Bridge Loan Agreement

EXHIBIT 10.1


Execution Copy


BRIDGE LOAN AGREEMENT


DATED AS OF OCTOBER 1, 2004


AMONG


BUCKEYE PARTNERS, L.P.
AS BORROWER,


SUNTRUST BANK,
AS ADMINISTRATIVE AGENT,


AND


THE LENDERS SIGNATORY HERETO


$300,000,000 BRIDGE LOAN FACILITY


- --------------------------------------------------------------------------------


SUNTRUST CAPITAL MARKETS, INC.,


AS SOLE LEAD ARRANGER


TABLE OF CONTENTS ARTICLE I DEFINITIONS AND ACCOUNTING MATTERS................................................................. 1


SECTION 1.01. Certain Defined Terms............................................................... 1
SECTION 1.02. Accounting Terms and Determinations................................................. 18


ARTICLE II COMMITMENTS....................................................................................... 18


SECTION 2.01. Loans............................................................................... 18
SECTION 2.02. Borrowing, Continuations and Conversions of Loans................................... 19
SECTION 2.03. Fees............................................................................... 20
SECTION 2.04. Several Obligations................................................................. 20
SECTION 2.05. Noteless Agreement; Evidence of Indebtedness........................................ 20
SECTION 2.06. Prepayments......................................................................... 21
SECTION 2.07. Lending Offices..................................................................... 22


ARTICLE III PAYMENTS OF PRINCIPAL AND INTEREST............................................................... 22


SECTION 3.01. Repayment of Loans.................................................................. 22
SECTION 3.02. Interest............................................................................ 23


ARTICLE IV PAYMENTS; PRO RATA TREATMENT; COMPUTATIONS; ETC................................................... 23


SECTION 4.01. Payments............................................................................ 23
SECTION 4.02. Pro Rata Treatment.................................................................. 24
SECTION 4.03. Computations........................................................................ 24
SECTION 4.04. Non-receipt of Funds by the Agent................................................... 24
SECTION 4.05. Set-off, Sharing of Payments, Etc................................................... 25
SECTION 4.06. Taxes............................................................................... 25


ARTICLE V YIELD PROTECTION................................................................................... 27


SECTION 5.01. Additional Costs.................................................................... 27
SECTION 5.02. Basis Unavailable or Inadequate for LIBOR Rate...................................... 29
SECTION 5.03. Illegality.......................................................................... 29
SECTION 5.04. Base Rate Loans..................................................................... 29
SECTION 5.05. Compensation........................................................................ 29


ARTICLE VI CONDITIONS PRECEDENT.............................................................................. 30


SECTION 6.01. Closing............................................................................. 30
SECTION 6.02. Conditions Precedent for the Benefit of Lenders..................................... 31
SECTION 6.03. No Waiver........................................................................... 32


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ARTICLE VII REPRESENTATIONS AND WARRANTIES................................................................... 32


SECTION 7.01. Existence........................................................................... 32
SECTION 7.02. Financial Condition................................................................. 32
SECTION 7.03. Litigation.......................................................................... 33
SECTION 7.04. No Breach........................................................................... 33
SECTION 7.05. Authority........................................................................... 33
SECTION 7.06. Approvals........................................................................... 33
SECTION 7.07. Use of Loans........................................................................ 34
SECTION 7.08. ERISA............................................................................... 34
SECTION 7.09. Taxes............................................................................... 35
SECTION 7.10. Titles, etc......................................................................... 35
SECTION 7.11. No Material Misstatements........................................................... 36
SECTION 7.12. Investment Company Act.............................................................. 36
SECTION 7.13. Public Utility Holding Company Act.................................................. 36
SECTION 7.14. Subsidiaries........................................................................ 36
SECTION 7.15. Location of Business and Offices.................................................... 36
SECTION 7.16. Defaults............................................................................ 37
SECTION 7.17. Environmental Matters............................................................... 37
SECTION 7.18. Compliance with the Law............................................................. 38
SECTION 7.19. Insurance........................................................................... 38
SECTION 7.20. Material Agreements................................................................. 38
SECTION 7.21. Partnership Agreement............................................................... 39
SECTION 7.22. Ownership of Parties................................................................ 39
SECTION 7.23. Laurel.............................................................................. 39


ARTICLE VIII AFFIRMATIVE COVENANTS........................................................................... 39


SECTION 8.01. Reporting Requirements.............................................................. 40
SECTION 8.02. Litigation......................................................................... 41
SECTION 8.03. Maintenance, Etc.................................................................... 42
SECTION 8.04. Environmental Matters............................................................... 42
SECTION 8.05. Further Assurances.................................................................. 43
SECTION 8.06. Performance of Obligations.......................................................... 43
SECTION 8.07. ERISA Information and Compliance.................................................... 43


ARTICLE IX NEGATIVE COVENANTS................................................................................ 44


SECTION 9.01. Debt................................................................................ 44
SECTION 9.02. Liens............................................................................... 45
SECTION 9.03. Investments, Loans and Advances..................................................... 46
SECTION 9.04. Distributions and Redemptions....................................................... 47
SECTION 9.05. Sales and Leasebacks................................................................ 47
SECTION 9.06. Nature of Business.................................................................. 47
SECTION 9.07. Restrictive Agreements.............................................................. 47
SECTION 9.08. Mergers, Etc........................................................................ 48
SECTION 9.09. Proceeds of the Loans............................................................... 48


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SECTION 9.10. ERISA Compliance.................................................................... 48
SECTION 9.11. Sale or Discount of Receivables..................................................... 49
SECTION 9.12. Funded Debt Ratio................................................................... 49
SECTION 9.13. Fixed Charge Coverage Ratio......................................................... 50
SECTION 9.14. Sale of Properties.................................................................. 50
SECTION 9.15. Environmental Matters............................................................... 50
SECTION 9.16. Transactions with Affiliates........................................................ 50
SECTION 9.17. Partnership Agreements.............................................................. 50
SECTION 9.18. Senior Notes........................................................................ 51


ARTICLE X EVENTS OF DEFAULT; REMEDIES........................................................................ 51


SECTION 10.01. Events of Default.................................................................. 51
SECTION 10.02. Remedies........................................................................... 53


ARTICLE XI THE AGENT......................................................................................... 53


SECTION 11.01. The Agent.......................................................................... 53
SECTION 11.02. Expenses........................................................................... 55
SECTION 11.03. Proportionate Absorption of Losses................................................. 55
SECTION 11.04. Delegation of Duties; Reliance..................................................... 56
SECTION 11.05. Limitation of the Agent's Liability................................................ 56
SECTION 11.06. Event of Default................................................................... 57
SECTION 11.07. Limitation of Liability............................................................ 57
SECTION 11.08. Other Agents....................................................................... 58
SECTION 11.09. Relationship of Lenders............................................................ 58
SECTION 11.10. Benefits of Agreement.............................................................. 58


ARTICLE XII MISCELLANEOUS.................................................................................... 58


SECTION 12.01. Waiver............................................................................. 58
SECTION 12.02. Notices............................................................................ 58
SECTION 12.03. Payment of Expenses, Indemnities, etc.............................................. 58
SECTION 12.04. Amendments, Etc.................................................................... 61
SECTION 12.05. Successors and Assigns............................................................. 62
SECTION 12.06. Assignments and Participations..................................................... 62
SECTION 12.07. Invalidity......................................................................... 64
SECTION 12.08. Counterparts....................................................................... 64
SECTION 12.09. References......................................................................... 64
SECTION 12.10. Survival........................................................................... 64
SECTION 12.11. Captions........................................................................... 65
SECTION 12.12. NO ORAL AGREEMENTS................................................................. 65
SECTION 12.13. GOVERNING LAW; SUBMISSION TO JURISDICTION.......................................... 65
SECTION 12.14. Interest........................................................................... 66
SECTION 12.15. Confidentiality.................................................................... 67
SECTION 12.16. EXCULPATION PROVISIONS............................................................. 68


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ANNEXES, EXHIBITS AND SCHEDULES


Annex I - List of Percentage Shares and Commitments Exhibit A - Form of Notice of Borrowing Exhibit B - Form of Continuation and Conversion Request Exhibit C - Form of Compliance Certificate Exhibit D - Form of Assignment Agreement Exhibit E-1 - Restricted Subsidiaries as of the Date Hereof Exhibit E-2 - Unrestricted Subsidiaries as of the Date Hereof Exhibit F - Form of Guaranty


Schedule 7.02 - Liabilities Schedule 7.03 - Litigation Schedule 7.10 - Titles, etc. Schedule 7.14 - Subsidiaries and Partnerships Schedule 7.17 - Environmental Matters Schedule 7.22 - Structure and Ownership of Subsidiaries Schedule 9.01 - Debt Schedule 9.02 - Liens Schedule 9.03 - Investments, Loans and Advances


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THIS BRIDGE LOAN AGREEMENT (as amended, supplemented and modified from time to time, this "AGREEMENT") is entered into as of October 1, 2004, among BUCKEYE PARTNERS, L.P., a limited partnership formed under the laws of the State of Delaware (the "BORROWER"); each of the lenders that is a signatory hereto or that becomes a signatory hereto as provided in Section 12.06 (together with their successors and assigns, the "LENDERS"); SUNTRUST BANK ("SUNTRUST"), as administrative agent for the Lenders (in such, capacity, together with its successors in such capacity, the "AGENT").


RECITALS


A. The Borrower has requested that the Lenders provide certain loans to and extensions of credit on behalf of the Borrower.


B. The Lenders have agreed to make such loans and extensions of credit subject to the terms and conditions of this Agreement.


C. In consideration of the mutual covenants and agreements herein contained and of the loans, extensions of credit and commitments hereinafter referred to, the parties hereto agree as follows:


ARTICLE I
DEFINITIONS AND ACCOUNTING MATTERS


SECTION 1.01. CERTAIN DEFINED TERMS.


As used herein, the following terms shall have the following meanings (all terms defined in this Article I or in other provisions of this Agreement in the singular to have equivalent meanings when used in the plural and vice versa):


"ACQUISITION" means the acquisition by the Borrower of five
petroleum products pipelines and twenty-four petroleum products terminals
in the Midwestern United States from affiliates of Shell Oil Products U.S.
pursuant to the Acquisition Agreement.


"ACQUISITION AGREEMENT" shall mean that certain Purchase and Sale
Agreement, effective as of June 30, 2004, by and between Shell Pipeline
Company LP, a Delaware limited partnership and Equilon Enterprises LLC
d/b/a Shell Oil Products US, a Delaware limited liability company
(collectively "Seller"), and Buckeye Partners, L.P., a Delaware limited
partnership ("Buyer").


"ACQUISITION DOCUMENTS" shall mean, collectively, the Acquisition
Agreement and all other documents, instruments, agreements, notes,
guaranties, opinions and certificates executed by the Borrower pursuant
thereto.


"ADDITIONAL COSTS" shall have the meaning assigned such term in
Section 5.01(a).


"AFFECTED LOANS" shall have the meaning assigned such term in
Section 5.04.


"AFFILIATE" of any Person shall mean (i) any Person directly or
indirectly controlled by, controlling or under common control with such
first Person, (ii) any director or officer of such first Person or of any
Person referred to in clause (i) above and (iii) if any Person in clause
(i) above is an individual, any member of the immediate family (including
parents, spouse and children) of such individual and any trust whose
principal beneficiary is such individual or one or more members of such
immediate family and any Person who is controlled by any such member or
trust. For purposes of this definition, any Person which owns directly or
indirectly 10% or more of the securities having ordinary voting power for
the election of directors or other governing body of a corporation or 10%
or more of the partnership or other ownership interests of any other
Person (other than as a limited partner of such other Person) will be
deemed to "control" (including, with its correlative meanings, "controlled
by" and "under common control with") such corporation or other Person.


"AGENT" shall have the meaning assigned such term in the preamble to
this Agreement.


"AGREEMENT" shall have the meaning assigned such term in the
preamble to this Agreement.


"APPLICABLE LENDING OFFICE" shall mean, for each Lender and for each
Type of Loan, the lending office of such Lender (or an Affiliate of such
Lender) designated for such Type of Loan on the signature pages hereof or
such other offices of such Lender (or of an Affiliate of such Lender) as
such Lender may from time to time specify to the Agent and the Borrower as
the office by which its Loans of such Type are to be made and maintained.


"APPLICABLE MARGIN" shall mean, for any LIBOR Loan or any Base Rate
Loan, the LIBOR Margin or Base Rate Margin interest rate per annum set
forth below in the columns identified as Level 1, Level 2, Level 3, Level
4 and Level 5 determined by reference to the Reference Rating.


LEVEL 1 LEVEL 2 LEVEL 3 LEVEL 4 LEVEL 5
---------------- ----------------- ----------------- ----------------- ------------------
Reference Rating Reference Rating Reference Rating
Less than Level 1 Less than Level 2 Less than Level 3
S&P Reference Rating but at least but at least but at least Reference Rating
Moody's at least A-/A3 BBB+/Baa1 BBB/Baa2 BBB-/Baa3 below Level 4* - ------------------------ ---------------- ----------------- ----------------- ----------------- ------------------ Interest Rate Per Annum


LIBOR Margin 0.500% 0.625% 0.750% 1.000% 1.750%


Base Rate Margin 0.000% 0.000% 0.000% 0.000% 0.000%


*or unrated


Any change in the Applicable Margin will be effective as of the date
on which S&P or Moody's, as the case may be, announces any change in the
ratings used to determine the Reference Rating. Notwithstanding anything
to the contrary contained


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herein, if the Funded Debt Ratio is at any time greater than 5.25 to 1.00,
then the Applicable Margins shall automatically increase by 0.25% for all
pricing Levels listed above and such 0.25% incremental Applicable Margin
increase shall remain in effect until the Borrower delivers a Compliance
Certificate in accordance herewith demonstrating that the Funded Debt
Ratio is not greater than 5.25 to 1.00.


"ASSIGNMENT AGREEMENT" shall have the meaning assigned such term in
Section 12.06(b).


"BASE RATE" shall mean, with respect to any Base Rate Loan, for any
day, the higher of (i) the Federal Funds Rate for any such day plus 1/2 of
1% and (ii) the Prime Rate for such day. Each change in any interest rate
provided for herein based upon the Base Rate resulting from a change in
the Base Rate shall take effect at the time of such change in the Base
Rate.


"BASE RATE LOANS" shall mean Loans that bear interest at rates based
upon the Base Rate.


"BMC" shall mean Buckeye Management Company LLC, a Delaware limited
liability company.


"BOARD OF DIRECTORS" means, with respect to any Person, such
Person's board of directors, managers or members, as applicable.


"BPLC" shall mean Buckeye Pipe Line Company LLC, a Delaware limited
liability company, formerly a Delaware corporation.


"BORROWER" shall have the meaning assigned such term in the preamble
to this Agreement.


"BORROWER PARTNERSHIP AGREEMENT" shall mean the Amended and Restated
Agreement of Limited Partnership of the Borrower, dated as of December 31,
1998, as amended from time to time.


"BUCKEYE PIPE LINE LLC AGREEMENT" shall mean the Limited Liability
Company Agreement of Buckeye Pipe Line Company, LLC, dated as of May 4,
2004, as it may be amended from time to time.


"BUSINESS DAY" shall mean any day other than a day on which
commercial banks are authorized or required to close in Georgia or New
York and, if such day relates to a borrowing or continuation of, a payment
or prepayment of principal of or interest on, or a conversion of or into,
or the Interest Period for, a LIBOR Loan or a notice by the Borrower with
respect to any such borrowing or continuation, payment, prepayment,
conversion or Interest Period, any day that is also a day on which
dealings in Dollar deposits are carried out in the London interbank
market.


"CERCLA" shall mean the Comprehensive Environmental Response,
Compensation and Liability Act of 1980, 42 U.S.C. Section 9601 et seq.


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"CHANGE OF CONTROL" shall mean either (i) a change resulting when
any Unrelated Person or any Unrelated Persons acting together that would
constitute a Group together with any Affiliates thereof (in each case also
constituting Unrelated Persons) shall at any time Beneficially Own more
than 50% of the aggregate voting power of all classes of Voting Stock of
BMC, (ii) BMC or Glenmoor, LLC shall cease to own 100% of the outstanding
equity interests of the General Partner on a fully diluted basis or (iii)
the General Partner shall cease to own 100% of the general partnership
interest of the Borrower. As used herein (A) "Beneficially Own" means
"beneficially own" as defined in Rule 13d-3 of the Securities Exchange Act
of 1934, as amended, or any successor provision thereto; provided,
however, that, for purposes of this definition, a Person shall not be
deemed to Beneficially Own securities tendered pursuant to a tender or
exchange offer made by or on behalf of such Person or any of such Person's
Affiliates until such tendered securities are accepted for purchase or
exchange; (B) "Group" means a "group" for purposes of Section 13(d) of the
Securities Exchange Act of 1934, as amended; (C) "Unrelated Person" means
at any time any Person other than (1) Glenmoor, LLC and the stockholders
thereof as of August 6, 2004, (2) their respective spouses, lineal
descendants, and spouses of their lineal descendants, (3) the estates of
the Persons described in clauses (1) and (2), and (4) trusts established
solely for the benefit of any Person or Persons described in clauses (1)
and (2); and (D) "Voting Stock" of any Person shall mean capital stock of
such Person that ordinarily has voting power for the election of directors
(or persons performing similar functions) of such Person, whether at all
times or only so long as no senior class of securities has such voting
power by reason of any contingency.


"CLOSING DATE" shall mean the date on which the conditions precedent
described in Section 6.01 shall be satisfied or waived.


"CODE" shall mean the Internal Revenue Code of 1986, as amended from
time to time and any successor statute.


"COMMITMENT" shall mean, with respect to each Lender, the obligation
of such Lender to make a Loan to Borrower hereunder on the Closing Date,
in a principal amount equal to the amount set forth with respect to such
Lender on Annex I. The aggregate principal amount of all Lenders'
Commitments on the date of this Agreement is $300,000,000.


"COMPLIANCE CERTIFICATE" shall mean a certificate from the Borrower
substantially in the form of Exhibit C.


"CONSOLIDATED NET INCOME" shall mean, with respect to any Person for
any period, the aggregate of the net income (or loss) of such Person and
its Consolidated Subsidiaries after allowances for taxes for such period,
determined on a consolidated basis in accordance with GAAP; provided that
there shall be excluded from such net income (to the extent otherwise
included therein) the following: (i) the net income of any other Pers ...