Document:

exv10w1

 

EMPLOYMENT AGREEMENT

     This EMPLOYMENT AGREEMENT (“Agreement”) is entered into as of this 18th day of December 2006 (the
“Effective Date”), by and between S1 Corporation, a Delaware corporation (the “Company”), and
Johann Dreyer, an individual (the “Executive”).

     WHEREAS, the Executive is currently employed as the CEO and President of the Company;

     WHEREAS, the Company and the Executive desire to enter into this Employment Agreement to set out
the terms and conditions for the employment relationship of the Executive with the Company from and
after the Effective Date; and

     WHEREAS, the board of directors of the Company (the “Board”) has approved and authorized the
Company’s execution, delivery and performance of this Agreement.

     NOW, THEREFORE, in consideration of the mutual covenants and agreements set forth herein and other
good and valuable consideration, the receipt and sufficiency of which hereby are acknowledged, the
parties hereto agree as follows:

     1. Employment Agreement. On the terms and conditions set forth in this Agreement, the
Company agrees to employ the Executive and the Executive agrees to be employed by the Company for
the Employment Period set forth in Section 2 hereof and in the position and with the duties set
forth in Section 3 hereof. Terms used herein with initial capitalization not otherwise defined are
defined in Section 20 below.

     2. Term. The initial term of employment under this Agreement shall be for a three-year
period commencing on the Effective Date (the “Initial Term”). The term of employment shall be
automatically renewed for an additional consecutive 12-month period (the “Extended Term”) as of the
first and every subsequent anniversary of the Effective Date, unless and until either party
provides written notice to the other party in accordance with Section 10 hereof not less than 90
days before such anniversary date that such party is terminating the term of employment under this
Agreement (“Non-Renewal”), which termination shall be effective as of the end of such Initial Term
or Extended Term, as the case may be, or until such term of employment is otherwise sooner
terminated as hereinafter set forth. Such Initial Term and all such Extended Terms are
collectively referred to herein as the “Employment Period.” A notice of Non-Renewal given by
either party to this Agreement shall not be deemed a termination of the Executive’s employment for
purposes of Section 9 of this Agreement unless otherwise expressly provided in such notice of
Non-Renewal. The Company’s obligations under Section 9 hereof shall survive the expiration or
termination of the Employment Period.

     3. Position and Duties. The Executive shall serve as the Chief Executive Officer of the
Company during the Employment Period. As the Chief Executive Officer, the Executive shall render
executive, policy and other management services to the Company of the type customarily performed by
persons serving in such capacity. The Executive shall report to the Board of Directors of the
Company. The Executive shall also perform such other duties with the Company and with any
Subsidiary as the Chief Executive Officer of the Company or the Board may from time to time
reasonably determine and assign to the Executive. The Executive shall devote the Executive’s
reasonable best efforts and substantially full business time to the performance of the Executive’s
duties and the advancement of the business and affairs of the Company. The Executive agrees that
during the Employment Period he or she will not be entitled to additional compensation for serving as a member of the board of
directors of the Company or any Subsidiary if he or she is elected to serve thereon.

     4. Place of Performance. In connection with the Executive’s employment by the Company, the
Executive shall be based at the offices of the Company in Atlanta, Georgia except as otherwise
agreed by the Executive and the Company and except for reasonable travel on Company business.

     5. Compensation and Benefits; Stock Options.

 

 

          (a) Base Salary. During the Employment Period, the Company shall pay to the Executive
an annual base salary (the “Base Salary”) at the rate of $375,000 per year. The Base Salary shall
be reviewed no less frequently than annually and may be increased at the discretion of the Company.
The Base Salary shall be payable semi-monthly or in such other installments as shall be consistent
with the Company’s payroll procedures.

          (b) Annual Bonus. The Executive will be eligible to receive an on target annual
bonus, payable no later than the end of the first fiscal quarter of each calendar year during the
Employment Period (pro-rated for any period that is less than 12 months) of up to $225,000 for such
calendar year, based on the attainment of specific Company performance targets as may be agreed
upon by the Executive and the Company annually. The annual bonus will be designed so that upon
meeting specified minimum thresholds, partial attainment of such targets will result in the payment
of a correspondingly reduced bonus amount.

          (c) Benefits. During the Employment Period, the Executive will be entitled to
participate in any retirement, deferred compensation, fringe benefit or welfare benefit plan of the
Company (on the same terms as provided to senior executive officers of the Company), including any
plan providing for employee stock purchases, pension or retirement income, retirement savings,
employee stock ownership, deferred compensation or medical, prescription, dental, disability,
employee life, group life, accidental death or travel accident insurance benefits that the Company
may adopt for the benefit of executive employees, in accordance with the terms of such plan.
Nothing in this Agreement shall restrict the right of the Company to change insurance carriers and
to adopt, amend, terminate or modify employee benefit plans and arrangements at any time and
without the consent of the Executive.

          (d) Stock Options. The Company may grant options to purchase the stock of the Company
to the Executive in accordance with the terms of the Company’s stock option plans.

          (e) Vacation; Holidays. The Executive shall be entitled to all public holidays
observed by the Company and to annual vacation for such number of days as may be determined by the
Company and otherwise in accordance with the applicable vacation policies for senior executives of
the Company, which shall be taken at a reasonable time or times.

          (f) Withholding Taxes and Other Deductions. To the extent required by law, the
Company shall withhold from any payments due Executive under this Agreement any applicable federal,
state or local taxes and such other deductions as are prescribed by law or Company policy or are
otherwise authorized by the Executive.

     6. Expenses. The Executive is expected and is authorized to incur reasonable expenses in
the performance of his duties hereunder. The Company shall reimburse the Executive for all such
expenses promptly upon periodic presentation by the Executive of an itemized account, including
reasonable substantiation, of such expenses.

     7. Confidentiality, Non-Disclosure and Non-Competition Agreement.

     Concurrently with the execution of this Agreement, the parties are entering into a
Confidentiality, Non-Disclosure and Non-Competition Agreement (the “Related Agreement”), a copy of
which is attached hereto as Exhibit A and incorporated herein by this reference.

     8. Termination of Employment.

          (a) Permitted Terminations. The Executive’s employment hereunder may be terminated
during the Employment Period under the following circumstances:

     (i) Death. The Executive’s employment hereunder shall terminate upon the Executive’s
death;

 

 

     (ii) By the Company. The Company may terminate the Executive’s employment:

       (A) If the Executive shall have been substantially unable to perform the Executive’s material
duties hereunder by reason of illness, physical or mental disability or other similar incapacity,
which inability shall continue for three consecutive months (provided, that until such termination,
the Executive shall continue to receive his compensation and benefits hereunder, reduced by any
benefits payable to him or her under any disability insurance policy or plan applicable to him or
her); or

       (B) For Cause;

     (iii) By the Executive. The Executive may terminate his employment for any reason or
for no reason.

          (b) Termination. Any termination of the Executive’s employment by the Company or the
Executive (other than because of the Executive’s death) shall be communicated by written Notice of
Termination to the other party hereto in accordance with Section 10 hereof. For purposes of this
Agreement, a “Notice of Termination” shall mean a notice which shall indicate the specific
termination provision in this Agreement relied upon, if any, and shall set forth in reasonable
detail the facts and circumstances claimed to provide a basis for termination of the Executive’s
employment under the provision so indicated. Termination of the Executive’s employment shall take
effect on the Date of Termination.

     9. Compensation Upon Termination or Change in Control.

          (a) Death. If the Executive’s employment is terminated during the Employment Period
as a result of the Executive’s death, the Company shall pay to the Executive’s estate, or as may be
directed by the legal representatives of such estate, the Executive’s Base Salary due through the
Date of Termination, a pro rata portion of the annual bonus that would have been payable for the
calendar year of termination if the Executive’s employment had not terminated (calculated based
upon actual results through the Date of Termination and based upon budget for the remainder of the
period and pro rated for the portion of the year during which the Executive was employed) and all
other unpaid amounts, if any, to which the Executive is entitled as of the Date of Termination, at
the time such payments are due, and the Company shall have no further obligation to the Executive
under this Agreement.

          (b) Disability. If the Company terminates the Executive’s employment during the
Employment Period because of the Executive’s disability pursuant to Section 8(a)(ii)(A) hereof, the
Company shall pay the Executive the Executive’s Base Salary due through the Date of Termination, a
pro rata portion of the annual bonus that would have been payable for the calendar year of
termination if the Executive’s employment had not terminated (calculated based upon actual results
through the Date of Termination and based upon budget for the remainder of the period and pro rated
for the portion of the year during which the Executive was employed) and all other unpaid amounts,
if any, to which the Executive is entitled as of the Date of Termination, at the time such payments
are due, and the Company shall have no further obligations to the Executive under this Agreement;
provided, that payments so made to the Executive with respect to any period that the
Executive is substantially unable to perform the Executive’s material duties hereunder by reason of
illness, physical or mental illness or other similar incapacity shall be reduced by the sum of the
amounts, if any, payable to the Executive by reason of such disability, at or prior to the time of
any such payment, under any disability insurance policy or benefit plan and which amounts have not
previously been applied to reduce any such payment.

          (c) Termination by the Company for Cause or by the Executive without Good Reason. If,
during the Employment Period, the Company terminates the Executive’s employment for Cause pursuant
to Section 8(a)(ii)(B) hereof or the Executive terminates his employment without Good Reason, the
Company shall pay the Executive the Executive’s Base Salary due through the Date of Termination,
and all other unpaid amounts, if any, to which the Executive is entitled as of the Date of
Termination, at the time such payments are due, and the Company shall have no further obligations
to the Executive under this Agreement. In the event that

 

 

the Company intends to terminate the
Executive for Cause, the Executive shall have a reasonable opportunity, together with his counsel,
to be heard before the Board of Directors of the Company before such termination.

          (d) Termination by the Company without Cause or by the Executive with Good Reason. If
the Company terminates the Executive’s employment during the Employment Period other than for
Cause, disability or death pursuant to Section 8(a)(i) or (ii) hereof or the Executive terminates
employment hereunder with Good Reason, the Company shall (i) pay the Executive the Executive’s Base
Salary due through the Date of Termination, a pro rata portion of the annual bonus that would have
been payable for the calendar year of termination if the Executive’s employment had not terminated
(calculated based upon actual results through the Date of Termination and based upon budget for the
remainder of the period and pro rated for the portion of the year during which the Executive was
employed) and all other unpaid amounts, if any, to which the Executive is entitled as of the Date
of Termination, at the time such payments are due, (ii) pay, during the 12-month period commencing
on the Date of Termination (the “Severance Period”), to the Executive an aggregate amount equal to
Executive’s Base Salary, payable in equal installments on the Company’s regular salary payment
dates, (iii) pay, during the Severance Period an annual bonus equal to the average annual bonus
paid by the Company to the Executive during the last 36 months of the Executive’s employment
preceding the Date of Termination, which bonus shall be paid at the time that such bonus would have
become payable if the Executive had continued to be employed by the Company during the Severance
Period, (iv) shall continue in effect during the Severance Period the employee benefits provided to
the Executive under Section 5(c) hereof immediately before the Date of Termination (except to that,
to the extent such benefits are provided pursuant to a qualified plan under Section 401(a) of the
Internal Revenue Code of 1986, as amended (the “Code”), the Company shall provide a substantially
equivalent nonqualified benefit) and (v) shall cause all of the outstanding options then held by
the Executive to purchase stock of the Company to be: (A) fully vested and exercisable if such
termination occurs within two years after a Change in Control (or before a Change in Control has
occurred, but after the Company has commenced negotiations of a transaction that results in a
Change in Control) or (B) if (A) does not apply, vested and exercisable to the same extent that
such options would have been vested and exercisable if the Executive had continued to be employed
by the Company during the 24 months immediately following the Date of Termination (the “Vesting
Period”), plus additional pro rata vesting with respect to the period between the last vesting date
under such option during the Vesting Period and the end of the Vesting Period, in accordance with
Schedule A attached to this Agreement (and such additional vesting, if any, shall be effective as
of the Date of Termination); provided, that no notice of Non-Renewal shall be deemed to be a
termination of the Executive’s employment for such purposes unless otherwise expressly provided in
such notice of Non-Renewal. As a condition precedent to the receipt of the foregoing payments and
benefits, if requested by the Company, the Executive shall enter into an agreement with the Company
confirming the Company’s right to continued performance by the Executive of the Executive’s
obligations under the Related Agreement during the period following termination of the Executive’s
employment.

          (e) Change in Control. If a Change in Control occurs during the Employment Period,
and the Executive holds one or more outstanding options to purchase stock of the Company that do
not, by the terms of such options, become fully vested and exercisable as a result of the Change in
Control, with respect to the shares as to which each such option is not vested and exercisable as
of the date of the Change in Control (the “Unvested Shares”), the Company shall cause each such
option to become vested and exercisable as follows: (1) as of the date of the Change in Control
(the “Change Date”), such option shall become vested and exercisable to the extent of (A)
two-thirds of the Unvested Shares multiplied by (B) a fraction, the numerator of which is the
number of full calendar months between (i) the date on which the most recent incremental increase
in the number of shares as to which such option is vested and exercisable occurred pursuant to the
terms of such option as a result of the continued employment or service of the Executive (the “Most
Recent Vesting Date”) and (ii) the Change Date, and the denominator of which is the number of full
calendar months between the Most Recent Vesting Date and the date on which such option would have
become fully vested and exercisable as a result of the Executive’s continued employment by the
Company, assuming such employment continued (the “Remaining Vesting Term”); (2) as of the end of
each full calendar month commencing on or after the date of the Change in Control, so long as the
continuous employment of the Executive by the Company has not ended, such option shall become
vested and exercisable to the extent of two-thirds of the Unvested Shares divided by the number of
full calendar months in the Remaining Vesting Term and (3) as to the remainder of the Unvested
Shares, the terms of such option as in effect before the Change in Control shall continue to apply.

 

 

          (f) Liquidated Damages. The parties acknowledge and agree that damages which will
result to the Executive for termination by the Company without Cause or other breach of this
Agreement by the Company shall be extremely difficult or impossible to establish or prove, and
agree that the amounts payable to the Executive under Sections 9(d) hereof (the “Severance
Payments”) shall constitute liquidated damages for any breach of this Agreement by the Company
through the Date of Termination. The Executive agrees that, except for such other payments and
benefits to which the Executive may be entitled as expressly provided by the terms of this
Agreement or any applicable benefit plan, such liquidated damages shall be in lieu of all other
claims that the Executive may make by reason of termination of his employment or any such breach of
this Agreement and that, as a condition to receiving the Severance Payments, the Executive will
execute a release of claims in a form reasonably satisfactory to the Company.

     10. Notices. All notices, demands, requests, or other communications which may be or are
required to be given, served, or sent by any party to any other party pursuant to this Agreement
shall be in writing and shall be hand delivered, sent by overnight courier or mailed by
first-class, registered or certified mail, return receipt requested, postage prepaid, or
transmitted by telegram, telecopy or telex, addressed as follows:

	 	(i)	 	If to the Company:

S1 Corporation

3500 Lenox Road

Suite 200

Atlanta, GA 30326

Fax: 404/923-6717

Attn: Chief Legal Officer

with a copy (which shall not constitute notice) to:

Stuart G. Stein

Hogan & Hartson, L.L.P.

555 13th Street, N.W.

Washington, D.C. 20004

Fax: 202/637-5910

	 	(ii)	 	If to the Executive:
	 
	 	 	 	Johann Dreyer
	 
	 	 	 	                                                            
	 
	 	 	 	                                                            
	 
	 	 	 	                                                            
	 
	 	 	 	                                                            
	 
	 	 	 	Fax:                                         

     Each party may designate by notice in writing a new address to which any notice, demand, request or
communication may thereafter be so given, served or sent. Each notice, demand, request, or
communication which shall be hand delivered, mailed or telecopied in the manner described above, or
which shall be delivered to a telegraph company, shall be deemed sufficiently given, served, sent,
received or delivered for all purposes at such time as it is delivered to the addressee (with the
return receipt, the delivery receipt, or (with respect to a telecopy or telex) the answerback being
deemed conclusive, but not exclusive, evidence of such delivery) or at such time as delivery is
refused by the addressee upon presentation.

     11. Severability. The invalidity or unenforceability of any one or more provisions of this
Agreement shall not affect the validity or enforceability of the other provisions of this
Agreement, which shall remain in full force and effect.

 

 

     12. Survival. It is the express intention and agreement of the parties hereto that the
provisions of Sections 9, 10, 11, 13, 17 and 20 hereof and this Section 12 shall survive the
termination of employment of the Executive. In addition, all obligations of the Company to make payments hereunder shall survive any termination
of this Agreement on the terms and conditions set forth herein.

     13. Assignment. The rights and obligations of the parties to this Agreement shall not be
assignable or delegable, except that (i) in the event of the Executive’s death, the personal
representative or legatees or distributees of the Executive’s estate, as the case may be, shall
have the right to receive any amount owing and unpaid to the Executive hereunder and (ii) the
rights and obligations of the Company hereunder shall be assignable and delegable in connection
with any subsequent merger, consolidation, sale of all or substantially all of the assets or stock
of the Company or similar transaction involving the Company or a successor corporation. The
Company shall require any successor to the Company to expressly assume and agree to perform this
Agreement in the same manner and to the same extent that the Company would be required to perform
it if no such succession had taken place.

     14. Binding Effect. Subject to any provisions hereof restricting assignment, this
Agreement shall be binding upon the parties hereto and shall inure to the benefit of the parties
and their respective heirs, devisees, executors, administrators, legal representatives, successors
and assigns.

     15. Amendment; Waiver. This Agreement shall not be amended, altered or modified except by
an instrument in writing duly executed by the parties hereto. Neither the waiver by either of the
parties hereto of a breach of or a default under any of the provisions of this Agreement, nor the
failure of either of the parties, on one or more occasions, to enforce any of the provisions of
this Agreement or to exercise any right or privilege hereunder, shall thereafter be construed as a
waiver of any subsequent breach or default of a similar nature, or as a waiver of any such
provisions, rights or privileges hereunder.

     16. Headings. Section and subsection headings contained in this Agreement are inserted for
convenience of reference only, shall not be deemed to be a part of this Agreement for any purpose,
and shall not in any way define or affect the meaning, construction or scope of any of the
provisions hereof.

     17. Governing Law. This Agreement, the rights and obligations of the parties hereto, and
any claims or disputes relating thereto, shall be governed by and construed in accordance with the
laws of the State of Delaware (but not including any choice of law rule thereof that would cause
the laws of another jurisdiction to apply).

     18. Entire Agreement. This Agreement constitutes the entire agreement between the parties
respecting the employment of the Executive, there being no representations, warranties or
commitments except as set forth herein. Without limiting the foregoing, the parties acknowledge
that this Agreement expressly supersedes and replaces in its entirety that certain Employment
Agreement between S1 Corporation and the Executive and the Company entered into effective the
12th day of November 2004, as amended.

     19. Counterparts. This Agreement may be executed in two counterparts, each of which shall
be an original and all of which shall be deemed to constitute one and the same instrument.

     20. Definitions. The following definitions apply in addition to those set forth herein:

          “Cause” means (i) the conviction of a felony or a crime involving moral turpitude
(excluding a traffic violation not involving any period of incarceration) or the willful commission
of any other act or omission involving dishonesty or fraud with respect to, and materially
adversely affecting the business affairs of, the Company or any of its Subsidiaries or any of their
customers or suppliers, (ii) conduct tending to bring the Company or any of its Subsidiaries into
substantial public disgrace or disrepute that causes substantial and material injury to the
business and operations of the Company or such Subsidiary, (iii) substantial and repeated failure
to perform duties of the office held by the Executive as reasonably directed by the Company (other
than any such failure resulting from the Executive’s incapacity due to injury or illness), and such
failure is not cured within 30 days after the Executive receives written notice thereof from the
Company that specifically identifies the manner in

 

 

which the Company believes the Executive has not
substantially performed his duties, (iv) gross negligence or willful misconduct with respect to the
Company or any of its Subsidiaries that causes substantial and material injury to the business and
operations of the Company or such Subsidiary or (v) any material breach of the Related Agreement.
For purposes of this provision, no act or failure to act, on the part of the Executive, shall be
considered “willful” unless it is done, or omitted to be done, by the Executive in bad faith or
without reasonable belief that the Executive’s action or omission was in the best interests of the
Company. Any act, or failure to act, based upon authority given pursuant to a resolution duly adopted by the Board or based upon advice of counsel for the Company shall be
conclusively presumed to be done, or omitted to be done, by the Executive in good faith and in the
best interests of the Company.

          “Change in Control” means the earliest to occur of the following: (i) any person
(other than a corporation (a “Holding Company”) all of the common stock of which is owned,
immediately after the transaction, by persons who owned more than 50 percent of the voting shares
of the Company immediately before the transaction) becomes the beneficial owner of 50 percent or
more of the total number of voting shares of the Company; (ii) any person (other than the persons
named as proxies solicited on behalf of the Board) holds revocable or irrevocable proxies, as to
the election or removal of two or more directors of the Company, for more than 50 percent of the
total number of voting shares of the Company; (iii) any person (other than a Holding Company) has
commenced a tender or exchange offer, or entered into an agreement or received an option, to
acquire beneficial ownership of more than 50 percent of the total number of voting shares of the
Company; (iv) there is a sale or other transfer of all or substantially all of the assets of the
Company other than to a Holding Company or a corporation controlled by the Company or (v) as the
result of, or in connection with, any cash tender or exchange offer, merger, or other business
combination, sale of assets or contested election, or any combination of the foregoing
transactions, the persons who were directors of the Company before such transaction shall cease to
constitute at least a majority of the Board or any successor corporation. In the event that the
Company (or any successor entity) becomes a subsidiary of a Holding Company, references to the
Company in the preceding sentence shall be deemed to be references to the Holding Company.
Notwithstanding the foregoing, a “Change in Control” will not be deemed to have occurred under
clauses (ii) or (iii) above if within 30 days of such action, the Board (by a two-thirds
affirmative vote of the directors in office before such action occurred) makes a determination that
such action does not and is not likely to constitute a change in control of the Company. For
purposes of this definition, a “person” includes an individual, corporation, partnership, trust,
association, joint venture, pool, syndicate, unincorporated organization, joint-stock company, or
similar organization or group acting in concert. A person for these purposes shall be deemed to be
a beneficial owner as that term is used in Rule 13d-3 under the Securities Exchange Act of 1934, as
amended.

          “Date of Termination” means (i) if the Executive’s employment is terminated by the
Executive’s death, the date of the Executive’s death; (ii) if the Executive’s employment is
terminated because of the Executive’s disability pursuant to Section 8(a)(ii)(A) hereof, 30 days
after Notice of Termination, provided that the Executive shall not have returned to the performance
of the Executive’s duties on a full-time basis during such 30-day period; (iii) if the Executive’s
employment is terminated by the Company for Cause pursuant to Section 8(a)(ii)(B) hereof or by the
Executive pursuant to Section 8(a)(iii) hereof, the date specified in the Notice of Termination; or
(iv) if the Executive’s employment is terminated during the Employment Period other than pursuant
to Section 8(a), the date on which Notice of Termination is given.

          “Good Reason” means (i) the Company’s failure to perform or observe any of the
material terms or provisions of this Agreement, and the continued failure of the Company to cure
such default within 30 days after written demand for performance has been given to the Company by
the Executive, which demand shall describe specifically the nature of such alleged failure to
perform or observe such material terms or provisions; (ii) a material reduction in the scope of the
Executive’s duties (including, without limitation, any merger, consolidation, reorganization, sale
of stock or assets or other transaction that results in the Executive reporting to anyone in a
position having less authority than the person to whom the Executive reported immediately before
such transaction, or any failure of the parent corporation of any controlled group of corporations
that includes the Company, if the Company is not such parent corporation, to offer to the Executive
a position with such parent corporation involving the same or substantially equivalent duties as
the Executive’s position with the Company under this Agreement) without his written consent; (iii)
any requirement by the Company without the written consent of the Executive that the Executive
relocate to a place more than 50 miles from Atlanta, Georgia to

 

 

perform his duties hereunder; or
(iv) the failure of the Company to obtain the assumption of the Company’s obligations under this
Agreement by a successor as contemplated by Section 13 of this Agreement.

          “Subsidiary” means any corporation of which the Company owns securities having a
majority of the ordinary voting power in electing the board of directors directly or through one or
more subsidiaries and any partnership, limited liability company or other entity in which the
Company or any subsidiary owns a controlling interest.

     IN WITNESS WHEREOF, the undersigned have duly executed and delivered this Agreement, or have caused
this Agreement to be duly executed and delivered on their behalf, as of the Effective Date.

	 	 	 	 	 
	 	S1 CORPORATION

 	 
	 	By:  	/s/ Sandy Fountain
 	 
	 	 	VP Human Resources 	 
	 	 	 	 
	 
	 	THE EXECUTIVE:

 	 
	 	/s/ Johann Dreyer
 	 
	 	 	 
	 	 	 
	 

 

 

EXHIBIT A

CONFIDENTIALITY, NON-DISCLOSURE AND NON-SOLICITATION AGREEMENT

     In consideration of and as a condition of my employment by S1 Corporation, a Delaware
corporation (the “Company”, which term shall also include any subsidiaries and divisions of S1
Corporation), I hereby agree with the Company as follows:

     1. Nondisclosure and Use of Proprietary Information.

     (a) I will not at any time, whether during or after the termination of my employment, reveal
to any person or entity any of the trade secrets or proprietary or confidential information of the
Company, or of any third party which the Company is under an obligation to keep confidential,
including, but not limited to, information respecting inventions, products, product plans, designs,
formulae, drawings, sketches, marketing and other plans, methods, know-how, techniques, technology,
systems, characters, processes, strategies, works of authorship, customer lists, user lists, vendor
lists, content provider lists, supplier lists, pricing information, projects, notes, memoranda,
reports, lists, records, specifications, computer programs (including object code and source code),
computer software and data base technologies, systems, structures and architectures (and related
processes, algorithms, compositions, improvements, methods, concepts, ideas, designs and
information), data, documentation, budgets, plans, projections, forecasts, financial information
and proposals in whatever form, tangible or intangible or other materials of any nature relating to
any matter within the scope of the business of the Company or concerning any of the dealings or
affairs of the Company (collectively, “Proprietary Information”)), except as may be required in the
course of performing my duties as an employee of the Company, and I shall keep secret all matters
entrusted to me and shall not use or attempt to use any such information in any manner except as
may be required in the course of performing my duties as an employee of the Company.

     (b) As used herein, the term “Intellectual Property Rights” shall mean all industrial and
intellectual property rights, including, without limitation, patents, patent applications, patent
rights, trademarks, trademark applications, trade names, service marks, service mark applications,
copyrights, copyright applications or registrations, trade secrets, and trade dress.

     (c) The restrictions in Section 1(a) above shall not apply to: (i) information that at the
time of disclosure is in the public domain through no fault of mine; (ii) information received from
a third party outside of the Company that was disclosed without a breach of any confidentiality
obligation; (iii) information approved for release by written authorization of the Company; or
(iv) information that may be required by law or an order of any court, agency or proceeding to be
disclosed.

     (d) During my employment I shall not take, use or permit to be used any Proprietary
Information otherwise than for the benefit of the Company. I shall not, after the termination of
my employment, use or permit to be used any Proprietary Information, it being agreed that all
Proprietary Information shall be and remain the sole and exclusive property of the Company and that
immediately upon the termination of my employment, I shall deliver all copies of Proprietary
Information to the Company at its main office.

     (e) While I am employed at the Company, I will not disclose to the Company, use, or induce the
Company to use, any confidential, proprietary or trade secret information of others.

     (f) I will not enter into any agreement that conflicts with the terms of this Agreement.

     2. Assignment of Developments.

     (a) If at any time or times during my employment by the Company I shall (either alone or with
others) make, conceive, invent, discover or reduce to practice or author any Proprietary
Information whatsoever or otherwise obtain any interest therein (whether or not patentable or registrable under copyright or
similar statutes or subject to analogous protection) (herein called “Developments”) that (i)
relates to the business of the Company or any customer of or supplier to the Company or any of the
products or services being developed,

 

 

manufactured, sold or provided by the Company or which may be
used in relation therewith, (ii) results from tasks assigned me by the Company or (iii) results
from the use of premises or personal property (whether tangible or intangible) owned, leased or
contracted for by the Company, such Developments and the benefits thereof shall immediately become
the sole and absolute property of the Company and its assigns, and I shall promptly disclose to the
Company (or any persons designated by it) each such Development and hereby assign any rights,
including Intellectual Property Rights, I may have or acquire in the Developments and benefits
and/or rights resulting therefrom to the Company and its assigns without further compensation and
shall communicate, without cost or delay, and without publishing the same, all available
information relating thereto (with all necessary plans and models) to the Company.

     (b) I will, during my employment and at any time thereafter, at the request and cost of the
Company, sign, execute, make and do all such deeds, documents, acts and things as the Company and
its duly authorized agents may reasonably require:

	 	(i)	 	to apply for, obtain and vest in the name of the Company alone
(unless the Company otherwise directs) letters patent, copyrights or other
analogous protection in any country throughout the world for any Developments
that I make, conceive, invent, discover, reduce to practice or author during
the term of my employment by the Company, and when so obtained or vested to
renew and restore the same;
	 
	 	(ii)	 	to defend any actions or opposition proceedings in respect of
such applications and any opposition proceedings or petitions or applications
for revocation of such letters patent, copyright or other analogous protection;
and
	 
	 	(iii)	 	to bring any action to enforce any rights in any Developments.

     (c) In the event the Company is unable, after reasonable effort, to secure my signature on any
patent application, copyright application or other analogous document or instrument relating to a
Development described in Section 2(b) above, whether because of my physical or mental incapacity or
for any other reason whatsoever, I hereby irrevocably designate and appoint the Company and its
duly authorized officers and agents as my agent and attorney-in-fact, to act for and in my behalf
and stead to execute and file any such application or other document or instrument and to do all
other lawfully permitted acts to further the prosecution and issuance of any such letters patent,
copyright and other analogous protection thereon with the same legal force and effect as if
executed by me.

     3. Non-Solicitation.

     (a) While I am employed at the Company and for a period of 24 months after termination of my
employment for any reason (whether voluntary or involuntary), I will not, directly or indirectly,
solicit, recruit or hire any employee of the Company to work for a third party other than the
Company or otherwise solicit, entice or induce any employee to materially breach any agreement
between such employee and the Company of which I have knowledge.

     (b) While I am employed by the Company and for a period of 24 months after termination of my
employment for any reason (whether voluntary or involuntary) other than because of non-renewal of
my employment agreement by the Company, I will not, directly or indirectly, solicit, entice or
induce any Customer (as defined below) of the Company to (i) become a Customer of any other person
or entity engaged in any material respect in any business activity that competes with any material
business activity conducted by the Company at any time during the period of my employment with the
Company, or any business activity planned by the Company at any time during the period of my
employment with the Company that the Company reasonably believes will be a material business
activity in the future (other than such a planned activity that has been abandoned by the Company)
or (ii) cease doing business with the Company, and I will not assist any person or entity in taking
any action described in the foregoing clauses (i) and (ii). For purposes of this paragraph (c), a
“Customer” of the Company means any person, corporation, partnership, trust, division, business
unit, department or agency which, at the time of determination or within one year prior thereto,
shall be or shall have been a material customer, distributor or agent

 

 

of the Company or shall be or shall have been contacted by the Company for the purpose of soliciting it to become a material
customer, distributor or agent of the Company.

     4. Representations and Warranties.

     I hereby represent and warrant to the Company as follows:

     (a) I have returned all property and confidential, proprietary or trade secret information
belonging to all prior employers and clients, if any, to the extent that such property and
confidential, proprietary or trade secret information was required to be returned, and in any
event, have not exposed or brought to the Company any such information, and no such information has
been or will be used in connection with rendering any of the services hereunder.

     (b) The performance of the terms of this Agreement will not breach or conflict with any
agreement to which I am a party.

     (c) Except as I have disclosed in writing to the Company, I am not bound by the terms of any
agreement with any previous employer or other party to refrain from using or disclosing any trade
secret or confidential or proprietary information in the course of my employment with the Company
or to refrain from competing, directly or indirectly, with the business or such employer or any
other party.

     5. Equitable Relief.

     I agree that any breach of this Agreement by me will cause irreparable damage to the Company
and that in the event of such breach the Company shall have, in addition to any and all remedies at
law, the right to an injunction, specific performance or other equitable relief to prevent the
violation of my obligations hereunder. Nothing herein contained shall be construed as prohibiting
the Company from pursuing any other remedy available for such breach or threatened breach. The
prevailing party in any litigation arising under this Agreement shall be entitled to recover his or
its attorneys’ fees and expenses in addition to all other available remedies.

     6. No Right to Continued Employment.

     I understand that this Agreement does not create an obligation on the Company or any other
person or entity to continue my employment or to exploit any Developments.

     7. Waivers.

     Any waiver by the Company of a breach of any provision of this Agreement shall not operate or
be construed as a waiver of any subsequent breach of such provision or any other provision hereof.

     8. Acknowledgment; Severability.

     I hereby acknowledge that the type and periods of restriction imposed in the provisions of
this Agreement are fair and reasonable and are reasonably required for the protection of the
Company’s proprietary information and the goodwill associated with the business of the Company. I
hereby further acknowledge that the provisions of this Agreement shall be enforced to the fullest
extent permissible under the laws and public policies applied in each jurisdiction in which
enforcement is sought. Accordingly, if any particular provision of this Agreement shall be
adjudicated to be invalid or unenforceable, such provision shall be deemed amended to delete
therefrom the portion thus adjudicated to be invalid or unenforceable, such deletion to apply only with respect to the
operation of such provision in the particular jurisdiction in which such adjudication is made. In
addition, if any one or more of the provisions contained in this Agreement shall for any reason be
held to be excessively broad as to duration, geographical scope, activity or subject, it shall be
the extent compatible with the applicable law, as it shall then appear. Any provision of this
Agreement which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction,
be ineffective to the extent of such prohibition or unenforceability without invalidating the

 

 

remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall
not invalidate or render unenforceable such provision in any other jurisdiction.

     9. Survival of Obligations.

     My obligations under this Agreement shall survive the termination of my employment regardless
of the manner of such termination and shall be binding upon my heirs, executors, administrators and
legal representatives.

     10. Assignment.

     The Company shall have the right to assign this Agreement to its successors and assigns, and
all covenants and agreements hereunder shall inure to the benefit of and be enforceable by said
successors or assigns.

     11. Governing Law.

     This Agreement will be governed by and construed in accordance with the laws of the State of
Georgia applicable to contracts made and to be performed wholly therein (without regard to
principles of conflicts of laws).

     IN WITNESS WHEREOF, the undersigned has executed this Confidentiality, Non-Disclosure and
Non-Solicitation Agreement as of the 18 day of December, 2006.

	 	 	 	 	 
	 	 	/s/ Johann Dreyer
	 
	 	 	 	 
	 

	 	Name:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 	 	 
	 
	 	 	 	 
	 	 	 
	 	 	Address

Agreed to and Accepted:

S1 CORPORATION

By: /s/ Sandy Fountainexv4w6

 

Exhibit 4.6

COMMON UNIT

REGISTRATION RIGHTS AGREEMENT

BY AND AMONG

PLAINS ALL AMERICAN PIPELINE, L.P.

AND

THE PURCHASERS PARTY HERETO

 

 

REGISTRATION RIGHTS AGREEMENT

     THIS REGISTRATION RIGHTS AGREEMENT (this “Agreement”) is made and entered into as of
December 19, 2006, by and among PLAINS ALL AMERICAN PIPELINE, L.P., a Delaware limited partnership
(“PAA”), E-Holdings III, L.P. (“E-Holdings III”), E-Holdings V, L.P.
(“E-Holdings V”), Kayne Anderson MLP Investment Company (“Kayne MLP”) and Kayne Anderson
Energy Development Company (“Kayne Energy” and together with E-Holdings III, E-Holdings V
and Kayne MLP, the “Purchasers”).

     This Agreement is made in connection with the Closing of the issuance and sale of Common Units
pursuant to the Common Unit Purchase Agreement, dated as of December 13, 2006 by and among PAA and
the various purchasers listed therein (the “Purchase Agreement”). PAA has agreed to
provide the registration and other rights set forth in this Agreement for the benefit of the
Purchasers. In consideration of the mutual covenants and agreements set forth herein and for good
and valuable consideration, the receipt and sufficiency of which is hereby acknowledged by each
party hereto, the parties hereby agree as follows:

ARTICLE I.

DEFINITIONS

     Section 1.01 Definitions. Capitalized terms used herein without definition shall have
the meanings given to them in the Purchase Agreement. The terms set forth below are used herein as
so defined:

     “Common Units” means the 1,232,792 common units issued to the Purchasers pursuant to
the Purchase Agreement.

     “E-Holdings Entities” means E-Holdings III and E-Holdings V.

     “Effectiveness Period” has the meaning specified therefore in Section 2.01(a) of this
Agreement.

     “Holder” means the record holder of any Registrable Securities.

     “Kayne Entities” means Kayne MLP and Kayne Energy.

     “Losses” has the meaning specified therefor in Section 2.06(a) of this Agreement.

     “Managing Underwriter” means, with respect to any Underwritten Offering, the book
running lead manager of such Underwritten Offering.

     “Purchase Agreement” has the meaning specified therefor in the Recital of this
Agreement.

     “Purchasers” has the meaning specified therefor in the introductory paragraph of this
Agreement.

2

 

     “Registrable Securities” means the Common Units until such time as such securities
cease to be Registrable Securities pursuant to Section 1.02 hereof.

     “Registration Expenses” has the meaning specified therefor in Section 2.05(a) of this
Agreement.

     “Selling Expenses” has the meaning specified therefor in Section 2.05(a) of this
Agreement.

     “Selling Holder” means a Holder who is selling Registrable Securities pursuant to a
registration statement.

     “Shelf Registration” has the meaning specified therefor in Section 2.01(a) of this
Agreement.

     “Shelf Registration Statement” has the meaning specified therefor in Section 2.01(a)
of this Agreement.

     “Underwritten Offering” means an offering (including an offering pursuant to a Shelf
Registration Statement) in which Common Units are sold to an underwriter on a firm commitment basis
for reoffering to the public or an offering that is a “bought deal” with one or more investment
banks.

     Section 1.02 Registrable Securities. Any Registrable Security will cease to be a
Registrable Security when (a) a registration statement covering such Registrable Security has been
declared effective by the Commission and such Registrable Security has been sold or disposed of
pursuant to such effective registration statement; (b) such Registrable Security has been disposed
of pursuant to any section of Rule 144 (or any similar provision then in force under the Securities
Act); (c) such Registrable Security is held by PAA or one of its subsidiaries; or (d) such
Registrable Security becomes eligible, in the opinion of counsel reasonably satisfactory to the
Holder for transfer under Rule 144(k).

ARTICLE II.

REGISTRATION RIGHTS

     Section 2.01 Shelf Registration.

          (a) Shelf Registration. As soon as practicable following the Closing of the purchase
of the Common Units pursuant to the terms of the Purchase Agreement, but in any event within 120
days of the Closing, PAA shall prepare and file a registration statement under the Securities Act
to permit the public resale of the Registrable Securities from time to time as permitted by Rule
415 of the Securities Act (the “Shelf Registration Statement”). PAA shall use its
commercially reasonable efforts to cause the Shelf Registration Statement to become effective as
soon as practicable but no later than 240 days after the date of the Closing (the “Shelf
Registration”). The Shelf Registration Statement filed pursuant to this Section 2.01(a) shall
be on such appropriate registration form of the Commission as shall be selected by PAA;
provided, however, that if a prospectus supplement will be used in connection with
the marketing of an Underwritten Offering from the Shelf Registration Statement and the Managing
Underwriter at

3

 

any time shall notify PAA in writing that, in the sole judgment of such Managing Underwriter,
inclusion of detailed information to be used in such prospectus supplement is of material
importance to the success of the Underwritten Offering of such Registrable Securities, PAA shall
use its commercially reasonable efforts to include such information in the prospectus. PAA will
cause the Shelf Registration Statement filed pursuant to this Section 2.01(a) to be continuously
effective under the Securities Act until all Registrable Securities covered by the Shelf
Registration Statement have been distributed in the manner set forth and as contemplated in the
Shelf Registration Statement or there are no longer any Registrable Securities outstanding (the
“Effectiveness Period”). The Shelf Registration Statement when declared effective
(including the documents incorporated therein by reference) will comply as to form with all
applicable requirements of the Securities Act and the Exchange Act and will not contain an untrue
statement of a material fact or omit to state a material fact required to be stated therein or
necessary to make the statements therein not misleading.

          (b) Delay Rights. Notwithstanding anything to the contrary contained herein, PAA may,
upon written notice to any Selling Holder whose Registrable Securities are included in the Shelf
Registration Statement, suspend such Selling Holder’s use of any prospectus which is a part of the
Shelf Registration Statement (in which event the Selling Holder shall discontinue sales of the
Registrable Securities pursuant to the Shelf Registration Statement) if (i) PAA is pursuing an
acquisition, merger, reorganization, disposition or other similar transaction and PAA determines in
good faith that PAA’s ability to pursue or consummate such a transaction would be materially
adversely affected by any required disclosure of such transaction in the Shelf Registration
Statement or (ii) PAA has experienced some other material non-public event the disclosure of which
would, in the good faith judgment of PAA, be detrimental to PAA or its business prospects. Upon
disclosure of such information or the termination of the condition described above, PAA shall
provide prompt notice to the Selling Holders whose Registrable Securities are included in the Shelf
Registration Statement, and shall promptly terminate any suspension of sales it has put into effect
and shall take such other actions to permit registered sales of Registrable Securities as
contemplated in this Agreement.

     Section 2.02 Underwritten Offering.

          (a) Shelf Registration. In the event that a Selling Holder elects to dispose of
Registrable Securities under the Shelf Registration Statement pursuant to an Underwritten Offering,
PAA shall enter into an underwriting agreement in customary form with the Managing Underwriter or
Underwriters, which shall include, among other provisions, indemnities to the effect and to the
extent provided in Section 2.06, and shall take all such other reasonable actions as are requested
by the Managing Underwriter in order to expedite or facilitate the registration and disposition of
the Registrable Securities; provided, however, the participation of PAA management
in connection with an Underwritten Offering for the benefit of Selling Holders shall consist of not
more than eight hours of teleconferences for the benefit of each Purchaser annually; and provided
further, that these marketing obligations are not transferable to any other Holders other than
Affiliates of the Purchasers, notwithstanding the provisions of Section 2.08 hereof.

          (b) General Procedures. In connection with any Underwritten Offering under this
Agreement, PAA shall be entitled to select the Managing Underwriter or Underwriters. In

4

 

connection with an Underwritten Offering under Section 2.01 hereof, each Selling Holder and
PAA shall be obligated to enter into an underwriting agreement which contains such representations,
covenants, indemnities and other rights and obligations as are customary in underwriting agreements
for firm commitment offerings of securities. No Selling Holder may participate in such
Underwritten Offering unless such Selling Holder agrees to sell its Registrable Securities on the
basis provided in such underwriting agreement and completes and executes all questionnaires, powers
of attorney, indemnities and other documents reasonably required under the terms of such
underwriting agreement. Each Selling Holder may, at its option, require that any or all of the
representations and warranties by, and the other agreements on the part of, PAA to and for the
benefit of such underwriters also be made to and for such Selling Holder’s benefit and that any or
all of the conditions precedent to the obligations of such underwriters under such underwriting
agreement also be conditions precedent to its obligations. No Selling Holder shall be required to
make any representations or warranties to or agreements with PAA or the underwriters other than
representations, warranties or agreements regarding such Selling Holder and its ownership of the
securities being registered on its behalf and its intended method of distribution and any other
representation required by law. If any Selling Holder disapproves of the terms of an underwriting,
such Selling Holder may elect to withdraw therefrom by notice to PAA and the Managing Underwriter;
provided, however, that such withdrawal must be made during the time period up to
and including the time of pricing of such offering to be effective. No such withdrawal or
abandonment shall affect PAA’s obligation to pay Registration Expenses.

     Section 2.03 Registration Procedures. In connection with its obligations contained in
Section 2.01, PAA will, as expeditiously as possible:

          (a) prepare and file with the Commission such amendments and supplements to the Shelf
Registration Statement and the prospectus used in connection therewith as may be necessary to keep
the Shelf Registration Statement effective for the Effectiveness Period and as may be necessary to
comply with the provisions of the Securities Act with respect to the disposition of all securities
covered by the Shelf Registration Statement;

          (b) furnish to each Selling Holder (i) as far in advance as reasonably practicable before
filing the Shelf Registration Statement or any supplement or amendment thereto, upon request,
copies of reasonably complete drafts of all such documents proposed to be filed (including exhibits
and each document incorporated by reference therein to the extent then required by the rules and
regulations of the Commission), and provide each such Selling Holder the opportunity to object to
any information pertaining to such Selling Holder and its plan of distribution that is contained
therein and make the corrections reasonably requested by such Selling Holder with respect to such
information prior to filing the Shelf Registration Statement or supplement or amendment thereto,
and (ii) such number of copies of the Shelf Registration Statement and the prospectus included
therein and any supplements and amendments thereto as such Persons may reasonably request in order
to facilitate the public sale or other disposition of the Registrable Securities covered by such
Shelf Registration Statement or other registration statement;

          (c) if applicable, use its commercially reasonable efforts to register or qualify the
Registrable Securities covered by the Shelf Registration Statement under the securities or

5

 

blue sky laws of such jurisdictions as the Selling Holders or, in the case of an Underwritten
Offering, the Managing Underwriter, shall reasonably request, provided that PAA will not be
required to qualify generally to transact business in any jurisdiction where it is not then
required to so qualify or to take any action which would subject it to general service of process
in any such jurisdiction where it is not then so subject;

          (d) promptly notify each Selling Holder and each underwriter, at any time when a prospectus
relating thereto is required to be delivered under the Securities Act, of (i) the filing of the
Shelf Registration Statement or any prospectus or prospectus supplement to be used in connection
therewith, or any amendment or supplement thereto, and, with respect to such Shelf Registration
Statement, when the same has become effective; and (ii) any written comments from the Commission
with respect to any filing referred to in clause (i) and any written request by the Commission for
amendments or supplements to the Shelf Registration Statement or any prospectus or prospectus
supplement thereto;

          (e) immediately notify each Selling Holder and each underwriter, at any time when a prospectus
relating thereto is required to be delivered under the Securities Act, of (i) the happening of any
event as a result of which the prospectus or prospectus supplement contained in the Shelf
Registration Statement, as then in effect, includes an untrue statement of a material fact or omits
to state any material fact required to be stated therein or necessary to make the statements
therein not misleading in the light of the circumstances then existing; (ii) the issuance or threat
of issuance by the Commission of any stop order suspending the effectiveness of the Shelf
Registration Statement, or the initiation of any proceedings for that purpose; or (iii) the receipt
by PAA of any notification with respect to the suspension of the qualification of any Registrable
Securities for sale under the applicable securities or blue sky laws of any jurisdiction.
Following the provision of such notice, PAA agrees to as promptly as practicable amend or
supplement the prospectus or prospectus supplement or take other appropriate action so that the
prospectus or prospectus supplement does not include an untrue statement of a material fact or omit
to state a material fact required to be stated therein or necessary to make the statements therein
not misleading in the light of the circumstances then existing and to take such other action as is
necessary to remove a stop order, suspension, threat thereof or proceedings related thereto;

          (f) furnish to each Selling Holder copies of any and all transmittal letters or other
correspondence with the Commission or any other governmental agency or self-regulatory body or
other body having jurisdiction (including any domestic or foreign securities exchange) relating to
such offering of Registrable Securities;

          (g) in the case of an Underwritten Offering, furnish upon request, (i) an opinion of counsel
for PAA, dated the effective date of the applicable registration statement or the date of any
amendment or supplement thereto, and a letter of like kind dated the date of the closing under the
underwriting agreement, and (ii) a “cold comfort” letter, dated the effective date of the
applicable registration statement or the date of any amendment or supplement thereto and a letter
of like kind dated the date of the closing under the underwriting agreement, in each case, signed
by the independent public accountants who have certified PAA’s financial statements included or
incorporated by reference into the applicable registration statement, and each of the opinion and
the “cold comfort” letter shall be in customary form and covering

6

 

substantially the same matters with respect to such registration statement (and the prospectus
and any prospectus supplement included therein) and as are customarily covered in opinions of
issuer’s counsel and in accountants’ letters delivered to the underwriters in Underwritten
Offerings of securities, such other matters as such underwriters may reasonably request;

          (h) otherwise use its commercially reasonable efforts to comply with all applicable rules and
regulations of the Commission, and make available to its security holders, as soon as reasonably
practicable, an earnings statement covering the period of at least 12 months, but not more than 18
months, beginning with the first full calendar month after the effective date of such registration
statement, which earnings statement shall satisfy the provisions of Section 11(a) of the Securities
Act and Rule 158 promulgated thereunder;

          (i) make available to the appropriate representatives of the Managing Underwriter and Selling
Holders access to such information and PAA personnel as is reasonable and customary to enable such
parties to establish a due diligence defense under the Securities Act; provided that PAA need not
disclose any information to any such representative unless and until such representative has
entered into a confidentiality agreement with PAA;

          (j) cause all such Registrable Securities registered pursuant to this Agreement to be listed
on each securities exchange or nationally recognized quotation system on which similar securities
issued by PAA are then listed;

          (k) use its commercially reasonable efforts to cause the Registrable Securities to be
registered with or approved by such other governmental agencies or authorities as may be necessary
by virtue of the business and operations of PAA to enable the Selling Holders to consummate the
disposition of such Registrable Securities;

          (l) provide a transfer agent and registrar for all Registrable Securities covered by such
registration statement not later than the effective date of such registration statement; and

          (m) enter into customary agreements and take such other actions as are reasonably requested by
the Selling Holders or the underwriters, if any, in order to expedite or facilitate the disposition
of such Registrable Securities.

     PAA shall not permit any officer, director, underwriter, broker or any other person acting on
behalf of the Company to use any free writing prospectus (as defined in Rule 405 under the
Securities Act) in connection with any registration statement covering any Registrable Security,
without the prior written consent of the Selling Holder and any underwriter.

     Each Selling Holder, upon receipt of notice from PAA of the happening of any event of the kind
described in subsection (e) of this Section 2.03, shall forthwith discontinue disposition of the
Registrable Securities until such Selling Holder’s receipt of the copies of the supplemented or
amended prospectus contemplated by subsection (e) of this Section 2.03 or until it is advised in
writing by PAA that the use of the prospectus may be resumed, and has received copies of any
additional or supplemental filings incorporated by reference in the prospectus, and, if so directed
by PAA, such Selling Holder will, or will request the managing underwriter or underwriters, if any,
to deliver to PAA (at PAA’s expense) all copies in their possession or control, other than

7

 

permanent file copies then in such Selling Holder’s possession, of the prospectus covering
such Registrable Securities current at the time of receipt of such notice.

     Section 2.04 Cooperation by Holders. PAA shall have no obligation to include in the
Shelf Registration Statement units of a Holder who has failed to timely furnish such information
which, in the opinion of counsel to PAA, is reasonably required in order for the Shelf Registration
Statement or any prospectus or prospectus supplement thereto, as applicable, to comply with the
Securities Act.

     Section 2.05 Expenses.

          (a) Certain Definitions. “Registration Expenses” means all expenses incident
to PAA’s performance under or compliance with this Agreement to effect the registration of
Registrable Securities in a Shelf Registration, and the disposition of such securities, including,
without limitation, all registration, filing, securities exchange listing and NYSE fees, all
registration, filing, qualification and other fees and expenses of complying with securities or
blue sky laws, fees of the National Association of Securities Dealers, Inc., transfer taxes and
fees of transfer agents and registrars, all word processing, duplicating and printing expenses, the
fees and disbursements of counsel and independent public accountants for PAA, including the
expenses of any special audits or “cold comfort” letters required by or incident to such
performance and compliance. Except as otherwise provided in Section 2.06 hereof, PAA shall not be
responsible for legal fees incurred by Holders in connection with the exercise of such Holders’
rights hereunder. In addition, PAA shall not be responsible for any “Selling Expenses,”
which means all underwriting fees, discounts and selling commissions allocable to the sale of the
Registrable Securities.

          (b) Expenses. PAA will pay all Registration Expenses in connection with the Shelf
Registration Statement filed pursuant to Section 2.01(a) of this Agreement, whether or not the
Shelf Registration Statement becomes effective or any sale is made pursuant to the Shelf
Registration Statement. Each Selling Holder shall pay all Selling Expenses in connection with any
sale of its Registrable Securities hereunder.

     Section 2.06 Indemnification.

          (a) By PAA. In the event of a registration of any Registrable Securities under the
Securities Act pursuant to this Agreement, PAA will indemnify and hold harmless each Selling Holder
thereunder, its directors and officers, and each underwriter, pursuant to the applicable
underwriting agreement with such underwriter, of Registrable Securities thereunder and each Person,
if any, who controls such Selling Holder or underwriter within the meaning of the Securities Act
and the Exchange Act, against any losses, claims, damages, expenses or liabilities (including
reasonable attorneys’ fees and expenses) (collectively, “Losses”), joint or several, to
which such Selling Holder or underwriter or controlling Person may become subject under the
Securities Act, the Exchange Act or otherwise, insofar as such Losses (or actions or proceedings,
whether commenced or threatened, in respect thereof) arise out of or are based upon any untrue
statement or alleged untrue statement of any material fact contained in the Shelf Registration
Statement, any preliminary prospectus or final prospectus contained therein, or any “issuer free
writing prospectus” (as defined in Securities Act Rule 433), or any amendment or

8

 

supplement thereof, or arise out of or are based upon the omission or alleged omission to
state therein a material fact required to be stated therein or necessary to make the statements
therein (in the case of a prospectus, in light of the circumstances under which they were made) not
misleading, and will reimburse each such Selling Holder, its directors and officers, each such
underwriter and each such controlling Person for any legal or other expenses reasonably incurred by
them in connection with investigating or defending any such Loss or actions or proceedings;
provided, however, that PAA will not be liable in any such case if and to the
extent that any such Loss arises out of or is based upon an untrue statement or alleged untrue
statement or omission or alleged omission so made in conformity with information furnished by such
Selling Holder, such underwriter or such controlling Person in writing specifically for use in the
Shelf Registration Statement or any prospectus contained therein or any amendment or supplement
thereof. Such indemnity shall remain in full force and effect regardless of any investigation made
by or on behalf of such Selling Holder or any such director, officer or controlling Person, and
shall survive the transfer of such securities by such Selling Holder.

          (b) By Each Selling Holder. Each Selling Holder agrees severally and not jointly to
indemnify and hold harmless PAA, its directors and officers, and each Person, if any, who controls
PAA within the meaning of the Securities Act or of the Exchange Act to the same extent as the
foregoing indemnity from PAA to the Selling Holders, but only with respect to information regarding
such Selling Holder furnished in writing by or on behalf of such Selling Holder expressly for
inclusion in the Shelf Registration Statement or any prospectus contained therein or any amendment
or supplement thereof relating to the Registrable Securities; provided, however,
that the liability of each Selling Holder shall not be greater in amount than the dollar amount of
the proceeds (net of any Selling Expenses) received by such Selling Holder from the sale of the
Registrable Securities giving rise to such indemnification.

          (c) Notice. Promptly after receipt by an indemnified party hereunder of notice of the
commencement of any action, such indemnified party shall, if a claim in respect thereof is to be
made against the indemnifying party hereunder, notify the indemnifying party in writing thereof,
but the omission so to notify the indemnifying party shall not relieve it from any liability which
it may have to any indemnified party other than under this Section 2.06. In any action brought
against any indemnified party, it shall notify the indemnifying party of the commencement thereof.
The indemnifying party shall be entitled to participate in and, to the extent it shall wish, to
assume and undertake the defense thereof with counsel reasonably satisfactory to such indemnified
party and, after notice from the indemnifying party to such indemnified party of its election so to
assume and undertake the defense thereof, the indemnifying party shall not be liable to such
indemnified party under this Section 2.06 for any legal expenses subsequently incurred by such
indemnified party in connection with the defense thereof other than reasonable costs of
investigation and of liaison with counsel so selected; provided, however, that, (i)
if the indemnifying party has failed to assume the defense and employ counsel or (ii) if the
defendants in any such action include both the indemnified party and the indemnifying party and
counsel to the indemnified party shall have concluded that there may be reasonable defenses
available to the indemnified party that are different from or additional to those available to the
indemnifying party, or if the interests of the indemnified party reasonably may be deemed to
conflict with the interests of the indemnifying party, then the indemnified party shall have the
right to select a separate counsel and to assume such legal defense and otherwise to participate in
the defense of such action, with the reasonable expenses

9

 

and fees of such separate counsel and other reasonable expenses related to such participation
to be reimbursed by the indemnifying party as incurred. Notwithstanding any other provision of
this Agreement, no indemnified party shall settle any action brought against it with respect to
which it is entitled to indemnification hereunder without the consent of the indemnifying party,
unless the settlement thereof imposes no liability or obligation on, and includes a complete and
unconditional release from all liability of, the indemnifying party.

          (d) Contribution. If the indemnification provided for in this Section 2.06 is held by
a court or government agency of competent jurisdiction to be unavailable to PAA or any Selling
Holder or is insufficient to hold them harmless in respect of any Losses, then each such
indemnifying party, in lieu of indemnifying such indemnified party, shall contribute to the amount
paid or payable by such indemnified party as a result of such Losses as between PAA on the one hand
and such Selling Holder on the other, in such proportion as is appropriate to reflect the relative
fault of PAA on the one hand and of such Selling Holder on the other in connection with the
statements or omissions which resulted in such Losses, as well as any other relevant equitable
considerations; provided, however, that in no event shall such Selling Holder be
required to contribute an aggregate amount in excess of the dollar amount of proceeds (net of
Selling Expenses) received by such Selling Holder from the sale of Registrable Securities giving
rise to such indemnification. The relative fault of PAA on the one hand and each Selling Holder on
the other shall be determined by reference to, among other things, whether the untrue or alleged
untrue statement of a material fact or the omission or alleged omission to state a material fact
has been made by, or relates to, information supplied by such party, and the parties’ relative
intent, knowledge, access to information and opportunity to correct or prevent such statement or
omission. The parties hereto agree that it would not be just and equitable if contributions
pursuant to this paragraph were to be determined by pro rata allocation or by any other method of
allocation which does not take account of the equitable considerations referred to in the first
sentence of this paragraph. The amount paid by an indemnified party as a result of the Losses
referred to in the first sentence of this paragraph shall be deemed to include any legal and other
expenses reasonably incurred by such indemnified party in connection with investigating or
defending any Loss which is the subject of this paragraph. No person guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to
contribution from any Person who is not guilty of such fraudulent misrepresentation.

          (e) Other Indemnification. The provisions of this Section 2.06 shall be in addition
to any other rights to indemnification or contribution which an indemnified party may have pursuant
to law, equity, contract or otherwise.

     Section 2.07 Rule 144 Reporting. With a view to making available the benefits of
certain rules and regulations of the Commission that may permit the sale of the Registrable
Securities to the public without registration, PAA agrees to use its commercially reasonable
efforts to:

          (a) Make and keep public information regarding PAA available, as those terms are understood
and defined in Rule 144 of the Securities Act, at all times from and after the date hereof;

10

 

          (b) File with the Commission in a timely manner all reports and other documents required of
PAA under the Securities Act and the Exchange Act at all times from and after the date hereof; and

          (c) So long as a Holder owns any Registrable Securities, furnish to such Holder forthwith upon
request a copy of the most recent annual or quarterly report of PAA, and such other reports and
documents so filed as such Holder may reasonably request in availing itself of any rule or
regulation of the Commission allowing such Holder to sell any such securities without registration.

     
Section 2.08 Transfer or Assignment of Registration Rights. The rights to cause PAA
to register Registrable Securities granted to each of the Kayne Entities and the E-Holdings
Entities (each a “Purchaser Group”) by PAA under this Article II may be transferred or assigned by
each Purchaser Group to one or more transferee(s) or assignee(s) of such Registrable Securities,
provided that (a)unless such transferee is an Affiliate of a member of the transferring Purchaser
Group, each such transferee or assignee, collectively with its or their affiliates after giving
effect to any transfer or assignment or series of transfers or assignments, holds Registrable
Securities representing at least 15% of the number of Common Units sold to such transferring
Purchaser Group pursuant to the terms of the Purchase Agreement, (b) PAA is given written notice
prior to any said transfer or assignment, stating the name and address of each such transferee and
identifying the securities with respect to which such registration rights are being transferred or
assigned, and (c) each such transferee assumes in writing responsibility for its portion of the
obligations of the Purchasers under this Agreement.

ARTICLE III.

MISCELLANEOUS

     Section 3.01 Communications. All notices and other communications provided for or
permitted hereunder shall be made in writing by facsimile, courier service or personal delivery:

          (a) if to the Purchasers, at the most current addresses given by the Purchasers to PAA in
accordance with the provisions of this Section 3.01, which addresses initially are, with respect to
the Purchasers, the addresses set forth in the Purchase Agreement,

          (b) if to a transferee of the Purchaser, to such Holder at the address provided pursuant to
Section 2.08 above, and

          (c) if to PAA, at 333 Clay Street, Suite 1600, Houston, Texas, 77002, Attention: Tim Moore,
with a copy which shall not constitute notice to D. Alan Beck, Jr., 1001 Fannin Street, Suite 2300,
Houston, Texas 77002, notice of which is given in accordance with the provisions of this Section
3.01.

     All such notices and communications shall be deemed to have been received at the time
delivered by hand, if personally delivered; when receipt acknowledged, if sent via facsimile or
sent via Internet electronic mail; and when actually received, if sent by any other means.

11

 

     Section 3.02 Successor and Assigns. This Agreement shall inure to the benefit of and
be binding upon the successors and assigns of each of the parties, including subsequent Holders of
Registrable Securities to the extent permitted herein.

     Section 3.03 Assignment of Rights. All or any portion of the rights and obligations
of the Purchasers under this Agreement may be transferred or assigned by the Purchasers in
accordance with Section 2.08 hereof.

     Section 3.04 Recapitalization, Exchanges, etc. Affecting the Common Units. The
provisions of this Agreement shall apply to the full extent set forth herein with respect to any
and all units of PAA or any successor or assign of PAA (whether by merger, consolidation, sale of
assets or otherwise) which may be issued in respect of, in exchange for or in substitution of, the
Registrable Securities, and shall be appropriately adjusted for combinations, recapitalizations and
the like occurring after the date of this Agreement.

     Section 3.05 Specific Performance. Damages in the event of breach of this Agreement
by a party hereto may be difficult, if not impossible, to ascertain, and it is therefore agreed
that each such Person, in addition to and without limiting any other remedy or right it may have,
will have the right to an injunction or other equitable relief in any court of competent
jurisdiction, enjoining any such breach, and enforcing specifically the terms and provisions
hereof, and each of the parties hereto hereby waives any and all defenses it may have on the ground
of lack of jurisdiction or competence of the court to grant such an injunction or other equitable
relief. The existence of this right will not preclude any such Person from pursuing any other
rights and remedies at law or in equity which such Person may have.

     Section 3.06 Counterparts. This Agreement may be executed in any number of
counterparts and by different parties hereto in separate counterparts, each of which counterparts,
when so executed and delivered, shall be deemed to be an original and all of which counterparts,
taken together, shall constitute but one and the same Agreement.

     Section 3.07 Headings. The headings in this Agreement are for convenience of
reference only and shall not limit or otherwise affect the meaning hereof.

     Section 3.08 Governing Law. The laws of the State of Delaware shall govern this
Agreement without regard to principles of conflict of laws.

     Section 3.09 Severability of Provisions. Any provision of this Agreement which is
prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to
the extent of such prohibition or unenforceability without invalidating the remaining provisions
hereof or affecting or impairing the validity or enforceability of such provision in any other
jurisdiction.

     Section 3.10 Entire Agreement. This Agreement is intended by the parties as a final
expression of their agreement and intended to be a complete and exclusive statement of the
agreement and understanding of the parties hereto in respect of the subject matter contained
herein. There are no restrictions, promises, warranties or undertakings, other than those set
forth or referred to herein with respect to the rights granted by PAA set forth herein. This
Agreement

12

 

supersedes all prior agreements and understandings between the parties with respect to such
subject matter.

     Section 3.11 Amendment. This Agreement may be amended only by means of a written
amendment signed by PAA and the Holders of a majority of the then outstanding Registrable
Securities; provided, however, that no such amendment shall materially and
adversely affect the rights of any Holder hereunder without the consent of such Holder.

     Section 3.12 No Presumption. In the event any claim is made by a party relating to
any conflict, omission, or ambiguity in this Agreement, no presumption or burden of proof or
persuasion shall be implied by virtue of the fact that this Agreement was prepared by or at the
request of a particular party or its counsel.

[The remainder of this page is intentionally left blank.]

13

 

     IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written
above.

	 	 	 	 	 
	 	PLAINS ALL AMERICAN PIPELINE, L.P.

 	 
	 	By:  	Plains AAP, L.P.,
 	 
	 	 	its General Partner 	 
	 
	 	 	 
	 	By:  	Plains All American GP LLC, 	 
	 	 	its General Partner 	 
	 	 	 	 
	 
	 	By:  	/s/ Phil Kramer 	 
	 	 	Name:  	Phil Kramer 	 
	 	 	Title:  	Executive Vice President & Chief Financial Officer 	 
	 
	 	E-HOLDINGS III, L.P.

 	 
	 
	 	 	 
	 	By:  	/s/ Gary R. Petersen 	 
	 	 	Name:  	Gary R. Petersen 	 
	 	 	Title:  	Managing Director 	 
	 
	 	E-HOLDINGS V, L.P.

 	 
	 	 	 	 
	 	By:  	/s/ Gary R. Petersen 	 
	 	 	Name:  	Gary R. Petersen 	 
	 	 	Title:  	Managing Director 	 
	 
	 	KAYNE ANDERSON MLP

INVESTMENT COMPANY

 	 
	 	By:  	/s/
James C. Baker
 	 
	 	 	Name:  	James C. Baker 	 
	 	 	Title:  	Vice President 	 
	 
	 	KAYNE ANDERSON ENERGY

DEVELOPMENT COMPANY

 	 
	 	By:  	/s/ James C. Baker
 	 
	 	 	Name:  	James C. Baker 	 
	 	 	Title:  	Vice President	 
	 

[Signature Page to Common Unit Registration Rights Agreement]

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