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EXHIBIT 4.7    
    

EXCHANGE AND REGISTRATION RIGHTS AGREEMENT  

 AMONG  

 PLAINS ALL AMERICAN PIPELINE, L.P.,  

 PAA FINANCE CORP.,  

 THE GUARANTORS  

 AND  

 THE INITIAL PURCHASERS  

 Dated as of August 12, 2004  

PLAINS ALL AMERICAN PIPELINE, L.P.

PAA FINANCE CORP.  

5.875% Senior Notes due 2016  

EXCHANGE
AND REGISTRATION RIGHTS AGREEMENT 

August 12,
2004 

Banc
of America Securities LLC

J.P. Morgan Securities Inc.

Wachovia Capital Markets, LLC

UBS Securities LLC

Citigroup Global Markets Inc.

BNP Paribas Securities Corp.

Fortis Securities LLC

SunTrust Capital Markets, Inc.

Wedbush Morgan Securities Inc.

Wells Fargo Securities, LLC

Comerica Securities, Inc. 

	c/o
	Banc
of America Securities LLC

214 North Tryon Street

Charlotte, North Carolina 28255 

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 August 5, 2004 (the "Purchase Agreement"), $175,000,000 principal amount of 5.875% Senior Notes due 2016 (the "Securities") relating to
the initial placement of the Securities (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: 

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

        "Final
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 Wachovia Bank, National Association,
as trustee, as amended by the Fourth Supplemental Indenture, dated as of August 12, 2004, 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. 

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

2

 

        "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 120 days
following the date of the original issuance of the Securities (or if such 120th 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 210 days of the date of the original issuance of the Securities and to consummate the
Registered Exchange Offer within 240 days of the date of the original issuance of the Securities (if such 210th or 240th 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 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); 

3

 

        (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: 

        (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 

4

 

        (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 240 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 120 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 210 days after so required or
requested pursuant to this Section 3, 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 

5

 

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 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 240 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; 

        (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 

6

 

        (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. 

        (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 

7

 

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. 

        (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 

8

 

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 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 

9

 

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 

        (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 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 

10

 

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. 

        (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 

11

 

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 Memorandum, nor shall any underwriter be responsible for any amount in excess of the
underwriting discount or commission 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 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 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 

12

 

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. 

        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. 

13

 

        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 Banc of America Securities LLC; 

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

        (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 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. 

14

   
        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
	 	 	 	 	 	 

15

 

	

 	
 	

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
	 	 	 	 	 	 

16

 

	

 	
 	

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
	 	 	 	 	 	 

17

 

	

 	
 	

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

	

The foregoing Agreement is hereby

confirmed and accepted as of the

date first above written.	
 	

 
	

BANC OF AMERICA SECURITIES LLC	
 	

 
	

By:	

/s/ Peter J. Carbone
	
 	

 
	 	Name:	Peter J. Carbone	 	 
	 	Title:	Vice President	 	 

18

QuickLinks

EXHIBIT 4.7Exhibit
10.45

 

Las
Vegas Sands Corp.

2004 EQUITY AWARD PLAN

(Effective as of December __, 2004)

 

1.             Purpose

The purpose of the Plan
is to provide a means through which the Company and its Affiliates may attract
able persons to enter and remain in the employ of the Company and its
Affiliates and to provide a means whereby employees, directors and consultants
of the Company and its Affiliates can acquire and maintain Common Stock
ownership, or be paid incentive compensation measured by reference to the value
of Common Stock, thereby strengthening their commitment to the welfare of the
Company and its Affiliates and promoting an identity of interest between
stockholders and these persons.

So that the appropriate
incentive can be provided, the Plan provides for granting Incentive Stock
Options, Nonqualified Stock Options, Stock Appreciation Rights, Restricted
Stock, Restricted Stock Units, Stock Bonuses and Performance Compensation
Awards, or any combination of the foregoing.

2.             Definitions

The following definitions
shall be applicable throughout the Plan.

(a)           “Affiliate” means (i) any
entity that directly or indirectly is controlled by, controls or is under
common control with the Company and (ii) to the extent provided by the
Committee, any entity in which the Company has a significant equity interest.

(b)           “Award” means, individually or
collectively, any Incentive Stock Option, Nonqualified Stock Option, Stock
Appreciation Right, Restricted Stock, Restricted Stock Unit, Stock Bonus or
Performance Compensation Award granted under the Plan.

(c)           “Board” means the Board of
Directors of the Company.

(d)           “Cause” means the Company or an Affiliate
having “cause” to terminate a Participant’s employment or service, as defined
in any existing employment, consulting or any other agreement between the
Participant and the Company or an Affiliate or, in the absence of such an
employment, consulting or other agreement, upon (i) the determination by
the Committee that the Participant has ceased to perform his duties to the Company,
or an Affiliate (other than as a result of his incapacity due to physical or
mental illness or injury), which failure amounts to an intentional and extended
neglect of his duties to such party, (ii) the Committee’s determination
that the Participant has engaged or is about to engage in conduct materially
injurious to the Company or an Affiliate, (iii) the Participant
having been convicted of, or plead guilty or 

 

no
contest to, a felony or any crime involving as a material element fraud or
dishonesty, (iv) the failure of the Participant to follow the lawful
instructions of the Board or his direct superiors or (v) in the case of a
Participant who is a non-employee director, the Participant ceasing to be a
member of the Board in connection with the Participant engaging in any of the
activities described in clauses (i) through (iv) above.

(e)           “Change in Control” shall,
unless in the case of a particular Award the applicable Award agreement states
otherwise or contains a different definition of “Change in Control,” be deemed
to occur upon:

(i)            the
acquisition by any individual, entity or group (within the meaning of
Section 13(d)(3) or 14(d)(2) of the Exchange Act (a “Person”) of
beneficial ownership (within the meaning of Rule 13d-3 promulgated
under the Exchange Act) of 50% or more (on a fully diluted basis) of either
(A) the then outstanding shares of Common Stock of the Company, taking
into account as outstanding for this purpose such Common  Stock issuable upon the exercise of options
or warrants, the conversion of convertible stock or debt, and the exercise of
any similar right to acquire such Common Stock (the “Outstanding Company
Common Stock”) or (B) the combined voting power of the then
outstanding voting securities of the Company entitled to vote generally in the
election of directors (the “Outstanding Company Voting Securities”); provided,
however, that for purposes of this Plan, the following acquisitions
shall not constitute a Change in Control: 
(I) any acquisition by the Company or any Affiliate, (II) any
acquisition by any employee benefit plan sponsored or maintained by the Company
or any Affiliate, (III) any acquisition by Sheldon G. Adelson (“Adelson”)
or any  Related Party or any group of
which Adelson or a Related Party is a member (a “Designated Holder”),
(IV) any acquisition which complies with clauses (A) and (B) of subsection (v)
of this Section 2(e), or (V) in respect of an Award held by a particular
Participant, any acquisition by the Participant or any group of persons
including the Participant (or any entity controlled by the Participant or any
group of persons including the Participant);

(ii)            individuals
who, on the date hereof, constitute the Board (the “Incumbent Directors”)
cease for any reason to constitute at least a majority of the Board, provided
that any person becoming a director subsequent to the date hereof, whose
election or nomination for election was approved by a vote of at least
two-thirds of the Incumbent Directors then on the Board (either by a specific
vote or by approval of a registration statement of the Company describing such
person’s inclusion on the Board, or a proxy statement of the Company in which
such person is named as a nominee for director, without written objection to
such nomination) shall be an Incumbent Director; provided, however,
that no individual initially elected or nominated as a director of the Company
as a result of an actual or threatened election contest, as such terms are used
in Rule 14a-11 of Regulation A promulgated under the Exchange Act, with respect
to directors or as a result of any other actual or threatened solicitation of
proxies or consents by or on behalf of any person other than the Board shall be
deemed to be an Incumbent Director;

 

2

 

(iii)           the
dissolution or liquidation of the Company;

(iv)           the
sale, transfer or other disposition of all or substantially all of the business
or assets of the Company, other than any such sale, transfer or other
disposition to one or more Designated Holders; or

(v)            the
consummation of a reorganization, recapitalization, merger, consolidation,
statutory share exchange or similar form of corporate transaction involving the
Company that requires the approval of the Company’s stockholders, whether for
such transaction or the issuance of securities in the transaction (a “Business
Combination”), unless immediately following such Business Combination:  (A) more than 50% of the total voting power
of (x) the entity resulting from such Business Combination (the “Surviving
Company”), or (y) if applicable, the ultimate parent entity that directly
or indirectly has beneficial ownership of sufficient voting securities eligible
to elect a majority of the members of the board of directors (or the analogous
governing body) of the Surviving Company (the “Parent Company”), is
represented by the Outstanding Company Voting Securities that were outstanding
immediately prior to such Business Combination (or, if applicable, is
represented by shares into which the Outstanding Company Voting Securities were
converted pursuant to such Business Combination), and such voting power among
the holders thereof is in substantially the same proportion as the voting power
of the Outstanding Company Voting Securities among the holders thereof
immediately prior to the Business Combination, and (B) at least a majority of
the members of the board of directors (or the analogous governing body) of the
Parent Company (or, if there is no Parent Company, the Surviving Company)
following the consummation of the Business Combination were Board members at
the time of the Board’s approval of the execution of the initial agreement
providing for such Business Combination.

(f)            “Code” means the Internal
Revenue Code of 1986, as amended. 
Reference in the Plan to any section of the Code shall be deemed to
include any amendments or successor provisions to such section and any
regulations under such section.

(g)           “Committee” means (i) a
committee of at least two people as the Board may appoint to administer the
Plan or (ii) (x) if no such committee has been appointed by the Board or (y)
even if such a committee has been appointed, with respect to the grant of an
Award to a Non-Employee Director and the administration of such Award, the
Board.  Unless the Board is acting as
the Committee or the Board specifically determines otherwise, each member of
the Committee shall, at the time he takes any action with respect to an Award
under the Plan, be an Eligible Director. However, the fact that a Committee
member shall fail to qualify as an Eligible Director shall not invalidate any
Award granted by the Committee which Award is otherwise validly granted under
the Plan.

 

3

 

(h)           “Common Stock” means the
common stock, par value $0.001 per share, of the Company and any stock into
which such common stock may be converted or into which it may be exchanged.

(i)            “Company” means Las Vegas
Sands Corp., a Nevada corporation, and any successor thereto.

(j)            “Date of Grant” means the date
on which the granting of an Award is authorized, or such other date as may be
specified in such authorization or, if there is no such date, the date
indicated on the applicable Award agreement.

(k)           “Director Stock Option” means
a grant of a Nonqualified Stock Option to a Non-Employee Director under Section
7 of the Plan.

(l)            “Director Restricted Stock”
means a grant of Restricted Stock to a Non-Employee Director under Section 10
of the Plan.

(m)          “Disability” means, unless in
the case of a particular Award the applicable Award agreement states otherwise,
the Company or an Affiliate having cause to terminate a Participant’s
employment or service on account of “disability,” as defined in any existing
employment, consulting or other similar agreement between the Participant and
the Company or an Affiliate or, in the absence of such an employment,
consulting or other agreement, a condition entitling the Participant to receive
benefits under a long-term disability plan of the Company or an Affiliate or,
in the absence of such a plan, the complete and permanent inability by reason
of illness or accident to perform the duties of the occupation at which a
Participant was employed or served when such disability commenced, as
determined by the Committee based upon medical evidence acceptable to it.

(n)           “Effective Date” means
December __, 2004.

(o)           “Eligible Director” means a
person who is (i) a “non-employee director” within the meaning of Rule 16b-3
under the Exchange Act, or a person meeting any similar requirement under any
successor rule or regulation and (ii) an “outside director” within the meaning
of Section 162(m) of the Code, and the Treasury Regulations promulgated
thereunder; provided, however, that clause (ii) shall apply only
with respect to grants of Awards with respect to which the Company’s tax
deduction could be limited by Section 162(m) of the Code if such clause did not
apply.

(p)           “Eligible Person” means any
(i) individual regularly employed by the Company or Affiliate who satisfies all
of the requirements of Section 6; provided, however, that no
such employee covered by a collective bargaining agreement shall be an Eligible
Person unless and to the extent that such eligibility is set forth in such
collective bargaining agreement or in an agreement or instrument relating
thereto; (ii) director of the Company or an Affiliate or (iii) consultant or
advisor to the Company or an Affiliate who may be offered securities pursuant
to a Registration Statement on Form S-8 under the Securities Act or any successor
form that may be adopted by the Securities and Exchange Commission.

 

4

 

(q)           “Exchange Act” means the
Securities Exchange Act of 1934, as amended.

(r)            “Fair Market Value”, on a
given date means (i) if the Stock is listed on a national securities exchange,
the average of the highest and lowest sale prices reported as having occurred
on the primary exchange with which the Stock is listed and traded on the date
prior to such date, or, if there is no such sale on that date, then on the last
preceding date on which such a sale was reported; (ii) if the Stock is not
listed on any national securities exchange but is quoted in the Nasdaq National
Market (the “Nasdaq”) on a last sale basis, the average between the high
bid price and low ask price reported on the date prior to such date, or, if
there is no such sale on that date, then on the last preceding date on which a
sale was reported; or (iii) if the Stock is not listed on a national securities
exchange nor quoted in the Nasdaq on a last sale basis, the amount determined
by the Committee to be the fair market value based upon a good faith attempt to
value the Stock accurately and computed in accordance with applicable
regulations of the Internal Revenue Service.

(s)           “Incentive Stock Option” means
an Option granted by the Committee to a Participant under the Plan which is
designated by the Committee as an incentive stock option as described in
Section 422 of the Code and otherwise meets the requirements set forth herein.

(t)            “Mature Shares” means shares
of Stock owned by a Participant which are not subject to any pledge or other
security interest and have either been held by the Participant for six months,
previously acquired by the Participant on the open market or meet such other
requirements as the Committee may determine are necessary in order to avoid an
accounting earnings charge on account of the use of such shares to pay the
Option Price or satisfy a withholding obligation in respect of an Option.

(u)           “Negative Discretion” shall
mean the discretion authorized by the Plan to be applied by the Committee to
eliminate or reduce the size of a Performance Compensation Award in accordance
with Section 11(d)(iv) of the Plan; provided, that the exercise of such
discretion would not cause the Performance Compensation Award to fail to
qualify as “performance-based compensation” under Section 162(m) of the Code.

(v)           “Nevada Gaming Laws” means the
statutes of the State of Nevada, the regulations of the Nevada Gaming Commission,
the rules, directives and decisions of the Nevada Gaming Commission and State
Gaming Control Board, the ordinances of Clark County, Nevada, and the
regulations of the Clark County Liquor and Gaming Licensing Board.

(w)          “Non-Employee Director” shall
mean a director of the Company who is not also an employee of the Company.

 

5

 

(x)            “Nonqualified Stock Option”
means an Option granted by the Committee to a Participant under the Plan which
is not designated by the Committee as an Incentive Stock Option.

(y)           “Option” means an Award
granted under Section 7.

(z)            “Option Period” means the
period described in Section 7(c).

(aa)         “Option Price” means the
exercise price for an Option as described in Section 7(a).

(bb)         “Participant” means an Eligible
Person who has been selected by the Committee to participate in the Plan and to
receive an Award pursuant to Section 6.

(cc)         “Parent” means any parent of the
Company as defined in Section 424(e) of the Code.

(dd)         “Performance Compensation Award”
shall mean any Award designated by the Committee as a Performance Compensation
Award pursuant to Section 11 of the Plan.

(ee)         “Performance Criteria” shall
mean the criterion or criteria that the Committee shall select for purposes of
establishing the Performance Goal(s) for a Performance Period with respect to
any Performance Compensation Award under the Plan.  The Performance Criteria that will be used to establish the
Performance Goal(s) shall be based on the attainment of specific levels of
performance of the Company (or Affiliate, division or operational unit of the
Company) and shall be limited to the following:

(i)            net
earnings or net income (before or after taxes);

(ii)           basic
or diluted earnings per share (before or after taxes);

(iii)          net
revenue or net revenue growth;

(iv)          gross
profit or gross profit growth;

(v)           net
operating profit (before or after taxes);

(vi)          return
measures (including, but not limited to, return on assets, capital, invested
capital, equity, or sales);

(vii)         cash
flow (including, but not limited to, operating cash flow, free cash flow, and
cash flow return on capital);

 

6

 

(viii)        earnings
before or after taxes, interest, depreciation, amortization and/or rents;

(ix)           gross
or operating margins;

(x)            productivity
ratios;

(xi)           share
price (including, but not limited to, growth measures and total stockholder
return);

(xii)          expense
targets;

(xiii)         margins;

(xiv)        operating
efficiency;

(xv)         objective
measures of customer satisfaction;

(xvi)        working
capital targets;

(xvii)       measures
of economic value added; and

(xviii)      inventory
control.

Any one or more of the
Performance Criterion may be used to measure the performance of the Company
and/or an Affiliate as a whole or any business unit of the Company and/or an
Affiliate or any combination thereof, as the Committee may deem appropriate, or
any of the above Performance Criteria as compared to the performance of a group
of comparator companies, or published or special index that the Committee, in
its sole discretion, deems appropriate, or the Company may select Performance
Criterion (xi) above as compared to various stock market indices.  The Committee also has the authority to
provide for accelerated vesting of any Award based on the achievement of
Performance Goals pursuant to the Performance Criteria specified in this
paragraph.  To the extent required under
Section 162(m) of the Code, the Committee shall, within the first 90 days of a Performance
Period (or, if longer, within the maximum period allowed under Section 162(m)
of the Code), define in an objective fashion the manner of calculating the
Performance Criteria it selects to use for such Performance Period.  In the event that applicable tax and/or
securities laws change to permit Committee discretion to alter the governing
Performance Criteria without obtaining stockholder approval of such changes,
the Committee shall have sole discretion to make such changes without obtaining
stockholder approval.

(ff)           “Performance Formula” shall
mean, for a Performance Period, the one or more objective formulas applied
against the relevant Performance Goal to determine, with regard to the
Performance Compensation Award of a particular Participant, whether all, some
portion but less than all, or none of the Performance Compensation Award has
been earned for the Performance Period.

 

7

 

(gg)         “Performance Goals” shall mean,
for a Performance Period, the one or more goals established by the Committee
for the Performance Period based upon the Performance Criteria.  The Committee is authorized at any time
during the first 90 days of a Performance Period (or, if longer or shorter,
within the maximum period allowed under Section 162(m) of the Code), or at any
time thereafter (but only to the extent the exercise of such authority after
such period would not cause the Performance Compensation Awards granted to any
Participant for the Performance Period to fail to qualify as “performance-based
compensation” under Section 162(m) of the Code), in its sole and absolute
discretion, to adjust or modify the calculation of a Performance Goal for such
Performance Period to the extent permitted under Section 162(m) of the Code in
order to prevent the dilution or enlargement of the rights of Participants
based on the following events:

(i)            asset write-downs,

(ii)           litigation or claim judgments or settlements,

(iii)          the effect of changes in tax laws, accounting
principles, or other laws or provisions affecting reported results,

(iv)          any reorganization and restructuring programs,

(v)           extraordinary nonrecurring items as described in
Accounting Principles Board Opinion No. 30 (or any successor pronouncement
thereto) and/or in management’s discussion and analysis of financial condition
and results of operations appearing in the Company’s annual report to
stockholders for the applicable year,

(vi)          acquisitions or divestitures,

(vii)         any other unusual or nonrecurring events,

(viii)        foreign exchange gains and losses, and

(ix)           a change in the Company’s fiscal year.

(hh)         “Performance Period” shall mean
the one or more periods of time, as the Committee may select, over which the
attainment of one or more Performance Goals will be measured for the purpose of
determining a Participant’s right to and the payment of a Performance
Compensation Award.

(ii)           “Plan” means this Las Vegas
Sands Corp. 2004 Equity Award Plan.

(jj)           Related Party means (i) any
spouse, child, stepchild, sibling or descendant of Adelson, (ii) any estate of
Adelson or any person described in clause (i), (iii) any person who receives a
beneficial interest in the Company or any Subsidiary from any estate described
in clause (ii) to the extent of such interest, (iv) any executor, 

 

8

 

personal administrator or
trustee who hold such beneficial interest in the Company or any Subsidiary for
the benefit of, or as fiduciary for, any person under clauses (i), (ii) or
(iii) to the extent of such interest, (v) any corporation, trust or similar
entity owned or controlled by Adelson or any person referred to in clause (i),
(ii), (iii) or (iv) or for the benefit of any person referred to in clause (i),
or (vi) the spouse or issue of one or more of the persons described in clause
(i).

(kk)         “Restricted Period” means, with
respect to any Award of Restricted Stock or any Restricted Stock Unit, the
period of time determined by the Committee during which such Award is subject
to the restrictions set forth in Section 9 or, as applicable, the period
of time within which performance is measured for purposes of determining
whether an Award has been earned.

(ll)           “Restricted Stock Unit” means
a hypothetical investment equivalent to one share of Stock granted in
connection with an Award made under Section 9.

(mm)       “Restricted Stock” means shares of
Stock issued or transferred to a Participant subject to forfeiture and the
other restrictions set forth in Section 9.

(nn)         “Securities Act” means the
Securities Act of 1933, as amended.

(oo)         “Stock” means the Common Stock
or such other authorized shares of stock of the Company as the Committee may
from time to time authorize for use under the Plan.

(pp)         “Stock Appreciation Right” or “SAR”
means an Award granted under Section 8 of the Plan.

(qq)         “Stock Bonus” means an Award
granted under Section 10 of the Plan.

(rr)           “Stock Option Agreement” means
any agreement between the Company and a Participant who has been granted an
Option pursuant to Section 7 which defines the rights and obligations of the
parties thereto.

(ss)         “Strike Price” means, (i) in the
case of a SAR granted in tandem with an Option, the Option Price of the related
Option, or (ii) in the case of a SAR granted independent of an Option, the Fair
Market Value on the Date of Grant.

(tt)           “Subsidiary” means any
subsidiary of the Company as defined in Section 424(f) of the Code.

(uu)         “Vested Unit” shall have the
meaning ascribed thereto in Section 9(d).

 

9

 

3.             Effective Date, Duration and
Shareholder Approval

The Plan is effective as
of the Effective Date.  No Option shall
be treated as an Incentive Stock Option unless the Plan has been approved by
the shareholders of the Company in a manner intended to comply with the shareholder
approval requirements of Section 422(b)(i) of the Code; provided, that
any Option intended to be an Incentive Stock Option shall not fail to be
effective solely on account of a failure to obtain such approval, but rather
such Option shall be treated as a Nonqualified Stock Option unless and until
such approval is obtained.

The expiration date of
the Plan, on and after which no Awards may be granted hereunder, shall be the
tenth anniversary of the Effective Date; provided, however, that
the administration of the Plan shall continue in effect until all matters
relating to Awards previously granted have been settled.

4.             Administration

(a)           The Committee shall administer the
Plan.  The majority of the members of
the Committee shall constitute a quorum. 
The acts of a majority of the members present at any meeting at which a
quorum is present or acts approved in writing by a majority of the Committee
shall be deemed the acts of the Committee.

(b)           Subject to the provisions of the Plan
and applicable law, the Committee shall have the power, and in addition to
other express powers and authorizations conferred on the Committee by the Plan,
to:  (i) designate Participants; (ii)
determine the type or types of Awards to be granted to a Participant; (iii)
determine the number of shares of Stock to be covered by, or with respect to
which payments, rights, or other matters are to be calculated in connection
with, Awards; (iv) determine the terms and conditions of any Award; (v)
determine whether, to what extent, and under what circumstances Awards may be
settled or exercised in cash, shares of Stock, other securities, other Awards
or other property, or canceled, forfeited, or suspended and the method or
methods by which Awards may be settled, exercised, canceled, forfeited, or
suspended; (vi) determine whether, to what extent, and under what circumstances
the delivery of cash, Stock, other securities, other Options, other property
and other amounts payable with respect to an Award shall be deferred either
automatically or at the election of the holder thereof or of the Committee;
(vii) interpret, administer, reconcile any inconsistency, correct any defect
and/or supply any omission in the Plan and any instrument or agreement relating
to, or Award granted under, the Plan; (viii) establish, amend, suspend, or
waive such rules and regulations; (ix) appoint such agents as it shall deem
appropriate for the proper administration of the Plan; and (x) make any other
determination and take any other action that the Committee deems necessary or
desirable for the administration of the Plan.

(c)           Unless otherwise expressly provided
in the Plan, all designations, determinations, interpretations, and other
decisions under or with respect to the Plan or any Award or any documents
evidencing Awards granted pursuant to the Plan 
shall be within the sole discretion of the Committee, may be made at any
time and shall 

 

10

 

be final, conclusive and
binding upon all parties, including, without limitation, the Company, any
Affiliate, any Participant, any holder or beneficiary of any Award, and any
shareholder.

(d)           No member of the Committee shall be
liable for any action or determination made in good faith with respect to the
Plan or any Award hereunder.

5.             Grant of Awards; Shares Subject to
the Plan

The Committee may, from
time to time, grant Awards of Options, Stock Appreciation Rights, Restricted
Stock, Restricted Stock Units, Stock Bonuses and/or Performance Compensation
Awards to one or more Eligible Persons; provided, however, that:

(a)           Subject to Section 13, the aggregate
number of shares of Stock in respect of which Awards may be granted under the
Plan is 26,344,000
shares;

(b)           Shares of Stock shall be deemed to
have been used in settlement of Awards whether they are actually delivered or
the Fair Market Value equivalent of such shares is paid in cash; provided,
however, that shares of Stock delivered (either directly or by means of
attestation) in full or partial payment of the Option Price in accordance with
Section 7(b) shall be deducted from the number of shares of Stock delivered to
the Participant pursuant to such Option for purposes of determining the number
of shares of Stock acquired pursuant to the Plan.  In accordance with (and without limitation upon) the preceding
sentence, if and to the extent an Award under the Plan expires, terminates or
is canceled for any reason whatsoever without the Participant having received
any benefit therefrom, the shares covered by such Award shall again become
available for future Awards under the Plan. 
For purposes of the foregoing sentence, a Participant shall not be
deemed to have received any “benefit” (i) in the case of forfeited Restricted
Stock Awards by reason of having enjoyed voting rights and dividend rights
prior to the date of forfeiture or (ii) in the case of an Award canceled
pursuant to Section 5(e) by reason of a new Award being granted in substitution
therefor.

(c)           Stock delivered by the Company in
settlement of Awards may be authorized and unissued Stock, Stock held in the
treasury of the Company, Stock purchased on the open market or by private
purchase, or a combination of the foregoing;

(d)           Subject to Section 13, no person may
be granted Options or SARs under the Plan during any calendar year with respect
to more than 3,000,000 shares of Stock; and

(e)           Without limiting the generality of
the preceding provisions of this Section 5, the Committee may, but solely with
the Participant’s consent, agree to cancel any Award under the Plan and issue a
new Award in substitution therefor upon such terms as the Committee may in its
sole discretion determine, provided that the substituted Award satisfies all
applicable Plan requirements and the requirements of any 

 

11

 

stock exchange and stock
quotation system on or over which the Stock is listed or traded, as applicable,
as of the date such new Award is granted.

6.             Eligibility

Participation shall be
limited to Eligible Persons who have entered into an Award agreement or who
have received written notification from the Committee, or from a person
designated by the Committee, that they have been selected to participate in the
Plan.

7.             Options

The Committee is
authorized to grant one or more Incentive Stock Options or Nonqualified Stock
Options to any Eligible Person; provided, however, that no
Incentive Stock Option shall be granted to any Eligible Person who is not an
employee of the Company or a Parent or Subsidiary.  Each Option so granted shall be subject to the conditions set
forth in this Section 7, or to such other conditions as may be reflected in the
applicable Stock Option Agreement.

(a)           Option
Price.  The exercise price (“Option
Price”) per share of Stock for each Option shall be set by the Committee at
the time of grant but shall not be less than (i) in the case of an
Incentive Stock Option, and subject to Section 7(e), the Fair Market Value
of a share of Stock on the Date of Grant, and (ii) in the case of a
Nonqualified Stock Option, the par value of a share of Stock; provided, however,
that (A) all Options intended to qualify as “performance-based compensation”
under Section 162(m) of the Code (other than those intended to be
Performance Compensation Awards) and (B) Director Stock Options shall have an
Option Price per share of Stock no less than the Fair Market Value of a share
of Stock on the Date of Grant.

(b)           Manner
of Exercise and Form of Payment.  No shares of Stock shall be delivered pursuant to any exercise of
an Option until payment in full of the Option Price therefor is received by the
Company.  Options which have become
exercisable may be exercised by delivery of written notice of exercise to the
Committee accompanied by payment of the Option Price.  The Option Price shall be payable (i) in cash and/or shares of
Stock valued at the Fair Market Value at the time the Option is exercised
(including by means of attestation of ownership of a sufficient number of
shares of Stock in lieu of actual delivery of such shares to the Company); provided,
that such shares of Stock are Mature Shares, (ii) in the discretion of the
Committee, either (A) in other property having a fair market value on the date
of exercise equal to the Option Price or (B) by delivering to the Committee a
copy of irrevocable instructions to a stockbroker to deliver promptly to the
Company an amount of loan proceeds, or proceeds from the sale of the Stock
subject to the Option, sufficient to pay the Option Price or (iii) by such
other method as the Committee may allow. 
Notwithstanding the foregoing, in no event shall a Participant be
permitted to exercise an Option in the manner described in clause (ii) or (iii)
of the preceding sentence if the Committee determines that exercising an Option
in such manner would violate the Sarbanes-Oxley Act of 2002, or any other
applicable law or the applicable rules and regulations of the Securities and
Exchange 

 

12

 

Commission or the
applicable rules and regulations of any securities exchange or inter dealer
quotation system on which the securities of the Company or any Affiliates are
listed or traded.

(c)           Vesting,
Option Period and Expiration. 
Options, other than Director Stock Options, shall vest and become
exercisable in such manner and on such date or dates determined by the
Committee and shall expire after such period, not to exceed ten years, as may
be determined by the Committee (the “Option Period”); provided, however,
that notwithstanding any vesting dates set by the Committee, the Committee may,
in its sole discretion, accelerate the exercisability of any Option, which
acceleration shall not affect the terms and conditions of such Option other
than with respect to exercisability.  If
an Option is exercisable in installments, such installments or portions thereof
which become exercisable shall remain exercisable until the Option expires.

(d)           Stock
Option Agreement - Other Terms and Conditions.   Each Option granted under the Plan shall be
evidenced by a Stock Option Agreement. 
Except as specifically provided otherwise in such Stock Option
Agreement, each Option granted under the Plan shall be subject to the following
terms and conditions:

(i)            Each
Option or portion thereof that is exercisable shall be exercisable for the full
amount or for any part thereof.

(ii)           No
shares of Stock shall be delivered pursuant to any exercise of an Option until
the Company has received full payment of the Option Price therefor. Each Option
shall cease to be exercisable, as to any share of Stock, when the Participant
purchases the share or exercises a related SAR or when the Option expires.

(iii)          Subject
to Section 12(k), Options shall not be transferable by the Participant except
by will or the laws of descent and distribution and shall be exercisable during
the Participant’s lifetime only by him.

(iv)          Each
Option (other than Director Stock Options) shall vest and become exercisable by
the Participant in accordance with the vesting schedule established by the
Committee and set forth in the Stock Option Agreement.

(v)           At
the time of any exercise of an Option, the Committee may, in its sole
discretion, require a Participant to deliver to the Committee a written
representation that the shares of Stock to be acquired upon such exercise are
to be acquired for investment and not for resale or with a view to the
distribution thereof and any other representation deemed necessary by the
Committee to ensure compliance with all applicable federal and state securities
laws.  Upon such a request by the
Committee, delivery of such representation prior to the delivery of any shares
issued upon exercise of an Option shall be a condition precedent to the right
of the Participant or such other person to purchase any 

 

13

 

shares.  In the event
certificates for Stock are delivered under the Plan with respect to which such
investment representation has been obtained, the Committee may cause a legend
or legends to be placed on such certificates to make appropriate reference to
such representation and to restrict transfer in the absence of compliance with
applicable federal or state securities laws.

(vi)          Each
Participant awarded an Incentive Stock Option under the Plan shall notify the
Company in writing immediately after the date he or she makes a disqualifying
disposition of any Stock acquired pursuant to the exercise of such Incentive
Stock Option.  A disqualifying
disposition is any disposition (including any sale) of such Stock before the
later of (A) two years after the Date of Grant of the Incentive Stock Option or
(B) one year after the date the Participant acquired the Stock by exercising
the Incentive Stock Option.  The Company
may, if determined by the Committee and in accordance with procedures
established by it, retain possession of any Stock acquired pursuant to the
exercise of an Incentive Stock Option as agent for the applicable Participant
until the end of the period described in the preceding sentence, subject to
complying with any instructions from such Participant as to the sale of such
Stock.

(vii)         An
Option Agreement may, but need not, include a provision whereby a Participant
may elect, at any time before the termination of the Participant’s employment
with the Company, to exercise the Option as to any part or all of the shares of
Stock subject to the Option prior to the full vesting of the Option.  Any unvested shares of Stock so purchased
may be subject to a share repurchase option in favor of the Company or to any
other restriction the Committee determines to be appropriate.  The Company shall not exercise its
repurchase option until at least six (6) months (or such longer or shorter
period of time required to avoid a charge to earnings for financial accounting
purposes) have elapsed following the exercise of the Option unless the
Committee otherwise specifically provides in an Stock Option Agreement.

(e)           Incentive
Stock Option Grants to 10% Stockholders.  Notwithstanding anything to the contrary in this Section 7, if an
Incentive Stock Option is granted to a Participant who owns stock representing
more than ten percent of the voting power of all classes of stock of the
Company or of a Subsidiary or Parent, the Option Period shall not exceed five
years from the Date of Grant of such Option and the Option Price shall be at
least 110 percent of the Fair Market Value (on the Date of Grant) of the Stock
subject to the Option.

(f)            $100,000
Per Year Limitation for Incentive Stock Options.  To the extent the aggregate Fair Market
Value (determined as of the Date of Grant) of Stock for which Incentive Stock
Options are exercisable for the first time by any Participant during any
calendar year (under all plans of the Company) exceeds $100,000, such excess
Incentive Stock Options shall be treated as Nonqualified Stock Options.

 

14

 

(g)           Director
Stock Options.

(i)            Notwithstanding any of this Section
7 to the contrary:

(A)          On
the effective date of the initial public offering of the Common Stock, each
Non-Employee Director shall be automatically granted without further action by
the Committee a Nonqualified Stock Option to purchase such number of shares of
Stock as shall be determined by the Board to be necessary for such Nonqualified
Stock Option to have an aggregate grant date value (based on the Black-Scholes
option valuation model) of $100,000; and

(B)           On
the date any person first becomes a Non-Employee Director following the
effective date of the initial public offering of the Common Stock, such person
shall be automatically granted without further action by the Committee a
Nonqualified Stock Option to purchase such number of shares of Stock as shall
be determined by the Board to be necessary for such Nonqualified Stock Option
to have an aggregate grant date value (based on the Black-Scholes option
valuation model) of $100,000.

(ii)           All Options granted to Non-Employee
Directors pursuant to Section 7(h)(i) shall hereinafter be referred to as “Director
Stock Options” and shall be subject to the following conditions:

(A)          Option Price.  All Directors Stock Options shall have an Option Price per share
equal to the Fair Market Value of a share of Stock on the Date of Grant.

(B)           Vesting. 
All Director Stock Options shall vest and become exercisable over a
period of five years at the rate of 20% on each of the five consecutive anniversaries
of the applicable Date of Grant, provided the Non-Employee Director’s services
as a director continues through each such anniversary.

(C)           Term. 
The term of each Director Stock Option (the “Director Option Term”),
after which each such Director Stock Option shall expire, shall be ten years
from the Date of Grant.

(D)          Expiration.  If prior to the expiration of the Director Option Term of a
Director Stock Option a Non-Employee Director shall cease to be a member of the
Board, the Director Stock Option shall expire on the earlier of the expiration
of the Director Option Term or (i) one year after 

 

15

 

                such
cessation on account of the death of the Non-Employee Director or (ii) three
months after the date of such cessation for any other reason.  In the event a Non-Employee Director ceases
to be a member of the Board for any reason, any unexpired Director Stock Option
shall thereafter be exercisable until its expiration only to the extent that
such Option was exercisable at the time of such cessation, except in the case
of a cessation on account of the death of the Non-Employee Director, in which
case such Option shall be fully exercisable.

(E)           Director Stock Option Agreement.  Each Director Stock Option shall be
evidenced by a Director Stock Option Agreement, which shall contain such
additional provisions as may be determined by the Board.

8.             Stock Appreciation Rights

Any Option granted under
the Plan may include SARs, either at the Date of Grant or, except in the case
of an Incentive Stock Option, by subsequent amendment.  The Committee also may award SARs to
Eligible Persons independent of any Option. 
A SAR shall be subject to such terms and conditions not inconsistent
with the Plan as the Committee shall impose, including, but not limited to, the
following:

(a)           Vesting, Transferability and Expiration.  A SAR granted in connection with an Option
shall become exercisable, be transferable and shall expire according to the
same vesting schedule, transferability rules and expiration provisions as the
corresponding Option.  A SAR granted
independent of an Option shall become exercisable, be transferable and shall
expire in accordance with a vesting schedule, transferability rules and
expiration provisions as established by the Committee and reflected in an Award
agreement.

(b)           Automatic exercise.  If on the last day of the Option Period (or
in the case of a SAR independent of an option, the period established by the
Committee after which the SAR shall expire), the Fair Market Value exceeds the
Strike Price, the Participant has not exercised the SAR or the corresponding
Option, and neither the SAR nor the corresponding Option has expired, such SAR
shall be deemed to have been exercised by the Participant on such last day and
the Company shall make the appropriate payment therefor.

(c)           Payment. 
Upon the exercise of a SAR, the Company shall pay to the Participant an
amount equal to the number of shares subject to the SAR multiplied by the
excess, if any, of the Fair Market Value of one share of Stock on the exercise
date over the Strike Price.  The Company
shall pay such excess in cash, in shares of Stock valued at Fair Market Value,
or any combination thereof, as determined by the Committee.  Fractional shares shall be settled in cash.

 

16

 

(d)           Method of Exercise.  A Participant may exercise a SAR at such
time or times as may be determined by the Committee at the time of grant by
filing an irrevocable written notice with the Committee or its designee,
specifying the number of SARs to be exercised, and the date on which such SARs
were awarded.

(e)           Expiration.  Except as otherwise provided in the case of SARs granted in
connection with Options, a SAR shall expire on a date designated by the
Committee which is not later than ten years after the Date of Grant of the SAR.

9.             Restricted Stock and Restricted
Stock Units

(a)           Award of Restricted Stock and Restricted Stock Units.

(i)            The
Committee shall have the authority (A) to grant Restricted Stock and
Restricted Stock Units to Eligible Persons, (B) to issue or transfer
Restricted Stock to Participants, and (C) to establish terms, conditions
and restrictions applicable to such Restricted Stock and Restricted Stock
Units, including the Restricted Period, as applicable, which may differ with
respect to each grantee, the time or times at which Restricted Stock or
Restricted Stock Units shall be granted or become vested and the number of
shares or units to be covered by each grant.

(ii)           Each
Participant granted Restricted Stock shall execute and deliver to the Company
an Award agreement with respect to the Restricted Stock setting forth the
restrictions and other terms and conditions applicable to such Restricted
Stock.  If the Committee determines that
the Restricted Stock shall be held in escrow rather than delivered to the
Participant pending the release of the applicable restrictions, the Committee
may require the Participant to additionally execute and deliver to the Company
(A) an escrow agreement satisfactory to the Committee and (B) the appropriate
blank stock powers with respect to the Restricted Stock covered by such
agreement.  If a Participant shall fail
to execute an agreement evidencing an Award of Restricted Stock and, if
applicable, an escrow agreement and stock powers, the Award shall be null and
void.  Subject to the restrictions set
forth in Section 9(b), the Participant generally shall have the rights and
privileges of a stockholder as to such Restricted Stock, including the right to
vote such Restricted Stock.  At the
discretion of the Committee, cash dividends and stock dividends with respect to
the Restricted Stock may be either currently paid to the Participant or withheld
by the Company for the Participant’s account, and interest may be credited on
the amount of cash dividends withheld at a rate and subject to such terms as
determined by the Committee.  The cash
dividends or stock dividends so withheld by the Committee and attributable to
any particular share of Restricted Stock (and earnings thereon, if applicable)
shall be distributed to the Participant upon the release of restrictions on
such share and, if such share is forfeited, the Participant shall have no right
to such cash dividends, stock dividends or earnings.

 

17

 

(iii)          Upon
the grant of Restricted Stock, the Committee shall cause a stock certificate
registered in the name of the Participant to be issued and, if it so
determines, deposited together with the stock powers with an escrow agent
designated by the Committee.  If an
escrow arrangement is used, the Committee may cause the escrow agent to issue
to the Participant a receipt evidencing any stock certificate held by it,
registered in the name of the Participant.

(iv)          The
terms and conditions of a grant of Restricted Stock Units shall be reflected in
a written Award agreement.  No shares of
Stock shall be issued at the time a Restricted Stock Unit is granted, and the
Company will not be required to set aside a fund for the payment of any such
Award.  At the discretion of the
Committee, each Restricted Stock Unit (representing one share of Stock) may be
credited with cash and stock dividends paid by the Company in respect of one
share of Stock (“Dividend Equivalents”).  At the discretion of the Committee, Dividend Equivalents may be
either currently paid to the Participant or withheld by the Company for the
Participant’s account, and interest may be credited on the amount of cash
Dividend Equivalents withheld at a rate and subject to such terms as determined
by the Committee.  Dividend Equivalents
credited to a Participant’s account and attributable to any particular
Restricted Stock Unit (and earnings thereon, if applicable) shall be
distributed to the Participant upon settlement of such Restricted Stock Unit
and, if such Restricted Stock Unit is forfeited, the Participant shall have no
right to such Dividends Equivalents.

(b)           Restrictions.

(i)            Restricted
Stock awarded to a Participant shall be subject to the following restrictions
until the expiration of the Restricted Period, and to such other terms and
conditions as may be set forth in the applicable Award agreement: (A) if an
escrow arrangement is used, the Participant shall not be entitled to delivery
of the stock certificate; (B) the shares shall be subject to the restrictions
on transferability set forth in the Award agreement; (C) the shares shall be
subject to forfeiture to the extent provided in Section 9(d) and the applicable
Award agreement; and (D) to the extent such shares are forfeited, the stock
certificates shall be returned to the Company, and all rights of the
Participant to such shares and as a shareholder shall terminate without further
obligation on the part of the Company.

(ii)           Restricted
Stock Units awarded to any Participant shall be subject to (A) forfeiture
until the expiration of the Restricted Period, and satisfaction of any
applicable Performance Goals during such period, to the extent provided in the
applicable Award agreement, and to the extent such Restricted Stock Units are
forfeited, all rights of the Participant to such Restricted Stock Units shall
terminate without further obligation on the part of the Company and
(B) such other terms and conditions as may be set forth in the applicable
Award agreement.

(iii)          The
Committee shall have the authority to remove any or all of the restrictions on
the Restricted Stock and Restricted Stock Units whenever it may 

 

18

 

determine that, by reason of changes in applicable laws or other
changes in circumstances arising after the date of the Restricted Stock or
Restricted Stock Units are granted, such action is appropriate.

(c)           Restricted
Period.  The Restricted
Period of Restricted Stock and Restricted Stock Units shall commence on the
Date of Grant and shall expire from time to time as to that part of the
Restricted Stock and Restricted Stock Units indicated in a schedule established
by the Committee in the applicable Award agreement.

(d)           Delivery
of Restricted Stock and Settlement of Restricted Stock Units.  Upon the expiration of the Restricted Period
with respect to any shares of Restricted Stock, the restrictions set forth in
Section 9(b) and the applicable Award agreement shall be of no further force or
effect with respect to such shares, except as set forth in the applicable Award
agreement.  If an escrow arrangement is
used, upon such expiration, the Company shall deliver to the Participant, or his
beneficiary, without charge, the stock certificate evidencing the shares of
Restricted Stock which have not then been forfeited and with respect to which
the Restricted Period has expired (to the nearest full share) and any cash
dividends or stock dividends credited to the Participant’s account with respect
to such Restricted Stock and the interest thereon, if any.

Upon the expiration of
the Restricted Period with respect to any outstanding Restricted Stock Units,
the Company shall deliver to the Participant, or his beneficiary, without
charge, one share of Stock for each such outstanding Restricted Stock Unit
(“Vested Unit”) and cash equal to any Dividend Equivalents credited with
respect to each such Vested Unit in accordance with Section 9(a)(iv) hereof and
the interest thereon, if any; provided, however, that, if
explicitly provided in the applicable Award agreement, the Committee may, in
its sole discretion, elect to (i) pay cash or part cash and part Stock in lieu
of delivering only shares of Stock for Vested Units or (ii) delay the delivery
of Stock (or cash or part Stock and part cash, as the case may be) beyond the
expiration of the Restricted Period.  If
a cash payment is made in lieu of delivering shares of Stock, the amount of
such payment shall be equal to the Fair Market Value of the Stock as of the
date on which the Restricted Period lapsed with respect to such Vested Unit.

(e)           Stock
Restrictions.  Each
certificate representing Restricted Stock awarded under the Plan shall bear a
legend substantially in the form of the following until the lapse of all
restrictions with respect to such Stock as well as any other information the
Company deems appropriate:

Transfer of this certificate and the shares
represented hereby is restricted pursuant to the terms of the Las Vegas Sands
Corp. 2004 Equity Award Plan and a Restricted Stock Purchase and Award
Agreement, dated as of _____________, between Las Vegas Sands Corp. and
__________________.  A copy of such Plan
and Agreement is on file at the offices of Las Vegas Sands Corp.

 

19

 

Stop transfer orders
shall be entered with the Company’s transfer agent and registrar against the
transfer of legended securities.

(f)            Director
Restricted Stock. 
Notwithstanding any of this Section 9 to the contrary, on the date of
each of the Company’s annual meetings of stockholders following the initial
public offering of the Common Stock, each Non-Employee Director shall be
automatically granted, without further action by the Committee, shares of
Restricted Stock having an aggregate Fair Market Value on the Date of Grant
equal to the annual cash retainer payable to the Non-Employee Director in
respect of the year commencing on the date of such annual meeting.  All such shares of Restricted Stock granted
to Non-Employee Directors shall hereinafter be referred to as “Director
Restricted Stock” and shall contain the following provisions:

(i)            Restricted Period.  The Restricted Period in respect of Director
Restricted Stock shall expire on the one year anniversary of the applicable
Date of Grant; provided, that the Non-Employee Director continues to
serve as a member of the Board through such anniversary or, if earlier, the
date of the Non-Employee Director’s death; provided, further,
that Director Restricted Stock as to which the Restricted Period has expired
may not be sold or, other than as allowed under Section 12(k), transferred by a
Non-Employee Director while a member of the Board ); provided, however, that a
Non-Employee Director shall be permitted to sell that number of vested shares
of Restricted Stock having an aggregate Fair Market Value equal to the amount
of federal, state and local taxes incurred by the Participant as a result of
the vesting of such shares of Restricted Stock.

(ii)           Forfeiture.  If a Non-Employee Director shall cease to be a member of the
Board for any reason prior to the expiration of the Restricted Period as to any
Director Restricted Stock, such Director Restricted Stock shall be forfeited in
its entirety.

(iii)          Director Restricted Stock Agreement.  Each Award of Director Restricted Stock
shall be evidenced by a Director Restricted Stock Agreement, which shall
contain such additional provisions as may be determined by the Board.

10.          Stock Bonus Awards

The Committee may issue
unrestricted Stock, or other Awards denominated in Stock, under the Plan to
Eligible Persons, alone or in tandem with other Awards, in such amounts and
subject to such terms and conditions as the Committee shall from time to time
in its sole discretion determine.  A
Stock Bonus Award under the Plan shall be granted as, or in payment of, a
bonus, or to provide incentives or recognize special achievements or
contributions.

11.          Performance Compensation Awards

 

20

 

(a)           General.  The Committee shall have the authority, at
the time of grant of any Award described in Sections 7 through 10 (other than
Options and Stock Appreciation Rights granted with an exercise price or grant
price, as the case may be, equal to or greater than the Fair Market Value per
share of Stock on the date of grant), to designate such Award as a Performance
Compensation Award in order to qualify such Award as “performance-based
compensation” under Section 162(m) of the Code.

(b)           Eligibility.  The Committee will, in its sole discretion,
designate within the first 90 days of a Performance Period (or, if longer or
shorter, within the maximum period allowed under Section 162(m) of the Code)
which Participants will be eligible to receive Performance Compensation Awards in
respect of such Performance Period. 
However, designation of a Participant eligible to receive an Award
hereunder for a Performance Period shall not in any manner entitle the
Participant to receive payment in respect of any Performance Compensation Award
for such Performance Period.  The
determination as to whether or not such Participant becomes entitled to payment
in respect of any Performance Compensation Award shall be decided solely in
accordance with the provisions of this Section 11.  Moreover, designation of a Participant eligible to receive an
Award hereunder for a particular Performance Period shall not require
designation of such Participant eligible to receive an Award hereunder in any
subsequent Performance Period and designation of one person as a Participant
eligible to receive an Award hereunder shall not require designation of any
other person as a Participant eligible to receive an Award hereunder in such
period or in any other period.

(c)           Discretion
of Committee with Respect to Performance Compensation Awards.  With regard to a particular Performance
Period, the Committee shall have full discretion to select the length of such
Performance Period, the type(s) of Performance Compensation Awards to be
issued, the Performance Criteria that will be used to establish the Performance
Goal(s), the kind(s) and/or level(s) of the Performance Goals(s) that is(are)
to apply to the Company and the Performance Formula.  Within the first 90 days of a Performance Period (or, if longer
or shorter, within the maximum period allowed under Section 162(m) of the
Code), the Committee shall, with regard to the Performance Compensation Awards
to be issued for such Performance Period, exercise its discretion with respect
to each of the matters enumerated in the immediately preceding sentence of this
Section 11(c) and record the same in writing. 
 

(d)           Payment
of Performance Compensation Awards

(i)            Condition to Receipt of Payment.  Unless otherwise provided in the applicable
Award agreement, a Participant must be employed by the Company on the last day
of a Performance Period to be eligible for payment in respect of a Performance
Compensation Award for such Performance Period.

(ii)           Limitation.  A Participant shall be eligible to receive payment in respect of
a Performance Compensation Award only to the extent that: (A) the Performance
Goals for such period are achieved; and (B) the Performance Formula as applied
against such Performance Goals determines that all or some 

 

21

 

portion of such Participant’s Performance Award has been earned for the
Performance Period.

(iii)          Certification.  Following the completion of a Performance Period, the Committee
shall review and certify in writing whether, and to what extent, the Performance
Goals for the Performance Period have been achieved and, if so, calculate and
certify in writing that amount of the Performance Compensation Awards earned
for the period based upon the Performance Formula.  The Committee shall then determine the actual size of each
Participant’s Performance Compensation Award for the Performance Period and, in
so doing, may apply Negative Discretion in accordance with Section 11(d)(iv)
hereof, if and when it deems appropriate.

(iv)          Use of Discretion.   In determining the actual size of an
individual Performance Award for a Performance Period, the Committee may reduce
or eliminate the amount of the Performance Compensation Award earned under the
Performance Formula in the Performance Period through the use of Negative
Discretion if, in its sole judgment, such reduction or elimination is
appropriate.  The Committee shall not
have the discretion to (a) grant or provide payment in respect of Performance
Compensation Awards for a Performance Period if the Performance Goals for such
Performance Period have not been attained; or (b) increase a Performance
Compensation Award above the maximum amount payable under Sections 4(a) or
11(d)(vi) of the Plan.

(v)           Timing of Award Payments. Performance
Compensation Awards granted for a Performance Period shall be paid to
Participants as soon as administratively practicable following completion of
the certifications required by this Section 11.

(vi)          Maximum Award Payable.  Notwithstanding any provision contained in
this Plan to the contrary, the maximum Performance Compensation Award payable
to any one Participant under the Plan for a Performance Period is 3,000,000
shares of Stock or, in the event the Performance Compensation Award is paid in
cash, the equivalent cash value thereof on the first or last day of the
Performance Period to which such Award relates, as determined by the
Committee.  Furthermore, any Performance
Compensation Award that has been deferred shall not (between the date as of which
the Award is deferred and the payment date) increase (A) with respect to
Performance Compensation Award that is payable in cash, by a measuring factor
for each fiscal year greater than a reasonable rate of interest set by the
Committee or (B) with respect to a Performance Compensation Award that is
payable in shares of Stock, by an amount greater than the appreciation of a
share of Stock from the date such Award is deferred to the payment date.

12.          General

 

22

 

(a)           Additional
Provisions of an Award. 
Awards to a Participant under the Plan also may be subject to such other
provisions (whether or not applicable to Awards granted to any other
Participant) as the Committee determines appropriate, including, without
limitation, provisions to assist the Participant in financing the purchase of
Stock upon the exercise of Options (provided, that the Committee determines
that providing such financing does not violate the Sarbanes-Oxley Act of 2002),
provisions for the forfeiture of or restrictions on resale or other disposition
of shares of Stock acquired under any Award, provisions giving the Company the
right to repurchase shares of Stock acquired under any Award in the event the
Participant elects to dispose of such shares, provisions allowing the Participant
to elect to defer the receipt of payment in respect of Awards for a specified
period or until a specified event, and provisions to comply with Federal and
state securities laws and Federal and state tax withholding requirements.  Any such provisions shall be reflected in
the applicable Award agreement.

(b)           Privileges
of Stock Ownership.  Except
as otherwise specifically provided in the Plan, no person shall be entitled to
the privileges of ownership in respect of shares of Stock which are subject to Awards
hereunder until such shares have been issued to that person.

(c)           Government
and Other Regulations.  The
obligation of the Company to grant or settle Awards in Stock shall be subject
to all applicable laws, rules, and regulations, and to such approvals by
governmental agencies as may be required. 
Notwithstanding any terms or conditions of any Award to the contrary,
the Company shall be under no obligation to offer to sell or to sell, and shall
be prohibited from offering to sell or selling, any shares of Stock pursuant to
an Award made or granted hereunder unless such shares have been properly
registered for sale pursuant to the Securities Act with the Securities and
Exchange Commission or unless the Company has received an opinion of counsel,
satisfactory to the Company, that such shares may be offered or sold without
such registration pursuant to an available exemption therefrom and the terms
and conditions of such exemption have been fully complied with.  The Company shall be under no obligation to register
for sale under the Securities Act any of the shares of Stock to be offered or
sold under the Plan.  If the shares of
Stock offered for sale or sold under the Plan are offered or sold pursuant to
an exemption from registration under the Securities Act, the Company may
restrict the transfer of such shares and may legend the Stock certificates
representing such shares in such manner as it deems advisable to ensure the
availability of any such exemption.

(d)           Tax
Withholding.

(i)            A
Participant may be required to pay to the Company or any Affiliate, and the
Company or any Affiliate shall have the right and is hereby authorized to
withhold from any shares of Stock or other property deliverable under any Award
or from any compensation or other amounts owing to a Participant, the amount
(in cash, Stock or other property) of any required income tax withholding and
payroll taxes in respect of an Award, its exercise, or any payment or transfer
under an Award or under the Plan and to take such other 

 

23

 

action as may be necessary in the opinion of the Company to satisfy all
obligations for the payment of such withholding and taxes.

(ii)           Without
limiting the generality of clause (i) above, the Committee may, in its sole
discretion, permit a Participant to satisfy, in whole or in part, the foregoing
withholding liability (but no more than the minimum required withholding
liability) by (A) the delivery of Mature Shares owned by the Participant having
a Fair Market Value equal to such withholding liability or (B) having the
Company withhold from the number of shares of Stock otherwise issuable pursuant
to the exercise or settlement of the Award a number of shares with a Fair
Market Value equal to such withholding liability.

(e)           Claim
to Awards and Employment Rights. 
No employee of the Company or an Affiliate, or other person, shall have
any claim or right to be granted an Award under the Plan or, having been
selected for the grant of an Award, to be selected for a grant of any other
Award.  Neither the Plan nor any action
taken hereunder shall be construed as giving any Participant any right to be
retained in the employ or service of the Company or an Affiliate.

(f)            Designation
and Change of Beneficiary. 
Each Participant may file with the Committee a written designation of
one or more persons as the beneficiary who shall be entitled to receive the
amounts payable with respect to an Award, if any, due under the Plan upon his
death.  A Participant may, from time to
time, revoke or change his beneficiary designation without the consent of any
prior beneficiary by filing a new designation with the Committee.  The last such designation received by the
Committee shall be controlling; provided, however, that no
designation, or change or revocation thereof, shall be effective unless
received by the Committee prior to the Participant’s death, and in no event
shall it be effective as of a date prior to such receipt.  If no beneficiary designation is filed by a
Participant, the beneficiary shall be deemed to be his or her spouse or, if the
Participant is unmarried at the time of death, his or her estate.

(g)           Payments
to Persons Other Than Participants. 
If the Committee shall find that any person to whom any amount is
payable under the Plan is unable to care for his affairs because of illness or
accident, or is a minor, or has died, then any payment due to such person or
his estate (unless a prior claim therefor has been made by a duly appointed
legal representative) may, if the Committee so directs the Company, be paid to
his spouse, child, relative, an institution maintaining or having custody of
such person, or any other person deemed by the Committee to be a proper
recipient on behalf of such person otherwise entitled to payment.  Any such payment shall be a complete
discharge of the liability of the Committee and the Company therefor.

(h)           No
Liability of Committee Members. 
No member of the Committee shall be personally liable by reason of any
contract or other instrument executed by such member or on his behalf in his
capacity as a member of the Committee nor for any mistake of judgment made in
good faith, and the Company shall indemnify and hold harmless each member of
the Committee and each other employee, officer or 

 

24

 

director of the Company
to whom any duty or power relating to the administration or interpretation of
the Plan may be allocated or delegated, against any cost or expense (including
counsel fees) or liability (including any sum paid in settlement of a claim)
arising out of any act or omission to act in connection with the Plan unless
arising out of such person’s own fraud or willful bad faith; provided, however,
that approval of the Board shall be required for the payment of any amount in
settlement of a claim against any such person. 
The foregoing right of indemnification shall not be exclusive of any
other rights of indemnification to which such persons may be entitled under the
Company’s Articles of Incorporation or By-Laws, as a matter of law, or
otherwise, or any power that the Company may have to indemnify them or hold
them harmless.

(i)            Governing
Law.  The Plan shall be
governed by and construed in accordance with the internal laws of the State of
Nevada applicable to contracts made and performed wholly within the State of
Nevada and, to the extent applicable, the Nevada Gaming Laws.

(j)            Funding.  No provision of the Plan shall require the
Company, for the purpose of satisfying any obligations under the Plan, to
purchase assets or place any assets in a trust or other entity to which
contributions are made or otherwise to segregate any assets, nor shall the
Company maintain separate bank accounts, books, records or other evidence of
the existence of a segregated or separately maintained or administered fund for
such purposes.  Participants shall have
no rights under the Plan other than as unsecured general creditors of the
Company, except that insofar as they may have become entitled to payment of
additional compensation by performance of services, they shall have the same
rights as other employees under general law.

(k)           Nontransferability.

(i)            Each
Award shall be exercisable only by a Participant during the Participant’s
lifetime, or, if permissible under applicable law, by the Participant’s legal
guardian or representative.  No Award
may be assigned, alienated, pledged, attached, sold or otherwise transferred or
encumbered by a Participant other than by will or by the laws of descent and
distribution and any such purported assignment, alienation, pledge, attachment,
sale, transfer or encumbrance shall be void and unenforceable against the
Company or an Affiliate; provided that the designation of a beneficiary shall
not constitute an assignment, alienation, pledge, attachment, sale, transfer or
encumbrance.

(ii)           Notwithstanding
the foregoing, subject to compliance with applicable law, the Committee may, in
its sole discretion, permit Awards other than Incentive Stock Options to be
transferred by a Participant, without consideration, subject to such rules as
the Committee may adopt consistent with any applicable Award agreement to
preserve the purposes of the Plan, to:

(A)  any person
who is a “family member” of the Participant, as such term is used in the
instructions to Form S-8 (collectively, the “Immediate Family Members”);

 

25

 

(B)   a trust
solely for the benefit of the Participant and his or her Immediate Family
Members;

(C)   a
partnership or limited liability company whose only partners or shareholders
are the Participant and his or her Immediate Family Members; or

(D)  any other
transferee as may be approved either (a) by the Board or the Committee in
its sole discretion, or (b) as provided in the applicable Award agreement;

(each transferee
described in clauses (A), (B), (C)  and
(D) above is hereinafter referred to as a “Permitted Transferee”); provided
that the Participant gives the Committee advance written notice describing the
terms and conditions of the proposed transfer and the Committee notifies the
Participant in writing that such a transfer would comply with the requirements
of the Plan.

(iii)          The
terms of any Award transferred in accordance with the immediately preceding
sentence shall apply to the Permitted Transferee and any reference in the Plan,
or in any applicable Award agreement, to a Participant shall be deemed to refer
to the Permitted Transferee, except that (A) Permitted Transferees shall not be
entitled to transfer any Award, other than by will or the laws of descent and
distribution; (B) Permitted Transferees shall not be entitled to exercise any
transferred Option unless there shall be in effect a registration statement on
an appropriate form covering the shares of Stock to be acquired pursuant to the
exercise of such Option if the Committee determines, consistent with any
applicable Award agreement, that such a registration statement is necessary or
appropriate, (C) the Committee or the Company shall not be required to provide
any notice to a Permitted Transferee, whether or not such notice is or would
otherwise have been required to be given to the Participant under the Plan or
otherwise, and (D) the consequences of the termination of the Participant’s
employment by, or services to, the Company or an Affiliate under the terms of
the Plan and the applicable Award agreement shall continue to be applied with
respect to the Participant, including, without limitation, that an Option shall
be exercisable by the Permitted Transferee only to the extent, and for the
periods, specified in the Plan and the applicable Award agreement.

(l)            Reliance
on Reports.  Each member of
the Committee and each member of the Board shall be fully justified in acting
or failing to act, as the case may be, and shall not be liable for having so
acted or failed to act in good faith, in reliance upon any report made by the
independent public accountant of the Company and its Affiliates and/or any
other information furnished in connection with the Plan by any person or
persons other than himself.

(m)          Relationship
to Other Benefits.  No
payment under the Plan shall be taken into account in determining any benefits
under any pension, 

 

26

 

retirement, profit
sharing, group insurance or other benefit plan of the Company except as
otherwise specifically provided in such other plan.

(n)           Expenses.  The expenses of administering the Plan shall
be borne by the Company and Affiliates.

(o)           Pronouns.  Masculine pronouns and other words of
masculine gender shall refer to both men and women.

(p)           Titles
and Headings.  The titles and
headings of the sections in the Plan are for convenience of reference only, and
in the event of any conflict, the text of the Plan, rather than such titles or
headings shall control.

(q)           Termination
of Employment.  Unless an
applicable Award agreement provides otherwise, for purposes of the Plan a
person who transfers from employment or service with the Company to employment
or service with an Affiliate or vice versa shall not be deemed to have
terminated employment or service with the Company or an Affiliate.

(r)            Severability.  If any provision of the Plan or any Award
agreement is or becomes or is deemed to be invalid, illegal, or unenforceable
in any jurisdiction or as to any person or Award, or would disqualify the Plan
or any Award under any law deemed applicable by the Committee, such provision
shall be construed or deemed amended to conform to the applicable laws, or if
it cannot be construed or deemed amended without, in the determination of the
Committee, materially altering the intent of the Plan or the Award, such
provision shall be stricken as to such jurisdiction, person or Award and the
remainder of the Plan and any such Award shall remain in full force and effect.

13.          Changes in Capital Structure

Awards granted under the
Plan and any agreements evidencing such Awards, the maximum number of shares of
Stock subject to all Awards stated in Section 5(a) and the maximum number of
shares of Stock with respect to which any one person may be granted Awards
during any period stated in Sections 5(d) or 11(d)(vi) shall be subject to
adjustment or substitution, as determined by the Committee in its sole
discretion, as to the number, price or kind of a share of Stock or other consideration
subject to such Awards or as otherwise determined by the Committee to be
equitable (i) in the event of changes in the outstanding Stock or in the
capital structure of the Company by reason of stock or extraordinary cash
dividends, stock splits, reverse stock splits, recapitalization,
reorganizations, mergers, consolidations, combinations, exchanges, or other
relevant changes in capitalization occurring after the Date of Grant of any
such Award or (ii) in the event of any change in applicable laws or any change
in circumstances which results in or would result in any substantial dilution
or enlargement of the rights granted to, or available for, Participants, or
which otherwise warrants equitable adjustment because it interferes with the
intended operation of the Plan.  Any
adjustment in Incentive Stock Options under this Section 13 shall be made only
to the 

 

27

 

extent not constituting a
“modification” within the meaning of Section 424(h)(3) of the Code, and any
adjustments under this Section 13 shall be made in a manner which does not
adversely affect the exemption provided pursuant to Rule 16b-3 under the
Exchange Act.  Further, with respect to
Awards intended to qualify as “performance-based compensation” under
Section 162(m) of the Code, such adjustments or substitutions shall be
made only to the extent that the Committee determines that such adjustments or
substitutions may be made without causing the Company to be denied a tax
deduction on account of Section 162(m) of the Code.  The Company shall give each Participant notice of an adjustment
hereunder and, upon notice, such adjustment shall be conclusive and binding for
all purposes.

Notwithstanding the
above, in the event of any of the following:

A.            The Company is merged or consolidated with another
corporation or entity and, in connection therewith, consideration is received
by shareholders of the Company in a form other than stock or other equity
interests of the surviving entity;

B.            All or substantially all of the assets of the Company are
acquired by another person;

C.            The reorganization or liquidation of the Company; or

D.            The Company shall enter into a written agreement to
undergo an event described in clauses A, B or C above,

then the Committee may,
in its discretion and upon at least 10 days advance notice to the affected
persons, cancel any outstanding Awards and cause the holders thereof to be
paid, in cash or stock, or any combination thereof, the value of such Awards
based upon the price per share of Stock received or to be received by other
shareholders of the Company in the event. 
The terms of this Section 13 may be varied by the Committee in any
particular Award agreement.

14.          Effect of Change in Control

(a)           Except to the extent provided in a
particular Award agreement:

(i)            In
the event of a Change in Control, notwithstanding any provision of the Plan or
any applicable Award agreement to the contrary, the Committee may in its
discretion provide that all Options and SARs shall become immediately
exercisable with respect to 100 percent of the shares subject to such Option or
SAR, and/or that the Restricted Period shall expire immediately with respect to
100 percent of such shares of Restricted Stock or Restricted Stock Units
(including a waiver of any applicable Performance Goals).  To the extent practicable, such acceleration
of exercisability and expiration of the Restricted Period (as applicable) shall
occur in a manner and at a time which allows affected 

 

28

 

Participants the ability to participate in the Change in Control
transaction with respect to the Stock subject to their Awards.

(ii)           In
the event of a Change in Control, all incomplete Performance Periods in effect
on the date the Change in Control occurs shall end on the date of such change,
and the Committee shall (A) determine the extent to which Performance Goals
with respect to each such Award Period have been met based upon such audited or
unaudited financial information then available as it deems relevant, (B) cause
to be paid to each Participant partial or full Awards with respect to
Performance Goals for each such Award Period based upon the Committee’s
determination of the degree of attainment of Performance Goals, and (C) cause
all previously deferred Awards to be settled in full as soon as possible.

(b)           In addition, in the event of a Change
in Control, the Committee may in its discretion and upon at least 10 days’
advance notice to the affected persons, cancel any outstanding Awards and pay
to the holders thereof, in cash or stock, or any combination thereof, the value
of such Awards based upon the price per share of Stock received or to be
received by other shareholders of the Company in the event.

(c)           The obligations of the Company under
the Plan shall be binding upon any successor corporation or organization
resulting from the merger, consolidation or other reorganization of the
Company, or upon any successor corporation or organization succeeding to
substantially all of the assets and business of the Company.  The Company agrees that it will make
appropriate provisions for the preservation of Participants’ rights under the
Plan in any agreement or plan which it may enter into or adopt to effect any
such merger, consolidation, reorganization or transfer of assets.

15.          Nonexclusivity of the Plan

Neither the adoption of
this Plan by the Board nor the submission of this Plan to the stockholders of
the Company for approval shall be construed as creating any limitations on the
power of the Board to adopt such other incentive arrangements as it may deem
desirable, including, without limitation, the granting of stock options
otherwise than under this Plan, and such arrangements may be either applicable
generally or only in specific cases.

16.          Amendments and Termination

(a)           Amendment
and Termination of the Plan. 
The Board may amend, alter, suspend, discontinue, or terminate the Plan
or any portion thereof at any time; provided, that no such amendment,
alteration, suspension, discontinuation or termination shall be made without
shareholder approval if such approval is necessary to comply with any tax or
regulatory requirement applicable to the Plan (including as necessary to comply
with any applicable stock exchange listing requirement or to prevent the
Company from being denied a tax deduction on account of Section 162(m) of the
Code); and provided, further, that any such amendment,
alteration, suspension, discontinuance or termination that would impair the
rights of any Participant or any 

 

29

 

holder or beneficiary of
any Award theretofore granted shall not to that extent be effective without the
consent of the affected Participant, holder or beneficiary.  The termination date of the Plan, following
which no Awards may be granted hereunder, is December __, 2014; provided,
that such termination shall not affect Awards then outstanding, and the terms
and conditions of the Plan shall continue to apply to such Awards.

(b)           Amendment
of Award Agreements.  The
Committee may, to the extent consistent with the terms of any applicable Award
agreement, waive any conditions or rights under, amend any terms of, or alter,
suspend, discontinue, cancel or terminate, any Award theretofore granted or the
associated Award agreement, prospectively or retroactively; provided that any
such waiver, amendment, alteration, suspension, discontinuance, cancellation or
termination that would impair the rights of any Participant or any holder or
beneficiary of any Option theretofore granted shall not to that extent be
effective without the consent of the affected Participant, holder or
beneficiary; and provided, further, that, without stockholder
approval, (i) no amendment or modification may reduce the Option Price of any
Option and (ii) the Committee may not cancel any outstanding Option and replace
it with a new Option (with a lower Option Price) in a manner which would either
(A) be reportable on the Company’s proxy statement as Options which have been
“repriced” (as such term is used in Item 402 of Regulation S-K promulgated
under the Exchange Act), or (B) result in any Option being accounted for under
the “variable” method for financial statement reporting purposes.

(c)           Section
162(m) Approval.  If so
determined by the Committee, (i) the Plan shall be approved by the stockholders
of the Company no later than the first meeting of stockholders at which
directors are to be elected that occurs after the close of the third calendar
year following the calendar year in which the Company’s initial public offering
occurs, and (ii) the provisions of the Plan regarding Performance Compensation
Awards shall be disclosed to and reapproved by stockholders of the Company no
later than the first stockholder meeting that occurs in the fifth year
following the year that stockholders previously approved such provisions
following the Company’s initial public offering, in each case in order for
certain Awards granted after such time to be exempt from the deduction
limitations of Section 162(m) of the Code. 
Nothing in this Section 16(c), however, shall affect the validity of
Awards granted after such time if such stockholder approval has not been
obtained.

*       *      
*

As adopted by the Board
of Directors of

Las Vegas Sands Corp. at a meeting

held on November 8, 2004.

 

30

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