Document:

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                                                                    EXHIBIT 10.3

                               SERVICES AGREEMENT

      THIS SERVICES AGREEMENT (this "Agreement"), dated as of December 15, 2004,
is entered into by and among Buckeye Partners, L.P., a publicly traded Delaware
limited partnership (the "Partnership"), Buckeye Pipe Line Company, L.P.
("Buckeye Pipe Line"), Buckeye Pipe Line Holdings, L.P., Everglades Pipe Line
Company, L.P., and Laurel Pipe Line Company, L.P. ("Laurel"), each a Delaware
limited partnership (the "Operating Partnerships"), WOOD RIVER PIPE LINES LLC
and BUCKEYE TERMINALS, LLC, each a Delaware limited liability company (the "LLC
Subsidiaries"), any "Additional Significant Subsidiaries" (as defined in Article
VIII hereof) from time to time parties hereto pursuant to Article VIII hereof
(such Additional Significant Subsidiaries, together with the Partnership, the
LLC Subsidiaries and the Operating Partnerships, collectively, the "Services
Recipients"), and BUCKEYE PIPE LINE SERVICES COMPANY, a Pennsylvania corporation
(the "Provider").

                                   WITNESSETH:

      WHEREAS, Buckeye Pipe Line Company LLC (the "Current General Partner") is
the sole general partner of each of the Partnership and the Operating
Partnerships and deems it in the best interests of the Partnership and the
Operating Partnerships to enter into this Agreement;

      WHEREAS, the LLC Subsidiaries desire to enter into this Agreement;

      WHEREAS, the Current General Partner, the Provider, and Buckeye Management
Company LLC were parties to that certain Services Agreement, dated as of August
12, 1997 and amended and restated as of April 24, 2002 and May 4, 2004 (as so
amended and restated, the "Original Agreement");

      WHEREAS, the parties to the Original Agreement, concurrently with the
execution and delivery hereof, have terminated the Original Agreement and the
Services Recipients desire to engage the Provider to provide certain services to
the Services Recipients in accordance with the terms set forth below; and

      WHEREAS, immediately after the execution and delivery hereof the Current
General Partner will transfer certain rights and interests, including its
general partnership interest in the Partnership and each of the Operating
Partnerships, to Buckeye GP LLC, a Delaware limited liability company (in its
capacity as successor to the Current General Partner as the sole general partner
of the Partnership and each of the Operating Partnerships, the "General
Partner");

      NOW, THEREFORE, the parties hereto, intending to be legally bound hereby,
agree as follows:

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                                   ARTICLE I

                           Engagement of the Provider

      The Services Recipients hereby engage the Provider to provide certain
services in connection with the operation of the business of the Services
Recipients, subject, in the case of the Partnership and the Operating
Partnerships, to the control and oversight of the General Partner, acting in its
role as general partner of the Partnership and the Operating Partnerships, and
the Provider hereby accepts its engagement by the Services Recipients.

                                   ARTICLE II

                                Term of Agreement

      The term of this Agreement (the "Service Term") commences on the date
hereof and shall continue until all principal, interest and premium is paid in
full under the Note Agreement, dated as of May 4, 2004, among the Buckeye Pipe
Line Services Company Employee Stock Ownership Plan Trust (the "ESOP"), The
Prudential Insurance Company of America, Pruco Life Insurance Company and Pruco
Life Insurance Company of New Jersey (the "Note Agreement") and under any
agreements or instruments (each, a "Successor Note Agreement") setting forth the
terms of, or evidencing, any indebtedness incurred by the ESOP in order to
refinance any of the principal, interest or premium outstanding under the Note
Agreement or any preceding Successor Note Agreement, unless earlier terminated
by the Partnership or any of the other Services Recipients for Cause. For
purposes of this Agreement, "Cause" shall mean the failure of the Provider to
comply with the terms and conditions set forth in this Agreement or to follow
the lawful directives of the Services Recipients in connection with the
performance by the Provider of its duties and responsibilities under this
Agreement, as determined by the nonmanagement members of the Board of Directors
of the General Partner, the Boards of Managers of the LLC Subsidiaries or the
Boards of Directors or Boards of Managers of any Additional Significant
Subsidiaries, as applicable, in their sole discretion.

                                  ARTICLE III

                   Duties and Responsibilities of the Provider

      3.1 Duties and Responsibilities. During the Service Term, the Provider
shall perform such duties and responsibilities as are necessary or appropriate
to conduct the day-to-day business operations of the Services Recipients, as are
assigned to the Provider by the Services Recipients (the "Services"), and may
include, but shall not be limited to, the matters listed on Schedule I hereto.
The Services Recipients may from time to time expand, limit or otherwise modify
the Services by timely notice to the Provider in writing. All activities of the
Provider under this Agreement for the Partnership or the Operating Partnerships
shall be performed under the direct supervision of the General Partner in its
capacity as general partner of the Partnership and the Operating Partnerships.

      3.2 Employees. As of August 12, 1997, the Provider employed all employees
then employed by the Current General Partner as employees at will, and offered
such employees

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compensation substantially the same as their then current compensation from the
Current General Partner, subject to annual compensation adjustments in the
ordinary course of business. The Provider assumed all liabilities and acquired
all assets in connection with all current employee benefit plans for the benefit
of such employees, including, without limitation, sponsorship of the ESOP. The
Provider granted each such employee credit for service with the Current General
Partner for all purposes under such employee benefits plans.

      3.3 Officers and Directors. During the Service Term, the persons serving
as the officers and as the Independent Director (as defined in the Articles of
Incorporation of the Provider) of the Provider shall be subject to the approval
of the General Partner, acting in its role as general partner of the Partnership
and the Operating Partnerships, such approval not to be unreasonably withheld
and to be deemed given in the absence of an objection by the General Partner.

      3.4 Equitable Relief. The Provider acknowledges that the provisions of
Section 3.3 are, in view of the nature of this transaction, reasonable and
necessary to protect the legitimate interests of the Services Recipients, and
that any violation of any provision of that Section will result in irreparable
injury to the Services Recipients. The Provider also acknowledges that in the
event of any such violation, the Services Recipients shall be entitled to
preliminary and permanent injunctive relief without the necessity of proving
actual damages, and to an equitable accounting of all earnings, profits and
other benefits arising from any such violation, which rights shall be cumulative
and in addition to any other rights or remedies to which the Services Recipients
may be entitled. The Provider agrees that in the event of any such violation, an
action may be commenced for any such preliminary and permanent injunctive relief
and other equitable relief in the United States District Court for the Eastern
District of Pennsylvania or the state court of competent jurisdiction sitting in
Delaware County or in Lehigh County, Pennsylvania or in any other court of
competent jurisdiction. The Provider hereby waives, to the fullest extent
permitted by law, any objection that the Provider may now or hereafter have to
such jurisdiction or to the laying of the venue of any such suit, action or
proceeding brought in such a court and any claim that such suit, action or
proceeding has been brought in an inconvenient forum. The Provider agrees that
effective service of process may be made upon the Provider under the notice
provisions contained in Section 8.2 of this Agreement.

      3.5 Survival of Covenants. Sections 3.3 and 3.4 shall survive the
termination of this Agreement.

                                   ARTICLE IV

                                    Insurance

      The Services Recipients shall include, or cause to be included, the
Provider as an additional insured under all liability insurance policies
maintained by, or for the benefit of, the Services Recipients. Such policies
shall indemnify the Provider and its officers, directors and employees against
covered claims and expenses which may be incurred by the Provider and its
officers, directors and employees in connection with the activities of the
Services Recipients in accordance with the terms of such policies.

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                                   ARTICLE V

                                  Services Fee

      The Services Recipients (based on the allocation of liability set forth
below) shall pay the Provider a fee for performing its duties and
responsibilities under this Agreement equal to their respective Allocable Share
(as determined in accordance with and defined in Schedule II) of the reasonable
costs and expenses incurred by the Provider which are directly or indirectly
related to the respective businesses or activities of the Services Recipients,
including, without limitation, the following: (i) any amounts related to the
payment of taxes when due related to the business of the Services Recipients or
to the ESOP, (ii) any cash contributions made or to be made by the Provider to
the ESOP pursuant to the terms of the ESOP plan, as necessary for the ESOP to
make all payments of principal, interest, fees and premium due under the Note
Agreement and any Successor Note Agreement (excluding, however, the accelerated
portion of any payments which have become due and payable upon acceleration of
such indebtedness as the result of a default under the Note Agreement or any
Successor Note Agreement) (each, a "top-up contribution"), (iii) cash deposits
made or to be made by the Provider pursuant to an obligation to maintain a
minimum value of collateral pledged to secure the obligations of the ESOP or the
Provider in respect of the Note Agreement or any Successor Note Agreement (each,
a "collateral coverage deposit"), provided, however, that any collateral
coverage deposits that are later withdrawn by the Provider shall only be used to
satisfy obligations of the Services Recipients to pay for Services hereunder,
(iv) any income taxes incurred by the Provider on the sale of limited
partnership units of the Partnership made to satisfy obligations of the Provider
under the ESOP to redeem ESOP accounts of departing employees upon the
termination of their employment, and (v) routine administrative charges and
expenses common to employee stock ownership plans incurred in connection with
the operations of the ESOP, but, in the case of the foregoing clauses (ii)
through (v), only to the extent distributions from limited partnership units of
the Partnership owned by the Provider are not sufficient to make all such
payments. In addition, the Partnership and the Services Recipients shall
reimburse the Provider for all costs and expenses incurred by the Provider in
connection with the formation, capitalization, business or other activities of
the Provider pursuant to this Agreement. The Partnership shall be jointly and
severally liable for its obligations and the obligations of each of the other
Services Recipients under this Article V. Each of such other Services Recipients
(other than Laurel and Buckeye Pipe Line) shall be jointly and severally liable
for its obligations and for those of each of the other Services Recipients under
this Article V. The obligations of Laurel and Buckeye Pipe Line shall each be
several. Except as set forth in this Article V, the Provider will not have the
right to receive any other compensation for performing its duties and
responsibilities under this Agreement.

                                   ARTICLE VI

                                 Indemnification

      The Services Recipients shall jointly and severally indemnify, protect and
hold the Provider and its affiliates harmless from any and all claims, demands,
suits or actions (including attorneys' fees and expenses) which may be asserted
against the Provider arising out of the performance of Services pursuant to this
Agreement or otherwise in connection with the Services Recipients; provided that
the Provider or such affiliate seeking indemnification acted in good

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faith and the act or omission which is the basis of such claim, demand, suit or
action does not involve the gross negligence or willful misconduct of the
Provider or such affiliate.

                                  ARTICLE VII

                      No Interest Conveyed to the Provider

      This Agreement is a services agreement only and does not convey to the
Provider any right, title or interest in or to any assets of the Services
Recipients. This Agreement is not intended to form a joint venture or a
partnership.

                                  ARTICLE VIII

                       Additional Significant Subsidiaries

      The Partnership shall cause any Additional Significant Subsidiary,
concurrently with the formation or acquisition thereof, to become a Services
Recipient by executing and delivering to the other parties hereto a supplement
substantially in the form of Exhibit A attached hereto (a "Supplement"), upon
which any such Additional Significant Subsidiary shall thereafter be a "Services
Recipient" for all purposes under this Agreement. As used in this Article VIII,
"Additional Significant Subsidiary" shall mean any direct or indirect subsidiary
of the Partnership that is hereafter formed or acquired and that, after giving
effect to such formation or acquisition and to any transaction or series of
transactions consummated in connection therewith, would be a "significant
subsidiary" of the Partnership, as such term is defined in Article 1, Rule
1-02(w) of Regulation S-X promulgated under the Securities Act of 1933, as
amended (as such regulation is in effect on the date hereof). Notwithstanding
anything to the contrary contained herein, the Partnership shall not be required
to cause Additional Significant Subsidiaries to become Services Recipients or
execute Supplements to the extent such Additional Significant Subsidiaries would
be prohibited from doing so by applicable law and such prohibition cannot be
removed after expending commercially reasonable efforts in good faith or if the
level of services provided to such Additional Significant Subsidiary would be so
minimal as to make it commercially unreasonable to do so.

                                   ARTICLE IX

                               General Provisions

      9.1 No Third Party Beneficiaries. Except for the parties hereto and the
General Partner, solely in its capacity as general partner of the Partnership
and the Operating Partnerships, no other person or entity shall be entitled to
claim any right or benefit hereunder, including, without limitation, the status
of a third-party beneficiary of this Agreement.

      9.2 Notices. All notices, requests, demands and other communications
required or permitted hereunder shall be in writing and shall be delivered
personally, sent by telecopier, by first class mail or by a nationally
recognized overnight courier, postage prepaid. All such notices, requests,
demands and other communications shall be addressed to the respective parties

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at the addresses set forth below, or to such other address or person as any
party may designate by notice to the other parties in accordance herewith:

If to the Partnership or the            Buckeye Partners, L.P.
Operating Partnerships:                 (or relevant Operating Partnership)
                                        c/o Buckeye GP LLC
                                        Five Radnor Corporate Center
                                        Suite 500
                                        100 Matsonford Road
                                        Radnor, PA 19087
                                        Attn:  President
                                        Telecopier No.:  (610) 254-4625

If to Buckeye Terminals, LLC:           Buckeye Terminals, LLC
                                        5002 Buckeye Road
                                        P.O. Box 368
                                        Emmaus, PA  18049
                                        Attention: President
                                        Telecopier No.:   (610) 254-4625

If to Wood River Pipe Lines LLC:        Wood River Pipe Lines LLC
                                        5002 Buckeye Road
                                        P.O. Box 368
                                        Emmaus, PA  18049
                                        Attention: President
                                        Telecopier No.:   (610) 254-4625

If to the Provider:                     Buckeye Pipe Line Services Company
                                        5002 Buckeye Road
                                        Emmaus, PA 18049
                                        Attn:  President
                                        Telecopier No.:  (610) 770-4549

With a copy to:                         LaSalle Bank, National Association,
                                        Trustee of the Buckeye Pipe Line
                                        Services Company
                                        Employee Stock Ownership Plan Trust
                                        135 South LaSalle Street
                                        Chicago, IL  60674
                                        Attn:  Corporate Trust Department
                                        Telecopier No.:  (312) 904-2446

      9.3 Headings. All article or section headings in this Agreement are for
convenience only and shall not be deemed to control or affect the meaning or
construction of any of the provisions hereof.

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      9.4 Binding Effect. This Agreement shall be binding upon and inure to the
benefit of the parties hereto and their successors but shall not be assignable
except upon the consent in writing of the parties hereto.

      9.5 Integration. This Agreement constitutes the entire agreement among the
parties pertaining to the subject matter hereof and supersedes all prior
agreements and understandings pertaining thereto.

      9.6 Waiver and Amendment. No failure by any party to insist upon the
strict performance of any covenant, duty, agreement or condition of this
Agreement or to exercise any right or remedy consequent upon a breach thereof
shall constitute a waiver of any such breach or of any other covenant, duty,
agreement or condition. Any amendment to this Agreement shall be effective only
if in a writing signed by each of the parties hereto.

      9.7 Counterparts. This Agreement may be executed in any number of
counterparts, all of which together shall constitute one agreement binding on
the parties hereto.

      9.8 Severability. If any provision of this Agreement is or becomes
invalid, illegal or unenforceable in any respect, the validity, legality and
enforceability of the remaining provisions hereof, or of such provision in other
respects, shall not be affected thereby.

      9.9 Applicable Law. This Agreement shall be governed by and construed and
enforced in accordance with the laws of the Commonwealth of Pennsylvania.

      9.10 Successor General Partner. All references in this Agreement to the
"General Partner" shall include any successor to the General Partner as general
partner of the Partnership and the Operating Partnerships.

[signatures follow on next page]

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IN WITNESS WHEREOF, this Agreement has been duly executed by the parties hereto
as of the date first above written.

                  BUCKEYE PARTNERS, L.P.,
                  BUCKEYE PIPE LINE COMPANY, L.P.,
                  BUCKEYE PIPE LINE HOLDINGS, L.P., EVERGLADES PIPE LINE
                  COMPANY, L.P., and
                  LAUREL PIPE LINE COMPANY, L.P.

                  By:  BUCKEYE PIPE LINE COMPANY LLC
                  Their General Partner

                  By: /s/ Robert B. Wallace
                      _________________________________________
                  Name: Robert B. Wallace
                  Title: Sr. Vice President - Finance and Chief
                  Financial Officer

                  BUCKEYE TERMINALS, LLC
                  WOOD RIVER PIPE LINES LLC

                  By: /s/ Robert B. Wallace
                      ____________________________________
                  Name: Robert B. Wallace
                  Title: Sr. Vice President - Finance and Chief
                  Financial Officer

                  BUCKEYE PIPE LINE SERVICES COMPANY

                  By: /s/ Stephen C. Muther
                      ____________________________________
                  Name: Stephen C. Muther
                  Title: Sr. Vice President - Administration,
                  General Counsel and Secretary

                              [Services Agreement]

<PAGE>

                                   Schedule I

      The Services shall include any services necessary for the operation of the
Partnership and the Services Recipients as specified by such and may include,
without limitation, the following services:

            -     facility maintenance services, including preventative
                  maintenance activities and equipment repairs;

            -     operations services, including loading rack operations,
                  product quality control, sampling, blending, engineering,
                  manifold operations, general maintenance, building and grounds
                  maintenance, routine inspection, lab services, mainline
                  maintenance, right of way patrol, right of way clearing, line
                  depth issues, damage prevention program, emergency response,
                  scheduling services, and pipeline control services;

            -     terminal and pipeline marketing services;

            -     technical services, including engineering, safety,
                  environmental and real estate services;

            -     professional services, including legal, accounting, insurance,
                  tax, credit, finance, government affairs, and regulatory
                  affairs.

      Notwithstanding anything to the contrary contained in this Schedule or in
the Agreement, the Provider shall not be obligated under this Agreement to
provide duties performed for the General Partner by certain officers described
in Section 2.01 of the Third Amended and Restated Exchange Agreement, dated as
of December 15, 2004, among Buckeye GP LLC, Buckeye Partners, L.P. and the
Operating Partnerships (the "Exchange Agreement") and will not be entitled under
this Agreement to reimbursement by the Services Recipients for any costs or
expenses related to the performance of such duties performed by the Provider
under any agreement with any third party.

<PAGE>

                                   Schedule II

      The services fee for each Services Recipient shall be allocated by the
General Partner to the Services Recipient. Compensation of employees which work
directly for one Services Recipient shall be directly assigned to such Services
Recipient. All other amounts comprising the services fee shall be allocated by
the General Partner to each Services Recipient based upon such Services
Recipient's pro-rata portion (its "Allocable Share") of the total of the
following amounts (giving equal weight to each factor):

            -     revenues of the Services Recipients;

            -     book value of assets of the Services Recipients (on a gross or
                  net basis, whichever the General Partner deems the most
                  appropriate); and

            -     payroll of employees directly assigned to individual Services
                  Recipients.

      The General Partner shall be entitled to use its good faith judgment in
calculating the foregoing factors, including in determining the date or period
of determination of the factors. For the avoidance of doubt, the revenues, book
value of assets and payroll of any Services Recipient that is a direct or
indirect subsidiary of one or more other Services Recipient(s) shall not be
included in the calculation of the revenues, book value or assets of such other
Services Recipient(s).

<PAGE>

                                                                       EXHIBIT A

                                   SUPPLEMENT

      THIS SUPPLEMENT (this "Supplement"), dated as of _______, 20__ is made by
________, a __________ (the "Additional Significant Subsidiary"), in favor of
the parties to the below-described Services Agreement.

      WHEREAS, pursuant to the Services Agreement, dated as of December 15,
2004, by and among Buckeye Partners, L.P. (the "Partnership"), Buckeye Pipe Line
Company, L.P., Buckeye Pipe Line Holdings, L.P., Everglades Pipe Line Company,
L.P., Laurel Pipe Line Company, L.P., Wood River Pipe Lines LLC, Buckeye
Terminals, LLC and Buckeye Pipe Line Services Company (as amended, restated,
supplemented or otherwise modified from time to time, the "Services Agreement"),
the Partnership is required to cause the Additional Significant Subsidiary to
execute and deliver this Supplement in order to cause the Additional Significant
Subsidiary to become a Services Recipient (as such term is defined in the
Services Agreement) under the Services Agreement; and

      WHEREAS, the Additional Significant Subsidiary will receive substantial
benefit from joining in the Services Agreement as aforesaid;

      NOW THEREFORE, in consideration of the foregoing and other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the Additional Significant Subsidiary hereby joins in the Services
Agreement and becomes a Services Recipient (as such term is defined in the
Services Agreement) for all purposes thereunder.

      Notice of acceptance of this Supplement and of the Services Agreement, as
supplemented hereby, is hereby waived by the Additional Significant Subsidiary.

      The address for notices and other communications to be delivered to the
Additional Significant Subsidiary pursuant to Section 9.2 of the Services
Agreement is set forth below.

      IN WITNESS WHEREOF, the undersigned Additional Significant Subsidiary has
caused this Supplement to be duly executed and delivered as of the day and year
first above written.

                                        ________________________________________
                                        a_______________________________________

                                        By:_____________________________________
                                           Name:
                                           Title:

Address for Notices:

____________________

____________________

____________________

____________________

                                       2<PAGE>

                                                                    EXHIBIT 10.4

                  THIRD AMENDED AND RESTATED EXCHANGE AGREEMENT

      THIS THIRD AMENDED AND RESTATED EXCHANGE AGREEMENT (this "Agreement"),
dated as of December 15, 2004, is entered into among MainLine Sub LLC, a
Delaware limited liability company ("Holdco"), BUCKEYE GP LLC, a Delaware
limited liability company (the "General Partner"), BUCKEYE PARTNERS, L.P., a
Delaware limited partnership (the "Partnership"), BUCKEYE PIPE LINE COMPANY,
L.P., a Delaware limited partnership ("BPLCLP"), LAUREL PIPE LINE COMPANY, L.P.,
a Delaware limited partnership ("Laurel"), EVERGLADES PIPE LINE COMPANY, L.P., a
Delaware limited partnership ("Everglades"), and BUCKEYE PIPE LINE HOLDINGS,
L.P., a Delaware limited partnership (collectively with BPLCLP, Laurel, and
Everglades, the "Operating Partnerships").

                                   WITNESSETH:

      WHEREAS, Buckeye Pipe Line Company LLC, a Delaware limited liability
company (the "Former GP"), Buckeye Management Company LLC, a Delaware limited
liability company ("BMC"), Glenmoor LLC, a Delaware limited liability company
("Glenmoor"), the Partnership and the Operating Partnerships entered into the
Exchange Agreement, dated as of August 12, 1997 (the "Original Agreement"), the
transactions contemplated by which were consummated on such date effective as of
11:59 P.M.;

      WHEREAS, the Original Agreement was (i) amended and restated in its
entirety on May 2, 2002 and (ii) further amended and restated as of May 4, 2004
(as so amended and restated, the "Prior Agreement");

      WHEREAS, the Partnership is governed pursuant to an Amended and Restated
Agreement of Limited Partnership (the "Master Partnership Agreement"), dated as
of December 15, 2004, between the General Partner and the limited partners of
the Partnership (the "Limited Partners"), as amended; the Operating
Partnerships, are governed pursuant to similar Amended and Restated Agreements
of Limited Partnership, each dated as of December 15, 2004, as amended, between
the General Partner and the Partnership (collectively, the "Operating
Partnership Agreements");

      WHEREAS, in connection with the Original Agreement, the Partnership (i)
issued limited partnership units of the Partnership ("LP Units") to Buckeye Pipe
Line Services Company, a Pennsylvania corporation (the "Company") whose shares
of capital stock are owned by the Buckeye Pipe Line Services Company Employee
Stock Ownership Plan Trust, (referred to herein as the "ESOP"), in exchange for
shares of Glenmoor stock (the "Exchange Shares"), and (ii) contributed an
undivided interest in the Exchange Shares to the Operating Partnerships as of
the date of the Original Agreement;

      WHEREAS, the Operating Partnerships transferred and assigned the Exchange
Shares to the Former GP as of the date of the Original Agreement in exchange for
the release of certain obligations that the Partnership had to BMC (as the
former general partner of the Partnership) and the Former GP, and the Operating
Partnerships had to the Former GP; Glenmoor and BMC caused the Former GP to
receive the Exchange Shares and to release such obligations of the Partnership
and the Operating Partnerships; and the Exchange Shares were further transferred
by the Former GP to BMC and by BMC to Glenmoor;

<PAGE>

      WHEREAS, the Former GP was the general partner of the Partnership and the
Operating Partnerships, and pursuant to a Contribution, Assignment and
Assumption Agreement dated December 15, 2004, assigned its general partner
interests in the Partnership and the Operating Partnerships and all its right,
title and interest in the Prior Agreement, to Buckeye GP LLC (the "Assignment
Agreement");

      WHEREAS, Holdco is the successor of the merger of BMC and the Former GP
with and into Glenmoor, which simultaneously with such merger changed its name
to MainLine Sub LLC; and

      WHEREAS, the parties to the Prior Agreement desire to amend and restate
the Prior Agreement in its entirety to reflect the organizational changes
recited above.

      NOW, THEREFORE, the parties hereto, intending to be legally bound, hereby
agree as follows:

                                   ARTICLE I
                                  THE EXCHANGE

      Upon the terms and subject to the conditions of this Agreement, the
Operating Partnerships have transferred and assigned the Exchange Shares to the
Former GP in exchange for the release of certain obligations of the Partnership
to BMC (as the former general partner of the Partnership) and the Former GP, and
of the Operating Partnerships to the Former GP, as set forth in Article II
below.

                                   ARTICLE II
                             RELEASE OF OBLIGATIONS

      2.01 Obligations to Reimburse for Executive Compensation. (a) Upon the
terms and subject to the conditions of this Agreement, the General Partner, for
itself and its affiliates, successors and assigns, hereby and irrevocably
releases, relinquishes and discharges the Partnership and the Operating
Partnerships from any and all liability, obligation, claim, demand, action or
suit of any kind or nature, in law or in equity, whatsoever, known or unknown,
which may be asserted for or on account of or arising out of or in any manner
relating to the Partnership's and/or the Operating Partnerships' obligations
pursuant to Section 7.4(b) of the Master Partnership Agreement and the Operating
Partnership Agreements or otherwise to reimburse the General Partner for total
compensation, including all benefits, paid for the four highest salaried
officers performing duties for the General Partner with respect to the functions
of operations, finance, legal, marketing and business development, treasury, or
performing the function of President of the General Partner following the date
of the Original Agreement. Nothing in this Section 2.01(a) shall be deemed to
waive the obligations of the Partnership and the Operating Partnerships to
reimburse the General Partner for (i) employee fringe benefits and retirement
benefits for their executives relating to services performed prior to the date
of the Original Agreement, (ii) obligations under severance agreements with
their executives to the extent currently reimbursable under the Master
Partnership Agreement or (iii) any obligations in respect of their executives
which are not related to compensation, including, without limitation,
indemnification obligations.

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<PAGE>

            (b) Holdco and the General Partner agree, unless the General Partner
is removed as general partner of the Partnership to perform the executive level
functions referred to in Section 2.01(a) for the benefit of the Partnership and
the Operating Partnerships in a manner satisfactory to the board of directors of
the General Partner.

      2.02 ESOP Obligations Generally. As of the date of this Agreement, Holdco
acknowledges that it has received all reimbursements due to it from the
Partnership and the Operating Partnerships pursuant to the terms of the Prior
Agreement in respect of (i) cash contributions made or to be made by the Company
to the ESOP pursuant to the terms of the ESOP trust agreement, as necessary for
the ESOP to make all payments of principal, interest and premium due under the
Note Agreement, dated as of May 4, 2004, among the ESOP, The Prudential
Insurance Company of America, Pruco Life Insurance Company and Pruco Life
Insurance Company of New Jersey (the "Note Agreement"), (ii) cash deposits made
or to be made by the Company pursuant to an obligation to maintain a minimum
value of collateral pledged to secure the obligations of the ESOP or the Company
in respect of the Note Agreement, (iii) income taxes incurred by the Company on
the sale of LP Units made to satisfy the redemption obligations described in
Section 2.03 below, and (iv) routine administrative charges and expenses common
to employee stock ownership plans incurred in connection with the operation of
the ESOP. Each of Holdco and the General Partner hereby release, relinquish and
discharge the Partnership and the Operating Partnerships from any and all
further liability, obligation, claim, demand, action or suit of any kind or
nature, in law or in equity, whatsoever, known or unknown, which may be asserted
for or on account of or arising out of or in any manner relating to the
foregoing obligations under the Prior Agreement.

      2.03 No ESOP Contributions for Departing Employees. Holdco and the General
Partner acknowledge that neither the Partnership nor the Operating Partnerships
shall be obligated to reimburse Holdco or the General Partner for obligations to
redeem the ESOP accounts of departing employees upon the termination of their
employment with the Company, or for any other costs or expenses of or relating
to the operation of the ESOP other than those specified in Section 2.02(a)
above.

      2.04 Representations and Warranties. Holdco and the General Partner hereby
represent and warrant to the Partnership and the Operating Partnerships, as of
the date of the Original Agreement, that (a) neither the Company nor any entity
treated as a single employer with the Company under Sections 414(b), 414(c),
414(m), or 414(o) of the Internal Revenue Code of 1986, as amended (the "Code"),
or Section 4001(b) of the Employee Retirement Income Security Act of 1974, as
amended ("ERISA"), has incurred any liability under any provision of ERISA or
other applicable law relating to the ESOP; (b) the ESOP has been administered,
in all material respects, in compliance with its terms and complies, both in
form and operation, with the applicable provisions of ERISA (including, without
limitation, the funding and prohibited transactions provisions thereof), the
Code and other applicable laws; and (c) the ESOP has been determined by the
Internal Revenue Service to be qualified within the meaning of Section 401 of
the Code, and neither Holdco nor the General Partner is aware of any fact or
circumstances which would adversely affect the qualified status of the ESOP.

                                       3

<PAGE>

                                  ARTICLE III
                       AGREEMENT TO ACT AS GENERAL PARTNER

      3.01 Failure to Act as General Partner Over the ESOP Period. Except to the
extent this obligation is assumed by a successor general partner pursuant to
Section 3.02, the General Partner shall continue to serve as the general partner
of the Partnership and the Operating Partnerships until all principal, interest
and premium is paid in full under the Note Agreement and under any agreements or
instruments replacing the Note Agreements have been repaid, unless the
Partnership shall be sooner dissolved under Section 14.1(d) of the Master
Partnership Agreement. Each Party hereto hereby (i) consents to the transactions
set forth in the Assignment Agreement, including the assignment of all general
partner interests in the Partnership and the Operating Partnerships by the
Former GP to the General Partner, and (ii) agrees that the consummation of such
transactions did not violate any provision of the Prior Agreement.

      3.02 Assumption of Obligations by a Successor General Partner. If the
General Partner is removed as general partner of the Partnership or one or more
of the Operating Partnerships during the ESOP Period, (but not if the General
Partner voluntarily withdraws as general partner) pursuant to Section 13.1(b) of
the Master Partnership Agreement or if the General Partner transfers its general
partner interests in the Partnership or the Operating Partnerships pursuant to
Section 11.1 of the Master Partnership Agreement, the General Partner may cause
the successor general partner of the Partnership and the Operating Partnerships
to assume its respective obligations, liabilities and duties under this
Agreement.

                                   ARTICLE IV
                               GENERAL PROVISIONS

      4.01 Entire Agreement. This Agreement supersedes all prior discussions and
agreements among the parties hereto with respect to the subject matter hereof
and contains the sole and entire agreement among the parties hereto with respect
to the subject matter hereof.

      4.02 Headings. The headings used in this Agreement have been inserted for
convenience of reference only and do not define or limit the provisions hereof.

      4.03 Waiver and Amendment. No failure by any party to insist upon the
strict performance of any covenant, duty, agreement or condition of this
Agreement or to exercise any right or remedy consequent upon a breach thereof
shall constitute a waiver of any such breach or of any other covenant, duty,
agreement or condition. Any amendment to this Agreement shall be effective only
if in a writing signed by each of the parties hereto.

      4.04 Severability. If any provision of this Agreement is or becomes
invalid, illegal or unenforceable in any respect, the validity, legality and
enforceability of the remaining provisions hereof, or of such provision in other
respects, shall not be affected thereby.

      4.05 Governing Law. This Agreement shall be governed by and construed in
accordance with the laws of the State of Delaware applicable to a contract
executed and performed in such State, without giving effect to the conflicts of
laws principles thereof.

                                       4

<PAGE>

      4.06 Counterparts. This Agreement may be executed in any number of
counterparts, each of which will be deemed an original, but all of which
together will constitute one and the same instrument.

                        [signatures follow on next page]

                                       5

<PAGE>

            IN WITNESS WHEREOF, each party hereto has caused this Agreement
amending and restating the Prior Agreement to be signed by its officer duly
authorized as of the date first above written.

                      MAINLINE SUB LLC

                      By: /s/ Robert B. Wallace
                          _____________________________________
                      NAME: Robert B. Wallace
                      TITLE: Senior Vice President, Finance,
                      and Chief Financial Officer

                      BUCKEYE GP LLC

                      By: /s/ Robert B. Wallace
                          _____________________________________
                      NAME: Robert B. Wallace
                      TITLE: Senior Vice President, Finance,
                      and Chief Financial Officer

                      BUCKEYE PARTNERS, L.P.

                      By:  BUCKEYE GP LLC,
                      AS GENERAL PARTNER

                      By: /s/ Stephen C. Muther
                          _____________________________________
                      NAME: Stephen C. Muther
                      TITLE: Senior Vice President, Administration, General
                      Counsel and Secretary

                      BUCKEYE PIPE LINE COMPANY, L.P.

                      By:  BUCKEYE GP LLC,
                      AS GENERAL PARTNER

                      By: /s/ Stephen C. Muther
                          _____________________________________
                      NAME: Stephen C. Muther
                      TITLE: Senior Vice President, Administration, General
                      Counsel and Secretary

                      [SIGNATURES CONTINUE ONTO NEXT PAGE]

                 [Third Amended and Restated Exchange Agreement]

<PAGE>

                    [SIGNATURES CONTINUED FROM PREVIOUS PAGE]

                      LAUREL PIPE LINE COMPANY, L.P.

                      BY:  BUCKEYE GP LLC,
                      AS GENERAL PARTNER

                      By:  /s/ Stephen C. Muther
                           _____________________________________
                      NAME: Stephen C. Muther
                      TITLE: Senior Vice President, Administration, General
                      Counsel and Secretary

                      EVERGLADES PIPE LINE COMPANY, L.P.

                      By:  BUCKEYE GP LLC,
                      AS GENERAL PARTNER

                      By: /s/ Stephen C. Muther
                          _____________________________________
                      NAME: Stephen C. Muther
                      TITLE: Senior Vice President, Administration, General
                      Counsel and Secretary

                      BUCKEYE PIPE LINE HOLDINGS, L.P.

                      By:  BUCKEYE GP LLC,
                      AS GENERAL PARTNER

                      By: /s/ Stephen C. Muther
                          _____________________________________
                      NAME: Stephen C. Muther
                      TITLE: Senior Vice President, Administration, General
                      Counsel and Secretary

                 [Third Amended and Restated Exchange Agreement]

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