Document:

EXHIBIT 10.2

 

Executive
Officer Form

 

«GrantDate»

 

 

«FirstName»«LastName»

«Address1»

«City»,
«State» «PostalCode»

 

Re:                               Grant of Restricted
Units

 

Dear «FirstName»:

 

I am pleased to inform you that you have been granted «Units» Phantom Units as of the above date
pursuant to the Company’s 2005 Long-Term Incentive Plan (the “Plan”).  In addition, in tandem with each Phantom Unit
you have been granted a distribution equivalent right (a “DER”). The terms and
conditions of this grant are as set forth below.

 

1.                       Subject to
the further provisions of this Agreement, your Phantom Units shall vest (become
payable in the form of one Common Unit of Plains All American Pipeline, L.P.
for each Phantom Unit) as follows: (i) 40% shall vest upon the later to occur
of the May 2007 Distribution Date and the date on which the Partnership pays a
quarterly dividend of $0.65 per unit, (ii) 30% shall vest upon the later to
occur of the May 2009 Distribution Date and the date on which the Partnership
pays a quarterly distribution of $0.70 per unit, and (iii) 30% shall vest upon
the later to occur of the May 2010 Distribution Date and the date on which the
Partnership pays a quarterly distribution of $0.75 per unit.  Any remaining Phantom Units that are not
vested by the sixth anniversary of the grant date shall vest on the May 2011
Distribution Date.

 

2.                       Subject to
the further provisions of this Agreement, your DERs shall vest (become payable
in cash) as follows: (i) 40% shall vest upon and effective with the earlier to
occur of the May 2007 Distribution Date and the date on which the Partnership
pays a quarterly dividend of $0.65 per unit, (ii) 15% shall vest upon and
effective with the earlier to occur of the May 2008 Distribution Date and the
date on which the Partnership pays a quarterly distribution of $0.675 per unit,
(iii) 15% shall vest upon and effective with the earlier to occur of the May
2009 Distribution Date and the date on which the Partnership pays a quarterly
distribution of $0.70 per unit, (iv) 15% shall vest upon and effective with the
earlier to occur of the May 2010 Distribution Date and the date on which the
Partnership pays a quarterly distribution of $.725 per unit, and (iv) 15% shall
vest upon and effective with the earlier to occur of the May 2010 Distribution Date
and the date on which the Partnership pays a quarterly distribution of $0.75
per unit.

 

 

3.                       Your DERs
shall not accrue payments prior to vesting.

 

4.                       Any
distribution level required for vesting under paragraphs 1 or 2 above shall be
proportionately reduced or increased for any split or reverse split,
respectively, of the Units, or any event or transaction having similar effect.

 

5.                       Upon
vesting of any Phantom Units, an equivalent number of DERs will expire.  Any such DERs that are vested prior to, or that
would vest as of, the Distribution Date on which the Phantom Units vest, shall
be payable on such Distribution Date prior to their expiration.

 

6.                       In the
event of the termination of your employment with the Company and its Affiliates
(other than in connection with a Change in Status or by reason of your death or
“disability,” as defined in paragraph 7 below), all of your then outstanding
DERs (regardless of vesting) and Phantom Units shall automatically be forfeited
as of the date of termination; provided, however, that if the Company or
its Affiliates terminate your employment other than a Termination for Cause,
any unvested Phantom Units that have satisfied all vesting criteria as of the
date of termination but for the passage of time shall be deemed nonforfeitable
on the date of termination, and shall vest on the next following Distribution
Date; provided, further, that any DERs associated with the unvested,
nonforfeitable Phantom Units described in the preceding proviso shall not be
forfeited on the date of termination, but shall be payable and shall expire in
accordance with paragraph 5 above.

 

7.                       In the
event of termination of your employment with the Company and its Affiliates by
reason of your death or your “disability” (a physical or mental infirmity that
impairs your ability substantially to perform your duties for a period of
eighteen months or that the Company otherwise determines constitutes a “disability”),
all of your then outstanding Phantom Units and tandem DERs shall be deemed 100%
nonforfeitable on such date, and such Phantom Units shall vest in accordance
with paragraph 1 (other than the last sentence thereof) and paragraph 2 above.

 

8.                       In the
event of a Change of Status, all of your then outstanding Phantom Units and
tandem DERs shall be deemed 100% nonforfeitable on such date, and such Phantom
Units shall vest in full upon the next Distribution Date.

 

9.                       Upon
payment pursuant to a DER, you agree that the Company may withhold any taxes
due from your compensation as required by law. 
Upon vesting of a Phantom Unit, you agree that the Company may withhold
any taxes due from your compensation as required by law, which (in the sole
discretion of the Company) may include withholding a number of Common Units
otherwise payable to you.

 

As used herein, the phrase “Distribution Date” means the date, in any
given month and year, on which the Partnership pays a quarterly distribution.

 

 

The phrase “Change in Status” means the occurrence, within three months
prior to or one year following a Change of Control, of any of the following
circumstances:  (A) any termination by
the Company of your employment other than a Termination for Cause, (B) without
your consent, any removal of you from, or any failure to re-elect you to, the
positions held by you  (or substantially
equivalent positions) immediately prior to the change that may constitute a
Change in Status, or (C) any reduction in your base salary or (D) any material
reduction in your fringe benefits.

 

The phrase “Change of Control” means, and shall be deemed to have
occurred upon the occurrence of, one or more of the following events:  (i) any sale, lease, exchange or other
transfer (in one transaction or a series of related transactions) of all or
substantially all of the assets of the Partnership or the Company to any Person
and/or its Affiliates, other than to the Partnership or the Company, including
any employee benefit plan thereof; (ii) the consolidation, reorganization,
merger or any other similar transaction involving (a) a Person other than the
Partnership or the Company and (b) the Partnership, the Company or both, (iii)
any person, including any partnership, limited partnership, syndicate or other
group deemed a “person” for purposes of Section 13(d) or 14(d) of the
Securities Exchange Act of 1934, as amended, becoming the beneficial owner,
directly or indirectly, of 50% or more of the membership interest in the
Company, (iv) the persons who own membership interests in the Company on the
date hereof cease to beneficially own, directly or indirectly, more than 50% of
the membership interest in the Company, or (v) the Company ceasing to be the
general partner of the general partner of the Partnership.

 

The phrase “Termination for Cause” shall mean severance of your
employment with the Company or its Affiliates based on your (i) failure to
perform your job function in accordance with standards described to you in
writing, or (ii) violation of the Company’s Code of Business Conduct (unless
waived in accordance with the terms thereof), in each case, with the specific
failure or violation described to you in writing.

 

The “Company” refers to Plains All American GP LLC.  The “Partnership” refers to Plains All
American Pipeline, L.P.

 

Terms used
herein that are not defined herein shall have the meanings set forth in the
Plan or, if not defined in the Plan, in the Third Amended and Restated
Agreement of Limited Partnership of Plains All American Pipeline, L.P., as
amended (the “Partnership Agreement”). By signing below, you agree that the
Phantom Units and DERs granted hereunder are governed by the terms of the
Plan.  Copies of the Plan and the
Partnership Agreement are available upon request.  Please execute and return this Agreement to
me.  The attached copy of this Agreement
is for your records.

 

 

	
   

  	
  PLAINS AAP,
  L.P.

  
	
   

  	
   

  
	
   

  	
  By: PLAINS
  ALL AMERICAN GP LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
  Tim Moore

  	
   

  
	
   

  	
  Title:

  	
  Vice
  President & General Counsel

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  «FirstName»

  	
   

  
	
   

  	
   

  
	
  SSN:

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
  Dated:EXHIBIT 10.3

 

INDEPENDENT
DIRECTOR

 

«GrantDate»

 

«FirstName»«LastName»

«Address1»

«City»,
«State» «PostalCode»

 

Re:         Grant of
Restricted Units

 

Dear «FirstName»:

 

I am pleased
to inform you that your existing grant (the “Prior Grant”) of Restricted Units
under the Company’s 1998 Long-Term Incentive Plan (the “Plan”) is hereby
supplemented with an additional grant of 3750 Restricted Units (5000
total).  The terms and conditions of this
grant are as set forth below.

 

1.                       Subject to the further provisions
of this Agreement, your Restricted Units shall vest (become payable in the form
of one Common Unit of Plains All American Pipeline, L.P. for each Restricted
Unit) as follows: 1250 Restricted Units shall vest in accordance with the Prior
Grant; thereafter, 1250 units will vest annually on the [month] Distribution
Date.

 

2.                       As of each vesting date, for so
long as your service on the Board of Directors is not terminated, you shall
automatically receive a grant, evidenced hereby, of an additional 1250 Restricted
Units, such that the total outstanding Restricted Units granted by this letter
shall remain 5000.

 

3.                       In the event that (i) you
voluntarily terminate your service on the Board of Directors (other than for
Retirement) or (ii) your service on the Board of Directors is terminated by the
Members for Good Cause, all unvested Restricted Units shall be forfeited as of
the date service terminates.  All
unvested Restricted Units shall also be forfeited upon any intentional change
in status that compromises your classification as an “independent director” as
such phrase is used in applicable NYSE listing requirements and the Partnership
Agreement (as defined below).  Examples
of intentional change in status would include accepting a position as an
officer of a company with which the Partnership conducts business in amounts
that exceed NYSE tests for independence or purchasing an interest in the
Partnership’s general partner.  Examples
that would not involve an intentional change in status would include a change
in the applicable rules that results in a change of status.

 

 

4.                       In the event your service on the
Board of Directors is terminated for any reason other than as described in
paragraph 3 above, including without limitation because of your death,
disability (as determined in good faith by the Board) or Retirement, all
unvested Restricted Units shall immediately become nonforfeitable, and shall
vest in full as of the next vesting date.

 

5.                       In the event of a vesting under
paragraph 4 above, the provisions of paragraph 2 above shall no longer be
operative.

 

For the purposes of this Agreement, the Members shall have “Good Cause”
to remove or fail to reelect you as a Director only upon (i) your willful
engaging in gross misconduct, including without limitation any willful breach
of your fiduciary duties, (ii) your violation of the Company’s Code of Business
Conduct (unless waived in accordance with the terms thereof), or (iii) your
nonappealable conviction of a felony involving moral turpitude.  For purposes of this paragraph, no act, or
failure to act, on your part shall be considered “willful” unless done, or
omitted to be done, by you not in good faith and without reasonable belief that
your act or omission was in the best interest of the Company or the Partnership
or otherwise likely to result in no material injury thereto.  Notwithstanding the foregoing, any removal of
or failure to reelect you shall not be deemed to have been for Good Cause
unless and until you receive a copy of a resolution, duly adopted by the affirmative
vote of the Board of Directors at a meeting duly called and held for that
purpose, finding that in the good faith opinion of the Board of Directors, “Good
Cause” exists as described above in clause (i), (ii) or (iii) and specifying
the particulars thereof in detail.

 

As used
herein, the phrase “Distribution Date” means the date, in any given month and
year, on which the Partnership pays a quarterly distribution.  The “Company” refers to Plains All American
GP LLC.  The “Partnership” refers to Plains
All American Pipeline, L.P.  The term “Retirement”
means you no longer serve as an officer or director of any public company and
have retired from full-time employment. 
The term “Members” means the owners of the Company in their capacity as
members thereof.

 

Terms used
herein that are not defined herein shall have the meanings set forth in the
Plan or, if not defined in the Plan, in the Third Amended and Restated
Agreement of Limited Partnership of Plains All American Pipeline, L.P., as
amended (the “Partnership Agreement”). By signing below, you agree that the
Restricted Units granted hereunder are governed by the terms of the Plan.   Copies of the Plan and the Partnership
Agreement are available upon request. 
Please execute and return this Agreement to me.  The attached copy of this Agreement is for
your records.

 

 

	
   

  	
  PLAINS AAP,
  L.P.

  
	
   

  	
   

  
	
   

  	
  By: PLAINS
  ALL AMERICAN GP LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
  Tim Moore

  
	
   

  	
  Title:

  	
  Vice
  President & General Counsel

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  «FirstName» «LastName»

  	
   

  
	
   

  	
   

  
	
  SSN:

  	
  «SSN»

  	
   

  	
   

  
	
   

  	
   

  
	
  Dated:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00078-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00078-of-00352.parquet"}]]