Document:

SECOND
      AMENDMENT
      TO

    LOAN
      AND SECURITY AGREEMENT

     

    THIS
      SECOND AMENDMENT TO LOAN AND SECURITY AGREEMENT (this “Amendment”)
      is
      entered into this 21st
      day of
      August, 2008, by and between SILICON VALLEY BANK (“Bank”),
      AIRSPAN NETWORKS, INC., a corporation formed under the laws of the State of
      Washington (“US
      Borrower”),
      and
      AIRSPAN COMMUNICATIONS LIMITED,
      a
      company registered under the laws of England and Wales under company number
      03501881 (“UK
      Borrower”;
      US
      Borrower and UK Borrower hereinafter referred to individually and collectively,
      jointly and severally, as “Borrower”).

     

    Recitals

     

    A. Bank
      and
      Borrower have entered into that certain Loan and Security Agreement dated as
      of
      August 1, 2006, as
      amended by that certain First Amendment to Loan and Security Agreement by and
      between Bank and Borrower dated as of August 7, 2007
      (as the
      same may from time to time be further amended, modified, supplemented or
      restated, the “Loan
      Agreement”).

     

    B. Bank
      has
      extended credit to Borrower for the purposes permitted in the Loan
      Agreement.

     

    C. Borrower
      has requested that Bank amend the Loan Agreement to (i) extend the maturity
      date, (ii) adjust the Tangible Net Worth financial covenant, and (iii) make
      certain other revisions to the Loan Agreement as more fully set forth
      herein.

     

    D. Bank
      has
      agreed to so amend certain provisions of the Loan Agreement, but only to the
      extent, in accordance with the terms, subject to the conditions and in reliance
      upon the representations and warranties set forth below.

     

    Agreement

     

    Now,
      Therefore,
      in
      consideration of the foregoing recitals and other good and valuable
      consideration, the receipt and adequacy of which is hereby acknowledged, and
      intending to be legally bound, the parties hereto agree as follows:

     

    1.  Definitions.
      Capitalized terms used but not defined in this Amendment, including its preamble
      and recitals, shall have the meanings given to them in the Loan
      Agreement.

     

    2.  Amendments
      to Loan Agreement.

     

    2.1  Section
      2.4 (Fees).
      Section
      2.4(h) of the Loan Agreement is hereby added in its entirety immediately after
      Section 2.4(g) of the Loan Agreement as follows:

     

    (h) Second
      Supplemental Commitment Fee.
      In
      addition to the commitment fee set forth in Section 2.4(a) and the Supplemental
      Commitment Fee set forth in Section 2.4(g), a fully earned, non-refundable
      supplemental commitment fee (the “Second
      Supplemental Commitment Fee”)
      of One
      Hundred Thousand Dollars ($100,000), due on the Second Supplemental Closing
      Date.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    2.2  Section
      4.1 (Grant
      of Security Interest; Termination
      of Agreement and Security Interest; Termination Fee).
      The
      second paragraph of Section 4.1 of the Loan Agreement is hereby amended in
      its
      entirety and replaced with the following:

     

    This
      Agreement may be terminated prior to the Revolving Line Maturity Date by
      Borrower, effective three (3) Business Days after written notice of termination
      is given to Bank or if Bank’s obligation to fund Credit Extensions terminates
      pursuant to the terms of Section 2.1.1(b). Notwithstanding any such termination,
      Bank’s lien and security interest in the Collateral shall continue until US
      Borrower fully satisfies its Obligations. If this Agreement is terminated prior
      to the Revolving Line Maturity Date at Borrower’s election or at Bank’s election
      due to the occurrence and continuance of an Event of Default, US Borrower shall
      pay to Bank, in addition to the payment of any other expenses or fees
      then-owing, (a) all remaining quarterly installments of the Supplemental
      Commitment Fee, and (b) a termination fee in an amount equal to (i) one percent
      (1.0%) of the Revolving Line if such termination occurs prior to August 1,
      2009
      or (ii) one half of one percent (0.5%) of the Revolving Line if such termination
      occurs on or after August 1, 2009; provided, however, that no termination fee
      shall be charged if the credit facility hereunder terminates on the Revolving
      Line Maturity Date or is replaced with a new facility from Silicon Valley Bank
      or another division thereof. Upon payment in full of the Obligations
and
      at
      such time as Bank’s obligation to make Credit Extensions has terminated, Bank
      shall release its liens and security interests in the Collateral and all rights
      therein shall revert to US Borrower.

     

    2.3  Section
      6.2 (Financial Statements, Reports, Certificates).
      Section
      6.2(c) of the Loan Agreement is hereby amended in its entirety and replaced
      with
      the following:

     

    (c) within
      thirty (30) days after the end of each month, deliver to Bank (A) monthly
      accounts receivable agings, aged by invoice date, (B) monthly accounts payable
      agings, aged by invoice date, and (C) monthly reconciliations of accounts
      receivable agings (aged by invoice date), including (i) KKS receivable aging
      and
      extended term reporting, and general ledger and (ii) Datatell receivable aging
      and extended term reporting, and general ledger;

     

    2.4  Section
      6.9 (Financial Covenants).
      Section
      6.9(a) of the Loan Agreement is hereby amended in its entirety and replaced
      with
      the following:

     

    (a) Tangible
      Net Worth.
      A
      Tangible Net Worth of at least Thirty Million Dollars ($30,000,000) effective
      for the quarter ending June 30, 2008 and as of the last day of each fiscal
      quarter thereafter, plus an amount equal to the sum of (i) fifty percent (50%)
      of quarterly Net Income after the Second Supplemental Closing Date (but not
      to
      be decreased by fifty percent (50%) of quarterly consolidated net loss, if
      any),
      (ii) fifty percent (50%) of the proceeds received by Borrower from the sale
      of
      US Borrower’s capital stock after the Second Supplemental Closing Date and (iii)
      fifty percent (50%) of the principal amount of Subordinated Debt incurred by
      Borrower after the Second Supplemental Closing Date.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    2.5  Section
      13 (Definitions).
      

     

    (a)  The
      following terms and their respective definitions set forth in Section 13.1
      are hereby amended in their entirety and replaced with the following:

     

    “Availability
      Amount”
is
      (a)
      the lesser of (i) the Revolving Line or (ii) the Borrowing Base, minus
      (b) the amount of all outstanding Letters of Credit (including drawn but
      unreimbursed Letters of Credit) plus an amount equal to the Letter of Credit
      Reserves, minus
      (c) the
      FX Reserve, and minus
      (d) the
      outstanding principal balance of any Advances (including any amounts used for
      Cash Management Services).

     

    “Borrowing
      Base”
is
      (a)
      eighty percent (80%) of Eligible Accounts, as determined by Bank from Borrower’s
      most recent Transaction Report, plus
      at all
      times that Borrower has complied with the Contingent Availability Conditions
      and
      remains in compliance with such Contingent Availability Conditions, (b) the
      lesser of (i) sixty percent (60%) of Eligible Inventory (valued at the lower
      of
      cost or wholesale fair market value) as determined by Bank from Borrower’s most
      recent Transaction Report or (ii) Eight Million Dollars ($8,000,000); provided,
      however, that Bank may decrease the foregoing percentages in its good faith
      business judgment based on events, conditions, contingencies, or risks which,
      as
      determined by Bank from the results of any audit by the Bank of the Borrower’s
      Collateral, may adversely affect Collateral.

     

    “Minimum
      Monthly Interest”
means
      at any point of determination an amount equal to the applicable interest rate
      as
      set forth in Section 2.3(a) of this Agreement multiplied by the lesser of (i)
      the maximum available Borrowing Base, or (ii) Ten Million Dollars
      ($10,000,000).

     

    “Revolving
      Line Maturity Date” is
      December 31, 2009.

     

    (b)  Subparts
      (b), (c), (d) and (f) of the definition of “Eligible
      Accounts”
are
      hereby amended in their entirety and replaced with the following:

     

      (b)
      Accounts
      (other than Accounts owing from KKS and Datatell) that the Account Debtor has
      not paid within one hundred twenty (120) days of invoice date;

     

      (c)
      Accounts
      owing from (i) KKS and Datatell that KKS and Datatell have not paid within
      ninety (90) days of the due date;

     

      (d)
      Accounts
      owing
      from an Account Debtor (other than Accounts owing from KKS and Datatell), fifty
      percent (50%) or more of whose Accounts owing have not been paid within one
      hundred twenty (120) days of invoice date, and Accounts owing from KKS and
      Datatell, fifty percent (50%) or more of whose Accounts owing have not been
      paid
      within ninety (90) days of the due date;

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

      (f)
      Accounts
      owing from (i) an Account Debtor, including its Affiliates, whose total
      obligations to Borrower exceed twenty-five (25%) of all Accounts (except for
      Accounts owing from Nortel, Ericsson and Fujitsu at all times that Borrower
      is a
      Net Depositor, for which such percentage is fifty percent (50%)) for the amounts
      that exceed that percentage, unless Bank approves otherwise in writing; and
      (ii)
      KKS in excess of Two Million Dollars ($2,000,000) and Datatell in excess of
      Four
      Million Dollars ($4,000,000), unless Bank approves otherwise in
      writing.

     

    (c)  The
      following terms and their respective definitions are hereby added in
      alphabetical order to Section 13.1 of the Loan Agreement:

     

    “Contingent
      Availability Conditions”
means
      those conditions in which (a) Borrower’s worldwide cash and investments exceeds
      Twenty Million Dollars ($20,000,000) as of the last day of the most recently
      ended fiscal quarter, and (b) Borrower’s cash and investments maintained at Bank
      and Bank’s Affiliates exceeds Fifteen Million Dollars
      ($15,000,000).

     

    “Datatell”
means
      Datatell 3000 de Costa Rica S.A., and any entity that is an Affiliate of
      Datatell 3000 de Costa Rica S.A.

     

    “Eligible
      Inventory”
means,
      at any time, the aggregate of Borrower’s Inventory that (a) consists of raw
      materials or finished goods, in good, new, and salable condition, which is
      not
      perishable, returned, consigned, obsolete, not sellable, damaged, or defective,
      and is not comprised of demonstrative or custom inventory, works in progress,
      packaging or shipping materials, or supplies; (b) meets all applicable
      governmental standards; (c) has been manufactured in compliance with the Fair
      Labor Standards Act; (d) is not subject to any Liens, except the first priority
      Liens granted or in favor of Bank under this Agreement or any of the other
      Loan
      Documents and subclauses (b) and (j) of Permitted Liens; (e) is located at
      Borrower’s principal places of business, warehouses or manufacturing
      subcontractors (or any location permitted under Section 7.2); and (f) is
      otherwise acceptable to Bank in its good faith business judgment.

     

    “KKS”
means
      KKS-Telecom, and any entity that is an Affiliate of KKS-Telecom.

     

    “Second
      Supplemental Closing Date”
means
      August 21, 2008.

     

    (d)  Each
      reference to “DBD” in the Loan Agreement is hereby deleted in its
      entirety.

     

    2.6  Compliance
      Certificate.
      The
      Compliance Certificate attached to the Loan Agreement as Exhibit
      E
      is
      replaced in its entirety with the Compliance Certificate attached hereto as
      Exhibit
      E.
      From
      and after the date hereof, all references in the Loan Agreement to the
      Compliance Certificate shall mean the Compliance Certificate in Exhibit
      E
      attached
      hereto.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    

    3.  Limitation
      of Amendments.

     

    3.1  The
      amendments set forth in Section 2,
      above,
      are effective for the purposes set forth herein and shall be limited precisely
      as written and shall not be deemed to (a) be a consent to any amendment,
      waiver or modification of any other term or condition of any Loan Document,
      or
      (b) otherwise prejudice any right or remedy which Bank may now have or may
      have in the future under or in connection with any Loan Document.

     

    3.2  This
      Amendment shall be construed in connection with and as part of the Loan
      Documents and all terms, conditions, representations, warranties, covenants
      and
      agreements set forth in the Loan Documents, except as herein amended, are hereby
      ratified and confirmed and shall remain in full force and effect.

     

    4.  Representations
      and Warranties.
      To
      induce Bank to enter into this Amendment, each Borrower hereby represents and
      warrants to Bank as follows:

     

    4.1  Immediately
      after giving effect to this Amendment (a) the representations and
      warranties contained in the Loan Documents are true, accurate and complete
      in
      all material respects as of the date hereof (except to the extent such
      representations and warranties relate to an earlier date, in which case they
      are
      true and correct as of such date), and (b) no Event of Default has occurred
      and is continuing;

     

    4.2  Each
      Borrower has the power and authority to execute and deliver this Amendment
      and
      to perform its obligations under the Loan Agreement, as amended by this
      Amendment;

     

    4.3  The
      organizational documents of each Borrower delivered to Bank on the Effective
      Date remain true, accurate and complete and have not been amended, supplemented
      or restated and are and continue to be in full force and effect;

     

    4.4  The
      execution and delivery by each Borrower of this Amendment and the performance
      by
      each Borrower of its obligations under the Loan Agreement, as amended by this
      Amendment, have been duly authorized;

     

    4.5  The
      execution and delivery by each Borrower of this Amendment and the performance
      by
      each Borrower of its obligations under the Loan Agreement, as amended by this
      Amendment, do not and will not contravene (a) any law or regulation binding
      on or affecting Borrower, (b) any contractual restriction with a Person
      binding on Borrower, (c) any order, judgment or decree of any court or
      other governmental or public body or authority, or subdivision thereof, binding
      on Borrower, or (d) the organizational documents of Borrower;

     

    4.6  The
      execution and delivery by each Borrower of this Amendment and the performance
      by
      each Borrower of its obligations under the Loan Agreement, as amended by this
      Amendment, do not require any order, consent, approval, license, authorization
      or validation of, or filing, recording or registration with, or exemption by
      any
      governmental or public body or authority, or subdivision thereof, binding on
      Borrower, except as already has been obtained or made; and

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    4.7  This
      Amendment has been duly executed and delivered by each Borrower and is the
      binding obligation of each Borrower, enforceable against each Borrower in
      accordance with its terms, except as such enforceability may be limited by
      bankruptcy, insolvency, reorganization, liquidation, moratorium or other similar
      laws of general application and equitable principles relating to or affecting
      creditors’ rights.

     

    5.  Counterparts.
      This
      Amendment may be executed in any number of counterparts and all of such
      counterparts taken together shall be deemed to constitute one and the same
      instrument.

     

    6.  Effectiveness.
      This
      Amendment shall be deemed effective upon (a) the due execution and delivery
      to
      Bank of this Amendment by Borrower, and (b) the due execution and delivery
      to Bank of Bank’s Invoice by Borrower, authorizing Bank to debit Borrower’s
      account for (i) the Second Supplemental Commitment Fee in the amount of One
      Hundred Thousand Dollars ($100,000) due on the date hereof, and (ii)
Bank’s
      legal fees and expenses in connection with the negotiation and preparation
      of
      this Amendment in the amount of Seven Thousand Two Hundred Dollars
      ($7,200).

     

    [Signature
      page follows.]

    

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    In
      Witness Whereof, the
      parties hereto have caused this Amendment to be duly executed and delivered
      as
      of the date first written above.

    

      
        	
                BANK

              	 
	 	 	 
	
                SILICON
                  VALLEY BANK

              	 
	 	 	 
	 	 	 
	
                By:

              	
                /s/
                  Anthony Barkett

              	 
	
                 

              	
                
                  
Name:
                  Anthony Barkett

              	 
	
                 

              	
                Title:
                  VP

              	 
	 	 	 
	
                US
                  BORROWER

              	 
	 	 	 
	
                AIRSPAN
                  NETWORKS, INC.

              	 
	 	 	 
	 	 	 
	
                By:

              	
                /s/
                  Eric Stonestrom

              	 
	
                 

              	
                
                  
Name:
                  Eric Stonestrom

              	 
	
                 

              	
                Title:
                  President and CEO

              	 
	 	 	 
	
                UK
                  BORROWER

              	 
	 	 	 
	
                AIRSPAN
                  COMMUNICATIONS LIMITED

              	 
	 	 	 
	 	 	 
	
                By:

              	
                /s/
                  David Brant

              	 
	
                 

              	
                
                  
Name:
                  David Brant

              	 
	
                 

              	
                Title:
                  CFO & Director

              	 
	 	 	 

      

    

     

    STATE
      OF
      NEW YORK )

    COUNTY
      OF
      NEW YORK )

    On
      this
      day, August 22, 2008, Eric Stonestrom, personally known to me, appeared before
      me and subscribed his name to the foregoing instrument and acknolwedged to
      me
      that he executed the same for the purposes expressed therein.

    
      
        	 	 
	 	 
	 	
                /s/
                  Lia Pascale

              
	 	
                Lia
                  Pascale

              
	 	
                Notary
                  Public - State of New York

              
	 	
                No.
                  02PA6095971

              
	 	
                Qualified
                  in New York County

              
	 	
                My
                  Commission Expires July 21,
                  2011

              

      

    

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      E

     

    COMPLIANCE
      CERTIFICATE

    

      
        	
                TO:

              	
                SILICON
                  VALLEY BANK

              	
                Date:
                  

              	______________
	
                FROM:
                  

              	
                AIRSPAN
                  NETWORKS, INC.

              	 	 
	 	
                AIRSPAN
                  COMMUNICATIONS LIMITED

              	 	 
	 	 	 	 

      

    

    
    

    The
      undersigned authorized officer of AIRSPAN NETWORKS, INC. and AIRSPAN
      COMMUNICATIONS LIMITED (individually and collectively, jointly and severally,
      “Borrower”) certifies that under the terms and conditions of the Loan and
      Security Agreement between Borrower and Bank (the “Agreement”),
      (1)
      Borrower is in complete compliance for the period ending _______________ with
      all required covenants except as noted below, (2) no Event of Default has
      occurred and is continuing, (3) all representations and warranties in the
      Agreement are true and correct in all material respects on this date except
      as
      noted below; provided, however, that such materiality qualifier shall not be
      applicable to any representations and warranties that already are qualified
      or
      modified by materiality in the text thereof; and provided, further that
      those representations and warranties expressly referring to a specific date
      shall be true, accurate and complete in all material respects as of such
      date,
      (4)
      Borrower has timely filed all required tax returns and reports, and Borrower
      has timely paid all foreign, federal, state, governmental and local taxes,
      assessments, deposits and contributions owed by Borrower
      except
      as otherwise permitted pursuant to the terms of Section 5.9 of the Agreement,
      and (5) no Liens have been levied or claims made against Borrower relating
      to
      unpaid employee payroll or benefits of which Borrower has not previously
      provided written notification to Bank. Attached are the required documents
      supporting the certification. The undersigned certifies that these are prepared
      in accordance with GAAP consistently applied from one period to the next except
      as explained in an accompanying letter or footnotes. The undersigned
      acknowledges that no borrowings may be requested at any time or date of
      determination that Borrower is not in compliance with any of the terms of the
      Agreement, and that compliance is determined not just at the date this
      certificate is delivered. Capitalized terms used but not otherwise defined
      herein shall have the meanings given them in the Agreement.

     

    
      	
              Please
                indicate compliance status by circling Yes/No under “Complies”
                column.

            

    

     

    
      	
              Reporting
                Covenant

            	
              Required

            	
              Complies

            
	 	 	 
	
              Monthly
                financial statements with

              Compliance
                Certificate

            	
              Monthly
                within 30 days*

            	
              Yes
                No

            
	
              Annual
                financial statement (CPA Audited) + CC

            	
              FYE
                within 120 days

            	
              Yes
                No

            
	
              10-Q,
                10-K and 8-K

            	
              Within
                5 days after filing with

              SEC

            	
              Yes
                No

            
	
              Transaction
                Reports

            	
              Monthly
                within 30 days**

            	
              Yes
                No

            
	
              A/R
                & A/P Agings, reconciliations

            	
              Monthly
                within 30 days

            	
              Yes
                No

            
	
              Annual
                operating budget and projections

            	
              Annually
                no later than 30 days

              prior
                to year-end

            	
              Yes
                No

            
	 

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    
      	
              Financial
                Covenant

            	
              Required

            	
              Actual

            	
              Complies

            
	 	 	 	 
	
              Maintain
                on a Quarterly Basis:

            	 	 	 
	
              Minimum
                Tangible Net Worth

            	
              $30,000,000***

            	
              $
                __________

            	
              Yes
                No

            
	
              Maintain
                on a Monthly Basis:

            	 	 	 
	
              Adjusted
                Quick Ratio

            	
              1.00:1.00

            	
              __:1.00

            	
              Yes
                No

            
	 	 	 	 

    

    

    
      	
              Borrowing
                Category

            	
              Interest
                Rate

            	
              Required

            	
              Actual

            	
              Complies

            
	 	 	 	 	 
	
              Net
                Daily Depositor

            	
              Prime
                plus 0.00%

            	 	 	
              Yes
                No

            
	 	 	 	 	 
	
              Daily
                Depositor and

            	
              Prime
                plus 0.50%

            	 	 	
              Yes
                No

            
	
              (a)
                Adjusted Quick Ratio 

              as
                of the last day of each month equal to or greater than 

            	 	
              1.50:1.00

            	
              __:1.00

            	
              Yes
                No

            
	
              or
                

            	 	 	 	 
	
              (b)
                EBITDA as of the two most recently ended consecutive

              fiscal
                quarters of greater than

            	 	
              $750,000

            	
              $
                _________

            	
              Yes
                No

            
	 	 	 	 	 
	
              Net
                Depositor

            	
              Prime
                plus 1.00%

            	 	 	
              Yes
                No

            
	 	 	 	 	 
	
              Net
                Borrower

            	
              Prime
                plus 1.75%

            	 	 	
              Yes
                No

            

    

    *
      except
      for the month of January

    **
      weekly
      at
      all times that Borrower is a Net Borrower 

    ***
      plus
      50%
      of quarterly Net Income (but not to be decreased by 50% of quarterly
      consolidated Net Loss), 50% of new equity and 50% of new Subordinated Debt
      raised after the Second Supplemental Closing Date.

     

    The
      following financial covenant analyses and information set forth in Schedule
      1
      attached hereto are true and accurate as of the date of this
      Certificate.

     

    The
      following are the exceptions with respect to the certification above: (If no
      exceptions exist, state “No exceptions to note.”)

     

    
      
        

      

      
        

      

      
        

      

    

    
      	 	 	 	 
	
              Borrower:

              

              AIRSPAN
                NETWORKS, INC.

              AIRSPAN
                COMMUNICATIONS LIMITED

            	 	 	
              BANK
                USE ONLY

               

              Received
                by: _____________________

              authorized
                signer

              Date:
                 _________________________

            
	 	 	 	 
	
              By:
                ________________________

            	 	 	
              Verified:
                ________________________

              authorized
                signer

            
	
              Name:
                ________________________

              Title:
                ________________________

            	 	 	
              Date:
                 _________________________

               

              Compliance
                Status: Yes
                NoUnassociated Document

    
      EXHIBIT
        10.1

    

     

    SECOND
      AMENDED AND RESTATED

    ADMINISTRATIVE
      SERVICES AGREEMENT

     

    BETWEEN

     

    BREITBURN
      ENERGY COMPANY L.P.

     

    AND

     

    BREITBURN
      MANAGEMENT COMPANY, LLC

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    TABLE
      OF CONTENTS

    

    
      	
              ARTICLE
                I

            	 
	
              DEFINITIONS

            	 
	 	 	 
	
              Section
                1.1

            	
              Definitions.

            	
              1

            
	
              Section
                1.2

            	
              Construction.

            	
              7

            
	 	 	 
	
              ARTICLE
                II

            	 
	
              RETENTION
                OF BREITBURN MANAGEMENT; SCOPE OF SERVICES

            	 
	 	 	 
	
              Section
                2.1

            	
              Retention
                of BreitBurn Management.

            	
              7

            
	
              Section
                2.2

            	
              Performance
                of Services.

            	
              7

            
	
              Section
                2.3

            	
              Performance
                of Services by Affiliates and Third Parties.

            	
              7

            
	
              Section
                2.4

            	
              Intellectual
                Property.

            	
              8

            
	
              Section
                2.5

            	
              Appointment
                of Independent Accounting Firm and Independent Petroleum
                Engineer.

            	
              8

            
	 	 	 
	
              ARTICLE
                III

            	 
	
              BOOKS,
                RECORDS AND REPORTING

            	 
	 	 	 
	
              Section
                3.1

            	
              Books
                and Records.

            	
              8

            
	
              Section
                3.2

            	
              Audits.

            	
              9

            
	
              Section
                3.3

            	
              Reports.
                

            	
              9

            
	 	 	 
	
              ARTICLE
                IV

            	 
	
              PAYMENT
                AMOUNT

            	 
	 	 	 
	
              Section
                4.1

            	
              Payment
                Amount

            	
              9

            
	
              Section
                4.2

            	
              Payment
                of Payment Amount.

            	
              10

            
	
              Section
                4.3

            	
              Disputed
                Charges.

            	
              10

            
	
              Section
                4.4

            	
              Set
                Off.

            	
              11

            
	
              Section
                4.5

            	
              BreitBurn
                Management's Employees.

            	
              11

            
	 	 	 
	
              ARTICLE
                V

            	 
	
              FORCE
                MAJEURE

            	 
	 	 	 
	
              Section
                5.1

            	
              Force
                Majeure.

            	
              11

            
	 	 	 
	
              ARTICLE
                VI

            	 
	
              ASSIGNMENTS
                AND SUBCONTRACTS

            	 
	 	 	 
	
              Section
                6.1

            	
              Assignments.

            	
              12

            
	
              Section
                6.2

            	
              Other
                Requirements

            	
              12

            

    

    
       

      BREITBURN
        ENERGY COMPANY L.P 

      SECOND
        AMENDED & RESTATED ADMINISTRATIVE
        SERVICES AGREEMENT

       

      
        
          
          

        

        
          i

          
            

          

        

        
          
          

        

      

    

     

    TABLE
      OF CONTENTS

    (continued)

     

    
      
        
          	
                  ARTICLE
                    VII

                	 
	
                  TERM
                    AND TERMINATION

                	 
	 	 
	
                  Section
                    7.1

                	
                  Term

                	
                  13

                
	
                  Section
                    7.2

                	
                  Termination
                    by BEC

                	
                  13

                
	
                  Section
                    7.3

                	
                  Termination
                    by BreitBurn Management.

                	
                  14

                
	
                  Section
                    7.4

                	
                  Effect
                    of Termination.

                	
                  14

                
	
                  Section
                    7.5

                	
                  Preferential
                    Right re BreitBurn Management

                	
                  14

                
	
                  Section
                    7.6

                	
                  Exclusivity

                	
                  15

                
	 	 
	
                  ARTICLE
                    VIII

                	 
	
                  CONFIDENTIAL
                    INFORMATION

                	 
	 	 
	
                  Section
                    8.1

                	
                  Nondisclosure

                	
                  15

                
	
                  Section
                    8.2

                	
                  Permitted
                    Disclosure.

                	
                  15

                
	 	 
	
                  ARTICLE
                    IX

                	 
	
                  LIMITATION
                    OF LIABILITY; INDEMNIFICATION

                	 
	 	 
	
                  Section
                    9.1

                	
                  Limitation
                    of Liability.

                	
                  16

                
	
                  Section
                    9.2

                	
                  Indemnification.

                	
                  16

                
	 	 
	
                  ARTICLE
                    X

                	 
	
                  DISPUTE
                    RESOLUTION

                	 
	 	 
	
                  ARTICLE
                    XI

                	 
	
                  TRANSITION
                    SERVICES

                	 
	 	 	 
	
                  Section
                    11.1

                	
                  General
                    Transition Services.

                	
                  17

                
	
                  Section
                    11.2

                	
                  Access

                	
                  18

                
	
                  Section
                    11.3

                	
                  Employment
                    Offers

                	
                  18

                
	
                  Section
                    11.4

                	
                  Employee
                    Plans and Obligations

                	
                  18

                
	
                  Section
                    11.5

                	
                  Sale
                    of BEC

                	
                  18

                

        

      

    

     

    
      BREITBURN
        ENERGY COMPANY L.P 

      SECOND
        AMENDED & RESTATED ADMINISTRATIVE
        SERVICES AGREEMENT

       

      
        
          
          

        

        
          ii

          
            

          

        

        
          
          

        

      

    

    TABLE
      OF CONTENTS

    (continued)

    

    ARTICLE
      XII

    GENERAL
      PROVISIONS

    

    
      	
              Section
                12.1

            	
              Notices

            	
              19

            
	
              Section
                12.2

            	
              Further
                Action.

            	
              20

            
	
              Section
                12.3

            	
              Binding
                Effect.

            	
              20

            
	
              Section
                12.4

            	
              Integration.

            	
              20

            
	
              Section
                12.5

            	
              Creditors.

            	
              21

            
	
              Section
                12.6

            	
              Waiver.

            	
              21

            
	
              Section
                12.7

            	
              Counterparts.

            	
              21

            
	
              Section
                12.8

            	
              Applicable
                Law.

            	
              21

            
	
              Section
                12.9

            	
              Invalidity
                of Provisions.

            	
              21

            
	
              Section
                12.10 

            	
              Amendment
                or Restatement.

            	
              21

            
	
              Section
                12.11

            	
              Directly
                or Indirectly.

            	
              21

            
	
              Section
                12.12

            	
              Prior
                Services

            	
              22

            

    

     

    
      BREITBURN
        ENERGY COMPANY L.P 

      SECOND
        AMENDED & RESTATED ADMINISTRATIVE
        SERVICES AGREEMENT

       

      
        
          
          

        

        
          iii

          
            

          

        

        
          
          

        

      

    

    SECOND
      AMENDED AND RESTATED

    ADMINISTRATIVE
      SERVICES AGREEMENT

    

    THIS
      SECOND AMENDED AND RESTATED ADMINISTRATIVE SERVICES AGREEMENT is entered into
      on, and effective as of, August 26, 2008 (the "Effective Date"), by and between
      BreitBurn Energy Company L.P., a Delaware limited partnership ("BEC"), and
      BreitBurn Management Company, LLC, a Delaware limited liability company
      ("BreitBurn Management," and collectively with BEC, the "Parties" and each,
      a
      "Party").

     

    RECITALS

     

    A.BEC
      is
      the owner, directly or indirectly, of interests in the Business (as hereinafter
      defined);

     

    B.The
      BEC
      Group (as hereinafter defined) requires certain services to operate the Business
      and to fulfill other general and administrative functions relating to the
      Business; 

     

    C.The
      BEC
      Group desires that BreitBurn Management provide such services, and BreitBurn
      Management is willing to undertake such engagement, subject to the terms and
      conditions of this Agreement; and

     

    D.The
      parties also wish to provide the BEC Group with the right to request of
      BreitBurn Management certain transitional services.

     

    NOW,
      THEREFORE, BEC and BreitBurn Management agree as follows:

     

    ARTICLE
      1

     

    DEFINITIONS

     

    Section
      1.1Definitions.

     

    The
      following definitions shall be for all purposes, unless otherwise clearly
      indicated to the contrary, applied to the terms used in this
      Agreement.

     

    "Affiliate"
      means,
      with respect to any Person, any other Person that directly or indirectly through
      one or more intermediaries controls, is controlled by or is under common control
      with, the Person in question. As used herein, the term "control" means the
      possession, direct or indirect, of the power to direct or cause the direction
      of
      the management and policies of a Person, whether through ownership of voting
      securities, by contract or otherwise. As used in this Agreement, members of
      the
      BEC Group shall not be Affiliates of BBEP or BreitBurn Management, and BBEP
      and
      BreitBurn Management shall not be Affiliates or members of the BEC Group.

    
       

      BREITBURN
        ENERGY COMPANY L.P 

      SECOND
        AMENDED & RESTATED ADMINISTRATIVE
        SERVICES AGREEMENT

    

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    "Agreement"
      means
      this Second Amended and Restated Administrative Services Agreement, as it may
      be
      amended, supplemented or restated from time to time.

     

    "BBEP"
      means
      BreitBurn Energy Partners L.P., a Delaware limited partnership. 

     

    “BBEP
      Change in Control” means
      a
      change in ownership or control of BBEP effected through any of the
      following:

     

    
      	 	
              (a)

            	
              the
                sale, transfer or other disposition of all or substantially all of
                the
                assets of BBEP or its Subsidiaries;

            

    

     

    
      	 	
              (b)

            	
              the
                acquisition, directly or indirectly, by any person or related group
                of
                persons of beneficial ownership of more than forty percent (40%)
                of the
                outstanding equity securities or limited partnership interests of
                BBEP
                immediately after the consummation of such transaction or a series
                of
                related transactions, whether such transaction involves a direct
                issuance
                from BBEP or the acquisition of securities from one or more existing
                partners or owners (other than an acquisition by Quicksilver Resources
                Inc. and its Affiliates, unless it is an acquisition of (1) all or
                substantially all of the outstanding securities or interests of BBEP
                or
                (2) of a majority of the outstanding securities or interests of BBEP
                and
                Quicksilver has more than two representatives on the Board of Directors
                of
                BBEP or BreitBurn Management); or

            

    

     

    
      	 	
              (c)

            	
              both
                Halbert Washburn and Randall Breitenbach are no longer employed as
                Co-CEOs
                of BBEP,

            

    

     

    provided,
      however, that in no event will a change in control be deemed to occur solely
      due
      to (i) the reorganization or conversion of an entity to another form of entity
      if the holders of the equity securities or ownership interests, directly or
      indirectly, remain substantially the same after the reorganization or
      conversion, or (ii) action taken by BBEP, including, but not limited to
      repurchases of equity securities or limited partnership interests.

     

    "Bankrupt"
      with
      respect to any Person means such Person shall generally be unable to pay its
      debts as such debts become due, or shall so admit in writing or shall make
      a
      general assignment for the benefit of creditors; or any proceeding shall be
      instituted by or against such Person seeking to adjudicate it a bankrupt or
      insolvent, or seeking liquidation, winding up, reorganization, arrangement,
      adjustment, protection, relief, or composition of it or its debts under any
      law
      relating to bankruptcy, insolvency or reorganization or relief of debtors,
      or
      seeking the entry of an order for relief or the appointment of a receiver,
      trustee, or other similar official for it or for any substantial part of its
      property and, in the case of any such proceeding instituted against it (but
      not
      instituted by it), shall remain undismissed or unstayed for a period of 30
      days;
      or such Person shall take any action to authorize any of the actions set forth
      above.

     

    
      BREITBURN
        ENERGY COMPANY L.P 

      SECOND
        AMENDED & RESTATED ADMINISTRATIVE
        SERVICES AGREEMENT

       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

    

     

    "BEC"
      means
      BreitBurn Energy Company L.P., a Delaware limited partnership as defined in
      the
      introductory paragraph.

     

    “BEC
      Change in Control”
      means
a
      change
      in ownership or control of any of BEC,
      BreitBurn Energy Holdings LLC or BEH (GP) effected
      through any of the following:

     

    
      	 	
              (a)

            	
              the
                sale, transfer or other disposition of all or substantially all of
                the
                assets of any of BEC,
                BreitBurn Energy Holdings LLC or BEH (GP) LLC
                to
                any Person or related group of Persons other than Affiliates of members
                of
                the BEC Group; or

            

    

     

    
      	 	
              (b)

            	
              the
                acquisition, directly or indirectly, by any Person or related group
                of
                Persons, other than Affiliates of the BEC Group, of beneficial ownership
                of more than forty percent (40%) of the outstanding equity securities
                or
                partnership interests of BEC immediately after the consummation of
                such
                transaction or a series of related transactions, whether such transaction
                involves a direct issuance from BEC or the acquisition of securities
                from
                one or more existing partners or owners;
                or

            

    

     

    
      	 	
              (c)

            	
              an
                initial public offering of any member of the BEC
                Group,

            

    

     

    provided,
      however, that in no event will a change in control be deemed to occur solely
      due
      to the reorganization or conversion of an entity to another form of entity
      if
      the holders of the equity securities or ownership interests, directly or
      indirectly, remain substantially the same after the reorganization or
      conversion.

     

    "BEC
      Group" means
      BEC, BreitBurn Energy Holdings LLC, BEH (GP) LLC, BEH (LP) LLC and
      all
      of their respective Subsidiaries.

     

    "BEC
      Group Party" means
      the
      BEC Group and their respective directors, officers, employees, agents and
      permitted assigns. 

     

    “BreitBurn
      Management Change in Control” means
      a
      change in ownership, management or control of BreitBurn Management effected
      through any of the following:

     

    
      	 	
              (a)

            	
              the
                sale, transfer or other disposition of all or substantially all of
                the
                assets of BreitBurn Management, except to an Affiliate of BreitBurn
                Management or an entity majority owned by the senior management team
                (ie.
                CEO’s, CFO, COO and/or General Counsel) of BreitBurn Management;
                or

            

    

     

    
      	 	
              (b)

            	
              the
                acquisition, directly or indirectly by any person or related group
                of
                persons of beneficial ownership of more than fifty percent (50%)
                of
                BreitBurn Management’s outstanding securities or membership interests
                immediately after the consummation of such transaction or a series
                of
                related transactions, whether such transaction involves a direct
                issuance
                from BreitBurn Management or the acquisition of securities from one
                or
                more existing owners; or

            

    

     

    
      BREITBURN
        ENERGY COMPANY L.P 

      SECOND
        AMENDED & RESTATED ADMINISTRATIVE
        SERVICES AGREEMENT

       

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

    

     

    
      	 	
              (c)

            	
              both
                Halbert Washburn and Randall Breitenbach are no longer employed as
                Co-CEOs
                by BreitBurn Management,

            

    

     

    provided,
      however, that in no event will a change in control be deemed to occur solely
      due
      to the reorganization or conversion of an entity to another form of entity
      if
      the holders of the securities or ownership interests remain substantially the
      same after the reorganization or conversion.

     

    "BreitBurn
      Management Party" means
      BreitBurn Management and its controlling persons, directors, officers,
      employees, agents and permitted assigns.

     

    "Business"
      means
      the
      acquisition, operation and disposition of oil and gas producing properties,
      and
      related ancillary real estate development, by the BEC Group.

     

    "Confidential
      Information" means
      non-public information about the disclosing Party's or any of its Affiliates'
      business or activities that is proprietary and confidential, which shall
      include, without limitation, all business, financial, technical and other
      information, including software (source and object code) and programming code,
      of a Party or its Affiliates marked or designated "confidential" or
      "proprietary" or by its nature or the circumstances surrounding its disclosure
      it should reasonably be regarded as confidential. Confidential Information
      includes not only written or other tangible information, but also information
      transferred orally, visually, electronically or by any other means. Confidential
      Information does not include information that (i) is in or enters the public
      domain without breach of this Agreement, or (ii) the receiving Party lawfully
      receives from a third party without restriction on disclosure and to the
      receiving Party's knowledge without breach of a nondisclosure
      obligation.

     

    "Damages"
      means all
      liabilities, claims, damages, losses and expenses (including, but not limited
      to, court costs and reasonable attorneys' fees).

     

    “Direct
      Costs” means
      all
      costs and expenses of every type, including but not limited to, labor,
      materials, and equipment, incurred directly in the operation of any property
      owned by BEC. In the case of properties jointly owned by BEC and BBEP, then
      Direct Costs are costs attributable to the proportionate ownership interest
      owned by BEC.

     

    "Effective
      Date" is
      defined in the introductory paragraph.

     

    "Environmental
      Law" means
      current local, county, state, federal, and/or foreign law (including common
      law), statute, code, ordinance, rule, order, judgment, decree, regulation or
      other legal obligation relating to the protection of health, safety or the
      environment or natural resources, including, without limitation, the
      Comprehensive Environmental Response Compensation and Liability Act (42 U.S.C.
      section 9601 et seq.), as amended, the Resource Conservation and Recovery Act
      (42 U.S.C. section 6901 et seq.), as amended, the Federal Water Pollution
      Control Act (33 U.S.C. section 1251 et seq.), as amended, the Clean Air Act
      (42
      U.S.C. section 7401 et seq.), as amended, the Toxic Substances Control Act
      (15
      U.S.C. section 2601 et seq.), as amended, the Occupational Safety and Health
      Act
      (29 U.S.C. section 651 et seq.), as amended, the Safe Drinking Water Act (42
      U.S.C. section 300(f) et seq.), as amended, analogous state, tribal or local
      laws, and any similar, implementing or successor law, and any amendment, rule,
      regulation, or directive issued thereunder, including any determination by,
      or
      interpretation of any of the foregoing by any Governmental Authority that has
      the force of law.

     

    
      BREITBURN
        ENERGY COMPANY L.P 

      SECOND
        AMENDED & RESTATED ADMINISTRATIVE
        SERVICES AGREEMENT

       

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

    

     

    “Fixed
      Fee”
      means a
      monthly fee of Seven Hundred and Seventy-Five Thousand Dollars ($775,000) for
      the performance of the Services through December 31, 2008 as adjusted for the
      period after December 31, 2008 pursuant to Section 4.1(b) and based on the
      parameters set forth in Schedule II. 

     

    "Force
      Majeure" means
      any
      cause beyond the reasonable control of a Party, including the following causes
      (unless they are within such Party's reasonable control): acts of God, strikes,
      lockouts, acts of the public enemy, wars or warlike action (whether actual
      or
      impending), arrests and other restraints of government (civil or military),
      blockades, embargoes, insurrections, riots, epidemics, landslides, lightning,
      earthquakes, fires, sabotage, tornadoes, named tropical storms and hurricanes,
      and floods, civil disturbances, terrorism, lack of Governmental Approvals,
      mechanical breakdown of machinery or equipment, explosions, confiscation or
      seizure by any government or other public authority, any order of any court
      of
      competent jurisdiction, regulatory agency or governmental body having
      jurisdiction.

     

    "Governmental
      Approval" means
      any
      material consent, authorization, certificate, permit, right-of-way grant or
      approval of any Governmental Authority that is necessary for the construction,
      ownership and operation of the assets used in the Business in accordance with
      applicable Laws.

     

    "Governmental
      Authority" means
      any
      court or tribunal in any jurisdiction or any federal, state, tribal, municipal
      or local government or other governmental body, agency, authority, department,
      commission, board, bureau, instrumentality, arbitrator or arbitral body or
      any
      quasi- governmental or private body lawfully exercising any regulatory or taxing
      authority.

     

    "Laws"
      means
      any
      applicable statute, Environmental Law, common law, rule, regulation, judgment,
      order, ordinance, writ, injunction or decree issued or promulgated by any
      Governmental Authority.

     

    “LTIP
      Costs”
      means
      all costs associated with BEC sponsored long term incentive plans set forth
      on
      Schedule II or subsequently implemented by BEC. 

     

    "Parties"
      is
      defined in the introductory paragraph.

     

    
      BREITBURN
        ENERGY COMPANY L.P 

      SECOND
        AMENDED & RESTATED ADMINISTRATIVE
        SERVICES AGREEMENT

    

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    "Payment
      Amount"
      means
      the Fixed Fee, LTIP Costs, Direct Costs and the Third Party Costs.

     

    "Person"
      means
      an
      individual or a corporation, limited liability company, partnership, joint
      venture, trust, unincorporated organization, association, government agency
      or
      political subdivision thereof or other entity.

     

    “Prime
      Rate”
      means an
      interest rate (which shall in no event be higher than the rate permitted by
      applicable law) equal to the prime interest rate of BEC’s principal
      lender.

     

    "Services"
      means
      such services, consistent with past service levels, which BEC determines may
      be
      reasonable and necessary to operate the Business, including, without limitation,
      those general and administrative services necessary or useful for the conduct
      of
      the business of the BEC Group, including, but not limited to, operations,
      geoscience, accounting, corporate development, finance, land, legal and
      engineering and those services described on Schedule I hereto.

     

    "Subsidiary"
      means,
      with respect to any Person, (a) a corporation of which more than 50% of the
      voting power of shares entitled (without regard to the occurrence of any
      contingency) to vote in the election of directors or other governing body of
      such corporation is owned, directly or indirectly, at the date of determination,
      by such Person, by one or more Subsidiaries of such Person or a combination
      thereof, (b) a partnership (whether general or limited) or limited liability
      company in which such Person or a Subsidiary of such Person is, at the date
      of
      determination, a limited partner or member of such partnership or limited
      liability company, but only if more than 50% of the partnership or membership
      interests of such entity (considering all of the partnership or membership
      interests of the entity as a single class) is owned, directly or indirectly,
      at
      the date of determination, by such Person, by one or more Subsidiaries of such
      Person, or a combination thereof, (c) a partnership (whether general or limited)
      or limited liability company in which such Person or a Subsidiary of such Person
      is, at the date of determination, a general partner or manager of such
      partnership or limited liability company, or (d) any other Person (other than
      a
      corporation or a partnership) in which such Person, one or more Subsidiaries
      of
      such Person, or a combination thereof, directly or indirectly, at the date
      of
      determination, has (i) at least a majority ownership interest or (ii) the power
      to elect or direct the election of a majority of the directors or other
      governing body of such Person.

     

    “Third
      Party Costs” means
      costs incurred by BreitBurn Management on behalf of BEC with entities or persons
      other than a BEC Group Party or a BreitBurn Management Party relating
      specifically to the Business or the assets of BEC and which can be separately
      billed and segregated from costs incurred with respect to the assets of BBEP,
      including but not limited to, outside accounting, reserve engineering and legal
      costs as well as the third-party costs shown on Schedule II hereto.

     

    Other
      terms defined herein have the meanings so given them. 

     

    
      BREITBURN
        ENERGY COMPANY L.P 

      SECOND
        AMENDED & RESTATED ADMINISTRATIVE
        SERVICES AGREEMENT

       

    

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    Section
      1.2 Construction.

     

    Unless
      the context requires otherwise: (a) any pronoun used in this Agreement shall
      include the corresponding masculine, feminine or neuter forms, and the singular
      form of nouns, pronouns and verbs shall include the plural and vice versa;
      (b)
      references to Articles and Sections refer to Articles and Sections of this
      Agreement; (c) references to Exhibits refer to the Exhibits attached to this
      Agreement, each of which is made a part hereof for all purposes; (d) the terms
      "include", "includes", "including" and words of like import shall be deemed
      to
      be followed by the words "without limitation"; (e) the terms "hereof," "herein"
      and "hereunder" refer to this Agreement as a whole and not to any particular
      provision of this Agreement; and (f) references to money refer to legal currency
      of the United States of America. The table of contents and headings contained
      in
      this Agreement are for reference purposes only, and shall not affect in any
      way
      the meaning or interpretation of this Agreement.

     

    ARTICLE
      II

     

    RETENTION
      OF BREITBURN MANAGEMENT; SCOPE OF SERVICES 

     

    Section
      2.1 Retention
      of BreitBurn Management.

     

    BEC
      hereby engages BreitBurn Management to perform the Services, and to provide
      all
      personnel and any facilities, goods and equipment necessary to perform the
      Services. BreitBurn Management hereby accepts such engagement and agrees to
      perform the Services requested by BEC and to provide facilities, goods,
      equipment, and all employees and other personnel as may be reasonable and
      necessary to perform the Services. BEC recognizes that BreitBurn Management
      is
      concurrently providing Services to BBEP. All decisions relating to the
      assignment of personnel or the methodology or systems to be utilized in
      providing the Services shall be in the reasonable discretion of BreitBurn
      Management after consultation with BEC.

     

    Section
      2.2 Performance
      of Services.

     

    BreitBurn
      Management hereby covenants and agrees that the Services will be performed
      in
      accordance with (i) applicable material Governmental Approvals and Laws and
      (ii)
      good and customary industry standards. 

     

    Section
      2.3 Performance
      of Services by Affiliates and Third Parties.

     

    The
      Parties hereby agree that in discharging its obligations hereunder, BreitBurn
      Management may engage any of its Affiliates or any qualified third party to
      perform the Services (or any part of the Services) on its behalf and that the
      performance of the Services (or any part of the Services) by any such Affiliate
      or third party shall be treated as if BreitBurn Management performed such
      Services itself. Notwithstanding the foregoing, nothing contained herein shall
      relieve BreitBurn Management of its obligations hereunder.

     

    
      BREITBURN
        ENERGY COMPANY L.P 

      SECOND
        AMENDED & RESTATED ADMINISTRATIVE
        SERVICES AGREEMENT

       

    

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    Section
      2.4 Intellectual
      Property.

     

    (a) Any
      (i)
      inventions, whether patentable or not, developed or invented, or (ii)
      copyrightable material (and the intangible rights of copyright therein)
      developed, by BreitBurn Management, its Affiliates or its or their employees
      in
      connection with the performance of the Services shall: (a) in the case such
      intellectual property relates solely to the Services or property owned
      exclusively by BEC, be the property of BEC and (b) in all other cases be the
      property of BreitBurn Management; provided,
      however, that
      the
      BEC Group shall be granted an irrevocable, royalty-free, non-exclusive right
      and
      license to use such inventions or material. BreitBurn Management covenants
      not
      to, at any time, make any claim to or attempt to prohibit the BEC Group from
      using any process, technical knowledge, invention, technology or equipment
      used
      in respect of the Business and the assets of the BEC Group, and acknowledges
      that all property-specific (including general reservoir characterization
      studies) technical knowledge and processes used in connection with the Business
      and the assets of BEC shall be the property of BEC. For certainty this covenant
      in the foregoing sentence shall survive the termination of this
      Agreement.

     

    (b) BEC
      hereby grants to BreitBurn Management and its Affiliates an irrevocable,
      royalty-free, non-exclusive and non-transferable right and license to use,
      during the term of this Agreement, any intellectual property provided by the
      BEC
      Group to BreitBurn Management or its Affiliates, but only to the extent such
      use
      is necessary for the performance of the Services. BreitBurn Management agrees
      that it and its Affiliates will utilize such intellectual property solely in
      connection with the performance of the Services.

     

    Section
      2.5 Appointment
      of Independent Accounting Firm and Independent Petroleum
      Engineer.

     

    Notwithstanding
      anything to the contrary in this Agreement, the Parties hereby recognize and
      agree that BEC shall have the exclusive authority to appoint an independent
      accounting firm to audit the financial statements of BEC and to appoint an
      independent petroleum engineer to provide reports to BEC relating to estimates
      of reserves for applicable securities laws and other reporting
      purposes.

     

    ARTICLE
      III

     

    BOOKS,
      RECORDS AND REPORTING

     

    Section
      3.1 Books
      and Records.

     

    BreitBurn
      Management shall maintain accurate books and records regarding the performance
      of the Services and its calculation of the Payment Amount, and shall maintain
      such books and records for the period required by applicable accounting
      practices or law.

     

    
      BREITBURN
        ENERGY COMPANY L.P 

      SECOND
        AMENDED & RESTATED ADMINISTRATIVE
        SERVICES AGREEMENT

       

    

    
      
        
        

      

      
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    Section
      3.2 Audits.

     

    BEC
      shall
      have the right, upon reasonable notice, and at all reasonable times during
      usual
      business hours, to audit, examine and make copies of the books and records
      referred to in Section 3.1. Such right may be exercised through any agent or
      employee of the BEC Group designated in writing by it or by an independent
      public accountant, engineer, attorney or other agent so designated. BEC shall
      bear all costs and expenses incurred in any inspection, examination or audit.
      BreitBurn Management shall review and respond in a timely manner to any claims
      or inquiries made by BEC regarding matters revealed by any such inspection,
      examination or audit.

     

    Section
      3.3 Reports.

     

    BreitBurn
      Management shall prepare and deliver to BEC any reports provided for in this
      Agreement and such other reports as BEC may reasonably request from time to
      time
      regarding the performance of the Services. 

     

    ARTICLE
      IV

     

    PAYMENT
      AMOUNT

     

    Section
      4.1 Payment
      Amount.

     

    (a) BEC
      shall
      pay BreitBurn Management the Fixed Fee monthly. BEC shall also reimburse
      BreitBurn Management monthly for: (a) Third Party Costs, (b) all LTIP Costs,
      and
      (c) all Direct Costs. For certainty there shall be no duplication in the
      categories of fees and costs set forth in the foregoing. 

     

    (b) For
      the
      period beginning January 1, 2009, BEC and BreitBurn Management shall meet and
      determine the Fixed Fee to be paid by BEC to BreitBurn Management for the
      Services to be supplied during the ensuing calendar year pursuant to the
      provisions of this Section 4.1(b). On or about November 1, 2008, and each
      succeeding anniversary of such date during the Term of this Agreement, BreitBurn
      Management will provide to the Board of Directors of BreitBurn GP, LLC, the
      general partner of BBEP, and to the Board of Directors of BreitBurn Energy
      Holdings, LLC a recommendation for the Fixed Fee to be utilized during the
      ensuing calendar year determined in accordance with the methodology set forth
      on
      Schedule II, together with all appropriate backup material explaining the
      recommendation for the proposed fee. BreitBurn Management and BEC agree to
      negotiate in good faith to determine the Fixed Fee for such services, which
      Fixed Fee shall represent a reasonable allocation of all projected costs (other
      than Third-Party Costs, LTIP Costs and Direct Costs) to be incurred by BreitBurn
      Management in providing such Services. In the event that the Parties are unable
      to agree upon the Fixed Fee portion of such costs, the issue shall be determined
      pursuant to the dispute resolution procedures set forth in Article X below.
      Pending the final determination of the Fixed Fee, BEC shall pay monthly the
      Fixed Fee payable for December of the preceding year. Any amounts determined
      to
      be due between the parties for past months once the Fixed Fee is finally
      determined, shall be promptly paid with interest at the Prime Rate for the
      period from when the revised Fixed Fee would have originally been due hereunder
      until paid. The Parties acknowledge and agree that prior approval of the
      Conflicts Committee of the Board of Directors of BreitBurn GP, LLC may be
      required in connection with the agreement by BreitBurn Management to the amount
      of the Fixed Fee to be determined pursuant to this Section 4.1(b). 

     

    
      BREITBURN
        ENERGY COMPANY L.P 

      SECOND
        AMENDED & RESTATED ADMINISTRATIVE
        SERVICES AGREEMENT

    

     

    
      
        
        

      

      
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    (c) Notwithstanding
      anything to the contrary in this Section, with respect to the Pre-Existing
      Equity Plans Obligations as defined pursuant to Section 5.7 of that certain
      Purchase Agreement by and among Pro LP Corp., Pro GP and BreitBurn Energy
      Partners L.P. dated June 16, 2008 for the purchase and sale of all the limited
      liability interests of BreitBurn Management Company (the “Purchase Agreement”),
      the BEC Group shall reimburse BreitBurn Management for the cost of the portion
      of the Pre-Existing Plans Obligations allocated to the BEC Group pursuant to
      Section 5.7 of the Purchase Agreement, and BBEP shall reimburse BreitBurn
      Management for the cost of the portion of the Pre-Existing Plans Obligations
      allocated to BBEP pursuant to Section 5.7 of the Purchase Agreement. Neither
      BEC
      nor BBEP nor any of their respective affiliates shall be responsible for the
      cost of the Pre-Existing Equity Plans Obligations except as provided in the
      preceding sentence. BreitBurn Management agrees not to cause BEC Group to incur
      or be responsible for any additional LTIP Costs not otherwise set forth on
      or
      contemplated by Schedule II. Notwithstanding anything to the contrary herein,
      the provisions of this Section 4.1(c) shall survive any termination of this
      Agreement.

     

    Section
      4.2 Payment
      of Payment Amount.

     

    BreitBurn
      Management shall invoice BEC on or before the 25th day of each month for the
      estimated Payment Amount for the next succeeding month, plus or minus any
      adjustment necessary to correct prior estimated billings to actual billings.
      Subject to Section 4.3, all invoices shall be due and payable, in immediately
      available funds, on the last day of the month to which the invoice relates.
      Upon
      the request of BEC, BreitBurn Management shall furnish a reasonable detail
      of
      the Services provided and charges assessed during any month.

     

    Section
      4.3 Disputed
      Charges.

     

    BEC
      MAY,
      WITHIN 120 DAYS AFTER RECEIPT OF A CHARGE FROM BREITBURN MANAGEMENT, TAKE
      WRITTEN EXCEPTION TO SUCH CHARGE, ON THE GROUND THAT THE SAME WAS NOT A
      REASONABLE COST INCURRED BY BREITBURN MANAGEMENT OR ITS AFFILIATES IN CONNECTION
      WITH THE SERVICES. BEC SHALL NEVERTHELESS PAY BREITBURN MANAGEMENT IN FULL
      WHEN
      DUE THE FULL PAYMENT AMOUNT OWED TO BREITBURN MANAGEMENT. SUCH PAYMENT SHALL
      NOT
      BE DEEMED A WAIVER OF THE RIGHT OF BEC TO RECOUP ANY CONTESTED PORTION OF ANY
      AMOUNT SO PAID. HOWEVER, IF THE AMOUNT AS TO WHICH SUCH WRITTEN EXCEPTION IS
      TAKEN, OR ANY PART THEREOF, IS ULTIMATELY DETERMINED NOT TO BE AN APPROPRIATE
      COST INCURRED BY BREITBURN MANAGEMENT OR ITS AFFILIATES UNDER THIS AGREEMENT
      IN
      CONNECTION WITH ITS PROVIDING THE SERVICES HEREUNDER, SUCH AMOUNT OR PORTION
      THEREOF (AS THE CASE MAY BE) SHALL BE REFUNDED BY BREITBURN MANAGEMENT TO BEC
      TOGETHER WITH INTEREST THEREON AT THE PRIME RATE DURING THE PERIOD FROM THE
      DATE
      OF PAYMENT BY BEC TO THE DATE OF REFUND BY BREITBURN MANAGEMENT.

    
       

      BREITBURN
        ENERGY COMPANY L.P 

      SECOND
        AMENDED & RESTATED ADMINISTRATIVE
        SERVICES AGREEMENT

       

    

    
      
        
        

      

      
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    Section
      4.4 Set
      Off.

     

    In
      the
      event that BreitBurn Management owes BEC a sum certain in an uncontested amount
      under any other agreement, then any such amounts may be aggregated and BEC
      and
      BreitBurn Management may discharge their obligations by netting those amounts
      against any amounts owed by BEC to BreitBurn Management under this Agreement.
      If
      BEC or BreitBurn Management owes the other party a greater aggregate amount,
      that Party may pay to the other Party the difference between the amounts
      owe.

     

    Section
      4.5 BreitBurn
      Management's Employees.

     

    BEC
      shall
      not be obligated to pay to BreitBurn Management's or its Affiliates' employees
      directly any compensation, salaries, wages, bonuses, benefits, social security
      taxes, workers' compensation insurance, retirement and insurance benefits,
      training and other such expenses; provided, however, that BEC may, at its
      option, compensate employees providing Services hereunder under any BEC
      long-term incentive plan or any equity-based incentive plan or agreement for
      the
      provision of Services hereunder; and provided further, however, that if
      BreitBurn Management fails to pay any employee providing Services hereunder,
      with the exception of employee claims for amounts owed that BreitBurn Management
      disputes in good faith, within 30 days of the date such employee's payment
      is
      due:

     

    (a) BEC
      may
      (i) pay such employee directly, (ii) employ such employee directly, (iii) notify
      BreitBurn Management and begin to pay such employee directly, or (iv) if such
      failure to pay affects all or substantially all such employees, notify BreitBurn
      Management that this Agreement is terminated and employ all such employees
      directly; and

     

    (b) BreitBurn
      Management shall reimburse BEC, as the case may be, the amount BEC paid to
      BreitBurn Management for Services provided by any BreitBurn Management employee
      that BreitBurn Management did not pay to any such employee.

     

    ARTICLE
      V

     

    FORCE
      MAJEURE

     

    Section
      5.1 Force
      Majeure.

     

    A
      Party's
      obligation under this Agreement shall be excused when and to the extent its
      performance of that obligation is prevented due to Force Majeure; provided,
      however, that
      a
      Party shall not be excused by Force Majeure from any obligation to pay money.
      The Party that is prevented from performing its obligation by reason of Force
      Majeure shall promptly notify the other Parties of that fact and shall exercise
      due diligence to end its inability to perform as promptly as practicable.
      Notwithstanding the foregoing, a Party is not required to settle any strike,
      lockout or other labor dispute in which it may be involved; provided,
      however, that,
      in
      the event of a strike, lockout or other labor dispute affecting BreitBurn
      Management, BreitBurn Management shall use reasonable efforts to continue to
      perform all obligations hereunder by utilizing its management personnel and
      that
      of its Affiliates.

     

    
      BREITBURN
        ENERGY COMPANY L.P 

      SECOND
        AMENDED & RESTATED ADMINISTRATIVE
        SERVICES AGREEMENT

    

     

    
      
        
        

      

      
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    ARTICLE
      VI

     

    ASSIGNMENTS
      AND SUBCONTRACTS 

     

    Section
      6.1 Assignments.

     

    (a) Other
      than as permitted herein, without the prior consent of BreitBurn Management,
      none of BEC or the other members of the BEC Group may sell, assign, transfer
      or
      convey any of its rights, or delegate any of its obligations, under this
      Agreement to any Person.

     

    (b) Without
      the prior consent of BEC, BreitBurn Management may not sell, assign, transfer
      or
      convey any of its rights, or delegate any of its obligations, under this
      Agreement to any Person, other than the delegation of performance of Services
      to
      an Affiliate of BreitBurn Management or a qualified third party as permitted
      by
      Section 2.3 and the sale, assignment, transfer or conveyance of its rights
      hereunder to any such Affiliate.

     

    Section
      6.2 Other
      Requirements. 

     

    Subject
      to the other provisions hereof:

     

    (a) All
      materials and workmanship used or provided in performing the Services shall
      be
      in accordance with applicable specifications and standards.

     

    (b) BreitBurn
      Management shall exercise reasonable diligence to obtain the most favorable
      terms or warranties available from vendors, suppliers and other third parties,
      and where appropriate, BreitBurn Management shall assign such warranties to
      BEC.

     

    (c) In
      rendering the Services, BreitBurn Management shall not discriminate against
      any
      employee or applicant for employment because of race, creed, color, religion,
      sex, national origin, age or handicap, and shall comply with all applicable
      provisions of Executive Order 11246 of September 24, 1965, and any successor
      order thereto. Subject to the above, BreitBurn Management shall, to the extent
      practicable, engage employees who reside in or whose businesses are located
      in
      the local area or state where the Services are performed.

     

    (d) BreitBurn
      Management agrees to exercise reasonable diligence to ensure that, during the
      term of this Agreement, it shall not employ unauthorized aliens as defined
      in
      the Immigration Reform and Control Act of 1986, or any successor law.

    
       

      BREITBURN
        ENERGY COMPANY L.P 

      SECOND
        AMENDED & RESTATED ADMINISTRATIVE
        SERVICES AGREEMENT

    

     

    
      
        
        

      

      
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    ARTICLE
      VII

     

    TERM
      AND
      TERMINATION

     

    Section
      7.1 Term.

     

    The
      initial term of this Agreement shall be from the Effective Date through December
      31, 2013; provided, however, that in the absence of written notice delivered
      to
      the other party by either party to this Agreement of the intention not to
      continue under the terms of this Agreement, given no later than the day that
      is
      180 days before December 31, 2013, and each successive anniversary thereof,
      the
      term of this Agreement shall be extended for one additional calendar year until
      either or both parties have given notice of their intention to terminate. It
      is
      the intention of this "evergreen" extension clause that each party have at
      least
      180 days notice of the other party's intention not to continue under this
      Agreement. 

     

    Section
      7.2 Termination
      by BEC.

     

    (a) Upon
      the
      occurrence of any of the following events, BEC may terminate this Agreement
      by
      giving written notice of such termination to BreitBurn Management:

     

    (i) a
      BEC
      Change in Control; 

     

    (ii) a
      BBEP
      Change in Control; 

     

    (iii) a
      BreitBurn Management Change in Control; or

     

    (iv) BreitBurn
      Management's failure to pay employees providing Services hereunder within thirty
      (30) days of the date such employees’ payment is due, subject to the limitations
      described in Section 4.5.

     

    Any
      termination under this Section 7.2(a) shall become effective, at the election
      of
      BEC as set forth in its notice, either: (1) at the end of the calendar month
      following the calendar month during which the notice first described in this
      Section 7.2(a) is delivered; or (2) if Transition Services are requested in
      writing by BEC pursuant to this Section 7.2(a) and Article XI, at the end of
      the
      monthly period set forth in the notice requesting such Transition Services,
      which period may extend only until the end of the sixth calendar month following
      the calendar month during which the notice first described in this Section
      7.2(a) is delivered.

     

    (b) In
      addition to its rights under Sections 7.1 and 7.2(a), beginning no earlier
      than
      the day that is 180 days before December 31, 2010, upon 180 days prior written
      notice, BEC may provide written notice to BreitBurn Management that BEC does
      not
      believe that BreitBurn Management is devoting adequate time and resources to
      BEC, or is not effectively maximizing the value of BEC. Unless the situation
      is
      reasonably corrected by BreitBurn Management within the ensuing 180 days, then
      BEC may elect to terminate this Agreement effective as of the end of the 180
      day
      period following the delivery notice by BEC under this paragraph
      7.2(b).

    
       

      BREITBURN
        ENERGY COMPANY L.P 

      SECOND
        AMENDED & RESTATED ADMINISTRATIVE
        SERVICES AGREEMENT

       

    

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

     

    (c) In
      the
      event that BBEP or BreitBurn Management becomes Bankrupt or dissolves or
      commences liquidation or winding-up, this Agreement shall automatically
      terminate without notice to BreitBurn Management.

     

    (d) If
      this
      Agreement is terminated prior to December 31, 2013, pursuant to Section 7.2
      (a)
      (ii) or Section 7.2 (a) (iii) due to the fact that both Halbert Washburn and
      Randall Breitenbach are no longer employed as Co-CEOs of BBEP or BreitBurn
      Management or Section 7.2 (b) hereof, BEC shall be obligated to promptly
      reimburse BreitBurn Management for its reasonable expenses incurred in reducing
      its staffing, including, but not limited to reasonable severance payments,
      up to
      a maximum of the lesser of two times the Fixed Fee in effect at the date of
      such
      termination and $2,000,000.

     

    Section
      7.3 Termination
      by BreitBurn Management.

     

    (a) Upon
      the
      occurrence of a BEC Change in Control, BreitBurn Management may terminate this
      Agreement by giving written notice of such termination to BEC:

     

    Any
      termination under this Section 7.3(a) shall become effective at the later to
      occur of: (1) the end of the calendar month following the calendar month during
      which the notice first described in this Section 7.3(a) is delivered; or (2)
      if
      Transition Services are requested in writing by BEC pursuant to Article XI,
      at
      the end of the monthly period set forth in the notice requesting such Transition
      Services, which period may extend only until the end of the sixth calendar
      month
      following the calendar month during which the notice first described in this
      Section 7.3(a) is delivered.

     

    (b) In
      the
      event that BEC becomes Bankrupt or dissolves or commences liquidation or
      winding-up, this Agreement shall automatically terminate without notice to
      BEC.

     

    Section
      7.4 Effect
      of Termination.

     

    If
      this
      Agreement is terminated in accordance with Section 7.2 or 7.3, at the effective
      date of termination, all rights and obligations under this Agreement shall
      cease
      except for (a) obligations that expressly survive termination of this Agreement;
      (b) liabilities and obligations that have accrued prior to such termination,
      including the obligation to pay any amounts that have become due and payable
      prior to such termination, and (c) the obligation to pay any portion of the
      Payment Amount that has accrued prior to such termination, even if such portion
      has not become due and payable at that time.

     

    Section
      7.5 Preferential
      Right re BreitBurn Management.

     

    In
      the
      event that BBEP elects to no longer utilize the services of any administrative
      office of BreitBurn Management in the management and operation of BBEP or if,
      in
      conjunction with a BBEP Change in Control, the purchaser of BBEP, or
      substantially all of its assets, intends not to utilize substantially all of
      the
      services of BreitBurn Management above the Asset Manager (or equivalent) level
      at any administrative office, then BEC shall have a preferential right to
      acquire, for the sum of Ten Dollars, all of the assets of BreitBurn Management
      with respect to such office(s), including but not limited to, furniture and
      office furnishings, office equipment and computers, software and software
      licenses (to the extent transferable), supplies, telephone and communications
      equipment, and, at BEC’s separate election, lease(s) on office and parking
      space.

    
       

      BREITBURN
        ENERGY COMPANY L.P 

      SECOND
        AMENDED & RESTATED ADMINISTRATIVE
        SERVICES AGREEMENT

    

     

    
      
        
        

      

      
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    Section
      7.6 Exclusivity.

     

    During
      the term of this Agreement, BreitBurn Management agrees that it will not provide
      any services comparable to those Services provided to BEC hereunder to any
      Person in the oil and gas industry other than to any member of the BBEP Group
      or
      to any other member of the BEC Group without the prior written consent of BEC;
      provided, however, that in connection with a sale or transfer of oil and gas
      properties or interests therein to any third party purchaser, BreitBurn
      Management may agree to provide transitional services to such third party
      purchaser for a period of up to one year.

     

    ARTICLE
      VIII

     

    CONFIDENTIAL
      INFORMATION 

     

    Section
      8.1 Nondisclosure.

     

    Each
      of
      BreitBurn Management and BEC agrees that (i) it will not disclose to any third
      party or use any Confidential Information disclosed to it by the other except
      as
      expressly permitted in this Agreement, and (ii) it will take all reasonable
      measures to maintain the confidentiality of all Confidential Information of
      the
      other Party in its possession or control, which will in no event be less than
      the measures it uses to maintain the confidentiality of its own information
      of
      similar type and importance.

     

    Section
      8.2 Permitted
      Disclosure.

     

    Notwithstanding
      the foregoing, each Party may disclose Confidential Information (i) to the
      extent required by a court of competent jurisdiction or other governmental
      authority or otherwise as required by law, including without limitation
      disclosure obligations imposed under the federal securities laws, provided
      that
      such Party has given the other Party prior notice of such requirement when
      legally permissible to permit the other Party to take such legal action to
      prevent the disclosure as it deems reasonable, appropriate or necessary, or
      (ii)
      to its consultants, legal counsel, Affiliates, accountants, banks and other
      financing sources and their advisors; provided, however, that such Persons
      shall
      be bound by the confidentiality obligations imposed pursuant to this Agreement
      with respect to such Confidential Information.

    
       

      BREITBURN
        ENERGY COMPANY L.P 

      SECOND
        AMENDED & RESTATED ADMINISTRATIVE
        SERVICES AGREEMENT

       

    

    
      
        
        

      

      
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    ARTICLE
      IX

     

    LIMITATION
      OF LIABILITY; INDEMNIFICATION 

     

    Section
      9.1 Limitation
      of Liability.

     

    Except
      as
      may be provided in Section 9.2 below, each BreitBurn Management Party shall
      not
      be liable to each BEC Group Party for any liabilities, claims, damages, losses
      or expenses, including, but not limited to, any special, indirect, incidental
      or
      consequential damages, of a BEC Group Party arising in connection with this
      Agreement and the Services provided hereunder.

     

    Section
      9.2 Indemnification.

     

    (a) BreitBurn
      Management shall indemnify, defend and hold harmless each of the BEC Group
      Parties from and against all Damages of any kind or nature, of third parties
      unrelated to any BEC Group Party, caused by or arising in connection with the
      gross negligence or willful misconduct of BreitBurn Management in connection
      with the performance of the Services.

     

    (b) From
      and after the Effective Date and except for those matters for which BreitBurn
      Management has indemnity obligations pursuant to Section 9.2(a), BEC shall
      indemnify, defend and hold harmless each BreitBurn Management Party from and
      against all liabilities, claims, damages, losses and expenses (including, but
      not limited to, court costs and reasonable attorneys' fees)(collectively
      referred to as "Damages") of any kind or nature, arising from or related to
      the
      Business, the Services or their performance by BreitBurn Management under this
      Agreement.

     

    ARTICLE
      X

     

    DISPUTE
      RESOLUTION

     

    If
      the
      Parties are unable to resolve any dispute regarding the validity or terms of
      this Agreement or its termination, service or performance issues, there is
      a
      material breach of this Agreement that has not been corrected within thirty
      (30)
      days of receipt of notice of such breach or any other dispute between the
      parties related to this Agreement, either party hereto may refer the matter
      to
      an arbitrator selected in accordance with the rules of JAMS in Los Angeles
      County, California as the exclusive remedy for any such dispute, and in lieu
      of
      any court action, which is hereby waived. The only exception shall be a claim
      by
      either Party for injunctive relief pending arbitration.

    
       

      BREITBURN
        ENERGY COMPANY L.P 

      SECOND
        AMENDED & RESTATED ADMINISTRATIVE
        SERVICES AGREEMENT

       

    

    
      
        
        

      

      
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    ARTICLE
      XI

     

    TRANSITION
      SERVICES

     

    Section
      11.1 General
      Transition Services.

     

    In
      the
      event that this Agreement is terminated by the giving of notice pursuant to
      Section 7.1 or in the event that BEC makes an election pursuant to Section
      7.2(a) or 7.3(a), BEC shall have the right to receive from BreitBurn Management
      commercially reasonable transitional services (the "Transition Services") in
      addition to Services under this Agreement. Such Transition Services shall
      provide for the orderly, efficient and timely transition to BEC of the
      responsibility for the administrative services previously provided by BreitBurn
      Management hereunder. Such Transition Services shall be provided for the
      applicable Payment Amount otherwise attributable to the period in question
      without any increase in the Fixed Fee. The Transition Services shall be provided
      for a six (6) month period (the "Transition Period"). Transition Services shall
      at the request of the BEC Group include, without limitation, the
      following:

     

    (a) BreitBurn
      Management shall segregate all books, records and data that relate to Business
      or the assets of the BEC Group and provide the BEC Group with a listing of
      all
      such books, records and data. BreitBurn Management shall take all such steps,
      including using reasonable commercial efforts to obtain any applicable
      approvals, consents, or waivers, as are necessary or appropriate to transfer
      such books, records and data to the BEC Group.

     

    (b) BreitBurn
      Management shall take all necessary or appropriate steps to transfer and to
      transition to the BEC Group the information, knowledge and systems data relating
      to the Services currently provided by BEC under this Agreement, including
      without limitation, banking arrangements, taxation matters, lease, land,
      conveyancing and real estate administration matters, treasury matters, insurance
      coverage matters, information systems matters, human resource matters, marketing
      matters, operations, development, exploration and geological and geophysical
      matters, and accounting and audit matters.

     

    (c) BreitBurn
      Management shall take all necessary or appropriate steps, including using
      reasonable commercial efforts to obtain any applicable approvals, consents
      or
      waivers, to transfer all contracts applicable to the Business and the assets
      of
      the BEC Group.

     

    (d) BreitBurn
      Management shall take all reasonably necessary or appropriate steps, including
      using reasonable commercial efforts to obtain any applicable consents, approvals
      or waivers, in order to transfer all data for all systems relating to the
      Business and the assets of the BEC Group. The BEC Group shall be entitled to
      use
      BreitBurn Management systems, software and hardware until such time as such
      data
      is transferred to the BEC Group and the BEC Group systems are fully functional.
      To the extent software systems can be duplicated at no cost to BreitBurn
      Management a copy shall be provided to BEC, and to the extent software systems
      relate solely to the assets of the BEC Group, they shall be transferred to
      BEC.

     

    
      BREITBURN
        ENERGY COMPANY L.P 

      SECOND
        AMENDED & RESTATED ADMINISTRATIVE
        SERVICES AGREEMENT

       

    

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

     

    (e) BreitBurn
      Management shall take all reasonably necessary or appropriate steps, including
      using reasonable commercial efforts to obtain any applicable consents,
      appraisals or waivers, to transfer all technical data and knowledge, studies,
      reports, working papers, logs and interpretations related to the Business or
      the
      assets of the BEC Group to the BEC Group.

     

    Section
      11.2 Access. 

     

    The
      BEC
      Group shall be entitled to have access to BreitBurn Management and its staff
      during any period during which Transition Services are being provided. The
      BEC
      Group shall also during the Transition Period have access to all books, records,
      data, systems relating to the Business and the assets of the BEC Group. The
      BEC
      Group shall be permitted to have employees or representatives in each of the
      areas of the services being provided attend at the offices of BreitBurn
      Management during normal business hours during the Transition Period and
      BreitBurn Management shall provide such persons with reasonable working areas
      comparable with BreitBurn Management employees.

     

    Section
      11.3 Employment
      Offers.

     

    The
      BEC
      Group shall be entitled during the Transition Period to offer employment or
      service contracts to those employees of BreitBurn Management who are field
      workers or officed exclusively at BEC field offices. BreitBurn Management agrees
      to use commercially reasonable efforts to assist the BEC Group in obtaining
      the
      transfer of the employment of such personnel to the BEC Group. BreitBurn
      Management and the BEC Group agree to meet and discuss whether it would be
      appropriate for other employees of BreitBurn Management who spend a material
      amount of time on BEC Group matters to transfer their employment to the BEC
      Group at the end of the Transition Period.

     

    Section
      11.4 Employee
      Plans and Obligations.

     

    BreitBurn
      Management and the BEC Group will take all reasonably necessary or appropriate
      steps, (including using reasonable commercial efforts to cause its affiliates
      to
      take necessary or appropriate steps and reasonably commercial efforts to obtain
      applicable consents, approvals and waivers) to segregate any employee plans
      and
      the obligations thereunder such that the BEC Group will only have liability
      under the employee plans relating to it. 

     

    Section
      11.5 Sale
      of BEC.

     

    BreitBurn
      Management acknowledges that the BEC Group may
      sell
      all or any portion of BEC, or all or a portion of its assets and therefore
      the
      BEC Group shall be entitled to assign the rights it has to obtain the Transition
      Services hereunder to any purchaser of the BEC Group, any part thereof, or
      any
      of its assets.

    
       

      BREITBURN
        ENERGY COMPANY L.P 

      SECOND
        AMENDED & RESTATED ADMINISTRATIVE
        SERVICES AGREEMENT

       

    

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

     

    ARTICLE
      XI1

     

    GENERAL
      PROVISIONS

     

    Section
      12.1 Notices.

     

    All
      notices or other communications required or permitted under, or otherwise in
      connection with, this Agreement must be in writing and must be given by
      depositing same in the mail, addressed to the Person to be notified, postpaid
      and registered or certified with return receipt requested or by transmitting
      by
      national overnight courier or by transmitting by national overnight courier
      or
      by delivering such notice in person or by facsimile to such Party. Notice given
      by mail, national overnight courier or personal delivery shall be effective
      upon
      actual receipt. Notice given by facsimile shall be effective upon confirmation
      of receipt when transmitted by facsimile if transmitted during the recipient's
      normal business hours or at the beginning of the recipient's next business
      day
      after receipt if not transmitted during the recipient's normal business hours.
      All notices to be sent to a Party pursuant to this Agreement shall be sent
      to or
      made at the address, in each case as follows:

     

    
      	
              if
                to BEC:

            
	 
	
              BreitBurn
                Energy Company L.P.

            
	
              515
                South Flower Street, Suite 4800 Los Angeles, CA 90071

            
	
              Attention:
                Randall H. Breitenbach

            
	
              Fax:
                (213) 225-5917

            
	 
	
              With
                copies to:

            
	 
	
              Metalmark
                Capital Holdings LLC

            
	
              1177
                Avenue of the Americas, 40th Floor

            
	
              New
                York, New York 10036

            
	
              Attention:

            	
              Gregory
                Myers

            
	
              Facsimile:

            	
              (212)
                823-1949

            
	 	 
	
              and

            
	 
	
              Greenhill
                Capital Partners, LLC

            
	
              300
                Park Avenue

            
	
              New
                York, New York 10022

            
	
              Attention:

            	
              V.
                Frank Pottow

            
	
              Facsimile:

            	
              (212)
                389-1715

            
	 	 
	
              and

            

    

    
       

      BREITBURN
        ENERGY COMPANY L.P 

      SECOND
        AMENDED & RESTATED ADMINISTRATIVE
        SERVICES AGREEMENT

       

      
        
          
          

        

        
          19

          
            

          

        

        
          
          

        

      

    

     

    
      	
              Davis
                Polk & Wardwell

            
	
              450
                Lexington Avenue

            
	
              New
                York, New York 10017

            
	
              Attention:

            	
              John
                A. Bick

            
	
              Facsimile:

            	
              (212)
                450-3800

            
	 	 
	
              if
                to BreitBurn Management:

            
	 
	
              BreitBurn
                Management Company, LLC

            
	
              515
                South Flower Street, Suite 4800

            
	
              Los
                Angeles, California 90071

            
	
              Attention:

            	
              Halbert
                S. Washburn

            
	
              Facsimile:

            	
              (213)
                225-5917

            
	 
	
              and

            
	 
	
              Vinson
                & Elkins

            
	
              666
                Fifth Avenue

            
	
              New
                York, New York 10103

            
	
              Attention:

            	
              Alan
                P. Baden

            
	 	
              Shelley
                A. Barber

            
	
              Facsimile:

            	
              (917)
                849-5337

            
	 	
              (917)
                849-5353

            

    

    

    Section
      12.2 Further
      Action.

     

    The
      Parties shall execute and deliver all documents, provide all information and
      take or refrain from taking action as may be necessary or appropriate to achieve
      the purposes of this Agreement.

     

    Section
      12.3 Binding
      Effect.

     

    This
      Agreement shall be binding upon and inure to the benefit of the Parties hereto
      and their heirs, executors, administrators, successors, legal representatives
      and permitted assigns.

     

    Section
      12.4 Integration.

     

    This
      Agreement constitutes the entire Agreement among the Parties hereto pertaining
      to the subject matter hereof and supersedes all prior agreements and
      understandings pertaining thereto.

     

    
      BREITBURN
        ENERGY COMPANY L.P 

      SECOND
        AMENDED & RESTATED ADMINISTRATIVE
        SERVICES AGREEMENT

       

    

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

    

     

    Section
      12.5 Creditors.

     

    None
      of
      the provisions of this Agreement shall be for the benefit of, or shall be
      enforceable by, any creditor of BEC.

     

    Section
      12.6 Waiver.

     

    No
      failure by any party to insist upon the strict performance of any covenant,
      duty, agreement or condition of this Agreement or to exercise any right or
      remedy consequent upon a breach thereof shall constitute waiver of any such
      breach of any other covenant, duty, agreement or condition.

     

    Section
      12.7 Counterparts.

     

    This
      Agreement may be executed in counterparts, all of which together shall
      constitute an agreement binding on all the Parties hereto, notwithstanding
      that
      all such Parties are not signatories to the original or the same counterpart.
      Each Party shall become bound by this Agreement immediately upon affixing its
      signature hereto.

     

    Section
      12.8 Applicable
      Law.

     

    This
      Agreement shall be construed in accordance with and governed by the laws of
      the
      State of Delaware, without regard to the principles of conflicts of
      law.

     

    Section
      12.9 Invalidity
      of Provisions.

     

    If
      any
      provision of this Agreement is or becomes invalid, illegal or unenforceable
      in
      any respect, the validity, legality and enforceability of the remaining
      provisions contained herein shall not be affected thereby.

     

    Section
      12.10 Amendment
      or Restatement.

     

    This
      Agreement may be amended or restated only by a written instrument executed
      by
      each of the Parties; provided, however, that BreitBurn Management may not,
      without the prior approval of the Conflicts Committee of BreitBurn GP, LLC,
      agree to any amendment or modification of this Agreement that the Conflicts
      Committee determines will adversely affect the holders of common units
      representing limited partner interests in BBEP.

     

    Section
      12.11 Directly
      or Indirectly.

     

    Where
      any
      provision of this Agreement refers to action to be taken by any Party, or which
      such Party is prohibited from taking, such provision shall be applicable whether
      such action is taken directly or indirectly by such Party, including actions
      taken by or on behalf of any Affiliate of such Party.

    
       

      BREITBURN
        ENERGY COMPANY L.P 

      SECOND
        AMENDED & RESTATED ADMINISTRATIVE
        SERVICES AGREEMENT

       

    

    
      
        
        

      

      
        21

        
          

        

      

      
        
        

      

    

     

    Section
      12.12 Prior
      Services.

     

    Nothing
      in this Agreement is intended to change, affect or supersede the provisions
      of
      the prior Administrative Services Agreement amended hereby and the parties
      each
      remain responsible for all obligations, costs, liabilities and benefits provided
      for under that prior agreement through the Effective Date of this Second Amended
      and Restated Agreement (and for such extended periods as may have been provided
      for thereunder, as applicable).

    
       

      BREITBURN
        ENERGY COMPANY L.P 

      SECOND
        AMENDED & RESTATED ADMINISTRATIVE
        SERVICES AGREEMENT

       

    

    
      
        
        

      

      
        22

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the Parties have executed this Agreement on, and effective
      as
      of, the Effective Date.

     

    
      	
              BREITBURN
                ENERGY COMPANY L.P.

            
	 
	
              By:
                BEH (GP), its General Partner

            
	 
	
              By:
                

            	
              /s/
                Halbert S. Washburn

            
	 	 
	
              
                Name: Halbert
                  S. Washburn

              

            
	 
	
              
                Title:
                  Co-Chief Executive Officer

              

            
	 
	
              BREITBURN MANAGEMENT COMPANY, LLC

            
	 
	
              By:
                

            	
              /s/
                Halbert S. Washburn

            
	 
	
              
                Name: Halbert
                  S. Washburn

              

            
	 
	
              Title:
                Co-Chief Executive Officer

            

    

    
       

      BREITBURN
        ENERGY COMPANY L.P 

      SECOND
        AMENDED & RESTATED ADMINISTRATIVE
        SERVICES AGREEMENT

       

      
        
          
          

        

        
          23

          
            

          

        

        
          
          

        

      

    

     

    SCHEDULE
      I

     

    SERVICES
      PROVIDED BY BREITBURN MANAGEMENT TO BEC

     

    1.  Accounting

     

    2. 
      Information
      Technology

     

    3.  Real
      Property

     

    4.  Legal

     

    5.  Operations/Reservoir
      Engineering/Geology/Geophysics

     

    6.  Administrative
      Services

     

    7.  Financial
      Services

     

    8.  Insurance
      Service

     

    9.  Risk
      Management

     

    10.Corporate
      Development

     

    11.
      Commercial
      and Marketing

     

    12.Treasury

     

    13.Tax

     

    14.
      Audit

     

    15.
      SOX

     

    16.
      Investor
      Relations

     

    17.
      EH
&
      S

     

    18.
      HR

     

    19.
      Regulatory
      Compliance

     

    20.
      Land
      Administration

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Approval
      Levels

     

    Other
      than pursuant to commitments set forth in BEC's annual budget of capital
      expenditures, operating expenses and general and administrative expenses as
      supplemented by forecast updates thereto, BreitBurn Management shall not cause
      BEC to directly or indirectly do any of the following without the prior approval
      of a designated representative of BreitBurn Energy Holdings LLC: (i) sell,
      pledge, dispose of or encumber any assets, except in the ordinary course of
      business, for a consideration in excess of $500,000 in aggregate or incur any
      capital expenditure for the period following the date hereof in excess of
      $250,000 individually or $1,000,000 in aggregate, or except for the sale of
      petroleum substances in the ordinary course of business and consistent with
      BEC's current marketing practices; (ii) acquire by merger, amalgamation,
      consolidation or acquisition of shares or assets, any corporation, partnership
      or other business organization or division thereof, or, except for investments
      in securities for hedging purposes made in the ordinary course of business,
      make
      any investment either by purchase of shares or securities, contributions of
      capital, property transfer, or, except in the ordinary course of business,
      purchase of any property or assets of any other individual or entity; (iii)
      enter into any material joint venture, farm-out or other partnering arrangement;
      (iv) except for draws in the ordinary course of business under any exisitng
      and
      approved credit facility, incur any indebtedness for borrowed money or any
      other
      material liability or obligation or issue any debt securities or assume,
      guarantee, endorse or otherwise as an accommodation become responsible for,
      the
      obligations of any other individual or entity, or make any loans or advances;
      (v) pay, discharge or satisfy any material claims, liabilities or obligations
      other than the payment, discharge or satisfaction in the ordinary course of
      business, consistent with past practice, of liabilities reflected or reserved
      against in its financial statements or incurred in the ordinary course of
      business consistent with past practice; (vi) authorize, recommend or propose
      any
      release or relinquishment of any material contract right; (vii) waive, release,
      grant or transfer any rights of material value or modify or a change in any
      material respect any existing license, lease, contract, production sharing
      agreement, government land concession, development plan or other document;
      (viii) enter into or terminate any interest rate swaps, currency swaps, hedges
      or any other rate fixing agreement for a financial transaction or enter into
      any
      hedge, put or call arrangement of any sort or any forward sale agreement for
      commodities; (ix) authorize any of the foregoing, or enter into or modify any
      contract, agreement, commitment or arrangement to do any of the foregoing,
      except as permitted above.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Schedule
      II

    

    BEC
      Cost
      Billing and Sharing

     

    Direct
      Costs –
      all
      costs
      and expenses of every type, including but not limited to, labor, materials,
      and
      equipment, incurred directly in the operation of any property owned by BEC
      will
      be directly charged to BEC. In the case of properties jointly owned by BEC
      and
      BBEP, then Direct Costs are costs attributable to the proportionate ownership
      interest owned by BEC. These costs include, but are not necessarily limited
      to:

     

    
      	 	
              ·

            	
              All
                lease operating expenses, fuel costs, utilities, chemicals, equipment
                costs, and the costs of all outside vendors and contractors for supplies,
                equipment and work performed in, or directly for the benefit of,
                the
                field. 

            

    

     

    
      	 	
              ·

            	
              All
                salaries, benefits, recruiting costs and short term incentive payments
                attributable to individuals working directly on BEC Business or
                properties.

            

    

     

    
      	 	
              ·

            	
              All
                costs associated with drilling, reworking, completing, maintaining
                and
                operating all producing and injection wells.

            

    

     

    
      	 	
              ·

            	
              All
                abandonment and remediation/environmental costs incurred with respect
                to
                the field.

            

    

     

    
      	 	
              ·

            	
              Liability
                and property insurance costs are allocated to each property based
                upon the
                risk allocation provided by the broker and
                underwriters.

            

    

     

    
      	 	
              ·

            	
              All
                direct costs associated with North Hills LLC or other real estate
                owned by
                BEC.

            

    

     

    
      	 	
              ·

            	
              The
                same standards apply to direct billing of charges to
                BBEP.

            

    

     

    LTIP
      Costs–
      all
      costs
      associated with BEC sponsored long term incentive plans or other employee
      incentive plans, including equity-based plans or agreements will be directly
      charged to BEC. 

     

    
      	 	
              ·

            	
              Provided
                below are two lists showing all LTIP or equity plans currently sponsored
                in whole or in part by BEC: 

            

    

     

    
      	 	
              ·

            	
              It
                is the understanding of the parties that at the closing of the pending
                acquisition of ownership interests in BEC from Provident, the following
                plans and/or awards will be fully paid out pursuant to the change
                in
                control provisions applicable to such plans:

            

    

     

    
      	
              EQUITY
                PLAN

            	
              LIABLE
                PARTY

            	
              ALLOCATED
                LIABILITY PERCENTAGE

            
	
              BreitBurn
                Energy Company L.P. 2007 Long-Term Incentive Plan – Performance and
                Restricted Awards

            	
              BEC

            	
              100%

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
              EQUITY
                PLAN

            	
              LIABLE
                PARTY

            	
              ALLOCATED
                LIABILITY PERCENTAGE

            

    

    
      	
              BreitBurn
                Energy Company L.P. Unit Appreciation Plan for Officers and Key
                Individuals—all Unit Appreciation Rights tied to the net asset value of
                BECLP (per Article II of the applicable Amended and Restated Award
                Agreements under such plan)

            	
              BEC

            	
              100%

            
	 	 	 
	
              BreitBurn
                Energy Company L.P. Unit Appreciation Plan for Officers and Key
                Individuals—all Unit Appreciation Rights with an exercise price based on
                the original price per unit in the Partnerships initial public offering
                (per Article IV of the applicable Amended and Restated Award Agreements
                under such plan)

            	
              BEC

            	
              100%

            
	 	 	 
	
              BECLP
                Director Grants – Grant Billing & Randy Findlay 

            	
              BEC

            	
              100%
                

            
	 	 	 
	
              BreitBurn
                Energy Company L.P. Unit Appreciation Plan – Profits Interest Agreements
                dated October 1, 2007 with Mssrs. Jackson, Andress, Brown, Jackson
                Washburn and Gregory Moroney; [All of these interests will be converted
                to
                Class A shares in BEH except Moroney to be paid in cash]

            	
              BEC

            	
              100%

            

    

     

    
      	 	
              ·

            	
              After
                the closing of the pending acquisition of ownership interests in
                BEC from
                Provident, the only remaining historical LTIP or equity plans sponsored
                by
                BEC are shown below. BEC will be charged its proportionate share
                of the
                costs of these plans as they are paid out. The parties agree that
                no
                further awards shall be made to any plan participants under these
                plans.

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
              EQUITY
                PLAN

            	
              LIABLE
                PARTY

            	
              ALLOCATED
                LIABILITY PERCENTAGE

            
	
              BreitBurn
                Energy Company L.P. Long Term Incentive Plan (as amended on June
                28,
                2006)—all awards granted in 2006

            	
              BBEP

              BEC

            	
              36%

              64%

            
	 	 	 
	
              BreitBurn
                Energy Company L.P. Long Term Incentive Plan (as amended on June
                28,
                2006)—all awards granted in 2007

            	
              BEC

            	
              100%

            
	 	 	 
	
              BreitBurn
                Energy Company L.P. Unit Appreciation Plan for Employees and
                Consultants

            	
              BBEP

              BEC

            	
              48.9%

              51.1%

            

    

     

    
      	 	
              ·

            	
              Any
                new LTIP plan established by BEC will be administered by BreitBurn
                Management and will be charged directly to
                BEC.

            

    

     

    
      	 	
              ·

            	
              BEC
                will not be responsible for the costs of LTIP Plans sponsored by
                BBEP,
                including the costs of RPU’s and CPU’s denominated to be paid in BBEP
                units.

            

    

     

    Third-Party
      Costs
      -
costs
      incurred by
      BreitBurn Management on behalf of BEC
      with
      entities or persons other than a BEC Group Party or a BreitBurn Management
      Party
      relating solely to the Business or the assets of BEC and which are separately
      billed and segregated from costs incurred with respect to the assets of BBEP,
      including but not limited to, the third-party costs shown below, will be billed
      directly to BEC.

     

    
      	 	
              ·

            	
              Outside
                accounting, auditing, tax and SOX compliance fees and
                costs.

            

    

     

    
      	 	
              ·

            	
              Outside
                reserve and other engineering fees and
                costs.

            

    

     

    
      	 	
              ·

            	
              Outside
                legal fees and costs.

            

    

     

    
      	 	
              ·

            	
              Outside
                risk management costs.

            

    

     

    
      	 	
              ·

            	
              Consultant
                and independent contractor fees and
                costs.

            

    

     

    
      	 	
              ·

            	
              All
                fees and costs associated with a BEC acquisition or
                divestiture.

            

    

     

    
      	 	
              ·

            	
              Costs
                incurred by North Hills LLC or in conjunction with other BEC owned
                real
                estate.

            

    

     

    
      	 	
              ·

            	
              The
                same standards apply to direct billing of third-party costs to
                BBEP.

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Fixed
      Fee
      -
a
      monthly
      fee of Seven Hundred and Seventy-Five Thousand Dollars ($775,000) for the
      performance of the Services through December 31, 2008 as adjusted for the period
      after December 31, 2008 pursuant to Section 4.1(b) and based on the parameters
      set forth below.

     

    
      	 	
              ·

            	
              The
                Fixed Fee will reimburse BreitBurn Management an allocated portion
                of all
                general and administrative costs incurred by BreitBurn Management
                for
                salaries, overhead and other costs utilized in the operation of both
                BBEP
                and BEC and their properties. These costs (“Fixed Fee Costs”) include all
                general and administrative costs incurred by BreitBurn Management
                at or
                above the Asset Manager level (or its equivalent) including but not
                limited to:

            

    

     

    
      	 	
              o

            	
              Salaries,
                bonuses, recruitment costs, benefits and related human resources
                expenses
                related to employees and contract labor who perform support Services
                for
                both BBEP and BEC generally in the areas of: management; accounting,
                tax
                and internal audit; legal; finance; information technology; environmental,
                health and safety; engineering; geotechnical; business development;
                risk
                management; land and real estate; human resources; treasury; and
                office
                support.

            

    

     

    
      	 	
              o

            	
              Office
                rent, supplies, equipment rentals and leases, expensed computer and
                information technology costs and telephone
                charges.

            

    

     

    
      	 	
              o

            	
              Computer
                and information technology equipment, office furnishings, and other
                capital costs, charged annually on the basis of a reasonable ammortization
                schedule.

            

    

     

    
      	 	
              o

            	
              Legal
                and other professional costs.

            

    

     

    
      	 	
              o

            	
              Dues
                and publications, postage, charitable gifts and delivery
                costs.

            

    

     

    
      	 	
              o

            	
              Automobiles.

            

    

     

    
      	 	
              o

            	
              Travel
                and entertainment.

            

    

     

    
      	 	
              o

            	
              Insurance
                not directly charged to fields, including Director’s and Officer’s
                liability insurance. Insurance is charged to BBEP and BEC based on
                the
                risk allocation provided by the broker and
                underwriters.

            

    

     

    
      	 	
              o

            	
              None
                of the above expenses shall be duplicative of Direct Costs, LTIP
                Costs or
                Third-Party Costs. The costs covered by the Fixed Fee shall exclude
                all
                such costs.

            

    

     

    
      	 	
              ·

            	
              The
                Fixed Fee costs shall be allocated between BBEP and BEC based on
                a
                detailed review of how the individual employees working on both BEC
                and
                BBEP Business and Properties will most likely split their time between
                BBEP and BEC during the ensuing calendar year. This estimation will
                be
                made in good faith by BreitBurn Management based upon a review of
                the
                ensuing year’s projected capital budgets for the entities and the expected
                allocation of resources for both routine and new initiatives.
                

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	 	
              ·

            	
              For
                calendar year 2008, the analysis described above resulted in an allocation
                of Fixed Fee Costs of 68% to BBEP and 32% to BEC. That figure will
                be
                reevaluated and adjusted each year based upon the projected budgets
                for
                each entity as described here. 

            

    

     

    
      	 	
              ·

            	
              The
                Fixed Fee will be determined by multiplying the applicable allocation
                percentage times the Fixed Fee Costs portion of the BreitBurn Management
                budget for the applicable year. The resulting allocation applicable
                to BEC
                for the year shall be divided by 12 to arrive at the monthly Fixed
                Fee to
                be utilized during the ensuing calendar year.

            

    

     

    
      	 	
              ·

            	
              On
                or about November 1 of each year, BreitBurn Management will supply
                both
                BBEP and BEC with a recommendation for the allocation of Fixed Fee
                Costs
                and proposed monthly Fixed Fee for the ensuing year’s budget, together
                with all appropriate backup material explaining the recommendation
                for the
                proposed fee.

            

    

     

    
      	 	
              ·

            	
              In
                the event that either BBEP or BEC make a significant acquisition
                or
                divestiture during the course of a calendar year, then BreitBurn
                Management will reevaluate the allocation percentage for Fixed Fee
                costs
                and, if appropriate, recommend a revised monthly Fixed Fee to be
                applicable for the remainder of the calendar
                year.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00147-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00147-of-00352.parquet"}]]