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EXCHANGE AND REGISTRATION RIGHTS AGREEMENT

AMONG

PLAINS ALL AMERICAN PIPELINE, L.P.,

PAA FINANCE CORP.,

THE GUARANTORS

AND

THE INITIAL PURCHASERS

Dated as of October 30, 2006

 

 

PLAINS ALL AMERICAN PIPELINE, L.P.

PAA FINANCE CORP.

6.125% Senior Notes due 2017

EXCHANGE AND REGISTRATION RIGHTS AGREEMENT

October 30, 2006

Citigroup Global Markets Inc.

UBS Securities LLC

Banc of America Securities LLC

J.P. Morgan Securities Inc.

Wachovia Capital Markets, LLC

BNP Paribas Securities Corp.

SunTrust Capital Markets, Inc.

Comerica Securities, Inc.

Commerzbank Capital Markets Corp.

DnB NOR Markets, Inc.

Fortis Securities LLC

HSBC Securities (USA) Inc.

ING Financial Markets LLC

Mitsubishi UFJ Securities International plc

Piper Jaffray & Co.

RBC Capital Markets Corporation

Scotia Capital (USA) Inc.

Daiwa Securities America Inc.

SG Americas Securities, LLC

Wedbush Morgan Securities Inc.

Wells Fargo Securities, LLC

c/o Citigroup Global Markets Inc.

    388 Greenwich St., 34th Floor

    New York, New York 10013

Ladies and Gentlemen:

          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”) and the Guarantors listed on Schedule 1 hereto (the “Guarantors”), propose to issue and
sell to the initial purchasers listed on Schedule 2 hereto (the “Initial Purchasers”), upon the
terms set forth in a purchase agreement dated October 23, 2006 (the “Purchase Agreement”),
$400,000,000 principal amount of 6.125% Senior Notes due 2017 (the “Securities”) and $600,000,000
principal amount of 6.650% Senior Notes due 2037 (the “2037

 

 

Notes”) relating to the initial placement of the Securities and the 2037 Notes (the “Initial
Placement”). To induce the Initial Purchasers to enter into the Purchase Agreement and to satisfy
a condition of your obligations thereunder, the Issuers and the Guarantors agree with you for your
benefit and the benefit of the other holders from time to time of the Securities (including the
Initial Purchasers) (each a “Holder” and, together, the “Holders”), as follows:

          1. Definitions. Capitalized terms used herein without definition shall have their
respective meanings set forth in the Purchase Agreement. As used in this Agreement, the following
capitalized defined terms shall have the following meanings:

          “2037 Notes” shall have the meaning set forth in the preamble hereto.

          “Act” shall mean the Securities Act of 1933, as amended, and the rules and regulations of the
Commission promulgated thereunder.

          “Affiliate” of any specified Person shall mean any other Person that, directly or indirectly,
is in control of, is controlled by, or is under common control with, such specified Person. For
purposes of this definition, control of a Person shall mean the power, direct or indirect, to
direct or cause the direction of the management and policies of such Person whether by contract or
otherwise; and the terms “controlling” and “controlled” shall have meanings correlative to the
foregoing.

          “Broker-Dealer” shall mean any broker or dealer registered as such under the Exchange Act.

          “Business Day” shall mean any day other than a Saturday, a Sunday or a legal holiday or a day
on which banking institutions or trust companies are authorized or obligated by law to close in New
York City.

          “Commission” shall mean the Securities and Exchange Commission.

          “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended, and the rules and
regulations of the Commission promulgated thereunder.

          “Exchange Offer Registration Period” shall mean the one-year period following the consummation
of the Registered Exchange Offer, exclusive of any period during which any stop order shall be in
effect suspending the effectiveness of the Exchange Offer Registration Statement.

          “Exchange Offer Registration Statement” shall mean a registration statement of the Issuers and
the Guarantors on an appropriate form under the Act with respect to the Registered Exchange Offer,
all amendments and supplements to such registration statement, including post-effective amendments
thereto, in each case including the Prospectus contained therein, all exhibits thereto and all
material incorporated by reference therein.

          “Exchanging Dealer” shall mean any Holder (which may include any Initial Purchaser) that is a
Broker-Dealer and elects to exchange for New Securities any Securities that it acquired for its
own account as a result of market-making activities or other trading activities

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(but not directly
from the Issuers and the Guarantors or any Affiliate of the Issuers and the Guarantors) for New
Securities.

          “Final Offering Memorandum” shall have the meaning set forth in the Purchase Agreement.

          “Guarantors” shall have the meaning set forth in the preamble hereto and shall also include
any Guarantor’s successor.

          “Holder” shall have the meaning set forth in the preamble hereto.

          “Indenture” shall mean the Indenture relating to the Securities and the New Securities, dated
as of September 25, 2002, among the Issuers and U.S. Bank National Association, as successor
trustee, as amended by the Ninth Supplemental Indenture, dated as of October 30, 2006, among the
Issuers, the Guarantors and the Trustee, as the same may be amended from time to time in accordance
with the terms thereof.

          “Initial Placement” shall have the meaning set forth in the preamble hereto.

          “Initial Purchasers” shall have the meaning set forth in the preamble hereto.

          “Losses” shall have the meaning set forth in Section 7(d) hereof.

          “Majority Holders” shall mean the Holders of a majority of the aggregate principal amount of
Securities registered under a Registration Statement.

          “Managing Underwriters” shall mean the investment banker or investment bankers and manager or
managers that shall administer an underwritten offering.

          “New Securities” shall mean debt securities of the Issuers identical in all material respects
to the Securities (except that the interest rate step-up provisions and the transfer restrictions
shall be eliminated) and to be issued under the Indenture.

          “Prospectus” shall mean the prospectus included in any Registration Statement (including,
without limitation, a prospectus that discloses information previously omitted from a prospectus
filed as part of an effective registration statement in reliance upon Rule 430A under the Act), as
amended or supplemented by any prospectus supplement, with respect to the terms of the offering of
any portion of the Securities or the New Securities covered by such Registration Statement, and all
amendments and supplements thereto and all material incorporated by reference therein.

          “Purchase Agreement” shall have the meaning set forth in the preamble hereto.

          “Registered Exchange Offer” shall mean the proposed offer of the Issuers and the Guarantors to
issue and deliver to the Holders of the Securities that are not prohibited by any law
or policy of the Commission from participating in such offer, in exchange for the Securities,
a like aggregate principal amount of the New Securities.

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          “Registration Default” shall have the meaning set forth in Section 4(a) hereof.

          “Registration Statement” shall mean any Exchange Offer Registration Statement or Shelf
Registration Statement that covers any of the Securities or the New Securities pursuant to the
provisions of this Agreement, any amendments and supplements to such registration statement,
including post-effective amendments (in each case including the Prospectus contained therein), all
exhibits thereto and all material incorporated by reference therein.

          “Securities” shall have the meaning set forth in the preamble hereto.

          “Shelf Registration” shall mean a registration effected pursuant to Section 3 hereof.

          “Shelf Registration Period” has the meaning set forth in Section 3(b) hereof.

          “Shelf Registration Statement” shall mean a “shelf” registration statement of the Issuers and
the Guarantors pursuant to the provisions of Section 3 hereof which covers some or all of the
Securities or New Securities, as applicable, on an appropriate form under Rule 415 under the Act,
or any similar rule that may be adopted by the Commission, amendments and supplements to such
registration statement, including post-effective amendments, in each case including the Prospectus
contained therein, all exhibits thereto and all material incorporated by reference therein.

          “Trustee” shall mean the trustee with respect to the Securities and the New Securities under
the Indenture.

          “Trust Indenture Act” shall mean the Trust Indenture Act of 1939, as amended from time to
time.

          “underwriter” shall mean any underwriter of Securities in connection with an offering thereof
under a Shelf Registration Statement.

          2. Registered Exchange Offer. (a) Except as set forth in Section 3, the Issuers and the
Guarantors shall prepare and shall use their reasonable best efforts to file with the Commission
the Exchange Offer Registration Statement with respect to the Registered Exchange Offer, not later
than 180 days following the date of the original issuance of the Securities (or if such 180th day
is not a Business Day, the next succeeding Business Day). The Issuers and the Guarantors shall use
their reasonable best efforts to cause the Exchange Offer Registration Statement to become
effective under the Act within 270 days of the date of the original issuance of the Securities and
to consummate the Registered Exchange Offer within 300 days of the date of the original issuance of
the Securities (if such 270th or 300th day is not a Business Day, the next succeeding Business
Day, as applicable).

          (a) Upon the effectiveness of the Exchange Offer Registration Statement, the Issuers and the
Guarantors shall promptly commence the Registered Exchange Offer, it being the objective of such
Registered Exchange Offer to enable each Holder electing to exchange Securities for New Securities
(assuming that such Holder is not an Affiliate of the Issuers or the Guarantors, acquires the New
Securities in the ordinary course of such Holder’s business, has no

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arrangements with any Person to
participate in the distribution of the New Securities and is not prohibited by any law or policy of
the Commission from participating in the Registered Exchange Offer) to trade such New Securities
from and after their receipt without any limitations or restrictions under the Act and without
material restrictions under the securities laws of a substantial proportion of the several states
of the United States.

          (b) In connection with the Registered Exchange Offer, the Issuers and the Guarantors shall:

          (i) mail to each Holder a copy of the Prospectus forming part of the Exchange Offer
Registration Statement, together with an appropriate letter of transmittal and related
documents;

          (ii) keep the Registered Exchange Offer open for not less than 20 Business Days after
the date the notice thereof is mailed to the Holders (or, in each case, longer if required
by applicable law);

          (iii) use their reasonable best efforts to keep the Exchange Offer Registration
Statement continuously effective under the Act, supplemented and amended as required under
the Act to ensure that it is available for sales of New Securities by Exchanging Dealers
during the Exchange Offer Registration Period;

          (iv) utilize the services of a bank depositary for the Registered Exchange Offer with
an address in the Borough of Manhattan in New York City, which may be the Trustee or an
Affiliate of the Trustee;

          (v) permit Holders to withdraw tendered Securities at any time prior to the close of
business, New York time, on the last Business Day on which the Registered Exchange Offer is
open;

          (vi) prior to effectiveness of the Exchange Offer Registration Statement, provide a
supplemental letter to the Commission (A) stating that the Issuers and the Guarantors are
conducting the Registered Exchange Offer in reliance on the position of the Commission in
Exxon Capital Holdings Corporation (pub. avail. May 13, 1988) and Morgan Stanley
and Co., Inc. (pub. avail. June 5, 1991) and (B) including a representation that the
Issuers and the Guarantors have not entered into any arrangement or understanding with any
Person to distribute the New Securities to be received in the Registered Exchange Offer and
that, to the best of the Issuers’ and the Guarantors’ information and belief, each Holder
participating in the Registered Exchange Offer is acquiring the New Securities in the
ordinary course of business and has no arrangement or understanding with any Person to
participate in the distribution of the New Securities; and

          (vii) comply in all material respects with all applicable laws.

          (c) As soon as practicable after the close of the Registered Exchange Offer, the Issuers and
the Guarantors shall:

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

          (ii) issue and cause the Trustee promptly to authenticate a global certificate
representing New Securities exchanged for Securities and to deliver to each Holder of
Securities a principal amount of New Securities equal to the principal amount of the
Securities of such Holder so accepted for exchange.

          (d) Each Holder hereby acknowledges and agrees that any Broker-Dealer and any such Holder
using the Registered Exchange Offer to participate in a distribution of the New Securities (x)
could not under Commission policy as in effect on the date of this Agreement rely on the position
of the Commission in Morgan Stanley and Co., Inc. (pub. avail. June 5, 1991) and Exxon
Capital Holdings Corporation (pub. avail. May 13, 1988), as interpreted in the Commission’s
letter to Shearman & Sterling dated July 2, 1993 and similar no-action letters; and (y) must comply
with the registration and prospectus delivery requirements of the Act in connection with any
secondary resale transaction and must be covered by an effective registration statement containing
the selling security holder information required by Item 507 or 508, as applicable, of Regulation
S-K under the Act if the resales are of New Securities obtained by such Holder in exchange for
Securities acquired by such Holder directly from the Issuers or the Guarantors or one of their
Affiliates. Accordingly, each Holder participating in the Registered Exchange Offer shall be
required to represent to the Issuers and the Guarantors that, at the time of the consummation of
the Registered Exchange Offer:

          (i) any New Securities received by such Holder will be acquired in the ordinary course
of business;

          (ii) such Holder will have no arrangement or understanding with any Person to
participate in the distribution of the Securities or the New Securities within the meaning
of the Act; and

          (iii) such Holder is not an Affiliate of the Issuers or the Guarantors.

          3. Shelf Registration. (a) If (i) due to any change in law or applicable interpretations
thereof by the Commission’s staff, the Issuers and the Guarantors determine upon advice of their
outside counsel that they are not permitted to effect the Registered Exchange Offer as contemplated
by Section 2 hereof; (ii) for any other reason the Registered Exchange Offer is not consummated
within 300 days of the date hereof; (iii) any Initial Purchaser so requests with respect to
Securities that are not eligible to be exchanged for New Securities in the Registered Exchange
Offer and that are held by it following consummation of the Registered Exchange Offer, or (iv) any
Holder (other than an Initial Purchaser) is not eligible to participate in the Registered Exchange
Offer, the Issuers
and the Guarantors shall effect a Shelf Registration Statement in accordance with subsection (b)
below.

          (b) (i) The Issuers and the Guarantors shall as promptly as practicable (but in no event more
than 180 days after so required or requested pursuant to this Section 3), file with the Commission
and thereafter shall use their reasonable best efforts to cause to be declared effective under the
Act, within 270 days after so required or requested pursuant to this Section 3,

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a Shelf
Registration Statement relating to the offer and sale of the Securities or the New Securities, as
applicable, by the Holders thereof from time to time in accordance with the methods of distribution
elected by such Holders and set forth in such Shelf Registration Statement; provided,
however, that no Holder (other than an Initial Purchaser) shall be entitled to have the
Securities held by it covered by such Shelf Registration Statement unless such Holder agrees in
writing to be bound by all of the provisions of this Agreement applicable to such Holder; and
provided further, that with respect to New Securities received by an Initial
Purchaser in exchange for Securities constituting any portion of an unsold allotment, the Issuers
and the Guarantors may, if permitted by current interpretations by the Commission’s staff, file a
post-effective amendment to the Exchange Offer Registration Statement containing the information
required by Item 507 or 508 of Regulation S-K, as applicable, in satisfaction of their obligations
under this subsection with respect thereto, and any such Exchange Offer Registration Statement, as
so amended, shall be referred to herein as, and governed by the provisions herein applicable to, a
Shelf Registration Statement.

          (ii) The Issuers and the Guarantors shall use their reasonable best efforts to keep the
Shelf Registration Statement continuously effective, supplemented and amended as required by
the Act, in order to permit the Prospectus forming part thereof to be usable by Holders for
a period of two years from the date the Shelf Registration Statement is declared effective
by the Commission or such shorter period that will terminate when all the Securities or New
Securities, as applicable, covered by the Shelf Registration Statement have been sold
pursuant to the Shelf Registration Statement under the Act (in any such case, such period
being called the “Shelf Registration Period”). The Issuers and the Guarantors shall be
deemed not to have used their reasonable best efforts to keep the Shelf Registration
Statement effective during the requisite period if either Issuer or any Guarantor
voluntarily takes any action that would result in Holders of Securities covered thereby not
being able to offer and sell such Securities during that period, unless (A) such action is
required by applicable law; or (B) such action is taken by such Issuer or such Guarantor in
good faith and for valid business reasons (not including avoidance of the Issuers’ or the
Guarantors’ obligations hereunder), including the acquisition or divestiture of assets, so
long as the Issuers and the Guarantors promptly thereafter comply with the requirements of
Section 5(k) hereof, if applicable.

          (iii) The Issuers and the Guarantors shall cause the Shelf Registration Statement and
the related Prospectus and any amendment or supplement thereto, as of the effective date of
the Shelf Registration Statement or such amendment or supplement, (A) to comply in all
material respects with the applicable requirements of the Act and the rules and regulations
of the Commission; and (B) not to contain any untrue statement of a material fact or omit to
state a material fact required to be stated therein or necessary in
order to make the statements therein, in the light of the circumstances under which
they were made, not misleading.

          4. Additional Interest. 

          (a) In the event that (i) the Issuers and the Guarantors have not filed the Exchange Offer
Registration Statement or the Shelf Registration Statement with the Commission on or before the
date on which such Registration Statement is required to be so filed pursuant to

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Section 2(a) and
3(b), respectively, or (ii) such Exchange Offer Registration Statement or Shelf Registration
Statement has not been declared effective by the Commission under the Act on or before the date on
which such Registration Statement is required to be declared effective under the Act pursuant to
Section 2(a) or 3(b), respectively, or (iii) the Exchange Offer has not been consummated within 300
days after the date of issuance of the Securities, or (iv) the Exchange Offer Registration
Statement or Shelf Registration Statement required by Section 2(a) or 3(b) hereof is filed and
declared effective by the Commission under the Act but shall thereafter cease to be effective
(except as specifically permitted herein) without being succeeded immediately by an additional
Registration Statement filed and declared effective by the Commission under the Act (each such
event referred to in clauses (i) through (iv) is referred to herein as a “Registration Default”),
then the interest rate on the Securities will be increased, for the period from the occurrence of
the Registration Default until such time as all Registration Defaults are cured (at which time the
interest rate will be reduced to its initial rate) by 0.25% per annum during the first 90-day
period following the occurrence and during the continuation of the Registration Default, and by
0.25% per annum for each subsequent 90-day period during which such Registration Default continues.
The interest rate will not at any time be increased by greater than 0.50% per annum.

          (b) Without limiting the remedies available to the Initial Purchasers and the Holders, the
Issuers and the Guarantors acknowledge that any failure by the Issuers or the Guarantors to comply
with their obligations under Section 2(a) or 3(b) hereof may result in material irreparable injury
to the Initial Purchasers or the Holders for which there is no adequate remedy at law, that it will
not be possible to measure damages for such injuries precisely and that, in the event of any such
failure, the Initial Purchasers or any Holder may obtain such relief as may be required to
specifically enforce the Issuers’ and the Guarantors’ obligations under Section 2(a) or Section
3(b) hereof.

          5. Additional Registration Procedures. In connection with any Shelf Registration Statement
and, to the extent applicable, any Exchange Offer Registration Statement, the following provisions
shall apply.

          (a) The Issuers and the Guarantors shall:

          (i) furnish to you, not less than five Business Days prior to the filing thereof with
the Commission, a copy of any Exchange Offer Registration Statement and any Shelf
Registration Statement, and each amendment thereof and each amendment or supplement, if any,
to the Prospectus included therein (including all documents incorporated by reference
therein after the initial filing) and shall use their reasonable
best efforts to reflect in each such document, when so filed with the Commission, such
comments as you reasonably propose;

          (ii) include the information set forth in Annex A hereto on the facing page of the
Exchange Offer Registration Statement, in Annex B hereto in the forepart of the Exchange
Offer Registration Statement in a section setting forth details of the Exchange Offer, in
Annex C hereto in the underwriting or plan of distribution section of the Prospectus
contained in the Exchange Offer Registration Statement, and in Annex D hereto in the letter
of transmittal delivered pursuant to the Registered Exchange Offer;

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          (iii) if requested by an Initial Purchaser, include the information required by Item
507 or 508 of Regulation S-K, as applicable, in the Prospectus contained in the Shelf
Registration Statement; and

          (iv) in the case of a Shelf Registration Statement, include the names of the Holders
that propose to sell Securities pursuant to the Shelf Registration Statement as selling
security holders.

          (b) The Issuers and the Guarantors shall ensure that:

          (i) any Registration Statement and any amendment thereto and any Prospectus forming
part thereof and any amendment or supplement thereto comply in all material respects with
the Act and the rules and regulations thereunder; and

          (ii) any Registration Statement and any amendment thereto do not, when they become
effective, contain an untrue statement of a material fact or omit to state a material fact
required to be stated therein or necessary to make the statements therein not misleading.

          (c) The Issuers and the Guarantors shall advise you, the Holders of Securities covered by any
Shelf Registration Statement and any Exchanging Dealer under any Exchange Offer Registration
Statement that has provided in writing to the Issuers and the Guarantors a telephone or facsimile
number and address for notices, and, if requested in writing by you or any such Holder or
Exchanging Dealer, shall confirm such advice in writing (which notice pursuant to clauses (ii)-(v)
hereof shall be accompanied by an instruction to suspend the use of the Prospectus until the
Issuers and the Guarantors shall have remedied the basis for such suspension):

          (i) when a Registration Statement and any amendment thereto have been filed with the
Commission and when the Registration Statement or any post-effective amendment thereto has
become effective;

          (ii) of any request by the Commission for any amendment or supplement to the
Registration Statement or the Prospectus or for additional information;

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

          (iv) of the receipt by the Issuers and the Guarantors of any notification with respect
to the suspension of the qualification of the Securities included therein for sale in any
jurisdiction or the initiation of any proceeding for such purpose; and

          (v) of the happening of any event that requires any change in the Registration
Statement or the Prospectus so that, as of such date, the statements therein are not
misleading and do not omit to state a material fact required to be stated therein or
necessary to make the statements therein (in the case of the Prospectus, in the light of the
circumstances under which they were made) not misleading.

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          (d) The Issuers and the Guarantors shall use their reasonable best efforts to obtain the
withdrawal of any order suspending the effectiveness of any Registration Statement or the
qualification of the Securities therein for sale in any jurisdiction at the earliest possible time.

          (e) The Issuers and the Guarantors shall furnish to each Holder of Securities covered by any
Shelf Registration Statement, without charge, at least one copy of such Shelf Registration
Statement and any post-effective amendment thereto, including all material incorporated therein by
reference, and, if the Holder so requests in writing, all exhibits thereto (including exhibits
incorporated by reference therein).

          (f) The Issuers and the Guarantors shall, during the Shelf Registration Period, deliver to
each Holder of Securities covered by any Shelf Registration Statement, without charge, as many
copies of the Prospectus (including each preliminary Prospectus) included in such Shelf
Registration Statement and any amendment or supplement thereto as such Holder may reasonably
request. The Issuers and the Guarantors consent to the use of the Prospectus or any amendment or
supplement thereto by each of the selling Holders of Securities in connection with the offering and
sale of the Securities covered by the Prospectus, or any amendment or supplement thereto, included
in the Shelf Registration Statement.

          (g) The Issuers and the Guarantors shall furnish to each Exchanging Dealer which so requests,
without charge, at least one copy of the Exchange Offer Registration Statement and any
post-effective amendment thereto, including all material incorporated by reference therein, and, if
the Exchanging Dealer so requests in writing, all exhibits thereto (including exhibits incorporated
by reference therein).

          (h) The Issuers and the Guarantors shall promptly deliver to each Initial Purchaser, each
Exchanging Dealer and each other Person required to deliver a Prospectus during the effectiveness
of the Exchange Offer Registration Statement, without charge, as many copies of the Prospectus
included in such Exchange Offer Registration Statement and any amendment or supplement thereto as
any such Person may reasonably request. The Issuers and the Guarantors consent to the use of the
Prospectus or any amendment or supplement thereto by any Initial Purchaser, any Exchanging Dealer
and any such other Person that may be required to deliver a Prospectus following the Registered
Exchange Offer in connection with the offering and sale of the New Securities covered by the
Prospectus, or any amendment or supplement thereto, included in the Exchange Offer Registration
Statement.

          (i) Prior to the Registered Exchange Offer or any other offering of Securities pursuant to any
Registration Statement, the Issuers and the Guarantors shall arrange, if necessary, for the
qualification of the Securities or the New Securities for sale under the laws of such jurisdiction
as any Holder shall reasonably request and will maintain such qualification in effect so long as
required; provided that in no event shall either Issuer or any Guarantor be obligated to
qualify to do business in any jurisdiction where it is not then so qualified or to take any action
that would subject it to service of process in suits, other than those arising out of the Initial
Placement, the Registered Exchange Offer or any offering pursuant to a Shelf Registration
Statement, in any such jurisdiction where it is not then so subject.

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          (j) If any of the Securities or the New Securities are not issued in global form, then the
Issuers and the Guarantors shall cooperate with the Holders of Securities to facilitate the timely
preparation and delivery of certificates representing New Securities or Securities to be issued or
sold pursuant to any Registration Statement free of any restrictive legends and in such
denominations and registered in such names as Holders may request.

          (k) Upon the occurrence of any event contemplated by subsections (c)(ii) or (v) above, the
Issuers and the Guarantors shall promptly prepare a post-effective amendment to the applicable
Registration Statement or an amendment or supplement to the related Prospectus or file any other
required document so that, as thereafter delivered to Initial Purchasers of the securities included
therein, the Prospectus will not include an untrue statement of a material fact or omit to state
any material fact necessary to make the statements therein, in the light of the circumstances under
which they were made, not misleading. In such circumstances, the period of effectiveness of the
Exchange Offer Registration Statement provided for in Section 2 and the Shelf Registration
Statement provided for in Section 3(b) shall each be extended by the number of days from and
including the date of the giving of a notice of suspension pursuant to Section 5(c) to and
including the date when the Initial Purchasers, the Holders of the Securities and any known
Exchanging Dealer shall have received such amended or supplemented Prospectus pursuant to this
Section.

          (l) Not later than the effective date of any Registration Statement, the Issuers and the
Guarantors shall provide a CUSIP number for the Securities or the New Securities, as the case may
be, registered under such Registration Statement and provide the Trustee with certificates for such
Securities or New Securities, in a form eligible for deposit with The Depository Trust Company.

          (m) The Issuers and the Guarantors shall comply with all applicable rules and regulations of
the Commission and shall make generally available to the Issuers’ security holders as soon as
practicable after the effective date of the applicable Registration Statement an earnings statement
satisfying the provisions of Section 11(a) of the Act.

          (n) The Issuers and the Guarantors shall cause the Indenture to be qualified under the Trust
Indenture Act in a timely manner.

          (o) The Issuers and the Guarantors may require each Holder of Securities to be sold pursuant
to any Shelf Registration Statement to furnish to the Issuers and the Guarantors such information
regarding the Holder and the distribution of such Securities as the Issuers and
the Guarantors may from time to time reasonably require for inclusion in such Registration
Statement. The Issuers and the Guarantors may exclude from such Shelf Registration Statement the
Securities of any Holder that unreasonably fails to furnish such information within a reasonable
time after receiving such request.

          (p) In the case of any Shelf Registration Statement, the Issuers and the Guarantors shall
enter into such agreements and take all other appropriate actions (including, if requested, an
underwriting agreement in customary form) in order to expedite or facilitate the registration or
the disposition of the Securities, and in connection therewith, if an underwriting agreement is
entered into, cause the same to contain indemnification provisions and procedures

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no less favorable
than those set forth in Section 7 (or such other provisions and procedures acceptable to the
Majority Holders and the Managing Underwriters, if any, with respect to all parties to be
indemnified pursuant to Section 7).

          (q) In the case of any Shelf Registration Statement, the Issuers and the Guarantors shall:

          (i) make reasonably available for inspection by the Holders of Securities to be
registered thereunder, any underwriter participating in any disposition pursuant to such
Registration Statement, and any attorney, accountant or other agent retained by the Holders
or any such underwriter all relevant financial and other records, pertinent partnership,
corporate or limited liability company documents and properties of the Issuers and the
Guarantors and their respective subsidiaries;

          (ii) cause the Issuers’ and the Guarantors’ respective officers, directors and
employees to supply all relevant information reasonably requested by the Holders or any such
underwriter, attorney, accountant or agent in connection with any such Registration
Statement as is customary for similar due diligence examinations; provided,
however, that any information that is designated in writing by the Issuers or the
Guarantors, in good faith, as confidential at the time of delivery of such information shall
be kept confidential by the Holders or any such underwriter, attorney, accountant or agent,
unless such disclosure is made in connection with a court proceeding or required by law, or
such information becomes available to the public generally or through a third party without
an accompanying obligation of confidentiality;

          (iii) make such representations and warranties to the Holders of Securities registered
thereunder and the underwriters, if any, in form, substance and scope as are customarily
made by issuers to underwriters in primary underwritten offerings and covering matters
including, but not limited to, those set forth in the Purchase Agreement;

          (iv) obtain opinions of counsel to the Issuers and the Guarantors and updates thereof
(which counsel and opinions (in form, scope and substance) shall be reasonably satisfactory
to the Managing Underwriters, if any) addressed to each selling Holder and the underwriters,
if any, covering such matters as are customarily covered in opinions requested in
underwritten offerings and such other matters as may be reasonably requested by such Holders
and underwriters;

          (v) obtain “cold comfort” letters and updates thereof from the independent certified
public accountants of the Issuers and the Guarantors (and, if necessary, any other
independent certified public accountants of any subsidiary of the Issuers and the Guarantors
or of any business acquired by the Issuers and the Guarantors for which financial statements
and financial data are, or are required to be, included in the Registration Statement),
addressed to each selling Holder of Securities registered thereunder and the underwriters,
if any, in customary form and covering matters of the type customarily covered in “cold
comfort” letters in connection with primary underwritten offerings; and

12

 

          (vi) deliver such documents and certificates as may be reasonably requested by the
Majority Holders and the Managing Underwriters, if any, including those to evidence
compliance with Section 5(k) and with any customary conditions contained in the underwriting
agreement or other agreement entered into by the Issuers or the Guarantors.

The actions set forth in clauses (iii), (iv), (v) and (vi) of this Section shall be performed at
(A) the effectiveness of such Registration Statement and each post-effective amendment thereto; and
(B) each closing under any underwriting or similar agreement as and to the extent required
thereunder.

          (r) [omitted]

          (s) [omitted]

          (t) [omitted]

          (u) In the event that any Broker-Dealer shall underwrite any Securities or participate as a
member of an underwriting syndicate or selling group or “assist in the distribution” (within the
meaning of the Conduct Rules and the By-Laws of the National Association of Securities Dealers,
Inc.) thereof, whether as a Holder of such Securities or as an underwriter, a placement or sales
agent or a broker or dealer in respect thereof, or otherwise, assist such Broker-Dealer in
complying with the requirements of such Rules and By-Laws, including, without limitation, by:

          (i) if such Rules or By-Laws shall so require, engaging a “qualified independent
underwriter” (as defined in such Rules) to participate in the preparation of the
Registration Statement, to exercise usual standards of due diligence with respect thereto
and, if any portion of the offering contemplated by such Registration Statement is an
underwritten offering or is made through a placement or sales agent, to recommend the yield
of such Securities;

          (ii) indemnifying any such qualified independent underwriter to the extent of the
indemnification of underwriters provided in Section 7 hereof; and

          (iii) providing such information to such Broker-Dealer as may be required in order for
such Broker-Dealer to comply with the requirements of such Rules.

          (iv) The Issuers and the Guarantors shall use their reasonable best efforts to take all
other steps necessary to effect the registration of the Securities or the New Securities, as
the case may be, covered by a Registration Statement.

          6. Registration Expenses. The Issuers and the Guarantors bear all expenses incurred in
connection with the performance of their obligations under Sections 2, 3 and 5 hereof and, in the
event of any Shelf Registration Statement, will reimburse the Holders for the reasonable fees and
disbursements of one firm or counsel designated by the Majority Holders to act as counsel for the
Holders in connection therewith, and, in the case of any Exchange Offer

13

 

Registration Statement,
will reimburse the Initial Purchasers for the reasonable fees and disbursements of counsel acting
in connection therewith.

          7. Indemnification and Contribution. (a) The Issuers and each Guarantor agree to
indemnify and hold harmless each Holder of Securities or New Securities, as the case may be,
covered by any Registration Statement (including each Initial Purchaser and, with respect to any
Prospectus delivery as contemplated in Section 5(h) hereof, each Exchanging Dealer), the directors,
officers, employees and agents of each such Holder and each Person who controls any such Holder
within the meaning of either the Act or the Exchange Act against any and all losses, claims,
damages or liabilities, joint or several, to which they or any of them may become subject under the
Act, the Exchange Act or other Federal or state statutory law or regulation, at common law or
otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof)
arise out of or are based upon any untrue statement or alleged untrue statement of a material fact
contained in the Registration Statement as originally filed or in any amendment thereof, or in any
preliminary Prospectus or the Prospectus, or in any amendment thereof or supplement thereto, or
arise out of or are based upon the omission or alleged omission to state therein a material fact
required to be stated therein or necessary to make the statements therein not misleading, and agree
to reimburse each such indemnified party, as incurred, for any legal or other expenses reasonably
incurred by them in connection with investigating or defending any such loss, claim, damage,
liability or action; provided, however, that (i) the Issuers and the Guarantors
will not be liable in any case to the extent that any such loss, claim, damage or liability arises
out of or is based upon any such untrue statement or alleged untrue statement or omission or
alleged omission made therein in reliance upon and in conformity with written information furnished
to the Issuers or the Guarantors by or on behalf of any such Holder specifically for inclusion
therein. This indemnity agreement will be in addition to any liability which the Issuers or the
Guarantors may otherwise have.

          The Issuers and each Guarantor also agree to indemnify or contribute as provided in Section
7(d) to Losses of any underwriter of Securities or New Securities, as the case may be, registered
under a Shelf Registration Statement, their directors, officers, employees or agents and each
Person who controls such underwriter on substantially the same basis as that of the indemnification
of the Initial Purchasers and the selling Holders provided in this Section 7(a). The Issuers and
each Guarantor shall, if requested by any Holder, enter into an underwriting agreement reflecting
such agreement, as provided in Section 5(p) hereof.

          (b) Each Holder of securities covered by a Registration Statement (including each Initial
Purchaser and, with respect to any Prospectus delivery as contemplated in Section 5(h) hereof, each
Exchanging Dealer) severally and not jointly agrees to indemnify and hold harmless the Issuers, the
Guarantors, the directors of the Issuers and the Guarantors, the officers of the Issuers and the
Guarantors who sign such Registration Statement and each Person who controls the Issuers or the
Guarantors within the meaning of either the Act or the Exchange Act, to the same extent as the
foregoing indemnity from the Issuers and the Guarantors to each such Holder, but only with
reference to written information relating to such Holder furnished to the Issuers and the
Guarantors by or on behalf of such Holder specifically for inclusion in the documents referred to
in the foregoing indemnity. This indemnity agreement will be in addition to any liability which
any such Holder may otherwise have.

14

 

     (c) Promptly after receipt by an indemnified party under this Section 7 or notice of the
commencement of any action, such indemnified party will, if a claim in respect thereof is to be
made against the indemnifying party under this Section, notify the indemnifying party in writing of
the commencement thereof; but the failure so to notify the indemnifying party (i) will not relieve
it from liability under paragraph (a) or (b) above unless and to the extent it did not otherwise
learn of such action and such failure results in the forfeiture by the indemnifying party of
substantial rights and defenses; and (ii) will not, in any event, relieve the indemnifying party
from any obligations to any indemnified party other than the indemnification obligation provided in
paragraph (a) or (b) above. The indemnifying party shall be entitled to appoint counsel of the
indemnifying party’s choice at the indemnifying party’s expense to represent the indemnified party
in any action for which indemnification is sought (in which case the indemnifying party shall not
thereafter be responsible for the fees and expenses of any separate counsel retained by the
indemnified party or parties except as set forth below); provided, however, that such counsel shall
be satisfactory to the indemnified party. Notwithstanding the indemnifying party’s election to
appoint counsel to represent the indemnified party in an action, the indemnified party shall have
the right to employ separate counsel (including local counsel), and the indemnifying party shall
bear the reasonable fees, costs and expenses of such separate counsel if (i) the use of counsel
chosen by the indemnifying party to represent the indemnified party would present such counsel with
a conflict of interest; (ii) the actual or potential defendants in, or targets of, any such action
include both the indemnified party and the indemnifying party and the indemnified party shall have
reasonably concluded that there may be legal defenses available to it and/or other indemnified
parties which are different from or additional to those available to the indemnifying party; (iii)
the indemnifying party shall not have employed counsel satisfactory to the indemnified party to
represent the indemnified party within a reasonable time after notice of the institution of such
action; or (iv) the indemnifying party shall authorize the indemnified party to employ separate
counsel at the expense of the indemnifying party. An indemnifying party will not, without the
prior written consent of the indemnified parties, settle or compromise or consent to the entry of
any judgment with respect to any pending or threatened claim, action, suit or proceeding in respect
of which indemnification or contribution may be sought hereunder (whether or not the indemnified
parties are actual or potential parties to such claim or action) unless such settlement, compromise
or consent includes an unconditional release of each indemnified party from all liability arising
out of such claim, action, suit or proceeding.

     (d) In the event that the indemnity provided in paragraph (a) or (b) of this Section 7 is
unavailable to or insufficient to hold harmless an indemnified party for any reason,
then each applicable indemnifying party shall have a joint and several obligation to
contribute to the aggregate losses, claims, damages and liabilities (including legal or other
expenses reasonably incurred in connection with investigating or defending same) (collectively
“Losses”) to which such indemnified party may be subject in such proportion as is appropriate to
reflect the relative benefits received by such indemnifying party, on the one hand, and such
indemnified party, on the other hand, from the Initial Placement and the Registration Statement
which resulted in such Losses; provided, however, that in no case shall any Initial
Purchaser or any subsequent Holder of any Security or New Security be responsible, in the
aggregate, for any amount in excess of the purchase discount or
commission applicable to such
Security, or in the case of a New Security, applicable to the Security that was exchangeable into
such New Security, as set forth on the cover page of the Final Offering Memorandum, nor shall any
underwriter be responsible for any amount in excess of the underwriting discount or commission

15

 

applicable to the securities purchased by such underwriter under the Registration Statement which
resulted in such Losses. If the allocation provided by the immediately preceding sentence is
unavailable for any reason, the indemnifying party and the indemnified party shall contribute in
such proportion as is appropriate to reflect not only such relative benefits but also the relative
fault of such indemnifying party, on the one hand, and such indemnified party, on the other hand,
in connection with the statements or omissions which resulted in such Losses as well as any other
relevant equitable considerations. Benefits received by the Issuers or the Guarantors shall be
deemed to be equal to the sum of (x) the total net proceeds from the Initial Placement (before
deducting expenses) as set forth on the cover page of the Final Offering Memorandum and (y) the
total amount of additional interest which the Issuers and the Guarantors were not required to pay
as a result of registering the securities covered by the Registration Statement which resulted in
such Losses. Benefits received by the Initial Purchasers shall be deemed to be equal to the total
purchase discounts and commissions as set forth on the cover page of the Final Offering Memorandum,
and benefits received by any other Holders shall be deemed to be equal to the value of receiving
Securities or New Securities, as applicable, registered under the Act. Benefits received by any
underwriter shall be deemed to be equal to the total underwriting discounts and commissions, as set
forth on the cover page of the Prospectus forming a part of the Registration Statement which
resulted in such Losses. Relative fault shall be determined by reference to, among other things,
whether any alleged untrue statement or omission relates to information provided by the
indemnifying party, on the one hand, or by the indemnified party, on the other hand, the intent of
the parties and their relative knowledge, access to information and opportunity to correct or
prevent such untrue statement or omission. The parties agree that it would not be just and
equitable if contribution were determined by pro rata allocation (even if the Holders were treated
as one entity for such purpose) or any other method of allocation which does not take account of
the equitable considerations referred to above. Notwithstanding the provisions of this paragraph
(d), no Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the
Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent
misrepresentation. For purposes of this Section 7, each Person who controls a Holder within the
meaning of either the Act or the Exchange Act and each director, officer, employee and agent of
such Holder shall have the same rights to contribution as such Holder, and each Person who controls
the Issuers and the Guarantors within the meaning of either the Act or the Exchange Act, each
officer of the Issuers and the Guarantors who shall have signed the Registration Statement and each
director of the Issuers and the Guarantors shall have
the same rights to contribution as the Issuers and the Guarantors, subject in each case to the
applicable terms and conditions of this paragraph (d).

     (e) The provisions of this Section 7 will remain in full force and effect, regardless of any
investigation made by or on behalf of any Holder or the Issuers and the Guarantors or any of the
officers, directors or controlling Persons referred to in this Section hereof, and will survive the
sale by a Holder of securities covered by a Registration Statement.

16

 

          8. Underwritten Registrations. (a) If any of the Securities or New Securities, as the
case may be, covered by any Shelf Registration Statement are to be sold in an underwritten
offering, the Managing Underwriters shall be selected by the Majority Holders and shall be
reasonably satisfactory to the Partnership.

          (b) No Person may participate in any underwritten offering pursuant to any Shelf Registration
Statement, unless such Person (i) agrees to sell such Person’s Securities or New Securities, as the
case may be, on the basis reasonably provided in any underwriting arrangements approved by the
Persons entitled hereunder to approve such arrangements; and (ii) completes and executes all
questionnaires, powers of attorney, indemnities, underwriting agreements and other documents
reasonably required under the terms of such underwriting arrangements.

          9. No Inconsistent Agreements. The Issuers and the Guarantors have not, as of the date
hereof, entered into, nor shall they, on or after the date hereof, enter into, any agreement with
respect to their securities that is inconsistent with the rights granted to the Holders herein or
otherwise conflicts with the provisions hereof.

          10. Amendments and Waivers. The provisions of this Agreement, including the provisions of
this sentence, may not be amended, qualified, modified or supplemented, and waivers or consents to
departures from the provisions hereof may not be given, unless the Issuers and the Guarantors have
obtained the written consent of the Majority Holders (or, after the consummation of any Registered
Exchange Offer in accordance with Section 2 hereof, of New Securities); provided that, with
respect to any matter that directly or indirectly affects the rights of any Initial Purchaser
hereunder, the Issuers and the Guarantors shall obtain the written consent of each such Initial
Purchaser against which such amendment, qualification, supplement, waiver or consent is to be
effective. Notwithstanding the foregoing (except the foregoing proviso), a waiver or consent to
departure from the provisions hereof with respect to a matter that relates exclusively to the
rights of Holders whose Securities or New Securities, as the case may be, are being sold pursuant
to a Registration Statement and that does not directly or indirectly affect the rights of other
Holders may be given by the Majority Holders, determined on the basis of Securities or New
Securities, as the case may be, being sold rather than registered under such Registration
Statement.

          11. Notices. All notices and other communications provided for or permitted hereunder shall be made in
writing by hand-delivery, first-class mail, telex, telecopier or air courier guaranteeing overnight
delivery:

          (a) if to a Holder, at the most current address given by such Holder to the Issuers in
accordance with the provisions of this Section, which address initially is, with respect to each
Holder, the address of such Holder maintained by the Registrar under the Indenture, with a copy in
like manner to Citigroup Global Markets Inc.;

          (b) if to you, initially at the respective addresses set forth in the Purchase Agreement;

17

 

          (c) if to the Issuers, initially at the address set forth in the Purchase Agreement; and

          (d) if to the Guarantors, initially at 333 Clay Street, Suite 1600, Houston, Texas 77002.

          All such notices and communications shall be deemed to have been duly given when received.

          The Initial Purchasers, the Issuers or the Guarantors by notice to the other parties may
designate additional or different addresses for subsequent notices or communications.

          12. Successors and Assigns. This Agreement shall inure to the benefit of and be binding
upon the successors and assigns of each of the parties, including, without the need for an express
assignment or any consent by the Issuers or the Guarantors thereto, subsequent Holders of
Securities and the New Securities. The Issuers and the Guarantors hereby agree to extend the
benefits of this Agreement to any Holder of Securities and the New Securities, and any such Holder
may specifically enforce the provisions of this Agreement as if an original party hereto.

          13. Counterparts. This agreement may be in signed counterparts, each of which shall
constitute an original and all of which together shall constitute one and the same agreement.

          14. Purchases and Sales of Securities. The Issuers and the Guarantors shall not, and
shall use their best efforts to cause their affiliates (as defined in Rule 405 under the Act) not
to, purchase and then resell or otherwise transfer any Securities for two (2) years, or if a Shelf
Registration Statement shall become effective during such two (2) year period, for the period of
such effectiveness.

          15. Third Party Beneficiaries. Each Holder shall be a third party beneficiary to the
agreements made hereunder between the Issuers and the Guarantors, on the one hand, and the Initial
Purchasers, on the other hand, and shall have the right to enforce such agreements
directly to the extent it deems such enforcement necessary or advisable to protect its rights
or the rights of other Holders hereunder.

          16. Headings. The headings used herein are for convenience only and shall not affect the
construction hereof.

          17. Applicable Law. This Agreement shall be governed by and construed in accordance with
the laws of the State of New York applicable to contracts made and to be performed in the State of
New York.

          18. Severability. In the event that any one of more of the provisions contained herein, or
the application thereof in any circumstances, is held invalid, illegal or unenforceable in any
respect for any reason, the validity, legality and enforceability of any such provision in every
other respect and of the remaining provisions hereof shall not be in any way impaired or affected

18

 

thereby, it being intended that all of the rights and privileges of the parties shall be
enforceable to the fullest extent permitted by law.

          19. Securities Held by the Issuers, the Guarantors, etc. Whenever the consent or approval
of Holders of a specified percentage of principal amount of Securities or New Securities is
required hereunder, Securities or New Securities, as applicable, held by the Issuers, the
Guarantors or their Affiliates (other than subsequent Holders of Securities or New Securities if
such subsequent Holders are deemed to be Affiliates solely by reason of their holdings of such
Securities or New Securities) shall not be counted in determining whether such consent or approval
was given by the Holders of such required percentage.

19

 

          If the foregoing is in accordance with your understanding of our agreement, please sign and
return to us the enclosed duplicate hereof, whereupon this letter and your acceptance shall
represent a building agreement among the Issuers, the Guarantors and the several Initial
Purchasers.

	 	 	 	 	 	 	 
	 	 	Very truly yours,	 	 
	 
	 	 	 	 	 	 
	 	 	PLAINS ALL AMERICAN PIPELINE, L.P.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	PLAINS AAP, L.P.	 	 
	 

	 	 	 	its General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	PLAINS ALL AMERICAN GP LLC	 	 
	 

	 	 	 	its General Partner
	 	 

	 	 	 	 	 
	 	 	 
	 	By:  	
/s/ Phil Kramer	 
	 	 	Name:  	Phil Kramer 	 
	 	 	Title:  	Executive Vice President and Chief

Financial Officer 	 
	 

	 	 	 	 	 	 	 
	 	 	PAA FINANCE CORP.	 	 

	 	 	 	 	 
	 	 	 
	 	By:  	
/s/ Phil Kramer	 
	 	 	Name:  	Phil Kramer 	 
	 	 	Title:  	Executive Vice President and Chief

Financial Officer 	 
	 

	 	 	 	 	 	 	 
	 	 	PLAINS MARKETING, L.P.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	PLAINS MARKETING GP INC.	 	 
	 

	 	 	 	its General Partner
	 	 

	 	 	 	 	 
	 	 	 
	 	By:  	
/s/ Phil Kramer	 
	 	 	Name:  	Phil Kramer 	 
	 	 	Title:  	Executive Vice President and Chief

Financial Officer 	 
	 

20

 

	 	 	 	 	 	 	 
	 	 	PLAINS PIPELINE, L.P.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	 PLAINS MARKETING GP INC.	 	 
	 

	 	 	 	its General Partner
	 	 

	 	 	 	 	 
	 	 	 
	 	By:  	
/s/ Phil Kramer	 
	 	 	Name:  	Phil Kramer 	 
	 	 	Title:  	Executive Vice President and Chief

Financial Officer 	 
	 

	 	 	 	 	 	 	 
	 	 	PLAINS MARKETING GP INC.	 	 

	 	 	 	 	 
	 	 	 
	 	By:  	
/s/ Phil Kramer	 
	 	 	Name:  	Phil Kramer 	 
	 	 	Title:  	Executive Vice President and Chief

Financial Officer 	 
	 

	 	 	 	 	 	 	 
	 	 	PLAINS MARKETING CANADA LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	PLAINS MARKETING, L.P.	 	 
	 

	 	 	 	its Sole Member	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	PLAINS MARKETING GP INC.	 	 
	 

	 	 	 	its General Partner	 	 

	 	 	 	 	 
	 	 	 
	 	By:  	
/s/ Phil Kramer	 
	 	 	Name:  	Phil Kramer 	 
	 	 	Title:  	Executive Vice President and Chief

Financial Officer 	 
	 

	 	 	 	 	 	 	 
	 	 	PMC (NOVA SCOTIA) COMPANY	 	 

	 	 	 	 	 
	 	 	 
	 	By:  	
/s/ Phil Kramer	 
	 	 	Name:  	Phil Kramer 	 
	 	 	Title:  	Executive Vice President 	 

21

 

	 	 	 	 	 

	 	 	 	 	 	 	 
	 	 	PLAINS MARKETING CANADA, L.P.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	PMC (NOVA SCOTIA) COMPANY	 	 
	 

	 	 	 	its General Partner
	 	 

	 	 	 	 	 
	 	 	 
	 	By:  	
/s/ Phil Kramer	 
	 	 	Name:  	Phil Kramer 	 
	 	 	Title:  	Executive Vice President 	 
	 

	 	 	 	 	 	 	 
	 	 	BASIN HOLDINGS GP LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	PLAINS PIPELINE, L.P.	 	 
	 

	 	 	 	its Sole Member	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	PLAINS MARKETING GP INC.	 	 
	 

	 	 	 	its General Partner
	 	 

	 	 	 	 	 
	 	 	 
	 	By:  	
/s/ Phil Kramer	 
	 	 	Name:  	Phil Kramer 	 
	 	 	Title:  	Executive Vice President and Chief

Financial Officer 	 
	 

	 	 	 	 	 	 	 
	 	 	BASIN PIPELINE HOLDINGS, L.P.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	BASIN HOLDINGS GP LLC	 	 
	 

	 	 	 	its General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	PLAINS PIPELINE, L.P.	 	 
	 

	 	 	 	its Sole Member	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	PLAINS MARKETING GP INC.	 	 
	 

	 	 	 	its General Partner
	 	 

	 	 	 	 	 
	 	 	 
	 	By:  	
/s/ Phil Kramer	 
	 	 	Name:  	Phil Kramer 	 
	 	 	Title:  	Executive Vice President and Chief

Financial Officer 	 
	 

22

 

	 	 	 	 	 	 	 
	 	 	RANCHO HOLDINGS GP LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	PLAINS PIPELINE, L.P.	 	 
	 

	 	 	 	its Sole Member	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	PLAINS MARKETING GP INC.	 	 
	 

	 	 	 	its General Partner
	 	 

	 	 	 	 	 
	 	 	 
	 	By:  	
/s/ Phil Kramer	 
	 	 	Name:  	Phil Kramer 	 
	 	 	Title:  	Executive Vice President and Chief

Financial Officer 	 
	 

	 	 	 	 	 	 	 
	 	 	RANCHO PIPELINE HOLDINGS, L.P.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	RANCHO HOLDINGS GP LLC	 	 
	 

	 	 	 	its General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	PLAINS PIPELINE, L.P.	 	 
	 

	 	 	 	its Sole Member	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	PLAINS MARKETING GP INC.	 	 
	 

	 	 	 	its General Partner
	 	 

	 	 	 	 	 
	 	 	 
	 	By:  	
/s/ Phil Kramer	 
	 	 	Name:  	Phil Kramer 	 
	 	 	Title:  	Executive Vice President and Chief

Financial Officer 	 
	 

	 	 	 	 	 	 	 
	 	 	PLAINS LPG SERVICES GP LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Plains Marketing, L.P., its Sole Member	 	 
	 
	 

	 	By:
	 	Plains Marketing GP Inc., its General Partner
	 	 

	 	 	 	 	 
	 	 	 
	 	By:  	
/s/ Phil Kramer	 
	 	 	Phil Kramer 	 
	 	 	Executive Vice President and Chief

Financial Officer 	 

23

 

	 	 	 	 	 

	 	 	 	 	 	 	 
	 	 	PLAINS LPG SERVICES, L.P.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Plains LPG Services GP LLC, its General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Plains Marketing, L.P., its Sole Member	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Plains Marketing GP Inc., its General Partner
	 	 

	 	 	 	 	 
	 	 	 
	 	By:  	
/s/ Phil Kramer	 
	 	 	Phil Kramer 	 
	 	 	Executive Vice President and Chief

Financial Officer 	 
	 

	 	 	 	 	 	 	 
	 	 	LONE STAR TRUCKING, LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Plains LPG Services, L.P., its Sole Member	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Plains LPG Services GP LLC, its General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Plains Marketing, L.P., its Sole Member	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Plains Marketing GP Inc., its General Partner
	 	 

	 	 	 	 	 
	 	 	 
	 	By:  	
/s/ Phil Kramer	 
	 	 	Phil Kramer 	 
	 	 	Executive Vice President and

Chief Financial Officer 	 
	 

24

 

	 	 	 	 	 	 	 
	 	 	PLAINS MARKETING INTERNATIONAL GP LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	PLAINS MARKETING, L.P.	 	 
	 

	 	 	 	its Sole Member	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	PLAINS MARKETING GP INC.	 	 
	 

	 	 	 	its General Partner
	 	 

	 	 	 	 	 
	 	 	 
	 	By:  	
/s/ Phil Kramer	 
	 	 	Name:  	Phil Kramer 	 
	 	 	Title:  	Executive Vice President and Chief

Financial Officer 	 
	 

	 	 	 	 	 	 	 
	 	 	PLAINS MARKETING INTERNATIONAL, L.P.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	PLAINS MARKETING INTERNATIONAL GP LLC	 	 
	 

	 	 	 	its General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	PLAINS MARKETING, L.P.	 	 
	 

	 	 	 	its Sole Member	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	PLAINS MARKETING GP INC.	 	 
	 

	 	 	 	its General Partner
	 	 

	 	 	 	 	 
	 	 	 
	 	By:  	
/s/ Phil Kramer	 
	 	 	Name:  	Phil Kramer 	 
	 	 	Title:  	Executive Vice President and Chief

Financial Officer 	 

25

 

	 	 	 	 	 

	 	 	 	 	 	 	 
	 	 	PLAINS LPG MARKETING, L.P.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	PLAINS LPG SERVICES GP LLC	 	 
	 

	 	 	 	its General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	PLAINS MARKETING, L.P.	 	 
	 

	 	 	 	its Sole Member	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	PLAINS MARKETING GP INC.	 	 
	 

	 	 	 	its General Partner
	 	 

	 	 	 	 	 
	 	 	 
	 	By:  	
/s/ Phil Kramer	 
	 	 	Name:  	Phil Kramer 	 
	 	 	Title:  	Executive Vice President and Chief

Financial Officer 	 
	 

26

 

The foregoing Agreement is hereby

confirmed and accepted as of the

date first above written.

CITIGROUP GLOBAL MARKETS INC.

UBS SECURITIES LLC

BANC OF AMERICA SECURITIES LLC

J.P. MORGAN SECURITIES INC.

WACHOVIA CAPITAL MARKETS, LLC

BNP PARIBAS SECURITIES CORP.

SUNTRUST CAPITAL MARKETS, INC.

COMERICA SECURITIES, INC.

COMMERZBANK CAPITAL MARKETS CORP.

DNB NOR MARKETS, INC.

FORTIS SECURITIES LLC

HSBC SECURITIES (USA) INC.

ING FINANCIAL MARKETS LLC

MITSUBISHI UFJ SECURITIES INTERNATIONAL PLC

PIPER JAFFRAY & CO.

RBC CAPITAL MARKETS CORPORATION

SCOTIA CAPITAL (USA) INC.

DAIWA SECURITIES AMERICA INC.

SG AMERICAS SECURITIES, LLC

WEDBUSH MORGAN SECURITIES INC.

WELLS FARGO SECURITIES, LLC

	 	 	 	 	 
	By:

	 	CITIGROUP GLOBAL MARKETS INC.	 	 
	 
	 	 	 	 
	By:
	 	/s/ Brian D. Bednarski 	 	 
	 

	 	
 	 	 
	 

	 	Name: Brian D. Bednarski	 
	 

	 	Title: Director
	 	 

27

 

SCHEDULE 1

Plains Marketing, L.P.

Plains Pipeline, L.P.

Plains Marketing GP Inc.

Plains Marketing Canada LLC

PMC (Nova Scotia) Company

Plains Marketing Canada, L.P.

Basin Holdings GP LLC

Basin Pipeline Holdings, L.P.

Rancho Holdings GP LLC

Rancho Pipeline Holdings, L.P.

Plains LPG Services GP LLC

Plains LPG Services, L.P.

Lone Star Trucking, LLC

Plains Marketing International GP LLC

Plains Marketing International, L.P.

Plains LPG Marketing, L.P.

28

 

SCHEDULE 2

Citigroup Global Markets Inc.

UBS Securities LLC

Banc of America Securities LLC

J.P. Morgan Securities Inc.

Wachovia Capital Markets, LLC

BNP Paribas Securities Corp.

SunTrust Capital Markets, Inc.

Comerica Securities, Inc.

Commerzbank Capital Markets Corp.

DnB NOR Markets, Inc.

Fortis Securities LLC

HSBC Securities (USA) Inc.

ING Financial Markets LLC

Mitsubishi UFJ Securities International plc

Piper Jaffray & Co.

RBC Capital Markets Corporation

Scotia Capital (USA) Inc.

Daiwa Securities America Inc.

SG Americas Securities, LLC

Wedbush Morgan Securities Inc.

Wells Fargo Securities, LLC

29

 

ANNEX A

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

 

 

ANNEX B

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

2

 

ANNEX C

PLAN OF DISTRIBUTION

          Each Broker-Dealer that receives New Securities for its own account pursuant to the Exchange
Offer must acknowledge that it will deliver a prospectus in connection with any resale of such New
Securities. This Prospectus, as it may be amended or supplemented from time to time, may be used
by a Broker-Dealer in connection with resales of New Securities received in exchange for Securities
where such Securities were acquired as a result of market-making activities or other trading
activities. The Issuers and the Guarantors have agreed that, starting on the Expiration Date and
ending on the close of business one year after the Expiration Date, they will make this Prospectus,
as amended or supplemented, available to any Broker-Dealer for use in connection with any such
resale. In addition, until                     , 200___[90 days] after commencement of the offering, all
dealers effecting transactions in the New Securities may be required to deliver a prospectus.

          The Issuers and the Guarantors will not receive any proceeds from any sale of New Securities
by Brokers-Dealers. New Securities received by Broker-Dealers for their own account pursuant to
the Exchange Offer may be sold from time to time in one or more transactions in the
over-the-counter market, in negotiated transactions, through the writing of options on the New
Securities or a combination of such methods of resale, at market prices prevailing at the time of
resale, at prices related to such prevailing market prices or negotiated prices. Any such resale
may be made directly to purchasers or to or through brokers or dealers who may receive compensation
in the form of commissions or concessions from any such Broker-Dealer and/or the purchasers of any
such New Securities. Any Broker-Dealer that resells New Securities that were received by it for
its own account pursuant to the Exchange Offer and any broker or dealer that participates in a
distribution of such New Securities may be deemed to be an “underwriter” within the meaning of the
Act and any profit of any such resale of New Securities and any commissions or concessions received
by any such Persons may be deemed to be underwriting compensation under the Act. The Letter of
Transmittal states that by acknowledging that it will deliver and by delivering a prospectus, a
Broker-Dealer will not be deemed to admit that it is an “underwriter” within the meaning of the
Act.

          For a period of one year after the Expiration Date, the Issuers and the Guarantors will
promptly send additional copies of this Prospectus and any amendment or supplement to this
Prospectus to any Broker-Dealer that requests such documents in the Letter of Transmittal. The
Issuers and the Guarantors have agreed to pay all expenses incident to the Exchange Offer
(including the reasonable expenses of one counsel for the holders of the Securities) other than
commissions or concessions of any brokers or dealers and will indemnify the holders of the
Securities (including any Broker-Dealers) against certain liabilities, including liabilities under
the Act.

          If applicable, add information required by Regulation S-K Items 507 and/or 508.

3

 

ANNEX D

Rider A

	 	 	 	 	 	 	 
	 	 	CHECK HERE IF YOU ARE A BROKER-DEALER AND WISH TO RECEIVE 10 ADDITIONAL COPIES OF
THE PROSPECTUS AND 10 COPIES OF ANY AMENDMENTS OR SUPPLEMENTS THERETO.
	 
	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Address:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 

	 	 

Rider B

If the undersigned is not a Broker-Dealer, the undersigned represents that it acquired the New
Securities in the ordinary course of its business, it is not engaged in, and does not intend to
engage in, a distribution of New Securities and it has no arrangements or understandings with any
Person to participate in a distribution of the New Securities. If the undersigned is a
Broker-Dealer that will receive New Securities for its own account in exchange for Securities, it
represents that the Securities to be exchange for New Securities were acquired by it as a result of
market-making activities or other trading activities and acknowledges that it will deliver a
prospectus in connection with any resale of such New Securities; however, by so acknowledging and
by delivering a prospectus, the undersigned will not be deemed to admit that it is an “underwriter”
within the meaning of the Act.

4exv4w4

 

Execution
Version

EXCHANGE AND REGISTRATION RIGHTS AGREEMENT

AMONG

PLAINS ALL AMERICAN PIPELINE, L.P.,

PAA FINANCE CORP.,

THE GUARANTORS

AND

THE INITIAL PURCHASERS

Dated as of October 30, 2006

 

 

PLAINS ALL AMERICAN PIPELINE, L.P.

PAA FINANCE CORP.

6.650% Senior Notes due 2037

EXCHANGE AND REGISTRATION RIGHTS AGREEMENT

October 30, 2006

Citigroup Global Markets Inc.

UBS Securities LLC

Banc of America Securities LLC

J.P. Morgan Securities Inc.

Wachovia Capital Markets, LLC

BNP Paribas Securities Corp.

SunTrust Capital Markets, Inc.

Comerica Securities, Inc.

Commerzbank Capital Markets Corp.

DnB NOR Markets, Inc.

Fortis Securities LLC

HSBC Securities (USA) Inc.

ING Financial Markets LLC

Mitsubishi UFJ Securities International plc

Piper Jaffray & Co.

RBC Capital Markets Corporation

Scotia Capital (USA) Inc.

Daiwa Securities America Inc.

SG Americas Securities, LLC

Wedbush Morgan Securities Inc.

Wells Fargo Securities, LLC

c/o Citigroup Global Markets Inc.

     388 Greenwich St., 34th Floor

     New York, New York 10013

Ladies and Gentlemen:

          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”) and the Guarantors listed on Schedule 1 hereto (the “Guarantors”), propose to issue and
sell to the initial purchasers listed on Schedule 2 hereto (the “Initial Purchasers”), upon the
terms set forth in a purchase agreement dated October 23, 2006 (the “Purchase Agreement”),
$600,000,000 principal amount of 6.650% Senior Notes due 2037 (the “Securities”) and $400,000,000
principal amount of 6.125% Senior Notes due 2017 (the “2017

 

 

          Notes”) relating to the initial
placement of the Securities and the 2017 Notes (the “Initial Placement”). To induce the Initial
Purchasers to enter into the Purchase Agreement and to satisfy a condition of your obligations
thereunder, the Issuers and the Guarantors agree with you for your benefit and the benefit of the
other holders from time to time of the Securities (including the Initial Purchasers) (each a
“Holder” and, together, the “Holders”), as follows:

          1. Definitions. Capitalized terms used herein without definition shall have their
respective meanings set forth in the Purchase Agreement. As used in this Agreement, the following
capitalized defined terms shall have the following meanings:

          “2017 Notes” shall have the meaning set forth in the preamble hereto.

          “Act” shall mean the Securities Act of 1933, as amended, and the rules and regulations of the
Commission promulgated thereunder.

          “Affiliate” of any specified Person shall mean any other Person that, directly or indirectly,
is in control of, is controlled by, or is under common control with, such specified Person. For
purposes of this definition, control of a Person shall mean the power, direct or indirect, to
direct or cause the direction of the management and policies of such Person whether by contract or
otherwise; and the terms “controlling” and “controlled” shall have meanings correlative to the
foregoing.

          “Broker-Dealer” shall mean any broker or dealer registered as such under the Exchange Act.

          “Business Day” shall mean any day other than a Saturday, a Sunday or a legal holiday or a day
on which banking institutions or trust companies are authorized or obligated by law to close in New
York City.

          “Commission” shall mean the Securities and Exchange Commission.

          “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended, and the rules and
regulations of the Commission promulgated thereunder.

          “Exchange Offer Registration Period” shall mean the one-year period following the consummation
of the Registered Exchange Offer, exclusive of any period during which any stop order shall be in
effect suspending the effectiveness of the Exchange Offer Registration Statement.

          “Exchange Offer Registration Statement” shall mean a registration statement of the Issuers and
the Guarantors on an appropriate form under the Act with respect to the Registered Exchange Offer,
all amendments and supplements to such registration statement, including post-effective amendments
thereto, in each case including the Prospectus contained therein, all exhibits thereto and all
material incorporated by reference therein.

          “Exchanging Dealer” shall mean any Holder (which may include any Initial Purchaser) that is a
Broker-Dealer and elects to exchange for New Securities any Securities that it acquired for its
own account as a result of market-making activities or other trading activities

2

 

(but not directly
from the Issuers and the Guarantors or any Affiliate of the Issuers and the Guarantors) for New
Securities.

          “Final Offering Memorandum” shall have the meaning set forth in the Purchase Agreement.

          “Guarantors” shall have the meaning set forth in the preamble hereto and shall also include
any Guarantor’s successor.

          “Holder” shall have the meaning set forth in the preamble hereto.

          “Indenture” shall mean the Indenture relating to the Securities and the New Securities, dated
as of September 25, 2002, among the Issuers and U.S. Bank National Association, as successor
trustee, as amended by the Tenth Supplemental Indenture, dated as of October 30, 2006, among the
Issuers, the Guarantors and the Trustee, as the same may be amended from time to time in accordance
with the terms thereof.

          “Initial Placement” shall have the meaning set forth in the preamble hereto.

          “Initial Purchasers” shall have the meaning set forth in the preamble hereto.

          “Losses” shall have the meaning set forth in Section 7(d) hereof.

          “Majority Holders” shall mean the Holders of a majority of the aggregate principal amount of
Securities registered under a Registration Statement.

          “Managing Underwriters” shall mean the investment banker or investment bankers and manager or
managers that shall administer an underwritten offering.

          “New Securities” shall mean debt securities of the Issuers identical in all material respects
to the Securities (except that the interest rate step-up provisions and the transfer restrictions
shall be eliminated) and to be issued under the Indenture.

          “Prospectus” shall mean the prospectus included in any Registration Statement (including,
without limitation, a prospectus that discloses information previously omitted from a prospectus
filed as part of an effective registration statement in reliance upon Rule 430A under the Act), as
amended or supplemented by any prospectus supplement, with respect to the terms of the offering of
any portion of the Securities or the New Securities covered by such Registration Statement, and all
amendments and supplements thereto and all material incorporated by reference therein.

          “Purchase Agreement” shall have the meaning set forth in the preamble hereto.

          “Registered Exchange Offer” shall mean the proposed offer of the Issuers and the Guarantors to
issue and deliver to the Holders of the Securities that are not prohibited by any law or policy of
the Commission from participating in such offer, in exchange for the Securities, a like aggregate
principal amount of the New Securities.

3

 

          “Registration Default” shall have the meaning set forth in Section 4(a) hereof.

          “Registration Statement” shall mean any Exchange Offer Registration Statement or Shelf
Registration Statement that covers any of the Securities or the New Securities pursuant to the
provisions of this Agreement, any amendments and supplements to such registration statement,
including post-effective amendments (in each case including the Prospectus contained therein), all
exhibits thereto and all material incorporated by reference therein.

          “Securities” shall have the meaning set forth in the preamble hereto.

          “Shelf Registration” shall mean a registration effected pursuant to Section 3 hereof.

          “Shelf Registration Period” has the meaning set forth in Section 3(b) hereof.

          “Shelf Registration Statement” shall mean a “shelf” registration statement of the Issuers and
the Guarantors pursuant to the provisions of Section 3 hereof which covers some or all of the
Securities or New Securities, as applicable, on an appropriate form under Rule 415 under the Act,
or any similar rule that may be adopted by the Commission, amendments and supplements to such
registration statement, including post-effective amendments, in each case including the Prospectus
contained therein, all exhibits thereto and all material incorporated by reference therein.

          “Trustee” shall mean the trustee with respect to the Securities and the New Securities under
the Indenture.

          “Trust Indenture Act” shall mean the Trust Indenture Act of 1939, as amended from time to
time.

          “underwriter” shall mean any underwriter of Securities in connection with an offering thereof
under a Shelf Registration Statement.

          2. Registered Exchange Offer. (a) Except as set forth in Section 3, the Issuers and the
Guarantors shall prepare and shall use their reasonable best efforts to file with the Commission
the Exchange Offer Registration Statement with respect to the Registered Exchange Offer, not later
than 180 days following the date of the original issuance of the Securities (or if such 180th day
is not a Business Day, the next succeeding Business Day). The Issuers and the Guarantors shall use
their reasonable best efforts to cause the Exchange Offer Registration Statement to become
effective under the Act within 270 days of the date of the original issuance of the Securities and
to consummate the Registered Exchange Offer within 300 days of the date of the original issuance of
the Securities (if such 270th or 300th day is not a Business Day, the next succeeding Business
Day, as applicable).

          (a) Upon the effectiveness of the Exchange Offer Registration Statement, the Issuers and the
Guarantors shall promptly commence the Registered Exchange Offer, it being the objective of such
Registered Exchange Offer to enable each Holder electing to exchange Securities for New Securities
(assuming that such Holder is not an Affiliate of the Issuers or the Guarantors, acquires the New
Securities in the ordinary course of such Holder’s business, has no

4

 

arrangements with any Person to
participate in the distribution of the New Securities and is not prohibited by any law or policy of
the Commission from participating in the Registered Exchange Offer) to trade such New Securities
from and after their receipt without any limitations or restrictions under the Act and without
material restrictions under the securities laws of a substantial proportion of the several states
of the United States.

          (b) In connection with the Registered Exchange Offer, the Issuers and the Guarantors shall:

          (i) mail to each Holder a copy of the Prospectus forming part of the Exchange Offer
Registration Statement, together with an appropriate letter of transmittal and related
documents;

          (ii) keep the Registered Exchange Offer open for not less than 20 Business Days after
the date the notice thereof is mailed to the Holders (or, in each case, longer if required
by applicable law);

          (iii) use their reasonable best efforts to keep the Exchange Offer Registration
Statement continuously effective under the Act, supplemented and amended as required under
the Act to ensure that it is available for sales of New Securities by Exchanging Dealers
during the Exchange Offer Registration Period;

          (iv) utilize the services of a bank depositary for the Registered Exchange Offer with
an address in the Borough of Manhattan in New York City, which may be the Trustee or an
Affiliate of the Trustee;

          (v) permit Holders to withdraw tendered Securities at any time prior to the close of
business, New York time, on the last Business Day on which the Registered Exchange Offer is
open;

          (vi) prior to effectiveness of the Exchange Offer Registration Statement, provide a
supplemental letter to the Commission (A) stating that the Issuers and the Guarantors are
conducting the Registered Exchange Offer in reliance on the position of the Commission in
Exxon Capital Holdings Corporation (pub. avail. May 13, 1988) and Morgan Stanley
and Co., Inc. (pub. avail. June 5, 1991) and (B) including a representation that the
Issuers and the Guarantors have not entered into any arrangement or understanding with any
Person to distribute the New Securities to be received in the Registered Exchange Offer and
that, to the best of the Issuers’ and the Guarantors’ information and belief, each Holder
participating in the Registered Exchange Offer is acquiring the New Securities in the
ordinary course of business and has no arrangement or understanding with any Person to
participate in the distribution of the New Securities; and

          (vii) comply in all material respects with all applicable laws.

          (c) As soon as practicable after the close of the Registered Exchange Offer, the Issuers and
the Guarantors shall:

5

 

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

          (ii) issue and cause the Trustee promptly to authenticate a global certificate
representing New Securities exchanged for Securities and to deliver to each Holder of
Securities a principal amount of New Securities equal to the principal amount of the
Securities of such Holder so accepted for exchange.

          (d) Each Holder hereby acknowledges and agrees that any Broker-Dealer and any such Holder
using the Registered Exchange Offer to participate in a distribution of the New Securities (x)
could not under Commission policy as in effect on the date of this Agreement rely on the position
of the Commission in Morgan Stanley and Co., Inc. (pub. avail. June 5, 1991) and Exxon
Capital Holdings Corporation (pub. avail. May 13, 1988), as interpreted in the Commission’s
letter to Shearman & Sterling dated July 2, 1993 and similar no-action letters; and (y) must comply
with the registration and prospectus delivery requirements of the Act in connection with any
secondary resale transaction and must be covered by an effective registration statement containing
the selling security holder information required by Item 507 or 508, as applicable, of Regulation
S-K under the Act if the resales are of New Securities obtained by such Holder in exchange for
Securities acquired by such Holder directly from the Issuers or the Guarantors or one of their
Affiliates. Accordingly, each Holder participating in the Registered Exchange Offer shall be
required to represent to the Issuers and the Guarantors that, at the time of the consummation of
the Registered Exchange Offer:

          (i) any New Securities received by such Holder will be acquired in the ordinary course
of business;

          (ii) such Holder will have no arrangement or understanding with any Person to
participate in the distribution of the Securities or the New Securities within the meaning
of the Act; and

          (iii) such Holder is not an Affiliate of the Issuers or the Guarantors.

          3. Shelf Registration. (a) If (i) due to any change in law or applicable interpretations
thereof by the Commission’s staff, the Issuers and the Guarantors determine upon advice of their
outside counsel that they are not permitted to effect the Registered Exchange Offer as contemplated
by Section 2 hereof; (ii) for any other reason the Registered Exchange Offer is not consummated
within 300 days of the date hereof; (iii) any Initial Purchaser so requests with respect to
Securities that are not eligible to be exchanged for New Securities in the Registered Exchange
Offer and that are held by it following consummation of the Registered Exchange Offer, or (iv) any
Holder (other than an Initial Purchaser) is not eligible to participate in the Registered Exchange
Offer, the Issuers and the Guarantors shall effect a Shelf Registration Statement in accordance
with subsection (b) below.

          (b) (i) The Issuers and the Guarantors shall as promptly as practicable (but in no event more
than 180 days after so required or requested pursuant to this Section 3), file with the Commission
and thereafter shall use their reasonable best efforts to cause to be declared effective under the
Act, within 270 days after so required or requested pursuant to this Section 3,

6

 

a Shelf
Registration Statement relating to the offer and sale of the Securities or the New Securities, as
applicable, by the Holders thereof from time to time in accordance with the methods of distribution
elected by such Holders and set forth in such Shelf Registration Statement; provided,
however, that no Holder (other than an Initial Purchaser) shall be entitled to have the
Securities held by it covered by such Shelf Registration Statement unless such Holder agrees in
writing to be bound by all of the provisions of this Agreement applicable to such Holder; and
provided further, that with respect to New Securities received by an Initial
Purchaser in exchange for Securities constituting any portion of an unsold allotment, the Issuers
and the Guarantors may, if permitted by current interpretations by the Commission’s staff, file a
post-effective amendment to the Exchange Offer Registration Statement containing the information
required by Item 507 or 508 of Regulation S-K, as applicable, in satisfaction of their obligations
under this subsection with respect thereto, and any such Exchange Offer Registration Statement, as
so amended, shall be referred to herein as, and governed by the provisions herein applicable to, a
Shelf Registration Statement.

          (ii) The Issuers and the Guarantors shall use their reasonable best efforts to keep the
Shelf Registration Statement continuously effective, supplemented and amended as required by
the Act, in order to permit the Prospectus forming part thereof to be usable by Holders for
a period of two years from the date the Shelf Registration Statement is declared effective
by the Commission or such shorter period that will terminate when all the Securities or New
Securities, as applicable, covered by the Shelf Registration Statement have been sold
pursuant to the Shelf Registration Statement under the Act (in any such case, such period
being called the “Shelf Registration Period”). The Issuers and the Guarantors shall be
deemed not to have used their reasonable best efforts to keep the Shelf Registration
Statement effective during the requisite period if either Issuer or any Guarantor
voluntarily takes any action that would result in Holders of Securities covered thereby not
being able to offer and sell such Securities during that period, unless (A) such action is
required by applicable law; or (B) such action is taken by such Issuer or such Guarantor in
good faith and for valid business reasons (not including avoidance of the Issuers’ or the
Guarantors’ obligations hereunder), including the acquisition or divestiture of assets, so
long as the Issuers and the Guarantors promptly thereafter comply with the requirements of
Section 5(k) hereof, if applicable.

          (iii) The Issuers and the Guarantors shall cause the Shelf Registration Statement and
the related Prospectus and any amendment or supplement thereto, as of the effective date of
the Shelf Registration Statement or such amendment or supplement, (A) to comply in all
material respects with the applicable requirements of the Act and the rules and regulations
of the Commission; and (B) not to contain any untrue statement of a material fact or omit to
state a material fact required to be stated therein or necessary in order to make the
statements therein, in the light of the circumstances under which they were made, not
misleading.

          4. Additional Interest. 

          (a) In the event that (i) the Issuers and the Guarantors have not filed the Exchange Offer
Registration Statement or the Shelf Registration Statement with the Commission on or before the
date on which such Registration Statement is required to be so filed pursuant to

7

 

Section 2(a) and
3(b), respectively, or (ii) such Exchange Offer Registration Statement or Shelf Registration
Statement has not been declared effective by the Commission under the Act on or before the date on
which such Registration Statement is required to be declared effective under the Act pursuant to
Section 2(a) or 3(b), respectively, or (iii) the Exchange Offer has not been consummated within 300
days after the date of issuance of the Securities, or (iv) the Exchange Offer Registration
Statement or Shelf Registration Statement required by Section 2(a) or 3(b) hereof is filed and
declared effective by the Commission under the Act but shall thereafter cease to be effective
(except as specifically permitted herein) without being succeeded immediately by an additional
Registration Statement filed and declared effective by the Commission under the Act (each such
event referred to in clauses (i) through (iv) is referred to herein as a “Registration Default”),
then the interest rate on the Securities will be increased, for the period from the occurrence of
the Registration Default until such time as all Registration Defaults are cured (at which time the
interest rate will be reduced to its initial rate) by 0.25% per annum during the first 90-day
period following the occurrence and during the continuation of the Registration Default, and by
0.25% per annum for each subsequent 90-day period during which such Registration Default continues.
The interest rate will not at any time be increased by greater than 0.50% per annum.

          (b) Without limiting the remedies available to the Initial Purchasers and the Holders, the
Issuers and the Guarantors acknowledge that any failure by the Issuers or the Guarantors to comply
with their obligations under Section 2(a) or 3(b) hereof may result in material irreparable injury
to the Initial Purchasers or the Holders for which there is no adequate remedy at law, that it will
not be possible to measure damages for such injuries precisely and that, in the event of any such
failure, the Initial Purchasers or any Holder may obtain such relief as may be required to
specifically enforce the Issuers’ and the Guarantors’ obligations under Section 2(a) or Section
3(b) hereof.

          5. Additional Registration Procedures. In connection with any Shelf Registration Statement
and, to the extent applicable, any Exchange Offer Registration Statement, the following provisions
shall apply.

          (a) The Issuers and the Guarantors shall:

          (i) furnish to you, not less than five Business Days prior to the filing thereof with
the Commission, a copy of any Exchange Offer Registration Statement and any Shelf
Registration Statement, and each amendment thereof and each amendment or supplement, if any,
to the Prospectus included therein (including all documents incorporated by reference
therein after the initial filing) and shall use their reasonable best efforts to reflect in
each such document, when so filed with the Commission, such comments as you reasonably
propose;

          (ii) include the information set forth in Annex A hereto on the facing page of the
Exchange Offer Registration Statement, in Annex B hereto in the forepart of the Exchange
Offer Registration Statement in a section setting forth details of the Exchange Offer, in
Annex C hereto in the underwriting or plan of distribution section of the Prospectus
contained in the Exchange Offer Registration Statement, and in Annex D hereto in the letter
of transmittal delivered pursuant to the Registered Exchange Offer;

8

 

          (iii) if requested by an Initial Purchaser, include the information required by Item
507 or 508 of Regulation S-K, as applicable, in the Prospectus contained in the Shelf
Registration Statement; and

          (iv) in the case of a Shelf Registration Statement, include the names of the Holders
that propose to sell Securities pursuant to the Shelf Registration Statement as selling
security holders.

          (b) The Issuers and the Guarantors shall ensure that:

          (i) any Registration Statement and any amendment thereto and any Prospectus forming
part thereof and any amendment or supplement thereto comply in all material respects with
the Act and the rules and regulations thereunder; and

          (ii) any Registration Statement and any amendment thereto do not, when they become
effective, contain an untrue statement of a material fact or omit to state a material fact
required to be stated therein or necessary to make the statements therein not misleading.

          (c) The Issuers and the Guarantors shall advise you, the Holders of Securities covered by any
Shelf Registration Statement and any Exchanging Dealer under any Exchange Offer Registration
Statement that has provided in writing to the Issuers and the Guarantors a telephone or facsimile
number and address for notices, and, if requested in writing by you or any such Holder or
Exchanging Dealer, shall confirm such advice in writing (which notice pursuant to clauses (ii)-(v)
hereof shall be accompanied by an instruction to suspend the use of the Prospectus until the
Issuers and the Guarantors shall have remedied the basis for such suspension):

          (i) when a Registration Statement and any amendment thereto have been filed with the
Commission and when the Registration Statement or any post-effective amendment thereto has
become effective;

          (ii) of any request by the Commission for any amendment or supplement to the
Registration Statement or the Prospectus or for additional information;

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

          (iv) of the receipt by the Issuers and the Guarantors of any notification with respect
to the suspension of the qualification of the Securities included therein for sale in any
jurisdiction or the initiation of any proceeding for such purpose; and

          (v) of the happening of any event that requires any change in the Registration
Statement or the Prospectus so that, as of such date, the statements therein are not
misleading and do not omit to state a material fact required to be stated therein or
necessary to make the statements therein (in the case of the Prospectus, in the light of the
circumstances under which they were made) not misleading.

9

 

          (d) The Issuers and the Guarantors shall use their reasonable best efforts to obtain the
withdrawal of any order suspending the effectiveness of any Registration Statement or the
qualification of the Securities therein for sale in any jurisdiction at the earliest possible time.

          (e) The Issuers and the Guarantors shall furnish to each Holder of Securities covered by any
Shelf Registration Statement, without charge, at least one copy of such Shelf Registration
Statement and any post-effective amendment thereto, including all material incorporated therein by
reference, and, if the Holder so requests in writing, all exhibits thereto (including exhibits
incorporated by reference therein).

          (f) The Issuers and the Guarantors shall, during the Shelf Registration Period, deliver to
each Holder of Securities covered by any Shelf Registration Statement, without charge, as many
copies of the Prospectus (including each preliminary Prospectus) included in such Shelf
Registration Statement and any amendment or supplement thereto as such Holder may reasonably
request. The Issuers and the Guarantors consent to the use of the Prospectus or any amendment or
supplement thereto by each of the selling Holders of Securities in connection with the offering and
sale of the Securities covered by the Prospectus, or any amendment or supplement thereto, included
in the Shelf Registration Statement.

          (g) The Issuers and the Guarantors shall furnish to each Exchanging Dealer which so requests,
without charge, at least one copy of the Exchange Offer Registration Statement and any
post-effective amendment thereto, including all material incorporated by reference therein, and, if
the Exchanging Dealer so requests in writing, all exhibits thereto (including exhibits incorporated
by reference therein).

          (h) The Issuers and the Guarantors shall promptly deliver to each Initial Purchaser, each
Exchanging Dealer and each other Person required to deliver a Prospectus during the effectiveness
of the Exchange Offer Registration Statement, without charge, as many copies of the Prospectus
included in such Exchange Offer Registration Statement and any amendment or supplement thereto as
any such Person may reasonably request. The Issuers and the Guarantors consent to the use of the
Prospectus or any amendment or supplement thereto by any Initial Purchaser, any Exchanging Dealer
and any such other Person that may be required to deliver a Prospectus following the Registered
Exchange Offer in connection with the offering and sale of the New Securities covered by the
Prospectus, or any amendment or supplement thereto, included in the Exchange Offer Registration
Statement.

          (i) Prior to the Registered Exchange Offer or any other offering of Securities pursuant to any
Registration Statement, the Issuers and the Guarantors shall arrange, if necessary, for the
qualification of the Securities or the New Securities for sale under the laws of such jurisdiction
as any Holder shall reasonably request and will maintain such qualification in effect so long as
required; provided that in no event shall either Issuer or any Guarantor be obligated to
qualify to do business in any jurisdiction where it is not then so qualified or to take any action
that would subject it to service of process in suits, other than those arising out of the Initial
Placement, the Registered Exchange Offer or any offering pursuant to a Shelf Registration
Statement, in any such jurisdiction where it is not then so subject.

10

 

          (j) If any of the Securities or the New Securities are not issued in global form, then the
Issuers and the Guarantors shall cooperate with the Holders of Securities to facilitate the timely
preparation and delivery of certificates representing New Securities or Securities to be issued or
sold pursuant to any Registration Statement free of any restrictive legends and in such
denominations and registered in such names as Holders may request.

          (k) Upon the occurrence of any event contemplated by subsections (c)(ii) or (v) above, the
Issuers and the Guarantors shall promptly prepare a post-effective amendment to the applicable
Registration Statement or an amendment or supplement to the related Prospectus or file any other
required document so that, as thereafter delivered to Initial Purchasers of the securities included
therein, the Prospectus will not include an untrue statement of a material fact or omit to state
any material fact necessary to make the statements therein, in the light of the circumstances under
which they were made, not misleading. In such circumstances, the period of effectiveness of the
Exchange Offer Registration Statement provided for in Section 2 and the Shelf Registration
Statement provided for in Section 3(b) shall each be extended by the number of days from and
including the date of the giving of a notice of suspension pursuant to Section 5(c) to and
including the date when the Initial Purchasers, the Holders of the Securities and any known
Exchanging Dealer shall have received such amended or supplemented Prospectus pursuant to this
Section.

          (l) Not later than the effective date of any Registration Statement, the Issuers and the
Guarantors shall provide a CUSIP number for the Securities or the New Securities, as the case may
be, registered under such Registration Statement and provide the Trustee with certificates for such
Securities or New Securities, in a form eligible for deposit with The Depository Trust Company.

          (m) The Issuers and the Guarantors shall comply with all applicable rules and regulations of
the Commission and shall make generally available to the Issuers’ security holders as soon as
practicable after the effective date of the applicable Registration Statement an earnings statement
satisfying the provisions of Section 11(a) of the Act.

          (n) The Issuers and the Guarantors shall cause the Indenture to be qualified under the Trust
Indenture Act in a timely manner.

          (o) The Issuers and the Guarantors may require each Holder of Securities to be sold pursuant
to any Shelf Registration Statement to furnish to the Issuers and the Guarantors such information
regarding the Holder and the distribution of such Securities as the Issuers and the Guarantors may
from time to time reasonably require for inclusion in such Registration Statement. The Issuers and
the Guarantors may exclude from such Shelf Registration Statement the Securities of any Holder that
unreasonably fails to furnish such information within a reasonable time after receiving such
request.

          (p) In the case of any Shelf Registration Statement, the Issuers and the Guarantors shall
enter into such agreements and take all other appropriate actions (including, if requested, an
underwriting agreement in customary form) in order to expedite or facilitate the registration or
the disposition of the Securities, and in connection therewith, if an underwriting agreement is
entered into, cause the same to contain indemnification provisions and procedures

11

 

no less favorable
than those set forth in Section 7 (or such other provisions and procedures acceptable to the
Majority Holders and the Managing Underwriters, if any, with respect to all parties to be
indemnified pursuant to Section 7).

          (q) In the case of any Shelf Registration Statement, the Issuers and the Guarantors shall:

          (i) make reasonably available for inspection by the Holders of Securities to be
registered thereunder, any underwriter participating in any disposition pursuant to such
Registration Statement, and any attorney, accountant or other agent retained by the Holders
or any such underwriter all relevant financial and other records, pertinent partnership,
corporate or limited liability company documents and properties of the Issuers and the
Guarantors and their respective subsidiaries;

          (ii) cause the Issuers’ and the Guarantors’ respective officers, directors and
employees to supply all relevant information reasonably requested by the Holders or any such
underwriter, attorney, accountant or agent in connection with any such Registration
Statement as is customary for similar due diligence examinations; provided,
however, that any information that is designated in writing by the Issuers or the
Guarantors, in good faith, as confidential at the time of delivery of such information shall
be kept confidential by the Holders or any such underwriter, attorney, accountant or agent,
unless such disclosure is made in connection with a court proceeding or required by law, or
such information becomes available to the public generally or through a third party without
an accompanying obligation of confidentiality;

          (iii) make such representations and warranties to the Holders of Securities registered
thereunder and the underwriters, if any, in form, substance and scope as are customarily
made by issuers to underwriters in primary underwritten offerings and covering matters
including, but not limited to, those set forth in the Purchase Agreement;

          (iv) obtain opinions of counsel to the Issuers and the Guarantors and updates thereof
(which counsel and opinions (in form, scope and substance) shall be reasonably satisfactory
to the Managing Underwriters, if any) addressed to each selling Holder and the underwriters,
if any, covering such matters as are customarily covered in opinions requested in
underwritten offerings and such other matters as may be reasonably requested by such Holders
and underwriters;

          (v) obtain “cold comfort” letters and updates thereof from the independent certified
public accountants of the Issuers and the Guarantors (and, if necessary, any other
independent certified public accountants of any subsidiary of the Issuers and the Guarantors
or of any business acquired by the Issuers and the Guarantors for which financial statements
and financial data are, or are required to be, included in the Registration Statement),
addressed to each selling Holder of Securities registered thereunder and the underwriters,
if any, in customary form and covering matters of the type customarily covered in “cold
comfort” letters in connection with primary underwritten offerings; and

12

 

          (vi) deliver such documents and certificates as may be reasonably requested by the
Majority Holders and the Managing Underwriters, if any, including those to evidence
compliance with Section 5(k) and with any customary conditions contained in the underwriting
agreement or other agreement entered into by the Issuers or the Guarantors.

The actions set forth in clauses (iii), (iv), (v) and (vi) of this Section shall be performed at
(A) the effectiveness of such Registration Statement and each post-effective amendment thereto; and
(B) each closing under any underwriting or similar agreement as and to the extent required
thereunder.

          (r) [omitted]

          (s) [omitted]

          (t) [omitted]

          (u) In the event that any Broker-Dealer shall underwrite any Securities or participate as a
member of an underwriting syndicate or selling group or “assist in the distribution” (within the
meaning of the Conduct Rules and the By-Laws of the National Association of Securities Dealers,
Inc.) thereof, whether as a Holder of such Securities or as an underwriter, a placement or sales
agent or a broker or dealer in respect thereof, or otherwise, assist such Broker-Dealer in
complying with the requirements of such Rules and By-Laws, including, without limitation, by:

          (i) if such Rules or By-Laws shall so require, engaging a “qualified independent
underwriter” (as defined in such Rules) to participate in the preparation of the
Registration Statement, to exercise usual standards of due diligence with respect thereto
and, if any portion of the offering contemplated by such Registration Statement is an
underwritten offering or is made through a placement or sales agent, to recommend the yield
of such Securities;

          (ii) indemnifying any such qualified independent underwriter to the extent of the
indemnification of underwriters provided in Section 7 hereof; and

          (iii) providing such information to such Broker-Dealer as may be required in order for
such Broker-Dealer to comply with the requirements of such Rules.

          (iv) The Issuers and the Guarantors shall use their reasonable best efforts to take all
other steps necessary to effect the registration of the Securities or the New Securities, as
the case may be, covered by a Registration Statement.

          6. Registration Expenses. The Issuers and the Guarantors bear all expenses incurred in
connection with the performance of their obligations under Sections 2, 3 and 5 hereof and, in the
event of any Shelf Registration Statement, will reimburse the Holders for the reasonable fees and
disbursements of one firm or counsel designated by the Majority Holders to act as counsel for the
Holders in connection therewith, and, in the case of any Exchange Offer

13

 

Registration Statement,
will reimburse the Initial Purchasers for the reasonable fees and disbursements of counsel acting
in connection therewith.

          7. Indemnification and Contribution. (a) The Issuers and each Guarantor agree to
indemnify and hold harmless each Holder of Securities or New Securities, as the case may be,
covered by any Registration Statement (including each Initial Purchaser and, with respect to any
Prospectus delivery as contemplated in Section 5(h) hereof, each Exchanging Dealer), the directors,
officers, employees and agents of each such Holder and each Person who controls any such Holder
within the meaning of either the Act or the Exchange Act against any and all losses, claims,
damages or liabilities, joint or several, to which they or any of them may become subject under the
Act, the Exchange Act or other Federal or state statutory law or regulation, at common law or
otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof)
arise out of or are based upon any untrue statement or alleged untrue statement of a material fact
contained in the Registration Statement as originally filed or in any amendment thereof, or in any
preliminary Prospectus or the Prospectus, or in any amendment thereof or supplement thereto, or
arise out of or are based upon the omission or alleged omission to state therein a material fact
required to be stated therein or necessary to make the statements therein not misleading, and agree
to reimburse each such indemnified party, as incurred, for any legal or other expenses reasonably
incurred by them in connection with investigating or defending any such loss, claim, damage,
liability or action; provided, however, that (i) the Issuers and the Guarantors
will not be liable in any case to the extent that any such loss, claim, damage or liability arises
out of or is based upon any such untrue statement or alleged untrue statement or omission or
alleged omission made therein in reliance upon and in conformity with written information furnished
to the Issuers or the Guarantors by or on behalf of any such Holder specifically for inclusion
therein. This indemnity agreement will be in addition to any liability which the Issuers or the
Guarantors may otherwise have.

          The Issuers and each Guarantor also agree to indemnify or contribute as provided in Section
7(d) to Losses of any underwriter of Securities or New Securities, as the case may be, registered
under a Shelf Registration Statement, their directors, officers, employees or agents and each
Person who controls such underwriter on substantially the same basis as that of the indemnification
of the Initial Purchasers and the selling Holders provided in this Section 7(a). The Issuers and
each Guarantor shall, if requested by any Holder, enter into an underwriting agreement reflecting
such agreement, as provided in Section 5(p) hereof.

          (b) Each Holder of securities covered by a Registration Statement (including each Initial
Purchaser and, with respect to any Prospectus delivery as contemplated in Section 5(h) hereof, each
Exchanging Dealer) severally and not jointly agrees to indemnify and hold harmless the Issuers, the
Guarantors, the directors of the Issuers and the Guarantors, the officers of the Issuers and the
Guarantors who sign such Registration Statement and each Person who controls the Issuers or the
Guarantors within the meaning of either the Act or the Exchange Act, to the same extent as the
foregoing indemnity from the Issuers and the Guarantors to each such Holder, but only with
reference to written information relating to such Holder furnished to the Issuers and the
Guarantors by or on behalf of such Holder specifically for inclusion in the documents referred to
in the foregoing indemnity. This indemnity agreement will be in addition to any liability which
any such Holder may otherwise have.

14

 

          (c) Promptly after receipt by an indemnified party under this Section 7 or notice of the
commencement of any action, such indemnified party will, if a claim in respect thereof is to be
made against the indemnifying party under this Section, notify the indemnifying party in writing of
the commencement thereof; but the failure so to notify the indemnifying party (i) will not relieve
it from liability under paragraph (a) or (b) above unless and to the extent it did not otherwise
learn of such action and such failure results in the forfeiture by the indemnifying party of
substantial rights and defenses; and (ii) will not, in any event, relieve the indemnifying party
from any obligations to any indemnified party other than the indemnification obligation provided in
paragraph (a) or (b) above. The indemnifying party shall be entitled to appoint counsel of the
indemnifying party’s choice at the indemnifying party’s expense to represent the indemnified party
in any action for which indemnification is sought (in which case the indemnifying party shall not
thereafter be responsible for the fees and expenses of any separate counsel retained by the
indemnified party or parties except as set forth below); provided, however, that such counsel shall
be satisfactory to the indemnified party. Notwithstanding the indemnifying party’s election to
appoint counsel to represent the indemnified party in an action, the indemnified party shall have
the right to employ separate counsel (including local counsel), and the indemnifying party shall
bear the reasonable fees, costs and expenses of such separate counsel if (i) the use of counsel
chosen by the indemnifying party to represent the indemnified party would present such counsel with
a conflict of interest; (ii) the actual or potential defendants in, or targets of, any such action
include both the indemnified party and the indemnifying party and the indemnified party shall have
reasonably concluded that there may be legal defenses available to it and/or other indemnified
parties which are different from or additional to those available to the indemnifying party; (iii)
the indemnifying party shall not have employed counsel satisfactory to the indemnified party to
represent the indemnified party within a reasonable time after notice of the institution of such
action; or (iv) the indemnifying party shall authorize the indemnified party to employ separate
counsel at the expense of the indemnifying party. An indemnifying party will not, without the
prior written consent of the indemnified parties, settle or compromise or consent to the entry of
any judgment with respect to any pending or threatened claim, action, suit or proceeding in respect
of which indemnification or contribution may be sought hereunder (whether or not the indemnified
parties are actual or potential parties to such claim or action) unless such settlement, compromise
or consent includes an unconditional release of each indemnified party from all liability arising
out of such claim, action, suit or proceeding.

          (d) In the event that the indemnity provided in paragraph (a) or (b) of this Section 7 is
unavailable to or insufficient to hold harmless an indemnified party for any reason, then each
applicable indemnifying party shall have a joint and several obligation to contribute to the
aggregate losses, claims, damages and liabilities (including legal or other expenses reasonably
incurred in connection with investigating or defending same) (collectively “Losses”) to which such
indemnified party may be subject in such proportion as is appropriate to reflect the relative
benefits received by such indemnifying party, on the one hand, and such indemnified party, on the
other hand, from the Initial Placement and the Registration Statement which resulted in such
Losses; provided, however, that in no case shall any Initial Purchaser or any
subsequent Holder of any Security or New Security be responsible, in the aggregate, for any amount
in excess of the purchase discount or commission applicable to such Security, or in the case of a
New Security, applicable to the Security that was exchangeable into such New Security, as set forth
on the cover page of the Final Offering Memorandum, nor shall any underwriter be responsible for
any amount in excess of the underwriting discount or commission

15

 

applicable to the securities
purchased by such underwriter under the Registration Statement which resulted in such Losses. If
the allocation provided by the immediately preceding sentence is unavailable for any reason, the
indemnifying party and the indemnified party shall contribute in such proportion as is appropriate
to reflect not only such relative benefits but also the relative fault of such indemnifying party,
on the one hand, and such indemnified party, on the other hand, in connection with the statements
or omissions which resulted in such Losses as well as any other relevant equitable considerations.
Benefits received by the Issuers or the Guarantors shall be deemed to be equal to the sum of (x)
the total net proceeds from the Initial Placement (before deducting expenses) as set forth on the
cover page of the Final Offering Memorandum and (y) the total amount of additional interest which
the Issuers and the Guarantors were not required to pay as a result of registering the securities
covered by the Registration Statement which resulted in such Losses. Benefits received by the
Initial Purchasers shall be deemed to be equal to the total purchase discounts and commissions as
set forth on the cover page of the Final Offering Memorandum, and benefits received by any other
Holders shall be deemed to be equal to the value of receiving Securities or New Securities, as
applicable, registered under the Act. Benefits received by any underwriter shall be deemed to be
equal to the total underwriting discounts and commissions, as set forth on the cover page of the
Prospectus forming a part of the Registration Statement which resulted in such Losses. Relative
fault shall be determined by reference to, among other things, whether any alleged untrue statement
or omission relates to information provided by the indemnifying party, on the one hand, or by the
indemnified party, on the other hand, the intent of the parties and their relative knowledge,
access to information and opportunity to correct or prevent such untrue statement or omission. The
parties agree that it would not be just and equitable if contribution were determined by pro rata
allocation (even if the Holders were treated as one entity for such purpose) or any other method of
allocation which does not take account of the equitable considerations referred to above.
Notwithstanding the provisions of this paragraph (d), no Person guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of the Act) shall be entitled to
contribution from any Person who was not guilty of such fraudulent misrepresentation. For purposes
of this Section 7, each Person who controls a Holder within the meaning of either the Act or the
Exchange Act and each director, officer, employee and agent of such Holder shall have the same
rights to contribution as such Holder, and each Person who controls the Issuers and the Guarantors
within the meaning of either the Act or the Exchange Act, each officer of the Issuers and the
Guarantors who shall have signed the Registration Statement and each director of the Issuers and
the Guarantors shall have the same rights to contribution as the Issuers and the Guarantors,
subject in each case to the applicable terms and conditions of this paragraph (d).

          (e) The provisions of this Section 7 will remain in full force and effect, regardless of any
investigation made by or on behalf of any Holder or the Issuers and the Guarantors or any of the
officers, directors or controlling Persons referred to in this Section hereof, and will survive the
sale by a Holder of securities covered by a Registration Statement.

16

 

          8. Underwritten Registrations. (a) If any of the Securities or New Securities, as the
case may be, covered by any Shelf Registration Statement are to be sold in an underwritten
offering, the Managing Underwriters shall be selected by the Majority Holders and shall be
reasonably satisfactory to the Partnership.

          (b) No Person may participate in any underwritten offering pursuant to any Shelf Registration
Statement, unless such Person (i) agrees to sell such Person’s Securities or New Securities, as the
case may be, on the basis reasonably provided in any underwriting arrangements approved by the
Persons entitled hereunder to approve such arrangements; and (ii) completes and executes all
questionnaires, powers of attorney, indemnities, underwriting agreements and other documents
reasonably required under the terms of such underwriting arrangements.

          9. No Inconsistent Agreements. The Issuers and the Guarantors have not, as of the date
hereof, entered into, nor shall they, on or after the date hereof, enter into, any agreement with
respect to their securities that is inconsistent with the rights granted to the Holders herein or
otherwise conflicts with the provisions hereof.

          10. Amendments and Waivers. The provisions of this Agreement, including the provisions of
this sentence, may not be amended, qualified, modified or supplemented, and waivers or consents to
departures from the provisions hereof may not be given, unless the Issuers and the Guarantors have
obtained the written consent of the Majority Holders (or, after the consummation of any Registered
Exchange Offer in accordance with Section 2 hereof, of New Securities); provided that, with
respect to any matter that directly or indirectly affects the rights of any Initial Purchaser
hereunder, the Issuers and the Guarantors shall obtain the written consent of each such Initial
Purchaser against which such amendment, qualification, supplement, waiver or consent is to be
effective. Notwithstanding the foregoing (except the foregoing proviso), a waiver or consent to
departure from the provisions hereof with respect to a matter that relates exclusively to the
rights of Holders whose Securities or New Securities, as the case may be, are being sold pursuant
to a Registration Statement and that does not directly or indirectly affect the rights of other
Holders may be given by the Majority Holders, determined on the basis of Securities or New
Securities, as the case may be, being sold rather than registered under such Registration
Statement.

          11. Notices. All notices and other communications provided for or permitted hereunder
shall be made in writing by hand-delivery, first-class mail, telex, telecopier or air courier
guaranteeing overnight delivery:

          (a) if to a Holder, at the most current address given by such Holder to the Issuers in
accordance with the provisions of this Section, which address initially is, with respect to each
Holder, the address of such Holder maintained by the Registrar under the Indenture, with a copy in
like manner to Citigroup Global Markets Inc.;

          (b) if to you, initially at the respective addresses set forth in the Purchase Agreement;

17

 

          (c) if to the Issuers, initially at the address set forth in the Purchase Agreement; and

          (d) if to the Guarantors, initially at 333 Clay Street, Suite 1600, Houston, Texas 77002.

          All such notices and communications shall be deemed to have been duly given when received.

          The Initial Purchasers, the Issuers or the Guarantors by notice to the other parties may
designate additional or different addresses for subsequent notices or communications.

          12. Successors and Assigns. This Agreement shall inure to the benefit of and be binding
upon the successors and assigns of each of the parties, including, without the need for an express
assignment or any consent by the Issuers or the Guarantors thereto, subsequent Holders of
Securities and the New Securities. The Issuers and the Guarantors hereby agree to extend the
benefits of this Agreement to any Holder of Securities and the New Securities, and any such Holder
may specifically enforce the provisions of this Agreement as if an original party hereto.

          13. Counterparts. This agreement may be in signed counterparts, each of which shall
constitute an original and all of which together shall constitute one and the same agreement.

          14. Purchases and Sales of Securities. The Issuers and the Guarantors shall not, and
shall use their best efforts to cause their affiliates (as defined in Rule 405 under the Act) not
to, purchase and then resell or otherwise transfer any Securities for two (2) years, or if a Shelf
Registration Statement shall become effective during such two (2) year period, for the period of
such effectiveness.

          15. Third Party Beneficiaries. Each Holder shall be a third party beneficiary to the
agreements made hereunder between the Issuers and the Guarantors, on the one hand, and the Initial
Purchasers, on the other hand, and shall have the right to enforce such agreements directly to the
extent it deems such enforcement necessary or advisable to protect its rights or the rights of
other Holders hereunder.

          16. Headings. The headings used herein are for convenience only and shall not affect the
construction hereof.

          17. Applicable Law. This Agreement shall be governed by and construed in accordance with
the laws of the State of New York applicable to contracts made and to be performed in the State of
New York.

          18. Severability. In the event that any one of more of the provisions contained herein, or
the application thereof in any circumstances, is held invalid, illegal or unenforceable in any
respect for any reason, the validity, legality and enforceability of any such provision in every
other respect and of the remaining provisions hereof shall not be in any way impaired or affected

18

 

thereby, it being intended that all of the rights and privileges of the parties shall be
enforceable to the fullest extent permitted by law.

          19. Securities Held by the Issuers, the Guarantors, etc. Whenever the consent or approval
of Holders of a specified percentage of principal amount of Securities or New Securities is
required hereunder, Securities or New Securities, as applicable, held by the Issuers, the
Guarantors or their Affiliates (other than subsequent Holders of Securities or New Securities if
such subsequent Holders are deemed to be Affiliates solely by reason of their holdings of such
Securities or New Securities) shall not be counted in determining whether such consent or approval
was given by the Holders of such required percentage.

19

 

     If the foregoing is in accordance with your understanding of our agreement, please sign and
return to us the enclosed duplicate hereof, whereupon this letter and your acceptance shall
represent a building agreement among the Issuers, the Guarantors and the several Initial
Purchasers.

	 	 	 	 	 	 	 	 	 
	 	 	Very truly yours,	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	PLAINS ALL AMERICAN PIPELINE, L.P.	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	PLAINS AAP, L.P.	 	 
	 	 	 	 	its General Partner	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	PLAINS ALL AMERICAN GP LLC	 	 
	 	 	 	 	its General Partner	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	/s/ Phil Kramer	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name: Phil Kramer	 	 
	 

	 	 	 	 	 	Title: Executive Vice President and Chief
Financial Officer
	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	PAA FINANCE CORP.	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	/s/ Phil Kramer	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name: Phil Kramer	 	 
	 

	 	 	 	 	 	Title: Executive Vice President and Chief
Financial Officer
	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	PLAINS MARKETING, L.P.	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	PLAINS MARKETING GP INC.	 	 
	 	 	 	 	its General Partner	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	/s/ Phil Kramer	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name: Phil Kramer	 	 
	 

	 	 	 	 	 	
Title: Executive Vice President and Chief
Financial Officer
	 	 
	 
	 	 	 	 	 	 	 	 

20

 

	 	 	 	 	 	 	 	 	 
	 	 	PLAINS PIPELINE, L.P.	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	PLAINS MARKETING GP INC.	 	 
	 	 	 	 	its General Partner	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	/s/ Phil Kramer	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name: Phil Kramer	 	 
	 

	 	 	 	 	 	Title: Executive Vice President and Chief
Financial Officer
	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	PLAINS MARKETING GP INC.	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	/s/ Phil Kramer	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name: Phil Kramer	 	 
	 

	 	 	 	 	 	Title: Executive Vice President and Chief
Financial Officer
	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	PLAINS MARKETING CANADA LLC	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	PLAINS MARKETING, L.P.	 	 
	 	 	 	 	its Sole Member	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	PLAINS MARKETING GP INC.	 	 
	 	 	 	 	its General Partner	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	/s/ Phil Kramer	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name: Phil Kramer	 	 
	 

	 	 	 	 	 	Title: Executive Vice President and Chief
Financial Officer
	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	PMC (NOVA SCOTIA) COMPANY	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	/s/ Phil Kramer	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name: Phil Kramer	 	 
	 

	 	 	 	 	 	Title: Executive Vice President	 	 

21

 

	 	 	 	 	 	 	 	 	 
	 	 	PLAINS MARKETING CANADA, L.P.	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	PMC (NOVA SCOTIA) COMPANY	 	 
	 	 	 	 	  its General Partner	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	/s/ Phil Kramer	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name: Phil Kramer

Title: Executive Vice President	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	BASIN HOLDINGS GP LLC	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	PLAINS PIPELINE, L.P.	 	 
	 	 	 	 	its Sole Member	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	PLAINS MARKETING GP INC.	 	 
	 	 	 	 	its General Partner	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	/s/ Phil Kramer	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name: Phil Kramer	 	 
	 

	 	 	 	 	 	Title: Executive Vice President and Chief
Financial Officer
	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	BASIN PIPELINE HOLDINGS, L.P.	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	BASIN HOLDINGS GP LLC	 	 
	 	 	 	 	its General Partner	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	PLAINS PIPELINE, L.P.	 	 
	 	 	 	 	its Sole Member	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	PLAINS MARKETING GP INC.	 	 
	 	 	 	 	its General Partner	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	/s/ Phil Kramer	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name: Phil Kramer	 	 
	 

	 	 	 	 	 	Title: Executive Vice President and Chief
Financial Officer
	 	 

22

 

	 	 	 	 	 	 	 	 	 
	 	 	RANCHO HOLDINGS GP LLC	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	PLAINS PIPELINE, L.P.	 	 
	 	 	 	 	its Sole Member	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	PLAINS MARKETING GP INC.	 	 
	 	 	 	 	its General Partner	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	/s/ Phil Kramer	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name: Phil Kramer	 	 
	 

	 	 	 	 	 	Title: Executive Vice President and Chief
Financial Officer
	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	RANCHO PIPELINE HOLDINGS, L.P.	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	RANCHO HOLDINGS GP LLC	 	 
	 	 	 	 	its General Partner	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	PLAINS PIPELINE, L.P.	 	 
	 	 	 	 	its Sole Member	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	PLAINS MARKETING GP INC.	 	 
	 	 	 	 	its General Partner	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	/s/ Phil Kramer	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name: Phil Kramer	 	 
	 

	 	 	 	 	 	Title: Executive Vice President and Chief
Financial Officer
	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	PLAINS LPG SERVICES GP LLC	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	Plains Marketing, L.P., its Sole Member	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	Plains Marketing GP Inc., its General Partner	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ Phil Kramer	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Phil Kramer	 	 
	 

	 	 	 	 	 	Executive Vice President and Chief
Financial Officer	 	 

23

 

	 	 	 	 	 	 	 	 	 
	 	 	PLAINS LPG SERVICES, L.P.	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	Plains LPG Services GP LLC, its General Partner	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	Plains Marketing, L.P., its Sole Member	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	Plains Marketing GP Inc., its General Partner	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	/s/ Phil Kramer	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Phil Kramer	 	 
	 

	 	 	 	 	 	Executive Vice President and Chief
Financial Officer	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	LONE STAR TRUCKING, LLC	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	Plains LPG Services, L.P., its Sole Member	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	Plains LPG Services GP LLC, its General Partner	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	Plains Marketing, L.P., its Sole Member	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	Plains Marketing GP Inc., its General Partner	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	/s/ Phil Kramer	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Phil Kramer	 	 
	 

	 	 	 	 	 	Executive Vice President and
Chief Financial Officer	 	 

24

 

	 	 	 	 	 	 	 	 	 
	 	 	PLAINS MARKETING INTERNATIONAL GP LLC	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	PLAINS MARKETING, L.P.	 	 
	 	 	 	 	its Sole Member	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	PLAINS MARKETING GP INC.	 	 
	 	 	 	 	its General Partner	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	/s/ Phil Kramer	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name: Phil Kramer	 	 
	 

	 	 	 	 	 	Title: Executive Vice President and Chief
Financial Officer
	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	PLAINS MARKETING INTERNATIONAL, L.P.	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	PLAINS MARKETING INTERNATIONAL GP LLC	 	 
	 	 	 	 	its General Partner	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	PLAINS MARKETING, L.P.	 	 
	 	 	 	 	its Sole Member	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	PLAINS MARKETING GP INC.	 	 
	 	 	 	 	its General Partner	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	/s/ Phil Kramer	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name: Phil Kramer	 	 
	 

	 	 	 	 	 	Title: Executive Vice President and Chief
Financial Officer
	 	 

25

 

	 	 	 	 	 	 	 	 	 
	 	 	PLAINS LPG MARKETING, L.P.	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	PLAINS LPG SERVICES GP LLC	 	 
	 	 	 	 	its General Partner	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	PLAINS MARKETING, L.P.	 	 
	 	 	 	 	its Sole Member	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	PLAINS MARKETING GP INC.	 	 
	 	 	 	 	its General Partner	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	/s/ Phil Kramer	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name: Phil Kramer	 	 
	 

	 	 	 	 	 	Title: Executive Vice President and Chief
Financial Officer
	 	 

26

 

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

CITIGROUP GLOBAL MARKETS INC.

UBS SECURITIES LLC

BANC OF AMERICA SECURITIES LLC

J.P. MORGAN SECURITIES INC.

WACHOVIA CAPITAL MARKETS, LLC

BNP PARIBAS SECURITIES CORP.

SUNTRUST CAPITAL MARKETS, INC.

COMERICA SECURITIES, INC.

COMMERZBANK CAPITAL MARKETS CORP.

DNB NOR MARKETS, INC.

FORTIS SECURITIES LLC

HSBC SECURITIES (USA) INC.

ING FINANCIAL MARKETS LLC

MITSUBISHI UFJ SECURITIES INTERNATIONAL PLC

PIPER JAFFRAY & CO.

RBC CAPITAL MARKETS CORPORATION

SCOTIA CAPITAL (USA) INC.

DAIWA SECURITIES AMERICA INC.

SG AMERICAS SECURITIES, LLC

WEDBUSH MORGAN SECURITIES INC.

WELLS FARGO SECURITIES, LLC

	 	 	 	 	 
	By:

	 	CITIGROUP GLOBAL MARKETS INC.	 	 
	 
	 	 	 	 
	By:
	 	/s/ Brian D. Bednarski	 	 
	 

	 	 

     Name:  Brian D. Bednarski
	 	 
	 

	 	     Title:
  Director	 	 

27

 

SCHEDULE 1

Plains Marketing, L.P.

Plains Pipeline, L.P.

Plains Marketing GP Inc.

Plains Marketing Canada LLC

PMC (Nova Scotia) Company

Plains Marketing Canada, L.P.

Basin Holdings GP LLC

Basin Pipeline Holdings, L.P.

Rancho Holdings GP LLC

Rancho Pipeline Holdings, L.P.

Plains LPG Services GP LLC

Plains LPG Services, L.P.

Lone Star Trucking, LLC

Plains Marketing International GP LLC

Plains Marketing International, L.P.

Plains LPG Marketing, L.P.

28

 

SCHEDULE 2

Citigroup Global Markets Inc.

UBS Securities LLC

Banc of America Securities LLC

J.P. Morgan Securities Inc.

Wachovia Capital Markets, LLC

BNP Paribas Securities Corp.

SunTrust Capital Markets, Inc.

Comerica Securities, Inc.

Commerzbank Capital Markets Corp.

DnB NOR Markets, Inc.

Fortis Securities LLC

HSBC Securities (USA) Inc.

ING Financial Markets LLC

Mitsubishi UFJ Securities International plc

Piper Jaffray & Co.

RBC Capital Markets Corporation

Scotia Capital (USA) Inc.

Daiwa Securities America Inc.

SG Americas Securities, LLC

Wedbush Morgan Securities Inc.

Wells Fargo Securities, LLC

29

 

ANNEX A

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

 

 

ANNEX B

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

2

 

ANNEX C

PLAN OF DISTRIBUTION

          Each Broker-Dealer that receives New Securities for its own account pursuant to the Exchange
Offer must acknowledge that it will deliver a prospectus in connection with any resale of such New
Securities. This Prospectus, as it may be amended or supplemented from time to time, may be used
by a Broker-Dealer in connection with resales of New Securities received in exchange for Securities
where such Securities were acquired as a result of market-making activities or other trading
activities. The Issuers and the Guarantors have agreed that, starting on the Expiration Date and
ending on the close of business one year after the Expiration Date, they will make this Prospectus,
as amended or supplemented, available to any Broker-Dealer for use in connection with any such
resale. In addition, until                     , 200___[90 days] after commencement of the offering, all
dealers effecting transactions in the New Securities may be required to deliver a prospectus.

          The Issuers and the Guarantors will not receive any proceeds from any sale of New Securities
by Brokers-Dealers. New Securities received by Broker-Dealers for their own account pursuant to
the Exchange Offer may be sold from time to time in one or more transactions in the
over-the-counter market, in negotiated transactions, through the writing of options on the New
Securities or a combination of such methods of resale, at market prices prevailing at the time of
resale, at prices related to such prevailing market prices or negotiated prices. Any such resale
may be made directly to purchasers or to or through brokers or dealers who may receive compensation
in the form of commissions or concessions from any such Broker-Dealer and/or the purchasers of any
such New Securities. Any Broker-Dealer that resells New Securities that were received by it for
its own account pursuant to the Exchange Offer and any broker or dealer that participates in a
distribution of such New Securities may be deemed to be an “underwriter” within the meaning of the
Act and any profit of any such resale of New Securities and any commissions or concessions received
by any such Persons may be deemed to be underwriting compensation under the Act. The Letter of
Transmittal states that by acknowledging that it will deliver and by delivering a prospectus, a
Broker-Dealer will not be deemed to admit that it is an “underwriter” within the meaning of the
Act.

          For a period of one year after the Expiration Date, the Issuers and the Guarantors will
promptly send additional copies of this Prospectus and any amendment or supplement to this
Prospectus to any Broker-Dealer that requests such documents in the Letter of Transmittal. The
Issuers and the Guarantors have agreed to pay all expenses incident to the Exchange Offer
(including the reasonable expenses of one counsel for the holders of the Securities) other than
commissions or concessions of any brokers or dealers and will indemnify the holders of the
Securities (including any Broker-Dealers) against certain liabilities, including liabilities under
the Act.

          If applicable, add information required by Regulation S-K Items 507 and/or 508.

3

 

ANNEX D

Rider A

CHECK HERE IF YOU ARE A BROKER-DEALER AND WISH TO RECEIVE 10 ADDITIONAL COPIES OF
THE PROSPECTUS AND 10 COPIES OF ANY AMENDMENTS OR SUPPLEMENTS THERETO.

	 	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Address:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 

Rider B

If the undersigned is not a Broker-Dealer, the undersigned represents that it acquired the New
Securities in the ordinary course of its business, it is not engaged in, and does not intend to
engage in, a distribution of New Securities and it has no arrangements or understandings with any
Person to participate in a distribution of the New Securities. If the undersigned is a
Broker-Dealer that will receive New Securities for its own account in exchange for Securities, it
represents that the Securities to be exchange for New Securities were acquired by it as a result of
market-making activities or other trading activities and acknowledges that it will deliver a
prospectus in connection with any resale of such New Securities; however, by so acknowledging and
by delivering a prospectus, the undersigned will not be deemed to admit that it is an “underwriter”
within the meaning of the Act.

4

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