock owned, directly or indirectly, by or for his brothers
and sisters (whether by the whole or half blood), spouse, ancestors and lineal descendants; and stock owned, directly or indirectly,
by or for a corporation, partnership, estate or trust, shall be considered as being owned proportionately by or for its stockholders,
partners or beneficiaries.

 

2.62         “Termination
of Employment” means, in the case of an Award other than an Incentive Stock Option, the termination of the Award
recipient’s employment relationship with the Company and all Affiliates. “Termination of Employment” means,
in the case of an Incentive Stock Option, the termination of the Employee’s employment relationship with all of the Company,
any Parent Corporation, any Subsidiary Corporation and any parent or subsidiary corporation (within the meaning of section 422(a)(2)
of the Code) of any such corporation that issues or assumes an Incentive Stock Option in a transaction to which section 424(a)
of the Code applies.

 

2.63         “Voting
Securities” means securities entitled to vote for the directors of the applicable Entity.

 

Article
III

 

ELIGIBILITY
and participation

 

3.1           Eligibility.
Except as otherwise specified in this Section 3.1, the persons who are eligible to receive Awards under the Plan, other than
Incentive Stock Options, are people who are Directors and Consultants, or who are, or expected to become, within three months after
the dates of grant of Awards, Employees. Only those persons who are, on the dates of grant, key employees of the Company or any
Parent Corporation or Subsidiary Corporation are eligible for grants of Incentive Stock Options under the Plan.

 

3.2           Participation.
Subject to the terms and provisions of the Plan, the Committee may, from time to time, select the eligible persons to whom Awards
shall be granted and shall determine the nature and amount of each Award.

 

Article
IV

 

GENERAL
PROVISIONS RELATING TO AWARDS

 

4.1           Authority
to Grant Awards. The Committee may grant Awards to those key Employees and other eligible persons as the Committee shall from
time to time determine, under the terms and conditions of the Plan. Subject only to any applicable limitations set out in the Plan,
the number of Shares or other value to be covered by any Award to be granted under the Plan shall be as determined by the Committee
in its sole discretion. On an annual basis, the Compensation Committee also may delegate to the Chief Executive Officer of the
Company the ability to grant Awards (other than Awards pursuant to Article VIII) to eligible persons who are neither (1) Directors
or officers of the Company or any Affiliate nor (2) subject to the provisions of Section 16 of the Exchange Act.

 

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4.2           Number
of Shares Available for Awards. Subject to adjustment as provided in Section 4.5, the aggregate number of Shares that may be
issued under the Plan shall be 2,000,000 Shares (“Plan Share Limit”). The Shares that are available for
issuance under the Plan may be issued in any form of Award authorized under the Plan. Any Shares that are the subject of Awards
under the Plan that are forfeited or terminated, expire unexercised, are settled in cash in lieu of Shares or in a manner such
that all or some of the Shares covered by an Award are not issued to a Participant or are exchanged for Awards that do not involve
Shares shall again immediately become available to be issued pursuant to Awards granted under the Plan. If Shares are withheld
from payment of an Award to satisfy tax obligations with respect to the Award, such Shares shall be treated as Shares that have
been issued under the Plan, and the number of any such Shares shall not again be available for issuance under the Plan. If Shares
are tendered in payment of an exercise price of an Option or the exercise price of a SAR, any such Shares shall not be available
for issuance under the Plan.

 

The following
rules shall apply to grants of Awards under the Plan:

 

(a)          Incentive
Stock Options. The aggregate number of Shares with respect to which Incentive Stock Options may be granted under the Plan is
1,000,000 Shares.

 

(b)          Options.
The maximum aggregate number of Shares that may be subject to an Option granted in any one calendar year to any one employee shall
be 1,000,000 Shares determined as of the date of grant.

 

(c)          SARs.
The maximum aggregate number of Shares that may be granted pursuant to a SAR granted in any one calendar year to any one employee
shall be 1,000,000 Shares, determined as of the date of grant.

 

(d)          Performance
Awards. The maximum aggregate grant with respect to Performance Awards made in any one calendar year to any one employee that
are payable in Shares shall be 1,000,000 Shares, determined as of the date of grant. The maximum aggregate amount awarded or credited
with respect to Performance Awards to any one employee in any one calendar year that are payable in cash shall not exceed $5,000,000
in value, determined as of the date of grant. The limitations set forth in this clause (iv) shall be applied in a manner that is
consistent with the provisions of Section 162(m).

 

    	- 9 -

    	 

    

 

(e)          Manner
in Which Full Value Awards and Awards Other Than Full Value Awards Count Against the Plan Share Limit. Shares that are issued
under a Full Value Award shall be counted against the Plan Share Limit as one Share for every one Share so issued. Shares that
are issued under any form of Award other than a Full Value Award shall be counted against the Plan Share Limit as one Share for
every one Share so issued. To the extent that a Full Value Award is forfeited, lapses, expires, or is settled in cash in lieu of
Shares, one (1.00) multiplied by the number of Shares that were subject to such portion of the Full Value Award shall again become
available for issuance under the Plan. To the extent that an Award other than a Full Value Award is forfeited, lapses, expires,
or is settled in cash in lieu of Shares, one (1.00) multiplied by the number of Shares that were subject to such portion of the
Award shall again become available for issuance under the Plan.

 

(f)          Adjustments.
Each of the foregoing numerical limits stated in this Section 4.2 shall be subject to adjustment in accordance with the provisions
of Section 4.5.

 

4.3           Non-Transferability.
Except as specified in the applicable Award Agreement or in a domestic relations court order, an Award shall not be transferable
by the Holder (whether for consideration or otherwise) other than by will or under the laws of descent and distribution, and shall
be exercisable, during the Holder’s lifetime, only by him or her. Any attempted assignment of an Award in violation of this
Section 4.3 shall be null and void. In the discretion of the Committee, any attempt to transfer an Award other than under
the terms of the Plan and the applicable Award Agreement may terminate the Award. No Incentive Stock Option granted under the Plan
may be sold, transferred, pledged, assigned or otherwise alienated or hypothecated, other than by will or by the laws of descent
and distribution. Further, all Incentive Stock Options granted to an Employee under the Plan shall be exercisable during his or
her lifetime only by the Employee, and after that time, by the Employee's heirs or estate. To the extent permitted under
a Participant’s Option Agreement, a NSO, in the discretion of the Committee, a Participant may transfer a NSO to a member
of the Participant’s Immediate Family, to a trust solely for the benefit of the Participant and the Participant’s Immediate
Family, or to a partnership or limited liability company whose only partners or shareholders are the Participant and members of
the Participant’s Immediately Family.

 

4.4           Requirements
of Law. The Company shall not be required to sell or issue any Shares under any Award if issuing those Shares would constitute
or result in a violation by the Holder or the Company of any provision of any law, statute or regulation of any governmental authority.
Specifically, in connection with any applicable statute or regulation relating to the registration of securities, upon exercise
of any Option or pursuant to any other Award, the Company shall not be required to issue any Shares unless the Committee has received
evidence satisfactory to it to the effect that the Holder will not transfer the Shares except in accordance with applicable law,
including receipt of an opinion of counsel satisfactory to the Company to the effect that any proposed transfer complies with applicable
law. The determination by the Committee on this matter shall be final, binding and conclusive. The Company may, but shall in no
event be obligated to, register any Shares covered by the Plan pursuant to applicable securities laws of any country or any political
subdivision. In the event the Shares issuable on exercise of an Option or pursuant to any other Award are not registered, the Company
may imprint on the certificate evidencing the Shares any legend that counsel for the Company considers necessary or advisable to
comply with applicable law, or, should the Shares be represented by book or electronic entry rather than a certificate, the Company
may take such steps to restrict transfer of the Shares as counsel for the Company considers necessary or advisable to comply with
applicable law. The Company shall not be obligated to take any other affirmative action in order to cause or enable the exercise
of an Option or any other Award, or the issuance of Shares pursuant thereto, to comply with any law or regulation of any governmental
authority.

 

    	- 10 -

    	 

    

 

4.5           Changes
in the Company’s Capital Structure.

 

(a)          The
existence of outstanding Awards shall not affect in any way the right or power of the Company or its stockholders to make or authorize
any or all adjustments, recapitalizations, reorganizations or other changes in the Company’s capital structure or its business,
any merger or consolidation of the Company, any issue of bonds, debentures, preferred or prior preference shares ahead of or affecting
the Stock or Stock rights, the dissolution or liquidation of the Company, any sale or transfer of all or any part of its assets
or business or any other corporate act or proceeding, whether of a similar character or otherwise.

 

(b)          If
the Company shall effect a subdivision or consolidation of Stock or other capital readjustment, the payment of a Stock dividend,
or other increase or reduction of the number of shares of Stock outstanding, without receiving compensation therefor in money,
services or property, then (1) the number, class or series and per share price of Stock subject to outstanding Options or
other Awards under the Plan shall be appropriately adjusted (subject to the restriction in Sections 5.12 and 11.1 prohibiting repricing
without stockholder approval) in such a manner as to entitle a Holder to receive upon exercise of an Option or other Award, for
the same aggregate cash consideration, the equivalent total number and class or series of Stock the Holder would have received
had the Holder exercised his or her Option or other Award in full immediately prior to the event requiring the adjustment, and
(2) the number and class or series of Stock then reserved to be issued under the Plan shall be adjusted by substituting for
the total number and class or series of Stock then reserved that number and class or series of Stock that would have been received
by the owner of an equal number of outstanding shares of each class or series of Stock as the result of the event requiring the
adjustment.

 

(c)          If
while unexercised Options or other Awards remain outstanding under the Plan (1) the Company shall not be the surviving entity
in any merger, consolidation or other reorganization (or survives only as a subsidiary of an entity other than an entity that was
wholly-owned by the Company immediately prior to such merger, consolidation or other reorganization), (2) the Company sells,
leases or exchanges or agrees to sell, lease or exchange all or substantially all of its assets to any other person or entity (other
than an entity wholly-owned by the Company), (3) the Company is to be dissolved or (4) the Company is a party to any
other corporate transaction (as defined under section 424(a) of the Code) that is not described in clauses (1), (2) or (3)
of this sentence (each such event is referred to herein as a “Corporate Change”), then, except as otherwise
provided in Article XII, an Award Agreement or another agreement between the Holder and the Company (provided that such exceptions
shall not apply in the case of a reincorporation merger or conversion), or as a result of the Committee’s effectuation of
one or more of the alternatives described below, there shall be no acceleration of the time at which any Award then outstanding
may be exercised, and no later than ten days after the approval by the stockholders of the Company of such Corporate Change, the
Committee, acting in its sole and absolute discretion without the consent or approval of any Holder, shall act to effect one or
more of the following alternatives, which may vary among individual Holders and which may vary among Awards held by any individual
Holder (provided that, with respect to a reincorporation merger or conversion in which Holders of the Company’s ordinary
shares will receive the percentage of shares of the successor corporation, none of such alternatives shall apply and, without Committee
action, each Award shall automatically convert into a similar award of the successor corporation exercisable for the same percentage
of ordinary shares of the successor as the Award was exercisable for Shares):

 

    	- 11 -

    	 

    

 

(1)         accelerate
the time at which some or all of the Awards then outstanding may be exercised so that such Awards may be exercised in full for
a limited period of time on or before a specified date (before or after such Corporate Change) fixed by the Committee, after which
specified date all such Awards that remain unexercised and all rights of Holders thereunder shall terminate;

 

(2)         require
the mandatory surrender to the Company by all or selected Holders of some or all of the then outstanding Awards held by such Holders
(irrespective of whether such Awards are then exercisable under the provisions of the Plan or the applicable Award Agreement evidencing
such Award) as of a date, before or after such Corporate Change, specified by the Committee, in which event the Committee shall
thereupon cancel such Award and the Company shall pay to each such Holder an amount of cash per Share equal to the excess, if any,
of the per Share price offered to stockholders of the Company in connection with such Corporate Change over the exercise prices
under such Award for such Shares;

 

(3)         with
respect to all or selected Holders, have some or all of their then outstanding Awards (whether vested or unvested) assumed or have
a new award of a similar nature substituted for some or all of their then outstanding Awards under the Plan (whether vested or
unvested) by an entity which is a party to the transaction resulting in such Corporate Change and which is then employing such
Holder or which is affiliated or associated with such Holder in the same or a substantially similar manner as the Company prior
to the Corporate Change, or a parent or subsidiary of such entity, provided that (A) such assumption or substitution is on
a basis where the excess of the aggregate fair market value of the Stock subject to the Award immediately after the assumption
or substitution over the aggregate exercise price of such Stock is equal to the excess of the aggregate fair market value of all
Stock subject to the Award immediately before such assumption or substitution over the aggregate exercise price of such Stock,
and (B) the assumed rights under such existing Award or the substituted rights under such new Award, as the case may be, will
have the same terms and conditions as the rights under the existing Award assumed or substituted for, as the case may be;

 

    	- 12 -

    	 

    

 

(4)         provide
that the number and class or series of Stock covered by an Award (whether vested or unvested) theretofore granted shall be adjusted
so that such Award when exercised shall thereafter cover the number and class or series of Stock or other securities or property
(including cash) to which the Holder would have been entitled pursuant to the terms of the agreement or plan relating to such Corporate
Change if, immediately prior to such Corporate Change, the Holder had been the holder of record of the number of Shares then covered
by such Award; or

 

(5)         make
such adjustments to Awards then outstanding as the Committee deems appropriate to reflect such Corporate Change (provided, however,
that the Committee may determine in its sole and absolute discretion that no such adjustment is necessary).

 

In effecting
one or more of the alternatives set out in paragraphs (3), (4) or (5) immediately above, and except as otherwise may be provided
in an Award Agreement, the Committee, in its sole and absolute discretion and without the consent or approval of any Holder, may
accelerate the time at which some or all Awards then outstanding may be exercised.

 

(d)          In
the event of changes in the outstanding Stock by reason of recapitalizations, reorganizations, mergers, consolidations, conversion,
combinations, exchanges or other relevant changes in capitalization occurring after the date of the grant of any Award and not
otherwise provided for by this Section 4.5, any outstanding Award and any Award Agreement evidencing such Award shall be subject
to adjustment by the Committee in its sole and absolute discretion as to the number and price of Stock or other consideration subject
to such Award. In the event of any such change in the outstanding Stock, the aggregate number of Shares available under the Plan
may be appropriately adjusted by the Committee, whose determination shall be conclusive.

 

(e)          After
a merger of one or more corporations into the Company or after a consolidation of the Company and one or more corporations in which
the Company shall be the surviving corporation, each Holder shall be entitled to have his Restricted Stock appropriately adjusted
based on the manner in which the Shares were adjusted under the terms of the agreement of merger or consolidation.

 

(f)          The
issuance by the Company of stock of any class or series, or securities convertible into, or exchangeable for, stock of any class
or series, for cash or property, or for labor or services either upon direct sale or upon the exercise of rights or warrants to
subscribe for them, or upon conversion or exchange of stock or obligations of the Company convertible into, or exchangeable for,
stock or other securities, shall not affect, and no adjustment by reason of such issuance shall be made with respect to, the number,
class or series, or price of Shares then subject to outstanding Options or other Awards.

 

4.6           Election
Under Section 83(b) of the Code. No Holder shall exercise the election permitted under section 83(b) of the Code
with respect to any Award without the prior written approval of the Chief Financial Officer of the Company. Any Holder who makes
an election under section 83(b) of the Code with respect to any Award without the prior written notice to the Chief Financial
Officer of the Company may, in the discretion of the Committee, forfeit any or all Awards granted to him or her under the Plan.

 

    	- 13 -

    	 

    

 

4.7           Forfeiture
for Cause. Notwithstanding any other provision of the Plan or an Award Agreement, if the Committee finds by a majority vote
that a Holder, before or after his Termination of Employment or severance of affiliation relationship with the Company and all
Affiliates, (a) committed fraud, embezzlement, theft, felony or an act of dishonesty in the course of his employment by or
affiliation with the Company or an Affiliate which conduct damaged the Company or an Affiliate, (b) disclosed trade secrets
of the Company or an Affiliate or (c) violated the terms of any non-competition, non-disclosure or similar agreement with
respect to the Company or any Affiliate to which the Holder is a party, then as of the date the Committee makes its finding some
or all Awards awarded to the Holder (including vested Awards that have been exercised, vested Awards that have not been exercised
and Awards that have not yet vested), as determined by the Committee in its sole discretion, and all net proceeds realized with
respect to any such Awards, will be forfeited to the Company on such terms as determined by the Committee. The findings and decision
of the Committee with respect to such matter, including those regarding the acts of the Holder and the damage done to the Company,
will be final for all purposes. No decision of the Committee, however, will affect the finality of the discharge of the individual
by the Company or an Affiliate or severance of the individual’s affiliation with the Company and all Affiliates.

 

4.8           Forfeiture
Events. Without limiting the applicability of Section 4.7 or Section 4.9, the Committee may specify in an Award Agreement that
the Holder’s rights, payments, and benefits with respect to an Award shall be subject to reduction, cancellation, forfeiture,
or recoupment upon the occurrence of certain specified events, in addition to any otherwise applicable vesting or performance conditions
of an Award. Such events may include, but shall not be limited to, Termination of Employment for cause, termination of the Holder’s
provision of services to the Company or its Affiliates, violation of material policies of the Company and its Affiliates, breach
of noncompetition, confidentiality, or other restrictive covenants that may apply to the Holder, or other conduct by the Holder
that is detrimental to the business or reputation of the Company and its Affiliates.

 

4.9           Recoupment
in Restatement Situations. Without limiting the applicability of Section 4.7 or Section 4.8, if the Company is required to
prepare an accounting restatement due to the material noncompliance of the Company with any financial reporting requirement under
applicable securities laws, the current or former Holder who was a current or former executive officer of the Company shall forfeit
and must repay to the Company any compensation awarded under the Plan to the extent specified in any of the Company’s recoupment
policies established or amended (now or in the future) in compliance with the rules and standards of the Securities and Exchange
Commission Committee under or in connection with Section 954 of the Dodd-Frank Wall Street Reform and Consumer Protection Act.

 

4.10         Award
Agreements. Each Award shall be embodied in a written Award Agreement that shall be subject to the terms and conditions of
the Plan. The Award Agreement shall be signed by an executive officer of the Company, other than the Holder, on behalf of the Company,
and may be signed by the Holder to the extent required by the Committee. The Award Agreement may specify the effect of a Change
of Control on the Award. The Award Agreement may contain any other provisions that the Committee in its discretion shall deem advisable
which are not inconsistent with the terms and provisions of the Plan.

 

    	- 14 -

    	 

    

 

4.11         Amendments
of Award Agreements. The terms of any outstanding Award under the Plan may be amended from time to time by the Committee in
its discretion in any manner that it deems appropriate and that is consistent with the terms of the Plan. However, no such amendment
shall adversely affect in a material manner any right of a Holder without his or her written consent.

 

4.12         Rights
as Stockholder. A Holder shall not have any rights as a stockholder with respect to Stock covered by an Option, a Restricted
Stock Unit Award, or a Performance Unit, in each case, payable in Stock, until the date, if any, such Stock is issued by the Company,
and, except as otherwise provided in Section 4.5, no adjustment for dividends, or otherwise, shall be made if the record date
therefor is prior to the date of issuance of such Stock.

 

4.13         Issuance
of Shares of Stock. Shares, when issued, may be represented by a certificate or by book or electronic entry.

 

4.14         Restrictions
on Stock Received. The Committee may impose such conditions and/or restrictions on any Shares issued pursuant to an Award as
it may deem advisable or desirable. These restrictions may include, but shall not be limited to, a requirement that the Holder
hold the Shares for a specified period of time.

 

4.15         Compliance
With Section 409A. Awards shall be designed, granted and administered in such a manner that they are either exempt from
the application of, or comply with, the requirements of Section 409A. The Plan and each Award Agreement under the Plan that
is intended to comply the requirements of Section 409A shall be construed and interpreted in accordance with such intent.
If the Committee determines that an Award, Award Agreement, payment, distribution, deferral election, transaction, or any other
action or arrangement contemplated by the provisions of the Plan would, if undertaken, cause a Holder to become subject to additional
taxes under Section 409A, then unless the Committee specifically provides otherwise, such Award, Award Agreement, payment, distribution,
deferral election, transaction or other action or arrangement shall not be given effect to the extent it causes such result and
the related provisions of the Plan and/or Award Agreement will be deemed modified, or, if necessary, suspended in order to comply
with the requirements of Section 409A to the extent determined appropriate by the Committee, in each case without the consent of
or notice to the Holder. The exercisability of an Option shall not be extended to the extent that such extension would subject
the Holder to additional taxes under Section 409A.

 

4.16         Source
of Shares Deliverable Under Awards. Any Shares delivered pursuant to an Award may consist, in whole or in part, of authorized
and unissued shares of Stock or of treasury shares of Stock.

 

4.17         Date
of Grant. The date on which an Option is granted shall be the date the Company completes the corporate action constituting
an offer of stock for sale to a Holder under the terms and conditions of the Option; provided that such corporate action
shall not be considered complete until the date on which the maximum number of Shares that can be purchased under the Option
and the minimum exercise price are fixed or determinable. If the corporate action contemplates an immediate offer of Stock for
sale to a class of individuals, then the date of the granting of an Option is the time or date of that corporate action, if the
offer is to be made immediately. If the corporate action contemplates a particular date on which the offer is to be made, then
the date of grant is the contemplated date of the offer.

 

    	- 15 -

    	 

    

 

Article
V

 

OPTIONS
and stock appreciation rights

 

5.1           Authority
to Grant Options. Subject to the terms and provisions of the Plan, the Committee, at any time, and from time to time, may grant
Options and Stock Appreciation Rights under the Plan to eligible persons in such number and upon such terms as the Committee shall
determine.

 

5.2           Type
of Options Available. Options granted under the Plan may be Nonqualified Stock Options or Incentive Stock Options.

 

5.3           Option
Agreement. Each Option grant under the Plan shall be evidenced by an Option Agreement that shall specify (a) whether the
Option is intended to be an Incentive Stock Option or a Nonqualified Stock Option, (b) the Option Price, (c) the duration
of the Option, (d) the number of Shares to which the Option pertains, (e) the exercise restrictions applicable to the
Option and (f) such other provisions as the Committee shall determine that are not inconsistent with the terms and provisions
of the Plan. Notwithstanding the designation of an Option as an Incentive Stock Option in the applicable Award Agreement for such
Option, to the extent the limitations of Section 5.9 of the Plan are exceeded with respect to the Option, the portion of the
Option in excess of the limitation shall be treated as an NSO. An Option granted under the Plan may not be granted with any Dividend
Equivalents rights.

 

5.4           Option
Price. The price at which Shares may be purchased under an Option (the “Option Price”) shall not be less
than 100 percent (100%) of the Fair Market Value of the Shares on the date the Option is granted. However, in the case of a Ten
Percent Stockholder, the Exercise Price for an Incentive Stock Option shall not be less than 110 percent (110%) of the Fair Market
Value of the Shares on the date the Incentive Stock Option is granted. Subject to the limitations set forth in the preceding sentences
of this Section 5.4, the Committee shall determine the Option Price for each grant of an Option under the Plan.

 

5.5           Duration
of Option. An Option shall not be exercisable after the earlier of (i) the general term of the Option specified in the
applicable Award Agreement (which shall not exceed ten years) or (ii) the period of time specified in the applicable Award
Agreement that follows the Holder’s Termination of Employment or severance of affiliation relationship with the Company.
Unless the applicable Award Agreement specifies a shorter term, in the case of an Incentive Stock Option granted to a Ten Percent
Stockholder, the Option shall expire on the fifth anniversary of the date the Option is granted.

 

5.6           Amount
Exercisable. Each Option may be exercised at the time, in the manner and subject to the conditions the Committee specifies
in the Award Agreement in its sole discretion.

 

    	- 16 -

    	 

    

 

5.7           Exercise
of Option.

 

(a)          General
Method of Exercise. Subject to the terms and provisions of the Plan and the applicable Award Agreement, Options may be exercised
in whole or in part from time to time by the delivery of written notice in the manner designated by the Committee stating (1) that
the Holder wishes to exercise such Option on the date such notice is so delivered, (2) the number of Shares with respect to
which the Option is to be exercised and (3) the address to which any certificate representing such Shares should be mailed
or delivered. Except in the case of exercise by a third party broker as provided below, in order for the notice to be effective
the notice must be accompanied by payment of the Option Price by any combination of the following: (a) cash, certified check,
bank draft or postal or express money order for an amount equal to the Option Price under the Option, (b) an election to make
a cashless exercise through a registered broker-dealer (if approved in advance by the Committee or an executive officer of the
Company) or (c) any other form of payment which is acceptable to the Committee.

 

(b)          Exercise
Through Third-Party Broker. The Committee may permit a Holder to elect to pay the Option Price and any applicable tax withholding
resulting from such exercise by authorizing a third-party broker to sell all or a portion of the Shares acquired upon exercise
of the Option and remit to the Company a sufficient portion of the sale proceeds to pay the Option Price and any applicable tax
withholding resulting from such exercise.

 

5.8           Notification
of Disqualifying Disposition. If any Participant shall make any disposition of Shares issued pursuant to the exercise of an
Incentive Stock Option under the circumstances described in section 421(b) of the Code (relating to certain disqualifying
dispositions), such Participant shall notify the Company of such disposition within ten (10) days thereof.

 

5.9           $100,000
Limitation on Incentive Stock Options. To the extent that the aggregate Fair Market Value of Stock with respect to which Incentive
Stock Options first become exercisable by a Holder in any calendar year exceeds $100,000, taking into account both Shares subject
to Incentive Stock Options under the Plan and Stock subject to Incentive Stock Options under all other plans of the Company, such
Options shall be treated as NSOs. For this purpose, the “Fair Market Value” of the Stock subject to Options shall be
determined as of the date(s) the Options were awarded. In reducing the number of Options treated as Incentive Stock Options to
meet the $100,000 limit, the most recently granted Options shall be reduced first. To the extent a reduction of simultaneously
granted Options is necessary to meet the $100,000 limit, the Committee may, in the manner and to the extent permitted by law, designate
which Shares are to be treated as shares acquired pursuant to the exercise of an Incentive Stock Option.

 

5.10         Duration
of SAR. A SAR shall not be exercisable after the earlier of (i) the general term of the SAR specified in the applicable
SAR Agreement (which shall not exceed ten years) or (ii) the period of time specified in the applicable SAR Agreement that
follows the Holder’s Termination of Employment or severance of affiliation relationship with the Company.

 

    	- 17 -

    	 

    

 

5.11         SAR
Agreement. Each SAR shall be evidenced by a SAR Agreement in such form and containing such provisions not inconsistent with
the provisions of the Plan as the Committee from time to time shall approve. The terms and conditions of the respective SAR Agreements
need not be identical. Subject to the consent of the Participant, the Committee may, in its sole discretion, amend an outstanding
SAR Agreement from time to time in any manner that is not inconsistent with the provisions of the Plan (including an amendment
that accelerates the time at which the SAR, or a portion thereof, may be exercisable). Unless otherwise set forth in a SAR Agreement,
upon the exercise of a SAR, a Holder shall be entitled to receive payment from the Company in an amount determined by multiplying
(i) the difference between the value of a Share on the date of exercise over the grant price by (ii) the number of Shares with
respect to which the SAR is exercised. The per Share grant price for a SAR shall be established on the date of grant of the SAR
and shall not be less than the Fair Market Value of a Share on the date of grant. At the discretion of the Committee, the payment
made to a Holder upon the exercise of a SAR may be in cash, in Shares or in any combination thereof. The Committee’s determination
regarding the form of payment may be set out in the applicable SAR Agreement pertaining to the grant of the SAR.

 

5.12         Restrictions
on Repricing of Stock Options or Stock Appreciation Rights. Except as provided in Section 4.5, the Committee may not, without
approval of the stockholders of the Company, amend any outstanding Option Agreement to lower the Option Price or amend any outstanding
SAR Agreement to lower the SAR grant price (or cancel and replace any outstanding Option Agreement with Option Agreements having
a lower exercise price) or to lower the SAR grant price (or cancel and replace any outstanding SAR with SAR Agreements having a
lower SAR grant price). Further, the Committee may not lower an exercise price of an Option (or cancel and replace any outstanding
Option Agreement with Option Agreements having a lower exercise price) or lower the SAR grant price (or cancel and replace any
outstanding SAR with SAR Agreements having a lower SAR grant price) to the extent that doing so would subject the Holder to additional
taxes under Section 409A.

 

Article
VI

 

RESTRICTED
Stock AWARDS

 

6.1           Restricted
Stock Awards. Subject to the terms and provisions of the Plan, the Committee, at any time, and from time to time, may make
Awards of Restricted Stock under the Plan to eligible persons in such number and upon such terms as the Committee shall determine.
The amount of, the vesting and the transferability restrictions applicable to any Restricted Stock Award shall be determined by
the Committee in its sole discretion. If the Committee imposes vesting or transferability restrictions on a Holder’s rights
with respect to Restricted Stock, the Committee may issue such instructions to the Company’s share transfer agent in connection
therewith as it deems appropriate. The Committee may also cause the certificate for Shares issued pursuant to a Restricted Stock
Award to be imprinted with any legend which counsel for the Company considers advisable with respect to the restrictions or, should
the Shares be represented by book or electronic entry rather than a certificate, the Company may take such steps to restrict transfer
of the Shares as counsel for the Company considers necessary or advisable to comply with applicable law.

 

    	- 18 -

    	 

    

 

6.2           Restricted
Stock Award Agreement. Each Restricted Stock Award shall be evidenced by a Restricted Stock Award Agreement that contains any
vesting, transferability restrictions and other provisions not inconsistent with the Plan as the Committee may specify.

 

6.3           Holder’s
Rights as Stockholder. Subject to the terms and conditions of the Plan, each recipient of a Restricted Stock Award shall have
all the rights of a stockholder with respect to the shares of Restricted Stock included in the Restricted Stock Award during the
Period of Restriction established for the Restricted Stock Award. Dividends paid in Shares or rights to acquire Shares shall be
added to and become a part of the Restricted Stock. During the Period of Restriction, certificates representing the Restricted
Stock shall be registered in the Holder’s name and bear a restrictive legend to the effect that ownership of such Restricted
Stock, and the enjoyment of all rights appurtenant thereto, are subject to the restrictions, terms, and conditions provided in
the Plan and the applicable Award Agreement. Such certificates shall be deposited by the recipient with the Secretary of the Company
or such other officer of the Company as may be designated by the Committee, together with all stock powers or other instruments
of assignment as may be required by the Company, each endorsed in blank, which will permit transfer to the Company of all or any
portion of the Restricted Stock which shall be forfeited in accordance with the Plan and the applicable Award Agreement.

 

Article
VII

 

RESTRICTED
STOCK UNIT AWARDS

 

7.1           Authority
to Grant Restricted Stock Unit Awards. Subject to the terms and provisions of the Plan, the Committee, at any time, and from
time to time, may grant Restricted Stock Unit Awards under the Plan to eligible persons in such amounts and upon such terms as
the Committee shall determine. The amount of, the vesting and the transferability restrictions applicable to any Restricted Stock
Unit Award shall be determined by the Committee in its sole discretion. The Committee shall maintain a bookkeeping ledger account
which reflects the number of Restricted Stock Units credited under the Plan for the benefit of a Holder.

 

7.2           Restricted
Stock Unit Award. A Restricted Stock Unit Award shall be similar in nature to a Restricted Stock Award except that no Shares
are actually transferred to the Holder until a later date specified in the applicable Award Agreement. Each Restricted Stock Unit
shall have a value equal to the Fair Market Value of a Share.

 

7.3           Restricted
Stock Unit Award Agreement. Each Restricted Stock Unit Award shall be evidenced by a Restricted Stock Unit Award Agreement
that contains any Substantial Risk of Forfeiture, transferability restrictions, form and time of payment provisions and other provisions
not inconsistent with the Plan as the Committee may specify.

 

7.4           Form
of Payment Under Restricted Stock Unit Award. Payment under a Restricted Stock Unit Award shall be made in either cash or Shares
as specified in the applicable Award Agreement.

 

7.5           Time
of Payment Under Restricted Stock Unit Award” A Holder’s payment under a Restricted Stock Unit Award shall be made
at such time as is specified in the applicable Award Agreement. The Award Agreement shall specify that the payment will be made
(1) by a date that is no later than the date that is two and one-half (2 1/2) months after the end of the Fiscal Year in which
the Restricted Stock Unit Award payment is no longer subject to a Substantial Risk of Forfeiture or (2) at a time that is permissible
under Section 409A.

 

    	- 19 -

    	 

    

 

Article
VIII

 

PERFORMANCE
STOCK AWARDS AND

PERFORMANCE
UNIT Awards

 

8.1           Authority
to Grant Performance Stock Awards and Performance Unit Awards. Subject to the terms and provisions of the Plan, the Committee,
at any time, and from time to time, may grant Performance Stock Awards and Performance Unit Awards under the Plan to eligible persons
in such amounts and upon such terms as the Committee shall determine. The amount of, the vesting and the transferability restrictions
applicable to any Performance Stock Award and Performance Unit Award shall be based upon the attainment of such Performance Goals
as the Committee may determine; provided, however, that the performance period for any Performance Stock Award or Performance Unit
Award shall not be less than one year. If the Compensation Committee imposes vesting or transferability restrictions on a Holder’s
rights with respect to Performance Stock Awards or Performance Unit Awards, the Compensation Committee may issue such instructions
to the Company’s share transfer agent in connection therewith as it deems appropriate. The Compensation Committee may also
cause the certificate for Shares issued pursuant to a Performance Stock Award or Performance Unit Award to be imprinted with any
legend which counsel for the Company considers advisable with respect to the restrictions or, should the Shares be represented
by book or electronic entry rather than a certificate, the Company may take such steps to restrict transfer of the Shares as counsel
for the Company considers necessary or advisable to comply with applicable law.

 

8.2         Performance
Goals and Performance Criteria. A Performance Goal must be objective such that a third party having knowledge of the
relevant facts could determine whether the goal is met. Such a Performance Goal may be based on one or more business criteria
that apply to the Holder, one or more business units of the Company, or the Company as a whole, with reference to one or more
of the following: earnings per share, earnings per share growth, total shareholder return, economic value added, cash return
on capitalization, increased revenue, revenue ratios (per employee or per customer), earnings or adjusted earnings before or
after interest, taxes, depletion, depreciation or amortization, net income (before or after taxes), stock price, market
share, return on equity, return on assets, return on capital, return on capital compared to cost of capital, return on
capital employed, return on invested capital, return on investment, return on sales, operating or profit margins, shareholder
value, net cash flow, operating income, earnings before or after interest, taxes, depreciation, depletion and amortization,
cash flow, cash flow from operations, cost reductions or cost savings, cost ratios (per employee or per customer), expense
control, sales, proceeds from dispositions, project completion time, budget goals, net cash flow before financing activities,
customer growth, total capitalization, debt to total capitalization ratio, credit quality or debt ratings, dividend payout,
dividend growth, reserve additions or revisions, production volumes or safety results. Goals may also be based on performance
relative to a peer group of companies. Unless otherwise stated, such a
Performance Goal need not be based upon an increase or positive result under a particular business criterion and could
include, for example, maintaining the status quo or limiting economic losses (measured, in each case, by reference
to specific business criteria). Performance Goals will be determined by including or excluding items that are determined to
be extraordinary, unusual in nature, infrequent in occurrence, related to the disposal or acquisition of a segment of a
business, or related to a change in accounting principal, in each case, based on Financial Accounting Standards Board (FASB)
Accounting Standards Codification (ASC) 225-20, Income Statement, Extraordinary and Unusual Items, and FASB ASC
830-10, Foreign Currency Matters, Overall, or other applicable accounting rules, or consistent with Company accounting
policies and practices in effect on the date the Performance Goal is established. In interpreting Plan provisions applicable
to Performance Goals and Performance Stock Awards or Performance Unit Awards, it is intended that the Plan will conform with
the standards of Section 162(m) and Department of Treasury Regulations § 1.162-27(e)(2), and the Compensation
Committee in establishing such goals and interpreting the Plan shall be guided by such provisions. Prior to the payment of
any compensation based on the achievement of Performance Goals, the Compensation Committee must certify in writing that
applicable Performance Goals and any of the material terms thereof were, in fact, satisfied. Subject to the foregoing
provisions, the terms, conditions and limitations applicable to any Performance Stock or Performance Unit Awards made
pursuant to the Plan shall be determined by the Compensation Committee.

 

    	- 20 -

    	 

    

 

8.3         Time
of Establishment of Performance Goals. With respect to a Covered Employee, a Performance Goal for a particular Performance
Stock Award or Performance Unit Award must be established by the Compensation Committee prior to the earlier to occur of (a) 90
days after the commencement of the period of service to which the Performance Goal relates or (b) the lapse of 25 percent
of the period of service, and in any event while the outcome is substantially uncertain.

 

8.4         Written
Agreement. Each Performance Stock Award and Performance Unit Award shall be evidenced by a Performance Stock Award Agreement
or Performance Unit Award Agreement that contains any vesting, transferability restrictions and other provisions not inconsistent
with the Plan as the Compensation Committee may specify.

 

8.5         Form
of Payment Under Performance Unit Award. Payment under a Performance Unit Award shall be made in cash and/or Shares as specified
in the Holder’s Award Agreement.

 

8.6         Time
of Payment Under Performance Unit Award. A Holder’s payment under a Performance Unit Award shall be made at such time
as is specified in the applicable Award Agreement. The Award Agreement shall specify that the payment will be made (a) by
a date that is no later than the date that is two and one-half (2 1/2) months after the end of the calendar year in which the Performance
Unit Award payment is no longer subject to a Substantial Risk of Forfeiture or (b) at a time that is permissible under Section 409A.

 

8.7         Holder’s
Rights as Stockholder With Respect to a Performance Stock Award. Subject to the terms and conditions of the Plan and the applicable
Award Agreements, each Holder of a Performance Stock Award shall have all the rights of a stockholder with respect to the Shares
issued to the Holder pursuant to the Award during any period in which such issued Shares are subject to forfeiture and restrictions
on transfer, including the right to vote such Shares.

 

    	- 21 -

    	 

    

  

8.8         Increases
Prohibited. None of the Compensation Committee, the Board or the Company may increase the amount of compensation payable under
a Performance Stock Award or Performance Unit Award. The Compensation Committee may adjust downward, but not upward, the amount
payable pursuant to such Award, and the Compensation Committee may not waive the achievement of the applicable Performance Goals,
except in the case of a change in ownership or control of the Company (as defined for purposes of Section 162(m)) or the death
or Disability of the Participant. If the time at which a Performance Stock Award or Performance Unit Award will vest or be paid
is accelerated for any reason, the number of Shares subject to, or the amount payable under, the Performance Stock Award or Performance
Unit Award shall be reduced to the extent required under Department of Treasury Regulation § 1.162-27(e)(2)(iii) to reasonably
reflect the time value of money.

 

8.9         Stockholder
Approval. No payments of Stock or cash will be made to a Covered Employee pursuant to this Article VIII unless the stockholder
approval requirements of Department of Treasury Regulation § 1.162-27(e)(4) are satisfied.

 

8.10       Dividends.
In the case of a Performance Share Award, if the Holder shall become entitled to the payment of dividends paid in Shares or rights
to acquire Shares with respect to the Performance Shares, such dividends shall be added to and become a part of the Performance
Share Award. Accordingly, such dividends will be subject to the satisfaction of the same performance conditions as apply to the
Performance Shares.

 

Article
IX

 

SUBSTITUTION
AWARDS

 

Awards may be granted
under the Plan from time to time in substitution for stock options and other awards held by employees and directors of other entities
who are about to become Employees or affiliated with the Company or any of its Affiliates, or whose employer or corporation with
respect to which it provides services is about to become an Affiliate as the result of a merger or consolidation of the Company
with another corporation, or the acquisition by the Company of substantially all the assets of another corporation, or the acquisition
by the Company of at least fifty percent (50%) of the issued and outstanding stock of another corporation as the result of which
such other corporation will become a subsidiary of the Company. The terms and conditions of the substitute Awards so granted may
vary from the terms and conditions set forth in the Plan to such extent as the Board at the time of grant may deem appropriate
to conform, in whole or in part, to the provisions of the award in substitution for which they are granted. The repricing prohibitions
of Sections 5.12 and 11.1 shall apply to substitution awards granted pursuant to this Article IX.

 

    	- 22 -

    	 

    

 

Article
X

 

ADMINISTRATION

 

10.1       Awards.
The Plan shall be administered by the Committee or, in the absence of the Committee or in the case of awards issued to Directors,
the Plan shall be administered by the Board. The members of the Committee (that is not itself the Board) shall serve at the discretion
of the Board. The Committee shall have full and exclusive power and authority to administer the Plan and to take all actions that
the Plan expressly contemplates or are necessary or appropriate in connection with the administration of the Plan with respect
to Awards granted under the Plan.

 

10.2       Authority
of the Committee. The Committee shall have full and exclusive power to interpret and apply the terms and provisions of the
Plan and Awards made under the Plan, and to adopt such rules, regulations and guidelines for implementing the Plan as the Committee
may deem necessary or proper, all of which powers shall be exercised in the best interests of the Company and in keeping with the
objectives of the Plan. No member of the Committee shall be liable for any act or omission of any other member of the Committee
or for any act or omission on his own part, including but not limited to the exercise of any power or discretion given to him under
the Plan, except those resulting from his own gross negligence or willful misconduct. In carrying out its authority under the Plan,
the Committee shall have full and final authority and discretion, including the following rights, powers and authorities to (a) determine
the persons to whom and the time or times at which Awards will be made; (b) determine the number of Shares covered in each Award
(subject to the terms and provisions of the Plan, including the provisions of Sections 5.12 and 11.1 which prohibit repricing
without stockholder approval); (c) determine the Option Prices of Options, (d) determine the terms, provisions and conditions of
each Award, which need not be identical and need not match the default terms set forth in the Plan; (d) accelerate the time at
which any outstanding Award will vest; (e) prescribe, amend and rescind rules and regulations relating to administration of the
Plan; and (f) make all other determinations and take all other actions deemed necessary, appropriate or advisable for the proper
administration of the Plan.

 

The Committee may correct
any defect or supply any omission or reconcile any inconsistency in the Plan or in any Award to a Holder in the manner and to the
extent the Committee deems necessary or desirable to further the Plan's objectives. Further, the Committee shall make all other
determinations that may be necessary or advisable for the administration of the Plan. As permitted by law and the terms and provisions
of the Plan, the Committee may delegate its authority as identified in this Section 10.2. The Committee may employ attorneys,
consultants, accountants, agents, and other persons, any of whom may be an Employee, and the Committee, the Company, and its officers
and Board shall be entitled to rely upon the advice, opinions, or valuations of any such persons.

 

10.3       Decisions
Binding. All determinations and decisions made by the Committee or the Board, as the case may be, pursuant to the provisions
of the Plan and all related orders and resolutions of the Committee or the Board, as the case may be, shall be final, conclusive
and binding on all persons, including the Company, its stockholders, Holders and the estates and beneficiaries of Holders.

 

    	- 23 -

    	 

    

 

10.4       No
Liability. Under no circumstances shall the Company, the Board or the Committee incur liability for any indirect, incidental,
consequential or special damages (including lost profits) of any form incurred by any person, whether or not foreseeable and regardless
of the form of the act in which such a claim may be brought, with respect to the Plan or the Company’s, the Committee’s
or the Board’s roles in connection with the Plan.

 

Article
XI

 

AMENDMENT
OR TERMINATION OF PLAN

 

11.1       Amendment,
Modification, Suspension, and Termination. Subject to Section 11.2, the Board may, at any time and from time to time,
alter, amend, modify, suspend, or terminate the Plan, provided, however, no amendment of the Plan shall be made without stockholder
approval if stockholder approval is required by applicable law or stock exchange rules. Further, without the prior approval
of the Company’s stockholders, the Committee shall not directly or indirectly lower the Option Price of a previously granted
Option or lower the SAR grant price of an outstanding SAR. Accordingly, except in connection with a corporate transaction involving
the Company (including any stock dividend, stock split, recapitalization, reorganization, merger, consolidation, split-up, spin-off,
combination or exchange of shares) the terms of outstanding Awards may not be amended to reduce the Option Prices of outstanding
Options or to cancel Options in exchange for cash, other Awards or Options with an Option Prices that are less than the Option
Prices of the original Options without stockholder approval.

 

11.2       Awards
Previously Granted. Notwithstanding any other provision of the Plan to the contrary, no termination, amendment, suspension,
or modification of the Plan or an Award Agreement shall adversely affect in any material way any Award previously granted under
the Plan, without the written consent of the Holder holding such Award.

 

Article
XII

 

ACCELERATION
OF VESTING FOR CERTAIN AWARDS

UPON
A Change OF Control

 

Notwithstanding any
provision of the Plan to the contrary, except to the extent expressly provided otherwise in an Award Agreement, in the event of
an occurrence of a Change of Control all then outstanding Options and Restricted Stock Awards granted under the Plan shall become
fully vested, and exercisable and all substantial risk of forfeiture restrictions applicable thereto shall lapse. The effect, if
any, of a Change of Control upon any other Award granted under the Plan shall be determined in accordance with the terms of the
applicable Award Agreement issued by the Committee that are applicable to the Award.

 

Article
XIII

 

MISCELLANEOUS

 

13.1       Unfunded
Plan/No Establishment of a Trust Fund. Holders shall have no right, title, or interest whatsoever in or to any investments
that the Company or any of its Affiliates may make to aid in meeting obligations under the Plan. Nothing contained in the Plan,
and no action taken pursuant to its provisions, shall create or be construed to create a trust of any kind, or a fiduciary relationship
between the Company and any Holder, beneficiary, legal representative, or any other person. To the extent that any person acquires
a right to receive payments from the Company under the Plan, such right shall be no greater than the right of an unsecured general
creditor of the Company. All payments to be made hereunder shall be paid from the general funds of the Company and no special or
separate fund shall be established and no segregation of assets shall be made to assure payment of such amounts, except as expressly
set forth in the Plan. No property shall be set aside nor shall a trust fund of any kind be established to secure the rights of
any Holder under the Plan. The Plan is not intended to be subject to the Employee Retirement Income Security Act of 1974, as amended.

 

    	- 24 -

    	 

    

  

13.2       No
Employment Obligation. The granting of any Award shall not constitute an employment contract, express or implied, nor impose
upon the Company or any Affiliate any obligation to employ or continue to employ, or utilize the services of, any Holder. The right
of the Company or any Affiliate to terminate the employment of, or provision of services by, any person shall not be diminished
or affected by reason of the fact that an Award has been granted to him, and nothing in the Plan or an Award Agreement shall interfere
with or limit in any way the right of the Company or its Affiliates to terminate any Holder’s employment or provision of
services to the Company at any time or for any reason not prohibited by law.

 

13.3       Tax
Withholding. The Company or any Affiliate shall be entitled to deduct from other compensation payable to each Holder any sums
required by federal, state, local or foreign tax law to be withheld with respect to the vesting or exercise of an Award or lapse
of restrictions on an Award. In the alternative, the Company may require the Holder (or other person validly exercising the Award)
to pay such sums for taxes directly to the Company or any Affiliate in cash or by check within one day after the date of vesting,
exercise or lapse of restrictions. In the discretion of the Committee, the Company may reduce the number of Shares issued to the
Holder upon such Holder’s exercise of an Option to satisfy the tax withholding obligations of the Company or an Affiliate;
provided that the Fair Market Value of the Shares held back shall not exceed the Company’s or the Affiliate’s Minimum
Statutory Tax Withholding Obligation. The Committee may, in its discretion, satisfy any Minimum Statutory Tax Withholding Obligation
arising upon the vesting of an Award by delivering to the Holder a reduced number of Shares in the manner specified herein. In
the discretion of the Committee, at the time of vesting of shares under the Award, the Company may (a) calculate the amount
of the Company’s or an Affiliate’s Minimum Statutory Tax Withholding Obligation on the assumption that all such Shares
vested under the Award are made available for delivery, (b) reduce the number of such Shares made available for delivery so
that the Fair Market Value of the Shares withheld on the vesting date approximates the Company’s or an Affiliate’s
Minimum Statutory Tax Withholding Obligation and (c) in lieu of the withheld Shares, remit cash to the United States Treasury
and/or other applicable governmental authorities, on behalf of the Holder, in the amount of the Minimum Statutory Tax Withholding
Obligation. The Company shall withhold only whole Shares to satisfy its Minimum Statutory Tax Withholding Obligation. Where the
Fair Market Value of the withheld Shares does not equal the amount of the Minimum Statutory Tax Withholding Obligation, the Company
shall withhold Shares with a Fair Market Value slightly less than the amount of the Minimum Statutory Tax Withholding Obligation
and the Holder must satisfy the remaining minimum withholding obligation in some other manner permitted under this Section 13.3.
The withheld Shares not made available for delivery by the Company shall be retained as treasury shares or will be cancelled and
the Holder’s right, title and interest in such Shares shall terminate. The Committee may, in its discretion, allow a Holder
to use Mature Shares to satisfy the Company’s or Affiliate’s tax withholding obligations with respect to an Award.
The Company shall have no obligation upon vesting or exercise of any Award or lapse of restrictions on an Award until the Company
or an Affiliate has received payment sufficient to cover the Minimum Statutory Tax Withholding Obligation with respect to that
vesting, exercise or lapse of restrictions. Neither the Company nor any Affiliate shall be obligated to advise a Holder of the
existence of the tax or the amount which it will be required to withhold.

 

    	- 25 -

    	 

    

 

13.4       Indemnification
of the Committee. The Company shall indemnify each present and future member of the Committee against, and each member of the
Committee shall be entitled without further action on his or her part to indemnity from the Company for, all expenses (including
attorney’s fees, the amount of judgments and the amount of approved settlements made with a view to the curtailment of costs
of litigation, other than amounts paid to the Company itself) reasonably incurred by such member in connection with or arising
out of any action, suit or proceeding in which such member may be involved by reason of such member being or having been a member
of the Committee, whether or not he or she continues to be a member of the Committee at the time of incurring the expenses, including
matters as to which such member shall be finally adjudged in any action, suit or proceeding to have been negligent in the performance
of such member’s duty as a member of the Committee. However, this indemnity shall not include any expenses incurred by any
member of the Committee in respect of matters as to which such member shall be finally adjudged in any action, suit or proceeding
to have been guilty of gross negligence or willful misconduct in the performance of his duty as a member of the Committee. In addition,
no right of indemnification under the Plan shall be available to or enforceable by any member of the Committee unless, within 60
days after institution of any action, suit or proceeding, such member shall have offered the Company, in writing, the opportunity
to handle and defend same at its own expense. This right of indemnification shall inure to the benefit of the heirs, executors
or administrators of each member of the Committee and shall be in addition to all other rights to which a member of the Committee
may be entitled as a matter of law, contract or otherwise. Notwithstanding any other provision of this Agreement, to the extent
that any payment made pursuant to this Section 13.4 is not exempt from Section 409A of the Code pursuant to the application of
Department of Treasury Regulation § 1.409A-1(b)(10) or other applicable exemption (a “409A Payment”) the
following provisions of this Section 13.4 shall apply with respect to such 409A Payment. The Company shall make a 409A Payment
due under this Section 13.4 by the last day of the taxable year of the Committee member following the taxable year in which the
applicable legal fees and expenses were incurred. The legal fees or expenses that are subject to reimbursement pursuant to this
Section 13.4 shall not be limited as a result of when the fees or expenses are incurred. The amounts of legal fees or expenses
that are eligible for reimbursement pursuant to this Section 13.4 during a given taxable year of the Committee member shall not
affect the amount of expenses eligible for reimbursement in any other taxable year. The right to reimbursement pursuant to this
Section 13.4 is not subject to liquidation or exchange for another benefit.

 

13.5       Gender
and Number. If the context requires, words of one gender when used in the Plan shall include the other and words used in the
singular or plural shall include the other.

 

    	- 26 -

    	 

    

 

13.6       Severability.
In the event any provision of the Plan shall be held illegal or invalid for any reason, the illegality or invalidity shall not
affect the remaining parts of the Plan, and the Plan shall be construed and enforced as if the illegal or invalid provision had
not been included.

 

13.7       Headings.
Headings of Articles and Sections are included for convenience of reference only and do not constitute part of the Plan and shall
not be used in construing the terms and provisions of the Plan.

 

13.8       Other
Compensation Plans. The adoption of the Plan shall not affect any other option, incentive or other compensation or benefit
plans in effect for the Company or any Affiliate, nor shall the Plan preclude the Company from establishing any other forms of
incentive compensation arrangements for Employees or Directors.

 

13.9       Retirement
and Welfare Plans. Neither Awards made under the Plan nor Shares or cash paid pursuant to such Awards, may be included as “compensation”
for purposes of computing the benefits payable to any person under the Company’s or any Affiliate’s retirement plans
(both qualified and non-qualified) or welfare benefit plans unless such other plan expressly provides that such compensation shall
be taken into account in computing a participant’s benefit.

 

13.10     Other
Awards. The grant of an Award shall not confer upon the Holder the right to receive any future or other Awards under the Plan,
whether or not Awards may be granted to similarly situated Holders, or the right to receive future Awards upon the same terms or
conditions as previously granted.

 

13.11     Successors.
All obligations of the Company under the Plan with respect to Awards granted hereunder shall be binding on any successor to the
Company, whether the existence of such successor is the result of a direct or indirect purchase of all or substantially all of
the business and/or assets of the Company, or a merger, consolidation, or other transaction.

 

13.12     Law
Limitations/Governmental Approvals. The granting of Awards and the issuance of Shares under the Plan shall be subject to all
applicable laws, rules, and regulations, and to such approvals by any governmental agencies or national securities exchanges as
may be required.

 

13.13     Delivery
of Title. The Company shall have no obligation to issue or deliver evidence of title for Shares issued under the Plan prior
to (a) obtaining any approvals from governmental agencies that the Company determines are necessary or advisable; and (b) completion
of any registration or other qualification of the Stock under any applicable national or foreign law or ruling of any governmental
body that the Company determines to be necessary or advisable.

 

13.14     Inability
to Obtain Authority. The inability of the Company to obtain authority from any regulatory body having jurisdiction, which authority
is deemed by the Company’s counsel to be necessary to the lawful issuance and sale of any Shares hereunder, shall relieve
the Company of any liability in respect of the failure to issue or sell such Shares as to which such requisite authority shall
not have been obtained.

 

    	- 27 -

    	 

    

 

13.15     Investment
Representations. The Committee may require any person receiving Stock pursuant to an Award under the Plan to represent and
warrant in writing that the person is acquiring the Shares for investment and without any present intention to sell or distribute
such Stock.

 

13.16     Persons
Residing Outside of the United States. Notwithstanding any provision of the Plan to the contrary, in order to comply with the
laws in other countries in which the Company or any of its Affiliates operates or has Employees, the Committee, in its sole discretion,
shall have the power and authority to (a) determine which Affiliates shall be covered by the Plan; (b) determine which
persons employed outside the United States are eligible to participate in the Plan; (c) amend or vary the terms and provisions
of the Plan and the terms and conditions of any Award granted to persons who reside outside the United States; (d) establish
subplans and modify exercise procedures and other terms and procedures to the extent such actions may be necessary or advisable
— any subplans and modifications to Plan terms and procedures established under this Section 13.16 by the Committee
shall be attached to the Plan document as Appendices; and (e) take any action, before or after an Award is made, that it deems
advisable to obtain or comply with any necessary local government regulatory exemptions or approvals. Notwithstanding the above,
the Committee may not take any actions hereunder, and no Awards shall be granted, that would violate the Exchange Act, the Code,
any securities law or governing statute or any other applicable law.

 

13.17     No
Fractional Shares. No fractional Shares shall be issued or delivered pursuant to the Plan or any Award. The Committee shall
determine whether cash, additional Awards, or other property shall be issued or paid in lieu of fractional Shares or whether such
fractional shares or any rights thereto shall be forfeited or otherwise eliminated.

 

13.18     Validity
of Awards. Each member of the Committee in respect of his or her participation in any decision with respect to an Award that
is intended to satisfy the requirements of Section 162(m) must satisfy the requirements of “outside director”
status within the meaning of Section 162(m); provided, however, that the failure to satisfy such requirement shall not affect
the validity of the action of any committee otherwise duly authorized and acting in the matter.

 

13.19     Interpretation.
The term “including” means “including without limitation.” The term “or” means “and/or”
unless clearly indicated otherwise. The term “vest” includes the lapse of restrictions on Awards, including Forfeiture
Restrictions. Reference herein to a “Section” shall be to a section of the Plan unless indicated otherwise.

 

13.20     Governing
Law; Venue. The provisions of the Plan and the rights of all persons claiming thereunder shall be construed, administered and
governed under the laws of the State of Delaware, excluding any conflicts or choice of law rule or principle that might otherwise
refer construction or interpretation of the Plan to the substantive law of another jurisdiction. Unless otherwise provided in the
Award Agreement, recipients of an Award under the Plan are deemed to submit to the exclusive jurisdiction and venue of the federal
or state courts of Texas, to resolve any and all issues that may arise out of or relate to the Plan or any related Award Agreement.

 

    	- 28 -EX-4.1

 Exhibit 4.1 

Execution Version 
  

 
  

PLAINS ALL AMERICAN PIPELINE, L.P. 

PAA FINANCE CORP. 
 as Issuers 

$500,000,000 
 2.60% SENIOR NOTES
DUE 2019 
 TWENTY-SEVENTH 

SUPPLEMENTAL 
 INDENTURE 

Dated as of December 9, 2014 

U.S. BANK NATIONAL ASSOCIATION 
 as
Trustee 
  
  

 

 TABLE OF CONTENTS 

 

							
	 ARTICLE I
	  	 	2	  
	 Section 1.01
	 	Establishment	  	 	2	  
		
	 ARTICLE II DEFINITIONS AND INCORPORATION BY REFERENCE
	  	 	2	  
	 Section 2.01
	 	Definitions	  	 	2	  
	 Section 2.02
	 	Other Definitions	  	 	7	  
		
	 ARTICLE III THE NOTES
	  	 	7	  
	 Section 3.01
	 	Form	  	 	7	  
	 Section 3.02
	 	Issuance of Additional Notes	  	 	7	  
	 Section 3.03
	 	Global Security Legend	  	 	7	  
		
	 ARTICLE IV REDEMPTION AND PREPAYMENT
	  	 	8	  
	 Section 4.01
	 	Optional Redemption	  	 	8	  
		
	 ARTICLE V COVENANTS
	  	 	8	  
	 Section 5.01.
	 	Compliance Certificate	  	 	8	  
	 Section 5.02.
	 	Limitations on Liens	  	 	9	  
	 Section 5.03.
	 	Restriction of Sale-leaseback Transactions	  	 	10	  
	 Section 5.04.
	 	SEC Reports; Financial Statements	  	 	11	  
	 Section 5.05.
	 	Subsidiary Guarantees	  	 	11	  
		
	 ARTICLE VI SUCCESSORS
	  	 	11	  
	 Section 6.01.
	 	Consolidation and Mergers of the Issuers	  	 	11	  
	 Section 6.02.
	 	Rights and Duties of Successor	  	 	12	  
		
	 ARTICLE VII DEFAULTS AND REMEDIES
	  	 	12	  
	 Section 7.01.
	 	Events of Default	  	 	12	  
		
	 ARTICLE VIII LEGAL DEFEASANCE AND COVENANT DEFEASANCE
	  	 	14	  
	 Section 8.01.
	 	Option to Effect Legal Defeasance or Covenant Defeasance	  	 	14	  
	 Section 8.02.
	 	Legal Defeasance and Discharge	  	 	14	  
	 Section 8.03.
	 	Covenant Defeasance	  	 	15	  
	 Section 8.04.
	 	Conditions to Legal or Covenant Defeasance	  	 	15	  
	 Section 8.05.
	 	Deposited Money and U.S. Government Obligations to be Held in Trust; Other Miscellaneous Provisions	  	 	16	  
	 Section 8.06.
	 	Repayment to Issuers	  	 	17	  
	 Section 8.07.
	 	Reinstatement	  	 	17	  
		
	 ARTICLE IX SUBSIDIARY GUARANTEES
	  	 	17	  
	 Section 9.01.
	 	Subsidiary Guarantees	  	 	17	  
	 Section 9.02.
	 	Limitation on Liability	  	 	19	  
	 Section 9.03.
	 	Successors and Assigns	  	 	19	  
	 Section 9.04.
	 	No Waiver	  	 	19	  

  
 -i- 

							
	 Section 9.05.
	 	Modification	  	 	19	  
	 Section 9.06.
	 	Execution of Supplemental Indenture for Future Subsidiary Guarantors	  	 	20	  
	 Section 9.07.
	 	Release of Guarantee	  	 	20	  
		
	 ARTICLE X MISCELLANEOUS
	  	 	20	  
	 Section 10.01.
	 	Additional Amendments	  	 	20	  
	 Section 10.02.
	 	Integral Part	  	 	20	  
	 Section 10.03.
	 	Adoption, Ratification and Confirmation	  	 	20	  
	 Section 10.04.
	 	Counterparts	  	 	20	  
	 Section 10.05.
	 	Governing Law	  	 	20	  

 EXHIBIT A:             Form of Note 

EXHIBIT B:             Form of Supplemental Indenture 

  
 -ii- 

 TWENTY-SEVENTH SUPPLEMENTAL INDENTURE dated as of December 9, 2014 (this “Supplemental
Indenture”) among PLAINS ALL AMERICAN PIPELINE, L.P., a Delaware limited partnership (the “Partnership”), PAA FINANCE CORP., a wholly owned subsidiary of the Partnership and a Delaware corporation (“PAA Finance” and,
together with the Partnership, the “Issuers”), and U.S. BANK NATIONAL ASSOCIATION, as trustee (the “Trustee”). 
 W I T N
E S S E T H: 
 WHEREAS, the Issuers have heretofore entered into an Indenture, dated as of September 25, 2002 (the “Original
Indenture”), with U.S. Bank National Association (successor to Wachovia Bank, National Association), as trustee; 
 WHEREAS, the
Original Indenture, as supplemented by this Supplemental Indenture, is herein called the “Indenture;” 
 WHEREAS, under the
Original Indenture, a new series of Debt Securities may at any time be established by the Boards of Directors of the Managing General Partner and PAA Finance in accordance with the provisions of the Original Indenture and the form and terms of such
series may be established by a supplemental indenture executed by the Issuers and the Trustee; 
 WHEREAS, the Issuers propose to create
under the Indenture a new series of Debt Securities; 
 WHEREAS, additional Debt Securities of other series hereafter established, except as
may be limited in the Original Indenture as at the time supplemented and modified, may be issued from time to time pursuant to the Original Indenture as at the time supplemented and modified; and 

WHEREAS, all conditions necessary to authorize the execution and delivery of this Supplemental Indenture and to make it a valid and binding
obligation of the Issuers have been done or performed. 
 NOW, THEREFORE, in consideration of the agreements and obligations set forth
herein and for other good and valuable consideration, the sufficiency of which is hereby acknowledged, the parties hereto hereby agree as follows: 

 ARTICLE I 

Section 1.01 Establishment. There is hereby established a new series of Debt Securities to be issued under the Indenture, to be
designated as the Issuers’ 2.60% Senior Notes due 2019 (the “Notes”). Initially, there will be no Subsidiary Guarantors for the Notes. 

(a) There are to be authenticated and delivered $500,000,000 principal amount of Notes on the Issue Date, and from time to time thereafter
there may be authenticated and delivered an unlimited principal amount of Additional Notes. 
 (b) The Notes shall be issued initially in the
form of one or more Global Securities in substantially the form set out in Exhibit A hereto. The Depositary with respect to the Notes shall be The Depository Trust Company. 

(c) Each Note shall be dated the date of authentication thereof and shall bear interest from the date of original issuance thereof or from the
most recent date to which interest has been paid or duly provided for. 
 (d) If and to the extent that the provisions of the Original
Indenture are duplicative of, or in contradiction with, the provisions of this Supplemental Indenture, the provisions of this Supplemental Indenture shall govern. 

ARTICLE II 
 DEFINITIONS AND
INCORPORATION BY REFERENCE 
 Section 2.01 Definitions. All capitalized terms used herein and not otherwise defined below shall
have the meanings ascribed thereto in the Original Indenture. The following are additional definitions used in this Supplemental Indenture: “Affiliate” of any specified Person means any other Person directly or indirectly controlling or
controlled by or under direct or indirect common control with such specified Person. For purposes of this definition, “control,” as used with respect to any Person, shall mean the possession directly or indirectly of the power to direct or
cause the direction of the management or policies of such Person, whether through the ownership of voting securities, by agreement or otherwise; and the terms “controlling,” “controlled by” and “under common control
with” shall have correlative meanings. 
 “Attributable Indebtedness,” when used with respect to any Sale-leaseback
Transaction, means, as at the time of determination, the present value (discounted at the rate set forth or implicit in the terms of the lease included in such transaction) of the total obligations of the lessee for rental payments (other than
amounts required to be paid on account of property taxes, maintenance, repairs, insurance, assessments, utilities, operating and labor costs and other items that do not constitute payments for property rights) during the remaining term of the lease
included in such Sale-leaseback Transaction (including any period for which such lease has been extended). In the case of any lease that is terminable by the lessee upon the payment of a penalty or other termination payment, such amount shall
be the lesser of the amount determined assuming termination upon the first date such lease may be terminated (in which case the amount shall also include the amount of the penalty or termination payment, but no rent shall be considered as required
to be paid under such lease subsequent to the first date upon which it may be so terminated) or the amount determined assuming no such termination. 

  
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 “Capital Interests” means any and all shares, interests, participations, rights or
other equivalents (however designated) of capital stock, including, without limitation, with respect to partnerships, partnership interests (whether general or limited) and any other interest or participation that confers on a Person the right to
receive a share of the profits and losses of, or distributions of assets of, such Person. 
 “Consolidated Net Tangible Assets”
means, at any date of determination, the total amount of assets after deducting therefrom: (1) all current liabilities (excluding (a) any current liabilities that by their terms are extendible or renewable at the option of the obligor
thereon to a time more than 12 months after the time as of which the amount thereof is being computed; and (b) current maturities of long-term debt); and (2) the amount, net of any applicable reserves, of all goodwill, trade names,
trademarks, patents and other like intangible assets, all as set forth on the consolidated balance sheet of the Partnership for its most recently completed fiscal quarter, prepared in accordance with GAAP. 

“Debt” means any obligation created or assumed by any Person for the repayment of money borrowed, any purchase money obligation
created or assumed by such Person, and any guarantee of the foregoing. 
 “Funded Debt” means all Debt maturing one year or more
from the date of the creation thereof, all Debt directly or indirectly renewable or extendible, at the option of the debtor, by its terms or by the terms of any instrument or agreement relating thereto, to a date one year or more from the date of
the creation thereof, and all Debt under a revolving credit or similar agreement obligating the lender or lenders to extend credit over a period of one year or more. 

“Guarantee” means a guarantee of the Notes given by a Subsidiary Guarantor pursuant to the Indenture, including any future
obligations under Article IX hereof. 
 “General Partner” means PAA GP LLC, a Delaware limited liability company, and its
successors and permitted assigns as general partner of the Partnership. 
 “Issue Date” means, with respect to the Notes, the date
on which the Notes are initially issued. 
 “Managing General Partner” means (i) Plains All American GP LLC, a Delaware
limited liability company, and its successors and permitted assigns as the general partner of the sole member of the General Partner or (ii) the business entity with the ultimate authority to manage the business and operations of the
Partnership. 
 “Notes” has the meaning assigned to it in Section 1.01(a) hereof, and includes both the Notes issued on the
Issue Date and any Additional Notes issued thereafter. 

  
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 “Obligations” means any principal, interest, liquidated damages, penalties, fees,
indemnifications, reimbursement obligations, damages and other liabilities payable under the documentation governing any Debt. 
 “Pari
Passu Debt” means any Funded Debt of either of the Issuers, whether outstanding on the Issue Date or thereafter created, incurred or assumed, unless, in the case of any particular Funded Debt, the instrument creating or evidencing the same or
pursuant to which the same is outstanding expressly provides that such Funded Debt shall be subordinated in right of payment to the Notes. 

“Partnership Agreement” means the Fourth Amended and Restated Agreement of Limited Partnership of Plains All American Pipeline,
L.P., dated as of May 17, 2012, as amended by Amendment No. 1 thereto dated as of October 1, 2012 and Amendment No. 2 thereto dated as of December 31, 2013, and as such may be otherwise amended, modified or supplemented from
time to time. 
 “Permitted Liens” means: 

(1) Liens upon rights-of-way for pipeline purposes; 

(2) any statutory or governmental Lien or Lien arising by operation of law, or any mechanics’, repairmen’s,
materialmen’s, suppliers’, carriers’, landlords’, warehousemen’s or similar Lien incurred in the ordinary course of business which is not yet due or which is being contested in good faith by appropriate proceedings and any
undetermined Lien which is incidental to construction, development, improvement or repair; 
 (3) the right reserved to, or
vested in, any municipality or public authority by the terms of any right, power, franchise, grant, license, permit or by any provision of law, to purchase or recapture or to designate a purchaser of, any property; 

(4) Liens of taxes and assessments which are (A) for the then current year, (B) not at the time delinquent, or
(C) delinquent but the validity of which is being contested at the time by an Issuer or any Restricted Subsidiary in good faith; 

(5) Liens of, or to secure performance of, leases, other than capital leases; 

(6) any Lien upon, or deposits of, any assets in favor of any surety company or clerk of court for the purpose of obtaining
indemnity or stay of judicial proceedings; 
 (7) any Lien upon property or assets acquired or sold by an Issuer or any
Restricted Subsidiary resulting from the exercise of any rights arising out of defaults on receivables; 
 (8) any Lien
incurred in the ordinary course of business in connection with worker’s compensation, unemployment insurance, temporary disability, social security, retiree health or similar laws or regulations or to secure obligations imposed by statute or
governmental regulations; 

  
 4 

 (9) any Lien in favor of an Issuer or any Restricted Subsidiary; 

(10) any Lien in favor of the United States of America or any state thereof, or any department, agency or instrumentality or
political subdivision of the United States of America or any state thereof, to secure partial, progress, advance, or other payments pursuant to any contract or statute, or any Debt incurred by an Issuer or any Restricted Subsidiary for the purpose
of financing all or any part of the purchase price of, or the cost of constructing, developing, repairing or improving, the property or assets subject to such Lien; 

(11) any Lien securing industrial development, pollution control or similar revenue bonds; 

(12) any Lien securing Debt of an Issuer or any Restricted Subsidiary, all or a portion of the net proceeds of which are used,
substantially concurrently with the funding thereof (and for purposes of determining such “substantial concurrence,” taking into consideration, among other things, required notices to be given to Holders of Outstanding Debt Securities
(including the Notes) in connection with such refunding, refinancing or repurchase, and the required corresponding durations thereof), to refinance, refund or repurchase all Outstanding Debt Securities (including the Notes), including the amount of
all accrued interest thereon and reasonable fees and expenses and premium, if any, incurred by the Issuers or any Restricted Subsidiary in connection therewith; 

(13) Liens in favor of any Person to secure obligations under the provisions of any letters of credit, bank guarantees, bonds
or surety obligations required or requested by any governmental authority in connection with any contract or statute; 
 (14)
any Lien upon or deposits of any assets to secure performance of bids, trade contracts, leases or statutory obligations; 

(15) any Lien or privilege vested in any grantor, lessor or licensor or permittor for rent or other charges due or for any
other obligations or acts to be performed, the payment of which rent or other charges or performance of which other obligations or acts is required under leases, easements, rights-of-way, licenses, franchises, privileges, grants or permits, so long
as payment of such rent or the performance of such other obligations or acts is not delinquent or the requirement for such payment or performance is being contested in good faith by appropriate proceedings; 

(16) easements, exceptions or reservations in any property of the Partnership or any of the Restricted Subsidiaries granted or
reserved for the purpose of pipelines, roads, the removal of oil, gas, coal or other minerals, and other like purposes for the joint or common use of real property, facilities and equipment, which are incidental to, and do not materially interfere
with, the ordinary conduct of its business or the business of the Partnership and its Subsidiaries, taken as a whole; 

  
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 (17) Liens arising under operating agreements, joint venture agreements,
partnership agreements, oil and gas leases, farmout agreements, division orders, contracts for sale, transportation or exchange of oil and natural gas, unitization and pooling declarations and agreements, area of mutual interest agreements and other
agreements arising in the ordinary course of the Partnership’s or any Restricted Subsidiary’s business that are customary in the business of marketing, transportation and terminalling of crude oil and/or marketing of liquefied petroleum
gas; or 
 (18) any obligations or duties to any municipality or public authority with respect to any lease, easement,
right-of-way, license, franchise, privilege, permit or grant. 
 “Principal Property” means, whether owned or leased on the Issue
Date or thereafter acquired: (1) any of the pipeline assets of the Partnership or the pipeline assets of any Subsidiary of the Partnership, including any related facilities employed in the transportation, distribution, terminalling, gathering,
treating, processing, marketing or storage of crude oil or refined petroleum products, natural gas, natural gas liquids, fuel additives or petrochemicals, and (2) any processing or manufacturing plant or terminal owned or leased by the
Partnership or any Subsidiary of the Partnership; except, in the case of either clause (1) or (2), (a) any such assets consisting of inventories, furniture, office fixtures and equipment, including data processing equipment, vehicles and
equipment used on, or useful with, vehicles, and (b) any such assets, plant or terminal which, in the good faith opinion of the Board of Directors, is not material in relation to the activities of the Partnership or the activities of the
Partnership and its Subsidiaries, taken as a whole. 
 “Restricted Subsidiary” means any Subsidiary of the Partnership owning or
leasing, directly or indirectly through ownership in another Subsidiary, any Principal Property. 
 “Sale-leaseback Transaction”
means the sale or transfer by an Issuer or any Subsidiary of the Partnership of any Principal Property to a Person (other than an Issuer or a Subsidiary of the Partnership) and the taking back by an Issuer or any Subsidiary of the Partnership, as
the case may be, of a lease of such Principal Property. 
 “Subsidiary” means, with respect to any Person: (1) any other
Person of which more than 50% of the total voting power of shares or other Capital Interests entitled, without regard to the occurrence of any contingency, to vote in the election of directors, managers or trustees (or equivalent persons)
thereof is at the time owned or controlled, directly or indirectly, by such Person or one or more of the other Subsidiaries of such Person or a combination thereof; or (2) in the case of a partnership, more than 50% of the partners’
Capital Interests, considering all partners’ Capital Interests as a single class, is at the time owned or controlled, directly or indirectly, by such Person or one or more of the other Subsidiaries of such Person or a combination thereof. 

  
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 “Subsidiary Guarantors” means each of: 

(1) any Subsidiary that executes a supplemental Indenture to provide a Guarantee in accordance with the provisions of the
Indenture; and 
 (2) their respective successors and assigns. 

Section 2.02 Other Definitions. 
  

					
	 Term
	  	Defined in
Section	 
	 “Additional Notes”
	  	 	3.02	  
	 “Covenant Defeasance”
	  	 	8.03	  
	 “Event of Default”
	  	 	7.01	  
	 “Legal Defeasance”
	  	 	8.02	  
	 “Note Obligations”
	  	 	9.01	  
	 “Payment Default”
	  	 	7.01	  
	 “Required Filing Dates”
	  	 	5.04	  
	 “Successor Company”
	  	 	6.01	  

 ARTICLE III 

THE NOTES 
 Section 3.01
Form. The Notes shall be issued initially in the form of one or more Global Securities. The Notes and Trustee’s certificate of authentication shall be substantially in the form of Exhibit A hereto, the terms of which are incorporated in
and made a part of this Supplemental Indenture, and the Issuers and the Trustee, by their execution and delivery of this Supplemental Indenture, expressly agree to such terms and provisions and to be bound thereby. 

Section 3.02 Issuance of Additional Notes. The Issuers may, from time to time, issue an unlimited amount of additional Notes
(“Additional Notes”) under the Indenture, which shall be issued in the same form as the Notes issued on the Issue Date and which shall have identical terms as the Notes issued on the Issue Date other than with respect to the issue date,
the date of first payment of interest, if applicable, and the payment of interest accruing prior to the issue date. The Notes issued on the Issue Date shall be limited in aggregate principal amount to $500,000,000. The Notes issued on the Issue
Date and any Additional Notes subsequently issued shall be treated as a single series for all purposes under the Indenture, including waivers, amendments, redemptions and offers to purchase. 

Section 3.03 Global Security Legend. Each of the Global Securities shall bear a legend in substantially the following form: 

THIS GLOBAL SECURITY IS HELD BY OR ON BEHALF OF THE DEPOSITARY (AS DEFINED IN THE INDENTURE GOVERNING THIS NOTE) IN CUSTODY FOR THE BENEFIT OF
THE BENEFICIAL OWNERS HEREOF, AND IS NOT TRANSFERABLE TO ANY PERSON UNDER ANY CIRCUMSTANCES EXCEPT THAT (A) THE TRUSTEE MAY MAKE SUCH NOTATIONS HEREON AS MAY BE REQUIRED PURSUANT TO SECTION 2.08 OF THE ORIGINAL INDENTURE, (B) THIS GLOBAL
SECURITY MAY BE EXCHANGED IN WHOLE BUT NOT IN PART PURSUANT TO SECTION 2.15 OF THE ORIGINAL INDENTURE, (C) THIS GLOBAL SECURITY MAY BE DELIVERED TO THE TRUSTEE FOR CANCELLATION PURSUANT TO SECTION 2.10 OF THE ORIGINAL INDENTURE AND
(D) THIS GLOBAL SECURITY MAY BE TRANSFERRED TO A SUCCESSOR DEPOSITARY OR ITS NOMINEE WITH THE PRIOR WRITTEN CONSENT OF THE ISSUERS. 

  
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 ARTICLE IV 

REDEMPTION AND PREPAYMENT 

Section 4.01 Optional Redemption. 

(a) At their option at any time prior to maturity, the Issuers may choose to redeem all or any portion of the Notes, at once or from time
to time. 
 (b) To redeem the Notes, the Issuers must pay a redemption price in an amount determined in accordance with the provisions of
paragraph number 5 of the form of Note in Exhibit A hereto, plus accrued and unpaid interest, if any, to the redemption date (subject to the right of Holders on the relevant record date to receive interest due on the relevant interest payment
date). 
 (c) Any redemption pursuant to this Section 4.01 shall otherwise be made pursuant to the provisions of Sections 3.01 through
3.03 of the Original Indenture. The actual redemption price shall be set forth in an Officers’ Certificate delivered to the Trustee no later than two Business Days prior to each redemption date. 

ARTICLE V 
 COVENANTS 

Section 5.01. Compliance Certificate. 

(a) In lieu of the Officers’ Certificate required by Section 4.05 of the Original Indenture, the Issuers and Subsidiary
Guarantors shall deliver to the Trustee, within 90 days after the end of each fiscal year, an Officers’ Certificate stating that a review of the activities of the Partnership and its Subsidiaries during the preceding fiscal year has been made
under the supervision of the signing Officers (one of whom shall be the principal executive, financial or accounting officer of each Issuer and Subsidiary Guarantor) with a view to determining whether the Issuers have kept, observed, performed and
fulfilled their obligations under the Indenture, and further stating, as to each such person signing such certificate, that to the best of his or her knowledge the Issuers have kept, observed, performed and fulfilled each and every covenant
contained in the Indenture and are not in default in the performance or observance of any of the terms, provisions and conditions of the Indenture (or, if a Default or Event of Default shall have occurred, describing all such Defaults or Events of
Default of which he or she may have knowledge and what action the Issuers are taking or propose to take with respect thereto). 
 (b) The
Issuers shall, so long as any of the Notes are outstanding, deliver to the Trustee, forthwith and in any event within five days upon any officer of an Issuer becoming aware of any Default or Event of Default or an event which, with notice or the
lapse of time or both, would constitute an Event of Default, an Officers’ Certificate specifying such Default or Event of Default and what action the Issuers are taking or propose to take with respect thereto. 

  
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 Section 5.02. Limitations on Liens. The Issuers will not, nor will they permit any
Subsidiary of the Partnership to, create, assume, incur or suffer to exist any Lien upon any Principal Property or upon any Capital Interests of any Restricted Subsidiary, whether owned or leased on the Issue Date or thereafter acquired, to secure
any Debt of an Issuer or any other Person (other than Debt Securities), without in any such case making effective provision whereby all of the Notes shall be secured equally and ratably with, or prior to, such Debt so long as such Debt shall be so
secured. This restriction shall not apply to: 
 (a) Permitted Liens; 

(b) any Lien upon any property or assets created at the time of acquisition of such property or assets by an Issuer or any Restricted
Subsidiary or within one year after such time to secure all or a portion of the purchase price for such property or assets or Debt incurred to finance such purchase price, whether such Debt was incurred prior to, at the time of or within one year
after the date of such acquisition; 
 (c) any Lien upon any property or assets to secure all or part of the cost of construction,
development, repair or improvements thereon or to secure Debt incurred prior to, at the time of, or within one year after completion of such construction, development, repair or improvements or the commencement of full operations thereof (whichever
is later), to provide funds for any such purpose; 
 (d) any Lien upon any property or assets existing thereon at the time of the acquisition
thereof by an Issuer or any Restricted Subsidiary (whether or not the obligations secured thereby are assumed by an Issuer or any Restricted Subsidiary); provided, however, that such Lien only encumbers the property or assets so acquired; 

(e) any Lien upon any property or assets of a Person existing thereon at the time such Person becomes a Restricted Subsidiary by acquisition,
merger or otherwise; provided, however, that such Lien only encumbers the property or assets of such Person at the time such Person becomes a Restricted Subsidiary; 

(f) any Lien upon any property or assets of an Issuer or any Restricted Subsidiary in existence on December 10, 2003 or provided for
pursuant to agreements existing on December 10, 2003; 
 (g) Liens imposed by law or order as a result of any proceeding before any
court or regulatory body that is being contested in good faith, and Liens which secure a judgment or other court-ordered award or settlement as to which an Issuer or the applicable Restricted Subsidiary, as the case may be, has not exhausted its
appellate rights; 
 (h) any extension, renewal, refinancing, refunding or replacement (or successive extensions, renewals, refinancings,
refundings or replacements) of Liens, in whole or in part, referred to in clauses (a) through (g), inclusive, of this Section 5.02; provided, however, that any such extension, renewal, refinancing, refunding or replacement Lien shall be
limited to the property or assets covered by the Lien extended, renewed, refinanced, refunded or replaced and that the obligations secured by any such extension, renewal, refinancing, refunding or replacement Lien shall be in an amount not greater
than the amount of the obligations secured by the Lien extended, renewed, refinanced, refunded or replaced and any expenses of the Issuers and the Restricted Subsidiaries (including any premium) incurred in connection with such extension, renewal,
refinancing, refunding or replacement; or 

  
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 (i) any Lien resulting from the deposit of moneys or evidence of indebtedness in trust for the
purpose of defeasing Debt of an Issuer or any Restricted Subsidiary. 
 Notwithstanding the foregoing provisions of this Section 5.02,
the Issuers may, and may permit any Restricted Subsidiary to, create, assume, incur or suffer to exist any Lien upon any Principal Property or Capital Interests of a Restricted Subsidiary to secure Debt of an Issuer or any Person (other than Debt
Securities) that is not excepted by clauses (a) through (i), inclusive, of this Section 5.02 without securing the Notes, provided that the aggregate principal amount of all Debt then outstanding secured by such Lien and all other Liens not
excepted by clauses (a) through (i), inclusive, of this Section 5.02, together with all Attributable Indebtedness from Sale-leaseback Transactions (excluding Sale-leaseback Transactions permitted by clauses (a) through (d), inclusive,
of Section 5.03), does not exceed 10% of Consolidated Net Tangible Assets. 
 Section 5.03. Restriction of Sale-leaseback
Transactions. The Issuers will not, and will not permit any Subsidiary of the Partnership to, engage in a Sale-leaseback Transaction, unless: 

(a) such Sale-leaseback Transaction occurs within one year from the date of completion of the acquisition of the Principal Property subject
thereto or the date of the completion of construction, development or substantial repair or improvement, or commencement of full operations on such Principal Property, whichever is later; 

(b) the Sale-leaseback Transaction involves a lease for a period, including renewals, of not more than three years; 

(c) the Attributable Indebtedness from that Sale-leaseback Transaction is an amount equal to or less than the amount the Issuers or such
Subsidiary would be allowed to incur as Debt secured by a Lien on the Principal Property subject thereto without equally and ratably securing the Notes under Section 5.02; or 

(d) the Issuers or such Subsidiary, within a one-year period after such Sale-leaseback Transaction, applies or causes to be applied an amount
not less than the net sale proceeds from such Sale-leaseback Transaction to (A) the prepayment, repayment, redemption, reduction or retirement of any Pari Passu Debt of an Issuer or any Subsidiary of the Partnership, or (B) the expenditure
or expenditures for Principal Property used or to be used in the ordinary course of business of the Partnership or its Subsidiaries. 

Notwithstanding the foregoing provisions of this Section 5.03, the Issuers may, and may permit any Subsidiary of the Partnership to,
effect any Sale-leaseback Transaction that is not excepted by clauses (a) through (d), inclusive, of this Section 5.03, provided that the Attributable Indebtedness from such Sale-leaseback Transaction, together with the aggregate principal
amount of then outstanding Debt (other than Debt Securities) secured by Liens upon Principal Properties not excepted by clauses (a) through (i), inclusive, of Section 5.02, does not exceed 10% of Consolidated Net Tangible Assets. 

  
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 Section 5.04. SEC Reports; Financial Statements. 

(a) Whether or not the Partnership is then subject to the reporting requirements of Section 13 or 15(d) of the Exchange Act, the
Partnership shall electronically file with the Commission, so long as the Notes are Outstanding, the annual, quarterly and other periodic reports that the Partnership is required to file (or would otherwise be required to file) with the Commission
pursuant to Sections 13 and 15(d) of the Exchange Act, and such documents shall be filed with the Commission on or prior to the respective dates (the “Required Filing Dates”) by which the Partnership is required to file (or would otherwise
be required to file) such documents, unless, in each case, such filings are not then permitted by the Commission. 
 (b) If such filings are
not then permitted by the Commission, or such filings are not generally available on the Internet free of charge, the Issuers shall provide the Trustee with, and the Trustee will mail to any Holder of Notes requesting in writing to the Trustee
copies of, such annual, quarterly and other periodic reports specified in Sections 13 and 15(d) of the Exchange Act within 15 days after the respective Required Filing Dates. 

(c) [Intentionally omitted.] 
 (d)
The Partnership shall provide the Trustee with a sufficient number of copies of all reports and other documents and information that the Trustee may be required to deliver to Holders of Notes under clause (b) of this Section 5.04. 

(e) Delivery of such reports, information and documents to the Trustee is for informational purposes only and the Trustee’s receipt of
such shall not constitute constructive notice of any information contained therein or determinable from information contained therein, including the Partnership’s compliance with any of its covenants hereunder (as to which the Trustee is
entitled to rely exclusively on Officers’ Certificates). 
 Section 5.05. Subsidiary Guarantees. If any Subsidiary (or its
successor) of the Partnership that is not then a Subsidiary Guarantor guarantees Debt of either of the Issuers, in either case after the Issue Date, then the Partnership shall cause such Subsidiary (or successor) to execute and deliver a
supplemental Indenture providing for the guarantee of the payment of the Notes pursuant to Article IX hereof. 
 ARTICLE VI 

SUCCESSORS 
 With respect to the
Notes, the provisions of this Article VI shall preempt the provisions of Article X of the Original Indenture in their entirety. 

Section 6.01. Consolidation and Mergers of the Issuers. Neither Issuer shall consolidate or amalgamate with or merge with or into any
Person, or sell, convey, transfer, lease or otherwise dispose of all or substantially all its assets to any Person, whether in a single transaction or a series of related transactions, except (1) in accordance with the provisions of the
Partnership Agreement, and (2) unless: (a) either (i) such Issuer shall be the surviving Person in 

  
 11 

 
the case of a merger or (ii) the resulting, surviving or transferee Person if other than such Issuer (the “Successor Company”) shall be a partnership, limited liability company or
corporation organized and existing under the laws of the United States, any state thereof or the District of Columbia (provided that PAA Finance may not merge, amalgamate or consolidate with or into another Person other than a corporation satisfying
such requirement for so long as the Partnership is not a corporation) and the Successor Company shall expressly assume, by an indenture supplemental hereto, executed and delivered to the Trustee, in form reasonably satisfactory to the Trustee, the
due and punctual payment of the principal of, premium, if any, and interest on all of the Notes, and the due and punctual performance or observance of all the other obligations under the Indenture to be performed or observed by such Issuer;
(b) immediately after giving effect to such transaction or series of transactions, no Default or Event of Default would occur or be continuing; (c) if such Issuer is not the continuing Person, then each Subsidiary Guarantor, unless it has
become the Successor Company, shall confirm that its Guarantee shall continue to apply to the obligations under the Notes and the Indenture; and (d) such Issuer shall have delivered to the Trustee an Officers’ Certificate and an Opinion of
Counsel, each stating that such consolidation, amalgamation, merger, sale, conveyance, transfer, lease or other disposition and such supplemental Indenture (if any) comply with this Section 6.01 and any other applicable provisions of the
Indenture. 
 Section 6.02. Rights and Duties of Successor. In case of any consolidation, amalgamation or merger where an Issuer is
not the continuing Person, or disposition of all or substantially all of the assets of an Issuer in accordance with Section 6.01, the Successor Company shall succeed to and be substituted for such Issuer with the same effect as if it had been
named herein as the respective party to the Indenture, and the predecessor entity shall be released from all liabilities and obligations under the Indenture and the Notes, except that no such release will occur in the case of a lease of all or
substantially all of an Issuer’s assets. In case of any such consolidation, amalgamation, merger, sale, conveyance, transfer, lease or other disposition, such changes in phraseology and form (but not in substance) may be made in the Notes
thereafter to be issued as may be appropriate. 
 ARTICLE VII 

DEFAULTS AND REMEDIES 
 Section
7.01. Events of Default. With respect to the Notes, the provisions of this Section 7.01 shall preempt the provisions of the first and final paragraphs of Section 6.01 of the Original Indenture in their entirety. 

(a) An “Event of Default” occurs if: 

(i) the Issuers default for 60 days in the payment when due of interest on the Notes; 

(ii) the Issuers default in the payment when due of principal of or premium, if any, on the Notes at maturity, upon redemption
or otherwise; 
 (iii) failure by an Issuer or any Subsidiary Guarantor for 90 days after receipt of notice by the Issuers
from the Trustee or to the Issuers and the Trustee by the Holders of at least 25% in principal amount of the Notes then Outstanding to comply with any other term, covenant or warranty in the Indenture or the Notes (provided that notice need
not be given, and an Event of Default shall occur, 90 days after any breach of the provisions of Section 6.01 hereof); 

  
 12 

 (iv) default under any mortgage, indenture or instrument under which there may be
issued or by which there may be secured or evidenced any Debt of an Issuer or any of the Partnership’s Subsidiaries (or the payment of which is guaranteed by the Partnership or any of its Subsidiaries), whether such Debt or guarantee now exists
or is created after the Issue Date, if that default (A) is caused by a failure to pay principal of or premium, if any, or interest on such Debt prior to the expiration of the grace period provided in such Debt (a “Payment
Default”) or (B) results in the acceleration of the maturity of such Debt to a date prior to its originally stated maturity, and, in each case described in clause (A) or (B), the principal amount of any such Debt, together with the
principal amount of any other such Debt under which there has been a Payment Default or the maturity of which has been so accelerated, aggregates $25.0 million or more; provided, further, that if any such default is cured
or waived or any such acceleration rescinded, or such Debt is repaid, within a period of 30 days from the continuation of such default beyond the applicable grace period or the occurrence of such acceleration, as the case may be, such Event of
Default and any consequential acceleration of the Notes shall be automatically rescinded, so long as such rescission does not conflict with any judgment or decree; 

(v) except as permitted by the Indenture, any Guarantee shall cease for any reason to be in full force and effect (except as
otherwise provided in the Indenture) or is declared null and void in a judicial proceeding or any Subsidiary Guarantor, or any Person acting on behalf of any Subsidiary Guarantor, shall deny or disaffirm its obligations under the Indenture or its
Guarantee; 
 (vi) an Issuer or any Subsidiary Guarantor pursuant to or within the meaning of any Bankruptcy Law: 

(A) commences a voluntary case, 

(B) consents to the entry of an order for relief against it in an involuntary case, 

(C) consents to the appointment of a custodian of it or for all or substantially all of its property, 

(D) makes a general assignment for the benefit of its creditors, or 

(E) generally is not paying its debts as they become due; or 

(vii) a court of competent jurisdiction enters an order or decree under any Bankruptcy Law that: 

(A) is for relief against an Issuer or any Subsidiary Guarantor in an involuntary case; 

  
 13 

 (B) appoints a custodian of an Issuer or any Subsidiary Guarantor or for all or
substantially all of the property of an Issuer or any Subsidiary Guarantor; or 
 (C) orders the liquidation of an Issuer or
any Subsidiary Guarantor; 
 and the order or decree remains unstayed and in effect for 60 consecutive days. 

(b) In the case of an Event of Default arising from Section 7.01(a)(vi) or 7.01(a)(vii) hereof involving an Issuer (and, for the avoidance
of doubt, excluding any such Event of Default that involves only one or more Subsidiary Guarantors), the principal amount of all Outstanding Notes and interest thereon shall become due and payable immediately without further action or notice. If any
other Event of Default occurs and is continuing, the Trustee or the Holders of at least 25% in principal amount of the then Outstanding Notes may declare the principal amount of all the Notes and interest thereon to be due and payable immediately by
a notice in writing to the Issuers (and to the Trustee if given by the Holders) and upon any such declaration such principal amount and interest thereon shall be due and payable immediately. 

ARTICLE VIII 
 LEGAL DEFEASANCE AND
COVENANT DEFEASANCE 
 Section 8.01. Option to Effect Legal Defeasance or Covenant Defeasance. The Issuers may, at the option of the
Boards of Directors evidenced by a Board Resolution set forth in an Officers’ Certificate, at any time, elect to have either Section 8.02 or 8.03 hereof be applied to all outstanding Notes and Guarantees upon compliance with the conditions
set forth below in this Article VIII. 
 Section 8.02. Legal Defeasance and Discharge. Upon the Issuers’ exercise under
Section 8.01 hereof of the option applicable to this Section 8.02, each of the Issuers and the Subsidiary Guarantors shall, subject to the satisfaction of the conditions set forth in Section 8.04 hereof, be deemed to have been
discharged from its obligations with respect to all outstanding Notes and Guarantees on the date the conditions set forth below are satisfied (hereinafter, “Legal Defeasance”). For this purpose, Legal Defeasance means that each of the
Issuers shall be deemed to have paid and discharged the entire Debt represented by the outstanding Notes, which shall thereafter be deemed to be “Outstanding” only for the purposes of Section 8.05 hereof and the other Sections of the
Indenture referred to in (a) and (b) below, and to have satisfied all its other obligations under such Notes and the Indenture, and each of the Subsidiary Guarantors shall be deemed to have discharged its obligations under its Guarantee
(and the Trustee, on demand of and at the expense of the Issuers, shall execute proper instruments acknowledging the same), except for the following provisions which shall survive until otherwise terminated or discharged hereunder: 

(a) the rights of Holders of Outstanding Notes to receive solely from the trust fund described in Section 8.04 hereof, and as more fully
set forth in such Section, payments in respect of the principal of, premium on, if any, and interest on such Notes when such payments are due, 

(b) the Issuers’ obligations with respect to such Notes under Sections 2.07, 2.08, 2.09 and 4.02 of the Original Indenture, 

  
 14 

 (c) the rights, powers, trusts, duties and immunities of the Trustee hereunder and the
Issuers’ obligations in connection therewith, 
 (d) this Article VIII, and 

(e) the Issuers’ rights of optional redemption under Section 4.01 hereof. 

Subject to compliance with this Article VIII, the Issuers may exercise their option under this Section 8.02 notwithstanding the prior exercise of
their option under Section 8.03 hereof. 
 Section 8.03. Covenant Defeasance. Upon the Issuers’ exercise under
Section 8.01 hereof of the option applicable to this Section 8.03, each of the Issuers shall, subject to the satisfaction of the conditions set forth in Section 8.04 hereof, be released from its obligations under the covenants
contained in Sections 5.02, 5.03, 5.04 and 5.05 hereof with respect to the Outstanding Notes on and after the date the conditions set forth in Section 8.04 are satisfied (hereinafter, “Covenant Defeasance”), and the Notes shall
thereafter be deemed not “Outstanding” for the purposes of any direction, waiver, consent or declaration or act of Holders (and the consequences of any thereof) in connection with such covenants, but shall continue to be deemed
“Outstanding” for all other purposes hereunder (it being understood that such Notes shall not be deemed outstanding for accounting purposes). For this purpose, Covenant Defeasance means that, with respect to the Outstanding Notes, the
Issuers may omit to comply with and shall have no liability in respect of any term, condition or limitation set forth in any such covenant, whether directly or indirectly, by reason of any reference elsewhere herein to any such covenant or by reason
of any reference in any such covenant to any other provision herein or in any other document and such omission to comply shall not constitute a Default or an Event of Default under Section 7.01 hereof, but, except as specified above, the
remainder of the Indenture, the Guarantees and such Notes shall be unaffected thereby. 
 Section 8.04. Conditions to Legal or Covenant
Defeasance. The following shall be the conditions to the application of either Section 8.02 or 8.03 hereof to the Outstanding Notes: 

In order to exercise either Legal Defeasance or Covenant Defeasance: 

(a) the Issuers must irrevocably deposit with the Trustee, in trust, for the benefit of the Holders of the Notes, cash in Dollars, U.S.
Government Obligations, or a combination thereof, in such amounts as shall be sufficient, in the written opinion of a nationally recognized firm of independent public accountants, to pay the principal of, premium on, if any, and interest on the
Outstanding Notes at the Stated Maturity thereof or on the applicable redemption date, as the case may be, and the Issuers must specify whether the Notes are being defeased to maturity or to a particular redemption date; 

(b) in the case of an election under Section 8.02 hereof, the Issuers shall have delivered to the Trustee an Opinion of Counsel confirming
that (i) the Issuers have received from, or there has been published by, the Internal Revenue Service a ruling or (ii) since the date of the Indenture, there has been a change in the applicable federal income tax law, in either case to the
effect that, and based thereon such Opinion of Counsel shall confirm that, the Holders of the Outstanding Notes shall not recognize income, gain or loss for federal income tax purposes as a result of such Legal Defeasance and shall be subject to
federal income tax on the same amounts, in the same manner and at the same times as would have been the case if such Legal Defeasance had not occurred; 

  
 15 

 (c) in the case of an election under Section 8.03 hereof, the Issuers shall have delivered
to the Trustee an Opinion of Counsel confirming that the Holders of the Outstanding Notes shall not recognize income, gain or loss for federal income tax purposes as a result of such Covenant Defeasance and shall be subject to federal income tax on
the same amounts, in the same manner and at the same times as would have been the case if such Covenant Defeasance had not occurred; 
 (d)
no Default or Event of Default shall have occurred and be continuing either (i) on the date of such deposit (other than a Default or Event of Default resulting from the incurrence of Debt all or a portion of the proceeds of which shall be
applied to such deposit) or (ii) insofar as Section 7.01(a)(vi) or 7.01(a)(vii) hereof is concerned, at any time in the period ending on the 91st day after the date of deposit; 

(e) such Legal Defeasance or Covenant Defeasance shall not result in a breach or violation of, or constitute a default under, any agreement or
instrument (other than the Notes and the Indenture) to which the Partnership or any of its Subsidiaries is a party or by which the Partnership or any of its Subsidiaries is bound; 

(f) the Issuers shall have delivered to the Trustee an Opinion of Counsel to the effect that after the 91st day following the deposit, the
trust funds shall not be subject to the effect of any applicable bankruptcy, insolvency, reorganization or similar laws affecting creditors’ rights generally; 

(g) the Issuers shall have delivered to the Trustee an Officers’ Certificate stating that the deposit was not made by the Issuers with the
intent of preferring the Holders over any other creditors of the Issuers or with the intent of defeating, hindering, delaying or defrauding any other creditors of the Issuers; and 

(h) the Issuers shall have delivered to the Trustee an Officers’ Certificate and an Opinion of Counsel, each stating that all conditions
precedent provided for or relating to the Legal Defeasance or the Covenant Defeasance have been complied with. 
 Section 8.05. Deposited
Money and U.S. Government Obligations to be Held in Trust; Other Miscellaneous Provisions. Subject to Section 8.06 hereof, all money and U.S. Government Obligations (including the proceeds thereof) deposited with the Trustee (or other
qualifying trustee, collectively for purposes of this Section 8.05, the “Trustee”) pursuant to Section 8.04 hereof in respect of the outstanding Notes shall be held in trust and applied by the Trustee, in accordance with the
provisions of such Notes and the Indenture, to the payment, either directly or through any paying agent (including an Issuer acting as paying agent) as the Trustee may determine, to the Holders of such Notes of all sums due and to become due thereon
in respect of principal, premium, if any, and interest, but such money need not be segregated from other funds except to the extent required by law. 

The Issuers shall pay and indemnify the Trustee against any tax, fee or other charge imposed on or assessed against the cash or U.S. Government
Obligations deposited pursuant to Section 8.04 hereof or the principal and interest received in respect thereof other than any such tax, fee or other charge which by law is for the account of the Holders of the Outstanding Notes. 

  
 16 

 Anything in this Article VIII to the contrary notwithstanding, the Trustee shall deliver or
pay to the Issuers from time to time upon the written request of the Issuers any money or U.S. Government Obligations held by it as provided in Section 8.04 hereof which, in the opinion of a nationally recognized firm of independent public
accountants expressed in a written certification thereof delivered to the Trustee (which may be the opinion delivered under Section 8.04(a) hereof), are in excess of the amount thereof that would then be required to be deposited to effect an
equivalent Legal Defeasance or Covenant Defeasance. 
 Section 8.06. Repayment to Issuers. Any money deposited with the Trustee or
any paying agent, or then held by the Issuers, in trust for the payment of the principal of, premium on, if any, or interest on any Note and remaining unclaimed for two years after such principal, premium, if any, or interest has become due and
payable shall be paid to the Issuers on their written request or (if then held by the Issuers) shall be discharged from such trust; and the Holder of such Note shall thereafter, as an unsecured creditor, look only to the Issuers for payment thereof,
and all liability of the Trustee or such paying agent with respect to such trust money, and all liability of the Issuers as trustee thereof, shall thereupon cease; provided, however, that the Trustee or such paying agent, before being
required to make any such repayment, may at the expense of the Issuers cause to be published once, in The New York Times and The Wall Street Journal (U.S. edition), notice that such money remains unclaimed and that, after a date
specified therein, which shall not be less than 30 days from the date of such notification or publication, any unclaimed balance of such money then remaining shall be repaid to the Issuers. 

Section 8.07. Reinstatement. If the Trustee or paying agent is unable to apply any Dollars or U.S. Government Obligations in accordance
with Section 8.02 or 8.03 hereof, as the case may be, by reason of any order or judgment of any court or governmental authority enjoining, restraining or otherwise prohibiting such application, then the Issuers’ obligations under the
Indenture and the Notes and the Subsidiary Guarantors’ obligations under the Guarantees shall be revived and reinstated as though no deposit had occurred pursuant to Section 8.02 or 8.03 hereof until such time as the Trustee or paying
agent is permitted to apply all such money in accordance with Section 8.02 or 8.03 hereof, as the case may be; provided, however, that, if the Issuers make any payment of principal of, premium on, if any, or interest on any
Note following the reinstatement of their obligations, the Issuers shall be subrogated to the rights of the Holders of such Notes to receive such payment from the money held by the Trustee or paying agent. 

ARTICLE IX 
 SUBSIDIARY GUARANTEES

 Section 9.01. Subsidiary Guarantees. (a) Each Subsidiary Guarantor hereby jointly and severally unconditionally and
irrevocably guarantees on a senior basis to each Holder and to the Trustee and its successors and assigns (i) the full and punctual payment of principal, premium, if any, and interest with respect to, the Notes when due, whether at maturity, by
acceleration, by redemption or otherwise, and all other monetary obligations of the Issuers under the Indenture (including obligations to the Trustee) and the Notes and (ii) the full and punctual performance within applicable grace periods of
all other obligations of the Issuers under the Indenture and the Notes (all the foregoing being hereinafter collectively called the “Note 

  
 17 

 
Obligations”). Each Subsidiary Guarantor further agrees that the Note Obligations may be extended or renewed, in whole or in part, without notice or further assent from each such Subsidiary
Guarantor, and that each such Subsidiary Guarantor shall remain bound under this Article IX notwithstanding any extension or renewal of any Note Obligation. 

(b) Each Subsidiary Guarantor waives presentation to, demand of, payment from and protest to the Issuers of any of the Note Obligations and
also waives notice of protest for nonpayment. Each Subsidiary Guarantor waives notice of any Default or Event of Default under the Notes or the Note Obligations. The obligations of each Subsidiary Guarantor hereunder shall not be affected by
(i) the failure of any Holder or the Trustee to assert any claim or demand or to enforce any right or remedy against the Issuers or any other Person under the Indenture, the Notes or any other agreement or otherwise; (ii) any extension or
renewal of any thereof; (iii) any rescission, waiver, amendment or modification of any of the terms or provisions of the Indenture, the Notes or any other agreement; (iv) the release of any security held by any Holder or the Trustee for
the Note Obligations or any of them; (v) the failure of any Holder or Trustee to exercise any right or remedy against any other guarantor of the Note Obligations; or (vi) any change in the ownership of such Subsidiary Guarantor, except as
provided in Section 9.02 hereof. 
 (c) Each Subsidiary Guarantor further agrees that its Guarantee herein constitutes a guarantee of
payment, performance and compliance when due (and not a guarantee of collection) and waives any right to require that any resort be had by any Holder or the Trustee to any security held for payment of the Note Obligations. 

(d) The obligations of each Subsidiary Guarantor hereunder shall not be subject to any reduction, limitation, impairment or termination for any
reason other than indefeasible payment in full of the Note Obligations, including any claim of waiver, release, surrender, alteration or compromise, and shall not be subject to any defense of setoff, counterclaim, recoupment or termination
whatsoever or by reason of the invalidity, illegality or unenforceability of the Note Obligations or otherwise. Without limiting the generality of the foregoing, the obligations of each Subsidiary Guarantor herein shall not be discharged or impaired
or otherwise affected by the failure of any Holder or the Trustee to assert any claim or demand or to enforce any remedy under the Indenture, the Notes or any other agreement, by any waiver or modification of any thereof, by any default, failure or
delay, willful or otherwise, in the performance of the obligations, or by any other act or thing or omission or delay to do any other act or thing which may or might in any manner or to any extent vary the risk of any Subsidiary Guarantor or would
otherwise operate as a discharge of any Subsidiary Guarantor as a matter of law or equity. 
 (e) Each Subsidiary Guarantor further agrees
that its Guarantee herein shall continue to be effective or be reinstated, as the case may be, if at any time payment, or any part thereof, of principal, premium, if any, or interest with respect to any Note Obligation is rescinded or must otherwise
be restored by any Holder or the Trustee upon the bankruptcy or reorganization of either of the Issuers or otherwise. 

  
 18 

 (f) In furtherance of the foregoing and not in limitation of any other right which any Holder or
the Trustee has at law or in equity against any Subsidiary Guarantor by virtue hereof, upon the failure of the Issuers to pay the principal, premium, if any, or interest with respect to any Note Obligation when and as the same shall become due,
whether at maturity, by acceleration, by redemption or otherwise, or to perform or comply with any other Note Obligation, each Subsidiary Guarantor hereby promises to and shall forthwith pay, or cause to be paid, in cash, to the Holders or the
Trustee an amount equal to the sum of (i) the unpaid principal amount of such Note Obligations, (ii) accrued and unpaid interest on such Note Obligations (but only to the extent not prohibited by law) and (iii) all other monetary Note
Obligations of the Issuers to the Holders and the Trustee. 
 (g) Each Subsidiary Guarantor agrees that it shall not be entitled to any right
of subrogation in relation to the Holders in respect of any Note Obligations guaranteed hereby until payment in full of all Note Obligations. Each Subsidiary Guarantor further agrees that, as between it, on the one hand, and the Holders and the
Trustee, on the other hand, (i) the maturity of the Note Obligations guaranteed hereby may be accelerated as provided in Article VII hereof for the purposes of any Subsidiary Guarantor’s Guarantee herein, notwithstanding any stay,
injunction or other prohibition preventing such acceleration in respect of the Note Obligations guaranteed hereby, and (ii) in the event of any declaration of acceleration of such obligations as provided in Article VII hereof, such Note
Obligations (whether or not due and payable) shall forthwith become due and payable by such Subsidiary Guarantor for the purposes of this Section 9.01. 

(h) Each Subsidiary Guarantor also agrees to pay any and all costs and expenses (including reasonable attorneys’ fees) incurred by the
Trustee or any Holder in enforcing any rights under this Section 9.01. 
 Section 9.02. Limitation on Liability. Any term or
provision of the Indenture to the contrary notwithstanding, the maximum, aggregate amount of the Note Obligations guaranteed hereunder by any Subsidiary Guarantor shall not exceed the maximum amount that, after giving effect to all other contingent
and fixed liabilities of such Subsidiary Guarantor and to any collections from or payments made by or on behalf of any other Subsidiary Guarantor in respect of its obligations under its Guarantee, can be hereby guaranteed without rendering the
Indenture, as it relates to any Subsidiary Guarantor, voidable under applicable law relating to fraudulent conveyance or fraudulent transfer. 

Section 9.03. Successors and Assigns. This Article IX shall be binding upon each Subsidiary Guarantor and, except as provided in
Section 9.07, its successors and assigns and shall inure to the benefit of the successors and assigns of the Trustee and the Holders and, in the event of any transfer or assignment of rights by any Holder or the Trustee, the rights and
privileges conferred upon that party in the Indenture and in the Notes shall automatically extend to and be vested in such transferee or assignee, all subject to the terms and conditions of the Indenture. 

Section 9.04. No Waiver. Neither a failure nor a delay on the part of either the Trustee or the Holders in exercising any right, power
or privilege under this Article IX shall operate as a waiver thereof, nor shall a single or partial exercise thereof preclude any other or further exercise of any right, power or privilege. The rights, remedies and benefits of the Trustee and
the Holders herein expressly specified are cumulative and not exclusive of any other rights, remedies or benefits which either may have under this Article IX at law, in equity, by statute or otherwise. 

Section 9.05. Modification. No modification, amendment or waiver of any provision of this Article IX, nor the consent to any
departure by any Subsidiary Guarantor therefrom, shall in any event be effective unless the same shall be in writing and signed by the Trustee, and then such waiver or consent shall be effective only in the specific instance and for the purpose for
which given. No notice to or demand on any Subsidiary Guarantor in any case shall entitle such Subsidiary Guarantor to any other or further notice or demand in the same, similar or other circumstances. 

  
 19 

 Section 9.06. Execution of Supplemental Indenture for Future Subsidiary Guarantors. Each
Subsidiary which is required to become a Subsidiary Guarantor pursuant to Section 5.05 hereof shall promptly execute and deliver to the Trustee a supplemental Indenture in substantially the form of Exhibit B hereto pursuant to which such
Subsidiary shall become a Subsidiary Guarantor under this Article IX and shall guarantee the Note Obligations. Concurrently with the execution and delivery of such supplemental Indenture, the Issuers shall deliver to the Trustee an Opinion of
Counsel to the effect that such supplemental Indenture has been duly authorized, executed and delivered by such Subsidiary and that, subject to the application of bankruptcy, insolvency, moratorium, fraudulent conveyance or transfer and other
similar laws relating to creditors’ rights generally and to the principles of equity, whether considered in a proceeding at law or in equity, the Guarantee of such Subsidiary Guarantor is a legal, valid and binding obligation of such Subsidiary
Guarantor, enforceable against such Subsidiary Guarantor in accordance with its terms. 
 Section 9.07. Release of Guarantee.
Provided that no Default shall have occurred and shall be continuing under the Indenture, the Guarantee of a Subsidiary Guarantor under this Article IX shall terminate and be of no further force and effect, and such Subsidiary Guarantor shall be
released from the Indenture and all Note Obligations, upon the following events: 
 (a) upon any sale or other disposition of all or
substantially all of the assets of such Subsidiary Guarantor (including by way of merger, consolidation or otherwise) to any Person that is not an Affiliate of either of the Issuers (provided such sale or other disposition is not prohibited by the
Indenture); 
 (b) upon any sale or other disposition of all of the Equity Interests of a Subsidiary Guarantor, to any Person that is not an
Affiliate of either of the Issuers; or 
 (c) following the release or discharge of all guarantees by such Subsidiary Guarantor of any Debt
of the Issuers (other than any Debt Securities), upon delivery by the Issuers to the Trustee of a written notice of such release or discharge from the guarantees. 

ARTICLE X 
 MISCELLANEOUS 

Section 10.01. Additional Amendments. With respect to the Notes, references to (A) “Section 6.01” in the Original
Indenture shall be deemed to be references to “Section 7.01 of this Supplemental Indenture; (B) “Section 11.02” in the Original Indenture shall be deemed to be references to “Section 8.06” of this
Supplemental Indenture; (C) “Section 6.01(g) or (h)” in the Original Indenture shall be deemed to be references to Section 7.01(a)(vi) or (a)(vii) of this Supplemental Indenture; and (D) “Article X” in
the Original Indenture shall be deemed to be a reference to Article VI of this Supplemental Indenture. 
 Section 10.02. Integral
Part. This Supplemental Indenture constitutes an integral part of the Indenture. 
 Section 10.03. Adoption, Ratification and
Confirmation. The Original Indenture, as supplemented and amended by this Supplemental Indenture, is in all respects hereby adopted, ratified and confirmed. 

Section 10.04. Counterparts. This Supplemental Indenture may be executed in any number of counterparts, each of which when so executed
shall be deemed an original; and all such counterparts shall together constitute but one and the same instrument. 
 Section 10.05.
Governing Law. THIS SUPPLEMENTAL INDENTURE AND THE NOTES SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK. 

[Signatures on following pages] 

  
 20 

 SIGNATURES 

 

					
	ISSUERS:
	
	PLAINS ALL AMERICAN PIPELINE, L.P.
		
	By:	 	PAA GP LLC
		 	its General Partner
		
	By:	 	PLAINS AAP, L.P.
		 	its Sole Member
		
	By:	 	PLAINS ALL AMERICAN GP LLC
		 	its General Partner
			
		 	By:	 	 /s/ Sharon Spurlin

		 	Name:	 	Sharon Spurlin
		 	Title:	 	Vice President and Treasurer
	
	PAA FINANCE CORP.
			
		 	By:	 	 /s/ Sharon Spurlin

		 	Name:	 	Sharon Spurlin
		 	Title:	 	Vice President and Treasurer

 Signature Page to Twenty-Seventh Supplemental Indenture 

 
			
	TRUSTEE:
	
	 U.S. BANK NATIONAL ASSOCIATION,
 as
Trustee

		
	By:	 	 /s/ Shazia Flores

		 	Name: Shazia Flores
		 	Title: Assistant Vice President

 Signature Page to Twenty-Seventh Supplemental Indenture 

 EXHIBIT A 

(Form of Face of Note) 
  

			
	CUSIP 72650R BG6	  	No.     
	ISIN US72650R BG65	  	$                

 PLAINS ALL AMERICAN PIPELINE, L.P. 

PAA FINANCE CORP. 
 2.60% Senior
Notes due 2019 
 Plains All American Pipeline, L.P., a Delaware limited partnership, and PAA Finance Corp., a Delaware corporation, jointly and severally
promise to pay to                , or registered assigns, the principal sum of
                     Dollars [or such greater or lesser amount as may be endorsed on the Schedule attached hereto]1 on December 15, 2019. 
 Interest Payment Dates: June 15 and December 15 

Record Dates: June 1 and December 1 
  

					
	PLAINS ALL AMERICAN PIPELINE, L.P.
		
	By:	 	PAA GP LLC, its General Partner
		
	By:	 	Plains AAP, L.P., its Sole Member
		
	By:	 	Plains All American GP LLC, its General Partner
			
		 	By:	 	  

		 	Name:	 	
		 	Title:	 	
	
	PAA FINANCE CORP.
		
	By:	 	  

	Name:	 		 	
	Title:	 		 	

 TRUSTEE’S CERTIFICATE OF 

AUTHENTICATION 
 This is one of the Debt Securities of the series
designated therein referred to in the within-mentioned Indenture. 
  

			
	U.S. BANK NATIONAL ASSOCIATION,
	as Trustee
		
	By:	 	  

		 	Authorized Signatory
		
	Dated:	 	  

  
  

	1 	To be included only if the Note is issued in global form. 

  
 A-1 

 (Form of Back of Note) 

2.60% Senior Notes due 2019 
 [THIS GLOBAL
SECURITY IS HELD BY OR ON BEHALF OF THE DEPOSITARY (AS DEFINED IN THE INDENTURE GOVERNING THIS NOTE) IN CUSTODY FOR THE BENEFIT OF THE BENEFICIAL OWNERS HEREOF, AND IS NOT TRANSFERABLE TO ANY PERSON UNDER ANY CIRCUMSTANCES EXCEPT THAT (A) THE
TRUSTEE MAY MAKE SUCH NOTATIONS HEREON AS MAY BE REQUIRED PURSUANT TO SECTION 2.08 OF THE ORIGINAL INDENTURE, (B) THIS GLOBAL SECURITY MAY BE EXCHANGED IN WHOLE BUT NOT IN PART PURSUANT TO SECTION 2.15 OF THE ORIGINAL INDENTURE, (C) THIS
GLOBAL SECURITY MAY BE DELIVERED TO THE TRUSTEE FOR CANCELLATION PURSUANT TO SECTION 2.10 OF THE ORIGINAL INDENTURE AND (D) THIS GLOBAL SECURITY MAY BE TRANSFERRED TO A SUCCESSOR DEPOSITARY OR ITS NOMINEE WITH THE PRIOR WRITTEN CONSENT OF THE
ISSUERS.]2 
 Capitalized terms used herein shall have the meanings assigned
to them in the Indenture referred to below unless otherwise indicated. 
 1. Interest. Plains All American Pipeline, L.P., a Delaware
limited partnership (the “Partnership”), and PAA Finance Corp., a Delaware corporation (“PAA Finance” and, together with the Partnership, the “Issuers”), jointly and severally promise to pay interest on the principal
amount of this Note at 2.60% per annum from December 9, 2014 until maturity. The Issuers shall pay interest semi-annually on June 15 and December 15 of each such year, or if any such day is not a Business Day, on the next
succeeding Business Day (each an “Interest Payment Date”). Interest on the Notes shall accrue from the most recent date to which interest has been paid or, if no interest has been paid, from the date of issuance. The first Interest Payment
Date shall be June 15, 2015. The Issuers shall pay interest (including post-petition interest in any proceeding under any Bankruptcy Law) on overdue principal and premium, if any, from time to time on demand at a rate that is 1% per annum
in excess of the rate then in effect; and they shall pay interest (including post-petition interest in any proceeding under any Bankruptcy Law) on overdue installments of interest (without regard to any applicable grace periods) from time to time on
demand at the same rate to the extent lawful. Interest shall be computed on the basis of a 360-day year of twelve 30-day months. 
 2.
Method of Payment. The Issuers shall pay interest on the Notes (except defaulted interest) to the Persons who are registered Holders of Notes at the close of business on the June 1 or December 1 next preceding the Interest Payment
Date, even if such Notes are canceled after such record date and on or before such Interest Payment Date, except as provided in Section 2.17 of the Original Indenture with respect to defaulted interest, and the Issuers shall pay principal (and
premium, if any) of the Notes upon surrender thereof to the Trustee or a paying agent on or after the Stated Maturity thereof. The Notes shall be payable as to principal, 
  

 

	2 	To be included only if the Note is issued in global form. 

  
 A-2 

 premium, if any, and interest at the office or agency of the Trustee maintained for such purpose
within or without The City and State of New York, or, at the option of the Issuers, payment of interest may be made by check mailed to the Holders at their addresses set forth in the register of Holders, and provided that payment by wire
transfer of immediately available funds shall be required with respect to principal of and interest and premium, if any, on, each Global Security and all other Notes the Holders of which shall have provided wire transfer instructions to the Issuers
or the paying agent on or prior to the applicable record date. Such payment shall be in such coin or currency of the United States of America as at the time of payment is legal tender for payment of public and private debts. 

3. Paying Agent and Registrar. Initially, U.S. Bank National Association, the Trustee under the Indenture, shall act as paying agent and
Registrar. The Issuers may change any paying agent or Registrar without notice to any Holder. The Issuers or any of their Subsidiaries may act in any such capacity. 

4. Indenture. The Issuers issued the Notes under an Indenture dated as of September 25, 2002 (the “Original Indenture”),
as supplemented by the Twenty-Seventh Supplemental Indenture dated as of December 9, 2014 (the “Supplemental Indenture” and, together with the Original Indenture, the “Indenture”) among the Issuers and the Trustee. The terms
of the Notes include those stated in the Indenture and those made part of the Indenture by reference to the Trust Indenture Act of 1939, as amended (15 U.S. Code §§ 77aaa-77bbbb). The Notes are subject to all such terms, and Holders are
referred to the Indenture and such Act for a statement of such terms. To the extent any provision of this Note conflicts with the express provisions of the Indenture, the provisions of the Indenture shall govern and be controlling. The Notes
are joint and several obligations of the Issuers initially in aggregate principal amount of $500 million. The Issuers may issue an unlimited aggregate principal amount of Additional Notes under the Indenture. Any such Additional Notes that are
actually issued shall be treated as issued and outstanding Notes (and as the same series (with identical terms other than with respect to the issue date, the date of first payment of interest, if applicable, and the payment of interest accruing
prior to the issue date) as the initial Notes) for all purposes of the Indenture, including waivers, amendments, redemptions and offers to purchase. To secure the due and punctual payment of the principal and interest on the Notes and all other
amounts payable by the Issuers under the Indenture and the Notes when and as the same shall be due and payable, whether at maturity, by acceleration or otherwise, according to the terms of the Notes and the Indenture, the Subsidiary Guarantors have
unconditionally guaranteed the Note Obligations under the Indenture and the Notes on a senior basis pursuant to the terms of the Indenture. 

5. Optional Redemption. 

(a) At their option at any time prior to maturity, the Issuers may choose to redeem all or any portion of the Notes at once or from time to
time. 
 (b) To redeem the Notes before November 15, 2019, the Issuers must pay a redemption price equal to the greater of (i) 100%
of the principal amount of the Notes to be redeemed, and (ii) as determined by the Quotation Agent (as defined below), the sum of the present values of the remaining scheduled payments of principal and interest on the Notes to be

  
 A-3 

 
redeemed (not including any portion of those payments of interest accrued as of the date of redemption) discounted to the date of redemption on a semi-annual basis (assuming a 360-day year
consisting of twelve 30-day months) at the Adjusted Treasury Rate (as defined below) plus 20 basis points, plus, in either case, accrued and unpaid interest to the date of redemption (subject to the right of Holders on the relevant record date to
receive interest due on the relevant interest payment date). 
 (c) To redeem the Notes on or after November 15, 2019, the Issuers must
pay a redemption price equal to 100% of the principal amount of the Notes to be redeemed plus accrued and unpaid interest to the date of redemption (subject to the right of Holders on the relevant record date to receive interest due on the relevant
interest payment date). 
 For purposes of determining any redemption price, the following definitions shall apply: 

“Adjusted Treasury Rate” means, with respect to any date of redemption, the rate per annum equal to the semi-annual equivalent yield
to maturity of the Comparable Treasury Issue, assuming a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the Comparable Treasury Price for the date of redemption. 

“Comparable Treasury Issue” means the United States Treasury security selected by the Quotation Agent as having a maturity
comparable to the remaining term of the Notes to be redeemed that would be utilized, at the time of selection and in accordance with customary financial practice, in pricing new issues of corporate debt securities of comparable maturity to the
remaining term of the Notes. 
 “Comparable Treasury Price” means, with respect to any date of redemption, (a) the average of
the Reference Treasury Dealer Quotations for the date of redemption, after excluding the highest and lowest Reference Treasury Dealer Quotations, or (b) if the Trustee obtains fewer than five Reference Treasury Dealer Quotations, the average of
all such Reference Treasury Dealer Quotations. 
 “Quotation Agent” means a Primary Treasury Dealer (as defined below) appointed
by the Issuers. 
 “Reference Treasury Dealer” means Barclays Capital Inc., a primary U.S. Government securities dealer in the
United States (a “Primary Treasury Dealer”) selected by SunTrust Robinson Humphrey, Inc. and a Primary Treasury Dealer selected by Wells Fargo Securities, LLC, or their respective successors; provided, however, that if any of the foregoing
shall cease to be a Primary Treasury Dealer, the Issuers shall substitute another Primary Treasury Dealer. 
 “Reference Treasury
Dealer Quotations” means, with respect to each Reference Treasury Dealer and any date of redemption, the average, as determined by the Trustee, of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a
percentage of its principal amount) quoted in writing to the Trustee by that Reference Treasury Dealer at 5:00 p.m., New York City time, on the third business day preceding that date of redemption. 

  
 A-4 

 6. Notice of Redemption. Notice of redemption shall be mailed at least 30 days but not
more than 60 days before the redemption date to each Holder whose Notes are to be redeemed at its registered address. Notes in denominations larger than $2,000 may be redeemed in part but only in whole multiples of $1,000, unless all of the
Notes held by a Holder are to be redeemed. Unless the Issuers default in payment of the redemption price, on and after the redemption date interest ceases to accrue on Notes or portions thereof called for redemption. 

7. Denominations, Transfer, Exchange. The Notes are in registered form without coupons in minimum denominations of $2,000 and integral
multiples of $1,000. The transfer of Notes may be registered and Notes may be exchanged as provided in the Indenture. The Registrar and the Trustee may require a Holder, among other things, to furnish appropriate endorsements and transfer
documents and the Issuers may require a Holder to pay any taxes or other governmental charges required by law or permitted by the Indenture. The Issuers need not exchange or register the transfer of any Note or portion of a Note selected for
redemption or repurchase, except for the unredeemed or unrepurchased portion of any Note being redeemed or repurchased in part. Also, the Issuers need not exchange or register the transfer of any Notes for a period of 15 days before a selection
of Notes to be redeemed or repurchased or during the period between a record date and the corresponding Interest Payment Date. 
 8.
Persons Deemed Owners. The registered Holder of a Note shall be treated as its owner for all purposes. 
 9. Amendment, Supplement
and Waiver. Subject to certain exceptions, the Indenture or the Notes may be amended or supplemented with the consent of the Holders of a majority in aggregate principal amount of the then Outstanding Notes, and any existing default or
compliance with any provision of the Indenture or the Notes may be waived with the consent of the Holders of a majority in aggregate principal amount of the then Outstanding Notes. Without the consent of any Holder of a Note, the Indenture or the
Notes may be amended or supplemented for any of the purposes set forth in Section 9.01 of the Original Indenture (as amended by the Supplemental Indenture), including to cure any ambiguity, defect or inconsistency, to provide for the assumption
of an Issuer’s obligations to Holders of the Notes in case of a merger or consolidation of such Issuer or sale of all or substantially all of such Issuer’s assets, to add or release Subsidiary Guarantors (or their successors) pursuant to
the terms of the Indenture, to make any change that would provide any additional rights or benefits to the Holders of the Notes or that does not adversely affect the legal rights under the Indenture of any Holder of the Notes, to comply with the
requirements of the Commission to permit the qualification of the Indenture under the Trust Indenture Act, to evidence or provide for the acceptance of appointment under the Indenture of a successor Trustee, to add any additional Events of Default,
to secure the Notes or the Guarantees or to establish the form or terms of any other series of Debt Securities. 

  
 A-5 

 10. Defaults and Remedies. Events of Default with respect to the Notes include:
(i) default for 60 days in the payment when due of interest on the Notes; (ii) default in payment when due of principal of or premium, if any, on the Notes at maturity, upon redemption or otherwise, (iii) failure by an Issuer or any
Subsidiary Guarantor for 90 days after notice to comply with any of the other agreements in the Indenture (provided that notice need not be given, and an Event of Default shall occur, 90 days after any breach of the provisions of
Section 6.01 of the Supplemental Indenture); (iv) default under any mortgage, indenture or instrument under which there may be issued or by which there may be secured or evidenced any Debt of an Issuer or any of the Partnership’s
Subsidiaries (or the payment of which is guaranteed by the Partnership or any of its Subsidiaries), whether such Debt or guarantee now exists or is created after the Issue Date, if that default (a) is caused by a failure to pay principal of or
premium, if any, or interest on such Debt prior to the expiration of the grace period provided in such Debt (a “Payment Default”) or (b) results in the acceleration of the maturity of such Debt to a date prior to its original stated
maturity, and, in each case described in clause (a) or (b), the principal amount of any such Debt, together with the principal amount of any other such Debt under which there has been a Payment Default or the maturity of which has been so
accelerated, aggregates $25.0 million or more, subject to the proviso set forth in Section 7.01(a)(iv) of the Supplemental Indenture; (v) except as permitted by the Indenture, any Guarantee shall cease for any reason to be in full force
and effect (except as otherwise provided in the Indenture) or is declared null and void in a judicial proceeding or any Subsidiary Guarantor, or any Person acting on behalf of any Subsidiary Guarantor, shall deny or disaffirm its obligations under
the Indenture or its Guarantee and (vi) certain events of bankruptcy or insolvency with respect to an Issuer or any of the Subsidiary Guarantors. If any Event of Default occurs and is continuing, the Trustee or the Holders of at least 25% in
aggregate principal amount of the then Outstanding Notes may declare all the Notes to be due and payable. Notwithstanding the foregoing, in the case of an Event of Default arising from certain events of bankruptcy or insolvency involving an Issuer,
but not any Subsidiary Guarantor, all Outstanding Notes shall become due and payable without further action or notice. Holders may not enforce the Indenture or the Notes except as provided in the Indenture. Subject to certain limitations, Holders of
a majority in aggregate principal amount of the then Outstanding Notes may direct the Trustee in its exercise of any trust or power. If and so long as the board of directors, an executive committee of the board of directors or trust committee of
Responsible Officers of the Trustee in good faith so determines, the Trustee may withhold from Holders of the Notes notice of any continuing Default (except a Default relating to the payment of principal, premium, if any, or interest) if it
determines that withholding notice is in their interests. The Holders of a majority in aggregate principal amount of the Notes then Outstanding by notice to the Trustee may on behalf of the Holders of all of the Notes waive any past Default or Event
of Default and its consequences under the Indenture except a continuing Default or Event of Default in the payment of interest on, the principal of, or premium, if any, on the Notes or any other Default specified in Section 6.06 of the Original
Indenture. The Issuers and the Subsidiary Guarantors are required to deliver to the Trustee annually a statement regarding compliance with the Indenture, and the Issuers are required upon becoming aware of any Default or Event of Default, to deliver
to the Trustee a statement specifying such Default or Event of Default. 
 11. Trustee Dealings with Issuers. The Trustee, in its
individual or any other capacity, may make loans to, accept deposits from, and perform services for the Issuers or their Affiliates, and may otherwise deal with the Issuers or their Affiliates, as if it were not the Trustee. 

  
 A-6 

 12. No Recourse Against Others. The General Partner and its directors, officers, employees
and members (in their capacities as such) shall not have any liability for any obligations of the Issuers under the Notes. In addition, the Managing General Partner and its directors, officers, employees and members shall not have any liability for
any obligations of the Issuers under the Notes. Each Holder of Notes by accepting a Note waives and releases all such liability. The waiver and release are part of the consideration for issuance of the Notes. 

13. Authentication. This Note shall not be valid until authenticated by the manual signature of the Trustee or an authenticating agent.

 14. Abbreviations. Customary abbreviations may be used in the name of a Holder or an assignee, such as: TEN COM (= tenants in
common), TEN ENT (= tenants by the entireties), JT TEN (= joint tenants with right of survivorship and not as tenants in common), CUST (= Custodian), and U/G/M/A (= Uniform Gifts to Minors Act). 

15. CUSIP and ISIN Numbers. Pursuant to a recommendation promulgated by the Committee on Uniform Security Identification Procedures, the
Issuers have caused CUSIP and corresponding ISIN numbers to be printed on the Notes, and the Trustee may use CUSIP and corresponding ISIN numbers in notices of redemption as a convenience to Holders. No representation is made as to the accuracy of
such numbers either as printed on the Notes or as contained in any notice of redemption and reliance may be placed only on the other identification numbers placed thereon. 

The Issuers shall furnish to any Holder upon written request and without charge a copy of the Indenture. Requests may be made to: 

Plains All American Pipeline, L.P. 

333 Clay Street, Suite 1600 

Houston, Texas 77002 
 Attention:
Investor Relations 

  
 A-7 

 Assignment Form 

To assign this Note, fill in the form below: (I) or (we) assign and transfer this Note to 

 

	
	 
	(Insert assignee’s soc. sec. or tax I.D. no.)
	 
	 
	 
	 
	(Print or type assignee’s name, address and zip code)

  

	
	and irrevocably appoint __________________________________________________________________________________
	agent to transfer this Note on the books of the Issuers. The agent may substitute another to act for him.
	 

  

							
	Date:                             	 		 	
				
		 		 	Your Signature: 	 	 
		 		 		 	(Sign exactly as your name appears on the face of this Note)
	Signature Guarantee:
                                         
                                         
                                         
                                         
    

 (Signature must be guaranteed by a financial institution that is a member of the Securities Transfer Agent
Medallion Program (“STAMP”), the Stock Exchange Medallion Program (“SEMP”), the New York Stock Exchange, Inc. Medallion Signature Program (“MSP”) or such other signature guarantee program as may be determined by the
Registrar in addition to, or in substitution for, STAMP, SEMP or MSP, all in accordance with the Securities Exchange Act of 1934, as amended.) 

  
 A-8 

 SCHEDULE OF INCREASES OR DECREASES IN THE GLOBAL NOTE3 
 The original principal amount of this Global Note is
$        . The following increases or decreases in this Global Note have been made: 
  

									
	 Date of
Exchange
	 	 Amount of
decrease in
Principal Amount
of
this
Global Note
	 	 Amount of
increase in
Principal Amount
of
this
Global Note
	  	Principal
Amount of
this Global Note
following such
decrease
(or increase)	  	Signature of
authorized
signatory of
Trustee or Note
Custodian

  

 

	3 	To be included only if the Note is issued in global form. 

  
 A-9 

 EXHIBIT B 

FORM OF SUPPLEMENTAL INDENTURE 

SUPPLEMENTAL INDENTURE (this “Supplemental Indenture”), dated as of
                                , among Plains All American Pipeline, L.P., a Delaware
limited partnership (the “Partnership”), PAA Finance Corp., a Delaware corporation (“PAA Finance” and, together with the Partnership, the “Issuers”),
                                 (the “Subsidiary Guarantor”), a direct or
indirect subsidiary of Plains All American Pipeline, L.P. (or its successor), a Delaware limited partnership (the “Partnership”), and U.S. Bank National Association, as trustee under the indenture referred to below (the
“Trustee”). 
 W I T N E S S E T H 

WHEREAS, the Issuers have heretofore executed and delivered to the Trustee an indenture (the “Original Indenture”), dated as of
September 25, 2002, as supplemented by the Twenty-Seventh Supplemental Indenture (the “Twenty-Seventh Supplemental Indenture” and, together with the Original Indenture, the “Indenture”) dated as of December 9, 2014,
among the Issuers and the Trustee, providing for the issuance of the Issuers’ 2.60% Senior Notes due 2019 (the “Notes”); 

WHEREAS, Section 5.05 of the Twenty-Seventh Supplemental Indenture provides that under certain circumstances the Partnership is required
to cause the Subsidiary Guarantor to execute and deliver to the Trustee a supplemental indenture pursuant to which the Subsidiary Guarantor shall unconditionally guarantee all of the Issuers’ obligations under the Notes pursuant to a Guarantee
on the terms and conditions set forth herein; and 
 WHEREAS, pursuant to Section 9.01 of the Original Indenture, the Issuers and the
Trustee are authorized to execute and deliver this Supplemental Indenture; 
 NOW THEREFORE, in consideration of the foregoing and for other
good and valuable consideration, the receipt of which is hereby acknowledged, the Issuers, the Subsidiary Guarantor and the Trustee mutually covenant and agree for the equal and ratable benefit of the holders of the Notes as follows: 

1. Definitions. 
 (a)
Capitalized terms used herein without definition shall have the meanings assigned to them in the Indenture. 
 (b) For all purposes of this
Supplemental Indenture, except as otherwise herein expressly provided or unless the context otherwise requires: (i) the terms and expressions used herein shall have the same meanings as corresponding terms and expressions used in the Indenture;
and (ii) the words “herein,” “hereof” and “hereby” and other words of similar import used in this Supplemental Indenture refer to this Supplemental Indenture as a whole and not to any particular section hereof.

  
 B-1 

 2. Agreement to Guarantee. The Subsidiary Guarantor hereby agrees, jointly and severally
with all other Subsidiary Guarantors under the Indenture, if any, to guarantee the Issuers’ obligations under the Notes on the terms and subject to the conditions set forth in Article IX of the Twenty-Seventh Supplemental Indenture and to
be bound by all other applicable provisions of the Indenture. Except as expressly amended hereby, the Indenture is in all respects ratified and confirmed and all the terms, conditions and provisions thereof shall remain in full force and effect.
This Supplemental Indenture shall form a part of the Indenture for all purposes, and every holder of Notes heretofore or hereafter authenticated and delivered shall be bound hereby. 

3. GOVERNING LAW. THIS SUPPLEMENTAL INDENTURE SHALL BE DEEMED TO BE A NEW YORK CONTRACT, AND FOR ALL PURPOSES SHALL BE
CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK. 
 4. Trustee Makes No Representation. The Trustee makes no
representation as to the validity or sufficiency of this Supplemental Indenture. 
 5. Counterparts. The parties may sign any number
of copies of this Supplemental Indenture. Each signed copy shall be an original, but all of them together represent the same agreement. 
 6.
Effect of Headings. The Section headings herein are for convenience only and shall not effect the construction thereof. 

  
 B-2 

 IN WITNESS WHEREOF, the parties hereto have caused this Supplemental Indenture to be duly
executed as of the date first above written. 
  

					
	PLAINS ALL AMERICAN PIPELINE, L.P.
		
	By:	 	PAA GP LLC, its General Partner
		
	By:	 	Plains AAP, L.P., its Sole Member
		
	By:	 	 Plains All American GP LLC, its General

Partner

			
		 	By:	 	  

		 		 	Name:
		 		 	Title:
	
	PAA FINANCE CORP.
		
	By:	 	  

		 	Name:	 	
		 	Title:	 	
	
	[SUBSIDIARY GUARANTOR],
		
	By:	 	  

		 	Name:	 	
		 	Title:	 	
	
	U.S. BANK NATIONAL ASSOCIATION, as Trustee
		
	By:	 	  

		 	Name:	 	
		 	Title:	 	

  
 B-3

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