Document:

Exhibit
10.1

EXECUTION
COPY

 

 

 

 

 

 

PLAINS
AAP, L.P.

A Delaware Limited
Partnership

 

THIRD
AMENDED AND RESTATED

LIMITED
PARTNERSHIP AGREEMENT

 

August 29, 2007

 

 

 

TABLE OF
CONTENTS

	
  

  	
   

  	
  Page

  
	
   

  	
   

  
	
  ARTICLE I DEFINITIONS

  	
  1

  
	
   

  	
   

  
	
  ARTICLE II ORGANIZATION

  	
  10

  
	
  2.1

  	
  Formation of Limited Partnership

  	
  10

  
	
  2.2

  	
  Name of Partnership

  	
  10

  
	
  2.3

  	
  Principal Office; Registered Office

  	
  10

  
	
  2.4

  	
  Term of Partnership

  	
  10

  
	
  2.5

  	
  Purpose of Partnership

  	
  10

  
	
  2.6

  	
  Actions by Partnership

  	
  10

  
	
  2.7

  	
  Reliance by Third Parties

  	
  11

  
	
   

  	
   

  	
   

  
	
  ARTICLE III CAPITAL

  	
  11

  
	
  3.1

  	
  Capital Contributions

  	
  11

  
	
  3.2

  	
  Additional Capital Contributions

  	
  11

  
	
  3.3

  	
  Loans

  	
  11

  
	
  3.4

  	
  Maintenance of Capital Accounts

  	
  11

  
	
  3.5

  	
  Capital Withdrawal Rights, Interest and Priority

  	
  12

  
	
  3.6

  	
  Class B Partners Profits Interests

  	
  13

  
	
   

  	
   

  	
   

  
	
  ARTICLE IV DISTRIBUTIONS

  	
  13

  
	
  4.1

  	
  Distributions of Available Cash

  	
  13

  
	
  4.2

  	
  Intentionally Omitted

  	
  13

  
	
  4.3

  	
  Persons Entitled to Distributions

  	
  13

  
	
  4.4

  	
  Limitations on Distributions

  	
  14

  
	
   

  	
   

  	
   

  
	
  ARTICLE V ALLOCATIONS

  	
  14

  
	
  5.1

  	
  Profits

  	
  14

  
	
  5.2

  	
  Losses

  	
  14

  
	
  5.3

  	
  Regulatory Allocations

  	
  15

  
	
  5.4

  	
  Tax Allocations: Code Section 704(c)

  	
  15

  
	
  5.5

  	
  Change in Partnership Interest

  	
  16

  
	
  5.6

  	
  Withholding

  	
  16

  
	
   

  	
   

  	
   

  
	
  ARTICLE VI MANAGEMENT

  	
  17

  
	
  6.1

  	
  Duties and Powers of the General Partner

  	
  17

  
	
  6.2

  	
  No Liability to Limited Partners

  	
  17

  
	
  6.3

  	
  Indemnification of General Partner

  	
  18

  
	
  6.4

  	
  Rights of Limited Partners

  	
  18

  
	
  6.5

  	
  Class B Partners

  	
  18

  
	
  6.6

  	
  Contributed Units

  	
  18

  

 

 i
 

 

	
  

  	
   

  	
  Page

  
	
   

  	
   

  
	
  ARTICLE VII TRANSFERS OF PARTNERSHIP INTERESTS

  	
  18

  
	
  7.1

  	
  Transfer of Limited Partnership Interests

  	
  18

  
	
  7.2

  	
  Permitted Transferees

  	
  19

  
	
  7.3

  	
  Substitute Limited Partners

  	
  20

  
	
  7.4

  	
  Effect of Admission as a Substitute Limited Partner

  	
  21

  
	
  7.5

  	
  Consent

  	
  21

  
	
  7.6

  	
  No Dissolution

  	
  21

  
	
  7.7

  	
  Additional Limited Partners

  	
  21

  
	
  7.8

  	
  Right of First Refusal

  	
  21

  
	
   

  	
   

  	
   

  
	
  ARTICLE VIII DISSOLUTION AND LIQUIDATION

  	
  22

  
	
  8.1

  	
  Dissolution of Partnership

  	
  22

  
	
  8.2

  	
  Final Accounting

  	
  23

  
	
  8.3

  	
  Distributions Following Dissolution and Termination

  	
  23

  
	
  8.4

  	
  Termination of the Partnership

  	
  25

  
	
  8.5

  	
  No Action for Dissolution

  	
  25

  
	
   

  	
   

  	
   

  
	
  ARTICLE IX ACCOUNTING; BOOKS AND RECORDS

  	
  25

  
	
  9.1

  	
  Fiscal Year and Accounting Method

  	
  25

  
	
  9.2

  	
  Books and Records

  	
  25

  
	
  9.3

  	
  Delivery to Partners; Inspection

  	
  26

  
	
  9.4

  	
  Financial Statements

  	
  26

  
	
  9.5

  	
  Filings

  	
  26

  
	
  9.6

  	
  Non-Disclosure

  	
  27

  
	
   

  	
   

  	
   

  
	
  ARTICLE X NON-COMPETITION

  	
  27

  
	
  10.1

  	
  Non-Competition

  	
  27

  
	
  10.2

  	
  Damages

  	
  28

  
	
  10.3

  	
  Limitations

  	
  28

  
	
   

  	
   

  	
   

  
	
  ARTICLE XI GENERAL PROVISIONS

  	
  28

  
	
  11.1

  	
  Waiver of Default

  	
  28

  
	
  11.2

  	
  Amendment of Partnership Agreement

  	
  28

  
	
  11.3

  	
  No Third Party Rights

  	
  29

  
	
  11.4

  	
  Severability

  	
  29

  
	
  11.5

  	
  Nature of Interest in the Partnership

  	
  29

  
	
  11.6

  	
  Binding Agreement

  	
  29

  
	
  11.7

  	
  Headings

  	
  29

  
	
  11.8

  	
  Word Meanings

  	
  29

  
	
  11.9

  	
  Counterparts

  	
  29

  
	
  11.10

  	
  Entire Agreement

  	
  30

  
	
  11.11

  	
  Partition

  	
  30

  
	
  11.12

  	
  Governing Law; Consent to Jurisdiction and Venue

  	
  30

  

 

 ii

THIRD
AMENDED AND RESTATED LIMITED PARTNERSHIP AGREEMENT

OF

PLAINS
AAP, L.P.

THIS THIRD AMENDED AND RESTATED LIMITED PARTNERSHIP
AGREEMENT (this “Agreement”) of Plains AAP,
L.P., a Delaware limited partnership
(the “Partnership”), is made and entered into as of
this 29th day of August, 2007 by Plains All American GP
LLC, a Delaware limited liability company, as the general partner, and,
pursuant to Section 11.2(d) of the Second Amended and Restated Limited
Partnership Agreement dated as of September 12, 2005, by and among the General
Partner and the Limited Partners (the “Second A&R Limited Partnership Agreement”),
is binding on the Persons listed as Limited Partners in Schedule I
hereto, as such schedule may be amended or supplemented from time to time in accordance
herewith.

This Agreement amends and restates in its entirety the
Second A&R Limited Partnership Agreement.

ARTICLE I

Definitions

For purposes of this
Agreement:

“Acceptance Notice”
shall have the meaning set forth in Section 7.8(b).

“Act” means
the Delaware Revised Uniform Limited Partnership Act, as amended from time to
time.

“Adjusted
Capital Account Deficit” means, with respect to a
Partner, the deficit balance, if any, in such Partner’s Capital Account as of
the end of the relevant Taxable Year, after giving effect to the following
adjustments:

(a)           Credit
to such Capital Account any amounts which such Partner is obligated to restore
pursuant to any provision of this Agreement or is deemed to be obligated to
restore pursuant to Regulation Sections 1.704-1(b)(2)(ii)(c), 1.704-2(g)(1) and 1.704-2(i)(5); and

(b)           Debit
to such Capital Account the items described in Regulation Sections
1.704-1(b)(2)(ii)(d)(4),
1.704-1(b)(2)(ii)(d)(5),
and 1.704-1(b)(2)(ii)(d)(6).

“Affiliate”
means, with respect to any specified Person, any other Person that directly, or
indirectly through one or more intermediaries, controls, is controlled by, or
is under common control with, such specified Person.

“Agreement”
means this Third Amended and Restated Limited Partnership Agreement, as amended
from time to time in accordance with its terms.

 1
 

“Available Cash”
means, with respect to a fiscal quarter, all cash and cash equivalents of the
Partnership at the end of such quarter (other than Net Capital Transaction
Proceeds and Contributed Unit Proceeds) less the amount of cash reserves that
is necessary or appropriate in the reasonable discretion of the General Partner
to (a) provide for the proper conduct of the business of the Partnership
(including reserves for future capital expenditures and for anticipated future
credit needs of the Partnership) subsequent to such quarter or (b) comply
with applicable law or any loan agreement, security agreement, mortgage, debt
instrument or other agreement or obligation to which the Partnership is a party
or by which it is bound or its assets or Property is subject; provided,
however, that disbursements made by the Master Limited Partnership to the
Partnership or cash reserves established, increased or reduced after the
expiration of such quarter but on or before the date of determination of
Available Cash with respect to such quarter shall be deemed to have been made,
established, increased or reduced, for purposes of determining Available Cash,
during such quarter if the General Partner so determines in its reasonable
discretion.

“Business” means
all Hydrocarbon gathering, transportation, terminalling, storage, and marketing
and all operations related thereto, including, without limitation, (a) the
acquisition, construction, installation, maintenance or remediation and
operation of pipelines, gathering lines, compressors, facilities, storage
facilities and equipment, and (b) the gathering of Hydrocarbons from fields,
interstate and intrastate transportation by pipeline, trucks or barges, tank storage
of Hydrocarbons, transferring Hydrocarbons from pipelines and storage tanks to
trucks, barges or other pipelines, acquisition of Hydrocarbons at the well or
bulk purchase at pipeline and terminal facilities and subsequent resale
thereof.

“Business Day”
means any day that is not a Saturday, a Sunday or other day on which banks are
required or authorized by law to be closed in the City of New York.

“Capital Account”
means, with respect to any Partner, a separate account established by the
Partnership and maintained for each Partner in accordance with Section 3.4
hereof.

“Capital Contribution”
means, with respect to any Partner, the amount of money, if any, and the
initial Gross Asset Value of any Property (other than money), if any,
contributed to the Partnership with respect to the interests purchased by such
Partner pursuant to the terms of this Agreement, in return for which the
Partner contributing such capital shall receive a Partnership Interest.

“Certificate”
means the Certificate of Limited Partnership of the Partnership filed with the
Secretary of State of Delaware, as amended or restated from time to time.

“Class A Partner”
means a Limited Partner all or any portion of whose Limited Partnership
Interest is evidenced by Class A Units.

“Class A Unit”
means a Partnership Interest representing a fractional part of the Partnership
Interests of all Limited Partners, and having the rights and obligations
specified with respect to Class A Units in this Agreement.

 2
 

“Class B Partner”
means a Limited Partner all or any portion of whose Limited Partnership
Interest is evidenced by Class B Units.

“Class B Unit”
means a Partnership Interest representing a fractional part of the Partnership
Interests of all Limited Partners, and having the rights and obligations
specified with respect to Class B Units in this Agreement and the Class B
Restricted Unit Agreement pursuant to which it was issued.

“Class B Restricted Unit
Agreement” means an agreement, substantially in the form
of Exhibit A hereto, between the Partnership and any Limited Partner that is
issued Class B Units, as any such agreement shall be amended or modified from
time to time by the parties thereto.

“Code”
means the United States Internal Revenue Code of 1986, as amended.

“Contributed Unit Proceeds”
means (i) distributions attributable to the ownership by the Partnership of
Contributed Units and (ii) proceeds of any Special Disposition or other
disposition of Contributed Units.

“Contributed Units”
means the subordinated units in the Master Limited Partnership contributed to
the Partnership in 2001, which subordinated units converted into common units
in the Master Limited Partnership in accordance with the provisions of the
Master Limited Partnership Agreement.

“Contribution
Percentage” means in respect of a Capital Contribution required
to be made pursuant to Section 2.1(b), (i) in the case of the General Partner,
1%, (ii) in the case of a Class A Partner, 99% times a fraction, the numerator
of which is the number of such Class A Partner’s Class A Units at such time,
and the denominator of which is the sum of (x) the number of outstanding Class
A Units at such time and (y) the product of the Conversion Factor and the
aggregate number of Earned Units and Vested Units outstanding at such time, and
(iii) in the case of a Class B Partner, 99% times a fraction, the numerator of
which is the product of the Conversion Factor and the number of such Class B
Partner’s Earned Units and Vested Units at such time, and the denominator of
which is the sum of (x) the number of outstanding Class A Units at such time
and (y) the product of the Conversion Factor and the aggregate number Earned
Units and Vested Units outstanding at such time.

“Conversion Factor”
means, as of a particular time, a fraction, the numerator of which is the
regular quarterly cash distribution, if any, paid with respect to an Earned
Unit or Vested Unit for the most recent quarter, and the denominator of which
is the regular quarterly cash distribution paid with respect to a Class A Unit
for such quarter.

“Depreciation”
means, for each Taxable Year or other period, an amount equal to the
depreciation, amortization or other cost recovery deduction allowable with
respect to an asset for such Taxable Year, except that if the Gross Asset Value
of an asset differs from its adjusted basis for federal income tax purposes at
the beginning of such Taxable Year, Depreciation shall be an amount which bears
the same ratio to such beginning Gross Asset Value as the federal income tax
depreciation, amortization or other cost recovery deduction for such Taxable
Year bears to such beginning adjusted tax basis; provided, however, that if the
adjusted basis for federal

 3
 

income tax purposes of an
asset at the beginning of such Taxable Year is zero, Depreciation shall be determined
with reference to such beginning Gross Asset Value using any reasonable method
selected by the General Partner.

“Earned
Unit” means a Class B Unit that constitutes an “Earned Unit”
under the Class B Restricted Unit Agreement pursuant to which such Class B Unit
was issued.

“E-Holdings”
means E-Holdings, III L.P., a Texas limited partnership.

“EnCap”
shall have the meaning set forth in Section 10.1.

“Encumbrance” means any security
interest, pledge, mortgage, lien (including, without limitation, environmental
and tax liens), charge, encumbrance, adverse claim, any defect or imperfection
in title, preferential arrangement or restriction, right to purchase, right of
first refusal or other burden or encumbrance of any kind, other than those
imposed by this Agreement.

“First Refusal Notice”
shall have the meaning set forth in Section 7.8(a).

 “General Partner” means Plains All American GP LLC, a Delaware
limited liability company, any successor thereto, and any Persons hereafter
admitted as additional general partners, each in its capacity as a general
partner of the Partnership.

“Grant Date Partnership Capital”
means, with respect to the Class B Partners, the amount set forth in Schedule
I, which amount is equal to the aggregate Capital Account balances of the
General Partner and the Class A Partners, as adjusted pursuant to the terms of
this Agreement at the time of the admission of the Class B Partners to the
Partnership.

“Gross
Asset Value” means with respect to any asset, the asset’s
adjusted basis for federal income tax purposes, except as follows and as
otherwise provided in Section 3.2(b):

(a)           The
initial Gross Asset Value of any asset contributed by a Partner to the
Partnership shall be the gross fair market value of such asset, as reasonably
determined by the General Partner; provided, however, that the initial Gross
Asset Values of the assets contributed to the Partnership pursuant to Section
3.1 hereof shall be as set forth in such section or the schedule referred
to therein;

(b)           The Gross Asset Values of all
Partnership assets shall be adjusted to equal their respective gross fair
market values (taking Code Section 7701(g) into account), as reasonably
determined by the General Partner as of the following times: (i) the
acquisition of an additional interest in the Partnership by any new or existing
Partner in exchange for more than a de minimis Capital Contribution; (ii) the
distribution by the Partnership to a Partner of more than a de minimis amount
of Partnership property as consideration for an interest in the Partnership;
(iii) the issuance by the Partnership of Class B Units; and (iv) the
liquidation of the Partnership within the meaning of Regulation Section
1.704-1(b)(2)(ii)(g); and

 4
 

(c)           The
Gross Asset Value of any item of Partnership assets distributed to any Partner
shall be adjusted to equal the gross fair market value (taking Code Section
7701(g) into account) of such asset on the date of distribution as reasonably
determined by the General Partner.

If the Gross Asset Value of an asset has been
determined or adjusted pursuant to subparagraph (b), such Gross Asset Value
shall thereafter be adjusted by the Depreciation taken into account with
respect to such asset, for purposes of computing Profits and Losses.

“Hydrocarbons” means crude oil,
natural gas, casinghead gas, condensate, sulphur, natural gas liquids, plant
products, liquefied petroleum gas and other liquid or gaseous hydrocarbons
produced in association therewith, including, without limitation, coalbed
methane and gas and CO2.

“Initial Class A Holders” means
the Persons listed as such on Schedule I hereto.

 “Kafu” means KAFU
Holdings LP, a Delaware limited partnership.

“Kayne Anderson”
shall have the meaning set forth in Section 10.1.

“Limited Partner”
means, unless the context otherwise requires, each Initial Class A Holder and
each additional Person that becomes a Class A Partner or a Class B Partner
pursuant to the terms of this Agreement and that is shown as such on the books
and records of the Partnership, in each case, in such Person’s capacity as a
limited partner of the Partnership.

“Limited Partnership Interest” means
the ownership interest of a Limited Partner in the Partnership, which may be
evidenced by Class A Units, Class B Units or any other Partnership Security or
a combination thereof or interest therein, and includes any and all benefits to
which such Limited Partner is entitled as provided in this Agreement, together
with all obligations of such Limited Partner to comply with the terms and
provisions of this Agreement.

“Liquidating Trustee”
has the meaning set forth in Section 8.3(a).

“LLC Agreement”
means the Second Amended and Restated Agreement Limited Liability Company
Agreement of the General Partner, dated as of September 12, 2005, by and among
the members in the General Partner and any other Persons who become members in
the General Partner as provided therein, as amended from time to time in
accordance with the terms thereof.

“Losses”
has the meaning set forth in the definition of “Profits” and “Losses”.

“Management
Entity” shall mean PAA Management, L.P.

“Management
Sale” shall have the meaning set forth in Section 7.9.

“Master Limited Partnership”
means Plains All American Pipeline, L.P., and any successor thereto.

 5
 

“Master Limited Partnership
Agreement” means the Third Amended and Restated Agreement
of Limited Partnership of the Master Limited Partnership, dated as of June 27,
2001, as amended on April 15, 2004 and November 15, 2006, and as may be further
amended, modified, supplemented or restated from time to time in accordance
with the terms thereof.

“Member”
means a record holder of a Membership Interest.

“Membership Interest”
means, with respect to a Partner, such Partner’s limited liability company
interest, if any, in the General Partner, which refers to all of such Partner’s
rights and interests in the General Partner in such Partner’s capacity as a
member thereof, all as provided in the LLC Agreement and the Delaware Limited
Liability Company Act.

“Membership Transfer”
shall have the meaning set forth in Section 7.1(b).

“Net Capital Transaction Proceeds”
means the cash, notes, equity interests and any other consideration derived
from the sale or other disposition of all or a portion of the Partnership’s
assets.

“Non-Purchasing Partner” shall have the
meaning set forth in Section 7.8(d).

“Non-Selling Partner”
shall have the meaning set forth in Section 7.8(b).

“Notice”
means a writing, containing the information required by this Agreement to be
communicated to a party, and shall be deemed to have been received (a) when
personally delivered or sent by telecopy, (b) one day following delivery by
overnight delivery courier, with all delivery charges pre-paid, or (c) on the
third Business Day following the date on which it was sent by United States
mail, postage prepaid, to such party at the address or fax number, as the case
may be, of such party as shown on the records of the Partnership.

“Offer”
shall have the meaning set forth in Section 7.8(a).

“Offeror”
shall have the meaning set forth in Section 7.8(a).

“Option” means an option to
purchase Contributed Units granted pursuant to the Option Plan, as amended.

“Option Plan” means the Plains
All American 2001 Performance Option Plan, as amended, and any successor
employee incentive plan funded with Contributed Units.

“Optioned Interest”
shall have the meaning set forth in Section 7.8(a).

“Partner” means
the General Partner or any of the Limited Partners, and “Partners” means the
General Partner and all of the Limited Partners.

“Partnership”
shall have the meaning set forth in the preamble hereof.

 6
 

“Partnership Interest”
means a Partner’s limited partnership or general partnership interest in the
Partnership which refers to all of a Partner’s rights and interests in the
Partnership in such Partner’s capacity as a Partner, all as provided in this
Agreement and the Act.

“Partnership Security” means any class or series
of equity interest in the Partnership (but excluding any options, rights,
warrants and appreciation rights relating to an equity interest in the
Partnership), including without limitation, Class A Units and Class B Units.

“Permitted Transfer” shall mean:

(a)           with
respect to Class A Units, a Transfer of any or all of the Partnership Interest
by any Partner who is a natural person to (i) such Partner’s spouse, children
(including legally adopted children and stepchildren), spouses of children or
grandchildren or spouses of grandchildren; (ii) a trust for the benefit of the
Partner and/or any of the Persons described in clause (i); or (iii) a limited
partnership or limited liability company whose sole partners or members, as the
case may be, are the Partner and/or any of the Persons described in clause (i)
or clause (ii); provided, that in any of clauses
(i), (ii) or (iii), the Partner transferring such Partnership Interest, or
portion thereof, retains exclusive power to exercise all rights under this
Agreement;

(b)           a
Transfer of any or all of the Partnership Interest by any Partner to the
Partnership;

(c)           with
respect to Class A Units, a Transfer of any or all of the Partnership Interest
by a Partner to any Affiliate of such Partner; provided,
however, that such transfer shall be a Permitted Transfer only so
long as such Partnership Interest, or portion thereof, is held by such
Affiliate or is otherwise transferred in another Permitted Transfer; and

(d)           with
respect to Class B Units, a Transfer permitted under the applicable Class B
Restricted Unit Agreement.

Provided,
however, that no Permitted Transfer shall be effective unless
and until the transferee of the Partnership Interest, or portion thereof, so
transferred complies with Sections 7.1(b).  Except in the case of a Permitted Transfer
pursuant to clause (b) above, from and after the date on which a Permitted
Transfer becomes effective, the Permitted Transferee of the Partnership
Interest, or portion thereof, so transferred shall have the same rights, and
shall be bound by the same obligations, under this Agreement as the transferor
of such Partnership Interest, or portion thereof, and shall be deemed for all purposes
hereunder a Partner and such Permitted Transferee shall, as a condition to such
Transfer, agree in writing to be bound by the terms of this Agreement.  No Permitted Transfer shall conflict with or
result in any violation of any judgment, order, decree, statute, law,
ordinance, rule or regulation or require the Company, if not currently subject,
to become subject, or if currently subject, to become subject to a greater
extent, to any statute, law, ordinance, rule or regulation, excluding matters
of a ministerial nature that are not materially burdensome to the Company.

“Permitted
Transferee” shall mean any Person who shall have acquired
and who shall hold a Partnership Interest, or portion thereof, pursuant to a
Permitted Transfer.

 7
 

“Person”
means any individual, partnership, corporation, limited liability company,
trust, incorporated or unincorporated organization or other legal entity of any
kind.

“Profits”
and “Losses” means, for each Taxable
Year, an amount equal to the Partnership’s net taxable income or loss for a
taxable year, determined in accordance with Section 703(a) of the Code (for
this purpose, all items of income, gain, loss or deduction required to be
stated separately pursuant to Section 703(a)(1) of the Code shall be included
in computing such taxable income or loss), with the following adjustments:

(a)           Any
income of the Partnership that is exempt from federal income tax and not
otherwise taken into account in computing Profits or Losses shall be added to
such taxable income or loss;

(b)           Any
expenditures of the Partnership described in Section 705(a)(2)(B) of the Code
or treated as Code Section 705(a)(2)(B) expenditures pursuant to Regulation
Section 1.704-1(b)(2)(iv)(i), and not otherwise taken into account in computing
Profits or Losses, shall be subtracted from such taxable income or loss;

(c)           In
the event the Gross Asset Value of any Partnership asset is adjusted pursuant
to subparagraphs (b) or (c) of the definition of Gross Asset Value, the amount
of such adjustment shall be treated as an item of gain (if the adjustment
increases the Gross Asset Value of the asset) or an item of loss (if the
adjustment decreases the Gross Asset Value of the asset) from the disposition
of such asset and shall be taken into account for purposes of computing Profits
or Losses;

(d)           Gain
or loss resulting from any disposition of Property with respect to which gain
or loss is recognized for federal income tax purposes shall be computed by
reference to the Gross Asset Value of the Property disposed of, notwithstanding
that the adjusted tax basis of such Property differs from its Gross Asset
Value;

(e)           In
lieu of the depreciation, amortization, and other cost recovery deductions
taken into account in computing such taxable income or loss, there shall be
taken into account Depreciation for such Taxable Year, computed in accordance
with the definition of Depreciation;

(f)            To
the extent an adjustment to the adjusted tax basis of any Partnership asset
pursuant to Code Section 734(b) or Code Section 743(b) is required, pursuant to
Regulation Sections 1.704-1(b)(2)(iv)(m)(4) to be taken into account in
determining Capital Accounts as a result of a distribution other than in
liquidation of a Partner’s interest in the Partnership, the amount of such
adjustment shall be treated as an item of gain (if the adjustment increases the
basis of the asset) or loss (if the adjustment decreases such basis) from the
disposition of such asset and shall be taken into account for purposes of
computing Profits or Losses; and

(g)           Profits
and Losses shall not include any items specially allocated pursuant to Section
5.3.

 8
 

“Property”
means all assets, real or intangible, that the Partnership may own or otherwise
have an interest in from time to time.

“Regulations”
means the regulations, including temporary regulations, promulgated by the
United States Department of Treasury with respect to the Code, as such
regulations are amended from time to time, or corresponding provisions of
future regulations.

“Regulatory Allocations”
shall have the meaning set forth in Section 5.3(c).

“Second A&R Limited Partnership Agreement” shall
have the meaning set forth in the recitals hereto.

“Selling Partner”
shall have the meaning set forth in Section 7.8(a).

“Special Disposition” means (i) the
delivery of Contributed Units upon the exercise of an Option when the exercise
price is paid in cash, (ii) the sale of Contributed Units in a “cashless”
exercise of an Option, but only to the extent the proceeds of such sale satisfy
the exercise price, (iii) in the case of the exercise of an Option in which the
exercise price is satisfied by “netting” the units delivered to the optionee,
the sale of Contributed Units equal in number to the netted units, (iv) the
sale of Contributed Units with a value substantially equivalent to the deemed
aggregate exercise price for any Options cancelled and paid in cash, and (iv)
any other disposition of Contributed  Units reasonably
attributable to the payment of the exercise price of an Option.

 “Strome” means Mark E.
Strome.

“Strome Hedgecap” means Strome
Hedgecap Fund, L.P.

“Taxable Year”
shall mean the calendar year.

“Transfer”
or “Transferred”  means
to give, sell, exchange, assign, transfer, pledge, hypothecate, bequeath,
devise or otherwise dispose of or encumber, voluntarily or involuntarily, by
operation of law or otherwise.  When
referring to a Partnership Interest, “Transfer” shall mean the Transfer of such
Partnership Interest whether of record, beneficially, by participation or
otherwise.

“Unit Percentages”
means the Unit Percentages set forth on Schedule I.

“Vested
Unit” means a Class B Unit that constitutes a “Vested Unit”
under the Class B Restricted Unit Agreement pursuant to which such Class B Unit
was issued.

“Wachovia”
means Wachovia Investors, Inc.

 9

ARTICLE
II

Organization

2.1  Formation
of Limited Partnership

The General Partner has previously formed the
Partnership as a limited partnership pursuant to the provisions of the Act and
the parties hereto hereby agree to amend and restate the original Limited
Partnership Agreement of the Partnership in its entirety.  The parties hereto acknowledge that they
intend that the Partnership be taxed as a partnership and not as an association
taxable as a corporation for federal income tax purposes.  No election may be made to treat the
Partnership as other than a partnership for federal income tax purposes.

2.2  Name
of Partnership

The name of the Partnership is Plains AAP, L.P. or such other name as the General Partner may
hereafter adopt from time to time.  The General
Partner shall execute and file in the proper offices such certificates as may
be required by any assumed name act or similar law in effect in the
jurisdictions in which the Partnership may elect to conduct business.

2.3  Principal
Office; Registered Office

The principal office address of the
Partnership is located at 333 Clay Street, 
16th Floor, Houston, Texas 77002, or such other place as the General
Partner designates from time to time. 
The registered office address and the name of the registered agent of
the Partnership for service of process on the Partnership in the State of
Delaware is as stated in the Certificate or as designated from time to time by
the General Partner.

2.4  Term
of Partnership

The term of the Partnership commenced on May 21, 2001
and shall continue until dissolved pursuant to Section 8.1
hereof.  The legal existence of the
Partnership as a separate legal entity continues until the cancellation of the
Certificate.

2.5  Purpose
of Partnership

The Partnership is formed for the object and purpose
of, and the nature of the business to be conducted and promoted by the
Partnership is, (a) acting as the general partner of the Master Limited
Partnership pursuant to the Master Limited Partnership Agreement,
(b) holding the GP Interest, the Incentive Distribution Rights and the
Operating Partnerships GP Interests (as such terms are defined in the Transfer
Agreement) and (c) engaging in any and all activities necessary or
incidental to the foregoing.

2.6  Actions
by Partnership

The Partnership may execute, deliver and perform all
contracts, agreements and other undertakings and engage in all activities and
transactions as may in the opinion of the General Partner be necessary or
advisable to carry out its objects.

 10
 

2.7  Reliance
by Third Parties

Persons dealing with the Partnership are entitled to
rely conclusively upon the power and authority of the General Partner as herein
set forth.

ARTICLE
III

Capital

3.1  Capital
Contributions

(a)   As of the date hereof, there are 2,300,000 Class A Units authorized
and outstanding, and 200,000 Class B Units authorized.  Schedule I sets forth the ownership of
outstanding Class A Units and Unit Percentages, and may be amended from time to
time by the Partnership to reflect the issuance of additional Class A Units or
Class B Units.

(b)   Each Partner agrees to make Capital Contributions in proportion to
such Partner’s then-applicable Contribution Percentage for equity issuances by
the Master Limited Partnership pursuant to Section 5.2(b) of the Master Limited
Partnership Agreement approved by the Members pursuant to the LLC Agreement.

3.2  Additional
Capital Contributions

(a)   No Partner shall be required to make any additional Capital
Contribution other than as required under Section 3.1.

(b)   Subject to the restrictions contained in Section 3.5 of the Class
B Restricted Unit Agreement, the Partnership may offer additional Partnership
Interests to any Person with the approval of the General Partner.   The names, addresses and Capital
Contributions of the Partners shall be reflected in the books and records of
the Partnership.

3.3  Loans

(a)   No Partner shall be obligated to loan funds to the
Partnership.  Loans by a Partner to the
Partnership shall not be considered Capital Contributions.  The amount of any such loan shall be a debt
of the Partnership owed to such Partner in accordance with the terms and
conditions upon which such loan is made.

(b)   A Partner may (but shall not be obligated to) guarantee a
loan made to the Partnership.  If a
Partner guarantees a loan made to the Partnership and is required to make
payment pursuant to such guarantee to the maker of the loan, then the amounts
so paid to the maker of the loan shall be treated as a loan by such Partner to
the Partnership and not as an additional Capital Contribution.

3.4  Maintenance
of Capital Accounts

(a)   The Partnership shall maintain for each Partner a separate Capital
Account with respect to the Partnership Interest owned by such Partner in
accordance with the following provisions:

 11
 

(i)            To each Partner’s Capital Account there shall be credited
(A) such Partner’s Capital Contributions, (B) such Partner’s share of
Profits and items of income and gain allocated to such Partner pursuant to
Section 5.3, and (C) the amount of any Partnership liabilities assumed by
such Partner or which are secured by any Property distributed to such
Partner.  The principal amount of a
promissory note which is not readily traded on an established securities market
and which is contributed to the Partnership by the maker of the note (or a
Partner related to the maker of the note within the meaning of Regulation
Section 1.704-1(b)(2)(ii)(c)) shall not be included in the Capital Account
of any Partner until the Partnership makes a taxable disposition of the note or
until (and only to the extent) principal payments are made on the note,
all in accordance with Regulation Section 1.704-1(b)(2)(iv)(d)(2);

(ii)           To each Partner’s Capital Account there shall be debited
(A) the amount of money and the Gross Asset Value of any Property
distributed or treated as an advance distribution to such Partner pursuant to
any provision of this Agreement (including without limitation any distributions
pursuant to Section 4.1), (B) such Partner’s share of Losses
and items of loss and deduction allocated to such Partner pursuant to Section
5.3, and (C) the amount of any liabilities of such Partner assumed by the
Partnership or which are secured by any Property contributed by such Partner to
the Partnership;

(iii)          In the event Partnership Interests are Transferred in
accordance with the terms of this Agreement, the transferee shall succeed to
the Capital Account of the transferor to the extent such Capital Account
relates to the Transferred Partnership Interests; and

(iv)          In determining the amount of any liability for purposes of Sections 3.4(a)(i)
and (ii) there shall be taken into account Code Section 752(c) and any
other applicable provisions of the Code and Regulations.

(b)   The foregoing Section 3.4(a) and the other provisions of
this Agreement relating to the maintenance of Capital Accounts are intended to
comply with Regulation Section 1.704-1(b) and, to the greatest extent
practicable, shall be interpreted and applied in a manner consistent with such
Regulation.  The General Partner in its
discretion and to the extent otherwise consistent with the terms of this
Agreement shall (i) make any adjustments that are necessary or appropriate
to maintain equality between the Capital Accounts of the Partners and the
amount of capital reflected on the Partnership’s balance sheet, as computed for
book purposes, in accordance with Regulation Section 1.704-1(b)(2)(iv)(q), and
(ii) make any appropriate modifications in the event unanticipated events
might otherwise cause this Agreement not to comply with Regulation Section 1.704-1(b).

3.5  Capital
Withdrawal Rights, Interest and Priority

Except as
expressly provided in this Agreement, no Partner shall be entitled to
(a) withdraw or reduce such Partner’s Capital Contribution or to receive
any distributions from the Partnership, or (b) receive or be credited with
any interest on the balance of such Partner’s Capital Contribution at any time.

 12
 

3.6  Class
B Partners Profits Interests

The Class B Units
have been, and may in the future be, issued for zero consideration in order to
provide additional incentives for the Class B Partners to build value for the
Partnership and achieve its business goals. Each Class B Unit represents an
interest in the Partnership of the nature commonly referred to as a “profits interest” (as described in Revenue Procedure 93-27,
1993-2 C.B. 343 and Revenue Procedure 2001-43, 2001-2 C.B. 191), and represents
an interest in future Partnership profits and losses from operations, current
distributions from operations, and an interest in future appreciation or depreciation
in the Partnership asset values as set forth in this Agreement, but which does
not represent an interest in Partnership Capital as determined on each date the
Class B Units are issued.

ARTICLE
IV

DISTRIBUTIONS

4.1  Distributions
of Available Cash

An amount equal to
100% of Available Cash with respect to each fiscal quarter of the Partnership
shall be distributed to the Partners within forty-five days after the end of
such quarter as follows:

(a)           first, 1% to the General Partner and
99% to the Class A Partners, pro rata based on the number of Class A Units
held, until the aggregate amount of distributions paid pursuant to this Section
4.1(a) in respect of such quarter equals $11.0 million;

(b)           thereafter, 1% to the General Partner
and 99% to the Class A Partners and the Class B Partners, pro rata based on the
number of Class A Units, Earned Units and/or Vested Units held; and

(c)           notwithstanding any other provision
of this Agreement, all distributions of Contributed Units Proceeds shall be
made to the Partners in proportion to their relative Unit Percentages within
forty-five days after the end of each quarter.

4.2  Intentionally
Omitted

4.3  Persons
Entitled to Distributions

All distributions
of Available Cash to Partners for a fiscal quarter pursuant to Section 4.1
shall be made to the Partners shown on the records of the Partnership to be
entitled thereto as of the last day of such quarter, unless the transferor and
transferee of any Partnership Interest otherwise agree in writing to a
different distribution and such distribution is consented to in writing by the
General Partner.  For the avoidance of
doubt, no distribution shall be paid with respect to any outstanding Class B
Unit that is not either an Earned Unit or a Vested Unit.

 13
 

4.4  Limitations
on Distributions

(a)   Notwithstanding any provision of this Agreement to the contrary,
no distributions shall be made except pursuant to Article IV or Article VIII.

(b)   Notwithstanding any provision of this Agreement to the contrary,
no distribution hereunder shall be permitted if such distribution would violate
Section 17-607 of the Act or other applicable law.

ARTICLE V

ALLOCATIONS

5.1  Profits

Subject to Section
8.3, Profits for any Taxable Year shall be allocated:

(a)   first, to the General Partner to which Losses have previously been
allocated pursuant to Section 5.2(e) so as to bring the General Partner’s
Capital Account to zero;

(b)   second, to the Partners in the amount of and in proportion to the
Losses which have previously been allocated pursuant to Section 5.2(d) to such
Partners;

(c)   third, to the Partners in the amount and in proportion to the
Losses which have previously been allocated pursuant to Section 5.2(c) to such
Partners;

(d)   fourth, to the Class B Partners, pro rata based on the number of
Class B Units held, in an amount equal to any distributions of Available Cash
made to the Class B Partners pursuant to Section 4.1(b); and

(e)   fifth, any remaining Profits shall be allocated 1% to the General
Partner and 99% to the Class A Partners pro rata based on the number of Class A
Units held.

5.2  Losses

Subject to Section
8.3, Losses for any Taxable Year shall be allocated:

(a)   first, to the General Partner and the Class A Partners in
proportion to and to the extent of the Profits which have previously been
allocated pursuant to Section 5.1(e) to such Partners;

(b)   second, to the Class B Partners in proportion to and to the extent
of the Profits which have previously been allocated pursuant to Section 5.1(d)
to such Partners;

(c)   third, 1% to the General Partner and 99% to the Class A Partners
pro rata based on the number of Class A Units held, provided; however,
that no Partner shall be allocated any loss pursuant to this
Section 5.2(c) which would result in a negative Capital Account balance
for such Partner;

 14
 

(d)   fourth, to Partners in proportion to and to the extent of their
positive Capital Account balances until such Capital Account balances have been
reduced to zero; and

(e)   fifth, any remaining Losses shall be allocated to the General
Partner.

5.3  Regulatory
Allocations

(a)   Gross Income Allocation. 
In the event any Partner has an Adjusted Capital Account Deficit at the
end of any Taxable Year, such Partner shall be specially allocated items of
Partnership income and gain in the amount of such deficit balance as quickly as
possible; provided, that, an allocation pursuant to this Section 5.3(a)
shall be made only if and to the extent that such Partner would have an
Adjusted Capital Account Deficit balance after all other allocations provided
for in this Article V have been made.

(b)   Qualified Income Offset. 
In the event any Partner unexpectedly receives any adjustments,
allocations or distributions described in Regulation Sections 1.704-1(b)(2)(ii)(d)(4), 1.704-1(b)(2)(ii)(d)(5) or 1.704-1(b)(2)(ii)(d)(6), items of
Partnership income and gain shall be specially allocated to such Partner in an
amount and manner sufficient to eliminate, to the extent required by the
Regulations, the Adjusted Capital Account Deficit of such Partner as quickly as
possible, provided, that, an allocation pursuant to this Section 5.3(b)
shall be made only if and to the extent that such Partner would have an
Adjusted Capital Account Deficit after all other allocations provided for in
this Article V have been made.

(c)   Curative Allocations. 
The allocations set forth in Sections 5.3(a) and (b) hereof
(the “Regulatory Allocations”)
are intended to comply with certain requirements of the Regulations.  It is the intent of the Partners that, to the
extent possible, all Regulatory Allocations shall be offset either with other
Regulatory Allocations or with special allocations of other items of
Partnership income, gain, loss or deduction pursuant to this Section 5.3(c).  Therefore, notwithstanding any other
provision of this Article V (other than the Regulatory
Allocations), the General Partner shall make such offsetting special
allocations of income, gain, loss or deduction in whatever manner it determines
appropriate so that, after such offsetting allocations are made, each Partner’s
Capital Account balance is, to the extent possible, equal to the Capital
Account balance such Partner would have had if the Regulatory Allocations were
not part of this Agreement and all such items were allocated pursuant to Sections 5.1
and 5.2 without regard to the Regulatory Allocations.

(d)   Contributed Units Special Allocations.  Notwithstanding any other provision of this
Agreement, but subject to Section 5.4, all income, gain, loss and
deduction related to the Contributed Units shall be allocated to the Partners
in proportion to their relative Unit Percentages.

5.4  Tax
Allocations: Code Section 704(c)

(a)   Except as otherwise provided herein, for federal income tax
purposes, (i) each item of income, gain, loss and deduction shall be allocated
among the Partners in the same manner as its correlative item of “book” income,
gain, loss or deduction is allocated pursuant to Sections 5.1

 15
 

and 5.2, and (ii) each tax credit shall be
allocated to the Partners in the same manner as the receipt or expenditure
giving rise to such credit is allocated pursuant to Section 5.1 or 5.2.

(b)   In accordance with Code Section 704(c) and the Regulations
thereunder, income, gain, loss and deduction with respect to any Property
contributed to the capital of the Partnership shall, solely for tax purposes,
be allocated among the Partners so as to take account of any variation between
the adjusted basis of such Property to the Partnership for federal income tax
purposes and its initial Gross Asset Value (computed in accordance with the
definition herein of “Gross Asset Value”). 
The Partnership shall use the remedial method of allocations specified
in Treas. Reg. §1.704-3(d), or successor regulations, unless otherwise required
by law.

(c)   In the event the Gross Asset Value of any Partnership asset is
adjusted pursuant to subparagraph (b) of the definition herein of “Gross Asset
Value”, subsequent allocations of income, gain, loss and deduction with respect
to such asset shall take account of any variation between the adjusted basis of
such asset for federal income tax purposes and its Gross Asset Value in the
same manner as under Code Section 704(c) and the Regulations thereunder.

(d)   Any elections or other decisions relating to such allocations
shall be made by the General Partner in any manner that reasonably reflects the
purpose and intention of this Agreement; provided, that the Partnership, in the
discretion of the General Partner, may make, or not make, “curative” or “remedial”
allocations (within the meaning of the Regulations under Code Section 704(c))
including, but not limited to, “curative” allocations which offset the effect
of the “ceiling rule” for a prior Taxable Year (within the meaning of
Regulation Section 1.704-3(c)(3)(ii)) and “curative” allocations from
disposition of contributed property (within the meaning of Regulation Section
1.704-3(c)(3)(iii)(B)).  Allocations
pursuant to this Section 5.4 are solely for purposes of federal, state,
and local taxes and shall not affect, or in any way be taken into account in
computing, any Partner’s Capital Account or share of Profits, Losses, other
items, or distributions pursuant to any provision of this Agreement.

5.5  Change
in Partnership Interest

In the event that
the Partners’ interests in the Partnership change during a Taxable Year,
allocations shall be made taking into account the Partners’ varying interests
for such Taxable Year, determined on a daily, monthly or other basis as
determined by the General Partner, using any permissible method under Code
Section 706 and the Regulations thereunder.

5.6  Withholding

Each Partner
hereby authorizes the Partnership to withhold from income or distributions
allocable to such Partner and to pay over any taxes payable by the Partnership
or any of its Affiliates as a result of such Partner’s participation in the
Partnership; if and to the extent that the Partnership shall be required to
withhold any such taxes, such Partner shall be deemed for all purposes of this
Agreement to have received a distribution from the Partnership as of the time
such withholding is required to be paid, which distribution shall be deemed to
be a distribution to such Partner to the extent that the Partner is then
entitled to receive a distribution.  To
the extent that the aggregate of such distributions in respect of a Partner for
any period exceeds the distributions to which such Partner is entitled for such
period, the amount of such excess shall be

 16
 

considered a demand loan
from the Partnership to such Partner, with interest at the rate of interest per annum that Citibank, N.A., or any
successor entity thereto, announces from time to time as its prime lending
rate, which interest shall be treated as an item of Partnership income, until
discharged by such Partner by repayment, which may be made in the sole discretion
of the General Partner out of distributions to which such Partner would
otherwise be subsequently entitled.  The
withholdings referred to in this Section 5.6 shall be made at the
maximum applicable statutory rate under applicable tax law unless the General
Partner shall have received an opinion of counsel or other evidence,
satisfactory to the General Partner, to the effect that a lower rate is
applicable, or that no withholding is applicable.

ARTICLE
VI

Management

6.1  Duties
and Powers of the General Partner

(a)   The business and affairs of the Partnership shall be managed by
the General Partner.  Except for
situations in which the approval of the Limited Partners is expressly required
by this Agreement or by nonwaivable provisions of applicable law, the General
Partner shall have full and complete authority, power and discretion to manage
and control the business, affairs and property of the Partnership, to make all
decisions regarding those matters and to perform any and all other acts or
activities customary or incident to the management of the Partnership’s
business.  Without limiting the
generality of the foregoing, the General Partner has full power and authority
to execute, deliver and perform such contracts, agreements and other
undertakings on behalf of the Partnership, without the consent or approval of
any other Partner, and to engage in all activities and transactions, as it may
deem necessary or advisable for, or as may be incidental to, the conduct of the
business and affairs of the Partnership.

(b)   Each Limited Partner agrees to cooperate with the General Partner
and to execute and deliver such documents, agreements and instruments, and do
all such further acts, as deemed necessary or advisable by the General Partner
to give effect to the exercise of the General Partner’s powers under this Section
6.1.  Without limiting the foregoing,
each Limited Partner hereby irrevocably appoints the General Partner as its
proxy and attorney-in-fact (with full power of substitution and resubstitution)
to vote or act by written consent with respect to its Partnership Interest as a
Limited Partner as determined by the General Partner on all matters requiring
the vote, approval or consent of the Limited Partners.  The Partners acknowledge that such proxy is
coupled with an interest and is irrevocable.

(c)   The General Partner is the tax matters partner for purposes of
Section 6231 of the Code and analogous provisions of state law.  The tax matters partner has the exclusive
authority and discretion to make any elections required or permitted to be made
by the Partnership under any provisions of the Code or any other applicable
laws.

6.2  No Liability to Limited Partners

Except in case of gross
negligence or willful malfeasance of the person (the General Partner or any of
the Members, managers, directors, officers, agents or employees of the General
Partner) who is sought to be held liable, neither the General Partner nor the
Members, managers, directors,

 17
 

officers, agents or employees of the General
Partner will be liable to any Limited Partner or the Partnership (i) for
any action taken with respect to the Partnership which is not in violation of
the provisions of this Agreement, or (ii) for any action taken by any
Member, manager, director, officer, agent or employee of the General Partner.

6.3  Indemnification of General Partner

The Partnership shall indemnify the General Partner, the members,
managers, directors, officers, agents and employees of the General Partner
against any losses, liabilities, damages and expenses to which any of such
persons may become subject, including attorneys’ fees, judgments and amounts
paid in settlement, actually and reasonably incurred by them, and advance all
expenses to them, in connection with any threatened, pending or completed action,
suit or proceeding to which any of them was or is a party or is threatened to
be made a party by reason of the direct or indirect association by them with
the Partnership to the maximum extent permitted by applicable law.

6.4  Rights
of Limited Partners

The Limited Partners will not be personally liable for
any obligations of the Partnership nor will they have any obligation to make
contributions to the Partnership in excess of their respective Capital
Contributions required under Section 3.1 or have any liability for the
repayment or discharge of the debts and obligations of the Partnership except
to the extent provided herein or as required by law.  The Limited Partners in their capacities as
such shall take no part in the management, control or operation of the
Partnership’s business and shall have no power to bind the Partnership and no
right or authority to act for the Partnership or to vote on matters other than
the matters set forth in this Agreement or as required by applicable law.

6.5  Class
B Partners

  Except as expressly provided in this
Agreement, the Class B Partners, in their capacities as such, shall have no
voting rights or rights to participate in the management of the Partnership.

6.6  Contributed
Units

The General
Partner may in its discretion dispose of any or all of the Contributed Units in
connection with the administration of the Option Plan, including without
limitation any exercise of cancellation of an Option or any termination of the
Plan.  Proceeds of any Special
Disposition shall be distributed in accordance with Section 4.1(c).  Proceeds of any other disposition of
Contributed Units may be disbursed at the discretion of the General Partner.

ARTICLE
VII

Transfers
of Partnership Interests

7.1  Transfer
of Limited Partnership Interests

(a)   No Limited Partner may Transfer all or any part of such Partner’s
Partnership Interest to any Person except (i) to a Permitted Transferee
pursuant to Section 7.2, or (ii) pursuant to the terms of Section
7.8,; provided, however, any such Transfer under (i) or (ii) above shall
comply

 18
 

with the terms of Section 7.1(b).  Any purported Transfer of a Partnership
Interest or a portion thereof in violation of the terms of this Agreement shall
be null and void and of no force and effect. 
Except upon a Transfer of all of a Limited Partner’s Partnership
Interest in accordance with Section 7.1, no Limited Partner shall
have the right to withdraw as a Partner of the Partnership.

(b)   As a condition to a Transfer by a Class A Partner of all or any
part of such Partner’s Partnership Interest to a transferee as permitted under Section
7.1(a)(i) or (ii) (a “Partnership
Transfer”), such Partner shall simultaneously Transfer (the “Membership Transfer”) to
such transferee an amount of such Partner’s Membership Interest equal to:  (i) such Partner’s Membership Interest,
multiplied by (ii) a percentage equal to (1) the portion of such Partner’s
Partnership Interest (as evidenced by Class A Units) to be Transferred to such
transferee, divided by (2) such Partner’s Partnership Interest (as evidenced by
Class A Units) immediately before such Transfer.  Similarly, in connection with any Partnership
Transfer, such Partner shall simultaneously transfer (the “Unit Percentage Transfer”)
a proportionate share of such Partner’s Unit Percentage.  If for any reason the Membership Transfer and
Unit Percentage Transfer does not occur simultaneously with the Partnership
Transfer, then the Partnership Transfer shall be null and void and of no force
and effect.

(c)   Notwithstanding any other provision of this Agreement, no Limited
Partner may pledge, mortgage or otherwise subject its Limited Partnership
Interest to any Encumbrance.

7.2  Permitted
Transferees

(a)   Notwithstanding the provisions of Section 7.8, each Limited
Partner shall, subject to Section 7.1(b), have the right to Transfer
(but not to substitute the transferee as a substitute Partner in such Partner’s
place, except in accordance with Section 7.3), by a written instrument,
all or any part of a Limited Partner’s Partnership Interest to a Permitted
Transferee. Notwithstanding the previous sentence, if the Permitted Transferee
is such because it was an Affiliate of the transferring Limited Partner at the
time of such Transfer or the Transfer was a Permitted Transfer under clause (a)
of the definition herein of “Permitted Transfer” and, at any time after such
Transfer, such Permitted Transferee ceases to be an Affiliate of such Limited
Partner or such Transfer or such Permitted Transferee ceases to qualify under
such clause (a) (a “Non-Qualifying Transferee”),
such Transfer shall be deemed to not be a Permitted Transfer and shall be
subject to Section 7.8.  Pursuant
to Section 7.8, such transferring Limited Partner or such transferring
Limited Partner’s legal representative shall deliver the First Refusal Notice
promptly after the time when such transferee ceases to be an Affiliate of such
transferring Limited Partner or such Transfer or such Permitted Transferee
ceases to qualify under clause (a) of the definition herein of “Permitted Transfer”,
and such transferring Limited Partner shall otherwise comply with the terms of Section
7.8 with respect to such Transfer; provided, that the purchase price for
such Transfer for purposes of Section 7.8 shall be an amount agreed upon
by such transferring Limited Partner and the General Partner or, if such
Limited Partner and the General Partner cannot agree on a price within five (5)
Business Days after delivery of the First Refusal Notice, such price shall be
the fair market value of the Partnership Interest transferred pursuant to the
Transfer as of the date the transferee ceased to be an Affiliate of such
transferring Limited Partner or such Transfer or such Permitted Transferee
ceases to qualify under clause (a) of the definition herein of “Permitted
Transfer” (such date, the “Non-Qualifying
Date”), as

 19
 

determined at the Partnership’s expense by a
nationally recognized investment banking firm mutually selected by such
transferring Limited Partner and the General Partner.  If such transferring Limited Partner and the
General Partner are unable, within ten (10) days after the expiration of such
five (5) Business Day period, to mutually agree upon an investment banking
firm, then each of such transferring Limited Partner and the General Partner
shall choose a nationally recognized investment banking firm and the two
investment banking firms so chosen shall choose a third nationally recognized
investment banking firm which shall determine the fair market value of the
Partnership Interest transferred pursuant to such Transfer at the Partnership’s
expense.  The determination of fair
market value shall be based on the value that a willing buyer with knowledge of
all relevant facts would pay a willing seller for all the outstanding equity
securities of the Partnership in connection with an auction for the Partnership
as a going concern and shall not take into account any acquisitions made by the
Partnership or its Affiliates or any other events subsequent to the
Non-Qualifying Date and shall not be subject to any discount for a sale of a
minority interest.  If such transferring
Limited Partner fails to comply with all the terms of Section 7.8, such
Transfer shall be null and void and of no force and effect.  No Non-Qualifying Transferee shall be
entitled to receive any distributions from the Partnership on or after the
Non-Qualifying Date and any distributions made in respect of the Partnership
Interests on or after the Non-Qualifying Date and held by such Non-Qualifying
Transferee shall be paid to the Limited Partner who transferred such
Partnership Interests or otherwise to the rightful owner thereof as reasonably,
determined by the General Partner.

(b)   Unless and until admitted as a substitute Limited Partner pursuant
to Section 7.3, a transferee of a Limited Partner’s Partnership
Interest, in whole or in part, shall be an assignee with respect to such
Transferred Partnership Interest and shall not be entitled to become, or to
exercise the rights of, a Limited Partner, including the right to vote, the
right to require any information or accounting of the Partnership’s business,
or the right to inspect the Partnership’s books and records.  Such transferee shall only be entitled to
receive, to the extent of the Partnership Interest Transferred to such
transferee, the share of distributions and profits, including distributions
representing the return of Capital Contributions, to which the transferor would
otherwise be entitled with respect to the Transferred Partnership
Interest.  Subject to the provisions of Section
6.1(b), the transferor shall have the right to vote such Transferred
Partnership Interest until the transferee is admitted to the Partnership as a
substitute Limited Partner with respect to the Transferred Partnership
Interest.

7.3  Substitute
Limited Partners

No transferee of all or part of a Limited Partner’s
Partnership Interest shall become a substitute Limited Partner in place of the
transferor unless and until:

(a)   such Transfer is in compliance with the terms of Section 7.1;

(b)   the transferee has executed an instrument in form and substance
reasonably satisfactory to the General Partner accepting and adopting, and
agreeing to be bound by, the terms and provisions of the Certificate and this
Agreement; and

(c)   the transferee has caused to be paid all reasonable expenses of
the Partnership in connection with the admission of the transferee as a
substitute Limited Partner.

 20

Upon satisfaction
of all the foregoing conditions with respect to a particular transferee, the
General Partner shall cause the books and records of the Partnership to reflect
the admission of the transferee as a substitute Limited Partner to the extent of
the Transferred Partnership Interest held by such transferee.

7.4  Effect
of Admission as a Substitute Limited Partner

A transferee who
has become a substitute Limited Partner has, to the extent of the Transferred
Partnership Interest, all the rights, powers and benefits of, and is subject to
the obligations, restrictions and liabilities of a Partner under, the
Certificate, this Agreement and the Act. 
Upon admission of a transferee as a substitute Limited Partner, the
transferor of the Partnership Interest so held by the substitute Limited
Partner shall cease to be a Partner of the Partnership to the extent of such
Transferred Partnership Interest.

7.5  Consent

Each Partner
hereby agrees that upon satisfaction of the terms and conditions of this Article
VII with respect to any proposed Transfer, the transferee may be admitted
as a Partner without any further action by a Partner hereunder.

7.6  No
Dissolution

If a Limited
Partner Transfers all of its Partnership Interest pursuant to this Article
VII and the transferee of such Partnership Interest is admitted as a
Limited Partner pursuant to Section 7.3, such Person shall be admitted
to the Partnership as a Partner effective on the effective date of the Transfer
and the Partnership shall not dissolve pursuant to Section 8.1.

7.7  Additional
Limited Partners

Subject to Section 3.2,
any Person acceptable to the General Partner may become an additional Limited
Partner of the Partnership for such consideration as the General Partner shall
determine, provided that such additional Limited Partner complies with all the
requirements of a transferee under Section 7.3(b) and (c).

7.8  Right
of First Refusal

The Class A
Partners shall have the following right of first refusal:

(a)          If at any time any of
the Class A Partners (a “Selling Partner”) has
received and wishes to accept a bona fide offer
(the “Offer”) for cash from a third party (the “Offeror”) for all or part of
such Selling Partner’s Partnership Interest (and a proportionate amount of such
Selling Partner’s Membership Interest and Unit Percentage in accordance with Section 7.1(b)),
such Selling Partner shall give Notice thereof (the “First
Refusal Notice”)
to each of the other Partners, other than any Non-Purchasing Partners (as
hereinafter defined) and any Class B Partners, and the Partnership.  The First Refusal Notice shall state the
portion of the Selling Partner’s Partnership Interest and Membership Interest
that the Selling Partner wishes to sell (the “Optioned
Interest”),
the price and all other material terms of the Offer, the name of the Offeror,
and certification from the Selling Partner affirming that the Offer is bona fide and that the

 21
 

description thereof is true and correct, and
that the Offeror has stated that it will purchase the Optioned Interest if the
rights of first refusal herein described are not exercised.

(b)         Each of the Class A
Partners other than the Selling Partner, any Non-Purchasing Partner (the “Non-Selling Partners”) shall have the
right exercisable by Notice (an “Acceptance Notice”) given to the
Selling Partner and the Partnership within twenty (20) days after receipt of
the First Refusal Notice, to agree that it will purchase up to 100% of the
Optioned Interest on the terms set forth in the First Refusal Notice; provided,
however, if the Non-Selling Partners in the aggregate desire to purchase more
than 100% of the Optioned Interest, each such Non-Selling Partner’s right to
purchase the Optioned Interest shall be reduced (pro rata based on the
percentage of the Optioned Interest for which such Non-Selling Partner has
exercised its right to purchase hereunder compared to all other Non-Selling
Partners, but not below such Non-Selling Partner’s pro rata share (based on the
number of Class A Units held by such Non-Selling Partner and the aggregate
number of Class A Units held by all Non-Selling Partners who have exercised
their right to purchase) so that such Non-Selling Partners purchase no more
than 100% of the Optioned Interest.  If a
Non-Selling Partner does not submit an Acceptance Notice within the twenty (20)
day period set forth in this Section 7.8(b), such Non-Selling Partner
shall be deemed to have rejected the offer to purchase any portion of the
Optioned Interest.

(c)          If the Non-Selling
Partners do not in the aggregate exercise the right to purchase all of the
Optioned Interest by the expiration of the twenty (20) day period set forth in Section
7.8(b), then any Acceptance Notice shall be void and of no effect, and the
Selling Partner shall be entitled to complete the proposed sale at any time in
the thirty (30) day period commencing on the date of the First Refusal Notice,
but only upon the terms set forth in the First Refusal Notice.  If no such sale is completed in such thirty
(30) day period, the provisions hereof shall apply again to any proposed sale
of the Optioned Interest.

(d)         If any Non-Selling
Partner exercises the right to purchase the Optioned Interest as provided
herein and such Non-Selling Partner(s) have elected to purchase all of the
Optioned Interest, the purchase of such Optioned Interest shall be completed
within the thirty (30) day period commencing on the date of delivery of the
First Refusal Notice on the terms set forth in the First Refusal Notice.  If such Non-Selling Partner does not
consummate the Purchase of such Optioned Interest, (x) the Selling Partner
shall be entitled to all expenses of collection and (y) such Non-Selling
Partner shall be deemed a “Non-Purchasing
Partner” for the duration of this Agreement.

(e)          Notwithstanding anything
in this Agreement to the contrary, no Class B Partner shall have any right to
Transfer any Class B Units or to purchase any Class A Units pursuant to this
Section 7.8.

ARTICLE
VIII

Dissolution
and Liquidation

8.1  Dissolution
of Partnership

(a)          The Partnership shall be
dissolved and its affairs wound up upon the first to occur of the following
events:

 22
 

(i)                                  the written election
of the General Partner, in its sole discretion, to dissolve the Partnership;

(ii)                               the occurrence of any
event that results in the General Partner ceasing to be the general partner of
the Partnership under the Act, provided that the Partnership will not be
dissolved and required to be wound up in connection with any such event if
(A) at the time of the occurrence of such event there is at least one remaining
general partner of the Partnership who is hereby authorized to and does carry
on the business of the Partnership, or (B) within 90 days after the
occurrence of such event, all of the Class A Partners agree in writing to
continue the business of the Partnership and to the appointment, effective as
of the date of such event, if required, of one or more additional general
partners of the Partnership;

(iii)                            the Transfer of all or
substantially all of the assets of the Partnership and the receipt and distribution
of all the proceeds therefrom;

(iv)                           at any time that there are no limited
partners of the Partnership, unless the business of the Partnership is continued in accordance with the Act; and

(v)                              the entry of a decree of
judicial dissolution under Section 17-802 of the Act.

(b)         The withdrawal, death,
dissolution, retirement, resignation, expulsion, liquidation or bankruptcy of a
Partner, the admission to the Partnership of a new General Partner or Limited
Partner, the withdrawal of a Partner from the Partnership, or the transfer by a
Partner of its Partnership Interest to a third party shall not, in and of
itself, cause the Partnership to dissolve.

8.2  Final
Accounting

Upon dissolution
and winding up of the Partnership, an accounting will be made of the accounts
of the Partnership and each Partner and of the Partnership’s assets,
liabilities and operations from the date of the last previous accounting to the
date of such dissolution.

8.3  Distributions
Following Dissolution and Termination

(a)          Liquidating Trustee.  Upon the dissolution of the Partnership, such
party as is designated by the General Partner will act as liquidating trustee
of the Partnership (the “Liquidating Trustee”) and
proceed to wind up the business and affairs of the Partnership in accordance
with the terms of this Agreement and applicable law.  The Liquidating Trustee will use its
reasonable best efforts to sell all Partnership assets (except cash) in the
exercise of its best judgment under the circumstances then presented, that it
deems in the best interest of the Partners. 
The Liquidating Trustee will attempt to convert all assets of the
Partnership to cash so long as it can do so consistently with prudent business
practice.  The Partners and their
respective designees will have the right to purchase any Partnership property
to be sold on liquidation, provided that the terms on which such sale is made
are no less favorable than would otherwise be available from third
parties.  The gains and losses from the
sale of the Partnership

 23
 

assets, together with all other revenue,
income, gain, deduction, expense, loss and credit during the period, will be
allocated in accordance with Article V. 
A reasonable amount of time shall be allowed for the period of winding
up in light of prevailing market conditions and so as to avoid undue loss in
connection with any sale of Partnership assets. 
This Agreement shall remain in full force and effect during the period
of winding up.  In addition, upon request
of the General Partner and if the Liquidating Trustee determines that it would
be imprudent to dispose of any non-cash assets of the Partnership, such assets
may be distributed in kind to the Partners in lieu of cash, proportionately to
their right to receive cash distributions hereunder.

(b)         Accounting.  The Liquidating Trustee will then cause proper
accounting to be made of the Capital Account of each Partner, including
recognition of any unrealized gain or loss on any asset to be distributed in
kind as if such asset had been sold for consideration equal to the fair market
value of the asset at the time of the distribution.

(c)          Liquidating
Distributions.  In settling accounts
after dissolution of the Partnership, the assets of the Partnership shall be
paid to creditors of the Partnership and distributed to the Partners in the
following order:

(i)                               to creditors of the
Partnership (including Partners) in the order of priority as provided by law
whether by payment or the making of reasonable provision for payment thereof,
and in connection therewith there shall be withheld such reasonable reserves
for contingent, conditioned or unconditioned liabilities as the Liquidating
Trustee in its reasonable discretion deems adequate, such reserves (or balances
thereof) to be held and distributed in such manner and at such times as the
Liquidating Trustee, in its discretion, deems reasonably advisable; provided,
however, that such amounts be maintained in a separate bank account and that
any amounts in such bank account remaining after three years be distributed to
the Partners or their successors and assigns as if such amount had been
available for distribution under Section 8.3(c)(ii); and then

(ii)                            (A)  First, an amount equal to Partnership
Capital, 1% to the General Partner and 99% to the Class A Partners pro rata
based on the number of Class A Units held; and

(B)  Second, any
remaining amounts, 1% to the General Partner and 99% to the Class A Partners
and the Class B Partners, pro rata, based on the number of Class A Units,
Earned Units and/or Vested Units held.

(iii)                         Any distribution to the
Partners in liquidation of the Partnership shall be made by the later of the
end of the taxable year in which the liquidation occurs or 90 days after the
date of such liquidation.  For purposes
of the preceding sentence, the term “liquidation” shall have the same meaning
as set forth in Regulation Section 1.704-2(b)(2)(ii) as in effect at such time
and liquidating distributions shall be further deemed to be made pursuant to
this Agreement upon the event of a liquidation as defined in such Regulation
for which no actual liquidation occurs with a deemed recontribution by the

 24
 

Partners of such deemed liquidating distributions to the continuing
Partnership pursuant to this Agreement.

(d)         Profits and Losses
arising from the dissolution and termination of the Partnership shall be
allocated among the Partners so that after such allocations and the other
allocations under this Agreement, to the maximum extent possible, the final
Capital Account balances of the Member are at levels which would permit
liquidating distributions, if made in accordance with such final Capital
Account balances, to be equal to the distributions to be made under Section
8.3(c)(ii).

(e)          No Third Party
Benefit.  The provisions of this
Agreement, including, without limitation, this Section 8.3, are intended
solely to benefit the Partners and, to the fullest extent permitted by law,
shall not be construed as conferring any benefit upon any creditor of the
Partnership, and no such creditor of the Partnership shall be a third-party
beneficiary of this Agreement, and no Partner shall have any duty or obligation
to any creditor of the Partnership to issue any call for capital pursuant to
this Agreement.

8.4  Termination
of the Partnership

The Partnership
shall terminate when all assets of the Partnership, after payment or due
provision for all debts, liabilities and obligations of the Partnership, shall
have been distributed to the Partners in the manner provided for in this Article
VIII, and the Certificate shall have been canceled in the manner required
by the Act.

8.5  No
Action for Dissolution

The Limited Partners acknowledge that
irreparable damage would be done to the goodwill and reputation of the
Partnership if any Limited Partner should bring an action in court to dissolve
the Partnership under circumstances where dissolution is not required by Section
8.1.  Accordingly, except where the
General Partner has failed to cause the liquidation of the Partnership as
required by Section 8.1 and except as specifically provided in Section
17-802, each Limited Partner hereby to the fullest extent permitted by law
waives and renounces his right to initiate legal action to seek dissolution of
the Partnership or to seek the appointment of a receiver or trustee to wind up
the affairs of the Partnership, except in the cases of fraud, violation of law,
bad faith, gross negligence, willful misconduct or willful violation of this
Agreement.

ARTICLE
IX

Accounting;
Books and Records

9.1  Fiscal
Year and Accounting Method

The fiscal year and taxable year of the
Partnership shall be the calendar year. 
The Partnership shall use an accrual method of accounting.

9.2  Books
and Records

The Partnership
shall maintain at its principal office, or such other office as may be
determined by the General Partner, all the following:

 25
 

(a)          A current list of the
full name and last known business or residence address of each Partner,
together with information regarding the amount of cash and a description and
statement of the agreed value of any other property or services contributed by
each Partner and which each Partner has agreed to contribute in the future, and
the date on which each Partner became a Partner of the Partnership;

(b)         A copy of the Certificate
and this Agreement, including any and all amendments to either thereof,
together with executed copies of any powers of attorney pursuant to which the
Certificate, this Agreement, or any amendments have been executed;

(c)          Copies of the
Partnership’s Federal, state, and local income tax or information returns and
reports, if any, which shall be retained for at least six fiscal years;

(d)         The financial statements
of the Partnership; and

(e)          The Partnership’s books
and records.

9.3  Delivery
to Partners; Inspection

Upon the request
of any Limited Partner, for any purpose reasonably related to such Partner’s
interest as a partner of the Partnership, the General Partner shall cause to be
made available to the requesting Partner the information required to be
maintained by clauses (a) through (e) of Section 9.2 and such other
information regarding the business and affairs and financial condition of the
Partnership as any Partner may reasonably request.

9.4  Financial
Statements

The General
Partner shall cause to be prepared for the Partners at least annually, at the
Partnership’s expense, financial statements of the Partnership, and its
subsidiaries, prepared in accordance with generally accepted accounting
principles and audited by a nationally
recognized accounting firm.  The
financial statements so furnished shall include a balance sheet, statement of
income or loss, statement of cash flows, and statement of Partners’
equity.  In addition, the General Partner
shall provide on a timely basis to the Partners monthly and quarterly
financials, statements of cash flow, any available internal budgets or forecast
or other available financial reports, as well as any reports or notices as are
provided by the Partnership, or any of its Subsidiaries to any financial
institution.  The requirements of Section
9.2(d) and this Section 9.4 shall be deemed satisfied so long as (i) the Master
Limited Partnership files annual reports on Form 10-K and quarterly reports on
Form 10-Q, (ii) the Master Limited Partnership files or furnishes “guidance”
8-K’s on a quarterly basis and (iii) the Master Limited Partnership annually
files an 8-K attaching a balance sheet of the Partnership.

9.5  Filings

At the Partnership’s expense, the General Partner
shall cause the income tax returns for the Partnership to be prepared and
timely filed with the appropriate authorities and to have prepared and to
furnish to each Partner such information with respect to the Partnership as is
necessary (or as may be reasonably requested by a Partner) to enable the
Partners to prepare their

 26
 

Federal, state and local
income tax returns.  The General Partner,
at the Partnership’s expense, shall also cause to be prepared and timely filed,
with appropriate Federal, state and local regulatory and administrative bodies,
all reports required to be filed by the Partnership with those entities under
then current applicable laws, rules, and regulations.  The reports shall be prepared on the
accounting or reporting basis required by the regulatory bodies.

9.6  Non-Disclosure

Each Limited
Partner agrees that, except as otherwise consented to by the General Partner in
writing, all non-public and confidential information furnished to it pursuant
to this Agreement will be kept confidential and will not be disclosed by such
Partner, or by any of its agents, representatives, or employees, in any manner
whatsoever, in whole or in part, except that (a) each Partner shall be
permitted to disclose such information to those of its agents, representatives,
and employees who need to be familiar with such information in connection with
such Partner’s investment in the Partnership (collectively, “Representatives”)
and are apprised of the confidential nature of such information, (b) each
Partner shall be permitted to disclose information to the extent required by
law, legal process or regulatory requirements, so long as such Partner shall
have used its reasonable efforts to first afford the Partnership with a
reasonable opportunity to contest the necessity of disclosing such information,
(c) each Partner shall be permitted to disclose such information to possible
purchasers of all or a portion of the Partner’s Partnership Interest, provided
that such prospective purchaser shall execute a suitable confidentiality
agreement in a form approved by the General Partner and containing terms not
less restrictive than the terms set forth herein, and (d) each Partner shall be
permitted to disclose information to the extent necessary for the enforcement
of any right of such Partner arising under this Agreement.  Each Partner shall be responsible for any
breach of this Section 9.6 by any of its Representatives.

ARTICLE X

NON-COMPETITION

10.1  Non-Competition

Each of the
Limited Partners hereby acknowledges that the Partnership and the Master Limited
Partnership operate in a competitive business and compete with other Persons
operating in the midstream segment of the oil and gas industry for acquisition
opportunities.  Each of the Limited
Partners agrees that during the period that it is a Limited Partner, it shall
not, directly or indirectly, use any of the confidential information it
receives as a Limited Partner to compete, or to engage in or become interested
financially in as a principal, employee, partner, shareholder, agent, manager,
owner, advisor, lender, guarantor of any Person that competes in North America with
the business conducted by the General Partner, the Partnership and the Master Limited
Partnership Each of the Limited Partners also acknowledges that EnCap
Investments L.L.C. and Persons that it controls (“EnCap”),
Kayne Anderson Capital Advisors L.P. and its Affiliates (“Kayne Anderson”)
and Wachovia and its affiliates make and manage investments in the energy
industry in the ordinary course of business (such investments “Institutional
Investments”).  The Limited Partners
agree that EnCap, Kayne Anderson and Wachovia and its affiliates may make
Institutional Investments, even if such Institutional Investments are
competitive with the Partnership’s and its Subsidiaries’ business, so long as
such Institutional

 27
 

Investments are not in
violation of the provisions of Section 9.6 or the second sentence of
this Section 10.1 or obligations owed to the Partnership under
applicable law with respect to usurption of an opportunity legally belonging to
the Partnership or its Subsidiaries. 
Each of the Limited Partners confirms that the restrictions in this
Section 10.1 are reasonable and valid and all defenses to the strict
enforcement thereof are hereby waived by each of the Limited Partners.

10.2  Damages

Each of the Limited Partners acknowledges
that damages may not be an adequate compensation for the losses which may be
suffered by the Partnership as a result of the breach by such Limited Partner
of the covenants contained in this Article X and that the Partnership
shall be entitled to seek injunctive relief with respect to any such breach in
lieu of or in addition to any recourse in damages without the posting of a bond
or other security.

10.3  Limitations

In the event that a court of competent
jurisdiction decides that the limitations set forth in Section 10.1
hereof are too broad, such limitations shall be reduced to those limitations
that such court deems reasonable.

ARTICLE
XI

General
Provisions

11.1  Waiver
of Default

No consent or waiver, express or implied, by
the Partnership or a Partner with respect to any breach or default by the
Partnership or a Partner hereunder shall be deemed or construed to be a consent
or waiver with respect to any other breach or default by any party of the same
provision or any other provision of this Agreement.  Failure on the part of the Partnership or a
Partner to complain of any act or failure to act of the Partnership or a
Partner or to declare such party in default shall not be deemed or constitute a
waiver by the Partnership or the Partner of any rights hereunder.

11.2  Amendment
of Partnership Agreement

(a)          Except as otherwise
expressly provided elsewhere in this Agreement, this Agreement shall not be
altered, modified or changed except by an amendment approved by the General
Partner.  Without limiting the generality
of the foregoing, this Agreement may be amended without the consent or approval
of any Limited Partner, including any Class B Partner.

(b)         In addition to any
amendments otherwise authorized herein, the General Partner may make any
amendments to any of the Schedules to this Agreement from time to time to
reflect transfers of Partnership Interests and issuances of additional
Partnership Interests.  Copies of such
amendments shall be delivered to the Partners promptly upon execution thereof.

(c)          The General Partner shall
cause to be prepared and filed any amendment to the Certificate that may be
required to be filed under the Act as a consequence of any amendment to this
Agreement.

 28
 

(d)         Any modification or
amendment to this Agreement or the Certificate made in accordance with this Section
11.2 shall be binding on all Partners.

11.3  No
Third Party Rights

Except as provided in Section 6.2 and Section
6.3, none of the provisions contained in this Agreement shall be for the
benefit of or enforceable by any third parties, including creditors of the
Partnership.

11.4  Severability

In the event any provision of this Agreement is held
to be illegal, invalid or unenforceable to any extent, the legality, validity
and enforceability of the remainder of this Agreement shall not be affected
thereby and shall remain in full force and effect and shall be enforced to the
greatest extent permitted by law.

11.5  Nature
of Interest in the Partnership

A Partner’s Partnership Interest shall be personal
property for all purposes.

11.6  Binding
Agreement

Subject to the restrictions on the
disposition of Partnership Interests herein contained, the provisions of this
Agreement shall be binding upon, and inure to the benefit of, the parties
hereto and their respective heirs, personal representatives, successors and
permitted assigns.

11.7  Headings

The headings of
the sections of this Agreement are for convenience only and shall not be
considered in construing or interpreting any of the terms or provisions hereof.

11.8  Word
Meanings

The words “herein”,
“hereinafter”, “hereof”, and “hereunder” refer to this Agreement as a whole and
not merely to a subdivision in which such words appear unless the context
otherwise requires.  The singular shall
include the plural, and vice versa, unless the context otherwise requires.  Whenever the words “include,” “includes” or “including”
are used in this Agreement, they shall be deemed to be followed by the words “without
limitation”.  When verbs are used as
nouns, the nouns correspond to such verbs and vice-versa.

11.9  Counterparts

This Agreement may
be executed in several counterparts, all of which together shall constitute one
agreement binding on all parties hereto, notwithstanding that all the parties
have not signed the same counterpart.

 29
 

11.10  Entire
Agreement

This Agreement
contains the entire agreement between the parties hereto and thereto and
supersedes all prior writings or agreements with respect to the subject matter
hereof.

11.11  Partition

The Partners agree
that the Property is not and will not be suitable for partition.  Accordingly, each of the Partners hereby
irrevocably waives any and all right such Partner may have to maintain any
action for partition of any of the Property. 
No Partner shall have any right to any specific assets of the Partnership
upon the liquidation of, or any distribution from, the Partnership.

11.12  Governing
Law; Consent to Jurisdiction and Venue

This Agreement
shall be construed according to and governed by the laws of the State of
Delaware without regard to principles of conflict of laws.  The parties hereby submit to the exclusive
jurisdiction and venue of the state courts of Harris County, Texas or to the
Court of Chancery of the State of Delaware and the United States District Court
for the Southern District of Texas and of the United States District Court for
the District of Delaware, as the case may be, and agree that the Partnership or
Partners may, at their option, enforce their rights hereunder in such courts.

SIGNATURE
PAGE

IN WITNESS WHEREOF, the General Partner has executed
this Agreement as of the day and year first above written.

	
   

  	
  GENERAL PARTNER:

  
	
   

  	
   

  
	
   

  	
  PLAINS ALL
  AMERICAN GP LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Tim Moore

  	
   

  
	
   

  	
  Name:

  	
  Tim Moore

  
	
   

  	
  Title:

  	
  Vice President

  

 

 30Exhibit 10.2

PLAINS AAP,
L.P. CLASS B

RESTRICTED UNITS AGREEMENT

This PLAINS AAP, L.P. CLASS B RESTRICTED
UNITS AGREEMENT (this “Agreement”)
is entered into as of August 29, 2007 (the “Grant Date”) by and between PLAINS AAP, L.P., a Delaware limited partnership (the “Partnership”), and                
(“Executive”).

RECITALS:

WHEREAS,
to provide an incentive to Executive to enhance the profitability and growth of
the Partnership and its Affiliates and to encourage Executive to remain
employed by the Partnership or its Affiliates, the Partnership desires to grant
to Executive      Class B Units (the “Granted Units”) on
the Grant Date, which Granted Units shall have such rights, designations and
preferences as are set forth in this Agreement and the Partnership Agreement;

WHEREAS,
as of the date hereof, the Partnership has 2,300,000 Class A Units outstanding
and 200,000 Class B Units authorized for issuance (including the Class B Units
being issued under this Agreement);

WHEREAS,
the Partnership and Executive desire to enter into this Agreement to evidence
certain terms and conditions that relate to the grant, ownership and transfer
of the Granted Units; and

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

ARTICLE 1

DEFINITIONS AND CONSTRUCTION

1.1                               Construction.  Unless the context requires otherwise: (a) the
gender (or lack of gender) of all words used in this Agreement includes the
masculine, feminine, and neuter; (b) references to Sections refer to sections
of this Agreement; (c) references to Exhibits refer to the Exhibits attached to
this Agreement, each of which is made a part hereof for all purposes; (d)
references to money refer to legal currency of the United States of America;
and (e) the word “including” means “including without limitation.”

1.2                               Definitions. 
Capitalized terms used in this Agreement (including Exhibit A attached
hereto) that are not defined in this Section 1.2 or in the body of this
Agreement shall have the meanings given to them in the Partnership Agreement.

“Affiliate” of a person means any
person controlling, controlled by, or under common control with such person.  As used herein, the terms “controlling”,
“controlled  by” and “under  common  control  with” mean
the possession, directly or indirectly, of the power to direct or cause the
direction of management or policies (whether through ownership of securities or
any

partnership
or other ownership interest, by contract or otherwise) of a person.  For the purposes of the preceding sentence,
control shall be deemed to exist when a person possesses, directly or
indirectly, through one or more intermediaries (a) in the case of a
corporation, more than 50% of the outstanding voting securities thereof; (b) in
the case of a limited liability company, partnership, limited partnership or
venture, the right to more than 50% of the voting membership, general partner
or equivalent interest therein; or (c) in the case of any other person, more
than 50% of the economic or beneficial interest therein.

“Applicable Class B Units” means at a
particular time, collectively, the Vested Units and the Earned Units then
outstanding, and the “Earned Units” and “Vested Units” then outstanding under
all Other Class B Restricted Unit Agreements.

“Board” means the Board of Directors
or governing board or committee of the Company.

“Call  Event” means, with respect to an Earned
Unit, the termination of Executive’s employment with the Company and its
Affiliates for any reason (including death or disability) prior to January 1,
2016, other than (i) a termination of employment by Executive for a Good Reason
or (ii) a termination of Executive’s employment by the Company and its
Affiliates other than for Cause.

“Call Option” means the Partnership’s
option to repurchase Earned Units upon or following a Call Event, as provided
in Exhibit A.

“Call Value” of an Earned Unit means:

(a)                                  if neither the Class A Units or
the IPO Entity Class A Units are publicly traded on the date of the Call Event,
the product of (1) the value (in U.S. dollars) of a Class A Unit on the date of
such Call Event that would reasonably be expected to be realized in an open
market sale on arm’s length terms to a person who is not an Affiliate of the
seller or the buyer, having regard to all relevant factors, but without regard
to (x) the availability or lack of availability of a market for such Class A
Units or (y) any minority discount that would otherwise be applicable to such
Class A Units (the “Class A Unit Value”), and (2) the Conversion Factor.

For
purposes of the foregoing, the “Class A Unit Value” shall be determined as
follows:

(i)                                     During the ten-day period
following the date on which a Call Event occurs, upon the request of the
Partnership, Executive and the Partnership shall each submit to the other such
party’s respective written proposal as to the Class A Unit Value.  If the higher proposal is not more than 10%
higher than the lower proposal, then the Class A Unit Value shall be equal to
the average of such proposals.

(ii)                                  In the event that one of the
proposals submitted under clause (i) above is more than 10% higher than the
other proposal, then within ten business days after the submission of such
proposals, the Partnership and Executive shall jointly select and retain a
managing director in an independent nationally

 2
 

recognized investment bank (the “Appraiser”).  In the event that such parties fail to
jointly select the Appraiser within such time period, then at the request of
the Partnership or Executive, the American Arbitration Association shall
provide them with a list of at least five Appraiser candidates and each of the
Partnership and Executive shall be allowed to strike not more than two names
from the list and rank the remaining Appraiser candidates in order of
acceptance within three business days of receipt of the list.  The highest ranking Appraiser candidate who
remains on the list shall serve as the Appraiser.  The Appraiser shall be requested to make his
determination within a period of 30 days after the deadline for submissions to
be made by the Partnership and Executive pursuant to clause (i) above, or as
soon as practicable thereafter.

(iii)                               Within five business days of the
appointment of the Appraiser, each of the Partnership and Executive shall
submit to the Appraiser (A) his or its proposed determination of the Class A
Unit Value provided to the other party pursuant to clause (i) above, (B) a list
of factors that he or it believes to be relevant in the determination of the
Class A Unit Value, and (C) the reasons for that proposed value.  In addition, each of the Partnership and
Executive shall at the same time deliver to the other a copy of any submission
or information supplied by the Partnership and Executive to the Appraiser.

(iv)                              The Appraiser shall then make
his own determination (having requested such further information from the
Partnership, Executive and/or the Company as it shall require) of the Class A
Unit Value.

(v)                                 The Appraiser shall certify to
each of the Partnership, Executive and the Company (A) that, having considered
the respective submissions of the Partnership and Executive, he has made his
own determination of the Class A Unit Value according to the principles of the
definition of Class A Unit Value in this Agreement and (B) the proposed value
of either the Partnership or Executive that he has determined to be closer to
the Class A Unit Value as determined by the Appraiser (the “Closest Value”).  The Closest Value, whether proposed by the
Partnership and Executive, as so certified by the Appraiser shall thereupon be
deemed to be the Class A Unit Value for purposes of this Agreement, unless the
Floor Value, as determined below in item (vii), is higher, in which event the
Floor Value shall be the Class A Unit Value for purposes of this
Agreement.  Notwithstanding anything to
the contrary set forth herein, at any time prior to the Appraiser’s
certification of the Closest Value pursuant to this clause (v), either the
Executive or the Partnership may deliver written notice to the other party
accepting such party’s written proposal as to the Class A Unit Value, and the
value of such party’s proposal shall thereupon be deemed to be the Class A Unit
Value for purposes of this Agreement.

(vi)                              The fees and expenses of the
Appraiser shall be paid by the Partnership. 
The Appraiser shall act as an expert and not as an arbitrator and his
determination shall be final and binding upon the Partnership and Executive in
the

 3
 

absence of manifest error. 
The Appraiser shall have no liability to any of the Partnership,
Executive, the Company in respect of his determination.

(vii)                           The Floor Value shall be equal
to the product of (1) multiplied by (2) where:

(1)                                  is the average of the “trading
multiples” of the five most comparable publicly traded general partner units
(the five most comparable publicly traded general partners units shall be
determined in good faith by the Board). 
A “trading multiple” shall be calculated by dividing (i) the closing
sales price per unit on the Call Event date by (ii) the product of four and the
amount of the most recent quarterly cash distributions made on a per unit basis
on or prior to the Call Event Date;  and

(2)                                  is the most recent quarterly
distribution paid with respect to a Class A Unit on or prior to the Call Event
date, multiplied by four.

(b)                                 if either the Class A Units or
the IPO Entity Class A Units are publicly traded on the date of the Call Event,
the product of (1) the Conversion Factor, and (2) the closing sales price of a
publicly traded Class A Unit (or IPO Entity Class A Unit, as the case may be)
on the Call Event date.

“Capital Call” means the occurrence
of an event that requires the partners to make a cash contribution to the
Partnership pursuant to Section 3.1(b) of the Partnership Agreement.

“Capital Call Amount” means, with
respect to a particular Capital Call, the aggregate amount of the cash
contributions required to be made to the Partnership by its partners in connection
therewith.

“Cause” means the termination of
Executive’s employment with the Partnership and its Affiliates by the Board
upon (i) a finding by the Board that Executive has substantially failed to
perform the duties and responsibilities of his position at an acceptable level
and after written notice specifying such failure in detail and after a
reasonable period under the circumstances (determined by the Board in good
faith) such failure has continued without full correction by Executive, (ii)
Executive’s conviction of or guilty plea to the committing of an act or acts
constituting a felony under the laws of the United States or any state thereof
or any misdemeanor involving moral turpitude or (iii) any action by Executive
involving personal dishonesty, theft or fraud in connection with Executive’s
duties as an employee of the Company or any of its Affiliates.

“Change in Control”
means the determination by the Board that one of the following events has
occurred:

(a)                                  prior to a GP IPO:

(i)                                     the Company ceases to retain
direct or indirect control over the Partnership;

 4
 

(ii)                                  the Persons who own member
interests in the Company on the Grant Date and the respective Affiliates of
such Persons (such owners and Affiliates being referred to as the “Owner
Affiliates”) cease to own directly or indirectly at least 50% of the member
interest of the Company;

(iii)                               a “person” or “group” (as such
terms are used in Sections 13(d) and 14(d) of the Exchange Act) becomes after
the Grant Date the “beneficial owner” (as defined in Rules 13(d)-3 and 13(d)-5
under the Exchange Act), directly or indirectly, of more than 50% of the member
interest of the Company; or

(iv)                              a transfer, sale, exchange or
other disposition in a single transaction or series of transactions (whether by
merger or otherwise) of all or substantially all of the assets of the
Partnership or the MLP to one or more persons who are not Affiliates of the
Partnership, other than a transaction in which the Owner Affiliates become the “beneficial
owners”, directly or indirectly, of more than 50% of the voting power of such
person or persons immediately following such transaction;

provided, however, that no Change of Control shall
be deemed to have occurred in connection with a restructuring or reorganization
related to a GP IPO if the Owner Affiliates retain direct or indirect control
over the IPO Entity and the Company; and

(b)                                 from and after the consummation
of a GP IPO:

(i)                                     the Owner Affiliates cease to
retain direct or indirect control over the IPO Entity or the Partnership;

(ii)
(x)      a “person” or “group” other than
the Owner Affiliates becomes the “beneficial owner” directly or indirectly of
25% or more of the member interest in the general partner of the IPO Entity, and
(y) the member interest beneficially owned by such “person” or “group” exceeds
the aggregate member interest in the general partner of the IPO Entity
beneficially owned, directly or indirectly, by the Owner Affiliates; or

(iii)                               a direct or indirect transfer,
sale, exchange or other disposition in a single transaction or series of
transactions (whether by merger or otherwise) of all or substantially all of
the assets of the IPO Entity or the MLP to one or more persons who are not
Affiliates of the IPO Entity (“third party or parties”), other than a transaction
in which the Owner Affiliates continue to beneficially own, directly or
indirectly, more than 50% of the voting power of such third party or parties
immediately following such transaction.

“Class A Unit” means a Class A common
unit of the Partnership.

“Class B Unit” means a Class B common
unit of the Partnership.

“Company” means Plains All American
GP LLC, a Delaware limited liability company and the general partner of the
Partnership.

 5
 

“Conversion Factor” means, as
of a particular time, a fraction, the numerator of which is the most recent
regular quarterly cash distribution paid with respect to an Earned Unit or
Vested Unit, and the denominator of which is the most recent regular quarterly
cash distribution paid with respect to a Class A Unit or, following a GP IPO,
an IPO Entity Class A Unit.

“Earned Unit” means,
as of any date, a Granted Unit that has become “earned,” as provided in Section
2.2(b), subject to the proviso to Section 2.2(a).

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

“Forfeiture Event” means, with
respect to a Restricted Unit, the termination of Executive’s employment with
the Company and its Affiliates for any reason (including death or disability).

“Good Reason” means any one of the
following acts or omissions by the Partnership or the Company (or any successor
thereto):

(a)                                  any material breach by the
Partnership of this Agreement;

(b)                                 any requirement by the Company
that Executive relocate outside of a radius of 25 miles from the Partnership’s
principal executive offices as of the date hereof;

(c)                                  the failure of any successor to
the Partnership to assume this Agreement;

(d)                                 any material overall reduction
in Executive’s authority, responsibilities, or duties (taking into account
additional authority, responsibilities or duties associated with the overall
growth of the Partnership or MLP or associated with a promotion or lateral
transfer accepted by Executive); or

(e)                                  the assignment to Executive of
any duties materially inconsistent with his then current position, other than
in connection with a promotion or lateral transfer accepted by Executive.

Unless Executive gives written
notice to the Board that an act or omission constitutes Good Reason within 30
days of the date Executive becomes aware of such act or omission, or reasonably
should have become aware of such act or omission, such act or omission shall
not constitute Good Reason.

“GP IPO” means an initial registered
public offering of equity interests in an entity that owns directly or
indirectly at least 75% of the incentive distribution rights issued by the MLP.

“IPO Entity” means,
with respect to a GP IPO,  the entity that is registering its equity interests under the
Securities Act of 1933 in connection with such GP IPO.

“IPO Entity Class A Unit”
means, with respect to a GP IPO,  the equity interests of the IPO Entity that are
sold in such GP IPO.

“MLP” means Plains All American
Pipeline, LP, a Delaware limited partnership.

 6
 

“MLP Quarterly Distribution” means
the amount of the quarterly cash distribution made with respect to a common
unit of the MLP on the relevant quarterly distribution date for the MLP.

“Other Class B Restricted Unit Agreement”
means any Class B Restricted Unit Agreement (other than this Agreement) entered
into between the Partnership and any person on terms that are substantially
similar to those set forth in this Agreement (other than as to (i) the number
of “Granted Units” granted thereunder, which may differ from the number of
Granted Units hereunder, (ii) any date set forth in such agreement, which may
differ from the corresponding date set forth in this Agreement and (iii) the
schedule set forth in Section 2.2(b), which may differ as to “MLP Quarterly
Distribution per MLP Common Unit” and/or “Percentage of Initially Granted Units
that Become Earned Units”), as such agreement may be amended or restated from
time to time.

“Partial Participation GP IPO” means
a GP IPO where less than 100% of the Class A Units are converted into or
exchanged for similar equity interests in the IPO Entity.

“Partnership Agreement” means that certain
Third Amended and Restated Agreement of Limited Partnership of Plains AAP, L.P.
dated as of August 29, 2007, as such agreement may be amended or restated from
time to time.

 “Partnership
Distribution” means the product of
(i) that portion, if any, of the Partnership’s quarterly cash distributions in
excess of $11.0 million, multiplied by (ii) 100% less the percentage (if any)
of any such quarterly distributions payable to GP LLC in accordance with the
Partnership Agreement.

“Profits Percentage” means Executive’s
share of Partnership Distributions calculated, at the time of the Partnership
Distribution, as the percentage obtained by dividing (i) the total number of
Executive’s Earned Units and Vested Units at such time by (ii) the sum of (A)
the number of Class A Units outstanding at such time and (B) the total number
of Applicable Class B Units at such time.

“Restricted Unit”
means, as of any date, a Granted Unit that is not an Earned Unit or a Vested
Unit.

“Surrender  Obligation” means the
obligation to surrender and transfer to the Partnership (i) Restricted Units
upon a Forfeiture Event and (ii) Earned Units upon the exercise of a Call
Option by the Partnership.

 “Transfer” means
any direct or indirect transfer, assignment, sale, gift, pledge, hypothecation
or other encumbrance, or any other disposition (whether voluntary, involuntary
or by operation of law other than to the estate of Executive in the event of
death), of Restricted Units, Earned Units or Vested Units, including derivative
or similar transactions or arrangements whereby a portion or all of the
economic interest in, risk of loss or opportunity for gain with respect to, or
voting or other rights, of such units are transferred or shifted to another
person.

 7
 

“Vested Unit” means (i) an Earned
Unit that is no longer subject to the Partnership’s Call Option or (ii) an
Earned Unit or a Restricted Unit that becomes a “Vested Unit” pursuant to
Section 2.2(c), subject to the proviso to Section 2.2(a).

ARTICLE 2

GRANT; FORFEITURE OF RESTRICTED UNITS AND EARNED UNITS;

DISTRIBUTIONS

2.1                               Grant. 
The
Partnership hereby grants to Executive the Granted Units effective as of the
Grant Date.  Unless Class A Units are
uncertificated, the Partnership shall issue Executive a certificate
representing the Granted Units, and such certificate shall bear such legends as
provided for in the Partnership Agreement and such additional legends as may be
determined by the Board to reflect the Surrender Obligation, the Call Option,
and the other terms and conditions of this Agreement and to comply with
applicable securities laws.  To insure
the availability for delivery of Executive’s Restricted Units upon a Forfeiture
Event, Executive hereby appoints the Secretary of the Company, or any other
person designated by the Partnership as escrow agent, as Executive’s
attorney-in-fact to sell, assign and transfer unto the Partnership such
Restricted Units or Earned Units, if any, and upon execution of this Agreement,
Executive delivers and deposits with the Secretary of the Company, or such
other person designated by the Partnership, the certificates representing the
Granted Units, together with the unit assignment duly endorsed in blank,
attached hereto as Exhibit B.  The
Granted Units and unit assignment shall be held by the Secretary (or any other
person designated by the Partnership as escrow agent) in escrow, pursuant to
the Joint Escrow Instructions of the Partnership and Executive attached as
Exhibit C hereto, until such time as the Surrender Obligation has lapsed with
respect to the Granted Units.  Upon the
lapse of the Surrender Obligation, Earned Units shall become Vested Units.    Once the Surrender Obligation has lapsed
with respect to any Granted Unit, unless Class A Units are uncertificated, the
Partnership shall issue and deliver to Executive a new certificate or
certificates evidencing the ownership of the Vested Units.  Upon issuance of the new certificate
evidencing the ownership of the Vested Units, the certificate deposited with
the escrow agent shall be marked “Exchanged and Cancelled” and returned to the
partnership unit transfer book of the Partnership and the Partnership shall
deliver a replacement certificate to the escrow agent to reflect any remaining
Restricted Units and Earned Units.  Any
new certificate issued to evidence the ownership of Vested Units shall bear
such legends as may be determined by the Board to reflect the terms and
conditions of this Agreement (other than the Surrender Obligation) and the
Partnership Agreement and to comply with applicable securities laws.

 8

2.2                               Forfeitures and Calls of Restricted Units and Earned
Units.

(a)                                  Forfeiture of
Restricted Units.  If a Forfeiture Event occurs, then Executive
shall, for no consideration, automatically forfeit to the Partnership as of the
date such event occurs all then Restricted Units of Executive on such date, and
neither the Executive nor any of his successors, heirs, assigns, or personal
representatives shall thereafter have any further rights or interests in such
Restricted Units or the certificates representing such Restricted Units; provided,
however, if such Forfeiture Event is termination of Executive’s
employment by the Company or any of its Affiliates without Cause, or by
Executive for Good Reason, then for all purposes of this Agreement, such
Forfeiture Event shall be suspended and shall not be deemed to occur until the
180th day after the date of such termination unless, during such 180-day
period, (x) Executive shall breach in any material respect any confidentiality
obligation to the Company or any of its Affiliates or (y) any of the events
described in clause (ii) or (iii) of the definition of “Cause” shall occur, in
which case (1) for all purposes of this Agreement, such Forfeiture Event shall
be deemed to have occurred on the date of such termination (but after giving
effect to any Earned Units becoming Vested Units as a result of such
termination) and (2) any Granted Unit which otherwise would have become an
Earned Unit or a Vested Unit during such suspension period shall be deemed to
be a Restricted Unit for all purposes under this Agreement and, for the
avoidance of doubt, shall (together with all other Restricted Units) be
forfeited to the Partnership, for no consideration, effective as of such date
of termination.

(b)                                 Earned Units.  A percentage of Granted Units shall become
Earned Units in accordance with the following schedule:

	
  MLP Quarterly Distribution

  per MLP Common Unit

  	
   

  	
  Percentage of Initially Granted 

  Units that Become Earned Units

  
	
    Less than $.875

  	
   

  	
  0%

  
	
    $.875, but less than $.9375

  	
   

  	
  25%

  
	
    $.9375, but less than $1.00

  	
   

  	
  50%

  
	
    $1.00, but less than $1.125

  	
   

  	
  75%

  
	
    $1.125 or greater

  	
   

  	
  100%

  

Once
a Granted Unit has become an Earned Unit pursuant to the above schedule, the
Earned Unit shall remain an Earned Unit thereafter until it either becomes a
Vested Unit or is purchased by the Partnership pursuant to the exercise of its
Call Option.

(c)                                  Change in Control.  All Earned Units automatically shall become
Vested Units upon a Change in Control. If prior to the Change in Control 0% of
the Granted Units have become Earned Units, then 25% of the Granted Units
automatically shall become Vested Units upon the Change in Control.   If prior to the Change in Control only 25%
of the Granted Units have become Earned Units, then an additional 25% of the
Granted Units automatically shall become Vested Units upon the Change in
Control.  If prior to the Change in
Control only 50% of the Granted Units have become Earned Units, then an
additional 25% of the Granted Units automatically shall become Vested Units
upon the Change in Control.  If prior to
the Change in Control 75% of the Granted Units have become Earned Units, then
all remaining Granted Units automatically shall become Vested Units upon the
Change in Control.  Unless and except to
the extent specifically provided otherwise by the Partnership upon or in
connection with such

 9
 

Change in
Control, Executive shall, for no consideration, automatically forfeit to the
Partnership as of the date such Change in Control occurs all Restricted Units of
Executive that do not vest upon such Change in Control as provided herein, and
neither Executive nor any of his successors, heirs, assigns, or personal
representatives shall thereafter have any further rights or interests in such
Restricted Units or the certificates representing such Restricted Units.

(d)                                 Purchase of Earned Units.  The Partnership shall have a Call Option with
respect to Earned Units as provided in Section 2 of Exhibit A.

2.3                               Partnership Distributions.  Executive shall not be entitled to, and shall
not receive, any Partnership Distributions with respect to Restricted
Units.  Executive shall be entitled to
receive his Profits Percentage of any Partnership Distributions made as of the
relevant distribution date.  Partnership
Distributions, to the extent payable to Executive with respect to an Earned
Unit or Vested Unit, shall be paid to Executive at the same time that such
Partnership Distributions are paid to holders of Class A Units.

2.4                               Capital Calls.  In
the event of a Capital Call, Executive shall be required to pay to the
Partnership his or her allocable share of the associated Capital Call Amount,
which allocable share shall be determined in accordance with Section 3.1(b) of
the Partnership Agreement.

ARTICLE 3

ACKNOWLEDGEMENT; RESTRICTIONS; ELECTIONS; 

ANTI-DILUTION PROVISIONS

3.1                               Acknowledgment; Conflicts.  Executive agrees
that the Granted Units shall be subject to the Partnership Agreement.  Executive (a) hereby accepts and adopts, and
agrees to be bound by, the terms and provisions of the Certificate of Limited
Partnership of the Partnership filed with the Secretary of State of Delaware,
as amended or restated, and the Partnership Agreement to the same extent as if
Executive had executed the Partnership Agreement and (b) agrees that the
Granted Units shall be bound by the terms and conditions of such agreement,
including, but not limited to, the transfer restrictions, if any, set forth
therein, provided however, that in the
event of any conflict between the provisions of such agreement and the
provisions of this Agreement, the provisions of this Agreement shall govern.

3.2                               Company Acts.  Subject to the anti-dilution provisions set forth
in Section 3.5, the existence of the Restricted Units, Earned Units or Vested
Units shall not affect in any way the right or power of the Board or the
holders of Class A Units to make or authorize any adjustment, recapitalization,
reorganization or other change in the Partnership’s capital structure or its
business, any merger, consolidation, equity exchange or other business
combination of the Partnership with or into any other entity (and, where
necessary or appropriate (as determined by the Board in good faith), the
conversion or exchange of Class A Units and Class B Units into other securities
or interests in the Partnership or any other entity in connection therewith,
provided that the relative economic rights and preferences of the Class A Units
and the Class B Units are affected proportionately, taking into account their
current terms), any issue of debt or equity securities, the dissolution or
liquidation of the Partnership or any sale, lease, exchange or other
disposition of all or any part of its assets or business or any other act or
proceeding.

 10
 

3.3                               Transfer Restrictions; Call Options.  The Restricted Units and Earned Units shall
be subject to the Transfer restrictions, Call Options and other terms and
conditions set forth or described in Exhibit A attached hereto, as
applicable.  Vested Units shall be subject
only to the provisions of Sections 1, 3 and 4 of Exhibit A.  Executive agrees that Executive will, at any
time and from time to time as requested by the Partnership, execute and deliver
to the Partnership such other documents and instruments, if any, as the Board,
in its discretion, may require to evidence Executive’s agreement to be bound by
the terms of Exhibit A.  The terms and
conditions of Exhibit A shall survive the termination of this Agreement.  The restrictions set forth in Exhibit A shall
not apply to the transfer of Restricted Units or Earned Units pursuant to a
plan of reorganization of the Partnership, but the Class A Units, securities or
other property received in exchange therefor shall also become subject to the
Transfer restrictions, Call Options and Surrender Obligation to the same extent
as the Restricted Units, Earned Units and Vested Units exchanged therefor and
the certificates, if any, representing such Class A Units, securities or other
property shall be legended to show such restrictions.

3.4                               Tax Withholding; §83(b) Election.

(a)                                  To the extent that the receipt
of the Restricted Units, Earned Units, Vested Units, the lapse of the Surrender
Obligations, or any other event pursuant to this Agreement results in
compensation income or wages to Executive for federal, state or local tax
purposes, Executive shall deliver to the Partnership at the time of such
receipt, lapse or event, as the case may be, such amount of money as the
Partnership may require to meet its minimum withholding obligation under
applicable tax laws, and if Executive fails to do so, the Partnership is
authorized to withhold from any cash or other remuneration (including
withholding and cancelling any Restricted Units, Earned Units or Vested Units
distributable to Executive under this Agreement) then or thereafter payable to
Executive any tax required to be withheld by reason of such resulting
compensation income or wages.

(b)                                 Within 30 days after the date of
issuance of the Restricted Units, Executive shall make an election authorized
by section 83(b) of the Code with respect to such Restricted Units and
Executive shall submit to the Partnership a copy of the statement filed by
Executive to make such election.  The
form of such election shall be in such form as approved by the Partnership and
delivered to the Executive following the issuance of the Restricted Units.

(c)                                  Executive acknowledges and
agrees that he is not relying upon any written or oral statement or
representation of the Partnership, its Affiliates, or any of their respective
Executives, directors, officers, attorneys or agents regarding the tax effects
associated with the Restricted Units, Earned Units, Vested Units or the
execution of this Agreement.  Executive
acknowledges and agrees that in deciding to enter into this Agreement,
Executive is relying on his own judgment and the judgment of the professionals
of his choice with whom he has consulted.

3.5                               Anti-Dilution Provisions.

(a)                                  If after the date of this
Agreement, the Class A Units shall be changed or proposed to be changed into a
different number or class of units by reason of the occurrence of any
reclassification, recapitalization, split-up, combination, exchange of shares
or similar

 11
 

readjustment,
or a unit dividend thereon shall be paid, appropriate proportional adjustments
shall be made to the Class B Units, as determined by the Board in good
faith.  Notwithstanding the foregoing, no
repurchase of Class A Units for fair value (as determined by the Board in good
faith) shall require any adjustment under this Section 3.5(a).

(b)                                 If the Partnership issues any
additional Class A Units for less than fair value (other than in a transaction
or arrangement described in Section 3.5(a), as to which this Section 3.5(b)
shall not apply), then if the holders of at least 75% of the Applicable Class B
Units outstanding at the time of such issuance object in writing to such
issuance within five business days after written notice of such issuance is
given to the holders of the Applicable Class B Units, appropriate proportional
adjustments shall made to the Class B Units, as determined by the Board in good
faith.  For purposes of the preceding
sentence, the fair value of any Class A Units being issued shall be determined
by the Board in good faith; provided, however, that in connection with any
transaction in which all of the Class A Units are being issued to members of
the Company (or Affiliates thereof), if the holders of at least 75% of the
Applicable Class B Units outstanding at the time of such issuance object in
writing to the Board’s determination of fair value within five business days
after written notice of such issuance is given to the holders of the Applicable
Class B Units, the fair value of such Class A Units shall be determined in the
same manner as the “Class A Unit Value”, except that for these purposes all
references to “Executive” in the definition thereof shall be deemed to be
references to “the holders of the Applicable Class B Units (as a group), acting
at the direction of the holders of at least a majority of the Applicable Class
B Units outstanding at such time”.  The
fair value of any property contributed to the Partnership in respect of the
issuance of any Class A Units shall be as determined by the Board in good
faith; provided, however, that in the event that the Partnership shall issue
any additional Class A Units in respect of the contribution to the Partnership
of any MLP Common Units, the value of such MLP Common Units shall be deemed to
equal the closing price of such MLP Common Units on the date of such
contribution.  No dispute or
determination of fair value under this Section 3.5(b) shall delay the issuance
of any additional Class A Units, it being agreed that the adjustment, if any,
necessitated by the resolution of such dispute or determination of fair value
shall be made retroactive to the date of issuance of such additional Class A
Units.  Notwithstanding anything in this
Agreement to the contrary, this Section 3.5(b) shall not apply from and after
consummation of a GP IPO.

(c)                                  Prior to consummation of a GP
IPO, if the Partnership proposes to issue any partnership interests or other
equity securities other than (i) additional Class B Units (up to an aggregate
number of outstanding Class B Units (including the Class B Units issued
pursuant to this Agreement) that does not exceed the number of Class B Units
authorized in the Partnership Agreement as in effect on the date hereof;
provided that the foregoing limitation shall not apply to additional Class B
Units issued pursuant to Section 3.5(a)), (ii) additional Class A Units issued
in accordance with Section 3.5(b) or (iii) partnership interests or other
equity securities with such rights, powers and preferences as shall be
determined by the Board to be issued in connection with a GP IPO; provided that
in the case of this clause (iii) the Class A Units and Class B Units are
diluted proportionately (based on relative distributions) by such additional
partnership interests or other equity securities, it shall first give written
notice of such proposed issuance to the holders of the Applicable Class B Units
then outstanding.  If the holders of at
least 75% of such Applicable Class B Units object in writing to such issuance
within five business days after such notice is given, then the Partnership
shall not issue such partnership interests or equity

 12
 

securities
unless a substantially contemporaneous pro-rata increase in the Restricted
Units, Earned Units and Vested Units, if any, is made (as determined in good
faith by the Board).  In the absence of
such objection, no such increase shall be required.  Notwithstanding anything in this Agreement to
the contrary, this Section 3.5(c) shall not apply from and after consummation
of a GP IPO.

3.6                               Drag-Along Provisions.

(a)                                  Prior to a GP IPO, in the event
of a sale of all or substantially all of the assets or equity of the
Partnership in a bona fide arms’ length transaction, then the Board shall have
the right to require Executive to transfer all of his Earned Units and Vested
Units (including any Granted Units that vest pursuant to Section 2.2(c) hereof)
in such transaction in exchange for consideration per transferred Class B Unit
that is equal to the Conversion Factor times the consideration to be received
per Class A Unit in such transaction.

(b)                                 Following a GP IPO, in the event
of a sale of all or substantially all of the assets or equity of the IPO
Entity, then the Board shall have the right to require Executive to transfer
all of his Vested Units (including any Granted Units that vest pursuant to
Section 2.2(c) hereof) in such transaction in exchange for consideration per
transferred Class B Unit that is equal to the Conversion Factor times the
consideration to be received per IPO Entity Class A Unit in such transaction.

(c)                                  In connection with any transfer
required pursuant to this Section 3.6, Executive shall deliver the certificates
representing his Class B Units duly endorsed or accompanied by written
instruments of transfer, in form and substance reasonably satisfactory to the
Board, free and clear of any liens, together with any other documents
reasonably required to be executed in connection with such transaction, as
directed by the Board.

(d)                                 Class B Units subject to this
Section 3.6 will be included in a proposed sale pursuant hereto and be subject
to any agreement with the purchaser in such transaction relating thereto, on
the same terms and subject to the same conditions applicable to the Class A
Units or IPO Entity Class A Units, as the case may be.  Such terms and conditions shall be determined
in the sole discretion of the Board, and shall include (i) the consideration to
be paid (including without limitation the form and the aggregate amount
thereof) and (ii) the provision of information, representations, warranties,
covenants and requisite indemnifications; provided, however, that Executive shall not be required to make any
representations and warranties, other than those relating specifically to
Executive’s execution and delivery of any transaction agreement (including
absence of conflicts), and title to the Class B Units, and any indemnification
provided by Executive shall be on a several, not joint, basis and shall be
based on (and shall not exceed) Executive’s pro rata share of the aggregate
consideration paid in such transaction. For purposes of this Section 3.6 “Executive”
includes any Permitted Transferee (as defined in the Partnership Agreement).

 13
 

ARTICLE 4

GENERAL PROVISIONS

4.1                               Notices.  For purposes of this Agreement, notices and
all other communications provided for herein shall be given in the same manner
as indicated in the Partnership Agreement.

4.2                               Employment Relationship.  For purposes of this Agreement (including
Exhibit A attached hereto), Executive shall be considered to be in the
employment of the Partnership as long as Executive remains an employee of an
Affiliate of the Partnership.  Without limiting the scope of the preceding
sentence, it is expressly provided that Executive shall be considered to have
terminated employment with the Partnership at the time the entity or other
organization that employs Executive is no longer an Affiliate of the
Partnership.  Any question as to
whether and when there has been a termination of such employment or
association, and the cause of such termination, shall be determined by the
Board and its determination shall be final.

4.3                               Entire Agreement; Amendment.  This Agreement and the Partnership Agreement
constitute the entire agreement, and supersede all previous agreements and
discussions relating to the same or similar subject matters between Executive
and the Partnership or any Affiliate and constitute the entire agreement
between Executive and the Partnership and any Affiliate with respect to the
subject matter of this Agreement. 
Without limiting the scope of the preceding sentence, except for this
Agreement and the Partnership Agreement, all prior and contemporaneous
understandings and agreements, if any, among the parties hereto relating to the
subject matter hereof are hereby null and void and of no further force and
effect.  Except as provided below, any
modification of this Agreement shall be effective only if it is in writing and
signed by both Executive and the Partnership as authorized by the Board.  Notwithstanding the foregoing, the
Partnership may unilaterally amend this Agreement in any manner that the Board
determines in good faith is necessary or advisable to facilitate the
consummation of a GP IPO, such amendment to become effective on the fifth
business day after the day on which notice thereof is given to the holders of
the Applicable Class B Units then outstanding, unless prior to such fifth
business day, the holders of at least 75% of such Applicable Class B Units
object in writing to such amendment, in which case such proposed amendment
shall not become effective; provided, however, that the holders of the Applicable
Class B Units shall not be entitled to object to any such amendment (and such
amendment shall automatically become effective regardless of any purported
objection by the holders of the Applicable Class B Units) if (i) all Other
Class B Restricted Unit Agreements are amended in substantially the same way,
(ii) the Class A Units and Class B Units are diluted proportionately (based on
relative distributions) by any partnership interests or other equity securities
issued to Persons (other than members of the Company (or Affiliates thereof))
in connection therewith and (iii) immediately after giving effect to the GP
IPO, the economic interest in the Partnership or its successor or assign or (or
the entity the securities or equity interests of which the Class B Units are
converted into or exchanged for) represented by the Class B Units (and/or any
securities or equity interests into which such Class B Units are converted or
exchanged) is not diluted by any partnership interests or other equity
securities issued to members of the Company (or any Affiliate thereof) in
connection therewith.  For the avoidance
of doubt, notwithstanding anything in this Agreement to the contrary, in the
event of a GP IPO, the Board shall be entitled (but not required) to make such
adjustments as the Board shall determine in good faith to be equitable,
including without limitation causing all or a portion of the Class B Units not
to be converted into or exchanged for similar equity interests in

 14
 

the IPO Entity, and to remain outstanding as
Class B Units of the Partnership. 
Notwithstanding anything in this Agreement to the contrary, if the Board
determines that (i) the provisions of section 409A of the Code apply to this
Agreement or the Class B Units and that the terms of this Agreement or such
units do not, in whole or in part, satisfy the requirements of such section, or
(ii) any provision of this Agreement or the effect or operation thereof would
produce material adverse tax consequences to Executive, then the Partnership,
in the sole discretion of the Board, may unilaterally modify this Agreement in
such manner as the Board deems appropriate to comply with such section 409A and
any regulations or guidance issued thereunder or to mitigate or avoid such
adverse tax consequences..

4.4                               Binding Effect.  This Agreement shall be binding upon and inure
to the benefit of any successors to the Partnership and all permitted
transferees of any Transfer made in compliance with Exhibit A and other persons
lawfully claiming under Executive.

4.5                               Governing Law.  This Agreement is governed by and shall be
construed in accordance with the laws of the State of Delaware, excluding any
conflict-of-laws rule or principle that might refer the governance or the
construction of this Agreement to the laws of another jurisdiction.  If any provision of this Agreement or the
application thereof to any person or circumstance is held invalid or
unenforceable to any extent, the remainder of this Agreement and the
application of that provision to other persons or circumstances is not affected
thereby and that provision shall be enforced to the greatest extent permitted
by law.

4.6                               Injunctive Relief.  Executive
acknowledges that a remedy at law for any breach or attempted breach of this
Agreement will be inadequate, agrees that the Partnership may be entitled to
specific performance and injunctive and other equitable relief to be
implemented by a court of competent jurisdiction in case of any such breach or
attempted breach, and further agrees to waive any requirement for the securing
or purchasing of any bond in connection with the obtaining of any such
injunctive or any other equitable relief. 
Executive agrees that the Partnership’s right to injunctive relief will
be in addition to any other rights the Partnership may have.

IN WITNESS WHEREOF,
the undersigned have executed this Agreement effective for all purposes as of
the Grant Date.

	
   

  	
  PLAINS AAP, L.P., by its general partner,

  
	
   

  	
  PLAINS ALL AMERICAN GP LLC

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
  EXECUTIVE

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  [Name]

  	
   

  
						

 

 15

EXHIBIT A TO

RESTRICTED UNITS
AGREEMENT

PROVISIONS
RELATING TO TRANSFERS;

CALL OPTIONS; AND CONVERSIONS

Capitalized
terms used in this Exhibit that are not defined in this Exhibit shall have the
meaning assigned to such terms in the Restricted Units Agreement to which this
Exhibit is attached (the “Agreement”).  Unless the context requires otherwise, all
references in this Exhibit to Sections refer to the Sections of this Exhibit.

1.                                       No
Transfers.  Executive may not Transfer all or any portion
of the Restricted Units or any Earned Units, and any attempted Transfer shall
be, and is hereby declared, null and void for all purposes; provided, however
that Executive shall be entitled to Transfer any Earned Units to a Permitted
Transferee (as defined in the Partnership Agreement), by will or the laws of
descent and distribution, provided that any such permitted Transfer shall be
made in accordance with, and subject to, Section 7.2 of the Partnership
Agreement.  In addition to the other
restrictions set forth herein, each Restricted Unit, Earned Unit and Vested
Unit shall be subject to the restrictions on Transfer (as defined in the
Partnership Agreement) set forth in the Partnership Agreement.

2.                                       Partnership Call Option.  Upon the occurrence of a Call Event, the Partnership,
at its option (exercisable at any time during the 60-day period following the
date of such Call Event or, if later, five business days after receipt of
certification of the Closest Value from the Appraiser under clause (v) of the
definition of “Call Value”), may (but the Partnership shall have no obligation
to) purchase all (or any portion elected by the Partnership in its sole
discretion) of the Earned Units held by Executive (or by Executive’s estate),
for a purchase price per Earned Unit equal to (i) 50% of the Call Value, if the
Call Event occurs before January 1, 2013, and (ii) 75% of such Call Value if
the Call Event occurs after December 31, 2012 and before January 1, 2016.  If the Partnership wishes to exercise the
Call Option granted herein, it must provide written notice within such 60-day
period (or, if later, such five business day period) to Executive (or his
estate) specifying the number of such Earned Units it elects to purchase.  Within 10 days after the exercise of the Call
Option by the Partnership or, if later, within five business days after receipt
of certification of the Closest Value from the Appraiser under clause (v) of
the definition of “Call Value,” the Executive (or estate) shall deliver the
certificates, if any, representing the applicable Earned Units to the
Partnership, duly endorsed and together with appropriate assignment and
transfer instruments, free and clear of all adverse charges, liens, claims and
encumbrances, in consideration for the purchase price specified above paid in
the form of a single, lump sum cash payment from the Partnership.  Delivery of the Earned Units and related
transfer and assignment instruments by the holder shall constitute a
representation to the Partnership that such Earned Units are free and clear of
all adverse charges, liens, claims and encumbrances.  If the Partnership does not timely exercise
its Call Option, the Earned Units shall become Vested Units at the end of the
period for exercising the

Call Option (and, in any event,
no later than     days after the Call Event so long as, in the
event that the Class A Unit Value is to be determined by an Appraiser pursuant
to the definition of Call Value, the Executive has not failed to meet any of
the deadlines applicable to the Executive as part of such determination
process) and shall cease to be subject to this Call Option.

3.                                       Executive
Elective Exchange of Vested Units for IPO Entity Class A Units.

If at any time after December
31, 2015 the IPO Entity Class A Units are publicly-traded, the Executive may,
upon written notice to the Company, request to exchange his Vested Units for
IPO Entity Class A Units.  The Company
will use commercially reasonable efforts to cause such exchange to occur.  The number of IPO Entity Class A Units the
Executive shall receive upon such exchange shall be determined by the Board in
good faith based on the Conversion Factor as applied to the number of Vested
Units being exchanged, with any fractional IPO Entity Class A Unit resulting
being rounded down.

4.                                       Unit
Legend.

(a)                                  In addition to any other legend
that may be required by law, each certificate, if any, for Restricted Units and
Earned Units shall bear a legend in substantially the following form:

THE UNITS REPRESENTED BY
THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED (THE “SECURITIES ACT”), OR ANY STATE SECURITIES LAWS, AND MAY NOT BE
OFFERED OR SOLD UNLESS THEY HAVE BEEN REGISTERED UNDER THE SECURITIES ACT AND
APPLICABLE STATE SECURITIES LAWS OR UNLESS AN EXEMPTION FROM REGISTRATION IS
AVAILABLE (AND IN SUCH CASE, AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO
THE PARTNERSHIP SHALL HAVE BEEN DELIVERED TO THE PARTNERSHIP TO THE EFFECT THAT
SUCH OFFER OR SALE IS NOT REQUIRED TO BE REGISTERED UNDER THE SECURITIES ACT AND
APPLICABLE STATE SECURITIES LAWS).  THE
UNITS REPRESENTED BY THIS CERTIFICATE ARE ALSO SUBJECT TO ADDITIONAL
RESTRICTIONS ON TRANSFER AS SET FORTH IN THE RESTRICTED UNITS AGREEMENT DATED
AS OF AUGUST 29, 2007, AS AMENDED OR RESTATED FROM TIME TO TIME, COPIES OF
WHICH MAY BE OBTAINED UPON REQUEST FROM THE PARTNERSHIP. THE UNITS REPRESENTED
BY THIS CERTIFICATE ARE ALSO SUBJECT

UNDER CERTAIN
CIRCUMSTANCES TO MANDATORY TRANSFER AS SET FORTH IN THE RESTRICTED UNITS
AGREEMENT DATED AS OF AUGUST 29, 2007, AS AMENDED OR RESTATED FROM TIME TO
TIME, COPIES OF WHICH MAY BE OBTAINED UPON REQUEST FROM THE PARTNERSHIP.

(b)                                 In addition to any other legend
that may be required by law, each certificate, if any, for Vested Units shall
bear a legend in substantially the following form:

THE
UNITS REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY STATE
SECURITIES LAWS, AND MAY NOT BE OFFERED OR SOLD UNLESS THEY HAVE BEEN
REGISTERED UNDER THE SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS OR
UNLESS AN EXEMPTION FROM REGISTRATION IS AVAILABLE (AND IN SUCH CASE, AN
OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE PARTNERSHIP SHALL HAVE BEEN
DELIVERED TO THE PARTNERSHIP TO THE EFFECT THAT SUCH OFFER OR SALE IS NOT
REQUIRED TO BE REGISTERED UNDER THE SECURITIES ACT AND APPLICABLE STATE
SECURITIES LAWS). THE UNITS REPRESENTED BY THIS CERTIFICATE ARE ALSO SUBJECT
UNDER CERTAIN CIRCUMSTANCES TO MANDATORY TRANSFER AS SET FORTH IN THE
RESTRICTED UNITS AGREEMENT DATED AS OF AUGUST 29, 2007, AS AMENDED OR RESTATED
FROM TIME TO TIME, COPIES OF WHICH MAY BE OBTAINED UPON REQUEST FROM THE
PARTNERSHIP.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00129-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00129-of-00352.parquet"}]]