Document:

exv10w1

Exhibit 10.1

SEPARATION AGREEMENT AND GENERAL RELEASE

     This Separation Agreement and General Release
(“Agreement”) is entered into as of
the 11 day of June, 2010, by and among MICHAEL G. STEWART (the “Executive”) and MEDICAL PROPERTIES
TRUST, INC., a Maryland real estate investment trust (the “REIT”), and MPT OPERATING PARTNERSHIP,
L.P., a Delaware limited partnership (the “Operating Partnership”) (the REIT and the Operating
Partnership being herein referred to, together, as the “Company”)(collectively, the “Parties”).

RECITALS:

     WHEREAS, the Executive has been employed by the Company as an Executive Vice-President,
General Counsel and Secretary pursuant to that certain Employment Agreement dated April 28, 2005,
as amended by that First Amendment to Employment Agreement dated September 29, 2006; that Second
Amendment to Employment Agreement dated January 1, 2008; and that Third Amendment to Employment
Agreement dated January 1, 2009 (together, the “Employment Agreement”); and

     WHEREAS, the Company and the Executive have agreed to terminate the Executive’s employment by
the Company and its affiliates effective June 15, 2010 (the “Effective Date”).

     NOW THEREFORE, in consideration of the promises and mutual covenants contained herein, and for
other good and valuable consideration, the receipt and sufficiency of which are expressly
acknowledged, the Parties agree and promise as follows:

1. TERMINATION AND RESIGNATION. As of the Effective Date, the employment of the Executive by the
Company is hereby terminated. Also effective as of the Effective Date, the Executive hereby
resigns from the offices of Executive Vice-President, General Counsel and Secretary of the Company
and from any other office or position of the Company or any affiliate of the Company that he may
hold. On or before the Effective Date, the Executive shall also execute all necessary
documentation to effect his resignation as co-trustee of the Company’s 401(k) plan.

2. SEVERANCE PAYMENT. Subject to the Executive abiding by the terms of this Agreement, and in
consideration of the Executive’s release of claims and the Executive’s other covenants and
agreements contained herein, the Company shall pay to the Executive an amount equal to One Million
Nine Hundred Nine Thousand Six Hundred Seven and No/100 Dollars ($1,909,607.00) (the “Severance
Payment”) payable in a lump sum on December 16, 2010. The Company shall be entitled to deduct from
the Severance Payment any sums required by federal, state or local tax law to be withheld with
respect to the Severance Payment.

3. RESTRICTED STOCK; NO OTHER BENEFITS. Subject to the Executive abiding by the terms of this
Agreement, and in consideration of the Executive’s release of claims and the

 

 

Executive’s other covenants and agreements contained herein, the Parties acknowledge and agree
that: (a) the Executive has been awarded certain restricted common stock of the Company that will
not have yet vested as of the Effective Date (the “Restricted Stock”); (b) the Restricted Stock
shall be governed by the terms and conditions of the Restricted Stock Agreements identified on
Schedule I attached hereto; (c) all unvested shares of Restricted Stock shall vest in
accordance with the vesting schedules set forth on Schedule II attached hereto; and (d) the
vesting and payment of dividends with respect to such Restricted Stock are subject to federal,
state and local tax withholding requirements. In order to meet the Company’s withholding
obligations with respect to the Restricted Stock under federal, state and local tax law, the
Company shall be entitled to elect, in its sole discretion, either to (i) require payment or
reimbursement in cash by the Executive for the sums required to be so withheld, (ii) deduct from
any cash amounts payable to Executive for the sums required to be withheld; or (iii) with respect
to the vesting of Restricted Stock, permit the Executive to elect, by providing the Company with
notice prior to the vesting date, to have the Company withhold shares of common stock otherwise
issuable upon the vesting of Restricted Stock having a Fair Market Value (as such term is defined
in the Company’s Second Amended and Restated 2004 Equity Incentive Plan) equal to the sums required
to be withheld; provided, however, that any shares of common stock withheld shall be no greater
than an amount that does not exceed the Executive’s minimum applicable withholding tax rate for
federal, state and local tax liabilities. Except as set forth in this Agreement, and with respect
to any benefits or rights under any of the Company’s “employee benefit plans” within the meaning of
Section 3(3) of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), the
Executive acknowledges and agrees that he is not entitled to receive any other compensation or
benefits of any sort from the Company or any of its plans, direct or indirect subsidiaries, or
other entities controlled by the Company, including, without limitation, salary, vacation, bonuses,
annual incentives, stock options, short-term or long-term disability benefits.

4. INDEMNIFICATION. The Executive shall be indemnified to the fullest extent required or permitted
by the Maryland General Corporation Law (“MGCL”) from and against any claim or liability to which
the Executive may be subject by reason of his former status as an officer of the Company, as
provided in the Medical Properties Trust, Inc. Second Amended and Restated Bylaws and the Medical
Properties Trust, Inc. Second Articles of Amendment and Restatement (the “Charter”). In addition,
the Executive’s personal liability for monetary damages shall be limited to the fullest extent
permitted under the MGCL, as provided in the Charter.

5. GENERAL RELEASE. The Executive intends to release and discharge the Company from any and all
claims he has or may have against the Company, and that such releases and discharges extend to the
Company and to the Released Parties, as defined below. Therefore, the Executive agrees:

     (a) For purposes of this Agreement, the “Released Parties” are the Company and all related and
affiliated entities of the Company (including corporations, limited liability companies,
partnerships, and joint ventures), as well as each of their respective predecessors and successors,
and past, present and future employees, officers, directors, stockholders, owners, partners,
members, representatives, assigns, attorneys, agents, insurers, employee benefit programs and plans
(and the trustees, administrators, fiduciaries, and insurers of such programs

2

 

and/or plans), and any other persons acting by, through, under, or in concert with any of the
foregoing identified Released Parties.

     (b) Except as otherwise provided in this Agreement and except for any claim relating to the
breach by the Company of any of the terms of this Agreement, including without limitation, the
provisions of Sections 6(c) and 6(e), the Executive hereby voluntarily releases all claims,
promises, causes of action, or similar rights of any type, whether known or unknown, unforeseen,
unanticipated, unsuspected or latent he has or may have against the Released Parties (the
“Claims”).

     (c) The foregoing release specifically extends to, without limitation, claims or causes of
action for wrongful termination, failure by the Company to provide notice of termination pursuant
to the Employment Agreement, impairment of ability to compete in the open labor market, breach of
an express or implied contract, breach of any collective bargaining agreement, breach of the
covenant of good faith and fair dealing, breach of fiduciary duty, fraud, misrepresentation,
defamation, slander, infliction of emotional distress, disability and loss of future earnings. The
Executive understands that the Claims he is releasing might arise under different laws and
statutes, such as, but not limited to, the following: the Securities Act of 1933, the Securities
Exchange Act of 1934, any federal or state corporation or securities laws, the National Labor
Relations Act, as amended, the Labor-Management Relations Act, as amended, the Americans with
Disabilities Act (prohibiting discrimination in employment on account of disability), Title VII of
the Civil Rights Act of 1964 (prohibiting discrimination in employment on account of race, sex,
color, religion, or national origin), 42 U.S.C. § 1981 (prohibiting certain types of discrimination
in employment), the Sarbanes-Oxley Act of 2002 (which prohibits retaliation against employees who
participate in any investigation or proceeding relative to an alleged violation of mail, wire, bank
or securities fraud), the Workers’ Adjustment & Retraining Notification Act (which requires that
advance notice be given of certain work force reductions), the Fair Labor Standards Act, as amended
(“FLSA”), the Employee Retirement Income Security Act of 1974 (which, among other things, protects
employees benefits), the Age Discrimination in Employment Act (“ADEA”) and the Alabama Age
Discrimination in Employment Act (“AADEA”) (prohibiting discrimination in employment on account of
age), and Section 25-5-11.1 of the Alabama Code.

     (d) The Executive understands that the Executive is releasing claims of which the Executive
may not be aware. It is further understood and agreed that the Executive is waiving all his rights
under any statute or common law principle which otherwise limit application of a general release to
claims which the Executive does not know or suspect to exist in his favor at the time of signing
the release which, if known by him, would have materially affected his settlement with the
applicable Released Party.

     (e) Neither the Executive, nor his heirs, successors, agents, representatives or attorneys has
filed or caused to be filed any lawsuit, complaint, or charge with respect to any Claim that the
Executive is releasing in this Agreement. Except as prohibited by law or public policy, the
Executive promises never (i) to file or prosecute a lawsuit or complaint based on the Claims
released by him in this Agreement, or (ii) to seek any damages, remedies, or other relief for him
by filing or prosecuting a claim or charge with any administrative, judicial, or other governmental
body, or in any arbitration proceeding with respect to any claim released by the

3

 

Executive in this Agreement. The Executive promises to request any governmental body or
arbitration tribunal assuming jurisdiction of any such lawsuit, complaint, or charge to withdraw
from the matter or dismiss the matter against any and all Released Parties with prejudice against
it. The Executive has not assigned or transferred any claim that he is releasing, nor has the
Executive purported to do so. This provision shall not apply to any non-waiveable charges or
claims brought before any governmental agency. Particularly, this provision and the release
contained in this Agreement do not apply to charges filed with the Equal Employment Opportunity
Commission, to the extent, if any, that this provision and the release are prohibited by applicable
law. With respect to any such non-waiveable claims or charges of discrimination, however the
Executive agrees to waive his right (if any) to any monetary or other recovery.

     (f) The Executive acknowledges: (a) that the Executive has hereby been advised in writing to
consult with an attorney before signing this Agreement and agreeing to the foregoing release, and
(b) that the Executive has had at least twenty-one (21) days after receipt of this Agreement
containing the foregoing release to consider whether to accept or reject the same. The Executive
understands that the Executive may sign this Agreement prior to the end of such twenty-one (21) day
period, but is not required to do so. In addition, under ADEA, the Executive has seven (7) days
after the Executive signs this Agreement to revoke the release provisions contained herein by
providing written notice to the Company, in which case the Severance Payment shall be forfeited.
Such revocation must be in writing and delivered either by hand or mailed and postmarked within the
seven (7) day period. If sent by mail, it is requested that it be sent by certified mail, return
receipt.

     (g) The Executive agrees and acknowledges that he has received or will receive from the
Company valuable consideration, including the Severance Payment, for the promises and agreements
contained in this Agreement, specifically the release contained in this Section 5 and the covenants
contained in Sections 6, 7 and 8 of this Agreement. The Executive further acknowledges and agrees
that the Executive has been paid any and all sums to which the Executive is or would be entitled as
a result of the Executive’s employment with the Company or the termination of that employment,
including all amounts of salary, commissions, bonuses, and benefits, and that the Executive is not
entitled to any additional accrued vacation pay, sick pay, bonus or commission pay or other
benefits subsequent to the Effective Date, other than the Severance Payment and the receipt of
certain Restricted Stock as described in Section 3 of this Agreement. The Executive acknowledges
that he has received all of the leave from work for family and/or personal medical reasons and/or
other benefits to which he believes he is entitled under the Company’s policy and the Family and
Medical Leave Act of 1993 (“FMLA”), as amended. The Executive has no pending request for FMLA
leave with the Company; nor has the Company mistreated the Executive in any way on account of any
illness or injury to the Executive or any member of the Executive’s family. The Executive further
acknowledges that he has received all of the monetary compensation, including hourly wage, salary
and/or overtime compensation, to which he believes he is entitled under the FLSA.

6. CONFIDENTIALITY; NON-DISPARAGEMENT.

     (a) The Executive recognizes and acknowledges that certain assets of the Company constitute
Confidential Information. The term “Confidential Information” as used in this Agreement shall mean
all information which is known only to the Executive or the Company,

4

 

other employees of the Company, or others in a confidential relationship with the Company, and
relating to the Company’s business including, without limitation, information regarding clients,
customers, pricing policies, methods of operation, proprietary the Company programs, sales
products, profits, costs, markets, key personnel, formulae, product applications, technical
processes, and trade secrets, as such information may exist from time to time, which the Executive
acquired or obtained by virtue of work performed for the Company, or which the Executive may
acquire or may have acquired knowledge of during the performance of said work. The Executive shall
not, for a period of three (3) years following the Effective Date, disclose all or any part of the
Confidential Information to any person, firm, corporation, association, or any other entity for any
reason or purpose whatsoever, directly or indirectly, except as may be required by law, unless and
until such Confidential Information becomes publicly available other than as a consequence of the
breach by the Executive of his confidentiality obligations hereunder by law or in any judicial or
administrative proceeding (in which case, the Executive shall promptly provide the Company with
written notice). Within three (3) days of the Effective Date, the Executive shall deliver to the
Company all documents and data pertaining to the Confidential Information and shall not retain any
documents or data of any kind or any reproductions (in whole or in part) or extracts of any items
relating to the Confidential Information.

     (b) In the event that the Executive receives a request or is required (by deposition,
interrogatory, request for documents, subpoena, civil investigative demand or similar process) to
disclose all or any part of the Confidential Information, the Executive agrees to (i) promptly
notify the Company in writing of the existence, terms and circumstances surrounding such request or
requirement, (ii) consult with the Company on the advisability of taking legally available steps to
resist or narrow such request or requirement, and (iii) assist the Company in seeking a protective
order or other appropriate remedy. In the event that such protective order or other remedy is not
obtained or that the Company waives compliance with the provisions hereof the Executive shall not
be liable for such disclosure unless disclosure to any such tribunal was caused by or resulted from
a previous disclosure by the Executive not permitted by this Agreement.

     (c) The Parties agree that their professional and personal reputations are important and
should not be impaired by either Party after this Agreement is executed. The Executive therefore
agrees to not make any oral or written communication to any person or entity which disparages, or
has the effect of damaging the reputation of, or otherwise working in any way to the detriment of,
the Company, its officers, shareholders, directors, or management. The Company agrees that it will
likewise not make any oral or written communication to any person or entity which disparages, or
has the effect of damaging the reputation of, or otherwise working in any way to the detriment of
the Executive’s professional or personal reputation. The Executive further agrees not to use the
Company or any of its affiliates, or any current or former officer, director or employee of the
Company or any of its affiliates, as the subject of any published or to be published written work,
including, without limitation, any published or to be published work of fiction.

     (d) Nothing in this Section 6 shall prevent either Party from giving truthful testimony or
information to law enforcement entities, administrative agencies or courts or in any other legal
proceedings as required by law, including, but not limited to, assisting in an investigation or
proceeding brought by any governmental or regulatory body or official related to alleged

5

 

violations of any law relating to fraud or any rule or regulation of the Securities and
Exchange Commission, or in asserting, enforcing, prosecuting or defending any rights or claims of
the Company or the Executive under this Agreement or otherwise.

     (e) The Parties agree that they will keep any information regarding any of the negotiations
preceding or following this Agreement confidential, and will not disclose any such information to
any third party, except (i) with the prior written consent of the other Party; (ii) pursuant to an
order or direction of court or agency or other governmental body having jurisdiction to issue such
order; (iii) to tax advisors or accounting professionals themselves bound by ethical restraints of
confidentiality; (iv) to counsel for the disclosing Party, or (v) as may be necessary for the
Parties to establish or enforce rights under this agreement.

7. NON-COMPETITION AND NONSOLICITATION.

     (a) For a period of eighteen (18) calendar months following the Effective Date (the
“Non-Compete Period”), the Executive shall not, directly or indirectly, either as a principal,
agent, employee, employer, stockholder, partner or in any other capacity whatsoever: (i) engage or
assist others engaged, in whole or in part, in any business which is engaged in a business or
enterprise involving the ownership, leasing or management of healthcare real estate (it being
understood that engaging in the activity of operating a healthcare operating company which owns its
own healthcare real estate is not so prohibited), or (ii) without the prior consent of the board of
directors of the REIT, solicit the employment of, or assist others in soliciting the employment of,
any individual employed by the Company (other than the Executive’s personal assistant or the
Executive’s secretary) at any time while the Executive was also so employed.

     (b) Nothing in this Section 7 shall prohibit the Executive from making any passive investment
in a public company, where he is the owner of five percent (5%) or less of the issued and
outstanding voting securities of any entity, provided such ownership does not result in his being
obligated or required to devote any managerial efforts.

     (c) The Executive agrees that the restraints imposed upon him pursuant to this Section 7 are
necessary for the reasonable and proper protection of the Company and its subsidiaries and
affiliates, and that each and every one of the restraints is reasonable in respect to subject
matter, length of time and geographic area. The Parties further agree that, in the event that any
provision of this Section 7 shall be determined by any court of competent jurisdiction to be
unenforceable by reason of its being extended over too great a time, too large a geographic area or
too great a range of activities, such provision shall be deemed to be modified to permit its
enforcement to the maximum extent permitted by law.

     (d) The Non-Compete Period shall automatically be tolled and suspended for the duration of any
time that the Executive is in violation of any provision of this Agreement, and the entire time of
such tolling and suspension shall be added to, and shall extend the duration of, the Non-Compete
Period.

8. COOPERATION BY EXECUTIVE. The Executive hereby agrees that for a period of twelve (12) months
following the Effective Date, he shall cooperate with the Company’s reasonable requests relating to
matters that pertain to the Executive’s employment by the

6

 

Company, including, without limitation, providing information or limited consultation as to such
matters, participating in legal proceedings, investigations or audits on behalf of the Company, or
otherwise making himself reasonably available to the Company for other related purposes. Any such
cooperation shall be performed at scheduled times taking into consideration the Executive’s other
commitments, and the Executive shall be compensated at a reasonable hourly or per diem rate to be
agreed upon by the Parties to the extent such cooperation is required on more than an occasional
and limited basis. The Executive shall not be required to perform such cooperation to the extent it
conflicts with any requirements of exclusivity of services for another employer or otherwise, nor
in any manner that in the good faith belief of the Executive would conflict with his rights under
or ability to enforce this Agreement.

9. NON-ADMISSION OF LIABILITY. Nothing in this Agreement shall be construed as an admission of
liability by any stockholder, partner or member of the Company or any of the Released Parties;
rather, the Executive, the Company and the Released Parties are resolving all matters arising out
of their employer-employee relationship and all other relationships between them, as to which the
Released Parties each deny any liability.

10. NECESSARY ACTIONS. The Parties will take or cause to be taken such actions as are necessary to
authorize, approve and take and/or carry out the actions contemplated by this Agreement.

11. BINDING EFFECT. This Agreement shall be binding upon and inure to the benefit of the Parties,
and their respective heirs, administrators, representatives, executors, attorneys, successors and
assigns.

12. SEVERABILITY. While the provisions contained in this Agreement are considered by the Parties to
be reasonable in all circumstances, it is recognized that some provisions may fail for technical
reasons. Accordingly, it is hereby agreed and declared that if any of such provisions shall, either
by itself or themselves or taken with others, be adjudged to be invalid as exceeding what is
reasonable in all circumstances for the protection of the interests of the Company, but would be
valid if any particular restrictions or provisions were deleted or restricted or limited in a
particular manner, then said provisions shall apply with any such deletions, restrictions,
limitations, reductions, curtailments, or modifications as may be necessary to make them valid and
effective, and the remaining provisions shall be unaffected thereby, so long as both Parties obtain
the essential benefits of this Agreement notwithstanding such deletions, restrictions, limitations,
reductions, curtailments, or modifications.

13. ENTIRE AGREEMENT; MODIFICATION. Except as set out herein, this Agreement constitutes the
entire understanding among the Parties with respect to the matters set forth herein. This Agreement
supersedes all prior written and/or oral and all contemporaneous oral agreements, understandings
and negotiations regarding the subject matter hereof, including without limitation, the Employment
Agreement and any indemnification agreement.

14. INTERPRETATION; GOVERNING LAW. This Agreement shall be construed as a whole according to its
fair meaning and shall not be construed strictly for or against either Party. Any uncertainty or
ambiguity shall not be construed against the drafter. Captions are intended solely for convenience
of reference and shall not be used in the interpretation of this Agreement.

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This Agreement shall be governed by and construed and enforced pursuant to the laws of the State of
Alabama applicable to contracts made and entirely to be performed therein without regard to rules
relating to conflicts of law.

15. VOLUNTARY AGREEMENT; NO INDUCEMENTS. Each of the Parties to this Agreement acknowledges and
represents that he or it has had the benefit of review by legal counsel and tax advisors and has
fully and carefully read this Agreement prior to signing it and is signing and entering into this
Agreement as a free and voluntary act without duress or undue pressure or influence of any kind or
nature whatsoever and has not relied on any promises, representations or warranties regarding the
subject matter hereof other than as set forth in this Agreement.

16. NOTICES. Any notice or other communications required or permitted to be given hereunder shall
be in writing and shall be sufficiently given if delivered in person or transmitted by facsimile or
similar means of recorded electronic communication to the relevant Party as follows:

	 	 	 	 	 

	 

	 	(a) Executive:	 	 
	 

	 	 	 	Michael G. Stewart
	 

	 	 	 	To the address on file with the Company
	 

	 	(b) Company:	 	 
	 

	 	 	 	Medical Properties Trust, Inc.
	 

	 	 	 	1000 Urban Center Drive, Suite 501
	 

	 	 	 	Birmingham, Alabama 35242
	 

	 	 	 	Facsimile: (205) 969-3756

Any such notice or other communication shall be deemed to have been given and received on the day
on which it is delivered or faxed (or, if day is not a business day or if the notice or other
communication is not faxed during business hours, at the place of receipt, on the next following
business day.) Any Party may change its address for the purposes of this Section by giving notice
to the other Parties in accordance with the foregoing. Executive
shall promptly inform the Company of any change in his address by
giving notice in the manner provided in this Section 16.

[Signatures are on the next page.]

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IN WITNESS WHEREOF, the Parties have set their hand as of the date first written above.

	 	 	 	 	 
	 	EXECUTIVE:

 	 
	 	
 	 
	 	MICHAEL G. STEWART 	 
	 	 	 
	 
	 	COMPANY:

MEDICAL PROPERTIES TRUST, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Its: 	 	 
	 
	 	MPT OPERATING PARTNERSHIP, L.P.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Its: 	 	 

9

 

	 	 	 	 	 

Schedule I

Restricted Stock

The Executive was awarded Restricted Stock pursuant to the following Restricted Stock Agreements:

	 	•	 	That certain Award Agreement for Restricted Stock dated May 24, 2006, as
amended.
	 
	 	•	 	That certain Award Agreement for Restricted Stock dated March 8, 2007, as
amended.
	 
	 	•	 	That certain Award Agreement for Restricted Stock dated August 7, 2007, as
amended.
	 
	 	•	 	That certain Award Agreement for Restricted Stock dated February 14, 2008, as
amended.
	 
	 	•	 	That certain Award Agreement for Restricted Stock dated January 2, 2009, as
amended.
	 
	 	•	 	That certain Award Agreement for Restricted Stock dated January 6, 2010, as
amended.

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Schedule II

Vesting of Restricted Stock

	 	•	 	With respect to that certain Award Agreement for Restricted Stock dated May 24,
2006, as amended, 750 of the unvested shares subject to this Award Agreement, which
vest based upon the passage of time, shall fully vest as of the Effective Date;
9,375 of the unvested shares subject to this Award Agreement shall fully vest based
upon the performance criteria and other terms set forth therein; provided, however
that Executive’s employment status shall be disregarded in determining whether
vesting or forfeiture has occurred.
	 
	 	•	 	With respect to that certain Award Agreement for Restricted Stock dated March 8,
2007, as amended, 5,000 of the unvested shares subject to this Award Agreement,
which vest based upon the passage of time, shall fully vest as of the Effective
Date.
	 
	 	•	 	With respect to that certain Award Agreement for Restricted Stock dated August
7, 2007, as amended, 20,000 of the unvested shares subject to this Award Agreement,
which vest based upon the passage of time, shall fully vest as of the Effective
Date; 98,571 of the unvested shares subject to this Award Agreement shall vest
based upon the performance criteria and other terms set forth therein; provided,
however that Executive’s employment status shall be disregarded in determining
whether vesting or forfeiture has occurred.
	 
	 	•	 	With respect to that certain Award Agreement for Restricted Stock dated February
14, 2008, as amended, 25,062 of the unvested shares subject to this Award
Agreement, which vest based upon the passage of time, shall fully vest as of the
Effective Date.
	 
	 	•	 	With respect to that certain Award Agreement for Restricted Stock dated January
2, 2009, as amended, 14,836 of the unvested shares subject to this Award Agreement,
which vest based upon the passage of time, shall fully vest as of the Effective
Date.
	 
	 	•	 	With respect to that certain Award Agreement for Restricted Stock dated January
6, 2010, as amended, 3,371 of the unvested shares subject to this Award Agreement,
which vest based upon the passage of time, shall fully vest as of the Effective
Date; 3,677 of the unvested shares subject to this Award Agreement shall vest based
upon the performance criteria and other terms set forth therein; provided, however
that Executive’s employment status shall be disregarded in determining whether
vesting or forfeiture has occurred.

11exv10w1

Exhibit 10.1

SUPPORT AGREEMENT

BY AND AMONG

BUCKEYE PARTNERS, L.P.

AND

BGH GP HOLDINGS, LLC

ARCLIGHT ENERGY PARTNERS FUND III, L.P.

ARCLIGHT ENERGY PARTNERS FUND IV, L.P.

KELSO INVESTMENT ASSOCIATES VII, L.P.

KEP VI, LLC

DATED AS OF JUNE 10, 2010

 

 

Table of Contents

	 	 	 	 	 
	 	 	Page	 
	ARTICLE I GENERAL
	 	 	1	 
	 
	 	 	 	 
	1.1 Defined Terms
	 	 	1	 
	 
	 	 	 	 
	ARTICLE II VOTING
	 	 	2	 
	 
	 	 	 	 
	2.1 Agreement to Vote
	 	 	2	 
	 
	 	 	 	 
	2.2 No Inconsistent Agreements
	 	 	3	 
	 
	 	 	 	 
	2.3 Proxy
	 	 	3	 
	 
	 	 	 	 
	ARTICLE III REPRESENTATIONS AND WARRANTIES
	 	 	3	 
	 
	 	 	 	 
	3.1 Representations and Warranties of the Unitholders
	 	 	3	 
	 
	 	 	 	 
	3.2 Representations and Warranties of Partners
	 	 	5	 
	 
	 	 	 	 
	ARTICLE IV OTHER COVENANTS
	 	 	5	 
	 
	 	 	 	 
	4.1 Prohibition on Transfers, Other Actions
	 	 	5	 
	 
	 	 	 	 
	4.2
Distributions, etc.
	 	 	5	 
	 
	 	 	 	 
	4.3 No Solicitation
	 	 	5	 
	 
	 	 	 	 
	4.4 Notice of Proposals Regarding Prohibited Transactions
	 	 	6	 
	 
	 	 	 	 
	4.5 Further Assurances
	 	 	6	 
	 
	 	 	 	 
	4.6 Unitholder Capacity
	 	 	6	 
	 
	 	 	 	 
	4.7 Continued Ownership of Holdings GP and General Partner Interest in Holdings
	 	 	7	 
	 
	 	 	 	 
	4.8 Registration Rights
	 	 	7	 
	 
	 	 	 	 
	ARTICLE V MISCELLANEOUS
	 	 	7	 
	 
	 	 	 	 
	5.1 Termination
	 	 	7	 
	 
	 	 	 	 
	5.2 No Ownership Interest
	 	 	7	 
	 
	 	 	 	 
	5.3 Publicity
	 	 	7	 
	 
	 	 	 	 
	5.4 Notices
	 	 	8	 
	 
	 	 	 	 
	5.5 Interpretation
	 	 	9	 
	 
	 	 	 	 
	5.6 Counterparts
	 	 	10	 
	 
	 	 	 	 
	5.7 Entire Agreement
	 	 	10	 
	 
	 	 	 	 
	5.8 Governing Law; Consent to Jurisdiction; Waiver of Jury Trial
	 	 	10	 
	 
	 	 	 	 
	5.9 Amendment; Waiver
	 	 	11	 
	 
	 	 	 	 
	5.10 Remedies.
	 	 	11	 
	 
	 	 	 	 
	5.11 Severability
	 	 	11	 
	 
	 	 	 	 
	5.12 Action by Partners
	 	 	11	 
	 
	 	 	 	 
	5.13 Successors and Assigns; Third Party Beneficiaries
	 	 	12	 

 

 

SUPPORT AGREEMENT

     SUPPORT AGREEMENT, dated as of June 10, 2010 (this “Agreement”), by and among Buckeye
Partners, L.P., a Delaware limited partnership (“Partners”), and BGH GP Holdings, LLC, a Delaware
limited liability company (“Holdings Unitholder”), ArcLight Energy Partners Fund III, L.P., a
Delaware limited partnership, ArcLight Energy Partners Fund IV, L.P., a Delaware limited
partnership, Kelso Investment Associates VII, L.P., a Delaware limited partnership, and KEP VI,
LLC, a Delaware limited liability company (collectively, the “Unitholders” and, individually, a
“Unitholder”).

W I T N E S S E T H:

     Whereas, concurrently with the execution of this Agreement, Partners, Buckeye GP LLC,
a Delaware limited liability company (“Partners GP”), Buckeye GP Holdings L.P., a Delaware limited
partnership (“Holdings”), MainLine Management LLC, a Delaware limited liability company (“Holdings
GP”), and Grand Ohio, LLC, a Delaware limited liability company (“MergerCo”), are entering into an
Agreement and Plan of Merger, dated as of the date hereof (as amended, supplemented, restated or
otherwise modified from time to time, the “Merger Agreement”) pursuant to which, among other
things, MergerCo will merge with and into Holdings and each outstanding Common Unit and Management
Unit of Holdings will be converted into the right to receive the merger consideration specified
therein;

     Whereas, as of the date hereof, each Unitholder is the record and/or beneficial
owner, in the aggregate, of the number of Common Units and Management Units set forth opposite such
Unitholder’s name on Schedule I hereto (the “Existing Units”); and

     Whereas, as a material inducement to Partners entering into the Merger Agreement,
Partners has required that the Unitholders agree, and the Unitholders have agreed, to enter into
this Agreement and abide by the covenants and obligations with respect to the Existing Units set
forth herein.

     Now Therefore, in consideration of the foregoing and the mutual representations,
warranties, covenants and agreements herein contained, and intending to be legally bound hereby,
the parties hereto agree as follows:

ARTICLE I

GENERAL

     1.1 Defined Terms. The following capitalized terms, as used in this Agreement, shall have the
meanings set forth below. Capitalized terms used but not otherwise defined herein shall have the
meanings ascribed thereto in the Merger Agreement.

     “Affiliate” has the meaning set forth in Rule 405 of the rules and regulations under the
Securities Act, unless otherwise expressly stated herein. For purposes of this Agreement, with
respect to each Unitholder or other Person, Affiliate shall not include
Holdings or any Person that is directly or indirectly, through one or more intermediaries,
controlled by Holdings. For the avoidance of doubt, no officer or director of Holdings, Holdings
GP, Partners, Partners GP or

 

 

any of their controlled Affiliates shall be deemed to be an Affiliate
of a Unitholder or other Person by virtue of his or her status as a director or officer of
Holdings, Holdings GP, Partners, Partners GP or any of their controlled Affiliates.

     “Beneficial Ownership” by a Person of any securities includes ownership by any Person who,
directly or indirectly, including through any contract, arrangement, understanding, relationship or
otherwise, has or shares (i) voting power which includes the power to vote, or to direct the voting
of, such security; and/or (ii) investment power which includes the power to dispose, or to direct
the disposition, of such security; and shall otherwise be interpreted in accordance with the term
“beneficial ownership” as defined in Rule 13d-3 adopted by the Securities and Exchange Commission
under the Exchange Act; provided that for purposes of determining Beneficial Ownership, a Person
shall be deemed to be the Beneficial Owner of any securities which such Person has, at any time
during the term of this Agreement, the right to acquire pursuant to any agreement, arrangement or
understanding or upon the exercise of conversion rights, exchange rights, warrants or options, or
otherwise (irrespective of whether the right to acquire such securities is exercisable immediately
or only after the passage of time, including the passage of time in excess of 60 days, the
satisfaction of any conditions, the occurrence of any event or any combination of the foregoing).
The terms “Beneficially Own” and “Beneficially Owned” shall have a correlative meaning.

     “Transfer” means, directly or indirectly, to sell, transfer, assign, pledge, encumber,
hypothecate or similarly dispose of (by merger (including by conversion into securities or other
consideration), by tendering into any tender or exchange offer, by testamentary disposition, by
operation of law or otherwise), either voluntarily or involuntarily, or to enter into any contract,
option or other arrangement or understanding with respect to the voting of or sale, transfer,
assignment, pledge, encumbrance, hypothecation or similar disposition of (by merger, by tendering
into any tender or exchange offer, by testamentary disposition, by operation of law or otherwise).

ARTICLE II

VOTING

     2.1 Agreement to Vote. Each Unitholder hereby irrevocably and unconditionally agrees that,
during the term of this Agreement, at the Holdings Meeting and at any other meeting of the
unitholders of Holdings, however called, including any adjournment or postponement thereof, and in
connection with any written consent of the unitholders of Holdings relating to the Merger or an
Acquisition Proposal, such Unitholder shall to the fullest extent that the Existing Units are
entitled to vote thereon or consent thereto:

          (a) appear at each such meeting or otherwise cause its Existing Units to be counted as present
thereat for purposes of calculating a quorum; and

          (b) vote (or cause to be voted), in person or by proxy, or deliver (or cause to be delivered)
a written consent covering all of the Existing Units (i) in favor of the approval and adoption of
the Merger Agreement, the approval of the Merger and any other action required in furtherance
thereof submitted for the vote or written consent of unitholders; (ii) against any

2

 

action or
agreement that would result in a breach of any covenant, representation or warranty or any other
obligation or agreement of Holdings or Holdings GP contained in the Merger Agreement; (iii) against
any Acquisition Proposal; and (iv) against any action, agreement or transaction that would or would
reasonably be expected to materially impede, interfere with, delay, postpone, discourage, frustrate
the purposes of or adversely affect the Merger or the other transactions contemplated by the Merger
Agreement.

     2.2 No Inconsistent Agreements. Each Unitholder hereby covenants and agrees that, except for
this Agreement, such Unitholder (a) has not entered into, and shall not enter into at any time
while this Agreement remains in effect, any voting agreement or voting trust with respect to its
Existing Units, (b) has not granted, and shall not grant at any time while this Agreement remains
in effect, a proxy, consent or power of attorney with respect to its Existing Units (other than a
proxy or proxies to vote its Existing Units in a manner consistent with this Agreement) and (c)
shall not knowingly take any action at any time while this Agreement remains in effect that would
make any representation or warranty of such Unitholder contained herein untrue or incorrect in any
material respect or have the effect of preventing or disabling such Unitholder from performing any
of its obligations under this Agreement in any material respect.

     2.3 Proxy. In order to secure the obligations set forth herein, Unitholder hereby irrevocably
appoints during the term of this Agreement as its proxy and attorney-in-fact, as the case may be
Keith St.Clair and William Schmidt, in their respective capacities as officers of Partners or
Partners GP, and any individual who shall hereafter succeed to any such officer of Partners or
Partners GP, as the case may be, and any other Person designated in writing by Partners or Partners
GP (collectively, the “Grantees”), each of them individually, with full power of substitution, to
vote or execute written consents with respect to the Existing Units in accordance with Section 2.1
and, in the discretion of the Grantees, with respect to any proposed postponements or adjournments
of any annual or special meeting of the Unitholders of Holdings at which any of the matters
described in Section 2.1(b) are to be considered; provided that any exercise of this proxy by such
Grantees shall be subject to the approval of such exercise by the Partners Audit Committee. To the
fullest extent permitted by law, this proxy is coupled with an interest and shall be irrevocable,
and each Unitholder will take such further action or execute such other instruments as may be
necessary to effectuate the intent of this proxy and hereby revokes any proxy previously granted by
such Unitholder with respect to the Existing Units to the extent that such proxy is inconsistent
with the provisions of this Agreement. Partners may terminate this proxy with respect to any
Unitholder at any time at its sole election by written notice provided to such Unitholder.

ARTICLE III

REPRESENTATIONS AND WARRANTIES

     3.1 Representations and Warranties of Each Unitholder. Each Unitholder hereby severally but
not jointly represents and warrants to Partners as follows:

          (a) Organization; Authorization; Validity of Agreement; Necessary Action. Such Unitholder has
the requisite power and authority to execute and deliver this

3

 

Agreement, to carry out its
obligations hereunder and to consummate the transactions contemplated hereby. The execution and
delivery by such Unitholder of this Agreement, the performance by it of the obligations hereunder
and the consummation of the transactions contemplated hereby have been duly and validly authorized
by such Unitholder, and no other actions or proceedings on the part of such Unitholder are
necessary to authorize the execution and delivery of this Agreement, the performance by such
Unitholder of its obligations hereunder or the consummation of the transactions contemplated
hereby. This Agreement has been duly executed and delivered by such Unitholder and, assuming the
due authorization, execution and delivery of this Agreement by Partners, constitutes a legal, valid
and binding agreement of such Unitholder, enforceable against it in accordance with its terms,
subject to bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and similar laws
of general applicability relating to or affecting creditors’ rights and to general equitable
principles.

          (b) Ownership. Such Unitholder’s Existing Units are Beneficially Owned by such Unitholder as
set forth on Schedule I hereto. Holdings Unitholder has good and marketable title to the Existing
Units, free and clear of any Lien. Holdings Unitholder has and will have at all times through the
Closing Date sole voting power (including the right to control such vote as contemplated herein),
sole power of disposition, sole power to issue instructions with respect to the matters set forth
in Article II hereof, and sole power to agree to all of the matters set forth in this Agreement, in
each case with respect to all of Holdings Unitholder’s Existing Units.

          (c) No Violation. Neither the execution and delivery of this Agreement by such Unitholder nor
the performance by such Unitholder of its obligations under this Agreement will (i) result in a
violation or breach of or conflict with any provisions of, or constitute a default (or an event
which, with notice or lapse of time or both, would constitute a default) under, or result in the
termination, cancellation of, or give rise to a right of purchase under, or accelerate the
performance required by, or result in a right of termination or acceleration under, or result in
the creation of any Lien upon any of the Existing Units or result in being declared void, voidable,
or without further binding effect, or otherwise result in a material detriment to such Unitholder
under, any note, bond, mortgage, indenture, deed of trust, license, contract, lease, agreement or
other instrument or obligation of any kind to which such Unitholder is a party or by which such
Unitholder or any of its respective properties, rights or assets may be bound or (ii) violate any
judgments, decrees, injunctions, rulings, awards, settlements, stipulations, orders (collectively,
“Orders”) or laws applicable to such Unitholder or any of its material properties, rights or assets
or result in a violation or breach of or conflict with its certificate of incorporation or bylaws,
partnership agreement, or limited liability company agreement (as applicable).

          (d) Consents and Approvals. No consent, approval, Order or authorization of, or registration,
declaration or filing with, any governmental authority is necessary to be obtained or made by such
Unitholder in connection with such Unitholder’s execution, delivery and performance of this
Agreement or the consummation by such Unitholder of the transactions contemplated hereby, except
(i) for any reports under Sections 13(d) and 16 of the Exchange Act as may be required in
connection with this Agreement and the transactions contemplated hereby, (ii) as set forth in the
Merger Agreement or (iii) as would not reasonably be expected to prevent, materially delay or
otherwise materially impair such Unitholder’s ability to perform its obligations hereunder.

4

 

          (e) Absence of Litigation. There is no action, litigation or proceeding pending and no Order
of any governmental authority outstanding nor, to the knowledge of such Unitholder, is any such
action, litigation, proceeding or Order threatened, against such Unitholder or its Existing Units
which may prevent or materially delay such Unitholder from performing its obligations under this
Agreement or consummating the transactions contemplated hereby.

          (f) Reliance by Partners. Such Unitholder understands and acknowledges that Partners is
entering into the Merger Agreement in reliance upon such Unitholder’s execution and delivery of
this Agreement and the representations and warranties of such Unitholder contained herein.

     3.2 Representations and Warranties of Partners. Partners hereby represents and warrants to
each Unitholder that the execution and delivery of this Agreement by Partners and the consummation
of the transactions contemplated hereby have been duly authorized by all necessary action on the
part of Partners.

ARTICLE IV

OTHER COVENANTS

     4.1 Prohibition on Transfers, Other Actions. Each Unitholder hereby agrees not to (i) acquire
any additional Common Units or Management Units or other voting equity interests of Holdings or any
securities convertible into or exchangeable for Common Units or other voting equity interests of
Holdings (other than the acquisition of additional Common Units upon conversion of Management Units
outstanding as of the date hereof), (ii) Transfer any of the Existing Units, Beneficial Ownership
thereof or any other interest therein; (iii) enter into any agreement, arrangement or understanding
with any Person, or take any other action, that violates or conflicts with or would reasonably be
expected to violate or conflict with, or result in or give rise to a violation of or conflict with,
Unitholder’s representations, warranties, covenants and obligations under this Agreement; or (iv)
take any action that could restrict or otherwise affect Unitholder’s legal power, authority and
right to comply with and perform its covenants and obligations under this Agreement. Any Transfer
in violation of this provision shall be null and void.

     4.2 Distributions, etc. In the event of a unit split, unit distribution, or any change in the
Common Units and/or Management Units by reason of any split-up, reverse unit split,
recapitalization, combination, reclassification, exchange of units or the like, the term
“Existing Units” shall be deemed to refer to and include such units as well as all such unit
distributions and any securities into which or for which any or all of such units may be changed or
exchanged or which are received in such transaction.

     4.3 No Solicitation. Subject to Section 4.6, each Unitholder agrees that it will not, and
shall use its reasonable best efforts to cause its Representatives not to, directly or indirectly
through another Person, (i) knowingly solicit, initiate or encourage the submission of any
Acquisition Proposal or the making or consummation thereof, (ii) participate in any discussions or
negotiations regarding, or furnish to any Person any nonpublic information about Holdings or

5

 

Partners in connection with, or otherwise cooperate in any way with, any Acquisition Proposal,
(iii) make or participate in, directly or indirectly, a “soliciation” of “proxies” (as such terms
are used in the rules of the U.S. Securities and Exchange Commission) or powers of attorney or
similar rights to vote, or seek to advise or influence any Person with respect to the voting of,
any Common Units or Management Units in connection with any vote or other action on any matter,
other than to recommend that holders of Common Units and Management Units vote in favor of the
approval and adoption of the Merger and the Merger Agreement and as otherwise expressly provided in
this Agreement, or (iv) agree or publicly propose to do any of the foregoing. Each Unitholder
hereby represents that, as of the date hereof, such Unitholder is not engaged in any discussions or
negotiations with respect to any Acquisition Proposal and shall use its reasonable best efforts to
cause such Unitholder’s Representatives to immediately cease and cause to be terminated all
existing discussions or negotiations with any Person conducted heretofore with respect to any
Acquisition Proposal and request the prompt return or destruction of all confidential information
previously furnished and will take commercially reasonable steps to inform its Representatives of
the obligations undertaken by such Unitholder pursuant to this Agreement, including this
Section 4.3.

     4.4 Notice of Proposals Regarding Prohibited Transactions. Each Unitholder hereby agrees to
notify Partners as promptly as practicable (and in any event within 48 hours after receipt) in
writing of any written inquiries or proposals which are received by, or any written requests for
information from, or any written request to initiate negotiations or discussions with, Unitholder
or any of its Affiliates (other than its Representatives acting in their capacity as an officer or
director of Holdings GP) with respect to any Acquisition Proposal (including the material terms
thereof and the identity of such person(s) making such inquiry or proposal, requesting such
information or seeking to initiate such negotiations or discussions, as the case may be).

     4.5 Further Assurances. From time to time, at Partners’ request and without further
consideration, each Unitholder shall execute and deliver such additional documents and take all
such further action as may be reasonably necessary or advisable to effect the actions and
consummate the transactions contemplated by this Agreement.

     4.6 Unitholder Capacity. Each Unitholder has entered into this Agreement solely in its
capacity as a Beneficial Owner of Existing Units. Notwithstanding anything to the contrary
contained in this Agreement: (i) none of the provisions of this Agreement shall be construed to
prohibit, limit or restrict any Representative of a Unitholder who is an officer of Holdings GP or
Partners GP or a member of the Partners GP Board or Holdings GP Board from exercising his or
her fiduciary duties to Holdings or Partners by voting or taking any other action whatsoever
in his or her capacity as an officer or director, including with respect to the Merger Agreement
and the transactions contemplated thereby; and (ii) no action taken by Holdings or Partners in
respect of any Acquisition Proposal shall serve as the basis of a claim that a Unitholder is in
breach of its obligations hereunder notwithstanding the fact that such Unitholder’s Representative,
in his or her capacity as an officer or director of Holdings GP or Partners GP, has provided advice
or assistance to Holdings or Partners in connection therewith.

6

 

     4.7 Continued Ownership of Holdings GP and General Partner Interest in Holdings.

          (a) Each of the Unitholders agrees not to Transfer its ownership interest in Holdings
Unitholder, or Beneficial Ownership thereof or any other interest therein, and to cause Holdings
Unitholder not to dissolve or liquidate, prior to the earlier of (i) the date of refinancing or
termination of that certain Credit Agreement by and among Partners, the several banks and other
financial institutions party thereto and the administrative agent, dated as of November 13, 2006,
as amended, supplemented and modified from time to time or (ii) August 14, 2013, in one or more
Transfers that would cause them to cease to collectively own, beneficially or of record, directly
or indirectly at least 35% of the outstanding equity interests of Holdings Unitholder (such earlier
date, the “Applicable Date”).

          (b) Holdings Unitholder agrees not to Transfer its ownership interest in Holdings GP, or
Beneficial Ownership thereof or any other interest therein, and to cause Holdings GP not to
dissolve or liquidate, prior to the Applicable Date.

          (c) Each of the Unitholders agrees to cause Holdings GP not to transfer its general partner
interest in Holdings, or Beneficial Ownership thereof or any other interest therein, prior to the
Applicable Date.

     4.8 Registration Rights. At the Effective Time, Partners and the Unitholders shall enter into
a Registration Rights Agreement substantially in the form attached hereto as Annex A.

ARTICLE V

MISCELLANEOUS

     5.1 Termination. This Agreement shall remain in effect until the earliest to occur of (i) the
Effective Time; (ii) a Holdings Change in Recommendation, (iii) the termination of the Merger
Agreement in accordance with its terms; or (iv) the written agreement of the Unitholders and
Partners to terminate this Agreement. After the occurrence of such applicable event, this
Agreement shall terminate and be of no further force and effect; provided, that, notwithstanding
termination of this Agreement upon the Effective Time under clause (i) above, Section 4.7 shall
remain in full force and effect until the Applicable Date and this Article V (except Sections 5.2
and 5.3) shall remain in full force and effect until the Applicable Date. Nothing in this Section
5.1 and no termination of this Agreement shall relieve or otherwise limit any party of liability
for any breach of this Agreement occurring prior to such termination.

     5.2 No Ownership Interest. Nothing contained in this Agreement shall be deemed to vest in
Partners any direct or indirect ownership or incidence of ownership of or with respect to any
Existing Units. All rights, ownership and economic benefit relating to the Existing Units shall
remain vested in and belong to each Unitholder, and Partners shall have no authority to direct such
Unitholder in the voting (except as otherwise provided herein) or disposition of any of the
Existing Units.

     5.3 Publicity. Each Unitholder hereby permits Partners and Holdings to include and disclose
in the Registration Statement, the Joint Proxy Statement and in such other schedules,

7

 

certificates,
applications, agreements or documents as such entities reasonably determine to be necessary or
appropriate in connection with the consummation of the Merger and the transaction contemplated in
the Merger Agreement such Unitholder’s identity and ownership of the Existing Units and the nature
of such Unitholder’s commitments, arrangements and understandings pursuant to this Agreement.

     5.4 Notices. All notices and other communications hereunder shall be in writing and shall be
deemed given (1) on the date of delivery, if delivered personally, (2) on the first Business Day
following the date of dispatch if delivered by a recognized next day courier service and (3) on the
fifth Business Day following the date of mailing if delivered by registered or certified mail,
return receipt requested, postage prepaid. All notices hereunder shall be delivered as set forth
below or pursuant to such other instructions as may be designated in writing by the party to
receive such notice:

     If to Partners, to:

Buckeye Partners, L.P.

One Greenway Plaza, Suite 600

Houston, TX 77046

Attention: General Counsel

     With copies to:

Buckeye Partners, L.P.

One Greenway Plaza, Suite 600

Houston, TX 77046

Attention: Chairman of the Audit Committee

and

Prickett, Jones & Elliott, P.A.

1310 King Street

Wilmington, DE 19801

Tel: 302.888.6500

Fax: 302.658.8111

Attention: John H. Small, Esq.

and

Vinson & Elkins L.L.P.

666 Fifth Avenue, 26th Floor

New York, NY 10103

Tel: 212.237.0000

Attention: Michael J. Swidler, Esq.

8

 

     If to a Unitholder, to:

ArcLight Capital Partners, LLC

Attn: John A. Tisdale

200 Clarendon Street, 55th Floor

John Hancock Tower

Boston, MA 02117

Fax: (617) 867-4698

and

Kelso & Company

Attn: Jim Connors

320 Park Ave., 24th Floor

New York, New York. 10022

Fax: (212) 223-2379

and

BGH GP Holdings, LLC

C/o ArcLight Capital Partners, LLC

Attn: John A. Tisdale

200 Clarendon Street, 55th Floor

John Hancock Tower

Boston, MA 02117

Fax: (617) 867-4698

          with a copy to:

Latham & Watkins LLP

Attn: William N. Finnegan IV, Esq.

          Sean T. Wheeler, Esq.

717 Texas Avenue, Suite 1600

Houston, Texas 77002

Fax: (713) 546-5401

     5.5 Interpretation. The words “hereof,” “herein” and “hereunder” and words of similar import
when used in this Agreement shall refer to this Agreement as a whole and not to any particular
provision of this Agreement, and Section references are to this Agreement unless otherwise
specified. Whenever the words “include,” “includes” or “including” are used in this Agreement,
they shall be deemed to be followed by the words “without limitation.” The meanings given to terms
defined herein shall be equally applicable to both the singular and plural

9

 

forms of such terms.
The table of contents and headings contained in this Agreement are for reference purposes only and
shall not affect in any way the meaning or interpretation of this Agreement. This Agreement is the
product of negotiation by the parties having the assistance of counsel and other advisers. It is
the intention of the parties that this Agreement not be construed more strictly with regard to one
party than with regard to the others.

     5.6 Counterparts. This Agreement may be executed by facsimile and in counterparts, all of
which shall be considered one and the same agreement and shall become effective when counterparts
have been signed by each of the parties and delivered to the other parties, it being understood
that all parties need not sign the same counterpart.

     5.7 Entire Agreement. This Agreement, together with the schedule annexed hereto, and, solely
to the extent of the defined terms referenced herein and as provided in Section 4.3 hereof, the
Merger Agreement embodies the complete agreement and understanding among the parties hereto with
respect to the subject matter hereof and supersede and preempt any prior understandings, agreements
or representations by or among the parties, written and oral, that may have related to the subject
matter hereof in any way.

     5.8 Governing Law; Consent to Jurisdiction; Waiver of Jury Trial.

          (a) This Agreement shall be governed by and construed in accordance with the laws of the State
of Delaware, regardless of the laws that might otherwise govern under applicable principles of
conflicts of laws thereof. The parties agree that irreparable damage would occur and that the
parties would not have any adequate remedy at law in the event that any of the provisions of this
Agreement were not performed in accordance with their specific terms or were otherwise breached. It
is accordingly agreed that the parties shall be entitled to an injunction or injunctions to prevent
breaches of this Agreement and to enforce specifically the terms and provisions of this Agreement
in the Court of Chancery of the State of Delaware (and any appellate court of the State of
Delaware) and the Federal courts of the United States of America located in the State of Delaware,
this being in addition to any other remedy to which they are entitled at law or in equity. In
addition, each of the parties hereto (i) consents to submit itself to the personal jurisdiction of
the Court of Chancery of the State of Delaware (and any appellate court of the State of Delaware)
and the Federal courts of the United States of America located in the State of Delaware in the
event any dispute arises out of this Agreement or the transactions contemplated by this Agreement,
(ii) agrees that it will not attempt to deny or defeat such personal jurisdiction by motion or
other request for leave from any such court and (iii) agrees that it will not bring any action
relating to this Agreement or the transactions contemplated by this Agreement in any court other
than the Court of Chancery of the State of Delaware or a Federal court of the United States of
America located in the State of Delaware.
Without limiting the foregoing, each party agrees that service of process on such party as
provided in Section 5.4 shall be deemed effective service of process on such party.

          (b) EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY
RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY SUIT, ACTION OR OTHER PROCEEDING ARISING OUT
OF THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY. EACH PARTY HERETO (I) CERTIFIES THAT NO
REPRESENTATIVE, AGENT OR

10

 

ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT
SUCH PARTY WOULD NOT, IN THE EVENT OF ANY ACTION, SUIT OR PROCEEDING, SEEK TO ENFORCE THE FOREGOING
WAIVER AND (II) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO
THIS AGREEMENT, BY, AMONG OTHER THINGS, THE MUTUAL WAIVER AND CERTIFICATIONS IN THIS SECTION 5.8.

     5.9 Amendment; Waiver. This Agreement may not be amended except by an instrument in writing
signed by Partners and each Unitholder. Each party may waive any right of such party hereunder by
an instrument in writing signed by such party and delivered to Partners and the Unitholders.

     5.10 Remedies.

          (a) Each party hereto acknowledges that monetary damages would not be an adequate remedy in
the event that any covenant or agreement in this Agreement is not performed in accordance with its
terms, and it is therefore agreed that, in addition to and without limiting any other remedy or
right it may have, the non-breaching party will have the right to an injunction, temporary
restraining order or other equitable relief in any court of competent jurisdiction enjoining any
such breach and enforcing specifically the terms and provisions hereof. Each party hereto agrees
not to oppose the granting of such relief in the event a court determines that such a breach has
occurred, and to waive any requirement for the securing or posting of any bond in connection with
such remedy.

          (b) All rights, powers and remedies provided under this Agreement or otherwise available in
respect hereof at law or in equity shall be cumulative and not alternative, and the exercise or
beginning of the exercise of any thereof by any party shall not preclude the simultaneous or later
exercise of any other such right, power or remedy by such party.

     5.11 Severability. Any term or provision of this Agreement which is determined by a court of
competent jurisdiction to be invalid or unenforceable in any jurisdiction shall, as to that
jurisdiction, be ineffective to the extent of such invalidity or unenforceability without rendering
invalid or unenforceable the remaining terms and provisions of this Agreement or affecting the
validity or enforceability of any of the terms or provisions of this Agreement in any other
jurisdiction, and if any provision of this Agreement is determined to be so broad as to be
unenforceable, the provision shall be interpreted to be only so broad as is enforceable, in all
cases so long as neither the economic nor legal substance of the transactions contemplated hereby
is affected in any manner adverse to any party or its equityholders. Upon any such determination,
the parties shall negotiate in good faith in an effort to agree upon a suitable and
equitable substitute provision to effect the original intent of the parties as closely as
possible and to the end that the transactions contemplated hereby shall be fulfilled to the maximum
extent possible.

     5.12 Action by Partners. No waiver, consent or other action by or on behalf of Partners
pursuant to or as contemplated by this Agreement shall have any effect unless such waiver, consent
or other action is expressly approved by the Partners Audit Committee. No act or failure to act
by the Partner GP Board shall constitute a breach by Partners or Partners GP of

11

 

this Agreement
unless such act or failure to act is expressly approved by the Partners Audit Committee.

     5.13 Successors and Assigns; Third Party Beneficiaries. Neither this Agreement nor any of the
rights or obligations of any party under this Agreement shall be assigned, in whole or in part (by
operation of law or otherwise), by any party without the prior written consent of the other parties
hereto. Subject to the foregoing, this Agreement shall bind and inure to the benefit of and be
enforceable by the parties hereto and their respective successors and permitted assigns. Nothing
in this Agreement, express or implied, is intended to confer on any Person other than (a) the
parties hereto or (b) the parties’ respective successors and permitted assigns any rights,
remedies, obligations or liabilities under or by reason of this Agreement.

[Remainder of this page intentionally left blank]

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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be signed (where applicable,
by their respective officers or other authorized Person thereunto duly authorized) as of the date
first written above.

	 	 	 	 	 	 	 	 	 	 	 

	 	 	BUCKEYE PARTNERS, L.P.	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	By:	 	Buckeye GP LLC, its General Partner	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	By:	 	/s/ Keith E. St.Clair	 	 
	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name:
	 	Keith E. St.Clair	 	 
	 

	 	 	 	 	 	Title:
	 	Senior Vice President and Chief
Financial Officer	 	 

Signature Page to Support Agreement

 

 

	 	 	 	 	 
	 	BGH GP HOLDINGS, LLC

 	 
	 	By:  	/s/  Frank Loverro
 	 
	 	 	Name:  	Frank Loverro 	 
	 	 	Title:  	Director 	 
	 

Signature Page to Support Agreement

 

 

	 	 	 	 	 	 	 	 	 	 	 

	 	 	ARCLIGHT ENERGY PARTNERS FUND III, L.P.	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	By:	 	ArcLight PEF GP III, LLC,	 	 
	 	 	 	 	 	 	Its General Partner	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	By:	 	ArcLight Capital Holdings, LLC	 	 
	 	 	 	 	 	 	Its Manager	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By:
	 	/s/ Daniel R. Revers	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	Name: Daniel R. Revers	 	 
	 

	 	 	 	 	 	 	 	Title:   Manager	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	ARCLIGHT ENERGY PARTNERS FUND IV, L.P.	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	By:	 	ArcLight PEF GP IV, LLC,	 	 
	 	 	 	 	 	 	Its General Partner	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	By:	 	ArcLight Capital Holdings, LLC	 	 
	 	 	 	 	 	 	Its Manager	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By:
	 	/s/ Daniel R. Revers	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	Name: Daniel R. Revers	 	 
	 

	 	 	 	 	 	 	 	Title:   Manager	 	 

Signature Page to Support Agreement

 

 

	 	 	 	 	 	 	 	 	 	 	 

	 	 	KELSO INVESTMENT ASSOCIATES VII, L.P.	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	By:	 	Kelso GP VII, L.P. , its general partner	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	By:	 	Kelso GP VII, LLC, its general partner	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By:
	 	/s/ Christopher L. Collins	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	Name: Christopher L. Collins	 	 
	 

	 	 	 	 	 	 	 	Title:   Managing Member	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	KEP VI, LLC	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ Christopher L. Collins	 	 
	 	 	 	 	 	 	 
	 	 	 	 	Name:	 	Christopher L. Collins	 	 
	 	 	 	 	Title:	 	Managing Member	 	 

Signature Page to Support Agreement

 

 

Schedule I

UNITHOLDER INFORMATION

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Existing Units
	 	 	Common Units	 	Management Units
	 	 	Record	 	Beneficial	 	Record	 	Beneficial
	Name	 	Ownership	 	Ownership	 	Ownership	 	Ownership
	BGH GP Holdings, LLC
	 	 	17,001,766	 	 	 	17,004,596	 	 	 	509,141	 	 	 	509,141	 
	ArcLight Energy Partners Fund III, L.P.
	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 
	ArcLight Energy Partners Fund IV, L.P.
	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 
	Kelso Investment Associates VII, L.P.
	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 
	KEP VI, LLC
	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 

 

 

Annex A

FORM OF REGISTRATION RIGHTS AGREEMENT

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00174-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00174-of-00352.parquet"}]]