Document:

EXHIBIT 10.4

                                 REVOLVING NOTE
                                 --------------

$45,000,000.00                                              Dated:  July 1, 2006
Indianapolis, Indiana                                       Due:   June 30, 2008

         FOR VALUE RECEIVED, on or before July 1, 2008, INDIAN-MARTIN, INC., a
corporation organized and existing under the laws of the State of Nevada
("Company"), unconditionally promises to pay to the order of JPMORGAN CHASE
BANK, N.A., successor by merger to BANK ONE, NATIONAL ASSOCIATION, a national
banking association ("Bank"), at Bank One Tower, Mail Code IN 1-0046, 111
Monument Circle, Indianapolis, Indiana 46277, or such other place as Bank may
designate by written notice to Company, the principal sum of Forty-five Million
and 00/100 Dollars ($45,000,000.00), or so much of such amount as may be
disbursed by Bank as Advances made on the Loan under the terms of the Credit
Agreement (as hereinafter defined), together with interest thereon at the rates
and calculated as provided in the Credit Agreement. Interest accruing on the
principal balance of this Note outstanding from time to time shall be due and
payable by Company in accordance with the terms of the Credit Agreement on such
dates as are established therein. All amounts paid on this Note shall be applied
in accordance with the terms of the Credit Agreement.

         This Note is the "Note" referred to in the Credit Agreement, to which
reference is made for the conditions and procedures under which Advances,
payments, readvances and repayments may be made prior to the maturity of this
Note, for the terms upon which Company may make prepayments from time to time
and at any time prior to the maturity of this Note and the terms of any
prepayment premiums, penalties and other charges which may be due and payable in
connection therewith, and for the terms and conditions upon which the maturity
of this Note may be accelerated and the unpaid balance of principal and accrued
interest thereon declared immediately due and payable.

         If any installment of principal or interest due under the terms of this
Note prior to maturity is not paid in full within ten (10) days of the date when
due, then Bank at its option and without prior notice to Company, may assess a
late payment fee in an amount equal to Five Percent (5%) of the amount past due
up to the maximum of $1,500.00 per late charge. Each late payment fee assessed
shall be due and payable on the earlier of the next regularly scheduled interest
payment date or the maturity of this Note. Waiver by Bank of any late payment
fee assessed, or the failure of Bank in any instance to assess a late payment
fee shall not be construed as a waiver by Bank of its right to assess late
payment fees thereafter.

         If any installment of interest due under the terms of this Note falls
due on a day which is not a Banking Day, the due date shall be extended to the
next succeeding Banking Day and interest will be payable at the applicable rate
for the period of such extension.

         All amounts payable under this Note shall be payable without relief
from valuation and appraisement laws, and with all collection costs and
attorneys' fees.

         The holder of this Note, at its option, may make extensions of time for
payment of the indebtedness evidenced by this Note, or approve reductions of the
payments thereon, release any Collateral securing payment of such indebtedness
or accept a renewal Note or Notes therefor, all without notice to Company or any

                                       16
<PAGE>

endorser(s), and Company and all endorsers hereby severally consent to any such
extensions, reductions, releases and renewals, all without notice, and agree
that any such action shall not release or discharge any of them from any
liability hereunder. Company and endorser(s), jointly and severally, waive
demand, presentment for payment, protest, notice of protest and notice of
nonpayment or dishonor of this Note and each of them consents to all extensions
of the time of payment thereof.

         As used in this Note, the term "Credit Agreement" means that certain
Credit Agreement, dated as of September 5, 2003, by and between Company and
Bank, as the same hereafter may be amended, modified and/or restated from time
to time and at any time. Terms which are defined in the Credit Agreement and
which are not otherwise defined in this Note shall have the same meanings in
this Note as are ascribed to them in the Credit Agreement. The principal amount
of this Note outstanding from time to time shall be determined by reference to
the books and records of Bank on which shall be recorded each Advance under the
Loan evidenced by this Note, and all payments by Company on account of such
Loan. Such books and records shall be deemed prima facia to be correct as to
such matters, absent demonstrative or manifest error.

         This Note is made under and will be governed in all cases by the
substantive laws of the State of Indiana without reference to the conflicts of
laws rules or principles of any jurisdiction.

                                       INDIAN-MARTIN, INC., a Nevada corporation

                                       By:  /s/ TERRY D. FRANDSEN
                                            ------------------------------------
                                                Terry D. Frandsen, CFO
                                            ------------------------------------
                                                (Printed Name and Title)

                                       17Exhibit 10.7

 

 

FORM OF

AMENDED AND RESTATED AGREEMENT

 

OF

 

LIMITED PARTNERSHIP

 

OF

 

BUCKEYE PARTNERS, L.P.

 

 

(As Amended and Restated as of
                                 ,
2006)

 

 

 

 

TABLE
OF CONTENTS

ARTICLE I

DEFINITIONS

ARTICLE II

ORGANIZATIONAL MATTERS

	
  Section 2.1

  	
  Formation

  	
  7

  
	
  Section 2.2

  	
  Name

  	
  8

  
	
  Section 2.3

  	
  Principal Office; Registered Office

  	
  8

  
	
  Section 2.4

  	
  Power of Attorney

  	
  8

  
	
  Section 2.5

  	
  Term

  	
  9

  
	
  Section 2.6

  	
  Organizational Limited Partner

  	
  9

  
	
  Section 2.7

  	
  Organizational Certificate

  	
  9

  

ARTICLE III

PURPOSE

	
  Section 3.1

  	
  Purpose

  	
  10

  

ARTICLE IV

CAPITAL CONTRIBUTIONS; PURCHASES PURSUANT

TO PURCHASE AGREEMENTS; ADDITIONAL ISSUANCES

	
  Section 4.1

  	
  General Partner
  Contributions

  	
  10

  
	
  Section 4.2

  	
  Limited Partner
  Contributions

  	
  10

  
	
  Section 4.3

  	
  Issuances of Additional
  LP Units and Other Securities

  	
  10

  
	
  Section 4.4

  	
  No Preemptive Rights

  	
  11

  
	
  Section 4.5

  	
  No Interest

  	
  11

  
	
  Section 4.6

  	
  Loans from Partners

  	
  11

  
	
  Section 4.7

  	
  No Withdrawal

  	
  12

  

ARTICLE V

CAPITAL ACCOUNTS; DISTRIBUTIONS

	
  Section 5.1

  	
  Capital Accounts

  	
  12

  
	
  Section 5.2

  	
  Distributions in Respect of Units

  	
  15

  

 

i

 

ARTICLE VI

INCOME TAX MATTERS

	
  Section 6.1

  	
  Tax Allocations

  	
  15

  
	
  Section 6.2

  	
  Preparation of Tax
  Returns

  	
  16

  
	
  Section 6.3

  	
  Tax Elections

  	
  16

  
	
  Section 6.4

  	
  Tax Controversies

  	
  16

  
	
  Section 6.5

  	
  Withholding

  	
  17

  

ARTICLE VII

MANAGEMENT AND OPERATION OF BUSINESS; INDEMNIFICATION

	
  Section 7.1

  	
  Powers of General Partner

  	
  17

  
	
  Section 7.2

  	
  Duties of General Partner

  	
  18

  
	
  Section 7.3

  	
  Reliance by Third Parties

  	
  19

  
	
  Section 7.4

  	
  Compensation and Reimbursement of the General Partner

  	
  19

  
	
  Section 7.5

  	
  Purchase or Sale of LP Units and Other Partnership Securities

  	
  19

  
	
  Section 7.6

  	
  Certain Undertakings Relating to the Separateness of the Partnership

  	
  20

  
	
  Section 7.7

  	
  Outside Activities; Contracts with Affiliates; Loans to or from
  Affiliates

  	
  21

  
	
  Section 7.8

  	
  Tax Basis and Value Determinations

  	
  23

  
	
  Section 7.9

  	
  Resolution of Conflicts of Interest; Standard of Care

  	
  23

  
	
  Section 7.10

  	
  Treatment of Incentive Compensation Agreement

  	
  24

  
	
  Section 7.11

  	
  Other Matters Concerning the General Partner

  	
  25

  
	
  Section 7.12

  	
  Limited Liability; Indemnification

  	
  25

  

ARTICLE
VIII

RIGHTS AND OBLIGATIONS OF LIMITED PARTNERS

	
  Section 8.1

  	
  Limitation of Liability

  	
  27

  
	
  Section 8.2

  	
  Management of Business

  	
  27

  
	
  Section 8.3

  	
  Outside Activities

  	
  27

  
	
  Section 8.4

  	
  Return of Capital

  	
  27

  
	
  Section 8.5

  	
  Rights of Limited Partners Relating to the Partnership

  	
  27

  

ARTICLE IX

BOOKS, RECORDS,  ACCOUNTING AND REPORTS

	
  Section 9.1

  	
  Books, Records and Accounting

  	
  28

  
	
  Section 9.2

  	
  Fiscal Year

  	
  29

  
	
  Section 9.3

  	
  Reports

  	
  29

  

 

ii

 

ARTICLE X

ISSUANCE OF LP CERTIFICATES; TRANSFER AND EXCHANGE OF LP UNITS

	
  Section 10.1

  	
  Initial Issuance of LP
  Certificates

  	
  29

  
	
  Section 10.2

  	
  Registration,
  Registration of Transfer and Exchange

  	
  29

  
	
  Section 10.3

  	
  Mutilated, Destroyed,
  Lost or Stolen LP Certificates

  	
  30

  
	
  Section 10.4

  	
  Persons Deemed Owners

  	
  30

  

ARTICLE XI

TRANSFER OF GP UNITS

	
  Section 11.1

  	
  Transfer of GP Units

  	
  31

  
	
  Section 11.2

  	
  Successor General
  Partner

  	
  31

  

ARTICLE XII

ADMISSION OF INITIAL, SUBSTITUTED AND ADDITIONAL

LIMITED PARTNERS AND SUCCESSOR GENERAL PARTNER

	
  Section 12.1

  	
  Admission of Initial Limited Partners

  	
  31

  
	
  Section 12.2

  	
  Admission of Substituted Limited Partners

  	
  31

  
	
  Section 12.3

  	
  Admission of Successor General Partner

  	
  32

  
	
  Section 12.4

  	
  Admission of Additional Limited Partners

  	
  32

  
	
  Section 12.5

  	
  Amendment of Agreement and Certificate of Limited Partnership

  	
  32

  

ARTICLE
XIII

WITHDRAWAL OR REMOVAL OF THE GENERAL PARTNER

	
  Section 13.1

  	
  Withdrawal or Removal of the General Partner

  	
  32

  
	
  Section 13.2

  	
  Sale of Former General Partner’s Interest

  	
  33

  

ARTICLE XIV

DISSOLUTION AND LIQUIDATION

	
  Section 14.1

  	
  Dissolution

  	
  34

  
	
  Section 14.2

  	
  Reconstitution

  	
  35

  
	
  Section 14.3

  	
  Liquidation

  	
  35

  
	
  Section 14.4

  	
  Distribution in Kind

  	
  36

  
	
  Section 14.5

  	
  Cancellation of Certificate of Limited Partnership

  	
  36

  
	
  Section 14.6

  	
  Return of Capital

  	
  36

  
	
  Section 14.7

  	
  Waiver of Partition

  	
  37

  
	
  Section 14.8

  	
  Certain Prohibited Acts

  	
  37

  

 

iii

 

ARTICLE XV

AMENDMENT OF PARTNERSHIP AGREEMENT

	
  Section 15.1

  	
  Amendments Which May be Adopted Solely by the General Partner

  	
  37

  
	
  Section 15.2

  	
  Other Amendments

  	
  38

  
	
  Section 15.3

  	
  Amendment Requirements

  	
  38

  

ARTICLE XVI

MEETINGS

	
  Section 16.1

  	
  Meetings

  	
  39

  
	
  Section 16.2

  	
  Record Date

  	
  39

  
	
  Section 16.3

  	
  Conduct of Meeting

  	
  39

  
	
  Section 16.4

  	
  Action Without a
  Meeting

  	
  39

  

ARTICLE
XVII

CERTAIN RESTRICTIONS

	
  Section 17.1

  	
  Additional Units

  	
  40

  
	
  Section 17.2

  	
  Certain Amendments

  	
  40

  
	
  Section 17.3

  	
  Sale of Assets

  	
  40

  

ARTICLE
XVIII

RIGHT TO PURCHASE UNITS

	
  Section 18.1

  	
  Right to Purchase
  Units

  	
  41

  
	
  Section 18.2

  	
  Notice of Election to
  Purchase

  	
  41

  
	
  Section 18.3

  	
  Purchase and Transfer
  of Units

  	
  41

  

ARTICLE XIX

GENERAL PROVISIONS

	
  Section 19.1

  	
  Opinions Regarding
  Taxation as a Partnership

  	
  42

  
	
  Section 19.2

  	
  Personal Property

  	
  42

  
	
  Section 19.3

  	
  Addresses and Notices

  	
  42

  
	
  Section 19.4

  	
  Headings

  	
  42

  
	
  Section 19.5

  	
  Binding Effect

  	
  42

  
	
  Section 19.6

  	
  Integration

  	
  42

  
	
  Section 19.7

  	
  Waiver

  	
  43

  
	
  Section 19.8

  	
  Counterparts

  	
  43

  
	
  Section 19.9

  	
  Severability

  	
  43

  
	
  Section 19.10

  	
  Applicable Law

  	
  43

  

 

iv

 

 

FORM OF

AMENDED AND RESTATED AGREEMENT

OF

LIMITED PARTNERSHIP

OF

BUCKEYE PARTNERS, L.P.

THIS AMENDED AND RESTATED
AGREEMENT OF LIMITED PARTNERSHIP, dated as of
                    ,
2006 (the “Agreement”), is entered into by and among Buckeye GP LLC, a Delaware
limited liability company (together with any successor in its capacity as
general partner of the Partnership, the “General Partner”), and the additional
Persons that are or become Partners of the Partnership as provided herein.

BACKGROUND

On December 31, 1998,
Buckeye Management Company assigned and transferred certain assets and
liabilities, including all of its GP Units (as defined in Article I below), to
Buckeye Pipe Line Company. Buckeye Pipe Line Company accepted the transfer of
those certain assets and liabilities and the GP Units, became the general
partner of Buckeye Partners, L.P., and entered into the Amended and Restated
Agreement of Limited Partnership, dated as of December 31, 1998, which was
further amended and restated as of April 24, 2002 (as so amended, the “Prior
Partnership Agreement”).

On May 4, 2004, Buckeye
Management Company and Buckeye Pipe Line Company converted from Delaware
corporations to Delaware limited liability companies. In connection with such
conversion, Buckeye Management Company changed its name to Buckeye Management
Company LLC, and Buckeye Pipe Line Company changed its name to Buckeye Pipe
Line Company LLC (the “Former GP”).

In accordance with
Section 11.1 of the Prior Partnership Agreement, the Former GP assigned and transferred
certain assets and liabilities, including all of its GP Units, to the General
Partner pursuant to a Contribution, Assignment and Assumption Agreement dated
December 15, 2004. The General Partner accepted the transfer of those certain
assets and liabilities and the GP Units, and became the general partner of
Buckeye Partners, L.P.  The Partners
continued Buckeye Partners, L.P. without dissolution and amended and restated
the Prior Partnership Agreement (as amended and restated, the “2004 Agreement”).

 

1

 

This Agreement amends the
2004 Agreement to provide that a Partnership Interest includes the general
partner interest in the Partnership evidenced by the Incentive Compensation
Agreement and that any incentive compensation payments pursuant to the
Incentive Compensation Agreement will be deemed to be distributions in respect
of a Partnership Interest and to make certain additional modifications in
connection with MainLine L.P. becoming the general partner of the Operating
Partnerships.

ARTICLE I

DEFINITIONS

The following definitions
shall for all purposes, unless otherwise clearly indicated to the contrary,
apply to the terms used in this Agreement:

“Affiliate” means, with
respect to any Person, any other Person that directly or indirectly controls,
is controlled by, or is under common control with the Person in question;
provided, however, that, for purposes of the restrictive provisions of Sections
7.6, 7.7 and 7.9, neither the Partnership nor any of the Operating Partnerships
nor any of their respective subsidiaries shall be deemed to be Affiliates of
the General Partner.  As used herein, the
term control means the possession, directly or indirectly, of the power to
direct or cause the direction of the management and policies of a Person,
whether through ownership of voting securities, by contract or otherwise.  For purposes of this Agreement, Services
Company shall be deemed an Affiliate of the General Partner.

“Agent” has the meaning
specified in Section 2.4

“Agreed Value” of any
Contributed Property means the fair market value of such property as of the
time of contribution (or, in the case of cash, the amount thereof), as
determined by the General Partner using such reasonable method of valuation as
it may adopt.

“Agreement” means this
amended and restated agreement of limited partnership, as amended or amended
and restated from time to time, and, as the context requires, as supplemented
by the Incentive Compensation Agreement.

“Audit Committee” means a
committee of the Board of Directors of the General Partner composed entirely of
three or more directors who meet the independence, qualification and experience
requirements of the New York Stock Exchange, and two of whom are also S&P
Independent Directors.

“BMC” means Buckeye
Management Company LLC, a Delaware limited liability company.

“Business Day” means any
day other than a Saturday, a Sunday, or a legal holiday recognized as such by
the Government of the United States or the State of New York.

“Capital Accounts” mean
the capital accounts maintained with respect to Partnership Interests pursuant
to Section 5.1(a).

“Capital Contribution”
means any Contributed Property which a Partner contributes to the Partnership.

“Carrying Value” means
(a) with respect to Contributed Property, the Agreed Value of such property
reduced as of the time of determination (but not below zero) by (i) all
depreciation, cost recovery and amortization deductions charged to the Capital
Accounts pursuant to Section 5.1(a) with respect to such property and (ii) an
appropriate amount to reflect any sales,

 

2

 

retirements and
other dispositions of assets included in such property, and (b) with respect to
any other property, the adjusted basis of such property for federal income tax
purposes as of the time of determination, in any case as may be adjusted from
time to time pursuant to Section 5.1(e).

“Certificate of Limited
Partnership” means the Amended and Restated Certificate of Limited Partnership
filed with the Secretary of State of the State of Delaware as described in the
first sentence of Section 2.7, as amended or restated from time to time.

“Code” means the Internal
Revenue Code of 1986, as amended from time to time.

“Contributed Property”
means any cash, property or other consideration (in such form as may be
permitted under the Delaware Act) contributed to the Partnership.

“Contributing Partner”
means any Partner contributing Contributed Property to the Partnership in
exchange for Units (or any transferee of such Units).

“Delaware Act” means the
Delaware Revised Uniform Limited Partnership Act, as amended from time to time,
and any successor to such Act.

“Designated Expenses”
mean all costs and expenses (direct or indirect) incurred by the General
Partner which are directly or indirectly related to the formation,
capitalization, business or activities of the Partnership Group (including,
without limitation, expenses, direct or indirect, reasonably allocated to the
General Partner by its Affiliates); provided, however, that Designated Expenses
shall not include (a) any cost or expense for which the General Partner is not
entitled to be reimbursed by reason of the proviso at the end of Section
7.12(b), (b) severance costs not permitted to be reimbursed pursuant to the
Management Agreements in connection with the withdrawal of the General Partner,
or (c) any cost or expense for which the General Partner and its Affiliates are
not entitled to be reimbursed pursuant to the terms of the Exchange Agreement.

“Effective Date” means
the date of this Agreement.

“Eighty Percent Interest”
means Limited Partners holding an aggregate of at least 80% of the outstanding
LP Units.

“ESOP” means the Buckeye
Pipe Line Services Company Employee Stock Ownership Plan Trust, as amended.

“ESOP Loan” means the
loan to the ESOP due March 28, 2011 in the original principal amount of
$44,133,600, and shall include any loans refinancing such loan.

“Exchange Act” means the
Securities Exchange Act of 1934, as amended from time to time, and any
successor to such statute.

“Exchange Agreement”
means the Fourth Amended and Restated Exchange Agreement, dated as of _________
___, 2006, among Holdco, the General Partner, the Partnership, the OLP GP, and
each of the Operating Partnerships, as amended or restated from time to time.

“General Partner” has the
meaning specified in the first paragraph.

 

3

 

“GP Unit” means a
Partnership Interest issued pursuant to Section 4.1 and representing a general
partner’s interest in the Partnership.

“Group Member” means a
member of the Partnership Group.

“Holdco” means,
collectively MainLine Sub LLC and any entities which control MainLine Sub LLC
or are under common control with MainLine Sub LLC, but excluding Buckeye GP
LLC, MainLine GP Inc., the OLP GP, and the Partnership Group.

“Incentive Compensation
Agreement” means the Fifth Amended and Restated Incentive Compensation
Agreement, dated as of ________ ___, 2006 between the Partnership and the
General Partner.  The Incentive
Compensation Agreement supplements this Agreement.

“Indemnitee” means the
General Partner, any Affiliate of the General Partner, any Person who is or was
a director, officer, manager, member, employee or agent of the General Partner
or any such Affiliate, or any Person who is or was serving at the request of
the General Partner or any such Affiliate as a director, officer, manager,
member, partner, trustee, employee or agent of another Person.

“Issue Price” means the
price at which a Unit is purchased from the Partnership.

“Limited Partner” means
any limited partner of the Partnership.

“Liquidator” has the
meaning specified in Section 14.3.

“LP Certificate” means a
certificate issued by the Partnership, substantially in the form of Annex A to
this Agreement, evidencing ownership of one or more LP Units.

“LP Unit” means a
Partnership Interest issued pursuant to Sections 4.2 or 4.3 and representing a
limited partner’s interest in the Partnership.

“Majority Interest” means
Limited Partners holding an aggregate of more than 50% of the outstanding LP
Units.

“Management Agreements”
mean the amended and restated management agreements, dated as of _________ ___,
2006 pursuant to which the OLP GP manages the Operating Partnerships, in each
case as amended or restated from time to time.

“NASDAQ” means the
National Association of Securities Dealers Automated Quotation System.

“National Securities
Exchange” means an exchange registered with the Securities and Exchange
Commission under Section 6(a) of the Exchange Act.

“Net Agreed Value” means
(a) in the case of any Contributed Property, the Agreed Value of such
Contributed Property reduced by any indebtedness either assumed by the
Partnership upon contribution of such Contributed Property or to which such
Contributed Property is subject when contributed, (b) in the case of any
property distributed to a Partner pursuant to Sections

 

4

 

5.2, 14.3 or 14.4,
the fair market value of such property at the time of such distribution reduced
by any indebtedness either assumed by such Partner upon such distribution or to
which such property is subject at the time of distribution.

“OLP GP” means MainLine
L.P., in its capacity as the general partner of the Operating Partnerships and
in its capacity as manager of the Operating Partnerships pursuant to the
Management Agreements, and any successors to MainLine L.P. as such general
partner and manager.

“Operating Partnership
Agreements” mean the amended and restated agreements of limited partnership,
dated as of _________ ___, 2006, governing the rights and obligations of the
partners of the Operating Partnerships and certain related matters, as amended
or restated from time to time.

“Operating Partnerships”
means, collectively, Buckeye Pipe Line Company, L.P., Buckeye Pipe Line
Holdings, L.P., Everglades Pipe Line Company, L.P. and Laurel Pipe Line
Company, L.P., each a Delaware limited partnership, and each other current or
future subsidiary of the Partnership which is managed by the General Partner or
the OLP GP pursuant to its organizational documents or any other contractual
arrangement with the General Partner or the OLP GP.

“Opinion of Counsel”
means a written opinion of counsel (who may be regular counsel of the General
Partner or any of its Affiliates) acceptable to the General Partner.

“Organizational Limited
Partner” means Pennsylvania Company, a Delaware corporation, acting as the
organizational limited partner pursuant to this Agreement.

“Partner” means the
General Partner or a Limited Partner.

“Partnership” means
Buckeye Partners, L.P., a Delaware limited partnership.

“Partnership Group” means
the Partnership, the Operating Partnerships and any subsidiary of any such
entity, treated as a single consolidated entity.

“Partnership Interest”
means a general partner’s or limited partner’s interest in the Partnership,
including the general partner interest in the Partnership evidenced by the
Incentive Compensation Agreement.

“Partnership Securities”
has the meaning specified in Section 4.3.

“Percentage Interest”
means, with respect to any Partner, the number of Units held by such Partner
divided by the number of Units outstanding.

“Person” means an
individual, a corporation, a limited liability company, a partnership, a trust,
an unincorporated organization, an association or any other entity.

“Prior Partnership
Agreement” has the meaning specified in the first paragraph of “Background.”

 

5

 

“Recapture Income” means
any gain recognized by the Partnership upon the disposition of  any asset of the Partnership that is not a
capital gain due to the recapture of certain deductions previously taken with
respect to such asset.

“Record Date” means the
date established by the General Partner for determining the identity of Limited
Partners entitled (a) to notice of or to vote at any meeting of Limited
Partners, to vote by ballot or approve Partnership action in writing without a
meeting or to exercise rights in respect of any other lawful action of Limited
Partners, or (b) to receive any report or distribution.

“Record Holder” or “Holder”
of (a) any LP Unit means the Person in whose name such Unit is registered in
the Units Register or (b) any GP Unit means the General Partner.

“S&P Independent
Director” means a duly appointed member of the Audit Committee who was not, at
the time of such appointment or at any time in the preceding five years, (a) a
direct or indirect legal or beneficial owner of interests in the Partnership or
any of its Affiliates (excluding de minimis ownership interests, including
ownership interests in limited partnership units, in publicly traded entities),
(b) a creditor, supplier, employee, officer, director (other than a director of
the General Partner or Services Company), family member, manager, member or
contractor of the Partnership or its Affiliates, or (c) a person who controls
(whether directly, indirectly or otherwise) the Partnership or its Affiliates
or any creditor, supplier, employee, officer, director (other than a director
of the General Partner or Services Company), manager, member or contractor of
the Partnership or its Affiliates; provided, however,
that service by a director as a director of Buckeye Pipe Line Company LLC at or
prior to December 15, 2004 shall not prevent a member of the Board of Directors
from being a S&P Independent Director. 
For the purposes of the definition of “S&P Independent Director,”
Buckeye GP LLC, MainLine GP Inc., the OLP GP, and the Partnership Group shall be
deemed to be Affiliates of Holdco.

“Securities Act” means
the Securities Act of 1933, as amended from time to time, and any successor to
such statute.

“Services Agreement”
means the Services Agreement, dated as of December 15, 2004, between the
Partnership, the Operating Partnerships, Wood River Pipe Lines LLC, Buckeye
Terminals, LLC and Services Company, as amended or supplemented from time to
time.

“Services Company” means
Buckeye Pipe Line Services Company, a Pennsylvania corporation.

“Special Approval” means
approval by a majority of the members of the Audit Committee.

“Time of Delivery” means
December 23, 1986.

“Transfer Agent” means
the  bank, trust company or other Person
appointed from time to time by the Partnership to act as successor transfer agent
and registrar for LP Units.

“Two-Thirds Interest”
means Limited Partners holding an aggregate of at least two-thirds of the
outstanding LP Units.

 

6

 

“Unit” means a GP Unit or
an LP Unit.

“Unit Price” of a Unit
means, as of any date of determination, (a) if such Unit is one of a class of
Units listed or admitted to trading on a National Securities Exchange, the
average of the last reported sales prices per Unit regular way or, in case no
such reported sale takes place on any such day, the average of the last
reported bid and asked prices per Unit regular way, in either case on the
principal National Securities Exchange on which such class of Units is listed
or admitted to trading (or, if such class of Units is listed or admitted to
trading on the New York Stock Exchange, on the New York Stock Exchange
Composite Tape), for the five trading days immediately preceding the date of
determination; (b) if such Unit is not of a class of Units listed or admitted
to trading on a National Securities Exchange but is of a class quoted by
NASDAQ, the average of the last reported sales prices per Unit or, in case no
such reported sale takes place on any such day or in case last reported sales
prices are not quoted by NASDAQ, the average of the last bid and asked prices
per Unit, for the five trading days immediately preceding such date of
determination, as furnished by the National Quotation Bureau Incorporated or
such other nationally recognized quotation service as may be selected by the
General Partner for such purpose, if said Bureau is not at the time furnishing
quotations; or (c) if such Unit is not of a class of Units listed for trading
on a National Securities Exchange or quoted by NASDAQ, an amount equal to the
fair market value of such Unit as of such date of determination, as determined
by the General Partner using any reasonable method of valuation it may select.

“Units Register” has the
meaning specified in Section 10.2.

“Unrealized Gain”
attributable to a Partnership property means, as of any date of determination,
the excess, if any, of the fair market value of such property as of such date
of determination over the Carrying Value of such property as of such date of
determination (prior to any adjustment to be made pursuant to Section 5.1(e) as
of such date).

“Unrealized Loss”
attributable to a Partnership property means, as of any date of determination,
the excess, if any, of the Carrying Value of such property as of such date of
determination (prior to any adjustment to be made pursuant to Section 5.1(e) as
of such date) over the fair market value of such property as of such date of
determination.

ARTICLE II

ORGANIZATIONAL MATTERS

Section
2.1                                      Formation

BMC and the
Organizational Limited Partner originally formed the Partnership as a limited
partnership pursuant to the provisions of the Delaware Act.  The General Partner, pursuant to the
authority contained in Article XV of this Agreement, does hereby amend and
restate this Agreement in its entirety to continue the Partnership as a limited
partnership pursuant to the provisions of the Delaware Act and to set forth the
rights and obligations of the Partners and certain matters related
thereto.  Except as expressly provided
herein to the contrary, the rights and obligations of the Partners and the
administration, dissolution and termination of the Partnership shall be
governed by the Delaware Act.

 

7

 

Section
2.2                                      Name

The name of the
Partnership shall be, and the business of the Partnership shall be conducted
under the name of, “Buckeye Partners, L.P.”; provided, however, that (a) the
Partnership’s business may be conducted under any other name or names deemed
advisable by the General Partner, (b) the General Partner in its sole
discretion may change the name of the Partnership at any time and from time to
time and (c) the name under which the Partnership conducts business shall
include “Ltd.” or “Limited Partnership” (or similar words or letters) where
necessary for purposes of maintaining the limited liability status of each
Limited Partner or otherwise complying with the laws of any jurisdiction that
so requires.

Section
2.3                                      Principal Office; Registered Office

(a)           The principal office of the
Partnership shall be 5002 Buckeye Road, Emmaus, Pennsylvania 18049, or such
other place as the General Partner may from time to time designate.  The Partnership may maintain offices at such
other places as the General Partner deems advisable.

(b)           The address of the Partnership’s
registered office in the State of Delaware shall be Corporation Trust Center,
1209 Orange Street, in the City of Wilmington, County of New Castle, Delaware
19801, and the name of the Partnership’s registered agent for service of
process at such address shall be The Corporation Trust Company.

Section
2.4                                      Power of Attorney

(a)           Each Limited Partner hereby
constitutes and appoints the General Partner or, if a Liquidator shall have
been selected pursuant to Section 14.3, the Liquidator, with full power of
substitution, as such Limited Partner’s true and lawful agent and
attorney-in-fact (“Agent”), with full power and authority in such Limited
Partner’s name, place and stead to:

(i)            execute, swear to,
acknowledge, deliver, file and record in the appropriate public offices (A) all
certificates, documents and other instruments (including, without limitation,
this Agreement and the Certificate of Limited Partnership and any amendments or
restatements thereof) which the Agent deems appropriate or necessary to form or
qualify, or continue the existence or qualification of, the Partnership as a
limited partnership (or a partnership in which the Limited Partners have
limited liability) under the laws of any state or jurisdiction; (B) all
certificates, documents and other instruments which the Agent deems appropriate
or necessary to reflect any amendments, changes or modifications of this
Agreement in accordance with its terms; (C) all conveyances and other documents
or instruments which the Agent deems appropriate or necessary to reflect the
dissolution and liquidation of the Partnership pursuant to the terms of this
Agreement; (D) all certificates, documents and other instruments relating to
the admission, substitution, withdrawal or removal of any Partner pursuant to
Articles XII,  XIII or XIV and other
events described in Articles XII, XIII or XIV; and (E) all certificates,
documents and other instruments (including, without limitation, this Agreement
and the Certificate of Limited Partnership and any amendments or

 

8

 

restatements
thereof) relating to the determination of the rights, preferences and
privileges of any class or series of Units issued pursuant to Section 4.4; and

(ii)           execute, swear to,
acknowledge and file all ballots, consents, approvals, waivers, certificates,
documents and other instruments which the Agent deems appropriate or necessary
in order to make, evidence, give, confirm or ratify any vote, consent,
approval, agreement or other action which is made or given by the Partners
hereunder, is deemed to be made or given by the Partners hereunder, is
consistent with the terms of this Agreement or is deemed by the Agent to be
appropriate or necessary to effectuate the terms or intent of this Agreement or
the purposes of the Partnership; provided, however, that, if any vote or
approval of Limited Partners is specifically required for an action by any
provision of this Agreement, the Agent may exercise the power of attorney made
in this subsection (ii) to take such action only after such vote or approval is
obtained.

(b)           The foregoing power of attorney is
hereby declared to be irrevocable and a power coupled with an interest, and it
shall survive and not be affected by the subsequent death, incompetency,
disability, incapacity, dissolution, bankruptcy or termination of any Limited
Partner and the transfer of all or any portion of such Limited Partner’s Units
and shall extend to such Limited Partner’s heirs, transferees, successors,
assigns and personal representatives.  Each
Limited Partner hereby agrees to be bound by any representations made by the
Agent acting in good faith pursuant to such power of attorney; and each Limited
Partner hereby waives any and all defenses which may be available to contest,
negate or disaffirm the action of the Agent taken in good faith pursuant to
such power of attorney.  Each Limited
Partner shall execute and deliver to the Agent, within 15 days after receipt of
the Agent’s request therefor, such further designations, powers of attorney and
other instruments as the Agent deems appropriate or necessary to effectuate the
terms or intent of this Agreement or the purposes of the Partnership.

Section
2.5                                      Term

The Partnership shall
continue in existence until the close of Partnership business on December 31,
2086 or until the earlier termination of the Partnership in accordance with the
provisions of Article XIV.

Section
2.6                                      Organizational Limited Partner

At and as of the Time of
Delivery, the Partnership interest of the Organizational Limited Partner was
terminated and the Partnership Interest of BMC was as described in Section 4.1.

Section
2.7                                      Organizational Certificate

The General Partner shall
cause to be filed such certificates or documents as may be required for the
formation, operation and qualification of a limited partnership in Delaware and
any other state in which the Partnership may elect to do

 

9

 

business.  The General Partner shall thereafter file any
necessary amendments to the Certificate of Limited Partnership and any such
other certificates and documents and do all things requisite to the maintenance
of the Partnership as a limited partnership (or as a partnership in which the
Limited Partners have limited liability) under the laws of Delaware and any
other state in which the Partnership may elect to do business.  Subject to applicable law, the General
Partner may omit from the Certificate of Limited Partnership and any such other
certificates and documents, and from all amendments thereto, the names and
addresses of the Limited Partners and information relating to the Capital
Contributions and shares of profits and compensation of the Limited Partners,
or state such information in the aggregate rather than with respect to each
individual Limited Partner.

ARTICLE III

PURPOSE

Section
3.1                                      Purpose

The  purpose and business of the Partnership shall
be to engage in  any lawful activity for
which limited partnerships may be organized under the Delaware Act.

ARTICLE IV

CAPITAL CONTRIBUTIONS; PURCHASES PURSUANT

TO PURCHASE AGREEMENTS; ADDITIONAL ISSUANCES

Section
4.1                                      General Partner Contributions

(a)           At and as of the Time of Delivery,
BMC contributed to the Partnership, in exchange for 121,212 GP Units (i.e., a
1% Percentage Interest), an amount equal to $2,424,240.

(b)           Following the Time of Delivery,
whenever a Limited Partner makes a Capital Contribution to the Partnership
pursuant to Section 4.3, the General Partner shall contribute to the
Partnership, in exchange for a number of GP Units equal to 1/99th of the total
number of LP Units then being purchased, Contributed Property (which may
include LP Units) having a Net Agreed Value equal to 1/99th of the aggregate
Net Agreed Value of all Capital Contributions to the Partnership then being made
pursuant to Section 4.3, unless the General Partner receives an Opinion of
Counsel that the failure to make such additional Capital Contribution would not
result in the Partnership or any of the Operating Partnerships being treated as
an association taxable as a corporation for federal income tax purposes.

Section
4.2                                      Limited Partner Contributions

At and as of the Time of
Delivery, each underwriting firm which entered into an underwriting agreement
with the Partnership contributed to the Partnership, in exchange for the number
of LP Units specified therein an amount in cash equal to the Issue Price for
such LP Units (as specified in such underwriting agreement) multiplied by the
number of LP Units being so purchased.

Section
4.3                                      Issuances of Additional LP Units and
Other Securities

(a)           The General Partner is hereby
authorized to cause the Partnership to issue, in addition to the LP Units
issued pursuant to Section 4.2, additional LP Units, or classes or series
thereof, or options, rights, warrants or appreciation rights relating thereto
or any other type of

 

10

 

equity security that the Partnership may lawfully
issue, any secured or unsecured debt obligations of the Partnership, or debt
obligations of the Partnership convertible into any class or series of equity
securities of the Partnership (collectively, “Partnership Securities”), for any
Partnership purpose, at any time or from time to time, to Partners or to other
Persons (including, without limitation, to employee benefit plans sponsored by
the General Partner, the Partnership, any of the Operating Partnerships or any
of their respective Affiliates), for such consideration and on such terms and
conditions, and entitling the holders thereof to such relative rights and
powers, as shall be established by the General Partner in its sole discretion,
all without the approval of any Limited Partners, except as provided in Section
17.1.

(b)           Without limiting the generality of
the foregoing (but subject to the provisions of Section 17.1), the additional
Partnership Securities to be issued by the Partnership under this Section 4.3
may contain provisions with respect to (i) the allocation of items of
Partnership income, gain, loss, deduction and credit; (ii) the right to share
in Partnership distributions; (iii) rights upon dissolution and liquidation of
the Partnership; (iv) whether any such issue of Partnership Securities may be
acquired by the Partnership, by purchase, redemption or otherwise,  and if so, the price at which, and the terms
and conditions upon which, such Partnership Securities may be purchased,
redeemed or otherwise acquired by the Partnership; (v) the conversion rights
applicable to any such issue of Partnership Securities, and if so, the rate at
which, and the terms and conditions upon which, such Partnership Securities may
be converted into any other class or series of Partnership Securities; (vi) the
terms and conditions upon which any such Partnership Securities will be issued,
assigned, or transferred; and (vii) the right, if any, of the holders of any
such issue of Partnership Securities to vote on Partnership matters.

(c)           The General Partner is hereby
authorized and directed to do all acts which it deems appropriate or necessary
in connection with each issuance of Units or other securities by the
Partnership and to amend this Agreement in any manner which it deems
appropriate or necessary to provide for each such issuance, to admit additional
limited partners in connection therewith and to specify the relative rights,
powers and duties of the holders of the Units or other securities being so
issued, all without the approval of any Limited Partners, except as provided in
Section 17.1.

Section
4.4                                      No Preemptive Rights

No Partner shall have any
preemptive right with respect to the issuance or sale of Units or other
securities that may be issued by the Partnership.

Section
4.5                                      No Interest

No interest shall be paid
by the Partnership on Capital Contributions.

Section
4.6                                      Loans from Partners

Loans or other advances
by a Partner to or for the account of the Partnership shall not be considered
Capital Contributions.

 

11

 

Section
4.7                                      No Withdrawal

No Partner shall be
entitled to withdraw any part of its Capital Contributions or its Capital
Account or to receive any distributions from the Partnership except as provided
in this Agreement as supplemented by the Incentive Compensation Agreement.

ARTICLE V

CAPITAL ACCOUNTS; DISTRIBUTIONS

Section
5.1                                      Capital Accounts

(a)           The Partnership shall maintain for
each Partner a separate Capital Account with respect to its Partnership
Interests in accordance with the regulations issued pursuant to Section 704 of
the Code.  The Capital Account of any
Partner shall be increased by (i) the Net Agreed Value of all Capital
Contributions made by such Partner in exchange for its Partnership Interest and
(ii) all items of income and gain computed in accordance with Section 5.1(b)
and allocated to such Partner pursuant to Section 5.1(c) and reduced by (iii)
the Net Agreed Value of all distributions of cash or property made to such
Partner with respect to its Partnership Interest and (iv) all items of
deduction and loss computed in accordance with Section 5.1(b) and allocated to
such Partner pursuant to Section 5.1(c).

(b)           For purposes of computing the amount
of each item of income, gain, loss or deduction to be reflected in the Capital
Accounts, the determination, recognition and classification of such item shall
be the same as its determination, recognition and classification for federal
income tax purposes, provided that:

(i)            Any deductions for
depreciation, cost recovery or amortization attributable to any Partnership
property shall be determined as if the adjusted basis of such property was
equal to the Carrying Value of such property. 
Upon an adjustment to the Carrying Value of any Partnership property
subject to depreciation, cost recovery or amortization pursuant to Sections
5.1(e) or 7.8, any further deductions for such depreciation, cost recovery or
amortization attributable to such property shall be determined as if the
adjusted basis of such property was equal to the Carrying Value of such
property immediately following such adjustment.

(ii)           If the Partnership’s
adjusted basis in property subject to depreciation, cost recovery or
amortization is reduced for federal income tax purposes pursuant to Section
48(q)(1) of the Code, the amount of such reduction shall be deemed to be an
additional item of deduction in the year such property is placed in
service.  Any restoration of such basis
pursuant to Section 48(q)(2) of the Code shall be deemed to be an additional
item of income in the year of restoration.

(iii)          Any income, gain or
loss attributable to the taxable disposition of any Partnership property shall
be determined by the Partnership as if the adjusted basis of such property as
of such date of disposition was equal in amount to the Carrying Value of such
property as of such date.

 

12

 

(iv)          All fees and other
expenses incurred by the Partnership to promote the sale of (or to sell) a
Partnership Interest that can neither be deducted nor amortized under Section
709 of the Code shall be treated as items of deduction.

(v)           The computation of all
items of income, gain, loss and deduction shall be made without regard to any
election under Section 754 of the Code which may be made by the Partnership
and, as to those items described in Section 705(a)(1)(B) or Section
705(a)(2)(B) of the Code, without regard to the fact that such items are not
includible in gross income or are neither currently deductible nor
capitalizable for federal income tax purposes.

(c)           (i)            After
giving effect to the special allocations set forth in Section 5.1(c)(ii)-(vi)
for purposes of maintaining the Capital Accounts, each item of income, gain,
loss and deduction (computed in accordance with Section 5.1(b)) shall be
allocated to the Partners in accordance with their respective Percentage
Interests.

(ii)           If any Partner
unexpectedly receives any adjustment allocation or distribution described in
Treasury Regulation Sections 1.704-1(b)(2)(ii)(d)(4), 1.704-1 (b)(2)(ii)(d)(5),
or 1.704-1(b)(2)(ii)(d)(6), items of Partnership income and gain shall be
specially allocated to such Partner in an amount and manner sufficient to
eliminate a deficit in its Capital Account created by such adjustment,  allocation or distribution as quickly as
possible.

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

(iv)          If there is a net
decrease in Partnership minimum gain, within the meaning of Treasury Regulation
Section 1.704-1(b) (4) (iv), during a Partnership taxable year, all Partners
with deficit balances in their Capital Accounts, computed as described in
Treasury Regulation Section 1.704­-1(b)(4)(iv)(c) at the end of such year, will
be allocated items of Partnership income and gain for such year (and, if
necessary, subsequent years) in the amounts and in the proportions needed to
eliminate such deficits as quickly as possible, before any other allocations
are made under Section 704(b) of the Code.

(v)            For the taxable
period beginning on the Effective Date and for all taxable periods thereafter,
except with respect to the taxable period in which a liquidation of the
Partnership occurs pursuant to Section 14.3, items of income and gain (and, if
necessary to effectuate the intent of this Section 5.1(c)(v), loss and
deduction) shall be allocated to the holders of the Partnership Interest
evidenced by the Incentive Compensation Agreement until the aggregate amount of
such items allocated to the holders of the Partnership Interest evidenced by
the Incentive Compensation Agreement pursuant to this Section 5.1(c)(v) for the
current taxable year and all previous taxable years (since the Effective Date)
is equal to the cumulative amount of all distributions made pursuant to the
Incentive Compensation Agreement under Section 5.2(c).

 

13

 

(vi)          For the period in
which a liquidation of the Partnership occurs pursuant to Section 14.3, items
of income and gain (and, if necessary to effectuate the intent of this Section
5.1(c)(vi), loss and deduction) shall be allocated to the holders of the
Partnership Interest evidenced by the Incentive Compensation Agreement until
the amount of such items allocated to the holders of the Partnership Interest
evidenced by the Incentive Compensation Agreement pursuant to this Section
5.1(c)(vi) for the current taxable period is equal to the amount of payments
that would have been made to Holdco with respect to such taxable period in
accordance with the Fourth Amended and Restated Incentive Compensation
Agreement, dated as of December 15, 2004, as if that agreement had not been
superseded by the Fifth Amended and Restated Incentive Compensation Agreement.

(d)           (i)            Except
as otherwise provided in this Section 5.1(d), a transferee of LP Units shall,
upon becoming a Limited Partner, succeed to the portion of the transferor’s
Capital Account maintained with respect to the Units transferred.

(ii)           If a transfer of
Units causes a termination of the Partnership under Section 708(b)(1)(B) of the
Code, the Partnership properties shall be deemed to have been distributed in
liquidation of the Partnership to the Partners (including the transferee of the
Units) pursuant to Sections 14.4 and 14.5 and recontributed by such Partners
and transferees in reconstitution of the Partnership.  The Capital Accounts of such reconstituted
Partnership shall be maintained in accordance with this Article V.

(e)           If any additional LP Units (or other
Partnership Interests) are to be issued pursuant to Section 4.3, or if any
Partnership Property is to be distributed, the Capital Accounts of the Partners
(and the Carrying Values of all Partnership properties) shall, immediately
prior to such issuance or distribution, be adjusted (consistent with the
provisions hereof and of Section 704(b) of the Code) upwards or downwards to
reflect any Unrealized Gain or Unrealized Loss attributable to all Partnership
properties (as if such Unrealized Gain or Unrealized Loss had been recognized
upon an actual sale of such properties immediately prior to such
issuance).  In determining such
Unrealized Gain or Unrealized Loss, the fair market value of Partnership properties,
as of any date of determination, (i) shall, in the case of the issuance of
additional LP Units, be deemed to be equal to (A) the number of Units
outstanding, as of the date of determination, times the Issue Price for which
such additional LP Units are so issued, plus (B) the amount of any Partnership
indebtedness outstanding as of the date of determination, (ii) shall, in the
case of an issuance of other Partnership Interests, be deemed to be equal to
(A) the number of Units outstanding, as of the date of determination, times the
last reported sales price per LP Unit on the principal National Securities
Exchange on which such LP Units are listed, plus (B) the amount of any
Partnership indebtedness outstanding as of the date of determination, and (iii)
shall, in the case of the distribution of Partnership property, be determined
in the manner provided in Section 14.3. 
It is hereby confirmed that the Partnership Interest evidenced by the
Incentive Compensation Agreement will not give rise to an increase in the
General Partner’s Capital Account as of the Effective Date based on the “liquidation
value” approach of Revenue Procedure 93-27 and Notice 2005-43.  Thus, the Capital Account associated with the
Partnership Interest evidenced by the Incentive Compensation Agreement, as of
the Effective Date and after any adjustments to Capital Accounts shall be zero.

 

14

 

Section
5.2                                      Distributions in Respect of Partnership
Interests

(a)           From time to time, not less often
than quarterly, the General Partner shall review the Partnership’s accounts to
determine whether distributions are appropriate.  The General Partner may make such cash
distributions as it, in its sole discretion, may determine, without being
limited to current or accumulated income or gains, from any Partnership funds,
including, without limitation, Partnership revenues, Capital Contributions or
borrowed funds.  In its sole discretion,
the General Partner may also distribute to the Partners other Partnership
property, additional Units or other securities of the Partnership or other
entities.

All distributions in
respect of Units shall be made concurrently to all Record Holders on the Record
Date set for purposes of such distribution and shall be prorated in accordance
with such Record Holders’ respective Percentage Interests as of such Record
Date.

(b)           Amounts paid pursuant to Section 7.4,
any Management Agreement or any Operating Partnership Agreement shall not be
deemed to be distributions with respect to a Partnership Interest for purposes
of this Agreement.

(c)           Amounts paid pursuant to the
Incentive Compensation Agreement are distributions with respect to a
Partnership Interest for purposes of this Agreement.

ARTICLE VI

INCOME TAX MATTERS

Section
6.1                                      Tax Allocations

(a)           Except as otherwise provided herein,
for federal income tax purposes, each item of income, gain, loss, deduction and
credit of the Partnership shall be allocated among the Partners in the manner
in which the correlative item of “book” income, gain, loss or deduction is
computed in accordance with Section 5.1(b) and allocated pursuant to Section
5.1(c), except that the General Partner shall have the authority to make such
other allocations as are necessary and appropriate to comply with Section 704
of the Code and the regulations issued pursuant thereto.

(b)           Gain resulting from the sale or other
taxable disposition of Partnership assets and allocated to (or recognized by) a
Partner (or its successor in interest) for federal income tax purposes shall be
deemed to be Recapture Income to the extent such Partner has been allocated or
has claimed any deduction directly or indirectly giving rise to the treatment
of such gain as Recapture Income.

(c)           To preserve uniformity of LP Units,
the General Partner shall have sole discretion to (i) adopt such conventions as
it deems appropriate or necessary in determining the amount of depreciation and
cost recovery deductions; (ii) make special allocations of income or deduction
and (iii) amend the provisions of this Agreement as appropriate (x) to reflect
the proposal or promulgation of regulations under Section 704(c) of the Code or
(y) otherwise to preserve the uniformity of Units issued or sold from time to
time.  The General Partner may adopt such
conventions and make such allocations and amendments only if they would not
have a material

 

15

 

adverse effect on the Limited Partners and are
consistent with the principles of Section 704 of the Code.

(d)           Items of Partnership income, gain,
loss, deduction and credit shall, for federal income tax purposes, be
determined on a monthly basis (or other basis, as required or permitted by
Section 706 of the Code) and shall be allocated to the Persons who are Record
Holders of Units as of the close of business on the first day of such month;
provided, however, that gain or loss on a sale or other disposition of all or a
substantial portion of the assets of the Partnership shall be allocated to the
Persons who are Record Holders of Units as of the close of business on the date
of sale.

(e)           Pursuant to Section 704(c) of the
Code, items of income, gain, loss, deduction and credit attributable to
Contributed Property shall be allocated in such a manner as to take into
account the variation between the basis of such property to the Partnership and
its Carrying Value.

Section
6.2                                      Preparation of Tax Returns

The General Partner shall
arrange for the preparation and timely filing of all returns of Partnership
income, gains, losses, deductions, credits and other items necessary for
federal and state income tax purposes and shall use all reasonable efforts to
furnish to the Limited Partners within 90 days after the close of the taxable
year the tax information reasonably required for federal and state income tax
reporting purposes. The classification, realization and recognition of income,
gains, losses, deductions, credits and other items shall be on the accrual
method of accounting for federal income tax purposes, unless the General
Partner shall determine otherwise in its sole discretion.

Section
6.3                                      Tax Elections

Except as otherwise
provided herein, the General Partner shall, in its sole discretion, determine
whether to make any available election. 
The General Partner shall elect under Section 754 of the Code to cause
the basis of Partnership property to be adjusted for federal income tax
purposes as provided by Sections 734 and 743 of the Code, but the General
Partner may seek to revoke this election if the General Partner determines that
such revocation is in the best interests of the Limited Partners.

Section
6.4                                      Tax Controversies

Subject to the provisions
hereof, the General Partner is designated as the Tax Matters Partner (as
defined in Section 6231 of the Code) and is authorized and required to
represent the Partnership (at the Partnership’s expense) in connection with all
examinations of the Partnership’s affairs by tax authorities, including
resulting administrative and judicial proceedings, and to expend Partnership
funds for professional services and costs associated therewith.  Each Limited Partner agrees to cooperate with
the General Partner and to do or refrain from doing any and all things
reasonably required by the General Partner to conduct such proceedings.

 

16

 

Section
6.5                                      Withholding

The General Partner is
authorized to take any action necessary to comply with any withholding
requirements established by applicable law, including, without limitation, with
regard to (a) the sale of United States real property interests, (b) the
distributions of cash or property to any Partner which is a foreign Person, and
(c) the transfer of Units.

ARTICLE VII

MANAGEMENT AND OPERATION OF BUSINESS; INDEMNIFICATION

Section
7.1                                      Powers of General Partner

Except as otherwise
expressly provided in this Agreement, all powers to control and manage the
business and affairs of the Partnership shall be exclusively vested in the
General Partner, and no Limited Partner shall have any power to control or
manage the business and affairs of the Partnership.

In addition to the powers
now or hereafter granted a general partner of a limited partnership under
applicable law or which are granted to the General Partner under any other
provisions of this Agreement, the General Partner is hereby authorized and
empowered, in the name of and on behalf of the Partnership, to do and perform
any and all acts and things which it deems appropriate or necessary in the
conduct of the business and affairs of the Partnership, including, without
limitation, the following:

(a)           to lend or borrow money, to assume,
guarantee or otherwise become liable for indebtedness and other liabilities and
to issue evidences of indebtedness;

(b)           to buy, lease (as lessor or lessee),
sell, mortgage, encumber or otherwise acquire or dispose of any or all of the
assets of the Partnership;

(c)           to own, use and invest the assets of
the Partnership;

(d)           to purchase or sell products,
services and supplies;

(e)           to make tax, regulatory and other
filings, and to render periodic and other 
reports, to governmental agencies or bodies having jurisdiction over the
assets or business of the Partnership;

(f)            to open, maintain and close bank
accounts and to draw checks and other orders for the payment of money;

(g)           to negotiate, execute and perform any
contracts, conveyances or other instruments;

(h)           to distribute Partnership cash;

 

17

 

(i)            to utilize the services of officers
and employees of the General Partner or of any other Persons and to select and
dismiss employees (if any) and outside attorneys, accountants, consultants and
contractors;

(j)            to maintain insurance for the
benefit of the Partnership and the Partners;

(k)           to form, participate in or contribute
or loan cash or property to limited or general partnerships, joint ventures,
limited liability companies, corporations or similar arrangements;

(l)            to expand the business activities in
which the Partnership is engaged or engage in new business activities by
acquisition or internal development;

(m)          to conduct litigation and incur legal
expenses and otherwise deal with or settle claims or disputes; and

(n)           to purchase, sell or otherwise
acquire or dispose of Units;

in each case at such
times and upon such terms and conditions as the General Partner deems appropriate
or necessary, and subject to any express restrictions contained elsewhere in
this Agreement.

Section
7.2                                      Duties of General Partner

The General Partner shall
manage the business and affairs of the Partnership in the manner the General
Partner deems appropriate or necessary. 
Without limiting the generality of the foregoing, the General Partner’s
duties shall include the following:

(a)           to take possession of the assets of
the Partnership;

(b)           to staff and operate the business of
the Partnership with the officers and 
employees  of the General Partner
or of other Persons;

(c)           to render or cause to be rendered
engineering, environmental and other  
technical services and perform or cause to be performed financial,
accounting, logistical and other administrative functions for the Partnership;

(d)           to render such reports and make such
periodic and other filings as may be required under applicable federal, state
and local laws, rules and regulations;

(e)           to provide or cause to be provided
purchasing, procurement, repair and other services for the Partnership; and

(f)            to conduct the business of the
Partnership in accordance with this Agreement and all applicable laws, rules
and regulations;

in each case in such a
manner as the General Partner deems appropriate or necessary.

 

18

 

Section
7.3                                      Reliance by Third Parties

Notwithstanding anything
to the contrary in this Agreement, any Person dealing with the Partnership
shall be entitled to assume that the General Partner has full power and
authority to encumber, sell or otherwise use in any manner any and all assets
of the Partnership and to enter into any contracts on behalf of the
Partnership, and such Person shall be entitled to deal with the General Partner
as if it were the Partnership’s sole party in interest, both legally and
beneficially.  Each Limited Partner
hereby waives any and all defenses or other remedies which may be available
against such Person to contest, negate or disaffirm any action of the General Partner
in connection with any such dealing.  In
no event shall any Person dealing with the General Partner or its
representatives be obligated to ascertain that the terms of this Agreement have
been complied with or to inquire into the necessity or expedience of any act or
action of the General Partner or its representatives.  Each and every certificate, document or other
instrument executed on behalf of the Partnership by the General Partner or its
representatives shall be conclusive evidence in favor of any and every Person
relying thereon or claiming thereunder that (a) at the time of the execution
and delivery of such certificate, document or instrument, this Agreement was in
full force and effect, (b) the Person executing and delivering such certificate,
document or instrument was duly authorized and empowered to do so for and on
behalf of the Partnership and (c) such certificate, document or instrument was
duly executed and delivered in accordance with the terms and provisions of this
Agreement and is binding upon the Partnership.

Section
7.4                                      Compensation and Reimbursement of the
General Partner

(a)           Except as provided in this Section
7.4 or elsewhere in this Agreement the Incentive Compensation Agreement or any
other agreement contemplated or permitted hereby or thereby, the General
Partner shall not be compensated for its services as General Partner to the
Partnership.

(b)           The General Partner shall be promptly
reimbursed for all Designated Expenses, in addition to any reimbursement as a
result of indemnification in accordance with Section 7.12. The General Partner
shall determine such Designated Expenses in any reasonable manner determined by
it.

(c)           The General Partner may propose and
adopt without the approval of the Limited Partners fringe benefit plans,
including, without limitation, plans comparable to those that covered employees
employed by the predecessors to the Operating Partnerships and plans involving
the issuance of Units, for the benefit of employees of  the General Partner, Partnership,  any of the Operating Partnerships or any of
their respective Affiliates in respect of 
services performed, or obligated to be performed, directly or
indirectly, for the benefit of the Partnership or any of the Operating
Partnerships.

Section
7.5                                      Purchase or Sale of LP Units and Other
Partnership Securities

The General Partner may,
on behalf of the Partnership, purchase or otherwise acquire or sell or
otherwise dispose of LP Units and other Partnership Securities.  As long as LP Units are held by any member of
the Partnership Group, such LP Units or other Partnership Securities shall not
be considered outstanding for any purpose. 
The General Partner or any of its Affiliates

 

19

 

may also purchase
or otherwise acquire or sell or otherwise dispose of LP Units and other
Partnership Securities for its own account.

Section
7.6                                      Certain Undertakings Relating to the
Separateness of the Partnership

(a)           The Partnership shall conduct its
business and operations separate and apart from those of any other Person
(including Holdco), except the General Partner and other Group Members, in
accordance with this Section 7.6.

(b)           The Partnership shall (i) maintain
its books and records and its accounts separate from those of any other Person,
(ii) maintain its financial statements separate from those of any other Person,
except its consolidated subsidiaries, and (iii) file its own tax returns
separate from those of any other Person, except to the extent that the
Partnership is treated as a “disregarded entity” for tax purposes or is not
otherwise required to file tax returns under applicable law.

(c)           The Partnership shall not commingle
or pool its assets with those of any other Person, except its consolidated
subsidiaries, and shall maintain its assets in a manner that is not costly or
difficult to segregate, ascertain or otherwise identify as separate from those
of any other Person. The funds of the Partnership shall be deposited in such
account or accounts as shall be designated by the General Partner, and shall
not be commingled with the funds of the General Partner or any of its
Affiliates.  All withdrawals from or
charges against such accounts shall be made by the General Partner or by its
agents on behalf of the Partnership. 
Funds of the Partnership may be invested as determined by the General
Partner.

(d)           The Partnership shall (i) conduct its
business in its own name or in the names of other Group Members, (ii) use
separate stationery, invoices, and checks, (iii) correct any known misunderstanding
regarding its separate identity, and (iv) generally hold itself out as an
entity separate from any other Person (other than other Group Members).

(e)           The Partnership (i) shall pay its own
liabilities from its own funds, (ii) shall maintain adequate capital in light
of its contemplated business operations, (iii) shall not guarantee or become
obligated for the debts of any other Person, except Group Members and except
for the Partnership’s obligations under the Services Agreement, (iv) shall not
hold out its credit as being available to satisfy the obligations of any other
Person, except Group Members and except for the Partnership’s obligations under
the Services Agreement, (v) shall not acquire obligations or debt securities of
Holdco and (vi) shall not pledge its assets to secure the obligations of any
other Person or make loans or advances to any Person, except Group Members or
the General Partner or OLP GP pursuant to Section 7.7(j); provided that the
Partnership may engage in any transaction described in clauses (iii)-(vi) of
this Section 7.6(e) if Special Approval has been obtained for such transaction
and either (A) the Audit Committee has determined, or has obtained reasonable
written assurance from a nationally recognized firm of independent public
accountants or a nationally recognized investment banking or valuation firm,
that the borrower or recipient of the credit extension is not then insolvent
and will not be rendered insolvent as a result of such transaction or (B) in
the case of transactions described in clause (v), such transaction is completed
through a public auction or a National Securities Exchange.

 

20

 

(f)            The Partnership shall (i) observe
all partnership formalities and other formalities required by its
organizational documents, the laws of the jurisdiction of its formation, or
other laws, rules, regulations and orders of governmental authorities
exercising jurisdiction over it, (ii) only enter into transactions with Holdco which
are consistent with an arms-length relationship, and (iii) subject to the terms
of the Exchange Agreement, promptly pay, from its own funds, and on a current
basis, its allocable share of general and administrative expenses, capital
expenditures, and costs for shared services performed by Holdco.  Each material contract between the
Partnership or another Group Member, on the one hand, and Holdco, on the other
hand, shall be in writing.

(g)           Failure by the Partnership to comply
with any of the obligations set forth above shall not affect the status of the
Partnership as a legal entity, with its separate assets and separate
liabilities.

Section
7.7                                      Outside Activities; Contracts with
Affiliates; Loans to or from Affiliates

(a)           The General Partner shall not have
any business interests or engage in any business activities except for those
relating to the Partnership and the Operating Partnerships.

(b)           Any Affiliate of the General Partner
and any director, officer, manager, member, partner or employee of the General
Partner or any of its Affiliates shall be entitled to and may have business
interests and engage in business activities in addition to those relating to
the Partnership, including business interests and activities in direct
competition with the Partnership Group, for their own account and for the
account of others, without having or incurring any obligation to offer any
interest in such businesses or activities to the Partnership Group or any
Partner.  No member of the Partnership
Group nor any of the Partners shall have any rights by virtue of this Agreement
or the partnership relationship governed hereby in any such business interests.

(c)           Each of the Limited Partners hereby
approves, ratifies and confirms the execution, delivery and performance of the
Operating Partnership Agreements, the Incentive Compensation Agreement, the
Management Agreements, and the Exchange Agreement and agrees that the General
Partner is authorized to execute, deliver and perform the other agreements,
acts, transactions and matters described therein on behalf of the Partnership
without the approval or vote of any Limited Partners, notwithstanding any other
provision of this Agreement or the Operating Partnership Agreements.

(d)           Subject to the provisions of Section
7.4(a), the General Partner and its Affiliates may enter into contracts with,
or render services to, any member of the Partnership Group, provided that such
contracts or services are on terms that are fair and reasonable to the
Partnership.

(e)           Neither the General Partner nor any
of its Affiliates shall sell, transfer or convey property to, or purchase
property from, the Partnership, directly or indirectly, except pursuant to
transactions that are fair and reasonable to the Partnership.

(f)            The General Partner or its Affiliates
may, but shall be under no obligation to, lend to any Group Member, upon the
written request of any Group Member to the General Partner or

 

21

 

any of its Affiliates, funds needed or desired by the Group
Member for such periods of time and in such amounts as the Audit Committee of
the General Partner may determine; provided, however, that in any such case the
Audit Committee shall have first determined that the interest rate charged the
borrowing party and the terms imposed on the borrowing party are substantially
similar to those that would be charged or imposed, as applicable, on the
borrowing party by unrelated lenders on comparable loans made on an arm’s-length
basis (without reference to the lending party’s financial abilities or
guarantees).  The borrowing party shall
reimburse the lending party for any costs (other than any additional interest
costs) incurred by the lending party in connection with the borrowing of such
funds.

(g)           The Partnership may lend or
contribute to any Group Member, and any Group Member may borrow from the
Partnership, funds on terms and conditions established in the sole discretion
of the General Partner; provided, however, that the Partnership may not charge
the Group Member interest at a rate less than the rate that would be charged to
the Group Member (without reference to the Group Member’s financial abilities
or guarantees) by unrelated lenders on comparable loans.  The foregoing authority shall be exercised by
the General Partner in its sole discretion and shall not create any right or
benefit in favor of any Group Member or any other Person.

(h)           The General Partner may itself, or
may enter into an agreement with any of its Affiliates to, render services to a
Group Member or to the General Partner in the discharge of its duties as
general partner of the Partnership.  Any
services rendered to a Group Member by the General Partner or any of its
Affiliates shall be on terms that are fair and reasonable to the Partnership;
provided, however, that the requirements of this Section 7.7(h) shall be deemed
satisfied as to (i) any transaction approved by Special Approval, or (ii) any
transaction, the terms of which are objectively demonstrable to be no less
favorable to the Partnership Group than those generally being provided to or
available from unrelated third parties. 
The provisions of Section 7.4 shall apply to the rendering of services
described in this Section 7.7(h).

(i)            The General Partner and its
Affiliates will have no obligation to permit any Group Member to use any
facilities or assets of the General Partner and its Affiliates, except as may
be provided in written contracts entered into from time to time specifically
dealing with such use, nor shall there be any obligation on the part of the
General Partner or its Affiliates to enter into such contracts.

(j)            Subject to the provisions of Section
7.6(e) and Section 7.9, the Partnership may lend funds to the General Partner
or any of its Affiliates for such periods of time and in such amounts as the
Audit Committee of the General Partner may determine; provided, however, that
(i) in any such case the Audit Committee shall have first determined that the
interest rate charged the borrowing party and the terms imposed on the borrowing
party are substantially similar to those that would be charged or imposed, as
applicable, on the borrowing party by unrelated lenders on comparable loans
made on an arm’s-length basis (without reference to the lending party’s
financial abilities or guarantees) and (ii) the Partnership may not lend funds
to the General Partner or any of its Affiliates unless such funds consist of
funds available after provision for working capital and such reserves as the
General Partner deems appropriate.

 

22

 

Section
7.8                                      Tax Basis and Value Determinations

To the extent that the
General Partner is required pursuant to the provisions of this Agreement to
establish fair market values or allocate amounts realized, tax basis, Agreed
Values or Net Agreed Values, the General Partner shall establish such values
and make such allocations in a manner that is reasonable and fair to the
Limited Partners, taking into account all applicable laws, governmental
regulations, rulings and decisions.  The
General Partner may, in its sole discretion, modify or revise such allocations
in order to comply with such laws, governmental regulations, rulings or
decisions or to the extent it otherwise deems such modification or revision
appropriate or necessary.  The General
Partner is authorized, to the extent deemed by it to be appropriate or
necessary, to utilize the services of an independent appraiser in establishing
such values or allocations and the General Partner shall in such cases be entitled
to rely on the values or allocations established by such independent appraiser.

Section
7.9                                      Resolution of Conflicts of Interest;
Standard of Care

(a)           Unless otherwise expressly provided
in this Agreement or any other agreement contemplated hereby, whenever a
conflict of interest exists or arises between the General Partner or any of its
Affiliates, on the one hand, and the Partnership or any Limited Partner, on the
other hand, any resolution or course of action by the General Partner or such
Affiliate in respect of such conflict of interest shall be permitted and deemed
approved by all Partners, and shall not constitute a breach of this Agreement
or of any agreement contemplated hereby, or of a duty stated or implied by law
or equity, if the resolution or course of action is, or by operation of this
Agreement is deemed to be, fair and reasonable to the Partnership; provided
that any conflict of interest and any resolution of such conflict of interest
shall be conclusively deemed fair and reasonable to the Partnership if such
conflict of interest or resolution is (i) approved by Special Approval (as long
as the material facts known to the officers and directors of the General
Partner or such Affiliate regarding any proposed transaction were disclosed to
the Audit Committee at the time of its approval), (ii) on terms objectively
demonstrable to be no less favorable to the Partnership than those generally
being provided to or available from unrelated third parties, or (iii) fair to
the Partnership, taking into account the totality of the relationships among
the parties involved (including other transactions that may be particularly
favorable or advantageous to the Partnership). 
For the avoidance of doubt, in connection with its resolution of a
conflict of interest the General Partner is authorized but not required to seek
Special Approval and may adopt a resolution or course of action that has not
received Special Approval.  In connection
with the determination by the General Partner (or the Audit Committee in
connection with Special Approval, as applicable) of what is fair and reasonable
to the Partnership in connection with its resolution of a conflict of interest,
the General Partner (or the Audit Committee) shall be authorized to consider
(A) the relative interests of each party to such conflict, agreement,
transaction or situation, and the benefits and burdens relating to such
interests; (B) any customary or accepted industry practices, and any customary
or historical dealings with a particular Person; (C) any applicable generally
accepted accounting or engineering practices or principles; and (D) such
additional factors as the Audit Committee determines in its sole discretion to
be relevant, reasonable or appropriate under the circumstances.  Nothing contained in this Agreement, however,
is intended to, nor shall it be construed to require the General Partner (or
the Audit Committee) to consider the interests of any Person other than the
Partnership.  In the absence of bad faith
by the General Partner, the resolution, action or terms so

 

23

 

made, taken or provided by the General Partner in
compliance with this Section 7.9 shall not constitute a breach of this
Agreement or any other agreement contemplated hereby or a breach of any
standard of care or duty imposed hereby or under the Delaware Act or any other
applicable law, rule or regulation.

(b)           Whenever a particular transaction,
arrangement or resolution of a conflict of interest is required under this
Agreement or any agreement contemplated hereby to be fair and/or reasonable to
any Person, the fair and/or reasonable nature of such transaction, arrangement
or resolution shall be considered in the context of similar or related
transactions.

(c)           Whenever this Agreement or any other
agreement contemplated hereby provides that the General Partner or any of its
Affiliates is permitted or required to make a decision (i) in its “discretion”
or under a grant of similar authority or latitude, the General Partner or such
Affiliate shall be entitled, to the extent permitted by applicable law, to
consider only such interests and factors as it desires and shall have no duty
or obligation to give any consideration to any interest of or factors affecting
the Partnership or the Limited Partners, or (ii) in its “good faith” or under
another express standard, the General Partner or such Affiliate shall act under
such express standard and, except as required by applicable law, shall not be
subject to any other or different standards imposed by this Agreement, any
other agreement contemplated hereby or applicable law.

Section
7.10                                Treatment of Incentive Compensation
Agreement

                The economic effect of recharacterizing payments
pursuant to the terms of the Incentive Compensation Agreement as distributions
pursuant to Section 5.2(c) (as implemented by the changes to the 2004 Agreement
made by this Agreement as well as the adoption of the fifth amendment and
restatement of the Incentive Compensation Agreement) are intended to provide that
(i) holders of the Partnership Interest evidenced by the Incentive Compensation
Agreement are in no greater economic position as a substantive matter with
respect to such Partnership Interest as the position that Holdco enjoyed prior
to the Effective Date of this Agreement pursuant to the terms and conditions of
the Fourth Amended and Restated Incentive Compensation Agreement, dated as of
December 15, 2004 and (ii) holders of the Partnership Interests evidenced by
the LP Units are in no lesser economic position as a substantive matter as the
position that such holders of the Partnership Interests evidenced by the LP
Units enjoyed prior to the Effective Date. 
The changes effected by the adoption of this Agreement and the Incentive
Compensation Agreement are intended solely to recharacterize the payment under
the Incentive Compensation Agreement as distributions pursuant to Section
5.2(c).  The Partnership Interests
evidenced by the Incentive Compensation Agreement constitute a portion of the
general partner’s rights and interests in the Partnership separate from the GP
Units, and such Partnership Interests shall only provide the economic and
contractual rights set forth in the Incentive Compensation Agreement and, to
the fullest extent permitted by law, shall provide no voting or other rights to
the holders thereof (in their capacity as holders of such Partnership
Interests) (whether such rights would otherwise be granted under the Delaware
Act or other applicable law).  For the
avoidance of doubt, to the fullest extent permitted by law, there shall be no
fiduciary duties associated with such Partnership Interest or owing to the
holders thereof (in their capacity as holders of such Partnership
Interests).  In connection with the
conditions imposed by this Section 7.10, the General Partner shall take
whatever appropriate or necessary steps required

 

24

 

to provide that
such conditions are satisfied, including the application of Sections 5.1(c)(v)
and (vi).

Section
7.11                                Other Matters Concerning the General
Partner

(a)           The General Partner (including the
Audit Committee) may rely and shall be protected in acting or refraining from
acting upon any certificate, document or other instrument believed by it to be
genuine and to have been signed or presented by the proper party or parties.

(b)           The General Partner (including the
Audit Committee) may consult with legal counsel, accountants, appraisers,
management consultants, investment bankers and other consultants and advisors
selected by it and shall be fully protected in relying on any opinion or advice
of any such Person as to matters which the General Partner (including the Audit
Committee) believes to be within such Person’s professional or expert
competence in connection with any action taken or suffered or omitted by the
General Partner (including the Audit Committee) hereunder in good faith and in
accordance with such opinion or advice.

(c)           The General Partner (including the
Audit Committee) may exercise any of the powers granted to it by this Agreement
and perform any of the duties imposed upon it hereunder either directly or by
or through its agents, and the General Partner (including the Audit Committee)
shall not be responsible for any misconduct or negligence on the part of any
such agent appointed by the General Partner in good faith.

Section
7.12                                Limited Liability; Indemnification

(a)           Notwithstanding anything to the
contrary in this Agreement, and except to the extent required by applicable
law, no Indemnitee shall be liable to the Partnership or any Partner for any
action taken or omitted to be taken by such Indemnitee in its capacity as a
person of the type described in the definition of the term, “Indemnitee,”
provided that such Indemnitee acted in good faith and such action or omission
does not involve the gross negligence or willful misconduct of such
Indemnitee.  The termination of any
action, suit or proceeding by judgment, order, settlement, conviction or upon a
plea of nolo contendere, or its equivalent, shall not, of itself, create a
presumption that an Indemnitee did not act in good faith or that an action or
omission involves gross negligence or willful misconduct.

(b)           The Partnership shall, to the extent
permitted by applicable law, indemnify each Indemnitee against expenses
(including legal fees and expenses), judgments, fines and amounts paid in
settlement, actually and reasonably incurred by such Indemnitee, in connection
with any threatened, pending or completed claim, demand, action, suit or
proceeding to which such Indemnitee was or is a party or is threatened to be
made a party, by reason of (i) such Indemnitee’s status as a General Partner,
any Affiliate of the General Partner, any Person who is or was a director,
officer, manager, member, employee or agent of the General Partner or any such
Affiliate, or any Person who is or was serving at the request of the General
Partner or any such Affiliate as a director, officer, manager, member, partner,
trustee, employee or agent of another Person or (ii) any action taken or
omitted to be taken by such Indemnitee in any capacity referred to in clause
(i) of this Section 7.12(b), relating to this Agreement or the property,
business, affairs or management of the Partnership Group (provided that the
Indemnitee acted in

 

25

 

good faith and the act or omission which is the basis
of such claim, demand, action, suit or proceeding does not involve the gross
negligence or willful misconduct of such Indemnitee).

(c)           Expenses (including legal fees and
expenses) incurred in defending any claim, demand, action, suit or proceeding
subject to Section 7.12(b) shall be paid by the Partnership in advance of the
final disposition of such claim, demand, action, suit or proceeding upon
receipt of an undertaking (which need not be secured) by or on behalf of the
Indemnitee to repay such amount if it shall ultimately be determined, by a
court of competent jurisdiction, that the Indemnitee is not entitled to be
indemnified by the Partnership as authorized hereunder.

(d)           The indemnification provided by
Section 7.12(b) shall be in addition to any other rights to which an Indemnitee
may be entitled, and shall continue as to an Indemnitee who has ceased to serve
in a capacity for which the Indemnitee is entitled to indemnification and shall
inure to the benefit of the heirs, successors, assigns, administrators and
personal representatives of the Indemnitee.

(e)           To the extent commercially
reasonable, the Partnership shall purchase and 
maintain insurance on behalf of the Indemnitees against any liability
which may be asserted against or expense which may be incurred by an Indemnitee
in connection with the Partnership’s activities, whether or not the Partnership
would have the power to indemnify an Indemnitee against such liability under
the provisions of this Agreement.

(f)            An Indemnitee shall not be denied
indemnification in whole or in part under Section 7.12(b) because the
Indemnitee had an interest in the transaction with respect to which the indemnification
applies if the transaction was otherwise permitted by the terms of this
Agreement.

(g)           The provisions of this Section 7.12
are for the benefit of the Indemnitees and the heirs, successors, assigns,
administrators and personal representatives of the Indemnitees and shall not be
deemed to create any rights for the benefit of any other Persons.

(h)           For purposes of this Section 7.12,
the Partnership shall be deemed to have requested an Indemnitee to serve as
fiduciary of an employee benefit plan whenever the performance of duties by
such Indemnitee for the Partnership also imposes duties on, or otherwise
involves services by, such Indemnitee to the plan or participants or
beneficiaries of the plan; excise taxes assessed on an Indemnitee with respect
to an employee benefit plan pursuant to applicable law shall constitute “fines”
within the meaning of Section 7.12(b); and action taken or omitted by an
Indemnitee with respect to any employee benefit plan in the performance of
duties by such Indemnitee for a purpose reasonably believed by such Indemnitee
to be in the interest of the participants and beneficiaries of the plan shall
be deemed to be for a purpose which does not involve gross negligence or
willful misconduct.

(i)            In no event may an Indemnitee
subject the Limited Partners to personal liability by reason of the
indemnification provisions set forth in this Agreement.

(j)            No amendment, modification or repeal
of this Section 7.12 or any provision hereof shall in any manner terminate,
reduce or impair the right of any past, present or future Indemnitee to be
indemnified by the Partnership, nor the obligations of the Partnership to

 

26

 

indemnify any such Indemnitee under and in accordance
with the provisions of this Section 7.12 as in effect immediately prior to such
amendment, modification or repeal with respect to claims arising from or
relating to matters occurring, in whole or in part, prior to such amendment,
modification or repeal, regardless of when such claims may arise or be asserted
and provided that such Person became an Indemnitee hereunder prior to such
amendment, modification or repeal.

ARTICLE VIII

RIGHTS AND OBLIGATIONS OF LIMITED PARTNERS

Section
8.1                                      Limitation of Liability

The Limited Partners
shall have no liability under this Agreement (including, without limitation,
liability under Section 7.12).

Section
8.2                                      Management of Business

No Limited Partner shall,
in its capacity as a Limited Partner, take part in the operation, management or
control (within the meaning of the Delaware Act) of the Partnership’s business,
transact any business in the Partnership’s name or have the power to sign
documents for or otherwise bind the Partnership.  The transaction of any such business by a
director, officer, manager, member, employee or agent of the General Partner or
an Affiliate of the General Partner in such Person’s capacity as such (whether
or not such Person is also a Limited Partner) shall not affect, impair or
eliminate the limitations on the liability of the Limited Partners under this
Agreement.

Section
8.3                                      Outside Activities

Limited Partners shall be
entitled to and may have business interests and engage in business activities
in addition to those relating to the Partnership, including business interests
and activities in direct competition with the Partnership Group.  No member of the Partnership Group nor any of
the other Partners shall have any rights by virtue of this Agreement or the
partnership relationship created hereby in any business ventures of any Limited
Partner.

Section
8.4                                      Return of Capital

No Limited Partner shall
be entitled to the withdrawal or return of its Capital Contribution, except to
the extent, if any, that distributions made pursuant to this Agreement or upon
termination of the Partnership may be considered as such by law and then only
to the extent provided for in this Agreement.

Section
8.5                                      Rights of Limited Partners Relating to
the Partnership

In addition to other
rights provided by this Agreement or by applicable law, each Limited Partner
shall have the right for a proper purpose reasonably related to such Limited
Partner’s interest in the Partnership, upon reasonable demand and at such
Limited Partner’s own expense:

 

27

 

(a)           to obtain true and full information
regarding the status of the business and financial condition of the
Partnership;

(b)           promptly after becoming available, to
obtain a copy of the Partnership’s federal and state income tax returns for
each year;

(c)           to obtain a current list of the name
and address of each Partner as set forth in the Units Register;

(d)           to obtain a description and statement
of the Net Agreed Value of any Capital Contribution made or agreed to be made
by each Partner, and the date on which such Partner became a Partner;

(e)           to obtain a copy of this Agreement
and the Certificate of Limited Partnership and all amendments thereto, together
with executed copies of any powers of attorney pursuant to which this
Agreement, the Certificate of Limited Partnership and all amendments thereto
have been executed; and

(f)            to obtain such other information
regarding the affairs of the Partnership as may be just and reasonable;

provided, however, that
the General Partner may keep confidential from the Limited Partners, for such
period of time as the General Partner deems reasonable, any information which
the General Partner reasonably believes to be in the nature of trade secrets or
other information the disclosure of which the General Partner in good faith
believes could damage the Partnership or its business or be in violation of
applicable law, including, without limitation, federal securities law, or which
the Partnership is required by agreements with third parties to keep
confidential.

ARTICLE IX

BOOKS, RECORDS,  ACCOUNTING AND REPORTS

Section
9.1                                      Books, Records and Accounting

The General Partner shall
keep or cause to be kept books and records with respect to the Partnership’s
business, which books and records shall at all times be kept at the principal
office of the Partnership.  Any books and
records maintained by the Partnership in the regular course of its business,
including the Units Register, books of account and records of Partnership
proceedings, may be kept on, or be in the form of, punch cards, disks, magnetic
tape, photographs, micrographics or any other information storage device,
provided that the records so kept are convertible into clearly legible written
form within a reasonable period of time. 
The books of the Partnership shall be maintained, for financial
reporting purposes, on the accrual basis, or on a cash basis adjusted
periodically to an accrual basis, as the General Partner shall determine in its
sole discretion, in accordance with generally accepted accounting principles and
applicable law.

 

28

 

Section
9.2                                      Fiscal Year

The fiscal year of the
Partnership for financial reporting purposes shall be the calendar year, unless
the General Partner shall determine otherwise in its sole discretion.

Section
9.3                                      Reports

(a)           As soon as practicable, but in no
event later than 90 days after the close of each fiscal year, the General
Partner shall cause to be mailed to each Record Holder of LP Units as of the
last day of that fiscal year reports containing financial statements of the
Partnership for the fiscal year, presented in accordance with generally
accepted accounting principles, including a balance sheet, statement of income,
statement of Partners’ capital and statement of changes in financial position,
such statements to be audited by a nationally recognized firm of independent
public accountants selected by the General Partner.

(b)           As soon as practicable, but in no
event later than 45 days after the close of each calendar quarter, except the
last calendar quarter of each fiscal year, the General Partner shall cause the
Partnership to electronically file with the Securities and Exchange Commission
a quarterly report for the calendar quarter containing such financial and other
information as the General Partner deems appropriate.

(c)           Such reports shall present the
consolidated financial position of the Partnership Group, but shall not
consolidate the assets or liabilities of any other Affiliates of the General
Partner.  Such reports shall contain
notes indicating that the assets and liabilities of the Partnership Group are
separate from the assets and liabilities of the other Affiliates of the General
Partner.

ARTICLE X

ISSUANCE OF LP CERTIFICATES; TRANSFER AND EXCHANGE OF LP UNITS

Section
10.1                                Initial Issuance of LP Certificates

Upon the issuance of LP
Units to any Person, the Partnership will issue one or more LP Certificates in
the name of such Person evidencing the number of such LP Units being so
issued.  LP Certificates shall be executed
on behalf of the Partnership by the General Partner.  No LP Certificate shall be valid for any
purpose until manually countersigned by the Transfer Agent.

Section
10.2                                Registration, Registration of Transfer
and Exchange

(a)           The Partnership will cause to be kept
a register (the “Units Register”) in which, subject to such reasonable
regulations as it may prescribe and subject to the provisions of Section
10.2(b), the Partnership will provide for the registration of LP Units and of
transfers of such LP Units.  The Transfer
Agent is hereby appointed registrar for the purpose of registering LP Units and
transfers of such LP Units as herein provided.

Upon surrender for
registration of transfer or exchange of any LP Certificate, and subject to the
provisions of Section 10.2(b), the General Partner on behalf of the Partnership
will

 

29

 

execute, and the
Transfer Agent will countersign and deliver, in the name of the holder or the
designated transferee or transferees, as required pursuant to the holder’s
instructions, one or more new LP Certificates evidencing the same aggregate
number of LP Units as did the LP Certificate so surrendered.

(b)           Every LP Certificate surrendered for
registration of transfer or exchange shall be duly endorsed on the reverse side
thereof, or be accompanied by a written instrument of transfer in form
satisfactory to the General Partner or the Transfer Agent, as the case may be,
duly executed, in either case by the holder thereof or such holder’s attorney
duly authorized in writing.  Every LP
Certificate surrendered for registration of transfer shall be duly accepted on
the reverse side thereof, or be accompanied by a written instrument of
acceptance to the same effect in form satisfactory to the General Partner or
the Transfer Agent, as the case may be, duly executed, in either case by the
transferee or such transferee’s attorney duly authorized in writing.  As a condition to the issuance of any new LP
Certificate under this Section 10.2, the General Partner may require the
payment of a sum sufficient to cover any tax or other governmental charge that
may be imposed in relation thereto.

Section
10.3                                Mutilated, Destroyed, Lost or Stolen LP
Certificates

(a)           If any mutilated LP Certificate is
surrendered to the Transfer Agent, the General Partner on behalf of the
Partnership shall execute and the Transfer Agent shall countersign and deliver
in exchange therefor a new LP Certificate evidencing the same number of LP
Units as did the LP Certificate so surrendered.

(b)           If there shall be delivered to the
General Partner and the Transfer Agent (i) evidence to their satisfaction of
the destruction, loss or theft of any LP Certificate and (ii) such security or
indemnity as may be required by them to save each of them and any of their
agents harmless, then, in the absence of notice to the General Partner or the
Transfer Agent that such LP Certificate has been acquired by a bona fide
purchaser, the General Partner on behalf of the Partnership shall execute and upon
its request the Transfer Agent shall countersign and deliver, in lieu of any
such destroyed, lost or stolen Certificate, a new LP Certificate evidencing the
same number of LP Units as did the LP Certificate so destroyed, lost or stolen.

(c)           As a condition to the issuance
of  any new LP Certificate under this
Section 10.3,  the General Partner may
require the payment of a sum sufficient to cover any tax or other governmental
charge that may be imposed in relation thereto and any other expenses (including
the fees and expenses of the Transfer Agent) connected therewith.

(d)           Every new LP Certificate issued
pursuant to this Section 10.3 in lieu of any destroyed, lost or stolen LP
Certificate shall evidence an original additional Partnership Interest in the Partnership,
whether or not the destroyed, lost or stolen LP Certificate shall be at any
time enforceable by anyone, and shall be entitled to all the benefits of this
Agreement equally and proportionately with any and all other LP Units duly
issued hereunder.

Section
10.4                                Persons Deemed Owners

Prior to due presentment
of an LP Certificate for registration of transfer and satisfaction of the
requirements of Section 10.2(b) with respect thereto, (a) the Partnership, the
General

 

30

 

Partner, the
Transfer Agent and any agent of any of the foregoing may deem and treat the
Record Holder as the absolute owner thereof and of the LP Units evidenced
thereby for all purposes whatsoever and (b) a transferee shall not be entitled
to distributions or allocations or any other rights in respect of the LP Units
evidenced thereby other than the right to further transfer such LP Units.

ARTICLE XI

TRANSFER OF GP UNITS

Section
11.1                                Transfer of GP Units

The General Partner may
not transfer any GP Units unless (a) all of its GP Units are being transferred
and the transferee or transferees assume all of the rights and obligations of
the General Partner hereunder, (b) the transfer is to an Affiliate or
Affiliates of the General Partner or is in connection with the General Partner’s
merger or consolidation with, or a transfer of all or substantially all of the
General Partner’s assets to, another Person, or the transfer is approved by a
Majority Interest, and (c) the Partnership receives an Opinion of Counsel that
such transfer would not result in the loss of limited liability of any Limited
Partner or cause the Partnership or any of the Operating Partnerships to be
treated as an association taxable as a corporation for federal income tax
purposes.

Section
11.2                                Successor General Partner

Any transferee of GP
Units pursuant to Section 11.1 shall automatically be admitted to the
Partnership as the successor General Partner, and the transferor of such GP
Units shall, if it has also transferred all Partnership Interests evidenced by
the Incentive Compensation Agreement, automatically cease to be the General
Partner, effective at the time provided in Section 12.3.  No such transfer shall be deemed a withdrawal
pursuant to Article XIII.

ARTICLE XII

ADMISSION OF INITIAL, SUBSTITUTED AND ADDITIONAL

LIMITED PARTNERS AND SUCCESSOR GENERAL PARTNER

Section
12.1                                Admission of Initial Limited Partners

At and as of the Time of
Delivery, the initial Record Holders of LP Units purchased pursuant to Section
4.2 shall automatically become Limited Partners and the Organizational Limited
Partner shall automatically cease to be a Limited Partner.

Section
12.2                                Admission of Substituted Limited Partners

A transferee of LP Units
shall automatically be admitted to the Partnership as a Limited Partner (and
the transferor of such LP Units shall, if such transferor is assigning all of
such transferor’s LP Units, automatically cease to be a Limited Partner) at and
as of the time the transfer is registered on the Units Register pursuant to
Section 10.2.

 

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Section
12.3                                Admission of Successor General Partner

A successor General
Partner approved pursuant to Section 13.1 or the proviso to Section 14.1 or the
transferee of all of the GP Units pursuant to Section 11.1 shall be admitted to
the Partnership as the successor General Partner, effective as of the date an
amendment or restatement of the Certificate of Limited Partnership is filed
with the Secretary of State of the State of Delaware effecting such
substitution; provided, however, that no such successor shall be so admitted to
the Partnership until it has agreed in writing to assume the former General
Partner’s obligations hereunder.  This
Agreement and the Certificate of Limited Partnership shall be amended as
appropriate to reflect the termination of the former General Partner as a
general partner, if applicable, and the admission of the successor General
Partner.

Section
12.4                                Admission of  Additional Limited Partners

(a)           A Person (other than the initial
Record Holders of LP Units pursuant to Section 4.2 or a transferee of LP Units)
who makes a Capital Contribution to the Partnership in accordance with this
Agreement shall be admitted to the Partnership as an additional Limited Partner
only upon furnishing to the General Partner (i) a written instrument of
acceptance in a form satisfactory to the General Partner of all of the terms
and conditions of this Agreement, including, without limitation, the power of
attorney granted in Section 2.4 hereof, and (ii) such other documents and
instruments as may be required in the discretion of the General Partner to
affect such Person’s admission as an additional Limited Partner.

(b)           Notwithstanding anything to the
contrary in this Section 12.4, no Person shall be admitted as an additional
Limited Partner without the consent of the General Partner, which consent may
be given or withheld in the General Partner’s sole discretion.  The admission of any Person as an additional
Limited Partner shall become effective at and as of the time the name of such
Person is recorded on the books and records of the Partnership, following the
consent of the General Partner to such admission.

Section
12.5                                Amendment of Agreement and Certificate of
Limited Partnership

The General Partner shall
take all steps necessary and appropriate under the Delaware Act to amend the
records of the Partnership and, if necessary, this Agreement and the
Certificate of Limited Partnership to reflect the admission of any Partner.

ARTICLE XIII

WITHDRAWAL OR REMOVAL OF THE GENERAL PARTNER

Section
13.1                                Withdrawal or Removal of the General
Partner

(a)           Buckeye GP LLC agrees to act as
General Partner of the Partnership until the later of (i) the date which is
twenty-five years after the Time of Delivery or (ii) the date the ESOP Loan is
paid in full, subject to its right to transfer all of its GP Units pursuant to
Section 11.1.  At any time after the
later of (i) the date which is twenty-five years after the Time of Delivery or
(ii) the date the ESOP Loan is paid in full, the General Partner may withdraw
from the Partnership effective upon at least 90 days’ advance written notice to
the Limited Partners, such withdrawal

 

32

 

to take effect on the date specified in such notice,
provided that such withdrawal is approved by an Eighty Percent Interest or the
Partnership has received an Opinion of Counsel that such withdrawal would not
result in the loss of limited liability of any Limited Partner or result in the
Partnership or any Operating Partnership being treated as an association
taxable as a corporation for federal income tax purposes.  Any such withdrawal shall also constitute the
withdrawal of the OLP GP from the Operating Partnerships, as provided in the
Operating Partnership Agreements.  If the
General Partner gives a notice of withdrawal, a Majority Interest may, prior to
the effective date of such withdrawal, approve a successor General Partner.  The Person so approved (or its designated
Affiliates) shall become the successor general partner or partners of the
Operating Partnerships, as provided in the Operating Partnership
Agreements.  If no successor General
Partner is so approved, the Partnership shall be dissolved pursuant to Section 14.1.  Buckeye GP LLC further agrees that it shall
not cause the OLP GP to withdraw as general partner of any Operating
Partnership, except in connection with Buckeye GP LLC’s withdrawal as General
Partner.

(b)           The General Partner may be removed
only by an Eighty Percent Interest, and only if (i) in connection therewith, a
successor General Partner is approved by a Majority Interest, (ii) the
Partnership shall have received an Opinion of Counsel that the removal of the
General Partner and the approval of a successor General Partner will not result
in the loss of limited liability of any Limited Partner or cause the
Partnership or any of the Operating Partnerships to be treated as an
association taxable as a corporation for federal income tax purposes, (iii) the
successor General Partner or an Affiliate thereof assumes the liabilities and
obligations of the General Partner and its Affiliates under the Exchange
Agreement and agrees to indemnify and hold harmless the General Partner and its
Affiliates from any liability or obligation arising out of, or causes the
General Partner and its Affiliates to be released from, any and all liabilities
and obligations (including loan guarantees) under fringe benefit plans
sponsored by the General Partner or any of its Affiliates in connection with
the business of the Partnership Group, except as otherwise prohibited by this
Agreement, and (iv) all required regulatory approvals for removal of the
General Partner shall have been obtained. 
Such removal shall be effective upon the admission of the successor
General Partner pursuant to Section 12.3. 
The Person so approved (or its designated Affiliates) shall become the
successor general partner or partners of the Operating Partnerships, as
provided in the Operating Partnership Agreements.

Section
13.2                                Sale of Former General Partner’s Interest

If a successor General
Partner is approved pursuant to Sections 13.1 or 14.2 or the proviso to Section
14.1, such successor shall purchase the GP Units of the former General Partner
and the Partnership Interests evidenced by the Incentive Compensation Agreement
(whether such Partnership Interests are held by the General Partner or an
Affiliate of the General Partner) for an amount in cash equal to the fair
market value thereof, determined as of the date the successor General Partner
is admitted pursuant to Section 12.3. 
The fair market value of the GP Units shall include the value of all
rights associated with being the General Partner, including, without
limitation, the right to receive distributions

 

33

 

with respect to
the GP Units and compensation under any agreement between the Partnership and
the General Partner in effect on the date the successor General Partner is so
admitted.  The fair market value of the
Partnership Interests evidenced by the Incentive Compensation Agreement shall
include the value of the rights to receive distributions in respect thereof
(whether such right to receive distributions pursuant to the Incentive
Compensation Agreement is held by the General Partner or an Affiliate of the
General Partner).  The sum of the value
of the GP Units and the Partnership Interests evidenced by the Incentive
Compensation Agreement shall be reduced by the value of the assumption by the successor
General Partner or its Affiliate of the obligations of the General Partner and
its Affiliates pursuant to Section 13.1(b)(iii).  Such fair market value shall be determined by
agreement between the former General Partner and its successor or, failing
agreement within 30 days after the date the successor General Partner is so
admitted, by a firm of independent appraisers jointly selected by the former
General Partner and its successor (or, if the former General Partner and its
successor cannot agree on the selection of such a firm within 45 days after the
date the successor General Partner is so admitted, by a firm of independent
appraisers selected by two firms, one of which will be selected by the former
General Partner and the other of which will be selected by the successor).

ARTICLE XIV

DISSOLUTION AND LIQUIDATION

Section
14.1                                Dissolution

The Partnership shall be
dissolved, and its affairs shall be wound up, upon:

(a)           expiration of the term as provided in
Section 2.5;

(b)           withdrawal of the General Partner
pursuant to Section 13.1 (unless a Person becomes a successor General Partner
prior to or on the effective date of such withdrawal);

(c)           bankruptcy or dissolution of the
General Partner, or any other event that results in the General Partner ceasing
to be a general partner in the Partnership (other than by reason of a
withdrawal or removal pursuant to Section 13.1 or a transfer pursuant to
Section 11.1); or

(d)           an election by the General Partner to
dissolve the Partnership which is approved by a Two-Thirds Interest;

provided, however, that
the Partnership shall not be dissolved upon an event described in  Sections 14.1(b) or 14.1(c) if, within 90
days of such event, all Partners agree in writing to continue the business of
the Partnership and to the appointment of a successor General Partner.

For purposes of this
Section 14.1, bankruptcy of the General Partner shall be deemed to have
occurred when (i) it commences a voluntary proceeding seeking liquidation,
reorganization or other relief under any bankruptcy, insolvency or other
similar law now or hereafter in effect, (ii) it seeks, consents to or
acquiesces in the appointment of a trustee, receiver or liquidator for it or
for all or any substantial part of its properties, (iii) it is adjudged a bankrupt
or insolvent, or has entered against it a final and nonappealable order for
relief, under any bankruptcy, insolvency or similar law now or hereafter in
effect, (iv) it executes and delivers a general assignment for the benefit of
its creditors, (v) it files an answer or other pleading admitting or failing to
contest the material allegations of a petition filed against it in any
involuntary proceeding of the nature described in clause (i) above, or (vi) (1)
any involuntary proceeding of the nature described in clause (i) above has not
been dismissed 120 days after the

 

34

 

commencement
thereof, (2) the appointment without its consent or acquiescence of a trustee,
receiver or liquidator for it or for all or any substantial part of its
properties has not been vacated or stayed within 90 days of such appointment,
or (3) such appointment has been stayed but is not vacated within 90 days after
the expiration of any such stay.

Section
14.2                                Reconstitution

Upon dissolution of the
Partnership in accordance with Sections 14.1(b) or 14.1(c), and a failure of
all Partners to agree to continue the business of the Partnership and to the
appointment of a successor General Partner as provided in the proviso to
Section 14.1, then within 180 days after the event described in Sections
14.1(b) or 14.1(c), a Majority Interest may elect to reconstitute the
Partnership and continue its business by forming a new partnership on terms
identical to those set forth in this Agreement and having as a general partner
a Person approved by a Majority Interest. 
Upon any such election by a Majority Interest, all Partners shall be
bound thereby and shall be deemed to have consented thereto.  Unless such an election is made within such
180-day period, the Partnership shall conduct only activities necessary to wind
up its affairs.  If such an election is
made within such 180-day period, then (a) the reconstituted partnership shall
continue until the end of the term set forth in Section 2.5 unless earlier
dissolved in accordance with this Article XIV and (b) all necessary steps shall
be taken to cancel this Agreement and the Certificate of Limited Partnership
and to enter into a new partnership agreement and certificate of limited
partnership, and the successor general partner may for this purpose exercise
the powers of attorney granted the General Partner pursuant to this Agreement;
provided that the right of a Majority Interest to reconstitute and to continue
the business of  the Partnership shall not
exist and may not be exercised unless the Partnership has received an Opinion
of Counsel that (i) the exercise of the right would not result in the loss of
limited liability of any Limited Partner and (ii) neither the Partnership nor
the reconstituted partnership would be treated as an association taxable as a
corporation for federal income tax purposes.

Section
14.3                                Liquidation

Upon dissolution of
the  Partnership, unless the Partnership
is reconstituted pursuant to Section 14.2, the General Partner, or in the event
the General Partner has withdrawn from the Partnership, been removed or
dissolved or become bankrupt (as defined in Section 14.1), a liquidator or
liquidating committee approved by a Majority Interest shall be the liquidator
of the Partnership (the “Liquidator”). 
The Liquidator (if other than the General Partner) shall be entitled to
receive such compensation for its services as may be approved by a Majority
Interest.  The Liquidator shall agree not
to resign at any time without 15 days’ prior written notice and (if other than
the General Partner) may be removed at any time, with or without cause, by
notice of removal approved by a Majority Interest.  Upon dissolution, resignation or removal of
the Liquidator, a successor and substitute Liquidator (who shall have and
succeed to all rights, powers and obligations of the original Liquidator)
shall, within 30 days thereafter, be approved by a Majority Interest.  Except as expressly provided in this Article XIV,
the Liquidator approved in the manner provided herein shall have and may
exercise, without further authorization or approval of any of the parties
hereto, all of the powers conferred upon the General Partner under the terms of
this Agreement (but subject to all of the applicable limitations, contractual
and otherwise, upon the exercise of such powers, other than the restrictions
set forth in Article XVII) to the extent appropriate or necessary in the good
faith

 

35

 

judgment of the
Liquidator to carry out the duties and functions of the Liquidator hereunder
for and during such period of time as shall be reasonably required in the good
faith judgment of the Liquidator to complete the winding-up and liquidation of
the Partnership as provided for herein. 
The Liquidator shall liquidate the assets of the Partnership and apply
and distribute the proceeds of such liquidation in the following order of
priority, unless otherwise required by mandatory provisions of applicable law:

(a)           to creditors of the Partnership
(including Partners); and

(b)           to the Partners, in proportion to and
to the extent of the positive balances 
in their respective Capital Accounts;

provided, however, that
the Liquidator may place in escrow a reserve of cash or other assets of  the Partnership for contingent liabilities in
an amount determined by the Liquidator to be appropriate for such purposes.

Section
14.4                                Distribution in Kind

Notwithstanding the
provisions of Section 14.3 requiring the liquidation of the assets of the
Partnership, but subject to the order of priorities set forth therein, if on
dissolution of the Partnership the Liquidator determines that an immediate sale
of part or all of the Partnership’s assets would be impractical or would cause
undue loss to the Partners, the Liquidator may, in its sole discretion, defer
for a reasonable time the liquidation of any assets except those necessary to
satisfy liabilities of the Partnership and may, in its sole discretion,
distribute to the Partners, or to specific classes of Partners, as tenants in
common, in lieu of cash, and as their interests may appear in accordance with
the provisions of Section 14.3(b), undivided interests in such Partnership
assets as the Liquidator deems not suitable for liquidation.  Any distributions in kind shall be subject to
such conditions relating to the disposition and management thereof as the
Liquidator deems reasonable and equitable and to any joint ownership agreements
or other agreements governing the ownership and operation of such properties at
such time.  The Liquidator shall
determine the fair market value of any property distributed in kind using such
reasonable method of valuation as it may adopt.

Section
14.5                                Cancellation of Certificate of Limited
Partnership

Upon the completion of
the distribution of Partnership property pursuant to Sections 14.3 and 14.4,
the Partnership shall be terminated, and the Liquidator (or the Limited
Partners if necessary) shall cause the cancellation of the Certificate of
Limited Partnership and all qualifications of the Partnership as a foreign
limited partnership in jurisdictions other than the State of Delaware and shall
take such other actions as may be necessary to terminate the Partnership.

Section
14.6                                Return of Capital

The General Partner shall
not be personally liable for the return of the Capital Contributions of the
Limited Partners, or any portion thereof, it being expressly understood that
any such return shall be made solely from Partnership assets.

 

36

 

Section
14.7                                Waiver of Partition

Each Partner hereby
waives any rights to partition of the Partnership property.

Section
14.8                                Certain Prohibited Acts

Without obtaining Special
Approval, the General Partner shall not take any action to cause the Partnership
to (i) make or consent to a general assignment for the benefit of the
Partnership’s creditors; (ii) file or consent to the filing of any bankruptcy,
insolvency or reorganization petition for relief under the United States
Bankruptcy Code naming the Partnership or otherwise seek, with respect to the
Partnership, relief from debts or protection from creditors generally; (iii)
file or consent to the filing of a petition or answer seeking for the
Partnership a liquidation, dissolution, arrangement, or similar relief under
any law; (iv) file an answer or other pleading admitting or failing to contest
the material allegations of a petition filed against the Partnership in a
proceeding of the type described in clauses (i) — (iii) of this Section 14.8;
(v) seek, consent to or acquiesce in the appointment of a receiver, liquidator,
conservator, assignee, trustee, sequestrator, custodian or any similar official
for the Partnership or for all or any substantial portion of its properties;
(vi) sell all or substantially all of its assets, except in accordance with
Section 17.3; (vii) dissolve or liquidate, except in accordance with this
Article XIV; or (viii) merge or consolidate, except in accordance with Section
11.1.

ARTICLE XV

AMENDMENT OF PARTNERSHIP AGREEMENT

Section
15.1                                Amendments Which May be Adopted Solely by
the General Partner

Subject to Section 15.3,
the General Partner may amend any provision of this Agreement without the
consent of any Limited Partner, and may execute, swear to, acknowledge,
deliver, file and record whatever documents may be required in connection
therewith, to reflect:

(a)           a change in the name of the
Partnership, in the location of the principal place of business of the
Partnership or in the registered office or registered agent of the Partnership;

(b)           a change that the General Partner
deems appropriate or necessary to (i) qualify, or continue the qualification
of, the Partnership as a limited partnership (or a partnership in which the
Limited Partners have limited liability) under the laws of any state or
jurisdiction or (ii) ensure that neither the Partnership nor any of the
Operating Partnerships will be treated as an association taxable as a
corporation for federal income tax purposes;

(c)           a change to divide outstanding Units
into a greater number of Units, to combine outstanding Units into a smaller
number of Units or to reclassify Units in a manner that in the good faith
opinion of the General Partner, does not adversely affect any class of Limited
Partners in any material respect;

(d)           a change that the General Partner in
its sole discretion deems appropriate or necessary to (i) satisfy any
requirements, conditions or guidelines contained in any order, rule or
regulation of any federal or state agency or contained in any federal or state
statute or (ii)

 

37

 

facilitate the trading of any Units or comply with any
rule, regulation, requirement, condition or guideline of any National
Securities Exchange on which any Units are or will be listed or admitted to
trading, or NASDAQ if any Units are or will be quoted on NASDAQ;

(e)           a change that is appropriate or
necessary, as stated in an Opinion of Counsel, to prevent the Partnership, the
Operating Partnerships, the General Partner, its Affiliates and their
respective directors and officers from in any manner being subjected to the
provisions of the Investment Company Act of 1940, as amended, the Investment
Advisers Act of 1940, as amended, or “plan asset” regulations adopted under the
Employee Retirement Income Security Act of 1974, as amended, whether or not
substantially similar to plan asset regulations currently applied or proposed
by the United States Department of Labor;

(f)            a change that is required or
contemplated by any provision of this Agreement, including, without limitation,
Sections 4.3, 12.3 and 12.5;

(g)           a change that in the good faith
opinion of the General Partner does not adversely affect the Limited Partners
in any material respect; or

(h)           any changes or events similar to the foregoing.

Section
15.2                                Other Amendments

Amendments to this
Agreement may be proposed only by the General Partner.  Subject to Section 15.3, a proposed  amendment (other than amendments  adopted pursuant to Section 15.1) shall be
effective only when approved by a Majority Interest.  Notwithstanding the provisions of Sections
15.1 and 15.3, no amendment of (i) the definitions of “Audit Committee,” or “Special
Approval,” (ii) Section 7.6, (iii) Section 11.1, (iv) Section 17.3, (v) Section
7.9(a), (vi) Section 14.8, or (vii) any other provision of this Agreement
requiring that Special Approval be obtained as a condition to any action, shall
be effective without first obtaining Special Approval.

Section
15.3                                Amendment Requirements

Notwithstanding the
provisions of Sections 15.1 and 15.2, (i) the approval of an Eighty Percent
Interest shall be required for any amendment unless the Partnership has
received an Opinion of Counsel that such amendment would not result in the loss
of limited liability of any Limited Partner or result in the Partnership or any
Operating Partnership being treated as an association taxable as a corporation
for federal income tax purposes, (ii) no provision of this Agreement which
establishes a percentage of the Limited Partners required to take or approve
any action shall be amended in any respect which would have the affect of
reducing the voting requirement, unless such amendment is approved by at least
such percentage of Limited Partners, and (iii) this Section 15.3 shall be
amended only with the approval of an Eighty Percent Interest.

 

38

 

ARTICLE XVI

MEETINGS

Section
16.1                                Meetings

Meetings of Limited
Partners may be called by the General Partner or by Limited Partners holding an
aggregate of at least 20% of the outstanding LP Units.  Within 60 days after receipt by the General
Partner of a written proposal to call a meeting signed by Limited Partners
holding the requisite number of LP Units and indicating the purpose for which
the meeting is to be called (or such longer period as shall be reasonably
required by the General Partner in order to prepare documents required
therefor), the General Partner shall cause a notice of the meeting to be given
to each Limited Partner.  A meeting shall
be held at a time and place determined by the General Partner within 60 days
after the giving of notice of the meeting. 
A Majority Interest represented in person or by proxy shall constitute a
quorum at a meeting of the Partners.

Section
16.2                                Record Date

For purposes of
determining the Limited Partners entitled to notice of or to vote at any
meeting or to give approvals without a meeting as provided in Section 16.4, the
General Partner may set a Record Date, which date for purposes of notice of a
meeting shall not be less than 10 days nor more than 60 days before the date of
the meeting.

Section
16.3                                Conduct of Meeting

(a)           The General Partner shall have full
power and authority concerning the manner of conducting any meeting of Limited
Partners or the solicitation of proxies or consents in writing, including,
without limitation, the determination of Persons entitled to vote, the
existence of a quorum, the conduct of voting, the validity and effect of any
proxies, and the determination of any controversies, votes or challenges
arising in connection with or during the meeting or voting.  The General Partner shall designate an
individual to serve as chairman of any meeting and shall further designate an
individual to take the minutes of any meeting, which individuals may be
directors or officers of the General Partner. 
All minutes shall be kept with the records of the Partnership maintained
by the General Partner.

(b)           The General Partner may vote its LP
Units in such manner as it in its sole discretion may determine.

Section
16.4                                Action Without a Meeting

Any action that may be
taken at a meeting of the Limited Partners may be taken without a meeting if
approvals in writing setting forth the action so taken are signed by Limited
Partners holding in the aggregate at least the minimum number of LP Units that
would be necessary to authorize or take such action at a meeting at which all
the Limited Partners were present and voted. 
Prompt notice of the taking of action without a meeting shall be given
to the Limited Partners who have not approved in writing.  If approvals to the taking of any action by
the Limited Partners is solicited by any Person other than by or on behalf of
the General Partner, the approvals shall have no force and effect unless and
until (a) they are deposited with the

 

39

 

Partnership in
care of the General Partner, (b) approvals sufficient to take the action
proposed are dated as of a date not more than 90 days prior to the date
sufficient consents are deposited with the Partnership, and (c) the Partnership
receives an Opinion of Counsel that giving effect to such approvals would not
result in the loss of limited liability of any Limited Partner or cause the
Partnership or any of the Operating Partnerships to be treated as an
association taxable as a corporation for federal income tax purposes.

ARTICLE XVII

CERTAIN RESTRICTIONS

Section
17.1                                Additional Units

(a)           Without the prior approval of a
Two-Thirds Interest, the General Partner shall not cause the Partnership to
issue any class or series of LP Units having preferences or other special or
senior rights over the LP Units issued pursuant to Section 4.2.

(b)           The General Partner shall not cause
the Partnership to issue Units to the General Partner or any of its Affiliates
(other than pursuant to Section 4.1) unless (i) the Units are of a class which
is, prior to such issuance, listed or admitted to trading on a National
Securities Exchange or quoted by NASDAQ and the Net Agreed Value of the
Contributed Property being contributed in exchange for such Units is at least
equal to the number of Units being so issued times the Unit Price of such Units
or (ii) such issuance is approved by a Majority Interest.

Section
17.2                                Certain Amendments

(a)           Without the prior approval of a
Two-Thirds Interest, the Partnership shall not amend the Incentive Compensation
Agreement and the General Partner shall not permit the Partnership or any
Operating Partnership to amend any compensation arrangement for the General
Partner, unless, in any case, such amendment does not, in the good faith
opinion of the General Partner, in its capacity as general partner of the
Partnership or the indirect owner of the general partner of the Operating
Partnerships, as applicable, adversely affect the Limited Partners in any
material respect.

(b)           The General Partner shall not cause
the Partnership to approve any amendment to an Operating Partnership Agreement
pursuant to Section 13.2 thereof unless such amendment is approved by a
Majority Interest.

Section
17.3                                Sale of Assets

Without the prior
approval of a Two-Thirds Interest, the General Partner may not sell, exchange
or otherwise dispose of all or substantially all of the consolidated assets
owned by the Partnership and the Operating Partnerships; provided, however,
that in the event that less than 80% of the LP Units are held by the General
Partner and its Affiliates, prior Special Approval shall also be required.

 

40

 

ARTICLE XVIII

RIGHT TO PURCHASE UNITS

Section
18.1                                Right to Purchase Units

If fewer than 10% of the
outstanding LP Units are held by Persons other than the General Partner and its
Affiliates, the General Partner shall have the right, which it may assign to
the Partnership or any Affiliate, to purchase all, but not less than all, of
the LP Units that remain outstanding and are held by Persons other than the
General Partner and its Affiliates.  Any
such purchase shall be at a price per LP Unit in cash (the “Purchase Price”)
equal to the greater of the Unit Price on the date of purchase (the “Purchase
Date”) or the Issue Price for such LP Units, in either case multiplied by (a)
1.2, if the Purchase Date is after December 31, 1996 and on or prior to
December 31, 2001, (b) 1.1, if the Purchase Date is after December 31, 2001 and
on or prior to December 31, 2006, or (c) 1.0, if the Purchase Date is after
December 31, 2006.

Section
18.2                                Notice of Election to Purchase

In the event the General
Partner, any Affiliate of  the General
Partner or the Partnership elects to exercise such right to purchase LP Units
pursuant to Section 18.1, the General Partner shall cause the Transfer Agent to
give written notice of such election to purchase (the “Notice of Election to
Purchase”) to the Record Holders at least 10, but not more than 60, days prior
to the Purchase Date.  Such Notice of
Election to Purchase shall also be published in daily newspapers of general
circulation printed in the English language and published in the Borough of
Manhattan, New York.  The Notice of
Election to Purchase shall specify the Purchase Date and the Purchase Price and
state that the General Partner, its Affiliate or the Partnership, as the case
may be, has elected to purchase such LP Units, upon surrender thereof in
exchange for payment, and at such place as specified.  Any such Notice of Election to Purchase
mailed to a Record Holder of LP Units at his address as reflected in the Units
Register shall be conclusively presumed to have been given whether or not the
owner receives such notice.

Section
18.3                                Purchase and Transfer of Units

On or prior to the
Purchase Date, the General Partner, its Affiliate or the Partnership, as the
case may be, shall deposit with the Transfer Agent cash in an amount equal to
the amount required to purchase all outstanding LP Units held by Persons other
than the General Partner or its Affiliates. 
If the Notice of Election to Purchase shall have been duly given as
aforesaid and if on or prior to the Purchase Date the cash shall have been
deposited with the Transfer Agent in trust for the benefit of the holders of LP
Units subject to purchase as provided herein, then from and after the Purchase
Date, whether or not any LP Units shall have been surrendered for purchase, all
rights of the holders of such LP Units (including, without limitation, any
rights pursuant to Articles V, VI and XIV) shall thereupon cease, except the
right to receive the Purchase Price therefor, without interest, upon surrender
to the Transfer Agent of the LP Certificates representing such LP Units, and
such LP Units shall thereupon be transferred to the General Partner, its
Affiliate or the Partnership, as the case may be, on the Units Register, and
the General Partner, its Affiliate or the Partnership, as the case may be,
shall be deemed to be the

 

41

 

owner of all such
LP Units from and after the Purchase Date and shall have all rights as the
owner of such LP Units.

ARTICLE XIX

GENERAL PROVISIONS

Section
19.1                                Opinions Regarding Taxation as a
Partnership

Notwithstanding any other
provisions of this Agreement, the requirement, as a condition to any action
proposed to be taken under this Agreement, that the Partnership receive an
Opinion of Counsel that the proposed action would not result in the Partnership
or any of the Operating Partnerships being treated as an association taxable as
a corporation for federal income tax purposes (a) shall not be applicable to
the extent that the Partnership or any of the Operating Partnerships is at such
time treated in all material respects as an association taxable as a
corporation for federal income tax purposes and (b) shall be deemed satisfied
by an Opinion of Counsel containing conditions, limitations and qualifications
which are acceptable to the General Partner in its sole discretion.

Section
19.2                                Personal Property

The Partnership Interest
of any Partner shall be personal property for all purposes.

Section
19.3                                Addresses and Notices

Any notice, demand,
request, payment or report required or permitted to be given or made to a
Limited Partner under this Agreement shall be in writing and shall be deemed
given or made when delivered in person or when sent by first class mail or by
other means of written communication to the Limited Partner at such Limited
Partner’s address as shown on the Units Register.  Any notice to the Partnership or the General
Partner shall be deemed given if received in writing by the General Partner at
the principal office of the Partnership designated pursuant to Section 2.3.

Section
19.4                                Headings

All article or section
headings in this Agreement are for convenience only and shall not be deemed to
control or affect the meaning or construction of any of the provisions hereof.

Section
19.5                                Binding Effect

This Agreement shall be
binding upon and inure to the benefit of the parties hereto (including the
additional Persons that become Limited Partners as provided herein) and their
heirs, executors, administrators, successors, legal representatives and
assigns.

Section
19.6                                Integration

This Agreement
constitutes the entire agreement among the parties pertaining to the subject
matter hereof and supersedes all prior agreements and understandings pertaining
thereto.

 

42

 

Section
19.7                                Waiver

No failure by any party
to insist upon the strict performance of any covenant, duty, agreement or
condition of this Agreement or to exercise any right or remedy consequent upon
a breach thereof shall constitute a waiver of any such breach or of any other
covenant, duty, agreement or condition.

Section
19.8                                Counterparts

This Agreement may be
executed in any number of counterparts, all of which together shall constitute
one agreement binding on the parties hereto (including the additional Persons
that become Limited Partners as provided herein).

Section
19.9                                Severability

If any provision of this
Agreement is or becomes invalid, illegal or unenforceable in any respect, the
validity, legality and enforceability of the remaining provisions hereof, or of
such provision in other respects, shall not be affected thereby.

Section
19.10                          Applicable Law

This Agreement shall be
governed by and construed and enforced in accordance with the laws of the State
of Delaware.

 

43

 

In Witness Whereof, this
Agreement has been duly executed by the General Partner on behalf of itself and
as agent and attorney-in-fact for the Limited Partners, as of the date first
above written.

	
   

  	
  Buckeye GP LLC,

  
	
   

  	
  as General Partner

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Name: William H. Shea, Jr.

  
	
   

  	
  Title: Chairman and Chief Executive Officer

  

 

[Amended and Restated
Agreement of Limited Partnership of Buckeye Partners, L.P.]

 

 

Annex A

 

Specimen LP Certificate

 

 

 

 

 

 

 

 

[Amended and Restated
Agreement of Limited Partnership of Buckeye Partners, L.P.]

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