Document:

Exhibit

Exhibit 10.1

[Form of] 
INDEMNIFICATION AGREEMENT 
(with directors and officers)
This Indemnification Agreement (the “Agreement”) is made as of the __ day of ____, ____ (the “Effective Date”), by and between Gulf Island Fabrication, Inc., a Louisiana corporation (the “Corporation”), and _______________ (“Indemnitee”).
In consideration of Indemnitee’s service as a [director/officer] of the Corporation commencing on or before the date hereof, the Corporation and Indemnitee do hereby agree as follows:
1.Agreement to Serve.  Indemnitee agrees to serve or continue to serve as a [director/officer] of the Corporation for so long as Indemnitee is elected or appointed or until such earlier time as Indemnitee tenders a resignation in writing.
2.    Limitation of Liability.
To the fullest extent permitted by the Articles of Incorporation and By-Laws of the Corporation in effect on the Effective Date and, if and to the extent the Articles of Incorporation and By-Laws are amended to permit further limitations, in effect at any time prior to the determination of liability, Indemnitee shall not be personally liable in damages for breach of Indemnitee’s fiduciary duty as a director or officer.  The Board of Directors of the Corporation will not take any action to effect any amendment to the Articles of Incorporation or By-Laws the effect of which would be to deny, diminish or encumber Indemnitee’s right to exculpation under this Section 2, except as otherwise may be required to comply with applicable law.
3.    Maintenance of Insurance.
(a)    The Corporation represents that it presently maintains in force and effect directors and officers liability insurance (“D&O Insurance”) policies that provide primary and excess coverage on behalf of the Corporation’s directors and officers on the terms and conditions specified therein (the “Insurance Policies”).  Subject only to the provisions of Section 3(b) hereof, the Corporation hereby agrees that, so long as Indemnitee shall continue to serve as a director or officer (or shall continue at the request of the Corporation to serve in any capacity referred to in Section 5(a) hereof) and thereafter so long as Indemnitee shall be subject to any possible Claim, the Corporation shall purchase and maintain in effect for the benefit of Indemnitee one or more valid and enforceable policy or policies of D&O Insurance providing, in all respects, coverage reasonably comparable (including Side A) to that currently provided pursuant to the Insurance Policies, provided that the Corporation shall have no obligation to provide primary coverage or excess coverage in excess of the amount of coverage provided on the Effective Date.
(b)    The Corporation shall not be required to purchase and maintain the Insurance Policies in effect if D&O Insurance is not reasonably available or if, in the reasonable business judgment of a majority of the directors of the Corporation, either (5) the premium cost for such insurance is excessive in light of the amount of coverage or (5) 

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the coverage provided by such insurance is so limited by exclusions, retentions, deductibles or otherwise that there is insufficient benefit from such insurance.
4.    Advancement of Expenses.
(a)    Subject to Indemnitee’s furnishing the Corporation with a written undertaking, in a form reasonably satisfactory to the Corporation, (i) that Indemnitee, in good faith, believes the Standard of Conduct has been met or that the Claim involves conduct for which the Indemnitee is exculpated under applicable law and (ii) to repay such amount if it is ultimately determined that Indemnitee is not entitled under this Agreement and applicable law to indemnification therefor, the Corporation shall advance Expenses to Indemnitee in advance of the final disposition of any Claim involving Indemnitee; provided, however, that Indemnitee will return, without interest, any such advance that remains unspent at the disposition of the Claim to which the advance related, and provided further, that advances of such Expenses by the Corporation's D&O Insurance carrier shall be treated, for purposes of this Section 4(a), as advances by the Corporation.  The written undertaking by Indemnitee must be an unlimited general obligation of Indemnitee but need not be secured and will be accepted by the Corporation without reference to the financial ability of Indemnitee to make repayment.
(b)    Any request for advancement of Expenses shall be submitted by Indemnitee to the Disbursing Officer in writing and shall be accompanied by a written description of the Expenses for which advancement is requested.  The Disbursing Officer shall, within 20 days after receipt of Indemnitee's request for advancement, advance such Expenses unsecured, interest-free and without regard to Indemnitee's ability to make repayment, provided that if the Disbursing Officer questions the reasonableness of any such request, that officer shall promptly advance to the Indemnitee the amount deemed by that officer to be reasonable and shall forward immediately to the Determining Body a copy of the Indemnitee's request and of the Disbursing Officer’s response, together with a written description of that officer’s reasons for questioning the reasonableness of a portion of the advancement sought.  The Determining Body shall, within 20 days after receiving such a request from the Disbursing Officer, determine the reasonableness of the disputed Expenses and notify Indemnitee and the Disbursing Officer of its decision, which shall be final, subject to Indemnitee’s right under Section 6 to seek a judicial adjudication of Indemnitee’s rights.
(c)    Indemnitee's right to advancement under this Section 4 shall include the right to advancement of Expenses incurred by Indemnitee in a suit against the Corporation under Section 6 to enforce Indemnitee's rights under this Agreement.  Such right of advancement shall, however, be subject to Indemnitee's obligation pursuant to Indemnitee’s undertaking described in Section 4(a) to repay such advances, to the extent provided in Section 6, if it is ultimately determined in the enforcement suit that Indemnitee is not entitled to indemnification for a Claim.
5.    Indemnification.

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(a)    The Corporation shall, in the manner provided in this Section 5, indemnify and hold harmless Indemnitee against Expenses incurred in connection with any Claim against Indemnitee (whether as a subject of or party to, or a proposed or threatened subject of or party to, the Claim) or in which Indemnitee is involved solely as a witness or person required to give evidence, by reason of Indemnitee’s position:
(A)    as a director or officer of the Corporation,
(B)    as a director or officer of any subsidiary of the Corporation or as a fiduciary with respect to any employee benefit plan of the Corporation, or
(C)    as a director, officer, employee or agent of another corporation, partnership, limited liability company, joint venture, trust, employee benefit plan or other for profit or not for profit entity or enterprise, if such position is or was held at the request of the Corporation,
whether relating to service in such position before or after the Effective Date, if (5) Indemnitee is successful in defense of the Claim on the merits or otherwise, as provided in Section 5(d), or (5) Indemnitee has been found by the Determining Body to have met the Standard of Conduct; provided that no indemnification shall be made in respect of any Claim by or in the right of the Corporation as to which Indemnitee shall have been adjudged by a court of competent jurisdiction, after exhaustion of all appeals therefrom, to be liable to the Corporation unless, and only to the extent, a court shall determine upon application that, despite the adjudication of liability but in view of all the circumstances of the case, Indemnitee is fairly and reasonably entitled to indemnity for such Expenses as the court shall deem proper, and provided further, that Expenses incurred in connection with a Claim for which Indemnitee has been reimbursed or indemnified by the Corporation’s D&O Insurance carrier shall be credited against the Corporation’s obligation under this Section 5(a) with respect to such Claim.
(b)    Promptly upon becoming aware of the existence of any Claim with respect to which Indemnitee may seek indemnification hereunder, Indemnitee shall notify the President (or, if the President is the Indemnitee, the next ranking executive officer who is not an Indemnitee with respect to the Claim) of the existence of the Claim, who shall promptly advise the Board of Directors that establishing the Determining Body will be a matter presented at the next regularly scheduled meeting of the Board of Directors.  Delay by Indemnitee in giving such notice shall not excuse performance by the Corporation hereunder unless, and only to the extent that, the Corporation did not otherwise learn of the Claim and such failure results in forfeiture by the Corporation of substantial defenses, rights or insurance coverage.  After the Determining Body has been established, the President or that officer’s delegate shall inform Indemnitee thereof and Indemnitee shall promptly notify the Determining Body, to the extent requested by it, of all facts relevant to the Claim known to Indemnitee.  The Determining Body shall determine, and advise Indemnitee of its determination, whether indemnification is permissible within sixty (60) days of its receipt of all information and facts relevant to the Claim.

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(c)    Indemnitee shall be entitled to conduct the defense of the Claim and to make all decisions with respect thereto, with counsel of Indemnitee’s choice, provided that in the event the defense of the Claim has been assumed by the Corporation through its D&O Insurance carrier or otherwise, then (5) Indemnitee will be entitled to retain separate counsel from the Corporation’s Counsel (but not more than one law firm plus, if applicable, local counsel at the Corporation’s expense if, but only if, Indemnitee shall reasonably conclude that one or more legal defenses may be available to Indemnitee that are different from, or in addition to, those available to the Corporation or other defendants represented by the Corporation through its D&O Insurance carrier or otherwise), and (5) the Corporation will not, without the prior written consent of Indemnitee, effect any settlement of the Claim unless such settlement (x) includes an unconditional release of Indemnitee from all liability that is the subject matter of such Claim, (y) does not impose penalties or post-settlement obligations on Indemnitee (except for customary confidentiality obligations), and (z) does not require payment by Indemnitee of money in settlement.
(d)    To the extent Indemnitee is successful on the merits or otherwise in defense of any Claim, Indemnitee shall be indemnified against Expenses incurred by Indemnitee with respect to the Claim, regardless of whether Indemnitee has met the Standard of Conduct, and without the necessity of any determination by the Determining Body as to whether Indemnitee has met the Standard of Conduct.  In the event Indemnitee is not entirely successful on the merits or otherwise in defense of any Claim, but is successful on the merits or otherwise in defense of any claim, issue or matter involved in the Claim, Indemnitee shall be indemnified for the portion of Indemnitee’s Expenses incurred in such successful defense that is determined by the Determining Body to be reasonably and properly allocable to the claims, issues, or matters as to which Indemnitee was successful.
(e)    Except as otherwise provided in Section 5(d) and Section 5(j), the Corporation shall not indemnify any Indemnitee under Section 5(a) unless a determination has been made by the Determining Body (or by a court upon application or in a proceeding brought by Indemnitee under Section 6) with respect to a specific Claim that indemnification of Indemnitee is permissible because Indemnitee has met the Standard of Conduct.  In the event settlement of a Claim to which Indemnitee is a party has been proposed (“Proposed Settlement”), the Determining Body shall, promptly after submission to it but prior to consummation of the Proposed Settlement, make a determination whether Indemnitee shall have met the Standard of Conduct.  In the event such determination is adverse to Indemnitee, Indemnitee shall be entitled to reject the Proposed Settlement.  In the event of final disposition of a Claim other than by settlement, the Determining Body shall, promptly after but not before such final disposition, make a determination whether Indemnitee has met the Standard of Conduct.  In all cases, the determination shall be in writing and shall set forth in reasonable detail the basis and reasons therefor.  The Determining Body shall, promptly after making such determination, provide a copy thereof to both the Disbursing Officer and Indemnitee and shall instruct the former to (5) reimburse Indemnitee as soon as practicable for all Expenses, if any, to which Indemnitee has been so determined to be entitled and which have not previously been advanced to Indemnitee under Section 4 (or otherwise recovered by Indemnitee through an insurance or 

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other arrangement provided by the Corporation), and (5) seek reimbursement from Indemnitee (subject to Indemnitee's rights under Section 6) of all advancements that have been made pursuant to Section 4 as to which it has been so determined that Indemnitee is not entitled to be indemnified.
(f)    Indemnitee shall cooperate with the Determining Body at the expense of the Corporation by providing to the Determining Body, upon reasonable advance request, any documentation or information that is not privileged or otherwise protected from disclosure and that is reasonably available to Indemnitee and reasonably necessary to make such determination.
(g)    If the Determining Body makes a determination pursuant to Section 5(e) that Indemnitee is entitled to indemnification, the Corporation shall be bound by that determination in any judicial proceeding, absent a determination by a court that such indemnification contravenes applicable law.
(h)    In making a determination under Section 5(e), the Determining Body shall presume that the Standard of Conduct has been met unless the contrary shall be shown by a preponderance of the evidence.
(i)    The Corporation and Indemnitee shall keep confidential, to the extent permitted by law and their fiduciary obligations, all facts and determinations provided pursuant to or arising out of the operation of this Agreement, and the Corporation and Indemnitee shall instruct their respective agents to do likewise.
(j)    An Indemnitee shall be deemed to have met the Standard of Conduct, and therefore automatically entitled to indemnification without the need for a determination by a Determining Body, upon a determination by special legal counsel pursuant to La. R.S. 12:1-855B(2) that, with respect to the proceeding for which indemnification has been requested (or with respect to any Claim, issue or matter therein) the Indemnitee engaged in conduct for which liability has been eliminated under La. R.S. 12:1-832.
6.    Enforcement.
(a)    The rights provided by this Agreement shall be enforceable by Indemnitee in any court of competent jurisdiction.
(b)    If Indemnitee seeks a judicial adjudication of Indemnitee’s rights under, or to recover damages for breach of, this Agreement, Indemnitee shall be entitled to recover from the Corporation, and shall be indemnified by the Corporation against, any and all Expenses incurred by Indemnitee in connection with such proceeding, but only if Indemnitee prevails therein.  If it shall be determined that Indemnitee is entitled to receive part but not all of the relief sought, then Indemnitee shall be entitled to be reimbursed for all Expenses incurred by Indemnitee in connection with such proceeding if the indemnification amount to which Indemnitee is determined to be entitled exceeds 50% of the amount of Indemnitee’s claim.  Otherwise, the reimbursement of Expenses incurred by Indemnitee in connection with such judicial adjudication shall be appropriately prorated.

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(c)    In any judicial proceeding described in this Section 6, the Corporation shall bear the burden of proving that Indemnitee is not entitled to advancement or reimbursement of Expenses sought with respect to any Claim.
7.    Defined Terms.  Terms used but not defined herein shall have the meanings ascribed to them in Appendix A.
8.    Miscellaneous Provisions.  Miscellaneous provisions set forth in Appendix B shall apply to, and are a part of, this Agreement.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed and signed as of the date and year first above written.

GULF ISLAND FABRICATION, INC.

By:    
Name:    
Title:    

    
Name

APPENDIX A 
DEFINED TERMS
		
	1.
	Definitions.  As used in this Agreement:

(a)    The term “Change of Control” shall have the meaning ascribed to it in the Corporation’s 2015 Stock Incentive Plan.
(b)    The term “Claim” shall mean any threatened, pending or completed claim, action, suit, or proceeding, including discovery, whether civil, criminal, administrative, arbitrative or investigative and whether made judicially or extra-judicially, or any separate issue or matter therein, as the context requires, but shall not include any action, suit or proceeding initiated by Indemnitee against the Corporation  (other than to enforce the terms of this Agreement), or initiated by Indemnitee against any director or officer of the Corporation unless the Corporation has joined in or consented in writing to the initiation of such action, suit or proceeding.
(c)    The term “Determining Body” shall mean (5) the Board of Directors by a majority vote of all of the qualified directors if the Corporation has at least two (2) qualified directors, or by a majority of a committee of qualified directors appointed by such a vote (“Disinterested Directors”), (5) independent legal counsel (“Special Counsel”) (A) selected by the Disinterested Directors, or (B) if there are fewer than two Disinterested Directors, selected by the Board of Directors (in which selection directors who do not qualify as Disinterested Directors may participate), or (iii) the shareholders of the Corporation (except that shares owned by or voted under the control of directors who do not qualify as Disinterested Directors may not be voted); provided, however, that following a Change of Control, with respect to all matters thereafter arising out of acts, omissions or events occurring prior to or after the Change of Control concerning the rights of Indemnitee to seek indemnification, such determination shall be made by Special Counsel selected by the Board of Directors in the manner described above in this Appendix A-(c) (which selection shall not be unreasonably delayed or withheld) from a panel of three counsel nominated by Indemnitee.  Such counsel shall not have otherwise performed services for the Corporation, Indemnitee or their affiliates (other than services as Special Counsel in connection with similar matters) within the five years preceding its engagement.  If Indemnitee fails to nominate Special Counsel within ten business days following written request by the Corporation, the Board of Directors shall select Special Counsel.  Such counsel shall not be a person who, under the applicable standards of professional conduct then prevailing, would have a conflict of interest in representing either the Corporation or Indemnitee in an action to determine Indemnitee's rights under this Agreement, nor shall Special Counsel be any person who has been sanctioned or censured for ethical violations of applicable standards of professional conduct.  The Corporation agrees to pay the reasonable fees and costs of the Special Counsel referred to above and to fully indemnify such Special Counsel against any and all expenses, claims, liabilities and damages arising out of or relating to this Appendix A-(c) or its engagement pursuant hereto.  The Determining Body shall determine in accordance with Section 5 of the Indemnification Agreement whether and to what extent Indemnitee is entitled to be indemnified under this Agreement and shall render a written opinion to the Corporation and to Indemnitee to such effect.
(d)    The term "Disbursing Officer" shall mean, with respect to a Claim, the President of the Corporation or, if the President is a party to the Claim as to which advancement or indemnification is being sought, any officer who is not a party to the Claim and who is designated by the President, which designation shall be made promptly after the Corporation's receipt of Indemnitee's initial request for advancement or indemnification and communicated to Indemnitee.
(e)    The term “Expenses” shall mean any reasonable expenses or costs (including, without limitation, attorney’s fees, fees of experts retained by attorneys, judgments, punitive or exemplary damages, fines and amounts paid in settlement) actually and reasonably incurred by Indemnitee with respect to a Claim, except that Expenses shall not include any amount paid in settlement of a Claim against Indemnitee (5) by or in the right of the Corporation, or (5) that the Corporation has not approved, which approval will not be unreasonably delayed or withheld.
(f)    The term “Standard of Conduct” shall mean conduct by an Indemnitee with respect to which a Claim is asserted that (i) in the case of conduct in Indemnitee’s official capacity with the Corporation (i.e. as an officer or director, as applicable), was in good faith and that Indemnitee reasonably believed to be in, or not opposed to, the best interests of the Corporation, or (ii) in all other cases, that the conduct was not opposed to the best interests of the Corporation.  In the case of a criminal proceeding, the Standard of Conduct shall mean conduct that the Indemnitee had no reasonable cause to believe was unlawful.  The termination of any Claim by judgment, order, settlement, conviction, or upon a plea of nolo contendere or its equivalent, shall not, of itself, create a presumption that Indemnitee did not meet the Standard of Conduct.

APPENDIX B 
MISCELLANEOUS PROVISIONS
1.    Saving Clause.  If any provision of this Agreement is determined by a court having jurisdiction over the matter to require the Corporation to do or refrain from doing any act that is in violation of applicable law, the court shall be empowered to modify or reform such provision so that, as modified or reformed, such provision provides the maximum indemnification permitted by law and such provision, as so modified or reformed, and the balance of this Agreement, shall be applied in accordance with their terms.  Without limiting the generality of the foregoing, if any portion of this Agreement shall be invalidated on any ground, the Corporation shall nevertheless indemnify Indemnitee to the full extent permitted by any applicable portion of this Agreement that shall not have been invalidated and to the full extent permitted by law with respect to that portion that has been invalidated.
2.    Non-Exclusivity.  The indemnification and payment of Expenses provided by or granted pursuant to this Agreement shall not be deemed exclusive of any other rights to which Indemnitee is or may become entitled under any statute, article of incorporation, by-law, insurance policy, authorization of shareholders or directors, agreement or otherwise, including, without limitation, any rights authorized by the Determining Body in its discretion with respect to matters for which indemnification is permitted under La. R.S. 12:1-851.  The parties recognize that La R.S. 12:1-851 presently provides that no such other indemnification measure shall permit indemnification of any person with respect to conduct for which the person was adjudged liable on the basis of receiving a financial benefit to which he or she was not entitled, unless otherwise determined by a court.
3.    Subrogation.  In the event of any payment under this Agreement, the Corporation shall be subrogated to the extent of such payment to all of the rights of recovery of Indemnitee. Following receipt of indemnification payments hereunder, as further assurance, Indemnitee shall execute all papers reasonably required and, at the expense of the Corporation, take all action reasonably necessary to secure such subrogation rights, including execution of such documents as are reasonably necessary to enable the Corporation to bring suit to enforce such rights.
4.    Counterparts.  This Agreement may be executed in any number of counterparts, each of which shall constitute the original.
5.    Applicable Law.  This Agreement shall be governed by and construed in accordance with the laws of the State of Louisiana.
		
	6.
	Successors and Binding Agreement.

(a)    The Corporation shall require any successor (whether direct or indirect, by purchase, merger, consolidation, reorganization or otherwise) to all or substantially all the business or assets of the Corporation, by agreement in form and substance satisfactory to Indemnitee, expressly to assume and agree to perform this Agreement in the same manner and to the same extent the Corporation would be required to perform if no such succession had taken place.
(b)    Indemnitee’s right to indemnification and advancement of Expenses pursuant to this Agreement shall continue regardless of the termination of Indemnitee’s status as a director or officer of the Corporation, and this Agreement shall inure to the benefit of and be enforceable by Indemnitee’s personal or legal representatives, executors, administrators, spouses, heirs, assigns and other successors.
(c)    This Agreement is personal in nature and neither of the parties hereto shall, without the prior written consent of the other, assign or delegate this Agreement or any rights or obligations hereunder except as expressly provided in Sections 6(a) and 6(b) of Appendix B.
(d)    This Agreement shall be binding upon and inure to the benefit of and be enforceable by the parties hereto and their respective successors (including any direct or indirect successor by purchase, merger, consolidation, reorganization or otherwise to all or substantially all of the business or assets of the Corporation), permitted assigns, spouses, heirs, executors, administrators and personal and legal representatives.
7.    Amendment.  No amendment, modification, termination or cancellation of this Agreement shall be effective unless made in writing signed by the Corporation and Indemnitee.  Notwithstanding any amendment or modification to or termination or cancellation of this Agreement or any portion hereof, Indemnitee shall be entitled to indemnification in accordance with the provisions hereof with respect to any acts or omissions of Indemnitee which occur prior to such amendment, modification, termination or cancellation.
8.    Effective Date.  This Agreement is effective as of the Effective Date, supersedes in its entirety any prior indemnity or indemnification agreements between the Corporation and Indemnitee, and covers Claims based on acts, occurrences and omissions occurring at any time prior to, on or after the Effective Date.

-6-Exhibit 4.1

 

BUCKEYE PARTNERS, L.P.

 

Issuer

 

and

 

U.S. BANK NATIONAL ASSOCIATION

 

Trustee

 

ELEVENTH SUPPLEMENTAL INDENTURE

 

Dated as of November 7, 2016

 

To

 

INDENTURE

 

Dated as of July 10, 2003

 

3.95% NOTES DUE 2026

 

 

TABLE OF CONTENTS

 

	
 
    	
Page
    
	
 
    	
 
    
	
ARTICLE 1 Relation   to Indenture; Definitions
    	
2
    
	
SECTION 1.01.   Relation to Indenture
    	
2
    
	
SECTION 1.02.   Definitions
    	
2
    
	
SECTION 1.03.   General References
    	
2
    
	
 
    	
 
    
	
ARTICLE 2 The   Series of Securities
    	
2
    
	
SECTION 2.01.   The Form and Title of the Securities
    	
2
    
	
SECTION 2.02.   Amount
    	
2
    
	
SECTION 2.03.   Stated Maturity
    	
3
    
	
SECTION 2.04.   Interest and Interest Rates
    	
3
    
	
SECTION 2.05.   Place of Payment
    	
3
    
	
SECTION 2.06.   Optional Redemption
    	
3
    
	
SECTION 2.07.   Special Mandatory Redemption
    	
3
    
	
SECTION 2.08.   Defeasance and Discharge; Covenant Defeasance
    	
3
    
	
SECTION 2.09.   Global Securities
    	
3
    
	
 
    	
 
    
	
ARTICLE 3 Events   of Default
    	
4
    
	
SECTION 3.01.   Additional Event of Default
    	
4
    
	
 
    	
 
    
	
ARTICLE 4   Covenants
    	
4
    
	
SECTION 4.01.   Additional Covenant
    	
4
    
	
 
    	
 
    
	
ARTICLE 5   Miscellaneous
    	
5
    
	
SECTION 5.01.   Certain Trustee Matters
    	
5
    
	
SECTION 5.02.   Continued Effect
    	
5
    
	
SECTION 5.03.   Governing Law
    	
5
    
	
SECTION 5.04.   Counterparts
    	
5
    
	
 
    	
 
    
	
EXHIBITS
    	
 
    
	
 
    	
 
    
	
Exhibit A: Form of   Note
    	
 
    

 

 

ELEVENTH SUPPLEMENTAL INDENTURE, dated as of November 7, 2016 (this “Eleventh Supplemental Indenture”), between BUCKEYE PARTNERS, L.P., a Delaware limited partnership (the “Partnership”), having its principal office at 1 Greenway Plaza, Suite 600, Houston, Texas 77056, and U.S. BANK NATIONAL ASSOCIATION, a national banking association organized and existing under the laws of the United States of America (as successor-in-interest to SUNTRUST BANK), as trustee under the Indenture referred to below (in such capacity, the “Trustee”).

 

RECITALS OF THE PARTNERSHIP

 

WHEREAS, the Partnership and the Trustee have heretofore entered into an Indenture, dated as of July 10, 2003 (the “Original Indenture”), as amended and supplemented by the First Supplemental Indenture thereto dated as of July 10, 2003 (the “First Supplemental Indenture”), the Second Supplemental Indenture thereto dated as of August 19, 2003 (the “Second Supplemental Indenture”), the Third Supplemental Indenture thereto dated as of October 12, 2004 (the “Third Supplemental Indenture”). the Fourth Supplemental Indenture thereto dated as of June 30, 2005 (the “Fourth Supplemental Indenture”), the Fifth Supplemental Indenture thereto dated as of January 11, 2008 (the “Fifth Supplemental Indenture”), the Sixth Supplemental Indenture thereto dated as of August 18, 2009 (the “Sixth Supplemental Indenture”), the Seventh Supplemental Indenture thereto dated as of January 13, 2011 (the “Seventh Supplemental Indenture”), the Eighth Supplemental Indenture thereto dated as of June 10, 2013 (the “Eighth Supplemental Indenture”), the Ninth Supplemental Indenture thereto dated as of November 14, 2013 (the “Ninth Supplemental Indenture”) and the Tenth Supplemental Indenture thereto dated as of September 12, 2014 (the “Tenth Supplemental Indenture”) (the Original Indenture, as supplemented from time to time, including without limitation pursuant to the First Supplemental Indenture, the Second Supplemental Indenture, the Third Supplemental Indenture, the Fourth Supplemental Indenture, the Fifth Supplemental Indenture, the Sixth Supplemental Indenture, the Seventh Supplemental Indenture, the Eighth Supplemental Indenture, the Ninth Supplemental Indenture, the Tenth Supplemental Indenture and this Eleventh Supplemental Indenture, being referred to herein as the “Indenture”); and

 

WHEREAS, under the Original Indenture, a new series of Securities may at any time be established by the Board of Directors of Buckeye GP LLC, the Partnership’s general partner (the “General Partner”), in accordance with the provisions of the Original Indenture, and the terms of such series may be established by a supplemental indenture executed by the General Partner on behalf of the Partnership and by the Trustee; and

 

WHEREAS, the Partnership proposes to create under the Indenture a new series of Securities; and

 

WHEREAS, all acts and things necessary to make the Notes (as herein defined), when executed by the General Partner on behalf of the Partnership and authenticated and delivered by the Trustee as provided in the Original Indenture and this Eleventh Supplemental Indenture, the valid and binding obligations of the Partnership and to make this Eleventh Supplemental Indenture a valid and binding agreement in accordance with the Original Indenture have been done or performed;

 

NOW, THEREFORE, in consideration of the premises, agreements and obligations set forth herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree, for the equal and proportionate benefit of all Holders of the Notes, as follows:

 

 

ARTICLE 1
 RELATION TO INDENTURE; DEFINITIONS

 

SECTION 1.01.  Relation to Indenture.

 

With respect to the Notes, this Eleventh Supplemental Indenture constitutes an integral part of the Indenture.

 

SECTION 1.02.  Definitions.

 

For all purposes of this Eleventh Supplemental Indenture, capitalized terms used herein and not otherwise defined herein shall have the meanings assigned thereto in the Original Indenture.

 

SECTION 1.03.  General References.

 

All references in this Eleventh Supplemental Indenture to Articles and Sections, unless otherwise specified, refer to the corresponding Articles and Sections of this Eleventh Supplemental Indenture; and the term “herein”, “hereof”, “hereunder” and any other word of similar import refers to this Eleventh Supplemental Indenture.

 

ARTICLE 2
 THE SERIES OF SECURITIES

 

SECTION 2.01.  The Form and Title of the Securities.

 

There is hereby established a new series of Securities to be issued under the Indenture and to be designated as the Partnership’s 3.95% Notes due 2026 (the “Notes”).  The Notes shall be substantially in the form attached hereto as Exhibit A, with such appropriate insertions, omissions, substitutions and other variations as are required or permitted by the Indenture, and may have such letters, numbers or other marks of identification and such legends or endorsements placed thereon as the Partnership may deem appropriate or as may be required or appropriate to comply with any laws or with any rules made pursuant thereto or with the rules of any securities exchange or automated quotation system on which the Notes may be listed or traded, or to conform to general usage, or as may, consistently with the Indenture, be determined by the officers executing such Notes, as evidenced by their execution thereof.

 

The Notes shall be executed, authenticated and delivered in accordance with the provisions of, and shall in all respects be subject to, the terms, conditions and covenants of the Original Indenture as supplemented by this Eleventh Supplemental Indenture (including the form of Note set forth hereto as Exhibit A (the terms of which are incorporated in and made a part of this Eleventh Supplemental Indenture for all intents and purposes)).

 

SECTION 2.02.  Amount.

 

The aggregate principal amount of the Notes which may be authenticated and delivered pursuant hereto is unlimited.  The Trustee shall initially authenticate and deliver the Notes for original issue in an initial aggregate principal amount of up to $600,000,000, upon delivery to the Trustee of a Partnership Order for the authentication and delivery of such Notes.  The aggregate principal amount of the Notes to be issued hereunder may be increased at any time hereafter and the series may be reopened for issuances of additional Notes, upon Partnership Order without the consent of any Holder.  The Notes issued on the date hereof and any such additional Notes that may be issued hereafter shall be part of the same series of Securities for all purposes under the Indenture.

 

2

 

SECTION 2.03.  Stated Maturity.

 

The Notes may be issued on any Business Day on or after November 7, 2016, and the Stated Maturity of the Notes shall be December 1, 2026.

 

SECTION 2.04.  Interest and Interest Rates.

 

The rate or rates at which the Notes shall bear interest, the date or dates from which such interest shall accrue, the Interest Payment Dates on which any such interest shall be payable and the Regular Record Date for any interest payable on any Interest Payment Date, in each case, shall be as set forth in the form of Note set forth as Exhibit A hereto.

 

SECTION 2.05.  Place of Payment.

 

As long as any Notes are outstanding, the Partnership shall maintain an office or agency in the Borough of Manhattan, The City of New York, where the Notes may be presented for payment.

 

SECTION 2.06.  Optional Redemption.

 

At its option, the Partnership may redeem the Notes, in whole or in part, in principal amounts of $1,000 or any integral multiple thereof, at any time or from time to time prior to the date that is three months prior to maturity, at the applicable redemption price determined as set forth in the form of Note attached hereto as Exhibit A, in accordance with the terms set forth in the Notes and in accordance with Article XI of the Original Indenture.

 

At any time on or after the date that is three months prior to maturity, the Partnership may redeem the Notes, in whole or from time to time in part, at its option, at a redemption price equal to one hundred percent (100%) of the principal amount of the Notes to be redeemed on that redemption date plus accrued and unpaid interest thereon to, but excluding, the date of redemption.

 

SECTION 2.07.  Special Mandatory Redemption.

 

Upon the occurrence of certain events specified in the form of Note attached hereto as Exhibit A, the Partnership will become obligated to redeem all of the issued and outstanding Notes as a whole, at the Redemption Price set forth in the form of Note in accordance with the terms set forth in the Notes, and, to the extent not inconsistent with such terms, in accordance with Article XI of the Original Indenture.

 

SECTION 2.08.  Defeasance and Discharge; Covenant Defeasance.

 

Article XIII of the Original Indenture shall apply to the Notes.

 

SECTION 2.09.  Global Securities.

 

The Notes shall initially be issuable in whole or in part in the form of one or more Global Securities.  Such Global Securities (i)  shall be deposited with, or on behalf of, the Depository Trust Company, New York, New York, which shall act as Depositary with respect to the Notes, (ii) shall bear the legends applicable to Global Securities set forth in Sections 2.02 and 2.04 of the Original Indenture, (iii) may be exchanged in whole or in part for Securities in definitive form upon the terms and subject to the conditions provided in Section 3.05 of the Original Indenture and in this Eleventh Supplemental Indenture and (iv) shall otherwise be subject to the applicable provisions of the Indenture.

 

3

 

ARTICLE 3
 EVENTS OF DEFAULT

 

SECTION 3.01.  Additional Event of Default.

 

With respect to the Notes, the occurrence of any of the following events shall, in addition to the other events or circumstances described as Events of Default in Section 5.01 of the Original Indenture, constitute an Event of Default: default under any mortgage, indenture or instrument under which there may be issued or by which there may be secured or evidenced any Indebtedness of the Partnership or any of its Subsidiaries (or the payment of which is guaranteed by the Partnership or any of its Subsidiaries), whether such Indebtedness or guarantee now exists or is created after the date of issuance of any Notes, if (a) that default (x) is caused by a failure to pay principal of or premium, if any, or interest on such Indebtedness prior to the expiration of any grace period provided in such Indebtedness (a “Payment Default”), or (y) results in the acceleration of the maturity of such Indebtedness to a date prior to its originally stated maturity, and, (b) in each case described in clauses (x) or (y) above, the principal amount of any such Indebtedness, together with the principal amount of any other such Indebtedness under which there has been a Payment Default or the maturity of which has been so accelerated, aggregates $50,000,000 or more.

 

ARTICLE 4
 COVENANTS

 

SECTION 4.01.  Additional Covenant.

 

The covenant contained in this Section 4.01 shall apply to the Notes only and not to any other series of Securities issued under the Indenture, and is being included solely for the benefit of the Notes and the Holders thereof.  This covenant shall be effective only for so long as there remain Outstanding any Notes.

 

SEC Reports; Financial Statements.

 

(1)                                 Whether or not the Partnership is then subject to the reporting requirements of Section 13 or 15(d) of the Exchange Act, from and after the Issue Date of the Notes, the Partnership shall electronically file with the Commission, so long as the Notes are Outstanding, the annual, quarterly and other periodic reports that the Partnership is required to file (or would otherwise be required to file) with the Commission pursuant to Sections 13 and 15(d) of the Exchange Act, and such documents shall be filed with the Commission on or prior to the respective dates (the “Required Filing Dates”) by which the Partnership is required to file (or would otherwise be required to file) such documents, unless, in each case, such filings are not then permitted by the Commission.

 

(2)                                 If such filings are not then permitted by the Commission, or such filings are not generally available on the Internet free of charge, from and after the Issue Date of the Notes, the Partnership shall provide the Trustee with, and the Trustee, at the Partnership’s expense, will mail to any Holder of Notes requesting in writing to the Trustee copies of, such annual, quarterly and other periodic report specified in Sections 13 and 15(d) of the Exchange Act within 15 days after its Required Filing Date; provided, however, the Trustee shall have no liability whatsoever with respect to the mailing and delivery of such reports to the Holders.

 

(3)                                 The Partnership shall provide the Trustee with a sufficient number of copies of all reports and other documents and information that the Trustee may be required to deliver to Holders of Notes under clause (2) of this Section 4.01, along with written notice from the Partnership to the Trustee of the Required Filing Date for such documents.

 

4

 

(4)                                 Delivery of such reports, information and documents to the Trustee is for informational purposes only and the Trustee’s receipt of such shall not constitute constructive notice of any information contained therein or determinable from information contained therein, including the Partnership’s compliance with any of its covenants hereunder (as to which the Trustee is entitled to rely exclusively on Officers’ Certificates).

 

ARTICLE 5
 MISCELLANEOUS

 

SECTION 5.01.  Certain Trustee Matters.

 

The recitals contained herein shall be taken as the statements of the Partnership, and the Trustee assumes no responsibility for their correctness.

 

The Trustee makes no representations as to the validity or sufficiency of this Eleventh Supplemental Indenture or the Notes or the proper authorization or the due execution hereof or thereof by the Partnership.

 

Except as expressly set forth herein, nothing in this Eleventh Supplemental Indenture shall alter the duties, rights or obligations of the Trustee set forth in the Original Indenture.

 

The Trustee makes no representation or warranty as to the validity or sufficiency of the information contained in the prospectus supplement related to the Notes, except such information which specifically pertains to the Trustee itself, or any information incorporated therein by reference.

 

SECTION 5.02.  Continued Effect.

 

Except as expressly supplemented and amended by this Eleventh Supplemental Indenture, the Original Indenture (as supplemented and amended by the First Supplemental Indenture, the Second Supplemental Indenture, the Third Supplemental Indenture, the Fourth Supplemental Indenture, the Fifth Supplemental Indenture, the Sixth Supplemental Indenture, the Seventh Supplemental Indenture, the Eighth Supplemental Indenture, the Ninth Supplemental Indenture and the Tenth Supplemental Indenture) shall continue in full force and effect in accordance with the provisions thereof, and the Original Indenture (as supplemented and amended by the First Supplemental Indenture, the Second Supplemental Indenture, the Third Supplemental Indenture, the Fourth Supplemental Indenture, the Fifth Supplemental Indenture, the Sixth Supplemental Indenture, the Seventh Supplemental Indenture, the Eighth Supplemental Indenture, the Ninth Supplemental Indenture, the Tenth Supplemental Indenture and this Eleventh Supplemental Indenture) is in all respects hereby ratified and confirmed.  This Eleventh Supplemental Indenture and all its provisions shall be deemed a part of the Original Indenture in the manner and to the extent herein and therein provided.

 

SECTION 5.03.  Governing Law.

 

This Eleventh Supplemental Indenture and the Notes shall be governed by and construed in accordance with the laws of the State of New York.

 

SECTION 5.04.  Counterparts.

 

This instrument may be executed in any number of counterparts, each of which shall be deemed to be an original, but all such counterparts shall together constitute but one and the same instrument.

 

[Remainder of Page Intentionally Left Blank]

 

5

 

IN WITNESS WHEREOF, the parties hereto have caused this Eleventh Supplemental Indenture to be duly executed and delivered, all as of the day and year first above written.

 

	
 
    	
BUCKEYE PARTNERS, L.P.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
BUCKEYE GP LLC
    
	
 
    	
 
    	
its General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Keith E. St. Clair
    
	
 
    	
Name:
    	
Keith E. St. Clair
    
	
 
    	
Title:
    	
Executive Vice   President and Chief Financial Officer
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
U.S. BANK NATIONAL   ASSOCIATION,
    
	
 
    	
as Trustee
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Jack Ellerin
    
	
 
    	
Name:
    	
Jack Ellerin
    
	
 
    	
Title:
    	
Authorized Officer
    

 

Signature Page to Eleventh Supplemental Indenture

 

 

EXHIBIT A

 

[FORM OF FACE OF NOTE]

 

[If a Global Security, insert—THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A NOMINEE THEREOF.  THIS SECURITY MAY NOT BE TRANSFERRED TO, OR REGISTERED OR EXCHANGED FOR SECURITIES REGISTERED IN THE NAME OF, ANY PERSON OTHER THAN THE DEPOSITARY OR A NOMINEE THEREOF AND NO SUCH TRANSFER MAY BE REGISTERED, EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE.  EVERY SECURITY AUTHENTICATED AND DELIVERED UPON REGISTRATION OF TRANSFER OF, OR IN EXCHANGE FOR OR IN LIEU OF, THIS SECURITY SHALL BE A GLOBAL SECURITY SUBJECT TO THE FOREGOING, EXCEPT IN SUCH LIMITED CIRCUMSTANCES.

 

UNLESS THIS SECURITY IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION, TO THE PARTNERSHIP OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY SECURITY ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.]

 

BUCKEYE PARTNERS, L.P.

 

3.95% Notes due 2026

 

	
No.    
    	
 
    	
U.S.$               
    
	
CUSIP No. 118230 AQ4
    	
 
    	
 
    

 

BUCKEYE PARTNERS, L.P., a Delaware limited partnership (herein called the “Partnership”, which term includes any successor Person under the Indenture hereinafter referred to), for value received, hereby promises to pay to CEDE & CO., or registered assigns, the principal sum of         HUNDRED MILLION United States Dollars on December 1, 2026, and to pay interest thereon from November 7, 2016, or from the most recent Interest Payment Date to which interest has been paid or duly provided for, semi-annually on June 1 and December 1 in each year, commencing on June 1, 2017 at the rate of 3.95% per annum, until the principal hereof is paid or made available for payment and at the rate of 3.95% per annum on any overdue principal and premium and on any overdue installment of interest.  The amount of interest payable for any period shall be computed on the basis of twelve 30-day months and a 360-day year.  The amount of interest payable for any partial period shall be computed on the basis of a 360-day year of twelve 30-day months and the days elapsed in any partial month.  In the event that any date on which interest is payable on this Security is not a Business Day, then a payment of the interest payable on such date will be made on the next succeeding day which is a Business Day (and without any interest or other payment in respect of any such delay) with the same force and effect as if made on the date the payment was originally payable.  A “Business Day” shall mean, when used with respect to any Place of Payment, each Monday, Tuesday, Wednesday, Thursday and Friday which is not a day on which banking institutions in that Place of Payment are authorized or obligated by law, executive order or regulation to close.  The interest so payable, and punctually paid or duly provided for, on any Interest Payment Date will, as provided in such Indenture, be paid to the Person in whose name this Security (or one or more Predecessor Securities) is registered at the close of business on the “Regular Record Date” for such interest, which shall be the May 15 or November 15 (whether or not a Business Day), as the case may be, next preceding such Interest Payment Date.  Any such interest not so punctually paid or duly provided for shall forthwith cease to be payable to the Holder on such Regular Record Date and may either be paid to the Person in whose name this Security (or one or more Predecessor Securities) is registered at the close of business on a Special Record Date for the payment of such Defaulted Interest to be fixed by the Trustee, notice of which shall be given to Holders of Securities of this series not less than 10 days prior to such Special Record Date, or be paid at any time in any other lawful manner not inconsistent with the requirements of any securities exchange or automated quotation system on which the Securities of this series may be listed or traded, and upon such notice as may be required by such exchange or automated quotation system, all as more fully provided in such Indenture.

 

 

[If a Global Security, insert—Payment of the principal of (and premium, if any) and any such interest on this Security will be made by transfer of immediately available funds to a bank account in the United States of America designated by the Holder in such coin or currency of the United States of America as at the time of payment is legal tender for payment of public and private debts.]

 

[If a Definitive Security, insert—Payment of the principal of (and premium, if any) and any such interest on this Security will be made at the office or agency of the Partnership maintained for that purpose in the Borough of Manhattan, the City and State of New York, in such coin or currency of the United States of America as at the time of payment is legal tender for payment of public and private debts or subject to any laws or regulations applicable thereto and to the right of the Partnership (as provided in the Indenture) to rescind the designation of any such Paying Agent, at the offices of                   in the Borough of Manhattan, The City and State of New York, and at such other offices or agencies as the Partnership may designate, by United States Dollar check drawn on, or transfer to a United States Dollar account maintained by the payee with, a bank in The City of New York (so long as the applicable Paying Agent has received proper transfer instructions in writing at least 10 days prior to the payment date); provided, however, that payment of interest may be made at the option of the Partnership by United States Dollar check mailed to the addresses of the Persons entitled thereto as such addresses shall appear in the Security Register or by transfer to a United States Dollar account maintained by the payee with a bank in The City of New York (so long as the applicable Paying Agent has received proper transfer instructions in writing by the Record Date prior to the applicable Interest Payment Date).]

 

Reference is hereby made to the further provisions of this Security set forth on the reverse hereof, which further provisions shall for all purposes have the same effect as if set forth at this place.

 

Unless the certificate of authentication hereon has been executed by the Trustee referred to on the reverse hereof by manual signature, this Security shall not be entitled to any benefit under the Indenture or be valid or obligatory for any purpose.

 

IN WITNESS WHEREOF, the Partnership has caused this instrument to be duly executed.

 

	
Dated:                 ,    
    
	
 
    	
BUCKEYE   PARTNERS, L.P.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
BUCKEYE   GP LLC
    
	
 
    	
 
    	
its General Partner
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    

 

This is one of the Securities of the series designated therein referred to in the within-mentioned Indenture.

 

	
U.S.   BANK NATIONAL ASSOCIATION,
    
	
as   Trustee
    
	
 
    	
 
    
	
By:
    	
 
    	
 
    
	
Authorized   Signatory
    	
 
    

 

 

[REVERSE OF NOTE]

 

BUCKEYE PARTNERS, L.P.

 

3.95% Notes due 2026

 

This Security is one of a duly authorized issue of securities of the Partnership (the “Securities”) , issued and to be issued in one or more series under an Indenture dated as of July 10, 2003, as amended and supplemented by the First Supplemental Indenture thereto dated as of July 10, 2003, as further amended and supplemented by the Second Supplemental Indenture thereto dated as of August 19, 2003, as further amended and supplemented by the Third Supplemental Indenture thereto dated as of October 12, 2004, as further amended and supplemented by the Fourth Supplemental Indenture thereto dated as of June 30, 2005, as further amended and supplemented by the Fifth Supplemental Indenture thereto dated as of January 11, 2008, as further amended and supplemented by the Sixth Supplemental Indenture thereto dated as of August 18, 2009, as further amended and supplemented by the Seventh Supplemental Indenture thereto dated as of January 13, 2011, as further amended and supplemented by the Eighth Supplemental Indenture thereto dated as of June 10, 2013, as further amended and supplemented by the Ninth Supplemental Indenture thereto dated as of November 14, 2013, as further amended and supplemented by the Tenth Supplemental Indenture thereto dated as of September 12, 2014 and as further amended and supplemented by the Eleventh Supplemental Indenture thereto dated as of November 7, 2016 (such Indenture, as so amended and supplemented being referred to herein as the “Indenture”), between the Partnership and U.S. Bank National Association, a national banking association organized and existing under the laws of the United States of America (as successor-in-interest to SunTrust Bank), as Trustee (the “Trustee,” which term includes any successor trustee under the Indenture), to which Indenture and all indentures supplemental thereto reference is hereby made for a statement of the respective rights, limitations of rights, obligations, duties and immunities thereunder of the Partnership, the Trustee and the Holders of the Securities and of the terms upon which the Securities are, and are to be, authenticated and delivered. This Security is one of the series designated on the face hereof

 

Upon the occurrence of the earlier of the following two events (each, a “Special Mandatory Redemption Trigger Event”): (1) July 1, 2017, if the VTTI Acquisition has not been consummated prior to such date, or (2) the termination of the SPA, the Partnership shall redeem this Security (the “Special Mandatory Redemption”) at a redemption price equal to 101% of the principal amount of this Security, plus accrued and unpaid interest to, but excluding, the redemption date. Within ten days of the occurrence of the Special Mandatory Redemption Trigger Event, notice of the Special Mandatory Redemption will be mailed to the Holder of this Security at its registered address, stating that a Special Mandatory Redemption Trigger Event has occurred and that this Security will be redeemed on the redemption date set forth in such notice (which will be no earlier than 15 days and no later than 30 days from the date such notice is mailed).

 

‘‘SPA’’ means the share purchase agreement, dated October 24, 2016, by and between the Partnership and VIP Terminals Finance B.V.

 

‘‘VTTI Acquisition’’ means the Partnership’s acquisition of 50% of the outstanding share capital of VIP Terminals Holding B.V., which owns all of the outstanding share capital of VTTI B.V., for approximately $1.15 billion.

 

This Security is redeemable, in whole or in part, at the Partnership’s option at any time prior to the Par Call Date at a redemption price equal to the greater of (a) 100% of the principal amount of this Security, and (b) as determined by the Quotation Agent (as defined below), the sum of the present values of the remaining scheduled payments of principal and interest on this Security that would have been due if this Security matured on the Par Call Date (exclusive of interest accrued but unpaid to, but excluding, the date of redemption) discounted to the date of redemption on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the Adjusted Treasury Rate (as defined below) plus 35 basis points, plus accrued and unpaid interest, if any, on the principal amount being redeemed to, but excluding, the date of redemption.

 

At any time on or after the Par Call Date, this Security is redeemable, in whole or in part, at the Partnership’s option at par plus accrued and unpaid interest thereon to, but excluding, the date of redemption.

 

For purposes of determining any redemption price, the following definitions shall apply:

 

 

“Adjusted Treasury Rate” means, with respect to any date of redemption, the rate per annum equal to the semi-annual equivalent yield to maturity of the Comparable Treasury Issue (as defined below), assuming a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the Comparable Treasury Price (as defined below) for the date of redemption.

 

“Comparable Treasury Issue” means the United States Treasury security selected by the Quotation Agent as having a maturity comparable to the remaining term of this Security, determined as if this Security matured on the Par Call Date (the “Remaining Life”), that would be utilized, at the time of selection and in accordance with customary financial practice, in pricing new issues of corporate debt securities of comparable maturity to the Remaining Life of this Security.

 

“Comparable Treasury Price” means, with respect to any date of redemption, (a) the average of the Reference Treasury Dealer Quotations (as defined below) for the date of redemption, after excluding the highest and lowest Reference Treasury Dealer Quotations, or (b) if the Trustee obtains fewer than three Reference Treasury Dealer Quotations, the average of all such Reference Treasury Dealer Quotations.

 

“Par Call Date” means September 1, 2026 (the date that is three months prior to the maturity date of this Security).

 

“Primary Treasury Dealer” means a primary U.S. Government securities dealer in New York City.

 

“Quotation Agent” means Barclays Capital Inc. or another Reference Treasury Dealer (as defined below) appointed by the Partnership.

 

“Reference Treasury Dealer” means each of (a) Barclays Capital Inc., J.P. Morgan Securities LLC and Wells Fargo Securities, LLC, or an affiliate or successor of the foregoing; (b) a Primary Treasury Dealer selected by SunTrust Robinson Humphrey, Inc.; provided, however, that if the foregoing shall cease to be a Primary Treasury Dealer, the Partnership shall substitute therefor another Primary Treasury Dealer; and (c) any other Primary Treasury Dealer selected by the Partnership.

 

“Reference Treasury Dealer Quotations” means, with respect to each Reference Treasury Dealer and any date of redemption, the average, as determined by the Trustee, of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount) quoted in writing to the Trustee by that Reference Treasury Dealer at 5:00 p.m., New York City time, on the third business day preceding that date of redemption.

 

Unless the Partnership defaults in payment of the redemption price, on and after the date of redemption, interest will cease to accrue on this Security or the portions hereof called for redemption.

 

In the event of redemption of this Security in part only, a new Security or Securities of this series and of like tenor for the unredeemed portion hereof will be issued in the name of the Holder hereof upon the cancellation hereof.

 

The Indenture contains provisions for defeasance at any time of (1) the entire indebtedness of this Security or (2) certain restrictive covenants and Events of Default with respect to this Security, in each case upon compliance with certain conditions set forth in the Indenture.

 

If an Event of Default with respect to Securities of this series shall occur and be continuing, the principal of the Securities of this series may be declared due and payable in the manner and with the effect provided in the Indenture.

 

The Indenture permits, with certain exceptions as therein provided, the amendment thereof and the modification of the rights and obligations of the Partnership and the rights of the Holders of the Securities of each series to be affected under the Indenture at any time by the Partnership and the Trustee with the consent of not less than the Holders of a majority in aggregate principal amount of the Outstanding Securities of all series to be affected (voting as one class).  The Indenture also contains provisions permitting the Holders of a majority in aggregate principal amount of the Outstanding Securities of all affected series (voting as one class), on behalf of the Holders of all Securities of such series, to waive compliance by the Partnership with certain provisions of the Indenture.

 

 

The Indenture permits, with certain exceptions as therein provided, the Holders of a majority in principal amount of Securities of any series then Outstanding to waive past defaults under the Indenture with respect to such series and their consequences.  Any such consent or waiver by the Holder of this Security shall be conclusive and binding upon such Holder and all holders of Securities of which this Security is a Predecessor Security, whether or not notation of such consent or waiver is made upon this or any other Security.

 

As provided in and subject to the provisions of the Indenture, the Holder of this Security shall not have the right to institute any proceeding with respect to the Indenture or for the appointment of a receiver or trustee or for any other remedy thereunder, unless such Holder shall have previously given the Trustee written notice of a continuing Event of Default with respect to the Securities of this series, the Holders of not less than a majority in principal amount of the Securities of this series at the time Outstanding shall have made written request to the Trustee to institute proceedings in respect of such Event of Default as Trustee and offered the Trustee indemnity satisfactory to the Trustee and the Trustee shall not have received from the Holders of a majority in principal amount of Securities of this series at the time Outstanding a direction inconsistent with such request, and shall have failed to institute any such proceeding, for 60 days after receipt of such notice, request and offer of indemnity.  The foregoing shall not apply to any suit instituted by the Holder of this Security for the enforcement of any payment of principal hereof or any premium or interest hereon on or after the respective due dates expressed herein.

 

No reference herein to the Indenture and no provision of this Security or of the Indenture shall alter or impair the obligation of the Partnership, which is absolute and unconditional, to pay the principal of and any premium and interest on this Security at the times, place(s) and rate, and in the coin or currency, herein prescribed.

 

[If a Global Security, insert—This Global Security or portion hereof may not be exchanged for Definitive Securities of this series except in the limited circumstances provided in the Indenture.

 

The holders of beneficial interests in this Global Security will not be entitled to receive physical delivery of Definitive Securities except as described in the Indenture and will not be considered the Holders thereof for any purpose under the Indenture.]

 

[If a Definitive Security, insert—As provided in the Indenture and subject to certain limitations therein set forth, the transfer of this Security is registerable in the Security Register, upon surrender of this Security for registration of transfer at the office or agency of the Partnership in The City of New York, or, subject to any laws or regulations applicable thereto and to the right of the Partnership (limited as provided in the Indenture) to rescind the designation of any such transfer agent, at the offices of                   in the Borough of Manhattan, The City of New York, and at such other offices or agencies as the Partnership may designate, duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the Partnership and the Security Registrar duly executed by, the Holder hereof or his attorney duly authorized in writing, and thereupon one or more new Securities of this series and of like tenor, of authorized denominations and for the same aggregate principal amount, will be issued to the designated transferee or transferees.]

 

The Securities of this series are issuable only in registered form without coupons in denominations of $1,000 and any integral multiple thereof.  As provided in the Indenture and subject to certain limitations therein set forth, Securities of this series are exchangeable for a like aggregate principal amount of Securities of this series and of like tenor of a different authorized denomination, as requested by the Holder surrendering the same.

 

No service charge shall be made for any such registration of transfer or exchange, but the Partnership may require payment of a sum sufficient to cover any tax or other governmental charge payable in connection therewith.

 

Prior to due presentment of this Security for registration of transfer, the Partnership, the Trustee and any agent of the Partnership or the Trustee may treat the Person in whose name this Security is registered as the owner hereof for all purposes, whether or not this Security is overdue, and neither the Partnership, the Trustee nor any such agent shall be affected by notice to the contrary.

 

Obligations of the Partnership under the Indenture and the Securities thereunder, including this Security, are non-recourse to Buckeye GP LLC (the “General Partner”) and its Affiliates (other than the Partnership), and payable only out of cash flow and assets of the Partnership.  The Trustee, and each Holder of a Security by its acceptance hereof, will be deemed to have agreed in the Indenture that (1) neither the General Partner nor its assets (nor any of its Affiliates, other than the Partnership, or their respective assets) shall be liable for any of the obligations of the Partnership under the Indenture or such Securities,

 

 

including this Security, and (2) no director, officer, employee, stockholder or unitholder, as such, of the Partnership, the Trustee, the General Partner or any Affiliate of any of the foregoing entities shall have any personal liability in respect of the obligations of the Partnership under the Indenture or such Securities by reason of his, her or its status.

 

This Security shall be governed by and construed in accordance with the laws of the State of New York.

 

All terms used in this Security which are defined in the Indenture shall have the meanings assigned to them in the Indenture.

 

 

[If a Definitive Security, insert as a separate page—

 

FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s) unto                                       (Please Print or Typewrite Name and Address of Assignee) the within instrument of BUCKEYE PARTNERS, L.P. and does hereby irrevocably constitute and appoint                          Attorney to transfer said instrument on the books of the within-named Partnership, with full power of substitution in the premises.

 

 

	
Please Insert Social   Security or 
   Other Identifying Number of Assignee:
    	
 
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    
	
Dated:
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
(Signature)
    
	
 
    	
 
    
	
 
    
	
Signature Guarantee:
    	
 
    
	
(Participant in a Recognized Signature
    
	
Guaranty Medallion Program)
    
					

 

NOTICE:  The signature to this assignment must correspond with the name as written upon the face of the within instrument in every particular, without alteration or enlargement or any change whatever.]

 

 

[If a Global Security, insert as a separate page—

 

SCHEDULE OF INCREASES OR DECREASES
 IN GLOBAL SECURITY

 

The following increases or decreases in this Global Security have been made:

 

	
Date of Exchange
    	
 
    	
Amount of
   Decrease in
   Principal
   Amount of this
   Global Security
    	
 
    	
Amount of
   Increase in
   Principal Amount
   of this
   Global Security
    	
 
    	
Principal Amount
   of this Global
   Security following
   such decrease
   (or increase)
    	
 
    	
Signature of
   authorized officer
   of Trustee or
   Depositary]

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