Document:

Exhibit 10.11

 

FORM OF 

FOURTH AMENDED AND RESTATED EXCHANGE AGREEMENT

THIS FOURTH AMENDED AND RESTATED EXCHANGE AGREEMENT
(this “Agreement”), dated as of _________,
2006, 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”),
MAINLINE L.P., a Delaware limited partnership (the “OLP GP”), 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 amended and restated in
its entirety on May 2, 2002, as of May 4, 2004 and as of December 15,
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 _________,
2006, 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 _________, 2006,
as amended, between the OLP GP 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)

 

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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;

WHEREAS, the General Partner was the general partner of the
Operating Partnerships, and pursuant to an Assignment and Assumption Agreement
dated _________, 2006, assigned
its general partner interests in the Operating Partnerships and all its right,
title and interest in the Prior Agreement, to the extent relating to the role
of general partner of the Operating Partnerships, to the OLP GP (the “Assignment
Agreement”); 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 and the OLP GP, for themselves and their affiliates, successors
and assigns, hereby and irrevocably release, relinquish and discharge 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, the OLP GP or their affiliates 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 and the OLP GP 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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(b)           Holdco,
the General Partner and the OLP GP 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
December 15, 2004, 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, the General
Partner and the OLP GP 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, the General Partner and the OLP GP acknowledge that neither the
Partnership nor the Operating Partnerships shall be obligated to reimburse
Holdco, the General Partner or the OLP GP 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, the General
Partner and the OLP GP 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 none of Holdco,
the General Partner or the OLP GP is aware of any fact or circumstances which
would adversely affect the qualified status of the ESOP.

 

3

 

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(s) pursuant to Section 3.02, the General
Partner and the OLP GP shall continue to serve as the general partner of the
Partnership and the Operating Partnerships, respectively, 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
Operating Partnerships by the General Partner to the OLP GP, 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 or the OLP GP is
removed as general partner of the Partnership or one or more of the Operating
Partnerships, respectively, during the ESOP Period (but not if the General
Partner or the OLP GP voluntarily withdraws as general partner) pursuant to
Section 13.1(b) of the Master Partnership Agreement, or if the General Partner
or the OLP GP 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 or the OLP GP may cause the successor general
partner of the Partnership and the Operating Partnerships, respectively, 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.

 

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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]

 

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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:

  	
   

  
	
   

  	
  Name: Robert B. Wallace

  
	
   

  	
  Title: Senior Vice President, Finance,

  
	
   

  	
  and Chief Financial Officer

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  BUCKEYE GP LLC

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name: Robert B. Wallace

  
	
   

  	
  Title: Senior Vice President, Finance,

  
	
   

  	
  and Chief Financial Officer

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  MAINLINE L.P.

  
	
   

  	
   

  	
   

  
	
   

  	
  By: MAINLINE GP, INC.,

  
	
   

  	
  as General Partner

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  BUCKEYE PARTNERS, L.P.

  
	
   

  	
   

  	
   

  
	
   

  	
  By: BUCKEYE GP LLC,

  
	
   

  	
  as General Partner

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name: Stephen C. Muther

  
	
   

  	
  Title: Senior Vice President, Administration, General
  Counsel and Secretary

  
					

 

 

 

	
   

  	
   

  	
   

  
	
   

  	
  BUCKEYE PIPE LINE COMPANY, L.P.

  
	
   

  	
   

  	
   

  
	
   

  	
  By: MAINLINE L.P.,

  
	
   

  	
  as General Partner

  
	
   

  	
   

  	
   

  
	
   

  	
  By: MAINLINE GP, INC.,

  
	
   

  	
  as General Partner

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name: Stephen C. Muther

  
	
   

  	
  Title: Senior Vice President, Administration,
  General Counsel and Secretary

  
	
   

  	
   

  	
   

  
				

 

[SIGNATURES CONTINUE ONTO NEXT
PAGE]

 

 

 

[SIGNATURES CONTINUED FROM
PREVIOUS PAGE]

 

	
   

  	
  LAUREL PIPE LINE COMPANY, L.P.

  
	
   

  	
   

  	
   

  
	
   

  	
  By: MAINLINE L.P.,

  
	
   

  	
  as General Partner

  
	
   

  	
   

  	
   

  
	
   

  	
  By: MAINLINE GP, INC.,

  
	
   

  	
  as General Partner

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name: Stephen C. Muther

  
	
   

  	
  Title: Senior Vice President, Administration, General
  Counsel and Secretary

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  EVERGLADES PIPE LINE COMPANY, L.P.

  
	
   

  	
   

  	
   

  
	
   

  	
  By: MAINLINE L.P.,

  
	
   

  	
  as General Partner

  
	
   

  	
   

  	
   

  
	
   

  	
  By: MAINLINE GP, INC.,

  
	
   

  	
  as General Partner

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name: Stephen C. Muther

  
	
   

  	
  Title: Senior Vice President, Administration, General
  Counsel and Secretary

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  BUCKEYE PIPE LINE HOLDINGS, L.P.

  
	
   

  	
   

  	
   

  
	
   

  	
  By: MAINLINE L.P.,

  
	
   

  	
  as General Partner

  
	
   

  	
   

  	
   

  
	
   

  	
  By: MAINLINE GP, INC.,

  
	
   

  	
  as General Partner

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name: Stephen C. Muther

  
	
   

  	
  Title: Senior Vice President, Administration, General
  Counsel and SecretaryExhibit 10.25

Form of

UNIT AGREEMENT

THIS UNIT AGREEMENT (this
“Agreement”) is made as of ________, 2006, by and among Buckeye GP
Holdings L.P., a Delaware limited partnership (the “Partnership”), and
Stephen C. Muther (“Executive”). 
Certain definitions are set forth in Section 5 of this
Agreement.

WHEREAS, pursuant to the
terms of a Contribution, Conveyance and Assumption Agreement, dated as of the
date hereof (the “Contribution Agreement”), the Partnership shall issue
to Executive 122,590 Common Units on the terms and subject to the conditions
set forth herein and in the Contribution Agreement;

WHEREAS, in accordance
with past practice, Executive shall continue to be an employee of, and receive
benefits through, Buckeye Pipe Line Services Company (“Services”).  For purposes of this Agreement, Executive’s
employment by, and provision of services to, Services shall be deemed the
employment by, and provision of services to, the Partnership; and

WHEREAS, in consideration
of Executive’s continued employment by the Partnership or one or more
Subsidiaries or Affiliates of the Partnership and the contribution of Class B
Units in MainLine L.P., a Delaware limited partnership (“MainLine”), to
the Partnership pursuant to the Contribution Agreement, the Partnership shall
issue to the Executive, 284,000 Management Units in the Partnership to the
Executive.

NOW, THEREFORE, in
consideration of the mutual covenants contained herein and other good and
valuable consideration, the receipt and sufficiency of which are hereby acknowledged,
the parties to this Agreement, intending to be legally bound, hereby agree as
follows:

1.             Issuance of Executive Units.

(a)           Upon the closing of the transactions
contemplated in the Contribution Agreement the Partnership will issue 122,590
Common Units and 284,000 Management Units to Executive, in consideration of the
contributions set forth in the Contribution Agreement and Executive’s continued
performance as an employee of the Partnership or one or more Subsidiaries or
Affiliates of the Partnership.  The
Management Units acquired pursuant to this Section 1(a) shall be
subject to the vesting schedule set forth in Section 2 below.

(b)           In connection with the acquisition of
the Executive Units hereunder, Executive represents and warrants to the Partnership:

(i)            The Executive Units to be acquired
by Executive pursuant to this Agreement will be acquired for Executive’s own
account and not with a view to, or intention of, distribution thereof in
violation of the Securities Act, or any applicable state securities laws, and
the Executive Units will not be disposed of in contravention of the Securities
Act or any applicable state securities laws.

 

 

(ii)           Executive is an executive officer of
the Partnership or a Subsidiary or Affiliate thereof, is sophisticated in
financial matters and is able to evaluate the risks and benefits of decisions
respecting the investment in the Executive Units.

(iii)          Executive is able to bear the economic
risk of his investment in the Executive Units for an indefinite period of time
because the Executive Units have not been registered under the Securities Act,
and, therefore, cannot be sold unless subsequently registered under the
Securities Act or an exemption from such registration is available.

(iv)          Executive has had an opportunity to
ask questions and receive answers concerning the terms and conditions of the
offering of the Executive Units and has had full access to such other
information concerning the Partnership as he, she or it has requested.

(v)           Executive has received and read a
copy of the Partnership Agreement.  This
Agreement, the Partnership Agreement, the Contribution Agreement and each of
the other agreements contemplated hereby and thereby constitute the legal,
valid and binding obligation of Executive, enforceable in accordance with their
terms, and the execution, delivery and performance of this Agreement, the
Partnership Agreement, the Contribution Agreement and the other agreements
contemplated hereby and thereby by Executive do not and will not conflict with,
violate or cause a breach of any agreement, contract or instrument to which
Executive is a party or any judgment, order or decree to which Executive is
subject or create any conflict of interest with the Partnership, any Affiliate
thereof, or its or their present or former customers.

(vi)          Executive is a resident of the
Commonwealth of Pennsylvania.

(c)           As an inducement to the Partnership
to issue the Executive Units to Executive, and as a condition thereto,
Executive acknowledges and agrees that:

(i)            neither the
issuance of the Executive Units to Executive nor any provision contained herein
shall entitle Executive to remain in the employment of the Partnership and its
Subsidiaries or Affiliates or affect the right of the Partnership to terminate
Executive’s employment at any time; and

(ii)           Executive has read
and understands Exhibit A attached
hereto, setting forth certain risks associated with Executive’s acquisition of
the Executive Units.

(d)           Upon Executive’s receipt of Executive
Units, Executive will execute and deliver to the Partnership a joinder
agreement to the Partnership Agreement in the form of Exhibit B attached hereto.

2.             Vesting of Management Units.

(a)           70% of the Management Units shall be
vested upon the date hereof.  The
remaining 30% of the Management Units will become vested in accordance with the
following

 

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schedule, if as of each such date the Executive is
still employed by the Partnership or any of its Subsidiaries or Affiliates:

	
  Date

  	
   

  	
  Percentage of Management

  Units to be Vested

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  May 4, 2007

  	
   

  	
  10

  	
  %

  
	
  May 4, 2008

  	
   

  	
  10

  	
  %

  
	
  May 4, 2009

  	
   

  	
  10

  	
  %

  

 

If Executive ceases to be
employed by the Partnership or any of its Subsidiaries or Affiliates at any
time after the date hereof all vesting shall cease.  If Executive ceases to be employed by the
Partnership or any of its Subsidiaries at or Affiliates other than on a date
set forth above, then a portion of the 10% subject to vesting on the next May
4th will vest, determined on a pro-rata basis according to the
number of days that have elapsed since the prior anniversary date set forth in
the table above immediately preceding the date of termination of Executive’s
employment.

(b)           Upon the occurrence of a Sale of the
Partnership, all unvested Management Units, other than any unvested Management
Units with respect to which a Repurchase Notice or Supplemental Repurchase
Notice has been delivered to Executive if Executive is no longer employed by
the Partnership or any of its Subsidiaries or Affiliates at such time, shall
become vested at the time (and immediately prior to the consummation) of such
event.

(c)           Common Units and the Management Units
which have become vested pursuant to the above schedules are referred to herein
as “Vested Units,” and all other Executive Units are referred to herein
as “Unvested Units.”

3.             Forfeiture.  In the event Executive ceases to be employed
by the Partnership or any of its Subsidiaries or Affiliates for any reason (a “Termination”),
any unvested Management Units shall be forfeited.

4.             Restrictions on Transfer of
Executive Units; Registration of Units.

(a)           Retention of Executive Units. 
Executive (and any other holder of Executive Units) shall not Transfer
any interest in any Executive Units, except pursuant to, and to the extent
otherwise permitted by the Partnership Agreement and applicable law, and in
compliance with the additional restrictions set forth in this Section 4.

(b)           Additional
Restrictions on Certain Permitted Transfers.  Executive may Transfer Executive Units pursuant
only in accordance with the terms of the Partnership Agreement; provided
that Executive may only transfer unvested Management Units only for estate
planning purposes and if the transferee or transferees of such unvested
Management Units shall have agreed in writing to be bound by the terms and
conditions of this Agreement (as it relates to the Management Units) and to
execute and deliver to the Partnership (x) an

 

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acknowledgment that such prospective transferee shall
be bound by the provisions of this Agreement relating to Executive Units, and
(y) an acknowledgment that such prospective transferee shall be bound by the
restrictions and conditions herein and therein; provided, further, that
the additional restrictions set forth in the foregoing proviso shall cease to
apply when such unvested Management Units become vested.

(c)           Termination of Additional
Restrictions.  The additional
restrictions on the Transfer of Executive Units set forth in this Section 4
will terminate on a Sale of the Partnership to the extent not previously
terminated in accordance with the terms hereof.

(d)           Legend.  The certificates representing the Executive
Units, to the extent certificated, will bear a legend in substantially the following
form:

“THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933,
AS AMENDED (THE “SECURITIES ACT”), AND MAY NOT BE OFFERED OR SOLD, UNLESS IT
HAS BEEN REGISTERED UNDER THE SECURITIES ACT OR UNLESS AN EXEMPTION FROM
REGISTRATION IS AVAILABLE (AND, IN SUCH CASE, AN OPINION OF COUNSEL REASONABLY
SATISFACTORY TO THE PARTNERSHIP SHALL HAVE BEEN DELIVERED TO THE PARTNERSHIP TO
THE EFFECT THAT SUCH OFFER OR SALE IS NOT REQUIRED TO BE REGISTERED UNDER THE
SECURITIES ACT).  THIS SECURITY IS SUBJECT
TO CERTAIN RESTRICTIONS ON TRANSFER SET FORTH IN THE FIRST AMENDED AND RESTATED
AGREEMENT OF LIMITED PARTNERSHIP  OF THE
PARTNERSHIP DATED AS OF ______________, 2006, AS AMENDED, A COPY OF WHICH MAY
BE OBTAINED FROM THE PARTNERSHIP AT ITS PRINCIPAL EXECUTIVE OFFICES.”

(e)           Holdback Agreement.  Each holder of Executive Units shall not
effect any sale or distribution (including sales pursuant to Rule 144
promulgated under the Securities Act) of equity securities of the Partnership
or its Subsidiaries, or any securities convertible into or exchangeable or
exercisable for such securities, during the period designated by the managing
underwriters before and after any underwritten registered public offering of
the Partnership’s or any of its Subsidiaries’ securities, unless the
underwriters managing the registered public offering and the Partnership
otherwise agree.

(f)            Registration Rights Under
Partnership Agreement.  All holders
of Executive Units, to the extent such holders are Affiliates (as defined in
the Partnership Agreement), Initial Limited Partners (as defined in the
Partnership Agreement) or their transferees, are entitled to the benefits of
Section 7.13 of the Partnership Agreement.

5.             Certain Definitions.

“Affiliate” of any
particular person or entity means any other person or entity controlling,
controlled by or under control with such particular person or entity.  For purposes of this Agreement, Services is
deemed to be an Affiliate of the Partnership.

 

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“Common Units”
means the Common Units of the Partnership as defined in the Partnership
Agreement.

 “Executive Units” means all Common
Units and Management Units acquired by Executive hereunder and under the
Contribution Agreement.  “Executive Units”
will continue to be Executive Units in the hands of any holder other than
Executive (except for the Partnership and transferees in a Public Sale), and
except as otherwise provided herein or in the Partnership Agreement, each such
other holder of Executive Units will succeed to all rights and obligations
attributable to Executive as a holder of Executive Units hereunder.  Executive Units will also include units of
the Partnership issued with respect to Executive Units by way of a unit split,
dividend, exchange or other recapitalization. 
Notwithstanding the foregoing, all Unvested Units shall remain Unvested
Units after any Transfer thereof, to the extent any Transfer is permitted
hereunder.

“General Partner”
means the Partnership’s general partner pursuant to the terms of the
Partnership Agreement.

“Management Units”
means the Management Units of the Partnership as defined in the Partnership
Agreement.

“Partnership Agreement”
means the Amended and Restated Agreement of Limited Partnership of the
Partnership, to be dated as of the closing of the Offering (as defined in the
Contribution Agreement), a form of which has been delivered to the Executive,
as amended from time to time in accordance with its terms.

“Person” means an
individual, a partnership, a limited liability company, a corporation, an
association, a joint stock company, a trust, a joint venture, an unincorporated
organization and a governmental entity or any department, agency or political
subdivision thereof.

“Public Offering”
means the sale in an underwritten public offering registered under the
Securities Act of any of the Partnership’s securities  approved by the General Partner.

“Public Sale”
means (i) any sale pursuant to a registered public offering under the
Securities Act or (ii) any sale to the public pursuant to Rule 144 promulgated
under the Securities Act effected through a broker, dealer or market maker.

“Sale of the
Partnership” means the sale of the Partnership to a third party or group of
third parties acting in concert, pursuant to which such party or parties
acquire (i) all or substantially all of the equity securities of the
Partnership or (ii) all or substantially all of the Partnership’s assets
determined on a consolidated basis (in either case, whether by merger,
consolidation, recapitalization, transfer of equity securities or otherwise); provided
that, in any event, the term “Sale of the Partnership” shall include Carlyle/Riverstone
BPL Holdings II, L.P. (“C/R”) as of the date hereof and its Permitted
Transferees (as defined in the partnership agreement of MainLine as in effect
on the date hereof) collectively ceasing to hold at least 20% of the Common
Units held by C/R as of the date hereof; and provided  further
that the term “Sale of the Partnership” shall not include a Public Offering, or
any sale of equity or debt securities by the Partnership in a private or public
offering to other investors selected by the General Partner.

 

5

 

“Securities Act”
means the Securities Act of 1933, as amended from time to time.

“Securities and
Exchange Commission” shall include any successor thereto.

“Subsidiary”
means, with respect to any Person, any corporation, limited liability
Partnership, partnership, association or other business entity of which
(i) if a corporation, a majority of the total voting power of shares of
stock entitled (without regard to the occurrence of any contingency) to vote in
the election of directors, managers or trustees thereof is at the time owned or
controlled, directly or indirectly, by that Person or one or more of the other
Subsidiaries of that Person or a combination thereof, or (ii) if a limited
liability company, partnership, association or other business entity (other
than a corporation), a majority of the partnership or other similar ownership
interest thereof is at the time owned or controlled, directly or indirectly, by
any Person or one or more Subsidiaries of that Person or a combination
thereof.  For purposes hereof, a Person
or Persons shall be deemed to have a majority ownership interest in a limited
liability company, partnership, association or other business entity if such
Person or Persons shall be allocated a majority of limited liability company,
partnership, association or other business entity gains or losses or shall be
or control any general partner or other Person or board with authority to
direct the management of such limited liability company, partnership,
association or other business entity. 
References to a Subsidiary of any Person shall only be given effect at
such times that such Person has one or more Subsidiaries and, unless otherwise
indicated, the term “Subsidiary” refers to a Subsidiary of the
Partnership.

“Transfer” means
to sell, transfer, assign, pledge or otherwise dispose of (whether with or
without consideration and whether voluntarily or involuntarily or by operation
of law).

6.             Notices.  All notices, demands or other communications
to be given or delivered under or by reason of the provisions of this Agreement
shall be in writing and shall be deemed to have been given when (a) delivered
personally to the recipient, (b) telecopied to the recipient (with hard copy
sent to the recipient by reputable overnight courier service (charges prepaid)
that same day) if telecopied before 5:00 p.m. Central time on a Business Day,
and otherwise on the next Business Day, or (c) one Business Day after being
sent to the recipient by reputable overnight courier service (charges prepaid)
or mailed to the recipient by certified or registered mail, return receipt
requested and postage prepaid.  Such
notices, demands and other communications shall be sent to the Partnership and
to the Executive at the address(es) indicated below:

	
   

  	
  If to the
  Partnership:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  5002
  Buckeye Road

  
	
   

  	
   

  	
  Emmaus,
  PA 18049

  
	
   

  	
   

  	
  Attention:
  General Counsel

  
	
   

  	
   

  	
  Telephone:

  
	
   

  	
   

  	
  Facsimile:

  
	
   

  	
   

  	
   

  
	
   

  	
  If to
  Executive:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
				

 

6

 

or to such other
address(es) or to the attention of such other person as the recipient party has
specified by prior written notice to the sending party.

7.             General Provisions.

(a)           Transfers in Violation of
Agreement.  Any Transfer or attempted
Transfer of any Executive Units in violation of any provision of this Agreement
or the Partnership Agreement shall be void, and the Partnership shall not
record such Transfer on its books or treat any purported transferee of such
Executive Units as the owner of such units for any purpose.

(b)           Severability.  Whenever possible, each provision of this
Agreement will be interpreted in such manner as to be effective and valid under
applicable law, but if any provision of this Agreement is held to be invalid,
illegal or unenforceable in any respect under any applicable law or rule in any
jurisdiction, such invalidity, illegality or unenforceability will not affect
any other provision or any other jurisdiction, but this Agreement will be
reformed, construed and enforced in such jurisdiction as if such invalid,
illegal or unenforceable provision had never been contained herein.

(c)           Complete Agreement.  This Agreement, those documents expressly
referred to herein and other documents of even date herewith embody the
complete agreement and understanding among the parties and supersede and
preempt any prior understandings, agreements or representations by or among the
parties, written or oral, which may have related to the subject matter hereof
in any way.

(d)           Counterparts.  This Agreement may be executed in separate
counterparts, each of which is deemed to be an original and all of which taken
together constitute one and the same agreement.

(e)           Successors and Assigns.  Except as otherwise provided herein, this
Agreement shall bind and inure to the benefit of and be enforceable by
Executive, the Partnership and their respective successors and assigns
(including subsequent holders of Executive Units); provided that the
rights and obligations of Executive under this Agreement shall not be
assignable except (with respect to his interest as a member only) in connection
with a permitted transfer of Executive Units hereunder.

(f)            Choice of Law.  All issues and questions concerning the
construction, validity and interpretation of this Agreement and the exhibits
hereto will be governed by and construed in accordance with the internal laws of
the State of Delaware, without giving effect to any choice of law or conflict
of law provisions (whether of the State of Delaware, or any other
jurisdictions) that would cause the applications of the laws of any
jurisdiction other than the State of Delaware.

 

7

 

(g)           Remedies.  Each of the parties to this Agreement will be
entitled to enforce its rights under this Agreement specifically, to recover
damages and costs (including attorney’s fees) caused by any breach of any
provision of this Agreement and to exercise all other rights existing in its
favor.  The parties hereto agree and
acknowledge that money damages may not be an adequate remedy for any breach of
the provisions of this Agreement and that any party may in its sole discretion
apply to any court of law or equity of competent jurisdiction (without posting
any bond or deposit) for specific performance and/or other injunctive relief in
order to enforce or prevent any violations of the provisions of this Agreement.

(h)           Amendment and Waiver.  The provisions of this Agreement may be
amended and waived only with the prior written consent of the Partnership and
Executive.

(i)            No Waiver.  A waiver by any party hereto of any right or
remedy hereunder on any one occasion shall not be construed as a bar to any
right or remedy which the Partnership would otherwise have on any future
occasion.  No failure to exercise nor any
delay in exercising on the part of any party hereto, any right, power or
privilege hereunder shall preclude any other or further exercise thereof or the
exercise of any other right, power or privilege.  The rights and remedies herein provided are
cumulative and may be exercised singly or concurrently, and are not exclusive
of any rights or remedies provided by law.

(j)            Offset.  Whenever the Partnership or any of its
Subsidiaries or Affiliates is to pay any sum to Executive or any Affiliate or
related person thereof, any amounts that such Executive or such Affiliate or
related person owes to the Partnership or any of its Subsidiaries or Affiliates
may be deducted from that sum before payment. 
Whenever Executive or any Affiliate or related person thereof is to pay
any sum to the Partnership or any of its Subsidiaries or Affiliates, any
amounts that the Partnership or such Subsidiary or Affiliate owes to the
Executive or any of its Affiliates or related person may be deducted from that
sum before payment.

(k)           Business Days.  If any time period for giving notice or
taking action hereunder expires on a day which is a Saturday, Sunday or holiday
in the state in which the Partnership’s chief executive office is located, the
time period shall be automatically extended to the business day immediately
following such Saturday, Sunday or holiday.

(l)            Further Assurances.  Executive shall execute and deliver all
documents, provide all information, and take or refrain from taking such
actions as may be necessary or appropriate to achieve the proposes of this
Agreement.

(m)          Generally Accepted Accounting
Principles; Adjustments of Numbers. 
Where any accounting determination or calculation is required to be made
under this Agreement or the exhibits hereto, such determination or calculation
(unless otherwise provided) shall be made in accordance with generally accepted
accounting principles, consistently applied, except that if because of a change
in generally accepted accounting principles the Partnership would have to alter
a previously utilized accounting method or policy in order to remain in
compliance with generally accepted accounting principles, such determination or
calculation shall continue to be made in accordance with the Partnership’s
previous accounting methods and policies. 
All numbers set forth herein which refer to unit prices or amounts will
be appropriately adjusted to

 

8

 

reflect unit splits, dividends, combinations of units
and other recapitalizations affecting the subject class of membership
interests.

(n)           Descriptive Headings;
Interpretation.  The descriptive
headings of this Agreement are inserted for convenience only and do not
constitute a substantive part of this Agreement.  Whenever required by the context, any pronoun
used in this Agreement shall include the corresponding masculine, feminine or neuter
forms, and the singular form of nouns, pronouns and verbs shall include the
plural and vice versa.  The use of the
word “including” in this Agreement shall be by way of example rather than by
limitation.  Reference to any agreement,
document or instrument means such agreement, document or instrument as amended
or otherwise modified from time to time in accordance with the terms thereof,
and if applicable hereof.  Without
limiting the generality of the immediately preceding sentence, no amendment or
other modification to any agreement, document or instrument that requires the
consent of any Person pursuant to the terms of this Agreement or any other
agreement will be given effect hereunder unless such Person has consented in
writing to such amendment or modification. 
The use of the words “or,” “either” and “any” shall not be exclusive.

*          *          *          *          *

 

9

 

IN WITNESS WHEREOF, the
parties hereto have executed this Unit Agreement on the date first written
above.

	
   

  	
   

  	
  BUCKEYE GP HOLDINGS
  L.P.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By: MainLine
  Management LLC,

  
	
   

  	
   

  	
  Its General
  Partner

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Stephen C. Muther

  
	
   

  	
   

  	
   

  	
   

  
					

 

 

10

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