Document:

Exhibit 10.26

 

Form of

UNIT AGREEMENT

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

WHEREAS, pursuant to the
terms of a Contribution, Conveyance and Assumption Agreement, dated as of the
date hereof (the “Contribution Agreement”), the Partnership shall issue
to Executive 8,756 Common Units on the terms and subject to the conditions set
forth herein and in the Contribution Agreement;

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

WHEREAS, in consideration
of Executive’s continued employment by the Partnership or one or more
Subsidiaries or Affiliates of the Partnership and the contribution of Class B
Units in MainLine L.P., a Delaware limited partnership (“MainLine”), to
the Partnership pursuant to the Contribution Agreement, the Partnership shall
issue to the Executive, 142,000 Management Units in the Partnership to the
Executive.

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

1.             Issuance of Executive Units.

(a)           Upon the closing of the transactions
contemplated in the Contribution Agreement the Partnership will issue 8,756
Common Units and 142,000 Management Units to Executive, in consideration of the
contributions set forth in the Contribution Agreement and Executive’s continued
performance as an employee of the Partnership or one or more Subsidiaries or
Affiliates of the Partnership.  The
Management Units acquired pursuant to this Section 1(a) shall be
subject to the vesting schedule set forth in Section 2 below.

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

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

 

 

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

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

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

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

(vi)          Executive is a resident of the State
of New Jersey.

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

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

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

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

2.             Vesting of Management Units.

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

 

2

 

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

	
  Date

  	
   

  	
  Percentage of Management

  Units to be Vested

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  May 4, 2007

  	
   

  	
  10

  	
  %

  
	
  May 4, 2008

  	
   

  	
  10

  	
  %

  
	
  May 4, 2009

  	
   

  	
  10

  	
  %

  

 

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

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

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

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

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

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

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

 

3

 

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

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

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

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

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

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

5.             Certain Definitions.

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

 

4

 

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

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

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

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

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

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

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

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

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

 

5

 

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

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

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

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

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

	
   

  	
  If to the
  Partnership:

  
	
   

  	
   

  
	
   

  	
   

  	
  5002 Buckeye Road

  
	
   

  	
   

  	
  Emmaus, PA 18049

  
	
   

  	
   

  	
  Attention: General
  Counsel

  
	
   

  	
   

  	
  Telephone:

  
	
   

  	
   

  	
  Facsimile:

  
	
   

  	
   

  	
   

  
	
   

  	
  If to
  Executive:

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  

 

6

 

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

General Provisions.

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

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

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

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

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

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

(g)           Remedies.  Each of the parties to this Agreement will be
entitled to enforce its rights under this Agreement specifically, to recover
damages and costs (including attorney’s fees) caused by any breach of any
provision of this Agreement and to exercise all other rights existing in its
favor.  The parties hereto agree and
acknowledge that money damages

 

7

 

may not be an adequate remedy for any breach of the
provisions of this Agreement and that any party may in its sole discretion
apply to any court of law or equity of competent jurisdiction (without posting
any bond or deposit) for specific performance and/or other injunctive relief in
order to enforce or prevent any violations of the provisions of this Agreement.

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

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

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

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

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

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

(n)           Descriptive Headings;
Interpretation.  The descriptive
headings of this Agreement are inserted for convenience only and do not constitute
a substantive part of this

 

8

 

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

*          *          *          *          *

 

9

 

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

	
   

  	
   

  	
  BUCKEYE GP HOLDINGS
  L.P.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By: MainLine
  Management LLC,

  
	
   

  	
   

  	
  Its General
  Partner

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Robert B. Wallace

  
	
   

  	
   

  	
   

  	
   

  
						

 

 

 

Signature Page —
Executive Purchase Agreement

 

10Exhibit 10.27

Form of

UNIT AGREEMENT

THIS UNIT AGREEMENT (this
“Agreement”) is made as of ________, 2006, by and among Buckeye GP
Holdings L.P., a Delaware limited partnership (the “Partnership”), on
the one hand, and William H. Shea, Jr. (“Executive”) and Trust Under
Agreement of Alfred W. Martinelli dated December 29, 1992, Susan Martinelli
Shea and William H. Shea, Jr., Trustees F/B/O Susan Martinelli Shea (the “Trust”),
on the other hand.  Certain definitions
are set forth in Section 5 of this Agreement.

WHEREAS, pursuant to the
terms of a Contribution, Conveyance and Assumption Agreement, dated as of the
date hereof (the “Contribution Agreement”), the Partnership shall issue
to the Trust 678,623 Common Units on the terms and subject to the conditions set
forth herein and in the Contribution Agreement;

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

WHEREAS, in consideration
of Executive’s continued employment by the Partnership or one or more
Subsidiaries or Affiliates of the Partnership and the contribution of Class B
Units in MainLine L.P., a Delaware limited partnership (“MainLine”), to
the Partnership pursuant to the Contribution Agreement, the Partnership shall
issue to the Executive, 426,000 Management Units in the Partnership to the
Executive.

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

1.             Issuance of Executive Units.

(a)           Upon the closing of the transactions
contemplated in the Contribution Agreement the Partnership will issue 678,623
Common Units to the Trust and 426,000 Management Units to Executive, in
consideration of the contributions set forth in the Contribution Agreement and
Executive’s continued performance as an employee of the Partnership or one or
more Subsidiaries or Affiliates of the Partnership.  The Management Units acquired pursuant to
this Section 1(a) shall be subject to the vesting schedule set
forth in Section 2 below.

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

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

 

 

applicable state
securities laws, and the Executive Units will not be disposed of in
contravention of the Securities Act or any applicable state securities laws.

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

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

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

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

(vi)          Executive is a resident of the
Commonwealth of Pennsylvania and the Trust is established under the laws
of the Commonwealth of Pennsylvania.

(c)           As an inducement to the Partnership
to issue the Common Units to the Trust and the Management Units to Executive,
and as a condition thereto, Executive and the Trust acknowledge and agree that:

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

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

(iii)          the Trustees shall
not amend the Trust Agreement in a manner that requires any court approval for
any party to exercise its rights under this Agreement or in

 

2

 

a manner that
takes away the Trustees’ ability to bind the Trust to any contract or
agreement.

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

2.             Vesting of Management Units.

(a)           70% of the Management Units shall be
vested upon the date hereof.  The
remaining 30% of the Management Units will become vested in accordance with the
following schedule, if as of each such date the Executive is still employed by
the Partnership or any of its Subsidiaries or Affiliates:

	
  Date

  	
   

  	
  Percentage of Management

  Units to be Vested

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  May 4, 2007

  	
   

  	
  10

  	
  %

  
	
  May 4, 2008

  	
   

  	
  10

  	
  %

  
	
  May 4, 2009

  	
   

  	
  10

  	
  %

  

 

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

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

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

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

 

3

 

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

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

(b)           Additional
Restrictions on Certain Permitted Transfers.  Executive and the Trust may Transfer
Executive Units pursuant only in accordance with the terms of the Partnership
Agreement; provided that Executive may only transfer unvested Management
Units only for estate planning purposes and if the transferee or transferees of
such unvested Management Units shall have agreed in writing to be bound by the
terms and conditions of this Agreement (as it relates to the Management Units)
and to execute and deliver to the Partnership (x) an acknowledgment that such
prospective transferee shall be bound by the provisions of this Agreement
relating to Executive Units, and (y) an acknowledgment that such prospective
transferee shall be bound by the restrictions and conditions herein and
therein; provided, further, that the additional restrictions set forth
in the foregoing proviso shall cease to apply when such unvested Management
Units become vested.

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

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

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

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

 

4

 

any of its Subsidiaries’ securities, unless the underwriters
managing the registered public offering and the Partnership otherwise agree.

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

Certain Definitions.

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

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

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

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

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

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

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

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

 

5

 

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

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

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

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

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

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

“Trustees” shall
mean Susan Martinelli Shea and William H. Shea, Jr., in their capacities as
trustees of the Trust.

 

6

 

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

	
   

  	
  If to the
  Partnership:

  
	
   

  	
   

  
	
   

  	
   

  	
  5002 Buckeye Road

  
	
   

  	
   

  	
  Emmaus, PA 18049

  
	
   

  	
   

  	
  Attention: General
  Counsel

  
	
   

  	
   

  	
  Telephone:

  
	
   

  	
   

  	
  Facsimile:

  
	
   

  	
   

  	
   

  
	
   

  	
  If to
  Executive or the Trust:

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  and to

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  

 

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

7.             General Provisions.

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

(b)           Severability.  Whenever possible, each provision of this
Agreement will be interpreted in such manner as to be effective and valid under
applicable law, but if any provision of this Agreement is held to be invalid,
illegal or unenforceable in any respect under

 

7

 

any applicable law or rule in any jurisdiction, such
invalidity, illegality or unenforceability will not affect any other provision
or any other jurisdiction, but this Agreement will be reformed, construed and
enforced in such jurisdiction as if such invalid, illegal or unenforceable
provision had never been contained herein.

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

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

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

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

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

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

(i)            No Waiver.  A waiver by any party hereto of any right or
remedy hereunder on any one occasion shall not be construed as a bar to any
right or remedy which the Partnership would otherwise have on any future
occasion.  No failure to exercise nor any
delay in exercising on the part of any party hereto, any right, power or
privilege hereunder shall preclude any other or further exercise thereof or the
exercise of any other right, power or

 

8

 

privilege.  The
rights and remedies herein provided are cumulative and may be exercised singly
or concurrently, and are not exclusive of any rights or remedies provided by
law.

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

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

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

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

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

*          *          *          *          *

 

9

 

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

	
  BUCKEYE GP HOLDINGS
  L.P.

  	
  Trust Under Agreement of Alfred W.

  
	
   

  	
  Martinelli dated
  December 29, 1992,

  
	
  By: MainLine Management
  LLC,

  	
  Susan Martinelli
  Shea

  
	
  Its General
  Partner

  	
  and William H.
  Shea, Jr., Trustees F/B/O

  
	
   

  	
  Susan Martinelli
  Shea

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
  Name:

  	
   

  
	
  Title:

  	
  William H. Shea, Jr., Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Susan
  Martinelli Shea, Trustee

  
	
   

  	
   

  
				

 

10

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