Document:

Exhibit
10.1

 

  TETRA TECH, INC.

 

 

EXECUTIVE COMPENSATION POLICY

 

 

 

	
  Approved as amended November 13, 2006

  	
  Board of Directors

  
	
  Document Owner:

  	
  Board of Directors

  

Tetra Tech Confidential

 1
 

 

 

TABLE OF CONTENTS

	
  Section

  	
   

  	
   

  
	
  1.0

  	
   

  	
  PURPOSE

  
	
  2.0

  	
   

  	
  PHILOSOPHY

  
	
  3.0

  	
   

  	
  SCOPE

  
	
  4.0

  	
   

  	
  ROLES AND RESPONSIBILITIES

  
	
  5.0

  	
   

  	
  EXECUTIVE COMPENSATION COMPONENTS AND PLAN

  
	
  6.0

  	
   

  	
  PROCESS FLOW/SCHEDULE

  
	
  7.0

  	
   

  	
  APPENDIX I — EXAMPLES (ANNUAL INCENTIVE BONUS)

  
	
  8.0

  	
   

  	
  APPENDIX II — RESTRICTED STOCK PLAN SUMMARY AND
  EXAMPLES

  
	
  9.0

  	
   

  	
  APPENDIX III — TIMING OF EXECUTIVE EQUITY AWARDS

  

 

 2
 

 

1.0                               PURPOSE

The purpose of this
document is to define the executive compensation policy for Tetra Tech, Inc.

2.0                               PHILOSOPHY

Tetra Tech’s executive
compensation program is designed to:

·                  Align the interests of executive
officers with those of the stockholders;

·                  Attract, motivate, reward, and retain
top level executives upon whom, in large part, the success of the Company
depends;

·                  Be competitive with compensation
programs for companies of similar size and complexity with whom the Company
competes for executive talent, including direct competitors;

·                  Provide compensation based upon the
short-term and long-term performance of both the individual executive and the
Company; and

·                  Strengthen
the relationship between pay and performance by emphasizing variable, at-risk
compensation that is dependent upon the successful achievement of specified
corporate and individual goals.

3.0                               SCOPE

This policy applies to
all executive officers of Tetra Tech, Inc.

4.0                               ROLES
AND RESPONSIBILITIES

Board of
Directors

·                  Approves
this Executive Compensation Policy

·                  Delegates
authority as specified in this policy to the Compensation Committee

·                  Approves
positions to be covered by this policy as recommended by the CEO.

Compensation
Committee

·                  Under delegated authority from the
Board of Directors, develops, administers, and monitors executive compensation
in the long-term interests of the Company and its stockholders;

·                  Evaluates the performance of the Chairman
and the CEO, and establishes the compensation of the Chairman and the CEO;

·                  Establishes the compensation of all
executive officers of the Company based, in part, on the CEO’s recommendations;
and

·                  Determines that performance goals
have been attained before payment.

·                  Reserves
the right to approve exceptions to this policy as recommended by the Chairman
and the CEO

 3
 

 

Audit Committee

·                  Jointly
with the Compensation Committee determines the individual performance factor
for the CFO position.

Chief Executive Officer

·                  Reviews the performance of all other
officers of the Company, and, in consultation with the Chairman, makes specific
recommendations to the Compensation Committee in regard to their compensation;
and

·                  Develops
performance targets for all other executive officers and, in consultation with
the Chairman, recommends those performance targets to the Compensation
Committee.

Human Resources

·                  Acquires information regarding peer
group and other competitor pay practices, and provides analysis of this information
to the CEO, the Chairman, and the Compensation Committee; and

·                  Provides
compensation practice trend data to the CEO, the Chairman, and the Compensation
Committee.

Finance and Accounting

·                  Provides Corporate performance data
for use in determining the degree to which certain performance objectives have
been met; and

·                  Assures
payments have been properly accrued and reported.

5.0                               EXECUTIVE
COMPENSATION COMPONENTS AND PLAN

The primary components of
compensation for executive officers are base salary, annual performance
bonuses, and long-term incentive compensation.

5.1                               Base
Salary

Base salaries for
executive officers are reviewed on an annual basis to ensure internal equity
and external competitiveness.  Salaries
are reviewed to determine whether the base compensation is within a reasonable
range of executive pay levels at other companies that potentially compete with
the Company for business and executive talent. 
Total compensation is considered during this analysis.  Consideration is given to individual
performance, experience and time in the position, initiative, contribution to
overall corporate performance, and salaries paid to other executives in the
Company.  The review and determination
occur as shown in Section 6.0.

5.2                               Annual
Performance Bonuses

This component is
intended to promote the interests of the Company by providing both an incentive
and a financial reward for key employees who contribute most to the operating
results

 4
 

 

and growth of the
Company.  Each year the Company
identifies a target amount of incentive compensation for each executive
officer.  This target is expressed as a
percentage of base salary.

Bonuses are paid based
upon meeting pre-determined performance criteria.  These criteria fall into two categories:  (1) overall corporate performance, designated
the Corporate Performance Factor (CPF), based on assessment of how the overall
Company did in achieving its key objectives and (2) individual contribution,
designated the Individual Factor (IF), based on individual performance.  The CPF determined by the Compensation
Committee shall have a range of 0 to 1.4 with a target of 1.0 based on
achievement of key objectives.  The CPF
for group executives will be determined by the CEO/COO based on the
contribution of the specific group to the Company.  The IF shall have a range of 0 to 1.2 with a
target of 1.0 for expected contribution level. 
The IF will be recommended by the CEO/COO and approved by the Compensation
Committee with the exception of the Chairman, CEO/COO, and CFO positions.  The IF for the Chairman will be determined by
the Compensation Committee.  The IF for
the CEO/COO will be recommended by the Chairman and determined by the
Compensation Committee.  The IF for the
CFO will be recommended by the CEO/COO and determined jointly by the Audit
Committee and Compensation Committee, giving strong consideration to the Audit
Committee’s assessment of the strength of the Company’s internal financial
controls and the accuracy and appropriateness of its financial reporting.

Target bonus amounts as a
percentage of base salary are as follows:

	
  TARGET BONUS AMOUNTS

  
	
  POSITION

  	
   

  	
  PERCENTAGE (%)

  
	
  Chairman

  	
   

  	
  100

  
	
  Chief Executive
  Officer/COO

  	
   

  	
  75

  
	
  President

  	
   

  	
  55

  
	
  Chief Financial
  Officer

  	
   

  	
  55

  
	
  Other Executive
  Officers

  	
   

  	
  40

  

 

Each Officer is eligible to
receive an annual bonus in the range of 0% to 168% of target, i.e., CPF (1.4) x
IF (1.2) = 1.68 (168%) x target

	
  MINIMUM/MAXIMUM OF BASE

  
	
  POSITION

  	
   

  	
  TARGET PERCENTAGE

  (%)

  	
   

  	
  MINIMUM (%)

  	
   

  	
  MAXIMUM (%)

  
	
  Chairman

  	
   

  	
  100

  	
   

  	
  0

  	
   

  	
  168

  
	
  Chief Executive
  Officer/COO

  	
   

  	
  75

  	
   

  	
  0

  	
   

  	
  126

  
	
  President

  	
   

  	
  55

  	
   

  	
  0

  	
   

  	
  92.4

  
	
  Chief Financial
  Officer

  	
   

  	
  55

  	
   

  	
  0

  	
   

  	
  92.4

  
	
  Other Executive
  Officers

  	
   

  	
  40

  	
   

  	
  0

  	
   

  	
  67.2

  

 

 5
 

 

The Compensation
Committee reserves the right to “zero” the CPF if results are significantly
below expected targets or a manageable event negatively and severely impacts
stockholder value.  The minimum
performance threshold is .6; achievement of less than 60% in either the CPF or
IF will result in the elimination of the bonus paid.  Notwithstanding the above, the Compensation
Committee, in consultation with the Chairman and the CEO, reserve the
discretion to adjust specific performance bonus amounts when deemed to be in
the interests of the stockholders.  Bonus
payments are made by December 15 of each year, based upon performance in the
recently concluded fiscal year.

5.3          Long-Term Incentive Compensation

Long-term incentive awards are designed to:

·                  Reward financial performance and
encourage recipients to achieve long term sustained growth of stockholder
value.  The long-term incentive
compensation program encourages executives to maintain a long-term financial
perspective by linking a substantial portion of their compensation to
stockholder returns and the Company’s long-term financial success;

·                  Aid in the retention of key
executives;

·                  Balance the effect of market dynamics
on equity compensation;

·                  Take into consideration the effect of
FASB 123 impact on Company performance; and

·                  Foster
executive officer stock ownership.

Long-term incentives are
generally provided in the form of equity compensation, such as stock options
and/or other equity related programs. 
However, the Compensation Committee reserves the right to utilize
deferred cash incentives if beneficial to the interests of the Company and its
stockholders.  Long-term incentive awards
may have certain restrictions, such as mandatory vesting periods which
encourage participating executives to continue in the Company’s employ and
thereby act as a retention incentive.

Any equity compensation
shall be in accordance with the provisions and limitations of the equity
incentive plan periodically adopted by the Board of Directors and approved by
the stockholders.  The schedule for
distribution of long term-incentives is shown in Section 6.

In addition to the above, the following guidelines will apply to the
long-term incentive plan:

·                  A maximum of 2% of outstanding shares
of stock and/or options will be distributed in any one year period.  The Compensation Committee retains the
discretion to increase this amount due to special circumstances, such as an acquisition.

·                  A
reserve of at least 10% of the shares available for distribution each year will
be held outside the normal distribution for special needs (i.e., hiring,
retention, etc.) that occur during the year.

 

 6

 

·                  All
restricted stock grants shall be approved by the Compensation Committee.  Restricted stock will typically not be
granted to executives who are not Section 16B Officers.  Restricted stock grants will generally vest
over a minimum of a three year period. 
Vesting will primarily be performance-based.  The mix of awards will be approximately 2/3
stock options and 1/3 restricted stock. 
Each share of restricted stock will be considered equivalent to 2.5
stock options.

Example:  The normal grant is 15,000 stock
options.  On a converted basis, using the
2/3 options and 1/3 restricted stock mix; the award would be approximately
2,000 shares of restricted stock and 10,000 stock options.

·                  No more than 0.9% of the outstanding
shares of stock and/or options can be distributed to executive officers in one
year.

·                  The plan shall target 5-15% of the
non-officer population for inclusion in the long-term incentive program.

·                  Minimum stock option grants to
non-officers will typically be 500 shares and maximum grants to non-officers
will be 10,000 shares.

·                  Executive
officers will be eligible to receive restricted stock grants during the first
restricted stock approval cycle following their date of hire, or date of
appointment as an executive officer.

5.4          Other Section 16B Officer Provisions

Certain additional
consideration will be provided to Section 16B officers as approved by the
Compensation Committee.  These provisions
recognize and reward the officers for the additional responsibilities,
liabilities, and contributions that are attributable to officer status.  Specifically, the CEO is provided with a
country club membership that is made available primarily for use in
entertaining clients and other business associates.  Section 16B officers receive a $900 per month
automobile allowance, as well as limited reimbursement for club memberships,
estate/financial planning, and annual physical examinations.  Also, Section 16B officers are eligible to
defer compensation via participation in the Deferred Compensation Program.

 7
 

 

6.0                               PROCESS
FLOW/SCHEDULE

 

 

 8
 

 

7.0                               APPENDIX
I — EXAMPLES OF ANNUAL INCENTIVE BONUSES

Example
1

Narrative:               The Company significantly exceeds
each of its keys objectives and the CEO significantly exceeds all individual
contribution expectations, maximizing the bonus payment.

	
  Position:

  	
   

  	
  CEO

  	
   

  	
  Base Salary: $100,000

  	
   

  	
  CPF: 1.4

  	
   

  	
  IF: 1.2

  

 

Bonus to be paid:  $100,000 X 0.75 X 1.4 X 1.2 = $126,000

Example
2

Narrative:               The
Company achieves all and exceeds some of its key objectives, and the CEO meets
all individual contribution expectations.

	
  Position:

  	
   

  	
  CEO

  	
   

  	
  Base Salary: 
  $100,000

  	
   

  	
  CPF:  1.2

  	
   

  	
  IF:  1.0

  

 

Bonus to be paid:  $100,000 X
0.75 X 1.2 X 1.0 = $90,000

Example
3

Narrative:               The Company meets its key
objectives, and the General Counsel meets individual contribution expectations.

	
  Position:

  	
   

  	
  General Counsel

  	
   

  	
  Base Salary: 
  $100,000

  	
   

  	
  CPF:  1.0

  	
   

  	
  IF:  1.0

  

 

Bonus to be paid:  $100,000 X 0.40 X 1.0 X 1.0 = $40,000

Example
4

Narrative:               The Company meets 80% of its key
objectives, and the Corporate Controller significantly exceeds individual
contribution expectations.

	
  Position:

  	
   

  	
  Corporate Controller

  	
   

  	
  Base Salary: 
  $100,000

  	
   

  	
  CPF:  0.8

  	
   

  	
  IF:  1.2

  

 

Bonus to be paid:  $100,000 X 0.40 X 0.8 X 1.2 = $38,400

8.0          APPENDIX II — RESTRICTED STOCK PLAN SUMMARY AND EXAMPLES

Overview

Tetra Tech’s baseline
compensation plan provides for a mix of stock options and restricted stock
grants to be awarded to Section 16B officers. 
Restricted stock will typically not be granted to individuals who are
not Section 16B officers.

 9
 

 

Restricted stock awards
will be eligible for vesting in equal installments annually over a three-year
period.  Vesting will be
performance-based, based on GAAP EPS growth, as follows:

	
  Annual Award

  	
   

  	
   

  
	
  Vesting%

  	
   

  	
  EPS Growth

  	
   

  	
   

  
	
  0%

  	
   

  	
  EPS < 5%
  year-over-year growth

  
	
  60%

  	
   

  	
  EPS 5-9% year-over-year
  growth

  
	
  100%

  	
   

  	
  EPS 10-14%
  year-over-year growth

  
	
  120%

  	
   

  	
  EPS > 14% year-over-year growth

  

 

Evaluation of performance
for vesting purposes and the award of restricted stock will occur annually as
part of the normal compensation cycle as shown in Section 6.0.

For the purpose of this
Plan, “GAAP EPS” is the fully diluted earnings per share from continuing
operations, as defined by Statement of Financial Accounting Standards (SFAS)
128, and related interpretations, adjusted as follows:

·                  The impact of goodwill impairment
under SFAS 142 will be excluded

·                  The impact of impairment on
long-lived assets under SFAS 144 will be excluded

·                  The impact of accounting changes
requiring current and prior period adjustments due to materiality under
relevant SEC Staff Accounting Bulletins and related accounting pronouncements
will be excluded.

·                  The impact of any changes in newly
issued or existing accounting principles and related interpretations will be
excluded.

·                  The financial statement impact from
the settlement of tax audits more or less than amounts previously recorded will
be excluded.

·                  Gains and loses from the sales of
subsidiaries and significant lines of businesses will be excluded.

·                  The
impact of shares issued and costs incurred in connection with acquisitions,
mergers, or debt restructurings will be excluded.

Plan Summary:

In the December
Compensation Committee meeting the Committee will authorize a specific number
of shares of restricted stock to be used for the three year Restricted Stock
(RS) Plan that starts in the current fiscal year.  For example, in December, 2006 the “2007,
2008, and 2009 Restricted Stock Plan” will be authorized and funded.  The Compensation Committee will also approve
the number of shares to be allocated to 16B officers.

 10
 

 

As stated, the restricted
shares awarded to individuals will be eligible to vest in 1/3 increments over
three years based on GAAP EPS achieved during the Performance Period.  For a specific three year RS plan, the prior
year GAAP EPS is the measurement control point (see examples).  Once established for a three year RS Plan,
the EPS control point cannot be modified.

At the end of each fiscal
year, EPS will be determined and compared to EPS for the immediately preceding
fiscal year so that the year-over-year growth rate may be calculated.  For each Section 16B officer, the EPS growth
rate will be used to determine the vesting percentage of each installment.  Each installment of stock eligible for
vesting in a given year will be scored based upon EPS growth since the year in
which that installment was granted.

Assuming a new plan every
year, by the third year three individual plans each with its own period and
control point will be running concurrently (see below).

	
  DATE

  	
   

  	
  PLAN AUTHORIZED

  	
   

  	
  CONTROL POINT

  	
   

  	
  PLAN PERIOD

  	
   

  
	
  12/06

  	
   

  	
  2007
  RS Plan

  	
   

  	
  FY
  06 GAAP EPS

  	
   

  	
  07,08,09

  	
   

  
	
  12/07

  	
   

  	
  2008
  RS Plan

  	
   

  	
  FY
  07 GAAP EPS

  	
   

  	
  08,09,10

  	
   

  
	
  12/08

  	
   

  	
  2009 RS Plan

  	
   

  	
  FY 08 GAAP EPS

  	
   

  	
  09,10,11

  	
   

  

 

Example
1

A section 16B officer is
allocated 3,000 shares of restricted stock at the end of fiscal year 2006 to
vest in equal amounts at the end of fiscal years 2007, 2008, and 2009,
designated the “07 RS Plan.”  For fiscal
year 2007, the EPS growth rate is determined to be 8% improvement over fiscal
year 2006.  Accordingly, 600 of the 1,000
(i.e., .6 x 1,000) eligible shares will vest in 2007.

Example
2

Using Example 1, 1,000
shares of restricted stock is vested in the 2007 Plan at the end of FY-08.  EPS growth in FY-08 is determined to be 0%
improvement over FY-07 for a two year average of 4% (i.e. 8% in year 1, 0 in
year 2).  In this example, the 16B
officer would be awarded 0 shares of the 1,000 shares that vested at the end of
year two of the “07 RS Plan.”

 11
 

 

Example
3

A 16B officer is awarded
3,000 shares in the 07 RS Plan, 4,000 shares in the 08 RS Plan, and 5,000
shares in the 09 RS Plan.  Each plan as
stated has its specific EPS control point. 
At the end of FY-09, award components from each plan would be evaluated
as follows:

	
  # SHARES AVAILABLE

  	
   

  	
  PLAN

  	
   

  	
  EPS CONTROL

  POINT

  	
   

  	
  ‘09 EPS

  	
   

  	
  % AVERAGE

  GROWTH

  	
   

  	
  SHARES

  AWARDED

  	
   

  
	
  1,000

  	
   

  	
  YR
  3 ‘07

  	
   

  	
  80¢

  	
   

  	
  1.00

  	
   

  	
  8.3

  	
   

  	
  600

  	
   

  
	
  1,333

  	
   

  	
  YR
  2 ‘08

  	
   

  	
  88¢

  	
   

  	
  1.00

  	
   

  	
  6.8

  	
   

  	
  800

  	
   

  
	
  1,667

  	
   

  	
  YR
  1 ‘09

  	
   

  	
  75¢

  	
   

  	
  1.00

  	
   

  	
  33.0

  	
   

  	
  2,000

  	
   

  
	
  4,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  3,400

  	
   

  

 

9.0                               APPENDIX
III — TIMING OF EXECUTIVE EQUITY AWARDS

The effective date of the grant for all stock options and restricted
stock awards is the date of the approval by the Compensation Committee.

Equity compensation recommendations for executive officers in
accordance with this policy, including both stock options and restricted stock,
will be presented to the Compensation Committee at the December meeting.   The Compensation Committee will also consider
salary increase and annual performance bonus recommendations at the December
meeting.

Actual approval of stock option and restricted stock awards to
executive officers will be made by the Compensation Committee at its December
meeting, consistent with the annual stock option grants to all stock option
recipients.

The Compensation Committee approves grants for new hires as recommended
by the CEO.   The effective date of the
grant is the date of approval by the Compensation Committee.

 

 12Exhibit
10.1

EXECUTION COUNTERPART

CREDIT AGREEMENT

Dated as of November 13,
2006

Among

BUCKEYE PARTNERS, L.P.,

as Borrower,

THE LENDERS SIGNATORY
HERETO,

WACHOVIA BANK, NATIONAL ASSOCIATION,

as Syndication Agent

BANK OF AMERI CA, N.A., CITIBANK, N.A. and

JPMORGAN CHASE BANK, N.A.,

as Co-Documentation
Agents,

BNP PARIBAS, DEUTSCHE BANK AG NEW YORK,

THE ROYAL BANK OF SCOTLAND plc AND

THE BANK OF
TOYKO-MITSUBISHI UFJ, LTD., as Co-Managing Agents

and

SUNTRUST BANK,

as Administrative Agent,

SUNTRUST CAPITAL MARKETS,
INC.,

and

WACHOVIA CAPITAL MARKETS,
LLC,

as Joint Lead Arrangers
and Joint Bookrunners

 

TABLE OF
CONTENTS

	
  ARTICLE I DEFINITIONS AND ACCOUNTING MATTERS

  	
  1

  
	
   

  	
   

  
	
  SECTION 1.01. Certain Defined Terms.

  	
  1

  
	
  SECTION 1.02. Accounting Terms and Determinations

  	
  22

  
	
   

  	
   

  
	
  ARTICLE II COMMITMENTS

  	
  22

  
	
   

  	
   

  
	
  SECTION 2.01. Loans and Letters of Credit

  	
  22

  
	
  SECTION 2.02. Borrowings, Continuations and Conversions of Revolving
  Credit Loans; Letters of Credit.

  	
  24

  
	
  SECTION 2.03. Changes of Revolving Credit Commitments; Additional
  Commitment Amount

  	
  26

  
	
  SECTION 2.04. Fees

  	
  27

  
	
  SECTION 2.05. Several Obligations

  	
  29

  
	
  SECTION 2.06. Noteless Agreement; Evidence of Indebtedness

  	
  29

  
	
  SECTION 2.07. Prepayments

  	
  29

  
	
  SECTION 2.08. Assumption of Risks

  	
  30

  
	
  SECTION 2.09. Obligation to Reimburse and to Prepay

  	
  31

  
	
  SECTION 2.10. Lending Offices

  	
  33

  
	
  SECTION 2.11.
  Extensions of Termination Date

  	
  33

  
	
   

  	
   

  
	
  ARTICLE III PAYMENTS OF
  PRINCIPAL AND INTEREST

  	
  34

  
	
   

  	
   

  
	
  SECTION 3.01. Repayment of Loans

  	
  34

  
	
  SECTION 3.02. Interest

  	
  34

  
	
   

  	
   

  
	
  ARTICLE IV PAYMENTS; PRO RATA
  TREATMENT; COMPUTATIONS; ETC.

  	
  35

  
	
   

  	
   

  
	
  SECTION 4.01. Payments

  	
  35

  
	
  SECTION 4.02. Pro Rata Treatment

  	
  36

  
	
  SECTION 4.03. Computations

  	
  36

  
	
  SECTION 4.04. Non-receipt of Funds by the Agent

  	
  36

  
	
  SECTION 4.05. Set-off, Sharing of Payments, Etc.

  	
  37

  
	
  SECTION 4.06. Taxes

  	
  38

  
	
   

  	
   

  
	
  ARTICLE V YIELD PROTECTION

  	
  39

  
	
   

  	
   

  
	
  SECTION 5.01. Additional Costs

  	
  39

  
	
  SECTION 5.02.
  Basis Unavailable or Inadequate for LIBOR Rate

  	
  41

  
	
  SECTION 5.03. Illegality

  	
  41

  
	
  SECTION 5.04. Base Rate Loans

  	
  41

  
	
  SECTION 5.05. Compensation

  	
  41

  
	
  SECTION 5.06. Replacement Lenders

  	
  42

  

 

 i
 

 

 

	
  ARTICLE VI CONDITIONS PRECEDENT

  	
  43

  
	
   

  	
   

  
	
  SECTION 6.01. Initial Funding

  	
  43

  
	
  SECTION 6.02. Initial and Subsequent Loans and Letters of Credit

  	
  45

  
	
  SECTION 6.03. Conditions Precedent for the Benefit of Lenders

  	
  45

  
	
  SECTION 6.04. No Waiver

  	
  45

  
	
   

  	
   

  
	
  ARTICLE VII REPRESENTATIONS
  AND WARRANTIES

  	
  45

  
	
   

  	
   

  
	
  SECTION 7.01. Existence

  	
  46

  
	
  SECTION 7.02. Financial Condition

  	
  46

  
	
  SECTION 7.03. Litigation

  	
  46

  
	
  SECTION 7.04. No Breach

  	
  47

  
	
  SECTION 7.05. Authority

  	
  47

  
	
  SECTION 7.06. Approvals

  	
  47

  
	
  SECTION 7.07. Use of Loans

  	
  47

  
	
  SECTION 7.08. ERISA

  	
  48

  
	
  SECTION 7.09. Taxes

  	
  49

  
	
  SECTION 7.10. Titles, etc.

  	
  49

  
	
  SECTION 7.11. No Material Misstatements

  	
  50

  
	
  SECTION 7.12. Investment Company Act

  	
  50

  
	
  SECTION 7.13. No
  Other Debt

  	
  50

  
	
  SECTION 7.14. Subsidiaries

  	
  50

  
	
  SECTION 7.15. Location of Business and Offices

  	
  50

  
	
  SECTION 7.16. Defaults

  	
  51

  
	
  SECTION 7.17. Environmental Matters

  	
  51

  
	
  SECTION 7.18. Compliance with the Law

  	
  52

  
	
  SECTION 7.19. Insurance

  	
  52

  
	
  SECTION 7.20. Material Agreements

  	
  52

  
	
  SECTION 7.21. Partnership Agreement

  	
  53

  
	
  SECTION 7.22. Ownership of Parties

  	
  53

  
	
  SECTION 7.23. Patriot Act

  	
  53

  
	
   

  	
   

  
	
  ARTICLE VIII AFFIRMATIVE
  COVENANTS

  	
  53

  
	
   

  	
   

  
	
  SECTION 8.01. Reporting Requirements

  	
  53

  
	
  SECTION 8.02. Litigation

  	
  55

  
	
  SECTION 8.03. Maintenance, Etc.

  	
  55

  
	
  SECTION 8.04.
  Guaranty Approval

  	
  56

  
	
  SECTION 8.05. Environmental Matters

  	
  56

  
	
  SECTION 8.06. Further Assurances

  	
  57

  
	
  SECTION 8.07. Performance of Obligations

  	
  57

  
	
  SECTION 8.08. ERISA Information and Compliance

  	
  57

  
	
  SECTION 8.09. Compliance with and Modification of Organizational
  Documents

  	
  58

  

 

 ii
 

 

 

	
  ARTICLE IX NEGATIVE COVENANTS

  	
  58

  
	
   

  	
   

  
	
  SECTION 9.01. Debt

  	
  58

  
	
  SECTION 9.02. Liens

  	
  59

  
	
  SECTION 9.03. Investments, Loans and Advances

  	
  60

  
	
  SECTION 9.04. Distributions and Redemptions

  	
  61

  
	
  SECTION 9.05. Sales and Leasebacks

  	
  61

  
	
  SECTION 9.06. Nature of Business

  	
  61

  
	
  SECTION 9.07. Restrictive Agreements

  	
  61

  
	
  SECTION 9.08. Mergers, Etc.

  	
  62

  
	
  SECTION 9.09. Proceeds of the Loans; Letters of Credit

  	
  62

  
	
  SECTION 9.10. ERISA Compliance

  	
  62

  
	
  SECTION 9.11. Sale or Discount of Receivables

  	
  64

  
	
  SECTION 9.12. Funded Debt Ratio

  	
  64

  
	
  SECTION 9.13. Reserved

  	
  64

  
	
  SECTION 9.14. Sale of Properties

  	
  64

  
	
  SECTION 9.15. Environmental Matters

  	
  64

  
	
  SECTION 9.16. Transactions with Affiliates

  	
  64

  
	
  SECTION 9.17. Partnership Agreements

  	
  65

  
	
  SECTION 9.18. Senior Notes

  	
  65

  
	
  SECTION 9.19.
  Laurel Debt

  	
  65

  
	
   

  	
   

  
	
  ARTICLE X EVENTS OF DEFAULT;
  REMEDIES

  	
  65

  
	
   

  	
   

  
	
  SECTION 10.01. Events of Default

  	
  65

  
	
  SECTION 10.02. Remedies

  	
  67

  
	
   

  	
   

  
	
  ARTICLE XI THE AGENT

  	
  68

  
	
   

  	
   

  
	
  SECTION 11.01. The Agent

  	
  68

  
	
  SECTION 11.02.
  Expenses

  	
  70

  
	
  SECTION 11.03.
  Proportionate Absorption of Losses

  	
  70

  
	
  SECTION 11.04.
  Delegation of Duties; Reliance

  	
  70

  
	
  SECTION 11.05.
  Limitation of the Agent’s Liability

  	
  71

  
	
  SECTION 11.06.
  Event of Default

  	
  72

  
	
  SECTION 11.07.
  Limitation of Liability

  	
  72

  
	
  SECTION 11.08.
  Other Agents

  	
  72

  
	
  SECTION 11.09.
  Relationship of Lenders

  	
  72

  
	
  SECTION 11.10.
  Benefits of Agreement

  	
  72

  
	
   

  	
   

  
	
  ARTICLE XII MISCELLANEOUS

  	
  73

  
	
   

  	
   

  
	
  SECTION 12.01. Waiver

  	
  73

  
	
  SECTION 12.02. Notices

  	
  73

  
	
  SECTION 12.03. Payment of Expenses, Indemnities, etc.

  	
  73

  
	
  SECTION 12.04. Amendments, Etc.

  	
  76

  
	
  SECTION 12.05. Successors and Assigns

  	
  76

  

 

 iii
 

 

 

	
  SECTION 12.06. Assignments and Participations

  	
  77

  
	
  SECTION 12.07. Invalidity

  	
  79

  
	
  SECTION 12.08. Counterparts

  	
  79

  
	
  SECTION 12.09. References

  	
  79

  
	
  SECTION 12.10. Survival

  	
  79

  
	
  SECTION 12.11.
  Captions

  	
  80

  
	
  SECTION 12.12. NO ORAL AGREEMENTS

  	
  80

  
	
  SECTION 12.13. GOVERNING LAW; SUBMISSION TO JURISDICTION

  	
  80

  
	
  SECTION 12.14. Interest

  	
  81

  
	
  SECTION 12.15. Confidentiality

  	
  82

  
	
  SECTION 12.16. EXCULPATION PROVISIONS

  	
  83

  
	
  SECTION 12.17. Separateness

  	
  84

  
	
  SECTION 12.18.
  Location of Closing

  	
  84

  

 

 iv
 

 

ANNEXES,
EXHIBITS AND SCHEDULES

	
  Annex
  I

  	
  -

  	
  List of Percentage Shares and Revolving Credit
  Commitments

  
	
  Exhibit A

  	
  -

  	
  Form of Borrowing, Continuation and Conversion
  Request

  
	
  Exhibit B

  	
  -

  	
  Form of Compliance Certificate

  
	
  Exhibit C

  	
  -

  	
  Form of Assignment Agreement

  
	
  Exhibit D-1

  	
  -

  	
  Restricted Subsidiaries as of the Date Hereof

  
	
  Exhibit D-2

  	
  -

  	
  Unrestricted Subsidiaries as of the Date Hereof

  
	
  Exhibit E

  	
  -

  	
  Form of Guaranty

  
	
   

  	
   

  	
   

  
	
  Schedule 2.02

  	
  -

  	
  Existing Letters of Credit

  
	
  Schedule 7.02

  	
  -

  	
  Liabilities

  
	
  Schedule 7.03

  	
  -

  	
  Litigation

  
	
  Schedule 7.08

  	
  -

  	
  ERISA

  
	
  Schedule 7.09

  	
  -

  	
  Taxes

  
	
  Schedule 7.10

  	
  -

  	
  Titles, etc.

  
	
  Schedule 7.14

  	
  -

  	
  Subsidiaries and Partnerships

  
	
  Schedule 7.17

  	
  -

  	
  Environmental Matters

  
	
  Schedule 7.22

  	
  -

  	
  Structure and Ownership of Subsidiaries

  
	
  Schedule 9.01

  	
  -

  	
  Debt

  
	
  Schedule 9.02

  	
  -

  	
  Liens

  
	
  Schedule 9.03

  	
  -

  	
  Investments, Loans and Advances

  

 

 v

 

THIS CREDIT AGREEMENT (as
amended , supplemented and modified from time to time, this “Agreement”) is entered into as of
November 13, 2006, among BUCKEYE PARTNERS, L.P., a limited partnership formed
under the laws of the State of Delaware (the “Borrower”);
each of the lenders that is a signatory hereto or that becomes a signatory
hereto as provided in Section 12.06 (together with their successors and
assigns, the “Lenders”); and SUNTRUST BANK
(“SunTrust”), as administrative agent
for the Lenders (in such, capacity, together with its successors in such
capacity, the “Agent”) and as Issuing Bank
(as defined below).

R E C I T A L S

A.                                   The
Borrower has requested that the Lenders provide certain loans to and extensions
of credit on behalf of the Borrower.

B.                                     The
Lenders have agreed to make such loans and extensions of credit subject to the
terms and conditions of this Agreement.

C.                                     In
consideration of the mutual covenants and agreements herein contained and of
the loans, extensions of credit and commitments hereinafter referred to, the
parties hereto agree as follows:

Article I

Definitions and Accounting Matters

SECTION 1.01. 
Certain Defined Terms.

As used herein, the
following terms shall have the following meanings (all terms defined in this
Article I or in other provisions of this Agreement in the singular to have
equivalent meanings when used in the plural and vice versa):

“Account Party” shall mean the Borrower or any Restricted
Subsidiary of the Borrower for whose account a Letter of Credit has been
issued.

“Additional Costs” shall have the
meaning assigned such term in Section 5.01(a).

“Additional Lender” shall have the
meaning assigned such term in Section 2.03(c).

“Additional Revolving Credit Commitment Amount”
shall have the meaning assigned such term in Section 2.03(c).

“Additional Revolving Credit Commitment Amount
Approvals” means any Governmental Requirement, resolution of the
Board of Directors of the Borrower or resolution of the Board of Directors of
any Restricted Subsidiary not obtained by or on behalf of the Borrower or such
Restricted Subsidiary, as applicable, and in full force and effect on the date
hereof, which Governmental Requirement or resolution is required to be obtained
in order to authorize the Additional Revolving Credit Commitment Amount and the
performance by the Borrower and the Restricted Subsidiaries of their respective

 

obligations
under the Loan Documents after giving effect to the Additional Revolving Credit
Commitment Amount.

 “Affected Loans”
shall have the meaning assigned such term in Section 5.04.

“Affiliate” of any Person shall mean
(i) any Person directly or indirectly controlled by, controlling or under
common control with such first Person, (ii) any director or officer of
such first Person or of any Person referred to in clause (i) above and
(iii) if any Person in clause (i) above is an individual, any member
of the immediate family (including parents, spouse and children) of such
individual and any trust whose principal beneficiary is such individual or one
or more members of such immediate family and any Person who is controlled by
any such member or trust.  For purposes
of this definition, any Person which owns directly or indirectly 10% or more of
the securities having ordinary voting power for the election of directors or
other governing body of a corporation or 10% or more of the partnership or
other ownership interests of any other Person (other than as a limited partner
of such other Person) will be deemed to “control” (including, with its correlative meanings, “controlled
by” and “under common control with”) such corporation or other Person.

“Agent” shall have the meaning
assigned such term in the preamble to this Agreement.

“Agreement” shall have the meaning
assigned such term in the preamble to this Agreement.

“Aggregate Revolving Credit Commitments”
at any time shall equal the sum of the Revolving Credit Commitment Amounts of
the Lenders, as the same may be reduced or increased from time to time in
accordance with Section 2.03(a), 2.03(c), or 12.06(b).

“Applicable Lending Office” shall
mean, for each Lender and for each Type of Loan, the lending office of such
Lender (or an Affiliate of such Lender) designated for such Type of Loan on the
signature pages hereof or such other offices of such Lender (or of an Affiliate
of such Lender) as such Lender may from time to time specify to the Agent and
the Borrower as the office by which its Loans of such Type are to be made and
maintained.

“Applicable Margin” shall mean, for
any LIBOR Loan or any Base Rate Loan, (i) on any date that the Utilization
Percentage equals or is less than 50%, the “LIBOR Margin” or “Base Rate Margin”
set forth below in the columns identified as Level 1, Level 2,
Level 3, Level 4 and Level 5, as then applicable, and (ii) on
any date that the Utilization Percentage exceeds 50%, the “Utilized LIBOR
Margin” or “Utilized Base Rate Margin” set forth below in the columns
identified as Level 1, Level 2, Level 3, Level 4 and Level 5, as then
applicable, in each case determined by reference to the Reference Rating.

 2
 

 

 

	
   

  	
   

  	
  Level 1

  	
   

  	
  Level 2

  	
   

  	
  Level 3

  	
   

  	
  Level 4

  	
   

  	
  Level 5

  	
   

  
	
  S&P

  Moody’s

  	
   

  	
  Reference

  Rating

  at least A-/A3

  	
   

  	
  Reference

  Rating Less

  than Level 1

  but at least

  BBB+/Baa1

  	
   

  	
  Reference

  Rating Less

  than Level 2

  but at least

  BBB/Baa2

  	
   

  	
  Reference

  Rating Less

  than Level 3

  but at least

  BBB-/Baa3

  	
   

  	
  Reference

  Rating

  below Level 4*

  	
   

  
	
  Interest Rate Per Annum

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LIBOR Margin

  	
   

  	
  0.200

  	
  %

  	
  0.230

  	
  %

  	
  0.310

  	
  %

  	
  0.440

  	
  %

  	
  0.575

  	
  %

  
	
  Utilized LIBOR Margin

  	
   

  	
  0.250

  	
  %

  	
  0.280

  	
  %

  	
  0.360

  	
  %

  	
  0.540

  	
  %

  	
  0.675

  	
  %

  
	
  Base Rate Margin

  	
   

  	
  0.000

  	
  %

  	
  0.000

  	
  %

  	
  0.000

  	
  %

  	
  0.000

  	
  %

  	
  0.000

  	
  %

  
	
  Utilized
  Base Rate Margin

  	
   

  	
  0.000

  	
  %

  	
  0.000

  	
  %

  	
  0.000

  	
  %

  	
  0.000

  	
  %

  	
  0.250

  	
  %

  

 

*or unrated

Any change in the Applicable
Margin will be effective as of the date on which S&P or Moody’s, as the
case may be, announces any change in the ratings used to determine the
Reference Rating.

“Assignment Agreement” shall have the
meaning assigned such term in Section 12.06(b).

“Base Rate” shall mean, with respect
to any Base Rate Loan, for any day, the higher of (i) the Federal Funds
Rate for any such day plus 1/2 of 1% and (ii) the Prime Rate for such
day.  Each change in any interest rate
provided for herein based upon the Base Rate resulting from a change in the
Base Rate shall take effect at the time of such change in the Base Rate.

“Base Rate Loans” shall mean Loans
that bear interest at rates based upon the Base Rate.

“Board of Directors” means, with
respect to any Person, such Person’s board of directors, managers or members,
as applicable.

“Borrower” shall have the meaning
assigned such term in the preamble to this Agreement.

“Borrower Partnership Agreement”
shall mean the Amended and Restated Agreement of Limited Partnership of the
Borrower, dated as of August 9, 2006, as amended from time to time.

 “Buckeye GP Holdings L.P.”
shall mean Buckeye GP Holdings L.P., a Delaware limited partnership.

“Buckeye
GP LLC” shall mean Buckeye GP LLC, a Delaware limited liability
company.

 3
 

 

“Buckeye Pipe Line Partnership Agreement”
shall mean the Amended and Restated Agreement of Limited Partnership of Buckeye
Pipe Line Company, L.P., dated as of August 9, 2006 and as it may be amended
from time to time.

“Business Day” shall mean any day
other than a day on which commercial banks are authorized or required to close
in Georgia or New York and, if such day relates to a borrowing or continuation
of, a payment or prepayment of principal of or interest on, or a conversion of
or into, or the Interest Period for, a LIBOR Loan or a notice by the Borrower
with respect to any such borrowing or continuation, payment, prepayment, conversion
or Interest Period, any day that is also a day on which dealings in Dollar
deposits are carried out in the London interbank market.

“CERCLA” shall mean the Comprehensive
Environmental Response, Compensation and Liability Act of 1980, 42 U.S.C.
§ 9601 et seq.

“Change of Control” shall mean (i)
Carlyle/Riverstone BPL Holdings II, L.P. shall cease to Beneficially Own, directly or indirectly, 100% of the outstanding
equity interests of the sole general partner of Buckeye GP Holdings L.P. on a
fully diluted basis, or (ii) Buckeye GP Holdings L.P. shall cease to Beneficially Own, directly or indirectly,
100% of the outstanding equity interests of the General Partner on a fully
diluted basis, or (iii) the General Partner shall cease to be the sole general
partner of the Borrower.  As used herein “Beneficially Own” means “beneficially
own” as defined in Rule 13d-3 of the
Securities Exchange Act of 1934, as amended, or any successor provision
thereto; provided, however, that, for purposes of
this definition, a Person shall not be deemed to Beneficially Own securities
tendered pursuant to a tender or exchange offer made by or on behalf of such
Person or any of such Person’s Affiliates until such tendered securities are
accepted for purchase or exchange.

“Closing Date” shall mean the date on
which the conditions precedent described in Section 6.01 to the Initial
Funding shall be satisfied or waived.

“Code” shall mean the Internal
Revenue Code of 1986, as amended from time to time and any successor statute.

“Commercial
Operation Date” means the date on which a Material
Project is substantially complete and commercially operable.

“Compliance Certificate” shall mean a
certificate from the Borrower substantially in the form of Exhibit B.

“Consolidated Net Income” shall mean,
with respect to any Person for any period, the aggregate of the net income (or
loss) of such Person and its Consolidated Subsidiaries after allowances for
taxes for such period, determined on a
consolidated basis in accordance with GAAP; provided that there
shall be excluded from such net income (to the extent otherwise included
therein) the following: (i) the net income of any other Person in which
such Person or any of its Consolidated Subsidiaries has an interest (which
interest does not cause the net income of such other Person to be consolidated

 4
 

 

with
the net income of such Person and its Consolidated Subsidiaries in accordance
with GAAP), except to the extent of the amount of dividends or distributions
actually paid in such period by such other Person to such Person or to a
Consolidated Subsidiary of such Person, as the case may be; (ii) the net
income (but not loss) of any Consolidated Subsidiary of such Person to the
extent that the declaration or payment of dividends or similar distributions or
transfers or loans by that Consolidated Subsidiary is not at the time permitted
by operation of the terms of its charter or any agreement, instrument or
Governmental Requirement applicable to such Consolidated Subsidiary, or is
otherwise restricted or prohibited in each case determined in accordance
with GAAP; (iii) the net income (or loss)
of any other Person acquired in a pooling-of-interests transaction for any
period prior to the date of such transaction; (iv) any extraordinary gains
or losses, including gains or losses attributable to Property sales not in the
ordinary course of business; and (v) the cumulative effect of a change in
accounting principles resulting in any gains or losses attributable to
write-ups or write-downs of assets or liabilities.

“Consolidated
Net Worth” shall mean, as to any Person at any date of
determination, (a) the sum, without duplication, of (i) the preferred stock or
other equity interests of such Person (if any), (ii) par value of the common
stock or other equity interests of such Person (if any), (iii) capital in
excess of par value of any common stock or other equity interests of such
Person, (iv) partners’ capital or equity, as applicable, of such Person, and
(v) retained earnings of such Person, less (b) stock
or other equity interests (if any) of such Person owned or held by such Person
as treasury stock or other equity interests, all as determined on a
consolidated basis.

“Consolidated Subsidiaries” shall
mean each Subsidiary of any Person (whether now existing or hereafter created
or acquired) the financial statements of which shall be (or should have been)
consolidated with the financial statements of such Person in accordance with
GAAP.

“Consolidated
Total Capitalization” shall mean the sum of (i) Funded
Debt of the Borrower and its Consolidated Subsidiaries and (ii) Consolidated
Net Worth of the Borrower and its Consolidated Subsidiaries.

“Debt” shall mean, for any Person the
sum of the following (without duplication): (i) all obligations of such
Person for borrowed money or evidenced by bonds, debentures, notes or other
similar instruments (including principal, interest, fees and charges);
(ii) all obligations of such Person (whether contingent or otherwise) in
respect of (x) bankers’ acceptances, surety or other bonds and similar
instruments and (y) letters of credit to the extent such obligations in respect
of such letters of credit exceed $5,000,000; (iii) all obligations of such
Person to pay the deferred purchase price of Property or services (other than
for borrowed money); (iv) all obligations under leases which shall have
been, or should have been, in accordance with GAAP, recorded as capital leases
in respect of which such Person is liable (whether contingent or otherwise);
(v) all obligations under operating leases which require such Person or
its Affiliate to make rental payments over the term of such lease, based on the
purchase price or appraised value of the Property subject to such lease plus a
marginal interest rate, and used primarily as a financing vehicle for, or to
monetize, such Property; (vi) all Debt (as described in the other clauses

 5
 

 

of
this definition) of others secured by a Lien on any asset of such Person,
whether or not such Debt is assumed by such Person; (vii) all Debt (as
described in the other clauses of this definition) of others guaranteed by such
Person or in which such Person otherwise assures a creditor against loss of the
debtor, provided that such obligations would be
recorded by such original obligor as a liability under GAAP; (viii) all
obligations or undertakings of such Person to maintain or cause to be
maintained the financial position or financial covenants of others or to
purchase the Debt of others; (ix) obligations to deliver goods or services
not in the ordinary course of business in consideration of advance payments;
(x) obligations to pay for goods or services not in the ordinary course of
business whether or not such goods or services are actually received or
utilized by such Person; (xi) any capital stock of such Person in which
such Person has a mandatory obligation to redeem such stock; (xii) any
Debt of a Special Entity for which such Person is liable either by agreement or
because of a Governmental Requirement; and (xiii) all obligations of such
Person under Hedging Agreements, except that if any agreement relating to such
obligation provides for the netting of amounts payable by and to such Person
thereunder or if any such agreement provides for the simultaneous payment of
amounts by and to such Person, then in each such case, the amount of such
obligation shall be the net amount thereof.

“Declining
Lender” shall have the meaning set forth in Section 2.11.

“Default” shall mean an Event of
Default or an event that with notice or lapse of time or both would become an
Event of Default.

“Dollars” and “$”
shall mean lawful money of the United States of America.

“EBITDA” shall mean,
for any Person for any period commencing before October 1, 2006, the sum of (i)
Consolidated Net Income of such Person and its Consolidated Subsidiaries for
such period plus (ii) the following expenses or charges to the extent deducted
from Consolidated Net Income for such period: 
interest, taxes, depreciation, depletion, amortization and GP Incentive
Compensation Payments plus (iii) with respect to the Borrower and its
Consolidated Subsidiaries, Material Project EBITDA Adjustments, if any, of the
Borrower and its Consolidated Subsidiaries. 
EBITDA shall mean, for any Person for any period commencing on or after
October 1, 2006, the sum of (i) Consolidated Net Income of such Person and its
Consolidated Subsidiaries for such period plus (ii) the following expenses or
charges to the extent deducted from Consolidated Net Income for such
period:  interest, taxes, depreciation,
depletion and amortization plus (iii) with respect to the Borrower and its
Consolidated Subsidiaries, Material Project EBITDA Adjustments, if any, of the
Borrower and its Consolidated Subsidiaries. 
With respect to the Borrower, if during any period the Borrower or any
Subsidiary acquires any Person and such acquired Person becomes a Restricted
Subsidiary, or the Borrower or a Restricted Subsidiary acquires all or
substantially all of the assets of any Person, the EBITDA attributable to such
Person or assets for such period determined on a pro forma basis (as reasonably
diligenced by the Borrower) may be included in EBITDA for the calculation of
the Funded Debt Ratio.

 6
 

 

“Environmental
Law” shall mean any and all
Governmental Requirements pertaining to health or the environment in effect in
any and all jurisdictions in which the Borrower or any Subsidiary is conducting
or at any time has conducted business, or where any Property of the Borrower or
any Subsidiary is located, including without limitation, the Oil Pollution Act
of 1990 (“OPA”), the Clean Air Act, as
amended, the Comprehensive Environmental, Response, Compensation, and Liability
Act of 1980 (“CERCLA”), as amended, the
Federal Water Pollution Control Act, as amended, the Occupational Safety and
Health Act of 1970, as amended, the Resource Conservation and Recovery Act of
1976 (“RCRA”), as amended, the Safe
Drinking Water Act, as amended, The Toxic Substances Control Act, as amended,
the Superfund Amendments and Reauthorization Act of 1986, as amended, the
Hazardous Materials Transportation Act, as amended, the Federal Insecticide,
Fungicide, and Rodenticide Act, the Emergency Planning and Community
Right-to-Know Act, the Rivers and Harbors Act, analogous state and local
Governmental Requirements, and any analogous future enacted or adopted
Governmental Requirement.  The term “oil”
shall have the meaning specified in OPA, the terms “hazardous substance” and “release”
(or “threatened release”) have the meanings specified in CERCLA, and the terms “solid
waste,” “hazardous waste” and “disposal” (or “disposed”) have the meanings
specified in RCRA; provided, however,
that (i) in the event either OPA, CERCLA or RCRA is amended so as to broaden
the meaning of any term defined thereby, such broader meaning shall apply
subsequent to the effective date of such amendment and (ii) to the extent the
laws of the state in which any Property of the Borrower or any Subsidiary is
located establish a meaning for “oil,” “hazardous substance,” “release,” “solid
waste,” “hazardous waste,” or “disposal” which is broader than that specified
in either OPA, CERCLA or RCRA, such broader meaning shall apply.

“ERISA” shall mean the Employee
Retirement Income Security Act of 1974, as amended from time to time and any
successor statute.

“ERISA Affiliate” shall mean each
trade or business (whether or not incorporated) which together with the
Borrower or any Subsidiary would be deemed to be a “single employer” within the meaning of section 4001(b)(1)
of ERISA or subsection (b), (c), (m) or (o) of section 414 of the Code.

“ERISA Event” shall mean (i) a “Reportable
Event” described in Section 4043 of
ERISA and the regulations issued thereunder, (ii) the withdrawal of the
Borrower, any Subsidiary or any ERISA Affiliate from a Plan during a plan year
in which it was a “substantial employer” as defined in Section 4001(a)(2)
of ERISA or the withdrawal of the Borrower, any Subsidiary or any ERISA
Affiliate from a Multiemployer Plan, (iii) the filing of a notice of
intent to terminate a Plan or the treatment of a Plan amendment as a
termination under Section 4041 of ERISA, (iv) the institution of
proceedings to terminate a Plan by the PBGC, (v) any other event or
condition that might constitute grounds under Section 4042 of ERISA for
the termination of, or the appointment of a trustee to administer, any Plan,
(vi) the cessation of operations at a facility in the circumstances described
in Section 4062(e) of ERISA, (vii) the failure by the Borrower, any Subsidiary
or any ERISA Affiliate to make a payment to a Plan required under Section
302(f)(1) of ERISA, which failure results in the imposition of a lien for
failure to make required

 7
 

 

payments,
and (viii) the adoption of an amendment to a Plan requiring the provision of
security to such Plan pursuant to Section 307 of ERISA.

“Event of Default” shall have the
meaning assigned such term in Section 10.01.

“Excepted Liens” shall mean:

(i)                                     Prior Liens;

(ii)                                  statutory Liens incidental to the conduct of
business or the ownership of Properties of the Borrower and the Restricted
Subsidiaries (including Liens in connection with worker’s compensation, unemployment insurance and other like laws
(other than ERISA Liens), warehousemen’s and mechanics’ and materialmen’s liens
and statutory landlord’s liens) that in each case are incurred in the ordinary
course of business and not in connection with the borrowing of money, the
obtaining of advances or credit or the payment of the deferred purchase price
of Property and that do not in any event materially impair the value or use of
the Property encumbered thereby in the operation of the businesses of the
Borrower and the Restricted Subsidiaries; provided  in
each case, that the obligation secured is
not overdue or, if overdue, (A) is being contested by the Borrower or a
Restricted Subsidiary on a timely basis in good faith and in appropriate
proceedings, and the Borrower or a Restricted Subsidiary has established
adequate reserves therefor in accordance with GAAP on the books of the Borrower
or such Restricted Subsidiary or (B) such Liens in the aggregate do not
secure obligations in the aggregate in excess of $1,000,000;

(iii)                               the right reserved to, or vested in, any
municipality or public authority or in any other Person by the terms of any
right, power, franchise, privilege, grant, license, permit, easement or lease
or by any provision of law, to terminate such right, power, franchise,
privilege, grant, license, permit, easement or lease or to purchase or
recapture, or to designate a purchaser of, any of the Properties or assets of
the Borrower and the Restricted Subsidiaries;

(iv)                              the Lien of any tax or assessment that is not at
the time delinquent;

(v)                                 the Lien of any tax or assessment that is
delinquent, but the validity of which is being diligently contested at the time
by the Borrower or any Restricted Subsidiary in good faith, provided that the Borrower or such Restricted Subsidiary
shall have established such reserves in such amounts as may be required under
GAAP;

(vi)                              any
Lien or privilege vested in any grantor, lessor or licenser or permittor for
rent or other charges due or for any other obligations or acts to be performed,
the payment of which rent or other charges or performance of which other
obligations or acts is required under leases, easements, rights-of-way, leases,
licenses, franchises, privileges, grants or permits, so long as payment of such
rent or the performance of such other obligations or acts is not delinquent or
the

 8
 

 

requirement
for such payment or performance is being contested in good faith by appropriate
proceedings;

(vii)                           defects and irregularities in the title to the
Property of the Borrower or any Restricted Subsidiary that do not in the
aggregate have a Material Adverse Effect;

(viii)                        easements, exceptions or reservations in any
Property of the Borrower or any Restricted Subsidiary granted or reserved for
the purpose of pipelines, roads, the removal of oil, gas, coal or other
minerals, and other like purposes or for the joint or common use of real
Property, facilities and equipment, that do not in the aggregate have a Material
Adverse Effect;

(ix)                                rights reserved to, or vested in any grantor,
lessor, licenser, municipality or public authority to control or regulate any
Property of the Borrower or any Restricted Subsidiary or to use any such
Property, provided, that the Borrower or such
Restricted Subsidiary shall not be in default in respect of any material
obligation (except that the Borrower or such Restricted Subsidiary may be
contesting any such obligation in good faith) to such grantor, lessor,
licenser, municipality or public authority; and provided,
further, that all such controls, Regulations and uses will not have
a Material Adverse Effect;

(x)                                   any obligation or duty to any municipality or
public authority with respect to any lease, easement, right-of-way, license,
franchise, privilege, permit or grant;

(xi)                                the Liens of any judgments in an aggregate amount
not in excess of $500,000, or the Lien of any judgment the execution of which
has been stayed, or which has been appealed and secured, if necessary, by the
filing of an appeal bond;

(xii)                             Liens or burdens imposed by any law or
governmental regulation, including, without limitation, those imposed by
environmental and zoning laws, ordinances, and regulations; provided, in each case, the Borrower or any Restricted
Subsidiary is not in default in any material obligation (except that the
Borrower or such Restricted Subsidiary may be contesting any such obligation in
good faith) in respect of such Property; provided, further,
that the existence of all such Liens and burdens does not have a Material
Adverse Effect;

(xiii)                          any pledge or deposit by the Borrower or any
Restricted Subsidiary to secure payment of workers’ compensation or insurance
premiums, or in connection with tenders, bids, contracts or leases; or any
deposits to secure public or statutory obligations; any pledge or deposit in
connection with contracts with or made at the request of the United States of
America or any state or agency or political subdivision thereof or for any
purposes similar to any of those referred to in this clause (xiii); provided, in each case, the Borrower or such Restricted
Subsidiary is not in default in any material obligation (except that the
Borrower or

 9
 

 

such Restricted Subsidiary may be contesting any
such obligation in good faith) in respect thereof;

(xiv)                         the making of a deposit with or the giving of any
form of security to any governmental agency or any body created or approved by
law or Governmental Requirement in order to entitle the Borrower or any
Restricted Subsidiary to maintain self-insurance;

(xv)                            Liens
securing Debt of the Borrower or any Restricted Subsidiary incurred or assumed
in connection with the construction or acquisition of capital Improvements; provided that such Debt would be permitted under
Section 9.01(e) hereof, and provided, further,
that any such Lien shall not extend to any Property other than Property the
construction or acquisition of which is financed by such Debt;

(xvi)                         Liens securing all or any part
of the purchase price, or securing Debt of the Borrower or any Restricted
Subsidiary incurred or assumed to pay all or any part of the purchase price of
Property acquired by the Borrower or any Restricted Subsidiary, or Liens
existing on such Property immediately prior to its acquisition, including,
without limitation, the Liens described in clause (xv) of this
definition, provided, that (i) any such Lien
shall extend solely to the Property so acquired, (ii) the principal amount
of Debt secured by any such Lien shall not exceed 100% of the fair market value
of such Property (as reasonably determined by the Borrower) at the time of
acquisition, (iii) any such Lien not existing on such Property immediately
prior to its acquisition shall be created at the time of acquisition of such
Property or within 60 days thereafter and (iv) the aggregate amount of all
outstanding Debt secured by such Liens shall be permitted under
Section 9.01(e);

(xvii)                      Liens arising in connection with Sale-Leaseback
Transactions permitted under Section 9.05; provided
that any such Lien shall not extend to any Property other than Property being
leased; and

(xviii)                   any Lien of the Trustee encumbering the
Defeasance Trust (as defined in that certain Defeasance Trust Agreement, dated
as of December 16, 1997 (the “Defeasance Trust Agreement”),
among Buckeye Pipe Line Company, L.P., PNC Bank, National Association, and
Douglas A. Wilson) and all funds and securities therein for the benefit of
the holders of the Defeased Notes (as such term is defined in the Defeasance
Trust Agreement).

“Existing Credit Agreement” shall
mean that certain 5-Year Credit Agreement, dated as of August 6, 2004, as
amended from time to time, among Buckeye Partners, L.P., as borrower, SunTrust
Bank, as administrative agent, and as issuing bank, and the lenders signatory
thereto.

“Existing Letters of Credit” means the letters of credit issued and
outstanding under the Existing Credit Agreement as set forth on Schedule
2.02.

 10
 

 

“Extending
Lender” shall have the meaning set forth in Section 2.11.

“Federal Funds Rate” shall mean, for
any day, the rate per annum (rounded upwards, if necessary, to the nearest
l/100 of 1%) equal to the weighted average of the rates on overnight federal
funds transactions with a member of the Federal Reserve System arranged
by federal funds brokers on such day, as published by the Federal Reserve Bank of New York on the Business Day next
succeeding such day, provided that
(i) if the date for which such rate is to be determined is not a Business
Day, the Federal Funds Rate for such day shall be such rate on such
transactions on the next preceding Business Day as so published on the next
succeeding Business Day, and (ii) if such rate is not so published for any
day, the Federal Funds Rate for such day shall be the average rate charged to
the Agent on such day on such transactions as determined by the Agent.

“Fee Letters” shall mean (i) that
certain letter agreement among SunTrust Capital Markets, Inc., SunTrust and the
Borrower, dated October 2, 2006 and (ii) that certain letter agreement among
Wachovia Capital Markets, Inc., Wachovia Bank, National Association and the
Borrower, dated October 2, 2006, in each case as the same may be amended or
replaced from time to time, concerning certain fees in connection with this Agreement and any agreements
or instruments executed in connection herewith.

“Financial Statements” shall mean the
financial statement or statements of the Borrower and its Consolidated
Subsidiaries described or referred to in Section 7.02.

“Funded Debt” shall mean for any
Person, Debt of such Person and its Consolidated Subsidiaries (other than the
type described in subsection (xiii) of the definition of Debt), less all
obligations of such Person and its Consolidated Subsidiaries to pay the
deferred purchase price of Property or services obtained in the ordinary course
of business, in each case as determined on a consolidated basis in accordance
with GAAP; provided, however, that for the purposes
of calculating the Funded Debt Ratio, Funded Debt will exclude (to the extent otherwise included in Funded
Debt) an amount of Hybrid Securities not to exceed 15% of Consolidated
Total Capitalization.

“Funded Debt Ratio” shall mean the
ratio (calculated quarterly at the end of each fiscal quarter) of (i) the
Funded Debt of the Borrower (excluding Funded Debt of Unrestricted
Subsidiaries) for the four fiscal quarters ending on such date to (ii) the
EBITDA of the Borrower (excluding EBITDA attributable to Unrestricted
Subsidiaries, except to the extent actually paid in cash as a dividend or
distribution to the Borrower or any Restricted Subsidiaries), for such four
fiscal quarters.

“GAAP” shall mean generally accepted
accounting principles in the United States of America in effect from time to
time.

“General Partner” shall mean Buckeye
GP LLC.

“Governmental Authority” shall mean
the country, the state, county, city and political subdivisions in which any
Person or such Person’s Property is located or that exercises valid
jurisdiction over any such Person or such Person’s Property, and any

 11
 

 

court,
agency, department, commission, board, bureau or instrumentality of any of them
including monetary authorities that exercises valid jurisdiction over any such
Person or such Person’s Property.  Unless
otherwise specified, all references to Governmental Authority herein shall mean
a Governmental Authority having jurisdiction over, where applicable, the
Borrower, its Subsidiaries or any of their Property or the Agent, any Lender or
any Applicable Lending Office.

“Governmental Requirement” shall mean
any law, statute, code, ordinance, order, determination, executive order, rule, regulation, judgment, decree,
injunction, franchise, permit, certificate, license, authorization or other
directive or requirement (whether or not having the force of law), including,
without limitation, Environmental Laws, energy regulations and occupational,
safety and health standards or controls, of any Governmental Authority.

“GP Incentive Compensation Payments”
shall mean the quarterly incentive compensation payments paid to the General
Partner by the Borrower pursuant to that certain Fifth Amended and Restated
Incentive Compensation Agreement, dated as of August 9, 2006, as it may be
amended from time to time.

 “Granting Lender”
shall have the meaning assigned such term in Section 12.06(e).

“Guarantor” shall mean each
Restricted Subsidiary that has executed a Guaranty.

“Guaranty” shall mean an agreement
executed by each Guarantor substantially in the form of Exhibit E.

“Hedging Agreements” shall mean any
commodity, interest rate or currency swap, cap, floor, collar, forward
agreement or other exchange or protection agreements or any option with respect
to any such transaction.

“Highest Lawful Rate” shall mean,
with respect to any Lender, the maximum nonusurious interest rate, if any, that
at any time or from time to time may be contracted for, taken, reserved,
charged or received on the Debt hereunder under laws applicable to such Lender
that are presently in effect or, to the extent allowed by law, under such
applicable laws that may hereafter be in effect and that allow a higher maximum
nonusurious interest rate than applicable laws now allow.

“Hybrid
Securities” means any trust preferred securities, or
deferrable interest subordinated debt with a maturity of at least 20 years,
which provides for the optional or mandatory deferral of interest or
distributions, issued by the Borrower, or any business trusts, limited
liability companies, limited partnerships or similar entities (i) substantially
all of the common equity, general partner or similar interests of which are
owned (either directly or indirectly through one or more wholly owned
Subsidiaries) at all times by the Borrower or any of its Subsidiaries, (ii)
that have been formed for the purpose of issuing such trust preferred
securities or deferrable interest subordinated debt, and (iii) substantially
all the assets of which consist of (A) subordinated debt of the Borrower or a

 12
 

 

Subsidiary of the
Borrower, and (B) payments made from time to time on the subordinated debt.

“Indemnified Parties” shall have the
meaning assigned such term in Section 12.03(a)(ii).

“Indemnity Matters” shall mean any
and all actions, suits, proceedings (including any investigations, litigation
or inquiries), claims, penalties, demands and causes of action made or
threatened against a Person and, in connection therewith, all losses,
liabilities, damages (excluding, however, indirect and consequential damages
and lost profits) or reasonable costs and expenses of any kind or nature
whatsoever incurred by such Person whether caused by the sole or concurrent negligence
of such Person seeking indemnification.

“Indenture” shall mean that certain
Indenture, dated as of July 10, 2003, between the Borrower and SunTrust Bank,
as Trustee, as amended and supplemented from time to time.

“Initial Funding” shall mean the
funding of the initial Loans or issuance of the initial Letters of Credit upon
satisfaction of the conditions set forth in Sections 6.01 and 6.02.

“Interest Period” shall mean, with
respect to any LIBOR Loan, the period commencing on the date such LIBOR Loan is
made and ending on the numerically corresponding day in the first, second,
third or sixth calendar month thereafter, as the Borrower may select as
provided in Section 2.02 (or such longer period as may be requested by the
Borrower and agreed to by the Lenders), except that each Interest Period that
commences on the last Business Day of a calendar month (or on any day for which
there is no numerically corresponding day in the appropriate subsequent
calendar month) shall end on the last Business Day of the appropriate
subsequent calendar month.

Notwithstanding
the foregoing: (i) no Interest Period may end after the Termination Date;
(ii) each Interest Period that would otherwise end on a day that is not a
Business Day shall end on the next succeeding Business Day (or, if such next
succeeding Business Day falls in the next succeeding calendar month, on the
next preceding Business Day); and (iii) no Interest Period shall have a
duration of less than one month and, if the Interest Period for any LIBOR Loans
would otherwise be for a shorter period, such Loans shall not be available
hereunder.

“Issuing Bank” shall mean SunTrust or
any other Lender agreed to among the Borrower, the Agent and such Lender to
issue Letters of Credit.

“Laurel Pipe Line” shall mean Laurel
Pipe Line Company, L.P., a Delaware limited partnership.

“LC Commitment” shall mean
$400,000,000.

 13
 

 

“LC Exposure” at any time shall mean
the aggregate face amount of all undrawn and uncancelled Letters of Credit and
the aggregate of all amounts drawn under all Letters of Credit and not yet
reimbursed.

“LC Payment Notice” shall have the
meaning assigned such term in Section 2.09(c).

“Lender Termination Date” shall have the meaning assigned to such term in
Section 5.06(c).

“Lenders” shall have the meaning
assigned such term in the preamble to this Agreement.

“Letter of Credit Agreements” shall
mean the written agreements with the Issuing Bank, as issuing lender for any
Letter of Credit, executed in connection with the issuance by the Issuing Bank
of the Letters of Credit, such agreements to be on the Issuing Bank’s customary
form for letters of credit of comparable amount and purpose as from time to
time in effect or as otherwise agreed to by the Borrower and the Issuing Bank.

“Letters of Credit” shall mean (i)
the letters of credit issued pursuant to Section 2.01(c) and all
reimbursement obligations pertaining to any such letters of credit and (ii) the
Existing Letters of Credit.

“LIBOR” shall mean, for any
Interest Period, the rate per annum equal to the offered rate for deposits in
Dollars for a period equal to such Interest Period appearing on the page of Bloomberg reporting service, or such similar
service as determined by the Agent, that displays the British Bankers’ Association
interest settlement rates for deposits in U.S. Dollars, as of 11:00 a.m. (London, England time) on the
date that is two (2) Business Days prior to the first day of such Interest
Period, or if such page is unavailable from Bloomberg reporting service for any reason at such time, the rate
of interest determined by the Agent to be the average (rounded upward, if
necessary, to the nearest 1/100th of 1%) of the rates per annum at which
deposits in U.S. Dollars are offered to the Agent two (2) Business Days
preceding the first day of such Interest Period by leading reference banks in
the London interbank market as of 10:00 a.m. for delivery on the first day of
such Interest Period, for the number of days comprised therein and in an amount
comparable to the amount of the Agent’s portion of the relevant LIBOR
borrowing.

“LIBOR Loans” shall mean Loans that
bear interest at rates based upon the LIBOR Rate.

“LIBOR Rate” shall mean, with respect
to any LIBOR Loan, a rate per annum (rounded upwards, if necessary, to the
nearest 1/100 of 1%) determined by the Agent to be equal to the quotient of
(i) LIBOR for the Interest Period for such Loan divided by (ii) 1
minus the Reserve Requirement for such Loan for such Interest Period.

“Lien” shall mean any interest in
Property securing an obligation owed to, or a claim by, a Person other than the
owner of the Property, whether such interest is based on the common law,
statute or contract, and whether such obligation or claim is fixed or

 14
 

 

contingent,
and including but not limited to the lien or security interest arising from a
mortgage, encumbrance, pledge, security agreement, conditional sale or trust
receipt or a lease, consignment or bailment for security purposes.  The term “Lien” shall include reservations, exceptions, encroachments,
easements, rights of way, covenants, conditions, restrictions, leases and other
title exceptions and encumbrances affecting Property.  Any Person shall be deemed to be the owner of
any Property that it has acquired or holds subject to a conditional sale
agreement, or leases under a financing lease or other arrangement, pursuant to
which title to the Property has been retained by or vested in some other Person
in a transaction intended to create a financing.

“Loan Documents” shall mean this Agreement,
the Letters of Credit, the Guaranties, the Letter of Credit Agreements, the Fee
Letters, and any and all other agreements or instruments now or hereafter
executed and delivered by the Borrower or any other Person (other than
participation or similar agreements between any Lender and any other lender or
creditor with respect to any Debt hereunder) in connection with, or as security
for or guaranty of the payment or performance of this Agreement, or
reimbursement obligations under the Letters of Credit, as such agreements may
be amended, supplemented or restated from time to time.

“Loans” shall mean the loans as
provided for by Sections 2.01(a) and (b). 
“Loans” shall include the Revolving Credit Loans and the Swing Line
Loans.

“Material Adverse Effect” shall mean
any material and adverse effect on (i) the financial condition or results
of operations of the Borrower and the Restricted Subsidiaries, taken as a
whole, different from those reflected in the Financial Statements or from the
facts represented or warranted in any Loan Document, or (ii) the ability
of the Borrower and the Restricted Subsidiaries, taken as a whole, to carry out
their business as of the date hereof or as proposed as of the date hereof to be
conducted or to meet their obligations under the Loan Documents on a timely
basis.

“Material
Project” means the construction or expansion of any
capital project of the Borrower or any of its Consolidated Subsidiaries, the
aggregate capital cost of which exceeds $20,000,000.

“Material
Project EBITDA Adjustments” means, with respect to each
Material Project:

(A)                              prior
to the Commercial Operation Date of a Material Project (but including the
fiscal quarter in which such Commercial Operation Date occurs), a percentage
(equal to the then-current completion percentage of such Material Project) of
an amount to be approved by the Agent as the projected EBITDA of Borrower
attributable to such Material Project for the first 12-month period following
the scheduled Commercial Operation Date of such Material Project (such amount
to be determined based on contracts relating to such Material Project, the
creditworthiness of the other parties to such contracts, and projected revenues
from such contracts, capital costs and expenses, scheduled Commercial Operation
Date, and other factors reasonably deemed appropriate by the Agent), which may,
at the Borrower’s option, be added to actual

 15
 

 

EBITDA for the Borrower
for the fiscal quarter in which construction of such Material Project commences
and for each fiscal quarter thereafter until the Commercial Operation Date of
such Material Project (including the fiscal quarter in which such Commercial
Operation Date occurs, but net of any actual EBITDA of the Borrower
attributable to such Material Project following such Commercial Operation
Date); provided that if the actual Commercial
Operation Date does not occur by the scheduled Commercial Operation Date, then
the foregoing amount shall be reduced, for quarters ending after the scheduled
Commercial Operation Date to (but excluding) the first full quarter after its
actual Commercial Operation Date, by the following percentage amounts depending
on the period of delay (based on the period of actual delay or then-estimated
delay, whichever is longer):  (i) 90 days
or less, 0%, (ii) longer than 90 days, but not more than 180 days, 25%, (iii)
longer than 180 days but not more than 270 days, 50%, and (iv) longer than 270
days, 100%; and

(B)                                beginning
with the first full fiscal quarter following the Commercial Operation Date of a
Material Project and for the two immediately succeeding fiscal quarters, an
amount to be approved by the Agent as the projected EBITDA of Borrower
attributable to such Material Project (determined in the same manner as set
forth in clause (A) above) for the balance of the four full fiscal quarter
period following such Commercial Operation Date, which may, at the Borrower’s
option, be added to actual EBITDA for the Borrower for such fiscal quarters
(but net of any actual EBITDA of the Borrower attributable to such Material
Project following such Commercial Operation Date).

Notwithstanding the
foregoing:

(i)                                        no
such additions shall be allowed with respect to any Material Project unless:

(a)                                      not
later than 30 days prior to the delivery of any certificate required by the
terms and provisions of Section 8.01(a) or (b) to the extent Material Project
EBITDA Adjustments will be made to EBITDA in determining compliance with the
Section 9.12, the Borrower shall have delivered to the Agent written pro forma
projections of EBITDA of the Borrower attributable to such Material Project,
and

(b)                                     prior
to the date such certificate is required to be delivered, the Agent shall have
approved (such approval not to be unreasonably withheld, conditioned or
delayed) such projections and shall have received such other information and
documentation as the Agent may reasonably request, all in form and substance
reasonably satisfactory to the Agent, and

(ii)                                     the
aggregate amount of all Material Project EBITDA Adjustments during any period
shall be limited to 20% of the total actual EBITDA of the Borrower for such
period (which total actual EBITDA shall be determined without including any
Material Project EBITDA Adjustments).

 16
 

 

“Moody’s” shall mean Moody’s
Investors Service, Inc., or any successor thereto.

“Multiemployer Plan” shall mean a
Plan defined as such in Section 3(37) or 4001(a)(3) of ERISA.

“New Lender” shall have the meaning assigned such term in Section 2.11.

“Note Agreements” shall mean each of
(i) the Underwriting Agreement, dated July 7, 2003, among the Borrower, Buckeye
Pipe Line Company (predecessor to Buckeye GP Holdings L.P.) and J.P. Morgan
Securities Inc. and (ii) the Purchase Agreement, dated August 14, 2003, among
the Borrower, Buckeye Pipe Line Company (predecessor to Buckeye GP Holdings
L.P.) and the initial purchasers named therein.

“Notice of Termination” shall have the meaning assigned such term in
Section 5.06(a).

“Other Taxes” shall
have the meaning assigned such term in Section 4.06(b).

“PBGC” shall mean the Pension Benefit
Guaranty Corporation or any entity succeeding to any or all of its functions.

“Percentage Share” shall mean, for
each Lender, the percentage obtained by dividing such Lender’s Revolving Credit
Commitment Amount by the Aggregate Revolving Credit Commitments.

“Person” shall mean any individual,
corporation, company, voluntary association, partnership, joint venture, trust,
unincorporated organization or government or any agency, instrumentality or
political subdivision thereof, or any other form of entity.

“Plan” shall mean any employee
pension benefit plan, as defined in Section 3(2) of ERISA, that
(i) is currently or hereafter sponsored, maintained or contributed to by
the Borrower, any Subsidiary of the Borrower or an ERISA Affiliate or
(ii) was at any time during the preceding six calendar years sponsored,
maintained or contributed to by the Borrower, any Subsidiary of the Borrower or
an ERISA Affiliate.

“Post-Default Rate” shall mean, in
respect of any principal of any Loan or any other amount payable by the
Borrower under this Agreement or any other Loan Document, a rate per annum
equal to 2% per annum above the rate of interest applicable from time to time
to Base Rate Loans as provided in Section 3.02(a)(i), but in no event to exceed
the Highest Lawful Rate; provided however,
for any LIBOR Loan, the Post-Default Rate shall be 2% per annum above the interest rate for such Loan as provided
in Section 3.02(a)(ii), but in no event to exceed the Highest Lawful Rate.

“Prime Rate” shall mean the rate of
interest from time to time announced publicly by the Agent at the Principal
Office as its prime commercial lending rate. 
Such rate is set by the Agent as a general reference rate of interest,
taking into account such factors as the Agent may deem appropriate, it being
understood that many of the Agent’s commercial

 17
 

 

or
other loans are priced in relation to such rate, that it is not necessarily the
lowest or best rate actually charged to any customer and that the Agent may
make various commercial or other loans at rates of interest having no
relationship to such rate.

“Principal Office” shall mean the
principal office of the Agent, presently located at 303 Peachtree Street,
Atlanta, Georgia 30308.

“Prior Lien” shall mean any Lien not
created by the Borrower or any Restricted Subsidiary, which at any time is a
lien upon the lands over which the Borrower or any Restricted Subsidiary holds
easements or rights-of-way for pipeline purposes, or upon Properties with
respect to which the Borrower’s or such Restricted Subsidiary’s interest is
subordinate to such Lien, and that does not secure bonds, notes, other
indebtedness, taxes, assessments or other charges that have been assumed or
guaranteed by the Borrower or any Restricted Subsidiary or for which the
Borrower or any Restricted Subsidiary has otherwise become liable or on which
the Borrower or any Restricted Subsidiary customarily pays interest charges.

“Property” shall mean any interest in
any kind of property or asset, whether real, personal or mixed, or tangible or
intangible.

“Quarterly Dates” shall mean the last
day of each March, June, September and December, in each year, the first of
which shall be December 31, 2006.

“Ratings Affirmation” means, with
respect to any particular action or proposed action, the affirmation by each of
S&P and Moody’s or, if either or both of such ratings agencies do not then
rate the Notes, by such other nationally recognized statistical rating
organization (as defined in the rules and regulations of the SEC) then having
issued long-term debt ratings for the Notes, that such long-term debt ratings
will not be lowered as a result of the taking of such action or proposed
action.

“Reference Rating” shall mean the
ratings assigned by S&P and Moody’s to the senior unsecured non-credit enhanced
long-term debt of the Borrower.  If such
ratings assigned by S&P and Moody’s are not comparable (i.e., a “split rating”), and (i) the ratings differential is less than two levels, then the
higher of such two ratings shall control or (ii) the ratings differential is
two levels or more, then the ratings one below the higher of such two ratings
shall control, unless either rating is below BBB- (in the case of S&P) or
Baa3 (in the case of Moody’s), in which case the lower of the two ratings shall
control.

“Regulation D” shall mean
Regulation D of the Board of Governors of the Federal Reserve System (or
any successor), as the same may be amended or supplemented from time to time.

“Regulatory Change” shall mean, with
respect to any Lender, any change after the date hereof in any Governmental
Requirement (including Regulation D) or the adoption or making after such
date of any interpretations, directives or requests applying to a class of
lenders (including such Lender or its Applicable Lending Office) of or under
any Governmental Requirement (whether or not having the force of law) by any
Governmental Authority charged with the interpretation or administration
thereof.

 18

 

“Replacement
Lender” shall have the meaning set forth in Section
5.06(b).

“Required Lenders” shall mean, at any
time while no Loans are outstanding, Lenders having more than 50% of the
Aggregate Revolving Credit Commitments and, at any time Loans are outstanding,
Lenders holding more than 50% of the outstanding aggregate principal amount of
the Loans and LC Exposure (without regard to any sale by a Lender of a
participation in any Loan under Section 12.06(c)).

“Required Payment” shall have the
meaning assigned such term in Section 4.04.

“Reserve Requirement” shall mean, for
any Interest Period for any LIBOR Loan, the average maximum rate at which
reserves (including any marginal, supplemental or emergency reserves) are
required to be maintained during such Interest Period under regulations issued
from time to time by the Board of Governors of the Federal Reserve System (or
any successor) for determining the maximum reserve requirement (including any
emergency, supplemental or other marginal reserve requirement) for the Lenders
with respect to liabilities or assets consisting of or including “eurocurrency
liabilities” (as defined in Regulation D of the Board of Governors of the
Federal Reserve System, as in effect from time to time) having a term equal to
such Interest Period.

Without
limiting the effect of the foregoing, the Reserve Requirement shall reflect any
other reserves required to be maintained by such member banks by reason of
any Regulatory Change against (i) any
category of liabilities that includes deposits by reference to which LIBOR is
to be determined as provided in the definition of “LIBOR” or (ii) any category of extensions of credit
or other assets which include a LIBOR Loan.

“Responsible Officer” shall mean, as
to any Person, the Chief Executive Officer, the President or any Vice President
of such Person and, with respect to financial matters, the term “Responsible
Officer” shall include the Chief Financial
Officer of such Person.  Unless otherwise
specified, all references to a Responsible Officer herein shall mean a
Responsible Officer of the General Partner.

“Restricted Subsidiary”
shall mean those Persons listed on Exhibit D-1 and any Subsidiary of the
Borrower or of any Restricted Subsidiary that has not been designated by the
Borrower, within 30 days after its creation or acquisition, as an Unrestricted
Subsidiary.  The Borrower may thereafter
redesignate an Unrestricted Subsidiary as a Restricted Subsidiary, and it will
thereafter be a Restricted Subsidiary; provided,
that such Restricted Subsidiary may not thereafter be redesignated as an
Unrestricted Subsidiary, and provided,
further, that no Subsidiary may be designated as an Unrestricted
Subsidiary at any time other than within 30 days after its creation or
acquisition.  To qualify as a Restricted
Subsidiary, such Subsidiary shall be in a line of business as is permitted for
the Borrower under the Borrower Partnership Agreement and shall have executed a
Guaranty (except in the case of Laurel Pipe Line, which the Borrower shall
cause to execute a Guaranty pursuant to Section 8.04), and at the time
such Subsidiary is designated as a Restricted Subsidiary no Default shall exist
or result from such designation.

 19
 

 

“Revolving
Credit  Commitment”
shall mean, for any Lender, its obligation to make Revolving Credit Loans as
provided in Section 2.01(a), and to participate in Swing Line Loans as provided
in Section 2.01(b) and in Letters of Credit as provided in Section 2.01(c), up
to such Lender’s Revolving Credit Commitment Amount in each case as such amount
may be reduced or increased from time to time pursuant to Section 2.03(a),
2.03(c), or 12.06(b).

“Revolving
Credit Commitment Amount” shall mean, as to each Lender,
the  amount of such Lender’s Revolving
Credit Commitment set forth opposite such Lender’s name on Annex I under the
caption “Revolving Credit Commitment”, as reduced or increased from time to
time in accordance with Section 2.03(a), 2.03(c) or 12.06(b).

“Revolving Credit Loans” shall mean
Loans made pursuant to Section 2.01(a).

“S&P” shall mean Standard &
Poor’s Ratings Services, a division of the McGraw-Hill Companies, Inc., or any
successor thereto.

“Sale-Leaseback Attributable Debt”
shall mean, as to any particular lease relating to a Sale-Leaseback
Transaction, the amount of the net sale proceeds derived from the sale or
transfer to the Borrower or any Restricted Subsidiary of the Property involved.

“Sale-Leaseback Transaction” shall
mean a transaction or series of transactions pursuant to which the Borrower or
any Restricted Subsidiary shall sell or transfer to any Person any Property,
whether now owned or hereafter acquired, and as part of the same transaction or
series of transactions, the Borrower or any Restricted Subsidiary shall rent or
lease as lessee, or similarly acquire the right to possession or use of, such
Property or one or more Properties
which it intends to use for the same purpose or purposes as such Property.

“SEC” shall mean the Securities and
Exchange Commission or any successor Governmental Authority.

“Senior Notes” shall mean (i) the
4.625% Notes, in the aggregate principal amount of $300,000,000, due 2013, (ii)
the 5.30% Notes, in the
aggregate principal amount of $275,000,000, due 2014, (iii) the 5.125% Notes,
in the aggregate principal amount of $125,000,000, due 2017, and (iv) the 6.75% Notes, in the aggregate principal
amount of $150,000,000, due 2033; each issued pursuant to the Indenture.

“SPC” shall have the meaning assigned
such term in Section 12.06(e).

“Special Entity” of any Person shall
mean any joint venture, limited liability company or partnership, general or
limited partnership or any other type of partnership or company other than a
corporation in which such Person or one or more of its Subsidiaries is a
member, owner, partner or joint venturer and either (a) owns, directly or
indirectly, at least a majority of the equity or other ownership interests of
such entity, or (b) controls such entity, but excluding any tax
partnerships that are not classified as partnerships under state law.  For purposes of this definition, any Person
that owns directly or indirectly an equity investment in another Person that
allows the first Person to manage

 20
 

 

or
elect managers having the power to manage the normal activities of such second
Person will be deemed to “control” such second Person (e.g.,
a sole general partner controls a limited partnership).

“Subsidiary” of any Person shall mean
(i) any corporation of which at least a majority of the outstanding shares
of stock having by the terms thereof ordinary voting power to elect a majority
of the board of directors of such corporation (irrespective of whether or not
at the time stock of any other class or classes of such corporation shall have
or might have voting power by reason of the happening of any contingency) is at
the time directly or indirectly owned or controlled by such Person or one or
more of its Subsidiaries or by such Person and one or more of its Subsidiaries
and (ii) any Special Entity.  Unless
otherwise specified, all references to a Subsidiary herein shall mean a
Subsidiary of the Borrower.

“Swing Line Commitment” shall mean,
for the Swing Line Lender, its obligation to make Swing Line Loans up to
$30,000,000.

“Swing Line Facility” shall mean the
facility pursuant to Section 2.01(b).

“Swing Line Lender” shall mean
SunTrust or such other Lender as Agent, Borrower and such Lender shall agree.

“Swing Line Loans” shall mean the
Loans made pursuant to Section 2.01(b).

“SunTrust” shall have the meaning assigned such term in the preamble to this
Agreement.

“Taxes” shall have the meaning
assigned such term in Section 4.06(a).

“Terminated Lender” shall have the meaning assigned such term in Section 5.06(a).

“Termination Date” shall mean the
earlier to occur of (i) the fifth anniversary of the date hereof,
subject to the extension thereof pursuant to Section 2.11,  and
(ii) the date that the Revolving Credit Commitments are terminated
pursuant to Section 2.03(a) or 10.02; provided,
however, that the Termination Date of
any Lender that is a Declining Lender with respect to any requested extension
pursuant to Section 2.11 shall be the earlier of (x) the Termination Date in
effect immediately prior to such extension and (y) the date on which the
Revolving Credit Commitments are terminated pursuant to Section 2.03(a) or 10.02.

“Type” shall mean, with respect to
any Loan, a Base Rate Loan or a LIBOR Loan.

“Unrestricted Subsidiary” shall mean
those Persons listed on Exhibit D-2 and any Subsidiary of the Borrower or any
Restricted Subsidiary that has been designated by the Borrower as an “Unrestricted
Subsidiary” within 30 days after the time
of its creation or acquisition; provided that
no Debt or other obligation of such Unrestricted Subsidiary may be assumed or
guaranteed by the Borrower or any Restricted Subsidiary except to

 21
 

 

the
extent otherwise permitted under Section 9.01(e), nor may any asset of the
Borrower or any Restricted Subsidiary, directly or indirectly, contingently or
otherwise, become encumbered or otherwise subject to the satisfaction thereof
except to the extent otherwise permitted under Section 9.02(d).

“Utilization Percentage” shall mean, as of any time for the determination thereof, the percentage
obtained by dividing the aggregate principal amount of all Loans outstanding
plus the LC Exposure by the Aggregate Revolving Credit Commitments then in
effect.

SECTION 1.02. 
Accounting Terms and Determinations.

Unless otherwise
specified herein, all accounting terms used herein shall be interpreted, all
determinations with respect to accounting matters hereunder shall be made, and
all financial statements and certificates and reports as to financial matters
required to be furnished to the Agent or the Lenders hereunder shall be
prepared, in accordance with GAAP, applied on a basis consistent with the
audited financial statements of the Borrower referred to in Section 7.02
(except for changes concurred with by the Borrower’s independent public
accountants).

Article II

Commitments

SECTION 2.01. 
Loans and Letters of Credit.

(a)                                  Revolving Credit
Loans.  Each
Lender severally agrees, on the terms and conditions of this Agreement, to make
loans to the Borrower during the period from and including (i) the date
hereof or (ii) such later date that such Lender becomes a party to this
Agreement as provided in Section 12.06(b), to and up to, but excluding,
the Termination Date in an aggregate principal amount at any one time
outstanding up to, but not exceeding, such Lender’s Revolving Credit Commitment
Amount as then in effect; provided, however,
that the aggregate principal amount of all such Revolving Credit Loans by all
Lenders hereunder at any one time outstanding, plus the LC Exposure, plus the
amount outstanding under the Swing Line Facility shall not exceed the Aggregate
Revolving Credit Commitments.  Subject to
the terms of this Agreement, during the period from the date hereof to and up
to, but excluding, the Termination Date, the Borrower may borrow, repay and
reborrow the amount described in this Section 2.01(a).

(b)                                 Swing Line Loans.

(i)                                     Notwithstanding any other provision of this
Agreement to the contrary, in order to administer the revolving facility under
Section 2.01(a) above in an efficient manner and to minimize the transfer
of funds between the Agent and the Lenders, the Swing Line Lender shall make
available Swing Line Loans to the Borrower at the election of Borrower prior to
the Termination Date.  The Swing Line
Lender shall not make any Swing Line Loan pursuant hereto (i) if the
Borrower is not in compliance with all the conditions to the making of Loans
set forth in this Agreement, (ii) if after giving effect to such Swing
Line Loan, the outstanding Swing Line Loans exceed the Swing Line Commitment,
or (iii) if after giving effect to such Swing Line Loan, the sum of all

 22
 

 

Revolving
Credit Loans and Swing Line Loans then outstanding, plus LC Exposure exceeds
the Aggregate Revolving Credit Commitments. 
Loans made pursuant to this Section 2.01(b) shall be limited to
Loans bearing interest at the Base Rate or such other rate of interest as
agreed upon by the Borrower and the Swing Line Lender.

(ii)                                  Subject to the terms of this Agreement, during
the period from the Closing Date to, but excluding, the Termination Date, the
Borrower may borrow, repay and reborrow Swing Line Loans under this
Section 2.01(b).  Each repayment of
a Swing Line Loan shall be in integral multiples of $100,000 or the unpaid
amount of the Swing Line Loans outstanding. 
The minimum outstanding amount of Swing Line Loans shall be $100,000.

(iii)                               If the Borrower instructs the Swing Line Lender
to debit its demand deposit account in an amount of any payment with respect to
a Swing Line Loan, or the Swing Line Lender otherwise receives repayment after
12:00 noon Atlanta time, on a Business Day, such payment shall be deemed
received on the next Business Day.

(iv)                              The Borrower and each Lender which is or may
become a party hereto acknowledge that all Swing Line Loans are to be made
solely by the Swing Line Lender to the Borrower, but that each Lender shall
share the risk of loss with respect to such Loans in an amount equal to such
Lender’s Percentage Share of such Swing Line Loan.  Upon demand made by the Swing Line Lender,
each Lender (including the Swing Line Lender) shall, according to its
Percentage Share of such Swing Line Loan, promptly provide to the Swing Line
Lender its purchase price therefor in an amount equal to its Percentage Share
therein, in which case such Swing Line Loan shall be deemed from and after such
date a Loan made under Section 2.01(a). 
The obligation of each Lender to so provide its purchase price to the
Swing Line Lender shall be absolute and unconditional and shall not be affected
by the occurrence of an Event of Default or any other occurrence or event.

(c)                                  Letters of
Credit.  During the period from and including
the date hereof to, but excluding, the Termination Date, the Issuing Bank, as
issuing bank for the Lenders, agrees, on the terms and conditions of this
Agreement, to extend credit for the account of any Account Party at any time and from time to time by issuing,
renewing, extending or reissuing Letters of Credit.  The
Issuing Bank shall not issue, renew, extend or reissue Letters of Credit pursuant hereto (i) if the LC
Exposure at the time of such extension of credit exceeds the lesser of
(A) the LC Commitment and (B) the Aggregate Revolving Credit
Commitments, as then in effect, minus the aggregate principal amount of all
Loans then outstanding or (ii) if the Borrower
is not in compliance with all the conditions to the making of such extension of
credit as set forth in this Agreement. 
The Lenders shall participate in such Letters of Credit according to
their respective Percentage Shares.  Each
Letter of Credit shall (i) be issued by the Issuing Bank, (ii) contain
such terms and provisions as are reasonably required by the Issuing Bank,
(iii) be for the account of the Account Party named therein and
(iv) expire not later than the earlier of (A) two years from the date of issuance and (B) five days
before the Termination Date provided that no Letter of Credit may expire
after the Termination Date of any Declining Lender who did not agree to extend
the Termination Date in accordance with Section 2.11 if, after giving effect to
such issuance, the aggregate amount of Letters of Credit expiring after such
Termination Date shall

 23
 

 

exceed the aggregate Commitments of the
Extending Lenders (including any replacement Lenders) after such Termination
Date.

(d)                                 Limitation on
Types of Loans.  Subject to the other terms and provisions of
this Agreement, at the option of the Borrower, the Loans (other than Swing Line
Loans) may be Base Rate Loans or LIBOR Loans; provided
that, without the prior written consent of the Required Lenders, no more than
eight LIBOR Loans may be outstanding at any time.

SECTION 2.02. 
Borrowings, Continuations and Conversions of Revolving Credit Loans;
Letters of Credit.

(a)                                  Borrowings.  The
Borrower shall give the Agent (which shall promptly notify the Lenders) advance
notice as hereinafter provided of each borrowing under Section 2.01(a),
which shall specify (i) the aggregate amount of such borrowing,
(ii) the Type and (iii) the date (which shall be a Business Day) of
the Loans to be borrowed, and (iv) in the case of LIBOR Loans, the
duration of the Interest Period therefor.

(b)                                 Minimum Amounts.  All Base
Rate Loan borrowings shall be in amounts of at least $1,000,000 or the
remaining balance of the Aggregate Revolving Credit Commitments, if less, or
any whole multiple of $1,000,000 in excess thereof, and all LIBOR Loans shall
be in amounts of at least $3,000,000 or any whole multiple of $1,000,000 in
excess thereof.  All Swing Line Loans
shall be in amounts of at least $1,000,000 or any whole multiple of $100,000 in
excess thereof.

(c)                                  Notices.  All
borrowings, continuations and conversions shall require advance written notice
to the Agent (which shall promptly notify the Lenders) in the form of Exhibit A
(or telephonic notice promptly confirmed by such a written notice), which in
each case shall be irrevocable, from the Borrower to be received by the Agent
not later than 11:00 a.m. Atlanta time on the date of each Base Rate Loan
borrowing and not later than 11:00 a.m. Atlanta time at least three Business
Days prior to the date of each LIBOR Loan borrowing, continuation or
conversion.  Without in any way limiting the
Borrower’s obligation to confirm in writing any telephonic notice, the Agent
may act without liability upon the basis of telephonic notice believed by the
Agent in good faith to be from the Borrower prior to receipt of written
confirmation.  In each such case, the
Borrower hereby waives the right to dispute the Agent’s record of the terms of
such telephonic notice except in the case of gross negligence or willful
misconduct by the Agent.

(d)                                 Continuation
Options.  Subject to the provisions made in this Section 2.02(d),
the Borrower may elect to continue all or any part of any LIBOR Loan beyond the
expiration of the then current Interest Period relating thereto by giving
advance notice as provided in Section 2.02(c) to the Agent (which shall
promptly notify the Lenders) of such election, specifying the amount of such
Loan to be continued and the Interest Period therefor.  In the absence of such a timely and proper
election, the Borrower shall be deemed to have elected to convert such LIBOR
Loan to a Base Rate Loan pursuant to Section 2.02(e).  All or any part of any LIBOR Loan may be
continued as provided herein, provided that
(i) any continuation of any such Loan shall be (as to each Loan as
continued for an applicable Interest Period) in amounts of at least $3,000,000
or any whole multiple of $1,000,000 in excess thereof and (ii) no Default

 24
 

 

shall have occurred and be
continuing.  If a Default shall have
occurred and be continuing, each LIBOR Loan shall be converted to a Base Rate
Loan on the last day of the Interest Period applicable thereto.

(e)                                  Conversion
Options.  The Borrower may elect to convert all or any
part of any LIBOR Loan on the last day of the then current Interest Period
relating thereto to a Base Rate Loan by giving advance notice to the Agent
(which shall promptly notify the Lenders) of such election.  Subject to the provisions made in this
Section 2.02(e), the Borrower may elect to convert all or any part of any
Base Rate Loan (other than a Swing Line Loan) at any time and from time to time
to a LIBOR Loan by giving advance notice as provided in
Section 2.02(c) to the Agent (which shall promptly notify the
Lenders) of such election.  All or any
part of any outstanding Loan may be converted as provided herein, provided that (i) any conversion of any Base Rate Loan
into a LIBOR Loan shall be (as to each such Loan into which there is a
conversion for an applicable Interest Period) in amounts of at least $3,000,000
or any whole multiple of $1,000,000 in excess thereof and (ii) no Default
shall have occurred and be continuing. 
If a Default shall have occurred and be continuing, no Base Rate Loan
may be converted into a LIBOR Loan.

(f)                                    Advances.  Not later
than 11:00 a.m. Atlanta time for LIBOR Loans and 1:00 p.m. Atlanta time for
Base Rate Loans on the date specified for each borrowing hereunder, each Lender
shall make available the amount of the Loan to be made by it on such date to
the Agent, to an account which the Agent shall specify, in immediately
available funds, for the account of the Borrower.  The amounts so received by the Agent shall,
subject to the terms and conditions of this Agreement, be made available to the
Borrower by depositing the same, in immediately available funds, in an account
of the Borrower, designated by the Borrower and maintained at the Principal
Office.

(g)                                 Letters of
Credit.  The Borrower shall give the Issuing
Bank (with a copy to the Agent) advance notice to be received by the Issuing
Bank not later than 11:00 a.m. Atlanta time not less than three Business Days
prior thereto of each request for the issuance, and at least three Business
Days prior to the date of the renewal or extension, of a Letter of Credit
hereunder which request shall specify (i) the amount of such Letter of
Credit, (ii) the date (which shall be a Business Day) such Letter of
Credit is to be issued, renewed or extended, (iii) the duration thereof,
(iv) the name and address of the beneficiary thereof, (v) the name of the Account Party on
whose behalf the Letter of Credit shall be issued, (vi) the form of the
Letter of Credit and (vii) such other information as the Issuing Bank may
reasonably request, all of which shall be reasonably satisfactory to the
Issuing Bank.  Subject to the terms and
conditions of this Agreement, on the date specified for the issuance, renewal
or extension of a Letter of Credit, the Issuing Bank shall issue, renew or
extend such Letter of Credit to the beneficiary thereof.

In conjunction with the
issuance of each Letter of Credit, the Borrower shall execute a Letter of
Credit Agreement.  In the event of any
conflict between any provision of a Letter of Credit Agreement and this
Agreement, the Borrower, the Issuing Bank, the Agent and the Lenders hereby
agree that the provisions of this Agreement shall govern.

 25
 

 

The Issuing Bank will
send to the Borrower and each Lender, immediately upon issuance of any Letter
of Credit, or an amendment thereto, a true and complete copy of such Letter of
Credit or such amendment.

SECTION 2.03. 
Changes of Commitments; Additional Revolving Credit Commitment Amount.

(a)                                  The Borrower shall have the right to terminate or
to reduce the amount of the Aggregate Revolving Credit Commitments at
any time, or from time to time, upon not less than three Business Days’ prior notice to the Agent (which shall promptly
notify the Lenders) of each such termination or reduction, which notice shall
specify the effective date thereof and the amount of any such reduction (which
shall not be less than $2,000,000 or any whole multiple of $2,000,000 in excess
thereof) and shall be irrevocable and effective only upon receipt by the Agent.

(b)                                 The Aggregate Revolving Credit Commitments once
terminated or reduced may not be reinstated, including without limitation
pursuant to clause (c).

(c)                                  (i) So
long as no Event of Default has occurred and is continuing both on the date of
such request and the effective date of such increase, from time to time after
the Closing Date, Borrower may, upon at least 30 days’ written notice to the
Agent, who shall promptly notify the Lenders, propose to increase the Aggregate
Revolving Credit Commitment by an amount not to exceed $200,000,000 (the amount
of any such increase, the “Additional Revolving Credit Commitment Amount”).  Each Lender shall have the right for a period
of 15 days following receipt of such notice, to elect by written notice to the
Borrower and the Agent to increase its Revolving Credit Commitment by a
principal amount equal to or less than its Percentage Share of the Additional
Revolving Credit Commitment Amount.  No
Lender (or any successor thereto) shall have any obligation to increase its
Revolving Credit Commitment or its other obligations under this Agreement and
the other Loan Documents, and any decision by a Lender to increase its
Revolving Credit Commitment shall be made in its sole discretion independently
from any other Lender.

(ii) If any Lender shall not
elect to increase its Revolving Credit Commitment by the full amount permitted
by subsection (i) above, the Borrower may designate another bank or other
financial institution (which may be, but need not be, one or more of the
existing Lenders) which at the time agrees to, in the case of any such Person
that is an existing Lender, increase its Revolving Credit Commitment and in the
case of any other such Person (an “Additional
Lender”), become a party to this Agreement; provided,
however, that any new bank or financial institution must be
acceptable to the Agent, which acceptance will not be unreasonably withheld or
delayed.  The sum of the increases in the
Revolving Credit Commitments of the existing Lenders pursuant to this
subsection (ii) plus the Revolving Credit Commitments of the Additional Lenders
shall not in the aggregate exceed the unsubscribed amount of the Additional
Revolving Credit Commitment Amount.

(iii)  An increase in the aggregate amount of the
Revolving Credit Commitments pursuant to this Section 2.03(c) shall become
effective upon the receipt by the Agent of an agreement in form and substance
satisfactory to the Agent signed by the Borrower, by each Additional Lender and
by each other Lender whose Revolving Credit Commitment is to be

 26
 

 

increased, setting forth the
new Revolving Credit Commitments of such Lenders and setting forth the
agreement of each Additional Lender to become a party to this Agreement and to
be bound by all the terms and provisions hereof, together with such evidence of
appropriate partnership authorization on the part of the Borrower with respect
to the increase in the Revolving Credit Commitments and such opinions of
counsel for the Borrower with respect to the increase in the Revolving Credit
Commitments as the Agent may reasonably request.

(iv)  Upon the acceptance of any such agreement by
the Agent, the Aggregate Revolving Credit Commitment shall automatically be
increased by the amount of the Revolving Credit Commitments added through such
agreement and Annex I shall automatically be deemed amended to reflect the
Revolving Credit Commitments of all Lenders after giving effect to the addition
of such Revolving Credit Commitments.

(v)  Upon any increase in the aggregate amount of
the Revolving Credit Commitments pursuant to this Section 2.03(c) that is not
pro rata among all Lenders, (x) within five Business Days, in the case of any
Base Rate Loans then outstanding, and at the end of the then current Interest
Period with respect thereto, in the case of any LIBOR Loans then outstanding,
the Borrower shall prepay such Loans in their entirety and, to the extent the
Borrower elects to do so and subject to the conditions specified in Article VI,
the Borrower shall reborrow Loans from the Lenders in proportion to their
respective Revolving Credit Commitments after giving effect to such increase,
until such time as all outstanding Loans are held by the Lenders in such
proportion and (y) effective upon such increase, the amount of the
participations held by each Lender in each Letter of Credit then outstanding
shall be adjusted such that, after giving effect to such adjustments, the
Lenders shall hold participations in each such Letter of Credit in the
proportion its respective Revolving Credit Commitment bears to the Aggregate
Revolving Credit Commitments after giving effect to such increase.

SECTION 2.04. 
Fees.

(a)                                  Facility Fee.  The Borrower shall pay to the Agent for the
account of each Lender a facility fee equal to the product of (i) the daily
average amount of such Lender’s Revolving Credit Commitment (regardless of
usage) and (ii) the rate per annum set
forth below in the columns identified as Level 1, Level 2,
Level 3, Level 4, and Level 5, as then applicable, determined by
reference to the Reference Rating from the date hereof in the case of each
Lender party to the Agreement on such date, and for each Lender becoming a
party to this Agreement after such date, and from the effective date specified
in the Assignment Agreement pursuant to which it became a Lender, in the case
of each other Lender, until the earlier to occur of the Termination Date and,
in the case of the termination in whole of a Lender’s Revolving Credit
Commitment pursuant to Section 2.03, the date of such termination, payable
on each Quarterly Date during such period, and on the Termination Date.

 27
 

 

 

	
   

  	
   

  	
  Level 1

  	
   

  	
  Level 2

  	
   

  	
  Level 3

  	
   

  	
  Level 4

  	
   

  	
  Level 5

  	
   

  
	
  S&P/Moody’s

  Ratings

  	
   

  	
  Reference Rating

  at least A-/A3

  	
   

  	
  Reference Rating

  Less than

  Level 1

  but at least

  BBB+/Baa1

  	
   

  	
  Reference Rating

  Less than Level 2 

  but at least

  BBB/Baa2

  	
   

  	
  Reference Rating

  Less than Level 3

  but at least

  BBB-/Baa3

  	
   

  	
  Reference Rating

  below Level 4 or

  unrated

  	
   

  
	
  Rate Per Annum

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Facility Fee

  	
   

  	
  0.050

  	
  %

  	
  0.070

  	
  %

  	
  0.090

  	
  %

  	
  0.110

  	
  %

  	
  0.125

  	
  %

  

 

Any
change in the facility fee will be effective as of the date on which S&P or
Moody’s, as the case may be, announces any change in the ratings used to
determine the Reference Rating.

(b)                                 Letter of Credit
Fees.

(i)                                     The Borrower agrees to pay the Agent, for the
account of each Lender, fees in respect of each outstanding Letter of Credit
based on such Lender’s Percentage Share of the daily average amount of the
maximum liability of the Issuing Bank existing from time to time under such
Letter of Credit (calculated separately for each Letter of Credit) at a rate
per annum equal to the Applicable Margin then in effect for LIBOR Loans; provided, however, that at any time interest on the Loans is
accruing at the Post-Default Rate, the rates for such fees shall be increased
to 2% over the Applicable Margin then in effect for LIBOR Loans.  Each Letter of Credit shall be deemed to be
outstanding up to the full face amount of the Letter of Credit until the
Issuing Bank has received the canceled Letter of Credit or a written
cancellation of the Letter of Credit from the beneficiary of such Letter of
Credit in form and substance acceptable to the Issuing Bank, or for any
reductions in the amount of the Letter of Credit (other than from a drawing),
written notification from the beneficiary of such Letter of Credit.  Such fees are payable quarterly in arrears on
each Quarterly Date and upon cancellation or expiration of each such Letter of
Credit.

(ii)                                  The Borrower agrees to pay the Issuing Bank, for
its own account, an issuing fee for issuing Letters of Credit on the daily
average amount of the maximum liability of the Issuing Bank existing from time
to time under such Letter of Credit (calculated separately for each Letter of
Credit) at the rate of 0.125% per annum, payable quarterly in arrears on each
Quarterly Date and upon cancellation or expiration of each such Letter of
Credit.

(iii)                               In addition to the fees in subsections (i) and
(ii) of Section 2.04(b), the Borrower agrees to pay the Issuing Bank on
demand the Issuing Bank’s customary letter of credit fees, including, without
limitation, amendment fees, negotiation and drawing fees, and other fees
customarily payable with respect to each Letter of Credit.

(c)                                  Fee Letters.  The
Borrower shall pay all fees set forth in the Fee Letters on the dates and to
the parties specified therein.

 28
 

 

SECTION 2.05. 
Several Obligations.

The failure of any Lender
to make any Loan to be made by it or to provide funds for disbursements or
reimbursements under Letters of Credit on the date specified therefor shall not
relieve any other Lender of its obligation to make its Loan or provide funds on
such date, but no Lender shall be responsible for the failure of any other
Lender to make a Loan to be made by such other Lender or to provide funds to be
provided by such other Lender.

SECTION 2.06. 
Noteless Agreement; Evidence of Indebtedness.

(a)                                  Each Lender shall maintain in accordance with its
usual practice an account or accounts evidencing the indebtedness of the Borrower
to such Lender resulting from each Loan made by such Lender from time to time,
including the amounts of principal and interest payable and paid to such Lender
from time to time hereunder.

(b)                                 The
Agent shall also maintain accounts in which it will record (i) the amount
of each Loan made hereunder, the Type thereof and the Interest Period (if any)
with respect thereto, (ii) the amount of any principal or interest due and
payable or to become due and payable from the Borrower to each Lender hereunder,
and (iii) the amount of any sum received by the Agent hereunder from the
Borrower and each Lender’s share thereof.

(c)                                  The
entries maintained in the accounts maintained pursuant to subsections (a) and
(b) above shall be prima facie
evidence of the existence and amounts of the obligations therein recorded; provided, however, that the failure of the Agent or any
Lender to maintain such accounts or any error therein shall not in any manner
affect the obligation of the Borrower to repay such obligations in accordance
with their terms.

(d)                                 Any
Lender may request that its Loans be evidenced by one or more promissory
notes.  In such event, the Borrower shall
prepare, execute and deliver to such Lender one or more promissory notes
payable to the order of such Lender and in a form acceptable to the Borrower
and the Agent.  Thereafter, the Loans
evidenced by such note(s) and interest thereon shall at all times (including
after any assignment pursuant to Section 12.06(b)) be represented by notes
from the Borrower, payable to the order of the payee named therein or any
assignee pursuant to Section 12.06(b), except to the extent that any such
Lender or assignee subsequently returns any such note for cancellation and
requests that the related Loans once again be evidenced as in subsections (a)
and (b) above.

SECTION 2.07. 
Prepayments.

(a)                                  Voluntary
Prepayments.  The Borrower may prepay the Base Rate Loans
upon not less than one (1) Business Day’s prior notice to the Agent (which
shall promptly notify the Lenders), which notice shall specify the prepayment
date (which shall be a Business Day) and the amount of the prepayment (which
shall be at least $1,000,000 or whole multiples of $500,000 in excess thereof
for Revolving Credit Loans that are Base Rate Loans and at least $500,000 or
whole multiples of $100,000 in excess thereof for Swing Line Loans, or the
remaining aggregate principal balance outstanding) and shall be irrevocable and
effective only upon receipt by the Agent, provided that
interest on the principal prepaid, accrued to the prepayment date, shall be
paid on the prepayment date.  The
Borrower may prepay LIBOR Loans on the same conditions

 29
 

 

as for Base Rate Loans (except
that prior notice to the Agent shall be not less than three Business Days for
LIBOR Loans and such payment shall be at least $3,000,000 or whole multiples of
$1,000,000 in excess thereof) and in addition such prepayments of LIBOR Loans
shall be subject to the terms of Section 5.05 and shall be in an amount
equal to all of the LIBOR Loans for the Interest Period prepaid.

(b)                                 Mandatory
Prepayments.  If, after giving effect to any termination or
reduction of the Aggregate Revolving Credit Commitments pursuant to
Section 2.03(a), the outstanding aggregate principal amount of the Loans
plus the LC Exposure exceeds the Aggregate Revolving Credit Commitments, the
Borrower shall (i) prepay the Revolving Credit Loans on the date of such
termination or reduction in an aggregate principal amount equal to the excess,
together with interest on the principal amount paid accrued to the date of such
prepayment, (ii) if any excess remains after prepaying all Revolving
Credit Loans prepay the Swing Line Loans on the date of such termination or
reduction in an aggregate principal amount equal to such remaining excess,
together with interest on the principal amount paid accrued to the date of such
prepayment, and (iii) if any excess remains after prepaying all of the
Loans because of LC Exposure, pay to the Agent on behalf of the Lenders an
amount equal to the excess to be held as cash collateral as provided in
Section 2.09(b) hereof.

(c)                                  Generally.  Prepayments permitted or required under this
Section 2.07 shall be without premium or penalty, except as required under
Section 5.05 for prepayment of LIBOR Loans.  Any prepayments on the Loans may be
reborrowed subject to the then effective Aggregate Revolving Credit
Commitments.

SECTION 2.08. 
Assumption of Risks.

The Borrower assumes all
risks of the acts or omissions of any beneficiary of any Letter of Credit or
any transferee thereof with respect to its use of such Letter of Credit.  Neither the Issuing Bank (except in the case
of gross negligence or willful misconduct on the part of the Issuing Bank or
any of its agents or employees), its correspondents nor any Lender shall be
responsible for the validity, sufficiency or genuineness of certificates or
other documents or any endorsements thereon, even if such certificates or other
documents should in fact prove to be invalid, insufficient, fraudulent or
forged; for errors, omissions, interruptions or delays in transmissions or
delivery of any messages by mail, telex, or otherwise, whether or not they be
in code; for errors in translation or for errors in interpretation of technical
terms; the validity or sufficiency of any instrument transferring or assigning
or purporting to transfer or assign any Letter of Credit or the rights or
benefits thereunder or proceeds thereof, in whole or in part, which may prove
to be invalid or ineffective for any reason; the failure of any beneficiary or
any transferee of any Letter of Credit to comply fully with conditions required
in order to draw upon any Letter of Credit; or for any other consequences
arising from causes beyond the Issuing Bank’s control or the control of the
Issuing Bank’s correspondents.  In
addition, neither the Issuing Bank, the Agent nor any Lender shall be
responsible for any error, neglect, or default of any of the Issuing Bank’s
correspondents; and none of the above shall affect, impair or prevent the
vesting of any of the Issuing Bank’s, the Agent’s or any Lender’s rights or
powers hereunder or under the Letter of Credit Agreements, all of which rights
shall be cumulative.  The Issuing Bank
and its correspondents may accept certificates or other documents that appear
on their face to be in order, without responsibility for further investigation
of any matter contained therein

 30
 

 

regardless of any
notice or information to the contrary. 
In furtherance and not in limitation of the foregoing provisions, the
Borrower agrees that any action, inaction or omission taken or not taken by the
Issuing Bank or by any correspondent for the Issuing Bank in good faith in
connection with any Letter of Credit, or any related drafts, certificates,
documents or instruments, shall be binding on the Borrower and shall not put
the Issuing Bank or its correspondents under any resulting liability to the
Borrower.

SECTION 2.09. 
Obligation to Reimburse and to Prepay.

(a)                                  If a disbursement by
the Issuing Bank is made under any Letter of Credit, the Borrower and the
applicable Account Party hereby jointly and severally agree pay to the Agent
within two Business Days after notice of any such disbursement is received by
the Borrower and such Account Party, the amount of such disbursement (if such
payment is not sooner effected as may be required under this Section 2.09
or under other provisions of the Letter of Credit), together with interest on
the amount disbursed from and including the date of disbursement until payment
in full of such disbursed amount at a varying rate per annum equal to
(i) the then applicable interest rate for Base Rate Loans through the
second Business Day after notice of such disbursement is received by the
Borrower and (ii) thereafter, the Post-Default Rate for Base Rate Loans
(but in no event to exceed the Highest Lawful Rate) for the period from and
including the third Business Day following the date of such disbursement to and
excluding the date of repayment in full of such disbursed amount.  The obligations of the Borrower and each
Account Party under this Agreement with respect to each Letter of Credit shall
be absolute, unconditional and irrevocable and shall be paid or performed
strictly in accordance with the terms of this Agreement under all circumstances
whatsoever, including, without limitation, but only to the fullest extent
permitted by applicable law, the following circumstances: (i) any lack of
validity or enforceability of this Agreement, any Letter of Credit or any of
the other Loan Documents; (ii) any amendment or waiver of (including any
default), or any consent to departure from this Agreement (except to the extent
permitted by any amendment or waiver), any Letter of Credit or any of the other
Loan Documents; (iii) the existence of any claim, set-off, defense or
other rights which the Borrower or any
other Account Party may have at any time against the beneficiary of any
Letter of Credit or any transferee of any Letter of Credit (or any Persons for
whom any such beneficiary or any such transferee may be acting), the Issuing
Bank, the Agent, any Lender or any other Person, whether in connection with
this Agreement, any Letter of Credit, the other Loan Documents, the
transactions contemplated hereby or any unrelated transaction; (iv) any
statement, certificate, draft, notice or any other document presented under any
Letter of Credit proves to have been forged, fraudulent, insufficient or
invalid in any respect or any statement therein proves to have been untrue or
inaccurate in any respect whatsoever; (v) payment by the Issuing Bank
under any Letter of Credit against presentation of a draft or certificate which
appears on its face to comply, but does not comply, with the terms of such
Letter of Credit; and (vi) any other circumstance or happening whatsoever,
whether or not similar to any of the foregoing.

Notwithstanding any other
provision of this Agreement to contrary, in the event that a Letter of Credit
is issued on account of an Account Party other than the Borrower, the Borrower
agrees that it shall be the primary obligor with respect to any reimbursement
obligations arising under such Letter of Credit, and that any payments made by
the Borrower to the Agent in respect of such reimbursement obligations shall be
deemed to be a contribution of the amount of such

 31
 

 

payment to the capital of the applicable
Account Party by the Borrower of a like amount, followed by a payment of such
reimbursement obligations in a like amount, and will be paid by the Borrower
directly to the Agent solely to avoid the inefficiency of multiple transfers of
funds.

Notwithstanding
anything in this Agreement to the contrary, neither the Borrower nor any
Account Party will be liable for payment or performance that results from the
gross negligence or willful misconduct of the Issuing Bank, except (i) where
the Borrower, any Account Party or any Subsidiary of the Borrower actually
recovers the proceeds for itself or the Issuing Bank of any payment made by the
Issuing Bank in connection with such gross negligence or willful misconduct or
(ii) in cases where the Agent makes payment to the named beneficiary of a
Letter of Credit.

(b)                                 In the event of the
occurrence of any Event of Default, a payment or prepayment pursuant to
Section 2.07(b) or upon the Termination Date, whether by acceleration
or otherwise, an amount equal to the LC Exposure (or the excess in the case of
Section 2.07(b)) shall be deemed to be forthwith due and owing by the
Borrower to the Issuing Bank, the Agent and the Lenders as of the date of any
such occurrence; and the Borrower’s obligation to pay such amount shall be
absolute and unconditional, without regard to whether any beneficiary of any
such Letter of Credit has attempted to draw down all or a portion of such
amount under the terms of a Letter of Credit, and, to the fullest extent
permitted by applicable law, shall not be subject to any defense or be affected
by a right of set-off, counterclaim or recoupment which the Borrower or any other Account Party may now or
hereafter have against any such beneficiary, the Issuing Bank, the Agent, the
Lenders or any other Person for any reason whatsoever.  Such payments shall be held by the Agent on
behalf of the Lenders as cash collateral securing the LC Exposure in an account
or accounts at the Principal Office; and the Borrower hereby grants to and by
its deposit with the Agent grants to the Agent a security interest in such cash
collateral.  In the event of any such
payment by the Borrower of amounts contingently owing under outstanding Letters
of Credit and in the event that thereafter drafts or other demands for payment
complying with the terms of such Letters of Credit are not made prior to the
respective expiration dates thereof, the Agent agrees, if no Event of Default
has occurred and is continuing or if no other amounts are outstanding under
this Agreement, or the other Loan Documents, to remit to the Borrower amounts
for which the contingent obligations evidenced by the Letters of Credit have
ceased.

(c)                                  If the Issuing Bank shall not have been
reimbursed in full for any payment made by the Issuing Bank under a Letter of
Credit issued by the Issuing Bank on the date of such payment, the Issuing Bank
shall give the Agent and each Lender prompt notice thereof (an “LC Payment Notice”) no later
than 12:00 noon on the Business Day immediately succeeding the date of such
payment by the Issuing Bank.  Each Lender
severally agrees to purchase a participation in the reimbursement obligation of
the Borrower to the Issuing Bank by paying to the Agent for the account of the
Issuing Bank an amount equal to such Lender’s Percentage Share of such
unreimbursed amount paid by the Issuing Bank, plus interest on such amount at a
rate per annum equal to the Federal Funds Rate from the date of the payment by
the Issuing Bank to the date of payment to the Issuing Bank by such
Lender.  Each such payment by a Lender
shall be made not later than 3:00 P.M. on the later to occur of (i) the
Business Day immediately following the date of such payment by the Issuing Bank
and (ii) the Business Day on which Lender shall have received an LC Payment
Notice from the Issuing Bank.  Each
Lender’s obligation to make each such payment to the Agent for the account of
the Issuing Bank shall be

 32
 

 

several and shall not be affected
by the occurrence or continuance of a Default or the failure of any other
Lender to make any payment under this Section 2.09(c).  Each Lender further agrees that each such
payment shall be made without any offset, abatement, withholding or reduction
whatsoever.

SECTION
2.10.  Lending Offices.

The Loans of each Type
made by each Lender shall be made and maintained at such Lender’s Applicable
Lending Office for Loans of such Type.

SECTION 2.11. 
Extensions of Termination Date.

After the first
anniversary of the Closing Date and at least 45 days prior to the scheduled
Termination Date then in effect, the Borrower may (but in no event more than
once per calendar year or twice in the aggregate during the term of this
Agreement), by written notice to the Agent, request that the scheduled
Termination Date then in effect be extended for a twelve-month period,
effective as of a date selected by the Borrower (the “Extension
Effective Date”); the Extension Effective Date shall be at least
45 days, but not more than 60 days, after the date such extension request is
received by the Agent (the “Extension Request Date”).  Upon receipt of the extension request, the
Agent shall promptly notify each Lender thereof, and approval by the Required
Lenders shall be necessary for the extension to become effective.  If a Lender agrees, in its individual and
sole discretion, to so extend its Revolving Credit Commitment (an “Extending Lender”), it shall
deliver to the Agent a written notice of its agreement to do so no later than
15 days after the Extension Request Date (or such later date to which the
Borrower and the Agent shall agree), and the Agent shall promptly thereafter
notify the Borrower of such Extending Lender’s agreement to extend its
Revolving Credit Commitment (and such agreement shall be irrevocable until the
Extension Effective Date).  The Revolving
Credit Commitment of any Lender that fails to accept or respond to the Borrower’s
request for extension of the Termination Date (a “Declining Lender”) shall be terminated on the
Termination Date then in effect for such Lender (without regard to any
extension by other Lenders) and on such Termination Date the Borrower shall pay
in full the unpaid principal amount of all Revolving Credit Loans owing to such
Declining Lender, together with all accrued and unpaid interest thereon and all
fees accrued and unpaid under this Agreement to the date of such payment of
principal and all other amounts due to such Declining Lender under this
Agreement.  The Agent shall promptly
notify each Extending Lender of the aggregate Revolving Credit Commitments of
the Declining Lenders.  Each Extending
Lender may offer to increase its respective Revolving Credit Commitment by an
amount not to exceed the aggregate amount of the Declining Lenders’ Revolving
Credit Commitments, and such Extending Lender shall deliver to the Agent a
notice of its offer to so increase its Revolving Credit Commitment no later
than 30 days after the Extension Request Date (or such later date to which the
Borrower and the Agent shall agree), and such offer shall be irrevocable until
the Extension Effective Date.  To the
extent the aggregate amount of additional Revolving Credit Commitments that the
Extending Lenders offer pursuant to the preceding sentence exceeds the
aggregate amount of the Declining Lenders’ Revolving Credit Commitments, such
additional Revolving Credit Commitments shall be reduced on a pro rata
basis.  To the extent the aggregate
amount of Revolving Credit Commitments that the Extending Lenders have so
offered to extend is less than the aggregate amount of Revolving Credit
Commitments that the Borrower has so requested to be extended, the Borrower
shall have the

 33
 

 

right but not the obligation to require any
Declining Lender to (and any such Declining Lender shall) assign in full its
rights and obligations under this Agreement to one or more banks or other financial institutions (which
may be, but need not be, one or more of the Extending Lenders) which at the
time agree to, in the case of any such Person that is an Extending Lender,
increase its Revolving Credit Commitment and in the case of any other such
Person (a “New Lender”)
become a party to this Agreement;  provided that
(i) such assignment is otherwise in compliance with Section 12.06, (ii) such
Declining Lender receives payment in full of the unpaid principal amount of all
Revolving Credit Loans owing to such Declining Lender, together with all
accrued and unpaid interest thereon and all fees accrued and unpaid under this
Agreement to the date of such payment of principal and all other amounts due to
such Declining Lender under this Agreement and (iii) any such assignment shall
be effective on the date on or before such Extension Effective Date as may be
specified by the Borrower and agreed to by the respective New Lenders and
Extending Lenders, as the case may be, and the Agent.  If, but only if, Extending Lenders and New
Lenders, as the case may be, have agreed to provide Revolving Credit
Commitments in an aggregate amount greater than 50% of the aggregate amount of
the Revolving Credit Commitments outstanding immediately prior to such
Extension Effective Date and the conditions precedent in Section 6.02 are met,
the Termination Date in effect with respect to such Extending Lenders and New
Lenders shall be extended by twelve months.

Article III

Payments of Principal and Interest

SECTION
3.01.  Repayment of Loans.

(a)                                  Revolving Credit
Loans.  On the Termination Date the Borrower shall
repay the outstanding aggregate principal amount of the Loans and all accrued
and unpaid interest thereon.

(b)                                 Generally.  The Borrower
will pay to the Agent, for the account of each Lender, the principal payments
required by this Section 3.01.

SECTION
3.02.  Interest.

(a)                                  Interest Rates.  The
Borrower will pay to the Agent, for the account of each Lender or the Swing
Line Lender, as appropriate, interest on the unpaid principal amount of each
Loan made by such Lender for the period commencing on the date such Loan is
made to, but excluding, the date such Loan shall be paid in full, at the
following rates per annum:

(i)                                     if such a Loan is a Base Rate Loan, the Base Rate
(as in effect from time to time) plus the Applicable Margin, but in no event to
exceed the Highest Lawful Rate;

(ii)                                  if such a Loan is a LIBOR Loan, for each Interest
Period relating thereto, the LIBOR Rate for such Loan plus the Applicable
Margin (as in effect from time to time), but in no event to exceed the Highest
Lawful Rate; and

(iii)                               if such a Loan is a Swing Line Loan, the Base Rate (as in effect from
time to time) plus the Applicable Margin, or such other rate as the Swing Line
Lender and the

 34
 

 

Borrower shall mutually agree as
being the rate in effect with respect to such Swing Line Loan prior to the time
of any purchase by the Lenders of Percentage Shares of such Swing Line Loan as
provided in Section 2.01(b)(iv), but in no event in any such case to exceed the
Highest Lawful Rate.

(b)                                 Post-Default
Rate.  Notwithstanding the foregoing, the Borrower
will pay to the Agent, for the account of each Lender, interest at the
applicable Post-Default Rate on any principal of any Loan made by such Lender,
and (to the fullest extent permitted by law) on any other amount payable by the
Borrower hereunder or under any Loan Document for the period commencing on the
date of an Event of Default until the same is paid in full or all Events of
Default are cured or waived.

(c)                                  Due Dates.  Accrued
interest on Base Rate Loans shall be payable on each Quarterly Date, and
accrued interest on each LIBOR Loan shall be payable on the last day of the
Interest Period therefor and, if such Interest Period is longer than three
months, at three-month intervals following the first day of such Interest
Period, except that interest payable at the Post-Default Rate shall be payable
from time to time on demand and interest on any LIBOR Loan that is converted
into a Base Rate Loan pursuant to Section 5.04 shall be payable on the
date of conversion (but only to the extent so converted).  Accrued interest on Swing Line Loans that are
subject to mutually agreed rates pursuant to Section 3.02(a)(iii) shall be payable
on the dates specified by the Swing Line Lender with respect to such agreed
rates.  All accrued and unpaid interest
on the Loans shall be paid on the Termination Date.

(d)                                 Determination of
Rates.  Promptly after the determination of any
interest rate provided for herein or any change therein, the Agent shall notify
the Lenders and the Borrower thereof. 
Each determination by the Agent of an interest rate or fee hereunder
shall, except in cases of manifest error, be final, conclusive and binding on the
parties.

Article IV

Payments; Pro Rata Treatment; Computations; Etc.

SECTION
4.01.  Payments.

Except to the extent
otherwise provided herein, all payments of principal, interest and other
amounts to be made by the Borrower under this Agreement and the Letter of
Credit Agreements shall be made in Dollars, in immediately available funds, to
the Agent at such account as the Agent shall specify by notice to the Borrower
from time to time, not later than 11:00 a.m. Atlanta time on the date on which
such payments shall become due (each such payment made after such time on such
due date to be deemed to have been made on the next succeeding Business
Day).  Such payments shall be made
without (to the fullest extent permitted by applicable law) defense, set-off or
counterclaim.  Each payment received by
the Agent under this Agreement for account of a Lender shall be paid promptly
to such Lender in immediately available funds. 
Except as otherwise provided in the definition of “Interest Period”, if
the due date of any payment under this Agreement would otherwise fall on a day
which is not a Business Day such date shall be extended to the next succeeding
Business Day and interest shall be payable for any principal so extended for
the period of such extension.  At the time
of each payment to the Agent of any principal of or interest on any borrowing,
the Borrower shall notify

 35
 

 

the Agent of the Loans to which such payment
shall apply.  In the absence of such
notice the Agent may specify the Loans to which such payment shall apply, but
to the extent possible such payment or prepayment will be applied first to Base
Rate Loans.

SECTION
4.02.  Pro Rata Treatment.

Except for Swing Line
Loans and to the extent otherwise provided herein, each Lender agrees that:
(i) each borrowing from the Lenders under Section 2.01 and each
continuation and conversion under Section 2.02 shall be made from the
Lenders pro rata in accordance with their Percentage Share, each payment of
fees under Section 2.04(a) and Section 2.04(b)(i) shall be
made for account of the Lenders pro rata in accordance with their Percentage
Share, and each termination or reduction of the Revolving Credit Commitments
under Section 2.03(a) shall be applied to the Revolving Credit
Commitments of all Lenders, pro rata according to the amounts of their
respective Revolving Credit Commitments; (ii) each payment of principal of
Loans by the Borrower shall be made for account of the Lenders pro rata in
accordance with the respective unpaid principal amount of the Loans held by the
Lenders; (iii) each payment of interest on Loans by the Borrower shall be
made for account of the Lenders pro rata in accordance with the amounts of
interest due and payable to the respective Lenders; and (iv) each
reimbursement by the Borrower of disbursements under each Letter of Credit
shall be made for account of the Issuing Bank or, if funded by the Lenders, pro
rata for the account of the Lenders, in accordance with the amounts of
reimbursement obligations due and payable to the respective Lenders.

SECTION
4.03.  Computations.

Interest on LIBOR Loans,
interest determined by reference to the Federal Funds Rate and fees shall be
computed on the basis of a year of 360 days and actual days elapsed (including
the first day but excluding the last day) occurring in the period for which
such interest is payable, unless such calculation would exceed the Highest
Lawful Rate, in which case interest shall be calculated on the per annum basis
of a year of 365 or 366 days, as the case may be.  Interest on Base Rate Loans determined by
reference to the Prime Rate shall be computed on the basis of a year of 365 or
366 days, as the case may be, and actual days elapsed (including the first day
but excluding the last day) occurring in the period for which such interest is
payable.

SECTION
4.04.  Non-receipt of Funds by the Agent.

Unless the Agent shall
have been notified by a Lender or the Borrower prior to the time on which such
notifying party is scheduled to make payment to the Agent (in the case of a
Lender) of the proceeds of a Loan or a payment under a Letter of Credit to be
made by it hereunder or (in the case of the Borrower) a payment to the Agent
for account of one or more of the Lenders hereunder (such payment being herein
called the “Required Payment”), which notice
shall be effective upon receipt, that it does not intend to make the Required
Payment to the Agent, the Agent may assume that the Required Payment has been
made and may, in reliance upon such assumption (but shall not be required to),
make the amount thereof available to the intended recipient(s) on such date
and, if such Lender or the Borrower (as the case may be) has not in fact made
the Required Payment to the Agent, the recipient(s) of such payment shall, on
demand, repay to the Agent the amount so made available together with interest
thereon in respect of each day during the period commencing on the date such
amount was so made

 36
 

 

available by the Agent until, but excluding,
the date the Agent recovers such amount at a rate per annum which, for any
Lender as recipient, will be equal to the Federal Funds Rate, and for the
Borrower as recipient, will be equal to the Base Rate plus the Applicable
Margin.

SECTION
4.05.  Set-off, Sharing of Payments, Etc.

(a)                                  The Borrower agrees that, in addition to (and
without limitation of) any right of set-off, bankers’ lien or counterclaim a
Lender may otherwise have, each Lender shall have the right and be entitled
(after consultation with the Agent), at its option, to offset balances held by
it or by any of its Affiliates for account of the Borrower, any Guarantor or
any Restricted Subsidiary at any of its offices, in Dollars or in any other
currency, against any principal of or interest on any of such Lender’s Loans,
or any other amount payable to such Lender hereunder, which is not paid when
due (regardless of whether such balances are then due to the Borrower), in
which case it shall promptly notify the Borrower and the Agent thereof, provided that such Lender’s failure to give such notice
shall not affect the validity thereof.

(b)                                 If any Lender shall obtain payment of any
principal of or interest on any Loan made by it to the Borrower under this
Agreement (or reimbursement as to any Letter of Credit) through the exercise
of any right of set-off, banker’s lien or counterclaim
or similar right or otherwise, and, as a result of such payment, such Lender
shall have received a greater percentage of the principal or interest (or
reimbursement) then due hereunder by the Borrower to such Lender than the
percentage received by any other Lenders, it shall promptly (i) notify the
Agent and each other Lender thereof and (ii) purchase from such other
Lenders participations in (or, if and to the extent specified by such Lender,
direct interests in) the Loans (or participations in Letters of Credit) made by
such other Lenders (or in interest due thereon, as the case may be) in such
amounts, and make such other adjustments from time to time as shall be
equitable, to the end that all the Lenders shall share the benefit of such excess
payment (net of any expenses which may be incurred by such Lender in obtaining
or preserving such excess payment) pro rata in accordance with the unpaid
principal and/or interest on the Loans held by each of the Lenders (or
reimbursements of Letters of Credit).  To
such end all the Lenders shall make appropriate adjustments among themselves
(by the resale of participations sold or otherwise) if such payment is
rescinded or must otherwise be restored. 
The Borrower agrees that any Lender so purchasing a participation (or
direct interest) in the Loans made by other Lenders (or in interest due
thereon, as the case may be) may exercise all rights of set-off, banker’s lien,
counterclaim or similar rights with respect to such participation as fully as
if such Lender were a direct holder of Loans (or Letters of Credit) in the
amount of such participation.  Nothing
contained herein shall require any Lender to exercise any such right or shall
affect the right of any Lender to exercise, and retain the benefits of exercising,
any such right with respect to any other indebtedness or obligation of the
Borrower.  If under any applicable
bankruptcy, insolvency or other similar law, any Lender receives a secured
claim in lieu of a set-off to which this Section 4.05 applies, such Lender
shall, to the extent practicable, exercise its rights in respect of such
secured claim in a manner consistent with the rights of the Lenders entitled
under this Section 4.05 to share the benefits of any recovery on such
secured claim.

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SECTION 4.06. 
Taxes.

(a)                                  Payments Free
and Clear.  Any and all payments by the Borrower hereunder shall be made, in
accordance with Section 4.01, free and clear of and without deduction for
any and all present or future taxes, levies, imposts, deductions, charges or
withholdings, and all liabilities with respect thereto, excluding, in the case
of each Lender, the Issuing Bank and the Agent, taxes imposed on its income,
and franchise or similar taxes imposed on it, by (i) any jurisdiction (or
political subdivision thereof) of which the Agent, the Issuing Bank or such
Lender, as the case may be, is a citizen or resident or in which such Lender
has an Applicable Lending Office, (ii) the jurisdiction (or any political
subdivision thereof) in which the Agent, the Issuing Bank or such Lender is
organized, or (iii) any jurisdiction (or political subdivision thereof) in
which such Lender, the Issuing Bank or the Agent is presently doing business
which taxes are imposed solely as a result of doing business in such jurisdiction
(all such non-excluded taxes, levies, imposts, deductions, charges,
withholdings and liabilities being hereinafter referred to as “Taxes”).  If the Borrower shall be required by law to
deduct any Taxes from or in respect of any sum payable hereunder to the
Lenders, the Issuing Bank or the Agent (i) the sum payable shall be
increased by the amount necessary so that after making all required deductions
(including deductions applicable to additional sums payable under this
Section 4.06) such Lender, the Issuing Bank or the Agent (as the case may
be) shall receive an amount equal to the sum it would have received had no such
deductions been made, (ii) the Borrower shall make such deductions and
(iii) the Borrower shall pay the full amount deducted to the relevant
taxing authority or other Governmental Authority in accordance with applicable
law.

(b)                                 Other Taxes.  In addition, to the fullest extent permitted
by applicable law, the Borrower agrees to pay any present or future stamp or
documentary taxes or any other excise or property taxes, charges or similar
levies that arise from any payment made hereunder or from the execution,
delivery or registration of, or otherwise with respect to, this Agreement, any
Assignment Agreement or any other Loan Document (hereinafter referred to as “Other Taxes”).

(c)                                  INDEMNIFICATION.  TO THE
FULLEST EXTENT PERMITTED BY APPLICABLE LAW, THE BORROWER WILL INDEMNIFY EACH
LENDER AND THE ISSUING BANK AND THE AGENT FOR THE FULL AMOUNT OF TAXES (AS
DEFINED ABOVE) AND OTHER TAXES (INCLUDING, BUT NOT LIMITED TO, ANY TAXES OR
OTHER TAXES IMPOSED BY ANY GOVERNMENTAL AUTHORITY ON AMOUNTS PAYABLE UNDER THIS
SECTION 4.06) PAID BY SUCH LENDER, THE ISSUING BANK OR THE AGENT (ON THEIR
BEHALF OR ON BEHALF OF ANY LENDER), AS THE CASE MAY BE, AND ANY LIABILITY
(INCLUDING PENALTIES, INTEREST AND EXPENSES) ARISING THEREFROM OR WITH RESPECT
THERETO, WHETHER OR NOT SUCH TAXES OR OTHER TAXES WERE CORRECTLY OR LEGALLY
ASSERTED UNLESS THE PAYMENT OF SUCH TAXES WAS NOT CORRECTLY OR LEGALLY ASSERTED
AND SUCH LENDER’S PAYMENT OF SUCH TAXES OR OTHER TAXES WAS THE RESULT OF ITS
GROSS NEGLIGENCE OR WILLFUL MISCONDUCT. 
ANY PAYMENT PURSUANT TO SUCH INDEMNIFICATION SHALL BE MADE WITHIN THIRTY
(30) DAYS AFTER THE DATE ANY LENDER, THE ISSUING BANK OR THE AGENT, AS THE CASE
MAY BE, MAKES WRITTEN DEMAND THEREFOR. 
IF ANY LENDER OR THE AGENT RECEIVES A REFUND OR CREDIT IN RESPECT OF ANY
TAXES OR OTHER TAXES FOR WHICH SUCH LENDER, ISSUING BANK OR THE

 38
 

 

AGENT HAS RECEIVED PAYMENT FROM
THE BORROWER IT SHALL PROMPTLY NOTIFY THE BORROWER OF SUCH REFUND OR CREDIT AND
SHALL, IF NO EVENT OF DEFAULT HAS OCCURRED AND IS CONTINUING, WITHIN THIRTY
(30) DAYS AFTER RECEIPT OF A REQUEST BY THE BORROWER (OR PROMPTLY UPON RECEIPT,
IF THE BORROWER HAS REQUESTED APPLICATION FOR SUCH REFUND OR CREDIT PURSUANT
HERETO), PAY AN AMOUNT EQUAL TO SUCH REFUND OR CREDIT TO THE BORROWER WITHOUT
INTEREST (BUT WITH ANY INTEREST SO REFUNDED OR CREDITED), PROVIDED
THAT THE BORROWER, UPON THE REQUEST OF SUCH LENDER, THE ISSUING BANK OR THE
AGENT, AGREES TO RETURN SUCH REFUND OR CREDIT (PLUS PENALTIES, INTEREST OR
OTHER CHARGES) TO SUCH LENDER OR THE AGENT IN THE EVENT SUCH LENDER OR THE
AGENT IS REQUIRED TO REPAY SUCH REFUND OR CREDIT.

(d)                                 Foreign Lenders,
Participants and Assignees.

Each Lender, participant
(by accepting a participation interest under this Agreement) and assignee (by
executing an Assignment Agreement) that is not organized under the laws of the
United States of America or one of its states (1) represents to the Agent
and the Borrower that (A) no taxes are required to be withheld by the
Agent or the Borrower with respect to any payments to be made to it hereunder
and (B) it has furnished to the Agent and the Borrower two duly completed
copies of either U.S. Internal Revenue Service Form W-8BEN or W-8ECI or any
other form acceptable to the Agent and the Borrower that entitles it to a
complete exemption from U.S. federal withholding tax on all interest or fee
payments under the Loan Documents, and (2) covenants to (A) provide
the Agent and the Borrower a new Form W-8BEN or W-8ECI or other form acceptable
to the Agent and the Borrower upon the expiration or obsolescence according to
Governmental Requirement of any previously delivered form, duly executed and
completed by it, entitling it to a complete exemption from U.S. federal
withholding tax on all interest and fee payments under the Loan Documents, and
(B) comply from time to time with all Governmental Requirements with
regard to the withholding tax exemption. 
If any of the foregoing is not true at any time or the applicable forms
are not provided, then the Borrower and the Agent (without duplication),
notwithstanding any other provision of this Section 4.06, may deduct and
withhold from interest and fee payments under the Loan Documents any tax at the
maximum rate under the Code or other applicable Governmental Requirement, and
amounts so deducted and withheld shall be treated as paid to that Lender,
participant or assignee, as the case may be, for all purposes under the Loan
Documents.

Article V

YIELD PROTECTION

SECTION 5.01. 
Additional Costs.

(a)                                  LIBOR
Regulations, etc.  The Borrower shall pay directly to each Lender from time to time such
amounts as such Lender may reasonably determine to be necessary to compensate
such Lender for any costs that it determines are attributable to its making or maintaining of any LIBOR
Loans or issuing or participating in Letters of Credit hereunder or its
obligation to make any LIBOR Loans or issue or participate in any Letters of
Credit hereunder, or any reduction in any amount receivable by such Lender
hereunder in respect of any of such

 39
 

 

LIBOR Loans, Letters of Credit or
such obligation (such increases in costs and reductions in amounts receivable
being herein called “Additional
Costs”), resulting from any Regulatory Change that:
(i) changes the basis of taxation of any amounts payable to such Lender
under this Agreement in respect of any of such LIBOR Loans or Letters of Credit
(other than taxes imposed on the overall net income of such Lender or of its
Applicable Lending Office for any of such LIBOR Loans by the jurisdiction in
which such Lender has its principal office or Applicable Lending Office); or
(ii) imposes or modifies any reserve, special deposit, minimum capital,
capital ratio or similar requirements relating to any extensions of credit or
other assets of, or any deposits with or other liabilities of such Lender, or
the Revolving Credit Commitment or Loans of such Lender or the London interbank
market; or (iii) imposes any other condition affecting this Agreement (or
any of such extensions of credit or liabilities) or such Lender’s Revolving
Credit Commitment or Loans.  Each Lender
will notify the Agent and the Borrower of any event occurring after the date
hereof that will entitle such Lender to compensation pursuant to this
Section 5.01(a) as promptly as practicable after it obtains knowledge
thereof and determines to request such compensation, and will designate a
different Applicable Lending Office for the Loans of such Lender affected by such
event if such designation will avoid the need for, or reduce the amount of,
such compensation and will not, in the sole opinion of such Lender, be
disadvantageous to such Lender, provided that
such Lender shall have no obligation to so designate an Applicable Lending
Office located in the United States.  If
any Lender requests compensation from the Borrower under this
Section 5.01(a), the Borrower may, by notice to such Lender, suspend the
obligation of such Lender to make additional Loans of the Type with respect to
which such compensation is requested until the Regulatory Change giving rise to
such request ceases to be in effect (in which case the provisions of
Section 5.04 shall be applicable).

(b)                                 Capital
Adequacy.  Without limiting the effect of the foregoing
provisions of this Section 5.01 (but without duplication), the Borrower
shall pay directly to any Lender from time to time on request such amounts as
such Lender may reasonably determine to be necessary to compensate such Lender
or its parent or holding company for any costs which it determines are
attributable to the maintenance by such Lender or its parent or holding company
(or any Applicable Lending Office), pursuant to any Governmental Requirement
following any Regulatory Change, of capital in respect of its Revolving Credit
Commitment, its Loans, or any interest held by it in any Letter of Credit, such
compensation to include, without limitation, an amount equal to any reduction
of the rate of return on assets or equity of such Lender or its parent or
holding company (or any Applicable Lending Office) to a level below that which
such Lender or its parent or holding company (or any Applicable Lending Office)
could have achieved but for such Governmental Requirement.  Such Lender will notify the Borrower that it
is entitled to compensation pursuant to this Section 5.01(b) as
promptly as practicable after it determines to request such compensation.

(c)                                  Compensation
Procedure.  Any Lender notifying the Borrower of the
incurrence of additional costs under this Section 5.01 shall in such
notice to the Borrower and the Agent set forth in reasonable detail the basis
and amount of its request for compensation. 
Determinations and allocations by each Lender for purposes of this
Section 5.01 of the effect of any Regulatory Change pursuant to
Section 5.01(a), or of the effect of capital maintained pursuant to
Section 5.01(b), on its costs or rate of return of maintaining Loans or
its obligation to make Loans or issue Letters of Credit, or on amounts receivable
by it in respect of Loans or Letters of Credit, and of the amounts required to
compensate such Lender under this Section 5.01, shall be

 40
 

 

conclusive and binding for all
purposes, provided that such determinations and
allocations are made on a reasonable basis. 
Any request for additional compensation under this Section 5.01
shall be paid by the Borrower within 30 days of the receipt by the Borrower of
the notice described in this Section 5.01(c).

(d)                                 The Lenders shall determine the applicability of,
and the amount due under, this Section 5.01 consistent with the manner in
which they apply similar provisions and calculate similar amounts payable to
them by other borrowers having in their credit agreements provisions comparable
to this Section.

SECTION 5.02. 
Basis Unavailable or Inadequate for LIBOR Rate.

If, on or before any date
when a LIBOR Rate is to be determined, the Agent reasonably determines that the
basis for determining the applicable rate is not available or any Lender
reasonably determines that the resulting rate does not accurately reflect the
cost to that Lender of making or converting Loans at that rate for the
applicable Interest Period, then the Agent shall promptly notify the Borrower
and the Lenders of that determination (which is conclusive and binding on the
Borrower absent manifest error) and the applicable Loans shall bear interest at
the sum of the Base Rate plus the Applicable Margin.  Until the Agent notifies the Borrower that
those circumstances no longer exist, the Lenders’ commitments under this
Agreement to make, or to convert to, LIBOR Rate Loans, as the case may be, are
suspended.

SECTION 5.03. 
Illegality.

Notwithstanding any other
provision of this Agreement, in the event that it becomes unlawful for any
Lender or its Applicable Lending Office to honor its obligation to make or
maintain LIBOR Loans hereunder, then such Lender shall promptly notify the
Borrower thereof and such Lender’s obligation to make LIBOR Loans shall be
suspended until such time as such Lender may again make and maintain LIBOR
Loans (in which case the provisions of Section 5.04 shall be applicable).

SECTION 5.04. 
Base Rate Loans

If the obligation of any
Lender to make LIBOR Loans shall be suspended pursuant to Sections 5.01,
5.02 or 5.03 (“Affected Loans”), all
Affected Loans that would otherwise be made by such Lender shall be made
instead as Base Rate Loans (and, if an event referred to in
Section 5.01(b) or Section 5.03 has occurred and such Lender so
requests by notice to the Borrower, all Affected Loans of such Lender then
outstanding shall be automatically converted into Base Rate Loans on the date
specified by such Lender in such notice) and, to the extent that Affected Loans
are so made as (or converted into) Base Rate Loans, all payments of principal
that would otherwise be applied to such Lender’s Affected Loans shall be
applied instead to its Base Rate Loans.

SECTION 5.05. 
Compensation.

The Borrower shall pay to
each Lender within 30 days of receipt of written request of such Lender (which
request shall set forth, in reasonable detail, the basis for requesting such
amounts and which shall be conclusive and binding for all purposes provided that such

 41
 

 

determinations are made on a reasonable
basis), such amounts as shall compensate it for any loss, cost, expense or
liability which such Lender reasonably determines are attributable to:

(i)                                     any payment, prepayment or conversion of a LIBOR
Loan properly made by such Lender or the Borrower for any reason (including,
without limitation, the acceleration of the Loans pursuant to
Section 10.01) on a date other than the last day of the Interest Period
for such Loan; or

(ii)                                  any failure by the Borrower for any reason
(including but not limited to, the failure of any of the conditions precedent
specified in Article VI to be satisfied) to borrow, continue or convert a
LIBOR Loan from such Lender on the date for such borrowing, continuation or
conversion specified in the relevant notice given pursuant to
Section 2.02(c).

Without limiting the
effect of the preceding sentence, such compensation shall include an amount
equal to the excess, if any, of (A) the amount of interest which would
have accrued on the principal amount so paid, prepaid or converted or not
borrowed for the period from the date of such payment, prepayment or conversion
or failure to borrow to the last day of the Interest Period for such Loan (or,
in the case of a failure to borrow, the Interest Period for such Loan which
would have commenced on the date specified for such borrowing) at the applicable
rate of interest for such Loan provided for herein over (B) the interest
component of the amount such Lender would have bid in the London interbank
market for Dollar deposits of leading banks in amounts comparable to such
principal amount and with maturities comparable to such period (as reasonably
determined by such Lender).

SECTION 5.06. 
Replacement Lenders.

(a)                                  If any Lender has notified the Borrower and the
Agent of its incurring additional costs under Section 5.01 or has required
the Borrower to make payments for Taxes under Section 4.06, then the
Borrower may, unless such Lender has notified the Borrower and the Agent that
the circumstances giving rise to such notice no longer apply, terminate, in
whole but not in part, the Revolving Credit Commitment of any Lender (other
than the Agent) (the “Terminated
Lender”) at any time upon five Business Days’ prior written
notice to the Terminated Lender and the Agent (such notice referred to herein
as a “Notice of Termination”).

(b)                                 In order to effect the termination of the
Revolving Credit Commitment of the Terminated Lender, the Borrower shall:
(i) obtain an agreement with one or more Lenders to increase their
Revolving Credit Commitment or Revolving Credit Commitments and/or
(ii) request any one or more other banking institutions to become parties
to this Agreement in place and instead of such Terminated Lender and agree to
accept a Revolving Credit Commitment or Revolving Credit Commitments; provided, however, that such one or more other banking
institutions are reasonably acceptable to the Agent and each Issuing Bank and
become parties by executing an Assignment Agreement (the Lenders or other
banking institutions that agree to accept in whole or in part the Revolving
Credit Commitment of the Terminated Lender being referred to herein as the “Replacement Lenders”), such
that the aggregate increased and/or accepted Revolving Credit Commitments of
the Replacement Lenders under clauses (i) and (ii) above equal
the Revolving Credit Commitment of the Terminated Lender.

 42
 

 

(c)                                  The Notice of Termination shall include the name
of the Terminated Lender, the date the termination will occur (the “Lender Termination Date”),
and the Replacement Lender or Replacement Lenders to which the Terminated
Lender will assign its Revolving Credit Commitment and, if there will be more
than one Replacement Lender, the portion of the Terminated Lender’s Revolving
Credit Commitment to be assigned to each Replacement Lender.

(d)                                 On the Lender Termination Date, (i) the
Terminated Lender shall by execution and delivery of an Assignment Agreement
assign at full face value its Revolving Credit Commitment to the Replacement
Lender or Replacement Lenders (pro rata, if there is more than one Replacement
Lender, in proportion to the portion of the Terminated Lender’s Revolving
Credit Commitment to be assigned to each Replacement Lender) indicated in the
Notice of Termination and shall assign in full to the Replacement Lender or
Replacement Lenders each of its Loans (if any) then outstanding and participation
interests in Letters of Credit (if any) then outstanding pro rata as aforesaid);  provided that
(x) such assignment is otherwise in compliance with Section 12.06, and (y) such
Terminated Lender receives payment in full of the unpaid principal amount of
all Loans owing to such Terminated Lender, together with all accrued and unpaid
interest thereon and all fees accrued and unpaid under this Agreement to the
date of such payment of principal and all other amounts due to such Terminated
Lender under this Agreement, and
(ii) the Replacement Lender or Replacement Lenders will thereupon (pro
rata as aforesaid) succeed to and be substituted in all respects for the
Terminated Lender with like effect as if becoming a Lender pursuant to the
terms of Section 12.06(b), and the Terminated Lender will have the rights
and benefits of an assignor under Section 12.06(b).  To the extent not in conflict, the terms of
Section 12.06(b) shall supplement the provisions of this
Section 5.06(d).  For each
assignment made under this Section 5.06, the Replacement Lender shall pay
to the Agent the processing fee provided for in Section 12.06(b).  The Borrower will be responsible for the
payment to the Terminated Lender, all amounts payable under Section 4.06 and
Section 5.01, together with any breakage costs associated with termination and
Replacement Lenders, as set forth in Section 5.05.

Article VI

Conditions Precedent

SECTION 6.01. 
Initial Funding.

The obligation of the
Lenders to make the Initial Funding is subject to, on or before the date of the
Initial Funding, the receipt by the Lenders and Agent of (i) all fees and
expenses that are due and payable as of such date and (ii) the following
documents, each of which shall be satisfactory to the Agent in form and
substance:

(a)                                  A certificate of the Secretary or an Assistant
Secretary of the General Partner and each Guarantor (or its general partner, as
appropriate) setting forth (i) resolutions of its board of directors with
respect to the authorization of the Borrower and each Guarantor (or its general partner, as appropriate) to
execute and deliver the Loan Documents to which such Person is a party and to
enter into the transactions contemplated in
those documents, (ii) the officers of the General Partner and each
Guarantor (or its general partner, as appropriate) (y) who are authorized
to sign the Loan Documents to which such Person is a party and (z) who
will, until replaced by another officer or officers duly authorized for that
purpose, act as its representatives

 43
 

 

for the purposes of signing
documents and giving notices and other communications in connection with this
Agreement and the transactions contemplated hereby, (iii) specimen
signatures of the authorized officers of the Borrower and each Guarantor (or
its general partner, as appropriate), (iv) the articles or certificate of
incorporation and bylaws or the partnership agreement, as applicable, of the
General Partner and each Guarantor and the Borrower Partnership Agreement, each
certified as being true and complete.  The
Agent and the Lenders may conclusively rely on such certificates until the
Agent receives notice in writing from the Borrower or such Guarantor(or its
general partner, as appropriate), as the case may be, to the contrary, and (v)
copies of all governmental approvals, if any, required in connection with the
execution, delivery and performance of the Loan Documents by each party
thereto, other than the Agent, the Lenders and any Issuing Bank.

(b)                                 Certificates of the appropriate state agencies
with respect to the existence, qualification and good standing, as appropriate, of the Borrower, each Guarantor
and the General Partner.

(c)                                  A promissory note payable to the order of each
Lender that requests one pursuant to Section 2.06.

(d)                                 this Agreement, duly executed by the Borrower and
a Guaranty, duly completed and executed by each Restricted Subsidiary of the
Borrower (other than Laurel Pipe Line), in each case in sufficient numbers of
counterparts as reasonably requested by the Agent.

(e)                                  Opinions of Morgan, Lewis & Bockius LLP,
counsel to the Borrower and the Guarantors and certain local counsel to the
Borrower and the Guarantors, each in form and substance satisfactory to the
Agent, as to such matters incident to the transactions herein contemplated as the
Agent may reasonably request.

(f)                                    Certified copies of all consents,
approvals, authorizations, registrations and filings and orders required or
advisable to be made or obtained under any requirement of law, or by any
contractual obligation of the Loan Parties, in connection with the execution,
delivery, performance, validity and enforceability of the Loan Documents or any
of the transactions contemplated thereby, and such consents, approvals,
authorizations, registrations, filings and orders shall be in full force and
effect and all applicable waiting periods shall have expired, and no
investigation or inquiry by any governmental authority regarding the Revolving
Credit Commitments or any transaction being financed with the proceeds thereof
shall be ongoing.

(g)                                 A certificate of insurance coverage of the
Borrower evidencing that the Borrower is carrying insurance in accordance with
Section 7.19.

(h)                                 Evidence
that, upon the application of the proceeds of the Initial Funding, the
commitments of the lenders under the Existing Credit Agreement shall be
terminated and the obligations of the Borrower and the Restricted Subsidiaries
under the Existing Credit Agreement shall be paid in full.

(i)                                     Such other documents as the Agent or any Lender
or special counsel to the Agent may reasonably request.

 44
 

 

By delivery of its
executed signature page to this Agreement, each Lender confirms to the Agent
all conditions precedent set forth above have been met to the satisfaction of
such Lender.

SECTION 6.02. 
Initial and Subsequent Loans and Letters of Credit.

The obligation of the
Lenders to make Loans to the Borrower upon the occasion of each borrowing
hereunder and to issue, renew, extend or reissue Letters of Credit for the
account of the Borrower (including the Initial Funding) is subject to the
further conditions precedent that, as of the date of such Loans and after
giving effect thereto:

(a)                                  no Default shall have occurred and be continuing;
and

(b)                                 the representations and warranties made by the
Borrower in Article VII and by the Borrower and each Guarantor in any
other Loan Document shall be true on and as of the date of the making of such
Loans or issuance, renewal, extension or reissuance of a Letter of Credit with
the same force and effect as if made on and as of such date and following such
new borrowing, except to the extent such representations and warranties are
expressly limited to an earlier date or the Required Lenders may expressly
consent in writing to the contrary.

Each request for a
borrowing or issuance, renewal, extension or reissuance of a Letter of Credit
by the Borrower hereunder shall constitute a certification by the Borrower to
the effect set forth in Section 6.02(a) and (b) (both as of the date
of such notice and immediately following such borrowing or issuance, renewal,
extension or reissuance of a Letter of Credit).

SECTION
6.03.  Conditions Precedent for the
Benefit of Lenders.

All conditions precedent
to the obligations of the Lenders to make any Loan and of the Issuing Bank to
issue Letters of Credit are imposed hereby solely for the benefit of the
Lenders and the Issuing Bank, and no other Person may require satisfaction of
any such condition precedent or be entitled to assume that the Lenders will
refuse to make any Loan or that the Issuing Bank will refuse to issue a Letter
of Credit in the absence of strict compliance with such conditions precedent.

SECTION
6.04.  No Waiver.

No waiver of any
condition precedent shall preclude the Agent or the Lenders from requiring such
condition to be met prior to making any subsequent Loan.  The Lenders and the Borrower may agree in
writing to deliver or perform certain conditions and requirements applicable to
the initial funding under the terms of this Agreement by a specified date
subsequent to the Initial Funding.  No
such agreement shall preclude the Lenders from thereafter declaring that the
failure of the Borrower to satisfy such conditions and requirements in
accordance with such agreement constitutes a Default or Event of Default, as
the case may be.

Article
VII

Representations and Warranties

The Borrower represents
and warrants to the Agent and the Lenders that (each representation and
warranty herein is given as of the date hereof and shall be deemed repeated

 45
 

 

and reaffirmed on the dates of each borrowing
and issuance, renewal, extension or reissuance of a Letter of Credit as
provided in Section 6.02):

SECTION
7.01.  Existence.

Each of the Borrower, the
General Partner and each Restricted Subsidiary: (i) is duly organized,
legally existing and in good standing under the laws of the jurisdiction of its
formation; (ii) has all requisite power, and has all material governmental
licenses, authorizations, consents and approvals necessary to own its assets
and carry on its business as now being or as proposed to be conducted and, with
respect to Restricted Subsidiaries, where a failure to have such items would
have a Material Adverse Effect; and (iii) is qualified to do business in
all jurisdictions in which the nature of the business conducted by it makes
such qualification necessary and where failure to so qualify would have a
Material Adverse Effect.

SECTION
7.02.  Financial Condition.

The audited consolidated
balance sheet of the Borrower and its Consolidated Subsidiaries as at December
31, 2005 and the related consolidated statement of income, equity and cash flow
of the Borrower and its Consolidated Subsidiaries for the fiscal year ended on
said date, with the opinion thereon of Deloitte & Touche LLP heretofore
furnished to each of the Lenders and the unaudited consolidated balance sheet
of the Borrower and its Consolidated Subsidiaries as at September 30, 2006 and
the related consolidated statements of income, equity and cash flow of the
Borrower and its Consolidated Subsidiaries for the six month period ended on such
date heretofore furnished to the Agent, are complete and correct and fairly
present in all material respects the consolidated financial condition of the
Borrower and its Consolidated Subsidiaries as at said dates and the results of
its operations for the fiscal year and the six month period ending on said
dates, all in accordance with GAAP, as applied on a consistent basis (subject,
in the case of the interim financial statements, to normal year-end adjustments
and, the lack of footnotes).  Neither the
Borrower nor any Subsidiary of the Borrower has on the date hereof any material
Debt, contingent liabilities, liabilities for taxes, unusual forward or
long-term commitments or unrealized or anticipated losses from any unfavorable
commitments, except as referred to or reflected or provided for in the
Financial Statements or in Schedule 7.02. 
Since December 31, 2005, there has been no change or event having a
Material Adverse Effect that is continuing. 
Since the date of the Financial Statements, neither the business nor the
Properties (taken as a whole) of the Borrower, any Guarantor or any Restricted
Subsidiary have been materially and adversely affected as a result of any fire,
explosion, earthquake, flood, drought, windstorm, accident, strike or other labor
disturbance, embargo, requisition or taking of Property or cancellation of
contracts, permits or concessions by any Governmental Authority, riot,
activities of armed forces or acts of God or of any public enemy which is
continuing.

SECTION
7.03.  Litigation.

Except as disclosed to
the Lenders in Schedule 7.03 hereto or as disclosed in the Borrower’s Form 10-K
for the year ended December 31, 2005 filed with the SEC (a true and complete
copy of which has been delivered to the Agent), as of the date hereof there is
no litigation, legal, administrative or arbitral proceeding, investigation or
other action of any nature pending or, to the knowledge of the Borrower
threatened against or affecting the Borrower, the

 46
 

 

General Partner or any Restricted Subsidiary that
(i) involves the possibility of any judgment or liability against the Borrower,
the General Partner or any Restricted Subsidiary not fully covered by insurance
(except for normal deductibles), and which, if determined adversely, would have
a Material Adverse Effect or (ii) threatens the enforceability of this
Agreement or any other Loan Document.

SECTION
7.04.  No Breach.

Neither the execution and
delivery of the Loan Documents, nor compliance with the terms and provisions
hereof will conflict with or result in a breach of, or require any consent
which has not been obtained as of the date hereof under, the respective
partnership agreements or other organizational documents of the Borrower, the
General Partner or any Restricted Subsidiary, or any Governmental Requirement
or any agreement or instrument to which the Borrower, the General Partner or
any Restricted Subsidiary is a party or by which it is bound or to which it or
its Properties are subject, or constitute a default under any such agreement or
instrument, or result in the creation or imposition of any Lien upon any of the
revenues or assets of the Borrower, the General Partner or any Restricted
Subsidiary pursuant to the terms of any such agreement or instrument, other
than the Liens created by the Loan Documents.

SECTION
7.05.  Authority.

Each of the Borrower, the
General Partner and each Restricted Subsidiary has all necessary power and
authority to execute, deliver and perform its obligations under the Loan
Documents to which it is a party; and the execution, delivery and performance
by each of the Borrower, the General Partner and each Restricted Subsidiary of
the Loan Documents to which it is a party, have been duly authorized by all
necessary action on its part; and each Loan Document to which the Borrower, the
General Partner or any Restricted Subsidiary is a party, constitutes the legal,
valid and binding obligation of the Borrower, such Guarantor, the General
Partner or such Restricted Subsidiary, as the case may be, and is enforceable
in accordance with its terms, except as limited by bankruptcy, insolvency,
reorganization, fraudulent conveyance, moratorium or other similar laws of
general application relating to or affecting creditors’ rights and general
principles of equity.

SECTION
7.06.  Approvals.

No authorizations,
approvals or consents of, and no filings or registrations with, any
Governmental Authority are necessary for the execution, delivery or performance
by the Borrower, the General Partner or the Restricted Subsidiaries of the Loan
Documents or for the validity or enforceability thereof.

SECTION
7.07.  Use of Loans.

The proceeds of the Loans
and Letters of Credit shall be used to pay-off certain outstanding Debt and for
working capital, capital expenditures, acquisitions and general partnership
purposes.  The Borrower is not engaged
principally, or as one of its important activities, in the business of
extending credit for the purpose, whether immediate, incidental or ultimate, of
buying or carrying margin stock (within the meaning of Regulation T, U or
X of the

 47
 

 

Board of Governors of the Federal Reserve
System) and no part of the proceeds of any Loan hereunder will be used to buy
or carry any margin stock.

SECTION
7.08.  ERISA.

(a)                                  The Borrower, each Subsidiary of the Borrower and
each ERISA Affiliate have complied in all material respects with ERISA and,
where applicable, the Code regarding each Plan.

(b)                                 Each Plan is, and has
been, maintained in substantial compliance with ERISA and, where applicable, the Code.

(c)                                  To the knowledge of the Borrower, no act,
omission or transaction has occurred that could result in imposition on the
Borrower, any Subsidiary of the Borrower or any ERISA Affiliate (whether
directly or indirectly) of (i) either a civil penalty assessed pursuant to
Section 502(c), (i) or (l)
of ERISA or a tax imposed pursuant to Chapter 43 of Subtitle D of the Code
or (ii) breach of fiduciary duty liability damages under section 409
of ERISA.

(d)                                 No Plan (other than a defined contribution plan)
or any trust created under any such Plan has been terminated since
December 31, 1985, other than the Pension Plan for Buckeye Pipe Line
Company (predecessor of Buckeye GP Holdings L.P.), which was terminated on
December 31, 1985.  Upon the
termination of the Pension Plan for Buckeye Pipe Line Company, distributions
were made or annuities purchased for each participant under such plan and
Borrower received a favorable determination letter from the Internal Revenue
Service with respect to the termination. 
No material liability to the PBGC (other than for the payment of current
premiums which are not past due) by the Borrower, any Subsidiary of the
Borrower or any ERISA Affiliate has been or is expected by the Borrower, any
Subsidiary of the Borrower or any ERISA Affiliate to be incurred with respect
to any Plan.  No ERISA Event with respect
to any Plan has occurred or is reasonably expected to be incurred.

(e)                                  Full payment when due has been made of all
amounts which the Borrower, any Subsidiary of the Borrower or any ERISA
Affiliate is required under the terms of each Plan or applicable law to have
paid as contributions to such Plan, and no accumulated funding deficiency (as
defined in section 302 of ERISA and section 412 of the Code), whether
or not waived, exists with respect to any Plan.

(f)                                    The actuarial present value of the benefit
liabilities under all Plans, which are not Multiemployer Plans, that are
subject to Title IV of ERISA do not, as of the end of the Borrower’s most
recently ended fiscal year, exceed the current value of the assets (computed on
a plan termination basis in accordance with Title IV of ERISA) of such
Plans allocable to such benefit liabilities by more than $10,000,000 in the
aggregate.  The term “actuarial present
value of the benefit liabilities” shall have the meaning specified in
section 4041 of ERISA.

(g)                                 None of the Borrower, any Subsidiary of the
Borrower or any ERISA Affiliate sponsors, maintains, or contributes to an
employee welfare benefit plan, as defined in section 3(l) of ERISA,
including, without limitation, any such plan maintained to provide benefits to
former employees of such entities, that may not be terminated by the Borrower,
such Subsidiary or such ERISA Affiliate in its sole discretion at any time
without any material liability.

 48
 

 

(h)                                 Except as set forth in Schedule 7.08, none
of the Borrower, any Subsidiary of the Borrower or any ERISA Affiliate
sponsors, maintains or contributes to, or has at any time in the preceding six
calendar years, sponsored, maintained or contributed to, any Multiemployer
Plan.

(i)                                     Neither the Borrower, any Subsidiary of the
Borrower or any ERISA Affiliate is required to provide security under
section 401(a)(29) of the Code due to a Plan amendment that results in an
increase in current liability for the Plan.

(j)                                     Neither the Borrower, any Subsidiary of the
Borrower or any ERISA Affiliate has incurred or reasonably expects to incur any
liability as a result of a complete or partial withdrawal from a Multiemployer
Plan.

(k)                                  Within the last six years no Multiemployer Plan
to which the Borrower, any Subsidiary of the Borrower or any ERISA Affiliate
has contributed or had an obligation to contribute has been terminated as
described in Section 4041A of ERISA, is or has been in reorganization as
described in Section 4241 of ERISA or insolvent as described in Section 4245 of
ERISA, or has received financial assistance as described in Section 4261 of
ERISA.

SECTION
7.09.  Taxes.

Except as set forth in Schedule
7.09, each of the Borrower, the General Partner and the Restricted Subsidiaries
has filed all material United States Federal income tax returns and all other
material tax returns which are required to be filed by them and have paid all
material taxes due pursuant to such returns or pursuant to any assessment
received by the Borrower, the General Partner or any Restricted
Subsidiary.  The charges, accruals and
reserves on the books of the Borrower, the General Partner and the Restricted
Subsidiaries in respect of taxes and other governmental charges are, in the
opinion of the Borrower, adequate. 
Except as set forth in Schedule 7.09, no tax lien has been filed
and, to the knowledge of the Borrower, no claim is being asserted with respect
to any such tax, fee or other charge.

SECTION
7.10.  Titles, etc.

(a)                                  Except as set out in Schedule 7.10, each of the
Borrower and the Restricted Subsidiaries has good and defensible title to its
material (individually or in the aggregate) Properties, free and clear of all
Liens, except Liens permitted by Section 9.02.

(b)                                 All leases and agreements necessary for the
conduct of the business of the Borrower and the Restricted Subsidiaries are
valid and subsisting, in full force and effect, except as could not reasonably
be expected to have a Material Adverse Effect, and there exists no default or event
or circumstance which with the giving of notice or the passage of time or both
would give rise to a default under any such lease or leases, which would affect
in any material respect the conduct of the business of the Borrower or the
Restricted Subsidiaries.

(c)                                  The rights, Properties and other assets presently
owned, leased or licensed by the Borrower and the Restricted Subsidiaries
including, without limitation, all easements and rights of way, include all
rights, Properties and other assets necessary to permit the Borrower and each

 49
 

 

Restricted Subsidiary to conduct
its business in all material respects in the same manner as its business has
been conducted prior to the date hereof.

(d)                                 All of the assets and Properties of the Borrower
and the Restricted Subsidiaries that are reasonably necessary for the operation
of their business are in all material respects in good working condition and
are maintained in accordance with prudent business standards.

SECTION
7.11.  No Material Misstatements.

No written information,
statement, exhibit, certificate, document or report furnished to the Agent and
the Lenders (or any of them) by the Borrower, any Guarantor or any Restricted
Subsidiary in connection with the negotiation of this Agreement contained any
material misstatement of fact or omitted to state a material fact or any fact
necessary to make the statement contained therein not materially misleading in
the light of the circumstances in which made. 
There is no fact peculiar to the Borrower or any Restricted Subsidiary
that has a Material Adverse Effect or in the future is reasonably likely to
have (so far as the Borrower can now foresee) a Material Adverse Effect and
that has not been set forth in this Agreement or the other documents,
certificates and statements furnished to the Agent by or on behalf of the
Borrower or any Restricted Subsidiary prior to or as of the date hereof in
connection with the transactions contemplated hereby.

SECTION
7.12.  Investment Company Act and Other
Laws.

None of the Borrower, any
Guarantor or any Restricted Subsidiary is an “investment company” or a company “controlled”
by an “investment company,” within the meaning of the Investment Company Act of
1940, as amended or is subject to regulation under the Federal Power Act, as
amended, or any other law or regulation that restricts the ability of such
Person to incur or guaranty Debt.

SECTION 7.13.  No Other Debt.

Other than pursuant to
Section 8.04, as of the date hereof, Laurel Pipe Line is not seeking to satisfy
any Governmental Requirements in connection with the issuance of Debt.

SECTION 7.14.  Subsidiaries.

Except as set forth on
Schedule 7.14 or otherwise as disclosed to the Agent in writing, the Borrower
does not have any Subsidiaries.

SECTION 7.15.  Location of Business and Offices.

The Borrower’s principal
place of business and chief executive office is located at the address stated
on the signature page of this Agreement or as otherwise disclosed in writing to
the Agent.  The principal place of
business and chief executive office of each Restricted Subsidiary are located
at the addresses stated on Schedule 7.14 or as otherwise disclosed in writing
to the Agent.

 50
 

 

SECTION
7.16.  Defaults.

None of the Borrower, any
Guarantor or any Restricted Subsidiary is in default nor has any event or
circumstance occurred which, but for the expiration of any applicable grace
period or the giving of notice, or both, would constitute a default under any
material agreement or instrument to which it is a party or by which it is bound
which default would have a Material Adverse Effect.  No Default hereunder has occurred and is
continuing.

SECTION
7.17.  Environmental Matters.

Except (i) as
provided in Schedule 7.17, (ii) as disclosed in the Form 10-K for the year
ended December 31, 2005 filed by the Borrower with the SEC, or (iii) as
would not have a Material Adverse Effect (or with respect to (c), (d) and
(e) below, where the failure to take such actions would not have a
Material Adverse Effect):

(a)                                  Neither any Property
of the Borrower, any Guarantor or any Restricted Subsidiary nor the operations conducted thereon violate any
order or requirement of any court or Governmental Authority or any
Environmental Laws;

(b)                                 Without limitation of clause (a) above,
no Property of the Borrower, any Guarantor or any Restricted Subsidiary nor the
operations currently conducted thereon or, to the best knowledge of the
Borrower, by any prior owner or operator of such Property or operation, are in
violation of or subject to any existing, pending or threatened action,
suit, investigation, inquiry or proceeding
by or before any court or Governmental Authority or to any remedial obligations
under Environmental Laws;

(c)                                  All notices, permits, licenses or similar
authorizations, if any, required to be obtained or filed in connection with the
operation or use of any and all Property of the Borrower and each Restricted
Subsidiary, including without limitation past or present treatment, storage,
disposal or release of a hazardous substance, hazardous waste or solid waste into
the environment, have been duly obtained or filed, and each of the Borrower and
the Restricted Subsidiaries are in compliance with the terms and conditions of
all such notices, permits, licenses and similar authorizations;

(d)                                 All hazardous substances, hazardous waste, solid
waste, and oil and gas exploration and production wastes, if any, generated at
any and all Property of the Borrower, any Guarantor or any Restricted
Subsidiary have in the past been transported, treated and disposed of in
accordance with Environmental Laws and so as not to pose an endangerment to
public health or welfare or the environment, and, to the best knowledge of the
Borrower, all such transport carriers and treatment and disposal facilities
have been and are operating in compliance with Environmental Laws and so as not
to pose an imminent and substantial endangerment to public health or welfare or
the environment, and are not the subject of any existing, pending or threatened
action, investigation or inquiry by any Governmental Authority in connection
with any Environmental Laws;

(e)                                  The Borrower and the Restricted Subsidiaries have
taken all steps reasonably necessary to determine and have determined that no
hazardous substances, hazardous waste, solid waste, or oil and gas exploration
and production wastes, have been disposed of or otherwise

 51
 

 

released and there has been no
threatened release of any hazardous substances on or to any Property of the
Borrower or any Restricted Subsidiary;

(f)                                    To the extent applicable, all Property of the
Borrower and each Restricted Subsidiary currently satisfies all design,
operation, and equipment requirements imposed by the Environmental Laws or
scheduled as of the date hereof to be imposed by the Environmental Laws during
the term of this Agreement, and the Borrower does not have any reason to
believe that such Property, to the extent subject to the Environmental Laws,
will not be able to maintain compliance with the Environmental Laws requirements during the term of this
Agreement; and

(g)                                 None of the Borrower, any Guarantor or any
Restricted Subsidiary has any known contingent liability in connection with any
release or threatened release of any oil, hazardous substance, hazardous waste
or solid waste into the environment.

SECTION 7.18. 
Compliance with the Law.

None of the Borrower, any
Guarantor or any Restricted Subsidiary has violated any Governmental
Requirement or failed to obtain any license, permit, franchise or other
governmental authorization necessary for the ownership of any of its Properties
or the conduct of its business, which violation or failure would have (in the
event such violation or failure were asserted by any Person through appropriate
action) a Material Adverse Effect.

SECTION
7.19.  Insurance.

The Borrower and each of
the Restricted Subsidiaries maintains, with financially sound and reputable
insurers, insurance with respect to their respective Properties and businesses
against such casualties and contingencies, of such types, on such terms and in
such amounts (including deductibles, co-insurance and self-insurance, if
adequate reserves are maintained with respect thereto) as is customary in the
case of entities of established reputations engaged in the same or a similar
business and similarly situated.  All
such policies are in full force and effect, all premiums with respect thereto
covering all periods up to and including the date of the closing have been
paid, and no notice of cancellation or termination has been received with
respect to any such policy.  Such
policies are sufficient for compliance with all requirements of law and of all
agreements to which the Borrower or any Restricted Subsidiary is a party; are
valid, outstanding and enforceable policies; provide adequate insurance
coverage in at least such amounts and against at least such risks (but
including in any event public liability) as are usually insured against in the
same general area by companies engaged in the same or a similar business for
the assets and operations of the Borrower and each Restricted Subsidiary.

SECTION
7.20.  Material Agreements.

The Borrower has
heretofore delivered to the Agent a complete and correct copy of the Indenture
and the Note Agreements relating to the Senior Notes, each as amended and in
effect on the date hereof.

 52
 

 

SECTION
7.21.  Partnership Agreement.

The Borrower Partnership
Agreement has not been terminated, and is in full force and effect as of the
date hereof and no default has occurred and is continuing thereunder which
would have a Material Adverse Effect.

SECTION
7.22.  Ownership of Parties.

(a)                                  The Borrower is a limited partnership formed
under the laws of the State of Delaware and owned 0.6% (general partnership
interest) by the General Partner and 99.4% (limited partnership interests) by
public holders of limited partnership units and Buckeye Pipe Line Services
Company.

(b)                                 The form of organization and equity ownership of
each Restricted Subsidiary and each Unrestricted Subsidiary as of the date
hereof is set forth on Schedule 7.22.

(c)                                  Buckeye GP Holdings L.P. owns 100% of the equity
interests of the General Partner as of the date hereof.

SECTION
7.23.  Patriot Act.

Each of the Borrower, the General Partner and the
Restricted Subsidiaries is in compliance, in all material respects, with the
(i) the Trading with the Enemy Act, as amended, and each of the foreign
assets control regulations of the United States Treasury Department (31 CFR,
Subtitle B, Chapter V, as amended) and any other enabling legislation or
executive order relating thereto, and (ii) the Uniting And Strengthening
America By Providing Appropriate Tools Required To Intercept And Obstruct
Terrorism (USA Patriot Act of 2001).  No
part of the proceeds of the Loans will be used, directly or indirectly, for any
payments to any governmental official or employee, political party, official of
a political party, candidate for political office, or anyone else acting in an
official capacity, in order to obtain, retain or direct business or obtain any
improper advantage, in violation of the United States Foreign Corrupt Practices
Act of 1977, as amended.

Article VIII

Affirmative Covenants

The Borrower covenants
and agrees that, so long as any of the Revolving Credit Commitments are in
effect or any Letter of Credit remains outstanding and until payment in full of
all Loans hereunder, all interest thereon and all other amounts payable by the
Borrower hereunder and the Guarantors under the Guaranty:

SECTION
8.01.  Reporting Requirements.

The Borrower shall
deliver, or shall cause to be delivered, to the Agent with sufficient copies of
each for the Lenders:

(a)                                  Annual Financial
Statements.  As soon as available and in any event within
120 days after the end of each fiscal year of the Borrower, the audited
consolidated and, within 120

 53
 

 

days after the end of each fiscal
year of the Borrower, unaudited consolidating statements of income, equity,
changes in financial position and cash flow of the Borrower and its
Consolidated Subsidiaries for such fiscal year, and the related consolidated
and consolidating balance sheets of the Borrower and its Consolidated
Subsidiaries as at the end of such fiscal year, and setting forth in each case
in comparative form the corresponding figures for the preceding fiscal year,
and, in the case of the audited statements, accompanied by the related opinion
of independent public accountants of recognized national standing acceptable to
the Agent which opinion shall state that said financial statements fairly
present in all material respects the consolidated and consolidating financial
condition and results of operations of the Borrower and its Consolidated
Subsidiaries as at the end of, and for, such fiscal year and that such
financial statements have been prepared in accordance with GAAP, except for
such changes in such principles with which the independent public accountants
shall have concurred and such opinion shall not contain a “going
concern” or like qualification or
exception, and a certificate of such accountants stating that, in making the
examination necessary for their opinion, they obtained no knowledge, except as
specifically stated, of any Default.

(b)                                 Quarterly
Financial Statements.  As soon as available and in any event within
60 days after the end of each of the first three fiscal quarterly periods of
each fiscal year of the Borrower, consolidated and consolidating statements of
income, equity, changes in financial position and cash flow of the Borrower and
its Consolidated Subsidiaries for such period and for the period from the
beginning of the respective fiscal year to the end of such period, and the
related consolidated and consolidating balance sheets as at the end of such
period, and setting forth in each case in comparative form the corresponding
figures for the corresponding period in the preceding fiscal year, accompanied
by the certificate of a Responsible Officer, which certificate shall state that
said financial statements fairly present in all material respects the
consolidated and consolidating financial condition and results of operations of
the Borrower and its Consolidated Subsidiaries in accordance with GAAP, as at
the end of, and for, such period (subject to normal year-end audit adjustments
and the lack of footnotes).

(c)                                  Change in Reference Rating.  Promptly and in any event within seven
Business Days after Moody’s or S&P has changed any relevant Reference
Rating, notice of such change.

(d)                                 Notice of
Default, Etc.  Promptly after a Responsible Officer knows
that any Default or any Material Adverse Effect has occurred, a notice of such
Default or Material Adverse Effect, describing the same in reasonable detail
and the action the Borrower proposes to take with respect thereto.

(e)                                  Other Accounting
Reports.  Promptly upon receipt thereof, a copy of each
other report or letter submitted to the Borrower or any Subsidiary of the
Borrower by independent accountants in connection with any annual, interim or
special audit made by them of the books of the Borrower and its Subsidiaries,
and a copy of any response by any Guarantor or any Subsidiary of the Borrower,
to such letter or report.

(f)                                    Governmental
Authorities.  Promptly upon receipt thereof, a copy of any
notice from any Governmental Authority (except where involving a routine or
ordinary course matter, which in any case is immaterial), and promptly upon a
Responsible Officer’s knowledge thereof,

 54
 

 

notice of any material dispute
with any Governmental Authority involving the Borrower, any Guarantor or any
Restricted Subsidiary.

(g)                                 Notices Under
Other Loan Agreements.  Promptly after the furnishing thereof, copies
of any statement, report or notice furnished by the Borrower to any Person
pursuant to the terms of any indenture, loan or credit or other similar
agreement, other than this Agreement and not otherwise required to be furnished
to the Lenders pursuant to any other provision of this Section 8.01.

(h)                                 Other Matters.  From time
to time such other information regarding the business, affairs or financial
condition of the Borrower or any Subsidiary of the Borrower (including, without
limitation, any Plan or Multiemployer Plan and any reports or other information
required to be filed under ERISA) as the Agent may reasonably request.

The Borrower will furnish
to the Agent, at the time each set of financial statements is furnished to the
Agent pursuant to paragraph (a) or (b) above, a Compliance
Certificate executed by a Responsible Officer, (i) certifying as to the
matters set forth therein and stating that no Default has occurred and is
continuing (or, if any Default has occurred and is continuing, describing the
same in reasonable detail), and (ii) setting forth in reasonable detail
the computations necessary to determine whether the Borrower is in compliance
with Section 9.12 as of the end of the respective fiscal quarter or fiscal
year.

SECTION 8.02. 
Litigation.

The Borrower shall
promptly give, and shall cause any Restricted Subsidiary to give to the Agent
notice of: (i) all legal or arbitral proceedings, and of all proceedings
before any Governmental Authority affecting the Borrower, the Guarantor or any
Restricted Subsidiary, except proceedings which, if adversely determined, would
not have a Material Adverse Effect, and (ii) any litigation or proceeding
against or adversely affecting the Borrower, the Guarantor or any Restricted
Subsidiary in which the amount involved exceeds $5,000,000 and is not covered
in full by insurance (subject to normal and customary deductibles and for which
the insurer has not assumed the defense), or in which injunctive or similar
relief is sought.

The Borrower will
promptly notify the Agent and each of the Lenders of any claim, judgment, Lien
or other encumbrance affecting any Property of the Borrower, the Guarantor or
any Restricted Subsidiary if the value of the claim, judgment, Lien, or other
encumbrance affecting such Property shall exceed $5,000,000.

SECTION
8.03.  Maintenance, Etc.

(a)                                  Generally.  The
Borrower shall: preserve and maintain its partnership or corporate existence,
except otherwise as permitted in Section 9.08 of this Agreement and all
of its material rights, privileges and franchises and shall cause the
Restricted Subsidiaries to do so; keep books of record and account in which
full, true and correct entries will be made of all dealings or transactions in
relation to its business and activities; comply with all Governmental Requirements
if failure to comply with such requirements will have a Material Adverse
Effect; pay and discharge all taxes, assessments and governmental charges or
levies imposed on it or on its income or profits or on any of its Property
prior to the date on which penalties attach
thereto,

 55
 

 

except for any such tax,
assessment, charge or levy the payment of which is being contested in good
faith and by proper proceedings and against which adequate reserves are being
maintained; upon reasonable notice, permit representatives of the Agent or any
Lender, during normal business hours, to examine, copy and make extracts from
its books and records, to inspect its Properties, and to discuss its business
and affairs with its officers, all to-the extent reasonably requested by such
Lender or the Agent (as the case may be); and keep, or cause to be kept,
insured by financially sound and reputable insurers all Property of a character
usually insured by Persons engaged in the same or similar business similarly
situated against loss or damage of the kinds and in the amounts customarily
insured against by such Persons and carry such other insurance as is usually
carried by such Persons including, without limitation, environmental risk
insurance to the extent reasonably available.

(b)                                 Proof of
Insurance.  Contemporaneously with the delivery of the
financial statements required by Section 8.01(a) to be delivered for
each year, the Borrower will furnish or cause to be furnished, and will cause
to be furnished for the Restricted Subsidiaries, to the Agent certificates of
insurance coverage from an insurer in form and substance reasonably
satisfactory to the Agent and, if requested, will furnish the Agent copies of
the applicable policies.

(c)                                  Operation of
Properties.  The Borrower will and will cause each
Restricted Subsidiary to, except otherwise as permitted by Section 9.08
or 9.14 of this Agreement, operate its Properties or cause such
Properties to be operated in a careful and efficient manner in accordance with
the practices of the industry and in compliance with all applicable contracts
and agreements and in compliance in all material respects with all Governmental
Requirements except where such non-compliance could not reasonably be expected
individually or in the aggregate to have a Material Adverse Effect.

SECTION 8.04.  Guaranty Approval.

No later than 180 days
after the Closing Date, the Borrower will cause Laurel Pipe Line to satisfy all
Governmental Requirements necessary for the execution, delivery and performance
by Laurel Pipe Line of a Guaranty and, promptly after the satisfaction of such
Governmental Requirements, the Borrower shall cause Laurel Pipe Line to execute
and deliver a Guaranty and such other related documents as the Agent or special
counsel to the Agent may reasonably request.

SECTION 8.05.  Environmental Matters.

(a)                                  Establishment of
Procedures.  The Borrower will and will cause each
Restricted Subsidiary to, establish and implement such procedures as may be
reasonably necessary to determine and assure that any failure of the following,
if applicable, does not have a Material Adverse Effect: (i) all Property
of the Borrower and the Restricted Subsidiaries, and the operations conducted
thereon and other activities of the Borrower and the Restricted Subsidiaries, are
in compliance with and do not violate the requirements of any Environmental
Laws, (ii) no oil, hazardous substances or solid wastes are disposed of or
otherwise released on or to any Property owned by the Borrower, any Guarantor
or any Restricted Subsidiary except in compliance with Environmental Laws,
(iii) no hazardous substance will be released on or to any such Property
in a quantity equal to or exceeding that quantity which requires reporting
pursuant

 56
 

 

to Section 103 of CERCLA,
and (iv) no oil, oil and gas exploration and production wastes or
hazardous substance is released on or to any such Property so as to pose an
imminent and substantial endangerment to public health or welfare or the
environment.

(b)                                 Notice of
Action.  The Borrower will, and will cause each
Restricted Subsidiary to, promptly notify the Agent and the Lenders in writing
of any threatened action or investigation by any Governmental Authority of
which a Responsible Officer or any Restricted Subsidiary (or its general
partner, as appropriate) has knowledge in connection with any Environmental
Laws, excluding routine testing and corrective action.

(c)                                  Future
Acquisitions.  The Borrower will, and will cause each
Restricted Subsidiary to, provide environmental audits and tests in accordance
with American Society for Testing and Materials standards as reasonably
requested by the Agent or any Lender through
the Agent (or as otherwise required to be obtained by the Agent or the Lenders
by any Governmental Authority) in connection with any future acquisitions of
any material Properties by the Borrower, any Guarantor or any Restricted
Subsidiary.

SECTION 8.06.  Further Assurances.

The Borrower will
promptly cure any defects in the execution and delivery of the other Loan
Documents.  The Borrower, at its expense,
will promptly execute and deliver (or cause to be promptly executed and
delivered) to the Agent upon reasonable request all such other documents,
agreements and instruments to comply with or accomplish the covenants and
agreements of the Borrower in the Loan Documents, or to, correct any omissions
in the Loan Documents, or to state more fully the obligations set out herein or
in any of the other Loan Documents, or to make any recordings, to file any
notices or obtain any consents, all as may be necessary or appropriate in
connection therewith.

SECTION 8.07.  Performance of Obligations.

The Borrower will do and
perform every act and discharge all of the obligations to be performed and
discharged by it under this Agreement, at the time or times and in the manner
specified.

SECTION 8.08.  ERISA Information and Compliance.

The Borrower will
promptly furnish and will cause any ERISA Affiliate to promptly furnish to the
Agent with sufficient copies to the Lenders (i) upon the request of Agent,
copies of each annual and other material report filed with the United States
Secretary of Labor, the Internal Revenue Service or the PBGC, with respect to
each Plan or any trust created thereunder, (ii) as soon as possible and in
any event within 30 days after the occurrence of any ERISA Event in
clause (i) of the definition of ERISA Event or any “prohibited
transaction,” as described in section 406 of ERISA or in section 4975
of the Code, and in any event within 10 days after any other ERISA Event, in
connection with any Plan or any trust created thereunder, a written notice
signed by a Responsible Officer specifying the nature thereof, what action the
Borrower or the ERISA Affiliate is taking or proposes to take with respect
thereto, and, when known, any action taken or proposed by the Internal Revenue
Service, the Department of Labor or the PBGC with respect thereto, and
(iii) immediately upon receipt thereof, copies of any notice of the PBGC’s

 57
 

 

intention to terminate, or to have a trustee
appointed to administer, any Plan.  With
respect to each Plan (other than a Multiemployer Plan), the Borrower will, and
will cause each ERISA Affiliate to, (i) satisfy in full and in a timely
manner, without incurring any late payment or underpayment charge or penalty
and without giving rise to any lien, all of the contribution and funding
requirements of section 412 of the Code (determined without regard to
subsections (d), (e), (f) and (k) thereof) and of section 302 of
ERISA (determined without regard to sections 303, 304 and 306 of ERISA),
and (ii) pay, or cause to be paid, to the PBGC in a timely manner, without
incurring any late payment or underpayment charge or penalty, all premiums
required pursuant to sections 4006 and 4007 of ERISA.

SECTION 8.09.  Compliance with and Modification of
Organizational Documents.

The Borrower shall comply
in all material respects with any terms and provisions of the Borrower
Partnership Agreement regarding maintaining the separateness of the records,
assets and formalities of the Borrower and its Consolidated Subsidiaries from
any other Person, and without the prior written consent of Required Lenders,
which shall not be unreasonably withheld, shall not amend, supplement or
otherwise modify (pursuant to a waiver or otherwise) any of such separateness
provisions in a manner materially adverse to the interests of the Lenders
unless both (i) Carlyle/Riverstone BPL Holdings II, L.P. or its successors no
longer owns an interest in the General Partner, and (ii) Borrower obtains a
Ratings Affirmation in connection with any such amendment, supplement,
modification or failure to comply.

SECTION 8.10.  Additional Subsidiaries.  Within 30 days after the acquisition or
formation of any Subsidiary after the Closing Date, other than a Subsidiary
designated by the General Partner as an Unrestricted Subsidiary, the Borrower
will cause such Subsidiary to become a Guarantor by executing and
delivering to the Agent a Guaranty and such other related documents as the
Agent may reasonably request.

Article IX

Negative Covenants

The Borrower covenants
and agrees that, so long as any of the Revolving Credit Commitments are in
effect or any Letter of Credit remains outstanding and until payment in full of
Loans hereunder, all interest thereon and all other amounts payable by the
Borrower hereunder and the Guarantors under the Guaranties, without the prior
written consent of the Required Lenders:

SECTION 9.01.  Debt.

The Borrower will not and
will not cause or permit any Guarantor or any Restricted Subsidiary to incur, create,
assume or permit to exist any Debt, except:

(a)                                  the Debt hereunder or any guaranty of or
suretyship arrangement for the Debt hereunder;

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(b)                                 Debt of the Borrower and the Restricted
Subsidiaries existing on the date hereof that is reflected in the Financial
Statements or is disclosed in Schedule 9.01, and any renewals or extensions
(but not increases) thereof;

(c)                                  accounts payable (for the deferred purchase price
of Property or services) from time to time incurred in the ordinary course of
business which, if material and greater than 90 days past the invoice or
billing date, are being contested in good faith by appropriate proceedings if
reserves adequate under GAAP shall have been established therefor;

(d)                                 Debt of the Borrower and the Restricted
Subsidiaries requiring no scheduled principal payments (whether at stated
maturity or by virtue of scheduled amortization, required prepayment or redemption)
due until at least one year after the Termination Date and issued under the
Indenture or otherwise under agreements containing covenants no more
restrictive to the Borrower or the Restricted Subsidiaries, as the case may be,
than the covenants contained in this Agreement;

(e)                                  Debt that is secured by Liens permitted under
Section 9.02(d) and under clause (xv) of the definition of Excepted Liens which
in the aggregate shall not to exceed $25,000,000 outstanding at any one time;

(f)                                    Debt of the Borrower and the Restricted
Subsidiaries under Hedging Agreements entered into as a part of its normal
business operations as a risk management strategy and/or hedge against changes
resulting from market conditions related to the Borrower’s operations;

(g)                                 Debt as a result of (and to the extent permitted
by) Sections 9.03(g); and

(h)                                 Other unsecured Debt of the Borrower and the
Restricted Subsidiaries so long as at the time such Debt is incurred, and after
giving pro forma effect to the incurrence and applications of the proceeds
thereof, the Borrower shall be in pro forma compliance with the financial
covenants contained in Section 9.12 and no Default or Event of Default shall
have occurred and be continuing.

SECTION
9.02.  Liens.

The Borrower will not and
will not cause or permit any Guarantor or any Restricted Subsidiary to create,
incur, assume or permit to exist any Lien on any of its Properties (now owned
or hereafter acquired), except:

(a)                                  Liens securing the payment of any Debt hereunder;

(b)                                 Excepted Liens;

(c)                                  Liens disclosed on Schedule 9.02; and

(d)                                 Liens originally created to secure purchase money
Debt permitted under Section 9.01(e), which in each case shall not exceed
100% of the lesser of the total purchase price and the fair market value of the
Property acquired as determined at the time of acquisition; provided, that, (i) the Property to be purchased with
the proceeds of such Debt shall be purchased

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not more than 60 days prior to
the date of the creation of such Lien and (ii) such Lien encumbers only
the Property so acquired.

SECTION
9.03.  Investments, Loans and Advances.

The Borrower will not and
will not cause or permit any Guarantor or any Restricted Subsidiary to make or
permit to remain outstanding any loans or extensions of credit to or investments
in any Person, except that the foregoing restriction shall not apply to:

(a)                                  investments, loans or extensions of credit
reflected in the Financial Statements or which are disclosed to the Lenders in
Schedule 9.03;

(b)                                 accounts receivable arising in the ordinary
course of business;

(c)                                  direct obligations of the United States or any
agency thereof, or obligations guaranteed by the United States or any agency
thereof, in each case maturing within one year from the date of creation
thereof;

(d)                                 commercial paper maturing within one year from
the date of creation thereof rated in the highest grade by S&P or Moody’s;

(e)                                  deposits maturing within one year from the date
of creation thereof with, including certificates of deposit issued by, any
Lender or any office located in the United States of any other bank or trust
company which is organized under the laws of the United States or any state
thereof, has capital, surplus and undivided profits aggregating at least
$100,000,000.00 (as of the date of such Lender’s or bank or trust company’s
most recent financial reports) and has a short term deposit rating of no lower
than A2 or P2, as such rating is set forth from time to time, by S&P or
Moody’s, respectively;

(f)                                    deposits in money market funds investing exclusively
in investments described in Section 9.03(c), 9.03(d) or 9.03(e);

(g)                                 investments, loans or extensions of credit made
in or to the Borrower or any Restricted Subsidiary that has executed a
Guaranty;

(h)                                 investments, loans or extensions of credit in or
to any Person (other than the Borrower or any Restricted Subsidiary that has
executed a Guaranty) not to exceed $100,000,000 in the aggregate at any time
outstanding; and

(i)                                     other investments, loans and extensions of credit
in or to any Person made with equity of the Borrower or with other
consideration, including cash, not to exceed the amount of net proceeds
received by the Borrower from an equity offering occurring substantially
concurrent therewith.

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SECTION
9.04.  Distributions and Redemptions.

If an Event of Default
has occurred and is continuing or would result therefrom, the Borrower will not
purchase, redeem or otherwise acquire for value any of its partnership or other
equity interests now or hereafter outstanding, return any capital or make any dividend
or distribution of its assets to holders of its partnership or other equity
interests.

SECTION
9.05.  Sales and Leasebacks.

The Borrower will not,
and will not cause or permit any Restricted Subsidiary to, enter into any
Sale-Leaseback Transaction, unless:

(a)                                  such Sale-Leaseback Transaction occurs within one
year after the later of (i) completion of the acquisition of the
applicable Property by the Borrower or such Restricted Subsidiary or
(ii) commencement of full operation with respect to such Property; or

(b)                                 such Sale-Leaseback Transaction involves a lease
for a term of not more than three years; or

(c)                                  the net sale proceeds derived from the sale or
transfer by the Borrower or such Restricted Subsidiary of the Property involved
are used solely (i) to prepay
or retire Funded Debt of the Borrower ranking pari passu with the Debt
hereunder or (ii) for capital improvements with respect to the pipeline or
terminal systems of the Borrower or any Restricted Subsidiary made in the
ordinary course of business of the Borrower or such Restricted Subsidiary; or

(d)                                 the Sale-Leaseback Attributable Debt attributable
to such Sale-Leaseback Transaction would be permitted under
Section 9.01(e).

SECTION
9.06.  Nature of Business.

The Borrower will not, and will not permit any Restricted Subsidiary
to, make any material change in the nature of its business as it exists on the
date hereof or, in the case of a Restricted Subsidiary, acquired or established
after the date hereof, as the nature of the business existed on the date of
such acquisition or establishment.

SECTION
9.07.  Restrictive Agreements.

The Borrower will not,
and will not permit any Restricted Subsidiary to, directly or indirectly, enter
into, incur or permit to exist any agreement that prohibits, restricts or
imposes any condition upon the ability of any such Restricted Subsidiary to
declare or pay dividends or distributions to holders of its equity interests,
to make or repay loans or advances to the Borrower or any other Restricted
Subsidiary, to guarantee Indebtedness of the Borrower or any other such
Restricted Subsidiary or to transfer any of its property or assets to the
Borrower or any such Restricted Subsidiary; provided, that
(A) the foregoing shall not apply to restrictions or conditions imposed by
law, this Agreement or any other Loan Document, the Note Agreements, the
Indenture (in the case of the Note Agreements and the Indenture, as in effect
on the date hereof), or any Hybrid Securities, and (B) the foregoing shall
not apply to customary restrictions and conditions contained in agreements
relating to the sale of any Restricted Subsidiary of the

 61
 

 

Borrower pending
such sale, provided such restrictions and conditions apply only to the
Restricted Subsidiary that is sold and such sale is permitted hereunder.

SECTION
9.08.  Mergers, Etc.

The Borrower will not
merge into or with or consolidate with any other Person unless the Borrower is
the surviving Person; no Guarantor will merge into or with or consolidate with
any other Person unless the Borrower or such Guarantor is the surviving Person;
no Restricted Subsidiary that is not a Guarantor will merge into or consolidate
with any other Person, unless the Borrower, a Guarantor or such Restricted
Subsidiary is the surviving Person.  None
of the Borrower, any Guarantor or any Restricted Subsidiary will sell, lease or
otherwise dispose of (whether in one transaction or in a series of
transactions) all or substantially all of its Property or assets to any other
Person other than the Borrower or any Guarantor.

SECTION
9.09.  Proceeds of the Loans; Letters of
Credit.

The Borrower will not
permit the proceeds of the Loans or the proceeds of the Letters of Credit to be
used for any purpose other than those permitted by Section 7.07.  Neither the Borrower nor any Person acting on
behalf of the Borrower has taken or will take any action which might cause any
of the Loan Documents to violate Regulation T, U or X or any other
Regulation of the Board of Governors of the Federal Reserve System or to
violate Section 7 of the Securities Exchange Act of 1934 or any rule or
regulation thereunder, in each case as now in effect or as the same may
hereinafter be in effect.

SECTION
9.10.  ERISA Compliance.

The Borrower will not at
any time take any of the following actions that could reasonably be expected,
individually or in the aggregate, to result in a Material Adverse Effect:

(a)                                  Engage in, or permit any Subsidiary of the
Borrower or ERISA Affiliate to engage in, any transaction in connection with
which the Borrower, any Subsidiary of the Borrower or any ERISA Affiliate could
be subjected to either a civil penalty assessed pursuant to
section 502(c), (i) or (l) of ERISA or a tax imposed by Chapter 43 of
Subtitle D of the Code;

(b)                                 Terminate, or permit any Subsidiary of the Borrower
or ERISA Affiliate to terminate, any Plan in a manner, or take any other action
with respect to any Plan, that could result in any liability to the Borrower,
any Subsidiary of the Borrower or any ERISA Affiliate to the PBGC;

(c)                                  Fail to make, or permit any Subsidiary of the
Borrower or ERISA Affiliate to fail to make, full payment when due of all
amounts that, under the provisions of any Plan, agreement relating thereto or
applicable law, the Borrower, a Subsidiary or any ERISA Affiliate is required
to pay as contributions thereto;

(d)                                 Permit to exist, or allow any Subsidiary of the
Borrower or ERISA Affiliate to permit to exist, any accumulated funding
deficiency within the meaning of section 302 of ERISA or section 412
of the Code, whether or not waived, with respect to any Plan;

 62
 

 

(e)                                  Except as permitted in Section 7.08, permit, or allow any Subsidiary of the Borrower
or ERISA Affiliate to permit, the actuarial present value of the benefit
liabilities under any Plan that is regulated under Title IV of ERISA to
exceed the current value of the assets (computed on a plan termination basis in
accordance with Title IV of ERISA) of such Plan allocable to such benefit
liabilities.  The term “actuarial present
value of the benefit liabilities” shall have the meaning specified in
section 4041 of ERISA;

(f)                                    Contribute to or assume an obligation to
contribute to, or permit any Subsidiary of the Borrower or ERISA Affiliate to
contribute to or assume an obligation to contribute to, any Multiemployer Plan,
except as set forth in Schedule 7.08;

(g)                                 Acquire, or permit any Subsidiary of the Borrower
or ERISA Affiliate to acquire, an interest in any Person that causes such
Person to become an ERISA Affiliate with respect to the Borrower, any
Subsidiary of the Borrower or any ERISA Affiliate if such Person sponsors,
maintains or contributes to, or at any time in the six-year period preceding
such acquisition has sponsored, maintained, or contributed to, (1) any
Multiemployer Plan, or (2) any other Plan that is subject to Title IV
of ERISA under which the actuarial present value of the benefit liabilities
under such Plan exceeds the current value of the assets (computed on a plan
termination basis in accordance with Title IV of ERISA) of such Plan
allocable to such benefit liabilities;

(h)                                 Incur, or permit any Subsidiary of the Borrower
or ERISA Affiliate to incur, a liability to or on account of a Plan under
sections 515, 4062, 4063, 4064, 4201 or 4204 of ERISA;

(i)                                     Contribute to or
assume an obligation to contribute to, or permit any Subsidiary of the Borrower or ERISA Affiliate to contribute
to or assume an obligation to contribute to, any employee welfare benefit plan,
as defined in section 3(1) of ERISA, including, without limitation, any
such plan maintained to provide benefits to former employees of such entities,
that may not be terminated by such entities in their sole discretion at any
time without any material liability;

(j)                                     Amend or permit any Subsidiary of the Borrower or
ERISA Affiliate to amend, a Plan resulting in an increase in current liability
such that the Borrower, any Subsidiary of the Borrower or any ERISA
Affiliate is required to provide security to such Plan under section 401(a)(29) of the Code;

(k)                                  Permit
to exist any occurrence of a “Reportable Event” described in Section 4043 of
ERISA and the regulations thereunder;

(l)                                     Withdraw
(completely or partially) from any Multiemployer Plan to which the Borrower, any Subsidiary of the Borrower or any ERISA
Affiliate has contributed or had an obligation to contribute without the prior
written consent of the Agent; or

(m)                               Take any action which could have the effect of
materially increasing the liability of the Borrower, any Subsidiary of the
Borrower or any ERISA Affiliate under any Multiemployer Plan subject to Title
IV of ERISA if such Person should withdraw (completely or partially) from such Multiemployer Plan without the prior
written consent of the Agent.

 63
 

 

SECTION
9.11.  Sale or Discount of Receivables.

None of the Borrower, any
Guarantor or any Restricted Subsidiary will discount or sell (with or without
recourse) any of its notes receivable or accounts receivable.

SECTION
9.12.  Funded Debt Ratio.

The Borrower will not permit the Funded Debt Ratio as of the end of any
fiscal quarter to be greater than 4.75 to 1.00, provided,
however, that for a period of up to two consecutive quarters within
any twelve-month period commencing on the first day following two consecutive
quarters after the Closing Date in which the Funded Debt Ratio is no greater
than 4.75 to 1.00 (the “Required
Threshold”), the Funded Debt Ratio may exceed the
Required Threshold for such period (an “Increased
Funded Debt Ratio Period”) as a result of any acquisition
consummated during such Increased Funded Debt Ratio Period with an aggregate purchase
price in excess of $25,000,000, but shall in no event exceed 5.25 to 1.00
during such Increased Funded Debt Ratio Period; provided,
further, that no Increased Funded Debt Ratio Period shall occur
sooner than two consecutive quarters after the end of any other Increased
Funded Debt Ratio Period.

SECTION
9.13.  Reserved.

SECTION
9.14.  Sale of Properties.

The Borrower will not,
and will not cause or permit any Guarantor or any Restricted Subsidiary to
sell, assign, convey or otherwise transfer any Property or any interest in any
Property, unless such transfer (i) would be permitted pursuant to Section
9.08, or (ii) could not reasonably be expected to result in any material
reduction in the EBITDA of the Borrower and its Restricted Subsidiaries on a
consolidated basis.

SECTION
9.15.  Environmental Matters.

The Borrower shall not,
and shall not cause or permit any Guarantor or any Restricted Subsidiary to
cause or permit any of its Property to be in violation of, or do anything or
permit anything to be done which will subject any such Property to any remedial
obligations under any Environmental Laws, unless the failure to comply with the
foregoing would not have individually or in the aggregate a Material Adverse
Effect.  If necessary, the Borrower shall
timely disclose to the applicable Governmental Authority all relevant facts,
conditions and circumstances, if any, pertaining to such Property where such
violations or remedial obligations exist.

SECTION
9.16.  Transactions with Affiliates.

The Borrower will not,
and will not cause or permit any Guarantor or any Restricted Subsidiary to
enter into any transaction, including, without limitation, any purchase, sale,
lease or exchange of Property or the rendering of any service, with any
Affiliate unless such transactions (i) are otherwise permitted under this
Agreement, or (ii)  are in the ordinary
course of its business and are upon fair and reasonable terms no less favorable
to it than it would obtain

 64
 

 

in a comparable
arm’s length transaction with a Person not an Affiliate; provided,
however, that the foregoing shall not prohibit or prevent the
Borrower, any Guarantor or any Restricted Subsidiary from performing under any
agreement in effect on the date hereof.

SECTION
9.17.  Partnership Agreements.

Without the prior consent
of the Required Lenders, which shall not be unreasonably withheld, the Borrower
will not amend or permit to be amended in any material respect the Borrower
Partnership Agreement or the Buckeye Pipe Line Partnership Agreement.

SECTION
9.18.  Senior Notes.

Without the prior consent
of the Required Lenders, which shall not be unreasonably withheld, the Borrower
will not amend or permit to be amended in any material respect the Senior Notes
or the Indenture, except that the Borrower may issue additional indebtedness
under supplemental indentures issued under the Indenture if otherwise permitted
hereunder and thereunder.

SECTION
9.19.  Laurel Debt.

The Borrower will not
cause or permit Laurel Pipe Line to incur, create, assume or permit to exist any
Debt until Laurel Pipe Line shall have executed a Guaranty pursuant to Section
8.04.

Article X

Events of Default; Remedies

SECTION
10.01.  Events of Default.

The occurrence of one or
more of the following events shall constitute an “Event
of Default”:

(a)                                  the Borrower shall default in the payment or
prepayment when due of any principal of or interest on any Loan, or any
reimbursement obligation for a disbursement made under any Letter of Credit, or
any fees or other amount payable by it hereunder or under any other Loan
Document and such default, other than a default of a payment or prepayment of
principal (which shall have no cure period) shall continue unremedied for a
period of three Business Days; or

(b)                                 the Borrower or any Restricted Subsidiary shall default
in the payment when due of any principal of or interest on any of its other
Debt aggregating $25,000,000 or more, or any event specified in any note,
agreement, indenture or other document evidencing or relating to any such Debt
shall occur if the effect of such event (after the giving of notice or lapse of
time or both, if applicable) is to cause, or to permit the holder or holders of
such Debt (or a trustee or agent on behalf of such holder or holders) to
cause, such Debt to become due prior to its
stated maturity; or

 65
 

 

(c)                                  any representation, warranty or certification
made or deemed made herein or in any other Loan Document by the Borrower, any
Guarantor or any Person on behalf of any Restricted Subsidiary, or any
certificate furnished to any Lender or the Agent pursuant to the provisions
hereof or any other Loan Document, shall prove to have been false or misleading
as of the time made or furnished in any material respect; or

(d)                                 the Borrower or any Restricted Subsidiary
(despite the fact that such Restricted Subsidiary is not a party to this
Agreement) shall
default in the performance of any of its obligations under Article IX; or
the Borrower or any Restricted Subsidiary (despite the fact that such
Restricted Subsidiary is not a party to this Agreement) shall default in the
performance of any of its obligations under Article VIII,
any other Article of this Agreement (other than under Article IX) or
any other Loan Document (other than the payment of amounts due which shall be
governed by Section 10.01(a)) and such default shall continue unremedied
for a period of 30 days after the
earlier to occur of (i) notice thereof to the Borrower by the Agent or any
Lender (through the Agent), or (ii) a Responsible Officer otherwise
obtaining actual knowledge of such default; or

(e)                                  [Intentionally
Omitted]; or

(f)                                    the Borrower shall admit in writing its inability
to, or be generally unable to, pay its debts as such debts become due; or

(g)                                 the Borrower shall (i) apply for or consent
to the appointment of, or the taking of possession by, a receiver, custodian, trustee or liquidator of itself or
of all or a substantial part of its property, (ii) make a general
assignment of all or substantially all of its assets for the benefit of its
creditors, (iii) commence a voluntary case under the Federal Bankruptcy
Code (as now or hereafter in effect), (iv) file a petition seeking to take
advantage of any other law relating to bankruptcy, insolvency, reorganization,
winding-up, liquidation or composition or readjustment of debts, (v) fail
to controvert in a timely and appropriate manner, or acquiesce in writing to,
any petition filed against it in an involuntary case under the Federal
Bankruptcy Code, or (vi) take any corporate action for the purpose of effecting
any of the foregoing; or

(h)                                 a proceeding or case shall be commenced, without
the application or consent of the Borrower, in any court of competent
jurisdiction, seeking (i) its liquidation, reorganization, dissolution or
winding-up, or the composition or readjustment of its debts, (ii) the
appointment of a trustee, receiver, custodian, liquidator or the like of the
Borrower of all or any substantial part of its assets, or (iii) similar
relief in respect of the Borrower under any law relating to bankruptcy, insolvency,
reorganization, winding-up, or composition or adjustment of debts, and such
proceeding or case shall continue undismissed, or an order, judgment or decree
approving or ordering any of the foregoing shall be entered and continue
unstayed and in effect, for a period of 60 days; or (iv) an order for
relief against the Borrower shall be entered in an involuntary case under the
Federal Bankruptcy Code; or

(i)                                     a judgment or judgments for the payment of money
in excess of $25,000,000 in the aggregate
shall be rendered by a court against the Borrower or any Subsidiary of the
Borrower and the same shall not be discharged (or provision shall not be made
for such discharge), or a stay of execution thereof shall not be procured,
within 30 days from the date of

 66
 

 

entry thereof and the Borrower or
such Subsidiary shall not, within said period of 30 days, or such longer period
during which execution of the same shall have been stayed, appeal therefrom and
cause the execution thereof to be stayed during such appeal; or

(j)                                     any Guaranty after
delivery thereof shall for any reason, except to the extent permitted by the
terms thereof, cease to be in full force and effect and valid, binding and enforceable in accordance with its
terms, or the Borrower or any Guarantor shall so state in writing; or

(k)                                  a Change of Control shall occur; or

(l)                                     any Guarantor shall take, suffer or permit to
exist any of the events or conditions referred to in subsection (f), (g),
(h) or (i);

(m)                               any Restricted
Subsidiary shall take, suffer or permit to exist
any of the events or conditions referred to in subsection (f), (g), (h) or (i);

(n)                                 the failure of the General Partner to comply
in all material respects with any terms and provisions of its limited liability
company agreement regarding maintaining the separateness of the records, assets
and formalities of the General Partner from any other Person, or the amending,
supplementing or otherwise modifying (pursuant to a waiver or otherwise) any of
such separateness provisions in a manner materially adverse to the interests of
the Lenders without the prior written consent of the Required Lenders, which
shall not be unreasonably withheld, unless both (i) Carlyle/Riverstone BPL
Holdings II, L.P. or its successors no longer owns an interest in the General
Partner, and (ii) Borrower has obtained a Ratings Affirmation in connection
with any such amendment, supplement, modification or failure to comply; or

(o)                                 any
ERISA Event shall have occurred that could reasonably be expected to result in
a Material Adverse Effect, and 30 days after notice shall have been given to
the Borrower, such ERISA Event shall still exist.

SECTION
10.02.  Remedies.

(a)                                  In the case of an Event of Default other than one
referred to in subsection (f), (g) or (h) of Section 10.01 or in either of
subsection (l) or (m) to the extent it relates to subsection (f), (g) or (h),
the Agent, upon request of the Required Lenders, shall, by notice to the
Borrower, cancel the Revolving Credit Commitments and/or declare the principal
amount then outstanding of, and the accrued interest on, the Loans and all
other amounts payable by the Borrower hereunder (including without limitation
the payment of cash collateral to secure the LC Exposure as provided in
Section 2.09(b)) to be forthwith due and payable, whereupon such amounts
shall be immediately due and payable without presentment, demand, protest,
notice of intent to accelerate, notice of acceleration or other formalities of
any kind, all of which are hereby expressly waived by the Borrower.

(b)                                 In the case of the occurrence of an Event of
Default referred to in subsection (f), (g) or (h) of Section 10.01 or in
either of subsection (l) and (m) to the extent it relates to subsection (f),
(g) or (h), the Revolving Credit Commitments shall be automatically canceled
and the principal amount then outstanding of, and the accrued interest on, the
Loans and all other

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amounts payable by the Borrower
hereunder (including without limitation the payment of cash collateral to
secure the LC Exposure as provided in Section 2.09(b)) shall become
automatically immediately due and payable without presentment, demand, protest,
notice of intent to accelerate, notice of acceleration or other formalities of
any kind, all of which are hereby expressly waived by the Borrower.

(c)                                  All proceeds received after the Termination Date,
whether by acceleration or otherwise shall be applied first to reimbursement of
expenses and indemnities provided for in this Agreement and the other Loan
Documents; second to accrued interest hereunder; third to fees; fourth pro rata
to principal outstanding hereunder, other Debt hereunder and obligations under
any Hedging Agreements between the Borrower and any other Person that was a
Lender or an Affiliate of a Lender at the time such Hedging Agreement was executed;
fifth to serve as cash collateral to be held by the Agent to secure the LC
Exposure; and any excess shall be paid to the Borrower or as otherwise required
by any Governmental Requirement.

Article XI

The Agent

SECTION
11.01.  The Agent.

(a)                                  Appointment.  Each of the LC Issuing Bank and each Lender
appoints the Agent (including, without limitation, each successor Agent in
accordance with this Section 11.01) as its nominee and agent to act in its name
and on its behalf (and the Agent and each such successor accepts that
appointment):  (i) to act as its
nominee and on its behalf in and under all Loan Documents; (ii) to arrange
the means whereby its funds are to be made available to the Borrower under the
Loan Documents; (iii) to take any action that it properly requests under
the Loan Documents (subject to the concurrence of other Lenders as may be
required under the Loan Documents); (iv) to receive all documents and
items to be furnished to it under the Loan Documents; (v) to be the
secured party, mortgagee, beneficiary, recipient and similar party in respect
of the cash collateral under Section 2.09(b) and any other collateral for
the benefit of the Lenders and the LC Issuing Bank (at any time an Event of
Default or Default has occurred and is continuing); (vi) to promptly
distribute to it all material information, requests, documents and items
received from the Borrower, any of its Subsidiaries or any Restricted
Subsidiary under the Loan Documents; (vii) to promptly distribute to it
its ratable part of each payment or prepayment (whether voluntary, as proceeds
of collateral upon or after foreclosure, as proceeds of insurance thereon or
otherwise) in accordance with the terms of the Loan Documents; and
(viii) to deliver to the appropriate Persons requests, demands, approvals
and consents received from it.  The
Agent, however, may not be required to take any action that exposes it to
personal liability or that is contrary to any Loan Document or applicable
Governmental Requirement.  The Agent may
execute any of its duties hereunder or under the other Loan Documents by or
through agents or attorneys-in-fact and shall be entitled to advice of counsel
(including Borrower’s counsel) concerning all matters pertaining to such
duties.  The Agent shall not be responsible
to the Lenders for the negligence or misconduct of any agents or
attorneys-in-fact selected by it with reasonable care.

(b)                                 Successor.  The Agent may, subject (at any time no Event
of Default or Default has occurred and is continuing) to the Borrower’s prior
written consent that may not be

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unreasonably withheld, assign all of its
rights and obligations as the Agent under the Loan Documents to any of its
Affiliates, which Affiliate shall then be the successor Agent under the Loan
Documents.  The Agent may also, upon 30
days’ prior notice to the Borrower, voluntarily resign.  If the initial or any successor Agent ever
ceases to be a party to this Agreement or if the initial or any successor Agent
ever resigns, then the Required Lenders shall (which, if no Event of Default or
Default has occurred and is continuing, is subject to the Borrower’s approval
that may not be unreasonably withheld) appoint the successor Agent from among
the Lenders (other than the resigning Agent). 
If the Required Lenders fail to appoint a successor Agent within 30 days
after the resigning Agent has given notice of resignation, then the resigning
Agent may, on behalf of the Lenders, upon thirty (30) days prior notice to the
Borrower, appoint a successor Agent, subject (at any time no Event of Default
or Default has occurred and is continuing) to the Borrower’s prior written
consent that may not be unreasonably withheld, which must be a commercial bank
having a combined capital and surplus of at least $1,000,000,000 (as shown on its
most recently published statement of condition).  Upon its acceptance of appointment as
successor Agent, the successor Agent shall succeed to and become vested with
all of the rights of the prior Agent, and the prior Agent shall be discharged
from its duties and obligations as Agent under the Loan Documents, and each
Lender shall execute the documents that any Lender, the resigning Agent or the
successor Agent reasonably requests to reflect the change.  After any Agent’s resignation as the Agent
under the Loan Documents, the provisions of this section inure to its benefit
as to any actions taken or not taken by it while it was the Agent under the
Loan Documents.

(c)                                  Rights as Lender.  The Agent, in its capacity as a Lender, has
the same rights under the Loan Documents as any other Lender and may exercise
those rights as if it were not acting as the Agent.  The Agent’s resignation or removal does not
impair or otherwise affect any rights that it has or may have in its capacity
as an individual Lender.  Each Lender,
the LC Issuing Bank and the Borrower agree that the Agent is not a fiduciary
for the Lenders, the LC Issuing Bank or the Borrower but is simply acting in
the capacity described in this Agreement to alleviate administrative burdens
for the Borrower, the LC Issuing Bank and the Lenders, that the Agent has no
duties or responsibilities to the Lenders, the LC Issuing Bank or the Borrower
except those expressly set forth in the Loan Documents, and that the Agent in
its capacity as a Lender has the same rights as any other Lender.

(d)                                 Other Activities.  The Agent or any Lender may now or in the
future be engaged in one or more loan, letter of credit, leasing or other
financing transactions with the Borrower, act as trustee or depositary for the
Borrower or otherwise be engaged in other transactions with the Borrower
(collectively, the “other activities”) not the subject of the Loan
Documents.  Without limiting the rights
of the Lenders or the LC Issuing Bank specifically set forth in the Loan
Documents, neither the Agent, the LC Issuing Bank nor any Lender is responsible
to account to the other Lenders or the LC Issuing Bank for those other
activities, and neither any Lender nor the LC Issuing Bank shall have any
interest in any other Lender’s or the LC Issuing Bank’s activities, any present
or future guaranties by or for the account of the Borrower that are not
contemplated by or included in the Loan Documents, any present or future offset
exercised by the Agent, the LC Issuing Bank or any Lender in respect of those
other activities, any present or future property taken as security for any of
those other activities or any property now or hereafter in the Agent’s or any
other Lender’s possession or control that may be or become security for the
obligations of the Borrower arising under the Loan Documents by reason of the

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general description of indebtedness secured
or of property contained in any other agreements, documents or instruments
related to any of those other activities (but, if any payments in respect of
those guaranties or that property or the proceeds thereof is applied by the
Agent, the LC Issuing Bank or any Lender to reduce the obligations hereunder,
then each of the LC Issuing Bank and each Lender is entitled to share in the
application as provided in the Loan Documents).

SECTION
11.02.  Expenses.

Each Lender shall pay its
Percentage Share of any expenses (including court costs, reasonable attorneys’
fees and other costs of collection) incurred by the Agent or in connection with
any of the Loan Documents if the Agent is not reimbursed from other sources
within 30 days after incurrence.  Each
Lender is entitled to receive its Percentage Share of any reimbursement that it
makes to the Agent if the Agent is subsequently reimbursed from other sources.

SECTION
11.03.  Proportionate Absorption of
Losses.

Except as otherwise
provided in the Loan Documents, nothing in the Loan Documents gives any Lender
any advantage over any other Lender insofar as the obligations hereunder are
concerned or relieves any Lender from ratably absorbing any losses sustained
with respect to the obligations hereunder (except to the extent unilateral
actions or inactions by any Lender result in the Borrower or any other obligor
on the obligations hereunder having any credit, allowance, setoff, defense or
counterclaim solely with respect to all or any part of that Lender’s part of
the obligations hereunder).

SECTION
11.04.  Delegation of Duties; Reliance.

The Lenders may perform
any of their duties or exercise any of their rights under the Loan Documents by
or through the Agent, and the Lenders, the LC Issuing Bank and the Agent may
perform any of their duties or exercise any of their rights under the Loan
Documents by or through their respective representatives.  The Agent, the LC Issuing Bank, the Lenders
and their respective representatives (a) are entitled to rely upon (and
shall be protected in relying upon) any written or oral statement believed by
it or them to be genuine and correct and to have been signed or made by the
proper Person and, with respect to legal matters, upon opinion of counsel
selected by the Agent, the LC Issuing Bank or that Lender (but nothing in this
clause (a) permits the Agent to rely on (i) oral statements if a writing
is required by this Agreement or (ii) any other writing if a specific
writing is required by this Agreement), (b) are entitled to deem and treat
each Lender as the owner and holder of its portion of the Obligations hereunder
for all purposes until written notice of the assignment or transfer is given to
and received by the Agent (and any request, authorization, consent or approval
of any Lender is conclusive and binding on each subsequent holder, assignee or
transferee of or Participant in that Lender’s portion of the obligations
hereunder until that notice is given and received), (c) are not deemed to
have notice of the occurrence of any Default or Event of Default unless a
responsible officer of the Agent, who handles matters associated with the Loan
Documents and transactions thereunder, has actual knowledge or the Agent has
been notified by a Lender, the LC Issuing Bank or the Borrower, and (d) are
entitled to consult with legal counsel (including counsel for the Borrower),
independent accountants, and other experts selected by the Agent and are not
liable for any

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action taken or not taken in good faith by it
in accordance with the advice of counsel, accountants or experts.

SECTION
11.05.  Limitation of the Agent’s
Liability.

(a)                                  Exculpation.  Neither the Agent nor any of its Affiliates or
representatives will be liable to the LC Issuing Bank or any Lender for any
action taken or omitted to be taken by it or them under the Loan Documents in
good faith and believed by it to be within the discretion or power conferred
upon it or them by the Loan Documents or be responsible for the consequences of
any error of judgment (except for gross negligence or willful misconduct), and
neither the Agent nor any of its Affiliates or representatives has a fiduciary
relationship with any Lender or the LC Issuing Bank by virtue of the Loan
Documents (but nothing in this Agreement negates the obligation of the Agent to
account for funds received by it for the account of any Lender).

(b)                                 Indemnity.  Unless indemnified to its satisfaction
against loss, cost, liability and expense, the Agent may not be compelled to do
any act under the Loan Documents or to take any action toward the execution or
enforcement of the powers thereby created or to prosecute or defend any suit in
respect of the Loan Documents. If the Agent requests instructions from the
Lenders, the LC Issuing Bank or the Required Lenders, as the case may be, with
respect to any act or action in connection with any Loan Document, the Agent is
entitled to refrain (without incurring any liability to any Person by so
refraining) from that act or action unless and until it has received
instructions.  In no event, however, may
the Agent or any of its representatives be required to take any action that it
or they determine could incur for it or them criminal or onerous civil
liability.  Without limiting the
generality of the foregoing, neither the LC Issuing Bank nor any Lender has any
right of action against the Agent as a result of the Agent’s acting or
refraining from acting under this Agreement in accordance with instructions of
the Required Lenders.

(c)                                  Reliance.  The Agent is not responsible to the LC
Issuing Bank or any Lender, and each of the LC Issuing Bank and each Lender
represents and warrants that it has not relied upon the Agent in respect of,
(i) the creditworthiness of the Borrower or any Guarantor and the risks
involved to the LC Issuing Bank or such Lender, as the case may be,
(ii) the effectiveness, enforceability, genuineness, validity or the due
execution of any Loan Document, (iii) any representation, warranty,
document, certificate, report or statement made therein or furnished thereunder
or in connection therewith, (iv) the adequacy of any collateral now or
hereafter securing the obligations hereunder or the existence, priority or perfection
of any Lien now or hereafter granted or purported to be granted on the
collateral under any Loan Document, or (v) observation of or compliance with
any of the terms, covenants or conditions of any Loan Document on the part of
the General Partner, the Borrower or any Guarantor .  EACH LENDER AGREES TO INDEMNIFY THE AGENT AND
ITS REPRESENTATIVES WHEN ACTING ON BEHALF OF THE AGENT AND HOLD THEM HARMLESS
FROM AND AGAINST (BUT LIMITED TO SUCH LENDER’S PERCENTAGE SHARE OF) ANY AND ALL
LIABILITIES, OBLIGATIONS HEREUNDER, LOSSES, DAMAGES, PENALTIES, ACTIONS,
JUDGMENTS, SUITS, COSTS, REASONABLE EXPENSES AND REASONABLE DISBURSEMENTS OF
ANY KIND OR NATURE WHATSOEVER THAT MAY BE IMPOSED ON, ASSERTED AGAINST OR
INCURRED BY THEM IN ANY WAY RELATING TO OR ARISING OUT OF THE LOAN DOCUMENTS OR
ANY ACTION

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TAKEN OR OMITTED BY THEM UNDER THE LOAN
DOCUMENTS IF THE AGENT AND ITS REPRESENTATIVES ARE NOT REIMBURSED FOR SUCH
AMOUNTS BY THE BORROWER OR ANY GUARANTOR. 
ALTHOUGH THE AGENT AND ITS REPRESENTATIVES HAVE THE RIGHT TO BE INDEMNIFIED
UNDER THIS AGREEMENT BY THE LENDERS FOR ITS OR THEIR OWN ORDINARY NEGLIGENCE,
THE AGENT AND ITS REPRESENTATIVES DO NOT HAVE THE RIGHT TO BE INDEMNIFIED UNDER
THIS AGREEMENT FOR ITS OR THEIR OWN GROSS NEGLIGENCE OR WILLFUL MISCONDUCT.

SECTION
11.06.  Event of Default.

If an Event of Default
has occurred and is continuing, the Lenders agree to promptly confer in order
that the Required Lenders or the Lenders, as the case may be, may agree upon a
course of action for the enforcement of the rights of the Lenders
hereunder.  The Agent is entitled to act
or refrain from taking any action (without incurring any liability to any
Person for so acting or refraining) unless and until it has received
instructions from the Required Lenders. 
In actions with respect to any Company’s property, the Agent is acting
for the ratable benefit of each Lender.

SECTION
11.07.  Limitation of Liability.

No Lender will incur any
liability to any other Lender except for acts or omissions in bad faith, and
neither the Agent nor any Lender or Participant will incur any liability to any
other Person for any act or omission of any other Lender.

SECTION
11.08.  Other Agents.

SunTrust Capital Markets,
Inc. and Wachovia Capital Markets, LLC, in their specified capacities as “Joint
Lead Arrangers and Joint Bookrunners” and Wachovia Bank, National Association,
in its specified capacity as “Syndication Agent”, do not, in such capacities,
assume any responsibility or obligation under this Agreement for syndication,
documentation, servicing, enforcement or collection of any part of the
obligations hereunder, nor any other duties, as agent for the LC Issuing Bank
or the Lenders.  Bank of America, N.A.,
Citibank N.A. and JPMorgan Chase Bank, N.A., in their specified capacities as
Co-Documentation Agents, BNP Paribas, Deutsche Bank AG New York, The Royal Bank
of Scotland plc and The Bank of Toyko-Mitsubishi UFJ, Ltd, in their capacities
as Co-Managing Agents shall have no duties or obligations under any Loan
Documents to any Lender or any Loan Party.

SECTION
11.09.  Relationship of Lenders.

The Loan Documents do not
create a partnership or joint venture among the Agent, the LC Issuing Bank and
the Lenders or among the Lenders.

SECTION 11.10.  Benefits of Agreement.

None of the provisions of
this Article XI inures to the benefit of the Borrower or any Guarantor or any
other Person except the Agent, the LC Issuing Bank and the Lenders.  Therefore, neither the Borrower nor any
Guarantor nor any other Person is responsible or liable

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for, entitled to rely upon or entitled to
raise as a defense, in any manner whatsoever, the failure of the Agent, the LC
Issuing Bank or any Lender to comply with these provisions.

Article XII

Miscellaneous

SECTION 12.01.  Waiver.

No failure on the part of
the Agent or any Lender to exercise and no delay in exercising and no course of
dealing with respect to, any right, power or privilege under any of the Loan
Documents shall operate as a waiver thereof, nor shall any single or partial
exercise of any right, power or privilege under any of the Loan Documents
preclude any other or further exercise thereof or the exercise of any other
right, power or privilege.  The remedies
provided herein are cumulative and not exclusive of any remedies provided by
law.

SECTION 12.02.  Notices.

All notices and other
communications provided for herein and in the other Loan Documents (including,
without limitation, any modifications of, or waivers or consents under, this
Agreement or the other Loan Documents) shall be given or made by telex, telecopy,
courier or U.S. Mail or in writing and telexed, telecopied, mailed or delivered
to the intended recipient at the “Address for Notices” specified below its name
on the signature pages hereof or in the Loan Documents, except that for notices
and other communications to the Agent other than payment of money, the Borrower
need only send such notices and communications to the Agent care of the Atlanta
address of SunTrust; or, as to any party, at such other address as shall be
designated by such party in a notice to each other party.  Except as otherwise provided in this
Agreement or in the other Loan Documents, all such communications shall be
deemed to have been duly given when transmitted, if transmitted before 1:00
p.m. local time on a Business Day (otherwise on the next succeeding Business
Day) by telex or telecopier and evidence or confirmation of receipt is
obtained, or personally delivered or, in the case of a mailed notice, four
Business Days after the date deposited in the mails, postage prepaid, in each
case given or addressed as aforesaid.

SECTION 12.03.  Payment of Expenses, Indemnities, etc.

(a)                                  The Borrower agrees:

(i)                                     whether or not the transactions hereby
contemplated are consummated, to pay to the extent set forth in the Fee Letters
all reasonable expenses of the Agent in the administration (both before and
after the execution hereof and including advice of counsel as to the rights and
duties of the Agent and the Lenders with respect thereto) of, and in connection
with the negotiation, syndication, investigation, preparation, execution and
delivery of, recording or filing of, preservation of rights under, enforcement
of, and refinancing, renegotiation or restructuring of, the Loan Documents and
any amendment, waiver or consent relating thereto (including, without
limitation, travel, photocopy, mailing, courier, telephone and other similar
expenses of the Agent, the cost of environmental audits, surveys and appraisals
at reasonable intervals, the reasonable fees and disbursements of counsel and
other outside consultants for the Agent and, in the case of enforcement, the
reasonable fees and disbursements of counsel for the Agent and any

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of the Lenders); and promptly
reimburse the Agent for all amounts expended, advanced or incurred by the Agent
or the Lenders to satisfy any obligation of the Borrower or the Guarantors
under this Agreement or any other Loan Document, including without limitation,
all costs and expenses of foreclosure;

(ii)                                  TO INDEMNIFY THE AGENT AND EACH LENDER AND EACH
OF THEIR AFFILIATES AND EACH OF THEIR OFFICERS, DIRECTORS, EMPLOYEES,
REPRESENTATIVES, AGENTS, ATTORNEYS, ACCOUNTANTS AND EXPERTS (“INDEMNIFIED PARTIES”) FROM,
HOLD EACH OF THEM HARMLESS AGAINST AND PROMPTLY UPON DEMAND PAY OR REIMBURSE
EACH OF THEM FOR, THE INDEMNITY MATTERS WHICH MAY BE INCURRED BY OR ASSERTED
AGAINST OR INVOLVE ANY OF THEM (WHETHER OR NOT ANY OF THEM IS DESIGNATED A
PARTY THERETO) ASSERTED BY ANY THIRD PARTY OR BY THE BORROWER OR ANY
OTHER CREDIT PARTY AS A RESULT OF, ARISING
OUT OF OR IN ANY WAY RELATED TO (I) ANY ACTUAL OR PROPOSED USE BY THE
BORROWER OF THE PROCEEDS OF ANY OF THE LOANS OR LETTERS OF CREDIT,
(II) THE EXECUTION, DELIVERY AND PERFORMANCE OF THE LOAN DOCUMENTS BY THE
BORROWER, (III) THE OPERATIONS OF THE BUSINESS OF THE BORROWER, ANY
GUARANTOR AND THE RESTRICTED SUBSIDIARIES, (IV) THE FAILURE OF THE
BORROWER, ANY GUARANTOR OR ANY RESTRICTED SUBSIDIARY TO COMPLY WITH THE TERMS
OF ANY LOAN DOCUMENT, OR WITH ANY GOVERNMENTAL REQUIREMENT, (V) ANY
INACCURACY OF ANY REPRESENTATION OR ANY BREACH OF ANY WARRANTY OF THE BORROWER
OR THE GUARANTOR SET FORTH IN ANY OF THE LOAN DOCUMENTS, (VI) THE
ISSUANCE, EXECUTION AND DELIVERY OR TRANSFER OF OR PAYMENT OR FAILURE TO PAY
UNDER ANY LETTER OF CREDIT, OR (VII) THE PAYMENT OF A DRAWING UNDER ANY LETTER
OF CREDIT NOTWITHSTANDING THE NON-COMPLIANCE, NON-DELIVERY OR OTHER IMPROPER
PRESENTATION OF THE MANUALLY EXECUTED DRAFT(S) AND CERTIFICATION(S),
(VIII) ANY ASSERTION THAT THE LENDERS WERE NOT ENTITLED TO RECEIVE THE
PROCEEDS RECEIVED PURSUANT TO THE LOAN DOCUMENTS OR (IX) ANY OTHER ASPECT
OF THE LOAN DOCUMENTS, INCLUDING, WITHOUT LIMITATION, THE REASONABLE FEES AND
DISBURSEMENTS OF COUNSEL AND ALL OTHER EXPENSES INCURRED IN CONNECTION WITH
INVESTIGATING, DEFENDING OR PREPARING TO DEFEND ANY SUCH ACTION, SUIT,
PROCEEDING (INCLUDING ANY INVESTIGATIONS, LITIGATION OR INQUIRIES) OR CLAIM, WHETHER
BROUGHT BY A THIRD PARTY OR BY THE BORROWER OR ANY OTHER CREDIT PARTY, AND
REGARDLESS OF WHETHER ANY INDEMNIFIED PARTY IS A PARTY THERETO, AND INCLUDING ALL INDEMNITY MATTERS ARISING BY
REASON OF THE ORDINARY NEGLIGENCE OF ANY INDEMNIFIED PARTY, BUT EXCLUDING ALL
INDEMNITY MATTERS ARISING SOLELY BY REASON OF (1) CLAIMS BETWEEN THE LENDERS OR
ANY LENDER AND THE AGENT OR A LENDER’S SHAREHOLDERS AGAINST THE AGENT OR LENDER,
(2) THE GROSS NEGLIGENCE OR WILLFUL MISCONDUCT ON THE PART OF THE INDEMNIFIED
PARTY OR (3) CLAIMS

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BROUGHT BY THE BORROWER AGAINST
AN INDEMNIFIED PARTY FOR BREACH OF SUCH INDEMNIFIED PARTY’S OBLIGATIONS
HEREUNDER OR UNDER ANY OTHER LOAN DOCUMENT, IF THE BORROWER OR APPLICABLE LOAN
PARTY HAS OBTAINED A FINAL AND NONAPPEALABLE JUDGMENT IN ITS FAVOR ON SUCH
CLAIM AS DETERMINED BY A COURT OF COMPETENT JURISDICTION; AND

(iii)                               TO INDEMNIFY AND HOLD HARMLESS FROM TIME TO TIME
THE INDEMNIFIED PARTIES FROM AND AGAINST ANY AND ALL LOSSES, CLAIMS, COST
RECOVERY ACTIONS, ADMINISTRATIVE ORDERS OR PROCEEDINGS, DAMAGES AND LIABILITIES
TO WHICH ANY SUCH PERSON MAY BECOME SUBJECT (I) UNDER ANY ENVIRONMENTAL
LAW APPLICABLE TO THE BORROWER, ANY GUARANTOR OR ANY RESTRICTED SUBSIDIARY OR
ANY OF THEIR PROPERTIES, INCLUDING WITHOUT LIMITATION, THE TREATMENT OR
DISPOSAL OF HAZARDOUS SUBSTANCES OR HAZARDOUS WASTES ON ANY OF SUCH PROPERTIES,
(II) AS A RESULT OF THE BREACH OR NON-COMPLIANCE BY THE BORROWER OR ANY
RESTRICTED SUBSIDIARY WITH ANY ENVIRONMENTAL LAW APPLICABLE TO THE BORROWER,
ANY GUARANTOR OR ANY RESTRICTED SUBSIDIARY, (III) DUE TO PAST OWNERSHIP BY
THE BORROWER, ANY GUARANTOR OR ANY RESTRICTED SUBSIDIARY OF ANY OF THEIR
PROPERTIES OR PAST ACTIVITY ON ANY OF THEIR PROPERTIES WHICH, THOUGH LAWFUL AND
FULLY PERMISSIBLE AT THE TIME, COULD RESULT IN PRESENT LIABILITY, (IV) THE
PRESENCE, USE, RELEASE, STORAGE, TREATMENT OR DISPOSAL OF HAZARDOUS SUBSTANCES
OR HAZARDOUS WASTES ON OR AT ANY OF THE PROPERTIES OWNED OR OPERATED BY THE
BORROWER, ANY GUARANTOR OR ANY RESTRICTED SUBSIDIARY, OR (V) ANY OTHER
ENVIRONMENTAL, HEALTH OR SAFETY CONDITION IN CONNECTION WITH THE LOAN
DOCUMENTS.

(b)                                 No Indemnified Party may settle any claim to be
indemnified without the consent of the indemnitor, such consent not to be
unreasonably withheld; provided, that
the indemnitor may not unreasonably withhold consent to any settlement that an
Indemnified Party proposes, if the indemnitor does not have the financial
ability to pay all its obligations outstanding and asserted against the
indemnitor at that time, including the maximum potential claims against the
Indemnified Party to be indemnified pursuant to this Section 12.03.

(c)                                  In
the case of any indemnification hereunder, the Agent or Lender, as appropriate
shall give notice to the Borrower of any such claim or demand being made
against the Indemnified Party and the Borrower shall have the non-exclusive
right to join in the defense against any such claim or demand provided that if the Borrower provides a defense, the
Indemnified Party shall bear its own cost of defense unless there is a conflict
between the Borrower and such Indemnified Party.

(d)                                 THE FOREGOING INDEMNITIES SHALL EXTEND TO THE
INDEMNIFIED PARTIES NOTWITHSTANDING THE SOLE OR CONCURRENT NEGLIGENCE OF EVERY
KIND OR CHARACTER WHATSOEVER, WHETHER ACTIVE OR PASSIVE,

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WHETHER AN AFFIRMATIVE ACT OR AN
OMISSION, INCLUDING WITHOUT LIMITATION, ALL TYPES OF NEGLIGENT CONDUCT
IDENTIFIED IN THE RESTATEMENT (SECOND) OF TORTS OF ONE OR MORE OF THE INDEMNIFIED
PARTIES OR BY REASON OF STRICT LIABILITY IMPOSED WITHOUT FAULT ON ANY ONE OR
MORE OF THE INDEMNIFIED PARTIES.  TO THE
EXTENT THAT AN INDEMNIFIED PARTY IS FOUND TO HAVE COMMITTED AN ACT OF GROSS
NEGLIGENCE OR WILLFUL MISCONDUCT, THIS CONTRACTUAL OBLIGATION OF
INDEMNIFICATION SHALL CONTINUE BUT SHALL ONLY EXTEND TO THE PORTION OF THE
CLAIM THAT IS DEEMED TO HAVE OCCURRED BY REASON OF EVENTS OTHER THAN THE GROSS
NEGLIGENCE OR WILLFUL MISCONDUCT OF THE INDEMNIFIED PARTY.

(e)                                  The Borrower’s obligations under this
Section 12.03 shall survive any termination of this Agreement and the
payment of all amounts outstanding hereunder and shall continue thereafter in
full force and effect.

(f)                                    The Borrower shall pay any amounts due under this
Section 12.03 within 30 days of the receipt by the Borrower of notice of
the amount due.

SECTION 12.04.  Amendments, Etc.

Any provision of this
Agreement or any other Loan Document may be amended, modified or waived with
the Borrower’s and the Required Lenders’ prior written consent; provided that (i) no amendment, modification or waiver
that extends the final maturity of the Loans (other than pursuant to Section
2.11), postpones any date fixed for any payment of principal of, or interest
on, the Loans or any fees or other amounts payable hereunder, increases the
Aggregate Revolving Credit Commitments (other than pursuant to Section
2.03(c)), forgives the principal amount of any Debt outstanding under this
Agreement, releases any Guarantor of its obligations under the Guaranty,
reduces the interest rate applicable to the Loans or the fees payable to the
Lenders generally, affects this Section 12.04 or Section 12.06(a) or
modifies the definition of “Required Lenders” shall be effective without
consent of all Lenders; (ii) no amendment, modification or waiver that modifies
Section 4.02 in a manner that would alter the pro rata sharing of payments
required thereby, shall be effective without the consent of each affected
Lender; (iii) no amendment, modification or waiver which increases the
Revolving Credit Commitment of any Lender shall be effective without the
consent of such Lender; and (iv) no amendment, modification or waiver
which modifies the rights, duties or obligations of the Agent shall be
effective without the consent of the Agent; provided, further,
that this Agreement may be amended and restated without the consent of any
Lender or the Agent if, upon giving effect to such amendment and restatement,
such Lender or the Agent, as the case may be, shall no longer be a party to
this Agreement (as so amended and restated) or have any Revolving Credit
Commitment or other obligation hereunder and shall have been paid in full all
amounts payable hereunder to such Lender or the Agent, as the case may be.

SECTION 12.05.  Successors and Assigns.

This Agreement shall be
binding upon and inure to the benefit of the parties hereto and their
respective successors and permitted assigns.

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SECTION 12.06.  Assignments and Participations.

(a)                                  The Borrower may not assign its rights or
obligations hereunder or under any Letters of Credit without the prior consent
of all of the Lenders and the Agent.

(b)                                 Any Lender may upon the written consent of the
Agent and the Issuing Bank (which consent will not be unreasonably withheld)
and, if no Event of Default has occurred and is continuing, the Borrower (which
consent will not be unreasonably withheld), assign to one or more assignees all
or a portion of its rights and obligations under this Agreement pursuant to an Assignment Agreement substantially
in the form of Exhibit C (an “Assignment
Agreement”); provided, however,
that (i) any such assignment shall be in the amount of at least
$5,000,000 (or if less, the total amount of such Lender’s Revolving Credit
Commitment) or such lesser amount to which the Borrower has consented, (ii) the assignee or assignor shall pay to
the Agent a processing and recordation fee of $3,500 for each assignment and
(iii) any assignment to a Lender or an Affiliate of a Lender will not
require the consent of the Agent or the Borrower.  Any such assignment will become effective
upon the execution and delivery to the Agent of the Assignment Agreement and
the consent of the Agent and the Borrower, if required.  Promptly after receipt of an executed
Assignment Agreement, the Agent shall send to the Borrower a copy of such
executed Assignment Agreement.  Upon the
effectiveness of any assignment pursuant to this Section 12.06(b),
the assignee will become a “Lender,” if not already a “Lender,” for all purposes of this Agreement and the other Loan
Documents.  The assignor shall be relieved
of its obligations hereunder to the extent of such assignment (and if the
assigning Lender no longer holds any rights
or obligations under this Agreement, such assigning Lender shall cease to be a “Lender”
hereunder except that its rights under Sections 4.06, 5.01, 5.05 and 12.03
shall not be affected).  The Agent will prepare on the last Business
Day of each month during which an assignment has become effective pursuant to
this Section 12.06(b), a new Annex I giving effect to all such assignments
effected during such month, and will promptly provide the same to the Borrower
and each of the Lenders.

(c)                                  Each Lender may transfer, grant or assign
participations in all or any part of such Lender’s interests hereunder pursuant
to this Section 12.06(c) to any Person, provided
that: (i) such Lender shall remain a “Lender” for all purposes of this Agreement and the
transferee of such participation shall not constitute a “Lender” hereunder; and (ii) no participant under any
such participation shall have rights to approve any amendment to or waiver of
any of the Loan Documents except to the extent such amendment or waiver would
(x) forgive any principal owing on any Debt hereunder or extend the final
maturity of the Loans, (y) reduce the interest rate (other than as a
result of waiving the applicability of any post-default increases in interest
rates) or fees applicable to any of the Revolving Credit Commitments or Loans
or Letters of Credit in which such participant is participating, or postpone
the payment of any thereof, or (z) release any guarantor of its
obligations under its Guaranty or release all or substantially all of the
collateral (except as provided in the Loan Documents) supporting any of the
Revolving Credit Commitments or Loans or Letters of Credit in which such
participant is participating.  In the
case of any such participation, the participant shall not have any rights under
this Agreement or any of the other Loan Documents (the participant’s rights
against the granting Lender in respect of such participation to be those set
forth in the agreement with such Lender creating such participation), and all
amounts payable by the Borrower hereunder shall be determined as if such Lender
had not sold such participation, provided that
such participant shall be entitled

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to receive additional amounts
under Article V on the same basis as if it were a Lender and be
indemnified under Section 12.03 as if it were a Lender.  In addition, each agreement creating any
participation must include an agreement by the participant to be bound by the
provisions of Section 12.15.

(d)                                 The Lenders may furnish any information concerning
the Borrower and the Restricted Subsidiaries in the possession of the Lenders
from time to time to assignees and participants (including prospective
assignees and participants); provided that,
such Persons agree to be bound by the provisions of Section 12.15.

(e)                                  Notwithstanding
anything to the contrary contained herein, any Lender (a “Granting Lender”) may grant
to a special purpose funding vehicle (an “SPC”) of such Granting Lender identified as such in
writing from time to time by the Granting Lender to the Agent and the Borrower,
the option to provide to the Borrower all or any part of any Loan that such
Granting Lender would otherwise be obligated to make to the Borrower pursuant
to this Agreement; provided that
(i) nothing herein shall constitute a commitment by any such SPC to make any
Loan, (ii) if such SPC elects not to exercise such option or otherwise fails to
provide all or any part of such Loan, the Granting Lender shall be obligated to
make such Loan pursuant to the terms hereof and (iii) no SPC or Granting Lender
shall be entitled to receive any greater amount pursuant to Article V than
the Granting Lender would have been entitled to receive had the Granting Lender
not otherwise granted such SPC the option to provide any Loan to the Borrower.  The making of a Loan by an SPC hereunder
shall utilize the Revolving Credit Commitment of the Granting Lender to the
same extent, and as if, such Loan were made by such Granting Lender.  Each party hereto hereby agrees that no SPC
shall be liable for any indemnity or similar payment obligation under this
Agreement for which a Lender would otherwise be liable so long as, and to the
extent that, the related Granting Lender provides such indemnity or makes such
payment.  In furtherance of the
foregoing, each party hereto hereby agrees (which agreement shall survive the
termination of this Agreement) that, prior to the date that is one year and one
day after the payment in full of all outstanding commercial paper or other
senior indebtedness of any SPC, it will not institute against or join any other
person in instituting against such SPC any bankruptcy, reorganization,
arrangement, insolvency or liquidation proceedings under the laws of the United
States or any State thereof. 
Notwithstanding the foregoing, the Granting Lender unconditionally
agrees to indemnify the Borrower, the Agent and each Lender against all
liabilities, obligations, losses, damages, penalties, actions, judgments,
suits, costs, expenses or disbursements of any kind or nature whatsoever which
may be incurred by or asserted against the Borrower, the Agent or such Lender,
as the case may be, in any way relating to or arising as a consequence of any
such forbearance or delay in the initiation of any such proceeding against its
SPC.  Each party hereto hereby
acknowledges and agrees that no SPC shall have the rights of a Lender
hereunder, such rights being retained by the applicable Granting Lender.  Accordingly, and without limiting the
foregoing, each party hereby further acknowledges and agrees that no SPC shall
have any voting rights hereunder and that the voting rights attributable to any
Loan made by an SPC shall be exercised only by the relevant Granting Lender and
that each Granting Lender shall serve as the administrative agent and attorney-in-fact
for its SPC and shall on behalf of its SPC receive any and all payments made
for the benefit of such SPC and take all actions hereunder to the extent, if
any, such SPC shall have any rights hereunder. 
In addition, notwithstanding anything to the contrary contained in this
Agreement any SPC may (i) with notice to, but without the prior written consent
of any other party hereto,

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assign all or a portion of its interest in
any Loans to the Granting Lender and (ii) disclose on a confidential basis any
information relating to its Loans to any rating agency, commercial paper dealer
or provider of any surety, guarantee or credit or liquidity enhancement to such
SPC.  This Section may not be amended
without the prior written consent of each Granting Lender, all or any part of
whose Loan is being funded by an SPC at the time of such amendment.

(f)                                    Notwithstanding anything in this
Section 12.06 to the contrary, any Lender may assign and pledge its note
issued pursuant to Section 2.06 to any Federal Reserve Bank. No such
assignment and/or pledge shall release the assigning and/or pledging Lender
from its obligations hereunder.

(g)                                 Notwithstanding any other provisions of this
Section 12.06, no transfer or assignment of the interests or obligations
of any Lender or any grant of participations therein shall be permitted if such
transfer, assignment or grant would require the Borrower to file a registration
statement with the SEC or to qualify the Loans under the “Blue Sky” laws of any state.

SECTION 12.07.  Invalidity.

In the event that any one
or more of the provisions contained in any of the Loan Documents, the Letters
of Credit, or the Letter of Credit Agreements shall, for any reason, be held
invalid, illegal or unenforceable in any respect, such invalidity, illegality
or unenforceability shall not affect any other provision of this Agreement or
any other Loan Document.

SECTION 12.08.  Counterparts.

This Agreement may be
executed in any number of counterparts, all of which taken together shall
constitute one and the same instrument and any of the parties hereto may
execute this Agreement by signing any such counterpart.

SECTION 12.09.  References.

The words “herein”, “hereof”,
“hereunder” and other words of similar import when used in this Agreement refer
to this Agreement as a whole, and not to any particular Article,
Section or Subsection.  Any
reference herein to a Section shall be deemed to refer to the applicable
Section of this Agreement unless otherwise stated herein.  Any reference herein to an Exhibit or
Schedule shall be deemed to refer to the applicable Exhibit or Schedule
attached hereto unless otherwise stated herein.

SECTION
12.10.  Survival.

The obligations of the
parties under Section 4.06, Article V, and Sections 11.05 and
12.03 shall survive the repayment of the Loans and the termination of the
Revolving Credit Commitments.  To the
extent that any payments on the Debt hereunder or proceeds of any collateral
are subsequently invalidated, declared to be fraudulent or preferential, set
aside or required to be repaid to a trustee, debtor in possession, receiver or
other Person under any bankruptcy law, common law or equitable cause, then to
such extent, the Debt so satisfied shall be revived and continue as if such
payment or proceeds had not been received and the Agent’s

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and the Lenders’
rights, powers and remedies under this Agreement and each other Loan Document
shall continue in full force and effect. 
In such event, each Loan Document shall be automatically reinstated and
the Borrower shall take such action as may be reasonably requested by the Agent
and the Lenders to effect such reinstatement.

SECTION
12.11.  Captions.

Captions and
Section headings appearing herein are included solely for convenience of
reference and are not intended to affect the interpretation of any provision of
this Agreement.

SECTION
12.12.  NO ORAL AGREEMENTS.

THE LOAN DOCUMENTS EMBODY
THE ENTIRE AGREEMENT AND UNDERSTANDING BETWEEN THE PARTIES AND SUPERSEDE ALL
OTHER AGREEMENTS AND UNDERSTANDINGS BETWEEN SUCH PARTIES RELATING TO THE
SUBJECT MATTER HEREOF AND THEREOF.  THE
LOAN DOCUMENTS REPRESENT THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE
CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL
AGREEMENTS OF THE PARTIES.  THERE ARE NO
UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.

SECTION
12.13.  GOVERNING LAW; SUBMISSION TO
JURISDICTION.

(a)                                  THIS AGREEMENT (INCLUDING, BUT NOT LIMITED TO,
THE VALIDITY AND ENFORCEABILITY HEREOF AND THEREOF) SHALL BE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK, OTHER THAN THE
CONFLICT OF LAWS RULES THEREOF.

(b)                                 ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO
THE LOAN DOCUMENTS SHALL BE BROUGHT IN THE COURTS OF THE STATE OF NEW YORK OR
OF THE UNITED STATES OF AMERICA FOR THE SOUTHERN DISTRICT OF NEW YORK, AND, BY
EXECUTION AND DELIVERY OF THIS AGREEMENT, EACH OF THE BORROWER, THE AGENT, THE
GENERAL PARTNER AND EACH LENDER HEREBY ACCEPTS FOR ITSELF AND (TO THE EXTENT
PERMITTED BY LAW) IN RESPECT OF ITS PROPERTY, GENERALLY AND UNCONDITIONALLY,
THE JURISDICTION OF THE
AFORESAID COURTS.  EACH OF THE BORROWER,
THE AGENT, THE GENERAL PARTNER AND EACH LENDER HEREBY IRREVOCABLY WAIVES ANY
OBJECTION, INCLUDING, WITHOUT LIMITATION, ANY OBJECTION TO THE LAYING OF VENUE
OR BASED ON THE GROUNDS OF FORUM NON CONVENIENS, WHICH IT MAY NOW OR HEREAFTER
HAVE TO THE BRINGING OF ANY SUCH ACTION OR PROCEEDING IN SUCH RESPECTIVE
JURISDICTIONS.  THIS SUBMISSION TO
JURISDICTION BY THE BORROWER IS EXCLUSIVE AND DOES NOT PRECLUDE THE PARTIES
FROM OBTAINING JURISDICTION OVER OTHER PARTIES IN ANY COURT OTHERWISE HAVING
JURISDICTION.

(c)                                  THE BORROWER AND THE GENERAL PARTNER HEREBY
IRREVOCABLY DESIGNATE CT CORPORATION LOCATED AT 111 EIGHTH AVENUE, NEW YORK,
NEW YORK 10011, AS THE DESIGNEE, APPOINTEE AND AGENT OF

 80
 

 

ITSELF TO RECEIVE, FOR AND ON
BEHALF OF ITSELF, SERVICE OF PROCESS IN SUCH RESPECTIVE JURISDICTIONS IN ANY
LEGAL ACTION OR PROCEEDING WITH RESPECT TO THE LOAN DOCUMENTS.  IT IS UNDERSTOOD THAT A COPY OF SUCH PROCESS
SERVED ON SUCH AGENT WILL BE PROMPTLY FORWARDED BY OVERNIGHT COURIER TO THE
BORROWER AT ITS ADDRESS SET FORTH UNDER ITS SIGNATURE BELOW, BUT THE FAILURE OF
ANY OF THE BORROWER OR THE GENERAL PARTNER TO RECEIVE SUCH COPY SHALL NOT
AFFECT IN ANY WAY THE SERVICE OF SUCH PROCESS. 
THE BORROWER AND THE GENERAL PARTNER FURTHER IRREVOCABLY CONSENT TO THE
SERVICE OF PROCESS OF ANY OF THE AFOREMENTIONED COURTS IN ANY SUCH ACTION OR
PROCEEDING BY THE MAILING OF COPIES THEREOF BY REGISTERED OR CERTIFIED MAIL,
POSTAGE PREPAID, TO IT AT ITS SAID ADDRESS, SUCH SERVICE TO BECOME EFFECTIVE
THIRTY (30) DAYS AFTER SUCH MAILING.

(d)                                 NOTHING HEREIN SHALL AFFECT THE RIGHT OF THE
AGENT OR ANY LENDER TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR TO
COMMENCE LEGAL PROCEEDINGS OR OTHERWISE PROCEED AGAINST THE BORROWER OR ANY
GUARANTOR IN ANY OTHER JURISDICTION.

(e)                                  THE BORROWER, THE GENERAL PARTNER, THE AGENT AND
EACH LENDER HEREBY (i) IRREVOCABLY AND UNCONDITIONALLY WAIVE, TO THE
FULLEST EXTENT PERMITTED BY LAW, TRIAL BY JURY IN ANY LEGAL ACTION OR
PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT AND FOR ANY
COUNTERCLAIM THEREIN; (ii) IRREVOCABLY WAIVE, TO THE MAXIMUM EXTENT NOT
PROHIBITED BY LAW, ANY RIGHT IT MAY HAVE TO CLAIM OR RECOVER IN ANY SUCH
LITIGATION ANY SPECIAL, EXEMPLARY, PUNITIVE OR CONSEQUENTIAL DAMAGES, OR
DAMAGES OTHER THAN, OR IN ADDITION TO, ACTUAL DAMAGES; (iii) CERTIFY THAT
NO PARTY HERETO NOR ANY REPRESENTATIVE OR AGENT OF COUNSEL FOR ANY PARTY HERETO
HAS REPRESENTED, EXPRESSLY OR OTHERWISE, OR IMPLIED THAT SUCH PARTY WOULD NOT, IN
THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVERS, AND
(iv) ACKNOWLEDGE THAT IT HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT,
THE OTHER LOAN DOCUMENTS AND THE TRANSACTIONS CONTEMPLATED HEREBY AND THEREBY
BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS CONTAINED IN THIS
SECTION 12.13.

SECTION
12.14.  Interest.

It is the intention of
the parties hereto that each Lender shall conform strictly to usury laws
applicable to it.  Accordingly, if the
transactions contemplated hereby would be usurious as to any Lender under laws
applicable to it (including the laws of the United States of America and the
State of New York or any other jurisdiction whose laws may be mandatorily
applicable to such Lender notwithstanding the other provisions of this
Agreement), then, in that event, notwithstanding anything to the contrary in
any of the Loan Documents or any agreement entered into in connection with or
as security for the Loans, it is agreed as follows: (i) the aggregate of
all consideration which constitutes interest under law applicable to any Lender
that is contracted for, taken, reserved, charged or received by such Lender
under any of the Loan

 81
 

 

Documents or agreements or otherwise in
connection with the Loans shall under no circumstances exceed the maximum
amount allowed by such applicable law, and any excess shall be canceled
automatically and if theretofore paid shall be credited by such Lender on the
principal amount of the Debt (or, to the extent that the principal amount of
the Debt shall have been or would thereby be paid in full, refunded by such
Lender to the Borrower); and (ii) in the event that the maturity of the
Loans is accelerated by reason of an election of the holder thereof resulting
from any Event of Default under this Agreement or otherwise, or in the event of
any required or permitted prepayment, then such consideration that constitutes
interest under law applicable to any Lender may never include more than the
maximum amount allowed by such applicable law, and excess interest, if any,
provided for in this Agreement or otherwise shall be canceled automatically by
such Lender as of the date of such acceleration or prepayment and, if
theretofore paid, shall be credited by such Lender on the principal amount of
the Debt (or, to the extent that the principal amount of the Debt shall have
been or would thereby be paid in full, refunded by such Lender to the
Borrower).  All sums paid or agreed to be
paid to any Lender for the use, forbearance or detention of sums due hereunder
shall, to the extent permitted by law applicable to such Lender, be amortized,
prorated, allocated and spread throughout the full term of the Loans until
payment in full so that the rate or amount of interest on account of any Loans
hereunder does not exceed the maximum amount allowed by such applicable
law.  If at any time and from time to
time (i) the amount of interest payable to any Lender on any date shall be
computed at the Highest Lawful Rate applicable to such Lender pursuant to this
Section 12.14 and (ii) in respect of any subsequent interest
computation period the amount of interest otherwise payable to such Lender
would be less than the amount of interest payable to such Lender computed at
the Highest Lawful Rate applicable to such Lender, then the amount of interest
payable to such Lender in respect of such subsequent interest computation
period shall continue to be computed at the Highest Lawful Rate applicable to
such Lender until the total amount of interest payable to such Lender shall
equal the total amount of interest which would have been payable to such Lender
if the total amount of interest had been computed without giving effect to this
Section 12.14.

SECTION
12.15.  Confidentiality.

In the event that the
Borrower, the General Partner or any Guarantor provides to the Agent or the
Lenders written confidential information belonging to the Borrower, the General
Partner or such Guarantor, if the Borrower, the General Partner or such
Guarantor shall denominate such information in writing as “confidential”, the
Agent and the Lenders shall thereafter maintain such information in confidence
in accordance with the standards of care and diligence that each utilizes in
maintaining its own confidential information. 
This obligation of confidence shall not apply to such portions of the
information which (i) are in the public domain, (ii) hereafter become
part of the public domain without the Agent or the Lenders breaching their
obligation of confidence to the Borrower, the General Partner and such Guarantor,
(iii) are previously known by the Agent or the Lenders from some source
other than the Borrower, the General Partner or such Guarantor, (iv) are
hereafter developed by the Agent or the Lenders without using the Borrower’s,
the General Partner’s or such Guarantor’s information, (v) are hereafter
obtained by or available to the Agent or the Lenders from a third party who
owes no obligation of confidence to the Borrower, the General Partner or such
Guarantor with respect to such information or through any other means other
than through disclosure by the Borrower the General Partner or such Guarantor,
(vi) are disclosed with the Borrower’s, the General Partner’s

 82
 

 

or such Guarantor’s consent, (vii) must
be disclosed either pursuant to any Governmental Requirement or to Persons
regulating the activities of the Agent, the Lenders or their Affiliates,
(viii) as may be required by law or regulation or order of any
Governmental Authority in any judicial, arbitration or governmental proceeding
or to any Affiliate of the Agent or any Lender on a confidential and need to
know basis and (ix) as disclosed in connection with any litigation related to
this Agreement to which the Agent or any Lender is a party.  Further, except where prohibited by
applicable law, the Agent or a Lender may disclose any such information to any
other Lender, any independent petroleum engineers or consultants, any
independent certified public accountants, any legal counsel employed by such
Person in connection with this Agreement or any other Loan Document, including
without limitation, the enforcement or exercise of all rights and remedies
thereunder, or any assignee or participant (including prospective assignees and
participants) in the Loans, or any actual or proposed contractual counterparty (or
its advisors) to any securitization, hedging or other derivative transaction
relating to the parties’ obligations hereunder; provided,
however, that the Agent or the Lenders shall receive a
confidentiality agreement from the Person to whom such information is disclosed
such that said Person shall have the same obligation to maintain the
confidentiality of such information as is imposed upon the Agent or the Lenders
hereunder.  Notwithstanding anything to
the contrary provided herein, this obligation of confidence shall cease three
years from the date the information was furnished, unless the Borrower, the
General Partner and the Guarantors request in writing at least 30 days prior to
the expiration of such three year period, to maintain the confidentiality of
such information for an additional three year period.  Each of the Borrower, the General Partner and
the Guarantors waives any and all other rights it may have to confidentiality
as against the Agent and the Lenders arising by contract, agreement, statute or
law except as expressly stated in this Section 12.15.

SECTION
12.16.  EXCULPATION PROVISIONS.

EACH OF THE PARTIES
HERETO SPECIFICALLY AGREES THAT IT HAS A DUTY TO READ THIS AGREEMENT AND THE
OTHER LOAN DOCUMENTS AND AGREES THAT IT IS CHARGED WITH NOTICE AND KNOWLEDGE OF
THE TERMS OF THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS; THAT IT HAS IN FACT
READ THIS AGREEMENT AND IS FULLY INFORMED AND HAS FULL NOTICE AND KNOWLEDGE OF
THE TERMS, CONDITIONS AND EFFECTS OF THIS AGREEMENT; THAT IT HAS BEEN REPRESENTED
BY INDEPENDENT LEGAL COUNSEL OF ITS CHOICE THROUGHOUT THE NEGOTIATIONS
PRECEDING ITS EXECUTION OF THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS; AND HAS
RECEIVED THE ADVICE OF ITS ATTORNEY IN ENTERING INTO THIS AGREEMENT AND THE
OTHER LOAN DOCUMENTS; AND THAT IT RECOGNIZES THAT CERTAIN OF THE TERMS OF THIS
AGREEMENT AND THE OTHER LOAN DOCUMENTS RESULT IN ONE PARTY ASSUMING THE
LIABILITY INHERENT IN SOME ASPECTS OF THE TRANSACTION AND RELIEVING THE OTHER
PARTY OF ITS RESPONSIBILITY FOR SUCH LIABILITY. 
EACH PARTY HERETO AGREES AND COVENANTS THAT IT WILL NOT CONTEST THE
VALIDITY OR ENFORCEABILITY OF ANY EXCULPATORY PROVISION OF THIS AGREEMENT AND
THE OTHER LOAN DOCUMENTS ON THE BASIS THAT THE PARTY HAD NO NOTICE OR KNOWLEDGE
OF SUCH PROVISION.

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SECTION
12.17.  Separateness.

The Lenders acknowledge
that (i) the Lenders have advanced funds to the Borrower in reliance upon the
separateness of the Borrower and the General Partner from each other and of the
Borrower and the General Partner from any other Persons, including
Carlyle/Riverstone BPL Holdings II, L.P., and (ii) the Borrower has assets and
liabilities that are separate from those of other Persons, including Buckeye GP
Holdings L.P. and the General Partner.

SECTION
12.18.  Patriot Act.

The
Administrative Agent and each Lender hereby notifies the Loan Parties that
pursuant to the requirements of the USA PATRIOT Act (Title III of Pub. L.
107-56 (signed into law October 26, 2001)) (the “Patriot Act”), it is required
to obtain, verify and record information that identifies each Loan Party, which
information includes the name and address of such Loan Party and other
information that will allow such Lender or the Administrative Agent, as
applicable, to identify such Loan Party in accordance with the Patriot Act.  Each Loan Party shall, and shall cause each
of its Subsidiaries to, provide to the extent commercially reasonable, such
information and take such other actions as are reasonably requested by the
Administrative Agent or any Lender in order to assist the Administrative Agent
and the Lenders in maintaining compliance with the Patriot Act.

SECTION
12.19.  Location of Closing.

Each Lender acknowledges
and agrees that it has delivered, with the intent to be bound, its executed
counterparts of this Agreement to Agent, c/o King & Spalding LLP, 1185
Avenue of the Americas, New York, New York 10036.  Borrower acknowledges and agrees that it has
delivered, with the intent to be bound, its executed counterparts of this Agreement
and each other Loan Document, together with all other documents, instruments,
opinions, certificates and other items required under Section 3.1, to
Agent, c/o King & Spalding LLP, 1185 Avenue of the Americas, New York, New
York 10036.  All parties agree that
closing of the transactions contemplated by this Credit Agreement shall be
deemed to have occurred in New York.

[Signatures Begin on Next Page]

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The parties hereto have caused this Agreement to be
duly executed as of the day and year first above written.

	
  BORROWER:

  	
  BUCKEYE PARTNERS, L.P.

  
	
   

  	
   

  
	
   

  	
  By

  	
  Buckeye GP LLC, its sole general partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
   

  	
  /s/ ROBERT B. WALLACE

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Robert B. Wallace

  
	
   

  	
   

  	
  Title:

  	
  Chief Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Address for Notices:

  
	
   

  	
   

  
	
   

  	
  5 Radnor Corporate Center

  
	
   

  	
  Suite 500

  
	
   

  	
  100 Matsonford Road

  
	
   

  	
  Radnor, PA 19087

  
	
   

  	
  Telecopier No.: 610/971-9296

  
	
   

  	
  Telephone No.: 610/254-4600

  
	
   

  	
  Attention: Senior Vice President, Finance

  
							

 

 

[SIGNATURE
PAGE TO CREDIT AGREEMENT – BUCKEYE PARTNERS, L.P.]

 S-1
 

 

 

	
  LENDER, ISSUING BANK

  	
   

  	
   

  
	
  AND AGENT:

  	
  SUNTRUST BANK

  
	
   

  	
   

  
	
   

  	
  By

  	
  /s/ DAVID EDGE

  	
   

  
	
   

  	
   

  	
  Name:  David Edge

  
	
   

  	
   

  	
    Title:  Managing
  Director

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Lending Office for Base Rate Loans and LIBOR

  
	
   

  	
  Loans:

  
	
   

  	
   

  
	
   

  	
  303 Peachtree Street, N.E.

  
	
   

  	
  Atlanta, Georgia 30308

  
	
   

  	
  Telecopier No.: 404/724-3879

  
	
   

  	
  Telephone No.: 404/532-0432

  
	
   

  	
  Attention: Agency Services

  
	
   

  	
   

  
	
   

  	
   

  	
  With copies to:

  
	
   

  	
   

  	
   

  
	
   

  	
  303 Peachtree Street, N.E.

  
	
   

  	
  Atlanta, Georgia 30308

  
	
   

  	
  Telecopier No.: 404/827-6270

  
	
   

  	
  Telephone No.: 404/827-6735

  
	
   

  	
  Attention: David Edge

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Address for Notices:

  
	
   

  	
   

  
	
   

  	
  303 Peachtree Street, N.E.

  
	
   

  	
  Atlanta, Georgia 30308

  
	
   

  	
  Telecopier No.: 404/827-6270

  
	
   

  	
  Telephone No.: 404/827-6735

  
	
   

  	
  Attention: David Edge

  
	
   

  	
   

  
	
   

  	
   

  	
  With copies to:

  
	
   

  	
   

  	
   

  
	
   

  	
  303 Peachtree Street, N.E.

  
	
   

  	
  Atlanta, Georgia 30308

  
	
   

  	
  Telecopier No.: 404/724-3879

  
	
   

  	
  Telephone No.: 404/532-0432

  
	
   

  	
  Attention: Agency Services

  
					

 

 

[SIGNATURE
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 S-2
 

 

 

	
  

  	
  BANK OF AMERICA, N.A.

  
	
   

  	
   

  
	
   

  	
  By

  	
  /s/ CHRISTEN A. LACEY

  	
   

  
	
   

  	
   

  	
  Name:  Christen A. Lacey

  
	
   

  	
   

  	
    Title:  Principal

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Lending Office for Base Rate Loans and LIBOR

  
	
   

  	
  Loans:

  
	
   

  	
   

  
	
   

  	
  Bank of America, N.A.

  
	
   

  	
  100 Federal Street

  
	
   

  	
  Boston, MA 02110

  
	
   

  	
  Telecopier No.: 617-310-2628

  
	
   

  	
  Telephone No.: 617-434-9623

  
	
   

  	
  Attention: Patricia A. Thompson

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Address for Notices:

  
	
   

  	
   

  
	
   

  	
  Bank of America, N.A.

  
	
   

  	
  100 Federal Street

  
	
   

  	
  Boston, MA 02110

  
	
   

  	
  Telecopier No.: 617-434-3652

  
	
   

  	
  Telephone No.: 617-434-3384

  
	
   

  	
  Attention: Robert Valbona

  
					

 

 

[SIGNATURE
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 S-3
 

 

 

	
  

  	
  CITIBANK, N.A.

  
	
   

  	
   

  
	
   

  	
  By

  	
  /s/ SHIRLEY E. BURROW

  	
   

  
	
   

  	
   

  	
  Name:  Shirley E. Burrow

  
	
   

  	
   

  	
    Title:  Attorney-in-Fact

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Lending Office for Base Rate Loans and LIBOR

  
	
   

  	
  Loans:

  
	
   

  	
   

  
	
   

  	
  Citibank, N.A.

  
	
   

  	
  One Penn’s Way

  
	
   

  	
  New Castle, DE 19720

  
	
   

  	
  Telecopier No.: 212-994-0847

  
	
   

  	
  Telephone No.: 302-894-6109

  
	
   

  	
  Attention: Dennis Banfield

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Address for Notices:

  
	
   

  	
   

  
	
   

  	
  Citibank, N.A.

  
	
   

  	
  One Penn’s Way

  
	
   

  	
  New Castle, DE 19720

  
	
   

  	
  Telecopier No.: 212-994-0847

  
	
   

  	
  Telephone No.: 302-894-6109

  
	
   

  	
  Attention: Dennis Banfield

  

 

 

[SIGNATURE
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 S-4
 

 

 

	
  

  	
  BNP PARIBAS

  
	
   

  	
   

  
	
   

  	
  By

  	
  /s/ J. ONISCHUK

  	
   

  
	
   

  	
   

  	
  Name:  J. Onischuk

  
	
   

  	
   

  	
    Title:  Director

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  BNP PARIBAS

  
	
   

  	
   

  
	
   

  	
  By

  	
  /s/ RUSSELL OTTS

  	
   

  
	
   

  	
   

  	
  Name:  Russell Otts

  
	
   

  	
   

  	
    Title:  Vice
  President

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Lending Office for Base Rate Loans and LIBOR

  
	
   

  	
  Loans:

  
	
   

  	
   

  
	
   

  	
  BNP Paribas

  
	
   

  	
  919 Third Avenue

  
	
   

  	
  New York, NY 10022

  
	
   

  	
  Telecopier No.: 212-841-2683

  
	
   

  	
  Telephone No.: 212-471-6626

  
	
   

  	
  Attention: Cory Lantin

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Address for Notices:

  
	
   

  	
   

  
	
   

  	
  BNP Paribas

  
	
   

  	
  919 Third Avenue

  
	
   

  	
  New York, NY 10022

  
	
   

  	
  Telecopier No.: 212-841-2683

  
	
   

  	
  Telephone No.: 212-471-6626

  
	
   

  	
  Attention: Cory Lantin

  
					

 

[SIGNATURE
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 S-5
 

 

 

	
  

  	
  JPMORGAN CHASE BANK, N.A.

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
  /s/ TARA NARASIMAN

  	
   

  
	
   

  	
   

  	
  Name:  Tara Narasiman

  
	
   

  	
   

  	
    Title:  Associate

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Lending Office for Base Rate Loans and LIBOR

  
	
   

  	
  Loans:

  
	
   

  	
   

  
	
   

  	
  JPMorgan Chase Bank, N.A.

  
	
   

  	
  10 South Dearborn, Floor 19

  
	
   

  	
  10468-19

  
	
   

  	
  Chicago, IL 60603-2003

  
	
   

  	
  Telecopier No.: 312-385-7069

  
	
   

  	
  Telephone No.: 312-385-7096

  
	
   

  	
  Attention: Cindy Miller

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Address for Notices:

  
	
   

  	
   

  
	
   

  	
  JPMorgan Chase Bank, N.A.

  
	
   

  	
  712 Main 12th floor

  
	
   

  	
  01525-12

  
	
   

  	
  Houston, TX 77002

  
	
   

  	
  Telecopier No.: 713-216-7738

  
	
   

  	
  Telephone No.: 713-216-7794

  
	
   

  	
  Attention: Tara Narasiman

  

 

 

[SIGNATURE
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 S-6
 

 

 

	
  

  	
  WACHOVIA BANK, NATIONAL
  ASSOCIATION

  
	
   

  	
   

  
	
   

  	
  By

  	
  /s/ PAUL PRITCHETT

  	
   

  
	
   

  	
   

  	
  Name:  Paul Pritchett

  
	
   

  	
   

  	
    Title:  Vice
  President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Lending Office for Base Rate Loans and LIBOR

  
	
   

  	
  Loans:

  
	
   

  	
   

  
	
   

  	
  Wachovia Bank, National Association

  
	
   

  	
  201 South College Street, 9th Floor

  
	
   

  	
  Charlotte, NC 28288

  
	
   

  	
  Telecopier No.: 704-715-0097

  
	
   

  	
  Telephone No.: 704-383-0905

  
	
   

  	
  Attention: Todd Tucker

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Address for Notices:

  
	
   

  	
   

  
	
   

  	
  Wachovia Bank, National Association

  
	
   

  	
  171 17th Street, 3rd Floor

  
	
   

  	
  Atlanta, GA 30363

  
	
   

  	
  Telecopier No.: 404-214-3751

  
	
   

  	
  Telephone No.: 404-214-1433

  
	
   

  	
  Attention: Paul Pritchett

  

 

 

[SIGNATURE
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 S-7
 

 

 

	
  

  	
  DEUTSCHE BANK AG NEW YORK
  BRANCH

  
	
   

  	
   

  
	
   

  	
  By

  	
  /s/ MING K. CHU

  	
   

  
	
   

  	
   

  	
  Name:  Ming K. Chu

  
	
   

  	
   

  	
    Title:  Vice
  President

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
  /s/ VINCENT WONG

  	
   

  
	
   

  	
   

  	
  Name:  Vincent Wong

  
	
   

  	
   

  	
    Title:  Vice
  President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Lending Office for Base Rate Loans and LIBOR

  
	
   

  	
  Loans:

  
	
   

  	
   

  
	
   

  	
  Deutsche Bank AG New York Branch

  
	
   

  	
  90 Hudson Street, Floor 1

  
	
   

  	
  Jersey City, NJ 07302

  
	
   

  	
  Telecopier No.: 201-593-2313

  
	
   

  	
  Telephone No.: 201-593-2202

  
	
   

  	
  Attention: Joe Cusmai

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Address for Notices:

  
	
   

  	
   

  
	
   

  	
  Deutsche Bank AG New York Branch

  
	
   

  	
  700 Louisiana Street, Floor 15

  
	
   

  	
  Houston, TX 77002

  
	
   

  	
  Telecopier No.: 832-239-4693

  
	
   

  	
  Telephone No.: 832-239-4622

  
	
   

  	
  Attention: Russell Johnson

  

 

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 S-8

 

 

	
  

  	
  THE ROYAL BANK OF SCOTLAND
  plc

  
	
   

  	
   

  
	
   

  	
  By

  	
  /s/ MATTHEW MAIN

  	
   

  
	
   

  	
   

  	
  Name: Matthew Main

  
	
   

  	
   

  	
    Title: Managing
  Director

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Lending Office for Base Rate Loans and LIBOR

  Loans:

  
	
   

  	
   

  
	
   

  	
  The Royal Bank of Scotland

  
	
   

  	
  New York Branch

  
	
   

  	
  101 Park Avenue, 6th Floor

  
	
   

  	
  New York, NY 10178

  
	
   

  	
  Telecopier No.: 212-401-1494

  
	
   

  	
  Telephone No.: 212-401-1335

  
	
   

  	
  Attention: Claudia Ramirez

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Address for Notices:

  
	
   

  	
   

  
	
   

  	
  The Royal Bank of Scotland

  
	
   

  	
  New York Branch

  
	
   

  	
  101 Park Avenue, 6th Floor

  
	
   

  	
  New York, NY 10178

  
	
   

  	
  Telecopier No.: 212-401-1494

  
	
   

  	
  Telephone No.: 212-401-1335

  
	
   

  	
  Attention: Claudia Ramirez

  

 

 

[SIGNATURE
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 S-9
 

 

 

	
  

  	
  ROYAL BANK OF CANADA

  
	
   

  	
   

  
	
   

  	
  By

  	
  /s/ JASON S. YORK

  	
   

  
	
   

  	
   

  	
  Name:  Jason S. York

  
	
   

  	
   

  	
    Title:  Authorized
  Signatory

  
	
   

  	
   

  	
   

  
	
   

  	
  Lending Office for Base Rate Loans and LIBOR

  Loans:

  
	
   

  	
   

  
	
   

  	
  Royal Bank of Canada

  
	
   

  	
  New York Branch

  
	
   

  	
  One Liberty Plaza, 3rd Floor

  
	
   

  	
  New York, NY 10006-1404

  
	
   

  	
  Telecopier: 212-428-2372

  
	
   

  	
  Telephone: 212-428-6332

  
	
   

  	
  Attention: US Specialized Service Officer

  
	
   

  	
   

  
	
   

  	
  With copies to:

  
	
   

  	
   

  
	
   

  	
  Royal Bank of Canada

  
	
   

  	
  3900 Williams Tower

  
	
   

  	
  2800 Post Oak Blvd.

  
	
   

  	
  Houston, TX 77056

  
	
   

  	
  Telecopier: 713-403-5624

  
	
   

  	
  Telephone: 713-403-5679

  
	
   

  	
  Attention: Jason York

  
	
   

  	
   

  
	
   

  	
  Address for Notices:

  
	
   

  	
   

  
	
   

  	
  Royal Bank of Canada

  
	
   

  	
  New York Branch

  
	
   

  	
  One Liberty Plaza, 3rd Floor

  
	
   

  	
  New York, NY 10006-1404

  
	
   

  	
  Telecopier: 212-428-2372

  
	
   

  	
  Telephone: 212-428-6332

  
	
   

  	
  Attention: US Specialized Service Officer

  
	
   

  	
   

  
	
   

  	
  With copies to:

  
	
   

  	
   

  
	
   

  	
  Royal Bank of Canada

  
	
   

  	
  3900 Williams Tower

  
	
   

  	
  2800 Post Oak Blvd.

  
	
   

  	
  Houston, TX 77056

  
	
   

  	
  Telecopier: 713-403-5624

  
	
   

  	
  Telephone: 713-403-5679

  
	
   

  	
  Attention: Jason York

  

 

 

[SIGNATURE
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 S-10
 

 

 

	
  

  	
  BANK OF TOKYO-MITSUBISHI UFJ,
  LTD.,

  
	
   

  	
  HOUSTON AGENCY

  
	
   

  	
   

  
	
   

  	
  By

  	
  /s/ K. GLASSCOCK

  	
   

  
	
   

  	
   

  	
  Name:  K. Glasscock

  
	
   

  	
   

  	
    Title:  VP
  & Manager

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Lending Office for Base Rate Loans and LIBOR

  Loans:

  
	
   

  	
   

  
	
   

  	
  Bank of Tokyo-Mitsubishi UFJ, Ltd., Houston

  Agency

  
	
   

  	
  Info Svc Plaza III

  
	
   

  	
  34 Exchange Place

  
	
   

  	
  Jersey City, NJ 07302

  
	
   

  	
  Telecopier No.: 201-521-2338

  
	
   

  	
  Telephone No.: 201-413-8566/8571

  
	
   

  	
  Attention: Jimmy Yu/Maria DeJesus

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Address for Notices:

  
	
   

  	
   

  
	
   

  	
  Bank of Tokyo-Mitsubishi UFJ, Ltd., Houston

  Agency

  
	
   

  	
  1100 Louisiana, Suite 2800

  
	
   

  	
  Houston, TX 77002

  
	
   

  	
  Telecopier No.: 713-658-0116

  
	
   

  	
  Telephone No.: 713-655-3869

  
	
   

  	
  Attention: John McIntyre

  

 

 

[SIGNATURE
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 S-11
 

 

 

	
  

  	
  MORGAN STANLEY BANK

  
	
   

  	
   

  
	
   

  	
  By

  	
  /s/ DANIEL TWENGE

  	
   

  
	
   

  	
   

  	
  Name:  Daniel Twenge

  
	
   

  	
   

  	
    Title:  Authorized
  Signatory

  
	
   

  	
   

  	
  Morgan Stanley Bank

  
	
   

  	
   

  	
   

  
	
   

  	
  Lending Office for Base Rate Loans and LIBOR

  Loans:

  
	
   

  	
   

  
	
   

  	
  Morgan Stanley Bank

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Telecopier No.:

  
	
   

  	
  Telephone No.:

  
	
   

  	
  Attention:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Address for Notices:

  
	
   

  	
   

  
	
   

  	
  Morgan Stanley Bank

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Telecopier No.:

  
	
   

  	
  Telephone No.:

  
	
   

  	
  Attention:

  
					

 

 

[SIGNATURE
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 S-12
 

 

 

	
  

  	
  WELLS FARGO BANK, N.A.

  
	
   

  	
   

  
	
   

  	
  By

  	
  /s/ OLEG KOGAN

  	
   

  
	
   

  	
   

  	
  Name:  Oleg Kogan

  
	
   

  	
   

  	
    Title:  Relationship
  Manager

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Lending Office for Base Rate Loans and LIBOR

  Loans:

  
	
   

  	
   

  
	
   

  	
  Wells Fargo Bank, N.A.

  
	
   

  	
  1700 Lincoln Street

  
	
   

  	
  Denver, CO 80217

  
	
   

  	
  Telecopier No.: 303-863-2729

  
	
   

  	
  Telephone No.: 303-863-5411

  
	
   

  	
  Attention: Jackie Duncan

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Address for Notices:

  
	
   

  	
   

  
	
   

  	
  Wells Fargo Bank, N.A.

  
	
   

  	
  1700 Lincoln Street

  
	
   

  	
  Denver, CO 80203

  
	
   

  	
  Telecopier No.: 303-863-5196

  
	
   

  	
  Telephone No.: 303-863-5367

  
	
   

  	
  Attention: Oleg Kogan

  

 

 

[SIGNATURE
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 S-13
 

 

 

	
  

  	
  UBS LOAN FINANCE LLC

  
	
   

  	
   

  
	
   

  	
  By

  	
  /s/ RICHARD L. TAVROW

  	
   

  
	
   

  	
   

  	
  Name:  Richard L. Tavrow

  
	
   

  	
   

  	
    Title:  Director

  
	
   

  	
   

  	
              Banking
  Products Service, US

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
  /s/ IRJA R. OTSA

  	
   

  
	
   

  	
   

  	
  Name:  Irja R. Otsa

  
	
   

  	
   

  	
    Title:  Assoicate
  Director

               Banking
  Products Service, US

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Lending Office for Base Rate Loans and LIBOR

  Loans:

  
	
   

  	
   

  
	
   

  	
  UBS Loan Finance LLC

  
	
   

  	
  677 Washington Boulevard

  
	
   

  	
  Stamford, CT 06901

  
	
   

  	
  Telecopier No.: 203-719-3888

  
	
   

  	
  Telephone No.: 203-719-3143

  
	
   

  	
  Attention: Safraz Hassan

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Address for Notices:

  
	
   

  	
   

  
	
   

  	
  UBS Loan Finance LLC

  
	
   

  	
  677 Washington Boulevard

  
	
   

  	
  Stamford, CT 06901

  
	
   

  	
  Telecopier No.: 203-719-3888

  
	
   

  	
  Telephone No.: 203-719-3143

  
	
   

  	
  Attention: Safraz Hassan

  

 

 

[SIGNATURE
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 S-14
 

 

 

 

	
  

  	
  MERRILL LYNCH BANK USA

  
	
   

  	
   

  
	
   

  	
  By

  	
  /s/ LOUIS ALDER

  	
   

  
	
   

  	
   

  	
  Name:  Louis Alder

  
	
   

  	
   

  	
    Title:  Director

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Lending Office for Base Rate Loans and LIBOR

  Loans:

  
	
   

  	
   

  
	
   

  	
  Merrill Lynch Bank USA

  
	
   

  	
  15 W. South Temple, Suite 300

  
	
   

  	
  Salt Lake City, UT 84101

  
	
   

  	
  Telecopier No.: 801-359-4667

  
	
   

  	
  Telephone No.: 801-933-8631

  
	
   

  	
  Attention: Mark Cannon

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Address for Notices:

  
	
   

  	
   

  
	
   

  	
  Merrill Lynch Bank USA

  
	
   

  	
  15 W. South Temple, Suite 300

  
	
   

  	
  Salt Lake City, UT 84101

  
	
   

  	
  Telecopier No.: 801-359-4667

  
	
   

  	
  Telephone No.: 801-933-8631

  
	
   

  	
  Attention: Mark Cannon

  

 

 

[SIGNATURE
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 S-15
 

 

 

	
  

  	
  WILLIAM STREET CREDIT
  CORPORATION

  
	
   

  	
   

  
	
   

  	
  By

  	
  /s/ MARK WAZTON

  	
   

  
	
   

  	
   

  	
  Name:  Mark Wazton

  
	
   

  	
   

  	
    Title:  Asst
  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Lending Office for Base Rate Loans and LIBOR

  Loans:

  
	
   

  	
   

  
	
   

  	
  William Street Credit Corporation

  
	
   

  	
  30 Hudson Street – 17th Floor

  
	
   

  	
  Jersey City, NJ 07302

  
	
   

  	
  Telecopier No.: 212-357-4597

  
	
   

  	
  Telephone No.: 212-357-7570

  
	
   

  	
  Attention: Philip F. Green

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Address for Notices:

  
	
   

  	
   

  
	
   

  	
  William Street Credit Corporation

  
	
   

  	
  30 Hudson Street – 17th Floor

  
	
   

  	
  Jersey City, NJ 07302

  
	
   

  	
  Telecopier No.: 212-428-1243

  
	
   

  	
  Telephone No.: 917-343-8319

  
	
   

  	
  Attention: Pedro Ramirez

  

 

 

[SIGNATURE
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 S-16
 

 

 

	
  

  	
  LEHMAN BROTHERS BANK, FSB

  
	
   

  	
   

  
	
   

  	
  By

  	
  /s/ GARY TAYLOR

  	
   

  
	
   

  	
   

  	
  Name:  Gary Taylor

  
	
   

  	
   

  	
    Title:  Senior
  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Lending Office for Base Rate Loans and LIBOR

  Loans:

  
	
   

  	
   

  
	
   

  	
  Lehman Brothers Bank, FSB

  
	
   

  	
  745 7th Avenue, 5th Floor

  
	
   

  	
  New York, NY 10019

  
	
   

  	
  Telecopier No.: 212-520-0450

  
	
   

  	
  Telephone No.: 212-526-6560

  
	
   

  	
  Attention: Joseph Lo

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Address for Notices:

  
	
   

  	
   

  
	
   

  	
  Lehman Brothers Bank, FSB

  
	
   

  	
  745 7th Avenue, 5th Floor

  
	
   

  	
  New York, NY 10019

  
	
   

  	
  Telecopier No.: 212-522-0139

  
	
   

  	
  Telephone No.: 212-526-8625

  
	
   

  	
  Attention: Janine Shugan

  

 

[SIGNATURE
PAGE TO CREDIT AGREEMENT – BUCKEYE PARTNERS, L.P.]

 S-17

 

ANNEX I

5-YEAR CREDIT AGREEMENT

LIST OF PERCENTAGE SHARES AND REVOLVING CREDIT COMMITMENTS

AS OF CLOSING DATE

	
  Name of Lender

  	
   

  	
  Percentage Share

  	
   

  	
  Revolving Credit

  Commitments

  	
   

  
	
  SunTrust
  Bank

  	
   

  	
  8.7500000

  	
  %

  	
  $

  	
  35,000,000

  	
   

  
	
  Wachovia
  Bank, National Association

  	
   

  	
  8.7500000

  	
  %

  	
  $

  	
  35,000,000

  	
   

  
	
  Bank
  of America, N.A.

  	
   

  	
  7.5000000

  	
  %

  	
  $

  	
  30,000,000

  	
   

  
	
  Citibank,
  N.A.

  	
   

  	
  7.5000000

  	
  %

  	
  $

  	
  30,000,000

  	
   

  
	
  JPMorgan
  Chase Bank, N.A.

  	
   

  	
  7.5000000

  	
  %

  	
  $

  	
  30,000,000

  	
   

  
	
  BNP
  Paribas

  	
   

  	
  7.5000000

  	
  %

  	
  $

  	
  30,000,000

  	
   

  
	
  Deutsche
  Bank AG, New York Branch

  	
   

  	
  7.5000000

  	
  %

  	
  $

  	
  30,000,000

  	
   

  
	
  The
  Royal Bank of Scotland plc

  	
   

  	
  7.5000000

  	
  %

  	
  $

  	
  30,000,000

  	
   

  
	
  The
  Bank of Tokyo-Mitsubishi UFJ, Ltd., Houston Agency

  	
   

  	
  7.5000000

  	
  %

  	
  $

  	
  30,000,000

  	
   

  
	
  Royal
  Bank of Canada

  	
   

  	
  6.0000000

  	
  %

  	
  $

  	
  24,000,000

  	
   

  
	
  UBS
  Loan Finance LLC

  	
   

  	
  6.0000000

  	
  %

  	
  $

  	
  24,000,000

  	
   

  
	
  Wells
  Fargo Bank, N.A.

  	
   

  	
  6.0000000

  	
  %

  	
  $

  	
  24,000,000

  	
   

  
	
  Lehman
  Brothers Bank, FSB

  	
   

  	
  3.0000000

  	
  %

  	
  $

  	
  12,000,000

  	
   

  
	
  Merrill
  Lynch Bank USA

  	
   

  	
  3.0000000

  	
  %

  	
  $

  	
  12,000,000

  	
   

  
	
  Morgan
  Stanley Bank

  	
   

  	
  3.0000000

  	
  %

  	
  $

  	
  12,000,000

  	
   

  
	
  William
  Street Credit Corporation

  	
   

  	
  3.0000000

  	
  %

  	
  $

  	
  12,000,000

  	
   

  
	
  Total

  	
   

  	
  100.0000000

  	
  %

  	
  $

  	
  400,000,000

  	
   

  

 

 I-1

 

EXHIBIT A

FORM OF BORROWING, CONTINUATION AND CONVERSION REQUEST

                           ,
20   

BUCKEYE PARTNERS, L.P., a Delaware limited partnership
(the “Borrower”), pursuant to the
Credit Agreement dated as of November 13, 2006, among the Borrower, SunTrust
Bank, as administrative agent for the lenders (the “Lenders”)
which are or become parties thereto, and such Lenders (together with all
amendments or supplements thereto, the “Credit Agreement”),
hereby makes the requests indicated below (unless otherwise defined herein,
capitalized terms are defined in the Credit Agreement):

o                                       1.                         Loans:

(a)                      Aggregate
amount of new Loans to be

$                                    ;

(b)                     Requested
funding date is                            ,
20     ;

(c)                      $                                     of such borrowings are to be LIBOR Loans;

$                                     of such borrowings are to be Base Rate Loans; and

(d)                     Length
of Interest Period for LIBOR Loans is:

                                    .

o                                       2.                         LIBOR Loan Continuation for
LIBOR Loans maturing on                            .

(a)                      Aggregate
amount to be continued as LIBOR Loans is $                                    ;

(b)                     Aggregate
amount to be converted to Base Rate Loans is $                                    ;

(c)                      Length
of Interest Period for continued LIBOR Loans is

                                    .

o                                       3.                         Conversion of Outstanding Base
Rate Loans to LIBOR Loans:

Convert $                      of the
outstanding Base Rate Loans to LIBOR Loans on                      with an
Interest Period of                       .

o                                       4.                         Conversion of outstanding
LIBOR Loans to Base Rate Loans:

Convert
$                                     of the
outstanding LIBOR Loans with Interest Period maturing on                            ,
20   , to Base Rate Loans.

 A-1
 

 

The undersigned certifies that he is the                    of the sole general partner of Borrower, and
that as such he is authorized to execute this certificate on behalf of the
Borrower.  The undersigned further
certifies, represents and warrants on behalf of the Borrower that the Borrower
is entitled to receive the requested borrowing, continuation or conversion
under the terms and conditions of the Credit Agreement.

	
  

  	
  BUCKEYE PARTNERS, L.P.

  
	
   

  	
  By

  	
  Buckeye GP LLC, its sole

  
	
   

  	
   

  	
  general partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
  Title:

  

 

 A-2

 

EXHIBIT B

FORM OF COMPLIANCE CERTIFICATE

The undersigned hereby certifies that it is the
general partner of BUCKEYE PARTNERS, L.P., a Delaware limited partnership (the “Borrower”) and that, as such, it is
authorized to execute this certificate on behalf of the Borrower.  With reference to the Credit Agreement, dated
as of November 13, 2006, among the Borrower, SunTrust Bank, as administrative
agent for the lenders (the “Lenders”)
which are or become a party thereto, and such Lenders (together with all amendments
or supplements thereto being the “Credit Agreement”),
the undersigned, on behalf of the Borrower, represents and warrants as follows
(each capitalized term used herein having the same meaning given to it in the
Credit Agreement unless otherwise specified):

(a)                                  The representations and warranties of the
Borrower contained in Article VII of the Credit Agreement and in the other
Loan Documents and otherwise made in writing by or on behalf of the Borrower
pursuant to the Credit Agreement and the other Loan Documents were true and
correct when made, and are repeated at and as of the time of delivery hereof
and are true and correct at and as of the time of delivery hereof, except (x)
as such representations and warranties are modified to give effect to the transactions
expressly permitted by the Credit Agreement and (y) to the extent such
representations and warranties are expressly limited to an earlier date or the
Required Lenders have expressly consented in writing to the contrary.

(b)                                 The Borrower has performed and complied with all
agreements and conditions contained in the Credit Agreement and in the other
Loan Documents required to be performed or complied with by it prior to or at
the time of delivery hereof.

(c)                                  None of the Borrower or any Restricted Subsidiary
of the Borrower has incurred any material liabilities, direct or contingent,
since [date of last audited financial statements
delivered] except those set forth in Schedule 9.01 to the Credit
Agreement and except those not prohibited by the terms of the Credit Agreement
or consented to by the Lenders in writing.

(d)                                 Since [date of last audited
financial statements delivered], no change has occurred, either in
any case or in the aggregate, in the condition, financial or otherwise, of the
Borrower or any Subsidiary of the Borrower which would have a Material Adverse
Effect.

(e)                                  There
exists, and, after giving effect to the Loan or Loans with respect to which this certificate is being delivered, will
exist, no Default under the Credit Agreement.

(f)                                    The financial statements furnished to the Agent
with this certificate fairly present, in all material respects, the
consolidated financial condition and results of operations of the Borrower and
its Consolidated Subsidiaries as at the end of, and for, the [fiscal quarter][fiscal year] ending and such financial
statement have been prepared in accordance with the accounting requirements
specified in the Credit Agreement.

 B-1
 

 

(g)                                 Attached hereto are the detailed computations
necessary to determine whether the Borrower is in compliance with
Section 9.12 of the Credit Agreement as of the end of the [fiscal quarter] [fiscal year] ending                                    .

The officer signing this Certificate on behalf of the
General Partner hereby certifies that he/she holds the office set forth under
his/her signature and is authorized to execute this Certificate on behalf of
the General Partner.

EXECUTED AND DELIVERED this      
day of                                ,
20   .

 

	
  

  	
  BUCKEYE PARTNERS,
  L.P.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Buckeye GP LLC,
  its sole

  
	
   

  	
   

  	
  general partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
  Title:

  

 

 B-2

 

EXHIBIT C

FORM OF ASSIGNMENT AGREEMENT

ASSIGNMENT AGREEMENT (“Agreement”)
dated as of                             ,
20      between:                                                     
(the “Assignor”) and                                                         
(the “Assignee”).

RECITALS

A.            The
Assignor is a party to the Credit Agreement dated as of November 13, 2006 (as
amended and supplemented and in effect from time to time, the “Credit Agreement”) among Buckeye
Partners, L.P., a limited partnership (the “Borrower”),
each of the lenders that is or becomes a party thereto as provided in
Section 12.06 of the Credit Agreement (individually, together with its
successors and assigns, a “Lender”,
and collectively, together with their successors and assigns, the “Lenders”), and SunTrust Bank, in its
individual capacity (“SunTrust”)
and as administrative agent for the Lenders (in such capacity, together with
its successors in such capacity, the “Agent”).

B.            The
Assignor proposes to sell, assign and transfer to the Assignee, and the
Assignee proposes to purchase and assume from the Assignor, [all][a portion] of the Assignor’s Revolving Credit
Commitment, outstanding Loans and its Percentage Share of the outstanding LC
Exposure, all on the terms and conditions of this Agreement.

C.            In
consideration of the foregoing and the mutual agreements contained herein, and
for other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, the parties hereto agree as follows:

ARTICLE I

DEFINITIONS

Section 1.01.  Definitions.

All capitalized terms used but not defined herein have
the respective meanings given to such terms in the Credit Agreement.

Section 1.02.  Other Definitions.

As used herein, the following terms have the following
respective meanings:

“Assigned
Interest” shall mean all of Assignor’s rights and obligations
(i) under the Credit Agreement and the other Loan Documents in respect of
the Revolving Credit Commitment of the Assignor in the principal amount equal
to $                            
including, without limitation, any obligation to participate pro rata in any LC
Exposure, and (ii) to make Loans under the Revolving Credit Commitment and
any right to receive payments for the Loans outstanding under the Revolving
Credit Commitment assigned hereby of $                            
(the “Loan Balance”), plus the interest
and fees which will accrue from and after the Assignment Date.

 C-1
 

 

“Assignment
Date” shall mean                             ,
200   .

ARTICLE II

SALE AND ASSIGNMENT

Section 2.01.  Sale and Assignment.

On the terms and conditions set forth herein,
effective on and as of the Assignment Date, the Assignor hereby sells, assigns
and transfers to the Assignee, and the Assignee hereby purchases and assumes
from the Assignor, all of the right, title and interest of the Assignor in and
to, and all of the obligations of the Assignor in respect of, the Assigned
Interest.  Such sale, assignment and
transfer is without recourse and, except as expressly provided in this
Agreement, without representation or warranty.

Section 2.02.  Assumption of Obligations.

The Assignee agrees with the Assignor (for the express
benefit of the Assignor and the Borrower) that the Assignee will, from and
after the Assignment Date, perform all of the obligations of the Assignor in
respect of the Assigned Interest.  From
and after the Assignment Date: (a) the Assignor shall be released from the
Assignor’s obligations in respect of the Assigned Interest, and (b) the
Assignee shall be entitled to all of the Assignor’s rights, powers and
privileges under the Credit Agreement and the other Loan Documents in respect
of the Assigned Interest.

Section 2.03.  Consent by Agent.

By executing this Agreement as provided below, in
accordance with Section 12.06(b)of the Credit Agreement, the Agent hereby
acknowledges notice of the transactions contemplated by this Agreement and
consents to such transactions.

ARTICLE III

PAYMENTS

Section 3.01.  Payments.

As consideration for the sale, assignment and transfer
contemplated by Section 2.01 hereof, the Assignee shall, on the Assignment
Date, assume Assignor’s obligations in respect of the Assigned Interest and pay
to the Assignor an amount equal to the [Loan Balance],
if any.  An amount equal to all accrued
and unpaid interest and fees shall be paid to the Assignor as provided in
Section 3.02(iii) below. 
Except as otherwise provided in this Agreement, all payments hereunder
shall be made in Dollars and in immediately available funds, without setoff,
deduction or counterclaim.

Section 3.02.  Allocation of Payments.

The Assignor and the Assignee agree that (i) the
Assignor shall be entitled to any payments of principal with respect to the
Assigned Interest made prior to the Assignment Date, together with any interest
and fees with respect to the Assigned Interest accrued prior to the 

 C-2
 

 

Assignment Date,
(ii) the Assignee shall be entitled to any payments of principal with
respect to the Assigned Interest made from and after the Assignment Date,
together with any and all interest and fees with respect to the Assigned
Interest accruing from and after the Assignment Date, and (iii) the Agent
is authorized and instructed to allocate payments received by it for account of
the Assignor and the Assignee as provided in the foregoing clauses.  Each party hereto agrees that it will hold
any interest, fees or other amounts that it may receive to which the other
party hereto shall be entitled pursuant to the preceding sentence for account
of such other party and pay, in like money and funds, any such amounts that it
may receive to such other party promptly upon receipt.

Section 3.03.  Further Assurances.

The Assignor and the Assignee hereby agree to execute
and deliver such other instruments, and take such other actions, as either
party may reasonably request in connection with the transactions contemplated
by this Agreement.

ARTICLE IV

CONDITIONS PRECEDENT

Section 4.01.  Conditions Precedent.

The effectiveness of the sale, assignment and transfer
contemplated hereby is subject to the satisfaction of each of the following
conditions precedent:

(a)           the execution and delivery of this Agreement by the
Assignor and the Assignee;

(b)           the receipt by the Assignor of the payment required to be
made by the Assignee under Section 3.01 hereof;

(c)           the acknowledgment and consent by the Agent contemplated
by Section 2.03 hereof; and

(d)           the consent of the Borrower to the extent required under
Section of 12.06 of the Credit Agreement.

ARTICLE V

REPRESENTATIONS AND WARRANTIES

Section 5.01.  Representations and Warranties of the
Assignor.

The Assignor represents and warrants to the Assignee
as follows:

(a)           it has all requisite power and authority, and has taken
all action necessary to execute and deliver this Agreement and to fulfill its
obligations under, and consummate the transactions contemplated by, this
Agreement;

 C-3
 

 

(b)           the execution, delivery and compliance with the terms
hereof by Assignor and the delivery of all instruments required to be delivered
by it hereunder do not and will not violate any Governmental Requirement
applicable to it;

(c)           this Agreement has been duly executed and delivered by it
and constitutes the legal, valid and binding obligation of the Assignor,
enforceable against it in accordance with its terms;

(d)           all approvals and authorizations of, all filings with and
all actions by any Governmental Authority necessary for the validity or
enforceability of its obligations under this Agreement have been obtained;

(e)           the Assignor has good title to, and is the sole legal and
beneficial owner of, the Assigned Interest, free and clear of all Liens,
claims, participations or other charges of any nature               whatsoever; and

(f)            the transactions contemplated by this Agreement are
commercial banking transactions entered into in the ordinary course of the banking
business of the Assignor.

Section 5.02.  Disclaimer.

Except as expressly provided in Section 5.01
hereof, the Assignor does not make any representation or warranty, nor shall it
have any responsibility to the Assignee, with respect to the accuracy of any
recitals, statements, representations or warranties contained in the Credit
Agreement or in any certificate or other document referred to or provided for
in, or received by any Lender under, the Credit Agreement, or for the value,
validity, effectiveness, genuineness, execution, effectiveness, legality,
enforceability or sufficiency of the Credit Agreement or any other document
referred to or provided for therein or for any failure by the Borrower or any
other Person (other than Assignor) to perform any of its obligations thereunder
prior or for the existence, value, perfection or priority of any collateral
security or the financial or other condition of the Borrower or the
Subsidiaries [or any other obligor or guarantor],
or any other matter relating to the Credit Agreement or any other Loan Document
or any extension of credit thereunder.

Section 5.03.  Representations and Warranties of the
Assignee.

The Assignee represents and warrants to the Assignor
as follows:

(a)           it has all requisite power and authority, and has taken
all action necessary to execute and deliver this Agreement and to fulfill its
obligations under, and consummate the transactions contemplated by, this
Agreement;

(b)           the execution, delivery and compliance with the terms
hereof by Assignee and the delivery of all instruments required to be delivered
by it hereunder do not and will not violate any Governmental Requirement
applicable to it;

 C-4
 

 

(c)           this Agreement has been duly executed and delivered by it
and constitutes the legal, valid and binding obligation of the Assignee,
enforceable against it in accordance with its terms;

(d)           all approvals and authorizations of, all filings with and
all actions by any Governmental Authority necessary for the validity or
enforceability of its obligations under this Agreement have been obtained;

(e)           the Assignee has fully reviewed the terms of the Credit
Agreement and the other Loan Documents and has independently and without
reliance upon the Assignor, and based on such information as the Assignee has
deemed appropriate, made its own credit analysis and decision to enter into
this Agreement;

(f)            the Assignee hereby affirms that the representations contained
in Section 4.06(d) of the Credit Agreement, if applicable, are true and accurate as to it and the Assignee has
contemporaneously herewith delivered to the Agent and the Borrower such
certifications as are required thereby to avoid the withholding taxes referred
to in Section 4.06(d); and

(g)           the transactions contemplated by this Agreement are
commercial banking transactions entered into in the ordinary course of the
banking business of the Assignee.

ARTICLE VI

MISCELLANEOUS

Section 6.01.  Notices.

All notices and other communications provided for
herein (including, without limitation, any modifications of, or waivers,
requests or consents under, this Agreement) shall be given or made in writing
(including, without limitation, by telex or telecopy) to the intended recipient
at its “Address for Notices”
specified below its name on the signature pages hereof or, as to either party,
at such other address as shall be designated by such party in a notice to the
other party.

Section 6.02.  Amendment, Modification or Waiver.

No provision of this Agreement may be amended,
modified or waived except by an instrument in writing signed by the Assignor
and the Assignee, and consented to by the Agent.

Section 6.03.  Successors and Assigns.

This Agreement shall be binding upon and inure to the
benefit of the parties hereto and their respective successors and permitted
assigns.  The representations and
warranties made herein by the Assignee are also made for the benefit of the
Agent and the Borrower, and the Assignee agrees that the Agent and the Borrower
are entitled to rely upon such representations and warranties.

 C-5
 

 

Section 6.04.  Assignments.

Neither party hereto may assign any of its rights or
obligations hereunder except in accordance with the terms of the Credit
Agreement.

Section 6.05.  Captions.

The captions and section headings appearing
herein are included solely for convenience of reference and are not intended to
affect the interpretation of any provision of this Agreement.

Section 6.06.  Counterparts.

This Agreement may be executed in any number of
counterparts, each of which shall be identical and all of which, taken
together, shall constitute one and the same instrument, and each of the parties
hereto may execute this Agreement by signing any such counterpart.

Section 6.07.  Governing Law.

This Agreement shall be governed by, and construed in
accordance with, the law of the State of New York.

Section 6.08.  Expenses.

To the extent not paid by the Borrower pursuant to the
terms of the Credit Agreement, each party hereto shall bear its own expenses in
connection with the execution, delivery and performance of this Agreement.

Section 6.09.  Waiver of Jury Trial.

EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES,
TO THE FULLEST EXTENT PERMITTED BY LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN
ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS
CONTEMPLATED HEREBY.

 C-6
 

 

IN WITNESS WHEREOF, the parties hereto have caused this Assignment Agreement
to be executed and delivered as of the date
first above written.

	
  

  	
  ASSIGNOR:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Address for
  Notices:

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Telecopier No.:

  	
   

  	
   

  
	
   

  	
  Telephone No.:

  	
   

  	
   

  
	
   

  	
  Attention:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  ASSIGNEE:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Address for
  Notices:

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Telecopier No.:

  	
   

  	
   

  
	
   

  	
  Telephone No.:

  	
   

  	
   

  
	
   

  	
  Attention:

  	
   

  	
   

  
						

 C-7
 

 

 

	
  ACKNOWLEDGED AND CONSENTED TO:

  	
   

  
	
   

  	
   

  
	
   

  	
  ,

  	
   

  
	
  as Agent

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By

  	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  

 

 C-8

 

EXHIBIT D-1

RESTRICTED SUBSIDIARIES

AS OF THE DATE HEREOF

Buckeye Pipe Line Company, L.P.

Buckeye Pipe Line Holdings, L.P.

Buckeye Gulf Coast Holdings I, LLC

Buckeye Gulf Coast Holdings II, LLC

Buckeye Gulf Coast Pipe Lines, L.P.

Buckeye Terminals, LLC

NORCO Pipe Line Company, LLC

Everglades Pipe Line Company, L.P.

Laurel Pipe Line Company, L.P.

Wood River Pipe Lines LLC

Buckeye Pipe Line Transportation, LLC

Buckeye Texas Pipe Line Company, L.P.

Buckeye NGL Pipe Lines LLC

Ferrysburg Terminal, LLC

 D-1
 

 

EXHIBIT D-2

UNRESTRICTED SUBSIDIARIES

AS OF THE DATE HEREOF

WesPac Pipelines –
Austin LLC

WesPac Pipelines - Memphis LLC

WesPac Pipelines - Reno LLC

WesPac Pipelines – San Diego LLC

WesPac Pipelines – San Jose LLC

Buckeye Products Pipe Line, L.P.

Gulf Coast Pipe Line, L.P.

Gulf Coast / Products GP Holding LLC

Gulf Coast / Products Holding LP

 D-2

 

EXHIBIT E

FORM OF GUARANTY

THIS GUARANTY, dated as of                           
   , 20    , by [NAME OF GUARANTOR] (the “Guarantor”), is in favor of SUNTRUST
BANK, as administrative agent (the “Agent”) for
the lenders (the “Lenders”) that are or become
parties to the Credit Agreement defined below.

W I T N E S S E T H:

WHEREAS, BUCKEYE PARTNERS, L.P., a Delaware limited
partnership (the “Borrower”), the Agent and the
Lenders have entered into that certain 5-Year Credit Agreement dated as of
November 13, 2006 (as the same may be amended, supplemented or otherwise
modified from time to time, the “Credit Agreement”);
and

WHEREAS, one of the terms and conditions stated in the
Credit Agreement for the making of the loans described therein is the execution
and delivery to the Agent for the benefit of the Lenders of this Guaranty;

NOW, THEREFORE, (i) in order to comply with the
terms and conditions of the Credit Agreement, (ii) to induce the Lenders,
at any time or from time to time, to loan monies, with or without security to
or for the account of Borrower in accordance with the terms of the Credit
Agreement, (iii) at the special insistence and request of the Lenders, and
(iv) for other good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, Guarantor hereby agrees as
follows:

ARTICLE I

GENERAL TERMS

Section 1.01.  Certain Definitions.

As used in this Guaranty, the following terms shall
have the following meanings, unless the context otherwise requires:

“Agent”
shall have the meaning assigned such term in the preamble to this Guaranty.

“Borrower”
shall have the meaning assigned such term in the preamble to this Guaranty.

“Contribution
Obligation” shall mean an amount equal, at any time and  from time to time and for each respective
Subsidiary Guarantor, to the product  of
(i) its Contribution Percentage times (ii) the sum of all payments
made previous to or at the time of calculation by all Subsidiary Guarantors in
respect of the Liabilities, as a Subsidiary Guarantor (less the amount of any
such payments previously returned to any Subsidiary Guarantor by operation of
law or otherwise, but not including payments received by any Subsidiary
Guarantor by way of its rights of subrogation and contribution under
Section 2.09 of the other Guaranty), provided, however,
such 

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Contribution Obligation for any
Subsidiary Guarantor shall in no event exceed such Subsidiary Guarantor’s
Maximum Guaranteed Amount, as defined in the respective Guaranty of such
Subsidiary Guarantor.

“Contribution
Percentage” shall mean for any Subsidiary Guarantor for any
applicable date as of which such percentage is being determined, an
amount equal to the quotient of
(i) the Net Worth of such Subsidiary Guarantor as of such date, divided by
(ii) the sum of the Net Worth of all the Subsidiary Guarantors as of such
date.

“Credit
Agreement” shall have the meaning assigned such term in the
preamble to this Guaranty.

“Guarantor”
shall have the meaning assigned such term in the preamble to this Guaranty.

“Guarantor
Claims” shall have the meaning indicated in Section 4.01
hereof.

“Guaranty”
shall mean this Guaranty, and where the context indicates, the Guaranty of any
other Subsidiary Guarantor, as the same may from time to time be amended,
supplemented, or otherwise modified.

“Lenders”
shall have the meaning assigned such term in the preamble to this Guaranty.

“Liabilities”
shall mean (a) any and all indebtedness, obligations and liabilities of
the Borrower pursuant to the Credit Agreement, including without limitation,
(i) the unpaid principal of and interest under the Credit Agreement,
including without limitation, interest accruing subsequent to the filing of a
petition or other action concerning bankruptcy or other similar proceeding,
(ii) payment of and performance of any and all Hedging Agreements between
the Borrower and any Person which was a Lender or an Affiliate of a Lender at
the time such Hedging Agreement was executed, (iii) payment of and
performance of any and all Letters of Credit, and (iv) any additional Loans
made by the Lenders to the Borrower, and (b) all renewals, rearrangements,
substitutions, increases, extensions for any period, amendments or supplements
in whole or in part of the Credit Agreement or any documents evidencing the
above.

“Maximum Guaranteed Amount” shall mean, for
any Guarantor, the greater of (i) the “reasonably
equivalent value” or “fair consideration” (or equivalent concept) received by
the Guarantor in exchange for the obligation incurred hereunder, within the
meaning of any applicable state or federal fraudulent conveyance or transfer
laws; or (ii) the lesser of (a) the maximum amount that will not
render the Guarantor insolvent, or (b) the maximum amount that will not
leave the Guarantor with any property deemed an unreasonably small capital.  Clauses (a) and (b) are and
shall be determined pursuant to and as of the appropriate date mandated by such
applicable state or federal fraudulent conveyance or transfer laws and
to the extent allowed by law take into account the rights to contribution and subrogation under Section 2.08 in
each Guaranty so as to provide for the largest Maximum Guaranteed Amount
possible.

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“Net
Payments” shall mean an amount equal, at any time and from time
to time and for each respective Subsidiary Guarantor, to the difference of
(i) the sum of all payments made previous to or at the time of calculation
by such Subsidiary Guarantor in respect to the Liabilities, as a Subsidiary
Guarantor, and in respect of its obligations contained in this Guaranty, less
(ii) the sum of all such payments previously returned to such Subsidiary
Guarantor by operation of law or otherwise and including payments received by
such Subsidiary Guarantor by way of its rights of subrogation and contribution
under Section 2.08 of the other Guaranty.

“Net
Worth” shall mean for any Subsidiary Guarantor, calculated on
and as of any applicable date on which such amount is being determined, the
difference between (i) the sum of all such Subsidiary Guarantor’s property, at a fair valuation and as of such
date, minus (ii) the sum of all such Subsidiary Guarantor’s debts, at a
fair valuation and as of such date, excluding the Liabilities.

“Subsidiary
Guarantors” shall mean the Guarantor and any other Restricted
Subsidiary which executes a guaranty securing the Liabilities.

Section 1.02.  Credit Agreement Definitions.

Unless otherwise defined herein, all terms beginning
with a capital letter which are defined in the Credit Agreement shall have the
same meanings herein as therein.

ARTICLE II

THE GUARANTY

Section 2.01.  Liabilities Guaranteed.

Guarantor hereby irrevocably and unconditionally
guarantees in favor of the Agent for the benefit of the Lenders the prompt
payment of the Liabilities when due, whether at maturity or otherwise, provided, however, that, notwithstanding anything herein or
in any other Loan Document to the contrary, the maximum liability of Guarantor
hereunder shall in no event exceed the Maximum Guaranteed Amount.

Section 2.02.  Nature of Guaranty.

This Guaranty is an absolute, irrevocable, completed
and continuing guaranty of payment and not a guaranty of collection, and no
notice of the Liabilities or any extension of credit already or hereafter
contracted by or extended to Borrower need be given to Guarantor.  This Guaranty may not be revoked by Guarantor
and shall continue to be effective with respect to debt under the Liabilities
arising or created after any attempted revocation by Guarantor and shall remain
in full force and effect until the Liabilities are paid in full and the Revolving
Credit Commitments are terminated, notwithstanding that from time to time prior
thereto no Liabilities may be outstanding. 
The Borrower and the Lenders may modify, alter, rearrange, extend for
any period and/or renew from time to time, the Liabilities, and the Lenders may
waive any Default or Event of Default without notice to the Guarantor and in
such event Guarantor will remain fully bound hereunder on the Liabilities.  This Guaranty shall continue to be effective
or be reinstated, as the case may be, if at any time any payment of the
Liabilities is rescinded or must otherwise 

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be returned by any of the
Lenders upon the insolvency, bankruptcy or reorganization of Borrower or
otherwise, all as though such payment had not been made.  This Guaranty may be enforced by the Agent
and any subsequent holder of any of the Liabilities and shall not be discharged
by the assignment or negotiation of all or part of the Liabilities.  Except as otherwise expressly provided herein,
Guarantor hereby expressly waives presentment, demand, notice of non-payment,
protest and notice of protest and dishonor, notice of Default or Event of
Default, notice of intent to accelerate the maturity and notice of acceleration
of the maturity and any other notice in connection with the Liabilities, and
also notice of acceptance of this Guaranty, acceptance on the part of the
Lenders being conclusively presumed by the Lenders’ request for this Guaranty
and delivery of the same to the Agent.

Section 2.03.  Guarantor’s Waivers.

Guarantor waives any right to require any of the
Lenders to (i) proceed against Borrower or any other person liable on the
Liabilities, (ii) enforce any of their rights against any other guarantor
of the Liabilities, (iii) proceed or enforce any of their
rights against or exhaust any security given to secure the Liabilities,
(iv) have Borrower joined with Guarantor in any suit arising out of this
Guaranty and/or the Liabilities, or (v) pursue any other remedy in the
Lenders’ powers whatsoever.  The Lenders
shall not be required to mitigate damages or take any action to reduce, collect
or enforce the Liabilities.  Guarantor
waives any defense arising by reason of any disability, lack of corporate
authority or power, or other defense of Borrower or any other guarantor of the
Liabilities, and shall remain liable hereon regardless of whether Borrower or
any other guarantor be found not liable thereon for any reason.  Whether and when to exercise any of the
remedies of the Lenders under any of the Loan Documents shall be in the sole
and absolute discretion of the Agent, and no delay by the Agent in enforcing
any remedy, including delay in conducting a foreclosure sale, shall be a
defense to the Guarantor’s liability under this Guaranty.

Section 2.04.  Maturity of Liabilities; Payment.

Guarantor agrees that if the maturity of any of the
Liabilities is accelerated by bankruptcy or otherwise, such maturity shall also
be deemed accelerated for the purpose of this Guaranty without demand or notice
to Guarantor.  Guarantor will, forthwith
upon notice from the Agent, pay to the Agent the amount due and unpaid by
Borrower and guaranteed hereby.  The
failure of the Agent to give this notice shall not in any way release Guarantor
hereunder.

Section 2.05.  Agent’s Expenses.

If Guarantor fails to pay the Liabilities after notice
from the Agent of Borrower’s failure to pay any Liabilities at maturity, and if
the Agent obtains the services of an attorney for collection of amounts owing
by Guarantor hereunder, or obtaining advice of counsel in respect of any of
their rights under this Guaranty, or if suit is filed to enforce this Guaranty,
or if proceedings are had in any bankruptcy, probate, receivership or other
judicial proceedings for the establishment or collection of any amount owing by
Guarantor hereunder, or if any amount owing by Guarantor hereunder is collected
through such proceedings, Guarantor agrees to pay to the Agent the Agent’s
reasonable attorneys’ fees.

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Section 2.06.  Liability.

It is expressly agreed that the liability of the
Guarantor for the payment of the Liabilities guaranteed hereby shall be primary
and not secondary.

Section 2.07.  Events and Circumstances Not Reducing or
Discharging Guarantor’s Obligations.

Guarantor hereby consents and agrees to each of the
following to the fullest extent permitted by law, and agrees that Guarantor’s
obligations under this Guaranty shall not be released, diminished, impaired,
reduced or adversely affected by any of the following, and waives any rights
(including without limitation rights to notice) which Guarantor might otherwise
have as a result of or in connection with any of the following:

(a)           Modifications, etc.  Any renewal, extension,
modification, increase, decrease, alteration or rearrangement of all or any
part of the Liabilities or the Credit Agreement or any instrument executed in
connection therewith, or any contract or understanding between Borrower and any
of the Lenders, or any other Person, pertaining to the Liabilities;

(b)           Adjustment, etc.  Any adjustment, indulgence, forbearance
or compromise that might be granted or given by any of the Lenders to Borrower
or Guarantor or any Person liable on the Liabilities;

(c)           Condition of Borrower or
Guarantor.  The insolvency,
bankruptcy arrangement, adjustment, composition, liquidation, disability,
dissolution, death or lack of power of Borrower or Guarantor or any other
Person at any time liable for the payment of all or part of the Liabilities; or
any dissolution of Borrower or Guarantor, or any sale, lease or transfer of any
or all of the assets of Borrower or Guarantor, or any changes in the
shareholders, partners, or members of Borrower or Guarantor;
or any reorganization of Borrower or Guarantor;

(d)           Invalidity of
Liabilities.  The invalidity,
illegality or unenforceability of all or any part of the Liabilities, or any
document or agreement executed in connection with the Liabilities, for any
reason whatsoever, including without limitation the fact that the Liabilities,
or any part thereof, exceed the amount permitted by law, the act of creating
the Liabilities or any part thereof is ultra vires, the officers or representatives executing the
documents or otherwise creating the Liabilities acted in excess of their
authority, the Liabilities violate applicable usury laws, the Borrower has
valid defenses, claims or offsets (whether at law, in equity or by agreement)
which render the Liabilities wholly or partially uncollectible from Borrower,
the creation, performance or repayment of the Liabilities (or the execution,
delivery and performance of any document or instrument representing part of the
Liabilities or executed in connection with the Liabilities, or given to secure
the repayment of the Liabilities) is illegal, uncollectible, legally impossible
or unenforceable, or the Credit Agreement or other documents or
instruments pertaining to the Liabilities
have been forged or otherwise are irregular or not genuine or authentic;

(e)           Release of Obligors.  Any full or partial release of the
liability of Borrower on the Liabilities or any part thereof, of any
co-guarantors, or any other Person 

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now
or hereafter liable, whether directly or indirectly, jointly, severally, or
jointly and severally, to pay, perform, guarantee or assure the payment of the
Liabilities or any part thereof, it being recognized, acknowledged and agreed
by Guarantor that Guarantor may be required to pay the Liabilities in full
without assistance or support of any other Person, and Guarantor has not been
induced to enter into this Guaranty on the basis of a contemplation, belief,
understanding or agreement that other parties other than the Borrower will be
liable to perform the Liabilities, or the Lenders will look to other parties to
perform the Liabilities.

(f)            Other Security.  The taking or accepting of any
other security, collateral or guaranty, or other assurance of payment, for all
or any part of the Liabilities;

(g)           Release of Collateral,
etc.  Any release, surrender,
exchange, subordination, deterioration, waste, loss or impairment (including
without limitation negligent, willful, unreasonable or unjustifiable
impairment) of any collateral, property or security,
at any time existing in connection with, or assuring or securing payment of,
all or any part of the Liabilities;

(h)           Care and Diligence.  The failure of the Lenders or any
other Person to exercise diligence or reasonable care in the preservation,
protection, enforcement, sale or other handling or treatment of all or any part
of such collateral, property or security;

(i)            Status of Liens.  The fact that any collateral,
security, security interest or lien contemplated or intended to be given,
created or granted as security for the repayment of the Liabilities shall not
be properly perfected or created, or shall prove to be unenforceable or
subordinate to any other security interest or lien, it being recognized and
agreed by Guarantor that Guarantor is not entering into this Guaranty in
reliance on, or in contemplation of the benefits of, the validity,
enforceability, collectibility or value of any of the collateral for the Liabilities;

(j)            Payments Rescinded.  Any payment by Borrower to the
Lenders is held to constitute a preference under the bankruptcy laws, or for
any reason the Lenders are required to refund such payment or pay such amount
to Borrower or someone else; or

(k)           Other Actions Taken or
Omitted.  Any other action
taken or omitted to be taken with respect to the Credit Agreement, the
Liabilities, or the security and collateral therefor, whether or not such
action or omission prejudices Guarantor or increases the likelihood that
Guarantor will be required to pay the Liabilities pursuant to the terms hereof;
it being the unambiguous and unequivocal intention of Guarantor that Guarantor
shall be obligated to pay the Liabilities when due, notwithstanding any
occurrence, circumstance, event, action, or omission whatsoever, whether
contemplated or uncontemplated, and whether or not otherwise or particularly
described herein, except for the full and final payment and satisfaction of the
Liabilities.

Section 2.08.  Right of Subrogation and Contribution.

If Guarantor makes a payment in respect of the
Liabilities, it shall be subrogated to the rights of the Lenders against the
Borrower with respect to such payment and shall have the rights 

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of contribution against
the other Subsidiary Guarantors set forth in Section 2.08 of the
Subsidiary Guarantors’ Guaranty; provided that
Guarantor shall not enforce its rights to any payment by way of subrogation or
by exercising its rights of contribution or reimbursement or the right to
participate in any security now or hereafter held by or for the benefit of the
Lenders until the Liabilities have been paid in full.  The Guarantor agrees that after all the
Liabilities have been paid in full that if its then current Net Payments are
less than the amount of its then current Contribution Obligation, Guarantor
shall pay to the other Subsidiary Guarantors an amount (together with any
payments required of the other Subsidiary Guarantors by Section 2.08 of
each other Guaranty) such that the Net Payments made by all Subsidiary
Guarantors in respect of the Liabilities shall be shared among all of the
Subsidiary Guarantors in proportion to their respective Contribution
Percentage.

ARTICLE III

REPRESENTATIONS AND WARRANTIES

Section 3.01.  By Guarantor.

In order to induce the Lenders to accept this
Guaranty, Guarantor represents and warrants to the Lenders (which
representations and warranties will survive the creation of the Liabilities and
any extension of credit thereunder) that:

(a)           Benefit to Guarantor.  Guarantor’s guaranty pursuant to
this Guaranty reasonably may be expected to benefit, directly or indirectly,
Guarantor.

(b)           Existence.  Guarantor is a [limited partnership] duly organized, legally existing and
in good standing under the laws of [the State of Delaware]
and is duly qualified in all jurisdictions wherein the property owned or the
business transacted by it makes such qualification necessary, except where the
failure to be so qualified would not have
a Material Adverse Effect.

(c)           Partnership Power and
Authorization.  Guarantor is
duly authorized and empowered to execute, deliver and perform this Guaranty and
all action on Guarantor’s part requisite for the due execution, delivery and
performance of this Guaranty has been duly and effectively taken.

(d)           Binding Obligations.  This Guaranty constitutes valid
and binding obligations of Guarantor,
enforceable in accordance with its terms (except that enforcement may be
subject to any applicable bankruptcy, insolvency, fraudulent conveyance,
moratorium, or similar laws generally affecting the enforcement of creditors’
rights).

(e)           No Legal Bar or Resultant
Lien.  This Guaranty will not
violate any provisions of Guarantor’s [agreement of limited
partnership], or any contract, agreement, law, regulation, order,
injunction, judgment, decree or writ to which Guarantor is subject, or result
in the creation or imposition of any Lien upon any Properties of Guarantor.

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(f)            No Consent.  Guarantor’s execution, delivery
and performance of this Guaranty does not require the consent or approval of
any other Person, including without limitation any regulatory authority or
governmental body of the United States or any state thereof or any political
subdivision of the United States or any state thereof, except for those
consents and approvals, if any, that have already been obtained.

(g)           Solvency.  The Guarantor hereby represents
that (i) it is not insolvent as of the date hereof and will not be
rendered insolvent as a result of this Guaranty, (ii) it is not
engaged in business or a transaction, or about
to engage in a business or a transaction, for which any property or assets
remaining with such Guarantor is unreasonably small capital, and (iii) it
does not intend to incur, or believe it will incur, debts that will be beyond
its ability to pay as such debts mature.

Section 3.02.  No Representation by Lenders.

Neither the Lenders nor any other Person has made any
representation, warranty or statement to the Guarantor in order to induce the
Guarantor to execute this Guaranty.

ARTICLE IV

SUBORDINATION OF INDEBTEDNESS

Section 4.01.  Subordination of All Guarantor Claims.

As used herein, the term “Guarantor
Claims” shall mean all debts and liabilities of Borrower to Guarantor, whether
such debts and liabilities now exist or are hereafter incurred or arise, or
whether the obligation of Borrower thereon be direct, contingent, primary,
secondary, several, joint and several, or otherwise, and irrespective of
whether such debts or liabilities be evidenced by note, contract, open account,
or otherwise, and irrespective of the person or persons in whose favor such
debts or liabilities may, at their inception, have been, or may hereafter be
created, or the manner in which they have been or may hereafter be acquired by
Guarantor.  The Guarantor Claims shall
include without limitation all rights and claims of Guarantor against Borrower
arising as a result of subrogation or otherwise as a result of Guarantor’s
payment of all or a portion of the Liabilities. 
Until the Liabilities shall be paid and satisfied in full and Guarantor
shall have performed all of its obligations hereunder, except as otherwise not
prohibited by the Credit Agreement, Guarantor shall not receive or collect,
directly or indirectly, from Borrower or any other party any amount upon the
Guarantor Claims.

Section 4.02.  Claims in Bankruptcy.

In the event of receivership, bankruptcy,
reorganization, arrangement, debtor’s relief, or other insolvency proceedings
involving Borrower as debtor, the Lenders shall have the right to prove their
claim in any proceeding, so as to establish its rights hereunder and receive
directly from the receiver, trustee or other court custodian, dividends and
payments which would otherwise be payable upon Guarantor Claims.  Guarantor hereby assigns such dividends and
payments to the Lenders.  Should the
Agent or any Lender receive, for application upon the Liabilities, any such
dividend or payment which is otherwise payable to Guarantor, and which, as
between Borrower and Guarantor, shall constitute a credit upon the Guarantor
Claims, then upon payment in full of the Liabilities, Guarantor shall become
subrogated to the rights of the 

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Lenders to the extent
that such payments to the Lenders on the Guarantor Claims have contributed
toward the liquidation of the Liabilities, and such subrogation shall be with
respect to that proportion of the Liabilities which would have been unpaid if
the Agent or a Lender had not received dividends or payments upon the Guarantor
Claims.

Section 4.03.  Payments Held in Trust.

In the event that notwithstanding Sections 4.01
and 4.02 above, Guarantor should receive any funds, payments, claims or
distributions which is prohibited by such Sections, Guarantor agrees to hold in
trust for the Lenders an amount equal to the amount of all funds, payments,
claims or distributions so received, and agrees that it shall have absolutely
no dominion over the amount of such funds, payments, claims or distributions
except to pay them promptly to the Agent, and Guarantor covenants promptly to
pay the same to the Agent.

Section 4.04.  Liens Subordinate.

Guarantor agrees that any liens, security interests,
judgment liens, charges or other encumbrances upon Borrower’s assets securing
payment of the Guarantor Claims shall be and remain inferior and subordinate to
any liens, security interests, judgment liens, charges or other encumbrances
upon Borrower’s assets securing payment of the Liabilities, regardless of
whether such encumbrances in favor of Guarantor, the Agent or the Lenders
presently exist or are hereafter created or attach.  Without the prior written consent of the
Lenders, Guarantor shall not (a) exercise or enforce any creditor’s right
it may have against the Borrower, or (b) foreclose, repossess, sequester
or otherwise take steps or institute any action or proceeding (judicial or
otherwise, including without limitation the commencement of or joinder in any
liquidation, bankruptcy, rearrangement, debtor’s relief or insolvency
proceeding) to enforce any lien, mortgages, deeds of trust, security interest,
collateral rights, judgments or other encumbrances on assets of Borrower held
by Guarantor.

Section 4.05.  Notation of Records.

All promissory notes, accounts receivable ledgers or
other evidence of the Guarantor Claims accepted by or held by Guarantor shall
contain a specific written notice thereon that the indebtedness evidenced
thereby is subordinated under the terms of this Guaranty.

ARTICLE V

MISCELLANEOUS

Section 5.01.  Successors and Assigns.

This Guaranty is and shall be in every particular
available to the successors and assigns of the Lenders and is and shall always
be fully binding upon the legal representatives, heirs, successors and assigns
of Guarantor, notwithstanding that some or all of the monies, the repayment of
which this Guaranty applies, may be actually advanced after any bankruptcy,
receivership, reorganization, death, disability or other event affecting
Guarantor.

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Section 5.02.  Notices.

Any notice or demand to Guarantor under or in
connection with this Guaranty may be given and shall conclusively be deemed and
considered to have been given and received in accordance with
Section 12.02 of the Credit Agreement, addressed to Guarantor at the
address on the signature page hereof or at such other address provided to the
Agent in writing.

Section 5.03.  Business and Financial Information.

The Guarantor will promptly furnish to the Agent and
the Lenders from time to time upon request such information regarding the
business and affairs and financial condition of the Guarantor and its
subsidiaries as the Agent and the Lenders may reasonably request.

Section 5.04.  Construction.

This Guaranty is a contract made under and shall be
construed in accordance with and governed by the law of the State of New York.

Section 5.05.  Invalidity.

In the event that any one or more of the provisions
contained in this Guaranty shall, for any reason, be held invalid, illegal or
unenforceable in any respect, such invalidity, illegality or unenforceability
shall not affect any other provision of this Guaranty.

Section 5.06.  Entire Agreement.

THIS WRITTEN GUARANTY EMBODIES THE ENTIRE AGREEMENT
AND UNDERSTANDING BETWEEN THE AGENT, THE LENDERS AND THE GUARANTOR AND
SUPERSEDES ALL OTHER AGREEMENTS AND UNDERSTANDINGS BETWEEN SUCH PARTIES
RELATING TO THE SUBJECT MATTER HEREOF AND THEREOF.  THIS WRITTEN GUARANTY REPRESENTS THE FINAL
AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR,
CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES.  THERE ARE NO UNWRITTEN ORAL AGREEMENTS
BETWEEN THE PARTIES.

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WITNESS THE EXECUTION HEREOF, as of the date first
above written.

	
  

  	
  [NAME OF
  GUARANTOR]

  
	
   

  	
   

  
	
   

  	
  By 

  	
   

  	
  ,

  	
   

  
	
   

  	
   

  	
  its General
  Partner

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Title:

  	
   

  	
   

  

 

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[NOTARY IF REQUIRED]

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