Document:

EX-10.3

 

Exhibit 10.3

CHANGE IN CONTROL AGREEMENT

     This CHANGE IN CONTROL AGREEMENT (the “Agreement”) is entered into on April 1, 2008 (the
“Effective Date”) by and between Celanese Corporation (the “Company”) and Curtis S. Shaw (the
“Executive”).

     The Company considers it essential to foster the continued employment of key management
personnel. The Board of Directors of the Company (the “Board”) believes that it is in the best
interests of the Company and its stockholders to assure the Company will have the continued
dedication of Executive, notwithstanding the possibility, threat or occurrence of a Change in
Control. The Board believes it is imperative to diminish the inevitable distraction of Executive
by virtue of the personal uncertainties and risks created by a pending or threatened Change in
Control and to encourage Executive’s full attention and dedication to the Company currently and in
the event of any threatened or pending Change in Control. The Company also requests, and the
Executive desires to give the Company, certain assurances with regard to the protection of
Confidential Information and Intellectual Property of the Company and its Affiliates. Therefore,
the Company and the Executive have entered into this Agreement.

     In consideration of the premises and mutual covenants contained herein and for other good and
valuable consideration, the parties agree as follows:

     1. Definitions:

          a. “Affiliate” shall mean, when used with respect to any person or entity, any other person or
entity which controls, is controlled by or is under common control with the specified person or
entity. As used in the immediately preceding sentence, the term “control” (with correlative
meanings for “controlled by” and “under common control with”) shall mean, with respect to any
entity, the ownership, directly or indirectly, of fifty percent (50%) or more of the outstanding
equity interests in such entity.

          b. “Beneficial Owner” shall have the meaning given such term in Rule 13d-3 of the General
Rules and Regulations under the Securities Exchange Act of 1934, as amended (the “Exchange Act”).

          c. “Cause” shall mean (i) Executive’s willful failure to perform Executive’s duties hereunder
(other than as a result of total or partial incapacity due to physical or mental illness) for a
period of 30 days following written notice by the Company to Executive of such failure, (ii)
conviction of, or a plea of nolo contendere to, (x) a felony under the laws of the United States or
any state thereof or any similar criminal act in a jurisdiction outside the United States or (y) a
crime involving moral turpitude, (iii) Executive’s willful malfeasance or willful misconduct which
is demonstrably injurious to the Company or its Affiliates, (iv) any act of fraud by Executive, (v)
any material violation of the Company’s code of conduct, (vi) any material violation of the
Company’s policies concerning harassment or discrimination, (vii) Executive’s conduct that causes
material harm to the business reputation of the Company or its Affiliates, or (viii) Executive’s
breach of the provisions of Sections 7 (Confidentiality; Intellectual Property) or 8
(Non-Competition; Non-Solicitation) of this Agreement.

1

 

          d. A “Change In Control” will be deemed to have occurred for purposes hereof, upon any one of
the following events: (a) any person (within the meaning of Sections 13(d) and 14(d) of the
Exchange Act), other than the Company (including its subsidiaries, directors, and executive
officers) has become the Beneficial Owner of thirty percent (30%) or more of the combined voting
power of the Company’s then outstanding common stock or equivalent in voting power of any class or
classes of the Company’s outstanding securities ordinarily entitled to vote in elections of
directors (“Voting Securities”) (other than as a result of an issuance of securities by the Company
approved by Incumbent Directors, or open market purchases approved by Incumbent Directors at the
time the purchases are made); (b) individuals who constitute the Board as of the Effective Date
(the “Incumbent Directors”) have ceased for any reason to constitute at least a majority thereof,
provided that any person becoming a director after the Effective Date whose election, or nomination
for election by the Company’s stockholders, was approved by a majority of the directors comprising
the Incumbent Board, either by a specific vote or by approval of the proxy statement of the Company
in which such person is named as a nominee for director without objection to such nomination shall
be an Incumbent Director; provided, however, that no individual initially elected or nominated as a
director of the Company as a result of an actual or threatened election contest with respect to the
election or removal of directors (“Election Contest”) or other actual or threatened solicitation of
proxies or consents by or on behalf of any Person other than the Board (“Proxy Contest”), including
by reason of any agreement intended to avoid or settle any Election Contest or Proxy Contest, shall
be deemed an Incumbent Director; (c) the stockholders of the Company approve a reorganization,
merger, consolidation, statutory share exchange or similar form of corporate transaction, or the
sale or other disposition of all or substantially all of the Company’s assets (a “Transaction”),
unless immediately following such Transaction, (i) all or substantially all of the Persons who were
the Beneficial Owners of the Voting Securities outstanding immediately prior to such Transaction
are the Beneficial Owners of more than 50% of the combined voting power of the then outstanding
voting securities entitled to vote generally in the election of directors of the entity resulting
from such Transaction (including, without limitation, an entity which as a result of such
Transaction owns the Company or all or substantially all of the Company’s assets or stock either
directly or through one or more subsidiaries, the “Surviving Entity”) in substantially the same
proportions as their ownership, immediately prior to such Transaction, of the Voting Securities,
(ii) no Person is the Beneficial Owner of 30% or more of the combined voting power of the then
outstanding voting securities entitled to vote generally in the election of directors of the
Surviving Entity, and (iii) at least a majority of the members of the board of directors of the
Surviving Entity are Incumbent Directors; or (d) approval by the Company’s stockholders of a
complete liquidation and dissolution of the Company.

However, if in any circumstance in which the foregoing definition would be operative and with
respect to which the income tax under Section 409A of the Code would apply or be imposed, but where
such tax would not apply or be imposed if the meaning of the term “Change in Control” met the
requirements of Section 409A(a)(2)(A)(v) of the Code, then the term “Change in Control” herein
shall mean, but only for the transaction so affected, a “change in control event” within the
meaning of Treas. Reg. §1.409A–3(i)(5).

          e. “Change In Control Protection Period” shall mean that period commencing on the date that
the Company or a third party publicly announces an event that, if consummated, would constitute a
Change In Control and ending (i) on the date that the

2

 

circumstances giving rise to the announcement of the event are abandoned or withdrawn, or (ii)
if such transaction is consummated, two years after the Change In Control.

          f. “COBRA” shall mean those provisions of the Consolidated Omnibus Budget Reconciliation Act
of 1986, as amended, related to continuation of group health and dental plan coverage as set forth
in Code section 4980B.

          g. “Code” shall mean the Internal Revenue Code of 1986, as amended from time to time.

          h. “Competitive Business” shall mean businesses that compete with products and services
offered by the Company in those countries where the Company or any of its Affiliates manufactures,
produces, sells, leases, rents, licenses or otherwise provides its products or services during the
two (2) years preceding the Termination Date (including, without limitation, businesses which the
Company or its Affiliates have specific plans to conduct in the future that were disclosed or made
available to Executive), provided that, if Executive’s duties were limited to particular product
lines or businesses during such period, the Competitive Business shall be limited to those product
lines or businesses in those countries for which the Executive had such responsibility.

          i. “Confidential Information” shall mean any non-public, proprietary or confidential
information, including without limitation trade secrets, know-how, research and development,
software, databases, inventions, processes, formulae, technology, designs and other intellectual
property, information concerning finances, investments, profits, pricing, costs, products,
services, vendors, customers, clients, partners, investors, personnel, compensation, benefits,
recruiting, training, advertising, sales, marketing, promotions, government and regulatory
activities and approvals concerning the past, current or future business, activities and operations
of the Company, its Affiliates and/or any third party that has disclosed or provided any of same to
the Company or its Affiliates on a confidential basis. “Confidential Information” also includes
any information designated as a trade secret or proprietary information by operation of law or
otherwise, but shall not be limited by such designation. “Confidential Information” shall not
include any information that is (i) generally known to the industry or the public other than as a
result of Executive’s breach of this covenant; (ii) made legitimately available to Executive by a
third party without breach of any confidentiality obligation; or (iii) required by law to be
disclosed; provided that Executive shall give prompt written notice to the Company of such
requirement, disclose no more information than is so required, and cooperate with any attempts by
the Company to obtain a protective order or similar treatment.

          j. “Controlled Group” shall mean all corporations or business entities that are, along with
the Company, members of a controlled group of corporations or businesses, as defined in Code
Sections 414(b) and 414(c), except that the language “at least 50 percent” is used instead of “at
least 80 percent” in applying the rules of Code Sections 414(b) and 414(c).

          k. “Fiscal Year” shall mean the fiscal year of the Company.

          l. “Good Reason” shall mean any of the following conditions which occurs without the consent
of the Executive: (i) a material diminution in the Executive’s base salary or

3

 

annual bonus opportunity; (ii) a material diminution in the Executive’s authority, duties, or
responsibilities (including status, offices, titles and reporting requirements); (iii) a material
change in the geographic location at which the Executive must perform his duties; (iv) failure of
the Company to pay compensation or benefits when due, or (v) any other action or inaction that
constitutes a material breach by the Company of this Agreement. The conditions described above
will not constitute “Good Reason” unless the Executive provides written notice to the Company of
the existence of the condition described above within 90 days after the initial existence of such
condition. In addition, the conditions described above will not constitute “Good Reason” unless
the Company fails to remedy the condition within a period of thirty (30) days after receipt of the
notice described in the preceding sentence. If the Company fails to remedy the condition within
the period referred to in the preceding sentence, Executive may terminate his employment with the
Company for “Good Reason” within in the next thirty (30) days following the expiration of the cure
period.

          m. “Notice of Termination” shall mean a notice which shall indicate the general reasons for
the termination employment and the circumstances claimed to provide a basis for termination of
employment or other Separation of Service under the provision so indicated.

          n. “Person” shall mean any person, firm, partnership, joint venture, association, corporation
or other business organization, entity or enterprise whatsoever.

          o. “Restricted Period” shall be (i) one year from the Termination Date in the event of a
Separation from Service that occurs during the Service Term (as defined hereinafter) other than in
the case of an involuntary Separation from Service without Cause, (ii) in the case of an
involuntary Separation from Service without Cause during the Service Term, an amount of time in
whole months equal to the number of months’ salary the Company agrees to provide to Executive in
severance, whether paid over time or in a lump sum; and (iii) two years from the Termination Date
in the event of a Separation from Service following a Change In Control where Executive receives
the Change In Control Payment (as defined hereinafter).

          p. “Separation from Service” shall mean an event after which the Executive shall no longer
provide services to the members of the Controlled Group, whether voluntarily or involuntarily as
determined by the Committee (as hereafter defined) in accordance with Treas. Reg. §1.409A-1(h)(1).
A Separation from Service shall occur when Executive has experienced a termination of employment
from the members of the Controlled Group. Executive shall be considered to have experienced a
termination of employment when the facts and circumstances indicate that the Executive and the
Company reasonably anticipate that either (i) no further services will be performed for the members
of the Controlled Group after a certain date, or (ii) that the level of bona fide services the
Executive will perform for the members of the Controlled Group after such date (whether as an
employee or as an independent contractor) will permanently decrease to no more than 20% of the
average level of bona fide services performed by such Executive (whether as an employee or an
independent contractor) over the immediately preceding 36-month period (or the full period of
services to the members of the Controlled Group if the Executive has been providing services to the
members of the Controlled Group less than 36 months). If Executive is on military leave, sick
leave, or other bona fide leave of absence, the employment relationship between the Executive and
the members of the Controlled Group shall be treated as continuing intact, provided that the period
of such leave does not

4

 

exceed 6 months, or if longer, so long as the Executive retains a right to reemployment with
the members of the Controlled Group under an applicable statute or by contract. If the period of a
military leave, sick leave, or other bona fide leave of absence exceeds 6 months and the Executive
does not retain a right to reemployment under an applicable statute or by contract, the employment
relationship shall be considered to be terminated for purposes of this Agreement as of the first
day immediately following the end of such 6-month period. In applying the provisions of this
paragraph, a leave of absence shall be considered a bona fide leave of absence only if there is a
reasonable expectation that the Executive will return to perform services for any members of the
Controlled Group.

Notwithstanding the foregoing provisions, if Executive provides services for the Company as both an
employee and as a non-employee director, to the extent permitted by Treas. Reg. §1.409A-1(h)(5) the
services provided by such Executive as a non-employee director shall not be taken into account in
determining whether the Executive has experienced a Separation from Service.

          q. “Target Bonus” shall mean the target bonus for Executive under any annual bonus plan in
effect from time to time as determined by the Compensation Committee (the “Committee”) or the
Board.

          r. “Termination Date” shall mean the date upon which a Separation from Service with respect to
an Executive occurs.

     2. Term of Change In Control Agreement.

          a. This Agreement shall be for an initial term (the “Initial Term”) of two years and shall
continue to renew for consecutive two year terms thereafter (a “Renewal Term”), unless either party
shall give written notice to the other (a “Notice of Non-Renewal”) that such agreement shall not
renew at least ninety days prior to the expiration of the Initial Term or Renewal Term then in
effect. Notwithstanding the foregoing, the Company may not give a Notice of Non-Renewal during the
Change In Control Protection Period.

          b. This Agreement, except those provisions which shall survive under Section 11(k), shall
terminate upon the termination of Executive’s employment for any reason other than the termination
of Executive’s employment during the Change In Control Protection Period (x) by the Company without
Cause or (y) by the Executive with Good Reason. No payment under this Agreement will be due to
Executive upon termination of Executive’s employment for any reason other than as specified in (x)
or (y) above.

     3. Executive’s Incumbent Position.

          a. Unless notified otherwise by the Chief Executive Officer of the Company or the Board,
Executive shall serve as Executive Vice President, General Counsel & Corporate Secretary
(“Executive’s Incumbent Position”). In such position, Executive shall have such duties and
authority as shall be determined from time to time by the Chief Executive Officer and the Board.
If requested, Executive shall also serve as a member of the Board without additional compensation.
The period during which the Executive shall be employed by the Company shall be called the “Service
Term.”

5

 

          b. Except as provided in Section 5, (i) either Company or Executive may terminate the
employment relationship at any time, with or without Cause or Good Reason, (ii) this Agreement
shall not be construed as giving the Executive any right to be retained in the employ of the
Company or its Affiliates, (iii) the Company may at any time terminate the Executive free from any
liability of any claim under this Agreement, except as expressly provided herein; and (iv) the
Company may demote Executive at any time in its absolute and sole discretion without liability to
the Executive.

          c. During the Service Term, Executive will devote Executive’s full business time and best
efforts to the performance of Executive’s duties hereunder and will not engage in any other
business, profession or occupation for compensation or otherwise which would conflict or interfere
with the rendition of such services either directly or indirectly, without the prior written
consent of the Board; provided that nothing herein shall preclude Executive, (i) subject to the
prior approval of the Board, from accepting appointment to or continuing to serve on any board of
directors or trustees of any business corporation or any charitable organization or (ii) from
participating in charitable activities or managing personal investments; provided in each case, and
in the aggregate, that such activities do not conflict or interfere with the performance of
Executive’s duties hereunder or conflict with Sections 7 or 8. Executive shall promote the
goodwill of the Company with its employees, customers, stockholders, vendors, and the general
public. During the Service Term, reasonable business expenses incurred by Executive in the
performance of Executive’s duties hereunder and to support the goodwill and business relationships
of the Company shall be reimbursed by the Company in accordance with Company policies.

     4. Obligations of the Company upon Change In Control with Respect to Long-Term Incentive
Awards and Deferred Compensation.

          The effect of a change in control on any long-term incentive awards (cash or equity) or
deferred compensation previously granted to the Executive under the 2008 Deferred Compensation
Plan, 2004 Stock Incentive Plan or the 2004 Deferred Compensation Plan, as amended, (the “Long-Term
Incentive Awards”) shall be governed by the terms and conditions of the applicable individual award
agreements or deferral agreements and the Celanese Corporation 2008 Deferred Compensation Plan, the
2004 Stock Incentive Plan or the 2004 Deferred Compensation Plan, as amended (collectively, the
“Long-Term Incentive Award Agreements”), and shall not be governed by this Agreement.

     5. Termination of Employment Connected with a Change In Control.

          a. Upon Executive’s Separation from Service during the Change In Control Protection Period,
Executive shall receive the Change In Control Payment if and only if the following conditions
occur:

                    (i) The Change In Control is consummated;

                    (ii) Executive is employed in the Executive Incumbent Position or some substantially
equivalent or higher position for the Company as of the commencement of the Change In Control
Protection Period;

6

 

                    (iii) Executive’s employment is terminated either by the Company without Cause or by the
Executive with Good Reason such that a Separation from Service occurs;

                    (iv) Within fifty (53) days after both conditions in Sections 5(a)(i) and 5(a)(iii), or at the
expiration of twenty-one (21) days following the presentation of the release, Executive executes a
release of all claims, known or unknown, against the Company, its Affiliates, and their respective
agents in a form satisfactory to the Company similar to that attached hereto as Exhibit A and does
not timely revoke such release before the expiration of seven days following his or her execution
of the release; and

                    (v) Within fifty (53) days after both conditions in Sections 5(a)(i) and 5(a)(iii), Executive
reaffirms in writing in a manner satisfactory to the Company his or her obligations under Sections
7 and 8 of this Agreement.

          b. The “Change In Control Payment” shall be equal to two times the sum of (i) Executive’s then
current annualized base salary; and (ii) the higher of (x) Executive’s Target Bonus in effect on
the last day of the Fiscal Year that ended immediately prior to the year in which the Termination
Date occurs, or (y) the average of the cash bonuses paid by the Company to Executive for the three
Fiscal Years preceding the Termination Date.

          c. The Change In Control Payment shall be paid in a single lump sum to Executive six (6)
months and one day after the Executive’s Termination Date, together with interest at the rate
provided in Section 1274(b)(2)(B) of the Code.

          d. Provided that (i) all of the conditions in Section 5(a) are met, (ii) Executive makes a
timely COBRA election, and (iii) Executive has complied in all material respects with regard to the
obligations of Sections 7 and 8 of this Agreement, if the Executive timely remits to the Company
the applicable “COBRA” premiums for such coverage, the Company will continue to provide group
health and dental coverage under the Company’s medical plan for Executive and his or her dependents
during the Restricted Period; and will reimburse Executive for all premiums paid by Executive for
such continued coverage. Such reimbursements will be made within thirty (30) days after
Executive’s payment of such premiums (or submission of a request for reimbursement and satisfactory
proof of such payment) but in no event later than on or before the last day of the Executive’s tax
year following the tax year in which the expense was incurred. The amount of COBRA premiums and
health and dental expenses eligible for reimbursement during Executive’s tax year may not affect
the COBRA premiums and health and dental expenses eligible for reimbursement in any other tax year.

          e. Certain Further Payments Due Executive

                    (i) In the event that any amount or benefit paid or distributed to Executive pursuant to this
Agreement and/or any amounts or benefits otherwise paid or distributed to Executive by the Company
that are treated as parachute payments under Section 280G of the Code (such payments, collectively,
the “Covered Payments”), are or become subject to the tax imposed under Section 4999 of the Code or
any similar tax that may hereafter

7

 

be imposed (the “Excise Tax”), the Company will pay to Executive an additional amount (the
“Tax Reimbursement Payment”), such that the net amount retained by Executive with respect to such
Covered Payments, after deduction of any Excise Tax (as well as any penalties and interest thereon)
on the Covered Payments and any Federal, state and local income tax, payroll tax, and Excise Tax on
the Tax Reimbursement Payment provided for by this subsection (e), but before deduction for any
Federal, state or local income or employment tax withholding on such Covered Payments, will be
equal to the amount of the Covered Payments, together with an amount equal to the product of any
deductions disallowed to Executive for federal, state, or local income tax purposes because of the
inclusion of the Tax Reimbursement Payment in Executive’s adjusted gross income multiplied by the
highest applicable marginal rate of federal, state, or local income taxation, respectively, for the
calendar year in which the Tax Reimbursement Payment is to be made. The time for payment of the
Tax Reimbursement Payment is set forth in subsection (e)(v) below. The Tax Reimbursement Payment
is intended to place the Executive in the same position he would have been in if the Excise Tax did
not apply.

                    (ii) For purposes of determining whether any of the Covered Payments will be subject to the
Excise Tax and the amount of such Excise Tax,

                              (A) such Covered Payments will be treated as “parachute payments” within the meaning of
Section 280G of the Code, and all “parachute payments” in excess of the “base amount” (as defined
under Section 280G(b)(3) of the Code) will be treated as subject to the Excise Tax, unless, and
except to the extent that, in the good faith judgment of a public accounting firm appointed by the
Company or tax counsel selected by such accounting firm (the “Accountants”), the Company has a
reasonable basis to conclude that such Covered Payments (in whole or in part) either do not
constitute “parachute payments” or represent reasonable compensation for personal services actually
rendered (within the meaning of Section 280G(b)(4)(B) of the Code) in excess of the “base amount,”
or such “parachute payments” are otherwise not subject to such Excise Tax; and

                              (B) the value of any non-cash benefits or any deferred payment or benefit will be determined
by the Accountants in accordance with the principles of Section 280G of the Code.

                    (iii) For purposes of determining the amount of the Tax Reimbursement Payment, Executive will
be deemed to pay:

                              (A) Federal income taxes at the highest applicable marginal rate of Federal income taxation
for the calendar year in which the Tax Reimbursement Payment is to be made; and

                              (B) any applicable state and local income taxes at the highest applicable marginal rate of
taxation for the calendar year in which the Tax Reimbursement Payment is to be made, net of the
maximum reduction in Federal income taxes which could be obtained from the deduction of such state
or local taxes if paid in such year.

                    (iv) In the event that the Excise Tax amount, if any, initially determined to be payable to
the United States Treasury Department pursuant to this subsection

8

 

(e) is later determined by the Accountants or pursuant to any proceeding or negotiations with
the Internal Revenue Service to exceed the amount taken into account hereunder at the time the Tax
Reimbursement Payment was initially determined (including, but not limited to, by reason of any
payment the existence or amount of which could not be determined at the time of the Tax
Reimbursement Payment), the Company will make an additional Tax Reimbursement Payment, in respect
of such excess (including making a full Tax Reimbursement Payment in the event of an initial
determination that no Excise Tax amount was due) (as well as any interest or penalty payable with
respect to such payment) at the time specified in subsection (e)(v) below.

                    In the event that the Excise Tax is subsequently determined by the Accountants or pursuant to
any proceeding or negotiations with the Internal Revenue Service to be less than the amount taken
into account under this subsection (e) in calculating the Tax Reimbursement Payment made, Executive
will repay to the Company, at the time specified in subsection (e)(v) below, the portion of such
prior Tax Reimbursement Payment that would not have been paid if the amount of the Excise Tax had
been accurately calculated in determining such Tax Reimbursement Payment, plus interest on the
amount of such repayment at the rate provided in Section 1274(b)(2)(B) of the Code.
Notwithstanding the foregoing, in the event any portion of the Tax Reimbursement Payment to be
refunded to the Company has been paid to any Federal, state or local tax authority, repayment
thereof will not be required until actual refund or credit of such portion has been made to
Executive, and interest payable to the Company will not exceed interest received or credited to
Executive by such tax authority for the period it held such portion. Executive and the Company
will mutually agree upon the course of action to be pursued (and the method of allocating the
expenses thereof) if Executive’s good faith claim for refund or credit is denied (in whole or in
part); provided that Executive will remain responsible to repay the Company for any such unrefunded
Tax Reimbursement Payments to the extent Executive ultimately prevails in such claim.

                    (v) The Tax Reimbursement Payment (or portion thereof) provided for in this subsection (e)
will be paid to Executive within 5 days after Executive remits the Excise Tax to the Internal
Revenue Service but no later than the end of the Executive’s tax year following the tax year in
which the Executive remits the Excise Tax to the Internal Revenue Service. Further, in the event
that the initial Tax Reimbursement Payment was too little and additional Tax Reimbursement Payments
are subsequently determined to be payable to Executive pursuant to subsection (e)(iv) above, such
Tax Reimbursement Payment or additional Tax Reimbursement Payment amount will be made by the
Company to Executive within 5 days after the date that Executive remits such portion to the
Internal Revenue Service, but no later than the end of the Executive’s tax year following the tax
year in which the Executive remits such portion to the Internal Revenue Service. In the event that
the amount of the estimated Tax Reimbursement Payment exceeds the amount subsequently determined to
have been due, subject to the provisions of subsection (e)(iv), such excess will be payable by
Executive to the Company on the fifth (5th) business day after written demand by the Company for
payment (together with interest at the rate provided in Section 1274(b)(2)(B) of the Code).
Company will reimburse the Executive for any interest, penalties or surcharge that may be imposed
on the Executive in connection with any Excise Tax (including a reimbursement of any additional
taxes imposed as a result of the reimbursement of any such interest, penalties or surcharge) within
5 days after payment by the Executive, but in no event later than on or before the last day of the
Executive’s tax year following the tax year in which the interest, penalties, surcharge or other
taxes are

9

 

imposed, such reimbursement obligation shall remain in effect during the applicable statute of
limitations relating to any such interest, penalties or surcharge (but in no event shall remain in
effect for longer than 10 years), and the amount of expenses eligible for reimbursement hereunder
during Executive’s tax year will not affect the expenses eligible for reimbursement in any other
tax year.

                    (vi) The Tax Reimbursement Payment due under this subsection (e) shall not exceed two million
dollars ($2,000,000).

                    (vii) If the amount of the Covered Payments is equal to or less than 110% of the product of
2.99 and Executive’s applicable “base amount” (as such term is defined for purposes of Section 4999
of the Code), the Covered Payments under this Agreement or otherwise shall be reduced by the
minimum amount necessary so that none of the Covered Payments are subject to the excise tax under
Section 4999 of the Code; provided, however, that this subsection (e)(vii) shall not apply if, even
after all Covered Payments due hereunder are reduced to zero, the value of the Covered Payments
would still be subject to the excise tax under Section 4999 of the Code, in which case no reduction
of any Covered Payments shall be made.

          f. Notwithstanding any provision of this Agreement to the contrary, if Executive is a
“Specified Employee” within the meaning of Treasury Regulation §1.409A-1(i) and if any payment
under this Agreement provides for a “deferral of compensation” within the meaning of Treasury
Regulation §1.409A-1(b) and if such payment would otherwise occur before the date that is six (6)
months after the Executive’s Termination Date, then such payment shall be delayed and shall occur
on the date that is six (6) months and one (1) day after the Termination Date (or, if earlier, the
date of the Executive’s death), together with interest at the rate provided in Section
1274(b)(2)(B) of the Code.

     6. Exclusivity of Benefits. Executive acknowledges that this Agreement supercedes and
replaces all prior agreements or understandings Executive may have with the Company with respect to
compensation or benefits that may become payable in connection with or as a result of a change in
control of the Company, whether or not such change in control constitutes a Change In Control,
including any provisions contained in any employment agreement, offer letter or change in control
agreement, except benefits under the Letter Agreement elected pursuant to the following paragraph
and with respect to any Long-Term Incentive Awards which shall be governed by the terms of the
Long-Term Incentive Award Agreements. This Agreement also describes all payments and benefits that
the Company shall be obligated to provide to Executive upon Executive’s Separation from Service
during a Change In Control Protection Period and shall constitute Executive’s agreement to waive
any rights to payment under the Celanese Americas Separation Pay Plan, any similar or successor
plan adopted by the Company, and any other term of employment contained in any employment
agreement, offer letter, change in control agreement or otherwise (other than benefits to which
he/she may be entitled, if any: (i) under any Celanese plan qualified under Section 401(a) of the
Internal Revenue Code, including the Celanese Americas Retirement Pension Plan and Celanese
Americas Retirement Savings Plan; and (ii) under the 2008 Celanese Deferred Compensation Plan) to
the extent that the circumstances giving right to such right to payment would constitute a
Separation of Service during a Change In Control Protection Period.

10

 

     The parties hereto acknowledge the existence of that certain letter agreement, dated March 18,
2005, between Celanese and Executive (the “Letter Agreement”). The parties hereto further
acknowledge that the Letter Agreement continues to be legal, valid, binding, and enforceable in
accordance with its terms.  In addition, notwithstanding anything to the contrary set forth in this
Agreement, the parties hereto acknowledge that Executive may, at any time, and from time to time,
elect to enforce his rights pursuant to the Letter Agreement instead of enforcing his rights
pursuant to this Agreement, in which case the Letter Agreement shall survive and govern, and this
Agreement shall cease to be effective, except with respect to Sections 7, 8, and 9 of this
Agreement which shall be effective as of the date hereof and shall survive any such election by
Executive.

     7. Confidentiality; Intellectual Property.

          a. Confidentiality.

                    (i) Based upon the assurances given by the Executive in this Agreement, the Company will
provide Executive with access to its Confidential Information. Executive hereby reaffirms that all
Confidential Information received by Executive prior to the termination of this Agreement is the
exclusive property of the Company and Executive releases any individual claim to the Confidential
Information.

                    (ii) Executive will not at any time (whether during or after Executive’s employment with the
Company) (x) retain or use for the benefit, purposes or account of Executive or any other Person;
or (y) disclose, divulge, reveal, communicate, share, make available, transfer or provide access to
any Person outside the Company (other than its professional advisers who are bound by
confidentiality obligations), any Confidential Information without the prior written authorization
of the Board.

                    (iii) Upon termination of Executive’s employment with the Company for any reason, Executive
shall (x) cease and not thereafter commence use of any Confidential Information or intellectual
property (including without limitation, any patent, invention, copyright, trade secret, trademark,
trade name, logo, domain name or other source indicator) owned or used by the Company or its
Affiliates; (y) immediately destroy, delete, or return to the Company, at the Company’s option, all
originals and copies in any form or medium (including memoranda, books, papers, plans, computer
files, letters and other data) in Executive’s possession or control (including any of the foregoing
stored or located in Executive’s office, home, laptop or other computer, whether or not Company
property) that contain Confidential Information or otherwise relate to the business of the Company
or its Affiliates, except that Executive may retain only those portions of any personal notes,
notebooks and diaries that do not contain any Confidential Information; and (z) notify and fully
cooperate with the Company regarding the delivery or destruction of any other Confidential
Information of which Executive is or becomes aware.

                    (iv) If Executive has previously entered into any confidentiality or non-disclosure agreements
with any former employer, Executive hereby represents and warrants that

11

 

such confidentiality and/or non-disclosure agreement or agreements have been fully disclosed
and provided to the Company prior to commencing employment with the Company.

          b. Intellectual Property.

                    (i) If Executive has created, invented, designed, developed, contributed to or improved any
works of authorship, inventions, intellectual property, materials, documents or other work product
(including without limitation, research, reports, software, databases, systems, applications,
presentations, textual works, content, or audiovisual materials) (“Works”), either alone or with
third parties, prior to Executive’s employment by the Company, that are relevant to or implicated
by such employment (“Prior Works”), Executive hereby grants the Company a perpetual, non-exclusive,
royalty-free, worldwide, assignable, sublicensable license under all rights and intellectual
property rights (including rights under patent, industrial property, copyright, trademark, trade
secret, unfair competition and related laws) therein for all purposes in connection with the
Company’s current and future business. A list of all such Works as of the date hereof is attached
hereto as Exhibit B.

                    (ii) If Executive creates, invents, designs, develops, contributes to or improves any Works,
either alone or with third parties, at any time during Executive’s employment by the Company and
within the scope of such employment and/or with the use of any of the Company resources (“Company
Works”), Executive shall promptly and fully disclose same to the Company and hereby irrevocably
assigns, transfers and conveys, to the maximum extent permitted by applicable law, all rights and
intellectual property rights therein (including rights under patent, industrial property,
copyright, trademark, trade secret, unfair competition and related laws) to the Company to the
extent ownership of any such rights does not vest originally in the Company.

                    (iii) Executive agrees to keep and maintain adequate and current written records (in the form
of notes, sketches, drawings, and any other form or media requested by the Company) of all Company
Works. The records will be available to and remain the sole property and intellectual property of
the Company at all times.

                    (iv) Executive shall take all requested actions and execute all requested documents (including
any licenses or assignments required by a government contract) at the Company’s expense (but
without further remuneration) to assist the Company in validating, maintaining, protecting,
enforcing, perfecting, recording, patenting or registering any of the Company’s rights in the Prior
Works and Company Works. If the Company is unable for any other reason to secure Executive’s
signature on any document for this purpose, then Executive hereby irrevocably designates and
appoints the Company and its duly authorized officers and agents as Executive’s agent and attorney
in fact, to act for and in Executive’s behalf and stead to execute any documents and to do all
other lawfully permitted acts in connection with the foregoing.

                    (v) Executive shall not improperly use for the benefit of, bring to any premises of, divulge,
disclose, communicate, reveal, transfer or provide access to, or share with the Company any
confidential, proprietary or non-public information or intellectual property relating to a former
employer or other third party without the prior written permission of such

12

 

third party. Executive hereby indemnifies, holds harmless and agrees to defend the Company
and its officers, directors, partners, employees, agents and representatives from any breach of the
foregoing covenant. Executive shall comply with all relevant policies and guidelines of the
Company, including regarding the protection of confidential information and intellectual property
and potential conflicts of interest. Executive acknowledges that the Company may amend any such
policies and guidelines from time to time, and that Executive remains at all times bound by their
most current version.

          c. In the event Executive leaves the employ of the Company, Executive hereby grants consent to
notification by the Company to any subsequent employer about Executive’s rights and obligations
under this Agreement.

     8. Non-Competition; Non-Solicitation.

          a. Executive acknowledges and recognizes the highly competitive nature of the businesses of
the Company and its Affiliates and accordingly agrees as follows:

                    (i) During the Service Term and for the Restricted Period, Executive will not, whether on
Executive’s own behalf or on behalf of or in conjunction with any Person, directly or indirectly
solicit or assist in soliciting in competition with the Company or its Affiliates, the business of
any customer, prospective customer, client or prospective client:

                              (A) with whom Executive had personal contact or dealings on behalf of the Company or its
Affiliates during the one year period preceding the termination of Executive’s employment;

                              (B) with whom employees directly or indirectly reporting to Executive have had personal
contact or dealings on behalf of the Company or its Affiliates during the one-year immediately
preceding the termination of Executive’s employment; or

                              (C) for whom Executive had direct or indirect responsibility during the one year period
immediately preceding the termination of Executive’s employment.

                    (ii) During the Restricted Period, Executive will not directly or indirectly:

                              (A) engage in any Competitive Business;

                              (B) enter the employ of, or render any services to, any Person (or any division or controlled
or controlling affiliate of any Person) who or which engages in a Competitive Business;

                              (C) acquire a financial interest in, or otherwise become actively involved with, any
Competitive Business, directly or indirectly, as an individual, partner, stockholder, officer,
director, principal, agent, trustee or consultant; or

13

 

                              (D) interfere with, or attempt to interfere with, business relationships (whether formed
before, on or after the date of this Agreement) between the Company or any of its Affiliates and
customers, clients, suppliers partners, members or investors of the Company or its Affiliates.

                    (iii) Notwithstanding anything to the contrary in this Agreement, Executive may directly or
indirectly own, solely as an investment, securities of any Person engaged in the business of the
Company or its Affiliates which are publicly traded on a national or regional stock exchange or on
the over-the-counter market if Executive (i) is not a controlling Person of, or a member of a group
which controls, such Person and (ii) does not, directly or indirectly, own 5% or more of any class
of securities of such Person.

                    (iv) During the Restricted Period, Executive will not, whether on Executive’s own behalf or on
behalf of or in conjunction with any Person, directly or indirectly:

                              (A) solicit, interview, encourage, or take any other action that would tend to influence in
any manner any employee of the Company or its Affiliates to leave the employment of the Company or
its Affiliates (other than as a result of a general advertisement of employment made by Executive’s
subsequent employer or business, not directed at any such employee); or

                              (B) hire any such employee who was employed by the Company or its Affiliates as of the
Termination Date or who left the employment of the Company or its Affiliates coincident with, or
within one year prior to or after, the Termination Date.

                    (v) During the Restricted Period, Executive will not, directly or indirectly, solicit or
encourage any consultant then under contract with the Company or its Affiliates to cease to work
with the Company or its Affiliates.

          b. It is expressly understood and agreed that although Executive and the Company consider the
restrictions contained in this Section 8 to be reasonable, if a final judicial determination is
made by a court of competent jurisdiction that the time or territory or any other restriction
contained in this Agreement is an unenforceable restriction against Executive, the provisions of
this Agreement shall not be rendered void but shall be deemed amended to apply as to such maximum
time and territory and to such maximum extent as such court may judicially determine or indicate to
be enforceable. Alternatively, if any court of competent jurisdiction finds that any restriction
contained in this Agreement is unenforceable, and such restriction cannot be amended so as to make
it enforceable, such finding shall not affect the enforceability of any of the other restrictions
contained herein.

          c. Prior to the commencement thereof, Executive will provide written notice to the Company of
any employment or other activity that would potentially violate the provisions of Sections 7 or 8
and, if Executive wishes to do so, Executive may ask the Board to modify or waive the protections
of this Section 8, but nothing in this Agreement shall limit in any manner the Board’s absolute
discretion not to do so.

14

 

     9. Enforcement of Promises Concerning the Protection of the Company’s Confidential Information
and Goodwill. Executive acknowledges and agrees that the Company’s remedies at law for a breach or
threatened breach of any of the provisions of Section 7 or Section 8 would be inadequate and the
Company would suffer irreparable damages as a result of such breach or threatened breach. In
recognition of this fact, Executive agrees that, in the event of such a breach in or threatened
breach, in addition to any remedies at law, the Company, without posting any bond, shall be
entitled to obtain equitable relief in the form of specific performance, temporary restraining
order, temporary or permanent injunction or any other equitable remedy which may then be available.
In addition, and without limiting the Company’s ability to obtain such equitable relief, Executive
shall not be entitled to any Change In Control Payment if Executive materially violates the
provisions of Sections 7 or 8 and, to the extent that such payments have already been made,
Executive shall repay all Change In Control Payments immediately upon demand by the Company.

     10. Section 409A Acknowledgement and Release. Executive understands that payments under this
Agreement are potentially subject to Section 409A of the Code and that if this Agreement does not
satisfy an exception to Code Section 409A or does not comply with the requirements of Section 409A
and the applicable guidance thereunder, then Executive may incur adverse tax consequences under
Section 409A. Executive acknowledges and agrees that (a) Executive is solely responsible for all
obligations arising as a result of the tax consequences associated with payments under this
Agreement including, without limitation, any taxes, interest or penalties associated with Section
409A, (b) Executive is not relying upon any written or oral statement or representation by the
Company or any Affiliate thereof, or any of their respective employees, directors, officers,
attorneys or agents (collectively, the “Company Parties”) regarding the tax effects associated with
the execution of this Agreement and the payment under this Agreement, and (c) in deciding to enter
into this Agreement, Executive is relying on his or her own judgment and the judgment of the
professionals of his or her choice with whom Executive has consulted. Executive hereby releases,
acquits and forever discharges the Company Parties from all actions, causes of actions, suits,
debts, obligations, liabilities, claims, damages, losses, costs and expenses of any nature
whatsoever, known or unknown, on account of, arising out of, or in any way related to the tax
effects associated with the execution of this Agreement and any payment hereunder.

     11. Miscellaneous.

          a. Governing Law; Jurisdiction; Venue. This Agreement shall be governed by and construed in
accordance with the laws of the State of Texas, without regard to conflicts of laws principles
thereof. Any action concerning or relating to this Agreement shall be filed only in the federal
and state courts sitting in Dallas County, Texas.

          b. Entire Agreement; Amendments. This Agreement and the Letter Agreement contain the entire
understanding of the parties with respect to any Change In Control or the subject matter of this
Agreement, provided however, that the effects of a change in control pursuant to the Long-Term
Incentive Award Agreements shall be governed by the terms of such agreements and shall not be
affected by this Agreement.

15

 

          c. No Waiver. The failure of a party to insist upon strict adherence to any term of this
Agreement, or any term of any agreement with any other employee, on any occasion shall not be
considered a waiver of such party’s rights or deprive such party of the right thereafter to insist
upon strict adherence to that term or any other term of this Agreement.

          d. Severability. In the event that any one or more of the provisions of this Agreement shall
be or become invalid, illegal or unenforceable in any respect, the validity, legality and
enforceability of the remaining provisions of this Agreement shall not be affected thereby.

          e. Assignment. This Agreement, and all of Executive’s rights and duties hereunder, shall not
be assignable or delegable by Executive. Any purported assignment or delegation by Executive in
violation of the foregoing shall be null and void ab initio and of no force and effect. This
Agreement may be assigned, in whole or in part, by the Company to a Person which is an Affiliate or
a successor in interest to all or a substantial part of the business operations of the Company.
Upon such assignment, the rights and obligations of the Company hereunder shall become the rights
and obligations of such Affiliate or successor Person.

          f. Successors; Binding Agreement. This Agreement shall inure to the benefit of and be binding
upon personal or legal representatives, executors, administrators, successors, heirs, distributees,
devisees and legatees.

          g. Notice. For the purpose of this Agreement, notices and all other communications provided
for in the Agreement shall be in writing and shall be deemed to have been duly given when delivered
by hand or overnight courier or three days after it has been mailed by United States registered
mail, return receipt requested, postage prepaid, addressed to the respective addresses set forth
below in this Agreement, or to such other address as either party may have furnished to the other
in writing in accordance herewith, except that notice of change of address shall be effective only
upon receipt.

If to the Company:

1601 West LBJ Freeway

Dallas, TX 75234-6034

Attention: Senior Vice President - Human Resources

If to Executive:

Executive’s home address as set forth in the personnel records of the Company

          h. Cooperation. Executive shall provide Executive’s reasonable cooperation in connection with
any action or proceeding (or any appeal from any action or proceeding) which relates to events
occurring during Executive’s employment hereunder.

          i. Withholding Taxes. The Company may withhold from any amounts payable under this Agreement
such Federal, state and local taxes as may be required to be withheld pursuant to any applicable
law or regulation.

16

 

          j. Counterparts. This Agreement may be signed in counterparts, each of which shall be an
original, with the same effect as if the signatures thereto and hereto were upon the same
instrument.

          k. Survival. The provisions of Sections 1 and 7 through 9 of this Agreement shall survive the
termination of this Agreement.

     IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement as of the day and
year first above written.

	 	 	 	 	 	 	 	 	 
	EXECUTIVE:	 	 	 	Celanese Corporation:
	 
	 	 	 	 	 	 	 	 
	By:

	 	 	 	 	 	By:	 	 
	 

	 	 
	 	 	 	 	 	 
	 

	 	Curtis S. Shaw	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Date:

	 	 	 	 	 	Date:	 	 
	 

	 	 
	 	 	 	 	 	 

17

 

EXHIBIT A

FORM OF GENERAL RELEASE AGREEMENT

AGREEMENT AND GENERAL RELEASE

     Celanese Corporation and its Affiliates (the “Company”), 1601 West LBJ Freeway, Dallas, Texas
75234 and Curtis S. Shaw, his or her heirs, executors, administrators, successors, and assigns
(“Executive”), enter into this Agreement and General Release (the “Release”) and agree as follows:

	1.	 	Last Day of Employment (Separation Date). The last day of employment with the Company
is [Insert Date] (the “Separation Date”).

	2.	 	Consideration. In consideration for signing this Release and compliance with the
promises made herein, Company and Executive agree:

a. Change In Control Payment. The Company will pay the Change In Control Payment, as
defined in the Change In Control Agreement between the Company and Executive dated on or about
April 1, 2008 (the “CIC Agreement”) 1 and provide the reimbursements set forth in
the CIC Agreement. Executive agrees that such payments are the exclusive payments due to
Executive arising out of the separation of Executive’s employment.

b. Unused Vacation. The Company will pay to Executive wages for prorated unused
vacation as of the Separation Date. 

c. Benefits. The Executive shall be entitled to elect to continue group health and
dental coverage under COBRA and shall be reimbursed for such premiums as provided in the CIC
Agreement. Executive’s rights in any other employee benefit plans of the Company will be as
provided in the relevant plan documents.

	3.	 	No Consideration Absent Execution of this Agreement. Executive understands and
agrees that he/she would not receive the consideration specified in Paragraph “2” above,
unless the Executive signs this Agreement and General Release on the signature page without
having revoked this Release pursuant to paragraph 14 below and the fulfillment of the promises
contained herein.

	4.	 	General Release of Claims. Executive knowingly and voluntarily releases and forever
discharges the Company and its Affiliates, together with its predecessors, successors and
assigns and the current and former employees, officers, directors and agents thereof
(collectively, the “Released Parties”), of and from any and all claims, known and unknown,
asserted and unasserted, Executive has or may have as of the date of execution of this Release
to the full extent permitted by law, in all countries and jurisdictions in which the Released
Parties conduct their respective business, including but not limited to the United States of
America.

	5.	 	Executive acknowledges and agrees that he/she has been paid all amounts owed to Executive as
compensation, whether in the form of salary, bonus, equity compensation, benefits or
otherwise. The release in Section 4 of this Release includes, but is not limited to, any
alleged violation of the following, as may be amended or in effect:

 

			
	1 All capitalized terms shall have the same meaning as
set forth in the CIC Agreement, unless otherwise stated.

18

 

(a) any action arising under or relating to any federal or state statute or local ordinance,
such as:

	 	•	 	Title VII of the Civil Rights Act of 1964;
	 
	 	•	 	The Civil Rights Act of 1991;
	 
	 	•	 	Sections 1981 through 1988 of Title 42 of the United States Code;
	 
	 	•	 	The Employee Retirement Income Security Act of 1974;
	 
	 	•	 	The Immigration Reform and Control Act;
	 
	 	•	 	The Family and Medical Leave Act;
	 
	 	•	 	The Americans with Disabilities Act of 1990;
	 
	 	•	 	The Age Discrimination in Employment Act of 1967;
	 
	 	•	 	The Workers Adjustment and Retraining Notification Act;
	 
	 	•	 	The Occupational Safety and Health Act;
	 
	 	•	 	The Sarbanes-Oxley Act of 2002;
	 
	 	•	 	The Texas Commission on Human Rights Act;
	 
	 	•	 	The Texas Minimum Wage Law;
	 
	 	•	 	Equal Pay Law for Texas; and
	 
	 	•	 	The Vocational Rehabilitation Act.

(b) any other national, federal, state, province, or local civil or human rights law, or any
other local, state, province, national or federal law, regulation or ordinance; or any law,
regulation or ordinance of a foreign country, including but not limited to the Federal
Republic of Germany and the United Kingdom;

(c) any action under public policy, contract, tort, common law or equity, including, but not
limited to, claims based on alleged breach of an obligation or duty arising in contract or
tort, such as breach of contract, fraud, quantum meruit, invasion of privacy, wrongful
discharge, defamation, infliction of emotional distress, assault, battery, malicious
prosecution, false imprisonment, harassment, negligence, gross negligence, and strict
liability;

(d) any claim for lost, unpaid, or unequal wages, salary, or benefits, including, without
limitation, any claim under the Fair Labor Standards Act, the Employee Retirement Income
Security Act, the Equal Pay Act, the Texas Minimum Wage Law, the Texas Equal Pay Law, or any
other local, state, or federal statute concerning classifications, wages, salary, or
benefits, including calculations and deductions relating to same, as well as the employment,
labor and benefits laws and regulations in all countries in addition to the United States of
America, including but not limited to the United Kingdom and the Federal Republic of
Germany; and

(e) any other claim regardless of the forum in which it might be brought, if any, which
Executive has, might have, or might claim to have against any of the Released Parties, for
any and all injuries, harm, damages, wages, benefits, salary, reimbursements, penalties,
costs, losses, expenses, attorneys’ fees, and/or liability or other detriment, if any,
whatsoever and whenever incurred, suffered, or claimed by the Executive.

	6.	 	Affirmations. Executive affirms that he/she has not filed, caused to be filed, or
presently is a party to any claim, complaint, or action against the Released Parties in any
forum or form, provided that this Release shall not affect the rights or responsibilities of
the Equal Employment Opportunity Commission, or any other federal, state, or local authority
with similar responsibilities (collectively, the “Commission”) to enforce any employment
discrimination law, and that this Release shall not

19

 

	 	 	shall affect the right of Executive to file a charge of discrimination with the Commission or
participate in any investigation. However, Executive waives any right to participate in any
payment or benefit arising from any such charge, claim, or investigation.
	 
	 	 	Executive further affirms that he/she has reported all hours worked as of the date of this
Release and has been paid and/or has received all leave (paid or unpaid), compensation, wages,
bonuses, commissions, and/or benefits to which he/she may be entitled and that no other leave
(paid or unpaid), compensation, wages, bonuses, commissions and/or benefits are due to him/her,
except as provided specifically in this Release. Executive furthermore affirms that he/she has
no known workplace injuries or occupational diseases and has been provided and/or has not been
denied any leave requested under the Family and Medical Leave Act.
	 
	 	 	Executive reaffirms that he or she will comply fully with Sections 7 through 9 of the CIC
Agreement and that, if he or she violates such provisions, all consideration paid hereunder will
be immediately due and payable back to the Company.
	 
	7.	 	Governing Law and Interpretation. This Release shall be governed and conformed in
accordance with the laws of the State of Texas, without regard to its conflict of laws
provision. In the event the Executive or Company breaches any provision of this Release,
Executive and Company affirm that either may institute an action to specifically enforce any
term or terms of this Release. Should any provision of this Release be declared illegal or
unenforceable by any court of competent jurisdiction and cannot be modified to be enforceable,
excluding the general release language, such provision shall immediately become null and void,
leaving the remainder of this Release in full force and effect.
	 
	8.	 	Non-admission of Wrongdoing. The parties agree that neither this Release nor the
furnishing of the consideration for this Release shall be deemed or construed at anytime for
any purpose as an admission by Company of any liability or unlawful conduct of any kind.
	 
	9.	 	Neutral Reference. If contacted by another organization, the Company will only
provide dates of employment and position.
	 
	10.	 	Non-Disparagement. Executive agrees not to disparage, or make disparaging remarks or
send any disparaging communications concerning, the Company, its reputation, its business,
and/or its directors, officers and managers. Likewise the Company’s senior management agrees
not to disparage, or make any disparaging remark or send any disparaging communication
concerning Executive, his reputation and/or his business.
	 
	11.	 	Future Cooperation after Separation Date. After separation, Executive agrees to make
reasonable efforts to assist Company including but not limited to: assisting with transition
duties, assisting with issues that arise after separation of employment and assisting with the
defense or prosecution of any lawsuit or claim. This includes but is not limited to providing
deposition testimony, attending hearings and testifying on behalf of the Company. The Company
will reimburse Executive for reasonable time and expenses in connection with any future
cooperation after the separation date. Time and expenses can include loss of pay or using
vacation time at a future employer. The Company shall reimburse the Executive within 30 days
of remittance by Executive to the Company of such time and expenses incurred, but in no event
later than the end of the Executive’s tax year following the tax year in which the Executive
incurs such time and expenses and such reimbursement obligation shall remain in effect for
five years and the amount of expenses eligible for reimbursement hereunder during Executive’s
tax year will not affect the expenses eligible for reimbursement in any other tax year.

20

 

	12.	 	Injunctive Relief. Executive agrees and acknowledges that the Company will be
irreparably harmed by any breach, or threatened breach by him/her of this Agreement and that
monetary damages would be grossly inadequate. Accordingly, he/she agrees that in the event of
a breach, or threatened breach by him/her of this Agreement the Company shall be entitled to
apply for immediate injunctive or other preliminary or equitable relief, as appropriate, in
addition to all other remedies at law or equity.
	 
	13.	 	Review Period. Executive is hereby advised he/she has until [Insert Date],
twenty-one (21) calendar days, to review this Release and to consult with an attorney prior to
execution of this Release. Executive agrees that any modifications, material or otherwise,
made to this Release do not restart or affect in any manner the original twenty-one (21)
calendar day consideration period.
	 
	14.	 	Revocation Period and Effective Date. In the event that Executive elects to sign and
return to the Company a copy of this Agreement, he/she has a period of seven (7) days (the
“Revocation Period”) following the date of such execution to revoke this Release, after which
time this agreement will become effective (the “Effective Date”) if not previously revoked.
In order for the revocation to be effective, written notice must be received by the Company no
later than close of business on the seventh day after the Executive signs this Release at
which time the Revocation Period shall expire.
	 
	15.	 	Amendment. This Release may not be modified, altered or changed except upon express
written consent of both parties wherein specific reference is made to this Release.
	 
	16.	 	Entire Agreement. This Release sets forth the entire agreement between the parties
hereto, and fully supersedes any prior obligation of the Company to the Executive. Executive
acknowledges that he/she has not relied on any representations, promises, or agreements of any
kind made to him/her in connection with his/her decision to accept this Release, except for
those set forth in this Release.
	 
	17.	 	HAVING ELECTED TO EXECUTE THIS AGREEMENT AND GENERAL RELEASE, TO FULFILL THE PROMISES AND TO
RECEIVE THE SUMS AND BENEFITS IN SECTION 2 ABOVE, EXECUTIVE FREELY AND KNOWINGLY, AND AFTER
DUE CONSIDERATION, ENTERS INTO THIS RELEASE INTENDING TO WAIVE, SETTLE AND RELEASE ALL CLAIMS
HE/SHE HAS OR MIGHT HAVE AGAINST COMPANY.

IN WITNESS WHEREOF, the parties hereto knowingly and voluntarily executed this Release as of the
date set forth below.

	 	 	 	 	 	 	 	 	 
	EXECUTIVE:	 	 	 	Celanese Corporation:
	 
	 	 	 	 	 	 	 	 
	By:

	 	 	 	 	 	By:	 	 
	 

	 	 
	 	 	 	 	 	 
	 

	 	Curtis S. Shaw	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Date:

	 	 	 	 	 	Date:	 	 
	 

	 	 
	 	 	 	 	 	 

21

 

EXHIBIT B

[List of Works]

22exv4w1

 

Exhibit 4.1

Execution Version

 

PLAINS ALL AMERICAN PIPELINE, L.P.

PAA FINANCE CORP.

as Issuers

and

THE SUBSIDIARY GUARANTORS NAMED HEREIN

as Guarantors

$600,000,000

SERIES A AND SERIES B

6.50% SENIOR NOTES DUE 2018

THIRTEENTH

SUPPLEMENTAL

INDENTURE

 

Dated as of April 23, 2008

 

U.S. BANK NATIONAL ASSOCIATION

as Trustee
 

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 	 	 
	ARTICLE I	 	 	1	 
	 

	 	Section 1.01.
	 	Establishment
	 	 	1	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE II DEFINITIONS AND INCORPORATION BY REFERENCE	 	 	2	 
	 

	 	Section 2.01.
	 	Definitions
	 	 	2	 
	 

	 	Section 2.02.
	 	Other Definitions
	 	 	8	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE III THE NOTES	 	 	8	 
	 

	 	Section 3.01.
	 	Form
	 	 	8	 
	 

	 	Section 3.02.
	 	Issuance of Additional Notes
	 	 	9	 
	 

	 	Section 3.03.
	 	Transfer of Transfer Restricted Securities
	 	 	9	 
	 

	 	Section 3.04.
	 	Restrictive Legends
	 	 	11	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE IV REDEMPTION AND PREPAYMENT	 	 	13	 
	 

	 	Section 4.01.
	 	Optional Redemption
	 	 	13	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE V COVENANTS	 	 	13	 
	 

	 	Section 5.01.
	 	Compliance Certificate
	 	 	13	 
	 

	 	Section 5.02.
	 	Limitations on Liens
	 	 	14	 
	 

	 	Section 5.03.
	 	Restriction of Sale-Leaseback Transactions
	 	 	15	 
	 

	 	Section 5.04.
	 	SEC Reports; Financial Statements
	 	 	16	 
	 

	 	Section 5.05.
	 	Additional Subsidiary Guarantees
	 	 	16	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE VI SUCCESSORS	 	 	17	 
	 

	 	Section 6.01.
	 	Consolidation and Mergers of the Issuers
	 	 	17	 
	 

	 	Section 6.02.
	 	Rights and Duties of Successor
	 	 	17	 
	 

	 	Section 6.03.
	 	Supplemental Indenture
	 	 	17	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE VII DEFAULTS AND REMEDIES	 	 	18	 
	 

	 	Section 7.01.
	 	Events of Default
	 	 	18	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE VIII LEGAL DEFEASANCE AND COVENANT DEFEASANCE	 	 	19	 
	 

	 	Section 8.01.
	 	Option to Effect Legal Defeasance or Covenant Defeasance
	 	 	19	 
	 

	 	Section 8.02.
	 	Legal Defeasance and Discharge
	 	 	20	 
	 

	 	Section 8.03.
	 	Covenant Defeasance
	 	 	20	 
	 

	 	Section 8.04.
	 	Conditions to Legal or Covenant Defeasance
	 	 	21	 
	 

	 	Section 8.05.
	 	Deposited Money and U.S. Government
Obligations to be Held in Trust; Other Miscellaneous Provisions
	 	 	22	 
	 

	 	Section 8.06.
	 	Repayment to Issuers
	 	 	22	 
	 

	 	Section 8.07.
	 	Reinstatement
	 	 	23	 

-i-

 

	 	 	 	 	 	 	 	 	 
	ARTICLE IX SUBSIDIARY GUARANTEES	 	 	23	 
	 

	 	Section 9.01.
	 	Subsidiary Guarantees
	 	 	23	 
	 

	 	Section 9.02.
	 	Limitation on Liability
	 	 	25	 
	 

	 	Section 9.03.
	 	Successors and Assigns
	 	 	25	 
	 

	 	Section 9.04.
	 	No Waiver
	 	 	25	 
	 

	 	Section 9.05.
	 	Modification
	 	 	25	 
	 

	 	Section 9.06.
	 	Execution of Supplemental Indenture for Future Subsidiary Guarantors
	 	 	26	 
	 

	 	Section 9.07.
	 	Release of Guarantee
	 	 	26	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE X MISCELLANEOUS	 	 	26	 
	 

	 	Section 10.01.
	 	Additional Amendments
	 	 	26	 
	 

	 	Section 10.02.
	 	Integral Part
	 	 	26	 
	 

	 	Section 10.03.
	 	Adoption, Ratification and Confirmation
	 	 	27	 
	 

	 	Section 10.04.
	 	Counterparts
	 	 	27	 
	 

	 	Section 10.05.
	 	Governing Law
	 	 	27	 

	 	 	 
	EXHIBIT A:

	 	Form of Note
	EXHIBIT B:

	 	Form of Supplemental Indenture
	EXHIBIT C:

	 	Certificate to be Delivered Upon Exchange or Registration of Transfer of Securities Pursuant to Rule 144A or Rule 501
	EXHIBIT D:

	 	Transferee Letter of Representations
	EXHIBIT E:

	 	Certificate to be Delivered Upon Exchange or Registration of Transfer of Securities Pursuant to Regulation S

-ii-

 

          THIRTEENTH SUPPLEMENTAL INDENTURE dated as of April 23, 2008 (this “Supplemental Indenture”)
among PLAINS ALL AMERICAN PIPELINE, L.P., a Delaware limited partnership (the “Partnership”), PAA
FINANCE CORP., a wholly owned subsidiary of the Partnership and a Delaware corporation (“PAA
Finance” and, together with the Partnership, the “Issuers”), and the subsidiary guarantors
signatory hereto (the “Subsidiary Guarantors”), and U.S. BANK NATIONAL ASSOCIATION, as trustee (the
“Trustee”).

W I T N E S S E T H:

          WHEREAS, the Issuers have heretofore entered into an Indenture, dated as of September 25, 2002
(the “Original Indenture”), with U.S. Bank National Association (successor to Wachovia Bank,
National Association), as trustee;

          WHEREAS, the Original Indenture, as supplemented by this Supplemental Indenture, is herein
called the “Indenture”;

          WHEREAS, under the Original Indenture, a new series of Debt Securities may at any time be
established by the Boards of Directors of the Managing General Partner and PAA Finance in
accordance with the provisions of the Original Indenture and the form and terms of such series may
be established by a supplemental Indenture executed by the Issuers and the Trustee;

          WHEREAS, also under the Original Indenture, guarantors with respect to a series of Debt
Securities may be added as parties to the Indenture by a supplemental indenture executed by
themselves, the Issuers and the Trustee;

          WHEREAS, the Issuers propose to create under the Indenture a new series of Debt Securities,
such series to be guaranteed by the Subsidiary Guarantors;

          WHEREAS, additional Debt Securities of other series hereafter established, except as may be
limited in the Original Indenture as at the time supplemented and modified, may be issued from time
to time pursuant to the Original Indenture as at the time supplemented and modified; and

          WHEREAS, all conditions necessary to authorize the execution and delivery of this Supplemental
Indenture and to make it a valid and binding obligation of the Issuers and the Subsidiary
Guarantors have been done or performed.

          NOW, THEREFORE, in consideration of the agreements and obligations set forth herein and for
other good and valuable consideration, the sufficiency of which is hereby acknowledged, the parties
hereto hereby agree as follows:

ARTICLE I

          Section 1.01. Establishment. (a) There is hereby established a new series of Debt Securities to be issued under the
Indenture, to be designated as the Issuers’ 6.50% Senior

 

 

Notes due 2018 (the “Notes”). As provided
in Article III hereof, the Notes shall be issued as either Series A Notes or Series B Notes, and
any Notes may have such additional designation.

          (b) There are to be authenticated and delivered $600,000,000 principal amount of Series A
Notes on the Issue Date, and from time to time thereafter there may be authenticated and delivered
an unlimited principal amount of Additional Notes. Further, from time to time after the Issue
Date, Series B Notes may be authenticated and delivered in a principal amount equal to the
principal amount of the Series A Notes exchanged therefor pursuant to an Exchange Offer.

          (c) The Notes shall be issued initially in the form of one or more Global Securities in
substantially the form set out in Exhibit A hereto. The Depositary with respect to the Notes shall
be The Depository Trust Company.

          (d) Each Note shall be dated the date of authentication thereof and shall bear interest from
the date of original issuance thereof or from the most recent date to which interest has been paid
or duly provided for.

          (e) If and to the extent that the provisions of the Original Indenture are duplicative of, or
in contradiction with, the provisions of this Supplemental Indenture, the provisions of this
Supplemental Indenture shall govern.

ARTICLE II

DEFINITIONS AND INCORPORATION BY REFERENCE

          Section 2.01. Definitions. All capitalized terms used herein and not otherwise defined below shall have the meanings
ascribed thereto in the Original Indenture. The following are additional definitions used in this
Supplemental Indenture:

          “Additional Interest” means all additional interest owing on the Notes pursuant to a
registration default under an Exchange and Registration Rights Agreement.

          “Affiliate” of any specified Person means any other Person directly or indirectly controlling
or controlled by or under direct or indirect common control with such specified Person. For
purposes of this definition, “control,” as used with respect to any Person, shall mean the
possession directly or indirectly of the power to direct or cause the direction of the management
or policies of such Person, whether through the ownership of voting securities, by agreement or
otherwise; and the terms “controlling,” “controlled by” and “under common control with” shall have
correlative meanings.

          “Attributable Indebtedness,” when used with respect to any Sale-leaseback Transaction, means,
as at the time of determination, the present value (discounted at the rate set forth or implicit in
the terms of the lease included in such transaction) of the total obligations of the lessee for
rental payments (other than amounts required to be paid on account of property taxes, maintenance,
repairs, insurance, assessments, utilities, operating and labor costs and other items that do not
constitute payments for property rights) during the remaining term of the lease included in such
Sale-leaseback Transaction (including any period for which such lease has been

2

 

extended). In the
case of any lease that is terminable by the lessee upon the payment of a penalty or other
termination payment, such amount shall be the lesser of the amount determined assuming termination
upon the first date such lease may be terminated (in which case the amount shall also include the
amount of the penalty or termination payment, but no rent shall be considered as required to be
paid under such lease subsequent to the first date upon which it may be so terminated) or the
amount determined assuming no such termination.

          “Capital Interests” means any and all shares, interests, participations, rights or other
equivalents (however designated) of capital stock, including, without limitation, with respect to
partnerships, partnership interests (whether general or limited) and any other interest or
participation that confers on a Person the right to receive a share of the profits and losses of,
or distributions of assets of, such Person.

          “Consolidated Net Tangible Assets” means, at any date of determination, the total amount of
assets after deducting therefrom: (1) all current liabilities (excluding (a) any current
liabilities that by their terms are extendible or renewable at the option of the obligor thereon to
a time more than 12 months after the time as of which the amount thereof is being computed; and (b)
current maturities of long-term debt); and (2) the amount, net of any applicable reserves, of all
goodwill, trade names, trademarks, patents and other like intangible assets, all as set forth on
the consolidated balance sheet of the Partnership for its most recently completed fiscal quarter,
prepared in accordance with GAAP.

          “Debt” means any obligation created or assumed by any Person for the repayment of money
borrowed, any purchase money obligation created or assumed by such Person, and any guarantee of the
foregoing.

          “Exchange and Registration Rights Agreement” means (a) the Registration Rights Agreement among
the Partnership, PAA Finance, the Subsidiary Guarantors and the Initial Purchasers dated the Issue
Date relating to the Series A Notes issued on such date and (b) any similar agreement that the
Issuers may enter into in relation to any other Series A Notes, in each case as such agreement may
be amended or modified from time to time.

          “Exchange Offer” means the offer by the Issuers to the Holders of all outstanding Transfer
Restricted Securities to exchange all such outstanding Transfer Restricted Securities held by such
Holders for Series B Notes, in an aggregate principal amount equal to the aggregate principal
amount of the Transfer Restricted Securities tendered in such exchange offer by such Holders.

          “Funded Debt” means all Debt maturing one year or more from the date of the creation thereof,
all Debt directly or indirectly renewable or extendible, at the option of the debtor, by its terms
or by the terms of any instrument or agreement relating thereto, to a date one year or more from
the date of the creation thereof, and all Debt under a revolving credit or similar agreement
obligating the lender or lenders to extend credit over a period of one year or more.

          “Guarantee” means a guarantee of the Notes given by a Subsidiary Guarantor pursuant to the
Indenture, including all obligations under Article IX hereof.

3

 

          “General Partner” means PAA GP LLC, a Delaware limited liability company, and its successors
and permitted assigns as general partner of the Partnership.

          “guarantee” means a guarantee (other than by endorsement of negotiable instruments for
collection in the ordinary course of business), direct or indirect, in any manner (including,
without limitation, by way of a pledge of assets, or through letters of credit or reimbursement,
“claw-back,” “make-well,” or “keep-well” agreements in respect thereof), of all or any part of the
payment of any Debt. The term “guarantee” used as a verb has a corresponding meaning.

          “Initial
Purchasers” means Banc of America Securities LLC, J.P. Morgan
Securities Inc., BNP Paribas Securities Corp. and the other initial purchasers
party to the initial Exchange and Registration Rights Agreement.

          “Issue Date” means, with respect to the Notes, the date on which the Notes are initially
issued.

          “Managing General Partner” means Plains All American GP LLC, a Delaware limited liability
company, and its successors and permitted assigns as the general partner of the sole member of the
General Partner or as the business entity with the ultimate authority to manage the business and
operations of the Partnership.

          “Notes” has the meaning assigned to it in Section 1.01(a) hereof, and includes both the Series
A Notes and the Series B Notes.

          “Obligations” means any principal, interest, liquidated damages, penalties, fees,
indemnifications, reimbursement obligations, damages and other liabilities payable under the
documentation governing any Debt.

          “Pari Passu Debt” means any Funded Debt of either of the Issuers, whether outstanding on the
Issue Date of thereafter created, incurred or assumed, unless, in the case of any particular Funded
Debt, the instrument creating or evidencing the same or pursuant to which the same is outstanding
expressly provides that such Funded Debt shall be subordinated in right of payment to the Notes.

          “Partnership Agreement” means the Third Amended and Restated Agreement of Limited Partnership
of Plains All American Pipeline, L.P., amended and restated effective as of June 27, 2001, as
amended by Amendment No. 1 thereto dated as of April 15, 2004, Amendment No. 2 thereto dated
November 15, 2006, Amendment No. 3 thereto dated
August 16, 2007, Amendment No. 4 thereto dated April 14, 2008 and as such may be otherwise amended, modified or
supplemented from time to time.

          “Permitted Liens” means:

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

     (2) any statutory or governmental Lien or Lien arising by operation of law, or any
mechanics’, repairmen’s, materialmen’s, suppliers’, carriers’, landlords’,

4

 

warehousemen’s or
similar Lien incurred in the ordinary course of business which is not yet due or which is
being contested in good faith by appropriate proceedings and any undetermined Lien which is
incidental to construction, development, improvement or repair;

     (3) the right reserved to, or vested in, any municipality or public authority by the
terms of any right, power, franchise, grant, license, permit or by any provision of law, to
purchase or recapture or to designate a purchaser of, any property;

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

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

     (6) any Lien upon, or deposits of, any assets in favor of any surety company or clerk
of court for the purpose of obtaining indemnity or stay of judicial proceedings;

     (7) any Lien upon property or assets acquired or sold by an Issuer or any Restricted
Subsidiary resulting from the exercise of any rights arising out of defaults on receivables;

     (8) any Lien incurred in the ordinary course of business in connection with worker’s
compensation, unemployment insurance, temporary disability, social security, retiree health
or similar laws or regulations or to secure obligations imposed by statute or governmental
regulations;

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

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

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

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

5

 

all accrued
interest thereon and reasonable fees and expenses and premium, if any, incurred by the
Issuers or any Restricted Subsidiary in connection therewith;

     (13) Liens in favor of any Person to secure obligations under the provisions of any
letters of credit, bank guarantees, bonds or surety obligations required or requested by any
governmental authority in connection with any contract or statute;

     (14) any Lien upon or deposits of any assets to secure performance of bids, trade
contracts, leases or statutory obligations;

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

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

     (17) Liens arising under operating agreements, joint venture agreements, partnership
agreements, oil and gas leases, farmout agreements, division orders, contracts for sale,
transportation or exchange of oil and natural gas, unitization and pooling declarations and
agreements, area of mutual interest agreements and other agreements arising in the ordinary
course of the Partnership’s or any Restricted Subsidiary’s business that are customary in
the business of marketing, transportation and terminalling of crude oil and/or marketing of
liquefied petroleum gas; or

     (18) any obligations or duties to any municipality or public authority with respect to
any lease, easement, right-of-way, license, franchise, privilege, permit or grant.

          “Principal Property” means, whether owned or leased on the Issue Date or thereafter acquired:
(1) any of the pipeline assets of the Partnership or the pipeline assets of any Subsidiary of the
Partnership, including any related facilities employed in the transportation, distribution,
terminalling, gathering, treating, processing, marketing or storage of crude oil or refined
petroleum products, natural gas, natural gas liquids, fuel additives or petrochemicals, and (2) any
processing or manufacturing plant or terminal owned or leased by the Partnership or any Subsidiary
of the Partnership; except, in the case of either clause (1) or (2), (a) any such assets consisting
of inventories, furniture, office fixtures and equipment, including data processing equipment,
vehicles and equipment used on, or useful with, vehicles, and (b) any such assets, plant or
terminal which, in the good faith opinion of the Board of Directors, is not material in

6

 

relation to
the activities of the Partnership or the activities of the Partnership and its Subsidiaries, taken
as a whole.

          “Restricted Subsidiary” means any Subsidiary of the Partnership owning or leasing, directly or
indirectly through ownership in another Subsidiary, and Principal Property.

          “Sale-leaseback Transaction” means the sale or transfer by an Issuer or any Subsidiary of the
Partnership of any Principal Property to a Person (other than an Issuer or a Subsidiary of the
Partnership) and the taking back by an Issuer or any Subsidiary of the Partnership, as the case may
be, of a lease of such Principal Property.

          “Securities” shall have the meaning assigned to such term in the Exchange and Registration
Rights Agreement relating thereto.

          “Series A Notes” means the Issuers’ 6.50% Series A Senior Notes due 2018 to be issued pursuant
to this Supplemental Indenture.

          “Series B Notes” means the Issuers’ 6.50% Series B Notes due 2018 to be issued pursuant to an
Exchange Offer.

          “Subsidiary” means, with respect to any Person: (1) any other Person of which more than 50% of
the total voting power of shares or other Capital Interests entitled, without regard to the
occurrence of any contingency, to vote in the election of directors, managers or trustees
(or equivalent persons) thereof is at the time owned or controlled, directly or indirectly, by such
Person or one or more of the other Subsidiaries of such Person or a combination thereof; or (2) in
the case of a partnership, more than 50% of the partners’ Capital Interests, considering all
partners’ Capital Interests as a single class, is at the time owned or controlled, directly or
indirectly, by such Person or one or more of the other Subsidiaries of such Person or a combination
thereof.

          “Subsidiary Guarantors” means each of:

     (1) the Subsidiaries of the Partnership named as the “Subsidiary Guarantors” on the
signature pages of this Supplemental Indenture;

     (2) any other Subsidiary that executes a supplemental Indenture to provide a Guarantee
in accordance with the provisions of the Indenture; and

     (3) their respective successors and assigns.

Notwithstanding
anything in the Indenture to the contrary, PAA Finance, Pacific
Pipeline System LLC, Pacific Terminals LLC, Pacific Energy Management LLC,
Pacific Energy GP, LP, PEG Canada GP LLC, Rangeland Pipeline Company,
Rangeland Marketing Company, Rangeland Northern Pipeline Company,
1366390 Alberta ULC, SLC Pipeline LLC and Andrews Partners, LLC shall not be Subsidiary Guarantors.

          “Transfer Restricted Securities” means any Notes outstanding prior to the Resale Restriction
Termination Date with respect to such Notes and which must bear the legend required under Section
3.04 hereof.

7

 

          Section 2.02.
Other Definitions.

	 	 	 	 	 
	 	 	Defined in
	                      Term	 	Section  
	“Additional Notes”

	 	 	3.02	 
	“Covenant Defeasance”

	 	 	8.03	 
	“Distribution Compliance Period”

	 	 	3.03	(c)
	“Event of Default”

	 	 	7.01	 
	“IAI Global Note”

	 	 	3.01	 
	“IAIs”

	 	 	3.01	 
	“Legal Defeasance”

	 	 	8.02	 
	“Note Obligations”

	 	 	9.01	 
	“Payment Default

	 	 	7.01	 
	“QIBs”

	 	 	3.01	 
	“Regulation S”

	 	 	3.01	 
	“Regulation S Global Note”

	 	 	3.01	 
	“Required Filing Dates”

	 	 	5.04	 
	“Resale Restriction Termination Date”

	 	 	3.04	 
	“Rule 144A”

	 	 	3.01	 
	“Rule 144A Global Note”

	 	 	3.01	 
	“Successor Company”

	 	 	6.01	 
	“U.S. Persons”

	 	 	3.01	 

ARTICLE III

THE NOTES

          Section 3.01. Form. The Notes shall be issued initially in the form of one or more Global Securities as Series A
Notes, with Series A Notes initially resold in reliance upon Rule 144A and Regulation S being
represented by separate Global Securities, which are referred to herein as the “Rule 144A Global
Note” and the “Regulation S Global Note,” respectively. The Series A Notes and Trustee’s
certificate of authentication shall be substantially in the form of Exhibit A hereto, the terms of
which are incorporated in and made a part of this Supplemental Indenture, and the Issuers and the
Trustee, by their execution and delivery of this Supplemental Indenture, expressly agree to such
terms and provisions and to be bound thereby. The Series A Notes constituting Transfer Restricted
Securities will be resold initially only to (a) Qualified Institutional Buyers (as such term is
defined in Section 144A of the Securities Act) (“QIBs”) in reliance on Rule 144A of the Securities
Act (“Rule 144A”) and (b) Persons other than U.S. Persons (as defined under Regulation S under the
Securities Act (“Regulation S”)) (“U.S. Persons”) in reliance on Regulation S. Thereafter, the
Series A Notes may be transferred to, among others, QIBs, purchasers in reliance upon Regulation S
and institutional “accredited investors” (as defined in subparagraph (a)(1), (2), (3) or (7) of
Rule 501 of the Securities Act (“IAIs”)) in accordance with the procedures set forth in Rule 501 of
the Securities Act, provided that any Series A Notes constituting Transfer Restricted Securities
that are transferred to IAIs who are not QIBs shall be issued only in definitive form or in the
form of interests in a separate Global Security (the “IAI Global Note”). Pursuant to the terms of
an Exchange and Registration

8

 

Rights Agreement, upon consummation of the Exchange Offer contemplated
thereby, the Series A Notes constituting Transfer Restricted Securities will be exchanged by the
Holders for Series B Notes to be issued by the Issuers in accordance with Section 3.03 hereof. The
Series B Notes shall be issued initially in the form of one or more Global Securities, and the
Series B Notes and the Trustee’s certificate of authentication shall be substantially in the form
of Exhibit A hereto.

          Section 3.02. Issuance of Additional Notes. The Issuers may, from time to time, issue an unlimited amount of additional Series A Notes
(“Additional Notes”) under the Indenture, which shall be issued in the same form as the Series A
Notes issued on the Issue Date and which shall have identical terms as the Series A Notes issued on
the Issue Date other than with respect to the issue date, issue price and date of first payment of
interest. The Series A Notes issued on the Issue Date shall be limited in aggregate principal
amount to $600,000,000. The Series A Notes issued on the Issue Date and any Additional Notes
subsequently issued, together with any Series B Notes issued in exchange therefor pursuant to an
Exchange Offer, shall be treated as a single series for all purposes under the Indenture, including
waivers, amendments, redemptions and offers to purchase. If the Issuers issue additional Series A
Notes prior to the completion of an Exchange Offer, the period of the resale restrictions
applicable to any Series A Notes previously offered and sold in reliance on Rule 144A will be
automatically extended to the last day of the period of any resale restrictions imposed on any such
additional Series A Notes.

          Section 3.03. Transfer of Transfer Restricted Securities.

          (a) When Notes are presented to the Registrar with the request to register the transfer of
such Notes or exchange such Notes for an equal principal amount of Notes of other authorized
denominations, the Registrar shall register the transfer or make the exchange in accordance with
Article II of the Original Indenture. In addition, in the case of Series A Notes that are Transfer
Restricted Securities in definitive form, such request to register the transfer or make the
exchange shall be accompanied by the following additional information and documents, as applicable,
upon which the Registrar may conclusively rely:

          (1) if such Transfer Restricted Securities are being delivered to the Registrar by a
Holder for registration in the name of such Holder, without transfer, a certification from
such Holder to that effect in substantially the form of Exhibit C hereto; or

          (2) if such Transfer Restricted Securities are being transferred (i) to a QIB in
accordance with Rule 144A under the Securities Act or (ii) pursuant to an exemption from
registration in accordance with Rule 144 under the Securities Act (and based upon an opinion
of counsel if the Issuers or the Trustee so requests) or (iii) pursuant to an effective
registration statement under the Securities Act, a certification to that effect from such
Holder in substantially the form of Exhibit C hereto; or

          (3) if such Transfer Restricted Securities are being transferred to an IAI within the
meaning of Rule 501(a)(1), (2), (3) or (7) under the Securities Act pursuant to a private
placement exemption from the registration requirements of the Securities Act (and based upon
an opinion of counsel if the Issuers or the Trustee so

9

 

requests), a certification to that
effect from such Holder in substantially the form of Exhibit C hereto and a certification
from the applicable transferee in substantially the form of Exhibit D hereto; or

          (4) if such Transfer Restricted Securities are being transferred to Persons other than
U.S. Persons in reliance on Regulation S, a certification to that effect from such Holder in
substantially the form of Exhibit E hereto; or

          (5) if such Transfer Restricted Securities are being transferred in reliance on another
exemption from the registration requirements of the Securities Act (and based upon an
opinion of counsel if the Issuers or the Trustee so requests), a certification to that
effect from such Holder in substantially the form of Exhibit C hereto.

          (b) Upon any sale or transfer of a Transfer Restricted Security (including any Transfer
Restricted Security represented by a Global Security) pursuant to Rule 144 under the Securities Act
or an effective registration statement under the Securities Act:

          (1) in the case of any Transfer Restricted Security that is in the form of a definitive
Note, the Registrar shall permit the Holder thereof to exchange such Transfer Restricted
Security for a definitive Note that does not bear the legend set forth in Section 3.04(a)
below and rescind any restriction on the transfer of such Transfer Restricted Security; and

          (2) in the case of any Transfer Restricted Security represented by a Global Security,
such Transfer Restricted Security shall not be required to bear the legend set forth in
Section 3.04(a) below if all other interests in such Global Security have been or are
concurrently being sold or transferred pursuant to Rule 144 under the Securities Act or
pursuant to an effective registration statement under the Securities Act.

Notwithstanding the foregoing, upon consummation of an Exchange Offer, the Issuers shall issue and,
upon receipt of an authentication order in accordance with Section 2.05 of the Original Indenture,
the Trustee shall authenticate Series B Notes in exchange for Series A Notes accepted for exchange
in the Exchange Offer, which Series B Notes shall not bear the legend set forth in Section 3.04(a)
below, and the Registrar shall rescind any restriction on the transfer of such Notes, in each case
unless the Holder of such Series A Notes is either (1) is an affiliate of the Issuers within the
meaning of Rule 405 under the Securities Act or an Initial Purchaser holding Series A Notes
acquired by it and having the status of an unsold allotment in the initial offering and sale of
Series A Notes pursuant to the Purchase Agreement, dated as of April 18, 2008, between the Issuers,
the other parties referred to as “Plains Parties” therein and the Initial Purchasers, (2) does not
acquire the Series B Notes in the ordinary course of such Holder’s business or (3) has an
arrangement or understanding with any Person to participate in the Exchange Offer for the purpose
of distributing such Series B Notes or is engaged in, and intends to engage in, any such
distribution. The Issuers shall identify to the Trustee such Holders of the Notes in a written
certification signed by an officer of each Issuer and, absent certification from the Issuers to
such effect, the Trustee shall assume that there are no such Holders.

10

 

          (c) Until the 40th day after the later of the commencement of the offering of the Series A
Notes and the Issue Date thereof (such period, the “Distribution Compliance Period”), a beneficial
interest in a Regulation S Global Note may be transferred to a Person who takes delivery in the
form of an interest in a Rule 144A Global Note or an IAI Global Note only if the transferor first
delivers to the Trustee a written certificate (in the form provided in Exhibit C hereto) to the
effect that such transfer is being made to a Person who the transferor reasonably believes is
purchasing for its own account or accounts as to which it exercises sole investment discretion and
that such Person is a QIB acquiring such Series A Notes in a transaction meeting the requirements
of Rule 144A or an IAI acquiring such Series A Notes pursuant to a private placement exemption
under the Securities Act, in each case in accordance with any applicable securities laws of any
state of the United States or any other jurisdiction; provided that, in the case of a transfer to a
Person who takes delivery in the form of an interest in an IAI Global Note, such Person shall
deliver to the Trustee a written certificate in the form provided in Exhibit D hereto. After the
expiration of the Distribution Compliance Period, such certification requirements shall not apply
to such transfers of beneficial interests in the Regulation S Global Notes.

          (d) Beneficial interests in a Rule 144A Global Note or an IAI Global Note may be transferred
to a Person who takes delivery in the form of an interest in a Regulation S Global Note, whether
before or after the expiration of the Distribution Compliance Period, only if the transferor first
delivers to the Trustee a written certificate (in the form provided in Exhibit C or E hereto, as
applicable) to the effect that such transfer is being made in accordance with Rule 904 of
Regulation S or Rule 144 (if available).

          Section 3.04. Restrictive Legends.

          (a) Except as provided in Section 3.03 hereof, prior to the Resale Restriction Termination
Date, each security certificate evidencing the Notes shall bear a legend in substantially the
following form:

          THE ISSUANCE AND SALE OF THIS SECURITY (AND ANY GUARANTEE HEREOF) HAVE NOT BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY STATE SECURITIES LAWS.
NEITHER THIS SECURITY (NOR ANY GUARANTEE HEREOF) NOR ANY INTEREST OR PARTICIPATION HEREIN OR
THEREIN MAY BE OFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF
IN THE ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO,
THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT OR ANY APPLICABLE STATE SECURITIES LAWS. THE
HOLDER HEREOF, BY ITS ACCEPTANCE OF THIS SECURITY, AGREES FOR THE BENEFIT OF THE ISSUERS THAT THIS
SECURITY MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED PRIOR TO THE EXPIRATION OF THE
HOLDING PERIOD APPLICABLE TO SALES OF THIS SECURITY BY NON-AFFILIATES OF THE ISSUERS
UNDER RULE 144(d) UNDER THE SECURITIES ACT (OR, IN THE CASE OF A TRANSFER PURSUANT TO
REGULATION S, THE DISTRIBUTION COMPLIANCE PERIOD DEFINED THEREIN) WHICH IS APPLICABLE TO THIS
SECURITY (THE

11

 

“RESALE RESTRICTION TERMINATION DATE”) OTHER THAN (1) TO THE ISSUERS OR THEIR
RESPECTIVE SUBSIDIARIES, (2) SO LONG AS THIS SECURITY IS ELIGIBLE FOR RESALE PURSUANT TO RULE 144A
UNDER THE SECURITIES ACT (“RULE 144A”), TO A PERSON WHOM THE SELLER REASONABLY BELIEVES IS A
“QUALIFIED INSTITUTIONAL BUYER” WITHIN THE MEANING OF RULE 144A PURCHASING FOR ITS OWN ACCOUNT OR
FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER, IN EACH CASE TO WHOM NOTICE IS GIVEN THAT THE
RESALE, PLEDGE OR OTHER TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, (3) INSIDE THE UNITED
STATES TO AN INSTITUTIONAL “ACCREDITED INVESTOR” (AS DEFINED IN RULE 501(a)(1), (2), (3) OR (7)
UNDER THE SECURITIES ACT), (4) TO A NON-“U.S. PERSON” IN AN “OFFSHORE TRANSACTION” (AS SUCH TERMS
ARE DEFINED IN REGULATION S UNDER THE SECURITIES ACT) IN ACCORDANCE WITH REGULATION S UNDER THE
SECURITIES ACT, (5) PURSUANT TO ANY OTHER AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF
THE SECURITIES ACT, INCLUDING THE EXEMPTION PROVIDED BY RULE 144 UNDER THE SECURITIES ACT, IF
AVAILABLE, OR (6) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT, SUBJECT
IN EACH OF THE FOREGOING CASES TO ANY REQUIREMENT OF LAW THAT THE DISPOSITION OF ITS PROPERTY OR
THE PROPERTY OF SUCH INVESTOR ACCOUNT OR ACCOUNTS BE AT ALL TIMES WITHIN ITS OR THEIR CONTROL, AND
SUBJECT TO THE RIGHT OF THE ISSUERS OR THE TRUSTEE FOR THE SECURITIES PRIOR TO ANY SUCH SALE,
PLEDGE OR OTHER TRANSFER TO REQUIRE THE DELIVERY OF AN OPINION OF COUNSEL, CERTIFICATIONS AND/OR
OTHER INFORMATION SATISFACTORY TO EACH OF THEM. THIS LEGEND WILL BE REMOVED UPON REQUEST OF THE
HOLDER ON OR AFTER THE RESALE RESTRICTION TERMINATION DATE.

          (b) Each security certificate evidencing the Global Securities shall bear a legend in
substantially the following form:

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

12

 

ARTICLE IV

REDEMPTION AND PREPAYMENT

          Section 4.01. Optional Redemption.

          (a) At their option at any time prior to maturity, the Issuers may choose to redeem all or any
portion of the Notes, at once or from time to time.

          (b) To redeem the Notes, the Issuers must pay a redemption price in an amount determined in
accordance with the provisions of paragraph number 5 of the form of Note in Exhibit A hereto, plus
accrued and unpaid interest, if any, including Additional Interest, if any, to the redemption date
(subject to the right of Holders on the relevant record date to receive interest due on the
relevant interest payment date).

          (c) Any redemption pursuant to this Section 4.01 shall otherwise be made pursuant to the
provisions of Sections 3.01 through 3.03 of the Original Indenture. The actual redemption price
shall be set forth in an Officers’ Certificate delivered to the Trustee no later than two Business
Days prior to each redemption date.

ARTICLE V

COVENANTS

          Section 5.01. Compliance Certificate. (a) In lieu of the Officers’ Certificate required by Section 4.05 of the Original Indenture,
the Issuers and Subsidiary Guarantors shall deliver to the Trustee, within 90 days after the end of
each fiscal year, an Officers’ Certificate stating that a review of the activities of the
Partnership and its Subsidiaries during the preceding fiscal year has been made under the
supervision of the signing Officers (one of whom shall be the principal executive, financial or
accounting officer of each Issuer and Subsidiary Guarantor) with a view to determining whether the
Issuers have kept, observed, performed and fulfilled their obligations under the Indenture, and
further stating, as to each such Officer signing such certificate, that to the best of his or her
knowledge the Issuers have kept, observed, performed and fulfilled each and every covenant
contained in the Indenture and are not in default in the performance or observance of any of the
terms, provisions and conditions of the Indenture (or, if a Default or Event of Default shall have
occurred, describing all such Defaults or Events of Default of which he or she may have knowledge
and what action the Issuers are taking or propose to take with respect thereto) and that to the
best of his or her knowledge no event has occurred and remains in existence by reason of which
payments on account of the principal of or interest, if any, on the Notes is prohibited or if such
event has occurred, a description of the event and what action the Issuers are taking or propose to
take with respect thereto.

          (b) The Issuers shall, so long as any of the Notes are outstanding, deliver to the Trustee,
forthwith and in any event within five days upon any Officer becoming aware of any Default or Event
of Default or an event which, with notice or the lapse of time or both, would
constitute an Event of Default, an Officers’ Certificate specifying such Default or Event of
Default and what action the Issuers are taking or propose to take with respect thereto.

13

 

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

          (a) Permitted Liens;

          (b) any Lien upon any property or assets created at the time of acquisition of such property
or assets by an Issuer or any Restricted Subsidiary or within one year after such time to secure
all or a portion of the purchase price for such property or assets or Debt incurred to finance such
purchase price, whether such Debt was incurred prior to, at the time of or within one year after
the date of such acquisition;

          (c) any Lien upon any property or assets to secure all or part of the cost of construction,
development, repair or improvements thereon or to secure Debt incurred prior to, at the time of, or
within one year after completion of such construction, development, repair or improvements or the
commencement of full operations thereof (whichever is later), to provide funds for any such
purpose;

          (d) any Lien upon any property or assets existing thereon at the time of the acquisition
thereof by an Issuer or any Restricted Subsidiary (whether or not the obligations secured thereby
are assumed by an Issuer or any Restricted Subsidiary); provided, however, that such Lien only
encumbers the property or assets so acquired;

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

          (f) any Lien upon any property or assets of an Issuer or any Restricted Subsidiary in
existence on December 10, 2003 or provided for pursuant to agreements existing on December 10,
2003;

          (g) Liens imposed by law or order as a result of any proceeding before any court or regulatory
body that is being contested in good faith, and Liens which secure a judgment or other
court-ordered award or settlement as to which an Issuer or the applicable Restricted Subsidiary, as
the case may be, has not exhausted its appellate rights;

          (h) any extension, renewal, refinancing, refunding or replacement (or successive extensions,
renewals, refinancing, refunding or replacements) of Liens, in whole or in part, referred to in
clauses (a) through (g), inclusive, of this Section 5.02; provided, however, that any such
extension, renewal, refinancing, refunding or replacement Lien shall be limited to the property or
assets covered by the Lien extended, renewed, refinanced, refunded or replaced and that the
obligations secured by any such extension, renewal, refinancing, refunding or

14

 

replacement Lien
shall be in an amount not greater than the amount of the obligations secured by the Lien extended,
renewed, refinanced, refunded or replaced and any expenses of the Issuers and the Restricted
Subsidiaries (including any premium) incurred in connection with such extension, renewal,
refinancing, refunding or replacement; or

          (i) any Lien resulting from the deposit of moneys or evidence of indebtedness in trust for the
purpose of defeasing Debt of an Issuer or any Restricted Subsidiary.

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

          Section 5.03. Restriction of Sale-Leaseback Transactions. The Issuers will not, and will not permit any Subsidiary of the Partnership to, engage in a
Sale-Leaseback Transaction, unless:

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

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

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

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

          Notwithstanding the foregoing provisions of this Section 5.03, the Issuers may, and may permit
any Subsidiary of the Partnership to, effect any Sale-Leaseback Transaction that is not excepted by
clauses (a) through (d), inclusive, of this Section 5.03, provided that the Attributable
Indebtedness from such Sale-leaseback Transaction, together with the aggregate

15

 

principal amount of
then outstanding Debt (other than Debt Securities) secured by Liens upon Principal Property not
excepted by clauses (a) through (i), inclusive, of Section 5.02, does not exceed 10% of
Consolidated Net Tangible Assets.

          Section 5.04. SEC Reports; Financial Statements.

          (a) Whether or not the Partnership is then subject to the reporting requirements of Section 13
or 15(d) of the Exchange Act, the Partnership shall electronically file with the Commission, so
long as the Notes are Outstanding, the annual, quarterly and other periodic reports that the
Partnership is required to file (or would otherwise be required to file) with the Commission
pursuant to Sections 13 and 15(d) of the Exchange Act, and such documents shall be filed with the
Commission on or prior to the respective dates (the “Required Filing Dates”) by which the
Partnership is required to file (or would otherwise be required to file) such documents, unless, in
each case, such filings are not then permitted by the Commission.

          (b) If such filings are not then permitted by the Commission, or such filings are not
generally available on the Internet free of charge, the Issuers shall provide the Trustee with, and
the Trustee will mail to any Holder of Notes requesting in writing to the Trustee copies of, such
annual, quarterly and other periodic reports specified in Sections 13 and 15(d) of the Exchange Act
within 15 days after the respective Required Filing Dates.

          (c) In addition, the Issuers shall furnish to the Holders of Notes and to prospective
investors, upon the requests of Holders of Notes, any information required to be delivered pursuant
to Rule 144A(d)(4) under the Securities Act, so long as the Notes are not freely transferable under
the Securities Act.

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

          (e) Delivery of such reports, information and documents to the Trustee is for informational
purposes only and the Trustee’s receipt of such shall not constitute constructive notice of any
information contained therein or determinable from information contained therein, including the
Partnership’s compliance with any of its covenants hereunder (as to which the Trustee is entitled
to rely exclusively on Officers’ Certificates).

          Section 5.05. Additional Subsidiary Guarantees. If any Subsidiary (or its successor) of the Partnership that is not then a Subsidiary Guarantor
guarantees Debt of either of the Issuers or any other Subsidiary of the Partnership, in either case
after the Issue Date, then such Subsidiary (or successor) shall execute and deliver a supplemental
Indenture providing for the guarantee of the payment of the Notes pursuant to Article IX hereof.

16

 

ARTICLE VI

SUCCESSORS

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

          Section 6.01. Consolidation and Mergers of the Issuers. Neither Issuer shall consolidate or amalgamate with or merge with or into any Person, or sell,
convey, transfer, lease or otherwise dispose of all or substantially all its assets to any Person,
whether in a single transaction or a series of related transactions, except (1) in accordance with
the provisions of the Partnership Agreement, and (2) unless: (a) either (i) such Issuer shall be
the surviving Person in the case of a merger or (ii) the resulting, surviving or transferee Person
if other than such Issuer (the “Successor Company”) shall be a partnership, limited liability
company or corporation organized and existing under the laws of the United States, any state
thereof or the District of Columbia (provided that PAA Finance may not merge, amalgamate or
consolidate with or into another Person other than a corporation satisfying such requirement for so
long as the Partnership is not a corporation) and the Successor Company shall expressly assume, by
an indenture supplemental hereto, executed and delivered to the Trustee, in form reasonably
satisfactory to the Trustee, the due and punctual payment of the principal of, premium, if any, and
interest (including Additional Interest, if any) on all of the Notes, and the due and punctual
performance or observance of all the other obligations under the Indenture to be performed or
observed by such Issuer; (b) immediately after giving effect to such transaction or series of
transactions, no Default or Event of Default would occur or be continuing; (c) if such Issuer is
not the continuing Person, then each Subsidiary Guarantor, unless it has become the Successor
Company, shall confirm that its Guarantee shall continue to apply to the obligations under the
Notes and the Indenture; and (d) such Issuer shall have delivered to the Trustee an Officers’
Certificate and an Opinion of Counsel, each stating that such consolidation, amalgamation, merger,
sale, conveyance, transfer, lease or other disposition and such supplemental Indenture (if any)
comply with this Section 6.01 and any other applicable provisions of the Indenture.

          Section 6.02. Rights and Duties of Successor. In case of any consolidation, amalgamation or merger where an Issuer is not the continuing
Person, or disposition of all or substantially all of the assets of an Issuer in accordance with
Section 6.01, the Successor Company shall succeed to and be substituted for such Issuer with the
same effect as if it had been named herein as the respective party to the Indenture, and the
predecessor entity shall be released from all liabilities and obligations under the Indenture and
the Notes, except that no such release will occur in the case of a lease of all or substantially
all of an Issuer’s assets. In case of any such consolidation, amalgamation, merger, sale,
conveyance,
transfer, lease or other disposition, such changes in phraseology and form (but not in substance)
may be made in the Notes thereafter to be issued as may be appropriate.

          Section 6.03. Supplemental Indenture. Section 9.01 of the Original Indenture is hereby amended, with respect to the Notes, by adding
the words “or the confirmation of a Subsidiary Guarantor’s” immediately after the word “Issuer’s”
in Section 9.01(c).

17

 

ARTICLE VII

DEFAULTS AND REMEDIES

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

          (a) An “Event of Default” occurs if:

     (i) the Issuers default for 60 days in the payment when due of interest on, or
Additional Interest with respect to, the Notes;

     (ii) the Issuers default in the payment when due of principal of or premium, if
any, on the Notes at maturity, upon redemption or otherwise;

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

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

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

18

 

     (vi) an Issuer or any Subsidiary Guarantor pursuant to or within the meaning of
any Bankruptcy Law:

     (A) commences a voluntary case,

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

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

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

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

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

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

     (B) appoints a custodian of an Issuer or any Subsidiary Guarantor or
for all or substantially all of the property of an Issuer or any Subsidiary
Guarantor; or

     (C) orders the liquidation of an Issuer or any Subsidiary Guarantor;

          and the order or decree remains unstayed and in effect for 60 consecutive days.

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

ARTICLE VIII

LEGAL DEFEASANCE AND COVENANT DEFEASANCE

          Section 8.01. Option to Effect Legal Defeasance or Covenant Defeasance. The Issuers may, at the option of the Boards of Directors evidenced by a Board Resolution set
forth in an Officers’ Certificate, at any time, elect to have either Section 8.02 or 8.03 hereof be
applied

19

 

to all outstanding Notes and Guarantees upon compliance with the conditions set forth below
in this Article VIII.

          Section 8.02. Legal Defeasance and Discharge. Upon the Issuers’ exercise under Section 8.01 hereof of the option applicable to this Section
8.02, each of the Issuers and the Subsidiary Guarantors shall, subject to the satisfaction of the
conditions set forth in Section 8.04 hereof, be deemed to have been discharged from its obligations
with respect to all outstanding Notes and Guarantees on the date the conditions set forth below are
satisfied (hereinafter, “Legal Defeasance”). For this purpose, Legal Defeasance means that each of
the Issuers shall be deemed to have paid and discharged the entire Debt represented by the
outstanding Notes, which shall thereafter be deemed to be “Outstanding” only for the purposes of
Section 8.05 hereof and the other Sections of the Indenture referred to in (a) and (b) below, and
to have satisfied all its other obligations under such Notes and the Indenture, and each of the
Subsidiary Guarantors shall be deemed to have discharged its obligations under its Guarantee (and
the Trustee, on demand of and at the expense of the Issuers, shall execute proper instruments
acknowledging the same), except for the following provisions which shall survive until otherwise
terminated or discharged hereunder:

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

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

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

          (d) this Article VIII, and

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

Subject to compliance with this Article VIII, the Issuers may exercise their option under this
Section 8.02 notwithstanding the prior exercise of their option under Section 8.03 hereof.

          Section 8.03. Covenant Defeasance. Upon the Issuers’ exercise under Section 8.01 hereof of the option applicable to this Section
8.03, each of the Issuers shall, subject to the satisfaction of the conditions set forth in Section
8.04 hereof, be released from its obligations under the covenants contained in Sections 5.02, 5.03,
5.04 and 5.05 hereof with respect to the Outstanding Notes on and after the date the conditions set
forth in Section 8.04 are satisfied (hereinafter, “Covenant Defeasance”), and the Notes shall
thereafter be deemed not “Outstanding” for the purposes of any direction, waiver, consent or
declaration or act of Holders (and the consequences of any thereof) in connection with such
covenants, but shall continue to be deemed “Outstanding” for all other purposes hereunder (it being
understood that such Notes shall not be deemed outstanding for accounting purposes). For this
purpose, Covenant Defeasance means that, with respect to the Outstanding Notes, the Issuers may
omit to comply

20

 

with and shall have no liability in respect of any term, condition or limitation set
forth in any such covenant, whether directly or indirectly, by reason of any reference elsewhere
herein to any such covenant or by reason of any reference in any such covenant to any other
provision herein or in any other document and such omission to comply shall not constitute a
Default or an Event of Default under Section 7.01 hereof, but, except as specified above, the
remainder of the Indenture, the Guarantees and such Notes shall be unaffected thereby.

          Section 8.04. Conditions to Legal or Covenant Defeasance. The following shall be the conditions to the application of either Section 8.02 or 8.03 hereof
to the Outstanding Notes:

          In order to exercise either Legal Defeasance or Covenant Defeasance:

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

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

          (c) in the case of an election under Section 8.03 hereof, the Issuers shall have delivered to
the Trustee an Opinion of Counsel confirming that the Holders of the Outstanding Notes shall not
recognize income, gain or loss for federal income tax purposes as a result of such Covenant
Defeasance and shall be subject to federal income tax on the same amounts, in the
same manner and at the same times as would have been the case if such Covenant Defeasance had
not occurred;

          (d) no Default or Event of Default shall have occurred and be continuing either (i) on the
date of such deposit (other than a Default or Event of Default resulting from the incurrence of
Debt all or a portion of the proceeds of which shall be applied to such deposit) or (ii) insofar as
Section 7.01(a)(vi) or 7.01(a)(vii) hereof is concerned, at any time in the period ending on the
91st day after the date of deposit;

          (e) such Legal Defeasance or Covenant Defeasance shall not result in a breach or violation of,
or constitute a default under, any agreement or instrument (other than the

21

 

Notes and the Indenture)
to which the Partnership or any of its Subsidiaries is a party or by which the Partnership or any
of its Subsidiaries is bound;

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

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

          (h) the Issuers shall have delivered to the Trustee an Officers’ Certificate and an Opinion of
Counsel, each stating that all conditions precedent provided for or relating to the Legal
Defeasance or the Covenant Defeasance have been complied with.

          Section 8.05. Deposited Money and U.S. Government Obligations to be Held in Trust; Other
Miscellaneous Provisions. Subject to Section 8.06 hereof, all money and U.S. Government Obligations (including the
proceeds thereof) deposited with the Trustee (or other qualifying trustee, collectively for
purposes of this Section 8.05, the “Trustee”) pursuant to Section 8.04 hereof in respect of the
outstanding Notes shall be held in trust and applied by the Trustee, in accordance with the
provisions of such Notes and the Indenture, to the payment, either directly or through any paying
agent (including an Issuer acting as paying agent) as the Trustee may determine, to the Holders of
such Notes of all sums due and to become due thereon in respect of principal, premium on, if any,
interest and Additional Interest, if any, but such money need not be segregated from other funds
except to the extent required by law.

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

          Anything in this Article VIII to the contrary notwithstanding, the Trustee shall deliver or
pay to the Issuers from time to time upon the written request of the Issuers any money or U.S.
Government Obligations held by it as provided in Section 8.04 hereof which, in the opinion of a
nationally recognized firm of independent public accountants expressed in a written certification
thereof delivered to the Trustee (which may be the opinion delivered under Section 8.04(a) hereof),
are in excess of the amount thereof that would then be required to be deposited to effect an
equivalent Legal Defeasance or Covenant Defeasance.

          Section 8.06. Repayment to Issuers. Any money deposited with the Trustee or any paying agent, or then held by the Issuers, in trust
for the payment of the principal of, premium on, if any, interest or Additional Interest, if any,
on any Note and remaining unclaimed for two years after such principal, premium, if any, interest
or Additional Interest, if any, has become due and payable shall be paid to the Issuers on their
written request or (if then held by

22

 

the Issuers) shall be discharged from such trust; and the
Holder of such Note shall thereafter, as an unsecured creditor, look only to the Issuers for
payment thereof, and all liability of the Trustee or such paying agent with respect to such trust
money, and all liability of the Issuers as trustee thereof, shall thereupon cease;
provided, however, that the Trustee or such paying agent, before being required to
make any such repayment, may at the expense of the Issuers cause to be published once, in the New
York Times and The Wall Street Journal (national edition), notice that such money remains unclaimed
and that, after a date specified therein, which shall not be less than 30 days from the date of
such notification or publication, any unclaimed balance of such money then remaining shall be
repaid to the Issuers.

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

ARTICLE IX

SUBSIDIARY GUARANTEES

          Section 9.01. Subsidiary Guarantees. (a) Each Subsidiary Guarantor hereby jointly and severally unconditionally and irrevocably
guarantees on a senior basis to each Holder and to the Trustee and its successors and assigns (i)
the full and punctual payment of principal, premium, if any, interest, and Additional Interest, if
any, with respect to, the Notes when due, whether at maturity, by acceleration, by redemption or
otherwise, and all other monetary obligations of the Issuers under the Indenture (including
obligations to the Trustee) and the Notes and (ii) the full and punctual performance within
applicable grace periods of all other obligations of the Issuers under the Indenture and the Notes
(all the foregoing being hereinafter collectively called the “Note Obligations”). Each Subsidiary
Guarantor further agrees that the Note Obligations may be extended or renewed, in whole or in part,
without notice or further assent from each such Subsidiary Guarantor, and that each such Subsidiary
Guarantor shall remain bound under this Article IX notwithstanding any extension or renewal of any
Note Obligation.

          (b) Each Subsidiary Guarantor waives presentation to, demand of, payment from and protest to
the Issuers of any of the Note Obligations and also waives notice of protest for nonpayment. Each
Subsidiary Guarantor waives notice of any Default or Event of Default under the Notes or the Note
Obligations. The obligations of each Subsidiary Guarantor hereunder shall not be affected by (i)
the failure of any Holder or the Trustee to assert any claim or demand or to enforce any right or
remedy against the Issuers or any other Person under the

23

 

Indenture, the Notes or any other
agreement or otherwise; (ii) any extension or renewal of any thereof; (iii) any rescission, waiver,
amendment or modification of any of the terms or provisions of the Indenture, the Notes or any
other agreement; (iv) the release of any security held by any Holder or the Trustee for the Note
Obligations or any of them; (v) the failure of any Holder or Trustee to exercise any right or
remedy against any other guarantor of the Note Obligations; or (vi) any change in the ownership of
such Subsidiary Guarantor, except as provided in Section 9.02 hereof.

          (c) Each Subsidiary Guarantor further agrees that its Guarantee herein constitutes a guarantee
of payment, performance and compliance when due (and not a guarantee of collection) and waives any
right to require that any resort be had by any Holder or the Trustee to any security held for
payment of the Note Obligations.

          (d) The obligations of each Subsidiary Guarantor hereunder shall not be subject to any
reduction, limitation, impairment or termination for any reason other than indefeasible payment in
full of the Note Obligations, including any claim of waiver, release, surrender, alteration or
compromise, and shall not be subject to any defense of setoff, counterclaim, recoupment or
termination whatsoever or by reason of the invalidity, illegality or unenforceability of the Note
Obligations or otherwise. Without limiting the generality of the foregoing, the obligations of
each Subsidiary Guarantor herein shall not be discharged or impaired or otherwise affected by the
failure of any Holder or the Trustee to assert any claim or demand or to enforce any remedy under
the Indenture, the Notes or any other agreement, by any waiver or modification of any thereof, by
any default, failure or delay, willful or otherwise, in the performance of the obligations, or by
any other act or thing or omission or delay to do any other act or thing which may or might in any
manner or to any extent vary the risk of any Subsidiary Guarantor or would otherwise operate as a
discharge of any Subsidiary Guarantor as a matter of law or equity.

          (e) Each Subsidiary Guarantor further agrees that its Guarantee herein shall continue to be
effective or be reinstated, as the case may be, if at any time payment, or any part
thereof, of principal, premium, if any, interest or Additional Interest, if any, with respect
to any Note Obligation is rescinded or must otherwise be restored by any Holder or the Trustee upon
the bankruptcy or reorganization of either of the Issuers or otherwise.

          (f) In furtherance of the foregoing and not in limitation of any other right which any Holder
or the Trustee has at law or in equity against any Subsidiary Guarantor by virtue hereof, upon the
failure of the Issuers to pay the principal, premium, if any, interest or Additional Interest, if
any, with respect to any Note Obligation when and as the same shall become due, whether at
maturity, by acceleration, by redemption or otherwise, or to perform or comply with any other Note
Obligation, each Subsidiary Guarantor hereby promises to and shall forthwith pay, or cause to be
paid, in cash, to the Holders or the Trustee an amount equal to the sum of (i) the unpaid principal
amount of such Note Obligations, (ii) accrued and unpaid interest on such Note Obligations (but
only to the extent not prohibited by law) and (iii) all other monetary Note Obligations of the
Issuers to the Holders and the Trustee.

          (g) Each Subsidiary Guarantor agrees that it shall not be entitled to any right of subrogation
in relation to the Holders in respect of any Note Obligations guaranteed hereby

24

 

until payment in
full of all Note Obligations. Each Subsidiary Guarantor further agrees that, as between it, on the
one hand, and the Holders and the Trustee, on the other hand, (i) the maturity of the Note
Obligations guaranteed hereby may be accelerated as provided in Article VII hereof for the purposes
of any Subsidiary Guarantor’s Guarantee herein, notwithstanding any stay, injunction or other
prohibition preventing such acceleration in respect of the Note Obligations guaranteed hereby, and
(ii) in the event of any declaration of acceleration of such obligations as provided in Article VII
hereof, such Note Obligations (whether or not due and payable) shall forthwith become due and
payable by such Subsidiary Guarantor for the purposes of this Section 9.01.

          (h) Each Subsidiary Guarantor also agrees to pay any and all costs and expenses (including
reasonable attorneys’ fees) incurred by the Trustee or any Holder in enforcing any rights under
this Section 9.01.

          Section 9.02. Limitation on Liability. Any term or provision of the Indenture to the contrary notwithstanding, the maximum, aggregate
amount of the Note Obligations guaranteed hereunder by any Subsidiary Guarantor shall not exceed
the maximum amount that, after giving effect to all other contingent and fixed liabilities of such
Subsidiary Guarantor and to any collections from or payments made by or on behalf of any other
Subsidiary Guarantor in respect of its obligations under its Guarantee, can be hereby guaranteed
without rendering the Indenture, as it relates to any Subsidiary Guarantor, voidable under
applicable law relating to fraudulent conveyance or fraudulent transfer.

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

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

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

25

 

     Section 9.06. Execution of Supplemental Indenture for Future Subsidiary Guarantors. Each
Subsidiary which is required to become a Subsidiary Guarantor pursuant to Section 5.05 hereof shall
promptly execute and deliver to the Trustee a supplemental Indenture in substantially the form of
Exhibit B hereto pursuant to which such Subsidiary shall become a Subsidiary Guarantor under this
Article IX and shall guarantee the Note Obligations. Concurrently with the execution and delivery
of such supplemental Indenture, the Issuers shall deliver to the Trustee an Opinion of Counsel to
the effect that such supplemental Indenture has been duly authorized, executed and delivered by
such Subsidiary and that, subject to the application of bankruptcy, insolvency, moratorium,
fraudulent conveyance or transfer and other similar laws relating to creditors’ rights generally
and to the principles of equity, whether considered in a proceeding at law or in equity, the
Guarantee of such Subsidiary Guarantor is a legal, valid and binding obligation of such Subsidiary
Guarantor, enforceable against such Subsidiary Guarantor in accordance with its terms.

     Section 9.07. Release of Guarantee. Provided that no Default shall have occurred and shall
be continuing under the Indenture, the Guarantee of a Subsidiary Guarantor under this Article IX
shall terminate and be of no further force and effect, and such Subsidiary Guarantor shall be
released from the Indenture and all Note Obligations, upon the following events:

     (a) upon any sale or other disposition of all or substantially all of the assets of such
Subsidiary Guarantor (including by way of merger, consolidation or otherwise) to any Person that is
not an Affiliate of either of the Issuers (provided such sale or other disposition is not
prohibited by the Indenture);

     (b) upon any sale or other disposition of all of the Equity Interests of a Subsidiary
Guarantor, to any Person that is not an Affiliate of either of the Issuers; or

     (c) following the release or discharge of all guarantees by such Subsidiary Guarantor of any
Debt of the Issuers and any Subsidiary of the Partnership (other than any Debt Securities), upon
delivery by the Issuers to the Trustee of a written notice of such release or discharge from the
guarantees.

ARTICLE X

MISCELLANEOUS

     Section 10.01. Additional Amendments. With respect to the Notes, references to
(A) “Section 6.01” in the Original Indenture shall be deemed to be references to “Section 7.01 of
this Supplemental Indenture; (B) “Section 11.02” in the Original Indenture shall be deemed to be
references to “Section 8.06” of this Supplemental Indenture; (C) “Section 6.01(g) or (h)” in the
Original Indenture shall be deemed to be references to Section 7.01(a)(vi) or (a)(vii) of this
Supplemental Indenture; and (D) “Article X” in the Original Indenture shall be deemed to be a
reference to Article VI of this Supplemental Indenture. All references to “interest” in the
Original Indenture shall be deemed to include Additional Interest, if any, unless the context
otherwise requires.

     Section 10.02. Integral Part. This Supplemental Indenture constitutes an integral part of
the Indenture.

26

 

     Section 10.03. Adoption, Ratification and Confirmation. The Original Indenture, as
supplemented and amended by this Supplemental Indenture, is in all respects hereby adopted,
ratified and confirmed.

     Section 10.04. Counterparts. This Supplemental Indenture may be executed in any number of
counterparts, each of which when so executed shall be deemed an original; and all such counterparts
shall together constitute but one and the same instrument.

     Section 10.05. Governing Law. THIS SUPPLEMENTAL INDENTURE AND THE NOTES SHALL BE GOVERNED
BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

[Signatures on following pages]

27

 

SIGNATURES

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

	 	 	 	By:
	 	/s/ Greg L. Armstrong	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name: Greg L. Armstrong	 	 
	 

	 	 	 	 	 	Title: Chief Executive Officer	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	PAA FINANCE CORP.	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ Greg L. Armstrong	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name: Greg L. Armstrong	 	 
	 

	 	 	 	 	 	Title: President	 	 

Signature Page to Thirteenth Supplemental Indenture

1 of 14

 

	 	 	 	 	 	 	 	 	 
	 	 	SUBSIDIARY GUARANTORS:	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	PLAINS MARKETING GP INC.	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ Greg L. Armstrong	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name: Greg L. Armstrong	 	 
	 

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

	 	 	 	By:
	 	/s/ Greg L. Armstrong	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name: Greg L. Armstrong	 	 
	 

	 	 	 	 	 	Title: Chief Executive Officer	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	PLAINS PIPELINE, L.P.	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	PLAINS MARKETING GP INC.	 	 
	 	 	 	 	its General Partner	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ Greg L. Armstrong	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name: Greg L. Armstrong	 	 
	 

	 	 	 	 	 	Title: Chief Executive Officer
	 	 

Signature Page to Thirteenth Supplemental Indenture

2 of 14

 

	 	 	 	 	 	 	 	 	 
	 	 	PACIFIC ENERGY GROUP, LLC	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	PLAINS ALL AMERICAN PIPELINE, L.P. its Sole Member	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	PAA GP LLC	 	 
	 	 	 	 	its General Partner	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	PLAINS AAP, L.P.	 	 
	 	 	 	 	its Sole Member	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	PLAINS ALL AMERICAN GP LLC	 	 
	 	 	 	 	its General Partner	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ Greg L. Armstrong	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name: Greg L. Armstrong	 	 
	 

	 	 	 	 	 	Title: Chief Executive Officer	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	PACIFIC LA MARINE TERMINAL LLC	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	PACIFIC ENERGY GROUP LLC	 	 
	 	 	 	 	its Sole Member	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	PLAINS ALL AMERICAN PIPELINE, L.P. its Sole Member	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	PAA GP LLC	 	 
	 	 	 	 	its General Partner	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	PLAINS AAP, L.P.	 	 
	 	 	 	 	its Sole Member	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	PLAINS ALL AMERICAN GP LLC	 	 
	 	 	 	 	its General Partner	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ Greg L. Armstrong	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name: Greg L. Armstrong	 	 
	 

	 	 	 	 	 	Title: Chief Executive Officer
	 	 

Signature Page to Thirteenth Supplemental Indenture

3 of 14

 

	 	 	 	 	 	 	 	 	 
	 	 	ROCKY MOUNTAIN PIPELINE SYSTEM LLC	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	PACIFIC ENERGY GROUP LLC	 	 
	 	 	 	 	its Sole Member	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	PLAINS ALL AMERICAN PIPELINE, L.P. its Sole Member	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	PAA GP LLC	 	 
	 	 	 	 	its General Partner	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	PLAINS AAP, L.P.	 	 
	 	 	 	 	its Sole Member	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	PLAINS ALL AMERICAN GP LLC	 	 
	 	 	 	 	its General Partner	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ Greg L. Armstrong	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name: Greg L. Armstrong	 	 
	 

	 	 	 	 	 	Title: Chief Executive Officer
	 	 

Signature Page to Thirteenth Supplemental Indenture

4 of 14

 

	 	 	 	 	 	 	 	 	 
	 	 	PACIFIC ATLANTIC TERMINALS LLC	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	PACIFIC ENERGY GROUP LLC	 	 
	 	 	 	 	its Sole Member	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	PLAINS ALL AMERICAN PIPELINE, L.P. its Sole Member	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	PAA GP LLC	 	 
	 	 	 	 	its General Partner	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	PLAINS AAP, L.P.	 	 
	 	 	 	 	its Sole Member	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	PLAINS ALL AMERICAN GP LLC	 	 
	 	 	 	 	its General Partner	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ Greg L. Armstrong	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name: Greg L. Armstrong	 	 
	 

	 	 	 	 	 	Title: Chief Executive Officer
	 	 

Signature Page to Thirteenth Supplemental Indenture

5 of 14

 

	 	 	 	 	 	 	 	 	 
	 	 	RANCH PIPEPLINE LLC	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	PACIFIC ENERGY GROUP LLC	 	 
	 	 	 	 	its Sole Member	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	PLAINS ALL AMERICAN PIPELINE, L.P. its Sole Member	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	PAA GP LLC	 	 
	 	 	 	 	its General Partner	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	PLAINS AAP, L.P.	 	 
	 	 	 	 	its Sole Member	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	PLAINS ALL AMERICAN GP LLC	 	 
	 	 	 	 	its General Partner	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ Greg L. Armstrong	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name: Greg L. Armstrong	 	 
	 

	 	 	 	 	 	Title: Chief Executive Officer
	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	PACIFIC ENERGY FINANCE CORPORATION	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ Greg L. Armstrong	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name: Greg L. Armstrong	 	 
	 

	 	 	 	 	 	Title: Chief Executive Officer	 	 

Signature Page to Thirteenth Supplemental Indenture

6 of 14

 

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

	 	 	 	By:
	 	/s/ Greg L. Armstrong	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name: Greg L. Armstrong	 	 
	 

	 	 	 	 	 	Title: Chief Executive Officer	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	PMC (NOVA SCOTIA) COMPANY	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	/s/ Phil D. Kramer 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name: Phil D. Kramer	 	 
	 

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

	 	 	 	By:	 	/s/ Phil D. Kramer 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name: Phil D. Kramer	 	 
	 

	 	 	 	 	 	Title: Executive Vice President
	 	 

Signature Page to Thirteenth Supplemental Indenture

7 of 14

 

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

	 	 	 	By:
	 	/s/ Greg L. Armstrong	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name: Greg L. Armstrong	 	 
	 

	 	 	 	 	 	Title: Chief Executive Officer	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	PLAINS TOWING LLC	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	PLAINS MARKETING, L.P.	 	 
	 	 	 	 	its Sole Member	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	PLAINS MARKETING GP INC.	 	 
	 	 	 	 	its General Partner	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ Greg L. Armstrong	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name: Greg L. Armstrong	 	 
	 

	 	 	 	 	 	Title: Chief Executive Officer	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	PICSCO LLC	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	PLAINS MARKETING, L.P.	 	 
	 	 	 	 	its Sole Member	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	PLAINS MARKETING GP INC.	 	 
	 	 	 	 	its General Partner	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ Greg L. Armstrong	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name: Greg L. Armstrong	 	 
	 

	 	 	 	 	 	Title: Chief Executive Officer
	 	 

Signature Page to Thirteenth Supplemental Indenture

8 of 14

 

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

	 	 	 	By:
	 	/s/ Greg L. Armstrong	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name: Greg L. Armstrong	 	 
	 

	 	 	 	 	 	Title: Chief Executive Officer	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	PLAINS MIDSTREAM, L.P.	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	PLAINS MIDSTREAM GP LLC	 	 
	 	 	 	 	its General Partner	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	PLAINS MARKETING, L.P.	 	 
	 	 	 	 	its Sole Member	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	PLAINS MARKETING GP INC.	 	 
	 	 	 	 	its General Partner	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ Greg L. Armstrong	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name: Greg L. Armstrong	 	 
	 

	 	 	 	 	 	Title: Chief Executive Officer
	 	 

Signature Page to Thirteenth Supplemental Indenture

9 of 14

 

	 	 	 	 	 	 	 	 	 
	 	 	PLAINS MIDSTREAM CANADA ULC	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	/s/ Phil D. Kramer 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name: Phil D. Kramer	 	 
	 

	 	 	 	 	 	Title: Executive Vice President	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	AURORA PIPELINE COMPANY LTD.	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	/s/ Phil D. Kramer 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name: Phil D. Kramer	 	 
	 

	 	 	 	 	 	Title: Executive Vice President
	 	 

Signature Page to Thirteenth Supplemental Indenture

10 of 14

 

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

	 	 	 	By:
	 	/s/ Greg L. Armstrong	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name: Greg L. Armstrong	 	 
	 

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

	 	 	 	By:
	 	/s/ Greg L. Armstrong	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name: Greg L. Armstrong	 	 
	 

	 	 	 	 	 	Title: Chief Executive Officer
	 	 

Signature Page to Thirteenth Supplemental Indenture

11 of 14

 

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

	 	 	 	By:
	 	/s/ Greg L. Armstrong	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name: Greg L. Armstrong	 	 
	 

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

	 	 	 	By:
	 	/s/ Greg L. Armstrong	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name: Greg L. Armstrong	 	 
	 

	 	 	 	 	 	Title: Chief Executive Officer	 	 

Signature Page to Thirteenth Supplemental Indenture

12 of 14

 

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

	 	 	 	By:
	 	/s/ Greg L. Armstrong	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name: Greg L. Armstrong	 	 
	 

	 	 	 	 	 	Title: Chief Executive Officer	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	LONE STAR TRUCKING, LLC	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	PLAINS LPG SERVICES, L.P.	 	 
	 	 	 	 	its Sole Member	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	PLAINS LPG SERVICES GP LLC	 	 
	 	 	 	 	its General Partner	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	PLAINS MARKETING, L.P.	 	 
	 	 	 	 	its Sole Member	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	PLAINS MARKETING GP INC.	 	 
	 	 	 	 	its General Partner	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ Greg L. Armstrong	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name: Greg L. Armstrong	 	 
	 

	 	 	 	 	 	Title: Chief Executive Officer
	 	 

Signature Page to Thirteenth Supplemental Indenture

13 of 14

 

	 	 	 	 	 
	 	TRUSTEE:

U.S. BANK NATIONAL ASSOCIATION, 
as Trustee

 	 
	 	By:  	/s/
Steven A. Finklea 	 
	 	 	Name:  	Steven A. Finklea, CCTS 	 
	 	 	Title:  	Vice President 	 
	 

Signature Page to Thirteenth Supplemental Indenture

14 of 14

 

EXHIBIT
A

(Form of Face of Note)

			
	 	 	 
	CUSIP                     
	 	No. ___
	ISIN                     
	 	$                    

PLAINS ALL AMERICAN PIPELINE, L.P.

PAA FINANCE CORP.

6.50% Series ___Senior Notes due 2018

Plains All American Pipeline, L.P., a Delaware limited partnership, and PAA Finance Corp., a
Delaware corporation, jointly and severally promise to pay to                     , or registered assigns,
the principal sum of                      Dollars [or such greater or lesser amount as may be endorsed
on the Schedule attached hereto]1 on May 1, 2018.

Interest Payment Dates: May 1 and November 1

Record Dates: April 15 and October 15

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

	 	 	 	By:	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	Name:
	 	 	 	 
	 

	 	 	 	Title:
	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	PAA FINANCE CORP.	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 	 	 
	 

	 	Title:
	 	 	 	 	 	 

TRUSTEE’S CERTIFICATE OF AUTHENTICATION

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

U.S. BANK NATIONAL ASSOCIATION, 
as Trustee

	 	 	 	 	 
	By:
	 	 	 	 
	 

	 	 	 	 
	 

	 	Authorized Signatory	 	 
	 
	 	 	 	 
	Dated:
	 	 	 	 
	 

	 	 

	 	 

 

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

A-1

 

(Form of Back of Note)

6.50%
Series ___ Senior Notes due 2018

[THIS GLOBAL SECURITY IS HELD BY OR ON BEHALF OF THE DEPOSITARY (AS DEFINED IN THE INDENTURE
GOVERNING THIS NOTE) IN CUSTODY FOR THE BENEFIT OF THE BENEFICIAL OWNERS HEREOF, AND IS NOT
TRANSFERABLE TO ANY PERSON UNDER ANY CIRCUMSTANCES EXCEPT THAT (A) THE TRUSTEE MAY MAKE SUCH
NOTATIONS HEREON AS MAY BE REQUIRED PURSUANT TO SECTION 2.08 OF THE ORIGINAL INDENTURE, (B) THIS
GLOBAL SECURITY MAY BE EXCHANGED IN WHOLE BUT NOT IN PART PURSUANT TO SECTION 2.15 OF THE ORIGINAL
INDENTURE, (C) THIS GLOBAL SECURITY MAY BE DELIVERED TO THE TRUSTEE FOR CANCELLATION PURSUANT TO
SECTION 2.10 OF THE ORIGINAL INDENTURE AND (D) THIS GLOBAL SECURITY MAY BE TRANSFERRED TO A
SUCCESSOR DEPOSITARY OR ITS NOMINEE WITH THE PRIOR WRITTEN CONSENT OF THE ISSUERS.]2

[THE ISSUANCE AND SALE OF THIS SECURITY (AND ANY GUARANTEE HEREOF) HAVE NOT BEEN REGISTERED UNDER
THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY STATE SECURITIES LAWS.
NEITHER THIS SECURITY (NOR ANY GUARANTEE HEREOF) NOR ANY INTEREST OR PARTICIPATION HEREIN OR
THEREIN MAY BE OFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF
IN THE ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO,
THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT OR ANY APPLICABLE STATE SECURITIES LAWS. THE
HOLDER HEREOF, BY ITS ACCEPTANCE OF THIS SECURITY, AGREES FOR THE BENEFIT OF THE ISSUERS THAT THIS
SECURITY MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED PRIOR TO THE EXPIRATION OF THE
HOLDING PERIOD APPLICABLE TO SALES OF THIS SECURITY BY NON-AFFILIATES OF THE ISSUERS UNDER RULE
144(d) UNDER THE SECURITIES ACT (OR, IN THE CASE OF A TRANSFER PURSUANT TO REGULATION S, THE
DISTRIBUTION COMPLIANCE PERIOD DEFINED THEREIN) WHICH IS APPLICABLE TO THIS SECURITY (THE “RESALE
RESTRICTION TERMINATION DATE”) OTHER THAN (1) TO THE ISSUERS OR THEIR RESPECTIVE SUBSIDIARIES, (2)
SO LONG AS THIS SECURITY IS ELIGIBLE FOR RESALE PURSUANT TO RULE 144A UNDER THE SECURITIES ACT
(“RULE 144A”), TO A PERSON WHOM THE SELLER REASONABLY BELIEVES IS A “QUALIFIED INSTITUTIONAL BUYER”
WITHIN THE MEANING OF RULE 144A PURCHASING FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED
INSTITUTIONAL BUYER, IN EACH CASE TO WHOM NOTICE IS GIVEN THAT THE RESALE, PLEDGE OR OTHER TRANSFER
IS BEING MADE IN RELIANCE ON RULE 144A, (3) INSIDE THE UNITED STATES TO AN

 

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

A-2

 

INSTITUTIONAL “ACCREDITED INVESTOR” (AS DEFINED IN RULE 501(a)(1), (2), (3) OR (7) UNDER THE
SECURITIES ACT), (4) TO A NON-“U.S. PERSON” IN AN “OFFSHORE TRANSACTION” (AS SUCH TERMS ARE DEFINED
IN REGULATION S UNDER THE SECURITIES ACT) IN ACCORDANCE WITH REGULATION S UNDER THE SECURITIES ACT,
(5) PURSUANT TO ANY OTHER AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES
ACT, INCLUDING THE EXEMPTION PROVIDED BY RULE 144 UNDER THE SECURITIES ACT, IF AVAILABLE, OR (6)
PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT, SUBJECT IN EACH OF THE
FOREGOING CASES TO ANY REQUIREMENT OF LAW THAT THE DISPOSITION OF ITS PROPERTY OR THE PROPERTY OF
SUCH INVESTOR ACCOUNT OR ACCOUNTS BE AT ALL TIMES WITHIN ITS OR THEIR CONTROL, AND SUBJECT TO THE
RIGHT OF THE ISSUERS OR THE TRUSTEE FOR THE SECURITIES PRIOR TO ANY SUCH SALE, PLEDGE OR OTHER
TRANSFER TO REQUIRE THE DELIVERY OF AN OPINION OF COUNSEL, CERTIFICATIONS AND/OR OTHER INFORMATION
SATISFACTORY TO EACH OF THEM. THIS LEGEND WILL BE REMOVED UPON REQUEST OF THE HOLDER ON OR AFTER
THE RESALE RESTRICTION TERMINATION DATE.]3

          Capitalized terms used herein shall have the meanings assigned to them in the Indenture
referred to below unless otherwise indicated.

          1. Interest; Additional Interest. Plains All American Pipeline, L.P., a Delaware
limited partnership (the “Partnership”), and PAA Finance Corp., a Delaware corporation (“PAA
Finance” and, together with the Partnership, the “Issuers”), jointly and severally promise to pay
interest on the principal amount of this Note at 6.50% per annum from
___ ___, ___until
maturity.  The Issuers shall pay interest semi-annually on May 1 and November 1 of each such year,
or if any such day is not a Business Day, on the next succeeding Business Day (each an “Interest
Payment Date”). Interest on the Notes shall accrue from the most recent date to which interest has
been paid or, if no interest has been paid, from the date of issuance. The first Interest Payment
Date shall be ___ ___, ___. The Issuers shall pay interest (including post-petition interest
in any proceeding under any Bankruptcy Law) on overdue principal and premium, if any, from time to
time on demand at a rate that is 1% per annum in excess of the rate then in effect; and they shall
pay interest (including post-petition interest in any proceeding under any Bankruptcy Law) on
overdue installments of interest (without regard to any applicable grace periods) from time to time
on demand at the same rate to the extent lawful.  Interest shall be computed on the basis of a
360-day year of twelve 30-day months.

          2. Method of Payment. The Issuers shall pay interest on the Notes (except defaulted
interest) to the Persons who are registered Holders of Notes at the close of business on the April
15 or October 15 next preceding the Interest Payment Date, even if such Notes are canceled after
such record date and on or before such Interest Payment Date, except as provided in Section 2.17 of
the Original Indenture with respect to defaulted interest, and the Issuers shall pay principal (and
premium, if any) of the Notes upon surrender thereof to the Trustee or a

 

			
	3	 	To be included on Transfer Restricted Securities only.

A-3

 

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

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

          4. Indenture. The Issuers issued the Notes under an Indenture dated as of
September 25, 2002 (the “Original Indenture”), as supplemented by the Thirteenth Supplemental
Indenture dated as of April 23, 2008 (the “Supplemental Indenture” and, together with the Original
Indenture, the “Indenture”) among the Issuers and the Trustee and, with respect to the Supplemental
Indenture, the subsidiary guarantors signatory thereto (the “Subsidiary Guarantors”). The terms of
the Notes include those stated in the Indenture and those made part of the Indenture by reference
to the Trust Indenture Act of 1939, as amended (15 U.S. Code §§ 77aaa-77bbbb). The Notes are
subject to all such terms, and Holders are referred to the Indenture and such Act for a statement
of such terms.  To the extent any provision of this Note conflicts with the express provisions of
the Indenture, the provisions of the Indenture shall govern and be controlling. The Notes are
joint and several obligations of the Issuers initially in aggregate principal amount of $600
million. The Issuers may issue an unlimited aggregate principal amount of Additional Notes under
the Indenture. Any such Additional Notes that are actually issued shall be treated as issued and
outstanding Notes (and as the same series (with identical terms other than with respect to the
issue date, issue price and date of first payment of interest) as the initial Notes) for all
purposes of the Indenture, including waivers, amendments, redemptions and offers to purchase. To
secure the due and punctual payment of the principal and interest on the Notes and all other
amounts payable by the Issuers under the Indenture and the Notes when and as the same shall be due
and payable, whether at maturity, by acceleration or otherwise, according to the terms of the Notes
and the Indenture, the Subsidiary Guarantors have unconditionally guaranteed the Note Obligations
under the Indenture and the Notes on a senior basis pursuant to the terms of the Indenture.

          5. Optional Redemption. (a) At their option at any time prior to maturity, the
Issuers may choose to redeem all or any portion of the Notes at once or from time to time.

          (b) To redeem the Notes, the Issuers must pay a redemption price equal to the greater of (a)
100% of the principal amount of the Notes to be redeemed, and (b) as determined by the Quotation
Agent (as defined below), the sum of the present values of the remaining scheduled payments of
principal and interest on the Notes to be redeemed (not including any

A-4

 

portion of those payments of interest accrued as of the date of redemption) discounted to the
date of redemption on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day
months) at the Adjusted Treasury Rate (as defined below) plus 40 basis points, plus, in either
case, accrued and unpaid interest, including Additional Interest, if any, to the date of redemption
(subject to the right of Holders on the relevant record date to receive interest due on the
relevant interest payment date).

          For purposes of determining any redemption price, the following definitions shall apply:

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

          “Comparable Treasury Issue” means the United States Treasury security selected by the
Quotation Agent as having a maturity comparable to the remaining term of the Notes that would be
utilized, at the time of selection and in accordance with customary financial practice, in pricing
new issues of corporate debt securities of comparable maturity to the remaining term of the Notes
to be redeemed.

          “Comparable Treasury Price” means, with respect to any date of redemption, (a) the average of
the Reference Treasury Dealer Quotations for the date of redemption, after excluding the highest
and lowest Reference Treasury Dealer Quotations, or (b) if the Trustee obtains fewer than four
Reference Treasury Dealer Quotations, the average of all such Reference Treasury Dealer Quotations.

          “Quotation Agent” means Banc of America Securities LLC or another Reference Treasury Dealer
appointed by the Issuers.

          “Reference Treasury Dealer” means (a) Banc of America Securities LLC, J.P. Morgan Securities
Inc. and BNP Paribas Securities Corp. and their respective successors; provided, however, that if
any of the foregoing shall cease to be a primary U.S. Government securities dealer in the United
States (a “Primary Treasury Dealer”), the Issuers shall substitute another Primary Treasury Dealer;
and (b) any other Primary Treasury Dealer selected by the Issuers.

          “Reference Treasury Dealer Quotations” means, with respect to each Reference Treasury Dealer
and any date of redemption, the average, as determined by the Trustee, of the bid and asked prices
for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount)
quoted in writing to the Trustee by that Reference Treasury Dealer at 5:00 p.m., New York City
time, on the third business day preceding that date of redemption.

          6. Notice of Redemption. Notice of redemption shall be mailed at least 30 days but
not more than 60 days before the redemption date to each Holder whose Notes are to be redeemed at
its registered address.  Notes in denominations larger than $2,000 may be redeemed in part but only
in whole multiples of $1,000, unless all of the Notes held by a Holder are to be

A-5

 

redeemed. Unless the Issuers default in payment of the redemption price, on and after the
redemption date interest ceases to accrue on Notes or portions thereof called for redemption.

          7. Denominations, Transfer, Exchange. The Notes are in registered form without
coupons in minimum denominations of $2,000 and integral multiples of $1,000.  The transfer of Notes
may be registered and Notes may be exchanged as provided in the Indenture.  The Registrar and the
Trustee may require a Holder, among other things, to furnish appropriate endorsements and transfer
documents and the Issuers may require a Holder to pay any taxes or other governmental charges
required by law or permitted by the Indenture.  The Issuers need not exchange or register the
transfer of any Note or portion of a Note selected for redemption or repurchase, except for the
unredeemed or unrepurchased portion of any Note being redeemed or repurchased in part.  Also, the
Issuers need not exchange or register the transfer of any Notes for a period of 15 days before a
selection of Notes to be redeemed or repurchased or during the period between a record date and the
corresponding Interest Payment Date.

          8. Persons Deemed Owners. The registered Holder of a Note shall be treated as its
owner for all purposes.

          9. Amendment, Supplement and Waiver. Subject to certain exceptions, the Indenture or
the Notes may be amended or supplemented with the consent of the Holders of a majority in aggregate
principal amount of the then Outstanding Notes, and any existing default or compliance with any
provision of the Indenture or the Notes may be waived with the consent of the Holders of a majority
in aggregate principal amount of the then Outstanding Notes. Without the consent of any Holder of
a Note, the Indenture or the Notes may be amended or supplemented for any of the purposes set forth
in Section 9.01 of the Original Indenture (as amended by the Supplemental Indenture), including to
cure any ambiguity, defect or inconsistency, to provide for the assumption of an Issuer’s
obligations to Holders of the Notes in case of a merger or consolidation of such Issuer or sale of
all or substantially all of such Issuer’s assets, to add or release Subsidiary Guarantors (or their
successors) pursuant to the terms of the Indenture, to make any change that would provide any
additional rights or benefits to the Holders of the Notes or that does not adversely affect the
legal rights under the Indenture of any Holder of the Notes, to comply with the requirements of the
Commission to permit the qualification of the Indenture under the Trust Indenture Act, to evidence
or provide for the acceptance of appointment under the Indenture of a successor Trustee, to add any
additional Events of Default, to secure the Notes or the Guarantees or to establish the form or
terms of any other series of Debt Securities.

          10. Defaults and Remedies. Events of Default with respect to the Notes include:
(i) default for 60 days in the payment when due of interest on, or Additional Interest with respect
to, the Notes; (ii) default in payment when due of principal of or premium, if any, on the Notes at
maturity, upon redemption or otherwise, (iii) failure by an Issuer or any Subsidiary Guarantor for
90 days after notice to comply with any of the other agreements in the Indenture (provided
that notice need not be given, and an Event of Default shall occur, 90 days after any breach of the
provisions of Section 6.01 of the Supplemental Indenture); (iv) default under any mortgage,
indenture or instrument under which there may be issued or by which there may be secured or
evidenced any Debt of an Issuer or any of the Partnership’s Subsidiaries (or the payment of

A-6

 

which is guaranteed by the Partnership or any of its Subsidiaries), whether such Debt or
guarantee now exists or is created after the Issue Date, if that default (a) is caused by a failure
to pay principal of or premium, if any, or interest on such Debt prior to the expiration of the
grace period provided in such Debt (a “Payment Default”) or (b) results in the acceleration of the
maturity of such Debt to a date prior to its original stated maturity, and, in each case described
in clause (a) or (b), the principal amount of any such Debt, together with the principal amount of
any other such Debt under which there has been a Payment Default or the maturity of which has been
so accelerated, aggregates $25.0 million or more, subject to the proviso set forth in Section
7.01(a)(iv) of the Supplemental Indenture; (v) except as permitted by the Indenture, any Guarantee
shall cease for any reason to be in full force and effect (except as otherwise provided in the
Indenture) or is declared null and void in a judicial proceeding or any Subsidiary Guarantor, or
any Person acting on behalf of any Subsidiary Guarantor, shall deny or disaffirm its obligations
under the Indenture or its Guarantee and (vi) certain events of bankruptcy or insolvency with
respect to an Issuer or any of the Subsidiary Guarantors. If any Event of Default occurs and is
continuing, the Trustee or the Holders of at least 25% in aggregate principal amount of the then
Outstanding Notes may declare all the Notes to be due and payable. Notwithstanding the foregoing,
in the case of an Event of Default arising from certain events of bankruptcy or insolvency
involving an Issuer, but not any Subsidiary Guarantor, all Outstanding Notes shall become due and
payable without further action or notice. Holders may not enforce the Indenture or the Notes
except as provided in the Indenture. Subject to certain limitations, Holders of a majority in
aggregate principal amount of the then Outstanding Notes may direct the Trustee in its exercise of
any trust or power. If and so long as the board of directors, an executive committee of the board
of directors or trust committee of Responsible Officers of the Trustee in good faith so determines,
the Trustee may withhold from Holders of the Notes notice of any continuing Default or Event of
Default (except a Default or Event of Default relating to the payment of principal, premium, if
any, or interest) if it determines that withholding notice is in their interests. The Holders of a
majority in aggregate principal amount of the Notes then Outstanding by notice to the Trustee may
on behalf of the Holders of all of the Notes waive any existing Default or Event of Default and its
consequences under the Indenture except a continuing Default or Event of Default in the payment of
interest on, the principal of, or premium, if any, on the Notes. The Issuers and the Subsidiary
Guarantors are required to deliver to the Trustee annually a statement regarding compliance with
the Indenture, and the Issuers are required upon becoming aware of any Default or Event of Default,
to deliver to the Trustee a statement specifying such Default or Event of Default.

          11. Trustee Dealings with Issuers. The Trustee, in its individual or any other
capacity, may make loans to, accept deposits from, and perform services for the Issuers or their
Affiliates, and may otherwise deal with the Issuers or their Affiliates, as if it were not the
Trustee.

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

A-7

 

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

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

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

          16. Additional Rights of Holders of Transfer Restricted Securities. In addition to
the rights provided to Holders of Notes under the Indenture, Holders of Transfer Restricted
Securities shall have all the rights set forth in the Exchange and Registration Rights Agreement,
including the right to receive Additional Interest as set forth therein.

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

Plains All American Pipeline, L.P.

333 Clay Street, Suite 1600

Houston, Texas 77002

Attention: Investor Relations

A-8

 

Assignment Form

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

 

(Insert assignee’s soc. sec. or tax I.D. no.)

 

 

 

 

(Print or type assignee’s name, address and zip code)

	 	 	 
	and irrevocably appoint
	 	 
	 

	 	 

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

 

Date:                                         

	 	 	 	 	 
	 

	 	 Your Signature:	 	 
	 

	 	 	 	 
	 

	 	 	 	(Sign exactly as your name appears on the face of this Note)

	 	 	 
	Signature Guarantee:
	 	 
	 

	 	 
	 

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

A-9

 

SCHEDULE OF INCREASES OR DECREASES IN THE GLOBAL NOTE4

     The original principal amount of this Global Note is ________________________. The following
increases or decreases in this Global Note have been made:

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

 

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

A-10

 

EXHIBIT B

FORM OF SUPPLEMENTAL INDENTURE

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

W I T N E S S E T H

          WHEREAS, the Issuers have heretofore executed and delivered to the Trustee an indenture (the
“Original Indenture”), dated as of September 25, 2002, as supplemented by the Thirteenth
Supplemental Indenture (the “Thirteenth Supplemental Indenture” and, together with the Original
Indenture, the “Indenture”) dated as of April 23, 2008, among the Issuers, the Subsidiary
Guarantors and the Trustee, providing for the issuance of the Issuers’ 6.50% Senior Notes due 2018
(the “Notes”);

          WHEREAS, Section 5.05 of the Thirteenth Supplemental Indenture provides that under certain
circumstances the Partnership is required to cause the Subsidiary Guarantor to execute and deliver
to the Trustee a supplemental indenture pursuant to which the Subsidiary Guarantor shall
unconditionally guarantee all of the Issuers’ obligations under the Notes pursuant to a Guarantee
on the terms and conditions set forth herein; and

          WHEREAS, pursuant to Section 9.01 of the Original Indenture, the Issuers and the Trustee are
authorized to execute and deliver this Supplemental Indenture;

          NOW THEREFORE, in consideration of the foregoing and for other good and valuable
consideration, the receipt of which is hereby acknowledged, the Issuers, the Subsidiary Guarantor
and the Trustee mutually covenant and agree for the equal and ratable benefit of the holders of the
Notes as follows:

          1. Definitions. (a) Capitalized terms used herein without definition shall have the
meanings assigned to them in the Indenture.

          (b) For all purposes of this Supplemental Indenture, except as otherwise herein expressly
provided or unless the context otherwise requires: (i) the terms and expressions used herein shall
have the same meanings as corresponding terms and expressions used in the Indenture; and (ii) the
words “herein,” “hereof” and “hereby” and other words of similar import used in this Supplemental
Indenture refer to this Supplemental Indenture as a whole and not to any particular section hereof.

B-1

 

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

          3. GOVERNING LAW. THIS SUPPLEMENTAL INDENTURE SHALL BE DEEMED TO BE A NEW YORK
CONTRACT, AND FOR ALL PURPOSES SHALL BE CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW
YORK.

          4. Trustee Makes No Representation. The Trustee makes no representation as to the
validity or sufficiency of this Supplemental Indenture.

          5. Counterparts. The parties may sign any number of copies of this Supplemental
Indenture. Each signed copy shall be an original, but all of them together represent the same
agreement.

          6. Effect of Headings. The Section headings herein are for convenience only and shall
not effect the construction thereof.

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

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

	 	 	 	By:	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name:	 	 
	 

	 	 	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	PAA FINANCE CORP.	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 
	 

	 	 	 	Title:
	 	 	 	 

B-2

 

	 	 	 	 	 
	 	[SUBSIDIARY GUARANTOR],

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

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

B-3

 

EXHIBIT C

CERTIFICATE TO BE DELIVERED UPON EXCHANGE

OR REGISTRATION OF TRANSFER OF SECURITIES

PURSUANT TO RULE 144A OR RULE 501

			
	Re:	 	6.50% Series [A/B] Senior Notes due 2018 of Plains All American Pipeline, L.P. and PAA
Finance Corp. (together, the “Issuers”)

          This Certificate relates to $                     principal amount of the above captioned Notes held
in definitive form (the “Securities”) by                                          (the “Transferor”).

The Transferor has requested the Trustee by written order to exchange or register the transfer of a
Security or Securities.

          In connection with such request and in respect of each such Security, the Transferor does
hereby certify that the Transferor is familiar with the Indenture and the Supplemental Indenture
relative to the Securities and that the transfer of this Security does not require registration
under the Securities Act (as defined below) because:*

          o Such Security is being acquired for the Transferor’s own account without transfer.

          o Such Security is being transferred to a “qualified institutional buyer” (as defined in
Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”)), in reliance on Rule
144A under the Securities Act and in accordance with any applicable securities laws of any state of
the United States or any other jurisdiction, that is purchasing for its own account or for the
account of another qualified institutional buyer, in each case to whom notice is given that the
transfer is being made in reliance on Rule 144A.

          o Such Security is being transferred (i) in accordance with Rule 144 under the
Securities Act (and based on an opinion of counsel if the Issuers or the Trustee so requests) or
(ii) pursuant to an effective registration statement under the Securities Act.

          o Such Security is being transferred to an institutional “accredited investor” within
the meaning of Rule 501(a)(1), (2), (3) or (7) under the Securities Act pursuant to a private
placement exemption from the registration requirements of the Securities Act (and based on an
opinion of counsel if the Issuers or the Trustee so requests) and in accordance with any applicable
securities laws of any state of the United States or any other jurisdiction, that is purchasing for
its own account or for the account of another institutional accredited investor, together with a
certification in substantially the form of Exhibit D to the Supplemental Indenture and, to the
knowledge of the Transferor, such institutional accredited investor to whom such Security is to be
transferred is not an “affiliate” (as defined in Rule 144 under the Securities Act) of an Issuer.

C-1

 

          o Such Security is being transferred in reliance on and in compliance with another
exemption from the registration requirements of the Securities Act (and based on an opinion of
counsel if the Issuers so request).

 

			
	*	 	Check appropriate response.

	 	 	 	 	 	 	 
	 	 	 	 	 
	 	 	[INSERT NAME OF TRANSFEROR]	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 
	 

	 	 	 	Address:
	 	 

Date:                                         

C-2

 

EXHIBIT D

TRANSFEREE LETTER OF REPRESENTATIONS

Plains All American Pipeline, L.P.

PAA Finance Corp.

c/o U.S. Bank National Association, Trustee

5847 San Felipe, Suite 1050

Houston, Texas 77057

Attn: Corporate Trust Group

Ladies and Gentlemen:

          In connection with our proposed purchase of $                     aggregate principal amount of
6.50% Senior Notes due 2018 (the “Securities”) of Plains All American Pipeline, L.P. and PAA
Finance Corp. (together, the “Issuers”):

          1. We understand that the Securities have not been registered under the Securities Act of
1933, as amended (the “Securities Act”), or under any other applicable securities laws, and may not
be sold except as permitted in the following sentence. We agree on our own behalf and on behalf of
any investor account for which we are purchasing the Securities to offer, sell or otherwise
transfer such Securities prior to the date which is two years after the later of the date of
original issue and the last date on which the Issuers or any affiliate of an Issuer was the owner
of such Securities, or any predecessor, thereto (the “Resale Restriction Termination Date”) only
(a) to the Issuers, (b) pursuant to a registration statement that has been declared effective by
the Securities and Exchange Commission (the “Commission”), (c) for so long as the Securities are
eligible for resale pursuant to Rule 144A under the Securities Act, to a person we reasonably
believe is a qualified institutional buyer under Rule 144A (a “QIB”) that purchases for its own
account or for the account of a QIB to whom notice is given that the transfer is being made in
reliance on Rule 144A, (d) to an institutional “accredited investor” within the meaning of
subparagraph (a)(1), (2), (3) or (7) of Rule 501 under the Securities Act (an “Institutional
Accredited Investor”) that is acquiring the Securities for its own account or for the account of
another Institutional Accredited Investor for investment purposes and not with a view to, or for
offer or sale in connection with, any distribution thereof in violation of the regulations of the
Securities Act and any other applicable securities laws or (e) pursuant to any other available
exemption from the registration requirements of the Securities Act, subject in each of the
foregoing cases to any requirement of law that the disposition of our property and the property of
such investor account or accounts be at all times within our or their control. The foregoing
restrictions on resale will not apply subsequent to the Resale Restriction Termination Date. If
any resale or other transfer of the Securities is proposed to be made pursuant to clause (d) above
prior to the Resale Restriction Termination Date, the transferor shall deliver a letter from the
transferee substantially in the form of this letter to the Trustee, which shall provide, among
other things, that the transferee is an Institutional Accredited Investor and that it is acquiring
such Securities for investment purposes and not for distribution in violation of the Securities
Act. We acknowledge that the Issuers and the Trustee reserve the right prior to any

D-1

 

offer, sale or other transfer pursuant to clause (d) or (e) prior to the Resale Restriction
Termination Date of the Securities to require the delivery of an opinion of counsel, certifications
and/or other information satisfactory to the Issuers and the Trustee.

          2. We are an Institutional Accredited Investor purchasing for our own account or for the
account of another Institutional Accredited Investor.

          3. We are acquiring the Securities purchased by us for our own account, or for one or more
accounts as to each of which we exercise sole investment discretion, for investment purposes and
not with a view to, or for offer or sale in connection with any distribution in violation of, the
Securities Act. We have such knowledge and experience in financial and business matters as to be
capable of evaluating the merits and risks of investment in the Securities, we invest in securities
similar to the Securities in the normal course of our business and we, and all accounts for which
we are acting, are able to bear the economic risks of investment in the Securities.

          4. You are entitled to rely upon this letter and you are irrevocably authorized to produce
this letter or a copy thereof to any interested party in any administrative or legal proceeding or
official inquiry with respect to the matters covered hereby.

	 	 	 	 	 
	 	Very truly yours,

[NAME OF TRANSFEREE]

 	 
	 	By:  	 	 
	 	 	Authorized Signatory 	 
	 	 	 	 
	 

          Upon transfer, the Securities should be registered in the name of the new beneficial owner as
follows:

	 	 	 	 	 
	Name:
	 	 	 	 
	 

	 	 	 	 
	Address:
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	Taxpayer ID No:
	 	 	 	 
	 

	 	 

	 	 

D-2

 

EXHIBIT E

CERTIFICATE TO BE DELIVERED

IN CONNECTION WITH TRANSFERS PURSUANT TO REGULATION S

[Date]

Plains All American Pipeline, LP

PAA Finance Corp.

c/o U.S. Bank National Association, Trustee

5847 San Felipe, Suite 1050

Houston, Texas 77057

Attn: Corporate Trust Group

			
	           Re:	 	Plains All American Pipeline, L.P. and PAA Finance Corp. (the
“Issuers”) 6.50% Series [A/B] Senior Notes due 2018 (the “Securities”)

Ladies and Gentlemen:

          In connection with our proposed sale of $                     aggregate principal amount of the
Securities, we confirm that such sale has been effected pursuant to and in accordance with
Regulation S under the United States Securities Act of 1933, as amended (the “Securities Act”),
and, accordingly, we represent that:

     (a) the offer of the Securities was not made to a person in the United States;

     (b) either (i) at the time the buy order was originated, the transferee was
outside the United States or we and any person acting on our behalf reasonably
believed that the transferee was outside the United States or (ii) the transaction
was executed in, on or through the facilities of a designated off-shore securities
market and neither we nor any person acting on our behalf knows that the transaction
has been pre-arranged with a buyer in the United States;

     (c) no directed selling efforts have been made in the United States in
contravention of the requirements of Rule 904(a) of Regulation S, as applicable; and

     (d) the transaction is not part of a plan or scheme to evade the registration
requirements of the Securities Act.

          In addition, if the sale is made during a restricted period and the provisions of Rule
904(b)(1) of Regulation S are applicable thereto, we confirm that such sale has been made in
accordance with the applicable provisions of Rule 904(b)(1).

E-1

 

          You and the Issuers are entitled to rely upon this letter and are irrevocably authorized to
produce this letter or a copy hereof to any interested party in any administrative or legal
proceedings or official inquiry with respect to the matters covered hereby. Terms used in this
certificate have the meanings set forth in Regulation S.

	 	 	 	 	 
	 	Very truly yours,

[NAME OF TRANSFEROR]

 	 
	 	By:  	 	 
	 	 	Authorized Signatory 	 
	 	 	 	 
	 

E-2

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00141-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00141-of-00352.parquet"}]]