Document:

exv10w1

Exhibit 10.1

SEVENTH AMENDMENT TO

AMENDED AND RESTATED REVOLVING

CREDIT AND SECURITY AGREEMENT

BY AND AMONG

PNC BANK, NATIONAL ASSOCIATION

(AS LENDER AND AGENT),

THE LENDERS,

AND

L. B. FOSTER COMPANY

AND

CXT INCORPORATED,

(BORROWERS)

December 17, 2010

 

 

SEVENTH AMENDMENT TO AMENDED AND RESTATED

REVOLVING CREDIT SECURITY AGREEMENT

     THIS SEVENTH AMENDMENT TO AMENDED AND RESTATED REVOLVING CREDIT AND SECURITY AGREEMENT (the
“Amendment”) is made as of December 17, 2010, by and among L. B. FOSTER COMPANY, a corporation
organized under the laws of the State of Pennsylvania, for itself and as successor by merger to
Natmaya, Inc. and Fosmart, Inc. (“Foster”) and CXT INCORPORATED, a corporation organized
under the laws of the State of Delaware (“CXT”)(each a “Borrower” and collectively
“Borrowers”), the financial institutions which are now or which hereafter become a party
hereto (collectively, the “Lenders” and individually a “Lender”) and PNC BANK,
NATIONAL ASSOCIATION (“PNC”), as agent for Lenders (PNC, in such capacity, the
“Agent”).

WITNESSETH:

     WHEREAS, the Borrowers, the Lenders and Agent are parties to that certain Amended and Restated
Revolving Credit and Security Agreement dated as of May 5, 2005, as amended by a First Amendment
thereto dated as of September 13, 2005, a Second Amendment thereto dated as of May 16, 2006, a
Third Amendment thereto dated as of February 8, 2007, a Fourth Amendment dated as of July 27, 2007,
a Fifth Amendment thereto dated as of March 4, 2009, and a Sixth Amendment thereto dated as of
November 24, 2009 (as amended from time to time, the “Agreement”).

     WHEREAS, on December 15, 2010, a Subsidiary of Foster acquired a majority of the capital stock
of Portec Rail Products, Inc.

     WHEREAS, the Borrowers have requested the Lenders to modify certain covenants in the Agreement
in order to permit Foster to acquire the capital stock of Portec Rail Products, Inc. and waive any
default under the Credit Agreement resulting from the acquisition having occurred prior to the date
the Lenders grant their consent to such acquisition. The Lenders have agreed to such credit
accommodations, subject to the terms and conditions set forth in this Amendment.

     NOW, THEREFORE, the parties hereto, in consideration of their mutual covenants and agreements
hereinafter set forth and intending to be legally bound hereby, covenant and agree as follows:

     1. Definitions.

          Defined terms used herein shall have the meanings given to them in the Agreement.

     2. The following new definitions are hereby inserted in Section 1.2 of the Agreement in
alphabetical order:

     “Domestic Subsidiary” shall mean any Subsidiary organized under the laws of the
United States or any state thereof.

 

 

     “Foster Thomas” shall mean Foster Thomas Company, a West Virginia corporation
and wholly owned Subsidiary of Foster.

     “Portec” shall mean Portec Rail Products, Inc., a West Virginia corporation.

     “Portec Acquisition” shall mean the acquisition of ownership interests of
Portec pursuant to the Portec Acquisition Agreement.

     “Portec Acquisition Agreement” shall mean that certain Agreement and Plan of
Merger dated February 16, 2010, among Portec, Foster and Foster Thomas, as the same may be
amended prior to the Seventh Amendment Effective Date.

     “Portec Rail Joint Division Sale” shall mean the sale by Portec to Koppers Inc.
or an affiliate of Koppers Inc. of the rail joint division of Portec pursuant to the Portec
Rail Joint Division Sales Agreement.

     “Portec Rail Joint Division Sales Agreement” shall mean that certain Asset
Purchase Agreement dated as of December 15, 2010, between Portec, as seller, Koppers Inc.,
as purchaser, and Foster, as the same may be amended prior to the Seventh Amendment
Effective Date.

     “Seventh Amendment Effective Date” shall mean December 17, 2010.

     3. The following definitions set forth in Section 1.2 of the Agreement are hereby amended and
restated as follows:

     “Borrowers on a consolidated basis” shall mean (i) prior to such time as Portec
and its Domestic Subsidiaries join this Agreement as additional Borrowers, or are required
by the terms of this Agreement to join as additional Borrowers, Foster, Foster Thomas and
CXT, and (ii) at such time as Portec and its Domestic Subsidiaries join this Agreement as
additional Borrowers, or are required by the terms of this Agreement to join as additional
Borrowers, Foster, CXT, Foster Thomas, Portec and the Domestic Subsidiaries of Portec.

     “Earnings Before Interest and Taxes” shall mean for any period the sum of (a)
net income (or loss) of Borrowers on a consolidated basis for such period, plus
non-operating and non-recurring items such as, but not limited to extraordinary items and
cumulative changes in accounting principles, plus (b) all interest expense of Borrowers on a
consolidated basis for such period, plus (c) all charges against income of Borrowers on a
consolidated basis for such period for federal, state and local taxes, plus (d) non-cash
expenses in connection with Borrowers’ employee stock option plan, plus (e) all
transactional costs and expenses related to the Portec Acquisition, plus (f) commencing with
the fiscal year ended December 31, 2008 and each period thereafter, all charges for such
period attributable to the Borrowers’ last-in, first-out (“LIFO”) accounting for Inventory,
minus (g) commencing with the fiscal year ended December 31, 2008 and each period
thereafter, all credits for such period attributable to the Borrowers’ LIFO accounting for
Inventory.

2

 

     “Fixed Charges” shall mean for any period the sum of cash interest expense,
scheduled principal payments (excluding Advances) with respect to Indebtedness for borrowed
money and capital leases and dividends, distributions and redemptions permitted under
Section 7.7, all the foregoing of Borrowers on a consolidated basis as determined and
consolidated in accordance with GAAP. Notwithstanding the foregoing, all cash dividends,
distributions and redemptions permitted under Section 7.7 which are paid in cash at a time
during which all Exclusion Standards are met shall be excluded from the calculation of Fixed
Charges for such period and all subsequent periods.

     4. Section 7.1 of the Agreement is hereby amended and restated as follows:

          “(a) Enter into any merger, consolidation or other reorganization with or into any other
Person or acquire all or substantially all of the assets, division, business, stock or other
ownership interests of any Person or permit any other Person to consolidate with or merge with it;
provided however, (i) Natmaya and/or Fosmart may be dissolved, (ii) Borrowers may exercise any
warrants to obtain stock of DM&E so long as the aggregate amount of funds required to exercise such
warrants does not exceed $500,000, (iii) Natmaya and/or Fosmart may be merged with and into Foster
so long as Foster is the surviving corporation, and (iv) Foster may purchase or acquire the assets
or stock of any Person (a “Permitted Acquisition”) if all of the following requirements are met in
connection with such acquisition:

     (A) if Foster is acquiring the ownership interests in such Person and such Person is not a
Foreign Subsidiary, then such Person shall join this Agreement as a Borrower or become a Guarantor
for the Obligations as determined by the Agent;

     (B) in the case of a stock or other ownership purchase, the Person acquired by Foster, if such
Person is not a Foreign Subsidiary, shall grant Liens in its assets to the Agent for the benefit of
the Lenders covering the same type of assets as the Collateral, and in the case any of both a stock
or other ownership purchase or an asset purchase, Foster shall cause the Lien of the Agent to be a
first priority, perfected security interest;

     (C) the board of directors or other equivalent governing body of such Person shall have
approved such Permitted Acquisition;

     (D) the business acquired, or the business conducted by the Person whose ownership interests
are being acquired, as applicable, shall be substantially the same as or related to (in a
commercially reasonable manner) one or more line or lines of business conducted by the Borrowers as
described in Section 5.22, and the business shall be located in the United States;

     (E) no Default or Event of Default shall exist immediately prior to and after giving effect to
such Permitted Acquisition;

     (F) prior to and after giving effect to such Permitted Acquisition (including the payment of
any prospective portion of the purchase price or earn-outs), the Borrowers shall have a Fixed
Charge Coverage Ratio, calculated on a pro forma basis for the most recent 12 months and giving
effect to such Permitted Acquisition, of not less than 1.15 to 1.00;

3

 

     (G) prior to and after giving effect to such Permitted Acquisition (including the payment of
any prospective portion of the purchase price or earn-outs), the Borrowers shall meet the Minimum
Availability Threshold; and

     (H) the aggregate Consideration paid by Foster for all such Permitted Acquisitions, when
aggregated with the amount invested by the Borrowers in joint ventures permitted under Section
7.12(b), shall not exceed $50,000,000 in the aggregate during the remaining Term from and after the
First Amendment Effective Date, as such amount is increased by Net Proceeds of Significant Asset
Sales from and after the First Amendment Effective Date, of which aggregate amount not more than
$15,000,000 shall be used for Permitted Acquisitions of, or advances to, Foreign Subsidiaries. In
addition, at such time as the aggregate Consideration paid by Foster for all such Permitted
Acquisitions, when aggregated with the amount invested by the Borrowers in joint ventures permitted
under Section 7.12(b), exceeds $30,000,000, no additional Revolving Advances shall be incurred in
connection with any additional Permitted Acquisition; and

     (I) in the case of a stock or other ownership purchase, the Person acquired shall have
positive earnings before interests, taxes, depreciation and amortization (as determined in
accordance with GAAP) for the most recent 12 months preceding such Permitted Acquisition.

     Notwithstanding the foregoing, the Borrowers may acquire the capital stock of Portec subject
to the following conditions, and upon the occurrence of such conditions, the Lenders shall be
deemed to have waived any Default or Event of Default resulting from such acquisition having
occurred prior to the Seventh Amendment Effective Date:

(x) Foster Thomas shall acquire the capital stock of Portec in accordance with the terms of the
Portec Acquisition Agreement, and the aggregate Consideration in the form of cash or cash
equivalents plus transactional costs paid by the Borrowers for the Portec Acquisition shall not
exceed $125,000,000. For purposes of calculating the aggregate Consideration, in the event that
the Portec Rail Joint Division Sale is completed within seven days after consummation of the Portec
Acquisition, the sales price for the Portec Rail Joint Division Sale shall be subtracted from the
total Consideration of the Portec Acquisition;

(y) On the Seventh Amendment Effective Date, Foster Thomas shall join as an additional Borrower
under the Agreement and shall grant Liens in its assets to the Agent for the benefit of the Lenders
covering the same type of assets as the Collateral, and shall cause the Lien of the Agent to be a
first priority, perfected security interest;

(z) Portec and its Domestic Subsidiaries shall become Borrowers on the earliest to occur of the
following: (i) the Borrowers have outstanding Advances in excess of $35,000,000 or make a request
for an Advance which would cause outstanding Advances to exceed $35,000,000, (ii) the aggregate
amount of advances and investments made by the Borrowers in Portec and/or its Subsidiaries
(excluding the cash and cash equivalent Consideration referenced above) exceeds $20,000,000 and the
Borrower has outstanding Advances in excess of $20,000,000, and (iii) the date which is the six
month anniversary of the date upon which the Borrowers have direct or indirect ownership of a
majority of the outstanding capital stock of Portec. At the time Portec and its Domestic
Subsidiaries become Borrowers, Portec and each of its Domestic Subsidiaries shall execute and
deliver to the Agent (A) the documents required under Section 7.1(a), (B) the

4

 

documents required under the Borrower Joinder and Assumption Agreement executed and delivered by
Portec and each of its Domestic Subsidiaries, and (C) updated disclosure schedules to this
Agreement, each of the foregoing to be in form and substance satisfactory to the Agent.

          (b) Sell, lease, transfer or otherwise dispose of any of its properties or assets, except (i)
the sale of Inventory in the ordinary course of its business, (ii) the sale, disposition or
transfer of any assets or Real Property located at Foster’s Doraville, Georgia facility, or its
Langfield Road, Texas property (iii) the sale of any securities issued by DM&E to Foster and/or
Natmaya, and (iv) other sales or dispositions not in excess of $15,000,000 in the aggregate;
provided however, (x) a sale by Portec of its rail joint division (following consummation of the
Portec Acquisition) is permitted and shall not constitute a disposition of assets by the Borrowers
for purposes of reducing the limitation of $15,000,000 limitation set forth in part (iv) above, and
(y) in the event of the sale by Borrowers of any Receivables or Inventory, the Borrowers shall
receive cash or cash equivalent proceeds in an amount equal to or greater than that portion of the
Formula Amount based upon such Receivables and Inventory prior to such sale.”

     5. Section 7.5 of the Agreement is hereby amended and restated as follows:

     “7.5 Loans.

     Except as set forth on Schedule 7.5, make advances, loans or extensions of credit to
any Person, including without limitation, any Parent, Subsidiary or Affiliate except with
respect to (a) advances, loans or extensions of commercial trade credit in connection with
the sale of Inventory in the ordinary course of its business, (b) advances, loans or
extensions of credit to its employees in the ordinary course of business not to exceed the
aggregate amount of $1,000,000 at any time outstanding, (c) advances, loans or extensions of
credit which, when aggregated with the loans set forth on Schedule 7.5 and the guarantees
permitted under Section 7.3(b), do not exceed $4,000,000 in the aggregate at any one time
(excluding any advances made pursuant to Section 7.1(a)(H)), (d) loans advanced by one
Borrower to another Borrower, and (e) subject to the provisions set forth in Section 7.1(a),
loans to Portec and its Subsidiaries.”

     6. Section 7.10 of the Agreement is hereby amended and restated as follows:

     “7.10 Transactions with Affiliates.

     Directly or indirectly, purchase, acquire or lease any property from, or sell, transfer
or lease any property to, or otherwise deal with, any Affiliate (other than a Borrower),
except (i) transactions in the ordinary course of business, on an arm’s-length basis on
terms no less favorable than terms which would have been obtainable from a Person other than
an Affiliate, and (ii) transactions with Portec and its Subsidiaries subject to the
requirements set forth in Section 7.1(a) with respect to the joinder of Portec and its
Domestic Subsidiaries as Borrowers.”

5

 

     7. Section 7.12(a) of the Agreement is hereby amended and restated as follows:

     “(a) Except as otherwise set forth in Section 7.1(a), form any Subsidiary unless (i)
such Subsidiary takes all actions necessary to join in this Agreement as a borrower and
becomes jointly and severally liable for the obligations of Borrowers hereunder, under the
Revolving Credit Note, and under any other agreement between any Borrower and Lenders, and
(ii) Agent shall have received all documents, including legal opinions, it may reasonably
require to establish compliance with each of the foregoing conditions. Notwithstanding the
foregoing: (A) Foreign Subsidiaries acquired in a Permitted Acquisition pursuant to Section
7.1(a)(H) shall not be required to join this Agreement as Borrowers, (B) Foreign
Subsidiaries of Portec shall not be required to join in this agreement as a Borrower or
Guarantor; provided however, that in the event that Portec and its Domestic Subsidiaries
become Borrowers hereunder, the Borrowers shall cause to be pledged to the Agent sixty-five
percent (65%) of the outstanding ownership interests of the first-tier Foreign Subsidiaries
of Portec and its Domestic Subsidiaries, and (C) Coal Train Holdings shall not be required
to join this Agreement as a Borrower nor provide the documents referenced above, so long as
(x) the Borrowers do not contribute in any fiscal year more than $100,000 to Coal Train
Holdings and no such contributions are made if there exists a Default or an Event of
Default, and (y) Coal Train Holdings has at all times a net worth and assets (valued at
market value) each less than $50,000. Any distributions or other payments received by Coal
Train Holdings from its prior ownership interest in DM&E shall not be included in the
calculation of its net worth or asset valuation if such distributions and payments are
further distributed to Foster within 30 days after their receipt by Coal Train Holdings.”

     8. Update to Schedules. Schedules 4.15(c) [Location of Executive Offices], 5.2(a)
[States of Qualification and Good Standing], 5.2(b) [Subsidiaries], and 5.4 [Federal Tax
Identification Number] are hereby amended and restated as set forth on the corresponding schedules
attached to this Amendment.

     9. Amendment Fee. The Borrowers shall pay the Agent, for the ratable account of each
Lender, and amendment fee in the amount of 10 basis points of the sum of the aggregate commitments
for Revolving Advances and the principal balance outstanding on the Term Loan on the date hereof,
which fee shall be deemed to be earned as of the date of this Amendment.

     10. Representations. Each Borrower hereby represents and warrants that it has the
corporate power and has been duly authorized by all requisite corporate action to execute and
deliver this Amendment and to perform its obligations hereunder. Each Borrower hereby represents
and warrants that no Default or Event of Default exists under the Agreement or shall result from
the execution and delivery of this Amendment.

     11. Force and Effect. Each Lender and each Borrower reconfirms and ratifies the
Agreement and all Other Documents executed in connection therewith except to the extent any such
documents are expressly modified by this Amendment, and each Borrower confirms that all such
documents have remained in full force and effect since the date of their execution.

6

 

     12. Governing Law. This Amendment shall be deemed to be a contract under the laws of
the Commonwealth of Pennsylvania and for all purposes shall be governed by and construed and
enforced in accordance with the internal laws of the Commonwealth of Pennsylvania without regard to
its conflict of laws principles.

     13. Counterparts. This Amendment may be signed by telecopy or original in any number
of counterparts, each of which shall be deemed an original, but all of which together shall
constitute one and the same instrument.

     14. Effective Date. This Amendment shall be effective on the Seventh Amendment
Effective Date upon the occurrence of all the following conditions:

(i) the execution and delivery to the Agent of this Amendment by the Borrowers and
the Lenders,

(ii) the execution and delivery to the Agent of a Borrower Joinder and related Other
Documents by Foster Thomas as required under Section 7.1(a), in form and content
satisfactory to the Agent,

(iii) the execution and delivery to the Agent of a certificate of the secretary or
an assistant secretary of each Borrower, including incumbency of the officers
signing this Amendment, as well as certification with respect to the resolutions of
each such Borrower’s board of directors with respect to this Amendment,

(iv) receipt by the Administrative Agent of true and correct copies of the Portec
Acquisition Agreement and the Portec Rail Joint Division Sales Agreement; and

(v) the Borrowers’ payment to the Agent of all fees and expenses required in
connection with this Amendment.

[SIGNATURE PAGES FOLLOW]

7

 

[SIGNATURE PAGE 1 OF 2 TO SEVENTH AMENDMENT TO AMENDED AND

RESTATED REVOLVING CREDIT AND SECURITY AGREEMENT]

     Intending to be legally bound, each of the parties has signed this Third Amendment to Amended
and Restated Revolving Credit and Security Agreement as of the day and year first above written.

	 	 	 	 	 	 	 	 	 
	ATTEST:	 	L. B. FOSTER COMPANY	 	 
	 
	 	 	 	 	 	 	 	 
	/s/ Christopher T. Kijowski	 	By:	 	/s/ David J. Russo [Seal]	 	 
	 	 	 	 	 	 	 
	CHRISTOPHER T. KIJOWSKI

	 	 	 	Name:
	 	David J. Russo	 	 
	ASSISTANT TREASURER

	 	 	 	Title:
	 	Senior Vice President, Chief
Financial Officer, and Treasurer	 	 
	 
	 	 	 	 	 	 	 	 
	ATTEST:	 	CXT INCORPORATED	 	 
	 
	 	 	 	 	 	 	 	 
	/s/ Christopher T. Kijowski	 	By:	 	/s/ David J. Russo [Seal]	 	 
	 	 	 	 	 	 	 
	CHRISTOPHER T. KIJOWSKI

	 	 	 	Name:
	 	David J. Russo	 	 
	ASSISTANT TREASURER

	 	 	 	Title:
	 	Senior Vice President, Chief
Financial Officer, and Treasurer	 	 

 

 

[SIGNATURE PAGE 2 OF 2 TO SEVENTH AMENDMENT TO AMENDED AND

RESTATED REVOLVING CREDIT AND SECURITY AGREEMENT]

	 	 	 	 	 
	 	PNC BANK, NATIONAL ASSOCIATION, a national banking
association, as Lender and as Agent

 	 
	 	By:  	/s/ James M. Steffy
 	 
	 	 	Name:  	James M. Steffy 	 
	 	 	Title:  	Vice President 	 
	 
	 	BANK OF AMERICA, N.A.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	FIRST COMMONWEALTH BANK

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

 

 

[SIGNATURE PAGE 2 OF 2 TO SEVENTH AMENDMENT TO AMENDED AND 

RESTATED REVOLVING CREDIT AND SECURITY
AGREEMENT]

	 	 	 	 	 
	 	PNC BANK, NATIONAL ASSOCIATION, a national banking
association, as Lender and as Agent

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	BANK OF AMERICA, N.A.

 	 
	 	By:  	/s/ Christian Barrow
 	 
	 	 	Name:  	Christian Barrow 	 
	 	 	Title:  	SVP 	 
	 
	 	FIRST COMMONWEALTH BANK

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

 

 

	 	 	 	 	 

[SIGNATURE PAGE 2 OF 2 TO SEVENTH AMENDMENT TO AMENDED AND

RESTATED REVOLVING CREDIT AND SECURITY AGREEMENT]

	 	 	 	 	 
	 	PNC BANK, NATIONAL ASSOCIATION, a national banking
association, as Lender and as Agent

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	BANK OF AMERICA, N.A.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	FIRST COMMONWEALTH BANK

 	 
	 	By:  	/s/
Brian J. Sohocki
 	 
	 	 	Name:  	Brian J. Sohocki 	 
	 	 	Title:  	Vice President 	 

 

 

	 	 	 	 	 

L. B. Foster Company 

Schedule 4.15 (c)

Executive Offices of Borrowers

	 	 	 

	L. B. Foster Company
	 	CXT, Incorporated
	415 Holiday Drive
	 	2420 North Pioneer Lane
	Pittsburgh, Pennsylvania 15220
	 	Spokane, Washington 99216
	 	 	 
	Foster Thomas Company	 	 
	415 Holiday Drive	 	 
	Pittsburgh, PA 15220	 	 

 

 

Schedule 5.2(a) 

States Authorized to do Business 

L. B. Foster Company

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

	AL
	 	AK
	 	AZ
	 	CA
	 	CO
	 	DE
	 	FL
	 	GA
	 	HI
	 	ID
	IL
	 	IN
	 	IA
	 	KS
	 	KY
	 	LA
	 	MD
	 	MA
	 	MI
	 	MN
	MO
	 	MT
	 	NE
	 	NJ
	 	NM
	 	NY
	 	NC
	 	ND
	 	OH
	 	OK
	OE
	 	PA*
	 	RI
	 	TN
	 	TX
	 	UT
	 	VT
	 	VA
	 	WA
	 	 WV

CXT Incorporated

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	AZ
	 	CA
	 	DE*
	 	ID
	 	NE
	 	OR
	 	TX 
	 	 UT	 	 WA

Foster Thomas Company

WV*

(*State of Incorporation)

 

 

SCHEDULE 5.2(b)

L. B. Foster Company has the following subsidiaries:

CXT Incorporated, a Delaware corporation

Portec Rail Products, Inc., a West Virginia corporation

Foster Thomas Company, a West Virginia corporation 

Coal Train Holdings, Inc., a Delaware corporation

 

 

L. B. Foster Company

Schedule 5.4

Tax Identification Numbers

	 	 	 	 	 
	NAME	 	FEIN	 	STATE OF INCORPORATION
	CXT, Incorporated

	 	91-1498605
	 	Delaware
	L. B. Foster Company

	 	25-1324733
	 	Pennsylvania
	Foster Thomas Company

	 	27-2141302
	 	West Virginiaexv10w1

Exhibit 10.1

 

 

UNIT PURCHASE AGREEMENT

by and between

BUCKEYE PARTNERS, L.P.

and

FR XI OFFSHORE AIV, L.P.

 

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 

	ARTICLE I
	 	 	 	 
	 
	 	 	 	 	 	 
	DEFINITIONS
	 	 	 	 
	 
	 	 	 	 	 	 
	Section 1.1

	 	Definitions
	 	 	1	 
	 
	 	 	 	 	 	 
	ARTICLE II
	 	 	 	 
	 
	 	 	 	 	 	 
	AGREEMENT TO ISSUE AND SELL
	 	 	 	 
	 
	 	 	 	 	 	 
	Section 2.1

	 	Issuance and Sale
	 	 	5	 
	Section 2.2

	 	Closing
	 	 	5	 
	Section 2.3

	 	Mutual Conditions
	 	 	5	 
	Section 2.4

	 	Purchaser’s Conditions
	 	 	5	 
	Section 2.5

	 	Buckeye’s Conditions
	 	 	6	 
	Section 2.6

	 	Buckeye Deliveries
	 	 	6	 
	Section 2.7

	 	Purchaser Deliveries
	 	 	7	 
	 
	 	 	 	 	 	 
	ARTICLE III
	 	 	 	 
	 
	 	 	 	 	 	 
	REPRESENTATIONS AND WARRANTIES OF BUCKEYE
	 	 	 	 
	 
	 	 	 	 	 	 
	Section 3.1

	 	Existence
	 	 	8	 
	Section 3.2

	 	Consideration Units; Capitalization
	 	 	8	 
	Section 3.3

	 	No Conflict
	 	 	9	 
	Section 3.4

	 	No Default
	 	 	9	 
	Section 3.5

	 	Authority
	 	 	9	 
	Section 3.6

	 	Approvals
	 	 	9	 
	Section 3.7

	 	Compliance with Laws
	 	 	10	 
	Section 3.8

	 	Due Authorization
	 	 	10	 
	Section 3.9

	 	Valid Issuance; No Options or Preemptive Rights of Units
	 	 	10	 
	Section 3.10

	 	No Registration Rights
	 	 	11	 
	Section 3.11

	 	Periodic Reports
	 	 	11	 
	Section 3.12

	 	Litigation
	 	 	11	 
	Section 3.13

	 	No Material Adverse Change
	 	 	12	 
	Section 3.14

	 	Certain Fees
	 	 	12	 
	Section 3.15

	 	No Registration
	 	 	12	 
	Section 3.16

	 	No Integration
	 	 	12	 
	Section 3.17

	 	MLP Status
	 	 	12	 
	Section 3.18

	 	Investment Company Status
	 	 	12	 
	Section 3.19

	 	Form S-3 Eligibility
	 	 	12	 

i

 

ARTICLE IV

REPRESENTATIONS AND WARRANTIES OF THE PURCHASER

	 	 	 	 	 

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

	 
	 	 	 	 
	COVENANTS

	 
	 	 	 	 
	Section 5.1 Taking of Necessary Action
	 	 	14	 
	Section 5.2 Other Actions
	 	 	15	 
	 
	 	 	 	 
	ARTICLE VI

	 
	 	 	 	 
	INDEMNIFICATION

	 
	 	 	 	 
	Section 6.1 Indemnification by Buckeye
	 	 	15	 
	Section 6.2 Indemnification by the Purchaser
	 	 	15	 
	Section 6.3 Indemnification Procedure
	 	 	16	 
	 
	 	 	 	 
	ARTICLE VII

	 
	MISCELLANEOUS

	 
	 	 	 	 
	Section 7.1 Interpretation and Survival of Provisions
	 	 	16	 
	Section 7.2 Survival of Provisions
	 	 	17	 
	Section 7.3 No Waiver; Modifications in Writing
	 	 	17	 
	Section 7.4 Binding Effect; Assignment
	 	 	18	 
	Section 7.5 Communications
	 	 	18	 
	Section 7.6 Removal of Legend
	 	 	19	 
	Section 7.7 Entire Agreement
	 	 	19	 
	Section 7.8 Governing Law
	 	 	19	 
	Section 7.9 Execution in Counterparts
	 	 	20	 
	Section 7.10 Termination
	 	 	20	 
	Section 7.11 Recapitalization, Exchanges, Etc. Affecting the LP Units
	 	 	20	 
	 
	 	 	 	 
	Exhibit A — Form of Partnership Agreement Amendment
	 	 	 	 
	Exhibit B — Form of Opinion of Vinson & Elkins L.L.P.
	 	 	 	 
	Exhibit C — Form of Transfer Application
	 	 	 	 

ii

 

UNIT PURCHASE AGREEMENT

     This UNIT PURCHASE AGREEMENT, dated as of December 18, 2010 (this “Agreement”), is by
and between BUCKEYE PARTNERS, L.P., a Delaware limited partnership (“Buckeye”), and FR XI
Offshore AIV, L.P., an exempted limited partnership formed under the laws of the Cayman Islands
(the “Purchaser”).

     WHEREAS, Buckeye desires to issue and sell to the Purchaser, and the Purchaser agrees to
accept certain Class B Units and LP Units in accordance with the provisions of this Agreement as
partial consideration for the Acquisition (as defined below); and

     WHEREAS, as of the date hereof, Buckeye and the Purchaser have entered into a registration
rights agreement (the “Registration Rights Agreement”) pursuant to which Buckeye has
provided the Purchaser with certain registration rights with respect to the LP Units and Class B
Units acquired pursuant hereto, as well as the LP Units underlying the Class B Units, any Class B
Units issued to the holders of Class B Units as a distribution in kind or any LP Units issued in
lieu of cash as liquidated damages under the Registration Rights Agreement.

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

ARTICLE I

DEFINITIONS

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

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

     “Acquisition Agreement” means the Sale and Purchase Agreement among FR XI Offshore
AIV, L.P., FR Borco GP Ltd. and Buckeye Purchaser, dated December 18, 2010.

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

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

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

 

 

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

     “Buckeye Purchaser” means Buckeye Atlantic Holdings LLC, a Delaware limited liability
company.

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

     “Buckeye SEC Documents” has the meaning specified in Section 3.8.

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

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

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

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

     “Closing” has the meaning specified in Section 2.2.

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

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

     “Consideration Units” means the number of Class B Units and LP Units issued pursuant
hereto, which shall be determined as follows: (i) if the Closing Date occurs on or before the
record date for the distribution to Buckeye’s holders of LP Units with respect to the quarter
ending December 31, 2010, then 4,382,889 Class B Units and 2,483,444 LP Units, or (ii) if the
Closing Date occurs after the record date for the distribution to Buckeye’s holders of LP Units
with respect to the quarter ending December 31, 2010, then the number of Class B Units equal to the
quotient of (A) $250,000,000 and (B) the difference between $57.04 and the per unit amount of such
distribution and the number of LP Units equal to the quotient of (A) $150,000,000 and (B) the
difference between $60.40 and the per unit amount of such distribution. Buckeye anticipates paying
the distribution on or about February 15, 2011.

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

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

2

 

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

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

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

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

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

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

     “Lien” means any interest in Property securing an obligation owed to, or a claim by, a
Person other than the owner of the Property, whether such interest is based on the common law,
statute or contract, and whether such obligation or claim is fixed or contingent, and including the
lien or security interest arising from a mortgage, encumbrance, pledge, security agreement,
conditional sale or trust receipt or a lease, consignment or bailment for security purposes. For
the purpose of this Agreement, a Person shall be deemed to be the owner of any Property that it has
acquired or holds subject to a conditional sale agreement, or leases under a financing lease or
other arrangement pursuant to which title to the Property has been retained by or vested in some
other Person in a transaction intended to create a financing.

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

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

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

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

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

3

 

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

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

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

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

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

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

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

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

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

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

     “Subsidiary” means, with respect to any Person, (a) a corporation of which more than
50% of the voting power of shares entitled (without regard to the occurrence of any contingency) to
vote in the election of directors or other governing body of such corporation is owned, directly or
indirectly, at the date of determination, by such Person, by one or more Subsidiaries of such
Person or a combination thereof, (b) a partnership (whether general or limited) in which such
Person or a Subsidiary of such Person is, at the date of determination, a general or limited
partner of such partnership, but only if more than 50% of the partnership interests of such
partnership (considering all of the partnership interests of the partnership as a single class) is
owned, directly or indirectly, at the date of determination, by such Person, by one or more
Subsidiaries of such Person, or a combination thereof, or (c) any other Person (other than a
corporation or a partnership) in which such Person, one or more Subsidiaries of such Person, or a
combination thereof, directly or indirectly, at the date of determination, has (i) at least a
majority ownership interest or (ii) the power to elect or direct the election of a majority of the
directors or other governing body of such Person. For the avoidance of doubt, Subsidiaries to be
acquired by

4

 

Buckeye Purchaser pursuant to the Acquisition Agreement shall not be deemed to be Subsidiaries
of Buckeye for purposes of this Agreement.

     “Unit Purchase Agreements” means the Class B Unit Purchase Agreement and the PIPE (LP)
Unit Purchase Agreement.

ARTICLE II

AGREEMENT TO ISSUE AND SELL

          Section 2.1 Issuance and Sale. Subject to the terms and conditions hereof, Buckeye
hereby agrees to issue and sell to the Purchaser and the Purchaser hereby agrees to accept from
Buckeye as partial consideration for the Acquisition, the Consideration Units.

          Section 2.2 Closing. Subject to the terms and conditions hereof, the consummation of
the purchase and issuance and sale of the Consideration Units hereunder (the “Closing”)
shall take place at the offices of Vinson & Elkins L.L.P., 666 Fifth Avenue, 26th Floor, New York,
New York, or such other location as mutually agreed by the parties, and concurrently with the
closing of the Acquisition provided that the conditions set forth in Section 2.3, 2.4 and 2.5 have
been satisfied or waived at or prior to the time thereof (other than those conditions that are by
their terms to be satisfied at the Closing) (the date of such closing, the “Closing Date”).

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

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

     (b) the closing of the Acquisition shall occur concurrently with the Closing and all
conditions set forth in Section 7.3 (Conditions to Obligations of Purchaser) of the Acquisition
Agreement shall have been satisfied in all material respects or the fulfillment of any such
conditions to Buckeye Purchaser’s obligations shall have been waived, except for those conditions
which, by their nature, will be satisfied concurrently with the Closing.

               Section 2.4 Purchaser’s Conditions. The obligation of the Purchaser to accept the
Consideration Units shall be subject to the satisfaction on or prior to the Closing Date of each of
the following conditions (any or all of
which may be waived by the Purchaser in writing, in whole or in part, to the extent permitted
by applicable Law):

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

5

 

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

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

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

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

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

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

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

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

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

               Section 2.6 Buckeye Deliveries. At the Closing, subject to the terms and conditions
hereof, Buckeye will deliver, or cause to be delivered, to the Purchaser (or, at the Purchaser’s
direction, to any other Person):

     (a) A certificate or certificates representing the Consideration Units (bearing the legend set
forth in Section 4.8) and meeting the requirements of the Partnership Agreement, free

6

 

and
clear of any Liens, other than transfer restrictions under the Partnership Agreement and applicable
federal and state securities laws;

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

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

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

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

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

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

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

     (a) A transfer application in substantially the form attached hereto as Exhibit C,
which shall have been duly executed by the Purchaser; and

     (b) A certificate from the Purchaser, dated the Closing Date and signed by an appropriate
officer of the Purchaser, in his or her capacity as such, stating that:

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

     (ii) The representations and warranties of the Purchaser contained in this Agreement
that are qualified by materiality are true and correct as of the Closing Date

7

 

and all other
representations and warranties of the Purchaser are true and correct in all material
respects as of the Closing Date (except that representations and warranties made as of a
specific date shall be required to be true and correct as of such date only).

ARTICLE III

REPRESENTATIONS AND WARRANTIES OF BUCKEYE

     Buckeye represents and warrants to the Purchaser as follows:

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

               Section 3.2 Consideration Units; Capitalization.

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

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

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

8

 

               Section 3.3 No Conflict. None of (i) the offering, issuance and sale by Buckeye of
the Consideration Units and the application of the proceeds therefrom, (ii) the execution, delivery
and performance of the Operative Documents by Buckeye, or (iii) the consummation of the
transactions contemplated hereby or thereby conflicts or will conflict with, or results or will
result in a breach or violation of or imposition of any Lien upon any Property or assets of the
Buckeye Entities pursuant to, (A) the formation or governing documents of any of the Buckeye
Entities, (B) the terms of any indenture, contract, lease, mortgage, deed of trust, note agreement,
loan agreement or other agreement, obligation, condition, covenant or instrument to which any of
the Buckeye Entities is a party, by which any of them is bound or to which any of their respective
Properties or assets is subject, or (C) any Law applicable to any of the Buckeye Entities or
injunction of any court or governmental agency or body to which any of the Buckeye Entities of any
court, regulatory body, administrative agency, governmental body, arbitrator or other authority
having jurisdiction over any of the Buckeye Entities or any of their Properties, except in the case
of clause (B) for such conflict, breach, violation or default that would not, individually or in
the aggregate, have a Material Adverse Effect.

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

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

               Section 3.6 Approvals. Except as required by the Commission in connection with
Buckeye’s obligations under the Registration Rights Agreement, no authorization, consent, approval,
waiver, license, qualification or written exemption from, nor any filing, declaration,
qualification or registration with, any Governmental Authority or any other Person is required in
connection with the execution, delivery or performance by Buckeye of any of the Operative Documents
to which it is a party or Buckeye’s issuance and sale of the Consideration Units, except (i) as may
be required under the state securities or “Blue Sky” Laws, or (ii) where the failure to receive
such authorization, consent, approval, waiver, license, qualification or written exemption or to
make such filing, declaration, qualification or

9

 

registration would not, individually or in the
aggregate, reasonably be expected to have, individually or in the aggregate, a Material Adverse
Effect

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

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

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

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

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

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

10

 

     (d) The holders of outstanding LP Units are not entitled to statutory, preemptive or other
similar contractual rights to subscribe for LP Units or Class B Units; and, except with respect to
the Unit Purchase Agreements, no options, warrants or other rights to purchase, agreements or
other obligations to issue, or rights to convert any obligations into or exchange any securities
for, partnership securities or ownership interests in Buckeye are outstanding.

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

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

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

11

 

contemplated hereby and
thereby and, to the knowledge of Buckeye, no such proceedings are threatened by Governmental
Authorities or others.

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

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

               Section 3.15 No Registration. Assuming the accuracy of the representations and warranties of the Purchaser contained in
Section 4.5 and Section 4.6, the issuance and sale of the Consideration Units
pursuant to this Agreement is exempt from registration requirements of the Securities Act, and
neither Buckeye nor, to the knowledge of Buckeye, any authorized Representative acting on its
behalf has taken or will take any action hereafter that would cause the loss of such exemption.

               Section 3.16 No Integration. Neither Buckeye nor any of its Subsidiaries have,
directly or indirectly through any agent, sold, offered for sale, solicited offers to buy or
otherwise negotiated in respect of, any “security” (as defined in the Securities Act of 1933, as
amended) that is or will be integrated with the sale of the Consideration Units in a manner that
would require registration under the Securities Act.

               Section 3.17 MLP Status. Buckeye is properly treated as a partnership for United
States federal income tax purposes and more than 90% of Buckeye’s current gross income is
qualifying income under 7704(d) of the Internal Revenue Code of 1986, as amended.

               Section 3.18 Investment Company Status. Buckeye is not an “investment company” within
the meaning of the Investment Company Act of 1940, as amended.

               Section 3.19 Form S-3 Eligibility. As of the date hereof, Buckeye has been, since the
time of filing its most recent Form S-3 Registration Statement, and continues to be eligible to use
Form S-3.

ARTICLE IV

REPRESENTATIONS AND WARRANTIES OF THE PURCHASER

     The Purchaser represents and warrants to Buckeye that:

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

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

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

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

               Section 4.5 Investment. The Consideration Units are being acquired for the
Purchaser’s own account and with no intention of distributing the Consideration Units or any part
thereof, and the Purchaser has no present intention of selling or granting any participation in or
otherwise distributing the same in any transaction in violation of the securities laws of the
United States or any state, without prejudice, however, to the Purchaser’s right at all times to
sell or otherwise dispose of all or any part of the Consideration Units under a registration
statement under the Securities Act and applicable state securities laws or under an exemption from
such registration available thereunder (including, without limitation, if available, Rule 144
promulgated thereunder). If the Purchaser should in the future decide to dispose of any of the
Consideration Units, the Purchaser understands and agrees (a) that it may do so only in

13

 

compliance
with the Securities Act and applicable state securities law, as then in effect, including a sale
contemplated by any registration statement pursuant to which such securities are being offered, or
pursuant to an exemption from the Securities Act, and (b) that stop-transfer instructions to that
effect will be in effect with respect to such securities.

               Section 4.6 Nature of Purchaser. The Purchaser represents and warrants to, and
covenants and agrees with, Buckeye that, (a) it is an “accredited investor” within the meaning of
Rule 501 of Regulation D promulgated by the Commission pursuant to the Securities Act and (b) by
reason of its business and financial experience it has such knowledge, sophistication and
experience in making similar investments and in business and financial matters generally so as to
be capable of evaluating the merits and risks of the prospective investment in the Consideration
Units, is able to bear the economic risk of such investment and, at the present time, would be able
to afford a complete loss of such investment.

               Section 4.7 Restricted Securities. The Purchaser understands that the Consideration
Units are characterized as “restricted securities” under the federal securities Laws inasmuch as
they are being acquired from Buckeye in a transaction not involving a public offering and that
under such Laws and applicable regulations such securities may be resold without registration under
the Securities Act only in certain limited circumstances. In this connection, the Purchaser
represents that it is knowledgeable with respect to Rule 144 of the Commission promulgated under
the Securities Act.

               Section 4.8 Legend. The Purchaser understands that the certificates evidencing the
Consideration Units will bear the legend required by the Partnership Agreement as well as the
following legend: “These securities have not been registered under the Securities Act of 1933, as
amended (the “Securities Act”). These securities may not be sold or offered for sale except
pursuant to an effective registration statement under the Securities Act or pursuant to an
exemption from registration thereunder, in each case in accordance with all applicable securities
laws of the states or other jurisdictions, and in the case of a transaction exempt from
registration, such securities may only be transferred if the transfer agent for such securities has
received documentation satisfactory to it that such transaction does not require registration under
the Securities Act.”

ARTICLE V

COVENANTS

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

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

ARTICLE VI

INDEMNIFICATION

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

               Section 6.2 Indemnification by the Purchaser. The Purchaser agrees to indemnify
Buckeye, the General Partner and their respective Representatives (collectively, “Buckeye
Related Parties”) from, and hold each of them harmless against, any and all actions, suits,
proceedings (including any investigations, litigation or inquiries), demands, and causes of action,
and, in connection therewith, and promptly upon demand, pay or reimburse each of them for all
costs, losses, liabilities, damages, or expenses of any kind or nature whatsoever, including,
without limitation, the reasonable fees and disbursements of counsel and all other reasonable
expenses incurred in connection with investigating, defending or preparing to defend any such
matter that may be incurred by them or asserted against or involve any of them as a result of,
arising out of, or in any way related to the breach of any of the representations, warranties or
covenants of the Purchaser contained herein, provided that such claim for indemnification relating
to a breach of the representations and
warranties is made prior to the expiration of such representations and warranties; and
provided further, that no Buckeye Related Party shall be entitled to recover special, consequential
(including lost profits or diminution in value) or punitive damages.

15

 

               Section 6.3 Indemnification Procedure. Promptly after any Buckeye Related Party or
Purchaser Related Party (hereinafter, the “Indemnified Party”) has received notice of any
indemnifiable claim hereunder, or the commencement of any action, suit or proceeding by a third
person, which the Indemnified Party believes in good faith is an indemnifiable claim under this
Agreement, the Indemnified Party shall give the indemnitor hereunder (the “Indemnifying
Party”) written notice of such claim or the commencement of such action, suit or proceeding,
but failure to so notify the Indemnifying Party will not relieve the Indemnifying Party from any
liability it may have to such Indemnified Party hereunder except to the extent that the
Indemnifying Party is materially prejudiced by such failure. Such notice shall state the nature and
the basis of such claim to the extent then known. The Indemnifying Party shall have the right to
defend and settle, at its own expense and by its own counsel who shall be reasonably acceptable to
the Indemnified Party, any such matter as long as the Indemnifying Party pursues the same
diligently and in good faith. If the Indemnifying Party undertakes to defend or settle, it shall
promptly notify the Indemnified Party of its intention to do so, and the Indemnified Party shall
cooperate with the Indemnifying Party and its counsel in all commercially reasonable respects in
the defense thereof and the settlement thereof. Such cooperation shall include, but shall not be
limited to, furnishing the Indemnifying Party with any books, records and other information
reasonably requested by the Indemnifying Party and in the Indemnified Party’s possession or
control. Such cooperation of the Indemnified Party shall be at the cost of the Indemnifying Party.
After the Indemnifying Party has notified the Indemnified Party of its intention to undertake to
defend or settle any such asserted liability, and for so long as the Indemnifying Party diligently
pursues such defense, the Indemnifying Party shall not be liable for any additional legal expenses
incurred by the Indemnified Party in connection with any defense or settlement of such asserted
liability; provided, however, that the Indemnified Party shall be entitled (i) at its expense, to
participate in the defense of such asserted liability and the negotiations of the settlement
thereof and (ii) if (A) the Indemnifying Party has failed to assume the defense or employ counsel
reasonably acceptable to the Indemnified Party or (B) if the defendants in any such action include
both the Indemnified Party and the Indemnifying Party and counsel to the Indemnified Party shall
have concluded that there may be reasonable defenses available to the Indemnified Party that are
different from or in addition to those available to the Indemnifying Party or if the interests of
the Indemnified Party reasonably may be deemed to conflict with the interests of the Indemnifying
Party, then the Indemnified Party shall have the right to select a separate counsel and to assume
such legal defense and otherwise to participate in the defense of such action, with the expenses
and fees of such separate counsel and other expenses related to such participation to be reimbursed
by the Indemnifying Party as incurred. Notwithstanding any other provision of this Agreement, the
Indemnifying Party shall not settle any indemnified claim without the consent of the Indemnified
Party, unless the settlement thereof imposes no liability or obligation on, and includes a complete
release from liability of, and does not include any admission of wrongdoing or malfeasance by, the
Indemnified Party.

ARTICLE VII

MISCELLANEOUS

               Section 7.1 Interpretation and Survival of Provisions. Article, Section, Schedule,
and Exhibit references are to this Agreement, unless otherwise specified. All references to
instruments, documents, contracts, and agreements are references to such

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

               Section 7.2 Survival of Provisions. The representations and warranties set forth in
Sections 3.1, 3.2, 3.5, 3.9, 3.10, 3.13, 3.14, 3.15, 4.4, 4.6, 4.7 and 4.8 hereunder shall
survive the execution and delivery of this Agreement indefinitely, and the other representations
and warranties set forth herein shall survive for a period of twelve (12) months following the
Closing Date regardless of any investigation made by or on behalf of Buckeye or the Purchaser. The
covenants made in this Agreement or any other Operative Document shall survive the Closing of the
transactions described herein and remain operative and in full force and effect regardless of
acceptance of any of the Consideration Units and payment therefor and repayment, conversion,
exercise or repurchase thereof. All indemnification obligations of Buckeye and the Purchaser
pursuant to this Agreement and the provisions of Article VI shall remain operative and in full
force and effect unless such obligations are expressly terminated in a writing by the parties,
regardless of any purported general termination of this Agreement.

               Section 7.3 No Waiver; Modifications in Writing.

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

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

17

 

               Section 7.4 Binding Effect; Assignment.

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

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

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

     (a) If to the Purchaser:

c/o First Reserve

One Lafayette Place

Greenwich, Connecticut 06830

Attention: Alan G. Schwartz

Facsimile: (203) 661-6729

Email: aschwartz@firstreserve.com

with a copy to:

Baker Botts L.L.P.

99 San Jacinto Boulevard, Suite 1500

Austin, Texas 78701

Attention: Mike Bengtson

Facsimile: (512) 322-8349

     (b) If to Buckeye:

Buckeye Partners, L.P.

One Greenway Plaza, Suite 600

Houston, TX 77046

Attention: General Counsel

Facsimile: 610.904.4006

with a copy to:

Vinson & Elkins L.L.P.

666 Fifth Avenue

26th Floor

18

 

New York, NY 10103

Attention: E. Ramey Layne

Facsimile: 212.237.0100

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

               Section 7.6 Removal of Legend. In connection with a sale of the Consideration Units
by the Purchaser in reliance on Rule 144, the Purchaser or its broker shall deliver to the transfer
agent and Buckeye a broker representation letter providing to the transfer agent and Buckeye any
information Buckeye deems necessary to determine that the sale of the Consideration Units is made
in compliance with Rule 144, including, as may be appropriate, a certification that the Purchaser
is not an Affiliate of Buckeye and regarding the length of time the Consideration Units have been
held. Upon receipt of such representation letter, Buckeye shall promptly direct its transfer agent
to exchange unit certificates bearing a restrictive legend for unit certificates without the legend
(or a credit for such shares to book-entry accounts maintained by the transfer agent), including
the legend referred to in Section 4.9, and Buckeye shall bear all costs associated therewith. After
the Purchaser or its permitted assigns have held the Consideration Units for one year, if the
certificate for such Consideration Units still bears the restrictive legend referred to in Section
4.8, Buckeye agrees, upon request of the Purchaser or permitted assignee, to take all steps
necessary to promptly effect the removal of the legend described in Section 4.8 from the
Consideration Units, and Buckeye shall bear all costs associated therewith, regardless of whether
the request is made in connection with a sale or otherwise, so long as the Purchaser or its
permitted assigns provide to Buckeye any information Buckeye deems necessary to determine that the
legend is no longer required under the Securities Act or applicable state laws, including a
certification that the holder is not an Affiliate of Buckeye (and a covenant to inform Buckeye if
it should thereafter
become an Affiliate and to consent to exchange its certificates for certificates bearing an
appropriate restrictive legend) and regarding the length of time the Consideration Units have been
held.

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

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

19

 

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

               Section 7.10 Termination.

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

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

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

     (ii) upon the termination of the Acquisition Agreement.

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

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

[Signature pages follow.]

20

 

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

	 	 	 	 	 
	 	BUCKEYE PARTNERS, L.P.

By: BUCKEYE GP LLC

       (its General Partner)

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

Signature Page to Unit Purchase Agreement

(First Reserve)

 

 

	 	 	 	 	 
	 	FR XI OFFSHORE AIV, L.P.

By: FR XI Offshore GP, L.P., its general partner

By: FR XI Offshore GP Limited, its general partner

 	 
	 	By:  	/s/ Alan Schwartz
 	 
	 	 	Name:  	Alan Schwartz 	 
	 	 	Title:  	Director 	 
	 

Signature Page to Unit Purchase Agreement

(First Reserve)

 

 

Exhibit A — Form of Amendment No. 1 to Amended and
 Restated Agreement of Limited Partnership

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

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

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

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

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

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

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

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

Exhibit A to Unit Purchase Agreement

 

 

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

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

     NOW, THEREFORE, it is hereby agreed as follows:

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

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

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

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

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

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

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

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

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

Exhibit A to Unit Purchase Agreement

 

 

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

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

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

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

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

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

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

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

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

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

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

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

Exhibit A to Unit Purchase Agreement

 

 

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

          Section 4.8 Establishment of Class B Units

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

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

     (c) Conversion of Class B Units

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

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

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

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

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

Exhibit A to Unit Purchase Agreement

 

 

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

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

     (d) Distributions.

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

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

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

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

Exhibit A to Unit Purchase Agreement

 

 

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

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

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

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

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

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

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

Exhibit A to Unit Purchase Agreement

 

 

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

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

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

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

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

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

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

Exhibit A to Unit Purchase Agreement

 

 

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

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

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

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

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

Exhibit A to Unit Purchase Agreement

 

 

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

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

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

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

[Signatures on following page]

Exhibit A to Unit Purchase Agreement

 

 

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

	 	 	 	 	 
	 	GENERAL PARTNER:

Buckeye GP LLC

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Exhibit A to Unit Purchase Agreement

 

 

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

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

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

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

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

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

          (v) Except for the approvals required by the Commission in connection with Buckeye’s
obligations under the Registration Rights Agreement, no authorization, consent, approval, waiver,
license, qualification, filing, declaration, qualification or registration with, any Governmental
Authority is required for the issuance and sale by Buckeye of the Consideration Units, the
execution, delivery and performance by Buckeye of the Operative Documents or the consummation of
the transactions contemplated by the Operative Documents, except those that

Exhibit B to Unit Purchase Agreement

(First Reserve)

 

 

have been obtained or as may be required under state securities or “Blue Sky” laws, as to
which we do not express any opinion.

          (vi) Buckeye is not, and after giving effect to the Acquisition will not be, an “investment
company” within the meaning of the Investment Company Act of 1940, as amended.

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

          (viii) The holders of outstanding LP Units are not entitled to statutory, preemptive or, to
such counsel’s knowledge, other similar contractual rights to subscribe for the Consideration
Units.

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

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

Exhibit B to Unit Purchase Agreement

(First Reserve)

 

 

Exhibit C — Form of Transfer Application

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

APPLICATION FOR TRANSFER OF LP UNITS

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

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

	 	 	 	 	 	 	 	 	 

	Date: [                    , 2011]
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	     [          ]	 	 	 	[Name of entity]	 	 
	 

Tax Identification Number of assignee

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	          [$          ]

	 	 	 	By:	 	 	 	 
	 

Purchase Price including commissions, if any

	 	 	 	Name:
	 	 

	 	 
	 

	 	 	 	Title:	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	[           ]	 	 
	 	 	 	 	[           ]	 	 
	 	 	 	 	[           ]	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	Name and address of assignee	 	 

Exhibit C to Unit Purchase Agreement

(First Reserve)

 

Type of Entity (check one):

	 	 	 	 	 	 	 	 	 	 	 

	o

	 	Individual
	 	o
	 	Partnership
	 	o
	 	Corporation
	o

	 	Trust
	 	o
	 	Other (specify)                    	 	 	 	 

Nationality (check one):

	 	 	 	 	 	 	 

	o	 	U.S. Citizen, Resident or Domestic Entity
	o

	 	Foreign Corporation
	 	o
	 	Non resident Alien

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

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

     Complete Either A or B:

	 	A.	 	Individual Interestholder

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

	 	B.	 	Partnership, Corporation or Other Interestholder

	 	1.	 	[            ]. is not a foreign corporation, foreign
partnership, foreign trust or foreign estate (as those terms are defined in
the Code and Treasury Regulations).
	 
	 	2.	 	The interestholder’s U.S. employer identification number is [________].
	 
	 	3.	 	The interestholder’s office address and place of
incorporation (if applicable) is [       ] (incorporated in [Delaware]).

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

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

[The remainder of this page is intentionally left blank]

Exhibit C to Unit Purchase Agreement

(First Reserve)

 

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

	 	 	 

	Date: [___________ __, 2011]

	 	[                      ].

	 	 	 	 	 	 	 

	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:	 	 	 	 

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

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

Exhibit C to Unit Purchase Agreement

(First Reserve)

 

	 	 	 	 	 	 	 

	Acknowledged by:	 	 
	 
	 	 	 	 	 	 
	BUCKEYE PARTNERS, L.P.	 	 
	 
	 	 	 	 	 	 
	By:	 	Buckeye GP LLC,	 	 
	 	 	its General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	Title:	 	 	 	 

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

Exhibit C to Unit Purchase Agreement

(First Reserve)

 

 

APPLICATION FOR TRANSFER OF CLASS B UNITS

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

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

	 	 	 	 	 	 	 

	Date:                     , 2011
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	Tax Identification Number of assignee
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	$
	 	By:
	 	 	 	 
	 

	 	 	 	 	 	 
	Purchase Price including commissions, if any

	 	Name:	 	 	 	 
	 

	 	Title:	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	 	Name and address of assignee	 	 

Exhibit C to Unit Purchase Agreement

(First Reserve)

 

 

Type of Entity (check one):

	 	 	 	 	 	 	 

	 

	 	o            Individual
	 	o             Partnership
	 	o             Corporation
	 

	 	o            Trust
	 	o            Other (specify)                    	 	 

Nationality (check one):

	 	 	 	 	 

	 

	 	o            U.S. Citizen, Resident or Domestic Entity	 	 
	 

	 	o            Foreign Corporation
	 	o             Non resident Alien

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

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

     Complete Either A or B:

	 	A.	 	Individual Interestholder

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

	 	B.	 	Partnership, Corporation or Other Interestholder

	 	1.	 	               . is not a foreign corporation, foreign
partnership, foreign trust or foreign estate (as those terms are defined in
the Code and Treasury Regulations).
	 
	 	2.	 	The interestholder’s U.S. employer identification number is                     .
	 
	 	3.	 	The interestholder’s office address and place of
incorporation (if applicable) is                 (incorporated in                ).

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

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

[The remainder of this page is intentionally left blank]

Exhibit C to Unit Purchase Agreement

(First Reserve)

 

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

	 	 	 	 

	Date: [___________ __, 2011]

	 	[                      ].	 

	 	 	 	 	 	 	 

	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:	 	 	 	 

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

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

Exhibit C to Unit Purchase Agreement

(First Reserve)

 

 

	 	 	 

	Acknowledged by:
	 
	 	 
	BUCKEYE PARTNERS, L.P.
	 
	 	 
	By:

	 	Buckeye GP LLC,

its General Partner

	 	 	 	 	 	 	 

	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:	 	 	 	 

Exhibit
C to Unit Purchase Agreement
(First Reserve)

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