Document:

exv10w2

Exhibit 10.2

 

 

LP UNIT PURCHASE AGREEMENT

by and among

BUCKEYE PARTNERS, L.P.

and

THE PURCHASERS NAMED ON SCHEDLUE A HERETO

 

 

 

 

TABLE OF CONTENTS

ARTICLE I

DEFINITIONS

	 	 	 	 	 	 	 

	Section 1.1
	 	Definitions	 	 	1	 
	 
	 	 	 	 	 	 
	ARTICLE II

	 
	 	 	 	 	 	 
	AGREEMENT TO SELL AND PURCHASE

	 
	 	 	 	 	 	 
	Section 2.1
	 	Sale and Purchase	 	 	5	 
	Section 2.2
	 	Closing	 	 	5	 
	Section 2.3
	 	Mutual Conditions	 	 	5	 
	Section 2.4
	 	Each Purchaser’s Conditions	 	 	6	 
	Section 2.5
	 	Buckeye’s Conditions	 	 	7	 
	Section 2.6
	 	Buckeye Deliveries	 	 	7	 
	Section 2.7
	 	Purchaser Deliveries	 	 	8	 
	Section 2.8
	 	Independent Nature of Purchasers' Obligations and Rights	 	 	8	 
	 
	 	 	 	 	 	 
	ARTICLE III

	 
	 	 	 	 	 	 
	REPRESENTATIONS AND WARRANTIES OF BUCKEYE

	 
	 	 	 	 	 	 
	Section 3.1
	 	Existence	 	 	9	 
	Section 3.2
	 	Purchased Units; Capitalization	 	 	9	 
	Section 3.3
	 	No Conflict	 	 	9	 
	Section 3.4
	 	No Default	 	 	10	 
	Section 3.5
	 	Authority	 	 	10	 
	Section 3.6
	 	Approvals	 	 	10	 
	Section 3.7
	 	Compliance with Laws	 	 	11	 
	Section 3.8
	 	Due Authorization	 	 	11	 
	Section 3.9
	 	Valid Issuance; No Options or Preemptive Rights of LP Units	 	 	11	 
	Section 3.10
	 	No Registration Rights	 	 	11	 
	Section 3.11
	 	Periodic Reports	 	 	11	 
	Section 3.12
	 	Litigation	 	 	12	 
	Section 3.13
	 	No Material Adverse Change	 	 	12	 
	Section 3.14
	 	Certain Fees	 	 	12	 
	Section 3.15
	 	No Side Agreements	 	 	12	 
	Section 3.16
	 	No Registration	 	 	13	 
	Section 3.17
	 	No Integration	 	 	13	 
	Section 3.18
	 	MLP Status	 	 	13	 
	Section 3.19
	 	Investment Company Status	 	 	13	 
	Section 3.20
	 	Form S-3 Eligibility	 	 	13	 

i

 

	 	 	 	 	 	 	 

	ARTICLE IV

	 
	 	 	 	 	 	 
	REPRESENTATIONS AND WARRANTIES OF THE PURCHASERS

	 
	 	 	 	 	 	 
	Section 4.1
	 	Existence	 	 	13	 
	Section 4.2
	 	Authorization, Enforceability	 	 	13	 
	Section 4.3
	 	No Breach	 	 	14	 
	Section 4.4
	 	Certain Fees	 	 	14	 
	Section 4.5
	 	No Side Agreements	 	 	14	 
	Section 4.6
	 	Investment	 	 	14	 
	Section 4.7
	 	Nature of Purchaser	 	 	15	 
	Section 4.8
	 	Restricted Securities	 	 	15	 
	Section 4.9
	 	Legend	 	 	15	 
	ARTICLE V

	 
	 	 	 	 	 	 
	COVENANTS

	 
	 	 	 	 	 	 
	Section 5.1
	 	Taking of Necessary Action	 	 	15	 
	Section 5.2
	 	Other Actions	 	 	15	 
	Section 5.3
	 	Payment and Expenses	 	 	16	 
	Section 5.4
	 	Use of Proceeds	 	 	16	 
	Section 5.5
	 	Termination Fee	 	 	16	 
	 
	 	 	 	 	 	 
	ARTICLE VI

	 
	 	 	 	 	 	 
	INDEMNIFICATION

	 
	 	 	 	 	 	 
	Section 6.1
	 	Indemnification by Buckeye	 	 	16	 
	Section 6.2
	 	Indemnification by Purchasers	 	 	16	 
	Section 6.3
	 	Indemnification Procedure	 	 	17	 
	 
	 	 	 	 	 	 
	ARTICLE VII

	 
	 	 	 	 	 	 
	MISCELLANEOUS

	 
	 	 	 	 	 	 
	Section 7.1
	 	Interpretation and Survival of Provisions	 	 	18	 
	Section 7.2
	 	Survival of Provisions	 	 	18	 
	Section 7.3
	 	No Waiver; Modifications in Writing	 	 	18	 
	Section 7.4
	 	Binding Effect; Assignment	 	 	19	 
	Section 7.5
	 	Communications	 	 	19	 
	Section 7.6
	 	Removal of Legend	 	 	20	 
	Section 7.7
	 	Entire Agreement	 	 	21	 
	Section 7.8
	 	Governing Law	 	 	21	 
	Section 7.9
	 	Execution in Counterparts	 	 	21	 
	Section 7.10
	 	Termination	 	 	21	 
	Section 7.11
	 	Recapitalization, Exchanges, Etc. Affecting the LP Units	 	 	21	 

ii

 

APPLICATION FOR TRANSFER OF LP UNITS

	 	 	 

	Schedule A

	 	— List of Purchasers and Commitment Amounts
	Schedule B

	 	— Notice and Contact Information
	Exhibit A

	 	— Form of Registration Rights Agreement
	Exhibit B

	 	— Form of Partnership Agreement Amendment
	Exhibit C

	 	— Form of Opinion of Vinson & Elkins L.L.P.
	Exhibit D

	 	— Form of Transfer Application

iii

 

LP UNIT PURCHASE AGREEMENT

     This LP UNIT PURCHASE AGREEMENT, dated as of December 18, 2010 (this “Agreement”), is
by and among BUCKEYE PARTNERS, L.P., a Delaware limited partnership (“Buckeye”), and each
of the purchasers listed on Schedule A hereof (each a “Purchaser” and
collectively, the “Purchasers”).

     WHEREAS, to fund a portion of the purchase price for the Acquisition (as defined below) and
the subsequent capital expansion plan, Buckeye desires to sell to the Purchasers, and the
Purchasers desire to purchase from Buckeye, certain LP Units (as defined below), in accordance with
the provisions of this Agreement; and

     WHEREAS, Buckeye and the Purchasers will enter into a registration rights agreement (the
“Registration Rights Agreement”), substantially in the form attached hereto as Exhibit
A, pursuant to which Buckeye will provide the Purchasers with certain registration rights with
respect to the LP Units acquired pursuant hereto.

     NOW THEREFORE, in consideration of the mutual covenants and agreements set forth herein and
for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged,
Buckeye and each of the Purchasers, severally and not jointly, hereby agree as follows:

ARTICLE I

DEFINITIONS

               Section 1.1 Definitions. As used in this Agreement, and unless the context requires a different
meaning, the following terms have the meanings indicated:

     “Acquisition” means the acquisition by Buckeye Atlantic Holdings LLC of an indirect
interest (at least 80%) in The Bahamas Oil Refining Company International Ltd. pursuant to the
Acquisition Agreement.

     “Acquisition Agreement” means the Sale and Purchase Agreement by and among First
Reserve, FR Borco GP Ltd., and Buckeye Atlantic Holdings LLC, dated as of December 18, 2010.

     “Affiliate” means, with respect to any Person, any other Person that directly or
indirectly through one or more intermediaries controls, is controlled by or is under common control
with, the Person in question. As used herein, the term “control” means the possession, direct or
indirect, of the power to direct or cause the direction of the management and policies of a Person,
whether through ownership of voting securities, by contract or otherwise.

     “Agreement” has the meaning set forth in the introductory paragraph.

     “Buckeye” has the meaning set forth in the introductory paragraph.

 

 

     “Buckeye Entities” and each a “Buckeye Entity” means the General Partner,
Buckeye and each of Buckeye’s Subsidiaries, other than those Subsidiaries which, individually or in
the aggregate, would not constitute a “significant subsidiary” as defined in Regulation S-X.

     “Buckeye Related Parties” has the meaning specified in Section 6.2.

     “Buckeye SEC Documents” has the meaning specified in Section 3.11.

     “Business Day” means a day other than (i) a Saturday or Sunday or (ii) any day on
which banks located in New York, New York, U.S.A. are authorized or obligated to close.

     “Class B Units” means the Class B Units representing limited partnership interests in
Buckeye having the rights and obligations specified in the Partnership Agreement Amendment.

     “Class B Unit Purchase Agreement” means that certain Unit Purchase Agreement by and
among Buckeye and each of the Persons set forth on Schedule A thereto dated as of the date hereof,
providing for the issuance of Class B Units.

     “Class B Unit Registration Rights Agreement” means that certain Registration Rights
Agreement by and among Buckeye, First Reserve and each of the other Persons listed on Schedule A
thereof, dated on or before the Closing Date.

     “Closing” has the meaning specified in Section 2.2.

     “Closing Date” has the meaning specified in Section 2.2.

     “Commission” means the United States Securities and Exchange Commission.

     “Delaware LP Act” means the Delaware Revised Uniform Limited Partnership Act.

     “Exchange Act” means the Securities Exchange Act of 1934, as amended from time to
time, and the rules and regulations of the Commission promulgated thereunder.

     “Existing Registration Rights Agreement” means that certain Registration Rights
Agreement, by and among Buckeye, BGH GP Holdings, LLC, ArcLight Energy Partners Fund III, L.P.,
ArcLight Energy Partners Fund IV, L.P., Kelso Investment Associates VII, L.P. and KEP VI, LLC ,
dated as of June 10, 2010.

     “First Reserve” means FR XI Offshore AIV, L.P., an exempted limited partnership formed
under the laws of the Cayman Islands.

     “First Reserve Unit Purchase Agreement” means that certain Unit Purchase Agreement by
and between Buckeye and First Reserve dated as of the date hereof.

     “General Partner” means Buckeye GP LLC, a Delaware limited liability company.

     “Governmental Authority” means, with respect to a particular Person, any country,
state, county, city and political subdivision in which such Person or such Person’s Property is
located or that exercises valid jurisdiction over any such Person or such Person’s Property, and
any

2

 

court, agency, department, commission, board, bureau or instrumentality of any of them and any
monetary authority that exercises valid jurisdiction over any such Person or such Person’s
Property. Unless otherwise specified, all references to Governmental Authority herein with respect
to Buckeye mean a Governmental Authority having jurisdiction over Buckeye, its Subsidiaries or any
of their respective Properties.

     “Indemnified Party” has the meaning specified in Section 6.3.

     “Indemnifying Party” has the meaning specified in Section 6.3.

     “Law” means any federal, state, local or foreign order, writ, injunction, judgment,
settlement, award, decree, statute, law, rule or regulation.

     “Lien” means 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 contingent, and including 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. For
the purpose of this Agreement, a 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.

     “LP Unit Price” has the meaning specified in Section 2.1(b).

     “LP Units” means units representing limited partnership interests in Buckeye other
than the Class B Units.

     “Material Adverse Effect” has the meaning specified in Section 3.1.

     “NYSE” means The New York Stock Exchange, Inc.

     “Operative Documents” means, collectively, this Agreement, the Registration Rights
Agreement and the Partnership Agreement Amendment, or any amendments, supplements, continuations or
modifications thereto.

     “Partnership Agreement” means the Amended and Restated Agreement of Limited
Partnership of Buckeye dated November 19, 2010, as amended by the Partnership Agreement Amendment.

     “Partnership Agreement Amendment” means Amendment No. 1 to the Amended and Restated
Agreement of Limited Partnership of Buckeye dated November 19, 2010, substantially in the form of
Exhibit B, to be entered into and effectuated by the General Partner on the Closing Date.

     “Person” means an individual or a corporation, limited liability company, partnership,
joint venture, trust, unincorporated organization, association, government agency or political
subdivision thereof or other form of entity.

3

 

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

     “Purchased Units” means, with respect to a particular Purchaser, the number of LP
Units equal to the aggregate Purchase Price set forth opposite such Purchaser’s name under the
column titled “Purchase Price” set forth on Schedule A hereto divided by the LP Unit Price.

     “Purchase Price” means, with respect to a particular Purchaser, the amount set forth
opposite such Purchaser’s name under the column titled “Purchase Price” set forth on Schedule
A hereto.

     “Purchaser” and “Purchasers” have the meanings set forth in the introductory
paragraph.

     “Purchaser Related Parties” has the meaning specified in Section 6.1.

     “Registration Rights Agreement” has the meaning set forth in the recitals hereto.

     “Representatives” of any Person means the Affiliates, officers, directors, managers,
employees, agents, counsel, accountants, investment bankers and other representatives of such
Person.

     “Securities Act” means the Securities Act of 1933, as amended from time to time, and
the rules and regulations of the Commission promulgated thereunder.

     “Subsidiary” means, with respect to any Person, (a) a corporation of which more than
50% of the voting power of shares entitled (without regard to the occurrence of any contingency) to
vote in the election of directors or other governing body of such corporation is owned, directly or
indirectly, at the date of determination, by such Person, by one or more Subsidiaries of such
Person or a combination thereof, (b) a partnership (whether general or limited) in which such
Person or a Subsidiary of such Person is, at the date of determination, a general or limited
partner of such partnership, but only if more than 50% of the partnership interests of such
partnership (considering all of the partnership interests of the partnership as a single class) is
owned, directly or indirectly, at the date of determination, by such Person, by one or more
Subsidiaries of such Person, or a combination thereof, or (c) any other Person (other than a
corporation or a partnership) in which such Person, one or more Subsidiaries of such Person, or a
combination thereof, directly or indirectly, at the date of determination, has (i) at least a
majority ownership interest or (ii) the power to elect or direct the election of a majority of the
directors or other governing body of such Person. For the avoidance of doubt, Subsidiaries to be
acquired by Buckeye Atlantic Holdings LLC pursuant to the Acquisition Agreement shall not be deemed
to be Subsidiaries of Buckeye for purposes of this Agreement unless the closing of the Acquisition
occurs prior to the Closing.

     “Unit Purchase Agreements” means the Class B Unit Purchase Agreement and the First
Reserve Unit Purchase Agreement.

4

 

ARTICLE II

AGREEMENT TO SELL AND PURCHASE

               Section 2.1 Sale and Purchase.

     (a) Subject to the terms and conditions hereof, Buckeye hereby agrees to issue and sell to
each Purchaser and each Purchaser hereby agrees, severally and not jointly, to purchase from
Buckeye, its respective Purchased Units, and each Purchaser agrees, severally and not jointly, to
pay Buckeye the LP Unit Price for each Purchased Unit as set forth in paragraph (b) below. The
obligations of each Purchaser under this Agreement are independent of the obligations of each other
Purchaser, and the failure or waiver of performance by any Purchaser does not excuse performance by
any other Purchaser or by Buckeye.

     (b) The amount per LP Unit each Purchaser will pay to Buckeye to purchase the Purchased Units
(the “LP Unit Price”) hereunder shall be $60.40; provided however, that if the Closing Date
is after the record date for the distribution to Buckeye’s holders of LP Units with respect to the
quarter ending December 31, 2010 (Buckeye anticipates paying the distribution on or about February
15, 2011), the LP Unit Price shall be reduced by an amount equal to such per unit distribution.

               Section 2.2 Closing. Subject to the terms and conditions hereof, the consummation of the purchase
and sale of the Purchased Units hereunder (the “Closing”) shall take place at the offices
of Vinson & Elkins L.L.P., 666 Fifth Avenue, 26th Floor, New York, New York, or such other location
as mutually agreed by the parties, and upon the later to occur of (i) the first Business Day
following the satisfaction or waiver of the conditions set forth in Sections 2.3, 2.4 and 2.5
(other than those conditions that are by their terms to be satisfied at the Closing) and (ii) the
closing of the Acquisition; provided, however, that if such later event is the closing of the
Acquisition, then the Closing shall occur concurrently therewith (the date of such closing, the
“Closing Date”).

               Section 2.3 Mutual Conditions. The respective obligations of each party to consummate the
purchase and issuance and sale of the Purchased Units shall be subject to the satisfaction on or
prior to the Closing Date of each of the following conditions (any or all of which may be waived by
a party on behalf of itself in writing, in whole or in part, to the extent permitted by applicable
Law):

     (a) no Law shall have been enacted or promulgated, and no action shall have been taken, by any
Governmental Authority of competent jurisdiction that temporarily, preliminarily or permanently
restrains, precludes, enjoins or otherwise prohibits the consummation of the transactions
contemplated hereby or makes the transactions contemplated hereby illegal;

     (b) there shall not be pending any suit, action or proceeding by any Governmental Authority
seeking to restrain, preclude, enjoin or prohibit the transactions contemplated by this Agreement;
and

     (c) the closing of the Acquisition shall have occurred, or shall occur concurrently with the
Closing in which case all conditions set forth in Section 7.3 (Conditions to Obligations

5

 

of
Purchaser) of the Acquisition Agreement shall have been satisfied in all material respects or the
fulfillment of any such conditions to Buckeye Atlantic Holdings LLC’s obligations shall have been
waived, except for those conditions which, by their nature, will be satisfied concurrently with the
Closing.

               Section 2.4 Each Purchaser’s Conditions. The obligation of each Purchaser to consummate the
purchase of its Purchased Units shall be subject to the satisfaction on or prior to the Closing
Date of each of the following conditions (any or all of which may be waived by a particular
Purchaser on behalf of itself in writing with respect to its Purchased Units, in whole or in part,
to the extent permitted by applicable Law):

     (a) Buckeye shall have performed and complied with the covenants and agreements contained in
this Agreement that are required to be performed and complied with by Buckeye on or prior to the
Closing Date;

     (b) (i) The representations and warranties of Buckeye (A) set forth in Sections 3.1, 3.2
and 3.5 and (B) contained in this Agreement that are qualified by materiality or a Material
Adverse Effect shall be true and correct when made and as of the Closing Date and (ii) all other
representations and warranties of Buckeye shall be true and correct in all material respects when
made and as of the Closing Date, in each case as though made at and as of the Closing Date (except
that representations and warranties made as of a specific date shall be required to be true and
correct as of such date only, it being expressly understood and agreed that representations and
warranties made “As of the date hereof” or “As of the date of this Agreement”, or a similar phrase,
are made as of December 18, 2010, and will not be required to be true and correct as of the Closing
Date);

     (c) The purchase price payable to First Reserve and FR Borco GP Ltd. (or their designees as
seller under the Acquisition Agreement) by Buckeye or its Subsidiaries (as purchaser under the
Acquisition Agreement) for the indirect 80% interest in The Bahamas Oil Refining Company
International Ltd. shall not exceed $1.4 billion;

     (d) Buckeye shall have received or be entitled to receive at Closing, pursuant to binding
commitments as to which all conditions precedent to funding (other than conditions that are by
their terms to be satisfied at the Closing) have been satisfied or waived, equity funding for the
Acquisition (including Class B Units and/or LP Units that First Reserve and FR Borco GP Ltd. have
agreed to receive as partial consideration for the Acquisition) of not less than $750 million;

     (e) The NYSE shall have authorized, upon official notice of issuance, the listing of the
Purchased Units.

     (f) No notice of delisting from the NYSE shall have been received by Buckeye with respect to
the LP Units;

     (g) Buckeye shall have delivered, or caused to be delivered, to the Purchasers at the Closing,
Buckeye’s closing deliveries described in Section 2.6;

6

 

     (h) The execution and delivery by the General Partner of the Partnership Agreement Amendment;
and

     (i) The execution and delivery by Buckeye of the Registration Rights Agreement.

               Section 2.5 Buckeye’s Conditions. The obligation of Buckeye to consummate the sale of the
Purchased Units to a Purchaser shall be subject to the satisfaction on or prior to the Closing Date
of each of the following conditions with respect to such Purchaser (any or all of which may be
waived by Buckeye in writing, in whole or in part, to the extent permitted by applicable Law):

     (a) the representations and warranties of such Purchaser contained in this Agreement that are
qualified by materiality shall be true and correct when made and as of the Closing Date and all
other representations and warranties of such Purchaser shall be true and correct in all material
respects as of the Closing Date (except that representations of such Purchaser made as of a
specific date shall be required to be true and correct as of such date only); and

     (b) such Purchaser shall have delivered, or caused to be delivered, to Buckeye at the Closing
such Purchaser’s closing deliveries described in Section 2.7.

     By acceptance of the certificate or certificates representing the Purchased Units, each
Purchaser shall be deemed to have represented to Buckeye that such Purchaser has performed and
complied with the covenants and agreements contained in this Agreement that are required to be
performed and complied with by it on or prior to the Closing Date; and the representations and
warranties of such Purchaser contained in this Agreement that are qualified by materiality are true
and correct as of the Closing Date and all other representations and warranties of such Purchaser
are true and correct in all material respects as of the Closing Date (except that representations
and warranties made as of a specific date shall be required to be true and correct as of such date
only).

               Section 2.6 Buckeye Deliveries. At the Closing, subject to the terms and conditions hereof,
Buckeye will deliver, or cause to be delivered, to each Purchaser:

     (a) A certificate or certificates representing the Purchased Units (bearing the legend set
forth in Section 4.9) and meeting the requirements of the Partnership Agreement, free and
clear of any Liens, other than transfer restrictions under the Partnership Agreement and applicable
federal and state securities laws;

     (b) A certificate of the Secretary of State of the State of Delaware, dated a recent date, to
the effect that each of the General Partner and Buckeye is in good standing;

     (c) A cross-receipt executed by Buckeye and delivered to such Purchaser certifying that it has
received the Purchase Price from such Purchaser as of the Closing Date;

     (d) An opinion addressed to the Purchasers from Vinson & Elkins L.L.P., legal counsel to
Buckeye, dated as of the Closing, in the form and substance attached hereto as Exhibit C;

7

 

     (e) A certificate, dated the Closing Date and signed by the Chief Executive Officer and the
Chief Financial Officer of the General Partner, on behalf of Buckeye, in their capacities as such,
stating that:

     (i) Buckeye has performed and complied with the covenants and agreements contained in
this Agreement that are required to be performed and complied with by Buckeye on or prior to
the Closing Date; and

     (ii) The representations and warranties of Buckeye contained in this Agreement that are
qualified by materiality or Material Adverse Effect are true and correct as of the Closing
Date and all other representations and warranties of Buckeye are, individually and in the
aggregate, true and correct in all material respects as of the Closing Date (except that
representations and warranties made as of a specific date shall be required to be true and
correct as of such date only); and

     (f) A certificate of the Secretary or Assistant Secretary of the General Partner, on behalf of
Buckeye, certifying as to (1) the Amended and Restated Certificate of Limited Partnership of
Buckeye, as amended, and the Partnership Agreement, (2) board resolutions authorizing the execution
and delivery of the Operative Documents and the consummation of the transactions contemplated
thereby, including the issuance of the Purchased Units and (3) its incumbent officers authorized to
execute the Operative Documents, setting forth the name and title and bearing the signatures of
such officers.

               Section 2.7 Purchaser Deliveries. At the Closing, subject to the terms and conditions hereof,
each Purchaser will deliver, or cause to be delivered, to Buckeye:

     (a) Payment to Buckeye of the Purchase Price set forth opposite such Purchaser’s name under
the column titled “Purchase Price” on Schedule A hereto by wire transfer of immediately
available funds to an account designated by Buckeye in writing at least two Business Days prior to
the Closing Date;

     (b) A cross-receipt executed by such Purchaser and delivered to Buckeye certifying that it has
received its Purchased Units as of the Closing Date; and

     (c) A transfer application in substantially the form attached hereto as Exhibit D,
which shall have been duly executed by such Purchaser.

               Section 2.8 Independent Nature of Purchasers’ Obligations and Rights. The obligations of each
Purchaser under any Operative Document are several and not joint with the obligations of any other
Purchaser, and no Purchaser shall be responsible in any way for the performance of the obligations
of any other Purchaser under any Operative Document. Nothing contained herein or in any other
Operative Document, and no action taken by any Purchaser pursuant thereto, shall be deemed to
constitute the Purchasers as a partnership, an association, a joint venture or any other kind of
entity, or create a presumption that the Purchasers are in any way acting in concert or as a group
with respect to such obligations or the transactions contemplated by the Operative Documents. Each
Purchaser shall be entitled to independently protect and enforce its rights, including without
limitation, the rights arising out of this Agreement or out of the other

8

 

Operative Documents, and
it shall not be necessary for any other Purchaser to be joined as an additional party in any
proceeding for such purpose.

ARTICLE III

REPRESENTATIONS AND WARRANTIES OF BUCKEYE

     Buckeye represents and warrants to each Purchaser as follows:

               Section 3.1 Existence. Each of the Buckeye Entities has been duly incorporated or formed, as the
case may be, and is validly existing as a limited liability company, limited partnership or
corporation, as the case may be, in good standing under the Laws of its jurisdiction of
incorporation or formation, as the case may be, and has the full limited liability company, limited
partnership or corporate, as the case may be, power and authority, and has all governmental
licenses, authorizations, consents and approvals, necessary to own, lease or hold its Properties
and assets and to conduct the businesses in which it is engaged, and is duly registered or
qualified to do business and in good standing as a foreign limited liability company, limited
partnership or corporation, as the case may be, in each jurisdiction in which its ownership or
lease of Property or the conduct of its business requires such qualification, except where the
failure to so register or qualify could not reasonably be expected to (i) have, individually or in
the aggregate, a material adverse effect on the condition (financial or other), results of
operations, securityholders’ equity, Properties or business of the Buckeye Entities taken as a
whole, the ability of the Buckeye Entities to meet their obligations under the Operative Documents
or the ability of the Buckeye Entities to consummate the transactions under any Operative Document
on a timely basis (a “Material Adverse Effect”) or (ii) subject the limited partners of
Buckeye to any material liability or disability.

               Section 3.2 Purchased Units; Capitalization.

     (a) On the Closing Date, the Purchased Units shall have those rights, preferences, privileges
and restrictions governing the LP Units as set forth in the Partnership Agreement.

     (b) The General Partner is the sole general partner of Buckeye, with a non-economic general
partner interest in Buckeye; such general partner interest is the only general partner interest of
the Partnership that is issued and outstanding; and such general partner interest has been duly
authorized and validly issued and is owned by the General Partner free and clear of any Liens.

     (c) The limited partners of Buckeye hold LP Units in Buckeye, represented as of the date
hereof by approximately 71.5 million LP Units; such LP Units are the only limited partner interests
of Buckeye that are issued and outstanding; all of such LP Units have been duly authorized and
validly issued pursuant to the Partnership Agreement and are fully paid and nonassessable (except
to the extent such nonassessability may be affected by Sections 17-303, 17-607 and 17-804 of the
Delaware LP Act).

               Section 3.3 No Conflict. None of (i) the offering, issuance and sale by Buckeye of the Purchased
Units and the application of the proceeds therefrom, (ii) the execution, delivery and performance
of the Operative Documents by Buckeye, or (iii) the consummation of

9

 

the transactions contemplated
hereby or thereby conflicts or will conflict with, or results or will result in a breach or
violation of or imposition of any Lien upon any Property or assets of the Buckeye Entities pursuant
to, (A) the formation or governing documents of any of the Buckeye Entities, (B) the terms of any
indenture, contract, lease, mortgage, deed of trust, note agreement, loan agreement or other
agreement, obligation, condition, covenant or instrument to which any of the Buckeye Entities is a
party, by which any of them is bound or to which any of their respective Properties or assets is
subject, or (C) any Law applicable to any of the Buckeye Entities or injunction of any court or
governmental agency or body to which any of the Buckeye Entities of any court, regulatory body,
administrative agency, governmental body, arbitrator or other authority having jurisdiction over
any of the Buckeye Entities or any of their Properties, except in the case of clause (B) for such
conflict, breach, violation or default that would not, individually or in the aggregate, have a
Material Adverse Effect.

               Section 3.4 No Default. None of the Buckeye Entities is in violation or default of (i) any
provision of its respective formation or governing documents, (ii) the terms of any indenture,
contract, lease, mortgage, deed of trust, note agreement, loan agreement or other agreement,
obligation, condition, covenant or instrument to which it is a party, by which it is bound or to
which its property is subject, or (iii) any Law of any court, regulatory body, administrative
agency, governmental body, arbitrator or other authority having jurisdiction over the Buckeye
Entities or any of their Properties, as applicable, except, in the case of clauses (ii) or (iii),
as could not reasonably be expected to have, individually or in the aggregate, a Material Adverse
Effect.

               Section 3.5 Authority. On the Closing Date, Buckeye will have all requisite power and authority
to issue, sell and deliver the Purchased Units, in accordance with and upon the terms and
conditions set forth in this Agreement and the Partnership Agreement. On the Closing Date, all
partnership or
limited liability company action, as the case may be, required to be taken by the General
Partner and Buckeye for the authorization, issuance, sale and delivery of the Purchased Units, the
execution and delivery of the Operative Documents and the consummation of the transactions
contemplated hereby and thereby shall have been validly taken. No approval from the holders of
outstanding LP Units is required under the Partnership Agreement or the rules of the NYSE in
connection with Buckeye’s issuance and sale of the Purchased Units to the Purchasers or the Class B
Units pursuant to the Acquisition Agreement.

               Section 3.6 Approvals. Except as required by the Commission in connection with Buckeye’s
obligations under the Registration Rights Agreement, no authorization, consent, approval, waiver,
license, qualification or written exemption from, nor any filing, declaration, qualification or
registration with, any Governmental Authority or any other Person is required in connection with
the execution, delivery or performance by Buckeye of any of the Operative Documents to which it is
a party or Buckeye’s issuance and sale of the Purchased Units, except (i) as may be required under
the state securities or “Blue Sky” Laws, or (ii) where the failure to receive such authorization,
consent, approval, waiver, license, qualification or written exemption or to make such filing,
declaration, qualification or registration would not, individually or in the aggregate, reasonably
be expected to have, individually or in the aggregate, a Material Adverse Effect

10

 

               Section 3.7 Compliance with Laws. As of the date hereof, neither Buckeye nor any of its
Subsidiaries is in violation of any Law applicable to Buckeye or its Subsidiaries, except as would
not, individually or in the aggregate, have a Material Adverse Effect. Buckeye and its Subsidiaries
possess all certificates, authorizations and permits issued by the appropriate regulatory
authorities necessary to conduct their respective businesses, except where the failure to possess
such certificates, authorizations or permits would not, individually or in the aggregate, have a
Material Adverse Effect, and neither Buckeye nor any such Subsidiary has received any notice of
proceedings relating to the revocation or modification of any such certificate, authorization or
permit, except where such potential revocation or modification would not, individually or in the
aggregate, have a Material Adverse Effect.

               Section 3.8 Due Authorization. Each of the Operative Documents has been duly and validly
authorized and has been or, with respect to the Operative Documents to be delivered at the Closing
Date, will be, validly executed and delivered by Buckeye or the General Partner, as the case may
be, and constitutes, or will constitute, the legal, valid and binding obligations of Buckeye or the
General Partner, as the case may be, enforceable in accordance with its terms, except as such
enforceability may be limited by bankruptcy, insolvency, reorganization and other laws of general
applicability relating to or affecting creditors’ rights and by general principles of equity.

               Section 3.9 Valid Issuance; No Options or Preemptive Rights of LP Units. The Purchased Units to
be issued and sold by Buckeye to each Purchaser hereunder have been duly authorized in accordance
with the Partnership Agreement and, when issued and
delivered against payment therefor pursuant to this Agreement, will be validly issued in
accordance with the Partnership Agreement, fully paid (to the extent required under the Partnership
Agreement) and non-assessable (except as such nonassessability may be affected by matters described
in Sections 17-303, 17-607 and 17-804 of the Delaware LP Act). The holders of outstanding LP Units
are not entitled to statutory, preemptive or other similar contractual rights to subscribe for LP
Units; and, except with respect to the Unit Purchase Agreements, no options, warrants or other
rights to purchase, agreements or other obligations to issue, or rights to convert any obligations
into or exchange any securities for, partnership securities or ownership interests in Buckeye are
outstanding.

               Section 3.10 No Registration Rights. Except as contemplated by this Agreement, the Registration
Rights Agreement, the Class B Unit Registration Rights Agreement and the Existing Registration
Rights Agreement, there are no contracts, agreements or understandings between Buckeye and any
Person granting such Person the right to require Buckeye to file a registration statement under the
Securities Act with respect to any securities of Buckeye or to require Buckeye to include such
securities in any securities registered or to be registered pursuant to any registration statement
filed by or required to be filed by Buckeye under the Securities Act

               Section 3.11 Periodic Reports. Buckeye’s forms, registration statements, reports, schedules and
statements required to be filed by it under the Exchange Act or the Securities Act (all such
documents filed prior to the date hereof, collectively the “Buckeye SEC Documents”) have
been filed with the Commission on a timely basis. The Buckeye SEC Documents, including, without
limitation, any audited or unaudited financial statements and any

11

 

notes thereto or schedules
included therein, at the time filed (or in the case of registration statements, solely on the dates
of effectiveness) (except to the extent corrected by a subsequent Buckeye SEC Document) (a) did not
contain any untrue statement of a material fact or omit to state a material fact required to be
stated therein or necessary in order to make the statements therein, in light of the circumstances
under which they were made, not misleading, (b) complied in all material respects with the
applicable requirements of the Exchange Act and the Securities Act, as the case may be, (c)
complied as to form in all material respects with applicable accounting requirements and with the
published rules and regulations of the Commission with respect thereto, (d) were prepared in
accordance with GAAP applied on a consistent basis during the periods involved (except as may be
indicated in the notes thereto or, in the case of unaudited statements, as permitted by Form 10-Q
of the Commission), and (e) fairly present (subject in the case of unaudited statements to normal
and recurring audit adjustments) in all material respects the consolidated financial position of
Buckeye and its consolidated subsidiaries as of the dates thereof and the consolidated results of
its operations and cash flows for the periods then ended. Deloitte & Touche LLP is an independent
registered public accounting firm with respect to Buckeye and the General Partner and has not
resigned or been dismissed as independent registered public accountants of Buckeye as a result of
or in connection with any disagreement with Buckeye on any matter of accounting principles or
practices, financial statement disclosure or auditing scope or procedures.

               Section 3.12 Litigation. As of the date hereof, except as described in the Buckeye SEC Documents, there are no legal
or governmental proceedings pending to which any Buckeye Entity is a party or to which any Property
or asset of any Buckeye Entity is subject that could reasonably be expected to have, individually
or in the aggregate, a Material Adverse Effect or which challenges the validity of any of the
Operative Documents or the right of any Buckeye entity to enter into any of the Operative Documents
or to consummate the transactions contemplated hereby and thereby and, to the knowledge of Buckeye,
no such proceedings are threatened by Governmental Authorities or others.

               Section 3.13 No Material Adverse Change. As of the date hereof, except as set forth in the Buckeye
SEC Documents filed with the Commission on or prior to the date hereof, since September 30, 2010,
there has not occurred any material adverse change in the condition (financial or other), results
of operations, securityholders’ equity, Properties, prospects or business of the Buckeye Entities,
taken as a whole.

               Section 3.14 Certain Fees. Except for the fees payable to Barclays Capital Inc., no fees or
commissions are or will be payable by Buckeye to brokers, finders, or investment bankers with
respect to the sale of any of the Purchased Units or the consummation of the transaction
contemplated by this Agreement. Buckeye agrees that it will indemnify and hold harmless the
Purchaser from and against any and all claims, demands, or liabilities for broker’s, finder’s,
placement, or other similar fees or commissions incurred by Buckeye in connection with the sale of
the Purchased Units or the consummation of the transactions contemplated by this Agreement.

               Section 3.15 No Side Agreements. There are no agreements by, among or between Buckeye or any of
its Affiliates, on the one hand, and any Purchaser or any of their Affiliates, on the other hand,
with respect to the transactions contemplated hereby other than the

12

 

Operative Documents nor
promises or inducements for future transactions between or among any of such parties.

               Section 3.16 No Registration. Assuming the accuracy of the representations and warranties of the
Purchaser contained in Section 4.6 and Section 4.7, the issuance and sale of the
Purchased Units pursuant to this Agreement is exempt from registration requirements of the
Securities Act, and neither Buckeye nor, to the knowledge of Buckeye, any authorized Representative
acting on its behalf has taken or will take any action hereafter that would cause the loss of such
exemption.

               Section 3.17 No Integration. Neither Buckeye nor any of its Affiliates have, directly or
indirectly through any agent, sold, offered for sale, solicited offers to buy or otherwise
negotiated in respect of, any “security” (as defined in the Securities Act of 1933, as amended)
that is or will be integrated with the sale of the Purchased Units in a manner that would require
registration under the Securities Act.

               Section 3.18 MLP Status. Buckeye is properly treated as a partnership for United States federal
income tax purposes and more than 90% of Buckeye’s current gross income is qualifying income under
7704(d) of the Internal Revenue Code of 1986, as amended.

               Section 3.19 Investment Company Status. Buckeye is not an “investment company” within the meaning
of the Investment Company Act of 1940, as amended.

               Section 3.20 Form S-3 Eligibility. As of the date hereof, Buckeye has been, since the time of
filing its most recent Form S-3 Registration Statement, and continues to be eligible to use Form
S-3.

ARTICLE IV

REPRESENTATIONS AND WARRANTIES OF THE PURCHASERS

     Each Purchaser, severally and not jointly, hereby represents and warrants to Buckeye that:

               Section 4.1 Existence. Such Purchaser is duly organized and validly existing and in good standing
under the Laws of its jurisdiction of organization, with all requisite power and authority to own,
lease, use and operate its Properties and to conduct its business as currently conducted.

               Section 4.2 Authorization, Enforceability. Such Purchaser has all necessary corporate, limited
liability company or partnership power and authority to execute, deliver and perform its
obligations under this Agreement and the Registration Rights Agreement and to consummate the
transactions contemplated thereby, and the execution, delivery and performance by such Purchaser of
this Agreement and the Registration Rights Agreement has been duly authorized by all necessary
action on the part of such Purchaser; and this Agreement and the Registration Rights Agreement
constitute the legal, valid and binding obligations of such Purchaser, enforceable in accordance
with their terms, except as such enforceability may be limited by bankruptcy, insolvency,
fraudulent transfer and similar laws affecting creditors’ rights

13

 

generally or by general principles
of equity, including principles of commercial reasonableness, fair dealing and good faith.

               Section 4.3 No Breach. The execution, delivery and performance of this Agreement and the
Registration Rights Agreement by such Purchaser and the consummation by such Purchaser of the
transactions contemplated hereby and thereby will not (a) conflict with or result in a breach or
violation of any of the terms or provisions of, or constitute a default under, any material
agreement to which
such Purchaser is a party or by which such Purchaser is bound or to which any of the property
or assets of such Purchaser is subject, (b) conflict with or result in any violation of the
provisions of the organizational documents of such Purchaser, or (c) violate any statute, order,
rule or regulation of any court or governmental agency or body having jurisdiction over such
Purchaser or the property or assets of such Purchaser, except in the cases of clauses (a) and (c),
for such conflicts, breaches, violations or defaults as would not prevent the consummation of the
transactions contemplated by this Agreement and the Registration Rights Agreement.

               Section 4.4 Certain Fees. No fees or commissions are or will be payable by such Purchaser to
brokers, finders, or investment bankers with respect to the purchase of any of the Purchased Units
or the consummation of the transaction contemplated by this Agreement. Such Purchaser agrees that
it will indemnify and hold harmless Buckeye from and against any and all claims, demands, or
liabilities for broker’s, finder’s, placement, or other similar fees or commissions incurred by
such Purchaser in connection with the purchase of the Purchased Units or the consummation of the
transactions contemplated by this Agreement.

               Section 4.5 No Side Agreements. There are no other agreements by, among or between such Purchaser
and any of its Affiliates, on the one hand, and Buckeye or any of its Affiliates, on the other
hand, with respect to the transactions contemplated hereby other than the Operative Documents nor
promises or inducements for future transactions between or among any of such parties.

               Section 4.6 Investment. The Purchased Units are being acquired for such Purchaser’s own account,
the account of its Affiliates, or the accounts of clients for whom such Purchaser exercises
discretionary investment authority (all of whom such Purchaser hereby represents and warrants are
“accredited investors” within the meaning of Rule 501(a) of Regulation D promulgated by the
Commission pursuant to the Securities Act), not as a nominee or agent, and with no present
intention of distributing the Purchased Units or any part thereof, and such Purchaser has no
present intention of selling or granting any participation in or otherwise distributing the same in
any transaction in violation of the securities laws of the United States or any state, without
prejudice, however, to such Purchaser’s right at all times to sell or otherwise dispose of all or
any part of the Purchased Units under a registration statement under the Securities Act and
applicable state securities laws or under an exemption from such registration available thereunder
(including, without limitation, if available, Rule 144 promulgated thereunder). If such Purchaser
should in the future decide to dispose of any of the Purchased Units, the Purchaser understands and
agrees (a) that it may do so only in compliance with the Securities Act and applicable state
securities law, as then in effect, including a sale contemplated by any registration statement
pursuant to which such securities are being offered,

14

 

or pursuant to an exemption from the
Securities Act, and (b) that stop-transfer instructions to that effect will be in effect with
respect to such securities.

               Section 4.7 Nature of Purchaser. Such Purchaser represents and warrants to, and covenants and agrees with, Buckeye that, (a)
it is an “accredited investor” within the meaning of Rule 501 of Regulation D promulgated by the
Commission pursuant to the Securities Act and (b) by reason of its business and financial
experience it has such knowledge, sophistication and experience in making similar investments and
in business and financial matters generally so as to be capable of evaluating the merits and risks
of the prospective investment in the Purchased Units, is able to bear the economic risk of such
investment and, at the present time, would be able to afford a complete loss of such investment.

               Section 4.8 Restricted Securities. Such Purchaser understands that the Purchased Units are
characterized as “restricted securities” under the federal securities Laws inasmuch as they are
being acquired from Buckeye in a transaction not involving a public offering and that under such
Laws and applicable regulations such securities may be resold without registration under the
Securities Act only in certain limited circumstances. In this connection, such Purchaser
represents that it is knowledgeable with respect to Rule 144 of the Commission promulgated under
the Securities Act.

               Section 4.9 Legend. Such Purchaser understands that the certificates evidencing the Purchased
Units will bear the legend required by the Partnership Agreement as well as the following legend:
“These securities have not been registered under the Securities Act of 1933, as amended (the
“Securities Act”). These securities may not be sold or offered for sale except pursuant to an
effective registration statement under the Securities Act or pursuant to an exemption from
registration thereunder, in each case in accordance with all applicable securities laws of the
states or other jurisdictions, and in the case of a transaction exempt from registration, such
securities may only be transferred if the transfer agent for such securities has received
documentation satisfactory to it that such transaction does not require registration under the
Securities Act.”

ARTICLE V

COVENANTS

               Section 5.1 Taking of Necessary Action. Each of the parties hereto shall use its commercially
reasonable efforts promptly to take or cause to be taken all action and promptly to do or cause to
be done all things necessary, proper or advisable under applicable Law and regulations to
consummate and make effective the transactions contemplated by this Agreement. Without limiting
the foregoing, Buckeye and each Purchaser shall use its commercially reasonable efforts to make all
filings and obtain all consents of Governmental Authorities that may be necessary or, in the
reasonable opinion of the other parties, as the case may be, advisable for the consummation of the
transactions contemplated by the Operative Documents.

               Section 5.2 Other Actions. Buckeye shall file prior to the Closing a supplemental listing application with the NYSE to
list the Purchased Units.

15

 

               Section 5.3 Payment and Expenses. Buckeye hereby agrees to reimburse the Purchasers, upon demand, for
up to an aggregate amount of $50,000 in reasonable fees and expenses of Baker Botts L.L.P. incurred
in connection with (i) the preparation of the Operative Documents, (ii) the issue, sale and
delivery of the Purchased Units and (iii) any listing of the Purchased Units for quotation on the
NYSE. Any legal fees of Baker Botts L.L.P in excess of $50,000 shall be paid pro rata by all the
Purchasers in proportion to the aggregate number of Purchased Units purchased by each.

               Section 5.4 Use of Proceeds. Buckeye shall use the collective proceeds from the sale of the
Purchased Units to partially fund the Acquisition. If the transactions contemplated by the
Acquisition Agreement are not closed concurrently with the Closing or within two Business Days
thereafter, Buckeye shall return the Purchase Price paid to Buckeye to the applicable Purchasers
within two Business Days of receipt thereof and such Purchasers shall promptly return all Purchased
Units to Buckeye.

               Section 5.5 Termination Fee. In the event this Agreement is terminated without Closing for any
reason, Buckeye hereby agrees to pay to each Purchaser a termination fee in cash in an amount equal
to the product of (a) 0.75%, multiplied by (b) the amount set forth opposite such Purchaser’s name
under the column titled “Purchase Price” set forth on Schedule A hereto; provided, that no
Purchaser who shall have breached in any material respect any of its covenants or agreements set
forth in this Agreement shall be entitled to any termination fee.

ARTICLE VI

INDEMNIFICATION

               Section 6.1 Indemnification by Buckeye. Buckeye agrees to indemnify each Purchaser and its
Representatives (collectively, “Purchaser Related Parties”) from, and hold each of them
harmless against, any and all actions, suits, proceedings (including any investigations, litigation
or inquiries), demands, and causes of action, and, in connection therewith, and promptly upon
demand, pay or reimburse each of them for all costs, losses, liabilities, damages, or expenses of
any kind or nature whatsoever, including, without limitation, the reasonable fees and disbursements
of counsel and all other reasonable expenses incurred in connection with investigating, defending
or preparing to defend any such matter that may be incurred by them or asserted against or involve
any of them as a result of, arising out of, or in any way related to the breach of any of the
representations, warranties or covenants of Buckeye contained herein, provided that such claim for
indemnification relating to a breach of the representations or warranties is made prior to the
expiration of such
representations or warranties; and provided further, that no Purchaser Related Party shall be
entitled to recover special, consequential (including lost profits or diminution in value) or
punitive damages. Notwithstanding anything to the contrary, consequential damages shall not be
deemed to include diminution in value of the Purchased Units, which is specifically included in
damages covered by Purchaser Related Parties’ indemnification.

               Section 6.2 Indemnification by Purchasers. Each Purchaser agrees, severally and not jointly, to
indemnify Buckeye, the General Partner and their respective

16

 

Representatives (collectively,
“Buckeye Related Parties”) from, and hold each of them harmless against, any and all
actions, suits, proceedings (including any investigations, litigation or inquiries), demands, and
causes of action, and, in connection therewith, and promptly upon demand, pay or reimburse each of
them for all costs, losses, liabilities, damages, or expenses of any kind or nature whatsoever,
including, without limitation, the reasonable fees and disbursements of counsel and all other
reasonable expenses incurred in connection with investigating, defending or preparing to defend any
such matter that may be incurred by them or asserted against or involve any of them as a result of,
arising out of, or in any way related to the breach of any of the representations, warranties or
covenants of such Purchaser contained herein, provided that such claim for indemnification relating
to a breach of the representations and warranties is made prior to the expiration of such
representations and warranties; and provided further, that no Buckeye Related Party shall be
entitled to recover special, consequential (including lost profits or diminution in value) or
punitive damages.

               Section 6.3 Indemnification Procedure. Promptly after any Buckeye Related Party or Purchaser
Related Party (hereinafter, the “Indemnified Party”) has received notice of any
indemnifiable claim hereunder, or the commencement of any action, suit or proceeding by a third
person, which the Indemnified Party believes in good faith is an indemnifiable claim under this
Agreement, the Indemnified Party shall give the indemnitor hereunder (the “Indemnifying
Party”) written notice of such claim or the commencement of such action, suit or proceeding,
but failure to so notify the Indemnifying Party will not relieve the Indemnifying Party from any
liability it may have to such Indemnified Party hereunder except to the extent that the
Indemnifying Party is materially prejudiced by such failure. Such notice shall state the nature and
the basis of such claim to the extent then known. The Indemnifying Party shall have the right to
defend and settle, at its own expense and by its own counsel who shall be reasonably acceptable to
the Indemnified Party, any such matter as long as the Indemnifying Party pursues the same
diligently and in good faith. If the Indemnifying Party undertakes to defend or settle, it shall
promptly notify the Indemnified Party of its intention to do so, and the Indemnified Party shall
cooperate with the Indemnifying Party and its counsel in all commercially reasonable respects in
the defense thereof and the settlement thereof. Such cooperation shall include, but shall not be
limited to, furnishing the Indemnifying Party with any books, records and other information
reasonably requested by the Indemnifying Party and in the Indemnified Party’s possession or
control. Such cooperation of the Indemnified Party shall be at the cost of the Indemnifying Party.
After the Indemnifying Party has notified the Indemnified Party of its intention to undertake to
defend or settle any such asserted liability, and for so long as the Indemnifying Party diligently
pursues such defense, the Indemnifying Party shall not be liable for any additional legal expenses
incurred by the Indemnified Party in connection with any
defense or settlement of such asserted liability; provided, however, that the Indemnified
Party shall be entitled (i) at its expense, to participate in the defense of such asserted
liability and the negotiations of the settlement thereof and (ii) if (A) the Indemnifying Party has
failed to assume the defense or employ counsel reasonably acceptable to the Indemnified Party or
(B) if the defendants in any such action include both the Indemnified Party and the Indemnifying
Party and counsel to the Indemnified Party shall have concluded that there may be reasonable
defenses available to the Indemnified Party that are different from or in addition to those
available to the Indemnifying Party or if the interests of the Indemnified Party reasonably may be
deemed to conflict with the interests of the Indemnifying Party, then the Indemnified Party shall
have the right to select a separate counsel and to assume such legal defense and otherwise to
participate in

17

 

the defense of such action, with the expenses and fees of such separate counsel and
other expenses related to such participation to be reimbursed by the Indemnifying Party as
incurred. Notwithstanding any other provision of this Agreement, the Indemnifying Party shall not
settle any indemnified claim without the consent of the Indemnified Party, unless the settlement
thereof imposes no liability or obligation on, and includes a complete release from liability of,
and does not include any admission of wrongdoing or malfeasance by, the Indemnified Party.

ARTICLE VII

MISCELLANEOUS

               Section 7.1 Interpretation and Survival of Provisions. Article, Section, Schedule, and Exhibit
references are to this Agreement, unless otherwise specified. All references to instruments,
documents, contracts, and agreements are references to such instruments, documents, contracts, and
agreements as the same may be amended, supplemented, and otherwise modified from time to time,
unless otherwise specified. The word “including” shall mean “including but not limited to.”
Whenever any party has an obligation under the Operative Documents, the expense of complying with
that obligation shall be an expense of such party unless otherwise specified. Whenever any
determination, consent, or approval is to be made or given by any Purchaser, such action shall be
in such Purchaser’s sole discretion unless otherwise specified in this Agreement. If any provision
in the Operative Documents is held to be illegal, invalid, not binding, or unenforceable, such
provision shall be fully severable and the Operative Documents shall be construed and enforced as
if such illegal, invalid, not binding, or unenforceable provision had never comprised a part of the
Operative Documents, and the remaining provisions shall remain in full force and effect. The
Operative Documents have been reviewed and negotiated by sophisticated parties with access to legal
counsel and shall not be construed against the drafter.

               Section 7.2 Survival of Provisions. The representations and warranties set forth in Sections
3.1, 3.2, 3.5, 3.9, 3.10, 3.13, 3.14, 3.15, 3.16, 4.4, 4.5, 4.7, 4.8 and 4.9 hereunder shall
survive the execution and delivery of this Agreement indefinitely, and the other representations
and warranties set forth herein shall survive for a period of twelve (12) months following the
Closing Date regardless of any investigation made by or on behalf of Buckeye or any Purchaser. The
covenants made in this Agreement or any other Operative Document shall survive the Closing of the
transactions
described herein and remain operative and in full force and effect regardless of acceptance of
any of the Purchased Units and payment therefor and repayment, conversion, exercise or repurchase
thereof. All indemnification obligations of Buckeye and the Purchasers pursuant to this Agreement
and the provisions of Article VI shall remain operative and in full force and effect unless such
obligations are expressly terminated in a writing by the parties, regardless of any purported
general termination of this Agreement.

               Section 7.3 No Waiver; Modifications in Writing.

     (a) Delay. No failure or delay on the part of any party in exercising any right,
power, or remedy hereunder shall operate as a waiver thereof, nor shall any single or partial
exercise of any such right, power, or remedy preclude any other or further exercise thereof or the
exercise of

18

 

any other right, power, or remedy. The remedies provided for herein are cumulative and
are not exclusive of any remedies that may be available to a party at law or in equity or
otherwise.

     (b) Specific Waiver. Except as otherwise provided herein, no amendment, waiver,
consent, modification, or termination of any provision of this Agreement or any other Operative
Document (except in the case of the Partnership Agreement, for amendments adopted pursuant to the
terms thereof) shall be effective unless signed by each of the parties hereto or thereto affected
by such amendment, waiver, consent, modification, or termination. Any amendment, supplement or
modification of or to any provision of this Agreement or any other Operative Document, any waiver
of any provision of this Agreement or any other Operative Document, and any consent to any
departure by Buckeye from the terms of any provision of this Agreement or any other Operative
Document shall be effective only in the specific instance and for the specific purpose for which
made or given. Except where notice is specifically required by this Agreement, no notice to or
demand on Buckeye in any case shall entitle Buckeye to any other or further notice or demand in
similar or other circumstances.

               Section 7.4 Binding Effect; Assignment.

     (a) Binding Effect. This Agreement shall be binding upon Buckeye, the Purchasers, and
their respective successors and permitted assigns. Except as expressly provided in this Agreement,
this Agreement shall not be construed so as to confer any right or benefit upon any Person other
than the parties to this Agreement and their respective successors and permitted assigns.

     (b) Assignment of Rights. All or any portion of the rights and obligations of any
Purchaser under this Agreement may be transferred by such Purchaser to any Affiliate of such
Purchaser without the consent of Buckeye. No portion of the rights and obligations of any
Purchaser under this Agreement may be transferred by such Purchaser to a non-Affiliate without the
written consent of Buckeye (which consent shall not be unreasonably withheld by Buckeye).

               Section 7.5 Communications. All notices and demands provided for hereunder shall be in writing and shall be given by
registered or certified mail, return receipt requested, telecopy, air courier guaranteeing
overnight delivery or personal delivery to the following addresses:

     (a) If to any Purchaser:

To the respective address listed on Schedule B hereof

with a copy to:

Baker Botts L.L.P.

One Shell Plaza

910 Louisiana Street

Houston, TX 77002

Attention: Joe S. Poff

Facsimile: 713.229.7710

19

 

     (b) If to Buckeye:

Buckeye Partners, L.P.

One Greenway Plaza, Suite 600

Houston, TX 77046

Attention: General Counsel

Facsimile: 610.904.4006

with a copy to:

Vinson & Elkins L.L.P.

666 Fifth Avenue

26th Floor

New York, NY 10103

Attention: E. Ramey Layne

Facsimile: 212.237.0100

or to such other address as Buckeye or such Purchaser may designate in writing. All notices and
communications shall be deemed to have been duly given: at the time delivered by hand, if
personally delivered; at the time of transmittal, if sent via electronic mail; upon actual receipt
if sent by certified mail, return receipt requested, or regular mail, if mailed; when receipt
acknowledged, if sent via facsimile; and upon actual receipt when delivered to an air courier
guaranteeing overnight delivery.

               Section 7.6 Removal of Legend. In connection with a sale of the Purchased Units by a Purchaser in
reliance on Rule 144, the applicable Purchaser or its broker shall deliver to the transfer agent
and Buckeye a broker representation letter providing to the transfer agent and Buckeye any
information Buckeye deems necessary to determine that the sale of the Purchased Units is made in
compliance with Rule 144, including, as may be appropriate, a certification that the Purchaser is
not an Affiliate of Buckeye and regarding the length of time the Purchased Units have been held.
Upon receipt of such representation letter, Buckeye shall promptly direct its transfer agent
to exchange unit certificates bearing a restrictive legend for unit certificates without the legend
(or a credit for such shares to book-entry accounts maintained by the transfer agent), including
the legend referred to in Section 4.9, and Buckeye shall bear all costs associated therewith. After
any Purchaser or its permitted assigns have held the Purchased Units for one year, if the
certificate for such Purchased Units still bears the restrictive legend referred to in Section 4.9,
Buckeye agrees, upon request of the Purchaser or permitted assignee, to take all steps necessary to
promptly effect the removal of the legend described in Section 4.9 from the Purchased Units, and
Buckeye shall bear all costs associated therewith, regardless of whether the request is made in
connection with a sale or otherwise, so long as such Purchaser or its permitted assigns provide to
Buckeye any information Buckeye deems necessary to determine that the legend is no longer required
under the Securities Act or applicable state laws, including a certification that the holder is not
an Affiliate of Buckeye (and a covenant to inform Buckeye if it should thereafter become an
Affiliate and to consent to exchange its certificates for certificates bearing an appropriate
restrictive legend) and regarding the length of time the Purchased Units have been held.

20

 

               Section 7.7 Entire Agreement. This Agreement, the other Operative Documents and the other
agreements and documents referred to herein are intended by the parties as a final expression of
their agreement and intended to be a complete and exclusive statement of the agreement and
understanding of the parties hereto in respect of the subject matter contained herein and therein.
There are no restrictions, promises, warranties or undertakings, other than those set forth or
referred to herein or the other Operative Documents with respect to the rights granted by Buckeye
or any of its Affiliates or any Purchaser or any of its Affiliates set forth herein or therein.
This Agreement, the other Operative Documents and the other agreements and documents referred to
herein or therein supersede all prior agreements and understandings between the parties with
respect to such subject matter.

               Section 7.8 Governing Law. This Agreement will be construed in accordance with and governed by
the laws of the State of New York.

               Section 7.9 Execution in Counterparts. This Agreement may be executed in any number of
counterparts and by different parties hereto in separate counterparts, each of which counterparts,
when so executed and delivered, shall be deemed to be an original and all of which counterparts,
taken together, shall constitute but one and the same Agreement.

               Section 7.10 Termination.

     (a) Notwithstanding anything herein to the contrary, this Agreement may be terminated at any
time at or prior to the Closing by the written consent of the Purchasers, upon a breach in any
material respect by Buckeye of any covenant or agreement set forth in this Agreement.

     (b) Notwithstanding anything herein to the contrary, this Agreement shall automatically
terminate at any time at or prior to the Closing

      (i) if a statute, rule, order, decree or regulation shall have been enacted or
promulgated, or if any action shall have been taken by any Governmental Authority of
competent jurisdiction that permanently restrains, permanently precludes, permanently
enjoins or otherwise permanently prohibits the consummation of the transactions contemplated
by this Agreement or makes the transactions contemplated by this Agreement illegal;

     (ii) upon the termination of the Acquisition Agreement; or

     (iii) if the Closing shall not have occurred by April 18, 2011.

     (c) In the event of the termination of this Agreement as provided in this Section
7.10, this Agreement shall forthwith become null and void. In the event of such termination,
there shall be no liability on the part of any party hereto, except as set forth in Sections
5.3, 5.4 and 5.5 and Article VI of this Agreement; provided that nothing herein shall
relieve any party from any liability or obligation with respect to any willful breach of this
Agreement.

               Section 7.11 Recapitalization, Exchanges, Etc. Affecting the LP Units. The provisions of this
Agreement shall apply to the full extent set forth herein with respect to

21

 

any and all equity interests of Buckeye or any successor or assign of Buckeye (whether by merger, consolidation, sale
of assets or otherwise) which may be issued in respect of, in exchange for or in substitution of,
the LP Units, and shall be appropriately adjusted for combinations, recapitalizations and the like
occurring after the date of this Agreement and prior to the Closing.

[Signature pages follow.]

22

 

     IN WITNESS WHEREOF, the parties hereto execute this Agreement, effective as of the date first
above written.

	 	 	 	 	 
	 	BUCKEYE PARTNERS, L.P.

 	 
	 	By:  	BUCKEYE GP LLC
 	
	 	 	(its General Partner) 	 
	 	

 	 
	 	By:  	/s/ Keith E. St.Clair
 	 
	 	 	Keith E. St.Clair 	 
	 	 	Senior Vice President and Chief Financial Officer 	 
	 

Signature Page to Unit Purchase Agreement

 

 

	 	 	 	 	 
	 	Investor:

AT MLP Fund, LLC

 	 
	 	By:  	/s/ Chris Linder
 	 
	 	 	Name:  	Chris Linder 	 
	 	 	Title:  	Vice President 	 
	 

Signature Page to Unit Purchase Agreement

(PIPE Investors)

 

 

	 	 	 	 	 
	 	Investor:

ClearBridge Energy MLP Fund Inc. 

 	 
	 	By:  	ClearBridge Advisors, LLC
 	 
	 	 	 	 
	 	By:  	                    /s/ Harry D. Cohen
 	 
	 	 	Name:  	Harry D. Cohen 	 
	 	 	Title:  	Managing Director &
Chief Investment Officer 	 
	 

Signature Page to Unit Purchase Agreement

(PIPE Investors)

 

 

	 	 	 	 	 
	 	Investor:

Cohen & Steers Capital Management, Inc.

 	 
	 	By:  	/s/ Adam Derechin
 	 
	 	 	Name:  	Adam Derechin 	 
	 	 	Title:  	Chief Operating Officer 	 
	 

Signature Page to Unit Purchase Agreement

(PIPE Investors)

 

 

	 	 	 	 	 
	 	Investor:

Tortoise Energy Infrastructure Corporation

 	 
	 	By:  	/s/ Zachary A. Hamel
 	 
	 	 	Name:  	Zachary A. Hamel 	 
	 	 	Title:  	Senior Vice President 	 
	 

Signature Page to Unit Purchase Agreement

(PIPE Investors)

 

 

	 	 	 	 	 
	 	Investor:

Tortoise Energy Capital Corporation

 	 
	 	By:  	/s/ Zachary A. Hamel
 	 
	 	 	Name:  	Zachary A. Hamel 	 
	 	 	Title:  	Senior Vice President 	 
	 

Signature Page to Unit Purchase Agreement

(PIPE Investors)

 

 

	 	 	 	 	 
	 	Investor:

Tortoise North American Energy Corporation

 	 
	 	By:  	/s/ Zachary A. Hamel
 	 
	 	 	Name:  	Zachary A. Hamel 	 
	 	 	Title:  	Senior Vice President 	 
	 

Signature Page to Unit Purchase Agreement

(PIPE Investors)

 

 

	 	 	 	 	 
	 	Investor:

Tortoise MLP Fund, Inc.

 	 
	 	By:  	/s/ Zachary A. Hamel
 	 
	 	 	Name:  	Zachary A. Hamel 	 
	 	 	Title:  	President 	 
	 

Signature Page to Unit Purchase Agreement

(PIPE Investors)

 

 

	 	 	 	 	 
	 	Investor:

R3 Capital Partners Master (DE), L.P.

 	 
	 	By: BlackRock Investment Management, LLC,
 	 
	 	 	its Investment Manager 	 
	 	

 	 
	 	By:  	/s/ Paul H. Tice
 	 
	 	 	Name:  	Paul H. Tice 	 
	 	 	Title:  	Managing Director 	 
	 

Signature Page to Unit Purchase Agreement

(PIPE Investors)

 

 

	 	 	 	 	 
	 	Investor:

Harvest Infrastructure Partners Fund LLC

 	 
	 	By:  	/s/ Anthony Merhige
 	 
	 	 	Name:  	Anthony Merhige 	 
	 	 	Title:  	G.C. of Managing Member 	 
	 

Signature Page to Unit Purchase Agreement

(PIPE Investors)

 

 

	 	 	 	 	 
	 	Investor:

Harvest Sharing LLC

 	 
	 	By:  	/s/ Anthony Merhige
 	 
	 	 	Name:  	Anthony Merhige 	 
	 	 	Title:  	G.C. of Managing Member 	 
	 

Signature Page to Unit Purchase Agreement

(PIPE Investors)

 

 

	 	 	 	 	 
	 	Investor:

Harvest MLP Partners

 	 
	 	By:  	/s/ Anthony Merhige
 	 
	 	 	Name:  	Anthony Merhige 	 
	 	 	Title:  	G.C. of Investment Advisor 	 
	 

Signature Page to Unit Purchase Agreement

(PIPE Investors)

 

 

	 	 	 	 	 
	 	Investor:

Harvest MLP Partners II

 	 
	 	By:  	/s/ Anthony Merhige
 	 
	 	 	Name:  	Anthony Merhige 	 
	 	 	Title:  	G.C. of Investment Advisor 	 
	 

Signature Page to Unit Purchase Agreement

(PIPE Investors)

 

 

	 	 	 	 	 
	 	Investor:

Harvest MSRA

 	 
	 	By:  	/s/ Anthony Merhige
 	 
	 	 	Name:  	Anthony Merhige 	 
	 	 	Title:  	G.C. of Investment Advisor 	 
	 

Signature Page to Unit Purchase Agreement

(PIPE Investors)

 

 

	 	 	 	 	 
	 	Investor:

AP Capital Holdings LLC

 	 
	 	By:  	/s/ Anthony Merhige
 	 
	 	 	Name:  	Anthony Merhige 	 
	 	 	Title:  	G.C. of Investment Advisor 	 
	 

Signature Page to Unit Purchase Agreement

(PIPE Investors)

 

 

	 	 	 	 	 
	 	Investor:

Fiduciary Asset Management, LLC

 	 
	 	By:  	/s/ Wiley Angell
 	 
	 	 	Name:  	Wiley Angell — Portfolio Manager 	 
	 	 	Title:  	President and Chief Executive Officer

FAMCO MLP & Energy Infrastructure Fund 	 
	 

Signature Page to Unit Purchase Agreement

(PIPE Investors)

 

 

	 	 	 	 	 
	 	Investor:

SOF INVESTMENTS, L.P.

 	 
	 	By:  	/s/ Marc R. Lisker
 	 
	 	 	Name:  	Marc R. Lisker 	 
	 	 	Title:  	General Counsel 	 
	 

Signature Page to Unit Purchase Agreement

(PIPE Investors)

 

 

	 	 	 	 	 
	 	Investor:

Taconic Opportunity Fund L.P.

 	 
	 	By:  	Taconic Capital Advisors L.P.
 	 
	 
	 	By:  	/s/ Josh Miller 
 	 
	 	 	Name:  	Josh Miller 	 
	 	 	Title:  	Principal 	 
	 

Signature Page to Unit Purchase Agreement

(PIPE Investors)

 

 

	 	 	 	 	 
	 	Investor:

THE NORTHWESTERN MUTUAL LIFE INSURANCE COMPANY

 	 
	 	By:  	/s/ Jerome R. Baier
 	 
	 	 	Name:  	Jerome R. Baier 	 
	 	 	Title:  	Its Authorized Representative 	 
	 

Signature Page to Unit Purchase Agreement

(PIPE Investors)

 

 

	 	 	 	 	 
	 	Investor:

Fidelity Securities Fund: Fidelity

Dividend Growth Fund

 	 
	 	By:  	/s/ Jeffrey Christian
 	 
	 	 	Name:  	Jeffrey Christian 	 
	 	 	Title:  	Deputy Treasurer 	 
	 

Signature Page to Unit Purchase Agreement

(PIPE Investors)

 

 

	 	 	 	 	 
	 	Investor:

Fidelity Advisor Series I: Fidelity

Advisor Dividend Growth Fund

 	 
	 	By:  	/s/ Jeffrey Christian
 	 
	 	 	Name:  	Jeffrey Christian 	 
	 	 	Title:  	Deputy Treasurer 	 
	 

Signature Page to Unit Purchase Agreement

(PIPE Investors)

 

 

	 	 	 	 	 
	 	Investor:

Variable Insurance Products Fund

III: Balanced Portfolio

 	 
	 	By:  	/s/ Jeffrey Christian
 	 
	 	 	Name:  	Jeffrey Christian 	 
	 	 	Title:  	Deputy Treasurer 	 
	 

Signature Page to Unit Purchase Agreement

(PIPE Investors)

 

 

	 	 	 	 	 
	 	Investor:

Variable Insurance Products Fund

II: Contrafund Portfolio

 	 
	 	By:  	/s/ Jeffrey Christian
 	 
	 	 	Name:  	Jeffrey Christian 	 
	 	 	Title:  	Deputy Treasurer 	 
	 

Signature Page to Unit Purchase Agreement

(PIPE Investors)

 

 

	 	 	 	 	 
	 	Investor:

Fidelity Puritan Trust: Fidelity

Balanced Fund

 	 
	 	By:  	/s/ Jeffrey Christian
 	 
	 	 	Name:  	Jeffrey Christian 	 
	 	 	Title:  	Deputy Treasurer 	 
	 

Signature Page to Unit Purchase Agreement

(PIPE Investors)

 

 

	 	 	 	 	 
	 	Investor:

Fidelity Advisor Series I: Fidelity

Advisor Balanced Fund

 	 
	 	By:  	/s/ Jeffrey Christian
 	 
	 	 	Name:  	Jeffrey Christian 	 
	 	 	Title:  	Deputy Treasurer 	 
	 

Signature Page to Unit Purchase Agreement

(PIPE Investors)

 

 

	 	 	 	 	 
	 	Investor:

Fidelity Devonshire Trust: Fidelity

Series All-Sector Equity Fund

 	 
	 	By:  	/s/ Jeffrey Christian
 	 
	 	 	Name:  	Jeffrey Christian 	 
	 	 	Title:  	Deputy Treasurer 	 
	 

Signature Page to Unit Purchase Agreement

(PIPE Investors)

 

 

	 	 	 	 	 
	 	Investor:

RCH Energy MLP Fund, L.P.

 	 
	 	By:  	RCH Energy MLP Fund GP, L.P.; its general partner
 	 
	 	 	 
	 	By:  	
RR Advisors, LLC; its general partner
 	 
	 	 	 	 
	 	 	 	 
	 	By:  	                                            /s/ Robert J. Raymond
 	 
	 	 	Name:  	Robert J. Raymond 	 
	 	 	Title:  	Sole-Member 	 
	 

Signature Page to Unit Purchase Agreement

(PIPE Investors)

 

 

	 	 	 	 	 
	 	Investor: 

KAYNE ANDERSON MLP INVESTMENT COMPANY

 	 
	 	By:  	/s/ James C. Baker
 	 
	 	 	Name:  	James C. Baker 	 
	 	 	Title:  	Executive Vice President 	 
	 
	 	Investor:

KAYNE ANDERSON ENERGY TOTAL RETURN FUND, INC.

 	 
	 	By:  	/s/ James C. Baker
 	 
	 	 	Name:  	James C. Baker 	 
	 	 	Title:  	Executive Vice President 	 
	 
	 	Investor:

KAYNE ANDERSON ENERGY DEVELOPMENT COMPANY

 	 
	 	By:  	/s/ James C. Baker
 	 
	 	 	Name:  	James C. Baker 	 
	 	 	Title:  	Executive Vice President 	 
	 
	 	Investor:

KAYNE ANDERSON MIDSTREAM/ENERGY FUND, INC.

 	 
	 	By:  	/s/ James C. Baker
 	 
	 	 	Name:  	James C. Baker 	 
	 	 	Title:  	Executive Vice President 	 
	 

Signature Page to Unit Purchase Agreement

(PIPE Investors)

 

 

	 	 	 	 	 
	 	Investor:

KAYNE MIDSTREAM SPECIALTY FUND, LP

 	 
	 	By:  	Kayne Anderson Capital Advisors, L.P.
 	 
	 	 	its general partner 	 
	 	

 	 
	 	By:  	/s/ David Shladovsky
 	 
	 	 	Name:  	David Shladovsky 	 
	 	 	Title:  	General Counsel 	 
	 
	 	Investor:

KAYNE ANDERSON MLP FUND, LP

 	 
	 	By:  	Kayne Anderson Capital Advisors, L.P.
 	 
	 	 	its general partner 	 
	 	 	 
	 	By:  	                      /s/ David Shladovsky
 	 
	 	 	Name:  	David Shladovsky 	 
	 	 	Title:  	General Counsel 	 
	 
	 	Investor:

KAYNE ANDERSON MIDSTREAM

INSTITUTIONAL FUND, LP

 	 
	 	By:  	Kayne Anderson Capital Advisors, L.P.
 	 
	 	 	its general partner 	 
	 	 	 
	 	By:  	                      /s/ David Shladovsky
 	 
	 	 	Name:  	David Shladovsky 	 
	 	 	Title:  	General Counsel 	 
	 
	 	Investor:

KAYNE ANDERSON REAL ASSETS FUND, LP 

 	 
	 	By:  	Kayne Anderson Capital Advisors, L.P.
 	 
	 	 	its general partner 	 
	 	 	 
	 	By:  	                      /s/ David Shladovsky
 	 
	 	 	Name:  	David Shladovsky 	 
	 	 	Title:  	General Counsel 	 
	 

Signature Page to Unit Purchase Agreement

(PIPE Investors)

 

 

	 	 	 	 	 
	 	Investor:

KAYNE ANDERSON CAPITAL INCOME PARTNERS (QP), LP

 	 
	 	By:  	Kayne Anderson Capital Advisors, L.P.
 	 
	 	 	its general partner 	 
	 	 	 
	 	By:  	                      /s/ David Shladovsky
 	 
	 	 	Name:  	David Shladovsky 	 
	 	 	Title:  	General Counsel 	 
	 
	 	Investor:

KAYNE ANDERSON INCOME PARTNERS, LP

 	 
	 	By:  	Kayne Anderson Capital Advisors, L.P.
 	 
	 	 	its general partner
 	 
	 	 	 	 
	 	By:  	/s/ David Shladovsky
 	 
	 	 	Name:  	David Shladovsky 	 
	 	 	Title:  	General Counsel 	 
	 

Signature Page to Unit Purchase Agreement

(PIPE Investors)

 

 

Schedule A — List of Purchasers and Commitment Amounts

	 	 	 	 	 
	Purchaser	 	Purchase Price	 
	AT MLP Fund, LLC
	 	$	25,000,164.00	 
	ClearBridge Energy MLP Fund Inc.
	 	$	20,000,252.00	 
	Cohen & Steers Capital Management, Inc. o/b/o Cohen &
Steers Global Income Builder Fund
	 	$	1,763,680.00	 
	Cohen & Steers Capital Management, Inc. o/b/o Cohen &
Steers Global Infrastructure Fund, Inc.
	 	$	465,080.00	 
	Cohen & Steers Capital Management, Inc. o/b/o Cohen &
Steers Select Utility Fund
	 	$	12,770,976.00	 
	Tortoise Energy Infrastructure Corporation
	 	$	30,000,076.00	 
	Tortoise Energy Capital Corporation
	 	$	14,000,116.00	 
	Tortoise North American Energy Corporation
	 	$	4,999,912.00	 
	Tortoise MLP Fund, Inc.
	 	$	41,000,124.00	 
	R3 Capital Partners Master (DE), L.P.
	 	$	14,999,736.00	 
	Harvest Infrastructure Partners Fund LLC
	 	$	376,473.20	 
	Harvest Sharing LLC
	 	$	267,451.20	 
	Harvest MLP Partners
	 	$	4,329,351.20	 
	Harvest MLP Partners II
	 	$	1,922,532.00	 
	Harvest MSRA
	 	$	2,803,526.40	 
	AP Capital Holdings LLC
	 	$	301,094.00	 
	FAMCO MLP & Energy Infrastructure Fund
	 	$	349,716.00	 
	SOF Investments, L.P.
	 	$	34,999,988.00	 
	Taconic Opportunity Fund L.P.
	 	$	18,750,576.00	 
	The Northwestern Mutual Life Insurance Company
	 	$	20,000,252.00	 
	Ball & Co fbo Fidelity Securities Fund: Fidelity Dividend
Growth Fund
	 	$	7,821,800.00	 
	Rowwater & Co fbo Fidelity Advisor Series I: Fidelity
Advisor Dividend Growth Fund
	 	$	724,800.00	 
	M Gardiner & Co fbo Variable Insurance Products Fund III:
	 	 	 	 
	Balanced Portfolio
	 	$	1,435,708.00	 
	Mag & Co fbo Variable Insurance Products Fund II:
	 	 	 	 
	Contrafund Portfolio
	 	$	2,387,612.00	 
	Ball & Co fbo Fidelity Puritan Trust: Fidelity Balanced Fund
	 	$	1,854,280.00	 
	M Gardiner & Co fbo Fidelity Advisor Series I: Fidelity
Advisor Balanced Fund
	 	$	92,110.00	 
	Booth & Co fbo Fidelity Devonshire Trust: Fidelity Series
All-Sector Equity Fund
	 	$	1,583,688.00	 
	RCH Energy MLP Fund, L.P.
	 	$	14,999,736.00	 
	Kayne Anderson MLP Investment Company
	 	$	30,000,740.40	 
	Kayne Anderson Energy Total Return Fund, Inc.
	 	$	4,999,972.40	 
	Kayne Anderson Energy Development Company
	 	$	4,999,972.40	 

Schedule A to Unit Purchase Agreement

 

 

	 	 	 	 	 
	Purchaser	 	Purchase Price	 
	Kayne Anderson Midstream/Energy Fund, Inc.
	 	$	14,999,977.60	 
	Kayne Midstream Specialty Fund, LP
	 	$	499,991.20	 
	Kayne Anderson MLP Fund, LP
	 	$	11,249,983.20	 
	Kayne Anderson Midstream Institutional Fund, LP
	 	$	1,499,973.60	 
	Kayne Anderson Real Assets Fund, LP
	 	$	499,991.20	 
	Kayne Anderson Capital Income Partners (QP), LP
	 	$	999,982.40	 
	Kayne Anderson Income Partners, LP
	 	$	249,995.60	 
	 
	 	 	 
	Total
	 	$	350,001,390.00	 
	 
	 	 	 

Schedule A to Unit Purchase Agreement

 

 

Schedule B — Notice and Contact Information

	 	 	 
	Purchaser	 	Address
	AT MLP Fund, LLC
	 	Chris Linder

1700 Lincoln Street, Suite 2550

Denver, Colorado 80203

Fax: 720.221.5033

	ClearBridge Energy MLP Fund Inc.
	 	Barbara Brooke Manning

General Counsel & Chief Compliance

Officer ClearBridge Advisors LLC

620 8th Avenue NY, NY 10018

bbmanning@clearbridgeadvisors.com

Cc: Pat Collier

	Cohen & Steers Capital Management, Inc.

o/b/o Cohen & Steers Global Income

Builder Fund
	 	c/o Cohen & Steers Capital

Management, Inc.

280 Park Avenue, 10th Floor

New York, NY 10017

	Cohen & Steers Capital Management, Inc.

o/b/o Cohen & Steers Global

Infrastructure Fund, Inc
	 	c/o Cohen & Steers Capital

Management, Inc.

280 Park Avenue, 10th Floor

New York, NY 10017

	Cohen & Steers Capital Management, Inc.

o/b/o Cohen & Steers Select

Utility Fund
	 	c/o Cohen & Steers Capital

Management, Inc.

280 Park Avenue, 10th Floor

New York, NY 10017

	Tortoise Energy Infrastructure

Corporation
	 	Zachary A. Hamel CFA — Managing

Director Tortoise Capital Advisors, LLC

11550 Ash Street, Suite 300

Leawood, KS 66211

	Tortoise Energy Capital Corporation
	 	Zachary A. Hamel CFA — Managing

Director Tortoise Capital Advisors, LLC

11550 Ash Street, Suite 300

Leawood, KS 66211

	Tortoise North American Energy

Corporation
	 	Zachary A. Hamel CFA — Managing

Director Tortoise Capital Advisors, LLC

11550 Ash Street, Suite 300

Leawood, KS 66211

	Tortoise MLP Fund, Inc.
	 	Zachary A. Hamel CFA — Managing

Director Tortoise Capital Advisors, LLC

11550 Ash Street, Suite 300

Leawood, KS 66211

Schedule B to Unit Purchase Agreement

 

 

	 	 	 
	Purchaser	 	Address
	R3 Capital Partners Master (DE), L.P.
	 	Paul Tice

Managing Director

BlackRock, Inc.

Park Avenue Plaza

55 East 52nd Street

New York, NY 10055

212-810-8562

paul.tice@blackrock.com

	Harvest Infrastructure Partners Fund LLC
	 	Harvest Infrastructure Partners Fund LLC

100 West Lancaster Avenue

Second Floor

Wayne, Pennsylvania 19087

Attention: Anthony Merhige

Fax: 610-998-9775

	Harvest Sharing LLC
	 	Harvest Sharing LLC

100 West Lancaster Avenue

Second Floor

Wayne, Pennsylvania 19087

Attention: Anthony Merhige

Fax: 610-998-9775

	Harvest MLP Partners
	 	Harvest MLP Partners

100 West Lancaster Avenue

Second Floor

Wayne, Pennsylvania 19087

Attention: Anthony Merhige

Fax: 610-998-9775

	Harvest MLP Partners II
	 	Harvest MLP Partners II

100 West Lancaster Avenue

Second Floor

Wayne, Pennsylvania 19087

Attention: Anthony Merhige

Fax: 610-998-9775

	Harvest MSRA
	 	Harvest MSRA

100 West Lancaster Avenue

Second Floor

Wayne, Pennsylvania 19087

Attention: Anthony Merhige

Fax: 610-998-9775

Schedule B to Unit Purchase Agreement

 

 

	 	 	 
	Purchaser	 	Address
	AP Capital Holdings LLC
	 	AP Capital Holdings LLC

100 West Lancaster Avenue

Second Floor

Wayne, Pennsylvania 19087

Attention: Anthony Merhige

Fax: 610-998-9775

	FAMCO MLP & Energy Infrastructure

Fund
	 	Quinn Kiley

8235 Forsyth Blvd., Suite 700

St. Louis, Missouri 63105

Fax: 314-446-1407

	SOF Investments, L.P.
	 	MSD Capital, L.P.

645 Fifth Avenue, 21st Floor

New York, NY 10022

Fax: 212-303-1772

Attention: Marcello Liquori

	Taconic Opportunity Fund L.P.
	 	Michael Zaczyk

Taconic Capital Advisors LP

450 Park Avenue

New York, NY 10022

Fax: 212-209-3124

	The Northwestern Mutual Life

Insurance Company
	 	The Northwestern Mutual Life

Insurance Company

720 E. Wisconsin Avenue.

Milwaukee, WI, 53202

Attention: Sean Twohig

Fax (414) 665-7124

With copy to Abim Kolawole, Esq.

Fax (414) 625-1748

E-mail: abimkolawole@northwesternmutual.com

	Ball & Co fbo Fidelity Securities

Fund: Fidelity Dividend Growth

Fund
	 	Andrew Boyd

82 Devonshire St

V13H

Boston, MA 02109

	Rowwater & Co fbo Fidelity Advisor
Series I: Fidelity Advisor
Dividend Growth Fund
	 	Andrew Boyd

82 Devonshire St

V13H

Boston, MA 02109

Schedule B to Unit Purchase Agreement

 

 

	 	 	 
	Purchaser	 	Address
	M Gardiner & Co fbo Variable

Insurance Products Fund III:

Balanced Portfolio
	 	Andrew Boyd

82 Devonshire St

V13H

Boston, MA 02109

	Mag & Co fbo Variable

Insurance Products Fund II:

Contrafund Portfolio
	 	Andrew Boyd

82 Devonshire St

V13H

Boston, MA 02109

	Ball & Co fbo Fidelity Puritan

Trust: Fidelity Balanced Fund
	 	Andrew Boyd

82 Devonshire St

V13H

Boston, MA 02109

	M Gardiner & Co fbo Fidelity
Advisor Series I: Fidelity
Advisor Balanced Fund
	 	Andrew Boyd

82 Devonshire St

V13H

Boston, MA 02109

	Booth & Co fbo Fidelity
Devonshire Trust: Fidelity
Series All-Sector Equity Fund
	 	Andrew Boyd

82 Devonshire St

V13H

Boston, MA 02109

	RCH Energy MLP Fund, L.P.
	 	RR Advisors, LLC

3953 Maple Avenue

Suite 180

Dallas, Texas 75219

Attention: Robert Raymond & Sean Maher

Fax: (214) 871-8683

	Kayne Anderson MLP Investment

Company
	 	James C. Baker

Kayne Anderson Capital Advisors, L.P.

717 Texas Avenue, Suite 3100

Houston, Texas 77002

Fax: 713-665-7359

	Kayne Anderson Energy Total
Return Fund, Inc.
	 	James C. Baker

Kayne Anderson Capital Advisors, L.P.

717 Texas Avenue, Suite 3100

Houston, Texas 77002

Fax: 713-665-7359

Schedule B to Unit Purchase Agreement

 

 

	 	 	 
	Purchaser	 	Address
	Kayne Anderson Energy Development

Company
	 	James C. Baker

Kayne Anderson Capital Advisors, L.P.

717 Texas Avenue, Suite 3100

Houston, Texas 77002

Fax: 713-665-7359

	Kayne Anderson Midstream/Energy
Fund, Inc.
	 	James C. Baker

Kayne Anderson Capital Advisors, L.P.

717 Texas Avenue, Suite 3100

Houston, Texas 77002

Fax: 713-665-7359

	Kayne Midstream Specialty Fund, LP
	 	James C. Baker

Kayne Anderson Capital Advisors, L.P.

717 Texas Avenue, Suite 3100

Houston, Texas 77002

Fax: 713-665-7359

	Kayne Anderson MLP Fund, LP
	 	James C. Baker

Kayne Anderson Capital Advisors, L.P.

717 Texas Avenue, Suite 3100

Houston, Texas 77002

Fax: 713-665-7359

	Kayne Anderson Midstream

Institutional Fund, LP
	 	James C. Baker

Kayne Anderson Capital Advisors, L.P.

717 Texas Avenue, Suite 3100

Houston, Texas 77002

Fax: 713-665-7359

	Kayne Anderson Real Assets Fund, LP
	 	James C. Baker

Kayne Anderson Capital Advisors, L.P.

717 Texas Avenue, Suite 3100

Houston, Texas 77002

Fax: 713-665-7359

	Kayne Anderson Capital Income

Partners (QP), LP
	 	James C. Baker

Kayne Anderson Capital Advisors, L.P.

717 Texas Avenue, Suite 3100

Houston, Texas 77002

Fax: 713-665-7359

	Kayne Anderson Income Partners, LP
	 	James C. Baker

Kayne Anderson Capital Advisors, L.P.

717 Texas Avenue, Suite 3100

Houston, Texas 77002

Fax: 713-665-7359

Schedule B to Unit Purchase Agreement

 

 

Exhibit A — Form of Registration Rights Agreement

Exhibit A to Unit Purchase Agreement

 

 

 

REGISTRATION RIGHTS AGREEMENT

BY AND AMONG

BUCKEYE PARTNERS, L.P.

AND

THE INVESTORS NAMED ON SCHEDULE A HERETO

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 

	ARTICLE I DEFINITIONS	 	 	1	 
	 
	 	 	 	 	 	 
	Section 1.01
	 	Definitions	 	 	1	 
	Section 1.02
	 	Registrable Securities	 	 	3	 
	 
	 	 	 	 	 	 
	ARTICLE II REGISTRATION RIGHTS	 	 	3	 
	 
	 	 	 	 	 	 
	Section 2.01
	 	Registration	 	 	3	 
	Section 2.02
	 	Piggyback Rights	 	 	4	 
	Section 2.03
	 	Delay Rights	 	 	6	 
	Section 2.04
	 	Underwritten Offerings	 	 	7	 
	Section 2.05
	 	Sale Procedures	 	 	8	 
	Section 2.06
	 	Cooperation by Holders	 	 	11	 
	Section 2.07
	 	Restrictions on Public Sale by
Holders of Registrable Securities	 	 	11	 
	Section 2.08
	 	Expenses	 	 	11	 
	Section 2.09
	 	Indemnification	 	 	12	 
	Section 2.10
	 	Rule 144 Reporting	 	 	14	 
	Section 2.11
	 	Transfer or Assignment of Registration Rights	 	 	15	 
	Section 2.12
	 	Limitation on Subsequent Registration Rights	 	 	15	 
	 
	 	 	 	 	 	 
	ARTICLE III MISCELLANEOUS	 	 	15	 
	 
	 	 	 	 	 	 
	Section 3.01
	 	Communications	 	 	15	 
	Section 3.02
	 	Successor and Assigns	 	 	16	 
	Section 3.03
	 	Assignment of Rights	 	 	16	 
	Section 3.04
	 	Recapitalization, Exchanges, Etc. Affecting the Units	 	 	16	 
	Section 3.05
	 	Aggregation of Registrable Securities	 	 	16	 
	Section 3.06
	 	Specific Performance	 	 	16	 
	Section 3.07
	 	Counterparts	 	 	17	 
	Section 3.08
	 	Headings	 	 	17	 
	Section 3.09
	 	Governing Law	 	 	17	 
	Section 3.10
	 	Severability of Provisions	 	 	17	 
	Section 3.11
	 	Entire Agreement	 	 	17	 
	Section 3.12
	 	Amendment	 	 	17	 
	Section 3.13
	 	No Presumption	 	 	17	 
	Section 3.14
	 	Obligations Limited to Parties to Agreement	 	 	17	 
	Section 3.15
	 	Interpretation	 	 	18	 

Schedule A — Investor List; Notice and Contact Information; Opt-Out

 

 

REGISTRATION RIGHTS AGREEMENT

     This REGISTRATION RIGHTS AGREEMENT (this “Agreement”) is made and entered into as of
December 18, 2010, by and among Buckeye Partners, L.P., a Delaware limited partnership (the
“Partnership”), and each of the Persons set forth on Schedule A to this Agreement
(each, an “Investor” and collectively, the “Investors”).

     WHEREAS, this Agreement is made in connection with the entry into the LP Unit Purchase
Agreement, on or prior to the date hereof, by and among the Partnership and the Investors (the
“PIPE (LP) Unit Purchase Agreement”); and

     WHEREAS, the Partnership has agreed to provide the registration and other rights set forth in
this Agreement for the benefit of the Investors pursuant to the PIPE (LP) Unit Purchase Agreement.

     NOW THEREFORE, in consideration of the mutual covenants and agreements set forth herein and
for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged
by each party hereto, the parties hereby agree as follows:

ARTICLE I

DEFINITIONS

     Section 1.01 Definitions. Capitalized terms used herein without definition shall have
the meanings given to them in the PIPE (LP) Unit Purchase Agreement. The terms set forth below are
used herein as so defined:

     “Affiliate” means, with respect to any Person, any other Person that directly or
indirectly through one or more intermediaries controls, is controlled by or is under common control
with, the Person in question. As used herein, the term “control” means the possession, direct or
indirect, of the power to direct or cause the direction of the management and policies of a Person,
whether through ownership of voting securities, by contract or otherwise.

     “Agreement” has the meaning specified therefor in the introductory paragraph of this
Agreement.

     “ArcLight/Kelso Registration Rights Agreement” means that certain Registration Rights
Agreement, by and among Buckeye, BGH GP Holdings, LLC, ArcLight Energy Partners Fund III, L.P.,
ArcLight Energy Partners Fund IV, L.P., Kelso Investment Associates VII, L.P. and KEP VI, LLC,
dated as of June 10, 2010.

     “Commission” means the U.S. Securities and Exchange Commission.

     “Effectiveness Period” has the meaning specified therefor in Section 2.01(a)
of this Agreement.

     “Existing Registration Rights Agreements” means, collectively, (a) that certain
Registration Rights Agreement by and among the Partnership, First Reserve and each of the

1

 

other Persons set forth on Schedule A thereto dated as of the date hereof and (b) the ArcLight/Kelso
Registration Rights Agreement.

     “First Reserve” means FR XI Offshore AIV, L.P., an exempted limited partnership formed
under the laws of the Cayman Islands.

     “General Partner” means Buckeye GP LLC, a Delaware limited liability company.

     “Holder” means the record holder of any Registrable Securities.

     “Included Registrable Securities” has the meaning specified therefor in Section
2.02(a) of this Agreement.

     “Investor” and “Investors” have the meanings specified therefor in the
introductory paragraph of this Agreement.

     “Liquidated Damages” has the meaning specified therefor in Section 2.01(b) of
this Agreement.

     “Liquidated Damages Multiplier” means the product of the LP Unit Price times the
number of Purchased Units purchased by such Investor and that may not be disposed of without
restriction pursuant to any section of Rule 144 (or any similar provision then in effect) under the
Securities Act.

     “Losses” has the meaning specified therefor in Section 2.09(a) of this
Agreement.

     “Managing Underwriter” means, with respect to any Underwritten Offering, the
book-running lead manager of such Underwritten Offering.

     “Opt-Out Notice” has the meaning specified therefor in Section 2.02(a) of this
Agreement.

     “Parity Securities” has the meaning specified therefor in Section 2.02(b) of
this Agreement.

     “Partnership” has the meaning specified therefor in the introductory paragraph of this
Agreement.

     “Person” means an individual or a corporation, limited liability company, partnership,
joint venture, trust, unincorporated organization, association, government agency or political
subdivision thereof or other entity.

     “PIPE (LP) Unit Purchase Agreement” has the meaning specified therefor in the recitals
of this Agreement.

     “Registrable Securities” means (i) the LP Units to be acquired by the Investors
pursuant to the PIPE (LP) Unit Purchase Agreement and (ii) any LP Units issued as Liquidated
Damages pursuant to Section 2.01(b) of this Agreement.

2

 

     “Registration Expenses” has the meaning specified therefor in Section 2.08(b)
of this Agreement.

     “Registration Statement” has the meaning specified therefor in Section 2.01(a)
of this Agreement.

     “Selling Expenses” has the meaning specified therefor in Section 2.08(b) of
this Agreement.

     “Selling Holder” means a Holder who is selling Registrable Securities pursuant to a
registration statement.

     “Selling Holder Indemnified Persons” has the meaning specified therefor in Section
2.09(a) of this Agreement.

     “Underwritten Offering” means an offering (including an offering pursuant to a
Registration Statement) in which LP Units are sold to an underwriter on a firm commitment basis for
reoffering to the public or an offering that is a “bought deal” with one or more investment banks.

     Section 1.02 Registrable Securities. Any Registrable Security will cease to be a
Registrable Security (a) when a registration statement covering such Registrable Security becomes
or has been declared effective by the Commission and such Registrable Security has been sold or
disposed of pursuant to such effective registration statement; (b) when such Registrable Security
has been disposed of pursuant to any section of Rule 144 (or any similar provision then in effect)
under the Securities Act; (c) when such Registrable Security is held by the Partnership or one of
its subsidiaries or Affiliates; (d) when such Registrable Security has been sold or disposed of in
a private transaction in which the transferor’s rights under this Agreement are not assigned to the
transferee of such securities pursuant to Section 2.11 hereof or (e) one year after the
Closing Date.

ARTICLE II

REGISTRATION RIGHTS

     Section 2.01 Registration.

     (a) Effectiveness Deadline. Following the date hereof, but no later than 15 days
following the Closing Date, the Partnership shall prepare and file a registration statement (the
“Registration Statement”) under the Securities Act with respect to all of the Registrable
Securities. The Registration Statement filed pursuant to this Section 2.01(a) shall be on
such appropriate registration form of the Commission as shall be selected by the Partnership. The
Partnership shall use its commercially reasonable efforts to cause the Registration Statement to
become effective on or as soon as practicable after the Closing Date. Any Registration Statement
shall provide for the resale pursuant to any method or combination of methods legally available to,
and requested by, the Holders of any and all Registrable Securities covered by such Registration
Statement. The Partnership shall use its commercially reasonable efforts to cause the Registration
Statement filed pursuant to this Section 2.01(a) to be effective, supplemented and amended
to the extent necessary to ensure that it is available for the resale of all Registrable

3

 

Securities by the Holders until all Registrable Securities covered by such Registration Statement have ceased
to be Registrable Securities (the “Effectiveness Period”). The Registration Statement when
effective (including the documents incorporated therein by reference) will comply as to form in all
material respects with all applicable requirements of the Securities Act and the Exchange Act and
will not contain an untrue statement of a material fact or omit to state a material fact required
to be stated therein or necessary to make the statements therein not misleading (in the case of any
prospectus contained in such Registration Statement, in the light of the circumstances under which
a statement is made). As soon as practicable following the date that the Registration Statement
becomes effective, but in any event within two (2) Business Days of such date, the Partnership
shall provide the Holders with written notice of the effectiveness of the Registration Statement.

     (b) Failure to Go Effective. If the Registration Statement required by Section
2.01(a) is not declared effective within 90 days after the Closing Date, then each Holder shall
be entitled to a payment (with respect to the Purchased Units of each such Holder), as liquidated
damages and not as a penalty, of 0.25% of the Liquidated Damages Multiplier per 30-day period, that
shall accrue daily, for the first 60 days following the 90th day, increasing by an additional 0.25%
of the Liquidated Damages Multiplier per 30-day period, that shall accrue daily, for each
subsequent 30 days, up to a maximum of 1.00% of the Liquidated Damages Multiplier per 30-day period
(the “Liquidated Damages”). The Liquidated Damages payable pursuant to the immediately
preceding sentence shall be payable within ten (10) Business Days after the end of each such 30-day
period. Any Liquidated Damages shall be paid to each Holder in immediately available funds;
provided, however, if the Partnership certifies that it is unable to pay Liquidated Damages in cash
because such payment would result in a breach under a credit facility or other debt instrument,
then the Partnership may pay the Liquidated Damages in kind in the form of the issuance of
additional LP Units. Upon any issuance of LP Units as Liquidated Damages, the Partnership shall
promptly (i) prepare and file an amendment to the Registration Statement prior to its effectiveness
adding such LP Units to such Registration Statement as additional Registrable Securities and (ii)
prepare and file a supplemental listing application with the NYSE to list such additional LP Units.
The determination of the number of LP Units to be issued as Liquidated Damages shall be equal to
the amount of Liquidated Damages divided by the volume-weighted average closing price of the LP
Units on the NYSE for the ten (10) trading days immediately preceding the date on which the
Liquidated Damages payment is due, less a discount to such average closing price of 2.00%. The
payment of Liquidated Damages to a Holder shall cease at the earlier of (i) the Registration
Statement becoming effective or (ii) the Purchased Units of such Holder becoming eligible for
resale without restriction under any section of Rule 144 (or any similar provision then in effect)
under the Securities Act, assuming that each Holder is not an Affiliate of the Partnership, and any
payment of Liquidated Damages shall be prorated for any period of less than 30 days in which the
payment of Liquidated Damages ceases. If the
Partnership is unable to cause a Registration Statement to go effective within 180 days after
the Closing Date as a result of an acquisition, merger, reorganization, disposition or other
similar transaction, then the Partnership may request a waiver of the Liquidated Damages, and each
Holder may individually grant or withhold its consent to such request in its discretion.

     Section 2.02 Piggyback Rights.

4

 

     (a) Participation. In the event the Registrable Securities may not be disposed of
without restriction pursuant to any section of Rule 144 (or any similar provision then in effect)
under the Securities Act, if the Partnership proposes to file (i) a shelf registration statement
other than the Registration Statement contemplated by Section 2.01(a), (ii) a prospectus
supplement to an effective shelf registration statement, other than the Registration Statement
contemplated by Section 2.01(a) of this Agreement and Holders may be included without the
filing of a post-effective amendment thereto, or (iii) a registration statement, other than a shelf
registration statement, in each case, for the sale of LP Units in an Underwritten Offering for its
own account and/or another Person, then as soon as practicable following the engagement of counsel
by the Partnership to prepare the documents to be used in connection with an Underwritten Offering,
the Partnership shall give notice (including, but not limited to, notification by electronic mail)
of such proposed Underwritten Offering to each Holder (together with its Affiliates) holding at
least $10.0 million of the then-outstanding Registrable Securities (based on the LP Unit Price) and
such notice shall offer such Holders the opportunity to include in such Underwritten Offering such
number of Registrable Securities (the “Included Registrable Securities”) as each such
Holder may request in writing; provided, however, that if the Partnership has been advised by the
Managing Underwriter that the inclusion of Registrable Securities for sale for the benefit of the
Holders will have an adverse effect on the price, timing or distribution of the LP Units in the
Underwritten Offering, then (A) the Partnership shall not be required to offer such opportunity to
the Holders or (B) if any Registrable Securities can be included in the Underwritten Offering in
the opinion of the Managing Underwriter, then the amount of Registrable Securities to be offered
for the accounts of Holders shall be determined based on the provisions of Section 2.02(b).
Any notice required to be provided in this Section 2.02(a) to Holders shall be provided on
a Business Day pursuant to Section 3.01 hereof and receipt of such notice shall be
confirmed by the Holder. Each such Holder shall then have two (2) Business Days (or one (1)
Business Day in connection with any overnight or bought Underwritten Offering) after notice has
been delivered to request in writing the inclusion of Registrable Securities in the Underwritten
Offering. If no written request for inclusion from a Holder is received within the specified time,
each such Holder shall have no further right to participate in such Underwritten Offering. If, at
any time after giving written notice of its intention to undertake an Underwritten Offering and
prior to the closing of such Underwritten Offering, the Partnership shall determine for any reason
not to undertake or to delay such Underwritten Offering, the Partnership may, at its election, give
written notice of such determination to the Selling Holders and, (x) in the case of a determination
not to undertake such Underwritten Offering, shall be relieved of its obligation to sell any
Included Registrable Securities in connection with such terminated Underwritten Offering, and (y)
in the case of a determination to delay such Underwritten Offering, shall be permitted to delay
offering any Included Registrable Securities for the same period as the delay in the Underwritten
Offering. Any Selling Holder shall have the right to withdraw such Selling Holder’s request for
inclusion of such Selling Holder’s Registrable Securities in such Underwritten Offering by giving
written notice to the Partnership of such withdrawal at or prior to the time of pricing of such
Underwritten Offering. Any Holder may deliver written notice (an “Opt-Out Notice”) to the
Partnership requesting that such Holder not receive notice from the Partnership of any proposed
Underwritten Offering; provided, however, that such Holder may later revoke any such Opt-Out Notice
in writing. Following receipt of an Opt-Out Notice from a Holder (unless subsequently revoked),
the Partnership shall not be required to deliver any notice to such Holder pursuant to this Section
2.02(a) and such Holder shall no longer be entitled to participate in Underwritten

5

 

Offerings by the Partnership pursuant to this Section 2.02(a). The Holders indicated on Schedule A hereto
shall each be deemed to have delivered an Opt-Out Notice as of the date hereof.

     (b) Priority. If the Managing Underwriter or Underwriters of any proposed
Underwritten Offering advises the Partnership that the total amount of Registrable Securities that
the Selling Holders and any other Persons intend to include in such offering exceeds the number
that can be sold in such offering without being likely to have an adverse effect on the price,
timing or distribution of the LP Units offered or the market for the LP Units, then the LP Units to
be included in such Underwritten Offering shall include the number of Registrable Securities that
such Managing Underwriter or Underwriters advises the Partnership can be sold without having such
adverse effect, with such number to be allocated (i) first, to the Partnership and, if applicable,
to those holders of Parity Securities who initiated the Underwritten Offering pursuant to rights
granted such holders under the ArcLight/Kelso Registration Rights Agreement and (ii) second, pro
rata among the Selling Holders who have requested participation in such Underwritten Offering and,
except as provided in clause (i), any other holder of securities of the Partnership having rights
of registration that are neither expressly senior nor subordinated to the Registrable Securities
(the “Parity Securities”). As of the date hereof, Parity Securities include securities of
the Partnership covered by the Existing Registration Rights Agreements. The pro rata allocations
for each Selling Holder who has requested participation in such Underwritten Offering shall be the
product of (a) the aggregate number of Registrable Securities proposed to be sold in such
Underwritten Offering multiplied by (b) the fraction derived by dividing (x) the number of
Registrable Securities owned on the Closing Date by such Selling Holder by (y) the aggregate number
of Registrable Securities owned on the Closing Date by all Selling Holders plus the aggregate
number of Parity Securities owned on the Closing Date by all holders of Parity Securities that are
participating in the Underwritten Offering.

     (c) Termination of Piggyback Registration Rights. Each Holder’s rights under
Section 2.02 shall terminate upon such Holder (together with its Affiliates) ceasing to
hold at least $10.0 million of Registrable Securities (based on the LP Unit Price). Each Holder
shall notify the Partnership in writing when such Holder holds less than $10.0 million of
Registrable Securities (based on the LP Unit Price).

     Section 2.03 Delay Rights.

     Notwithstanding anything to the contrary contained herein, the Partnership may, upon written
notice to any Selling Holder whose Registrable Securities are included in the Registration
Statement or other registration statement contemplated by this Agreement, suspend such Selling
Holder’s use of any prospectus which is a part of the Registration Statement or other
registration statement (in which event the Selling Holder shall discontinue sales of the
Registrable Securities pursuant to the Registration Statement or other registration statement
contemplated by this Agreement but may settle any previously made sales of Registrable Securities)
if (i) the Partnership is pursuing an acquisition, merger, reorganization, disposition or other
similar transaction and the Partnership determines in good faith that the Partnership’s ability to
pursue or consummate such a transaction would be materially adversely affected by any required
disclosure of such transaction in the Registration Statement or other registration statement or
(ii) the Partnership has experienced some other material non-public event the disclosure of which
at such time, in the good faith judgment of the Partnership, would materially adversely affect the

6

 

Partnership; provided, however, in no event shall the Selling Holders be suspended from selling
Registrable Securities pursuant to the Registration Statement or other registration statement for a
period that exceeds an aggregate of 60 days in any 180-day period or 105 days in any 365-day
period, in each case, exclusive of days covered by any lock-up agreement executed by a Selling
Holder in connection with any Underwritten Offering. Upon disclosure of such information or the
termination of the condition described above, the Partnership shall provide prompt notice to the
Selling Holders whose Registrable Securities are included in the Registration Statement, and shall
promptly terminate any suspension of sales it has put into effect and shall take such other
reasonable actions to permit registered sales of Registrable Securities as contemplated in this
Agreement.

     If (i) the Selling Holders shall be prohibited from selling their Registrable Securities under
the Registration Statement or other registration statement contemplated by this Agreement as a
result of a suspension pursuant to the immediately preceding paragraph in excess of the periods
permitted therein or (ii) the Registration Statement or other registration statement contemplated
by this Agreement is filed and declared effective but, during the Effectiveness Period, shall
thereafter cease to be effective or fail to be usable for its intended purpose without being
succeeded within 60 Business Days by a post-effective amendment thereto, a supplement to the
prospectus or a report filed with the Commission pursuant to Section 13(a), 13(c), 14 or l5(d) of
the Exchange Act, then, until the suspension is lifted or a post-effective amendment, supplement or
report is filed with the Commission, but not including any day on which a suspension is lifted or
such amendment, supplement or report is filed and declared effective, if applicable, the
Partnership shall pay the Selling Holders an amount equal to the Liquidated Damages, following the
earlier of (x) the date on which the suspension period exceeded the permitted period and (y) the
sixty-first (61st) Business Day after the Registration Statement or other registration statement
contemplated by this Agreement ceased to be effective or failed to be useable for its intended
purposes, as liquidated damages and not as a penalty (for purposes of calculation Liquidated
Damages, the date in (x) or (y) above shall be deemed the “90th day,” as used in the definition of
Liquidated Damages). For purposes of this paragraph, a suspension shall be deemed lifted on the
date that notice that the suspension has been terminated is delivered to the Selling Holders.
Liquidated Damages pursuant to this paragraph shall cease upon the Purchased Units of such Holder
becoming eligible for resale without restriction under any section of Rule 144 (or any similar
provision then in effect) under the Securities Act, assuming that each Holder is not an Affiliate
of the Partnership, and any payment of Liquidated Damages shall be prorated for any period of less
than 30 days in which the payment of Liquidated Damages ceases.

     Section 2.04 Underwritten Offerings.

     (a) General Procedures. In connection with any Underwritten Offering under this
Agreement, the Partnership shall be entitled to select the Managing Underwriter or Underwriters.
In connection with an Underwritten Offering contemplated by this Agreement in which a Selling
Holder participates, each Selling Holder and the Partnership shall be obligated to enter into an
underwriting agreement that contains such representations, covenants, indemnities and other rights
and obligations as are customary in underwriting agreements for firm commitment offerings of
securities. No Selling Holder may participate in such Underwritten Offering unless such Selling
Holder agrees to sell its Registrable Securities on the basis provided in such

7

 

underwriting agreement and completes and executes all questionnaires, powers of attorney, indemnities and other
documents reasonably required under the terms of such underwriting agreement. Each Selling Holder
may, at its option, require that any or all of the representations and warranties by, and the other
agreements on the part of, the Partnership to and for the benefit of such underwriters also be made
to and for such Selling Holder’s benefit and that any or all of the conditions precedent to the
obligations of such underwriters under such underwriting agreement also be conditions precedent to
its obligations. No Selling Holder shall be required to make any representations or warranties to
or agreements with the Partnership or the underwriters other than representations, warranties or
agreements regarding such Selling Holder, its authority to enter into such underwriting agreement
and to sell, and its ownership of, the securities being registered on its behalf, its intended
method of distribution and any other representation required by Law. If any Selling Holder
disapproves of the terms of an underwriting, such Selling Holder may elect to withdraw therefrom by
notice to the Partnership and the Managing Underwriter; provided, however, that such withdrawal
must be made up to and including the time of pricing of such Underwritten Offering. No such
withdrawal or abandonment shall affect the Partnership’s obligation to pay Registration Expenses.
The Partnership’s management may but shall not be required to participate in a roadshow or similar
marketing effort in connection with any Underwritten Offering.

     (b) No Demand Rights. Notwithstanding any other provision of this Agreement, no
Holder shall be entitled to any “demand” rights or similar rights that would require the
Partnership to effect an Underwritten Offering solely on behalf of the Holders.

     Section 2.05 Sale Procedures. In connection with its obligations under this
Article II, the Partnership will, as expeditiously as possible:

     (a) prepare and file with the Commission such amendments and supplements to the Registration
Statement and the prospectus used in connection therewith as may be necessary to keep the
Registration Statement effective for the Effectiveness Period and as may be necessary to comply
with the provisions of the Securities Act with respect to the disposition of all Registrable
Securities covered by the Registration Statement;

     (b) if a prospectus supplement will be used in connection with the marketing of an
Underwritten Offering from the Registration Statement and the Managing Underwriter at any time
shall notify the Partnership in writing that, in the sole judgment of such Managing Underwriter,
inclusion of detailed information to be used in such prospectus supplement is of material
importance to the success of the Underwritten Offering of such Registrable Securities, the
Partnership shall use its commercially reasonable efforts to include such information in such
prospectus supplement;

     (c) furnish to each Selling Holder (i) as far in advance as reasonably practicable before
filing the Registration Statement or any other registration statement contemplated by this
Agreement or any supplement or amendment thereto, upon request, copies of reasonably complete
drafts of all such documents proposed to be filed (including exhibits and each document
incorporated by reference therein to the extent then required by the rules and regulations of the
Commission), and provide each such Selling Holder the opportunity to object to any information
pertaining to such Selling Holder and its plan of distribution that is contained

8

 

therein and make the corrections reasonably requested by such Selling Holder with respect to such information prior
to filing the Registration Statement or such other registration statement or supplement or
amendment thereto, and (ii) such number of copies of the Registration Statement or such other
registration statement and the prospectus included therein and any supplements and amendments
thereto as such Selling Holder may reasonably request in order to facilitate the public sale or
other disposition of the Registrable Securities covered by such Registration Statement or other
registration statement;

     (d) if applicable, use its commercially reasonable efforts to register or qualify the
Registrable Securities covered by the Registration Statement or any other registration statement
contemplated by this Agreement under the securities or blue sky laws of such jurisdictions as the
Selling Holders or, in the case of an Underwritten Offering, the Managing Underwriter, shall
reasonably request; provided, however, that the Partnership will not be required to qualify
generally to transact business in any jurisdiction where it is not then required to so qualify or
to take any action that would subject it to general service of process in any such jurisdiction
where it is not then so subject;

     (e) promptly notify each Selling Holder, at any time when a prospectus relating thereto is
required to be delivered by any of them under the Securities Act, of (i) the filing of the
Registration Statement or any other registration statement contemplated by this Agreement or any
prospectus or prospectus supplement to be used in connection therewith, or any amendment or
supplement thereto, and, with respect to such Registration Statement or any other registration
statement or any post-effective amendment thereto, when the same has become effective; and (ii) the
receipt of any written comments from the Commission with respect to any filing referred to in
clause (i) and any written request by the Commission for amendments or supplements to the
Registration Statement or any other registration statement or any prospectus or prospectus
supplement thereto;

     (f) immediately notify each Selling Holder, at any time when a prospectus relating thereto is
required to be delivered under the Securities Act, of (i) the happening of any event as a result of
which the prospectus or prospectus supplement contained in the Registration Statement or any other
registration statement contemplated by this Agreement, as then in effect, includes an
untrue statement of a material fact or omits to state any material fact required to be stated
therein or necessary to make the statements therein not misleading (in the case of any prospectus
contained therein, in the light of the circumstances under which a statement is made); (ii) the
issuance or express threat of issuance by the Commission of any stop order suspending the
effectiveness of the Registration Statement or any other registration statement contemplated by
this Agreement, or the initiation of any proceedings for that purpose; or (iii) the receipt by the
Partnership of any notification with respect to the suspension of the qualification of any
Registrable Securities for sale under the applicable securities or blue sky laws of any
jurisdiction. Following the provision of such notice, the Partnership agrees to as promptly as
practicable amend or supplement the prospectus or prospectus supplement or take other appropriate
action so that the prospectus or prospectus supplement does not include an untrue statement of a
material fact or omit to state a material fact required to be stated therein or necessary to make
the statements therein not misleading in the light of the circumstances then existing and to take
such other commercially reasonable action as is necessary to remove a stop order, suspension,
threat thereof or proceedings related thereto;

9

 

     (g) upon request and subject to appropriate confidentiality obligations, furnish to each
Selling Holder copies of any and all transmittal letters or other correspondence with the
Commission or any other governmental agency or self-regulatory body or other body having
jurisdiction (including any domestic or foreign securities exchange) relating to such offering of
Registrable Securities;

     (h) in the case of an Underwritten Offering, furnish upon request, (i) an opinion of counsel
for the Partnership dated the date of the closing under the underwriting agreement and (ii) a “cold
comfort” letter, dated the pricing date of such Underwritten Offering and a letter of like kind
dated the date of the closing under the underwriting agreement, in each case, signed by the
independent public accountants who have certified the Partnership’s financial statements included
or incorporated by reference into the applicable registration statement, and each of the opinion
and the “cold comfort” letter shall be in customary form and covering substantially the same
matters with respect to such registration statement (and the prospectus and any prospectus
supplement included therein) as have been customarily covered in opinions of issuer’s counsel and
in accountants’ letters delivered to the underwriters in Underwritten Offerings of securities by
the Partnership and such other matters as such underwriters and Selling Holders may reasonably
request;

     (i) otherwise use its commercially reasonable efforts to comply with all applicable rules and
regulations of the Commission, and make available to its security holders, as soon as reasonably
practicable, an earnings statement, which earnings statement shall satisfy the provisions of
Section 11(a) of the Securities Act and Rule 158 promulgated thereunder;

     (j) make available to the appropriate representatives of the Managing Underwriter and Selling
Holders access to such information and Partnership personnel as is reasonable and customary to
enable such parties to establish a due diligence defense under the Securities Act; provided, that
the Partnership need not disclose any non-public information to any such representative unless and
until such representative has entered into a confidentiality agreement with the Partnership;

     (k) cause all such Registrable Securities registered pursuant to this Agreement to be listed
on each securities exchange or nationally recognized quotation system on which similar securities
issued by the Partnership are then listed;

     (l) use its commercially reasonable efforts to cause the Registrable Securities to be
registered with or approved by such other governmental agencies or authorities as may be necessary
by virtue of the business and operations of the Partnership to enable the Selling Holders to
consummate the disposition of such Registrable Securities;

     (m) provide a transfer agent and registrar for all Registrable Securities covered by such
registration statement not later than the effective date of such registration statement;

     (n) enter into customary agreements and take such other actions as are reasonably requested by
the Selling Holders or the underwriters, if any, in order to expedite or facilitate the disposition
of such Registrable Securities; and

10

 

     (o) if requested by a Selling Holder, (i) incorporate in a prospectus supplement or
post-effective amendment such information as such Selling Holder reasonably requests to be included
therein relating to the sale and distribution of Registrable Securities, including information with
respect to the number of Registrable Securities being offered or sold, the purchase price being
paid therefor and any other terms of the offering of the Registrable Securities to be sold in such
offering and (ii) make all required filings of such prospectus supplement or post-effective
amendment after being notified of the matters to be incorporated in such prospectus supplement or
post-effective amendment.

     Each Selling Holder, upon receipt of notice from the Partnership of the happening of any event
of the kind described in subsection (f) of this Section 2.05, shall forthwith
discontinue offers and sales of the Registrable Securities by means of a prospectus or prospectus
supplement until such Selling Holder’s receipt of the copies of the supplemented or amended
prospectus contemplated by subsection (f) of this Section 2.05 or until it is
advised in writing by the Partnership that the use of the prospectus may be resumed and has
received copies of any additional or supplemental filings incorporated by reference in the
prospectus, and, if so directed by the Partnership, such Selling Holder will, or will request the
Managing Underwriter or Underwriters, if any, to deliver to the Partnership (at the Partnership’s
expense) all copies in their possession or control, other than permanent file copies then in such
Selling Holder’s possession, of the prospectus covering such Registrable Securities current at the
time of receipt of such notice.

     Section 2.06 Cooperation by Holders. The Partnership shall have no obligation to
include Registrable Securities of a Holder in the Registration Statement or in an Underwritten
Offering pursuant to Section 2.02(a) who has failed to timely furnish such information that
the Partnership determines, after consultation with its counsel, is reasonably required in order
for the registration statement or prospectus supplement, as applicable, to comply with the
Securities Act.

     Section 2.07 Restrictions on Public Sale by Holders of Registrable Securities.
Each Holder of Registrable Securities agrees to enter into a customary letter agreement
with underwriters providing such Holder will not effect any public sale or distribution of
Registrable Securities during the 60 calendar day period beginning on the date of a prospectus or
prospectus supplement filed with the Commission with respect to the pricing of any Underwritten
Offering, provided that (i) the duration of the foregoing restrictions shall be no longer than the
duration of the shortest restriction generally imposed by the underwriters on the Partnership or
the officers, directors or any other Affiliate of the Partnership on whom a restriction is imposed
and (ii) the restrictions set forth in this Section 2.07 shall not apply to any Registrable
Securities that are included in such Underwritten Offering by such Holder. In addition, this
Section 2.07 shall not apply to any Holder that is not entitled to participate in such
Underwritten Offering, whether because such Holder delivered an Opt-Out Notice prior to receiving
notice of the Underwritten Offering, because such Holder holds less than $10.0 million of the
then-outstanding Registrable Securities or because the Registrable Securities held by such Holder
may be disposed of without restriction pursuant to any section of Rule 144 (or any similar
provision then in effect) under the Securities Act.

     Section 2.08 Expenses.

11

 

     (a) Expenses. The Partnership will pay all reasonable Registration Expenses as
determined in good faith, including, in the case of an Underwritten Offering, whether or not any
sale is made pursuant to such Underwritten Offering. Each Selling Holder shall pay its pro rata
share of all Selling Expenses in connection with any sale of its Registrable Securities hereunder.
In addition, except as otherwise provided in Section 2.09 hereof, the Partnership shall not
be responsible for legal fees incurred by Holders in connection with the exercise of such Holders’
rights hereunder.

     (b) Certain Definitions. “Registration Expenses” means all expenses incident
to the Partnership’s performance under or compliance with this Agreement to effect the registration
of Registrable Securities on the Registration Statement pursuant to Section 2.01(a) or an
Underwritten Offering covered under this Agreement, and the disposition of such Registrable
Securities, including, without limitation, all registration, filing, securities exchange listing
and NYSE fees, all registration, filing, qualification and other fees and expenses of complying
with securities or blue sky laws, fees of the Financial Industry Regulatory Authority, fees of
transfer agents and registrars, all word processing, duplicating and printing expenses, any
transfer taxes and the fees and disbursements of counsel and independent public accountants for the
Partnership, including the expenses of any special audits or “cold comfort” letters required by or
incident to such performance and compliance. “Selling Expenses” means all underwriting
fees, discounts and selling commissions or similar fees or arrangements allocable to the sale of
the Registrable Securities.

     Section 2.09 Indemnification.

     (a) By the Partnership. In the event of a registration of any Registrable Securities
under the Securities Act pursuant to this Agreement, the Partnership will indemnify and hold
harmless each Selling Holder thereunder, its directors, officers, employees and agents and each
Person, if any, who controls such Selling Holder within the meaning of the Securities Act and the
Exchange Act, and its directors, officers, employees or agents (collectively, the “Selling
Holder Indemnified Persons”), against any losses, claims, damages, expenses or liabilities
(including reasonable attorneys’ fees and expenses) (collectively, “Losses”), joint or
several, to which such Selling Holder Indemnified Person may become subject under the Securities
Act, the Exchange Act or otherwise, insofar as such Losses (or actions or proceedings, whether
commenced or threatened, in respect thereof) arise out of or are based upon any untrue statement or
alleged untrue statement of any material fact (in the case of any prospectus, in light of the
circumstances under which such statement is made) contained in the Registration Statement or any
other registration statement contemplated by this Agreement, any preliminary prospectus, prospectus
supplement, free writing prospectus or final prospectus contained therein, or any amendment or
supplement thereof, or arise out of or are based upon the omission or alleged omission to state
therein a material fact required to be stated therein or necessary to make the statements therein
(in the case of a prospectus, in light of the circumstances under which they were made) not
misleading, and will reimburse each such Selling Holder Indemnified Person for any legal or other
expenses reasonably incurred by them in connection with investigating or defending any such Loss or
actions or proceedings; provided, however, that the Partnership will not be liable in any such case
if and to the extent that any such Loss arises out of or is based upon an untrue statement or
alleged untrue statement or omission or alleged omission so made in conformity with information
furnished by such Selling Holder Indemnified Person in writing specifically for

12

 

use in the Registration Statement or such other registration statement, or prospectus supplement, as
applicable. Such indemnity shall remain in full force and effect regardless of any investigation
made by or on behalf of such Selling Holder Indemnified Person, and shall survive the transfer of
such securities by such Selling Holder.

     (b) By Each Selling Holder. Each Selling Holder agrees severally and not jointly to
indemnify and hold harmless the Partnership, the General Partner, its directors, officers,
employees and agents and each Person, if any, who controls the Partnership within the meaning of
the Securities Act or of the Exchange Act, and its directors, officers, employees and agents, to
the same extent as the foregoing indemnity from the Partnership to the Selling Holders, but only
with respect to information regarding such Selling Holder furnished in writing by or on behalf of
such Selling Holder expressly for inclusion in the Registration Statement or any other registration
statement contemplated by this Agreement, any preliminary prospectus, prospectus supplement, free
writing prospectus or final prospectus contained therein, or any amendment or supplement thereof;
provided, however, that the liability of each Selling Holder shall not be greater in amount than
the dollar amount of the proceeds (net of any Selling Expenses) received by such Selling Holder
from the sale of the Registrable Securities giving rise to such indemnification.

     (c) Notice. Promptly after receipt by an indemnified party hereunder of notice of the
commencement of any action, such indemnified party shall, if a claim in respect thereof is to be
made against the indemnifying party hereunder, notify the indemnifying party in writing thereof,
but the omission so to notify the indemnifying party shall not relieve it from any liability that
it may have to any indemnified party other than under this Section 2.09. In any action
brought against any indemnified party, it shall notify the indemnifying party of the commencement
thereof. The indemnifying party shall be entitled to participate in and, to the extent it
shall wish, to assume and undertake the defense thereof with counsel reasonably satisfactory to
such indemnified party and, after notice from the indemnifying party to such indemnified party of
its election so to assume and undertake the defense thereof, the indemnifying party shall not be
liable to such indemnified party under this Section 2.09 for any legal expenses
subsequently incurred by such indemnified party in connection with the defense thereof other than
reasonable costs of investigation and of liaison with counsel so selected; provided, however, that,
(i) if the indemnifying party has failed to assume the defense or employ counsel reasonably
acceptable to the indemnified party or (ii) if the defendants in any such action include both the
indemnified party and the indemnifying party and counsel to the indemnified party shall have
concluded that there may be reasonable defenses available to the indemnified party that are
different from or additional to those available to the indemnifying party, or if the interests of
the indemnified party reasonably may be deemed to conflict with the interests of the indemnifying
party, then the indemnified party shall have the right to select a separate counsel and to assume
such legal defense and otherwise to participate in the defense of such action, with the reasonable
expenses and fees of such separate counsel and other reasonable expenses related to such
participation to be reimbursed by the indemnifying party as incurred. Notwithstanding any other
provision of this Agreement, no indemnifying party shall settle any action brought against any
indemnified party with respect to which such indemnified party is entitled to indemnification
hereunder without the consent of the indemnified party, unless the settlement thereof imposes no
liability or obligation on, and includes a complete and unconditional release from all liability
of, the indemnified party.

13

 

     (d) Contribution. If the indemnification provided for in this Section 2.09 is
held by a court or government agency of competent jurisdiction to be unavailable to any indemnified
party or is insufficient to hold them harmless in respect of any Losses, then each such
indemnifying party, in lieu of indemnifying such indemnified party, shall contribute to the amount
paid or payable by such indemnified party as a result of such Loss in such proportion as is
appropriate to reflect the relative fault of the indemnifying party on the one hand and of such
indemnified party on the other in connection with the statements or omissions that resulted in such
Losses, as well as any other relevant equitable considerations; provided, however, that in no event
shall such Selling Holder be required to contribute an aggregate amount in excess of the dollar
amount of proceeds (net of Selling Expenses) received by such Selling Holder from the sale of
Registrable Securities giving rise to such indemnification. The relative fault of the indemnifying
party on the one hand and the indemnified party on the other shall be determined by reference to,
among other things, whether the untrue or alleged untrue statement of a material fact or the
omission or alleged omission to state a material fact has been made by, or relates to, information
supplied by such party, and the parties’ relative intent, knowledge, access to information and
opportunity to correct or prevent such statement or omission. The parties hereto agree that it
would not be just and equitable if contributions pursuant to this paragraph were to be determined
by pro rata allocation or by any other method of allocation that does not take account of the
equitable considerations referred to herein. The amount paid by an indemnified party as a result
of the Losses referred to in the first sentence of this paragraph shall be deemed to include any
legal and other expenses reasonably incurred by such indemnified party in connection with
investigating or defending any Loss that is the subject of this paragraph. No person guilty of
fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be
entitled to contribution from any Person who is not guilty of such fraudulent misrepresentation.

     (e) Other Indemnification. The provisions of this Section 2.09 shall be in
addition to any other rights to indemnification or contribution that an indemnified party may have
pursuant to law, equity, contract or otherwise.

     Section 2.10 Rule 144 Reporting. With a view to making available the benefits of
certain rules and regulations of the Commission that may permit the sale of the Registrable
Securities to the public without registration, the Partnership agrees to use its commercially
reasonable efforts to:

     (a) make and keep public information regarding the Partnership available, as those terms are
understood and defined in Rule 144 under the Securities Act, at all times from and after the date
hereof;

     (b) file with the Commission in a timely manner all reports and other documents required of
the Partnership under the Securities Act and the Exchange Act at all times from and after the date
hereof; and

     (c) so long as a Holder owns any Registrable Securities, furnish, unless otherwise available
via EDGAR, to such Holder forthwith upon request a copy of the most recent annual or quarterly
report of the Partnership, and such other reports and documents so filed as such Holder may
reasonably request in availing itself of any rule or regulation of the Commission allowing such
Holder to sell any such securities without registration.

14

 

     Section 2.11 Transfer or Assignment of Registration Rights. The rights to cause the
Partnership to register Registrable Securities granted to the Investors by the Partnership under
this Article II may be transferred or assigned by any Investor to one or more transferees
or assignees of Registrable Securities; provided, however, that (a) unless the transferee or
assignee is an Affiliate of, and after such transfer or assignment continues to be an Affiliate of,
such Investor, the amount of Registrable Securities transferred or assigned to such transferee or
assignee shall represent at least $10.0 million of Registrable Securities (based on the LP Unit
Price), (b) the Partnership is given written notice prior to any said transfer or assignment,
stating the name and address of each such transferee or assignee and identifying the securities
with respect to which such registration rights are being transferred or assigned, and (c) each such
transferee or assignee assumes in writing responsibility for its portion of the obligations of such
Investor under this Agreement.

     Section 2.12 Limitation on Subsequent Registration Rights. From and after the date
hereof, the Partnership shall not, without the prior written consent of the Holders of a majority
of the Registrable Securities, enter into any agreement with any current or future holder of any
securities of the Partnership that would allow such current or future holder to require the
Partnership to include securities in any registration statement filed by the Partnership on a basis
other than pari passu with, or expressly subordinate to the rights of, the Holders of Registrable
Securities hereunder.

ARTICLE III

MISCELLANEOUS

     Section 3.01 Communications. All notices and other communications provided for or
permitted hereunder shall be made in writing by facsimile, electronic mail, courier service or
personal delivery:

     (a) if to an Investor:

     To the respective address listed on Schedule A hereof

	 	 	with a copy to:

Baker Botts L.L.P.

One Shell Plaza

910 Louisiana Street

Houston, TX 77002

Attention: Joe S. Poff

Facsimile: 713.229.7710

     (b) if to a transferee of an Investor, to such Holder at the address provided pursuant to
Section 2.11 above; and

     (c) if to the Partnership:

Buckeye Partners, L.P.

One Greenway Plaza, Suite 600

15

 

Houston, TX 77046

Attention: General Counsel

Facsimile: 610.904.4006

with a copy to:

Vinson & Elkins L.L.P.

666 Fifth Avenue

26th Floor

New York, NY 10103

Attention: E. Ramey Layne

Facsimile: 212.237.0100

     All such notices and communications shall be deemed to have been received at the time
delivered by hand, if personally delivered; when receipt acknowledged, if sent via facsimile or
sent via Internet electronic mail; and when actually received, if sent by courier service or any
other means.

     Section 3.02 Successor and Assigns.
This Agreement shall inure to the benefit of and be binding upon the successors and assigns
of each of the parties, including subsequent Holders of Registrable Securities to the extent
permitted herein.

     Section 3.03 Assignment of Rights. All or any portion of the rights and obligations
of any Investor under this Agreement may be transferred or assigned by such Investor only in
accordance with Section 2.11 hereof.

     Section 3.04 Recapitalization, Exchanges, Etc. Affecting the Units. The provisions of
this Agreement shall apply to the full extent set forth herein with respect to any and all units of
the Partnership or any successor or assign of the Partnership (whether by merger, consolidation,
sale of assets or otherwise) that may be issued in respect of, in exchange for or in substitution
of, the Registrable Securities, and shall be appropriately adjusted for combinations, unit splits,
recapitalizations, pro rata distributions of units and the like occurring after the date of this
Agreement.

     Section 3.05 Aggregation of Registrable Securities. All Registrable Securities held
or acquired by Persons who are Affiliates of one another shall be aggregated together for the
purpose of determining the availability of any rights and applicability of any obligations under
this Agreement.

     Section 3.06 Specific Performance. Damages in the event of breach of this Agreement
by a party hereto may be difficult, if not impossible, to ascertain, and it is therefore agreed
that each such Person, in addition to and without limiting any other remedy or right it may have,
will have the right to an injunction or other equitable relief in any court of competent
jurisdiction, enjoining any such breach, and enforcing specifically the terms and provisions
hereof, and each of the parties hereto hereby waives any and all defenses it may have on the ground
of lack of jurisdiction or competence of the court to grant such an injunction or other equitable
relief. The

16

 

existence of this right will not preclude any such Person from pursuing any other
rights and remedies at law or in equity that such Person may have.

     Section 3.07 Counterparts. This Agreement may be executed in any number of
counterparts and by different parties hereto in separate counterparts, each of which counterparts,
when so executed and delivered, shall be deemed to be an original and all of which counterparts,
taken together, shall constitute but one and the same Agreement.

     Section 3.08 Headings. The headings in this Agreement are for convenience of
reference only and shall not limit or otherwise affect the meaning hereof.

     Section 3.09 Governing Law. THIS AGREEMENT WILL BE CONSTRUED IN ACCORDANCE WITH, AND
GOVERNED BY, THE LAWS OF THE STATE OF NEW YORK.

     Section 3.10 Severability of Provisions. Any provision of this Agreement which is
prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to
the extent of such prohibition or unenforceability without invalidating the remaining provisions
hereof or affecting or impairing the validity or enforceability of such provision in any other
jurisdiction.

     Section 3.11 Entire Agreement. This Agreement is intended by the parties as a final
expression of their agreement and intended to be a complete and exclusive statement of the
agreement and understanding of the parties hereto in respect of the subject matter contained
herein. There are no restrictions, promises, warranties or undertakings, other than those set
forth or referred to herein with respect to the rights granted by the Partnership set forth herein.
This Agreement supersedes all prior agreements and understandings between the parties with respect
to such subject matter.

     Section 3.12 Amendment. This Agreement may be amended only by means of a written
amendment signed by the Partnership and the Holders of a majority of the then outstanding
Registrable Securities; provided, however, that no such amendment shall materially and adversely
affect the rights of any Holder hereunder without the consent of such Holder.

     Section 3.13 No Presumption. If any claim is made by a party relating to any
conflict, omission or ambiguity in this Agreement, no presumption or burden of proof or persuasion
shall be implied by virtue of the fact that this Agreement was prepared by or at the request of a
particular party or its counsel.

     Section 3.14 Obligations Limited to Parties to Agreement. Each of the Parties hereto
covenants, agrees and acknowledges that no Person other than the Investors (and their permitted
transferees and assignees) and the Partnership shall have any obligation hereunder and that,
notwithstanding that one or more of the Investors may be a corporation, partnership or limited
liability company, no recourse under this Agreement or under any documents or instruments delivered
in connection herewith or therewith shall be had against any former, current or future director,
officer, employee, agent, general or limited partner, manager, member, stockholder or Affiliate of
any of the Investors or any former, current or future director, officer, employee, agent, general
or limited partner, manager, member, stockholder or Affiliate of any of the

17

 

foregoing, whether by the enforcement of any assessment or by any legal or equitable proceeding, or by virtue of any
applicable Law, it being expressly agreed and acknowledged that no personal liability whatsoever
shall attach to, be imposed on or otherwise be incurred by any former, current or future director,
officer, employee, agent, general or limited partner, manager, member, stockholder or Affiliate of any of the Investors or any
former, current or future director, officer, employee, agent, general or limited partner, manager,
member, stockholder or Affiliate of any of the foregoing, as such, for any obligations of the
Investors under this Agreement or any documents or instruments delivered in connection herewith or
therewith or for any claim based on, in respect of or by reason of such obligation or its creation,
except in each case for any transferee or assignee of a Investor hereunder.

     Section 3.15 Interpretation. Article and Section references to this Agreement, unless
otherwise specified. All references to instruments, documents, contracts and agreements are
references to such instruments, documents, contracts and agreements as the same may be amended,
supplemented and otherwise modified from time to time, unless otherwise specified. The word
“including” shall mean “including but not limited to.” Whenever any determination, consent or
approval is to be made or given by an Investor under this Agreement, such action shall be in such
Investor’s sole discretion unless otherwise specified.

[Signature pages to follow]

18

 

     IN WITNESS WHEREOF, the Parties hereto execute this Agreement, effective as of the date
first above written.

	 	 	 	 	 
	 	BUCKEYE PARTNERS, L.P.

 	 
	 	By:  	BUCKEYE GP LLC
 	 
	 	 	(its General Partner) 	 
	 	 	 
	 	By:  	                     /s/ Keith E. St.Clair
 	 
	 	 	Keith E. St.Clair 	 
	 	 	Senior Vice President and Chief Financial Officer 	 

Signature Page to Registration Rights Agreement

(PIPE Investors)

 

 

	 	 	 	 	 
	 	INVESTOR:

AT MLP Fund, LLC

 	 
	 	By:  	/s/ Chris Linder
 	 
	 	 	Name:  	Chris Linder 	 
	 	 	Title:  	Vice President 	 

Signature Page to Registration Rights Agreement

(PIPE Investors)

 

 

	 	 	 	 	 
	 	INVESTOR:

ClearBridge Energy MLP Fund Inc.

 	 
	 	By:  	ClearBridge Advisors, LLC
 

	 
	 	By: 	/s/ Harry D. Cohen 	 
	 	 	Title:  	Harry D. Cohen 	 
	 	 	Title:  	Managing Director &

Chief Investment Officer 	 

Signature Page to Registration Rights Agreement

(PIPE Investors)

 

 

	 	 	 	 	 
	 	INVESTOR:

Cohen & Steers Capital Management, Inc.

 	 
	 	By:  	/s/ Adam Derechin
 	 
	 	 	Name:  	Adam Derechin 	 
	 	 	Title:  	Chief Operating Officer 	 

Signature Page to Registration Rights Agreement

(PIPE Investors)

 

 

	 	 	 	 	 
	 	INVESTOR:

Tortoise Energy Capital Corporation

 	 
	 	By:  	/s/ Zachary A. Hamel
 	 
	 	 	Name:  	Zachary A. Hamel 	 
	 	 	Title:  	Senior Vice President 	 

Signature Page to Registration Rights Agreement

(PIPE Investors)

 

 

	 	 	 	 	 
	 	INVESTOR:

Tortoise Energy Infrastructure Corporation

 	 
	 	By:  	/s/ Zachary A. Hamel
 	 
	 	 	Name:  	Zachary A. Hamel 	 
	 	 	Title:  	Senior Vice President 	 

Signature Page to Registration Rights Agreement

(PIPE Investors)

 

 

	 	 	 	 	 
	 	INVESTOR:

Tortoise North American Energy Corporation

 	 
	 	By:  	/s/ Zachary A. Hamel
 	 
	 	 	Name:  	Zachary A. Hamel 	 
	 	 	Title:  	Senior Vice President 	 

Signature Page to Registration Rights Agreement

(PIPE Investors)

 

 

	 	 	 	 	 
	 	INVESTOR:

Tortoise MLP Fund, Inc.

 	 
	 	By:  	/s/ Zachary A. Hamel
 	 
	 	 	Name:  	Zachary A. Hamel 	 
	 	 	Title:  	President 	 

Signature Page to Registration Rights Agreement

(PIPE Investors)

 

 

	 	 	 	 	 
	 	INVESTOR:

R3 Capital Partners Master (DE), L.P.
 	 
	 	 	 
	 	By:  	BlackRock Investment Management, LLC,
 	 
	 	 	its Investment Manager 	 
	 	 	 	 
	 	By:  	                   /s/ Paul H. Tice
 	 
	 	 	Name:  	Paul H. Tice 	 
	 	 	Title:  	Managing Director 	 

Signature Page to Registration Rights Agreement

(PIPE Investors)

 

 

	 	 	 	 	 
	 	INVESTOR:

Harvest Infrastructure Partners Fund LLC

 	 
	 	By:  	/s/ Anthony Merhige
 	 
	 	 	Name:  	Anthony Merhige 	 
	 	 	Title:  	G.C. of Managing Member 	 

Signature Page to Registration Rights Agreement

(PIPE Investors)

 

 

	 	 	 	 	 
	 	INVESTOR:

Harvest Sharing LLC

 	 
	 	By:  	/s/ Anthony Merhige
 	 
	 	 	Name:  	Anthony Merhige 	 
	 	 	Title:  	G.C. of Managing Member 	 

Signature Page to Registration Rights Agreement

(PIPE Investors)

 

 

	 	 	 	 	 
	 	INVESTOR:

Harvest MLP Partners

 	 
	 	By:  	/s/ Anthony Merhige
 	 
	 	 	Name:  	Anthony Merhige 	 
	 	 	Title:  	G.C. of Investment Advisor 	 

Signature Page to Registration Rights Agreement

(PIPE Investors)

 

 

	 	 	 	 	 
	 	INVESTOR:

Harvest MLP Partners II

 	 
	 	By:  	/s/ Anthony Merhige
 	 
	 	 	Name:  	Anthony Merhige 	 
	 	 	Title:  	G.C. of Investment Advisor 	 

Signature Page to Registration Rights Agreement

(PIPE Investors)

 

 

	 	 	 	 	 
	 	INVESTOR

Harvest MSRA

 	 
	 	By:  	/s/ Anthony Merhige
 	 
	 	 	Name:  	Anthony Merhige 	 
	 	 	Title:  	G.C. of Investment Advisor 	 

Signature Page to Registration Rights Agreement

(PIPE Investors)

 

 

	 	 	 	 	 
	 	INVESTOR:

AP Capital Holdings LLC

 	 
	 	By:  	/s/ Anthony Merhige
 	 
	 	 	Name:  	Anthony Merhige 	 
	 	 	Title:  	G.C. of Investment Advisor 	 

Signature Page to Registration Rights Agreement

(PIPE Investors)

 

 

	 	 	 	 	 
	 	INVESTOR:

Fiduciary Asset Management, LLC

 	 
	 	By:  	/s/ Wiley Angell
 	 
	 	 	Name:  	Wiley Angell — Portfolio Manager 	 
	 	 	Title:  	President and Chief Executive Officer

FAMCO MLP & Energy Infrastructure Fund 	 

Signature Page to Registration Rights Agreement

(PIPE Investors)

 

 

	 	 	 	 	 
	 	INVESTOR:

SOF INVESTMENTS, L.P.

 	 
	 	By:  	/s/ Marc R. Lisker
 	 
	 	 	Name:  	Marc R. Lisker 	 
	 	 	Title:  	General Counsel 	 

Signature Page to Registration Rights Agreement

(PIPE Investors)

 

 

	 	 	 	 	 
	 	INVESTOR:

Taconic Opportunity Fund L.P.
 	 
	 	By:  	                                               Taconic Capital Advisors L.P.
 	 
	 	 	 
	 	By:  	                    /s/ Josh Miller
 	 
	 	 	Name:  	Josh Miller 	 
	 	 	Title:  	Principal 	 

Signature Page to Registration Rights Agreement

(PIPE Investors)

 

 

	 	 	 	 	 
	 	INVESTOR:

THE NORTHWESTERN MUTUAL LIFE
INSURANCE COMPANY

 	 
	 	By:  	/s/ Jerome R. Baier
 	 
	 	 	Name:  	Jerome R. Baier 	 
	 	 	Title:  	Its Authorized Representative 	 

Signature Page to Registration Rights Agreement

(PIPE Investors)

 

 

	 	 	 	 	 
	 	INVESTOR:

Fidelity Securities Fund: Fidelity

Dividend Growth Fund

 	 
	 	By:  	/s/ Jeffrey Christian
 	 
	 	 	Name:  	Jeffrey Christian 	 
	 	 	Title:  	Deputy Treasurer 	 

Signature Page to Registration Rights Agreement

(PIPE Investors)

 

 

	 	 	 	 	 
	 	INVESTOR:

Fidelity Advisor Series I: Fidelity

Advisor Dividend Growth Fund

 	 
	 	By:  	/s/ Jeffrey Christian
 	 
	 	 	Name:  	Jeffrey Christian 	 
	 	 	Title:  	Deputy Treasurer 	 

Signature Page to Registration Rights Agreement

(PIPE Investors)

 

 

	 	 	 	 	 
	 	INVESTOR:

Variable Insurance Products Fund

III: Balanced Portfolio

 	 
	 	By:  	/s/ Jeffrey Christian
 	 
	 	 	Name:  	Jeffrey Christian 	 
	 	 	Title:  	Deputy Treasurer 	 

Signature Page to Registration Rights Agreement

(PIPE Investors)

 

 

	 	 	 	 	 
	 	INVESTOR:

Variable Insurance Products Fund

II: Contrafund Portfolio

 	 
	 	By:  	/s/ Jeffrey Christian
 	 
	 	 	Name:  	Jeffrey Christian 	 
	 	 	Title:  	Deputy Treasurer 	 

Signature Page to Registration Rights Agreement

(PIPE Investors)

 

 

	 	 	 	 	 
	 	INVESTOR:

Fidelity Puritan Trust: Fidelity

Balanced Fund

 	 
	 	By:  	/s/ Jeffrey Christian
 	 
	 	 	Name:  	Jeffrey Christian 	 
	 	 	Title:  	Deputy Treasurer 	 

Signature Page to Registration Rights Agreement

(PIPE Investors)

 

 

	 	 	 	 	 
	 	INVESTOR:

Fidelity Advisor Series I: Fidelity

Advisor Balanced Fund

 	 
	 	By:  	/s/ Jeffrey Christian
 	 
	 	 	Name:  	Jeffrey Christian 	 
	 	 	Title:  	Deputy Treasurer 	 

Signature Page to Registration Rights Agreement

(PIPE Investors)

 

 

	 	 	 	 	 
	 	INVESTOR:

Fidelity Devonshire Trust: Fidelity

Series All-Sector Equity Fund

 	 
	 	By:  	/s/ Jeffrey Christian
 	 
	 	 	Name:  	Jeffrey Christian 	 
	 	 	Title:  	Deputy Treasurer 	 

Signature Page to Registration Rights Agreement

(PIPE Investors)

 

 

	 	 	 	 	 
	 	INVESTOR:

RCH Energy MLP Fund, L.P.
 	 
	 	 	 
	 	By: RCH Energy MLP Fund GP, L.P.; its general partner
 	 
	 	 	 
	 	By: RR Advisors, LLC; its general partner
 	 
	 	 	 
	 	By:  	                /s/ Robert J. Raymond
 	 
	 	 	Name:  	Robert J. Raymond 	 
	 	 	Title:  	Sole-Member 	 

Signature Page to Registration Rights Agreement

(PIPE Investors)

 

 

	 	 	 	 	 
	 	INVESTOR:

KAYNE ANDERSON MLP INVESTMENT

COMPANY

 	 
	 	By:  	/s/ James C. Baker
 	 
	 	 	Name:  	James C. Baker 	 
	 	 	Title:  	Executive Vice President 	 
	 
	 	INVESTOR:

KAYNE ANDERSON ENERGY TOTAL

RETURN FUND, INC.

 	 
	 	By:  	/s/ James C. Baker
 	 
	 	 	Name:  	James C. Baker 	 
	 	 	Title:  	Executive Vice President 	 
	 
	 	INVESTOR:

KAYNE ANDERSON ENERGY DEVELOPMENT COMPANY

 	 
	 	By:  	/s/ James C. Baker
 	 
	 	 	Name:  	James C. Baker 	 
	 	 	Title:  	Executive Vice President 	 
	 
	 	INVESTOR:

KAYNE ANDERSON MIDSTREAM/ENERGY

FUND, INC.

 	 
	 	By:  	/s/ James C. Baker
 	 
	 	 	Name:  	James C. Baker 	 
	 	 	Title:  	Executive Vice President 	 
	 
	 	INVESTOR:

KAYNE MIDSTREAM SPECIALTY FUND, LP

 	 
	 	By: Kayne Anderson Capital Advisors, L.P.
 	 
	 	 	its general partner 	 
	 	 	 
	 	By:  	             /s/ David Shladovsky
 	 
	 	 	Name:  	David Shladovsky 	 
	 	 	Title:  	General Counsel 	 

Signature Page to Registration Rights Agreement

(PIPE Investors)

 

 

	 	 	 	 	 
	 	INVESTOR:

KAYNE ANDERSON MLP FUND, LP
 	 
	 	 	 
	 	By:  	             Kayne Anderson Capital Advisors, L.P.
 	 
	 	 	its general partner 	 
	 	 	 
	 	By:  	             /s/ David Shladovsky
 	 
	 	 	Name:  	David Shladovsky 	 
	 	 	Title:  	General Counsel 	 
	 
	 	INVESTOR:

KAYNE ANDERSON MIDSTREAM

INSTITUTIONAL FUND, LP
 	 
	 	 	 
	 	By:  	             Kayne Anderson
Capital Advisors, L.P.
its general partner
 	 
	 	 	 
	 	By:  	             /s/ David Shladovsky
 	 
	 	 	Name:  	David Shladovsky 	 
	 	 	Title:  	General Counsel 	 
	 
	 	INVESTOR:

KAYNE ANDERSON REAL ASSETS FUND, LP
 	 
	 	 	 
	 	By:  	             Kayne Anderson Capital Advisors, L.P.
 	 
	 	 	its general partner 	 
	 	 	 
	 	By:  	             /s/ David Shladovsky
 	 
	 	 	Name:  	David Shladovsky 	 
	 	 	Title:  	General Counsel 	 
	 
	 	INVESTOR:

KAYNE ANDERSON CAPITAL INCOME

PARTNERS (QP), LP
 	 
	 	 	 
	 	By:  	             Kayne Anderson Capital Advisors, L.P.
 	 
	 	 	its general partner 	 
	 	 	 
	 	By:  	             /s/ David Shladovsky
 	 
	 	 	Name:  	David Shladovsky 	 
	 	 	Title:  	General Counsel 	 

Signature Page to Registration Rights Agreement

(PIPE Investors)

 

 

	 	 	 	 	 
	 	INVESTOR:

KAYNE ANDERSON INCOME PARTNERS, LP
 	 
	 	 	 
	 	By:  	             Kayne Anderson Capital Advisors, L.P.
 	 
	 	 	its general partner 

	 
	 	By:  	             /s/ David Shladovsky
 	 
	 	 	Name:  	David Shladovsky 	 
	 	 	Title:  	General Counsel 	 

Signature Page to Registration Rights Agreement

(PIPE Investors)

 

 

Schedule A — Investor Name; Notice and Contact Information

Schedule
A to Registration Rights Agreement

 

 

Exhibit B — Form of Amendment No. 1 to Amended and

Restated Agreement of Limited Partnership

     THIS AMENDMENT NO. 1 to the AMENDED AND RESTATED AGREEMENT OF LIMITED PARTNERSHIP OF BUCKEYE
PARTNERS, L.P. (this “Amendment”), dated as of [__________], 2011, is entered into and effectuated
by Buckeye GP LLC, a Delaware limited liability company, as the General Partner, pursuant to
authority granted to it in Sections 4.3 and 15.1 of the Amended and Restated Agreement of Limited
Partnership of Buckeye Partners, L.P., dated as of November 19, 2010 (the “Partnership Agreement”).
Capitalized terms used but not defined herein are used as defined in the Partnership Agreement.

     WHEREAS, Section 4.3(a) of the Partnership Agreement provides that the General Partner may
cause the Partnership to issue additional LP Units or other Partnership Securities, for any
Partnership purpose, at any time or from time to time, to Partners or to other Persons, for such
consideration and on such terms and conditions, and entitling the holders thereof to such relative
rights and powers, as shall be established by the General Partner, all without the approval of any
Limited Partners, except as provided in Section 17.1 of the Partnership Agreement; and

     WHEREAS, Section 15.1(f) of the Partnership Agreement provides that the General Partner,
without the consent of any Limited Partner, may amend any provision of the Partnership Agreement in
connection with a change that is required or contemplated by Section 4.3 of the Partnership
Agreement; and

     WHEREAS, Section 15.1(g) of the Partnership Agreement provides that the General Partner,
without the consent of any Limited Partner, may amend any provision of the Partnership Agreement to
reflect a change that in the good faith opinion of the General Partner does not adversely affect
the Limited Partners in any material respect; and

     WHEREAS, the board of directors of the General Partner has determined that the standards
specified in Section 15.1(f) or 15.1(g) are satisfied with respect to the amendments to be made by
this Amendment; and

     WHEREAS, the Partnership has entered into a Unit Purchase Agreement, dated as of December 18,
2010 (the “Unit Purchase Agreement”), with FR XI Offshore AIV, L.P. (the “Unit Purchaser”); and

     WHEREAS, the Unit Purchase Agreement obligates the Partnership to issue LP Units and limited
partner interests to be designated as Class B Units having the terms set forth herein; and

     WHEREAS, in connection with the entry into the Unit Purchase Agreement, the Partnership and
the Unit Purchaser have entered into a Registration Rights Agreement, dated as of December 18,
2010, under which the Unit Purchaser may from time to time be issued LP Units in lieu of cash as
liquidated damages for failure to cause a registration statement covering all of the Unit
Purchaser’s Class B Units and LP Units to be registered; and

Exhibit B to Unit Purchase Agreement

 

 

     WHEREAS, the Partnership has entered into two Unit Purchase Agreements, dated as of December
18, 2010, with the purchasers named therein, one of which provides for the issuance of Class B
Units and the other provides for the issuance of LP Units (the “PIPE Unit Purchase Agreements”);
and

     WHEREAS, the General Partner deems it in the best interest of the Partnership to effect this
Amendment in order to (i) specify the rights and obligations of the limited partner interests
designated as “Class B Units,” (ii) provide for the economic uniformity of the Class B Units, the
Privately Placed Units, and other LP Units that may be issued in connection with the Class B Units
and Privately Placed Units, and (iii) provide for such other matters as are provided herein.

     NOW, THEREFORE, it is hereby agreed as follows:

A. Amendment. The Partnership Agreement is hereby amended as follows:

     1. Article I is hereby amended to add or restate, as applicable, the following definitions:

     “Class B Unit” means a Partnership Interest issued pursuant to Section 4.3 and representing a
limited partner’s interest in the Partnership having the rights and obligations specified with
respect to the Class B Units in this Agreement.

     “Class B Unit Distribution” means any distribution payable to each Class B Unit, determined in
accordance with Section 5.2(a).

     “Conversion Date” means the date that is the earliest of (i) the third anniversary of the
initial issuance of Class B Units pursuant to the Unit Purchase Agreement, (ii) the in-service date
of an Expansion, and (iii) the date on which the Partnership delivers notice to the holders of the
Class B Units that the Class B Units have converted.

     “Eighty Percent Interest” means Limited Partners holding an aggregate of at least 80% of the
outstanding Units, voting as a single class.

     “Expansion” means any capital expansion of the Bahamas Oil Refining Company International Ltd.
facility that increases its design capacity by four million (4,000,000) barrels or more of
incremental capacity.

     “Issue Price” means the price at which a Unit is purchased from the Partnership. Each Unit
issued pursuant to the Unit Purchase Agreement shall be treated as having an Issue Price equal to
the fair market value of an LP Unit on the date such Unit is issued. Each PIK Unit shall have an
Issue Price determined in accordance with Section 4.8(d)(iv). Each PIPE Unit issued pursuant to
the Registration Rights Agreements shall have an Issue Price equal to the amount of cash in lieu of
which such PIPE Unit is issued.

     “LP Unit” means a Partnership Interest issued pursuant to Sections 4.2 or 4.3 and representing
a limited partner’s interest in the Partnership having the rights and obligations specified with
respect to the LP Units in this Agreement; provided that a Class B Unit will not constitute an LP
Unit until the Conversion Date.

Exhibit B to Unit Purchase Agreement

 

 

     “Majority Interest” means Limited Partners holding an aggregate of more than 50% of the
outstanding Units, voting as a single class.

     “Per Unit Capital Amount” means, as of any date of determination, the Capital Account with
respect to any class of Units, stated on a per Unit basis, underlying any Unit held by a Person.

     “PIK Unit” means a Class B Unit that may be issued by the Partnership in lieu of cash
distributions in respect of the Class B Units pursuant to Section 4.8(d).

     “PIPE Unit Purchase Agreements” means the LP Unit Purchase Agreement providing for the
issuance of LP Units and the Class B Unit Purchase Agreement providing for the issuance of Class B
Units, in each case dated as of December 18, 2010, with the purchasers named therein.

     “PIPE Unit” means an LP Unit or a Class B Unit that is issued by the Partnership pursuant to
the PIPE Unit Purchase Agreements or the Unit Purchase Agreement or the Registration Rights
Agreements.

     “Privately Placed Unit” means a Class B Unit or an LP Unit that is a PIK Unit, PIPE Unit or
converted Class B Unit.

     “Registration Rights Agreements” means the two Registration Rights Agreements, dated on or
after December 18, 2010 one of which is among the Partnership, the Unit Purchaser, and the
purchasers of the Class B Units pursuant to one PIPE Unit Purchase Agreement, and the other is
among the Partnership and the purchasers of LP Units pursuant to the other PIPE Unit Purchase
Agreement.

     “Transfer Agent” means the bank, trust company or other Person appointed from time to time by
the Partnership to act as successor transfer agent and registrar for any class of Units. The
General Partner shall serve as Transfer Agent and registrar for the Class B Units unless the
General Partner shall determine to cause the Partnership to appoint another Transfer Agent.

     “Two-Thirds Interest” means Limited Partners holding an aggregate of at least two-thirds of
the outstanding Units, voting as a single class.

     “Unit” means an LP Unit or a Class B Unit. The term “Unit” does not include the GP Interest.

     “Unit Purchase Agreement” means the Unit Purchase Agreement, dated as of December 17, 2010,
between the Partnership and the Unit Purchaser.

     “Unit Purchaser” means FR XI Offshore AIV, L.P., an exempted limited partnership formed under
the laws of Cayman Islands or its designee in accordance with the Unit Purchase Agreement.

Exhibit B to Unit Purchase Agreement

 

 

     2. Article IV is hereby amended to add a new Section 4.8 creating a new series of Units as
follows:

     Section 4.8 Establishment of Class B Units

     (a) The General Partner hereby designates and creates a series of Limited Partner Units
to be designated as “Class B Units” and consisting of a total of [__________] Class B Units,
having the terms and conditions set forth herein.

     (b) The holders of the Class B Units shall have rights upon dissolution and liquidation
of the Partnership, including the right to share in any liquidating distributions pursuant
to Section 14.3, in accordance with Article XIV of the Partnership Agreement.

     (c) Conversion of Class B Units

     (i) Immediately before the close of business on the Conversion Date, the Class
B Units shall automatically convert into LP Units on a one-for-one basis.

     (ii) Upon conversion, the rights of a holder of converted Class B Units as
holder of Class B Units shall cease with respect to such converted Class B Units,
including any rights under this Agreement with respect to holders of Class B Units,
and such Person shall continue to be a Limited Partner and have the rights of a
holder of LP Units under this Agreement. All Class B Units shall, upon the
Conversion Date, be deemed to be transferred to, and cancelled by, the Partnership
in exchange for the LP Units into which the Class B Units converted.

     (iii) The Partnership shall pay any documentary, stamp or similar issue or
transfer taxes or duties relating to the issuance or delivery of LP Units upon
conversion of the Class B Units. However, the holder shall pay any tax or duty
which may be payable relating to any transfer involving the issuance or delivery of
LP Units in a name other than the holder’s name. The Transfer Agent may refuse to
deliver the Certificate representing LP Units being issued in a name other than the
holder’s name until the Transfer Agent receives a sum sufficient to pay any tax or
duties which will be due because the shares are to be issued in a name other than
the holder’s name. Nothing herein shall preclude any tax withholding required by
law or regulation.

     (iv) (A) The Partnership shall keep free from preemptive rights a sufficient
number of LP Units to permit the conversion of all outstanding Class B Units into LP
Units to the extent provided in, and in accordance with, this Section 4.8(c).

          (B) All LP Units delivered upon conversion of the Class B Units shall be newly
issued, shall be duly authorized and validly issued, and shall be free from
preemptive rights and free of any lien or adverse claim.

Exhibit B to Unit Purchase Agreement

 

 

          (C) The Partnership shall comply with all applicable securities laws regulating
the offer and delivery of any LP Units upon conversion of Class B Units and, if the
LP Units are then listed or quoted on the New York Stock Exchange, or any other
National Securities Exchange or other market, shall list or cause to have quoted and
keep listed and quoted the LP Units issuable upon conversion of the Class B Units to
the extent permitted or required by the rules of such exchange or market.

          (D) Notwithstanding anything herein to the contrary, nothing herein shall give
to any holder of Class B Units any rights as a creditor in respect of its right to
conversion.

(d) Distributions.

     (i) Each Class B Unit shall have the right to share in distributions pursuant
to Section 5.2(a) on a pro rata basis with the other Units. All or any portion of
each distribution payable in respect of the Class B Units (the “Class B Unit
Distribution”) may, at the election of the Partnership, be paid in Class B Units
(any amount of such Class B Unit Distribution so paid in PIK Units, the “PIK
Distribution Amount”). The number of PIK Units to be issued in connection with a
PIK Distribution Amount shall be the quotient of (A) the PIK Distribution Amount
divided by (B) the volume-weighted average price of the Partnership’s LP Units for
the ten (10) trading days immediately preceding the date the Class B Unit
Distribution is declared less a discount of 15%; provided that instead of issuing
any fractional PIK Units, the Partnership shall round the number of PIK Units
issued down to the next lower whole PIK Unit and pay cash in lieu of such
fractional units, or at the Partnership’s option, the Partnership may round the
number of PIK Units issued up to the next higher whole PIK Unit.

     (ii) Notwithstanding anything in this Section 4.8(d) to the contrary, with
respect to Class B Units that are converted into LP Units, the holder thereof
shall not be entitled to a Class B Unit Distribution and an LP Unit distribution
with respect to the same period, but shall be entitled only to the distribution to
be paid based upon the class of Units held as of the close of business on the
applicable Record Date.

     (iii) When any PIK Units are payable to a holder of Class B Units pursuant to
this Section 4.8, the Partnership shall issue the PIK Units to such holder no
later than the date the corresponding distributions are made pursuant to Section
5.2(a) (the date of issuance of such PIK Units, the “PIK Payment Date”). On the
PIK Payment Date, the Partnership shall issue to such holder of Class B Units a
certificate or certificates for the number of PIK Units to which such holder of
Class B Units shall be entitled.

     (iv) For purposes of maintaining Capital Accounts, if the Partnership
distributes one or more PIK Units to a holder of Class B Units, (i) the

Exhibit B to Unit Purchase Agreement

 

 

Partnership shall be treated as distributing cash to such holder of Class B
Units equal to the PIK Distribution Amount, and (ii) the holder of Class B Units
shall be deemed to have recontributed to the Partnership in exchange for such
newly issued PIK Units an amount of cash equal to the PIK Distribution Amount less
the amount of any cash distributed by the Partnership in lieu of fractional PIK
Units.

     (e) The Class B Units will have such voting rights pursuant to the Agreement as such
Class B Units would have if they were LP Units that were then outstanding and shall vote
together with the LP Units as a single class, except that the Class B Units shall be
entitled to vote as a separate class on any matter on which Unitholders are entitled to vote
that adversely affects the rights or preferences of the Class B Units in relation to other
classes of Partnership Interests in any material respect or as required by law. The
approval of a majority of the Class B Units shall be required to approve any matter for
which the holders of the Class B Units are entitled to vote as a separate class.

     (f) The Class B Units will be evidenced by Certificates in such form as the General
Partner may approve (containing appropriate legends concerning transfer restrictions,
securities laws and any other requirements).

     3. Article IV is hereby amended to add a new Section 4.9 implementing certain transfer
restrictions on Units:

     Section 4.9 Transfers of Privately Placed Units. The transfers of a Privately Placed Unit
shall be subject to Section 5.1(c)(iii) and 5.1(d)(iii).

     4. Section 5.1(a) is hereby amended and restated as follows:

     (a) The Partnership shall maintain for each Partner a separate Capital Account with respect to
its Partnership Interests in accordance with the regulations issued pursuant to Section 704 of the
Code. The Capital Account of any Partner shall be increased by (i) the Net Agreed Value of all
Capital Contributions made by such Partner in exchange for its Partnership Interest and (ii) all
items of income and gain computed in accordance with Section 5.1(b) and allocated to such Partner
pursuant to Section 5.1(c) and reduced by (iii) the Net Agreed Value of all distributions of cash
or property (other than PIK Units) made to such Partner with respect to its Partnership Interest
and (iv) all items of deduction and loss computed in accordance with Section 5.1(b) and allocated
to such Partner pursuant to Section 5.1(c). The initial Capital Account balance in respect of each
Class B Unit, PIK Unit and PIPE Unit shall be determined by reference to the fair market value of
an LP Unit on the date such Unit is issued. Immediately following the initial creation of a
Capital Account balance in respect of each PIK Unit and each Unit issued pursuant to the PIPE Unit
Purchase Agreements or the Registration Rights Agreements, each Unitholder acquiring such a Unit at
original issuance shall be deemed to have received a cash distribution or to have made a cash
contribution, as the case may be, in respect of such Unit equal to the amount by which (A) the fair
market value of an LP Unit on the date of issuance exceeds or is less than, as the case may be, (B)
the Issue Price for such Unit.

Exhibit B to Unit Purchase Agreement

 

 

     5. Section 5.1(c)(iii) is hereby amended and restated as follows:

(iii) (A) To preserve uniformity of Units, the General Partner may make special allocations
of income or deduction pursuant to Section 6.1(c) that do not have a material adverse effect
on the Limited Partners and are consistent with the principles of Section 704 of the Code.

     (B) At the election of the General Partner with respect to any taxable period ending
upon, or after, the conversion of the Class B Units into LP Units, all or a portion of the
remaining items of Partnership gross income or gain for such taxable period shall be
allocated to each Partner holding converted Class B Units in the proportion of the number of
converted Class B Units held by such Partner to the total number of Converted Class B Units
then outstanding, until each such Partner has been allocated an amount of gross income or
gain that increases the Capital Account maintained with respect to such converted Class B
Units to an amount that after taking into account the other allocations of income, gain,
loss and deduction to be made with respect to such taxable period will equal the product of
(I) the number of converted Class B Units held by such Partner and (II) the Per Unit Capital
Amount for an LP Unit evidenced by an LP Unit Certificate that is not a Privately Placed
Unit. The purpose of this allocation is to establish uniformity between the Capital Accounts
underlying converted Class B Units and the Capital Accounts underlying LP Units that are not
Privately Placed Units prior to the certification of such converted Class B Units as LP
Units.

     (C) With respect to an event triggering an adjustment to the Carrying Value of
Partnership property pursuant to Section 5.1(e) during any taxable period of the Partnership
ending upon, or after, the issuance of Privately Placed Units, any Unrealized Gains and
Unrealized Losses shall be allocated among the Partners in a manner that to the nearest
extent possible results in the Capital Accounts maintained with respect to the Privately
Placed Units on a per unit basis equaling the Per Unit Capital Amount for an LP Unit that is
not a Privately Placed Unit.

     (D) With respect to any taxable period of the Partnership ending upon, or after, the
transfer of a PIPE Unit or PIK Unit or converted Class B Unit to a Person that is not an
Affiliate of the holder, Partnership items of income or gain for such taxable period shall
be allocated 100% to the Partner transferring such PIPE Unit or PIK Unit or converted Class
B Unit in a manner that to the nearest extent possible results in the Capital Account
maintained with respect to such PIPE Unit or PIK Unit or converted Class B Unit on a per
unit basis equaling the Per Unit Capital Amount for an LP Unit that is not a Privately
Placed Unit.

6. Section 5.1(d) is amended to add a new Section 5.1(d)(iii) as follows:

     (iii) Immediately prior to the transfer of a Privately Placed Unit by a holder thereof
(other than a transfer to an Affiliate unless the General Partner elects to have this
subparagraph 5.1(d)(iii) apply), the aggregate Capital Account maintained for such Person
with respect to its Privately Placed Units will (A) first, be allocated to the Privately
Placed Units to be transferred in an amount equal to the product of (x) the

Exhibit B to Unit Purchase Agreement

 

 

number of such Privately Placed Units to be transferred and (y) the Per Unit Capital
Amount for an LP Unit that is not a Privately Placed Unit, and (B) second, any remaining
positive balance in such Capital Account will be retained by the transferor, regardless of
whether it has retained any Privately Placed Units and if the remaining balance would be
negative, items of Partnership income and gain shall be specially allocated to such
transferor Partner in an amount and manner sufficient to eliminate the deficit in its
Capital Account as quickly as possible. Following any such allocation, the transferor’s
Capital Account, if any, maintained with respect to the retained Privately Placed Units, if
any, will have a balance equal to the amount allocated under clause (B) hereinabove, and the
transferee’s Capital Account established with respect to the transferred Privately Placed
Units will have a balance equal to the amount allocated under clause (A) hereinabove.

     7. Section 5.1(e) is hereby amended and restated as follows:

     (e) If any additional Units (or other Partnership Interests) are to be issued pursuant to
Section 4.3 for cash or Contributed Property, as the consideration for the provision of services,
or if any Partnership property is to be distributed (other than a distribution of cash that is not
a redemption or retirement of a Partnership Interest), the Capital Accounts of the Partners (and
the Carrying Values of all Partnership properties) shall, immediately prior to such issuance or
distribution, be adjusted (consistent with the provisions hereof and of Section 704(b) of the Code)
upward or downward to reflect any Unrealized Gain or Unrealized Loss attributable to all
Partnership properties (as if such Unrealized Gain or Unrealized Loss had been recognized upon an
actual sale of such properties immediately prior to such issuance or on the date of such
conversion). In determining such Unrealized Gain or Unrealized Loss, the fair market value of
Partnership properties, as of any date of determination, shall be determined by the General Partner
using such method of valuation as it may adopt. In making its determination of the fair market
values of individual properties, the General Partner may determine that it is appropriate to first
determine an aggregate value for the Partnership, based on the current trading price of the LP
Units or any Issue Price (without reduction for any underwriting discount or similar fees) of
concurrent Units and taking fully into account the fair market value of the Partnership Interests
of all Partners at such time, and then allocate such aggregate value among the individual
properties of the Partnership (in such manner as it determines appropriate).

     8. Article V is hereby amended to add a new Section 5.2(c) as follows:

     (c) For the avoidance of doubt, upon any pro rata distribution of Partnership Securities to
all Record Holders of LP Units or any subdivision or combination (or reclassified into a greater or
smaller number) of LP Units, the Partnership will proportionately adjust the number of Class B
Units as follows: (a) if the Partnership issues Partnership Securities as a distribution on its LP
Units or subdivides the LP Units (or reclassifies them into a greater number of LP Units) then the
Class B Units shall be subdivided into a number of Class B Units equal to the result of multiplying
the number of Class B Units by a fraction, (A) the numerator of which shall be the sum of the
number of LP Units outstanding immediately prior to such distribution or subdivision plus the total
number of Partnership Securities constituting such distribution or newly created by such
subdivision; and (B) the denominator of which shall be the number of LP Units outstanding
immediately prior to such distribution or subdivision; and (b) if the Partnership

Exhibit B to Unit Purchase Agreement

 

 

combines the LP Units (or reclassifies them into a smaller number of LP Units) then the Class
B Units shall be combined into a number of Class B Units equal to the result of multiplying the
number of Class B Units by a fraction, (A) the numerator of which shall be the sum of the number of
LP Units outstanding immediately following such combination; and (B) the denominator of which shall
be the number of LP Units outstanding immediately prior to such combination.

     B. Agreement in Effect. Except as hereby amended, the Partnership Agreement shall
remain in full force and effect.

     C. Applicable Law. This Amendment shall be construed in accordance with and governed
by the laws of the State of Delaware, without regard to principles of conflicts of laws.

     D. SEVERABILITY. EACH PROVISION OF THIS AMENDMENT SHALL BE CONSIDERED SEVERABLE AND IF FOR
ANY REASON ANY PROVISION OR PROVISIONS HEREIN ARE DETERMINED TO BE INVALID, UNENFORCEABLE OR
ILLEGAL UNDER ANY EXISTING OR FUTURE LAW, SUCH INVALIDITY, UNENFORCEABILITY OR ILLEGALITY SHALL NOT
IMPAIR THE OPERATION OF OR AFFECT THOSE PORTIONS OF THIS AMENDMENT THAT ARE VALID, ENFORCEABLE AND
LEGAL.

[Signatures on following page]

Exhibit B to Unit Purchase Agreement

 

 

     IN WITNESS WHEREOF, this Amendment has been executed as of the date first written above.

	 	 	 	 	 
	 	GENERAL PARTNER:

Buckeye GP LLC

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Exhibit B to Unit Purchase Agreement

 

 

Exhibit C — Form of Opinion of Vinson & Elkins L.L.P.

Capitalized terms used but not defined herein have the meanings assigned to such terms in the LP
Unit Purchase Agreement (the “Purchase Agreement”). Buckeye shall furnish to the Purchasers
at the Closing an opinion of Vinson & Elkins L.L.P., counsel for Buckeye, addressed to the
Purchasers and dated the Closing Date in form satisfactory to the Purchasers, stating that:

          (i) Each of Buckeye and the General Partner is a validly existing limited partnership or
limited liability company, respectively, in good standing under the laws of the State of Delaware.
Buckeye has all requisite limited partnership power and authority under the laws of the State of
Delaware necessary (a) to own its properties and carry on its business as its business is now being
conducted as described in the Buckeye SEC Documents, (b) to enter into and perform its obligations
under the Operative Documents and (c) to offer, issue and sell the Purchased Units as provided in
the Purchase Agreement.

          (ii) To our knowledge, except (a) as described in the Buckeye SEC Documents filed prior to the
date of the Purchase Agreement and (b) as provided in the Unit Purchase Agreements, no options,
warrants or other rights to purchase, agreements or other obligations to issue, or rights to
convert any obligations into or exchange any securities for, partnership securities or ownership
interests in Buckeye are outstanding.

          (iii) The Purchased Units to be issued and sold to the Purchasers by Buckeye pursuant to the
Purchase Agreement and the limited partner interests represented thereby have been duly authorized
in accordance with the Partnership Agreement and, when issued and delivered to the Purchaser
against payment therefor in accordance with the terms of the Purchase Agreement, will be validly
issued in accordance with the terms of the Partnership Agreement, fully paid (to the extent
required under the Partnership Agreement) and nonassessable (except as such nonassessability may be
affected by matters described in Sections 17-303, 17-607 and 17-804 of the Delaware LP Act).

          (iv) The issuance of any LP Units in lieu of cash as liquidated damages under the Registration
Rights Agreement and the limited partner interests represented thereby, upon issuance in accordance
with the terms of the Registration Rights Agreement, have been duly authorized in accordance with
the Partnership Agreement and will be validly issued, fully paid (to the extent required by
applicable law and the Partnership Agreement) and nonassessable (except as such nonassessability
may be affected by matters described in Sections 17-303, 17-607 and 17-804 of the Delaware LP Act).

          (v) Except for the approvals required by the Commission in connection with Buckeye’s
obligations under the Registration Rights Agreement, no authorization, consent, approval, waiver,
license, qualification, filing, declaration, qualification or registration with, any Governmental
Authority is required for the issuance and sale by Buckeye of the Purchased Units, the execution,
delivery and performance by Buckeye of the Operative Documents or the consummation of the
transactions contemplated by the Operative Documents, except those that have been obtained or as
may be required under state securities or “Blue Sky” laws, as to which we do not express any
opinion.

Exhibit C to Unit Purchase Agreement

 

 

          (vi) Assuming the accuracy of the representations and warranties of the Purchasers and Buckeye
contained in the Purchase Agreement, the offer, issuance and sale of the Purchased Units by Buckeye
to the Purchasers solely in the manner contemplated by the Purchase Agreement are exempt from the
registration requirements of the Securities Act; provided that such counsel will express no opinion
as to any subsequent sale.

          (vii) The holders of outstanding LP Units are not entitled to statutory, preemptive or, to our
knowledge, other similar contractual rights to subscribe for the Purchased Units.

          (viii) Buckeye is not, and after giving effect to the use of proceeds from the sale of the
Purchased Units pursuant to the Purchase Agreement will not be, an “investment company” within the
meaning of the Investment Company Act of 1940, as amended.

          (ix) None of the offering, issuance and sale by Buckeye of the Purchased Units, the execution,
delivery and performance of the Operative Documents by Buckeye or the consummation of the
transactions contemplated thereby conflicts or will conflict with, or results or will result in a
breach or violation of (A) the Partnership Agreement, (B) any agreement filed or incorporated by
reference as an exhibit to Buckeye’s Annual Report on Form 10-K for the period ended December 31,
2009 or Buckeye’s Quarterly Reports on Forms 10-Q for the quarters ended March 31, 2010, June 30,
2010 and September 30, 2010 or (C) the Delaware LP Act or U.S. federal law, which in the case of
clauses (B) or (C) would be reasonably expected to have a Material Adverse Effect;
provided, however, that no opinion is expressed pursuant to this paragraph (ix)
with respect to federal or state securities or anti-fraud statutes, rules or regulations.

          (x) Each of Operative Documents has been duly authorized and validly executed and delivered by
Buckeye and the General Partner, as the case may be, and constitutes a valid and binding obligation
of Buckeye and the General Partner, as the case may be, enforceable against Buckeye and the General
Partner, as the case may be, in accordance with its terms, except as the enforceability thereof may
be limited by (A) applicable bankruptcy, insolvency, fraudulent transfer, reorganization,
moratorium or similar laws from time to time in effect affecting creditors’ rights and remedies
generally and by general principles of equity (regardless of whether such principles are considered
in a proceeding in equity or at law) and (B) public policy, applicable law relating to fiduciary
duties and indemnification and an implied covenant of good faith and fair dealing.

Exhibit C to Unit Purchase Agreement

 

 

Exhibit D — Form of Transfer Application

     No transfer of the LP Units evidenced hereby will be registered on the books of the
Partnership, unless the Partnership provides authentication instructions to the Transfer Agent and
Registrar and an Application for Transfer of Units has been executed by a transferee on the form
set forth below. A transferor of the LP Units shall have no duty to the transferee with respect to
execution of the transfer application in order for such transferee to obtain registration of the
transfer of the LP Units.

APPLICATION FOR TRANSFER OF LP UNITS

     The undersigned (“Assignee”) hereby applies for transfer to the name of the Assignee of the LP
Units evidenced hereby.

     The Assignee (a) requests admission as an additional Limited Partner (evidenced by a credit to
our account at The Depository Trust Company in the name of its nominee, Cede & Co.) and agrees to
comply with and be bound by, and hereby executes, the Amended and Restated Agreement of Limited
Partnership of Buckeye Partners, L.P. (the “Partnership”), as amended, supplemented or restated to
the date hereof (the “Partnership Agreement”), (b) represents and warrants that the Assignee has
all right, power and authority and, if an individual, the capacity necessary to enter into the
Partnership Agreement, (c) appoints the General Partner of the Partnership and, if a Liquidator
shall be appointed, the Liquidator of the Partnership as the Assignee’s attorney-in-fact, to
execute, swear to, acknowledge and file any document, including, without limitation, the
Partnership Agreement and any amendment thereto and the Amended and Restated Certificate of Limited
Partnership of the Partnership and any amendment thereto, necessary or appropriate for the
Assignee’s admission as an additional Limited Partner and as a party to the Partnership Agreement,
(d) gives the power of attorney provided for in the Partnership Agreement, and (e) makes the
waivers and gives the consents and approvals contained in the Partnership Agreement. Capitalized
terms not defined herein have the meanings assigned to such terms in the Partnership Agreement.

Date: ___________ __, 2011

	 	 	 	 	 	 	 

	 
	 	 	 	 	 	 
	Tax Identification Number of assignee

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	$

	 	By:	 	 	 	 
	 

Purchase Price including commissions, if any

	 	 	 	 

Name:
	 	 
	 

	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 	 	Name and address of assignee	 	 

Exhibit D to Unit Purchase Agreement

 

 

Type of Entity (check one):

               o     Individual          o
     Partnership                         o     Corporation

               o     Trust                  o     Other (specify) ________

     Nationality (check one):

               o     U.S. Citizen, Resident or Domestic Entity

               o     Foreign Corporation          o     Non resident Alien

     If the U. S. Citizen, Resident or Domestic Entity box is checked, the following certification
must be completed.

     Under Section 1445(e) of the Internal Revenue Code of 1986, as amended (the “Code”), the
Partnership must withhold tax with respect to certain transfers of property if a holder of an
interest in the Partnership is a foreign person. To inform the Partnership that no withholding is
required with respect to the undersigned interestholder’s interest in it, the undersigned hereby
certifies the following (or, if applicable, certifies the following on behalf of the
interestholder).

     Complete Either A or B:

	 	A.	 	Individual Interestholder

	 	1.	 	I am not a non-resident alien for purposes of U.S. income taxation.
	 
	 	 	 	My U.S. taxpayer identification number (Social Security Number) is                     
	 
	 	 	 	My home address is                                         .

	 	B.	 	Partnership, Corporation or Other Interestholder
	 
	 	1.	 	          . is not a foreign corporation, foreign partnership, foreign
trust or foreign estate (as those terms are defined in the Code and Treasury
Regulations).

	 	2.	 	The interestholder’s U.S. employer identification number is _______.

	 	3.	 	The interestholder’s office address and place of incorporation
(if applicable) is __________ (incorporated in ____________).

     The interestholder agrees to notify the Partnership within sixty (60) days of the date the
interestholder becomes a foreign person.

     The interestholder understands that this certificate may be disclosed to the Internal Revenue
Service by the Partnership and that any false statement contained herein could be punishable by
fine, imprisonment or both.

[The remainder of this page is intentionally left blank]

Exhibit D to Unit Purchase Agreement

 

 

     Under penalties of perjury, I declare that I have examined this certification and to the best
of my knowledge and belief it is true, correct and complete and, if applicable, I further declare
that I have authority to sign this document on behalf of:

Date: ___________ __, 2011

	 	 	 	 	 
	 	 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

     Note: If the Assignee is a broker, dealer, bank, trust company, clearing corporation, other
nominee holder or an agent of any of the foregoing, and is holding for the account of any other
person, this application should be completed by an officer thereof or, in the case of a broker or
dealer, by a registered representative who is a member of a registered national securities exchange
or a member of the National Association of Securities Dealers, Inc., or, in the case of any other
nominee holder, a person performing a similar function. If the Assignee is a broker, dealer, bank,
trust company, clearing corporation, other nominee owner or an agent of any of the foregoing, the
above certification as to any person for whom the signee will hold the Units shall be made to the
best of the Assignee’s knowledge.

[The remainder of this page is intentionally left blank.]

Exhibit D to Unit Purchase Agreement

 

 

Acknowledged by:

	 	 	 	 	 
	BUCKEYE PARTNERS, L.P.

 	 	 
	By:  	Buckeye GP LLC,
 	 	 
	 	its General Partner 	 	 
	 	 	 	 
	By:  	 	 	 
	 	Name:  	 	 	 
	 	Title:  	 	 	 
	 

Exhibit D to Unit Purchase Agreementexv10w3

Exhibit 10.3

 

 

CLASS B UNIT PURCHASE AGREEMENT

by and among

BUCKEYE PARTNERS, L.P.

and

THE PURCHASERS NAMED ON SCHEDLUE A HERETO

 

 

 

 

TABLE OF CONTENTS

ARTICLE I

DEFINITIONS

	 	 	 	 	 	 	 

	 
	 	 	 	 	 	 
	Section 1.1

	 	Definitions
	 	 	1	 
	 
	 	 	 	 	 	 
	 

	 	ARTICLE II	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	AGREEMENT TO SELL AND PURCHASE	 	 	 	 
	 
	 	 	 	 	 	 
	Section 2.1

	 	Sale and Purchase
	 	 	5	 
	Section 2.2

	 	Closing
	 	 	5	 
	Section 2.3

	 	Mutual Conditions
	 	 	5	 
	Section 2.4

	 	Each Purchaser’s Conditions
	 	 	6	 
	Section 2.5

	 	Buckeye’s Conditions
	 	 	7	 
	Section 2.6

	 	Buckeye Deliveries
	 	 	7	 
	Section 2.7

	 	Purchaser Deliveries
	 	 	8	 
	Section 2.8

	 	Independent Nature of Purchasers’ Obligations and Rights
	 	 	8	 
	 
	 	 	 	 	 	 
	 

	 	ARTICLE III	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	REPRESENTATIONS AND WARRANTIES OF BUCKEYE	 	 	 	 
	 
	 	 	 	 	 	 
	Section 3.1

	 	Existence
	 	 	9	 
	Section 3.2

	 	Purchased Units; Capitalization
	 	 	9	 
	Section 3.3

	 	No Conflict
	 	 	9	 
	Section 3.4

	 	No Default
	 	 	10	 
	Section 3.5

	 	Authority
	 	 	10	 
	Section 3.6

	 	Approvals
	 	 	10	 
	Section 3.7

	 	Compliance with Laws
	 	 	11	 
	Section 3.8

	 	Due Authorization
	 	 	11	 
	Section 3.9

	 	Valid Issuance; No Options or Preemptive Rights of Units
	 	 	11	 
	Section 3.10

	 	No Registration Rights
	 	 	12	 
	Section 3.11

	 	Periodic Reports
	 	 	12	 
	Section 3.12

	 	Litigation
	 	 	12	 
	Section 3.13

	 	No Material Adverse Change
	 	 	13	 
	Section 3.14

	 	Certain Fees
	 	 	13	 
	Section 3.15

	 	No Side Agreements
	 	 	13	 
	Section 3.16

	 	No Registration
	 	 	13	 
	Section 3.17

	 	No Integration
	 	 	13	 
	Section 3.18

	 	MLP Status
	 	 	13	 
	Section 3.19

	 	Investment Company Status
	 	 	13	 
	Section 3.20

	 	Form S-3 Eligibility
	 	 	13	 

i 

 

	 	 	 	 	 	 	 

	 

	 	ARTICLE IV	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	REPRESENTATIONS AND WARRANTIES OF THE PURCHASERS	 	 	 	 
	 
	 	 	 	 	 	 
	Section 4.1

	 	Existence
	 	 	14	 
	Section 4.2

	 	Authorization, Enforceability
	 	 	14	 
	Section 4.3

	 	No Breach
	 	 	14	 
	Section 4.4

	 	Certain Fees
	 	 	14	 
	Section 4.5

	 	No Side Agreements
	 	 	14	 
	Section 4.6

	 	Investment
	 	 	15	 
	Section 4.7

	 	Nature of Purchaser
	 	 	15	 
	Section 4.8

	 	Restricted Securities
	 	 	15	 
	Section 4.9

	 	Legend
	 	 	15	 
	 
	 	 	 	 	 	 
	 

	 	ARTICLE V	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	COVENANTS	 	 	 	 
	 
	 	 	 	 	 	 
	Section 5.1

	 	Taking of Necessary Action
	 	 	16	 
	Section 5.2

	 	Other Actions
	 	 	16	 
	Section 5.3

	 	Use of Proceeds
	 	 	16	 
	Section 5.4

	 	Termination Fee
	 	 	16	 
	 
	 	 	 	 	 	 
	 

	 	ARTICLE VI	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	INDEMNIFICATION	 	 	 	 
	 
	 	 	 	 	 	 
	Section 6.1

	 	Indemnification by Buckeye
	 	 	16	 
	Section 6.2

	 	Indemnification by Purchasers
	 	 	17	 
	Section 6.3

	 	Indemnification Procedure
	 	 	17	 
	 
	 	 	 	 	 	 
	 

	 	ARTICLE VII	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	MISCELLANEOUS	 	 	 	 
	 
	 	 	 	 	 	 
	Section 7.1

	 	Interpretation and Survival of Provisions
	 	 	18	 
	Section 7.2

	 	Survival of Provisions
	 	 	18	 
	Section 7.3

	 	No Waiver; Modifications in Writing
	 	 	19	 
	Section 7.4

	 	Binding Effect; Assignment
	 	 	19	 
	Section 7.5

	 	Communications
	 	 	20	 
	Section 7.6

	 	Removal of Legend
	 	 	20	 
	Section 7.7

	 	Entire Agreement
	 	 	21	 
	Section 7.8

	 	Governing Law
	 	 	21	 
	Section 7.9

	 	Execution in Counterparts
	 	 	21	 
	Section 7.10

	 	Termination
	 	 	21	 
	Section 7.11

	 	Recapitalization, Exchanges, Etc. Affecting the LP Units
	 	 	22	 

ii 

 

APPLICATION FOR TRANSFER OF CLASS B UNITS

	 	 	 
	Schedule A —

	 	List of Purchasers and Commitment Amounts
	Schedule B —

	 	Notice and Contact Information
	 
	 	 
	Exhibit A —

	 	Form of Registration Rights Agreement
	Exhibit B —

	 	Form of Partnership Agreement Amendment
	Exhibit C —

	 	Form of Opinion of Vinson & Elkins L.L.P.
	Exhibit D —

	 	Form of Transfer Application

iii 

 

CLASS B UNIT PURCHASE AGREEMENT

     This CLASS B UNIT PURCHASE AGREEMENT, dated as of December 18, 2010 (this
“Agreement”), is by and among BUCKEYE PARTNERS, L.P., a Delaware limited partnership
(“Buckeye”), and each of the purchasers listed on Schedule A hereof (each a
“Purchaser” and collectively, the “Purchasers”).

     WHEREAS, to fund a portion of the purchase price for the Acquisition (as defined below) and
the subsequent capital expansion plan, Buckeye desires to sell to the Purchasers, and the
Purchasers desire to purchase from Buckeye, certain Class B Units (as defined below), in accordance
with the provisions of this Agreement; and

     WHEREAS, Buckeye and the Purchasers will enter into a registration rights agreement (the
“Registration Rights Agreement”), substantially in the form attached hereto as Exhibit A,
pursuant to which Buckeye will provide the Purchasers with certain registration rights with respect
to the Class B Units acquired pursuant hereto, as well as the LP Units underlying the Class B
Units, any Class B Units issued to the holders of Class B Units as a distribution in kind or any LP
Units issued in lieu of cash as liquidated damages under the Registration Rights Agreement.

     NOW THEREFORE, in consideration of the mutual covenants and agreements set forth herein and
for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged,
Buckeye and each of the Purchasers, severally and not jointly, hereby agree as follows:

ARTICLE I

DEFINITIONS

               Section 1.1 Definitions. As used in this Agreement, and unless the context requires a
different meaning, the following terms have the meanings indicated:

     “Acquisition” means the acquisition by Buckeye Atlantic Holdings LLC of an indirect
interest (at least 80%) in The Bahamas Oil Refining Company International Ltd. pursuant to the
Acquisition Agreement.

     “Acquisition Agreement” means the Sale and Purchase Agreement by and among FR XI
Offshore AIV, L.P., FR Borco GP Ltd., and Buckeye Atlantic Holdings LLC, dated as of December 18,
2010.

     “Affiliate” means, with respect to any Person, any other Person that directly or
indirectly through one or more intermediaries controls, is controlled by or is under common control
with, the Person in question. As used herein, the term “control” means the possession, direct or
indirect, of the power to direct or cause the direction of the management and policies of a Person,
whether through ownership of voting securities, by contract or otherwise.

     “Agreement” has the meaning set forth in the introductory paragraph.

 

 

     “Buckeye” has the meaning set forth in the introductory paragraph.

     “Buckeye Entities” and each a “Buckeye Entity” means the General Partner,
Buckeye and each of Buckeye’s Subsidiaries, other than those Subsidiaries which, individually or in
the aggregate, would not constitute a “significant subsidiary” as defined in Regulation S-X.

     “Buckeye Related Parties” has the meaning specified in Section 6.2.

     “Buckeye SEC Documents” has the meaning specified in Section 3.11.

     “Business Day” means a day other than (i) a Saturday or Sunday or (ii) any day on
which banks located in New York, New York, U.S.A. are authorized or obligated to close.

     “Class B Unit Price” has the meaning specified in Section 2.1(b).

     “Class B Units” means the Class B Units representing limited partnership interests in
Buckeye having the rights and obligations specified in the Partnership Agreement Amendment.

     “Closing” has the meaning specified in Section 2.2.

     “Closing Date” has the meaning specified in Section 2.2.

     “Commission” means the United States Securities and Exchange Commission.

     “Delaware LP Act” means the Delaware Revised Uniform Limited Partnership Act.

     “Exchange Act” means the Securities Exchange Act of 1934, as amended from time to
time, and the rules and regulations of the Commission promulgated thereunder.

     “Existing Registration Rights Agreement” means that certain Registration Rights
Agreement, by and among Buckeye, BGH GP Holdings, LLC, ArcLight Energy Partners Fund III, L.P.,
ArcLight Energy Partners Fund IV, L.P., Kelso Investment Associates VII, L.P. and KEP VI, LLC,
dated as of June 10, 2010.

     “First Reserve Unit Purchase Agreement” means that certain Unit Purchase Agreement by
and between Buckeye and FR XI Offshore AIV, L.P. dated as of the date hereof.

     “General Partner” means Buckeye GP LLC, a Delaware limited liability company.

     “Governmental Authority” means, with respect to a particular Person, any country,
state, county, city and political subdivision in which such Person or such Person’s Property is
located or that exercises valid jurisdiction over any such Person or such Person’s Property, and
any court, agency, department, commission, board, bureau or instrumentality of any of them and any
monetary authority that exercises valid jurisdiction over any such Person or such Person’s
Property. Unless otherwise specified, all references to Governmental Authority herein with respect
to Buckeye mean a Governmental Authority having jurisdiction over Buckeye, its Subsidiaries or any
of their respective Properties.

     “Indemnified Party” has the meaning specified in Section 6.3.

2

 

     “Indemnifying Party” has the meaning specified in Section 6.3.

     “Law” means any federal, state, local or foreign order, writ, injunction, judgment,
settlement, award, decree, statute, law, rule or regulation.

     “Lien” means 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 contingent, and including 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. For
the purpose of this Agreement, a 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.

     “LP Units” means units representing limited partnership interests in Buckeye other
than the Class B Units.

     “Material Adverse Effect” has the meaning specified in Section 3.1.

     “NYSE” means The New York Stock Exchange, Inc.

     “Operative Documents” means, collectively, this Agreement, the Registration Rights
Agreement and the Partnership Agreement Amendment, or any amendments, supplements, continuations or
modifications thereto.

     “Partnership Agreement” means the Amended and Restated Agreement of Limited
Partnership of Buckeye dated November 19, 2010, as amended by the Partnership Agreement Amendment.

     “Partnership Agreement Amendment” means Amendment No. 1 to the Amended and Restated
Agreement of Limited Partnership of Buckeye dated November 19, 2010, substantially in the form of
Exhibit B, to be entered into and effectuated by the General Partner on the Closing Date.

     “Person” means an individual or a corporation, limited liability company, partnership,
joint venture, trust, unincorporated organization, association, government agency or political
subdivision thereof or other form of entity.

     “PIPE Registration Rights Agreement” means that certain Registration Rights Agreement
by and among Buckeye and the purchasers in the PIPE (LP) Unit Purchase Agreement, dated as of the
date hereof.

     “PIPE (LP) Unit Purchase Agreement” means that certain LP Unit Purchase Agreement by
and among Buckeye and the purchasers specified therein, dated the date hereof and providing for the
issuance of LP Units.

3

 

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

     “Purchased Units” means with respect to a particular Purchaser, the number of Class B
Units equal to the aggregate Purchase Price set forth opposite such Purchaser’s name under the
column titled “Purchase Price” set forth on Schedule A hereto divided by the Class B Unit
Price.

     “Purchase Price” means, with respect to a particular Purchaser, the amount set forth
opposite such Purchaser’s name under the column titled “Purchase Price” set forth on Schedule
A hereto.

     “Purchaser Related Parties” has the meaning specified in Section 6.1.

     “Purchaser” and “Purchasers” have the meanings set forth in the introductory
paragraph.

     “Registration Rights Agreement” has the meaning set forth in the recitals hereto.

     “Representatives” of any Person means the Affiliates, officers, directors, managers,
employees, agents, counsel, accountants, investment bankers and other representatives of such
Person.

     “Securities Act” means the Securities Act of 1933, as amended from time to time, and
the rules and regulations of the Commission promulgated thereunder.

     “Subsidiary” means, with respect to any Person, (a) a corporation of which more than
50% of the voting power of shares entitled (without regard to the occurrence of any contingency) to
vote in the election of directors or other governing body of such corporation is owned, directly or
indirectly, at the date of determination, by such Person, by one or more Subsidiaries of such
Person or a combination thereof, (b) a partnership (whether general or limited) in which such
Person or a Subsidiary of such Person is, at the date of determination, a general or limited
partner of such partnership, but only if more than 50% of the partnership interests of such
partnership (considering all of the partnership interests of the partnership as a single class) is
owned, directly or indirectly, at the date of determination, by such Person, by one or more
Subsidiaries of such Person, or a combination thereof, or (c) any other Person (other than a
corporation or a partnership) in which such Person, one or more Subsidiaries of such Person, or a
combination thereof, directly or indirectly, at the date of determination, has (i) at least a
majority ownership interest or (ii) the power to elect or direct the election of a majority of the
directors or other governing body of such Person. For the avoidance of doubt, Subsidiaries to be
acquired by Buckeye Atlantic Holdings LLC pursuant to the Acquisition Agreement shall not be deemed
to be Subsidiaries of Buckeye for purposes of this Agreement unless the closing of the Acquisition
occurs prior to the Closing.

     “Unit Purchase Agreements” means the PIPE (LP) Unit Purchase Agreement and the First
Reserve Unit Purchase Agreement.

4

 

ARTICLE II

AGREEMENT TO SELL AND PURCHASE

               Section 2.1 Sale and Purchase.

     (a) Subject to the terms and conditions hereof, Buckeye hereby agrees to issue and sell to
each Purchaser and each Purchaser hereby agrees, severally and not jointly, to purchase from
Buckeye, its respective Purchased Units, and each Purchaser agrees, severally and not jointly, to
pay Buckeye the Class B Unit Price for each Purchased Unit as set forth in paragraph (b) below.
The obligations of each Purchaser under this Agreement are independent of the obligations of each
other Purchaser, and the failure or waiver of performance by any Purchaser does not excuse
performance by any other Purchaser or by Buckeye.

     (b) The amount per Class B Unit each Purchaser will pay to Buckeye to purchase the Purchased
Units (the “Class B Unit Price”) hereunder shall be $57.04; provided however, that if the
Closing Date is after the record date for the distribution to Buckeye’s holders of LP Units with
respect to the quarter ending December 31, 2010 (Buckeye anticipates paying the distribution on or
about February 15, 2011), the Class B Unit Price shall be reduced by an amount equal to such per
unit distribution.

               Section 2.2 Closing. Subject to the terms and conditions hereof, the
consummation of the purchase and sale of the Purchased Units hereunder (the “Closing”)
shall take place at the offices of Vinson & Elkins L.L.P., 666 Fifth Avenue, 26th
Floor, New York, New York, or such other location as mutually agreed by the parties,
and upon the later to occur of (i) the first Business Day following the satisfaction or
waiver of the conditions set forth in Sections 2.3, 2.4 and 2.5 (other than those
conditions that are by their terms to be satisfied at the Closing) and (ii) the closing
of the Acquisition; provided, however, that if such later event is the closing of the
Acquisition, then the Closing shall occur concurrently therewith (the date of such
closing, the “Closing Date”).

               Section 2.3 Mutual Conditions. The respective obligations of each party to
consummate the purchase and issuance and sale of the Purchased Units shall be subject
to the satisfaction on or prior to the Closing Date of each of the following conditions
(any or all of which may be waived by a party on behalf of itself in writing, in whole
or in part, to the extent permitted by applicable Law):

     (a) no Law shall have been enacted or promulgated, and no action shall have been taken, by any
Governmental Authority of competent jurisdiction that temporarily, preliminarily or permanently
restrains, precludes, enjoins or otherwise prohibits the consummation of the transactions
contemplated hereby or makes the transactions contemplated hereby illegal;

     (b) there shall not be pending any suit, action or proceeding by any Governmental Authority
seeking to restrain, preclude, enjoin or prohibit the transactions contemplated by this Agreement;
and

     (c) the closing of the Acquisition shall have occurred, or shall occur concurrently with the
Closing in which case all conditions set forth in Section 7.3 (Conditions to Obligations

5

 

of Purchaser) of the Acquisition Agreement shall have been satisfied in all material respects or the
fulfillment of any such conditions to Buckeye Atlantic Holdings LLC’s obligations shall have been
waived, except for those conditions which, by their nature, will be satisfied concurrently with the
Closing.

               Section 2.4 Each Purchaser’s Conditions. The obligation of each Purchaser
to consummate the purchase of its Purchased Units shall be subject to the satisfaction
on or prior to the Closing Date of each of the following conditions (any or all of
which may be waived by a particular Purchaser on behalf of itself in writing with
respect to its Purchased Units, in whole or in part, to the extent permitted by
applicable Law):

     (a) Buckeye shall have performed and complied with the covenants and agreements contained in
this Agreement that are required to be performed and complied with by Buckeye on or prior to the
Closing Date;

     (b) (i) The representations and warranties of Buckeye (A) set forth in Sections 3.1, 3.2
and 3.5 and (B) contained in this Agreement that are qualified by materiality or a Material
Adverse Effect shall be true and correct when made and as of the Closing Date and (ii) all other
representations and warranties of Buckeye shall be true and correct in all material respects when
made and as of the Closing Date, in each case as though made at and as of the Closing Date (except
that representations and warranties made as of a specific date shall be required to be true and
correct as of such date only, it being expressly understood and agreed that representations and
warranties made “As of the date hereof” or “As of the date of this Agreement”, or a similar phrase,
are made as of December 18, 2010, and will not be required to be true and correct as of the Closing
Date);

     (c) The purchase price payable to FR XI Offshore AIV, L.P. and FR Borco GP Ltd. (or their
designees as seller under the Acquisition Agreement) by Buckeye or its Subsidiaries (as purchaser
under the Acquisition Agreement) for the indirect 80% interest in The Bahamas Oil Refining Company
International Ltd. shall not exceed $1.4 billion;

     (d) Buckeye shall have received or be entitled to receive at Closing, pursuant to binding
commitments as to which all conditions precedent to funding (other than conditions that are by
their terms to be satisfied at the Closing) have been satisfied or waived, equity funding for the
Acquisition (including Class B Units and/or LP Units that FR XI Offshore AIV, L.P. and FR Borco GP
Ltd. have agreed to receive as partial consideration for the Acquisition) of not less than $750
million;

     (e) The NYSE shall have authorized, upon official notice of issuance, the listing of the LP
Units issuable upon conversion of Class B Units, as set forth in the Partnership Agreement
Amendment;

     (f) No notice of delisting from the NYSE shall have been received by Buckeye with respect to
the LP Units;

     (g) The Partnership Agreement Amendment, in all material respects in the form attached as
Exhibit A to this Agreement, shall have been duly adopted and be in full force;

6

 

     (h) Buckeye shall have delivered, or caused to be delivered, to the Purchaser at the Closing,
Buckeye’s closing deliveries described in Section 2.6; and

     (i) The execution and delivery by Buckeye of the Registration Rights Agreement.

               Section 2.5 Buckeye’s Conditions. The obligation of Buckeye to consummate
the sale of the Purchased Units to a Purchaser shall be subject to the satisfaction on
or prior to the Closing Date of each of the following conditions with respect to such
Purchaser (any or all of which may be waived by Buckeye in writing, in whole or in
part, to the extent permitted by applicable Law):

     (a) the representations and warranties of such Purchaser contained in this Agreement that are
qualified by materiality shall be true and correct when made and as of the Closing Date and all
other representations and warranties of such Purchaser shall be true and correct in all material
respects as of the Closing Date (except that representations of such Purchaser made as of a
specific date shall be required to be true and correct as of such date only); and

     (b) such Purchaser shall have delivered, or caused to be delivered, to Buckeye at the Closing
such Purchaser’s closing deliveries described in Section 2.7.

     By acceptance of the certificate or certificates representing the Purchased Units, each
Purchaser shall be deemed to have represented to Buckeye that such Purchaser has performed and
complied with the covenants and agreements contained in this Agreement that are required to be
performed and complied with by it on or prior to the Closing Date; and the representations and
warranties of such Purchaser contained in this Agreement that are qualified by materiality are true
and correct as of the Closing Date and all other representations and warranties of such Purchaser
are true and correct in all material respects as of the Closing Date (except that representations
and warranties made as of a specific date shall be required to be true and correct as of such date
only).

               Section 2.6 Buckeye Deliveries. At the Closing, subject to the terms and
conditions hereof, Buckeye will deliver, or cause to be delivered, to each Purchaser:

     (a) A certificate or certificates representing the Purchased Units (bearing the legend set
forth in Section 4.9) and meeting the requirements of the Partnership Agreement, free and
clear of any Liens, other than transfer restrictions under the Partnership Agreement and applicable
federal and state securities laws;

     (b) A certificate of the Secretary of State of the State of Delaware, dated a recent date, to
the effect that each of the General Partner and Buckeye is in good standing;

     (c) A cross-receipt executed by Buckeye and delivered to such Purchaser certifying that it has
received the Purchase Price from such Purchaser as of the Closing Date;

     (d) An opinion addressed to the Purchasers from Vinson & Elkins L.L.P., legal counsel to
Buckeye, dated as of the Closing, in the form and substance attached hereto as Exhibit C;

7

 

     (e) A certificate, dated the Closing Date and signed by the Chief Executive Officer and the
Chief Financial Officer of the General Partner, on behalf of Buckeye, in their capacities as such,
stating that:

     (i) Buckeye has performed and complied with the covenants and agreements contained in
this Agreement that are required to be performed and complied with by Buckeye on or prior to
the Closing Date; and

     (ii) The representations and warranties of Buckeye contained in this Agreement that are
qualified by materiality or Material Adverse Effect are true and correct as of the Closing
Date and all other representations and warranties of Buckeye are, individually and in the
aggregate, true and correct in all material respects as of the Closing Date (except that
representations and warranties made as of a specific date shall be required to be true and
correct as of such date only); and

     (f) A certificate of the Secretary or Assistant Secretary of the General Partner, on behalf of
Buckeye, certifying as to (1) the Amended and Restated Certificate of Limited Partnership of
Buckeye, as amended, and the Partnership Agreement, (2) board resolutions authorizing the execution
and delivery of the Operative Documents and the consummation of the transactions contemplated
thereby, including the issuance of the Purchased Units and (3) its incumbent officers authorized to
execute the Operative Documents, setting forth the name and title and bearing the signatures of
such officers.

               Section 2.7 Purchaser Deliveries. At the Closing, subject to the terms
and conditions hereof, each Purchaser will deliver, or cause to be delivered, to
Buckeye:

     (a) Payment to Buckeye of the Purchase Price set forth opposite such Purchaser’s name under
the column titled “Purchase Price” on Schedule A hereto by wire transfer of immediately available
funds to an account designated by Buckeye in writing at least two Business Days prior to the
Closing Date;

     (b) A cross-receipt executed by such Purchaser and delivered to Buckeye certifying that it has
received its Purchased Units as of the Closing Date; and

     (c) A transfer application in substantially the form attached hereto as Exhibit D,
which shall have been duly executed by such Purchaser.

               Section 2.8 Independent Nature of Purchasers’ Obligations and Rights.
The obligations of each Purchaser under any Operative Document are several and not joint
with the obligations of any other Purchaser, and no Purchaser shall be responsible in any way for
the performance of the obligations of any other Purchaser under any Operative Document. Nothing
contained herein or in any other Operative Document, and no action taken by any Purchaser pursuant
thereto, shall be deemed to constitute the Purchasers as a partnership,
an association, a joint venture or any other kind of entity, or create a presumption that the
Purchasers are in any way acting in concert or as a group with respect to such obligations or the
transactions contemplated by the Operative Documents. Each Purchaser shall be entitled to
independently protect and enforce its rights, including without limitation, the rights arising out
of

8

 

this Agreement or out of the other Operative Documents, and it shall not be necessary for any
other Purchaser to be joined as an additional party in any proceeding for such purpose.

ARTICLE III

REPRESENTATIONS AND WARRANTIES OF BUCKEYE

     Buckeye represents and warrants to each Purchaser as follows:

               Section 3.1 Existence. Each of the Buckeye Entities has been duly
incorporated or formed, as the case may be, and is validly existing as a limited
liability company, limited partnership or corporation, as the case may be, in good
standing under the Laws of its jurisdiction of incorporation or formation, as the case
may be, and has the full limited liability company, limited partnership or corporate,
as the case may be, power and authority, and has all governmental licenses,
authorizations, consents and approvals, necessary to own, lease or hold its Properties
and assets and to conduct the businesses in which it is engaged, and is duly registered
or qualified to do business and in good standing as a foreign limited liability
company, limited partnership or corporation, as the case may be, in each jurisdiction
in which its ownership or lease of Property or the conduct of its business requires
such qualification, except where the failure to so register or qualify could not
reasonably be expected to (i) have, individually or in the aggregate, a material
adverse effect on the condition (financial or other), results of operations,
securityholders’ equity, Properties or business of the Buckeye Entities taken as a
whole, the ability of the Buckeye Entities to meet their obligations under the
Operative Documents or the ability of the Buckeye Entities to consummate the
transactions under any Operative Document on a timely basis (a “Material Adverse
Effect”) or (ii) subject the limited partners of Buckeye to any material liability or
disability.

               Section 3.2 Purchased Units; Capitalization.

     (a) On the Closing Date, the Purchased Units shall have those rights, preferences, privileges
and restrictions governing the Class B Units as set forth in the Partnership Agreement.

     (b) The General Partner is the sole general partner of Buckeye, with a non-economic general
partner interest in Buckeye; such general partner interest is the only general partner interest of
the Partnership that is issued and outstanding; and such general partner interest has been duly
authorized and validly issued and is owned by the General Partner free and clear of any Liens.

     (c) The limited partners of Buckeye hold LP Units in Buckeye, represented as of the date
hereof by approximately 71.5 million LP Units; such LP Units are the only limited partner
interests of Buckeye that are issued and outstanding; all of such LP Units have been duly
authorized and validly issued pursuant to the Partnership Agreement and are fully paid and
nonassessable (except to the extent such nonassessability may be affected by Sections 17-303,
17-607 and 17-804 of the Delaware LP Act).

               Section 3.3 No Conflict. None of (i) the offering, issuance and sale by
Buckeye of the Purchased Units and the application of the proceeds therefrom, (ii) the
execution, delivery and performance of the Operative Documents by Buckeye, or (iii) the
consummation of

9

 

the transactions contemplated hereby or thereby conflicts or will
conflict with, or results or will result in a breach or violation of or imposition of
any Lien upon any Property or assets of the Buckeye Entities pursuant to, (A) the
formation or governing documents of any of the Buckeye Entities, (B) the terms of any
indenture, contract, lease, mortgage, deed of trust, note agreement, loan agreement or
other agreement, obligation, condition, covenant or instrument to which any of the
Buckeye Entities is a party, by which any of them is bound or to which any of their
respective Properties or assets is subject, or (C) any Law applicable to any of the
Buckeye Entities or injunction of any court or governmental agency or body to which any
of the Buckeye Entities of any court, regulatory body, administrative agency,
governmental body, arbitrator or other authority having jurisdiction over any of the
Buckeye Entities or any of their Properties, except in the case of clause (B) for such
conflict, breach, violation or default that would not, individually or in the
aggregate, have a Material Adverse Effect.

               Section 3.4 No Default. None of the Buckeye Entities is in violation or
default of (i) any provision of its respective formation or governing documents, (ii)
the terms of any indenture, contract, lease, mortgage, deed of trust, note agreement,
loan agreement or other agreement, obligation, condition, covenant or instrument to
which it is a party, by which it is bound or to which its property is subject, or (iii)
any Law of any court, regulatory body, administrative agency, governmental body,
arbitrator or other authority having jurisdiction over the Buckeye Entities or any of
their Properties, as applicable, except, in the case of clauses (ii) or (iii), as could
not reasonably be expected to have, individually or in the aggregate, a Material
Adverse Effect.

               Section 3.5 Authority. On the Closing Date, Buckeye will have all
requisite power and authority to issue, sell and deliver the Purchased Units, in
accordance with and upon the terms and conditions set forth in this Agreement and the
Partnership Agreement. On the Closing Date, all partnership or limited liability
company action, as the case may be, required to be taken by the General Partner and
Buckeye for the authorization, issuance, sale and delivery of the Purchased Units, the
execution and delivery of the Operative Documents and the consummation of the
transactions contemplated hereby and thereby shall have been validly taken. No
approval from the holders of outstanding LP Units is required under the Partnership
Agreement or the rules of the NYSE in connection with Buckeye’s issuance and sale of
the Purchased Units to the Purchasers or the Class B Units pursuant to the Acquisition
Agreement.

               Section 3.6 Approvals. Except as required by the Commission in connection
with Buckeye’s obligations under the Registration Rights Agreement, no authorization,
consent, approval, waiver, license, qualification or written exemption from, nor any
filing, declaration, qualification or registration with, any Governmental Authority or
any other Person is required in connection with the execution, delivery or performance
by Buckeye of any of the Operative Documents to which it is a party or Buckeye’s
issuance and sale of the Purchased Units, except (i) as may be required under the state
securities or “Blue Sky” Laws, or (ii) where the failure to receive such authorization,
consent, approval, waiver, license, qualification or written exemption or to make such
filing, declaration, qualification or registration would not, individually or in the
aggregate, reasonably be expected to have, individually or in the aggregate, a Material
Adverse Effect.

10

 

               Section 3.7 Compliance with Laws. As of the date hereof, neither Buckeye
nor any of its Subsidiaries is in violation of any Law applicable to Buckeye or its
Subsidiaries, except as would not, individually or in the aggregate, have a Material
Adverse Effect. Buckeye and its Subsidiaries possess all certificates, authorizations
and permits issued by the appropriate regulatory authorities necessary to conduct their
respective businesses, except where the failure to possess such certificates,
authorizations or permits would not, individually or in the aggregate, have a Material
Adverse Effect, and neither Buckeye nor any such Subsidiary has received any notice of
proceedings relating to the revocation or modification of any such certificate,
authorization or permit, except where such potential revocation or modification would
not, individually or in the aggregate, have a Material Adverse Effect.

               Section 3.8 Due Authorization. Each of the Operative Documents has been
duly and validly authorized and has been or, with respect to the Operative Documents to
be delivered at the Closing Date, will be, validly executed and delivered by Buckeye or
the General Partner, as the case may be, and constitutes, or will constitute, the
legal, valid and binding obligations of Buckeye or the General Partner, as the case may
be, enforceable in accordance with its terms, except as such enforceability may be
limited by bankruptcy, insolvency, reorganization and other laws of general
applicability relating to or affecting creditors’ rights and by general principles of
equity.

               Section 3.9 Valid Issuance; No Options or Preemptive Rights of Units.

     (a) The Purchased Units to be issued and sold by Buckeye to each Purchaser hereunder have been
duly authorized in accordance with the Partnership Agreement and, when issued and delivered against
payment therefor pursuant to this Agreement, will be validly issued in accordance with the
Partnership Agreement, fully paid (to the extent required under the Partnership Agreement) and
non-assessable (except as such nonassessability may be affected by matters described in Sections
17-303, 17-607 and 17-804 of the Delaware LP Act).

     (b) The Purchased Units shall have those rights, preferences, privileges and restrictions
governing the Class B Units, which shall be reflected in the Partnership Agreement Amendment.

     (c) The LP Units issuable upon conversion of the Purchased Units, , the Class B Units issuable
to holders of Class B Units as a distribution in kind in lieu of cash distributions on the Class B
Units and the LP Units issuable in lieu of cash as liquidated damages under the Registration Rights
Agreement and, in each case, the limited partner interests represented thereby, upon issuance in
accordance with the terms of the Class B Units as reflected in the Partnership Agreement Amendment
have been duly authorized in accordance with the Partnership Agreement and will be validly issued,
fully paid (to the extent required by applicable law and the Partnership Agreement) and
nonassessable (except as such nonassessability may be affected by matters described in Sections
17-303, 17-607 and 17-804 of the Delaware LP Act).

     (d) The holders of outstanding LP Units are not entitled to statutory, preemptive or other
similar contractual rights to subscribe for LP Units or Class B Units; and, except with respect to
the Unit Purchase Agreements, no options, warrants or other rights to purchase,

11

 

agreements or
other obligations to issue, or rights to convert any obligations into or exchange any securities
for, partnership securities or ownership interests in Buckeye are outstanding.

               Section 3.10 No Registration Rights. Except as contemplated by this
Agreement, the Registration Rights Agreement, the PIPE Registration Rights Agreement
and the Existing Registration Rights Agreement, there are no contracts, agreements or
understandings between Buckeye and any Person granting such Person the right to require
Buckeye to file a registration statement under the Securities Act with respect to any
securities of Buckeye or to require Buckeye to include such securities in any
securities registered or to be registered pursuant to any registration statement filed
by or required to be filed by Buckeye under the Securities Act

               Section 3.11 Periodic Reports. Buckeye’s forms, registration statements,
reports, schedules and statements required to be filed by it under the Exchange Act or
the Securities Act (all such documents filed prior to the date hereof, collectively the
“Buckeye SEC Documents”) have been filed with the Commission on a timely
basis. The Buckeye SEC Documents, including, without limitation, any audited or
unaudited financial statements and any notes thereto or schedules included therein, at
the time filed (or in the case of registration statements, solely on the dates of
effectiveness) (except to the extent corrected by a subsequent Buckeye SEC Document)
(a) did not contain any untrue statement of a material fact or omit to state a material
fact required to be stated therein or necessary in order to make the statements
therein, in light of the circumstances under which they were made, not misleading, (b)
complied in all material respects with the applicable requirements of the Exchange Act
and the Securities Act, as the case may be, (c) complied as to form in all material
respects with applicable accounting requirements and with the published rules and
regulations of the Commission with respect thereto, (d) were prepared in accordance
with GAAP applied on a consistent basis during the periods involved (except as may be
indicated in the notes thereto or, in the case of unaudited
statements, as permitted by Form 10-Q of the Commission), and (e) fairly present
(subject in the case of unaudited statements to normal and recurring audit adjustments)
in all material respects the consolidated financial position of Buckeye and its
consolidated subsidiaries as of the dates thereof and the consolidated results of its
operations and cash flows for the periods then ended. Deloitte & Touche LLP is an
independent registered public accounting firm with respect to Buckeye and the General
Partner and has not resigned or been dismissed as independent registered public
accountants of Buckeye as a result of or in connection with any disagreement with
Buckeye on any matter of accounting principles or practices, financial statement
disclosure or auditing scope or procedures.

               Section 3.12 Litigation. As of the date hereof, except as described in
the Buckeye SEC Documents, there are no legal or governmental proceedings pending to
which any Buckeye Entity is a party or to which any Property or asset of any Buckeye
Entity is subject that could reasonably be expected to have, individually or in the
aggregate, a Material Adverse Effect or which challenges the validity of any of the
Operative Documents or the right of any Buckeye entity to enter into any of the
Operative Documents or to consummate the transactions contemplated hereby and thereby
and, to the knowledge of Buckeye, no such proceedings are threatened by Governmental
Authorities or others.

12

 

               Section 3.13 No Material Adverse Change. As of the date hereof, except as
set forth in the Buckeye SEC Documents filed with the Commission on or prior to the
date hereof, since September 30, 2010, there has not occurred any material adverse
change in the condition (financial or other), results of operations, securityholders’
equity, Properties, prospects or business of the Buckeye Entities, taken as a whole.

               Section 3.14 Certain Fees. Except for the fees payable to Barclays
Capital Inc., no fees or commissions are or will be payable by Buckeye to brokers,
finders, or investment bankers with respect to the sale of any of the Purchased Units
or the consummation of the transaction contemplated by this Agreement. Buckeye agrees
that it will indemnify and hold harmless the Purchaser from and against any and all
claims, demands, or liabilities for broker’s, finder’s, placement, or other similar
fees or commissions incurred by Buckeye in connection with the sale of the Purchased
Units or the consummation of the transactions contemplated by this Agreement.

               Section 3.15 No Side Agreements. There are no agreements by, among or
between Buckeye or any of its Affiliates, on the one hand, and any Purchaser or any of
their Affiliates, on the other hand, with respect to the transactions contemplated
hereby other than the Operative Documents nor promises or inducements for future
transactions between or among any of such parties.

               Section 3.16 No Registration. Assuming the accuracy of the
representations and warranties of the Purchaser contained in
Section 4.6 and
Section 4.7, the issuance and sale of the Purchased Units pursuant to this
Agreement is exempt from registration requirements of the Securities Act , and neither
Buckeye nor, to the knowledge of Buckeye, any authorized Representative acting on its
behalf has taken or will take any action hereafter that would cause the loss of such
exemption.

               Section 3.17 No Integration. Neither Buckeye nor any of its Affiliates
have, directly or indirectly through any agent, sold, offered for sale, solicited
offers to buy or otherwise negotiated in respect of, any “security” (as defined in the
Securities Act of 1933, as amended) that is or will be integrated with the sale of the
Purchased Units in a manner that would require registration under the Securities Act.

               Section 3.18 MLP Status. Buckeye is properly treated as a partnership for
United States federal income tax purposes and more than 90% of Buckeye’s current gross
income is qualifying income under 7704(d) of the Internal Revenue Code of 1986, as
amended.

               Section 3.19 Investment Company Status. Buckeye is not an “investment
company” within the meaning of the Investment Company Act of 1940, as amended.

               Section 3.20 Form S-3 Eligibility. As of the date hereof, Buckeye has
been, since the time of filing its most recent Form S-3 Registration Statement, and
continues to be eligible to use Form S-3.

13

 

ARTICLE IV

REPRESENTATIONS AND WARRANTIES OF THE PURCHASERS

     Each Purchaser, severally and not jointly, hereby represents and warrants to Buckeye that:

               Section 4.1 Existence. Such Purchaser is duly organized and validly
existing and in good standing under the Laws of its jurisdiction of organization, with
all requisite power and authority to own, lease, use and operate its Properties and to
conduct its business as currently conducted.

               Section 4.2 Authorization, Enforceability. Such Purchaser has all
necessary corporate, limited liability company or partnership power and authority to
execute, deliver and perform its obligations under this Agreement and the Registration
Rights Agreement and to consummate the transactions contemplated thereby, and the
execution, delivery and performance by such Purchaser of this Agreement and the
Registration Rights Agreement has been duly authorized by all necessary action on the
part of such Purchaser; and this Agreement and the Registration Rights Agreement
constitute the legal, valid and binding obligations of such Purchaser, enforceable in
accordance with their terms, except as such enforceability may be limited by
bankruptcy, insolvency, fraudulent transfer and similar laws affecting creditors’
rights generally or by general principles of equity, including principles of commercial
reasonableness, fair dealing and good faith.

               Section 4.3 No Breach. The execution, delivery and performance of this
Agreement and the Registration Rights Agreement by such Purchaser and the consummation
by such Purchaser of the transactions contemplated hereby and thereby will not (a)
conflict with or result in a breach or violation of any of the terms or provisions of,
or constitute a default under, any material agreement to which such Purchaser is a
party or by which such Purchaser is bound or to which any of the property or assets of
such Purchaser is subject, (b) conflict with or result in any violation of the
provisions of the organizational documents of such Purchaser, or (c) violate any
statute, order, rule or regulation of any court or governmental agency or body having
jurisdiction over such Purchaser or the property or assets of such Purchaser, except in
the cases of clauses (a) and (c), for such conflicts, breaches, violations or defaults
as would not prevent the consummation of the transactions contemplated by this
Agreement and the Registration Rights Agreement.

               Section 4.4 Certain Fees. No fees or commissions are or will be payable
by such Purchaser to brokers, finders, or investment bankers with respect to the
purchase of any of the Purchased Units or the consummation of the transaction
contemplated by this Agreement. Such Purchaser agrees that it will indemnify and hold
harmless Buckeye from and against any and all claims, demands, or liabilities for
broker’s, finder’s, placement, or other similar fees or commissions incurred by such
Purchaser in connection with the purchase of the Purchased Units or the consummation of
the transactions contemplated by this Agreement.

               Section 4.5 No Side Agreements. There are no other agreements by, among
or between such Purchaser and any of its Affiliates, on the one hand, and Buckeye or
any

14

 

of its Affiliates, on the other hand, with respect to the transactions contemplated
hereby other than the Operative Documents nor promises or inducements for future
transactions between or among any of such parties.

               Section 4.6 Investment. The Purchased Units are being acquired for such
Purchaser’s own account, the account of its Affiliates, or the accounts of clients for
whom such Purchaser exercises discretionary investment authority (all of whom such
Purchaser hereby represents and warrants are “accredited investors” within the meaning
of Rule 501(a) of Regulation D promulgated by the Commission pursuant to the Securities
Act), not as a nominee or agent, and with no present intention of distributing the
Purchased Units or any part thereof, and such Purchaser has no present intention of
selling or granting any participation in or otherwise distributing the same in any
transaction in violation of the securities laws of the United States or any state,
without prejudice, however, to such Purchaser’s right at all times to sell or otherwise
dispose of all or any part of the Purchased Units under a registration statement under
the Securities Act and applicable state securities laws or under an exemption from such
registration available thereunder (including, without limitation, if available, Rule
144 promulgated thereunder). If such Purchaser should in the future decide to dispose
of any of the Purchased Units, the Purchaser understands and agrees (a) that it may do
so only in compliance with the Securities Act and applicable state securities law, as
then in effect, including a sale contemplated by any registration statement pursuant to
which such securities are being offered, or
pursuant to an exemption from the Securities Act, and (b) that stop-transfer
instructions to that effect will be in effect with respect to such securities.

               Section 4.7 Nature of Purchaser. Such Purchaser represents and warrants
to, and covenants and agrees with, Buckeye that, (a) it is an “accredited investor”
within the meaning of Rule 501 of Regulation D promulgated by the Commission pursuant
to the Securities Act and (b) by reason of its business and financial experience it has
such knowledge, sophistication and experience in making similar investments and in
business and financial matters generally so as to be capable of evaluating the merits
and risks of the prospective investment in the Purchased Units, is able to bear the
economic risk of such investment and, at the present time, would be able to afford a
complete loss of such investment.

               Section 4.8 Restricted Securities. Such Purchaser understands that the
Purchased Units are characterized as “restricted securities” under the federal
securities Laws inasmuch as they are being acquired from Buckeye in a transaction not
involving a public offering and that under such Laws and applicable regulations such
securities may be resold without registration under the Securities Act only in certain
limited circumstances. In this connection, such Purchaser represents that it is
knowledgeable with respect to Rule 144 of the Commission promulgated under the
Securities Act.

               Section 4.9 Legend. Such Purchaser understands that the certificates
evidencing the Purchased Units will bear the legend required by the Partnership
Agreement as well as the following legend: “These securities have not been registered
under the Securities Act of 1933, as amended (the “Securities Act”). These securities
may not be sold or offered for sale except pursuant to an effective registration
statement under the Securities Act or pursuant to an exemption from registration
thereunder, in each case in accordance with all applicable securities laws of the
states or other jurisdictions, and in the case of a transaction exempt from
registration,

15

 

such securities may only be transferred if the transfer agent for such
securities has received documentation satisfactory to it that such transaction does not
require registration under the Securities Act.”

ARTICLE V

COVENANTS

               Section 5.1 Taking of Necessary Action. Each of the parties hereto shall
use its commercially reasonable efforts promptly to take or cause to be taken all
action and promptly to do or cause to be done all things necessary, proper or advisable
under applicable Law and regulations to consummate and make effective the transactions
contemplated by this Agreement. Without limiting the foregoing, Buckeye and each
Purchaser shall use its commercially reasonable efforts to make all filings and obtain
all consents of Governmental Authorities that may be necessary or, in the reasonable
opinion of the other parties, as the case may be,
advisable for the consummation of the transactions contemplated by the Operative
Documents.

               Section 5.2 Other Actions. Buckeye shall (i) cause the Partnership
Agreement Amendment to be adopted immediately prior to the issuance of the Purchased
Units contemplated by this Agreement, (ii) file prior to the Closing a supplemental
listing application with the NYSE to list the LP Units underlying the Purchased Units
and (iii) file prior to the issuance of any Class B Units as a distribution in kind in
lieu of cash distributions on the Class B Units a supplemental listing application with
the NYSE to list the LP Units underlying such Class B Units issued as a distribution in
kind.

               Section 5.3 Use of Proceeds. Buckeye shall use the collective proceeds
from the sale of the Purchased Units to partially fund the Acquisition. If the
transactions contemplated by the Acquisition Agreement are not closed concurrently with
the Closing or within two Business Days thereafter, Buckeye shall return the Purchase
Price paid to Buckeye to the applicable Purchasers within two Business Days of receipt
thereof and such Purchasers shall promptly return all Purchased Units to Buckeye.

               Section 5.4 Termination Fee. In the event this Agreement is terminated
without Closing for any reason, Buckeye hereby agrees to pay to each Purchaser a
termination fee in cash in an amount equal to the product of (a) 0.75%, multiplied by
(b) the amount set forth opposite such Purchaser’s name under the column titled
“Purchase Price” set forth on Schedule A hereto; provided, that no Purchaser who shall
have breached in any material respect any of its covenants or agreements set forth in
this Agreement shall be entitled to any termination fee.

ARTICLE VI

INDEMNIFICATION

               Section 6.1 Indemnification by Buckeye. Buckeye agrees to indemnify
each Purchaser and its Representatives (collectively, “Purchaser Related
Parties”) from, and hold each of them harmless against, any and all actions,
suits, proceedings (including any

16

 

investigations, litigation or inquiries), demands,
and causes of action, and, in connection therewith, and promptly upon demand, pay or
reimburse each of them for all costs, losses, liabilities, damages, or expenses of
any kind or nature whatsoever, including, without limitation, the reasonable fees
and disbursements of counsel and all other reasonable expenses incurred in
connection with investigating, defending or preparing to defend any such matter that
may be incurred by them or asserted against or involve any of them as a result of,
arising out of, or in any way related to the breach of any of the representations,
warranties or covenants of Buckeye contained herein, provided that such claim for
indemnification relating to a breach of the representations or warranties is made
prior to the expiration of such representations or warranties;
and provided further, that no Purchaser Related Party shall be entitled to
recover special, consequential (including lost profits or diminution in value) or
punitive damages. Notwithstanding anything to the contrary, consequential damages
shall not be deemed to include diminution in value of the Purchased Units, which is
specifically included in damages covered by Purchaser Related Parties’
indemnification.

               Section 6.2 Indemnification by Purchasers. Each Purchaser agrees,
severally and not jointly, to indemnify Buckeye, the General Partner and their
respective Representatives (collectively, “Buckeye Related Parties”) from, and
hold each of them harmless against, any and all actions, suits, proceedings (including
any investigations, litigation or inquiries), demands, and causes of action, and, in
connection therewith, and promptly upon demand, pay or reimburse each of them for all
costs, losses, liabilities, damages, or expenses of any kind or nature whatsoever,
including, without limitation, the reasonable fees and disbursements of counsel and all
other reasonable expenses incurred in connection with investigating, defending or
preparing to defend any such matter that may be incurred by them or asserted against or
involve any of them as a result of, arising out of, or in any way related to the breach
of any of the representations, warranties or covenants of such Purchaser contained
herein, provided that such claim for indemnification relating to a breach of the
representations and warranties is made prior to the expiration of such representations
and warranties; and provided further, that no Buckeye Related Party shall be entitled
to recover special, consequential (including lost profits or diminution in value) or
punitive damages.

               Section 6.3 Indemnification Procedure. Promptly after any Buckeye
Related Party or Purchaser Related Party (hereinafter, the “Indemnified
Party”) has received notice of any indemnifiable claim hereunder, or the
commencement of any action, suit or proceeding by a third person, which the
Indemnified Party believes in good faith is an indemnifiable claim under this
Agreement, the Indemnified Party shall give the indemnitor hereunder (the
“Indemnifying Party”) written notice of such claim or the commencement of
such action, suit or proceeding, but failure to so notify the Indemnifying Party will
not relieve the Indemnifying Party from any liability it may have to such Indemnified
Party hereunder except to the extent that the Indemnifying Party is materially
prejudiced by such failure. Such notice shall state the nature and the basis of such
claim to the extent then known. The Indemnifying Party shall have the right to
defend and settle, at its own expense and by its own counsel who shall be reasonably
acceptable to the Indemnified Party, any such matter as long as the Indemnifying
Party pursues the same diligently and in good faith. If the Indemnifying Party
undertakes to defend or settle, it shall promptly notify the Indemnified Party of its
intention to do so, and the Indemnified Party shall cooperate with the Indemnifying
Party and its counsel in all commercially reasonable respects in the defense thereof
and the settlement thereof. Such

17

 

cooperation shall include, but shall not be limited
to, furnishing the Indemnifying Party with any books, records and other information
reasonably requested by the Indemnifying Party and in the Indemnified Party’s
possession or control. Such cooperation of the Indemnified Party shall be at
the cost of the Indemnifying Party. After the Indemnifying Party has notified
the Indemnified Party of its intention to undertake to defend or settle any such
asserted liability, and for so long as the Indemnifying Party diligently pursues such
defense, the Indemnifying Party shall not be liable for any additional legal expenses
incurred by the Indemnified Party in connection with any defense or settlement of
such asserted liability; provided, however, that the Indemnified Party shall be
entitled (i) at its expense, to participate in the defense of such asserted liability
and the negotiations of the settlement thereof and (ii) if (A) the Indemnifying Party
has failed to assume the defense or employ counsel reasonably acceptable to the
Indemnified Party or (B) if the defendants in any such action include both the
Indemnified Party and the Indemnifying Party and counsel to the Indemnified Party
shall have concluded that there may be reasonable defenses available to the
Indemnified Party that are different from or in addition to those available to the
Indemnifying Party or if the interests of the Indemnified Party reasonably may be
deemed to conflict with the interests of the Indemnifying Party, then the Indemnified
Party shall have the right to select a separate counsel and to assume such legal
defense and otherwise to participate in the defense of such action, with the expenses
and fees of such separate counsel and other expenses related to such participation to
be reimbursed by the Indemnifying Party as incurred. Notwithstanding any other
provision of this Agreement, the Indemnifying Party shall not settle any indemnified
claim without the consent of the Indemnified Party, unless the settlement thereof
imposes no liability or obligation on, and includes a complete release from liability
of, and does not include any admission of wrongdoing or malfeasance by, the
Indemnified Party.

ARTICLE VII

MISCELLANEOUS

               Section 7.1 Interpretation and Survival of Provisions. Article, Section,
Schedule, and Exhibit references are to this Agreement, unless otherwise specified. All
references to instruments, documents, contracts, and agreements are references to such
instruments, documents, contracts, and agreements as the same may be amended,
supplemented, and otherwise modified from time to time, unless otherwise specified. The
word “including” shall mean “including but not limited to.” Whenever any party has an
obligation under the Operative Documents, the expense of complying with that obligation
shall be an expense of such party unless otherwise specified. Whenever any
determination, consent, or approval is to be made or given by any Purchaser, such
action shall be in such Purchaser’s sole discretion unless otherwise specified in this
Agreement. If any provision in the Operative Documents is held to be illegal, invalid,
not binding, or unenforceable, such provision shall be fully severable and the
Operative Documents shall be construed and enforced as if such illegal, invalid, not
binding, or unenforceable provision had never comprised a part of the Operative
Documents, and the remaining provisions shall remain in full force and effect. The
Operative Documents have been reviewed and negotiated by sophisticated parties with
access to legal counsel and shall not be construed against the drafter.

               Section 7.2 Survival of Provisions. The representations and warranties
set forth in Sections 3.1, 3.2, 3.5, 3.9, 3.10, 3.13, 3.14, 3.15, 3.16, 4.4, 4.5,
4.7, 4.8 and 4.9

18

 

hereunder shall survive the execution and delivery of this Agreement indefinitely, and the other
representations and warranties set forth herein shall survive for a period of twelve (12) months
following the Closing Date regardless of any investigation made by or on behalf of Buckeye or any
Purchaser. The covenants made in this Agreement or any other Operative Document shall survive the
Closing of the transactions described herein and remain operative and in full force and effect
regardless of acceptance of any of the Purchased Units and payment therefor and repayment,
conversion, exercise or repurchase thereof. All indemnification obligations of Buckeye and the
Purchasers pursuant to this Agreement and the provisions of Article VI shall remain operative and
in full force and effect unless such obligations are expressly terminated in a writing by the
parties, regardless of any purported general termination of this Agreement.

               Section 7.3 No Waiver; Modifications in Writing.

     (a) Delay. No failure or delay on the part of any party in exercising any right,
power, or remedy hereunder shall operate as a waiver thereof, nor shall any single or partial
exercise of any such right, power, or remedy preclude any other or further exercise thereof or the
exercise of any other right, power, or remedy. The remedies provided for herein are cumulative and
are not exclusive of any remedies that may be available to a party at law or in equity or
otherwise.

     (b) Specific Waiver. Except as otherwise provided herein, no amendment, waiver,
consent, modification, or termination of any provision of this Agreement or any other Operative
Document (except in the case of the Partnership Agreement, for amendments adopted pursuant to the
terms thereof) shall be effective unless signed by each of the parties hereto or thereto affected
by such amendment, waiver, consent, modification, or termination. Any amendment, supplement or
modification of or to any provision of this Agreement or any other Operative Document, any waiver
of any provision of this Agreement or any other Operative Document, and any consent to any
departure by Buckeye from the terms of any provision of this Agreement or any other Operative
Document shall be effective only in the specific instance and for the specific purpose for which
made or given. Except where notice is specifically required by this Agreement, no notice to or
demand on Buckeye in any case shall entitle Buckeye to any other or further notice or demand in
similar or other circumstances.

               Section 7.4 Binding Effect; Assignment.

     (a) Binding Effect. This Agreement shall be binding upon Buckeye, the Purchasers, and
their respective successors and permitted assigns. Except as expressly provided in this Agreement,
this Agreement shall not be construed so as to confer any right or benefit upon any Person other
than the parties to this Agreement and their respective successors and permitted assigns.

     (b) Assignment of Rights. All or any portion of the rights and obligations of any
Purchaser under this Agreement may be transferred by such Purchaser to any Affiliate of such
Purchaser without the consent of Buckeye. No portion of the rights and obligations of any
Purchaser under this Agreement may be transferred by such Purchaser to a non-Affiliate without the
written consent of Buckeye (which consent shall not be unreasonably withheld by Buckeye).

19

 

               Section 7.5 Communications. All notices and demands provided for
hereunder shall be in writing and shall be given by registered or certified mail,
return receipt requested, telecopy, air courier guaranteeing overnight delivery or
personal delivery to the following addresses:

	 	(a)	 	If to any Purchaser:
	 
	 	 	 	To the respective address listed on Schedule B
hereof
	 
	 	(b)	 	If to Buckeye:
	 
	 	 	 	Buckeye Partners, L.P.

One Greenway Plaza, Suite 600

Houston, TX 77046

Attention: General Counsel

Facsimile: 610.904.4006
	 
	 	 	 	with a copy to:

Vinson & Elkins L.L.P.

666 Fifth Avenue

26th Floor

New York, NY 10103

Attention: E. Ramey Layne

Facsimile: 212.237.0100

or to such other address as Buckeye or such Purchaser may designate in writing. All notices and
communications shall be deemed to have been duly given: at the time delivered by hand, if
personally delivered; at the time of transmittal, if sent via electronic mail; upon actual receipt
if sent by certified mail, return receipt requested, or regular mail, if mailed; when receipt
acknowledged, if sent via facsimile; and upon actual receipt when delivered to an air courier
guaranteeing overnight delivery.

               Section 7.6 Removal of Legend. In connection with a sale of the Purchased
Units by a Purchaser in reliance on Rule 144, the applicable Purchaser or its broker
shall deliver to the transfer agent and Buckeye a broker representation letter
providing to the transfer agent and Buckeye any information Buckeye deems necessary to
determine that the sale of the Purchased Units is made in compliance with Rule 144,
including, as may be appropriate, a certification that the Purchaser is not an
Affiliate of Buckeye and regarding the length of time the Purchased Units have been
held. Upon receipt of such representation letter, Buckeye shall promptly direct its
transfer agent to exchange unit certificates bearing a restrictive legend for unit
certificates without the legend (or a credit for such shares to book-entry accounts
maintained by the transfer agent), including the legend referred to in Section 4.9, and
Buckeye shall bear all costs associated therewith. After any Purchaser or its permitted
assigns have held the Purchased Units for one year, if the certificate for such
Purchased Units still bears the restrictive legend referred to in Section 4.9, Buckeye
agrees, upon request of the Purchaser or permitted assignee, to
take all steps necessary to promptly effect the removal of the legend described in
Section 4.9 from the Purchased Units, and Buckeye shall bear all costs associated
therewith, regardless of

20

 

whether the request is made in connection with a sale or
otherwise, so long as such Purchaser or its permitted assigns provide to Buckeye any
information Buckeye deems necessary to determine that the legend is no longer required
under the Securities Act or applicable state laws, including a certification that the
holder is not an Affiliate of Buckeye (and a covenant to inform Buckeye if it should
thereafter become an Affiliate and to consent to exchange its certificates for
certificates bearing an appropriate restrictive legend) and regarding the length of
time the Purchased Units have been held.

               Section 7.7 Entire Agreement. This Agreement, the other Operative
Documents and the other agreements and documents referred to herein are intended by the
parties as a final expression of their agreement and intended to be a complete and
exclusive statement of the agreement and understanding of the parties hereto in respect
of the subject matter contained herein and therein. There are no restrictions,
promises, warranties or undertakings, other than those set forth or referred to herein
or the other Operative Documents with respect to the rights granted by Buckeye or any
of its Affiliates or any Purchaser or any of its Affiliates set forth herein or
therein. This Agreement, the other Operative Documents and the other agreements and
documents referred to herein or therein supersede all prior agreements and
understandings between the parties with respect to such subject matter.

               Section 7.8 Governing Law. This Agreement will be construed in accordance
with and governed by the laws of the State of New York.

               Section 7.9 Execution in Counterparts. This Agreement may be executed in
any number of counterparts and by different parties hereto in separate counterparts,
each of which counterparts, when so executed and delivered, shall be deemed to be an
original and all of which counterparts, taken together, shall constitute but one and
the same Agreement.

               Section 7.10 Termination.

     (a) Notwithstanding anything herein to the contrary, this Agreement may be terminated at any
time at or prior to the Closing by the written consent of the Purchasers, upon a breach in any
material respect by Buckeye of any covenant or agreement set forth in this Agreement.

     (b) Notwithstanding anything herein to the contrary, this Agreement shall automatically
terminate at any time at or prior to the Closing

     (i) if a statute, rule, order, decree or regulation shall have been enacted or
promulgated, or if any action shall have been taken by any Governmental Authority of
competent jurisdiction that permanently restrains, permanently precludes, permanently
enjoins or otherwise permanently prohibits the consummation of the transactions
contemplated by this Agreement or makes the transactions contemplated by this Agreement
illegal;

     (ii) upon the termination of the Acquisition Agreement; or

     (iii) if the Closing shall not have occurred by April 18, 2011.

21

 

     (c) In the event of the termination of this Agreement as provided in this Section
7.10, this Agreement shall forthwith become null and void. In the event of such termination,
there shall be no liability on the part of any party hereto, except as set forth in Sections
5.4 and 5.5 and Article VI of this Agreement; provided that nothing herein shall
relieve any party from any liability or obligation with respect to any willful breach of this
Agreement.

               Section 7.11 Recapitalization, Exchanges, Etc. Affecting the LP Units.
The provisions of this Agreement shall apply to the full extent set forth herein with
respect to any and all equity interests of Buckeye or any successor or assign of
Buckeye (whether by merger, consolidation, sale of assets or otherwise) which may be
issued in respect of, in exchange for or in substitution of, the LP Units, and shall be
appropriately adjusted for combinations, recapitalizations and the like occurring after
the date of this Agreement and prior to the Closing.

[Signature pages follow.]

22

 

     IN WITNESS WHEREOF, the parties hereto execute this Agreement, effective as of the date first
above written.

	 	 	 	 	 
	 	BUCKEYE PARTNERS, L.P.

 	 
	 	By:  	BUCKEYE GP LLC 	 
	 	 	(its General Partner) 	 
	 	 	 
	 	By:  	/s/ Keith E. St. Clair
 	 
	 	 	Keith E. St. Clair 	 
	 	 	Senior Vice President and Chief Financial Officer 	 
	 

Signature Page to Unit Purchase Agreement

 

 

	 	 	 	 	 
	 	Investor:

Fiduciary/Claymore MLP Opportunity Fund

 	 
	 	By:  	/s/ Joseph Gallagher Jr.
 	 
	 	 	Name:  	Joseph Gallagher Jr. CFA 	 
	 	 	Title:  	Executive Managing Director
Fiduciary/Claymore MLP Opportunity Fund 	 
	 

Signature Page to Unit Purchase Agreement

(PIPE Investors)

 

 

	 	 	 	 	 
	 	Investor:

KAYNE ANDERSON MLP INVESTMENT COMPANY

 	 
	 	By:  	/s/ James C. Baker
 	 
	 	 	Name:  	James C. Baker 	 
	 	 	Title:  	Executive Vice President 	 
	 
	 	Investor:

KAYNE ANDERSON ENERGY TOTAL RETURN FUND, INC.

 	 
	 	By:  	/s/ James C. Baker
 	 
	 	 	Name:  	James C. Baker 	 
	 	 	Title:  	Executive Vice President 	 
	 
	 	Investor:

KAYNE ANDERSON MIDSTREAM/ENERGY FUND, INC.

 	 
	 	By:  	/s/ James C. Baker
 	 
	 	 	Name:  	James C. Baker 	 
	 	 	Title:  	Executive Vice President 	 
	 

Signature Page to Unit Purchase Agreement

(PIPE Investors)

 

 

Schedule A — List of Purchasers and Commitment Amounts

	 	 	 	 	 
	Purchaser	 	Purchase Price
	Kayne Anderson MLP Investment Company
	 	$	29,999,902.80	 
	Kayne Anderson Energy Total Return Fund, Inc.
	 	$	5,000,126.40	 
	Kayne Anderson Midstream/Energy Fund, Inc.
	 	$	15,000,094.00	 
	Fiduciary/Claymore MLP Opportunity Fund
	 	$	25,000,061.60	 
	Total
	 	$	75,000,184.80	 

Schedule A to Unit Purchase Agreement

 

 

Schedule B — Notice and Contact Information

	 	 	 
	Purchaser	 	Address
	Kayne Anderson MLP Investment Company

	 	James C. Baker 

Kayne Anderson Capital Advisors, L.P. 

717 Texas Avenue, Suite 3100

Houston, Texas 77002

Fax: 713-665-7359
	Kayne Anderson Energy Total Return
Fund, Inc.

	 	James C. Baker 

Kayne Anderson Capital Advisors, L.P. 

717 Texas Avenue, Suite 3100

Houston, Texas 77002

Fax: 713-665-7359
	Kayne Anderson Midstream/Energy Fund,
Inc.

	 	James C. Baker

Kayne Anderson Capital Advisors, L.P. 

717 Texas Avenue, Suite 3100

Houston, Texas 77002

Fax: 713-665-7359
	Fiduciary/Claymore MLP Opportunity Fund

	 	Quinn Kiley

8235 Forsyth Blvd., Suite 700

St. Louis, Missouri 63105

Fax: 314-446-1407

Schedule B to Unit Purchase Agreement

 

 

Exhibit A — Form of Registration Rights Agreement

Exhibit A to Unit Purchase Agreement

 

 

 

REGISTRATION RIGHTS AGREEMENT

BY AND AMONG

BUCKEYE PARTNERS, L.P.

AND

THE INVESTORS NAMED ON SCHEDULE A HERETO

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 

	ARTICLE I DEFINITIONS	 	 	1	 
	 
	 	 	 	 	 	 
	Section 1.01
	 	Definitions	 	 	1	 
	Section 1.02
	 	Registrable Securities	 	 	3	 
	 
	 	 	 	 	 	 
	ARTICLE II REGISTRATION RIGHTS	 	 	4	 
	 
	 	 	 	 	 	 
	Section 2.01
	 	Registration	 	 	4	 
	Section 2.02
	 	Piggyback Rights	 	 	5	 
	Section 2.03
	 	Delay Rights	 	 	7	 
	Section 2.04
	 	Underwritten Offerings	 	 	8	 
	Section 2.05
	 	Sale Procedures	 	 	9	 
	Section 2.06
	 	Cooperation by Holders	 	 	12	 
	Section 2.07
	 	Restrictions on Public Sale by Holders of Registrable Securities	 	 	12	 
	Section 2.08
	 	Expenses	 	 	12	 
	Section 2.09
	 	Indemnification	 	 	13	 
	Section 2.10
	 	Rule 144 Reporting	 	 	15	 
	Section 2.11
	 	Transfer or Assignment of Registration Rights	 	 	15	 
	Section 2.12
	 	Limitation on Subsequent Registration Rights	 	 	16	 
	 
	 	 	 	 	 	 
	ARTICLE III MISCELLANEOUS	 	 	16	 
	 
	 	 	 	 	 	 
	Section 3.01
	 	Communications	 	 	16	 
	Section 3.02
	 	Successor and Assigns	 	 	16	 
	Section 3.03
	 	Assignment of Rights	 	 	17	 
	Section 3.04
	 	Recapitalization, Exchanges, Etc. Affecting the Units	 	 	17	 
	Section 3.05
	 	Aggregation of Registrable Securities	 	 	17	 
	Section 3.06
	 	Specific Performance	 	 	17	 
	Section 3.07
	 	Counterparts	 	 	17	 
	Section 3.08
	 	Headings	 	 	17	 
	Section 3.09
	 	Governing Law	 	 	17	 
	Section 3.10
	 	Severability of Provisions	 	 	17	 
	Section 3.11
	 	Entire Agreement	 	 	17	 
	Section 3.12
	 	Amendment	 	 	18	 
	Section 3.13
	 	No Presumption	 	 	18	 
	Section 3.14
	 	Obligations Limited to Parties to Agreement	 	 	18	 
	Section 3.15
	 	Interpretation	 	 	18	 
	 
	 	 	 	 	 	 
	Schedule A — Investor List; Notice and Contact Information; Opt-Out	 	 	 	 

 

 

REGISTRATION RIGHTS AGREEMENT

     This REGISTRATION RIGHTS AGREEMENT (this “Agreement”) is made and entered into as of
December 18, 2010, by and among Buckeye Partners, L.P., a Delaware limited partnership (the
“Partnership”), and each of the Persons set forth on Schedule A to this Agreement
(each, an “Investor” and collectively, the “Investors”).

     WHEREAS, this Agreement is made in connection with the entry into the Unit Purchase Agreement,
dated on or prior to the date hereof, by and between the Partnership and First Reserve (the
“First Reserve Unit Purchase Agreement”) and the Unit Purchase Agreement, dated on or prior
to the date hereof, by and among the Partnership and each of the Persons set forth on Schedule A
thereto, providing for the issuance of Class B Units (the “PIPE (Class B) Unit Purchase
Agreement” and together with the First Reserve Unit Purchase Agreement, the “Unit Purchase
Agreements”); and

     WHEREAS, the Partnership has agreed to provide the registration and other rights set forth in
this Agreement for the benefit of the Investors pursuant to the Unit Purchase Agreements.

     NOW THEREFORE, in consideration of the mutual covenants and agreements set forth herein and
for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged
by each party hereto, the parties hereby agree as follows:

ARTICLE I

DEFINITIONS

     Section 1.01 Definitions. Capitalized terms used herein without definition shall have
the meanings given to them in the First Reserve Unit Purchase Agreement. The terms set forth below
are used herein as so defined:

     “Affiliate” means, with respect to any Person, any other Person that directly or
indirectly through one or more intermediaries controls, is controlled by or is under common control
with, the Person in question. As used herein, the term “control” means the possession, direct or
indirect, of the power to direct or cause the direction of the management and policies of a Person,
whether through ownership of voting securities, by contract or otherwise.

     “Agreement” has the meaning specified therefor in the introductory paragraph of this
Agreement.

     “ArcLight/Kelso Registration Rights Agreement” means that certain Registration Rights
Agreement, by and among Buckeye, BGH GP Holdings, LLC, ArcLight Energy Partners Fund III, L.P.,
ArcLight Energy Partners Fund IV, L.P., Kelso Investment Associates VII, L.P. and KEP VI, LLC,
dated as of June 10, 2010.

     “Class B Unit Price” means $57.04.

     “Commission” means the U.S. Securities and Exchange Commission.

1

 

     “Consideration Units” has the meaning specified in the First Reserve Unit Purchase
Agreement.

     “Effectiveness Period” has the meaning specified therefor in Section 2.01(a)
of this Agreement.

     “Existing Registration Rights Agreements” means, collectively, (a) that certain
Registration Rights Agreement by and among the parties to the PIPE (LP) Unit Purchase Agreement,
dated as of the date hereof, and (b) the ArcLight/Kelso Registration Rights Agreement.

     “First Reserve” means FR XI Offshore AIV, L.P., an exempted limited partnership formed
under the laws of the Cayman Islands.

     “First Reserve Unit Purchase Agreement” has the meaning specified therefor in the
recitals of this Agreement.

     “General Partner” means Buckeye GP LLC, a Delaware limited liability company.

     “Holder” means the record holder of any Registrable Securities.

     “Included Registrable Securities” has the meaning specified therefor in Section
2.02(a) of this Agreement.

     “Investor” and “Investors” have the meanings specified therefor in the
introductory paragraph of this Agreement.

     “Liquidated Damages” has the meaning specified therefor in Section 2.01(b) of
this Agreement.

     “Liquidated Damages Multiplier” means the product of the LP Unit Price times the
number of Purchased Units issued to such Investor and that may not be disposed of without
restriction pursuant to any section of Rule 144 (or any similar provision then in effect) under the
Securities Act.

     “Losses” has the meaning specified therefor in Section 2.09(a) of this
Agreement.

     “LP Unit Price” has the meaning assigned to such term in the PIPE (LP) Unit Purchase
Agreement.

     “Managing Underwriter” means, with respect to any Underwritten Offering, the
book-running lead manager of such Underwritten Offering.

     “Opt-Out Notice” has the meaning specified therefor in Section 2.02(a) of this
Agreement.

     “Parity Securities” has the meaning specified therefor in Section 2.02(b) of
this Agreement.

2

 

     “Partnership” has the meaning specified therefor in the introductory paragraph of this
Agreement.

     “Person” means an individual or a corporation, limited liability company, partnership,
joint venture, trust, unincorporated organization, association, government agency or political
subdivision thereof or other entity.

     “PIPE (Class B) Unit Purchase Agreement” has the meaning specified therefor in the
recitals of this Agreement.

     “Purchased Class B Units” has the meaning specified for “Purchased Units” in the PIPE
(Class B) Unit Purchase Agreement.

     “Purchased Units” means, with respect to First Reserve, the Consideration Units and,
with respect to all other Investors, the Purchased Class B Units.

     “Registrable Securities” means (i) the Purchased Units to be acquired by the Investors
pursuant to the Unit Purchase Agreements, (ii) LP Units issued upon the conversion of the Class B
Units, (iii) Class B Units issued on the Class B Units as a distribution in kind in lieu of cash
distributions and (iv) any LP Units issued as Liquidated Damages pursuant to Section
2.01(b) of this Agreement.

     “Registration Expenses” has the meaning specified therefor in Section 2.08(b)
of this Agreement.

     “Registration Statement” has the meaning specified therefor in Section 2.01(a)
of this Agreement.

     “Selling Expenses” has the meaning specified therefor in Section 2.08(b) of
this Agreement.

     “Selling Holder” means a Holder who is selling Registrable Securities pursuant to a
registration statement.

     “Selling Holder Indemnified Persons” has the meaning specified therefor in Section
2.09(a) of this Agreement.

     “Underwritten Offering” means an offering (including an offering pursuant to a
Registration Statement) in which LP Units are sold to an underwriter on a firm commitment basis for
reoffering to the public or an offering that is a “bought deal” with one or more investment banks.

     “Unit Purchase Agreements” has the meaning specified therefor in the recitals of this
Agreement.

     Section 1.02 Registrable Securities. Any Registrable Security will cease to be a
Registrable Security (a) when a registration statement covering such Registrable Security becomes
or has been declared effective by the Commission and such Registrable Security has

3

 

been sold or disposed of pursuant to such effective registration statement; (b) when such
Registrable Security has been disposed of pursuant to any section of Rule 144 (or any similar
provision then in effect) under the Securities Act; (c) when such Registrable Security is held by
the Partnership or one of its subsidiaries or Affiliates; (d) when such Registrable Security has
been sold or disposed of in a private transaction in which the transferor’s rights under this
Agreement are not assigned to the transferee of such securities pursuant to Section 2.11
hereof or (e) one year following their issuance as LP Units, including the issuance of LP Units as
Liquidated Damages and the issuance of LP Units upon conversion of Class B Units.

ARTICLE II

REGISTRATION RIGHTS

     Section 2.01 Registration.

     (a) Effectiveness Deadline. Following the date hereof, but no later than fifteen (15)
days following the Closing Date, the Partnership shall prepare and file a registration statement
(the “Registration Statement”) under the Securities Act with respect to all of the
Registrable Securities. The Registration Statement filed pursuant to this Section 2.01(a)
shall be on such appropriate registration form of the Commission as shall be selected by the
Partnership. The Partnership shall use its commercially reasonable efforts to cause the
Registration Statement to become effective on or as soon as practicable after the Closing Date. Any
Registration Statement shall provide for the resale pursuant to any method or combination of
methods legally available to, and requested by, the Holders of any and all Registrable Securities
covered by such Registration Statement. The Partnership shall use its commercially reasonable
efforts to cause the Registration Statement filed pursuant to this Section 2.01(a) to be
effective, supplemented and amended to the extent necessary to ensure that it is available for the
resale of all Registrable Securities by the Holders until all Registrable Securities covered by
such Registration Statement have ceased to be Registrable Securities (the “Effectiveness
Period”). The Registration Statement when effective (including the documents incorporated
therein by reference) will comply as to form in all material respects with all applicable
requirements of the Securities Act and the Exchange Act and will not contain an untrue statement of
a material fact or omit to state a material fact required to be stated therein or necessary to make
the statements therein not misleading (in the case of any prospectus contained in such Registration
Statement, in the light of the circumstances under which a statement is made). As soon as
practicable following the date that the Registration Statement becomes effective, but in any event
within two (2) Business Days of such date, the Partnership shall provide the Holders with written
notice of the effectiveness of the Registration Statement.

     (b) Failure to Go Effective. If the Registration Statement required by Section
2.01(a) is not declared effective within one hundred eighty (180) days after the Closing Date,
then each Holder shall be entitled to a payment (with respect to the Purchased Units of each such
Holder), as liquidated damages and not as a penalty, of 0.25% of the Liquidated Damages Multiplier
per thirty (30)-day period, that shall accrue daily, for the first sixty (60) days following the
180th day, increasing by an additional 0.25% of the Liquidated Damages Multiplier per thirty
(30)-day period, that shall accrue daily, for each subsequent thirty (30) days, up to a maximum of
1.00% of the Liquidated Damages Multiplier per thirty (30)-day period (the “Liquidated
Damages”); provided, however, the aggregate amount of Liquidated Damages payable by the
Partnership

4

 

under this Agreement to each Holder shall not exceed 5.00% of the Liquidated Damages
Multiplier with respect to such Holder. The Liquidated Damages payable pursuant to the immediately
preceding sentence shall be payable within ten (10) Business Days after the end of each such thirty
(30)-day period. Any Liquidated Damages shall be paid to each Holder in immediately available
funds; provided, however, if the Partnership certifies that it is unable to pay Liquidated Damages
in cash because such payment would result in a breach under a credit facility or other debt
instrument, then the Partnership may pay the Liquidated Damages in kind in the form of the issuance
of additional LP Units. Upon any issuance of LP Units as Liquidated Damages, the Partnership shall
promptly (i) prepare and file an amendment to the Registration Statement prior to its effectiveness
adding such LP Units to such Registration Statement as additional Registrable Securities and (ii)
prepare and file a supplemental listing application with the NYSE to list such additional LP Units.
The determination of the number of LP Units to be issued as Liquidated Damages shall be equal to
the amount of Liquidated Damages divided by the volume-weighted average closing price of the LP
Units on the NYSE for the ten (10) trading days immediately preceding the date on which the
Liquidated Damages payment is due, less a discount to such average closing price of 2.00%. The
payment of Liquidated Damages to a Holder shall cease at the earlier of (i) the Registration
Statement becoming effective or (ii) the Purchased Units of such Holder becoming eligible for
resale without restriction under any section of Rule 144 (or any similar provision then in effect)
under the Securities Act, assuming that each Holder is not an Affiliate of the Partnership, and any
payment of Liquidated Damages shall be prorated for any period of less than thirty (30) days in
which the payment of Liquidated Damages ceases. If the Partnership is unable to cause a
Registration Statement to go effective within one hundred eighty (180) days after the Closing Date
as a result of an acquisition, merger, reorganization, disposition or other similar transaction,
then the Partnership may request a waiver of the Liquidated Damages, and each Holder may
individually grant or withhold its consent to such request in its discretion.

     Section 2.02 Piggyback Rights.

     (a) Participation. In the event those Registrable Securities that are LP Units may
not be disposed of without restriction pursuant to any section of Rule 144 (or any similar
provision then in effect) under the Securities Act, if the Partnership proposes to file (i) a shelf
registration statement other than the Registration Statement contemplated by Section
2.01(a), (ii) a prospectus supplement to an effective shelf registration statement, other than
the Registration Statement contemplated by Section 2.01(a) of this Agreement and Holders
may be included without the filing of a post-effective amendment thereto, or (iii) a registration
statement, other than a shelf registration statement, in each case, for the sale of LP Units in an
Underwritten Offering for its own account and/or another Person, then as soon as practicable
following the engagement of counsel by the Partnership to prepare the documents to be used in
connection with an Underwritten Offering, the Partnership shall give notice (including, but not
limited to, notification by electronic mail) of such proposed Underwritten Offering to each Holder
(together with its Affiliates) holding at least $10.0 million of the then-outstanding Registrable
Securities that are LP Units (based on the LP Unit Price) and such notice shall offer such Holders
the opportunity to include in such Underwritten Offering such number of Registrable Securities that
are LP Units (the “Included Registrable Securities”) as each such Holder may request in
writing; provided, however, that if the Partnership has been advised by the Managing Underwriter
that the inclusion of such Registrable Securities for sale for the benefit of the Holders will have
an

5

 

adverse effect on the price, timing or distribution of the LP Units in the Underwritten
Offering, then (A) the Partnership shall not be required to offer such opportunity to the Holders
or (B) if any Registrable Securities that are LP Units can be included in the Underwritten Offering
in the opinion of the Managing Underwriter, then the amount of such Registrable Securities to be
offered for the accounts of Holders shall be determined based on the provisions of Section
2.02(b). Any notice required to be provided in this Section 2.02(a) to Holders shall
be provided on a Business Day pursuant to Section 3.01 hereof and receipt of such notice
shall be confirmed by the Holder. Each such Holder shall then have two (2) Business Days (or one
(1) Business Day in connection with any overnight or bought Underwritten Offering) after notice has
been delivered to request in writing the inclusion of those Registrable Securities that are LP
Units in the Underwritten Offering. If no written request for inclusion from a Holder is received
within the specified time, each such Holder shall have no further right to participate in such
Underwritten Offering. If, at any time after giving written notice of its intention to undertake
an Underwritten Offering and prior to the closing of such Underwritten Offering, the Partnership
shall determine for any reason not to undertake or to delay such Underwritten Offering, the
Partnership may, at its election, give written notice of such determination to the Selling Holders
and, (x) in the case of a determination not to undertake such Underwritten Offering, shall be
relieved of its obligation to sell any Included Registrable Securities in connection with such
terminated Underwritten Offering, and (y) in the case of a determination to delay such Underwritten
Offering, shall be permitted to delay offering any Included Registrable Securities for the same
period as the delay in the Underwritten Offering. Any Selling Holder shall have the right to
withdraw such Selling Holder’s request for inclusion of such Selling Holder’s Registrable
Securities in such Underwritten Offering by giving written notice to the Partnership of such
withdrawal at or prior to the time of pricing of such Underwritten Offering. Any Holder may
deliver written notice (an “Opt-Out Notice”) to the Partnership requesting that such Holder
not receive notice from the Partnership of any proposed Underwritten Offering; provided, however,
that such Holder may later revoke any such Opt-Out Notice in writing. Following receipt of an
Opt-Out Notice from a Holder (unless subsequently revoked), the Partnership shall not be required
to deliver any notice to such Holder pursuant to this Section 2.02(a) and such Holder shall
no longer be entitled to participate in Underwritten Offerings by the Partnership pursuant to this
Section 2.02(a). The Holders indicated on Schedule A hereto shall each be deemed
to have delivered an Opt-Out Notice as of the date hereof.

     (b) Priority. If the Managing Underwriter or Underwriters of any proposed
Underwritten Offering advises the Partnership that the total amount of Registrable Securities that
the Selling Holders and any other Persons intend to include in such offering exceeds the number
that can be sold in such offering without being likely to have an adverse effect on the price,
timing or distribution of the LP Units offered or the market for the LP Units, then the LP Units to
be included in such Underwritten Offering shall include the number of those Registrable Securities
that are LP Units that such Managing Underwriter or Underwriters advises the Partnership can be
sold without having such adverse effect, with such number to be allocated (i) first, to the
Partnership and, if applicable, to those holders of Parity Securities who initiated the
Underwritten Offering pursuant to rights granted such holders under the ArcLight/Kelso Registration
Rights Agreement and (ii) second, pro rata among the Selling Holders who have requested
participation in such Underwritten Offering and, except as provided in clause (i), any other holder
of securities of the Partnership having rights of registration that are neither expressly senior
nor subordinated to the Registrable Securities (the “Parity Securities”). As of the date

6

 

hereof, Parity Securities include securities of the Partnership covered by the Existing
Registration Rights Agreements. The pro rata allocations for each Selling Holder who has requested
participation in such Underwritten Offering shall be the product of (a) the aggregate number of
those Registrable Securities that are LP Units proposed to be sold in such Underwritten Offering
multiplied by (b) the fraction derived by dividing (x) the number of those Registrable Securities
that are LP Units owned on the Closing Date by such Selling Holder by (y) the aggregate number of
those Registrable Securities that are LP Units owned on the Closing Date by all Selling Holders
plus the aggregate number of Parity Securities owned on the Closing Date by all holders of Parity
Securities that are participating in the Underwritten Offering.

     (c) Termination of Piggyback Registration Rights. Each Holder’s rights under
Section 2.02 shall terminate upon such Holder (together with its Affiliates) ceasing to
hold at least $10.0 million of those Registrable Securities that are LP Units (based on the LP Unit
Price). Each Holder shall notify the Partnership in writing when such Holder holds less than $10.0
million of those Registrable Securities that are LP Units (based on the LP Unit Price).

     Section 2.03 Delay Rights.

     Notwithstanding anything to the contrary contained herein, the Partnership may, upon written
notice to any Selling Holder whose Registrable Securities are included in the Registration
Statement or other registration statement contemplated by this Agreement, suspend such Selling
Holder’s use of any prospectus which is a part of the Registration Statement or other registration
statement (in which event the Selling Holder shall discontinue sales of the Registrable Securities
pursuant to the Registration Statement or other registration statement contemplated by this
Agreement but may settle any previously made sales of Registrable Securities) if (i) the
Partnership is pursuing an acquisition, merger, reorganization, disposition or other similar
transaction and the Partnership determines in good faith that the Partnership’s ability to pursue
or consummate such a transaction would be materially adversely affected by any required disclosure
of such transaction in the Registration Statement or other registration statement or (ii) the
Partnership has experienced some other material non-public event the disclosure of which at such
time, in the good faith judgment of the Partnership, would materially adversely affect the
Partnership; provided, however, in no event shall the Selling Holders be suspended from selling
Registrable Securities pursuant to the Registration Statement or other registration statement for a
period that exceeds an aggregate of sixty (60) days in any one hundred eighty (180)-day period or
one hundred five (105) days in any three hundred sixty-five (365)-day period, in each case,
exclusive of days covered by any lock-up agreement executed by a Selling Holder in connection with
any Underwritten Offering. Upon disclosure of such information or the termination of the condition
described above, the Partnership shall provide prompt notice to the Selling Holders whose
Registrable Securities are included in the Registration Statement, and shall promptly terminate any
suspension of sales it has put into effect and shall take such other reasonable actions to permit
registered sales of Registrable Securities as contemplated in this Agreement.

          If (i) the Selling Holders shall be prohibited from selling their Registrable Securities under
the Registration Statement or other registration statement contemplated by this Agreement as a
result of a suspension pursuant to the immediately preceding paragraph in excess of the periods
permitted therein or (ii) the Registration Statement or other registration statement contemplated
by this Agreement is filed and declared effective but, during the Effectiveness

7

 

Period, shall thereafter cease to be effective or fail to be usable for its intended purpose
without being succeeded within 60 Business Days by a post-effective amendment thereto, a supplement
to the prospectus or a report filed with the Commission pursuant to Section 13(a), 13(c), 14 or
l5(d) of the Exchange Act, then, until the suspension is lifted or a post-effective amendment,
supplement or report is filed with the Commission, but not including any day on which a suspension
is lifted or such amendment, supplement or report is filed and declared effective, if applicable,
the Partnership shall pay the Selling Holders an amount equal to the Liquidated Damages, following
the earlier of (x) the date on which the suspension period exceeded the permitted period and (y)
the sixty-first (61st) Business Day after the Registration Statement or other registration
statement contemplated by this Agreement ceased to be effective or failed to be useable for its
intended purposes, as liquidated damages and not as a penalty (for purposes of calculation
Liquidated Damages, the date in (x) or (y) above shall be deemed the “180th day,” as used in the
definition of Liquidated Damages). For purposes of this paragraph, a suspension shall be deemed
lifted on the date that notice that the suspension has been terminated is delivered to the Selling
Holders. Liquidated Damages pursuant to this paragraph shall cease upon the Purchased Units of
such Holder becoming eligible for resale without restriction under any section of Rule 144 (or any
similar provision then in effect) under the Securities Act, assuming that each Holder is not an
Affiliate of the Partnership, and any payment of Liquidated Damages shall be prorated for any
period of less than 30 days in which the payment of Liquidated Damages ceases.

     Section 2.04 Underwritten Offerings.

     (a) General Procedures. In connection with any Underwritten Offering under this
Agreement, the Partnership shall be entitled to select the Managing Underwriter or Underwriters.
In connection with an Underwritten Offering contemplated by this Agreement in which a Selling
Holder participates, each Selling Holder and the Partnership shall be obligated to enter into an
underwriting agreement that contains such representations, covenants, indemnities and other rights
and obligations as are customary in underwriting agreements for firm commitment offerings of
securities. No Selling Holder may participate in such Underwritten Offering unless such Selling
Holder agrees to sell its Registrable Securities on the basis provided in such underwriting
agreement and completes and executes all questionnaires, powers of attorney, indemnities and other
documents reasonably required under the terms of such underwriting agreement. Each Selling Holder
may, at its option, require that any or all of the representations and warranties by, and the other
agreements on the part of, the Partnership to and for the benefit of such underwriters also be made
to and for such Selling Holder’s benefit and that any or all of the conditions precedent to the
obligations of such underwriters under such underwriting agreement also be conditions precedent to
its obligations. No Selling Holder shall be required to make any representations or warranties to
or agreements with the Partnership or the underwriters other than representations, warranties or
agreements regarding such Selling Holder, its authority to enter into such underwriting agreement
and to sell, and its ownership of, the securities being registered on its behalf, its intended
method of distribution and any other representation required by Law. If any Selling Holder
disapproves of the terms of an underwriting, such Selling Holder may elect to withdraw therefrom by
notice to the Partnership and the Managing Underwriter; provided, however, that such withdrawal
must be made up to and including the time of pricing of such Underwritten Offering. No such
withdrawal or abandonment shall affect the Partnership’s obligation to pay Registration Expenses.
The Partnership’s management may but shall not be

8

 

required to participate in a roadshow or similar marketing effort in connection with any
Underwritten Offering.

     (b) No Demand Rights. Notwithstanding any other provision of this Agreement, no
Holder shall be entitled to any “demand” rights or similar rights that would require the
Partnership to effect an Underwritten Offering solely on behalf of the Holders.

     Section 2.05 Sale Procedures. In connection with its obligations under this
Article II, the Partnership will, as expeditiously as possible:

     (a) prepare and file with the Commission such amendments and supplements to the Registration
Statement and the prospectus used in connection therewith as may be necessary to keep the
Registration Statement effective for the Effectiveness Period and as may be necessary to comply
with the provisions of the Securities Act with respect to the disposition of all Registrable
Securities covered by the Registration Statement;

     (b) if a prospectus supplement will be used in connection with the marketing of an
Underwritten Offering from the Registration Statement and the Managing Underwriter at any time
shall notify the Partnership in writing that, in the sole judgment of such Managing Underwriter,
inclusion of detailed information to be used in such prospectus supplement is of material
importance to the success of the Underwritten Offering of such Registrable Securities, the
Partnership shall use its commercially reasonable efforts to include such information in such
prospectus supplement;

     (c) furnish to each Selling Holder (i) as far in advance as reasonably practicable before
filing the Registration Statement or any other registration statement contemplated by this
Agreement or any supplement or amendment thereto, upon request, copies of reasonably complete
drafts of all such documents proposed to be filed (including exhibits and each document
incorporated by reference therein to the extent then required by the rules and regulations of the
Commission), and provide each such Selling Holder the opportunity to object to any information
pertaining to such Selling Holder and its plan of distribution that is contained therein and make
the corrections reasonably requested by such Selling Holder with respect to such information prior
to filing the Registration Statement or such other registration statement or supplement or
amendment thereto, and (ii) such number of copies of the Registration Statement or such other
registration statement and the prospectus included therein and any supplements and amendments
thereto as such Selling Holder may reasonably request in order to facilitate the public sale or
other disposition of the Registrable Securities covered by such Registration Statement or other
registration statement;

     (d) if applicable, use its commercially reasonable efforts to register or qualify the
Registrable Securities covered by the Registration Statement or any other registration statement
contemplated by this Agreement under the securities or blue sky laws of such jurisdictions as the
Selling Holders or, in the case of an Underwritten Offering, the Managing Underwriter, shall
reasonably request; provided, however, that the Partnership will not be required to qualify
generally to transact business in any jurisdiction where it is not then required to so qualify or
to take any action that would subject it to general service of process in any such jurisdiction
where it is not then so subject;

9

 

     (e) promptly notify each Selling Holder, at any time when a prospectus relating thereto is
required to be delivered by any of them under the Securities Act, of (i) the filing of the
Registration Statement or any other registration statement contemplated by this Agreement or any
prospectus or prospectus supplement to be used in connection therewith, or any amendment or
supplement thereto, and, with respect to such Registration Statement or any other registration
statement or any post-effective amendment thereto, when the same has become effective; and (ii) the
receipt of any written comments from the Commission with respect to any filing referred to in
clause (i) and any written request by the Commission for amendments or supplements to the
Registration Statement or any other registration statement or any prospectus or prospectus
supplement thereto;

     (f) immediately notify each Selling Holder, at any time when a prospectus relating thereto is
required to be delivered under the Securities Act, of (i) the happening of any event as a result of
which the prospectus or prospectus supplement contained in the Registration Statement or any other
registration statement contemplated by this Agreement, as then in effect, includes an untrue
statement of a material fact or omits to state any material fact required to be stated therein or
necessary to make the statements therein not misleading (in the case of any prospectus contained
therein, in the light of the circumstances under which a statement is made); (ii) the issuance or
express threat of issuance by the Commission of any stop order suspending the effectiveness of the
Registration Statement or any other registration statement contemplated by this Agreement, or the
initiation of any proceedings for that purpose; or (iii) the receipt by the Partnership of any
notification with respect to the suspension of the qualification of any Registrable Securities for
sale under the applicable securities or blue sky laws of any jurisdiction. Following the provision
of such notice, the Partnership agrees to as promptly as practicable amend or supplement the
prospectus or prospectus supplement or take other appropriate action so that the prospectus or
prospectus supplement does not include an untrue statement of a material fact or omit to state a
material fact required to be stated therein or necessary to make the statements therein not
misleading in the light of the circumstances then existing and to take such other commercially
reasonable action as is necessary to remove a stop order, suspension, threat thereof or proceedings
related thereto;

     (g) upon request and subject to appropriate confidentiality obligations, furnish to each
Selling Holder copies of any and all transmittal letters or other correspondence with the
Commission or any other governmental agency or self-regulatory body or other body having
jurisdiction (including any domestic or foreign securities exchange) relating to such offering of
Registrable Securities;

     (h) in the case of an Underwritten Offering, furnish upon request, (i) an opinion of counsel
for the Partnership dated the date of the closing under the underwriting agreement and (ii) a “cold
comfort” letter, dated the pricing date of such Underwritten Offering and a letter of like kind
dated the date of the closing under the underwriting agreement, in each case, signed by the
independent public accountants who have certified the Partnership’s financial statements included
or incorporated by reference into the applicable registration statement, and each of the opinion
and the “cold comfort” letter shall be in customary form and covering substantially the same
matters with respect to such registration statement (and the prospectus and any prospectus
supplement included therein) as have been customarily covered in opinions of issuer’s counsel and
in accountants’ letters delivered to the underwriters in Underwritten Offerings of securities

10

 

by the Partnership and such other matters as such underwriters and Selling Holders may
reasonably request;

     (i) otherwise use its commercially reasonable efforts to comply with all applicable rules and
regulations of the Commission, and make available to its security holders, as soon as reasonably
practicable, an earnings statement, which earnings statement shall satisfy the provisions of
Section 11(a) of the Securities Act and Rule 158 promulgated thereunder;

     (j) make available to the appropriate representatives of the Managing Underwriter and Selling
Holders access to such information and Partnership personnel as is reasonable and customary to
enable such parties to establish a due diligence defense under the Securities Act; provided, that
the Partnership need not disclose any non-public information to any such representative unless and
until such representative has entered into a confidentiality agreement with the Partnership;

     (k) cause all such Registrable Securities registered pursuant to this Agreement to be listed
on each securities exchange or nationally recognized quotation system on which similar securities
issued by the Partnership are then listed;

     (l) use its commercially reasonable efforts to cause the Registrable Securities to be
registered with or approved by such other governmental agencies or authorities as may be necessary
by virtue of the business and operations of the Partnership to enable the Selling Holders to
consummate the disposition of such Registrable Securities;

     (m) provide a transfer agent and registrar for all Registrable Securities covered by such
registration statement not later than the effective date of such registration statement;

     (n) enter into customary agreements and take such other actions as are reasonably requested by
the Selling Holders or the underwriters, if any, in order to expedite or facilitate the disposition
of such Registrable Securities; and

     (o) if requested by a Selling Holder, (i) incorporate in a prospectus supplement or
post-effective amendment such information as such Selling Holder reasonably requests to be included
therein relating to the sale and distribution of Registrable Securities, including information with
respect to the number of Registrable Securities being offered or sold, the purchase price being
paid therefor and any other terms of the offering of the Registrable Securities to be sold in such
offering and (ii) make all required filings of such prospectus supplement or post-effective
amendment after being notified of the matters to be incorporated in such prospectus supplement or
post-effective amendment.

     Each Selling Holder, upon receipt of notice from the Partnership of the happening of any event
of the kind described in subsection (f) of this Section 2.05, shall forthwith
discontinue offers and sales of the Registrable Securities by means of a prospectus or prospectus
supplement until such Selling Holder’s receipt of the copies of the supplemented or amended
prospectus contemplated by subsection (f) of this Section 2.05 or until it is
advised in writing by the Partnership that the use of the prospectus may be resumed and has
received copies of any additional or supplemental filings incorporated by reference in the
prospectus, and, if so directed by the Partnership, such Selling Holder will, or will request the
Managing Underwriter or

11

 

Underwriters, if any, to deliver to the Partnership (at the Partnership’s expense) all copies
in their possession or control, other than permanent file copies then in such Selling Holder’s
possession, of the prospectus covering such Registrable Securities current at the time of receipt
of such notice.

     Section 2.06 Cooperation by Holders. The Partnership shall have no obligation to
include Registrable Securities of a Holder in the Registration Statement or in an Underwritten
Offering pursuant to Section 2.02(a) who has failed to timely furnish such information that
the Partnership determines, after consultation with its counsel, is reasonably required in order
for the registration statement or prospectus supplement, as applicable, to comply with the
Securities Act.

     Section 2.07 Restrictions on Public Sale by Holders of Registrable Securities. Each
Holder of Registrable Securities agrees to enter into a customary letter agreement with
underwriters providing such Holder will not effect any public sale or distribution of the class of
Registrable Securities subject to the Underwritten Offering during the sixty (60) calendar day
period beginning on the date of a prospectus or prospectus supplement filed with the Commission
with respect to the pricing of any Underwritten Offering, provided that (i) the duration of the
foregoing restrictions shall be no longer than the duration of the shortest restriction generally
imposed by the underwriters on the Partnership or the officers, directors or any other Affiliate of
the Partnership on whom a restriction is imposed and (ii) the restrictions set forth in this
Section 2.07 shall not apply to any Registrable Securities that are included in such
Underwritten Offering by such Holder. In addition, this Section 2.07 shall not apply to
any Holder that is not entitled to participate in such Underwritten Offering, whether because such
Holder delivered an Opt-Out Notice prior to receiving notice of the Underwritten Offering, because
such Holder holds less than $10.0 million of the then-outstanding Registrable Securities or because
the Registrable Securities held by such Holder may be disposed of without restriction pursuant to
any section of Rule 144 (or any similar provision then in effect) under the Securities Act.

     Section 2.08 Expenses.

     (a) Expenses. The Partnership will pay all reasonable Registration Expenses as
determined in good faith, including, in the case of an Underwritten Offering, whether or not any
sale is made pursuant to such Underwritten Offering. Each Selling Holder shall pay its pro rata
share of all Selling Expenses in connection with any sale of its Registrable Securities hereunder.
In addition, except as otherwise provided in Section 2.09 hereof, the Partnership shall not
be responsible for legal fees incurred by Holders in connection with the exercise of such Holders’
rights hereunder.

     (b) Certain Definitions. “Registration Expenses” means all expenses incident
to the Partnership’s performance under or compliance with this Agreement to effect the registration
of Registrable Securities on the Registration Statement pursuant to Section 2.01(a) or an
Underwritten Offering covered under this Agreement, and the disposition of such Registrable
Securities, including, without limitation, all registration, filing, securities exchange listing
and NYSE fees, all registration, filing, qualification and other fees and expenses of complying
with securities or blue sky laws, fees of the Financial Industry Regulatory Authority, fees of
transfer agents and registrars, all word processing, duplicating and printing expenses, any
transfer taxes

12

 

and the fees and disbursements of counsel and independent public accountants for the
Partnership, including the expenses of any special audits or “cold comfort” letters required by or
incident to such performance and compliance. “Selling Expenses” means all underwriting
fees, discounts and selling commissions or similar fees or arrangements allocable to the sale of
the Registrable Securities.

     Section 2.09 Indemnification.

     (a) By the Partnership. In the event of a registration of any Registrable Securities
under the Securities Act pursuant to this Agreement, the Partnership will indemnify and hold
harmless each Selling Holder thereunder, its directors, officers, employees and agents and each
Person, if any, who controls such Selling Holder within the meaning of the Securities Act and the
Exchange Act, and its directors, officers, employees or agents (collectively, the “Selling
Holder Indemnified Persons”), against any losses, claims, damages, expenses or liabilities
(including reasonable attorneys’ fees and expenses) (collectively, “Losses”), joint or
several, to which such Selling Holder Indemnified Person may become subject under the Securities
Act, the Exchange Act or otherwise, insofar as such Losses (or actions or proceedings, whether
commenced or threatened, in respect thereof) arise out of or are based upon any untrue statement or
alleged untrue statement of any material fact (in the case of any prospectus, in light of the
circumstances under which such statement is made) contained in the Registration Statement or any
other registration statement contemplated by this Agreement, any preliminary prospectus, prospectus
supplement, free writing prospectus or final prospectus contained therein, or any amendment or
supplement thereof, or arise out of or are based upon the omission or alleged omission to state
therein a material fact required to be stated therein or necessary to make the statements therein
(in the case of a prospectus, in light of the circumstances under which they were made) not
misleading, and will reimburse each such Selling Holder Indemnified Person for any legal or other
expenses reasonably incurred by them in connection with investigating or defending any such Loss or
actions or proceedings; provided, however, that the Partnership will not be liable in any such case
if and to the extent that any such Loss arises out of or is based upon an untrue statement or
alleged untrue statement or omission or alleged omission so made in conformity with information
furnished by such Selling Holder Indemnified Person in writing specifically for use in the
Registration Statement or such other registration statement, or prospectus supplement, as
applicable. Such indemnity shall remain in full force and effect regardless of any investigation
made by or on behalf of such Selling Holder Indemnified Person, and shall survive the transfer of
such securities by such Selling Holder.

     (b) By Each Selling Holder. Each Selling Holder agrees severally and not jointly to
indemnify and hold harmless the Partnership, the General Partner, its directors, officers,
employees and agents and each Person, if any, who controls the Partnership within the meaning of
the Securities Act or of the Exchange Act, and its directors, officers, employees and agents, to
the same extent as the foregoing indemnity from the Partnership to the Selling Holders, but only
with respect to information regarding such Selling Holder furnished in writing by or on behalf of
such Selling Holder expressly for inclusion in the Registration Statement or any other registration
statement contemplated by this Agreement, any preliminary prospectus, prospectus supplement, free
writing prospectus or final prospectus contained therein, or any amendment or supplement thereof;
provided, however, that the liability of each Selling Holder shall not be greater in amount than
the dollar amount of the proceeds (net of any Selling Expenses) received

13

 

by such Selling Holder from the sale of the Registrable Securities giving rise to such
indemnification.

     (c) Notice. Promptly after receipt by an indemnified party hereunder of notice of the
commencement of any action, such indemnified party shall, if a claim in respect thereof is to be
made against the indemnifying party hereunder, notify the indemnifying party in writing thereof,
but the omission so to notify the indemnifying party shall not relieve it from any liability that
it may have to any indemnified party other than under this Section 2.09. In any action
brought against any indemnified party, it shall notify the indemnifying party of the commencement
thereof. The indemnifying party shall be entitled to participate in and, to the extent it shall
wish, to assume and undertake the defense thereof with counsel reasonably satisfactory to such
indemnified party and, after notice from the indemnifying party to such indemnified party of its
election so to assume and undertake the defense thereof, the indemnifying party shall not be liable
to such indemnified party under this Section 2.09 for any legal expenses subsequently
incurred by such indemnified party in connection with the defense thereof other than reasonable
costs of investigation and of liaison with counsel so selected; provided, however, that, (i) if the
indemnifying party has failed to assume the defense or employ counsel reasonably acceptable to the
indemnified party or (ii) if the defendants in any such action include both the indemnified party
and the indemnifying party and counsel to the indemnified party shall have concluded that there may
be reasonable defenses available to the indemnified party that are different from or additional to
those available to the indemnifying party, or if the interests of the indemnified party reasonably
may be deemed to conflict with the interests of the indemnifying party, then the indemnified party
shall have the right to select a separate counsel and to assume such legal defense and otherwise to
participate in the defense of such action, with the reasonable expenses and fees of such separate
counsel and other reasonable expenses related to such participation to be reimbursed by the
indemnifying party as incurred. Notwithstanding any other provision of this Agreement, no
indemnifying party shall settle any action brought against any indemnified party with respect to
which such indemnified party is entitled to indemnification hereunder without the consent of the
indemnified party, unless the settlement thereof imposes no liability or obligation on, and
includes a complete and unconditional release from all liability of, the indemnified party.

     (d) Contribution. If the indemnification provided for in this Section 2.09 is
held by a court or government agency of competent jurisdiction to be unavailable to any indemnified
party or is insufficient to hold them harmless in respect of any Losses, then each such
indemnifying party, in lieu of indemnifying such indemnified party, shall contribute to the amount
paid or payable by such indemnified party as a result of such Loss in such proportion as is
appropriate to reflect the relative fault of the indemnifying party on the one hand and of such
indemnified party on the other in connection with the statements or omissions that resulted in such
Losses, as well as any other relevant equitable considerations; provided, however, that in no event
shall such Selling Holder be required to contribute an aggregate amount in excess of the dollar
amount of proceeds (net of Selling Expenses) received by such Selling Holder from the sale of
Registrable Securities giving rise to such indemnification. The relative fault of the indemnifying
party on the one hand and the indemnified party on the other shall be determined by reference to,
among other things, whether the untrue or alleged untrue statement of a material fact or the
omission or alleged omission to state a material fact has been made by, or relates to, information
supplied by such party, and the parties’ relative intent, knowledge, access to information and
opportunity to

14

 

correct or prevent such statement or omission. The parties hereto agree that it would not be
just and equitable if contributions pursuant to this paragraph were to be determined by pro rata
allocation or by any other method of allocation that does not take account of the equitable
considerations referred to herein. The amount paid by an indemnified party as a result of the
Losses referred to in the first sentence of this paragraph shall be deemed to include any legal and
other expenses reasonably incurred by such indemnified party in connection with investigating or
defending any Loss that is the subject of this paragraph. No person guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to
contribution from any Person who is not guilty of such fraudulent misrepresentation.

     (e) Other Indemnification. The provisions of this Section 2.09 shall be in
addition to any other rights to indemnification or contribution that an indemnified party may have
pursuant to law, equity, contract or otherwise.

     Section 2.10 Rule 144 Reporting. With a view to making available the benefits of
certain rules and regulations of the Commission that may permit the sale of the Registrable
Securities to the public without registration, the Partnership agrees to use its commercially
reasonable efforts to:

     (a) make and keep public information regarding the Partnership available, as those terms are
understood and defined in Rule 144 under the Securities Act, at all times from and after the date
hereof;

     (b) file with the Commission in a timely manner all reports and other documents required of
the Partnership under the Securities Act and the Exchange Act at all times from and after the date
hereof; and

     (c) so long as a Holder owns any Registrable Securities, furnish, unless otherwise available
via EDGAR, to such Holder forthwith upon request a copy of the most recent annual or quarterly
report of the Partnership, and such other reports and documents so filed as such Holder may
reasonably request in availing itself of any rule or regulation of the Commission allowing such
Holder to sell any such securities without registration.

     Section 2.11 Transfer or Assignment of Registration Rights. The rights to cause the
Partnership to register Registrable Securities granted to the Investors by the Partnership under
this Article II may be transferred or assigned by any Investor to one or more transferees
or assignees of Registrable Securities; provided, however, that (a) unless the transferee or
assignee is an Affiliate of, and after such transfer or assignment continues to be an Affiliate of,
such Investor, the amount of Registrable Securities transferred or assigned to such transferee or
assignee shall represent at least $10.0 million of Registrable Securities (based on the LP Unit
Price or the Class B Unit Price, as applicable), (b) the Partnership is given written notice prior
to any said transfer or assignment, stating the name and address of each such transferee or
assignee and identifying the securities with respect to which such registration rights are being
transferred or assigned, and (c) each such transferee or assignee assumes in writing responsibility
for its portion of the obligations of such Investor under this Agreement.

15

 

     Section 2.12 Limitation on Subsequent Registration Rights. From and after the date
hereof, the Partnership shall not, without the prior written consent of the Holders of a majority
of the Registrable Securities, enter into any agreement with any current or future holder of any
securities of the Partnership that would allow such current or future holder to require the
Partnership to include securities in any registration statement filed by the Partnership on a basis
other than pari passu with, or expressly subordinate to the rights of, the Holders of Registrable
Securities hereunder.

ARTICLE III

MISCELLANEOUS

     Section 3.01 Communications. All notices and other communications provided for or permitted hereunder shall be made in
writing by facsimile, electronic mail, courier service or personal delivery:

     (a) if to an Investor:

     To the respective address listed on Schedule A hereof

     (b) if to a transferee of an Investor, to such Holder at the address provided pursuant to
Section 2.11 above; and

     (c) if to the Partnership:

Buckeye Partners, L.P.

One Greenway Plaza, Suite 600

Houston, TX 77046

Attention: General Counsel

Facsimile: 610.904.4006

with a copy to:

Vinson & Elkins L.L.P.

666 Fifth Avenue

26th Floor

New York, NY 10103

Attention: E. Ramey Layne

Facsimile: 212.237.0100

     All such notices and communications shall be deemed to have been received at the time
delivered by hand, if personally delivered; when receipt acknowledged, if sent via facsimile or
sent via Internet electronic mail; and when actually received, if sent by courier service or any
other means.

     Section 3.02 Successor and Assigns. This Agreement shall inure to the benefit of and
be binding upon the successors and assigns of each of the parties, including subsequent Holders of
Registrable Securities to the extent permitted herein.

16

 

     Section 3.03 Assignment of Rights. All or any portion of the rights and obligations
of any Investor under this Agreement may be transferred or assigned by such Investor only in
accordance with Section 2.11 hereof.

     Section 3.04 Recapitalization, Exchanges, Etc. Affecting the Units. The provisions of
this Agreement shall apply to the full extent set forth herein with respect to any and all units of
the Partnership or any successor or assign of the Partnership (whether by merger, consolidation,
sale of assets or otherwise) that may be issued in respect of, in exchange for or in substitution
of, the Registrable Securities, and shall be appropriately adjusted for combinations, unit splits,
recapitalizations, pro rata distributions of units and the like occurring after the date of this
Agreement.

     Section 3.05 Aggregation of Registrable Securities. All Registrable Securities held
or acquired by Persons who are Affiliates of one another shall be aggregated together for the
purpose of determining the availability of any rights and applicability of any obligations under
this Agreement.

     Section 3.06 Specific Performance. Damages in the event of breach of this Agreement
by a party hereto may be difficult, if not impossible, to ascertain, and it is therefore agreed
that each such Person, in addition to and without limiting any other remedy or right it may have,
will have the right to an injunction or other equitable relief in any court of competent
jurisdiction, enjoining any such breach, and enforcing specifically the terms and provisions
hereof, and each of the parties hereto hereby waives any and all defenses it may have on the ground
of lack of jurisdiction or competence of the court to grant such an injunction or other equitable
relief. The existence of this right will not preclude any such Person from pursuing any other
rights and remedies at law or in equity that such Person may have.

     Section 3.07 Counterparts. This Agreement may be executed in any number of
counterparts and by different parties hereto in separate counterparts, each of which counterparts,
when so executed and delivered, shall be deemed to be an original and all of which counterparts,
taken together, shall constitute but one and the same Agreement.

     Section 3.08 Headings. The headings in this Agreement are for convenience of
reference only and shall not limit or otherwise affect the meaning hereof.

     Section 3.09 Governing Law. THIS AGREEMENT WILL BE CONSTRUED IN ACCORDANCE WITH, AND
GOVERNED BY, THE LAWS OF THE STATE OF NEW YORK.

     Section 3.10 Severability of Provisions. Any provision of this Agreement which is
prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to
the extent of such prohibition or unenforceability without invalidating the remaining provisions
hereof or affecting or impairing the validity or enforceability of such provision in any other
jurisdiction.

     Section 3.11 Entire Agreement. This Agreement is intended by the parties as a final
expression of their agreement and intended to be a complete and exclusive statement of the
agreement and understanding of the parties hereto in respect of the subject matter contained

17

 

herein. There are no restrictions, promises, warranties or undertakings, other than those set
forth or referred to herein with respect to the rights granted by the Partnership set forth herein.
This Agreement supersedes all prior agreements and understandings between the parties with respect
to such subject matter.

     Section 3.12 Amendment. This Agreement may be amended only by means of a written
amendment signed by the Partnership and the Holders of a majority of the then outstanding
Registrable Securities; provided, however, that no such amendment shall materially and adversely
affect the rights of any Holder hereunder without the consent of such Holder.

     Section 3.13 No Presumption. If any claim is made by a party relating to any
conflict, omission, or ambiguity in this Agreement, no presumption or burden of proof or persuasion
shall be implied by virtue of the fact that this Agreement was prepared by or at the request of a
particular party or its counsel.

     Section 3.14 Obligations Limited to Parties to Agreement. Each of the Parties hereto
covenants, agrees and acknowledges that no Person other than the Investors (and their permitted
transferees and assignees) and the Partnership shall have any obligation hereunder and that,
notwithstanding that one or more of the Investors may be a corporation, partnership or limited
liability company, no recourse under this Agreement or under any documents or instruments delivered
in connection herewith or therewith shall be had against any former, current or future director,
officer, employee, agent, general or limited partner, manager, member, stockholder or Affiliate of
any of the Investors or any former, current or future director, officer, employee, agent, general
or limited partner, manager, member, stockholder or Affiliate of any of the foregoing, whether by
the enforcement of any assessment or by any legal or equitable proceeding, or by virtue of any
applicable Law, it being expressly agreed and acknowledged that no personal liability whatsoever
shall attach to, be imposed on or otherwise be incurred by any former, current or future director,
officer, employee, agent, general or limited partner, manager, member, stockholder or Affiliate of
any of the Investors or any former, current or future director, officer, employee, agent, general
or limited partner, manager, member, stockholder or Affiliate of any of the foregoing, as such, for
any obligations of the Investors under this Agreement or any documents or instruments delivered in
connection herewith or therewith or for any claim based on, in respect of or by reason of such
obligation or its creation, except in each case for any transferee or assignee of a Investor
hereunder.

     Section 3.15 Interpretation. Article and Section references to this Agreement, unless
otherwise specified. All references to instruments, documents, contracts and agreements are
references to such instruments, documents, contracts and agreements as the same may be amended,
supplemented and otherwise modified from time to time, unless otherwise specified. The word
“including” shall mean “including but not limited to.” Whenever any determination, consent or
approval is to be made or given by an Investor under this Agreement, such action shall be in such
Investor’s sole discretion unless otherwise specified.

[Signature pages to follow]

18

 

     IN WITNESS WHEREOF, the Parties hereto execute this Agreement, effective as of the date
first above written.

	 	 	 	 	 
	 	BUCKEYE PARTNERS, L.P.

 	 
	 	By:  	BUCKEYE GP LLC
 	 
	 	 	(its General Partner) 	 
	 	 	 
	 	By:  	                       /s/ Keith E. St.Clair
 	 
	 	 	Keith E. St.Clair 	 
	 	 	Senior Vice President
and Chief Financial Officer 	 

Signature Page to Registration Rights Agreement

 

 

	 	 	 	 	 
	 	FR XI OFFSHORE AIV, L.P.

 	 
	 	By:  	FR XI Offshore GP, L.P.,
 	 
	 	 	its general partner 	 
	 	 	 	 
	 	By:  	                      FR XI Offshore GP Limited,
 	 
	 	 	its general partner 	 
	 	 	 	 
	 	By:  	                      /s/ Alan Schwartz
 	 
	 	 	Name:  	Alan Schwartz 	 
	 	 	Title:  	Director 	 

Signature Page to Registration Rights Agreement

 

 

	 	 	 	 	 
	 	Investor:

Fiduciary/Claymore MLP Opportunity Fund

 	 
	 	By:  	/s/ Joseph Gallagher Jr
 	 
	 	 	Name:  	Joseph Gallagher Jr. CFA 	 
	 	 	Title:  	Executive Managing Director Fiduciary/Claymore MLP Opportunity Fund 	 

Signature Page to Registration Rights Agreement

(PIPE Investors)

 

 

	 	 	 	 	 
	 	Investor:

KAYNE ANDERSON MLP INVESTMENT COMPANY

 	 
	 	By:  	/s/ James C. Baker
 	 
	 	 	Name:  	James C. Baker 	 
	 	 	Title:  	Executive Vice President 	 
	 
	 	Investor:

KAYNE ANDERSON ENERGY TOTAL RETURN FUND, INC.

 	 
	 	By:  	/s/ James C. Baker
 	 
	 	 	Name:  	James C. Baker 	 
	 	 	Title:  	Executive Vice President 	 
	 
	 	Investor:

KAYNE ANDERSON MIDSTREAM/ENERGY FUND, INC.

 	 
	 	By:  	/s/ James C. Baker
 	 
	 	 	Name:  	James C. Baker 	 
	 	 	Title:  	Executive Vice President 	 

Signature Page to Registration Rights Agreement

(PIPE Investors)

 

 

Schedule A — Investor Name; Notice and Contact Information; Opt-Out

	 	 	 	 	 
	 	 	 	 	Opt-Out
	 	 	 	 	at Date
	Investor	 	Address	 	Hereof
	FR XI Offshore AIV, L.P.

	 	c/o First Reserve 

One Lafayette Place

Greenwich, Connecticut 06830

Attention: Alan G. Schwartz

Fax: 203-661-6729	 	 
	 
	 	 	 	 
	 

	 	With a copy to:

Baker Botts L.L.P.

99 San Jacinto Boulevard, Suite 1500

Austin, Texas 78701

Attention: Mike Bengston

Fax: 512-322-8349	 	 
	 
	 	 	 	 
	Fiduciary/Caymore MLP Opportunity Fund

	 	Quinn Kiley 

8235 Forsyth Blvd., Suite 700

St. Louis, Missouri 63105

Fox: 314-446-1407	 	 
	 
	 	 	 	 
	Kayne Anderson MLP Investment Company

	 	James C. Baker 

Kayne Anderson Capital Advisors, L.P.

717 Texas Avenue, Suite 3100

Houston, Texas 77002

Fax: 713-665-7359	 	 
	 
	 	 	 	 
	 

	 	With a copy to:

Baker Botts L.L.P.

One Shell Plaza

910 Louisiana Street

Houston, Texas 77002

Attention: Joe S. Poff

Fax: 713-229-7710	 	 

Schedule A to Registration Rights Agreement

 

 

	 	 	 	 	 
	 	 	 	 	Opt-Out
	 	 	 	 	at Date
	Investor	 	Address	 	Hereof
	Kayne Anderson
Energy Total Return
Fund, Inc.

	 	James C. Baker 

Kayne Anderson Capital Advisors, L.P.

717 Texas Avenue, Suite 3100

Houston, Texas 77002

Fax: 713-665-7359	 	 
	 
	 	 	 	 
	 

	 	With a copy to:

Baker Botts L.L.P.

One Shell Plaza

910 Louisiana Street

Houston, Texas 77002

Attention: Joe S. Poff

Fax: 713-229-7710	 	 
	 
	 	 	 	 
	Kayne Anderson
Midstream/Energy
Fund, Inc.

	 	James C. Baker 

Kayne Anderson Capital Advisors, L.P.

717 Texas Avenue, Suite 3100

Houston, Texas 77002

Fax: 713-665-7359
	 	 
	 
	 	 	 	 
	 

	 	With a copy to:

Baker Botts L.L.P.

One Shell Plaza

910 Louisiana Street

Houston, Texas 77002

Attention: Joe S. Poff

Fax: 713-229-7710	 	 

Schedule A to Registration Rights Agreement

 

 

Exhibit B — Form of Amendment No. 1 to Amended and

Restated Agreement of Limited Partnership

     THIS AMENDMENT NO. 1 to the AMENDED AND RESTATED AGREEMENT OF LIMITED PARTNERSHIP OF BUCKEYE
PARTNERS, L.P. (this “Amendment”), dated as of [__________], 2011, is entered into and effectuated
by Buckeye GP LLC, a Delaware limited liability company, as the General Partner, pursuant to
authority granted to it in Sections 4.3 and 15.1 of the Amended and Restated Agreement of Limited
Partnership of Buckeye Partners, L.P., dated as of November 19, 2010 (the “Partnership Agreement”).
Capitalized terms used but not defined herein are used as defined in the Partnership Agreement.

     WHEREAS, Section 4.3(a) of the Partnership Agreement provides that the General Partner may
cause the Partnership to issue additional LP Units or other Partnership Securities, for any
Partnership purpose, at any time or from time to time, to Partners or to other Persons, for such
consideration and on such terms and conditions, and entitling the holders thereof to such relative
rights and powers, as shall be established by the General Partner, all without the approval of any
Limited Partners, except as provided in Section 17.1 of the Partnership Agreement; and

     WHEREAS, Section 15.1(f) of the Partnership Agreement provides that the General Partner,
without the consent of any Limited Partner, may amend any provision of the Partnership Agreement in
connection with a change that is required or contemplated by Section 4.3 of the Partnership
Agreement; and

     WHEREAS, Section 15.1(g) of the Partnership Agreement provides that the General Partner,
without the consent of any Limited Partner, may amend any provision of the Partnership Agreement to
reflect a change that in the good faith opinion of the General Partner does not adversely affect
the Limited Partners in any material respect; and

     WHEREAS, the board of directors of the General Partner has determined that the standards
specified in Section 15.1(f) or 15.1(g) are satisfied with respect to the amendments to be made by
this Amendment; and

     WHEREAS, the Partnership has entered into a Unit Purchase Agreement, dated as of December 18,
2010 (the “Unit Purchase Agreement”), with FR XI Offshore AIV, L.P. (the “Unit Purchaser”); and

     WHEREAS, the Unit Purchase Agreement obligates the Partnership to issue LP Units and limited
partner interests to be designated as Class B Units having the terms set forth herein; and

     WHEREAS, in connection with the entry into the Unit Purchase Agreement, the Partnership and the
Unit Purchaser have entered into a Registration Rights Agreement, dated as of December 18, 2010,
under which the Unit Purchaser may from time to time be issued LP Units in lieu of cash as
liquidated damages for failure to cause a registration statement covering all of the Unit
Purchaser’s Class B Units and LP Units to be registered; and

Exhibit B to Unit Purchase Agreement

 

 

     WHEREAS, the Partnership has entered into two Unit Purchase Agreements, dated as of
December 18, 2010, with the purchasers named therein, one of which provides for the issuance of
Class B Units and the other provides for the issuance of LP Units (the “PIPE Unit Purchase
Agreements”); and

     WHEREAS, the General Partner deems it in the best interest of the Partnership to effect this
Amendment in order to (i) specify the rights and obligations of the limited partner interests
designated as “Class B Units,” (ii) provide for the economic uniformity of the Class B Units, the
Privately Placed Units, and other LP Units that may be issued in connection with the Class B Units
and Privately Placed Units, and (iii) provide for such other matters as are provided herein.

     NOW, THEREFORE, it is hereby agreed as follows:

A. Amendment. The Partnership Agreement is hereby amended as follows:

     1. Article I is hereby amended to add or restate, as applicable, the following definitions:

     “Class B Unit” means a Partnership Interest issued pursuant to Section 4.3 and representing a
limited partner’s interest in the Partnership having the rights and obligations specified with
respect to the Class B Units in this Agreement.

     “Class B Unit Distribution” means any distribution payable to each Class B Unit, determined in
accordance with Section 5.2(a).

     “Conversion Date” means the date that is the earliest of (i) the third anniversary of the
initial issuance of Class B Units pursuant to the Unit Purchase Agreement, (ii) the in-service date
of an Expansion, and (iii) the date on which the Partnership delivers notice to the holders of the
Class B Units that the Class B Units have converted.

     “Eighty Percent Interest” means Limited Partners holding an aggregate of at least 80% of the
outstanding Units, voting as a single class.

     “Expansion” means any capital expansion of the Bahamas Oil Refining Company International Ltd.
facility that increases its design capacity by four million (4,000,000) barrels or more of
incremental capacity.

     “Issue Price” means the price at which a Unit is purchased from the Partnership. Each Unit
issued pursuant to the Unit Purchase Agreement shall be treated as having an Issue Price equal to
the fair market value of an LP Unit on the date such Unit is issued. Each PIK Unit shall have an
Issue Price determined in accordance with Section 4.8(d)(iv). Each PIPE Unit issued pursuant to
the Registration Rights Agreements shall have an Issue Price equal to the amount of cash in lieu of
which such PIPE Unit is issued.

     “LP Unit” means a Partnership Interest issued pursuant to Sections 4.2 or 4.3 and representing
a limited partner’s interest in the Partnership having the rights and obligations specified with
respect to the LP Units in this Agreement; provided that a Class B Unit will not constitute an LP
Unit until the Conversion Date.

Exhibit B to Unit Purchase Agreement

 

 

     “Majority Interest” means Limited Partners holding an aggregate of more than 50% of the
outstanding Units, voting as a single class.

     “Per Unit Capital Amount” means, as of any date of determination, the Capital Account with
respect to any class of Units, stated on a per Unit basis, underlying any Unit held by a Person.

     “PIK Unit” means a Class B Unit that may be issued by the Partnership in lieu of cash
distributions in respect of the Class B Units pursuant to Section 4.8(d).

     “PIPE Unit Purchase Agreements” means the LP Unit Purchase Agreement providing for the
issuance of LP Units and the Class B Unit Purchase Agreement providing for the issuance of Class B
Units, in each case dated as of December 18, 2010, with the purchasers named therein.

     “PIPE Unit” means an LP Unit or a Class B Unit that is issued by the Partnership pursuant to
the PIPE Unit Purchase Agreements or the Unit Purchase Agreement or the Registration Rights
Agreements.

     “Privately Placed Unit” means a Class B Unit or an LP Unit that is a PIK Unit, PIPE Unit or
converted Class B Unit.

     “Registration Rights Agreements” means the two Registration Rights Agreements, dated on or
after December 18, 2010 one of which is among the Partnership, the Unit Purchaser, and the
purchasers of the Class B Units pursuant to one PIPE Unit Purchase Agreement, and the other is
among the Partnership and the purchasers of LP Units pursuant to the other PIPE Unit Purchase
Agreement.

     “Transfer Agent” means the bank, trust company or other Person appointed from time to time by
the Partnership to act as successor transfer agent and registrar for any class of Units. The
General Partner shall serve as Transfer Agent and registrar for the Class B Units unless the
General Partner shall determine to cause the Partnership to appoint another Transfer Agent.

     “Two-Thirds Interest” means Limited Partners holding an aggregate of at least two-thirds of
the outstanding Units, voting as a single class.

     “Unit” means an LP Unit or a Class B Unit. The term “Unit” does not include the GP Interest.

     “Unit Purchase Agreement” means the Unit Purchase Agreement, dated as of December 17, 2010,
between the Partnership and the Unit Purchaser.

     “Unit Purchaser” means FR XI Offshore AIV, L.P., an exempted limited partnership formed under
the laws of Cayman Islands or its designee in accordance with the Unit Purchase Agreement.

Exhibit B to Unit Purchase Agreement

 

 

     2. Article IV is hereby amended to add a new Section 4.8 creating a new series of Units as
follows:

          Section 4.8 Establishment of Class B Units

     (a) The General Partner hereby designates and creates a series of Limited Partner Units
to be designated as “Class B Units” and consisting of a total of [__________] Class B Units,
having the terms and conditions set forth herein.

     (b) The holders of the Class B Units shall have rights upon dissolution and liquidation
of the Partnership, including the right to share in any liquidating distributions pursuant
to Section 14.3, in accordance with Article XIV of the Partnership Agreement.

     (c) Conversion of Class B Units

     (i) Immediately before the close of business on the Conversion Date, the Class
B Units shall automatically convert into LP Units on a one-for-one basis.

     (ii) Upon conversion, the rights of a holder of converted Class B Units as
holder of Class B Units shall cease with respect to such converted Class B Units,
including any rights under this Agreement with respect to holders of Class B Units,
and such Person shall continue to be a Limited Partner and have the rights of a
holder of LP Units under this Agreement. All Class B Units shall, upon the
Conversion Date, be deemed to be transferred to, and cancelled by, the Partnership
in exchange for the LP Units into which the Class B Units converted.

     (iii) The Partnership shall pay any documentary, stamp or similar issue or
transfer taxes or duties relating to the issuance or delivery of LP Units upon
conversion of the Class B Units. However, the holder shall pay any tax or duty
which may be payable relating to any transfer involving the issuance or delivery of
LP Units in a name other than the holder’s name. The Transfer Agent may refuse to
deliver the Certificate representing LP Units being issued in a name other than the
holder’s name until the Transfer Agent receives a sum sufficient to pay any tax or
duties which will be due because the shares are to be issued in a name other than
the holder’s name. Nothing herein shall preclude any tax withholding required by
law or regulation.

     (iv) (A) The Partnership shall keep free from preemptive rights a sufficient
number of LP Units to permit the conversion of all outstanding Class B Units into LP
Units to the extent provided in, and in accordance with, this Section 4.8(c).

          (B) All LP Units delivered upon conversion of the Class B Units shall be newly
issued, shall be duly authorized and validly issued, and shall be free from
preemptive rights and free of any lien or adverse claim.

Exhibit B to Unit Purchase Agreement

 

 

          (C) The Partnership shall comply with all applicable securities laws regulating
the offer and delivery of any LP Units upon conversion of Class B Units and, if the
LP Units are then listed or quoted on the New York Stock Exchange, or any other
National Securities Exchange or other market, shall list or cause to have quoted and
keep listed and quoted the LP Units issuable upon conversion of the Class B Units to
the extent permitted or required by the rules of such exchange or market.

          (D) Notwithstanding anything herein to the contrary, nothing herein shall give
to any holder of Class B Units any rights as a creditor in respect of its right to
conversion.

     (d) Distributions.

     (i) Each Class B Unit shall have the right to share in distributions pursuant
to Section 5.2(a) on a pro rata basis with the other Units. All or any portion of
each distribution payable in respect of the Class B Units (the “Class B Unit
Distribution”) may, at the election of the Partnership, be paid in Class B Units
(any amount of such Class B Unit Distribution so paid in PIK Units, the “PIK
Distribution Amount”). The number of PIK Units to be issued in connection with a
PIK Distribution Amount shall be the quotient of (A) the PIK Distribution Amount
divided by (B) the volume-weighted average price of the Partnership’s LP Units for
the ten (10) trading days immediately preceding the date the Class B Unit
Distribution is declared less a discount of 15%; provided that instead of issuing
any fractional PIK Units, the Partnership shall round the number of PIK Units
issued down to the next lower whole PIK Unit and pay cash in lieu of such
fractional units, or at the Partnership’s option, the Partnership may round the
number of PIK Units issued up to the next higher whole PIK Unit.

     (ii) Notwithstanding anything in this Section 4.8(d) to the contrary, with
respect to Class B Units that are converted into LP Units, the holder thereof
shall not be entitled to a Class B Unit Distribution and an LP Unit distribution
with respect to the same period, but shall be entitled only to the distribution to
be paid based upon the class of Units held as of the close of business on the
applicable Record Date.

     (iii) When any PIK Units are payable to a holder of Class B Units pursuant to
this Section 4.8, the Partnership shall issue the PIK Units to such holder no
later than the date the corresponding distributions are made pursuant to Section
5.2(a) (the date of issuance of such PIK Units, the “PIK Payment Date”). On the
PIK Payment Date, the Partnership shall issue to such holder of Class B Units a
certificate or certificates for the number of PIK Units to which such holder of
Class B Units shall be entitled.

     (iv) For purposes of maintaining Capital Accounts, if the Partnership
distributes one or more PIK Units to a holder of Class B Units, (i) the

Exhibit B to Unit Purchase Agreement

 

 

Partnership shall be treated as distributing cash to such holder of Class B
Units equal to the PIK Distribution Amount, and (ii) the holder of Class B Units
shall be deemed to have recontributed to the Partnership in exchange for such
newly issued PIK Units an amount of cash equal to the PIK Distribution Amount less
the amount of any cash distributed by the Partnership in lieu of fractional PIK
Units.

     (e) The Class B Units will have such voting rights pursuant to the Agreement as such
Class B Units would have if they were LP Units that were then outstanding and shall vote
together with the LP Units as a single class, except that the Class B Units shall be
entitled to vote as a separate class on any matter on which Unitholders are entitled to vote
that adversely affects the rights or preferences of the Class B Units in relation to other
classes of Partnership Interests in any material respect or as required by law. The
approval of a majority of the Class B Units shall be required to approve any matter for
which the holders of the Class B Units are entitled to vote as a separate class.

     (f) The Class B Units will be evidenced by Certificates in such form as the General
Partner may approve (containing appropriate legends concerning transfer restrictions,
securities laws and any other requirements).

     3. Article IV is hereby amended to add a new Section 4.9 implementing certain transfer
restrictions on Units:

     Section 4.9 Transfers of Privately Placed Units. The transfers of a Privately Placed Unit
shall be subject to Section 5.1(c)(iii) and 5.1(d)(iii).

     4. Section 5.1(a) is hereby amended and restated as follows:

     (a) The Partnership shall maintain for each Partner a separate Capital Account with respect to
its Partnership Interests in accordance with the regulations issued pursuant to Section 704 of the
Code. The Capital Account of any Partner shall be increased by (i) the Net Agreed Value of all
Capital Contributions made by such Partner in exchange for its Partnership Interest and (ii) all
items of income and gain computed in accordance with Section 5.1(b) and allocated to such Partner
pursuant to Section 5.1(c) and reduced by (iii) the Net Agreed Value of all distributions of cash
or property (other than PIK Units) made to such Partner with respect to its Partnership Interest
and (iv) all items of deduction and loss computed in accordance with Section 5.1(b) and allocated
to such Partner pursuant to Section 5.1(c). The initial Capital Account balance in respect of each
Class B Unit, PIK Unit and PIPE Unit shall be determined by reference to the fair market value of
an LP Unit on the date such Unit is issued. Immediately following the initial creation of a
Capital Account balance in respect of each PIK Unit and each Unit issued pursuant to the PIPE Unit
Purchase Agreements or the Registration Rights Agreements, each Unitholder acquiring such a Unit at
original issuance shall be deemed to have received a cash distribution or to have made a cash
contribution, as the case may be, in respect of such Unit equal to the amount by which (A) the fair
market value of an LP Unit on the date of issuance exceeds or is less than, as the case may be, (B)
the Issue Price for such Unit.

Exhibit B to Unit Purchase Agreement

 

 

     5. Section 5.1(c)(iii) is hereby amended and restated as follows:

(iii) (A) To preserve uniformity of Units, the General Partner may make special allocations
of income or deduction pursuant to Section 6.1(c) that do not have a material adverse effect
on the Limited Partners and are consistent with the principles of Section 704 of the Code.

     (B) At the election of the General Partner with respect to any taxable period ending
upon, or after, the conversion of the Class B Units into LP Units, all or a portion of the
remaining items of Partnership gross income or gain for such taxable period shall be
allocated to each Partner holding converted Class B Units in the proportion of the number of
converted Class B Units held by such Partner to the total number of Converted Class B Units
then outstanding, until each such Partner has been allocated an amount of gross income or
gain that increases the Capital Account maintained with respect to such converted Class B
Units to an amount that after taking into account the other allocations of income, gain,
loss and deduction to be made with respect to such taxable period will equal the product of
(I) the number of converted Class B Units held by such Partner and (II) the Per Unit Capital
Amount for an LP Unit evidenced by an LP Unit Certificate that is not a Privately Placed
Unit. The purpose of this allocation is to establish uniformity between the Capital Accounts
underlying converted Class B Units and the Capital Accounts underlying LP Units that are not
Privately Placed Units prior to the certification of such converted Class B Units as LP
Units.

     (C) With respect to an event triggering an adjustment to the Carrying Value of
Partnership property pursuant to Section 5.1(e) during any taxable period of the Partnership
ending upon, or after, the issuance of Privately Placed Units, any Unrealized Gains and
Unrealized Losses shall be allocated among the Partners in a manner that to the nearest
extent possible results in the Capital Accounts maintained with respect to the Privately
Placed Units on a per unit basis equaling the Per Unit Capital Amount for an LP Unit that is
not a Privately Placed Unit.

     (D) With respect to any taxable period of the Partnership ending upon, or after, the
transfer of a PIPE Unit or PIK Unit or converted Class B Unit to a Person that is not an
Affiliate of the holder, Partnership items of income or gain for such taxable period shall
be allocated 100% to the Partner transferring such PIPE Unit or PIK Unit or converted Class
B Unit in a manner that to the nearest extent possible results in the Capital Account
maintained with respect to such PIPE Unit or PIK Unit or converted Class B Unit on a per
unit basis equaling the Per Unit Capital Amount for an LP Unit that is not a Privately
Placed Unit.

     6. Section 5.1(d) is amended to add a new Section 5.1(d)(iii) as follows:

     (iii) Immediately prior to the transfer of a Privately Placed Unit by a holder thereof
(other than a transfer to an Affiliate unless the General Partner elects to have this
subparagraph 5.1(d)(iii) apply), the aggregate Capital Account maintained for such Person
with respect to its Privately Placed Units will (A) first, be allocated to the Privately
Placed Units to be transferred in an amount equal to the product of (x) the

Exhibit B to Unit Purchase Agreement

 

 

number of such Privately Placed Units to be transferred and (y) the Per Unit Capital
Amount for an LP Unit that is not a Privately Placed Unit, and (B) second, any remaining
positive balance in such Capital Account will be retained by the transferor, regardless of
whether it has retained any Privately Placed Units and if the remaining balance would be
negative, items of Partnership income and gain shall be specially allocated to such
transferor Partner in an amount and manner sufficient to eliminate the deficit in its
Capital Account as quickly as possible. Following any such allocation, the transferor’s
Capital Account, if any, maintained with respect to the retained Privately Placed Units, if
any, will have a balance equal to the amount allocated under clause (B) hereinabove, and the
transferee’s Capital Account established with respect to the transferred Privately Placed
Units will have a balance equal to the amount allocated under clause (A) hereinabove.

     7. Section 5.1(e) is hereby amended and restated as follows:

     (e) If any additional Units (or other Partnership Interests) are to be issued pursuant to
Section 4.3 for cash or Contributed Property, as the consideration for the provision of services,
or if any Partnership property is to be distributed (other than a distribution of cash that is not
a redemption or retirement of a Partnership Interest), the Capital Accounts of the Partners (and
the Carrying Values of all Partnership properties) shall, immediately prior to such issuance or
distribution, be adjusted (consistent with the provisions hereof and of Section 704(b) of the Code)
upward or downward to reflect any Unrealized Gain or Unrealized Loss attributable to all
Partnership properties (as if such Unrealized Gain or Unrealized Loss had been recognized upon an
actual sale of such properties immediately prior to such issuance or on the date of such
conversion). In determining such Unrealized Gain or Unrealized Loss, the fair market value of
Partnership properties, as of any date of determination, shall be determined by the General Partner
using such method of valuation as it may adopt. In making its determination of the fair market
values of individual properties, the General Partner may determine that it is appropriate to first
determine an aggregate value for the Partnership, based on the current trading price of the LP
Units or any Issue Price (without reduction for any underwriting discount or similar fees) of
concurrent Units and taking fully into account the fair market value of the Partnership Interests
of all Partners at such time, and then allocate such aggregate value among the individual
properties of the Partnership (in such manner as it determines appropriate).

     8. Article V is hereby amended to add a new Section 5.2(c) as follows:

     (c) For the avoidance of doubt, upon any pro rata distribution of Partnership Securities to
all Record Holders of LP Units or any subdivision or combination (or reclassified into a greater or
smaller number) of LP Units, the Partnership will proportionately adjust the number of Class B
Units as follows: (a) if the Partnership issues Partnership Securities as a distribution on its LP
Units or subdivides the LP Units (or reclassifies them into a greater number of LP Units) then the
Class B Units shall be subdivided into a number of Class B Units equal to the result of multiplying
the number of Class B Units by a fraction, (A) the numerator of which shall be the sum of the
number of LP Units outstanding immediately prior to such distribution or subdivision plus the total
number of Partnership Securities constituting such distribution or newly created by such
subdivision; and (B) the denominator of which shall be the number of LP Units outstanding
immediately prior to such distribution or subdivision; and (b) if the Partnership

Exhibit B to Unit Purchase Agreement

 

 

combines the LP Units (or reclassifies them into a smaller number of LP Units) then the Class
B Units shall be combined into a number of Class B Units equal to the result of multiplying the
number of Class B Units by a fraction, (A) the numerator of which shall be the sum of the number of
LP Units outstanding immediately following such combination; and (B) the denominator of which shall
be the number of LP Units outstanding immediately prior to such combination.

     B. Agreement in Effect. Except as hereby amended, the Partnership Agreement shall
remain in full force and effect.

     C. Applicable Law. This Amendment shall be construed in accordance with and governed
by the laws of the State of Delaware, without regard to principles of conflicts of laws.

     D. SEVERABILITY. EACH PROVISION OF THIS AMENDMENT SHALL BE
CONSIDERED SEVERABLE AND IF FOR ANY REASON ANY PROVISION OR
PROVISIONS HEREIN ARE DETERMINED TO BE INVALID, UNENFORCEABLE
OR ILLEGAL UNDER ANY EXISTING OR FUTURE LAW, SUCH INVALIDITY,
UNENFORCEABILITY OR ILLEGALITY SHALL NOT IMPAIR THE OPERATION
OF OR AFFECT THOSE PORTIONS OF THIS AMENDMENT THAT ARE VALID, ENFORCEABLE AND LEGAL.

[Signatures on following page]

Exhibit B to Unit Purchase Agreement

 

 

     IN WITNESS WHEREOF, this Amendment has been executed as of the date first written above.

	 	 	 	 	 
	 	GENERAL PARTNER:

Buckeye GP LLC

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Exhibit B to Unit Purchase Agreement

 

 

Exhibit C — Form of Opinion of Vinson & Elkins L.L.P.

Capitalized terms used but not defined herein have the meanings assigned to such terms in the Unit
Purchase Agreement (the “Purchase Agreement”). Buckeye shall furnish to the Purchaser at
the Closing an opinion of Vinson & Elkins L.L.P., counsel for Buckeye, addressed to the Purchaser
and dated the Closing Date in form satisfactory to the Purchaser, stating that:

          (i) Each of Buckeye and the General Partner is a validly existing limited partnership or
limited liability company, respectively, in good standing under the laws of the State of Delaware.
Buckeye has all requisite limited partnership power and authority under the laws of the State of
Delaware necessary (a) to own its properties and carry on its business as its business is now being
conducted as described in the Buckeye SEC Documents, (b) to enter into and perform its obligations
under the Operative Documents and (c) to offer, issue and sell the Consideration Units as provided
in the Purchase Agreement.

          (ii) To such counsel’s knowledge, except as described in the Buckeye SEC Documents filed prior
to the date of the Purchase Agreement and pursuant to the Unit Purchase Agreements, no options,
warrants or other rights to purchase, agreements or other obligations to issue, or rights to
convert any obligations into or exchange any securities for, partnership securities or ownership
interests in Buckeye are outstanding.

          (iii) The Consideration Units to be issued and sold to the Purchaser by Buckeye pursuant to
the Purchase Agreement and the limited partner interests represented thereby, have been duly
authorized in accordance with the Partnership Agreement and, when issued and delivered to the
Purchaser against payment therefor in accordance with the terms of the Purchase Agreement, will be
validly issued in accordance with the terms of the Partnership Agreement, fully paid (to the extent
required under the Partnership Agreement) and nonassessable (except as such nonassessability may be
affected by matters described in Sections 17-303, 17-607 and 17-804 of the Delaware LP Act).

          (iv) The LP Units issuable upon conversion of those Consideration Units that are Class B
Units, the issuance of any Class B Units as a distribution in kind in lieu of cash distributions on
the Class B Units and the issuance of any LP Units in lieu of cash as liquidated damages under the
Registration Rights Agreement and, in each case, the limited partner interests represented thereby,
upon issuance in accordance with the terms of Class B Units as reflected in the Class B Amendment,
have been duly authorized in accordance with the Partnership Agreement and will be validly issued,
fully paid (to the extent required by applicable law and the Partnership Agreement) and
nonassessable (except as such nonassessability may be affected by matters described in Sections
17-303, 17-607 and 17-804 of the Delaware LP Act).

          (v) Except for the approvals required by the Commission in connection with Buckeye’s
obligations under the Registration Rights Agreement, no authorization, consent, approval, waiver,
license, qualification, filing, declaration, qualification or registration with, any Governmental
Authority is required for the issuance and sale by Buckeye of the Consideration Units, the
execution, delivery and performance by Buckeye of the Operative Documents or the consummation of
the transactions contemplated by the Operative Documents, except those that

Exhibit C to Unit Purchase Agreement

 

 

have been obtained or as may be required under state securities or “Blue Sky” laws, as to
which we do not express any opinion.

          (vi) Buckeye is not, and after giving effect to the Acquisition will not be, an
“investment company” within the meaning of the Investment Company Act of 1940, as amended.

          (vii) Assuming the accuracy of the representations and warranties of the Purchaser and Buckeye
contained in the Purchase Agreement, the offer, issuance and sale of the Consideration Units by
Buckeye to the Purchaser solely in the manner contemplated by the Purchase Agreement are exempt
from the registration requirements of the Securities Act; provided that such counsel will express
no opinion as to any subsequent sale.

          (viii) The holders of outstanding LP Units are not entitled to statutory, preemptive or, to
such counsel’s knowledge, other similar contractual rights to subscribe for the Consideration
Units.

          (ix) None of the offering, issuance and sale by Buckeye of the Consideration Units, the
execution, delivery and performance of the Operative Documents by Buckeye or the consummation of
the transactions contemplated hereby or thereby (including issuance of LP Units upon conversion of
those Consideration Units that are Class B Units, the issuance of any Class B Units as a
distribution in kind in lieu of cash distributions on the Class B Units and the issuance of any LP
Units in lieu of cash as liquidated damages under the Registration Rights Agreement) conflicts or
will conflict with, or results or will result in a breach or violation of (A) the Partnership
Agreement, (B) any agreement filed or incorporated by reference as an exhibit to Buckeye’s Annual
Report on Form 10-K for the period ended December 31, 2009 or Buckeye’s Quarterly Reports on Forms
10-Q for the quarters ended March 31, 2010, June 30, 2010 and September 30, 2010 or (C) the
Delaware LP Act, Delaware LLC Act or U.S. federal law, which in the case of clauses (B) or (C)
would be reasonably expected to have a Material Adverse Effect; provided, however, that no opinion
is expressed pursuant to this paragraph (ix) with respect to federal or state securities or
anti-fraud statutes, rules or regulations.

Each of Operative Documents has been duly authorized and validly executed and delivered by Buckeye
and the General Partner, as the case may be, and constitutes a valid and binding obligation of
Buckeye and the General Partner, as the case may be, enforceable against Buckeye and the General
Partner, as the case may be, in accordance with its terms, except as the enforceability thereof may
be limited by (A) applicable bankruptcy, insolvency, fraudulent transfer, reorganization,
moratorium or similar laws from time to time in effect affecting creditors’ rights and remedies
generally and by general principles of equity (regardless of whether such principles are considered
in a proceeding in equity or at law) and (B) public policy, applicable law relating to fiduciary
duties and indemnification and an implied covenant of good faith and fair dealing.

Exhibit C to Unit Purchase Agreement

 

 

Exhibit D — Form of Transfer Application

     No transfer of the Class B Units evidenced hereby will be registered on the books of the
Partnership, unless the Partnership provides authentication instructions to the Transfer Agent and
Registrar and an Application for Transfer of Units has been executed by a transferee on the form
set forth below. A transferor of the Class B Units shall have no duty to the transferee with
respect to execution of the transfer application in order for such transferee to obtain
registration of the transfer of the Class B Units.

APPLICATION FOR TRANSFER OF CLASS B UNITS

     The undersigned (“Assignee”) hereby applies for transfer to the name of the Assignee of the
Class B Units evidenced hereby.

     The Assignee (a) requests admission as an additional Limited Partner (evidenced by a credit to
our account at The Depository Trust Company in the name of its nominee, Cede & Co.) and agrees to
comply with and be bound by, and hereby executes, the Amended and Restated Agreement of Limited
Partnership of Buckeye Partners, L.P. (the “Partnership”), as amended, supplemented or restated to
the date hereof (the “Partnership Agreement”), (b) represents and warrants that the Assignee has
all right, power and authority and, if an individual, the capacity necessary to enter into the
Partnership Agreement, (c) appoints the General Partner of the Partnership and, if a Liquidator
shall be appointed, the Liquidator of the Partnership as the Assignee’s attorney-in-fact, to
execute, swear to, acknowledge and file any document, including, without limitation, the
Partnership Agreement and any amendment thereto and the Amended and Restated Certificate of Limited
Partnership of the Partnership and any amendment thereto, necessary or appropriate for the
Assignee’s admission as an additional Limited Partner and as a party to the Partnership Agreement,
(d) gives the power of attorney provided for in the Partnership Agreement, and (e) makes the
waivers and gives the consents and approvals contained in the Partnership Agreement. Capitalized
terms not defined herein have the meanings assigned to such terms in the Partnership Agreement.

Date: ___________ __, 2011

	 	 	 	 	 	 	 	 	 

	  

Tax
Identification Number of assignee

	 	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	$

	 	 	 	By:
	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	Purchase Price including commissions, if any

	 	 	 	 	 	Name:	 	 
	 

	 	 	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	Name and address of assignee	 	 

Exhibit D to Unit Purchase Agreement

 

 

	 	 	 	 	 	 	 	 	 	 	 
	Type of Entity (check one):	 	 	 	 	 	 	 	 
	 
	 

	 	o   Individual
	 	o   Partnership
	 	 
	 	o   Corporation
	 	 
	 
	 

	 	o   Trust
	 	o   Other (specify)
	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 

	 	 	 	 	 

	     Nationality (check one):	 	 
	 
	 

	 	o   U.S. Citizen, Resident or Domestic Entity	 	 
	 
	 

	 	o   Foreign Corporation
	 	o   Non resident Alien

     If the U. S. Citizen, Resident or Domestic Entity box is checked, the following certification
must be completed.

     Under Section 1445(e) of the Internal Revenue Code of 1986, as amended (the “Code”), the
Partnership must withhold tax with respect to certain transfers of property if a holder of an
interest in the Partnership is a foreign person. To inform the Partnership that no withholding is
required with respect to the undersigned interestholder’s interest in it, the undersigned hereby
certifies the following (or, if applicable, certifies the following on behalf of the
interestholder).

     Complete Either A or B:

	 	A.	 	Individual Interestholder

	 	1.	 	I am not a non-resident alien for purposes of U.S. income taxation.
	 
	 	 	 	My U.S. taxpayer identification number (Social Security Number) is      N/A     .
	 
	 	 	 	My home address is      N/A     .

	 	B.	 	Partnership, Corporation or Other Interestholder

	 	1.	 	___________. is not a foreign corporation, foreign partnership,
foreign trust or foreign estate (as those terms are defined in the Code and
Treasury Regulations).

	 	2.	 	The interestholder’s U.S. employer identification number is _______.

	 	3.	 	The interestholder’s office address and place of incorporation
(if applicable) is ____________ (incorporated in ____________.

     The interestholder agrees to notify the Partnership within sixty (60) days of the date the
interestholder becomes a foreign person.

     The interestholder understands that this certificate may be disclosed to the Internal Revenue
Service by the Partnership and that any false statement contained herein could be punishable by
fine, imprisonment or both.

[The remainder of this page is intentionally left blank]

Exhibit D to Unit Purchase Agreement

 

 

     Under penalties of perjury, I declare that I have examined this certification and to the best
of my knowledge and belief it is true, correct and complete and, if applicable, I further declare
that I have authority to sign this document on behalf of:

Date: ____________ __, 2011

	 	 	 	 	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

     Note: If the Assignee is a broker, dealer, bank, trust company, clearing corporation, other
nominee holder or an agent of any of the foregoing, and is holding for the account of any other
person, this application should be completed by an officer thereof or, in the case of a broker or
dealer, by a registered representative who is a member of a registered national securities exchange
or a member of the National Association of Securities Dealers, Inc., or, in the case of any other
nominee holder, a person performing a similar function. If the Assignee is a broker, dealer, bank,
trust company, clearing corporation, other nominee owner or an agent of any of the foregoing, the
above certification as to any person for whom the signee will hold the Units shall be made to the
best of the Assignee’s knowledge.

[The remainder of this page is intentionally left blank.]

Exhibit D to Unit Purchase Agreement

 

 

	 	 	 	 	 
	Acknowledged by:

BUCKEYE PARTNERS, L.P.

By: Buckeye GP LLC,

       its General Partner

 	 	 
	By:  	 	 	 
	 	Name:  	 	 	 
	 	Title:  	 	 	 
	 

Exhibit D to Unit Purchase Agreement

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00182-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00182-of-00352.parquet"}]]