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                                                                  EXECUTION COPY

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                         SUBURBAN PROPANE PARTNERS, L.P.

                                       and

                         SUBURBAN ENERGY FINANCE CORP.,

                                   as Issuers

                          6.875% SENIOR NOTES DUE 2013

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

                                    INDENTURE

                          Dated as of December 23, 2003

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

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

                              THE BANK OF NEW YORK

                                     Trustee

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

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

<PAGE>

                             CROSS-REFERENCE TABLE*

Trust Indenture
Act Section                                                 Indenture Section
  310(a)(1).............................................            7.10
     (a)(2).............................................            7.10
     (a)(3).............................................            N.A.
     (a)(4).............................................            N.A.
     (a)(5).............................................            7.10
     (b)................................................            7.10
     (c)................................................            N.A.
  311(a)................................................            7.11
     (b)................................................            7.11
     (c)................................................            N.A.
  312(a)................................................            2.05
     (b)................................................           12.03
     (c)................................................           12.03
  313(a)................................................            7.06
     (b)(1).............................................            N.A.
     (b)(2).............................................         7.06; 7.07
     (c)................................................        7.06; 12.02
     (d)................................................            7.06
  314(a)................................................     4.03;12.02; 12.05
     (b)................................................            N.A.
     (c)(1).............................................           12.04
     (c)(2).............................................           12.04
     (c)(3).............................................            N.A.
     (d)................................................            N.A.
     (e)................................................           12.05
     (f)................................................            N.A.
  315(a)................................................            7.01
     (b)................................................         7.05,12.02
     (c)................................................            7.01
     (d)................................................            7.01
     (e)................................................            6.11
  316(a) (last sentence)................................            2.09
     (a)(1)(A)..........................................            6.05
     (a)(1)(B)..........................................            6.04
     (a)(2).............................................            N.A.
     (b)................................................            6.07
     (c)................................................            2.12
  317(a)(1).............................................            6.08
     (a)(2).............................................            6.09
     (b)................................................            2.04
  318(a)................................................           12.01
     (b)................................................            N.A.
     (c)................................................           12.01

N.A. means not applicable.
* This Cross Reference Table is not part of this Indenture.

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                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                                  Page

                                              ARTICLE 1.
                                     DEFINITIONS AND INCORPORATION
                                             BY REFERENCE
<S>              <C>                                                                           <C>
Section 1.01     Definitions........................................................................1
Section 1.02     Other Definitions.................................................................21
Section 1.03     Incorporation by Reference of Trust Indenture Act.................................22
Section 1.04     Rules of Construction.............................................................22

                                              ARTICLE 2.
                                               THE NOTES

Section 2.01     Form and Dating...................................................................23
Section 2.02     Execution and Authentication......................................................24
Section 2.03     Registrar and Paying Agent........................................................24
Section 2.04     Paying Agent to Hold Money in Trust...............................................25
Section 2.05     Holder Lists......................................................................25
Section 2.06     Transfer and Exchange.............................................................25
Section 2.07     Replacement Notes.................................................................37
Section 2.08     Outstanding Notes.................................................................37
Section 2.09     Treasury Notes....................................................................37
Section 2.10     Temporary Notes...................................................................38
Section 2.11     Cancellation......................................................................38
Section 2.12     Defaulted Interest................................................................38
Section 2.13     Persons Deemed Owners.............................................................38
Section 2.14     CUSIP Numbers.....................................................................38

                                              ARTICLE 3.
                                       REDEMPTION AND PREPAYMENT

Section 3.01     Notices to Trustee................................................................39
Section 3.02     Selection of Notes to Be Redeemed or Purchased....................................39
Section 3.03     Notice of Redemption..............................................................40
Section 3.04     Effect of Notice of Redemption....................................................40
Section 3.05     Deposit of Redemption or Purchase Price...........................................40
Section 3.06     Notes Redeemed or Purchased in Part...............................................41
Section 3.07     Optional Redemption...............................................................41
Section 3.08     Mandatory Redemption..............................................................42
Section 3.09     [Reserved]........................................................................42
Section 3.10     Offer to Purchase by Application of Excess Proceeds...............................42

                                              ARTICLE 4.
                                               COVENANTS

Section 4.01     Payment of Notes..................................................................43
Section 4.02     Maintenance of Office or Agency...................................................44
Section 4.03     Reports...........................................................................44
Section 4.04     Compliance Certificate............................................................45
Section 4.05     Taxes.............................................................................46
Section 4.06     Stay, Extension and Usury Laws....................................................46

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Section 4.07     Restricted Payments...............................................................46
Section 4.08     Dividend and Other Payment Restrictions Affecting Subsidiaries....................48
Section 4.09     Incurrence of Indebtedness and Issuance of Preferred Stock........................49
Section 4.10     Asset Sales.......................................................................52
Section 4.11     Transactions with Affiliates......................................................54
Section 4.12     Liens.............................................................................55
Section 4.13     Business Activities...............................................................55
Section 4.14     Corporate Existence...............................................................55
Section 4.15     Offer to Repurchase Upon Change of Control........................................55
Section 4.16     Limitation on Sale and Leaseback Transactions.....................................57
Section 4.17     Limitation on Issuances of Guarantees of Indebtedness.............................57
Section 4.18     Payments for Consent..............................................................58
Section 4.19     Existence of Corporate Co-Issuer..................................................58
Section 4.20     Designation of Restricted and Unrestricted Subsidiaries...........................58

                                              ARTICLE 5.
                                              SUCCESSORS

Section 5.01     Merger, Consolidation, or Sale of Assets..........................................59
Section 5.02     Successor Corporation Substituted.................................................60

                                              ARTICLE 6.
                                         DEFAULTS AND REMEDIES

Section 6.01     Events of Default.................................................................60
Section 6.02     Acceleration......................................................................61
Section 6.03     Other Remedies....................................................................62
Section 6.04     Waiver of Past Defaults...........................................................62
Section 6.05     Control by Majority...............................................................63
Section 6.06     Limitation on Suits...............................................................63
Section 6.07     Rights of Holders of Notes to Receive Payment.....................................63
Section 6.08     Collection Suit by Trustee........................................................63
Section 6.09     Trustee May File Proofs of Claim..................................................63
Section 6.10     Priorities........................................................................64
Section 6.11     Undertaking for Costs.............................................................64

                                              ARTICLE 7.
                                                TRUSTEE

Section 7.01     Duties of Trustee.................................................................65
Section 7.02     Rights of Trustee.................................................................66
Section 7.03     Individual Rights of Trustee......................................................66
Section 7.04     Trustee's Disclaimer..............................................................67
Section 7.05     Notice of Defaults................................................................67
Section 7.06     Reports by Trustee to Holders of the Notes........................................67
Section 7.07     Compensation and Indemnity........................................................67
Section 7.08     Replacement of Trustee............................................................68
Section 7.09     Successor Trustee by Merger, etc..................................................69
Section 7.10     Eligibility; Disqualification.....................................................69
Section 7.11     Preferential Collection of Claims Against Suburban Propane........................69

                                              ARTICLE 8.
                               LEGAL DEFEASANCE AND COVENANT DEFEASANCE

Section 8.01     Option to Effect Legal Defeasance or Covenant Defeasance..........................69

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Section 8.02     Legal Defeasance and Discharge....................................................70
Section 8.03     Covenant Defeasance...............................................................70
Section 8.04     Conditions to Legal or Covenant Defeasance........................................71
Section 8.05     Deposited Money and Government Securities to be Held in Trust;
                 Other Miscellaneous Provisions....................................................72
Section 8.06     Repayment to Suburban Propane.....................................................72
Section 8.07     Reinstatement.....................................................................73

                                              ARTICLE 9.
                                   AMENDMENT, SUPPLEMENT AND WAIVER

Section 9.01     Without Consent of Holders of Notes...............................................73
Section 9.02     With Consent of Holders of Notes..................................................74
Section 9.03     Compliance with Trust Indenture Act...............................................75
Section 9.04     Revocation and Effect of Consents.................................................75
Section 9.05     Notation on or Exchange of Notes..................................................75
Section 9.06     Trustee to Sign Amendments, etc...................................................76

                                              ARTICLE 10.
                                         SUBSIDIARY GUARANTEES

Section 10.01    Guarantee.........................................................................76
Section 10.02    Limitation on Guarantor Liability.................................................77
Section 10.03    Execution and Delivery of Subsidiary Guarantee....................................77
Section 10.04    Guarantors May Consolidate, etc., on Certain Terms................................78
Section 10.05    Releases..........................................................................78

                                              ARTICLE 11.
                                      satisfaction and discharge

Section 11.01    Satisfaction and Discharge........................................................79
Section 11.02    Application of Trust Money........................................................80

                                              ARTICLE 12.
                                             MISCELLANEOUS

Section 12.01    Trust Indenture Act Controls......................................................80
Section 12.02    Notices...........................................................................80
Section 12.03    Communication by Holders of Notes with Other Holders of Notes.....................81
Section 12.04    Certificate and Opinion as to Conditions Precedent................................82
Section 12.05    Statements Required in Certificate or Opinion.....................................82
Section 12.06    Rules by Trustee and Agents.......................................................82
Section 12.07    No Personal Liability of Limited Partners, Officers, Employees and Unitholders....82
Section 12.08    Non-Recourse......................................................................82
Section 12.09    Governing Law.....................................................................83
Section 12.10    No Adverse Interpretation of Other Agreements.....................................83
Section 12.11    Successors........................................................................83
Section 12.12    Severability......................................................................83
Section 12.13    Counterpart Originals.............................................................83
Section 12.14    Table of Contents, Headings, etc..................................................83

                                               EXHIBITS

Exhibit A1      FORM OF NOTE
Exhibit A2      FORM OF REGULATION S TEMPORARY GLOBAL NOTE

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Exhibit B       FORM OF CERTIFICATE OF TRANSFER
Exhibit C       FORM OF CERTIFICATE OF EXCHANGE
Exhibit D       FORM OF CERTIFICATE OF ACQUIRING INSTITUTIONAL ACCREDITED INVESTOR
Exhibit E       FORM OF SUBSIDIARY GUARANTEE
Exhibit F       FORM OF SUPPLEMENTAL INDENTURE
</TABLE>

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<PAGE>

         INDENTURE dated as of December 23, 2003 among Suburban Propane
Partners, L.P., a Delaware limited partnership ("Suburban Propane"), Suburban
Energy Finance Corp., a Delaware corporation ("Finance Corp." and, together with
Suburban Propane, the "Issuers") and The Bank of New York, a New York banking
corporation, as trustee (the "Trustee").

         The Issuers and the Trustee agree as follows for the benefit of each
other and for the equal and ratable benefit of the Holders (as defined) of the
6.875% Senior Notes due 2013 (the "Notes"):

                                   ARTICLE 1.
                          DEFINITIONS AND INCORPORATION
                                  BY REFERENCE

Section 1.01 Definitions.

         "144A Global Note" means a Global Note substantially in the form of
Exhibit A1 hereto bearing the Global Note Legend and the Private Placement
Legend and deposited with or on behalf of, and registered in the name of, the
Depositary or its nominee that will be issued in a denomination equal to the
outstanding principal amount of the Notes sold in reliance on Rule 144A.

         "Acquired Debt" means, with respect to any specified Person:

                  (1) Indebtedness of any other Person existing at the time such
         other Person is merged with or into or became a Subsidiary of such
         specified Person, whether or not such Indebtedness is incurred in
         connection with, or in contemplation of, such other Person merging with
         or into, or becoming a Restricted Subsidiary of, such specified Person;
         and

                  (2) Indebtedness secured by a Lien encumbering any asset
         acquired by such specified Person.

         "Additional Notes" means an unlimited aggregate principal amount of
additional Notes (other than the Initial Notes) issued under this Indenture in
accordance with Sections 2.02 and 4.09 hereof, as part of the same series as the
Initial Notes.

         "Acquisition" means the acquisition by the Operating Partnership of all
or substantially all of the assets of Agway Energy pursuant to the Asset
Purchase Agreement, dated as of November 7, 2003, by and among the Operating
Partnership and Agway Energy Products, LLC, Agway Energy Services, Inc. and
Agway Energy Services PA, Inc.

         "Affiliate" of any specified Person means any other Person directly or
indirectly controlling or controlled by or under direct or indirect common
control with such specified Person. For purposes of this definition, "control,"
as used with respect to any Person, means the possession, directly or
indirectly, of the power to direct or cause the direction of the management or
policies of such Person, whether through the ownership of voting securities, by
agreement or otherwise; provided that beneficial ownership of 10% or more of the
Voting Stock of a Person will be deemed to be control. A Person shall not be
deemed an "Affiliate" of Suburban Propane or any of its Restricted Subsidiaries
solely as a result of such Person being a joint venture partner of Suburban
Propane or any of its Restricted Subsidiaries. For purposes of this definition,
the terms "controlling," "controlled by" and "under common control with" have
correlative meanings.

         "Agent" means any Registrar, co-registrar, Paying Agent or additional
paying agent.

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         "Applicable Procedures" means, with respect to any transfer or exchange
of or for beneficial interests in any Global Note, the rules and procedures of
the Depositary, Euroclear and Clearstream that apply to such transfer or
exchange.

         "Asset Acquisition" means the following:

                  (1) an Investment by Suburban Propane or any Restricted
         Subsidiary of Suburban Propane in any other Person pursuant to which
         the Person shall become a Restricted Subsidiary of Suburban Propane, or
         shall be merged with or into Suburban Propane or any Restricted
         Subsidiary of Suburban Propane;

                  (2) the acquisition by Suburban Propane or any Restricted
         Subsidiary of Suburban Propane of the assets of any Person, other than
         a Restricted Subsidiary of Suburban Propane, which constitute all or
         substantially all of the assets of such Person; or

                  (3) the acquisition by Suburban Propane or any Restricted
         Subsidiary of Suburban Propane of any division or line of business of
         any Person, other than a Restricted Subsidiary of Suburban Propane.

         "Asset Sale" means:

                  (1) the sale, lease, conveyance or other disposition of any
         assets or rights; provided that the sale, conveyance or other
         disposition of all or substantially all of the assets of Suburban
         Propane and its Restricted Subsidiaries taken as a whole will be
         governed by the provisions of Section 4.15 hereof and/or the provisions
         of Section 5.01 hereof and not by Section 4.10 hereof; and

                  (2) the issuance of Equity Interests in any of Suburban
         Propane's Restricted Subsidiaries or the sale of Equity Interests in
         any of its Restricted Subsidiaries.

         Notwithstanding the preceding, none of the following items will be
deemed to be an Asset Sale:

                  (1) any single transaction or series of related transactions
         that involves assets having a Fair Market Value of less than $1.0
         million;

                  (2) a transfer of assets between or among Suburban Propane and
         its Restricted Subsidiaries;

                  (3) an issuance of Equity Interests by a Restricted Subsidiary
         of Suburban Propane to Suburban Propane or to a Restricted Subsidiary
         of Suburban Propane;

                  (4) the sale or lease of inventory, products, services,
         accounts receivable or other current assets in the ordinary course of
         business and any sale or other disposition of damaged, worn-out or
         obsolete assets in the ordinary course of business;

                  (5) the good faith surrender or waiver of contract rights or
         the settlement, release or surrender of claims of any kind, not to
         exceed the Fair Market Value of $5.0 million in the aggregate from the
         date of this Indenture;

                  (6) the sale or other disposition of cash or Cash Equivalents;
         and

                                       2
<PAGE>

                  (7) a Restricted Payment that does not violate section 4.07
         hereof or a Permitted Investment.

         "Attributable Debt" in respect of a sale and leaseback transaction
means, at the time of determination, the present value of the obligation of the
lessee for net rental payments during the remaining term of the lease included
in such sale and leaseback transaction including any period for which such lease
has been extended or may, at the option of the lessor, be extended. Such present
value shall be calculated using a discount rate equal to the rate of interest
implicit in such transaction, determined in accordance with GAAP; provided,
however, that if such sale and leaseback transaction results in a Capital Lease
Obligation, the amount of Indebtedness represented thereby will be determined in
accordance with the definition of "Capital Lease Obligation."

         "Available Cash" as to any quarter means:

                  (1) the sum of:

                           (a) all cash receipts of Suburban Propane during such
                  quarter from all sources other than Asset Sales (including,
                  without limitation, distributions of cash received from the
                  Operating Partnership and cash proceeds received by or
                  distributed to Suburban Propane from Interim Capital
                  Transactions, but excluding cash proceeds from Termination
                  Capital Transactions); and

                           (b) any reduction with respect to such quarter in a
                  cash reserve previously established pursuant to clause (2)(b)
                  below (either by reversal or utilization) from the level of
                  such reserve at the end of the prior quarter;

                  (2) less the sum of:

                           (a) all cash disbursements of Suburban Propane during
                  such quarter, including, without limitation, disbursements for
                  operating expenses, taxes, if any, debt service (including,
                  without limitation, the payment of principal, premium and
                  interest), redemption of Capital Stock of Suburban Propane
                  (including Common Units), capital expenditures, contributions,
                  if any, to the Operating Partnership and cash distributions to
                  partners of Suburban Propane (but only to the extent that such
                  cash distributions to partners exceed Available Cash for the
                  immediately preceding quarter); and

                           (b) any cash reserves established with respect to
                  such quarter, and any increase with respect to such quarter in
                  a cash reserve previously established pursuant to this clause
                  (2)(b) from the level of such reserve at the end of the prior
                  quarter, in such amounts as the general partner of Suburban
                  Propane determines in its reasonable discretion to be
                  necessary or appropriate (1) to provide for the proper conduct
                  of the business of Suburban Propane or the Operating
                  Partnership (including, without limitation, reserves for
                  future capital expenditures), (2) to provide funds for
                  distributions with respect to Capital Stock of Suburban
                  Propane in respect of any one or more of the next four
                  quarters or (3) because the distribution of such amounts would
                  be prohibited by applicable law or by any loan agreement,
                  security agreement, mortgage, debt instrument or other
                  agreement or obligation to which Suburban Propane is a party
                  or by which it is bound or its assets are subject;

                                       3
<PAGE>

                  (3) plus the aggregate maximum amount of working capital
         Indebtedness available to Suburban Propane or its Restricted
         Subsidiaries under Credit Facilities on the date of such Restricted
         Payment.

Notwithstanding the foregoing, "Available Cash" shall not include any cash
receipts or reductions in reserves or take into account any disbursements made
or reserves established in each case after the date of liquidation of Suburban
Propane. Taxes paid by Suburban Propane on behalf of, or amounts withheld with
respect to, all or less than all of the partners shall not be considered cash
disbursements of Suburban Propane that reduce Available Cash, but the payment or
withholding thereof shall be deemed to be a distribution of Available Cash to
the partners. Alternatively, in the discretion of the Board of Supervisors of
Suburban Propane, such taxes (if pertaining to all partners) may be considered
to be cash disbursements of Suburban Propane which reduce Available Cash, but
the payment or withholding thereof shall not be deemed to be a distribution of
Available Cash to such partners.

         "Bankruptcy Law" means Title 11, U.S. Code or any similar federal or
state law for the relief of debtors.

         "Beneficial Owner" has the meaning assigned to such term in Rule 13d-3
and Rule 13d-5 under the Exchange Act, except that in calculating the beneficial
ownership of any particular "person" (as that term is used in Section 13(d)(3)
of the Exchange Act), such "person" will be deemed to have beneficial ownership
of all securities that such "person" has the right to acquire by conversion or
exercise of other securities, whether such right is currently exercisable or is
exercisable only after the passage of time. The terms "Beneficially Owns" and
"Beneficially Owned" have a corresponding meaning.

         "Board of Supervisors" means:

                  (1) with respect to a corporation, the board of directors of
         the corporation or any committee thereof duly authorized to act on
         behalf of such board;

                  (2) with respect to a partnership, the board of directors of
         the general partner of the partnership; provided that in the case of
         Suburban Propane, it means the board of supervisors of Suburban
         Propane;

                  (3) with respect to a limited liability company, the managing
         member or members or any controlling committee of managing members
         thereof; and

                  (4) with respect to any other Person, the board or committee
         of such Person serving a similar function.

         "Borrowing Base" means, as of any date, an amount equal to:

                  (1) 85% of the face amount of all accounts receivable (net of
         reserves) owned by Suburban Propane and its Restricted Subsidiaries as
         of the end of the most recent fiscal quarter preceding such date that
         were not more than 60 days past due; plus

                  (2) 60% of the book value of all inventory (net of reserves)
         owned by Suburban Propane and its Restricted Subsidiaries as of the end
         of the most recent fiscal quarter preceding such date.

         "Broker-Dealer" has the meaning set forth in the Registration Rights
Agreement.

         "Business Day" means any day other than a Legal Holiday.

                                       4
<PAGE>

         "Capital Lease Obligation" means, at the time any determination is to
be made, the amount of the liability in respect of a capital lease that would at
that time be required to be capitalized on a balance sheet in accordance with
GAAP, and the Stated Maturity thereof shall be the date of the last payment of
rent or any other amount due under such lease prior to the first date upon which
such lease may be prepaid by the lessee without payment of a penalty.

         "Capital Stock" means:

                  (1) in the case of a corporation, corporate stock;

                  (2) in the case of an association or business entity, any and
         all shares, interests, participations, rights or other equivalents
         (however designated) of corporate stock;

                  (3) in the case of a partnership or limited liability company,
         partnership interests (whether general or limited), membership
         interests, units, incentive distribution rights or any similar equity
         right to distributions; and

                  (4) any other interest or participation that confers on a
         Person the right to receive a share of the profits and losses of, or
         distributions of assets of, the issuing Person, but excluding from all
         of the foregoing any debt securities convertible into Capital Stock,
         whether or not such debt securities include any right of participation
         with Capital Stock.

         "Cash Equivalents" means:

                  (1) United States dollars;

                  (2) securities issued or directly and fully guaranteed or
         insured by the United States government or any agency or
         instrumentality thereof (provided that the full faith and credit of the
         United States is pledged in support of those securities) having
         maturities of not more than one year from the date of acquisition;

                  (3) marketable direct obligations issued by any state of the
         United States or any political subdivision of any such state or any
         public instrumentality thereof maturing within one year from the date
         of acquisition thereof and having as at such date the highest rating
         obtainable from either S&P and its successors or Moody's and its
         successors;

                  (4) commercial paper having one of the two highest ratings
         obtainable from S&P or Moody's and in each case maturing within 270
         days after the date of creation;

                  (5) certificates of deposit maturing one year or less from the
         date of acquisition thereof issued by commercial banks incorporated
         under the laws of the United States or any state thereof or the
         District of Columbia or Canada:

                           (a) the commercial paper or other short term
                  unsecured debt obligations of which are as at such date rated
                  either "A-2" or better (or comparably if the rating system is
                  changed) by S&P or "Prime-2" or better (or comparably if the
                  rating system is changed) by Moody's; and

                           (b) the long-term debt obligations of which are, as
                  at such date, rated either "A" or better (or comparably if the
                  rating system is changed) by either S&P or Moody's (such
                  commercial banks, "Permitted Banks");

                                       5
<PAGE>

                  (6) eurodollar time deposits having a maturity of less than
         270 days from the date of acquisition thereof purchased directly from
         any Permitted Bank;

                  (7) bankers' acceptances eligible for rediscount under
         requirements of the Board of Governors of the Federal Reserve System
         and accepted by Permitted Banks;

                  (8) obligations of the type described in clauses (1) through
         (7) above purchased from a securities dealer designated as a "primary
         dealer" by the Federal Reserve Bank of New York or from a Permitted
         Bank as counterparty to a written repurchase agreement obligating such
         counterparty to repurchase such obligations not later than 14 days
         after the purchase thereof and which provides that the obligations
         which are the subject thereof are held for the benefit of Suburban
         Propane or one of its Restricted Subsidiaries by a custodian which is a
         Permitted Bank and which is not a counterparty to the repurchase
         agreement in question; and

                  (9) money market funds at least 95% of the assets of which
         constitute Cash Equivalents of the kinds described in clauses (1)
         through (8) of this definition.

         "Change of Control" means the occurrence of any of the following:

                  (1) the direct or indirect sale, transfer, conveyance or other
         disposition (other than by way of merger or consolidation), in one or a
         series of related transactions, of all or substantially all of the
         properties or assets of Suburban Propane and its Subsidiaries taken as
         a whole to any "person" (as that term is used in Section 13(d) of the
         Exchange Act) other than a Principal or a Related Party of a Principal;

                  (2) the adoption of a plan relating to the liquidation or
         dissolution of Suburban Propane or its general partner;

                  (3) the consummation of any transaction (including, without
         limitation, any merger or consolidation) the result of which is that
         any "person" (as defined above), other than the Principals and their
         Related Parties, becomes the Beneficial Owner, directly or indirectly,
         of more than 50% of the Voting Stock of the general partner of Suburban
         Propane, measured by voting power rather than number of units or
         shares;

                  (4) Suburban Energy Services Group LLC ceases to be the
         general partner of Suburban Propane;

                  (5) Suburban Propane consolidates with, or merges with or
         into, any Person (other than the Principals and their Related Parties),
         or any Person (other than the Principals and their Related Parties)
         consolidates with, or merges with or into, Suburban Propane, other than
         any such transaction where the Voting Stock of Suburban Propane
         outstanding immediately prior to such transaction constitutes, or is
         converted into or exchanged for Voting Stock (other than Disqualified
         Stock) of the surviving or transferee Person constituting, a majority
         of the outstanding shares of such Voting Stock of such surviving or
         transferee Person (immediately after giving effect to such issuance);

                  (6) the first day on which a majority of the members of the
         Board of Supervisors of Suburban Propane are not Continuing Directors;
         and

                  (7) the first day on which Suburban Propane fails to own,
         directly or indirectly, 100% of the issued and outstanding Equity
         Interests of Finance Corp.

                                       6
<PAGE>

         "Clearstream" means Clearstream Banking, S.A.

         "Commission" means the Securities and Exchange Commission.

         "Common Units" means the units representing limited partner interests
of Suburban Propane, having the rights and obligations specified with respect to
common units of Suburban Propane.

         "Consolidated Cash Flow Available for Fixed Charges" means, with
respect to Suburban Propane and its Restricted Subsidiaries for any period, the
sum of, without duplication, the following amounts for that period, taken as a
single accounting period:

                  (1) Consolidated Net Income;

                  (2) Consolidated Non-Cash Charges (to the extent Consolidated
         Net Income was reduced thereby);

                  (3) Consolidated Interest Expense (to the extent Consolidated
         Net Income was reduced thereby); and

                  (4) Consolidated Income Tax Expense (to the extent
         Consolidated Net Income was reduced thereby).

         "Consolidated Fixed Charge Coverage Ratio" means, with respect to
Suburban Propane and its Restricted Subsidiaries, the ratio of (a) the aggregate
amount of Consolidated Cash Flow Available for Fixed Charges of Suburban Propane
and its Restricted Subsidiaries for the four full fiscal quarters for which
internal financial statements are available immediately preceding the date of
the transaction (the "Transaction Date") giving rise to the need to calculate
the Consolidated Fixed Charge Coverage Ratio (the "Four Quarter Period"), to (b)
the aggregate amount of Consolidated Fixed Charges of Suburban Propane and its
Restricted Subsidiaries for the Four Quarter Period. In addition to and without
limitation of the foregoing, for purposes of this definition, "Consolidated Cash
Flow Available for Fixed Charges" and "Consolidated Fixed Charges" shall be
calculated after giving effect on a pro forma basis (in accordance with
Regulation S-X under the Securities Act) for the period of the calculation to,
without duplication:

                  (1) the incurrence or repayment of any Indebtedness,
         Disqualified Stock or Preferred Stock, excluding revolving credit
         borrowings and repayments of revolving credit borrowings (other than
         any revolving credit borrowings the proceeds of which are used for
         Asset Acquisitions or Growth Related Capital Expenditures of Suburban
         Propane or any of its Restricted Subsidiaries and in the case of any
         incurrence, the application of the net proceeds thereof) during the
         period commencing on the first day of the Four Quarter Period to and
         including the Transaction Date (the "Reference Period"), including,
         without limitation, the incurrence of the Indebtedness giving rise to
         the need to make the calculation (and the application of the net
         proceeds thereof), as if the incurrence (and application) occurred on
         the first day of the Reference Period; and

                  (2) any Asset Sales or Asset Acquisitions (including, without
         limitation, any Asset Acquisition giving rise to the need to make the
         calculation as a result of Suburban Propane or one of its Restricted
         Subsidiaries, including any Person who becomes a Restricted Subsidiary
         as a result of the Asset Acquisition, incurring, assuming or otherwise
         being liable for Acquired Debt) occurring during the Reference Period,
         as if the Asset Sale or Asset Acquisition occurred on the first day of
         the Reference Period; provided, however, that:

                                       7
<PAGE>

                           (a) any Person that is a Restricted Subsidiary on the
         Transaction Date will be deemed to have been a Restricted Subsidiary at
         all times during the Reference Period; and

                           (b) any Person that is an Unrestricted Subsidiary on
         the Transaction Date will be deemed to have been an Unrestricted
         Subsidiary at all times during the Reference Period.

         Furthermore, subject to the following paragraph, in calculating
"Consolidated Fixed Charges" for purposes of determining the "Consolidated Fixed
Charge Coverage Ratio":

                  (1) interest on outstanding Indebtedness, other than
         Indebtedness referred to in clause (2) below, determined on a
         fluctuating basis as of the Transaction Date and that will continue to
         be so determined thereafter shall be deemed to have accrued at a fixed
         rate per annum equal to the rate of interest on such Indebtedness in
         effect on that date;

                  (2) with respect to Indebtedness incurred in accordance with
         clause (1) of the definition of Permitted Debt, only actual interest
         payments associated with such Indebtedness during the Four Quarter
         Period shall be included in the calculation; and

                  (3) if interest on any Indebtedness actually incurred on the
         Transaction Date may optionally be determined at an interest rate based
         upon a factor of a prime or similar rate, a eurocurrency interbank
         offered rate, or other rates, then the interest rate in effect on the
         Transaction Date will be deemed to have been in effect during the
         period.

         "Consolidated Fixed Charges" means, with respect to Suburban Propane
and its Restricted Subsidiaries for any period, the sum, without duplication, of
the following amounts for that period, taken as a single accounting period:

                  (1) Consolidated Interest Expense; and

                  (2) the product of:

                           (a) the aggregate amount of distributions and other
         dividends or payments paid in cash (other than to Suburban Propane or
         its Restricted Subsidiaries) during the period in respect of Preferred
         Stock and Disqualified Stock of Suburban Propane and its Restricted
         Subsidiaries on a consolidated basis; and

                           (b) a fraction, the numerator of which is one and the
         denominator of which is one less the then applicable current combined
         federal, state and local statutory tax rate,expressed as a percentage.

         "Consolidated Income Tax Expense" means, with respect to Suburban
Propane and its Restricted Subsidiaries for any period, the provision for
federal, state, local and foreign income taxes of Suburban Propane and its
Restricted Subsidiaries for the period as determined on a consolidated basis in
accordance with GAAP.

         "Consolidated Interest Expense" means, for any period, the aggregate
interest expense of Suburban Propane and its Restricted Subsidiaries for that
period, determined on a consolidated basis in accordance with GAAP, including,
without limitation or duplication:

                  (1) any amortization of debt discount;

                                       8
<PAGE>

                  (2) the net cost under interest rate agreements described in
         clauses (1) and (2) of the definition of Hedging Obligations;

                  (3) the interest portion of any deferred payment obligation;

                  (4) all commissions, discounts and other fees and charges owed
         with respect to letters of credit and bankers' acceptance financing;

                  (5) all accrued interest for all instruments evidencing
         Indebtedness;

                  (6) the interest component of Capital Lease Obligations paid
         or accrued or scheduled to be paid or accrued by Suburban Propane and
         its Restricted Subsidiaries during the period;

                  (7) the consolidated interest that was capitalized during such
         period; and

                  (8) any interest accruing on Indebtedness of another Person
         that is Guaranteed by Suburban Propane or one of its Restricted
         Subsidiaries or secured by a Lien on assets of Suburban Propane or one
         of its Restricted Subsidiaries, whether or not such Guarantee or Lien
         is called upon.

         "Consolidated Net Income" means, for any period, the net income of
Suburban Propane and its Restricted Subsidiaries for that period, determined on
a consolidated basis in accordance with GAAP, and as adjusted to exclude:

                  (1) net after-tax extraordinary gains or losses;

                  (2) net after-tax gains or losses attributable to Asset Sales;

                  (3) other cash restructuring charges in an aggregate amount
         not to exceed $5.0 million in the aggregate from the date of this
         Indenture;

                  (4) all unrealized gains and losses reported under Financial
         Accounting Standards Board Statement No. 133 in connection with forward
         contracts, futures contracts or other derivatives or commodity hedging
         agreements related to a Permitted Business in accordance with Suburban
         Propane's commodity hedging policy as in effect from time to time;

                  (5) the net income or loss of any Person that is not a
         Restricted Subsidiary and which is accounted for by the equity method
         of accounting; provided, that Consolidated Net Income shall include the
         amount of dividends or distributions actually paid to Suburban Propane
         or any Restricted Subsidiary;

                  (6) the net income of any Restricted Subsidiary to the extent
         that dividends or distributions of that net income are not at the date
         of determination permitted by the terms of its charter or any judgment,
         decree, order, statute, rule or other regulation; and

                  (7) the cumulative effect of any changes in accounting
         principles.

         "Consolidated Non-Cash Charges" means, with respect to Suburban Propane
and its Restricted Subsidiaries for any period, the sum, without duplication,
of: (1) depreciation, (2) amortization, (3) non-cash employee compensation
expenses and (4) any non-cash charges resulting from write-downs of non-

                                        9
<PAGE>

current assets, in each case to the extent that the Consolidated Net Income of
Suburban Propane for that period was reduced thereby. For the avoidance of
doubt, Consolidated Non-Cash Charges will not include unrealized gains and
losses reported under Financial Accounting Standards Board Statement No. 133.

         "Continuing Directors" means, as of any date of determination, any
member of the Board of Supervisors of Suburban Propane who:

                  (1) was a member of such Board of Supervisors on the date of
         this Indenture;

                  (2) was appointed by the General Partner in accordance with
         the provisions of Suburban Propane's partnership agreement as in effect
         on the date of this Indenture; or

                  (3) was nominated for election or elected to such Board of
         Supervisors with the approval of a majority of the Continuing Directors
         who were not appointed by the General Partner and who were members of
         such Board at the time of such nomination or election.

         "Corporate Trust Office of the Trustee" will be at the address of the
Trustee specified in Section 12.02 hereof or such other address as to which the
Trustee may give notice to Suburban Propane.

         "Credit Agreement" means the Second Amended and Restated Credit
Agreement, dated as of May 8, 2003, by and among the Operating Partnership, as
borrower, the lenders referred to therein, Wachovia Bank, National Association,
as administrative agent, Fleet National Bank, as syndication agent, and The Bank
of New York, as documentation agent, as amended, restated, modified, renewed,
refunded, replaced or refinanced (including by means of sales of debt securities
to institutional investors) in whole or in part from time to time.

         "Credit Facilities" means one or more debt facilities (including,
without limitation, the Credit Agreement) or commercial paper facilities, in
each case with banks or other institutional lenders providing for revolving
credit loans, term loans, receivables financing (including through the sale of
receivables to such lenders or to special purpose entities formed to borrow from
such lenders against such receivables) or letters of credit, in each case, as
amended, restated, modified, renewed, refunded, replaced or refinanced
(including by means of sales of debt securities to institutional investors) in
whole or in part from time to time.

         "Custodian" means the Trustee, as custodian with respect to the Notes
in global form, or any successor entity thereto.

         "Default" means any event that is, or with the passage of time or the
giving of notice or both would be, an Event of Default.

         "Definitive Note" means a certificated Note registered in the name of
the Holder thereof and issued in accordance with Section 2.06 hereof,
substantially in the form of Exhibit A1 hereto except that such Note shall not
bear the Global Note Legend and shall not have the "Schedule of Exchanges of
Interests in the Global Note" attached thereto.

         "Depositary" means, with respect to the Notes issuable or issued in
whole or in part in global form, the Person specified in Section 2.03 hereof as
the Depositary with respect to the Notes, and any and all successors thereto
appointed as depositary hereunder and having become such pursuant to the
applicable provision of this Indenture.

                                       10
<PAGE>

         "Disqualified Stock" means any Capital Stock that, by its terms (or by
the terms of any security into which it is convertible, or for which it is
exchangeable, in each case at the option of the holder of the Capital Stock), or
upon the happening of any event, matures or is mandatorily redeemable, pursuant
to a sinking fund obligation or otherwise, or redeemable at the option of the
holder of the Capital Stock, in whole or in part, on or prior to the date that
is 91 days after the date on which the Notes mature. Notwithstanding the
preceding sentence, (1) any Capital Stock that would constitute Disqualified
Stock solely because the holders of the Capital Stock have the right to require
Suburban Propane to repurchase such Capital Stock upon the occurrence of a
change of control or an asset sale will not constitute Disqualified Stock if the
terms of such Capital Stock provide that Suburban Propane may not repurchase or
redeem any such Capital Stock pursuant to such provisions unless such repurchase
or redemption complies with Section 4.07 hereof and (2) any Capital Stock issued
pursuant to any plan for the benefit of one or more employees will not
constitute Disqualified Stock solely because it may be required to be
repurchased by Suburban Propane in order to satisfy applicable contractual,
statutory or regulatory obligations. The amount of Disqualified Stock deemed to
be outstanding at any time for purposes of this Indenture will be the maximum
amount that Suburban Propane and its Restricted Subsidiaries may become
obligated to pay upon the maturity of, or pursuant to any mandatory redemption
provisions of, such Disqualified Stock, exclusive of accrued dividends.

         "Domestic Subsidiary" means any Restricted Subsidiary of Suburban
Propane that was formed under the laws of the United States or any state of the
United States or the District of Columbia or that guarantees or otherwise
provides direct credit support for any Indebtedness of Suburban Propane.

         "Equity Interests" means Capital Stock and all warrants, options or
other rights to acquire Capital Stock (but excluding any debt security that is
convertible into, or exchangeable for, Capital Stock).

         "Equity Offering" means any public or private offer and sale of Common
Units of Suburban Propane.

         "Euroclear" means Euroclear Bank, S.A./N.V., as operator of the
Euroclear system.

         "Exchange Act" means the Securities Exchange Act of 1934, as amended.

         "Exchange Notes" means the Notes issued in the Exchange Offer pursuant
to Section 2.06(f) hereof.

         "Exchange Offer" has the meaning set forth in the Registration Rights
Agreement.

         "Exchange Offer Registration Statement" has the meaning set forth in
the Registration Rights Agreement.

         "Existing Indebtedness" means Indebtedness of Suburban Propane and its
Restricted Subsidiaries in existence on the date of this Indenture.

         "Fair Market Value" means the value that would be paid by a willing
buyer to an unaffiliated willing seller in a transaction not involving distress
or necessity of either party, determined in good faith by the Board of
Supervisors of Suburban Propane.

         "Finance Corp." means Suburban Energy Finance Corp., a Delaware
corporation, and any and all successors thereto.

                                       11
<PAGE>

         "GAAP" means generally accepted accounting principles set forth in the
opinions and pronouncements of the Accounting Principles Board of the American
Institute of Certified Public Accountants and statements and pronouncements of
the Financial Accounting Standards Board or in such other statements by such
other entity as have been approved by a significant segment of the accounting
profession, which are in effect from time to time.

         "General Partner" means Suburban Energy Services Group LLC, a Delaware
limited liability company, as the general partner of Suburban Propane.

         "Global Note Legend" means the legend set forth in Section 2.06(g)(2),
which is required to be placed on all Global Notes issued under this Indenture.

         "Global Notes" means, individually and collectively, each of the
Restricted Global Notes and the Unrestricted Global Notes deposited with or on
behalf of and registered in the name of the Depository or its nominee,
substantially in the form of Exhibit A1 hereto and that bears the Global Note
Legend and that has the "Schedule of Exchanges of Interests in the Global Note"
attached thereto, issued in accordance with Section 2.01, 2.06(b)(3),
2.06(b)(4), 2.06(d)(2) or 2.06(f) hereof.

         "Government Securities" means direct obligations of, or obligations
guaranteed by, the United States of America (including any agency or
instrumentality thereof) for the payment of which obligations or guarantees the
full faith and credit of the United States of America is pledged and which are
not callable or redeemable at the issuer's option.

         "Growth Related Capital Expenditures" means, with respect to any
Person, all capital expenditures by such Person made to improve or enhance the
existing capital assets or to increase the customer base of such Person or to
acquire or construct new capital assets (but excluding capital expenditures made
to maintain, up to the level thereof that existed at the time of such
expenditure, the operating capacity of the capital assets of such Person as such
assets existed at the time of such expenditure).

         "Guarantee" means a guarantee other than by endorsement of negotiable
instruments for collection in the ordinary course of business, direct or
indirect, in any manner including, without limitation, by way of a pledge of
assets or through letters of credit or reimbursement agreements in respect
thereof, of all or any part of any Indebtedness (whether arising by virtue of
partnership arrangements, or by agreements to keep-well, to purchase assets,
goods, securities or services, to take or pay or to maintain financial statement
conditions or otherwise).

         "Guarantor" means any Subsidiary that executes a Subsidiary Guarantee
in accordance with the provisions of this Indenture and its successors and
assigns.

         "Hedging Obligations" means, with respect to any specified Person, the
obligations of such Person under:

                  (1) interest rate swap agreements (whether from fixed to
         floating or from floating to fixed), interest rate cap agreements and
         interest rate collar agreements;

                  (2) other agreements or arrangements designed to manage
         interest rates or interest rate risk; and

                  (3) other agreements or arrangements designed to protect such
         Person against fluctuations in currency exchange rates or commodity
         prices.

                                       12
<PAGE>

         "Holder" means a Person in whose name a Note is registered.

         "Indebtedness" means, with respect to any specified Person, any
indebtedness of such Person (excluding accrued expenses and trade payables),
whether or not contingent:

                  (1) in respect of borrowed money;

                  (2) evidenced by bonds, notes, debentures or similar
         instruments or letters of credit (or reimbursement agreements in
         respect thereof);

                  (3) in respect of banker's acceptances;

                  (4) representing Capital Lease Obligations or Attributable
         Debt in respect of sale and leaseback transactions;

                  (5) representing the balance deferred and unpaid of the
         purchase price of any property, except any such balance that
         constitutes an accrued expense or trade payable in the ordinary course
         of business; or

                  (6) representing any Hedging Obligations,

if and to the extent any of the preceding items (other than letters of credit,
Attributable Debt and Hedging Obligations) would appear as a liability upon a
balance sheet of the specified Person prepared in accordance with GAAP. In
addition, the term "Indebtedness" includes all Indebtedness of others secured by
a Lien on any asset of the specified Person (whether or not such Indebtedness is
assumed by the specified Person) and, to the extent not otherwise included, the
Guarantee by the specified Person of any Indebtedness of any other Person.

         "Indenture" means this Indenture, as amended or supplemented from time
to time.

         "Indirect Participant" means a Person who holds a beneficial interest
in a Global Note through a Participant.

         "Initial Notes" means the first $175.0 million aggregate principal
amount of Notes issued under this Indenture on the date hereof.

         "Initial Purchasers" means Wachovia Capital Markets, LLC and Goldman,
Sachs & Co.

         "Interim Capital Transactions" means (1) borrowings, refinancings or
refundings of Indebtedness and sales of debt securities (other than for working
capital purposes and other than for items purchased on open account in the
ordinary course of business) by Suburban Propane or the Operating Partnership
and (2) sales of Capital Stock of Suburban Propane by Suburban Propane or the
Operating Partnership, in each case prior to the commencement of the dissolution
and liquidation of Suburban Propane.

         "Investments" means, with respect to any Person, all direct or indirect
investments by such Person in other Persons (including Affiliates) in the forms
of loans (including Guarantees or other obligations but excluding Guarantees
permitted to be incurred pursuant to Section 4.09(b)(9) hereof, advances or
capital contributions (excluding commission, travel and similar advances to
officers and employees made in the ordinary course of business), purchases or
other acquisitions for consideration of Indebtedness, Equity Interests or other
securities, together with all items that are or would be classified as
investments on a balance sheet prepared in accordance with GAAP. If Suburban
Propane or any Restricted Subsidiary of

                                       13
<PAGE>

Suburban Propane sells or otherwise disposes of any Equity Interests of any
direct or indirect Restricted Subsidiary of Suburban Propane such that, after
giving effect to any such sale or disposition, such Person is no longer a
Restricted Subsidiary of Suburban Propane, Suburban Propane will be deemed to
have made an Investment on the date of any such sale or disposition equal to the
Fair Market Value of Suburban Propane's Investments in such Restricted
Subsidiary that were not sold or disposed of in an amount determined as provided
in the final paragraph of Section 4.07(b) hereof. The acquisition by Suburban
Propane or any Restricted Subsidiary of Suburban Propane of a Person that holds
an Investment in a third Person will be deemed to be an Investment by Suburban
Propane or such Restricted Subsidiary in such third Person in an amount equal to
the Fair Market Value of the Investments held by the acquired Person in such
third Person in an amount determined as provided in the final paragraph of
Section 4.07(b) hereof. Except as otherwise provided in this Indenture, the
amount of an Investment will be determined at the time the Investment is made
and without giving effect to subsequent changes in value.

         "Issuers" means Suburban Propane and Finance Corp.

         "Legal Holiday" means a Saturday, a Sunday or a day on which banking
institutions in the City of New York or at a place of payment are authorized by
law, regulation or executive order to remain closed. If a payment date is a
Legal Holiday at a place of payment, payment may be made at that place on the
next succeeding day that is not a Legal Holiday, and no interest shall accrue on
such payment for the intervening period.

         "Letter of Transmittal" means the letter of transmittal to be prepared
by Suburban Propane and sent to all Holders of the Notes for use by such Holders
in connection with the Exchange Offer.

         "Lien" means, with respect to any asset, any mortgage, lien, pledge,
charge, security interest or encumbrance of any kind in respect of such asset,
whether or not filed, recorded or otherwise perfected under applicable law,
including any conditional sale or other title retention agreement, any lease in
the nature thereof, any option or other agreement to sell or give a security
interest in and any filing of or agreement to give any financing statement under
the Uniform Commercial Code (or equivalent statutes) of any jurisdiction.

         "Liquidated Damages" means all liquidated damages then owing pursuant
to the Registration Rights Agreement.

         "Moody's" means Moody's Investors Service, Inc.

         "Net Proceeds" means the aggregate cash proceeds received by Suburban
Propane or any of its Restricted Subsidiaries in respect of any Asset Sale
(including, without limitation, any cash received upon the sale or other
disposition of any non-cash consideration received in any Asset Sale), net of
the direct costs relating to such Asset Sale, including, without limitation,
legal, accounting and investment banking fees, and sales commissions, and any
relocation expenses incurred as a result of the Asset Sale, taxes paid or
payable as a result of the Asset Sale, in each case, after taking into account
any available tax credits or deductions and any tax sharing arrangements,
amounts required to be applied to the repayment of Indebtedness secured by a
Lien on such asset or assets and any reserve for adjustment in respect of the
sale price of such asset or assets established in accordance with GAAP.

         "Non-Recourse Debt" means Indebtedness:

                  (1) as to which neither Suburban Propane nor any of its
         Restricted Subsidiaries (a) provides credit support of any kind
         (including any undertaking, agreement or instrument that

                                       14
<PAGE>

         would constitute Indebtedness), (b) is directly or indirectly liable as
         a guarantor or otherwise, or (c) constitutes the lender;

                  (2) no default with respect to which (including any rights
         that the holders of the Indebtedness may have to take enforcement
         action against an Unrestricted Subsidiary) would permit upon notice,
         lapse of time or both any holder of any other Indebtedness of Suburban
         Propane or any of its Restricted Subsidiaries to declare a default on
         such other Indebtedness or cause the payment of the Indebtedness to be
         accelerated or payable prior to its Stated Maturity; and

                  (3) as to which the lenders have been notified in writing that
         they will not have any recourse to the stock or assets of Suburban
         Propane or any of its Restricted Subsidiaries.

         "Non-U.S. Person" means a Person who is not a U.S. Person.

         "Notes" has the meaning assigned to it in the preamble to this
Indenture. The Initial Notes and the Additional Notes shall be treated as a
single class for all purposes under this Indenture, and unless the context
otherwise requires, all references to the Notes shall include the Initial Notes
and any Additional Notes.

         "Obligations" means any principal, interest, penalties, fees,
indemnifications, reimbursements, damages and other liabilities payable under
the documentation governing any Indebtedness.

         "Officer" means, with respect to any Person, the Chairman of the Board,
the Chief Executive Officer, the President, the Chief Operating Officer, the
Chief Financial Officer, the Treasurer, any Assistant Treasurer, the Controller,
the Secretary or any Vice-President of such Person.

         "Officers' Certificate" means a certificate signed on behalf of
Suburban Propane by two Officers of Suburban Propane, one of whom must be the
principal executive officer, the principal financial officer, the treasurer or
the principal accounting officer of Suburban Propane, that meets the
requirements of Section 12.05 hereof.

         "Operating Partnership" means Suburban Propane, L.P., a Delaware
limited partnership and a direct Subsidiary of Suburban Propane.

         "Opinion of Counsel" means an opinion from legal counsel that meets the
requirements of Section 12.05 hereof. The counsel may be an employee of or
counsel to Suburban Propane or any Subsidiary of Suburban Propane.

         "Participant" means, with respect to the Depositary, Euroclear or
Clearstream, a Person who has an account with the Depositary, Euroclear or
Clearstream, respectively (and, with respect to DTC, shall include Euroclear and
Clearstream).

         "Permitted Business" means any business that is the same as or related,
ancillary or complementary to any of the businesses of Suburban Propane or any
of its Restricted Subsidiaries as conducted as of the date of this Indenture,
after giving effect to the Acquisition.

         "Permitted Investments" means:

                  (1) any Investment in Suburban Propane or in a Restricted
         Subsidiary of Suburban Propane;

                                       15
<PAGE>

                  (2) any Investment in Cash Equivalents;

                  (3) any Investment by Suburban Propane or any Restricted
         Subsidiary of Suburban Propane in a Person, if as a result of such
         Investment:

                           (a) such Person becomes a Restricted Subsidiary of
         Suburban Propane; or

                           (b) such Person is merged, consolidated or
         amalgamated with or into, or transfers or conveys substantially all of
         its assets to, or is liquidated into, Suburban Propane or a Restricted
         Subsidiary of Suburban Propane;

                  (4) any Investment made as a result of the receipt of non-cash
         consideration from an Asset Sale that was made pursuant to and in
         compliance with Section 4.10 hereof;

                  (5) any acquisition of assets or Capital Stock to the extent
         made in exchange for the issuance of Equity Interests (other than
         Disqualified Stock) of Suburban Propane;

                  (6) any Investments received in compromise or resolution of
         (A) obligations of trade creditors or customers that were incurred in
         the ordinary course of business of Suburban Propane or any of its
         Restricted Subsidiaries, including pursuant to any plan of
         reorganization or similar arrangement upon the bankruptcy or insolvency
         of any trade creditor or customer; or (B) litigation, arbitration or
         other disputes;

                  (7) Investments represented by Hedging Obligations;

                  (8) loans or advances to employees made in the ordinary course
         of business of Suburban Propane or a Restricted Subsidiary of Suburban
         Propane in an aggregate principal amount not to exceed $1.0 million at
         any one time outstanding;

                  (9) repurchases of the Notes; and

                  (10) other Investments in any Person having an aggregate Fair
         Market Value (measured on the date each such Investment was made and
         without giving effect to subsequent changes in value), when taken
         together with all other Investments made pursuant to this clause (10)
         that are at the time outstanding, not to exceed $10.0 million.

         "Permitted Liens" means:

                  (1) Liens on assets of Suburban Propane securing Indebtedness
         and other Obligations under Credit Facilities and Existing Indebtedness
         that was permitted by the terms of this Indenture to be incurred and/or
         securing Hedging Obligations related thereto;

                  (2) Liens in favor of the Issuers;

                  (3) Liens on property of a Person existing at the time such
         Person is merged with or into or consolidated with Suburban Propane;
         provided that such Liens were in existence prior to the contemplation
         of such merger or consolidation and do not extend to any assets other
         than those of the Person merged into or consolidated with Suburban
         Propane;

                                       16
<PAGE>

                  (4) Liens on property (including Capital Stock) existing at
         the time of acquisition of the property by Suburban Propane; provided
         that such Liens were in existence prior to, such acquisition, and not
         incurred in contemplation of, such acquisition;

                  (5) Liens to secure Indebtedness permitted to be incurred
         pursuant to Section 4.09(b)(11) hereof;

                  (6) Liens to secure Indebtedness (including Capital Lease
         Obligations) permitted by Section 4.09(b)(4) hereof covering only the
         assets acquired with or financed by such Indebtedness;

                  (7) Liens existing on the date of this Indenture;

                  (8) Liens for taxes, assessments or governmental charges or
         claims that are not yet delinquent or that are being contested in good
         faith by appropriate proceedings promptly instituted and diligently
         concluded; provided that any reserve or other appropriate provision as
         is required in conformity with GAAP has been made therefor;

                  (9) Liens imposed by law, such as carriers', warehousemen's,
         landlord's and mechanics' Liens, in each case, incurred in the ordinary
         course of business;

                  (10) survey exceptions, easements or reservations of, or
         rights of others for, licenses, rights-of-way, sewers, electric lines,
         telegraph and telephone lines and other similar purposes, or zoning or
         other restrictions as to the use of real property that were not
         incurred in connection with Indebtedness and that do not in the
         aggregate materially adversely affect the value of said properties or
         materially impair their use in the operation of the business of such
         Person;

                  (11) Liens created for the benefit of (or to secure) the
         Notes;

                  (12) Liens to secure any Permitted Refinancing Indebtedness
         permitted to be incurred under this Indenture; provided, however, that:

                           (a) the new Lien shall be limited to all or part of
         the same property and assets that secured or, under the written
         agreements pursuant to which the original Lien arose, could secure the
         original Lien (plus improvements and accessions to, such property or
         proceeds or distributions thereof); and

                           (b) the Indebtedness secured by the new Lien is not
         increased to any amount greater than the sum of (1) the outstanding
         principal amount or, if greater, committed amount, of the Permitted
         Refinancing Indebtedness and (2) an amount necessary to pay any fees
         and expenses, including premiums, related to such refinancings,
         refunding, extension, renewal or replacement; and

                  (13) Liens incurred in the ordinary course of business of
         Suburban Propane with respect to obligations that do not exceed $5.0
         million at any one time outstanding.

         "Permitted Refinancing Indebtedness" means any Indebtedness of Suburban
Propane or any of its Restricted Subsidiaries issued in exchange for, or the net
proceeds of which are used to refund, refinance, replace, defease or discharge
other Indebtedness of Suburban Propane or any of its Restricted Subsidiaries;
provided that:

                                       17
<PAGE>

                  (1) the principal amount (or accreted value, if applicable) of
         such Permitted Refinancing Indebtedness does not exceed the principal
         amount (or accreted value, if applicable) of the Indebtedness extended,
         refinanced, renewed, replaced, defeased or refunded (plus all accrued
         interest on the Indebtedness and the amount of all fees, expenses and
         premiums incurred in connection therewith);

                  (2) such Permitted Refinancing Indebtedness has a final
         maturity date later than the final maturity date of, and has a Weighted
         Average Life to Maturity equal to or greater than the Weighted Average
         Life to Maturity of, the Indebtedness being extended, refinanced,
         renewed, replaced, defeased or refunded;

                  (3) if the Indebtedness being extended, refinanced, renewed,
         replaced, defeased or refunded is subordinated in right of payment to
         the Notes, such Permitted Refinancing Indebtedness has a final maturity
         date later than the final maturity date of, and is subordinated in
         right of payment to, the Notes on terms at least as favorable to the
         Holders of Notes as those contained in the documentation governing the
         Indebtedness being extended, refinanced, renewed, replaced, defeased or
         refunded; and

                  (4) such Indebtedness is incurred either by the Issuers or by
         the Restricted Subsidiary that is the obligor on the Indebtedness being
         extended, refinanced, renewed, replaced, defeased or refunded.

         "Person" means any individual, corporation, partnership, joint venture,
association, joint-stock company, trust, unincorporated organization, limited
liability company or government or other entity.

         "Preferred Stock" as applied to the Capital Stock of any Person, means
Capital Stock of any class or classes, however designated, that is preferred as
to the payment of distributions or dividends, or as to the distribution of
assets upon any voluntary or involuntary liquidation or dissolution of such
Person, over shares of Capital Stock of any other class of such Person.

         "Principals" means the Persons owning the Capital Stock of the General
Partner as of the date of this Indenture.

         "Private Placement Legend" means the legend set forth in Section
2.06(g)(1) to be placed on all Notes issued under this Indenture except where
otherwise permitted by the provisions of this Indenture.

         "QIB" means a "qualified institutional buyer" as defined in Rule 144A.

         "Registration Rights Agreement" means the Registration Rights
Agreement, dated as of December 23, 2003, among the Issuers and the Initial
Purchasers, as such agreement may be amended, modified or supplemented from time
to time and, with respect to any Additional Notes, one or more registration
rights agreements among the Issuers and the other parties thereto, as such
agreement(s) may be amended, modified or supplemented from time to time,
relating to rights given by the Issuers to the purchasers of Additional Notes to
register such Additional Notes under the Securities Act.

         "Regulation S" means Regulation S promulgated under the Securities Act.

         "Regulation S Global Note" means a Regulation S Temporary Global Note
or Regulation S Permanent Global Note, as appropriate.

                                       18
<PAGE>

         "Regulation S Permanent Global Note" means a permanent Global Note in
the form of Exhibit A1 hereto bearing the Global Note Legend and the Private
Placement Legend and deposited with or on behalf of and registered in the name
of the Depositary or its nominee, issued in a denomination equal to the
outstanding principal amount of the Regulation S Temporary Global Note upon
expiration of the Restricted Period.

         "Regulation S Temporary Global Note" means a temporary Global Note in
the form of Exhibit A2 hereto deposited with or on behalf of and registered in
the name of the Depositary or its nominee, issued in a denomination equal to the
outstanding principal amount of the Notes initially sold in reliance on Rule 903
of Regulation S.

         "Related Party" means:

                  (1) any controlling stockholder, 80% (or more) owned
         Subsidiary, or immediate family member (in the case of an individual)
         of any Principal; or

                  (2) any trust, corporation, partnership or other entity, the
         beneficiaries, stockholders, partners, owners or Persons beneficially
         holding an 80% or more controlling interest of which consist of any one
         or more Principals and/or such other Persons referred to in the
         immediately preceding clause (1).

         "Responsible Officer," when used with respect to the Trustee, means any
officer within the Corporate Trust Administration of the Trustee (or any
successor group of the Trustee) or any other officer of the Trustee customarily
performing functions similar to those performed by any of the above designated
officers and who shall have direct responsibility for the administration of this
Indenture and also means, with respect to a particular corporate trust matter,
any other officer to whom such matter is referred because of his knowledge of
and familiarity with the particular subject.

         "Restricted Definitive Note" means a Definitive Note bearing the
Private Placement Legend.

         "Restricted Global Note" means a Global Note bearing the Private
Placement Legend.

         "Restricted Investment" means an Investment other than a Permitted
Investment.

         "Restricted Period" means the 40-day distribution compliance period as
defined in Regulation S.

         "Restricted Subsidiary" of a Person means any Subsidiary of the
referent Person that is not an Unrestricted Subsidiary.

         "Rule 144" means Rule 144 promulgated under the Securities Act.

         "Rule 144A" means Rule 144A promulgated under the Securities Act.

         "Rule 903" means Rule 903 promulgated under the Securities Act.

         "Rule 904" means Rule 904 promulgated under the Securities Act.

         "S&P" means Standard & Poor's Ratings Group.

         "Securities Act" means the Securities Act of 1933, as amended.

                                       19
<PAGE>

         "Shelf Registration Statement" means the Shelf Registration Statement
as defined in the Registration Rights Agreement

         "Significant Subsidiary" means any Subsidiary that would be a
"significant subsidiary" as defined in Article 1, Rule 1-02 of Regulation S-X,
promulgated pursuant to the Securities Act, as such Regulation is in effect on
the date of this Indenture.

         "Stated Maturity" means, with respect to any installment of interest or
principal on any series of Indebtedness, the date on which the payment of
interest or principal was scheduled to be paid in the documentation governing
such Indebtedness as of the date of this Indenture, and will not include any
contingent obligations to repay, redeem or repurchase any such interest or
principal prior to the date originally scheduled for the payment thereof.

         "Subsidiary" means, with respect to any specified Person:

                  (1) any corporation, association or other business entity of
         which more than 50% of the total voting power of shares of Capital
         Stock entitled (without regard to the occurrence of any contingency and
         after giving effect to any voting agreement or stockholders' agreement
         that effectively transfers voting power) to vote in the election of
         directors, managers or trustees of the corporation, association or
         other business entity is at the time owned or controlled, directly or
         indirectly, by that Person or one or more of the other Subsidiaries of
         that Person (or a combination thereof); and

                  (2) any partnership (a) the sole general partner or the
         managing general partner of which is such Person or a Subsidiary of
         such Person or (b) the only general partners of which are that Person
         or one or more Subsidiaries of that Person (or any combination
         thereof).

         "Subsidiary Guarantee" means the Guarantee by each Guarantor of
Suburban Propane's obligations under this Indenture and on the Notes, executed
pursuant to the provisions of this Indenture.

         "Suburban Propane" means Suburban Propane Partners, L.P., a Delaware
limited partnership, and any and all successors thereto.

         "Termination Capital Transactions" means any sale, transfer or other
disposition of property of Suburban Propane or the Operating Partnership
occurring upon or incident to the liquidation and winding up of Suburban Propane
and the Operating Partnership.

         "TIA" means the Trust Indenture Act of 1939 (15 U.S.C.ss.ss.
77aaa-77bbbb) as in effect on the date on which this Indenture is qualified
thereunder.

         "Trustee" means the party named as such in the preamble to this
Indenture until a successor replaces it in accordance with the applicable
provisions of this Indenture and thereafter means the successor serving
hereunder.

         "Unrestricted Global Note" means a Global Note that does not bear and
is not required to bear the Private Placement Legend.

         "Unrestricted Definitive Note" means a Definitive Note that does not
bear and is not required to bear the Private Placement Legend.

                                       20
<PAGE>

         "Unrestricted Subsidiary" means any Subsidiary of Suburban Propane
((other than Finance Corp., the Operating Partnership or any successor to any of
them) that is designated by the Board of Supervisors as an Unrestricted
Subsidiary pursuant to a Board Resolution, but only to the extent that such
Subsidiary:

                  (1) has no Indebtedness other than Non-Recourse Debt;

                  (2) except as permitted by Section 4.11 hereof, is not party
         to any agreement, contract, arrangement or understanding with Suburban
         Propane or any Restricted Subsidiary of Suburban Propane unless the
         terms of any such agreement, contract, arrangement or understanding are
         no less favorable to Suburban Propane or such Restricted Subsidiary
         than those that might be obtained at the time from Persons who are not
         Affiliates of Suburban Propane;

                  (3) is a Person with respect to which neither Suburban Propane
         nor any of its Restricted Subsidiaries has any direct or indirect
         obligation (a) to subscribe for additional Equity Interests or (b) to
         maintain or preserve such Person's financial condition or to cause such
         Person to achieve any specified levels of operating results; and

                  (4) has not guaranteed or otherwise directly or indirectly
         provided credit support for any Indebtedness of Suburban Propane or any
         of its Restricted Subsidiaries.

         "U.S. Person" means a U.S. Person as defined in Rule 902(k) promulgated
under the Securities Act.

         "Voting Stock" of any Person as of any date means the Capital Stock of
such Person that is at the time entitled to vote in the election of the Board of
Supervisors of such Person.

         "Weighted Average Life to Maturity" means, when applied to any
Indebtedness at any date, the number of years obtained by dividing:

                  (1) the sum of the products obtained by multiplying (a) the
         amount of each then remaining installment, sinking fund, serial
         maturity or other required payments of principal, including payment at
         final maturity, in respect of the Indebtedness, by (b) the number of
         years (calculated to the nearest one-twelfth) that will elapse between
         such date and the making of such payment; by

                  (2) the then outstanding principal amount of such
         Indebtedness.

Section 1.02 Other Definitions.

                                                                 Defined in
        Term                                                       Section
        ----                                                       -------
        "Affiliate Transaction"...............................      4.11
        "Asset Sale Offer"....................................      3.10
        "Authentication Order"................................      2.02
        "Change of Control Offer".............................      4.15
        "Change of Control Payment"...........................      4.15
        "Change of Control Payment Date"......................      4.15
        "Covenant Defeasance".................................      8.03
        "DTC".................................................      2.03

                                       21
<PAGE>

                                                                 Defined in
        Term                                                       Section
        ----                                                       -------
        "Event of Default"....................................      6.01
        "Excess Proceeds".....................................      4.10
        "incur"...............................................      4.09
        "Legal Defeasance"....................................      8.02
        "Offer Amount"........................................      3.10
        "Offer Period"........................................      3.10
        "Paying Agent"........................................      2.03
        "Permitted Debt"......................................      4.09
        "Purchase Date".......................................      3.10
        "Registrar"...........................................      2.03
        "Restricted Payments".................................      4.07

Section 1.03 Incorporation by Reference of Trust Indenture Act.

         Whenever this Indenture refers to a provision of the TIA, the provision
is incorporated by reference in and made a part of this Indenture.

         The following TIA terms used in this Indenture have the following
meanings:

         "indenture securities" means the Notes;

         "indenture security Holder" means a Holder of a Note;

         "indenture to be qualified" means this Indenture;

         "indenture trustee" or "institutional trustee" means the Trustee; and

         "obligor" on the Notes and the Subsidiary Guarantees means the Issuers
and the Guarantors, respectively, and any successor obligor upon the Notes and
the Subsidiary Guarantees, respectively.

         All other terms used in this Indenture that are defined by the TIA,
defined by TIA reference to another statute or defined by Commission rule under
the TIA have the meanings so assigned to them.

Section 1.04 Rules of Construction.

         Unless the context otherwise requires:

                  (1) a term has the meaning assigned to it;

                  (2) an accounting term not otherwise defined has the meaning
         assigned to it in accordance with GAAP;

                  (3) "or" is not exclusive;

                  (4) words in the singular include the plural, and in the
         plural include the singular;

                  (5) "will" shall be interpreted to express a command;

                                       22
<PAGE>

                  (6) provisions apply to successive events and transactions;
         and

                  (7) references to sections of or rules under the Securities
         Act will be deemed to include substitute, replacement of successor
         sections or rules adopted by the Commission from time to time.

                                   ARTICLE 2.
                                    THE NOTES

Section 2.01 Form and Dating.

         (a) General. The Notes and the Trustee's certificate of authentication
will be substantially in the form of Exhibit A hereto. The Notes may have
notations, legends or endorsements required by law, stock exchange rule or
usage. Each Note will be dated the date of its authentication. The Notes shall
be in denominations of $1,000 and integral multiples thereof.

         The terms and provisions contained in the Notes will constitute, and
are hereby expressly made, a part of this Indenture and the Issuers and the
Trustee, by their execution and delivery of this Indenture, expressly agree to
such terms and provisions and to be bound thereby. However, to the extent any
provision of any Note conflicts with the express provisions of this Indenture,
the provisions of this Indenture shall govern and be controlling.

         (b) Global Notes. Notes issued in global form will be substantially in
the form of Exhibits A1 or A2 attached hereto (including the Global Note Legend
thereon and the "Schedule of Exchanges of Interests in the Global Note" attached
thereto). Notes issued in definitive form will be substantially in the form of
Exhibit A1 attached hereto (but without the Global Note Legend thereon and
without the "Schedule of Exchanges of Interests in the Global Note" attached
thereto). Each Global Note will represent such of the outstanding Notes as will
be specified therein and each shall provide that it represents the aggregate
principal amount of outstanding Notes from time to time endorsed thereon and
that the aggregate principal amount of outstanding Notes represented thereby may
from time to time be reduced or increased, as appropriate, to reflect exchanges
and redemptions. Any endorsement of a Global Note to reflect the amount of any
increase or decrease in the aggregate principal amount of outstanding Notes
represented thereby will be made by the Trustee or the Custodian, at the
direction of the Trustee, in accordance with instructions given by the Holder
thereof as required by Section 2.06 hereof.

         (c) Temporary Global Notes. Notes offered and sold in reliance on
Regulation S will be issued initially in the form of the Regulation S Temporary
Global Note, which will be deposited on behalf of the purchasers of the Notes
represented thereby with the Trustee, at its New York office, as custodian for
the Depositary, and registered in the name of the Depositary or the nominee of
the Depositary for the accounts of designated agents holding on behalf of
Euroclear or Clearstream, duly executed by the Issuers and authenticated by the
Trustee as hereinafter provided. The Restricted Period will be terminated upon
the receipt by the Trustee of:

                  (1) a written certificate from the Depositary, together with
         copies of certificates from Euroclear and Clearstream certifying that
         they have received certification of non-United States beneficial
         ownership of 100% of the aggregate principal amount of the Regulation S
         Temporary Global Note (except to the extent of any beneficial owners
         thereof who acquired an interest therein during the Restricted Period
         pursuant to another exemption from registration under the Securities
         Act and who will take delivery of a beneficial ownership interest in a
         144A Global Note bearing a Private Placement Legend, all as
         contemplated by Section 2.06(b) hereof); and

                                       23
<PAGE>

                  (2) an Officers' Certificate from Suburban Propane.

         Following the termination of the Restricted Period, beneficial
interests in the Regulation S Temporary Global Note will be exchanged for
beneficial interests in Regulation S Permanent Global Note pursuant to the
Applicable Procedures. Simultaneously with the authentication of Regulation S
Permanent Global Note, the Trustee will cancel the Regulation S Temporary Global
Note. The aggregate principal amount of the Regulation S Temporary Global Note
and the Regulation S Permanent Global Note may from time to time be increased or
decreased by adjustments made on the records of the Trustee and the Depositary
or its nominee, as the case may be, in connection with transfers of interest as
hereinafter provided.

                  (3) Euroclear and Clearstream Procedures Applicable. The
         provisions of the "Operating Procedures of the Euroclear System" and
         "Terms and Conditions Governing Use of Euroclear" and the "General
         Terms and Conditions of Clearstream Banking" and "Customer Handbook" of
         Clearstream will be applicable to transfers of beneficial interests in
         the Regulation S Temporary Global Note and the Regulation S Permanent
         Global Note that are held by Participants through Euroclear or
         Clearsteam.

Section 2.02 Execution and Authentication.

         At least one Officer must sign the Notes for each of the Issuers by
manual or facsimile signature.

         If an Officer whose signature is on a Note no longer holds that office
at the time a Note is authenticated, the Note will nevertheless be valid.

         A Note will not be valid until authenticated by the manual signature of
the Trustee. The signature will be conclusive evidence that the Note has been
authenticated under this Indenture.

         The Trustee will, upon receipt of a written order of the Issuers signed
by two Officers of each of the Issuers (an "Authentication Order"), authenticate
Notes for original issue up to the aggregate principal amount stated in
paragraph 4 of the Notes. The aggregate principal amount of Notes outstanding at
any time may not exceed such amount except as provided in Section 2.07 hereof.

         The Trustee may appoint an authenticating agent acceptable to the
Issuers to authenticate Notes. An authenticating agent may authenticate Notes
whenever the Trustee may do so. Each reference in this Indenture to
authentication by the Trustee includes authentication by such agent. An
authenticating agent has the same rights as an Agent to deal with Holders or an
Affiliate of the Issuers.

Section 2.03 Registrar and Paying Agent.

         Suburban Propane will maintain an office or agency where Notes may be
presented for registration of transfer or for exchange ("Registrar") and an
office or agency where Notes may be presented for payment ("Paying Agent"). The
Registrar will keep a register of the Notes and of their transfer and exchange.
Suburban Propane may appoint one or more co-registrars and one or more
additional paying agents. The term "Registrar" includes any co-registrar and the
term "Paying Agent" includes any additional paying agent. Suburban Propane may
change any Paying Agent or Registrar without notice to any Holder. Suburban
Propane will notify the Trustee in writing of the name and address of any Agent
not a party to this Indenture. If Suburban Propane fails to appoint or maintain
another entity as Registrar or Paying Agent, the Trustee shall act as such.
Suburban Propane or any of its Subsidiaries may act as Paying Agent or
Registrar.

                                       24
<PAGE>

         Suburban Propane initially appoints The Depository Trust Company
("DTC") to act as Depositary with respect to the Global Notes.

         Suburban Propane initially appoints the Trustee to act as the Registrar
and Paying Agent and to act as Custodian with respect to the Global Notes.

Section 2.04 Paying Agent to Hold Money in Trust.

         Suburban Propane will require each Paying Agent other than the Trustee
to agree in writing that the Paying Agent will hold in trust for the benefit of
Holders or the Trustee all money held by the Paying Agent for the payment of
principal, premium or Liquidated Damages, if any, or interest on the Notes, and
will notify the Trustee of any default by Suburban Propane in making any such
payment. While any such default continues, the Trustee may require a Paying
Agent to pay all money held by it to the Trustee. Suburban Propane at any time
may require a Paying Agent to pay all money held by it to the Trustee. Upon
payment over to the Trustee, the Paying Agent (if other than Suburban Propane or
a Subsidiary) will have no further liability for the money. If Suburban Propane
or a Subsidiary acts as Paying Agent, it will segregate and hold in a separate
trust fund for the benefit of the Holders all money held by it as Paying Agent.
Upon any bankruptcy or reorganization proceedings relating to Suburban Propane,
the Trustee will serve as Paying Agent for the Notes.

Section 2.05 Holder Lists.

         The Trustee will preserve in as current a form as is reasonably
practicable the most recent list available to it of the names and addresses of
all Holders and shall otherwise comply with TIA ss. 312(a). If the Trustee is
not the Registrar, Suburban Propane will furnish to the Trustee at least seven
Business Days before each interest payment date and at such other times as the
Trustee may request in writing, a list in such form and as of such date as the
Trustee may reasonably require of the names and addresses of the Holders of
Notes and Suburban Propane shall otherwise comply with TIA ss. 312(a).

Section 2.06 Transfer and Exchange.

         (a) Transfer and Exchange of Global Notes. A Global Note may not be
transferred as a whole except by the Depositary to a nominee of the Depositary,
by a nominee of the Depositary to the Depositary or to another nominee of the
Depositary, or by the Depositary or any such nominee to a successor Depositary
or a nominee of such successor Depositary. All Global Notes will be exchanged by
Suburban Propane for Definitive Notes if:

                  (1) Suburban Propane delivers to the Trustee notice from the
         Depositary that it is unwilling or unable to continue to act as
         Depositary or that it is no longer a clearing agency registered under
         the Exchange Act and, in either case, a successor Depositary is not
         appointed by Suburban Propane within 120 days after the date of such
         notice from the Depositary; or

                  (2) Suburban Propane in its sole discretion determines that
         the Global Notes (in whole but not in part) should be exchanged for
         Definitive Notes and delivers a written notice to such effect to the
         Trustee; provided that in no event shall the Regulation S Temporary
         Global Note be exchanged by Suburban Propane for Definitive Notes prior
         to (x) the expiration of the Restricted Period and (y) the receipt by
         the Registrar of any certificates required pursuant to Rule
         903(b)(3)(ii)(B) under the Securities Act.

         Upon the occurrence of either of the preceding events in (1) or (2)
above, Definitive Notes shall be issued in such names as the Depositary shall
instruct the Trustee. Global Notes also may be exchanged

                                       25
<PAGE>

or replaced, in whole or in part, as provided in Sections 2.07 and 2.10 hereof.
Every Note authenticated and delivered in exchange for, or in lieu of, a Global
Note or any portion thereof, pursuant to this Section 2.06 or Section 2.07 or
2.10 hereof, shall be authenticated and delivered in the form of, and shall be,
a Global Note. A Global Note may not be exchanged for another Note other than as
provided in this Section 2.06(a), however, beneficial interests in a Global Note
may be transferred and exchanged as provided in Section 2.06(b), (c) or (f)
hereof.

         (b) Transfer and Exchange of Beneficial Interests in the Global Notes.
The transfer and exchange of beneficial interests in the Global Notes will be
effected through the Depositary, in accordance with the provisions of this
Indenture and the Applicable Procedures. Beneficial interests in the Restricted
Global Notes will be subject to restrictions on transfer comparable to those set
forth herein to the extent required by the Securities Act. Transfers of
beneficial interests in the Global Notes also will require compliance with
either subparagraph (1) or (2) below, as applicable, as well as one or more of
the other following subparagraphs, as applicable:

                  (1) Transfer of Beneficial Interests in the Same Global Note.
         Beneficial interests in any Restricted Global Note may be transferred
         to Persons who take delivery thereof in the form of a beneficial
         interest in the same Restricted Global Note in accordance with the
         transfer restrictions set forth in the Private Placement Legend;
         provided, however, that prior to the expiration of the Restricted
         Period, transfers of beneficial interests in the Regulation S Temporary
         Global Note may not be made to a U.S. Person or for the account or
         benefit of a U.S. Person (other than an Initial Purchaser). Beneficial
         interests in any Unrestricted Global Note may be transferred to Persons
         who take delivery thereof in the form of a beneficial interest in an
         Unrestricted Global Note. No written orders or instructions shall be
         required to be delivered to the Registrar to effect the transfers
         described in this Section 2.06(b)(1).

                  (2) All Other Transfers and Exchanges of Beneficial Interests
         in Global Notes. In connection with all transfers and exchanges of
         beneficial interests that are not subject to Section 2.06(b)(1) above,
         the transferor of such beneficial interest must deliver to the
         Registrar either:

                           (A) both:

                                    (i) a written order from a Participant or an
                           Indirect Participant given to the Depositary in
                           accordance with the Applicable Procedures directing
                           the Depositary to credit or cause to be credited a
                           beneficial interest in another Global Note in an
                           amount equal to the beneficial interest to be
                           transferred or exchanged; and

                                    (ii) instructions given in accordance with
                           the Applicable Procedures containing information
                           regarding the Participant account to be credited with
                           such increase; or

                           (B) both:

                                    (i) a written order from a Participant or an
                           Indirect Participant given to the Depositary in
                           accordance with the Applicable Procedures directing
                           the Depositary to cause to be issued a Definitive
                           Note in an amount equal to the beneficial interest to
                           be transferred or exchanged; and

                                    (ii) instructions given by the Depositary to
                           the Registrar containing information regarding the
                           Person in whose name such Definitive Note shall be

                                       26
<PAGE>

                           registered to effect the transfer or exchange
                           referred to in (1) above; provided that in no event
                           shall Definitive Notes be issued upon the transfer or
                           exchange of beneficial interests in the Regulation S
                           Temporary Global Note prior to (A) the expiration of
                           the Restricted Period and (B) the receipt by the
                           Registrar of any certificates required pursuant to
                           Rule 903 under the Securities Act. Upon consummation
                           of an Exchange Offer by the Issuers in accordance
                           with Section 2.06(f) hereof, the requirements of this
                           Section 2.06(b)(2) shall be deemed to have been
                           satisfied upon receipt by the Registrar of the
                           instructions contained in the Letter of Transmittal
                           delivered by the Holder of such beneficial interests
                           in the Restricted Global Notes. Upon satisfaction of
                           all of the requirements for transfer or exchange of
                           beneficial interests in Global Notes contained in
                           this Indenture and the Notes or otherwise applicable
                           under the Securities Act, the Trustee shall adjust
                           the principal amount of the relevant Global Note(s)
                           pursuant to Section 2.06(h) hereof.

                  (3) Transfer of Beneficial Interests to Another Restricted
         Global Note. A beneficial interest in any Restricted Global Note may be
         transferred to a Person who takes delivery thereof in the form of a
         beneficial interest in another Restricted Global Note if the transfer
         complies with the requirements of Section 2.06(b)(2) above and the
         Registrar receives the following:

                           (A) if the transferee will take delivery in the form
                  of a beneficial interest in the 144A Global Note, then the
                  transferor must deliver a certificate in the form of Exhibit B
                  hereto, including the certifications in item (1) thereof; and

                           (B) if the transferee will take delivery in the form
                  of a beneficial interest in the Regulation S Temporary Global
                  Note or the Regulation S Global Note, then the transferor must
                  deliver a certificate in the form of Exhibit B hereto,
                  including the certifications in item (2) thereof.

                  (4) Transfer and Exchange of Beneficial Interests in a
         Restricted Global Note for Beneficial Interests in an Unrestricted
         Global Note. A beneficial interest in any Restricted Global Note may be
         exchanged by any holder thereof for a beneficial interest in an
         Unrestricted Global Note or transferred to a Person who takes delivery
         thereof in the form of a beneficial interest in an Unrestricted Global
         Note if the exchange or transfer complies with the requirements of
         Section 2.06(b)(2) above and:

                           (A) such exchange or transfer is effected pursuant to
                  the Exchange Offer in accordance with the Registration Rights
                  Agreement and the holder of the beneficial interest to be
                  transferred, in the case of an exchange, or the transferee, in
                  the case of a transfer, certifies in the applicable Letter of
                  Transmittal that it is not (i) a Broker-Dealer, (ii) a Person
                  participating in the distribution of the Exchange Notes or
                  (iii) a Person who is an affiliate (as defined in Rule 144) of
                  Suburban Propane;

                           (B) such transfer is effected pursuant to the Shelf
                  Registration Statement in accordance with the Registration
                  Rights Agreement;

                           (C) such transfer is effected by a Broker-Dealer
                  pursuant to the Exchange Offer Registration Statement in
                  accordance with the Registration Rights Agreement; or

                           (D) the Registrar receives the following:

                                       27
<PAGE>

                                    (i) if the holder of such beneficial
                           interest in a Restricted Global Note proposes to
                           exchange such beneficial interest for a beneficial
                           interest in an Unrestricted Global Note, a
                           certificate from such holder in the form of Exhibit C
                           hereto, including the certifications in item (1)(a)
                           thereof; or

                                    (ii) if the holder of such beneficial
                           interest in a Restricted Global Note proposes to
                           transfer such beneficial interest to a Person who
                           shall take delivery thereof in the form of a
                           beneficial interest in an Unrestricted Global Note, a
                           certificate from such holder in the form of Exhibit B
                           hereto, including the certifications in item (4)
                           thereof;

                  and, in each such case set forth in this subparagraph (D), if
                  the Registrar so requests or if the Applicable Procedures so
                  require, an Opinion of Counsel in form reasonably acceptable
                  to the Registrar to the effect that such exchange or transfer
                  is in compliance with the Securities Act and that the
                  restrictions on transfer contained herein and in the Private
                  Placement Legend are no longer required in order to maintain
                  compliance with the Securities Act.

         If any such transfer is effected pursuant to subparagraph (B) or (D)
above at a time when an Unrestricted Global Note has not yet been issued, the
Issuers shall issue and, upon receipt of an Authentication Order in accordance
with Section 2.02 hereof, the Trustee shall authenticate one or more
Unrestricted Global Notes in an aggregate principal amount equal to the
aggregate principal amount of beneficial interests transferred pursuant to
subparagraph (B) or (D) above.

         Beneficial interests in an Unrestricted Global Note cannot be exchanged
for, or transferred to Persons who take delivery thereof in the form of, a
beneficial interest in a Restricted Global Note.

         (c) Transfer or Exchange of Beneficial Interests for Definitive Notes.

                  (1) Beneficial Interests in Restricted Global Notes to
         Restricted Definitive Notes. If any holder of a beneficial interest in
         a Restricted Global Note proposes to exchange such beneficial interest
         for a Restricted Definitive Note or to transfer such beneficial
         interest to a Person who takes delivery thereof in the form of a
         Restricted Definitive Note, then, upon receipt by the Registrar of the
         following documentation:

                           (A) if the holder of such beneficial interest in a
                  Restricted Global Note proposes to exchange such beneficial
                  interest for a Restricted Definitive Note, a certificate from
                  such holder in the form of Exhibit C hereto, including the
                  certifications in item (2)(a) thereof;

                           (B) if such beneficial interest is being transferred
                  to a QIB in accordance with Rule 144A, a certificate to the
                  effect set forth in Exhibit B hereto, including the
                  certifications in item (1) thereof;

                           (C) if such beneficial interest is being transferred
                  to a Non-U.S. Person in an offshore transaction in accordance
                  with Rule 903 or Rule 904, a certificate to the effect set
                  forth in Exhibit B hereto, including the certifications in
                  item (2) thereof;

                           (D) if such beneficial interest is being transferred
                  pursuant to an exemption from the registration requirements of
                  the Securities Act in accordance with Rule 144, a

                                       28
<PAGE>

                  certificate to the effect set forth in Exhibit B hereto,
                  including the certifications in item (3)(a) thereof;

                           (E) if such beneficial interest is being transferred
                  to Suburban Propane or any of its Subsidiaries, a certificate
                  to the effect set forth in Exhibit B hereto, including the
                  certifications in item (3)(b) thereof; or

                  (2) if such beneficial interest is being transferred pursuant
         to an effective registration statement under the Securities Act, a
         certificate to the effect set forth in Exhibit B hereto, including the
         certifications in item (3)(c) thereof,

the Trustee shall cause the aggregate principal amount of the applicable Global
Note to be reduced accordingly pursuant to Section 2.06(h) hereof, and the
Issuers shall execute and the Trustee shall authenticate and deliver to the
Person designated in the instructions a Definitive Note in the appropriate
principal amount. Any Definitive Note issued in exchange for a beneficial
interest in a Restricted Global Note pursuant to this Section 2.06(c) shall be
registered in such name or names and in such authorized denomination or
denominations as the holder of such beneficial interest shall instruct the
Registrar through instructions from the Depositary and the Participant or
Indirect Participant. The Trustee shall deliver such Definitive Notes to the
Persons in whose names such Notes are so registered. Any Definitive Note issued
in exchange for a beneficial interest in a Restricted Global Note pursuant to
this Section 2.06(c)(1) shall bear the Private Placement Legend and shall be
subject to all restrictions on transfer contained therein.

                           (2) Beneficial Interests in Regulation S Temporary
                  Global Note to Definitive Notes. Notwithstanding Sections
                  2.06(c)(1)(A) and (C) hereof, a beneficial interest in the
                  Regulation S Temporary Global Note may not be exchanged for a
                  Definitive Note or transferred to a Person who takes delivery
                  thereof in the form of a Definitive Note prior to (A) the
                  expiration of the Restricted Period and (B) the receipt by the
                  Registrar of any certificates required pursuant to Rule
                  903(b)(3)(ii)(B) under the Securities Act, except in the case
                  of a transfer pursuant to an exemption from the registration
                  requirements of the Securities Act other than Rule 903 or Rule
                  904.

                  (3) Beneficial Interests in Restricted Global Notes to
         Unrestricted Definitive Notes. A holder of a beneficial interest in a
         Restricted Global Note may exchange such beneficial interest for an
         Unrestricted Definitive Note or may transfer such beneficial interest
         to a Person who takes delivery thereof in the form of an Unrestricted
         Definitive Note only if:

                           (A) such exchange or transfer is effected pursuant to
                  the Exchange Offer in accordance with the Registration Rights
                  Agreement and the holder of such beneficial interest, in the
                  case of an exchange, or the transferee, in the case of a
                  transfer, certifies in the applicable Letter of Transmittal
                  that it is not (i) a Broker-Dealer, (ii) a Person
                  participating in the distribution of the Exchange Notes or
                  (iii) a Person who is an affiliate (as defined in Rule 144) of
                  Suburban Propane;

                           (B) such transfer is effected pursuant to the Shelf
                  Registration Statement in accordance with the Registration
                  Rights Agreement;

                           (C) such transfer is effected by a Broker-Dealer
                  pursuant to the Exchange Offer Registration Statement in
                  accordance with the Registration Rights Agreement; or

                           (D) the Registrar receives the following:

                                       29
<PAGE>

                                    (i) if the holder of such beneficial
                           interest in a Restricted Global Note proposes to
                           exchange such beneficial interest for an Unrestricted
                           Definitive Note, a certificate from such holder in
                           the form of Exhibit C hereto, including the
                           certifications in item (1)(b) thereof; or

                                    (ii) if the holder of such beneficial
                           interest in a Restricted Global Note proposes to
                           transfer such beneficial interest to a Person who
                           shall take delivery thereof in the form of an
                           Unrestricted Definitive Note, a certificate from such
                           holder in the form of Exhibit B hereto, including the
                           certifications in item (4) thereof;

                  and, in each such case set forth in this subparagraph (D), if
                  the Registrar so requests or if the Applicable Procedures so
                  require, an Opinion of Counsel in form reasonably acceptable
                  to the Registrar to the effect that such exchange or transfer
                  is in compliance with the Securities Act and that the
                  restrictions on transfer contained herein and in the Private
                  Placement Legend are no longer required in order to maintain
                  compliance with the Securities Act.

                  (4) Beneficial Interests in Unrestricted Global Notes to
         Unrestricted Definitive Notes. If any holder of a beneficial interest
         in an Unrestricted Global Note proposes to exchange such beneficial
         interest for a Definitive Note or to transfer such beneficial interest
         to a Person who takes delivery thereof in the form of a Definitive
         Note, then, upon satisfaction of the conditions set forth in Section
         2.06(b)(2) hereof, the Trustee will cause the aggregate principal
         amount of the applicable Global Note to be reduced accordingly pursuant
         to Section 2.06(h) hereof, and the Issuers will execute and the Trustee
         will authenticate and deliver to the Person designated in the
         instructions a Definitive Note in the appropriate principal amount. Any
         Definitive Note issued in exchange for a beneficial interest pursuant
         to this Section 2.06(c)(4) will be registered in such name or names and
         in such authorized denomination or denominations as the holder of such
         beneficial interest requests through instructions to the Registrar from
         or through the Depositary and the Participant or Indirect Participant.
         The Trustee will deliver such Definitive Notes to the Persons in whose
         names such Notes are so registered. Any Definitive Note issued in
         exchange for a beneficial interest pursuant to this Section 2.06(c)(4)
         will not bear the Private Placement Legend.

         (d) Transfer and Exchange of Definitive Notes for Beneficial Interests.

                  (1) Restricted Definitive Notes to Beneficial Interests in
         Restricted Global Notes. If any Holder of a Restricted Definitive Note
         proposes to exchange such Note for a beneficial interest in a
         Restricted Global Note or to transfer such Restricted Definitive Notes
         to a Person who takes delivery thereof in the form of a beneficial
         interest in a Restricted Global Note, then, upon receipt by the
         Registrar of the following documentation:

                           (A) if the Holder of such Restricted Definitive Note
                  proposes to exchange such Note for a beneficial interest in a
                  Restricted Global Note, a certificate from such Holder in the
                  form of Exhibit C hereto, including the certifications in item
                  (2)(b) thereof;

                           (B) if such Restricted Definitive Note is being
                  transferred to a QIB in accordance with Rule 144A, a
                  certificate to the effect set forth in Exhibit B hereto,
                  including the certifications in item (1) thereof;

                                       30
<PAGE>

                           (C) if such Restricted Definitive Note is being
                  transferred to a Non-U.S. Person in an offshore transaction in
                  accordance with Rule 903 or Rule 904, a certificate to the
                  effect set forth in Exhibit B hereto, including the
                  certifications in item (2) thereof;

                           (D) if such Restricted Definitive Note is being
                  transferred pursuant to an exemption from the registration
                  requirements of the Securities Act in accordance with Rule
                  144, a certificate to the effect set forth in Exhibit B
                  hereto, including the certifications in item (3)(a) thereof;

                           (E) if such Restricted Definitive Note is being
                  transferred to Suburban Propane or any of its Subsidiaries, a
                  certificate to the effect set forth in Exhibit B hereto,
                  including the certifications in item (3)(b) thereof; or

                           (F) if such Restricted Definitive Note is being
                  transferred pursuant to an effective registration statement
                  under the Securities Act, a certificate to the effect set
                  forth in Exhibit B hereto, including the certifications in
                  item (3)(c) thereof,

                  the Trustee will cancel the Restricted Definitive Note,
                  increase or cause to be increased the aggregate principal
                  amount of, in the case of clause (A) above, the appropriate
                  Restricted Global Note, in the case of clause (B) above, the
                  144A Global Note, in the case of clause (C) above, the
                  Regulation S Global Note.

                  (2) Restricted Definitive Notes to Beneficial Interests in
         Unrestricted Global Notes. A Holder of a Restricted Definitive Note may
         exchange such Note for a beneficial interest in an Unrestricted Global
         Note or transfer such Restricted Definitive Note to a Person who takes
         delivery thereof in the form of a beneficial interest in an
         Unrestricted Global Note only if:

                           (A) such exchange or transfer is effected pursuant to
                  the Exchange Offer in accordance with the Registration Rights
                  Agreement and the Holder, in the case of an exchange, or the
                  transferee, in the case of a transfer, certifies in the
                  applicable Letter of Transmittal that it is not (i) a
                  Broker-Dealer, (ii) a Person participating in the distribution
                  of the Exchange Notes or (iii) a Person who is an affiliate
                  (as defined in Rule 144) of Suburban Propane;

                           (B) such transfer is effected pursuant to the Shelf
                  Registration Statement in accordance with the Registration
                  Rights Agreement;

                           (C) such transfer is effected by a Broker-Dealer
                  pursuant to the Exchange Offer Registration Statement in
                  accordance with the Registration Rights Agreement; or

                           (D) the Registrar receives the following:

                                    (i) if the Holder of such Definitive Notes
                           proposes to exchange such Notes for a beneficial
                           interest in the Unrestricted Global Note, a
                           certificate from such Holder in the form of Exhibit C
                           hereto, including the certifications in item (1)(c)
                           thereof; or

                                    (ii) if the Holder of such Definitive Notes
                           proposes to transfer such Notes to a Person who shall
                           take delivery thereof in the form of a beneficial
                           interest in the Unrestricted Global Note, a
                           certificate from such Holder in the form of Exhibit B
                           hereto, including the certifications in item (4)
                           thereof;

                                       31
<PAGE>

                  and, in each such case set forth in this subparagraph (D), if
                  the Registrar so requests or if the Applicable Procedures so
                  require, an Opinion of Counsel in form reasonably acceptable
                  to the Registrar to the effect that such exchange or transfer
                  is in compliance with the Securities Act and that the
                  restrictions on transfer contained herein and in the Private
                  Placement Legend are no longer required in order to maintain
                  compliance with the Securities Act.

                  Upon satisfaction of the conditions of any of the
         subparagraphs in this Section 2.06(d)(2), the Trustee will cancel the
         Definitive Notes and increase or cause to be increased the aggregate
         principal amount of the Unrestricted Global Note.

                  (3) Unrestricted Definitive Notes to Beneficial Interests in
         Unrestricted Global Notes. A Holder of an Unrestricted Definitive Note
         may exchange such Note for a beneficial interest in an Unrestricted
         Global Note or transfer such Definitive Notes to a Person who takes
         delivery thereof in the form of a beneficial interest in an
         Unrestricted Global Note at any time. Upon receipt of a request for
         such an exchange or transfer, the Trustee will cancel the applicable
         Unrestricted Definitive Note and increase or cause to be increased the
         aggregate principal amount of one of the Unrestricted Global Notes.

                  If any such exchange or transfer from a Definitive Note to a
         beneficial interest is effected pursuant to subparagraphs (2)(B),
         (2)(D) or (3) above at a time when an Unrestricted Global Note has not
         yet been issued, the Issuers will issue and, upon receipt of an
         Authentication Order in accordance with Section 2.02 hereof, the
         Trustee will authenticate one or more Unrestricted Global Notes in an
         aggregate principal amount equal to the principal amount of Definitive
         Notes so transferred.

         (e) Transfer and Exchange of Definitive Notes for Definitive Notes.
Upon request by a Holder of Definitive Notes and such Holder's compliance with
the provisions of this Section 2.06(e), the Registrar will register the transfer
or exchange of Definitive Notes. Prior to such registration of transfer or
exchange, the requesting Holder must present or surrender to the Registrar the
Definitive Notes duly endorsed or accompanied by a written instruction of
transfer in form satisfactory to the Registrar duly executed by such Holder or
by its attorney, duly authorized in writing. In addition, the requesting Holder
must provide any additional certifications, documents and information, as
applicable, required pursuant to the following provisions of this Section
2.06(e).

                  (1) Restricted Definitive Notes to Restricted Definitive
         Notes. Any Restricted Definitive Note may be transferred to and
         registered in the name of Persons who take delivery thereof in the form
         of a Restricted Definitive Note if the Registrar receives the
         following:

                           (A) if the transfer will be made pursuant to Rule
                  144A, then the transferor must deliver a certificate in the
                  form of Exhibit B hereto, including the certifications in item
                  (1) thereof;

                           (B) if the transfer will be made pursuant to Rule 903
                  or Rule 904, then the transferor must deliver a certificate in
                  the form of Exhibit B hereto, including the certifications in
                  item (2) thereof; and

                           (C) if the transfer will be made pursuant to any
                  other exemption from the registration requirements of the
                  Securities Act, then the transferor must deliver a certificate
                  in the form of Exhibit B hereto, including the certifications,
                  certificates and Opinion of Counsel required by item (3)
                  thereof, if applicable.

                                       32
<PAGE>

                  (2) Restricted Definitive Notes to Unrestricted Definitive
         Notes. Any Restricted Definitive Note may be exchanged by the Holder
         thereof for an Unrestricted Definitive Note or transferred to a Person
         or Persons who take delivery thereof in the form of an Unrestricted
         Definitive Note if:

                           (A) such exchange or transfer is effected pursuant to
                  the Exchange Offer in accordance with the Registration Rights
                  Agreement and the Holder, in the case of an exchange, or the
                  transferee, in the case of a transfer, certifies in the
                  applicable Letter of Transmittal that it is not (i) a
                  broker-dealer, (ii) a Person participating in the distribution
                  of the Exchange Notes or (iii) a Person who is an affiliate
                  (as defined in Rule 144) of Suburban Propane;

                           (B) any such transfer is effected pursuant to the
                  Shelf Registration Statement in accordance with the
                  Registration Rights Agreement;

                           (C) any such transfer is effected by a Broker-Dealer
                  pursuant to the Exchange Offer Registration Statement in
                  accordance with the Registration Rights Agreement; or

                           (D) the Registrar receives the following:

                                    (i) if the Holder of such Restricted
                           Definitive Notes proposes to exchange such Notes for
                           an Unrestricted Definitive Note, a certificate from
                           such Holder in the form of Exhibit C hereto,
                           including the certifications in item (1)(d) thereof;
                           or

                                    (ii) if the Holder of such Restricted
                           Definitive Notes proposes to transfer such Notes to a
                           Person who shall take delivery thereof in the form of
                           an Unrestricted Definitive Note, a certificate from
                           such Holder in the form of Exhibit B hereto,
                           including the certifications in item (4) thereof;

                  and, in each such case set forth in this subparagraph (D), if
                  the Registrar so requests, an Opinion of Counsel in form
                  reasonably acceptable to the Registrar to the effect that such
                  exchange or transfer is in compliance with the Securities Act
                  and that the restrictions on transfer contained herein and in
                  the Private Placement Legend are no longer required in order
                  to maintain compliance with the Securities Act.

                  (3) Unrestricted Definitive Notes to Unrestricted Definitive
         Notes. A Holder of Unrestricted Definitive Notes may transfer such
         Notes to a Person who takes delivery thereof in the form of an
         Unrestricted Definitive Note. Upon receipt of a request to register
         such a transfer, the Registrar shall register the Unrestricted
         Definitive Notes pursuant to the instructions from the Holder thereof.

         (f) Exchange Offer. Upon the occurrence of the Exchange Offer in
accordance with the Registration Rights Agreement, the Issuers will issue and,
upon receipt of an Authentication Order in accordance with Section 2.02 hereof,
the Trustee will authenticate:

                  (1) one or more Unrestricted Global Notes in an aggregate
         principal amount equal to the principal amount of the beneficial
         interests in the Restricted Global Notes accepted for exchange in the
         Exchange Offer

                                       33
<PAGE>

         by Persons that certify in the applicable Letters of Transmittal that
         (A) they are not Broker-Dealers, (B) they are not participating in a
         distribution of the Exchange Notes and (z) they are not affiliates (as
         defined in Rule 144) of Suburban Propane; and

                  (2) Unrestricted Definitive Notes in an aggregate principal
         amount equal to the principal amount of the Restricted Definitive Notes
         accepted for exchange in the Exchange Offer.

         Concurrently with the issuance of such Notes, the Trustee will cause
the aggregate principal amount of the applicable Restricted Global Notes to be
reduced accordingly, and the Issuers will execute and the Trustee will
authenticate and deliver to the Persons designated by the Holders of Definitive
Notes so accepted Unrestricted Definitive Notes in the appropriate principal
amount.

         (g) Legends. The following legends will appear on the face of all
Global Notes and Definitive Notes issued under this Indenture unless
specifically stated otherwise in the applicable provisions of this Indenture.

                  (1) Private Placement Legend.

                           (A) Except as permitted by subparagraph (B) below,
                  each Global Note and each Definitive Note (and all Notes
                  issued in exchange therefor or substitution thereof) shall
                  bear the legend in substantially the following form:

"THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933, AS
AMENDED (THE "SECURITIES ACT"), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD
WITHIN THE UNITED STATES OR TO, OR FOR THE ACCOUNT OR BENEFIT OF, U.S. PERSONS,
EXCEPT AS SET FORTH BELOW. BY ITS ACQUISITION HEREOF, THE HOLDER (1) REPRESENTS
THAT (A) IT IS A "QUALIFIED INSTITUTIONAL BUYER" (AS DEFINED IN RULE 144A UNDER
THE SECURITIES ACT), OR (B) IT IS NOT A U.S. PERSON AND IS ACQUIRING THIS
SECURITY IN AN OFFSHORE TRANSACTION IN COMPLIANCE WITH RULE 904 UNDER THE
SECURITIES ACT; (2) AGREES THAT IT WILL NOT WITHIN TWO YEARS AFTER THE ORIGINAL
ISSUANCE OF THIS SECURITY RESELL OR OTHERWISE TRANSFER THIS SECURITY EXCEPT (A)
TO THE ISSUERS OR ANY SUBSIDIARY THEREOF, (B) INSIDE THE UNITED STATES TO A
QUALIFIED INSTITUTIONAL BUYER IN COMPLIANCE WITH RULE 144A UNDER THE SECURITIES
ACT, (C) TO AN INSTITUTIONAL "ACCREDITED INVESTOR" (AS DEFINED IN RULE
501(a)(1), (2), (3) OR (7) UNDER THE SECURITIES ACT (AN "ACCREDITED INVESTOR")),
(D) OUTSIDE THE UNITED STATES IN AN OFFSHORE TRANSACTION IN COMPLIANCE WITH RULE
904 UNDER THE SECURITIES ACT, (E) PURSUANT TO THE EXEMPTION FROM REGISTRATION
PROVIDED BY RULE 144 UNDER THE SECURITIES ACT (IF AVAILABLE), OR (F) PURSUANT TO
AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT (AND BASED UPON AN
OPINION OF COUNSEL IF THE ISSUERS SO REQUEST) AND (3) AGREES THAT IT WILL GIVE
TO EACH PERSON TO WHOM THIS SECURITY IS TRANSFERRED A NOTICE SUBSTANTIALLY TO
THE EFFECT OF THIS LEGEND. IN CONNECTION WITH ANY TRANSFER OF THIS SECURITY
WITHIN TWO YEARS AFTER THE ORIGINAL ISSUANCE DATE, IF THE PROPOSED TRANSFEREE IS
AN ACCREDITED INVESTOR, THE HOLDER MUST, PRIOR TO SUCH TRANSFER, FURNISH TO THE
TRUSTEE OR THE ISSUERS SUCH CERTIFICATIONS, IF LESS THAN $100,000, AND LEGAL
OPINIONS AS ANY OF THEM MAY REASONABLY REQUIRE TO CONFIRM THAT SUCH TRANSFER IS
BEING MADE PURSUANT TO AN EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO,
THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT. AS USED HEREIN, THE TERMS
"OFFSHORE TRANSACTION," "UNITED STATES" AND "U.S. PERSON" HAVE THE MEANING GIVEN
TO

                                       34
<PAGE>

THEM BY REGULATION S UNDER THE SECURITIES ACT. THE INDENTURE CONTAINS A
PROVISION REQUIRING THE TRUSTEE TO REFUSE TO REGISTER ANY TRANSFER OF THIS
SECURITY IN VIOLATION OF THE FOREGOING RESTRICTIONS."

                           (B) Notwithstanding the foregoing, any Global Note or
                  Definitive Note issued pursuant to subparagraphs (b)(4),
                  (c)(3), (c)(4), (d)(2), (d)(3), (e)(2), (e)(3) or (f) of this
                  Section 2.06 (and all Notes issued in exchange therefor or
                  substitution thereof) will not bear the Private Placement
                  Legend.

                  (2) Global Note Legend. Each Global Note will bear a legend in
         substantially the following form:

"THIS GLOBAL NOTE IS HELD BY THE DEPOSITARY (AS DEFINED IN THE INDENTURE
GOVERNING THIS NOTE) OR ITS NOMINEE IN CUSTODY FOR THE BENEFIT OF THE BENEFICIAL
OWNERS HEREOF, AND IS NOT TRANSFERABLE TO ANY PERSON UNDER ANY CIRCUMSTANCES
EXCEPT THAT (1) THE TRUSTEE MAY MAKE SUCH NOTATIONS HEREON AS MAY BE REQUIRED
PURSUANT TO SECTION 2.06 OF THE INDENTURE, (2) THIS GLOBAL NOTE MAY BE EXCHANGED
IN WHOLE BUT NOT IN PART PURSUANT TO SECTION 2.06(a) OF THE INDENTURE, (3) THIS
GLOBAL NOTE MAY BE DELIVERED TO THE TRUSTEE FOR CANCELLATION PURSUANT TO SECTION
2.11 OF THE INDENTURE AND (4) THIS GLOBAL NOTE MAY BE TRANSFERRED TO A SUCCESSOR
DEPOSITARY WITH THE PRIOR WRITTEN CONSENT OF SUBURBAN PROPANE.

UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR NOTES IN DEFINITIVE
FORM, THIS NOTE MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITARY TO A
NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR
ANOTHER NOMINEE OF THE DEPOSITARY OR BY THE DEPOSITARY OR ANY SUCH NOMINEE TO A
SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY. UNLESS THIS
CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
COMPANY (55 WATER STREET, NEW YORK, NEW YORK) ("DTC"), TO SUBURBAN PROPANE OR
ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE
ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS MAY BE
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO
CEDE & CO. OR SUCH OTHER ENTITY AS MAY BE REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN."

                  (3) Regulation S Temporary Global Note Legend.

"THE RIGHTS ATTACHING TO THIS REGULATION S TEMPORARY GLOBAL NOTE, AND THE
CONDITIONS AND PROCEDURES GOVERNING ITS EXCHANGE FOR CERTIFICATES NOTES, ARE AS
SPECIFIED IN THE INDENTURE (AS DEFINED HEREIN). NEITHER THE HOLDER NOR THE
BENEFICIAL OWNERS OF THIS REGULATION S TEMPORARY GLOBAL NOTE SHALL BE ENTITLED
TO RECEIVE PAYMENT OF INTEREST HEREON."

         (h) Cancellation and/or Adjustment of Global Notes. At such time as all
beneficial interests in a particular Global Note have been exchanged for
Definitive Notes or a particular Global Note has been redeemed, repurchased or
canceled in whole and not in part, each such Global Note will be returned to or
retained and canceled by the Trustee in accordance with Section 2.11 hereof. At
any time prior to such

                                       35
<PAGE>

cancellation, if any beneficial interest in a Global Note is exchanged for or
transferred to a Person who will take delivery thereof in the form of a
beneficial interest in another Global Note or for Definitive Notes, the
principal amount of Notes represented by such Global Note will be reduced
accordingly and an endorsement will be made on such Global Note by the Trustee
or by the Depositary at the direction of the Trustee to reflect such reduction;
and if the beneficial interest is being exchanged for or transferred to a Person
who will take delivery thereof in the form of a beneficial interest in another
Global Note, such other Global Note will be increased accordingly and an
endorsement will be made on such Global Note by the Trustee or by the Depositary
at the direction of the Trustee to reflect such increase.

         (i) General Provisions Relating to Transfers and Exchanges.

                  (1) To permit registrations of transfers and exchanges, the
         Issuers will execute and the Trustee will authenticate Global Notes and
         Definitive Notes upon receipt of an Authentication Order in accordance
         with Section 2.02 or at the Registrar's request.

                  (2) No service charge will be made to a Holder of a beneficial
         interest in a Global Note or to a Holder of a Definitive Note for any
         registration of transfer or exchange, but Suburban Propane may require
         payment of a sum sufficient to cover any transfer tax or similar
         governmental charge payable in connection therewith (other than any
         such transfer taxes or similar governmental charge payable upon
         exchange or transfer pursuant to Sections 2.10, 3.06, 3.10, 4.10, 4.15
         and 9.05 hereof).

                  (3) The Registrar will not be required to register the
         transfer of or exchange of any Note selected for redemption in whole or
         in part, except the unredeemed portion of any Note being redeemed in
         part.

                  (4) All Global Notes and Definitive Notes issued upon any
         registration of transfer or exchange of Global Notes or Definitive
         Notes will be the valid obligations of the Issuers, evidencing the same
         debt, and entitled to the same benefits under this Indenture, as the
         Global Notes or Definitive Notes surrendered upon such registration of
         transfer or exchange.

                  (5) Neither the Registrar nor the Issuers will be required:

                           (A) to issue, to register the transfer of or to
                  exchange any Notes during a period beginning at the opening of
                  business 15 days before the day of any selection of Notes for
                  redemption under Section 3.02 hereof and ending at the close
                  of business on the day of selection;

                           (B) to register the transfer of or to exchange any
                  Note selected for redemption in whole or in part, except the
                  unredeemed portion of any Note being redeemed in part; or

                           (C) to register the transfer of or to exchange a Note
                  between a record date and the next succeeding interest payment
                  date.

                  (6) Prior to due presentment for the registration of a
         transfer of any Note, the Trustee, any Agent and Suburban Propane may
         deem and treat the Person in whose name any Note is registered as the
         absolute owner of such Note for the purpose of receiving payment of
         principal of and interest on such Notes and for all other purposes, and
         none of the Trustee, any Agent or Suburban Propane shall be affected by
         notice to the contrary.

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<PAGE>

                  (7) The Trustee will authenticate Global Notes and Definitive
         Notes in accordance with the provisions of Section 2.02 hereof.

                  (8) All certifications, certificates and Opinions of Counsel
         required to be submitted to the Registrar pursuant to this Section 2.06
         to effect a registration of transfer or exchange may be submitted by
         facsimile.

Section 2.07 Replacement Notes.

         If any mutilated Note is surrendered to the Trustee or Suburban Propane
and the Trustee receives evidence to its satisfaction of the destruction, loss
or theft of any Note, the Issuers will issue and the Trustee, upon receipt of an
Authentication Order, will authenticate a replacement Note if the Trustee's
requirements are met. If required by the Trustee or the Issuers, an indemnity
bond must be supplied by the Holder that is sufficient in the judgment of the
Trustee and the Issuers to protect the Issuers, the Trustee, any Agent and any
authenticating agent from any loss that any of them may suffer if a Note is
replaced. Suburban Propane and the Trustee may charge for their expenses in
replacing a Note.

         Every replacement Note is an additional obligation of Suburban Propane
and will be entitled to all of the benefits of this Indenture equally and
proportionately with all other Notes duly issued hereunder.

Section 2.08 Outstanding Notes.

         The Notes outstanding at any time are all the Notes authenticated by
the Trustee except for those canceled by it, those delivered to it for
cancellation, those reductions in the interest in a Global Note effected by the
Trustee in accordance with the provisions hereof, and those described in this
Section as not outstanding. Except as set forth in Section 2.09 hereof, a Note
does not cease to be outstanding because Suburban Propane or an Affiliate of
Suburban Propane holds the Note; however, Notes held by Suburban Propane or a
Subsidiary of Suburban Propane shall not be deemed to be outstanding for
purposes of Section 3.07(a) hereof.

         If a Note is replaced pursuant to Section 2.07 hereof, it ceases to be
outstanding unless the Trustee receives proof satisfactory to it that the
replaced Note is held by a protected purchaser.

         If the principal amount of any Note is considered paid under Section
4.01 hereof, it ceases to be outstanding and interest on it ceases to accrue.

         If the Paying Agent (other than Suburban Propane, a Subsidiary or an
Affiliate of any thereof) holds, on a redemption date or maturity date, money
sufficient to pay Notes payable on that date, then on and after that date such
Notes will be deemed to be no longer outstanding and will cease to accrue
interest.

Section 2.09 Treasury Notes.

         In determining whether the Holders of the required principal amount of
Notes have concurred in any direction, waiver or consent, Notes owned by
Suburban Propane or Finance Corp., or by any Person directly or indirectly
controlling or controlled by or under direct or indirect common control with
Suburban Propane or Finance Corp., will be considered as though not outstanding,
except that for the purposes of determining whether the Trustee will be
protected in relying on any such direction, waiver or consent, only Notes that a
Responsible Officer of the Trustee actually knows are so owned will be so
disregarded.

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<PAGE>

Section 2.10 Temporary Notes.

         Until certificates representing Notes are ready for delivery, the
Issuers may prepare and the Trustee, upon receipt of an Authentication Order,
will authenticate temporary Notes. Temporary Notes will be substantially in the
form of certificated Notes but may have variations that the Issuers consider
appropriate for temporary Notes and as may be reasonably acceptable to the
Trustee. Without unreasonable delay, the Issuers will prepare and the Trustee
will authenticate definitive Notes in exchange for temporary Notes.

         Holders of temporary Notes will be entitled to all of the benefits of
this Indenture.

Section 2.11 Cancellation.

         The Issuers at any time may deliver Notes to the Trustee for
cancellation. The Registrar and Paying Agent will forward to the Trustee any
Notes surrendered to them for registration of transfer, exchange or payment. The
Trustee and no one else will cancel all Notes surrendered for registration of
transfer, exchange, payment, replacement or cancellation and will dispose of
canceled Notes (subject to the record retention requirement of the Exchange Act)
in its customary manner. The Issuers may not issue new Notes to replace Notes
that they have paid or that have been delivered to the Trustee for cancellation.

Section 2.12 Defaulted Interest.

         If Suburban Propane defaults in a payment of interest on the Notes, it
will pay the defaulted interest in any lawful manner plus, to the extent lawful,
interest payable on the defaulted interest, to the Persons who are Holders on a
subsequent special record date, in each case at the rate provided in the Notes
and in Section 4.01 hereof. Suburban Propane will notify the Trustee in writing
of the amount of defaulted interest proposed to be paid on each Note and the
date of the proposed payment. Suburban Propane will fix or cause to be fixed
each such special record date and payment date, provided that no such special
record date may be less than 10 days prior to the related payment date for such
defaulted interest. At least 15 days before the special record date, Suburban
Propane (or, upon the written request of Suburban Propane, the Trustee in the
name and at the expense of Suburban Propane) will mail or cause to be mailed to
Holders a notice that states the special record date, the related payment date
and the amount of such interest to be paid.

Section 2.13 Persons Deemed Owners.

         Prior to due presentment of a Note for registration of transfer and
subject to Section 2.12, the Issuers, the Trustee, any Paying Agent, any
co-registrar and any Registrar may deem and treat the person in whose name any
Note shall be registered upon the register of Notes kept by the Registrar as the
absolute owner of such Note (whether or not such Note shall be overdue and
notwithstanding any notation of the ownership or other writing thereon made by
anyone other than the Issuers, any co-registrar or any Registrar) for the
purpose of receiving all payments with respect to such Note and for all other
purposes, and none of the Issuers, the Trustee, any Paying Agent, any
co-registrar or any Registrar shall be affected by any notice to the contrary.

Section 2.14 CUSIP Numbers.

         The Issuers, in issuing the Notes, may use one or more "CUSIP" numbers
and, if so, the Trustee shall use such CUSIP numbers in notices of redemption or
exchange as a convenience to Holders; provided that any such notice may state
that no representation is made as to the correctness or accuracy of

                                       38
<PAGE>

any CUSIP number printed in the notice or on the Notes, and that reliance may be
placed only on the other identification numbers printed on the Notes. The
Issuers shall notify the Trustee of any change to the CUSIP numbers.

                                   ARTICLE 3.
                            REDEMPTION AND PREPAYMENT

Section 3.01 Notices to Trustee.

         If Suburban Propane elects to redeem Notes pursuant to the optional
redemption provisions of Section 3.07 hereof, it must furnish to the Trustee, at
least 45 days but not more than 60 days before a redemption date (unless a
shorter notice period shall be satisfactory to the Trustee), an Officers'
Certificate setting forth:

                  (1) the clause of this Indenture pursuant to which the
         redemption shall occur;

                  (2) the redemption date;

                  (3) the principal amount of Notes to be redeemed; and

                  (4) the redemption price.

         If the Registrar is not the Trustee, Suburban Propane shall,
concurrently with each notice of redemption or repurchase, cause the Registrar
to deliver to the Trustee a certificate (upon which the Trustee may rely)
setting forth the principal amounts of Notes held by each Holder.

Section 3.02 Selection of Notes to Be Redeemed or Purchased.

         If less than all of the Notes are to be redeemed or purchased in an
offer to purchase at any time, the Trustee will select Notes for redemption or
purchase as follows:

                  (1) if the Notes are listed on any national securities
         exchange, in compliance with the requirements of the principal national
         securities exchange on which the Notes are listed; or

                  (2) if the Notes are not listed on any national securities
         exchange, on a pro rata basis, by lot or by such method as the Trustee
         shall deem fair and appropriate.

         In the event of partial redemption or purchase by lot, the particular
Notes to be redeemed or purchased will be selected, unless otherwise provided
herein, not less than 30 nor more than 60 days prior to the redemption or
purchase date by the Trustee from the outstanding Notes not previously called
for redemption or purchase.

         The Trustee will promptly notify Suburban Propane in writing of the
Notes selected for redemption or purchase and, in the case of any Note selected
for partial redemption or purchase, the principal amount thereof to be redeemed
or purchased. Notes and portions of Notes selected will be in amounts of $1,000
or whole multiples of $1,000; except that if all of the Notes of a Holder are to
be redeemed or purchased, the entire outstanding amount of Notes held by such
Holder, even if not a multiple of $1,000, shall be redeemed or purchased. Except
as provided in the preceding sentence, provisions of this Indenture that apply
to Notes called for redemption or purchase also apply to portions of Notes
called for redemption or purchase.

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<PAGE>

Section 3.03 Notice of Redemption.

         Subject to the provisions of Section 3.10 hereof, at least 30 days but
not more than 60 days before a redemption date, Suburban Propane will mail or
cause to be mailed, by first class mail, a notice of redemption to each Holder
whose Notes are to be redeemed at its registered address, except that redemption
notices may be mailed more than 60 days prior to a redemption date if the notice
is issued in connection with a defeasance of the Notes or a satisfaction and
discharge of this Indenture pursuant to Articles 8 or 11 of this Indenture.

         The notice will identify the Notes to be redeemed and will state:

                  (1) the redemption date;

                  (2) the redemption price;

                  (3) if any Note is being redeemed in part, the portion of the
         principal amount of such Note to be redeemed and that, after the
         redemption date upon surrender of such Note, a new Note or Notes in
         principal amount equal to the unredeemed portion will be issued upon
         cancellation of the original Note;

                  (4) the name and address of the Paying Agent;

                  (5) that Notes called for redemption must be surrendered to
         the Paying Agent to collect the redemption price;

                  (6) that, unless Suburban Propane defaults in making such
         redemption payment, interest on Notes called for redemption ceases to
         accrue on and after the redemption date;

                  (7) the paragraph of the Notes and/or Section of this
         Indenture pursuant to which the Notes called for redemption are being
         redeemed; and

                  (8) that no representation is made as to the correctness or
         accuracy of the CUSIP number, if any, listed in such notice or printed
         on the Notes.

         At Suburban Propane's request, the Trustee will give the notice of
redemption in Suburban Propane's name and at its expense; provided, however,
that Suburban Propane has delivered to the Trustee, at least 45 days prior to
the redemption date (unless a shorter notice period shall be satisfactory to the
Trustee), an Officers' Certificate requesting that the Trustee give such notice
and setting forth the information to be stated in such notice as provided in the
preceding paragraph.

Section 3.04 Effect of Notice of Redemption.

         Once notice of redemption is mailed in accordance with Section 3.03
hereof, Notes called for redemption become irrevocably due and payable on the
redemption date at the redemption price. A notice of redemption may not be
conditional.

Section 3.05 Deposit of Redemption or Purchase Price.

         On or before 10:00 a.m. Eastern Time on the redemption or purchase
date, Suburban Propane will deposit with the Trustee or with the Paying Agent
money sufficient to pay the redemption or purchase price of and accrued interest
and Liquidated Damages, if any, on all Notes to be redeemed or purchased

                                       40
<PAGE>

on that date. The Trustee or the Paying Agent will promptly return to Suburban
Propane any money deposited with the Trustee or the Paying Agent by Suburban
Propane in excess of the amounts necessary to pay the redemption or purchase
price of, and accrued interest and Liquidated Damages, if any, on, all Notes to
be redeemed or purchased.

         If Suburban Propane complies with the provisions of the preceding
paragraph, on and after the redemption or purchase date, interest will cease to
accrue on the Notes or the portions of Notes called for redemption or purchase.
If a Note is redeemed or purchased on or after an interest record date but on or
prior to the related interest payment date, then any accrued and unpaid interest
shall be paid to the Person in whose name such Note was registered at the close
of business on such record date. If any Note called for redemption or purchase
is not so paid upon surrender for redemption or purchase because of the failure
of Suburban Propane to comply with the preceding paragraph, interest shall be
paid on the unpaid principal, from the redemption or purchase date until such
principal is paid, and to the extent lawful on any interest not paid on such
unpaid principal, in each case at the rate provided in the Notes and in Section
4.01 hereof.

Section 3.06 Notes Redeemed or Purchased in Part.

         Upon surrender of a Note that is redeemed or purchased in part, the
Issuers will issue and, upon receipt of an Authentication Order, the Trustee
will authenticate for the Holder at the expense of the Issuers a new Note equal
in principal amount to the unredeemed or unpurchased portion of the Note
surrendered.

Section 3.07 Optional Redemption.

         (a) [Reserved].

         (b) At any time prior to December 15, 2006, the Issuers may on any one
or more occasions redeem up to 35% of the aggregate principal amount of Notes
issued under this Indenture at a redemption price of 106.875% of the principal
amount thereof, plus accrued and unpaid interest and Liquidated Damages, if any,
to the redemption date, with the net cash proceeds of one or more Equity
Offerings; provided that:

                  (1) at least 65% of the aggregate principal amount of Notes
         originally issued under this Indenture (excluding Notes held by
         Suburban Propane and its Subsidiaries) remains outstanding immediately
         after the occurrence of such redemption; and

                  (2) the redemption must occur within 90 days of the date of
         the closing of such Equity Offering.

         (c) On or after December 15, 2008, the Issuers may redeem all or a part
of the Notes upon not less than 30 nor more than 60 days notice, at the
redemption prices (expressed as percentages of principal amount) set forth below
plus accrued and unpaid interest and Liquidated Damages, if any, thereon, to the
applicable redemption date, if redeemed during the twelve-month period beginning
on December 15 of the years indicated below, subject to the rights of Holders on
the relevant record date to receive interest on the relevant interest payment
date:

        Year                                                      Percentage
        ----                                                      ----------
        2008..................................................     103.4375%
        2009..................................................     102.2917%
        2010..................................................     101.1458%

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<PAGE>

        Year                                                      Percentage
        ----                                                      ----------
        2011 and thereafter...................................     100.0000%

         (d) Any redemption pursuant to this Section 3.07 shall be made pursuant
to the provisions of Section 3.01 through 3.06 hereof.

Section 3.08 Mandatory Redemption.

         The Issuers are not required to make mandatory redemption or sinking
fund payments with respect to the Notes.

Section 3.09 [Reserved].

Section 3.10 Offer to Purchase by Application of Excess Proceeds.

         In the event that, pursuant to Section 4.10 hereof, Suburban Propane is
required to commence an offer to all Holders to purchase Notes (an "Asset Sale
Offer"), it will follow the procedures specified below.

         The Asset Sale Offer shall be made to all Holders and all holders of
other Indebtedness that is pari passu with the Notes containing provisions
similar to those set forth in this Indenture with respect to offers to purchase
or redeem with the proceeds of sales of assets. The Asset Sale Offer will remain
open for a period of at least 20 Business Days following its commencement and
not more than 30 Business Days, except to the extent that a longer period is
required by applicable law (the "Offer Period"). No later than three Business
Days after the termination of the Offer Period (the "Purchase Date"), Suburban
Propane will apply all Excess Proceeds (the "Offer Amount") to the purchase of
Notes and such other pari passu Indebtedness (on a pro rata basis, if
applicable) or, if less than the Offer Amount has been tendered, all Notes and
other Indebtedness tendered in response to the Asset Sale Offer. Payment for any
Notes so purchased will be made in the same manner as interest payments are
made.

         If the Purchase Date is on or after an interest record date and on or
before the related interest payment date, any accrued and unpaid interest and
Liquidated Damages, if any, will be paid to the Person in whose name a Note is
registered at the close of business on such record date, and no additional
interest will be payable to Holders who tender Notes pursuant to the Asset Sale
Offer.

         Upon the commencement of an Asset Sale Offer, Suburban Propane will
send, by first class mail, a notice to the Trustee and each of the Holders, with
a copy to the Trustee. The notice will contain all instructions and materials
necessary to enable such Holders to tender Notes pursuant to the Asset Sale
Offer. The notice, which will govern the terms of the Asset Sale Offer, will
state:

                  (1) that the Asset Sale Offer is being made pursuant to this
         Section 3.10 and Section 4.10 hereof and the length of time the Asset
         Sale Offer will remain open;

                  (2) the Offer Amount, the purchase price and the Purchase
         Date;

                  (3) that any Note not tendered or accepted for payment will
         continue to accrue interest;

                  (4) that, unless Suburban Propane defaults in making such
         payment, any Note accepted for payment pursuant to the Asset Sale Offer
         will cease to accrue interest after the Purchase Date;

                                       42
<PAGE>

                  (5) that Holders electing to have a Note purchased pursuant to
         an Asset Sale Offer may elect to have Notes purchased in integral
         multiples of $1,000 only;

                  (6) that Holders electing to have Notes purchased pursuant to
         any Asset Sale Offer will be required to surrender the Note, with the
         form entitled "Option of Holder to Elect Purchase" attached to the
         Notes completed, or transfer by book-entry transfer, to Suburban
         Propane, a Depositary, if appointed by Suburban Propane, or a Paying
         Agent at the address specified in the notice at least three Business
         Days before the Purchase Date;

                  (7) that Holders will be entitled to withdraw their election
         if Suburban Propane, the Depositary or the Paying Agent, as the case
         may be, receives, not later than the expiration of the Offer Period, a
         telegram, telex, facsimile transmission or letter setting forth the
         name of the Holder, the principal amount of the Note the Holder
         delivered for purchase and a statement that such Holder is withdrawing
         his election to have such Note purchased;

                  (8) that, if the aggregate principal amount of Notes and other
         pari passu Indebtedness surrendered by holders thereof exceeds the
         Offer Amount, the Issuers will select the Notes and other pari passu
         Indebtedness to be purchased on a pro rata basis based on the principal
         amount of Notes and such other pari passu Indebtedness surrendered
         (with such adjustments as may be deemed appropriate by Suburban Propane
         so that only Notes in denominations of $1,000, or integral multiples
         thereof, will be purchased); and

                  (9) that Holders whose Notes were purchased only in part will
         be issued new Notes equal in principal amount to the unpurchased
         portion of the Notes surrendered (or transferred by book-entry
         transfer).

         On or before the Purchase Date, Suburban Propane will, to the extent
lawful, accept for payment, on a pro rata basis to the extent necessary, the
Offer Amount of Notes or portions thereof tendered pursuant to the Asset Sale
Offer, or if less than the Offer Amount has been tendered, all Notes tendered,
and will deliver or cause to be delivered to the Trustee the Notes properly
accepted together with an Officers' Certificate stating that such Notes or
portions thereof were accepted for payment by the Issuers in accordance with the
terms of this Section 3.10. Suburban Propane, the Depositary or the Paying
Agent, as the case may be, will promptly (but in any case not later than five
days after the Purchase Date) mail or deliver to each tendering Holder an amount
equal to the purchase price of the Notes tendered by such Holder and accepted by
the Issuers for purchase, and the Issuers, will promptly issue a new Note, and
the Trustee, upon written request from Suburban Propane will authenticate and
mail or deliver (or cause to be transferred by book entry) such new Note to such
Holder, in a principal amount equal to any unpurchased portion of the Note
surrendered. Any Note not so accepted shall be promptly mailed or delivered by
the Issuers to the Holder thereof. Suburban Propane will publicly announce the
results of the Asset Sale Offer on the Purchase Date.

         Other than as specifically provided in this Section 3.10, any purchase
pursuant to this Section 3.10 shall be made pursuant to the provisions of
Sections 3.01 through 3.06 hereof.

                                   ARTICLE 4.
                                    COVENANTS

Section 4.01 Payment of Notes.

         Suburban Propane will pay or cause to be paid the principal of,
premium, if any, and interest and Liquidated Damages, if any, on the Notes on
the dates and in the manner provided in the Notes.

                                       43
<PAGE>

Principal, premium, if any, and interest and Liquidated Damages, if any will be
considered paid on the date due if the Paying Agent, if other than the Issuers
or a Subsidiary thereof, holds as of 10:00 a.m. Eastern Time on the due date
money deposited by Suburban Propane in immediately available funds and
designated for and sufficient to pay all principal, premium, if any, and
interest then due. Suburban Propane will pay all Liquidated Damages, if any, in
the same manner on the dates and in the amounts set forth in the Registration
Rights Agreement.

         Suburban Propane will pay interest (including post-petition interest in
any proceeding under any Bankruptcy Law) on overdue principal at the rate equal
to 1% per annum in excess of the then applicable interest rate on the Notes to
the extent lawful; it will pay interest (including post-petition interest in any
proceeding under any Bankruptcy Law) on overdue installments of interest and
Liquidated Damages (without regard to any applicable grace period) at the same
rate to the extent lawful.

Section 4.02 Maintenance of Office or Agency.

         Suburban Propane will maintain in the Borough of Manhattan, the City of
New York, an office or agency (which may be an office of the Trustee or an
affiliate of the Trustee, Registrar or co-registrar) where Notes may be
surrendered for registration of transfer or for exchange and where notices and
demands to or upon Suburban Propane in respect of the Notes and this Indenture
may be served. Suburban Propane will give prompt written notice to the Trustee
of the location, and any change in the location, of such office or agency. If at
any time Suburban Propane fails to maintain any such required office or agency
or fails to furnish the Trustee with the address thereof, such presentations,
surrenders, notices and demands may be made or served at the Corporate Trust
Office of the Trustee.

         Suburban Propane may also from time to time designate one or more other
offices or agencies where the Notes may be presented or surrendered for any or
all such purposes and may from time to time rescind such designations; provided,
however, that no such designation or rescission will in any manner relieve
Suburban Propane of its obligation to maintain an office or agency in the
Borough of Manhattan, the City of New York for such purposes. Suburban Propane
will give prompt written notice to the Trustee of any such designation or
rescission and of any change in the location of any such other office or agency.

         Suburban Propane hereby designates the Corporate Trust Office of the
Trustee as one such office or agency of Suburban Propane in accordance with
Section 2.03 hereof.

Section 4.03 Reports.

         (a) Whether or not required by the rules and regulations of the
Commission, so long as any Notes are outstanding, the Issuers will furnish to
the Holders of Notes or cause the Trustee to furnish to the Holders of Notes,
within the time periods specified in the Commission's rules and regulations:

                  (1) all quarterly and annual financial information that would
         be required to be filed with the Commission on Forms 10-Q and 10-K if
         the Issuers were required to file such forms; and

                  (2) all current reports that would be required to be filed
         with the Commission on Form 8-K if the Issuers were required to file
         such reports.

All such reports will be prepared in all material respects in accordance with
all the rules and regulations applicable to such reports. Each annual report on
Form 10-K will include a report on the Issuers' consolidated financial
statements by the Issuers' certified independent accountants. In addition,
following the consummation of the Exchange Offer contemplated by the
Registration Rights Agreement, the Issuers

                                       44
<PAGE>

will file a copy of all of each of the reports referred to in clauses (1) and
(2) above with the Commission for public availability within the time periods
specified in the Commission's rules and regulations applicable to such reports
(unless the Commission will not accept such a filing) and will post the reports
or links to such reports on Suburban Propane's website within those time
periods. The Issuers will at all times comply with TIA ss. 314(a).

         If, at any time, either or both of the Issuers are no longer subject to
the periodic reporting requirements of the Exchange Act for any reason, the
Issuers will nevertheless continue filing the reports specified in the preceding
paragraph with the Commission within the time periods specified above unless the
Commission will not accept such a filing. The Issuers agree that they will not
take any action for the purpose of causing the Commission not to accept any such
filings. If, notwithstanding the foregoing, the Commission will not accept the
Issuers' filings for any reason, the Issuers will post the reports referred to
in the preceding paragraph on Suburban Propane's website within the time periods
that would apply if the Issuers were required to file those reports with the
Commission.

         (b) If Suburban Propane has designated any of its Subsidiaries as
Unrestricted Subsidiaries, then the quarterly and annual financial information
required by the preceding paragraph will include a reasonably detailed
presentation, either on the face of the financial statements or in the footnotes
thereto, and in Management's Discussion and Analysis of Financial Condition and
Results of Operations, of the financial condition and results of operations of
Suburban Propane and its Restricted Subsidiaries separate from the financial
condition and results of operations of the Unrestricted Subsidiaries of Suburban
Propane.

         (c) For so long as any Notes remain outstanding, at any time that
Suburban Propane is not required to file the reports required by the preceding
paragraphs with the Commission, Suburban Propane will furnish to the Holders and
to securities analysts and prospective investors, upon their request, the
information required to be delivered pursuant to Rule 144A(d)(4) under the
Securities Act.

Section 4.04 Compliance Certificate.

         (a) Suburban Propane and Finance Corp. (to the extent that Finance
Corp. is so required under the TIA) shall deliver to the Trustee, within 95 days
after the end of each fiscal year, an Officers' Certificate stating that a
review of the activities of Suburban Propane and its Subsidiaries during the
preceding fiscal year has been made under the supervision of the signing
Officers with a view to determining whether Suburban Propane has kept, observed,
performed and fulfilled its obligations under this Indenture, and further
stating, as to each such Officer signing such certificate, that to the best of
his or her knowledge Suburban Propane has kept, observed, performed and
fulfilled each and every covenant contained in this Indenture and is not in
default in the performance or observance of any of the terms, provisions and
conditions of this Indenture (or, if a Default or Event of Default has occurred,
describing all such Defaults or Events of Default of which he or she may have
knowledge and what action Suburban Propane is taking or propose to take with
respect thereto) and that to the best of his or her knowledge no event has
occurred and remains in existence by reason of which payments on account of the
principal of or interest, if any, on the Notes is prohibited or if such event
has occurred, a description of the event and what action Suburban Propane is
taking or proposes to take with respect thereto.

         (b) So long as not contrary to the then current recommendations of the
American Institute of Certified Public Accountants, the year-end financial
statements delivered pursuant to Section 4.03 above shall be accompanied by a
written statement of Suburban Propane's independent public accountants (who
shall be a firm of established national reputation) that in making the
examination necessary for certification of such financial statements, nothing
has come to their attention that would lead them to believe that Suburban
Propane has violated any provisions of Article 4 or Article 5 hereof or, if any
such

                                       45
<PAGE>

violation has occurred, specifying the nature and period of existence thereof,
it being understood that such accountants shall not be liable directly or
indirectly to any Person for any failure to obtain knowledge of any such
violation.

         (c) So long as any of the Notes are outstanding, Suburban Propane will
deliver to the Trustee, forthwith upon any Officer becoming aware of any Default
or Event of Default, an Officers' Certificate specifying such Default or Event
of Default and what action Suburban Propane is taking or proposes to take with
respect thereto.

Section 4.05 Taxes.

         Suburban Propane will pay, and will cause each of its Subsidiaries to
pay, prior to delinquency, all material taxes, assessments, and governmental
levies except such as are contested in good faith and by appropriate proceedings
or where the failure to effect such payment is not adverse in any material
respect to the Holders of the Notes.

Section 4.06 Stay, Extension and Usury Laws.

         Each of Suburban Propane and Finance Corp. covenants (to the extent
that it may lawfully do so) that it will not at any time insist upon, plead, or
in any manner whatsoever claim or take the benefit or advantage of, any stay,
extension or usury law wherever enacted, now or at any time hereafter in force,
that may affect the covenants or the performance of this Indenture; and Suburban
Propane, Finance Corp. and each of the Guarantors, if any, (to the extent that
it may lawfully do so) hereby expressly waives all benefit or advantage of any
such law, and covenants that it will not, by resort to any such law, hinder,
delay or impede the execution of any power herein granted to the Trustee, but
will suffer and permit the execution of every such power as though no such law
has been enacted.

Section 4.07 Restricted Payments.

         (a) Suburban Propane will not, and will not permit any of its
Restricted Subsidiaries to, directly or indirectly:

                  (1) declare or pay any dividend or make any other payment or
         distribution on account of Suburban Propane's or any of its Restricted
         Subsidiaries' Equity Interests (including, without limitation, any
         payment in connection with any merger or consolidation involving
         Suburban Propane or any of its Restricted Subsidiaries) or to the
         direct or indirect holders of Suburban Propane's or any of its
         Restricted Subsidiaries' Equity Interests in their capacity as such
         (other than dividends or distributions payable in Equity Interests
         (other than Disqualified Stock) of Suburban Propane or to Suburban
         Propane or a Restricted Subsidiary of Suburban Propane);

                  (2) purchase, redeem or otherwise acquire or retire for value
         (including without limitation, in connection with any merger or
         consolidation involving Suburban Propane) any Equity Interests of
         Suburban Propane;

                  (3) make any payment on or with respect to, or purchase,
         redeem, defease or otherwise acquire or retire for value any
         Indebtedness of Suburban Propane that is contractually subordinated to
         the Notes (excluding any intercompany Indebtedness between or among
         Suburban Propane and any of its Restricted Subsidiaries), except a
         payment of interest or principal at the Stated Maturity of such
         Indebtedness; or

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<PAGE>

                  (4) make any Restricted Investment (all such payments and
         other actions set forth in these clauses (1) through (4) above being
         collectively referred to as "Restricted Payments"),

                  unless, at the time of and after giving effect to such
         Restricted Payment:

                  (1) no Default or Event of Default has occurred and is
         continuing or would occur as a consequence of such Restricted Payment;
         and

                  (2) the Restricted Payment, together with the aggregate of all
         other Restricted Payments made by Suburban Propane and its Restricted
         Subsidiaries during the fiscal quarter during which the Restricted
         Payment is made (excluding Restricted Payments permitted by clauses
         (2), (3), (4) and (6) of Section 4.07(b)), will not exceed:

                           (a) if the Consolidated Fixed Charge Coverage Ratio
                  of Suburban Propane is greater than 1.75 to 1.00, an amount
                  equal to Available Cash for the immediately preceding fiscal
                  quarter; or

                           (b) if the Consolidated Fixed Charge Coverage Ratio
                  of Suburban Propane is equal to or less than 1.75 to 1.00, an
                  amount equal to the sum of:

                           (A) $20.0 million, less

                           (B) the aggregate amount of all Restricted Payments
                  made by Suburban Propane and its Restricted Subsidiaries in
                  accordance with this clause (2)(b) during the period ending on
                  the last day of the fiscal quarter of Suburban Propane
                  immediately preceding the date of the Restricted Payment and
                  beginning on the date of this Indenture, plus

                           (C) the aggregate net cash proceeds of capital
                  contributions to Suburban Propane from any Person other than a
                  Restricted Subsidiary of Suburban Propane, or issuance and
                  sale of shares of Capital Stock, other than (i) Disqualified
                  Stock and (ii) Capital Stock issued concurrently with the
                  offering of the Notes, of Suburban Propane to any entity other
                  than to a Restricted Subsidiary of Suburban Propane, in any
                  case made during the period ending on the last day of the
                  fiscal quarter of Suburban Propane immediately preceding the
                  date of the Restricted Payment and beginning on the date of
                  this Indenture.

         (b) So long as no Default has occurred and is continuing or would be
caused thereby, the provisions of Section 4.07(a) will not prohibit:

                  (1) the payment of any distribution or dividend within 60 days
         after the date of its declaration, if at the date of declaration the
         distribution or dividend payment would have complied with the
         provisions of this Indenture;

                  (2) the making of any Restricted Payment in exchange for, or
         out of the net cash proceeds of the substantially concurrent sale
         (other than to a Subsidiary of Suburban Propane) of, Equity Interests
         of Suburban Propane (other than Disqualified Stock) or from the
         substantially concurrent contribution of common equity capital to
         Suburban Propane by any entity other than a Subsidiary of Suburban
         Propane; provided, however, that the amount of any net cash proceeds
         that are utilized for any such Restricted Payment will be excluded from
         the calculation of Available Cash and from the calculation set forth in
         clause (2)(b) of Section 4.07(a);

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<PAGE>

                  (3) the defeasance, redemption, repurchase or other
         acquisition of Indebtedness of the Issuers that is contractually
         subordinated to the Notes with the net cash proceeds from a
         substantially concurrent incurrence of Permitted Refinancing
         Indebtedness; provided, however, that the amount of any net cash
         proceeds that are utilized for any such Restricted Payment will be
         excluded from the calculation of Available Cash;

                  (4) the payment of any dividend (or, in the case of any
         partnership or limited liability company, any similar distribution) by
         a Restricted Subsidiary of Suburban Propane to the holders of its
         Equity Interests on a pro rata basis;

                  (5) the repurchase, redemption or other acquisition or
         retirement for value of any Equity Interests of Suburban Propane or any
         Restricted Subsidiary of Suburban Propane held by any current or former
         officer, director or employee of Suburban Propane or any of its
         Restricted Subsidiaries pursuant to any restricted unit plan, equity
         subscription agreement, equity option agreement, shareholders'
         agreement or similar agreement; provided that the aggregate price paid
         for all such repurchased, redeemed, acquired or retired Equity
         Interests may not exceed $1.0 million in any calendar year; and

                  (6) the repurchase of Equity Interests deemed to occur upon
         the exercise of unit or stock options to the extent such Equity
         Interests represent a portion of the exercise price of those options.

         The amount of all Restricted Payments (other than cash) will be the
Fair Market Value on the date of the Restricted Payment of the asset(s) or
securities proposed to be transferred or issued by Suburban Propane or such
Restricted Subsidiary, as the case may be, pursuant to the Restricted Payment.
The Fair Market Value of any assets or securities that are required to be valued
by this Section 4.07 will be determined by the Board of Supervisors of Suburban
Propane whose resolution with respect thereto shall be delivered to the Trustee.

Section 4.08 Dividend and Other Payment Restrictions Affecting Subsidiaries.

         (a) Suburban Propane will not, and will not permit any of its
Restricted Subsidiaries to, directly or indirectly, create or permit to exist or
become effective any consensual encumbrance or restriction on the ability of any
Restricted Subsidiary to:

                  (1) pay dividends or make any other distributions on its
         Capital Stock to Suburban Propane or any of its Restricted Subsidiaries
         or with respect to any other interest or participation in, or measured
         by, its profits, or pay any indebtedness owed to Suburban Propane or
         any of its Restricted Subsidiaries;

                  (2) make loans or advances to Suburban Propane or any of its
         Restricted Subsidiaries; or

                  (3) transfer any of its properties or assets to Suburban
         Propane or any of its Restricted Subsidiaries.

         (b) The restrictions in Section 4.08(a) will not apply to encumbrances
or restrictions existing under or by reason of:

                  (1) agreements governing Existing Indebtedness and Credit
         Facilities as in effect on the date of this Indenture and any
         amendments, modifications, restatements, renewals, increases,
         supplements, refundings, replacements or refinancings of those
         agreements; provided that the

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<PAGE>

         amendments, modifications, restatements, renewals, increases,
         supplements, refundings, replacement or refinancings are not materially
         more restrictive, taken as a whole, with respect to such dividend and
         other payment restrictions than those contained in those agreements on
         the date of this Indenture;

                  (2) this Indenture and the Notes;

                  (3) restrictions in other Indebtedness incurred in compliance
         with the Section 4.09; provided such restrictions, taken as a whole,
         are not materially more restrictive than those contained in the
         agreements described above;

                  (4) applicable law, rule, regulation or order;

                  (5) customary non-assignment provisions in contracts and
         licenses entered into in the ordinary course of business;

                  (6) purchase money obligations for property acquired in the
         ordinary course of business and Capital Lease Obligations that impose
         restrictions on the property purchased or leased of the nature
         described in clause (3) of Section 4.08(a);

                  (7) any agreement or instrument governing Acquired Debt, which
         encumbrance or restriction is not applicable to any Person, or the
         properties or assets of any Person, other than the Person or the
         properties or assets of the Person so acquired;

                  (8) any agreement for the sale or other disposition of a
         Restricted Subsidiary that restricts distributions by that Restricted
         Subsidiary pending the sale or other disposition;

                  (9) Liens permitted to be incurred under the provisions of
         Section 4.12 hereof that limit the right of the debtor to dispose of
         the assets subject to such Liens;

                  (10) provisions limiting the disposition or distribution of
         assets or property in joint venture agreements, asset sale agreements,
         sale-leaseback agreements, stock sale agreements and other similar
         agreements entered into with the approval of Suburban Propane's Board
         of Supervisors, which limitation is applicable only to the assets that
         are the subject of such agreements; and

                  (11) restrictions on cash or other deposits or net worth
         imposed by customers under contracts entered into in the ordinary
         course of business.

Section 4.09 Incurrence of Indebtedness and Issuance of Preferred Stock.

         (a) Suburban Propane will not, and will not permit any of its
Restricted Subsidiaries to, directly or indirectly, create, incur, issue,
assume, guarantee or otherwise become directly or indirectly liable,
contingently or otherwise, with respect to (collectively, "incur") any
Indebtedness (including Acquired Debt), and Suburban Propane will not issue any
Disqualified Stock and will not permit any of its Restricted Subsidiaries to
issue any shares of Preferred Stock; provided, however, that Suburban Propane
may incur Indebtedness (including Acquired Debt) or issue Disqualified Stock and
Suburban Propane's Restricted Subsidiaries may incur Indebtedness or issue
Preferred Stock, if the Consolidated Fixed Charge Coverage Ratio for Suburban
Propane's most recently ended four full fiscal quarters for which internal
financial statements are available immediately preceding the date on which such
additional Indebtedness is incurred or such Disqualified Stock or Preferred
Stock is issued would have been at least

                                       49
<PAGE>

2.0 to 1, determined on a pro forma basis (including a pro forma application of
the net proceeds therefrom), as if the additional Indebtedness had been incurred
or Disqualified Stock or Preferred Stock had been issued, as the case may be, at
the beginning of such four-quarter period.

         (b) The provisions of Section 4.09(a) will not prohibit the incurrence
of any of the following items of Indebtedness (collectively, "Permitted Debt"):

                  (1) the incurrence by Suburban Propane and any of its
         Restricted Subsidiaries of additional Indebtedness and letters of
         credit under Credit Facilities in an aggregate principal amount at any
         one time outstanding under this clause (1) (with letters of credit
         being deemed to have a principal amount equal to the maximum potential
         liability of Suburban Propane and its Restricted Subsidiaries
         thereunder) not to exceed the greater of:

                           (a) $75.0 million less the aggregate amount of all
         Net Proceeds of Asset Sales applied by Suburban Propane or any of its
         Restricted Subsidiaries since the date of this Indenture to repay any
         term Indebtedness under a Credit Facility or to repay any revolving
         credit Indebtedness under a Credit Facility and effect a corresponding
         commitment reduction thereunder pursuant to Section 4.10 hereof; or

                           (b) the amount of the Borrowing Base as of the date
         of such incurrence;

                  (2) the incurrence by Suburban Propane and any of its
         Restricted Subsidiaries of the Existing Indebtedness;

                  (3) the incurrence by the Issuers of Indebtedness represented
         by the Notes to be issued on the date of this Indenture and the
         Exchange Notes to be issued pursuant to the Registration Rights
         Aagreement;

                  (4) Indebtedness of Suburban Propane and any of its Restricted
         Subsidiaries (including Capital Lease Obligations and Acquired Debt)
         incurred for the making of expenditures for the improvement or repair,
         to the extent the improvements or repairs may be capitalized in
         accordance with GAAP, or additions, including by way of acquisitions of
         businesses and related assets, to the property and assets of Suburban
         Propane and its Restricted Subsidiaries, including, without limitation,
         the acquisition of assets subject to operating leases or incurred by
         assumption in connection with additions, including additions by way of
         acquisitions or capital contributions of businesses and related assets,
         to the property and assets of Suburban Propane and its Restricted
         Subsidiaries; provided that the aggregate principal amount of
         Indebtedness outstanding at any time pursuant to this clause (4), may
         not exceed $100.0 million at any one time outstanding;

                  (5) the incurrence by Suburban Propane and any of its
         Restricted Subsidiaries of Permitted Refinancing Indebtedness in
         exchange for, or the net proceeds of which are used to refund,
         refinance, replace, defease or discharge, Indebtedness that was
         permitted by this Indenture to be incurred under Section 4.09(a) or
         clause (2), (3) or (5) of this Section 4.09(b);

                  (6) the incurrence by Suburban Propane and any of its
         Restricted Subsidiaries of intercompany Indebtedness between or among
         Suburban Propane and any of its Restricted Subsidiaries; provided,
         however, that:

                           (a) if an Issuer is an obligor on such Indebtedness
         and the payee is not an Issuer, such Indebtedness must be expressly
         subordinated to the prior payment in full in cash of all Obligations
         then due with respect to the Notes; and

                                       50
<PAGE>

                           (b) (i) any subsequent issuance or transfer of Equity
         Interests that results in any such Indebtedness being held by a Person
         other than Suburban Propane or a Restricted Subsidiary of Suburban
         Propane and (ii) any sale or other transfer of any such Indebtedness to
         a Person that is not either Suburban Propane or a Restricted Subsidiary
         of Suburban Propane, will be deemed, in each case, to constitute an
         incurrence of such Indebtedness by Suburban Propane or such Restricted
         Subsidiary, as the case may be, that was not permitted by this clause
         (6);

                  (7) the issuance by any of Suburban Propane's Restricted
         Subsidiaries to Suburban Propane or to any of its Restricted
         Subsidiaries of units or shares of Preferred Stock; provided, however,
         that:

                           (a) any subsequent issuance or transfer of Equity
         Interests that results in any such Preferred Stock being held by a
         Person other than Suburban Propane or a Restricted Subsidiary of
         Suburban Propane; and

                           (b) any sale or other transfer of any such Preferred
         Stock to a Person that is not either Suburban Propane or a Restricted
         Subsidiary of Suburban Propane will be deemed, in each case, to
         constitute an issuance of such Preferred Stock by such Restricted
         Subsidiary that was not permitted by this clause (7);

                  (8) the incurrence by Suburban Propane and any of its
         Restricted Subsidiaries of Hedging Obligations in the ordinary course
         of business;

                  (9) the guarantee by the Issuers or any of their Restricted
         Subsidiaries of Indebtedness of the Issuers or a Restricted Subsidiary
         of the Issuers that was permitted to be incurred by another provision
         of this covenant; provided that if the Indebtedness being guaranteed is
         incurred by one or both of the Issuers and is subordinated to the
         Notes, then the guarantee of such Indebtedness by any Restricted
         Subsidiary of the Issuers shall be subordinated to the same extent as
         the Indebtedness guaranteed;

                  (10) the incurrence by Suburban Propane or any of its
         Restricted Subsidiaries of Indebtedness arising from the honoring by a
         bank or other financial institution of a check, draft or similar
         instrument drawn against insufficient funds, so long as such
         Indebtedness is covered within five Business Days;

                  (11) the incurrence by Suburban Propane or any of its
         Restricted Subsidiaries of Indebtedness arising from performance bonds,
         bid bonds, bankers' acceptances, workers' compensation, health,
         disability or other employee benefit claims, surety or appeal bonds,
         payment obligations in connection with self-insurance or similar
         obligations and bank overdrafts (and letters of credit in respect
         thereof) incurred in the ordinary course of business;

                  (12) the incurrence by Suburban Propane or any of its
         Restricted Subsidiaries of Indebtedness arising from indemnities or
         other similar obligations in respect of purchase price adjustments in
         connection with the disposition of property or assets; and

                  (13) the incurrence by Suburban Propane or any of its
         Restricted Subsidiaries of additional Indebtedness in an aggregate
         principal amount (or accreted value, as applicable) at any time
         outstanding, including all Permitted Refinancing Indebtedness incurred
         to refund, refinance, replace, defease or discharge any Indebtedness
         incurred pursuant to this clause (13), not to exceed $10.0 million.

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<PAGE>

         The Issuers will not incur any Indebtedness (including Permitted Debt)
that is contractually subordinated in right of payment to any other Indebtedness
of the Issuers unless such Indebtedness is also contractually subordinated in
right of payment to the Notes on substantially identical terms; provided,
however, that no Indebtedness will be deemed to be contractually subordinated in
right of payment to any other Indebtedness of the Issuers solely by virtue of
being unsecured or by virtue of being secured on a first or junior Lien basis.

For purposes of determining compliance with this Section 4.09, in the event that
an item of proposed Indebtedness meets the criteria of more than one of the
categories of Permitted Debt described in clauses (1) through (13) above, or is
entitled to be incurred pursuant to Section 4.09(a), the Issuers will be
permitted to classify such item of Indebtedness on the date of its incurrence,
or later reclassify all or a portion of such item of Indebtedness, in any manner
that complies with this Section 4.09. Indebtedness under Credit Facilities
outstanding on the date on which Notes are first issued and authenticated under
this Indenture will initially be deemed to have been incurred on such date in
reliance on the exception provided by clause (1) of the definition of Permitted
Debt. The accrual of interest, the accretion or amortization of original issue
discount, the payment of interest on any Indebtedness in the form of additional
Indebtedness with the same terms, and the payment of dividends on Disqualified
Stock in the form of additional shares of the same class of Disqualified Stock
will not be deemed to be an incurrence of Indebtedness or an issuance of
Disqualified Stock for purposes of this Section 4.09. Notwithstanding any other
provision of this Section 4.09, the maximum amount of Indebtedness that Suburban
Propane or any Restricted Subsidiary may incur pursuant to this Section 4.09
shall not be deemed to be exceeded solely as a result of fluctuations in
exchange rates or currency values.

         The amount of any Indebtedness outstanding as of any date will be:

                  (1) the accreted value of the Indebtedness, in the case of any
         Indebtedness issued with original issue discount;

                  (2) the principal amount of the Indebtedness, in the case of
         any other Indebtedness; and

                  (3) in respect of Indebtedness of another Person secured by a
         Lien on the assets of the specified Person, the lesser of:

                           (a) the Fair Market Value of such asset at the date
                  of determination, and

                           (b) the amount of the Indebtedness of the other
                  Person.

Section 4.10 Asset Sales.

         Suburban Propane will not, and will not permit any of its Restricted
Subsidiaries to, consummate an Asset Sale unless:

                  (1) Suburban Propane (or the Restricted Subsidiary, as the
         case may be) receives consideration at the time of the Asset Sale at
         least equal to the Fair Market Value of the assets or Equity Interests
         issued or sold or otherwise disposed of; and

                  (2) at least 75% of the consideration received in the Asset
         Sale by Suburban Propane or such Restricted Subsidiary is in the form
         of cash. For purposes of this provision, each of the following will be
         deemed to be cash:

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<PAGE>

                           (a) any liabilities, as shown on Suburban Propane's
         most recent consolidated balance sheet, of Suburban Propane or any
         Restricted Subsidiary (other than contingent liabilities and
         liabilities that are by their terms subordinated to the Notes) that are
         assumed by the transferee of any such assets pursuant to a customary
         novation agreement that releases Suburban Propane or such Restricted
         Subsidiary from further liability;

                           (b) any securities, notes or other obligations
         received by Suburban Propane or any such Restricted Subsidiary from
         such transferee that are converted within 180 days after the date of
         consummation of such Asset Sale by Suburban Propane or such Restricted
         Subsidiary into cash, to the extent of the cash received in that
         conversion; and

                           (c) any stock or assets of the kind referred to in
         clauses (2) or (4) of the next paragraph of this Section 4.10.

The 75% limitation in clause (2) above will not apply to any Asset Sale in which
the cash portion of the consideration received is equal to or greater than the
after-tax proceeds would have been had the Asset Sale complied with the 75%
limitation.

         Within 360 days after the receipt of any Net Proceeds from an Asset
Sale, Suburban Propane (or the applicable Restricted Subsidiary, as the case may
be) may apply those Net Proceeds:

                  (1) to repay Indebtedness of Suburban Propane under a Credit
         Facility or to repay any Indebtedness of any Restricted Subsidiary of
         Suburban Propane and, if the Indebtedness repaid is revolving credit
         Indebtedness, to correspondingly reduce commitments with respect
         thereto;

                  (2) to acquire, or commit to acquire within 90 days thereof,
         all or substantially all of the assets of, or any Capital Stock of,
         another Permitted Business, if, after giving effect to any such
         acquisition of Capital Stock, the Permitted Business is or becomes a
         Restricted Subsidiary of Suburban Propane;

                  (3) to make a capital expenditure; and/or

                  (4) to acquire, or commit to acquire within 90 days thereof,
         other assets that are not classified as current assets under GAAP and
         that are used or useful in a Permitted Business.

Pending the final application of any Net Proceeds, Suburban Propane or any
Restricted Subsidiary may temporarily reduce revolving credit borrowings or
otherwise invest the Net Proceeds in any manner that is not prohibited by this
Indenture.

         Any Net Proceeds from Asset Sales that are not applied or invested as
provided in the preceding paragraph will constitute "Excess Proceeds." When the
aggregate amount of Excess Proceeds exceeds $15.0 million, the Issuers will make
an Asset Sale Offer to all Holders of Notes and all holders of other
Indebtedness that is pari passu with the Notes containing provisions similar to
those set forth in this Indenture with respect to offers to purchase or redeem
with the proceeds of sales of assets to purchase the maximum principal amount of
Notes and such other pari passu Indebtedness that may be purchased out of the
Excess Proceeds. The offer price in any Asset Sale Offer will be equal to 100%
of the principal amount plus accrued and unpaid interest and Liquidated Damages,
if any, to the date of purchase, and will be payable in cash. If any Excess
Proceeds remain after consummation of an Asset Sale Offer, the Issuers may use
those Excess Proceeds for any purpose not otherwise prohibited by this
Indenture. If the aggregate principal amount of Notes and other pari passu
Indebtedness tendered into such Asset Sale Offer exceeds the amount of Excess
Proceeds, the Trustee will select the Notes and such other pari passu

                                       53
<PAGE>

Indebtedness to be purchased on a pro rata basis. Upon completion of each Asset
Sale Offer, the amount of Excess Proceeds will be reset at zero.

         The Issuers will comply with the requirements of Rule 14e-1 under the
Exchange Act and any other securities laws and regulations thereunder to the
extent those laws and regulations are applicable in connection with each
repurchase of Notes pursuant to an Asset Sale Offer. To the extent that the
provisions of any securities laws or regulations conflict with Sections 3.10 or
4.10 of this Indenture, the Issuers will comply with the applicable securities
laws and regulations and will not be deemed to have breached their obligations
Section 3.10 or 4.10 of this Indenture by virtue of such conflict.

Section 4.11 Transactions with Affiliates.

         (a) Suburban Propane will not, and will not permit any of its
Restricted Subsidiaries to, make any payment to, or sell, lease, transfer or
otherwise dispose of any of its properties or assets to, or purchase any
property or assets from, or enter into or make or amend any transaction,
contract, agreement, understanding, loan, advance or guarantee with, or for the
benefit of, any Affiliate of Suburban Propane (each, an "Affiliate
Transaction"), unless:

                  (1) the Affiliate Transaction is on terms that are no less
         favorable to Suburban Propane or the relevant Restricted Subsidiary
         than those that would have been obtained in a comparable transaction by
         Suburban Propane or such Restricted Subsidiary with an unrelated
         Person; and

                  (2) Suburban Propane delivers to the Trustee, with respect to
         any Affiliate Transaction or series of related Affiliate Transactions
         involving aggregate consideration in excess of $10.0 million, a
         resolution of the Board of Supervisors set forth in an Officers'
         Certificate certifying that such Affiliate Transaction complies with
         this Section 4.11(a) and that such Affiliate Transaction has been
         approved by a majority of the disinterested members of the Board of
         Supervisors.

         (b) The following items will not be deemed to be Affiliate Transactions
and, therefore, will not be subject to the provisions of Section 4.11(a):

                  (1) any employment agreement, employee benefit plan, officer
         and director indemnification agreement or any similar arrangement
         entered into by Suburban Propane or any of its Restricted Subsidiaries
         in the ordinary course of business;

                  (2) transactions between or among Suburban Propane and/or its
         Restricted Subsidiaries;

                  (3) transactions with a Person (other than an Unrestricted
         Subsidiary of Suburban Propane) that is an Affiliate of Suburban
         Propane solely because Suburban Propane owns, directly or through a
         Restricted Subsidiary, an Equity Interest in, or controls, such Person;

                  (4) payment of supervisors' or directors' fees and
         compensation to Persons who are not otherwise Affiliates of Suburban
         Propane;

                  (5) any issuance of Equity Interests (other than Disqualified
         Stock) of Suburban Propane to Affiliates of Suburban Propane;

                  (6) Restricted Payments that do not violate Section 4.07
         hereof;

                  (7) loans or advances to employees in the ordinary course of
         business not to exceed $1.0 million in the aggregate at any one time
         outstanding;

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<PAGE>

                  (8) any Affiliate Transaction which constitutes a Permitted
         Investment;

                  (9) any arm's-length transaction with a non-Affiliate that
         becomes an Affiliate as a result of such transaction; and

                  (10) the payment of expenses and indemnification or
         contribution obligations of any Person pursuant to Suburban Propane's
         partnership agreement or the Operating Partnership's partnership
         agreement, in each case as in effect on the date of this Indenture.

Section 4.12 Liens.

         Suburban Propane will not create, incur, assume or suffer to exist any
Lien securing Indebtedness incurred by Suburban Propane of any kind on any asset
now owned or hereafter acquired, except Permitted Liens.

Section 4.13 Business Activities.

         Suburban Propane will not, and will not permit any of its Restricted
Subsidiaries to, engage in any business other than Permitted Businesses, except
to such extent as would not be material to Suburban Propane and its Restricted
Subsidiaries taken as a whole.

Section 4.14 Corporate Existence.

         Subject to Article 5 hereof, Suburban Propane shall do or cause to be
done all things necessary to preserve and keep in full force and effect:

                  (1) its limited partnership or corporate existence, and the
         corporate, partnership or other existence of each of its Subsidiaries,
         in accordance with the respective organizational documents (as the same
         may be amended from time to time) of Suburban Propane or any such
         Subsidiary; and

                  (2) the rights (charter and statutory), licenses and
         franchises of Suburban Propane and its Subsidiaries;

provided, however, that Suburban Propane shall not be required to preserve any
such right, license or franchise, or the corporate, partnership or other
existence of any of its Subsidiaries, if its Board of Supervisors shall
determine that the preservation thereof is no longer desirable in the conduct of
the business of Suburban Propane and its Subsidiaries, taken as a whole, and
that the loss thereof is not adverse in any material respect to the Holders of
the Notes.

Section 4.15 Offer to Repurchase Upon Change of Control.

         (a) Upon the occurrence of a Change of Control, the Issuers will make
an offer (a "Change of Control Offer") to each Holder to repurchase all or any
part (equal to $1,000 or an integral multiple of $1,000) of each Holder's Notes
at a purchase price equal to 101% of the aggregate principal amount thereof plus
accrued and unpaid interest and Liquidated Damages, if any, on the Notes
repurchased, if any, to the date of purchase, subject to the rights of Holders
on the relevant record date to receive interest due on the relevant interest
payment date (the "Change of Control Payment"). Within 30 days following any
Change of Control, the Issuers will mail a notice to each Holder describing the
transaction or transactions that constitute the Change of Control and stating:

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                  (1) that the Change of Control Offer is being made pursuant to
         this Section 4.15 and that all Notes tendered will be accepted for
         payment;

                  (2) the purchase price and the purchase date, which shall be
         no earlier than 30 days and no later than 60 days from the date such
         notice is mailed (the "Change of Control Payment Date");

                  (3) that any Note not tendered will continue to accrue
         interest;

                  (4) that, unless the Issuers default in the payment of the
         Change of Control Payment, all Notes accepted for payment pursuant to
         the Change of Control Offer will cease to accrue interest after the
         Change of Control Payment Date;

                  (5) that Holders electing to have any Notes purchased pursuant
         to a Change of Control Offer will be required to surrender the Notes,
         with the form entitled "Option of Holder to Elect Purchase" attached to
         the Notes completed, or transfer by book-entry transfer, to the Paying
         Agent at the address specified in the notice prior to the close of
         business on the third Business Day preceding the Change of Control
         Payment Date;

                  (6) that Holders will be entitled to withdraw their election
         if the Paying Agent receives, not later than the close of business on
         the second Business Day preceding the Change of Control Payment Date, a
         telegram, telex, facsimile transmission or letter setting forth the
         name of the Holder, the principal amount of Notes delivered for
         purchase, and a statement that such Holder is withdrawing his election
         to have the Notes purchased; and

                  (7) that Holders whose Notes are being purchased only in part
         will be issued new Notes equal in principal amount to the unpurchased
         portion of the Notes surrendered, which unpurchased portion must be
         equal to $1,000 in principal amount or an integral multiple thereof.

         The Issuers will comply with the requirements of Rule 14e-1 under the
Exchange Act and any other securities laws and regulations thereunder to the
extent those laws and regulations are applicable in connection with the
repurchase of the Notes as a result of a Change in Control. To the extent that
the provisions of any securities laws or regulations conflict with the
provisions of this Section 4.15, the Issuers will comply with the applicable
securities laws and regulations and will not be deemed to have breached its
obligations under this Section 4.15 by virtue of such compliance.

         (b) On the Change of Control Payment Date, the Issuers will, to the
extent lawful:

                  (1) accept for payment all Notes or portions of Notes properly
         tendered pursuant to the Change of Control Offer;

                  (2) deposit with the Paying Agent an amount equal to the
         Change of Control Payment in respect of all Notes or portions of Notes
         properly tendered; and

                  (3) deliver or cause to be delivered to the Trustee the Notes
         so accepted together with an Officers' Certificate stating the
         aggregate principal amount of Notes or portions of Notes being
         purchased by the Issuers.

         The Paying Agent will promptly mail (but in any case not later than
five Business Days after the Change of Control Payment Date) to each Holder of
Notes properly tendered the Change of Control Payment for such Notes, and the
Trustee will promptly authenticate and mail (or cause to be transferred

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by book entry) to each Holder a new Note equal in principal amount to any
unpurchased portion of the Notes surrendered, if any; provided that each new
Note will be in a principal amount of $1,000 or an integral multiple of $1,000.

         (c) Notwithstanding anything to the contrary in this Section 4.15, the
Issuers will not be required to make a Change of Control Offer upon a Change of
Control if (1) a third party makes the Change of Control Offer in the manner, at
the times and otherwise in compliance with the requirements set forth in this
Section 4.15 and purchases all Notes validly tendered and not withdrawn under
the Change of Control Offer, or (2) notice of redemption has been given pursuant
to Section 3.07 hereof, unless and until there is a default in payment of the
applicable redemption price.

Section 4.16 Limitation on Sale and Leaseback Transactions.

         Suburban Propane will not, and will not permit any of its Restricted
Subsidiaries to, enter into any sale and leaseback transaction; provided that
Suburban Propane or any Restricted Subsidiary may enter into a sale and
leaseback transaction if Suburban Propane or that Restricted Subsidiary would be
permitted under this Indenture to incur Indebtedness secured by a Lien on the
property in an amount equal to the Attributable Debt with respect to such sale
and leaseback transaction.

Section 4.17 Limitation on Issuances of Guarantees of Indebtedness.

         Suburban Propane will not permit any of its Restricted Subsidiaries,
directly or indirectly, to Guarantee or pledge any assets to secure the payment
of any other Indebtedness of Suburban Propane unless such Restricted Subsidiary
simultaneously executes and delivers a supplemental indenture to this Indenture
providing for the Guarantee of the payment of the Notes by such Restricted
Subsidiary. The Subsidiary Guarantee will be (1) senior to such Restricted
Subsidiary's Guarantee of or pledge to secure such other Indebtedness if such
other Indebtedness is subordinated to the Notes; or (2) pari passu with such
Restricted Subsidiary's Guarantee of or pledge to secure such other Indebtedness
if such other Indebtedness is not subordinated to the Notes.

         The Subsidiary Guarantee of a Guarantor will be automatically and
unconditionally released:

                  (1) in connection with any sale or other disposition of all or
         substantially all of the assets of that Guarantor (including by way of
         merger or consolidation) to a Person that is not (either before or
         after giving effect to such transaction) Suburban Propane or a
         Restricted Subsidiary of Suburban Propane, if the sale or other
         disposition does not violate Sections 3.10 or 4.10 of this Indenture;

                  (2) in connection with any sale or other disposition of all of
         the Capital Stock of that Guarantor to a Person that is not (either
         before or after giving effect to such transaction) Suburban Propane or
         a Restricted Subsidiary of Suburban Propane, if the sale or other
         disposition does not violate Sections 3.10 or 4.10 of this Indenture;

                  (3) if Suburban Propane designates any Restricted Subsidiary
         that is a Guarantor to be an Unrestricted Subsidiary in accordance with
         the applicable provisions of this Indenture;

                  (4) upon legal defeasance or satisfaction and discharge of the
         Notes as provided in Section 8.02 and Article 11 of this Indenture; or

                  (5) if such Guarantor is released from the underlying
         guarantee of Indebtedness giving rise to the execution of a Subsidiary
         Guarantee.

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         The form of the Subsidiary Guarantee and the related form of
supplemental indenture is attached hereto as Exhibits E and F, respectively.
Notwithstanding the foregoing, if one or both of the Issuers Guarantee
Indebtedness incurred by any of their Restricted Subsidiaries, such Guarantee by
the Issuers will not require any Restricted Subsidiary to provide a Subsidiary
Guarantee for the Notes.

Section 4.18 Payments for Consent.

         Suburban Propane will not, and will not permit any of its Restricted
Subsidiaries to, directly or indirectly, pay or cause to be paid any
consideration to or for the benefit of any Holder of Notes for or as an
inducement to any consent, waiver or amendment of any of the terms or provisions
of this Indenture or the Notes unless such consideration is offered to be paid
and is paid to all Holders of the Notes that consent, waive or agree to amend in
the time frame set forth in the solicitation documents relating to such consent,
waiver or agreement.

Section 4.19 Existence of Corporate Co-Issuer.

         Suburban Propane will always maintain, directly or indirectly, a
wholly-owned Restricted Subsidiary of Suburban Propane organized as a
corporation under the laws of the United States of America, any state thereof or
the District of Columbia that will serve as a co-obligor of the Notes unless
Suburban Propane is itself a corporation under the laws of the United States of
America, any state thereof or the District of Columbia.

Section 4.20 Designation of Restricted and Unrestricted Subsidiaries.

         The Board of Supervisors of Suburban Propane may designate any of its
Restricted Subsidiaries, other than the Operating Partnership or Finance Corp.,
to be an Unrestricted Subsidiary if that designation would not cause a Default.
That designation will only be permitted if the Investment would be permitted at
that time and if the Restricted Subsidiary otherwise meets the definition of an
Unrestricted Subsidiary. The Board of Supervisors may redesignate any
Unrestricted Subsidiary to be a Restricted Subsidiary if that redesignation
would not cause a Default.

         Any designation of a Subsidiary of Suburban Propane as an Unrestricted
Subsidiary will be evidenced to the Trustee by filing with the Trustee a
certified copy of the Board Resolution giving effect to such designation and an
Officers' Certificate certifying that such designation complied with the
preceding conditions. If, at any time, any Unrestricted Subsidiary would fail to
meet the preceding requirements as an Unrestricted Subsidiary, it will
thereafter cease to be an Unrestricted Subsidiary for purposes of this Indenture
and any Indebtedness of such Subsidiary will be deemed to be incurred by a
Restricted Subsidiary of Suburban Propane as of such date and, if such
Indebtedness is not permitted to be incurred as of such date under Section 4.09
hereof, Suburban Propane will be in default of such covenant. The Board of
Supervisors of Suburban Propane may at any time designate any Unrestricted
Subsidiary to be a Restricted Subsidiary; provided that such designation will be
deemed to be an incurrence of Indebtedness by a Restricted Subsidiary of
Suburban Propane of any outstanding Indebtedness of such Unrestricted Subsidiary
and such designation will only be permitted if (1) such Indebtedness is
permitted by Section 4.09 hereof, calculated on a pro forma basis as if such
designation had occurred at the beginning of the four-quarter reference period;
and (2) no Default or Event of Default would be in existence following such
designation.

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                                   ARTICLE 5.
                                   SUCCESSORS

Section 5.01 Merger, Consolidation, or Sale of Assets.

         Neither of the Issuers may , directly or indirectly: (1) consolidate or
merge with or into another Person (whether or such Issuer is the surviving
entity); or (2) sell, assign, transfer, convey or otherwise dispose of all or
substantially all of the properties or assets of such Issuer and its Restricted
Subsidiaries taken as a whole, in one or more related transactions, to another
Person; unless:

                  (1) either:

                           (a) such Issuer is the surviving entity; or

                           (b) (i) the Person formed by or surviving any such
         consolidation or merger with Suburban Propane (if other than Suburban
         Propane) or to which such sale, assignment, transfer, conveyance or
         other disposition has been made is a corporation, partnership or
         limited liability company organized or existing under the laws of the
         United States, any state of the United States or the District of
         Columbia; or (ii) the Person formed by or surviving any such
         consolidation or merger with Finance Corp. (if other than Finance
         Corp.) or to which such sale, assignment, transfer, conveyance or other
         disposition has been made is a corporation organized under the laws of
         the United States, any state of the United States or the District of
         Columbia;

                  (2) the Person formed by or surviving any such consolidation
         or merger (if other than such Issuer) or the Person to which such sale,
         assignment, transfer, conveyance or other disposition has been made
         assumes all the obligations of such Issuer under the Notes, this
         Indenture and the Registration Rights Agreement pursuant to agreements
         reasonably satisfactory to the Trustee;

                  (3) immediately after such transaction, no Default or Event of
         Default exists; and

                  (4) such Issuer or the Person formed by or surviving any such
         consolidation or merger (if other than such Issuer), or to which such
         sale, assignment, transfer, conveyance or other disposition has been
         made will, on the date of such transaction after giving pro forma
         effect thereto and any related financing transactions as if the same
         had occurred at the beginning of the applicable four-quarter period, be
         permitted to incur at least $1.00 of additional Indebtedness pursuant
         to the Consolidated Fixed Charge Coverage Ratio test set forth in
         Section 4.09(a) hereof.

         If Suburban Propane engages in a merger, consolidation or sale of
assets in accordance with the provisions described above, Suburban Propane or
the Person formed by or surviving such transaction will comply with Section 4.20
hereof.

         In addition, the Issuers will not, directly or indirectly, lease all or
substantially all of their properties or assets, in one or more related
transactions, to any other Person. This Section 5.01 will not apply to:

                  (1) a merger of Suburban Propane with an Affiliate solely for
         the purpose of re-forming Suburban Propane in another jurisdiction; and

                  (2) any sale, transfer, assignment, conveyance, lease or other
         disposition of assets between or among Suburban Propane and its
         Restricted Subsidiaries.

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         Notwithstanding the foregoing, Suburban Propane shall be permitted to
reorganize as a corporation in accordance with the terms of this Indenture,
provided that Suburban Propane shall have delivered to the Trustee an Opinion of
Counsel in the United States reasonably acceptable to the Trustee confirming
that such reorganization is not adverse to Holders of the Notes (it being
recognized that such reorganization shall not be deemed adverse to the Holders
of the Notes solely because (i) of the accrual of deferred tax liabilities
resulting from such reorganization or (ii) the successor or surviving
corporation (a) is subject to income tax as a corporate entity or (b) is
considered to be an "includible corporation" of an affiliated group of
corporations within the meaning of the Internal Revenue Code of 1986, as
amended, or any similar state or local law).

Section 5.02 Successor Corporation Substituted.

         Upon any consolidation or merger, or any sale, assignment, transfer,
conveyance or other disposition of all or substantially all of the assets of
Suburban Propane in a transaction that is subject to, and that complies with the
provisions of, Section 5.01 hereof, the successor entity formed by such
consolidation or into or with which Suburban Propane is merged or to which such
sale, assignment, transfer, conveyance or other disposition is made shall
succeed to, and be substituted for (so that from and after the date of such
consolidation, merger, sale, conveyance or other disposition, the provisions of
this Indenture referring to "Suburban Propane" shall refer instead to the
successor entity and not Suburban Propane), and may exercise every right and
power of Suburban Propane under this Indenture with the same effect as if such
successor entity had been named as Suburban Propane herein; provided, however,
that the predecessor Suburban Propane shall not be relieved from the obligation
to pay the principal of and interest on the Notes except in the case of a sale
of all of Suburban Propane's assets in a transaction that is subject to, and
that complies with the provisions of, Section 5.01 hereof.

                                   ARTICLE 6.
                              DEFAULTS AND REMEDIES

Section 6.01 Events of Default.

         Each of the following is an "Event of Default":

                  (1) Suburban Propane defaults for 30 days in the payment when
         due of interest on, or Liquidated Damages with respect to, the Notes;

                  (2) Suburban Propane defaults in the payment when due (at
         maturity, upon redemption or otherwise) of the principal of, or
         premium, if any, on the Notes;

                  (3) failure by Suburban Propane or any of its Restricted
         Subsidiaries to comply with any other term, covenant or agreement
         contained in the Notes or this Indenture, other than a default
         specified in either clause (1) or (2) above, and the default continues
         for a period of 45 days after written notice of default requiring the
         Issuers to remedy the same is given to Suburban Propane by the Trustee
         or by Holders of 25% in aggregate principal amount of the Notes then
         outstanding;

                  (4) the failure to pay at final maturity (giving effect to any
         applicable grace periods and any extensions thereof) the stated
         principal amount of any Indebtedness of Suburban Propane or any
         Restricted Subsidiary of Suburban Propane, or the acceleration of the
         final Stated Maturity of any such Indebtedness if the aggregate
         principal amount of such Indebtedness, together with the principal
         amount of any other such Indebtedness in default for failure to pay
         principal at final Stated Maturity or which has been accelerated,
         aggregates $10.0 million or more at any time;

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                  (5) [Reserved];

                  (6) a final judgment or judgments, which is or are
         non-appealable and non-reviewable or which has or have not been stayed
         pending appeal or review or as to which all rights to appeal or review
         have expired or been exhausted, shall be rendered against Suburban
         Propane or any of its Restricted Subsidiaries; provided such judgment
         or judgments requires or require the payment of money in excess of
         $10.0 million in the aggregate and is not covered by insurance or
         discharged or stayed pending appeal or review within 60 days after
         entry of such judgment; in the event of a stay, the judgment shall not
         be discharged within 30 days after the stay expires; and

                  (7) Suburban Propane, Finance Corp. or any Significant
         Subsidiary of Suburban Propane pursuant to or within the meaning of
         Bankruptcy Law:

                           (A) commences a voluntary case,

                           (B) consents to the entry of an order for relief
                  against it in an involuntary case,

                           (C) consents to the appointment of a custodian of it
                  or for all or substantially all of its property,

                           (D) makes a general assignment for the benefit of its
                  creditors, or

                           (E) generally is not paying its debts as they become
                  due; or

                  (8) a court of competent jurisdiction enters an order or
         decree under any Bankruptcy Law that:

                           (A) is for relief against Suburban Propane, Finance
                  Corp. or any Significant Subsidiary of Suburban Propane in an
                  involuntary case;

                           (B) appoints a custodian of Suburban Propane, Finance
                  Corp. or any Significant Subsidiary of Suburban Propane or for
                  all or substantially all of the property of Suburban Propane,
                  Finance Corp. or any Significant Subsidiary of Suburban
                  Propane; or

                           (C) orders the liquidation of Suburban Propane,
                  Finance Corp. or any Significant Subsidiary of Suburban
                  Propane;

                  and the order or decree remains unstayed and in effect for 60
                  consecutive days.

Section 6.02 Acceleration.

         In the case of an Event of Default specified in clause (7) or (8) of
Section 6.01 hereof, with respect to Suburban Propane, Finance Corp. or any
Significant Subsidiary of Suburban Propane, all outstanding Notes will become
due and payable immediately without further action or notice. If any other Event
of Default occurs and is continuing, the Trustee or the Holders of at least 25%
in principal amount of the then outstanding Notes may declare all the Notes to
be due and payable immediately.

         Upon any such declaration, the Notes shall become due and payable
immediately.

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         The Holders of a majority in aggregate principal amount of the then
outstanding Notes by written notice to the Trustee may, on behalf of all of the
Holders, rescind an acceleration or waive any existing Default or Event of
Default and its consequences:

                  (1) if the rescission would not conflict with any judgment or
         decree;

                  (2) if all existing Events of Default (except nonpayment of
         principal, interest or premium or Liquidated Damages, if any, that has
         become due solely because of the acceleration) have been cured or
         waived;

                  (3) to the extent the payment of such interested is lawful, if
         interest on overdue installments of interest and overdue principal that
         has become due otherwise than by such declaration of acceleration has
         been paid;

                  (4) if the Issuers have paid the Trustee its reasonable
         compensation and reimbursed the Trustee for its expenses, disbursements
         and advances; and

                  (5) in the event of the cure or waiver of an Event of Default
         of the type described in clause (7) or (8) of Section 6.01, if the
         Trustee shall have received an Officers' Certificate stating that such
         Event of Default has been cured or waived.

         No such rescission shall affect any subsequent Default or impair any
right consequent thereto.

Section 6.03 Other Remedies.

         If an Event of Default occurs and is continuing, the Trustee may pursue
any available remedy to collect the payment of principal, premium and Liquidated
Damages, if any, and interest on the Notes or to enforce the performance of any
provision of the Notes or this Indenture.

         The Trustee may maintain a proceeding even if it does not possess any
of the Notes or does not produce any of them in the proceeding. A delay or
omission by the Trustee or any Holder of a Note in exercising any right or
remedy accruing upon an Event of Default shall not impair the right or remedy or
constitute a waiver of or acquiescence in the Event of Default. All remedies are
cumulative to the extent permitted by law.

Section 6.04 Waiver of Past Defaults.

         Holders of not less than a majority in aggregate principal amount of
the then outstanding Notes by notice to the Trustee may on behalf of the Holders
of all of the Notes waive an existing Default or Event of Default and its
consequences hereunder, except a continuing Default or Event of Default in the
payment of the principal of, premium and Liquidated Damages, if any, or interest
on, the Notes (including in connection with an offer to purchase); provided,
however, that the Holders of a majority in aggregate principal amount of the
then outstanding Notes may rescind an acceleration and its consequences,
including any related payment default that resulted from such acceleration. Upon
any such waiver, such Default shall cease to exist, and any Event of Default
arising therefrom shall be deemed to have been cured for every purpose of this
Indenture; but no such waiver shall extend to any subsequent or other Default or
impair any right consequent thereon.

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Section 6.05 Control by Majority.

         Holders of a majority in principal amount of the then outstanding Notes
may direct the time, method and place of conducting any proceeding for
exercising any remedy available to the Trustee or exercising any trust or power
conferred on it. However, the Trustee may refuse to follow any direction that
conflicts with law or this Indenture that the Trustee determines may be unduly
prejudicial to the rights of other Holders of Notes or that may involve the
Trustee in personal liability.

Section 6.06 Limitation on Suits.

         A Holder may pursue a remedy with respect to this Indenture or the
Notes only if:

                  (1) the Holder of a Note gives to the Trustee written notice
         that an Event of Default is continuing;

                  (2) Holders of at least 25% in principal amount of the then
         outstanding Notes make a written request to the Trustee to pursue the
         remedy;

                  (3) such Holder or Holders offer and, if requested, provide to
         the Trustee security or indemnity reasonably satisfactory to the
         Trustee against any loss, liability or expense;

                  (4) the Trustee does not comply with the request within 60
         days after receipt of the request and the offer of security or
         indemnity, if requested; and

                  (5) during such 60-day period the Holders of a majority in
         aggregate principal amount of the then outstanding Notes do not give
         the Trustee a direction inconsistent with the request.

         A Holder of a Note may not use this Indenture to prejudice the rights
of another Holder of a Note or to obtain a preference or priority over another
Holder of a Note.

Section 6.07 Rights of Holders of Notes to Receive Payment.

         Notwithstanding any other provision of this Indenture, the right of any
Holder of a Note to receive payment of principal, premium and Liquidated
Damages, if any, and interest on the Note, on or after the respective due dates
expressed in the Note (including in connection with an offer to purchase), or to
bring suit for the enforcement of any such payment on or after such respective
dates, shall not be impaired or affected without the consent of such Holder.

Section 6.08 Collection Suit by Trustee.

         If an Event of Default specified in Section 6.01(1) or (2) occurs and
is continuing, the Trustee is authorized to recover judgment in its own name and
as trustee of an express trust against Suburban Propane for the whole amount of
principal of, premium and Liquidated Damages, if any, and interest remaining
unpaid on the Notes and interest on overdue principal and, to the extent lawful,
interest and such further amount as shall be sufficient to cover the costs and
expenses of collection, including the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel.

Section 6.09 Trustee May File Proofs of Claim.

         The Trustee is authorized to file such proofs of claim and other papers
or documents as may be necessary or advisable in order to have the claims of the
Trustee (including any claim for the reasonable

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compensation, expenses, disbursements and advances of the Trustee, its agents
and counsel) and the Holders of the Notes allowed in any judicial proceedings
relative to Suburban Propane (or any other obligor upon the Notes), its
creditors or its property and shall be entitled and empowered to collect,
receive and distribute any money or other property payable or deliverable on any
such claims and any custodian in any such judicial proceeding is hereby
authorized by each Holder to make such payments to the Trustee, and in the event
that the Trustee shall consent to the making of such payments directly to the
Holders, to pay to the Trustee any amount due to it for the reasonable
compensation, expenses, disbursements and advances of the Trustee, its agents
and counsel, and any other amounts due the Trustee under Section 7.07 hereof. To
the extent that the payment of any such compensation, expenses, disbursements
and advances of the Trustee, its agents and counsel, and any other amounts due
the Trustee under Section 7.07 hereof out of the estate in any such proceeding,
shall be denied for any reason, payment of the same shall be secured by a Lien
on, and shall be paid out of, any and all distributions, dividends, money,
securities and other properties that the Holders may be entitled to receive in
such proceeding whether in liquidation or under any plan of reorganization or
arrangement or otherwise. Nothing herein contained shall be deemed to authorize
the Trustee to authorize or consent to or accept or adopt on behalf of any
Holder any plan of reorganization, arrangement, adjustment or composition
affecting the Notes or the rights of any Holder, or to authorize the Trustee to
vote in respect of the claim of any Holder in any such proceeding.

Section 6.10 Priorities.

         If the Trustee collects any money pursuant to this Article 6, it shall
pay out the money in the following order:

                  First: to the Trustee, its agents and attorneys for amounts
         due under Section 7.07 hereof, including payment of all compensation,
         expenses and liabilities incurred, and all advances made, by the
         Trustee and the costs and expenses of collection;

                  Second: to Holders of Notes for amounts due and unpaid on the
         Notes for principal, premium and Liquidated Damages, if any, and
         interest, ratably, without preference or priority of any kind,
         according to the amounts due and payable on the Notes for principal,
         premium and Liquidated Damages, if any and interest, respectively; and

                  Third: to Suburban Propane or to such party as a court of
         competent jurisdiction shall direct.

         The Trustee may fix a record date and payment date for any payment to
Holders of Notes pursuant to this Section 6.10.

Section 6.11 Undertaking for Costs.

         In any suit for the enforcement of any right or remedy under this
Indenture or in any suit against the Trustee for any action taken or omitted by
it as a Trustee, a court in its discretion may require the filing by any party
litigant in the suit of an undertaking to pay the costs of the suit, and the
court in its discretion may assess reasonable costs, including reasonable
attorneys' fees and expenses, against any party litigant in the suit, having due
regard to the merits and good faith of the claims or defenses made by the party
litigant. This Section 6.11 does not apply to a suit by the Trustee, a suit by a
Holder of a Note pursuant to Section 6.07 hereof, or a suit by Holders of more
than 10% in principal amount of the then outstanding Notes.

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                                   ARTICLE 7.
                                     TRUSTEE

Section 7.01 Duties of Trustee.

         (a) If an Event of Default has occurred and is continuing, the Trustee
will exercise such of the rights and powers vested in it by this Indenture, and
use the same degree of care and skill in its exercise, as a prudent person would
exercise or use under the circumstances in the conduct of such person's own
affairs.

         (b) Except during the continuance of an Event of Default:

                  (1) the duties of the Trustee will be determined solely by the
         express provisions of this Indenture and the Trustee need perform only
         those duties that are specifically set forth in this Indenture and no
         others, and no implied covenants or obligations shall be read into this
         Indenture against the Trustee; and

                  (2) in the absence of bad faith on its part, the Trustee may
         conclusively rely, as to the truth of the statements and the
         correctness of the opinions expressed therein, upon certificates or
         opinions furnished to the Trustee and conforming to the requirements of
         this Indenture. However, in the case of certificates or opinions
         specifically required by any provision of this Indenture to be
         furnished to the Trustee, the Trustee will examine the certificates and
         opinions to determine whether or not they conform to the requirements
         of this Indenture.

         (c) The Trustee may not be relieved from liabilities for its own
negligent action, its own negligent failure to act, or its own willful
misconduct, except that:

                  (1) this paragraph does not limit the effect of paragraph (b)
         of this Section 7.01;

                  (2) the Trustee will not be liable for any error of judgment
         made in good faith by a Responsible Officer, unless it is proved that
         the Trustee was negligent in ascertaining the pertinent facts; and

                  (3) the Trustee will not be liable with respect to any action
         it takes or omits to take in good faith in accordance with a direction
         received by it pursuant to Section 6.05 hereof.

         (d) Whether or not therein expressly so provided, every provision of
this Indenture that in any way relates to the Trustee is subject to paragraphs
(a), (b), and (c) of this Section 7.01.

         (e) No provision of this Indenture will require the Trustee to expend
or risk its own funds or incur any liability. The Trustee will be under no
obligation to exercise any of its rights and powers under this Indenture at the
request of any Holders, unless such Holder has offered to the Trustee security
and indemnity satisfactory to it against any loss, liability or expense.

         (f) The Trustee will not be liable for interest on any money received
by it except as the Trustee may agree in writing with Suburban Propane. Money
held in trust by the Trustee need not be segregated from other funds except to
the extent required by law.

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Section 7.02 Rights of Trustee.

         (a) The Trustee may conclusively rely upon any document believed by it
to be genuine and to have been signed or presented by the proper Person. The
Trustee need not investigate any fact or matter stated in the document.

         (b) Before the Trustee acts or refrains from acting, it may require an
Officers' Certificate or an Opinion of Counsel or both. The Trustee will not be
liable for any action it takes or omits to take in good faith in reliance on
such Officers' Certificate or Opinion of Counsel. The Trustee may consult with
counsel and the written advice of such counsel or any Opinion of Counsel will be
full and complete authorization and protection from liability in respect of any
action taken, suffered or omitted by it hereunder in good faith and in reliance
thereon.

         (c) The Trustee may act through its attorneys and agents and will not
be responsible for the misconduct or negligence of any agent appointed with due
care.

         (d) The Trustee will not be liable for any action it takes or omits to
take in good faith that it believes to be authorized or within the rights or
powers conferred upon it by this Indenture.

         (e) Unless otherwise specifically provided in this Indenture, any
demand, request, direction or notice from Suburban Propane will be sufficient if
signed by an Officer of Suburban Propane.

         (f) The Trustee will be under no obligation to exercise any of the
rights or powers vested in it by this Indenture at the request or direction of
any of the Holders unless such Holders have offered to the Trustee reasonable
security or indemnity against the costs, expenses and liabilities that might be
incurred by it in compliance with such request or direction.

         (g) The Trustee shall not be charged with knowledge of any Default or
Event of Default under Section 6.01 (other than under Section 6.01(a) (subject
to the following sentence) or Section 6.01(b)) unless either (i) a Responsible
Officer shall have actual knowledge thereof, or (ii) the Trustee shall have
received notice thereof in accordance with Section 12.02 from either of the
Issuers or any Holder of the Notes. The Trustee shall not be charged with
knowledge of the Issuers' obligation to pay Liquidated Damages, or the cessation
of such obligation, unless the Trustee receives written notice thereof from the
either of the Issuers or any Holder.

         (h) The rights, privileges, protections, immunities and benefits given
to the Trustee, including, without limitation, its right to be indemnified, are
extended to, and shall be enforceable by, the Trustee in each of its capacities
hereunder, and each agent, custodian and other Person employed to act hereunder.

         The Trustee may request that the Issuers deliver an Officers'
Certificate setting forth the names of individuals and/or titles of officers
authorized at such time to take specified actions pursuant to this Indenture,
which Officers' Certificate may be signed by any person specified as so
authorized in any such certificate previously delivered and not superseded.

Section 7.03 Individual Rights of Trustee.

         The Trustee in its individual or any other capacity may become the
owner or pledgee of Notes and may otherwise deal with Suburban Propane or any
Affiliate of Suburban Propane with the same rights it would have if it were not
Trustee. However, in the event that the Trustee acquires any conflicting
interest it must eliminate such conflict within 90 days, apply to the Commission
for permission to

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continue as trustee (if this Indenture has been qualified under the TIA) or
resign. Any Agent may do the same with like rights and duties. The Trustee is
also subject to Sections 7.10 and 7.11 hereof.

Section 7.04 Trustee's Disclaimer.

         The Trustee will not be responsible for and makes no representation as
to the validity or adequacy of this Indenture or the Notes, it shall not be
accountable for Suburban Propane's use of the proceeds from the Notes or any
money paid to Suburban Propane or upon Suburban Propane's direction under any
provision of this Indenture, it will not be responsible for the use or
application of any money received by any Paying Agent other than the Trustee,
and it will not be responsible for any statement or recital herein or any
statement in the Notes or any other document in connection with the sale of the
Notes or pursuant to this Indenture other than its certificate of
authentication.

Section 7.05 Notice of Defaults.

         If a Default or Event of Default occurs and is continuing and if it is
known to the Trustee, the Trustee will mail to Holders of Notes a notice of the
Default or Event of Default within 90 days after it occurs. Except in the case
of a Default or Event of Default in payment of principal of, premium or
Liquidated Damages, if any, or interest on, any Note, the Trustee may withhold
the notice if and so long as a committee of its Responsible Officers in good
faith determines that withholding the notice is in the interests of the Holders
of the Notes.

Section 7.06 Reports by Trustee to Holders of the Notes.

         (a) Within 60 days after each May 15 beginning with the May 15
following the date of this Indenture, and for so long as Notes remain
outstanding, the Trustee will mail to the Holders of the Notes a brief report
dated as of such reporting date that complies with TIA ss. 313(a) (but if no
event described in TIA ss. 313(a) has occurred within the twelve months
preceding the reporting date, no report need be transmitted). The Trustee also
will comply with TIA ss. 313(b)(2). The Trustee will also transmit by mail all
reports as required by TIA ss. 313(c).

         (b) A copy of each report at the time of its mailing to the Holders of
Notes will be mailed by the Trustee to Suburban Propane and filed by the Trustee
with the Commission and each stock exchange on which the Notes are listed in
accordance with TIA ss. 313(d). Suburban Propane will promptly notify the
Trustee when the Notes are listed on any stock exchange.

Section 7.07 Compensation and Indemnity.

         (a) Suburban Propane will pay to the Trustee from time to time
reasonable compensation for its acceptance of this Indenture and services
hereunder. The Trustee's compensation will not be limited by any law on
compensation of a trustee of an express trust. Suburban Propane will reimburse
the Trustee promptly upon request for all reasonable disbursements, advances and
expenses incurred or made by it in addition to the compensation for its
services. Such expenses will include the reasonable compensation, disbursements
and expenses of the Trustee's agents and counsel.

         (b) Suburban Propane and Finance Corp., jointly and severally, will
indemnify the Trustee against any and all losses, liabilities, claims, damages
or expenses incurred by it arising out of or in connection with the acceptance
or administration of its duties under this Indenture, including the costs and
expenses of enforcing this Indenture against Suburban Propane and Finance Corp.
(including this Section 7.07) and defending itself against any claim (whether
asserted by Suburban Propane, Finance Corp., any Holder or any other Person) or
liability in connection with the exercise or performance of any of its

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<PAGE>

powers or duties hereunder, except to the extent any such loss, liability claim,
damages or expense may be attributable to its own negligence or bad faith. The
Trustee will notify Suburban Propane and Finance Corp. promptly of any claim for
which it may seek indemnity. Failure by the Trustee to so notify Suburban
Propane and Finance Corp. will not relieve Suburban Propane or Finance Corp. of
their obligations hereunder. Suburban Propane and Finance Corp. will defend the
claim and the Trustee will cooperate in the defense. The Trustee may have
separate counsel and Suburban Propane will pay the reasonable fees and expenses
of such counsel. Neither Suburban Propane nor Finance Corp. need pay for any
settlement made without its consent, which consent will not be unreasonably
withheld.

         (c) The obligations of the Issuers under this Section 7.07 will survive
the satisfaction and discharge of this Indenture.

         (d) To secure the Issuers' payment obligations in this Section 7.07,
the Trustee will have a Lien prior to the Notes on all money or property held or
collected by the Trustee, except that held in trust to pay principal and
interest on particular Notes. Such Lien will survive the satisfaction and
discharge of this Indenture.

         (e) When the Trustee incurs expenses or renders services after an Event
of Default specified in Section 6.01(7) or (8) hereof occurs, the expenses and
the compensation for the services (including the fees and expenses of its agents
and counsel) are intended to constitute expenses of administration under any
Bankruptcy Law.

         (f) The Trustee will comply with the provisions of TIAss. 313(b)(2) to
the extent applicable.

Section 7.08 Replacement of Trustee.

         (a) A resignation or removal of the Trustee and appointment of a
successor Trustee will become effective only upon the successor Trustee's
acceptance of appointment as provided in this Section 7.08.

         (b) The Trustee may resign in writing at any time and be discharged
from the trust hereby created by so notifying Suburban Propane. The Holders of a
majority in principal amount of the then outstanding Notes may remove the
Trustee by so notifying the Trustee and Suburban Propane in writing. Suburban
Propane may remove the Trustee if:

                  (1) the Trustee fails to comply with Section 7.10 hereof;

                  (2) the Trustee is adjudged a bankrupt or an insolvent or an
         order for relief is entered with respect to the Trustee under any
         Bankruptcy Law;

                  (3) a custodian or public officer takes charge of the Trustee
         or its property; or

                  (4) the Trustee becomes incapable of acting.

         (c) If the Trustee resigns or is removed or if a vacancy exists in the
office of Trustee for any reason, Suburban Propane will promptly appoint a
successor Trustee. Within one year after the successor Trustee takes office, the
Holders of a majority in principal amount of the then outstanding Notes may
appoint a successor Trustee to replace the successor Trustee appointed by
Suburban Propane.

         (d) If a successor Trustee does not take office within 60 days after
the retiring Trustee resigns or is removed, the retiring Trustee, Suburban
Propane or the Holders of at least 10% in principal amount of

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<PAGE>

the then outstanding Notes may petition, at the expense of the Issuers, any
court of competent jurisdiction for the appointment of a successor Trustee.

         (e) If the Trustee, after written request by any Holder who has been a
Holder for at least six months, fails to comply with Section 7.10 hereof, such
Holder may petition any court of competent jurisdiction for the removal of the
Trustee and the appointment of a successor Trustee.

         (f) A successor Trustee will deliver a written acceptance of its
appointment to the retiring Trustee and to Suburban Propane. Thereupon, the
resignation or removal of the retiring Trustee will become effective, and the
successor Trustee will have all the rights, powers and duties of the Trustee
under this Indenture. The successor Trustee will mail a notice of its succession
to Holders. The retiring Trustee will promptly transfer all property held by it
as Trustee to the successor Trustee, provided all sums owing to the Trustee
hereunder have been paid and subject to the Lien provided for in Section 7.07
hereof. Notwithstanding replacement of the Trustee pursuant to this Section
7.08, Suburban Propane's obligations under Section 7.07 hereof will continue for
the benefit of the retiring Trustee.

Section 7.09 Successor Trustee by Merger, etc.

         If the Trustee consolidates, merges or converts into, or transfers all
or substantially all of its corporate trust business to, another corporation,
the successor corporation without any further act will be the successor Trustee.

Section 7.10 Eligibility; Disqualification.

         There will at all times be a Trustee hereunder that is a corporation
organized and doing business under the laws of the United States of America or
of any state thereof that is authorized under such laws to exercise corporate
trustee power, that is subject to supervision or examination by federal or state
authorities and that has a combined capital and surplus of at least $100.0
million as set forth in its most recent published annual report of condition.

         This Indenture will always have a Trustee who satisfies the
requirements of TIA ss. 310(a)(1), (2) and (5). The Trustee is subject to TIA
ss. 310(b).

Section 7.11 Preferential Collection of Claims Against Suburban Propane.

         The Trustee is subject to TIA ss. 311(a), excluding any creditor
relationship listed in TIA ss. 311(b). A Trustee who has resigned or been
removed shall be subject to TIA ss. 311(a) to the extent indicated therein.

                                   ARTICLE 8.
                    LEGAL DEFEASANCE AND COVENANT DEFEASANCE

Section 8.01 Option to Effect Legal Defeasance or Covenant Defeasance.

         Suburban Propane may, at the option of its Board of Supervisors
evidenced by a resolution set forth in an Officers' Certificate, and at any
time, elect to have either Section 8.02 or 8.03 hereof be applied to all
outstanding Notes upon compliance with the conditions set forth below in this
Article 8.

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Section 8.02 Legal Defeasance and Discharge.

         Upon Suburban Propane's exercise under Section 8.01 hereof of the
option applicable to this Section 8.02, the Issuers will, subject to the
satisfaction of the conditions set forth in Section 8.04 hereof, be deemed to
have been discharged from their obligations with respect to all outstanding
Notes on the date the conditions set forth below are satisfied (hereinafter,
"Legal Defeasance"). For this purpose, Legal Defeasance means that the Issuers
will be deemed to have paid and discharged the entire Indebtedness represented
by the outstanding Notes, which will thereafter be deemed to be "outstanding"
only for the purposes of Section 8.05 hereof and the other Sections of this
Indenture referred to in clauses (1) and (2) below, and to have satisfied all
their other obligations under such Notes and this Indenture (and the Trustee, on
demand of and at the expense of Suburban Propane, shall execute proper
instruments acknowledging the same), except for the following provisions which
will survive until otherwise terminated or discharged hereunder:

                  (1) the rights of Holders of outstanding Notes to receive
         payments in respect of the principal of, or interest or premium and
         Liquidated Damages, if any, on such Notes when such payments are due
         from the trust referred to in Section 8.04 hereof;

                  (2) Suburban Propane's obligations with respect to such Notes
         under Article 2 and Section 4.02 hereof;

                  (3) the rights, powers, trusts, duties and immunities of the
         Trustee hereunder and the Issuers' obligations in connection therewith;
         and

                  (4) this Article 8.

         Subject to compliance with this Article 8, Suburban Propane may
exercise its option under this Section 8.02 notwithstanding the prior exercise
of its option under Section 8.03 hereof.

Section 8.03 Covenant Defeasance.

         Upon Suburban Propane's exercise under Section 8.01 hereof of the
option applicable to this Section 8.03, the Issuers will, subject to the
satisfaction of the conditions set forth in Section 8.04 hereof, be released
from their obligations under the covenants contained in Sections 3.10, 4.03,
4.05, 4.07, 4.08, 4.09, 4.10, 4.11, 4.12, 4.13, 4.14 (except with respect to the
existence of each Issuer), 4.15, 4.16, 4.17, 4.18, 4.19 and 4.20 hereof and
clause (4) of Section 5.01 hereof with respect to the outstanding Notes on and
after the date the conditions set forth in Section 8.04 hereof are satisfied
(hereinafter, "Covenant Defeasance"), and the Notes will thereafter be deemed
not "outstanding" for the purposes of any direction, waiver, consent or
declaration or act of Holders (and the consequences of any thereof) in
connection with such covenants, but will continue to be deemed "outstanding" for
all other purposes hereunder (it being understood that such Notes will not be
deemed outstanding for accounting purposes). For this purpose, Covenant
Defeasance means that, with respect to the outstanding Notes, the Issuers may
omit to comply with and will have no liability in respect of any term, condition
or limitation set forth in any such covenant, whether directly or indirectly, by
reason of any reference elsewhere herein to any such covenant or by reason of
any reference in any such covenant to any other provision herein or in any other
document and such omission to comply will not constitute a Default or an Event
of Default under Section 6.01 hereof, but, except as specified above, the
remainder of this Indenture and such Notes will be unaffected thereby. In
addition, upon Suburban Propane's exercise under Section 8.01 hereof of the
option applicable to this Section 8.03 hereof, subject to the satisfaction of
the conditions set forth in Section 8.04 hereof, Section 6.01(3) through 6.01(6)
hereof will not constitute Events of Default.

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Section 8.04 Conditions to Legal or Covenant Defeasance.

         In order to exercise either Legal Defeasance or Covenant Defeasance
under either Section 8.02 or 8.03 hereof:

                  (1) the Issuers must irrevocably deposit with the Trustee, in
         trust, for the benefit of the Holders, cash in U.S. dollars,
         noncallable Government Securities, or a combination thereof, in such
         amounts as will be sufficient, in the opinion of a nationally
         recognized investment bank, appraisal firm, or firm of independent
         public accountants, to pay the principal of, premium and Liquidated
         Damages, if any, and interest on the outstanding Notes on the stated
         date for payment thereof or on the applicable redemption date, as the
         case may be, and the Issuers must specify whether the Notes are being
         defeased to such stated date for payment or to a particular redemption
         date;

                  (2) in the case of an election under Section 8.02 hereof, the
         Issuers must deliver to the Trustee an Opinion of Counsel confirming
         that:

                           (A) the Issuers have received from, or there has been
                  published by, the Internal Revenue Service a ruling; or

                           (B) since the date of this Indenture, there has been
                  a change in the applicable federal income tax law,

                  in either case to the effect that, and based thereon such
                  Opinion of Counsel shall confirm that, the Holders of the
                  outstanding Notes will not recognize income, gain or loss for
                  federal income tax purposes as a result of such Legal
                  Defeasance and will be subject to federal income tax on the
                  same amounts, in the same manner and at the same times as
                  would have been the case if such Legal Defeasance had not
                  occurred;

                  (3) in the case of Covenant Defeasance, the Issuers must
         deliver to the Trustee an Opinion of Counsel confirming that the
         Holders of the outstanding Notes will not recognize income, gain or
         loss for federal income tax purposes as a result of such Covenant
         Defeasance and will be subject to federal income tax on the same
         amounts, in the same manner and at the same times as would have been
         the case if such Covenant Defeasance had not occurred;

                  (4) no Default or Event of Default shall have occurred and be
         continuing on the date of such deposit (other than a Default or Event
         of Default resulting from the borrowing of funds to be applied to such
         deposit and the grant of any Lien securing such borrowing);

                  (5) such Legal Defeasance or Covenant Defeasance will not
         result in a breach or violation of, or constitute a default under, any
         material agreement or instrument (other than this Indenture) to which
         Suburban Propane or any of its Subsidiaries is a party or by which
         Suburban Propane or any of its Subsidiaries is bound;

                  (6) the Issuers must deliver to the Trustee an Officers'
         Certificate stating that the deposit was not made by the Issuers with
         the intent of preferring the Holders of Notes over the other creditors
         of the Issuers with the intent of defeating, hindering, delaying or
         defrauding any other creditors of the Issuers or others;

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<PAGE>

                  (7) the Issuers must deliver to the Trustee an Officers'
         Certificate and an Opinion of Counsel, each stating that all conditions
         precedent provided for or relating to the Legal Defeasance or the
         Covenant Defeasance have been complied with; and

                  (8) the Issuers shall have delivered to the Trustee an Opinion
         of Counsel to the effect that, assuming no intervening bankruptcy of
         the Issuers between the date of deposit and the 91st day following the
         date of deposit and that no Holder is an insider of either of the
         Issuers, after the 91st day following the date of deposit, the trust
         funds will not be subject to the effect of any applicable federal
         bankruptcy, insolvency, reorganization or similar laws affecting
         creditors' rights generally.

         Notwithstanding the foregoing, the Opinion of Counsel required by
clause (2) above with respect to a Legal Defeasance need not be delivered if all
Notes not theretofore delivered to the Trustee for cancellation (1) have become
due and payable or (2) will become due and payable on the maturity date within
one year, or are to be called for redemption within one year, under arrangements
reasonably satisfactory to the trustee for the giving of notice of redemption by
the Trustee in the name, and at the expense, of the Issuers.

Section 8.05 Deposited Money and Government Securities to be Held in Trust;
Other Miscellaneous Provisions.

         Subject to Section 8.06 hereof, all money and noncallable Government
Securities (including the proceeds thereof) deposited with the Trustee (or other
qualifying trustee, collectively for purposes of this Section 8.05, the
"Trustee") pursuant to Section 8.04 hereof in respect of the outstanding Notes
will be held in trust and applied by the Trustee, in accordance with the
provisions of such Notes and this Indenture, to the payment, either directly or
through any Paying Agent (including an Issuer acting as Paying Agent) as the
Trustee may determine, to the Holders of such Notes of all sums due and to
become due thereon in respect of principal, premium and Liquidated Damages, if
any, and interest, but such money need not be segregated from other funds except
to the extent required by law.

         The Issuers will pay and indemnify the Trustee against any tax, fee or
other charge imposed on or assessed against the cash or noncallable Government
Securities deposited pursuant to Section 8.04 hereof or the principal and
interest received in respect thereof other than any such tax, fee or other
charge which by law is for the account of the Holders of the outstanding Notes.

         Notwithstanding anything in this Article 8 to the contrary, the Trustee
will deliver or pay to the Issuers from time to time upon the request of the
Issuers any money or noncallable Government Securities held by it as provided in
Section 8.04 hereof which, in the opinion of a nationally recognized firm of
independent public accountants expressed in a written certification thereof
delivered to the Trustee (which may be the opinion delivered under Section
8.04(1) hereof), are in excess of the amount thereof that would then be required
to be deposited to effect an equivalent Legal Defeasance or Covenant Defeasance.

Section 8.06 Repayment to Suburban Propane.

         Any money deposited with the Trustee or any Paying Agent, or then held
by Suburban Propane, in trust for the payment of the principal of, premium or
Liquidated Damages, if any, or interest on any Note and remaining unclaimed for
two years after such principal, premium or Liquidated Damages, if any, or
interest has become due and payable shall be paid to Suburban Propane on its
request or (if then held by Suburban Propane) will be discharged from such
trust; and the Holder of such Note will thereafter be permitted to look only to
Suburban Propane for payment thereof, and all liability of the Trustee or such
Paying Agent with respect to such trust money, and all liability of the Issuers
as trustee thereof, will

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<PAGE>

thereupon cease; provided, however, that the Trustee or such Paying Agent,
before being required to make any such repayment, may at the expense of Suburban
Propane cause to be published once, in the New York Times and The Wall Street
Journal (national edition), notice that such money remains unclaimed and that,
after a date specified therein, which will not be less than 30 days from the
date of such notification or publication, any unclaimed balance of such money
then remaining will be repaid to the Issuers.

Section 8.07 Reinstatement.

         If the Trustee or Paying Agent is unable to apply any United States
dollars or noncallable Government Securities in accordance with Section 8.02 or
8.03 hereof, as the case may be, by reason of any order or judgment of any court
or governmental authority enjoining, restraining or otherwise prohibiting such
application, then the Issuers' obligations under this Indenture and the Notes
will be revived and reinstated as though no deposit had occurred pursuant to
Section 8.02 or 8.03 hereof until such time as the Trustee or Paying Agent is
permitted to apply all such money in accordance with Section 8.02 or 8.03
hereof, as the case may be; provided, however, that, if Suburban Propane makes
any payment of principal of, premium or Liquidated Damages, if any, or interest
on any Note following the reinstatement of its obligations, Suburban Propane
will be subrogated to the rights of the Holders of such Notes to receive such
payment from the money held by the Trustee or Paying Agent.

                                   ARTICLE 9.
                        AMENDMENT, SUPPLEMENT AND WAIVER

Section 9.01 Without Consent of Holders of Notes.

         Notwithstanding Section 9.02 of this Indenture, the Issuers and the
Trustee may amend or supplement this Indenture or the Notes without the consent
of any Holder of a Note:

                  (1) to cure any ambiguity, defect or inconsistency;

                  (2) to provide for uncertificated Notes in addition to or in
         place of certificated Notes or to alter the provisions of Article 2
         hereof (including the related definitions) in a manner that does not
         materially adversely affect any Holder;

                  (3) to provide for the assumption of the Issuers' obligations
         to the Holders of the Notes by a successor to the Issuers pursuant to
         Article 5 or Article 10 hereof;

                  (4) to make any change that would provide any additional
         rights or benefits to the Holders of the Notes or that does not
         adversely affect the legal rights hereunder of any Holder of the Note;

                  (5) to comply with requirements of the Commission in order to
         effect or maintain the qualification of this Indenture under the TIA;

                  (6) to conform the text of this Indenture or the Notes to any
         provision of the "Description of Notes" section of the Issuers'
         Offering Memorandum dated December 18, 2003, relating to the initial
         offering of the Notes, to the extent that such provision in that
         "Description of Notes" was intended to be a verbatim recitation of a
         provision of this Indenture or the Notes;

                  (7) to provide for the issuance of Additional Notes in
         accordance with the limitations set forth in this Indenture as of the
         date hereof; or

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<PAGE>

                  (8) to allow any Guarantor to execute a supplemental indenture
         to this Indenture and/or a Subsidiary Guarantee with respect to the
         Notes.

         Upon the request of the Issuers accompanied by a resolution of its
Board of Supervisors authorizing the execution of any such amended or
supplemental indenture, and upon receipt by the Trustee of the documents
described in Section 7.02 hereof, the Trustee will join with the Issuers and the
Guarantors, if any, in the execution of any amended or supplemental indenture
authorized or permitted by the terms of this Indenture and to make any further
appropriate agreements and stipulations that may be therein contained, but the
Trustee will not be obligated to enter into such amended or supplemental
indenture that affects its own rights, duties or immunities under this Indenture
or otherwise.

Section 9.02 With Consent of Holders of Notes.

         Except as provided below in this Section 9.02, Suburban Propane and the
Trustee may amend or supplement this Indenture (including, without limitation,
Section 3.10, 4.10 and 4.15 hereof) and the Notes with the consent of the
Holders of at least a majority in principal amount of the Notes (including,
without limitation, Additional Notes, if any) then outstanding voting as a
single class (including, without limitation, consents obtained in connection
with a tender offer or exchange offer for, or purchase of, the Notes), and,
subject to Sections 6.04 and 6.07 hereof, any existing Default or Event of
Default (other than a Default or Event of Default in the payment of the
principal of, premium or Liquidated Damages, if any, or interest on the Notes,
except a payment default resulting from an acceleration that has been rescinded)
or compliance with any provision of this Indenture, the Subsidiary Guarantees or
the Notes may be waived with the consent of the Holders of a majority in
principal amount of the then outstanding Notes voting as a single class
(including consents obtained in connection with a tender offer or exchange offer
for, or purchase of, the Notes). Section 2.08 hereof shall determine which Notes
are considered to be "outstanding" for purposes of this Section 9.02.

         Upon the request of Suburban Propane accompanied by a resolution of its
Board of Supervisors authorizing the execution of any such amended or
supplemental indenture, and upon the filing with the Trustee of evidence
satisfactory to the Trustee of the consent of the Holders of Notes as aforesaid,
and upon receipt by the Trustee of the documents described in Section 7.02
hereof, the Trustee will join with the Issuers in the execution of such amended
or supplemental indenture unless such amended or supplemental indenture directly
affects the Trustee's own rights, duties or immunities under this Indenture or
otherwise, in which case the Trustee may in its discretion, but will not be
obligated to, enter into such amended or supplemental Indenture.

         It is not necessary for the consent of the Holders of Notes under this
Section 9.02 to approve the particular form of any proposed amendment or waiver,
but it is sufficient if such consent approves the substance thereof.

         After an amendment, supplement or waiver under this Section 9.02
becomes effective, Suburban Propane will mail to the Holders of Notes affected
thereby a notice briefly describing the amendment, supplement or waiver. Any
failure of Suburban Propane to mail such notice, or any defect therein, will
not, however, in any way impair or affect the validity of any such amended or
supplemental indenture or waiver. Subject to Sections 6.04 and 6.07 hereof, the
Holders of a majority in aggregate principal amount of the Notes then
outstanding voting as a single class may waive compliance in a particular
instance by Suburban Propane with any provision of this Indenture or the Notes.
However, without the consent of each Holder affected, an amendment, supplement
or waiver under this Section 9.02 may not (with respect to any Notes held by a
non-consenting Holder):

                                       74
<PAGE>

                  (1) reduce the principal amount of Notes whose Holders must
         consent to an amendment, supplement or waiver;

                  (2) reduce the principal of or change the fixed maturity of
         any Note or alter or waive any of the provisions with respect to the
         redemption of the Notes, except as provided above with respect to
         Sections 3.10, 4.10 and 4.15 hereof;

                  (3) reduce the rate of or change the time for payment of
         interest, including default interest, on any Note;

                  (4) waive a Default or Event of Default in the payment of
         principal of or premium or Liquidated Damages, if any, or interest on
         the Notes (except a rescission of acceleration of the Notes by the
         Holders of at least a majority in aggregate principal amount of the
         then outstanding Notes and a waiver of the payment default that
         resulted from such acceleration);

                  (5) make any Note payable in money other than that stated in
         the Notes;

                  (6) make any change in the provisions of this Indenture
         relating to waivers of past Defaults or the rights of Holders of Notes
         to receive payments of principal of, or interest or premium or
         Liquidated Damages, if any, on the Notes;

                  (7) waive a redemption payment with respect to any Note (other
         than a payment required by Sections 3.10, 4.10 or 4.15 hereof); or

                  (8) make any change covered by (6) in the foregoing amendment
         and waiver provisions.

Section 9.03 Compliance with Trust Indenture Act.

         Every amendment or supplement to this Indenture or the Notes will be
set forth in a amended or supplemental indenture that complies with the TIA as
then in effect.

Section 9.04 Revocation and Effect of Consents.

         Until an amendment, supplement or waiver becomes effective, a consent
to it by a Holder of a Note is a continuing consent by the Holder of a Note and
every subsequent Holder of a Note or portion of a Note that evidences the same
debt as the consenting Holder's Note, even if notation of the consent is not
made on any Note. However, any such Holder of a Note or subsequent Holder of a
Note may revoke the consent as to its Note if the Trustee receives written
notice of revocation before the date the waiver, supplement or amendment becomes
effective. An amendment, supplement or waiver becomes effective in accordance
with its terms and thereafter binds every Holder.

Section 9.05 Notation on or Exchange of Notes.

         The Trustee may place an appropriate notation about an amendment,
supplement or waiver on any Note thereafter authenticated. Suburban Propane in
exchange for all Notes may issue and the Trustee shall, upon receipt of an
Authentication Order, authenticate new Notes that reflect the amendment,
supplement or waiver.

         Failure to make the appropriate notation or issue a new Note will not
affect the validity and effect of such amendment, supplement or waiver.

                                       75
<PAGE>

Section 9.06 Trustee to Sign Amendments, etc.

         The Trustee will sign any amended or supplemental indenture authorized
pursuant to this Article 9 if the amendment or supplement does not adversely
affect the rights, duties, liabilities or immunities of the Trustee. Suburban
Propane may not sign an amended or supplemental indenture until the Board of
Supervisors approves it. In executing any amended or supplemental indenture, the
Trustee will be provided with and (subject to Section 7.01 hereof) will be fully
protected in relying upon, in addition to the documents required by Section
12.04 hereof, an Officers' Certificate and an Opinion of Counsel stating that
the execution of such amended or supplemental indenture is authorized or
permitted by this Indenture.

                                  ARTICLE 10.
                              SUBSIDIARY GUARANTEES

Section 10.01. Guarantee.

         (a) Subject to Section 4.17 and this Article 10, each of the Guarantors
hereby, jointly and severally, unconditionally guarantees to each Holder of a
Note authenticated and delivered by the Trustee and to the Trustee and its
successors and assigns, irrespective of the validity and enforceability of this
Indenture, the Notes or the obligations of the Issuers hereunder or thereunder,
that:

                  (1) the principal of, premium and Liquidated Damages, if any,
         and interest on the Notes will be promptly paid in full when due,
         subject to any applicable grace period, whether at maturity, by
         acceleration, redemption or otherwise, and interest on the overdue
         principal of and interest on the Notes, if any, if lawful, and all
         other obligations of the Issuers to the Holders or the Trustee
         hereunder or thereunder will be promptly paid in full or performed, all
         in accordance with the terms hereof and thereof; and

                  (2) in case of any extension of time of payment or renewal of
         any Notes or any of such other obligations, that same will be promptly
         paid in full when due or performed in accordance with the terms of the
         extension or renewal, whether at stated maturity, by acceleration or
         otherwise.

         Failing payment when due of any amount so guaranteed or any performance
so guaranteed for whatever reason, the Guarantors will be jointly and severally
obligated to pay the same immediately. Each Guarantor agrees that this is a
guarantee of payment and not a guarantee of collection.

         (b) The Guarantors hereby agree that their obligations hereunder are
unconditional, irrespective of the validity, regularity or enforceability of the
Notes or this Indenture, the absence of any action to enforce the same, any
waiver or consent by any Holder of the Notes with respect to any provisions
hereof or thereof, the recovery of any judgment against Suburban Propane, any
action to enforce the same or any other circumstance which might otherwise
constitute a legal or equitable discharge or defense of a guarantor. Each
Guarantor hereby waives diligence, presentment, demand of payment, filing of
claims with a court in the event of insolvency or bankruptcy of the Issuers, any
right to require a proceeding first against the Issuers, protest, notice and all
demands whatsoever and covenant that this Subsidiary Guarantee will not be
discharged except by complete performance of the obligations contained in the
Notes and this Indenture.

         (c) If any Holder or the Trustee is required by any court or otherwise
to return to the Issuers, the Guarantors or any custodian, trustee, liquidator
or other similar official acting in relation to either

                                       76
<PAGE>

Suburban Propane or the Guarantors, any amount paid by either to the Trustee or
such Holder, this Subsidiary Guarantee, to the extent theretofore discharged,
will be reinstated in full force and effect.

         (d) Each Guarantor agrees that it will not be entitled to any right of
subrogation in relation to the Holders in respect of any obligations guaranteed
hereby until payment in full of all obligations guaranteed hereby. Each
Guarantor further agrees that, as between the Guarantors, on the one hand, and
the Holders and the Trustee, on the other hand, (1) the maturity of the
obligations guaranteed hereby may be accelerated as provided in Article 6 hereof
for the purposes of this Subsidiary Guarantee, notwithstanding any stay,
injunction or other prohibition preventing such acceleration in respect of the
obligations guaranteed hereby, and (2) in the event of any declaration of
acceleration of such obligations as provided in Article 6 hereof, such
obligations (whether or not due and payable) will forthwith become due and
payable by the Guarantors for the purpose of this Subsidiary Guarantee. The
Guarantors will have the right to seek contribution from any non-paying
Guarantor so long as the exercise of such right does not impair the rights of
the Holders under the Subsidiary Guarantee.

Section 10.02. Limitation on Guarantor Liability.

         Each Guarantor, and by its acceptance of Notes, each Holder, hereby
confirms that it is the intention of all such parties that the Subsidiary
Guarantee of such Guarantor not constitute a fraudulent transfer or conveyance
for purposes of Bankruptcy Law, the Uniform Fraudulent Conveyance Act, the
Uniform Fraudulent Transfer Act or any similar federal or state law to the
extent applicable to any Subsidiary Guarantee. To effectuate the foregoing
intention, the Trustee, the Holders and the Guarantors hereby irrevocably agree
that the obligations of such Guarantor will be limited to the maximum amount
that will, after giving effect to such maximum amount and all other contingent
and fixed liabilities of such Guarantor that are relevant under such laws, and
after giving effect to any collections from, rights to receive contribution from
or payments made by or on behalf of any other Guarantor in respect of the
obligations of such other Guarantor under this Article 10, result in the
obligations of such Guarantor under its Subsidiary Guarantee not constituting a
fraudulent transfer or conveyance.

Section 10.03. Execution and Delivery of Subsidiary Guarantee.

         To evidence its Subsidiary Guarantee set forth in Section 10.01 hereof,
each Guarantor hereby agrees that a notation of such Subsidiary Guarantee
substantially in the form attached as Exhibit E hereto will be endorsed by an
Officer of such Guarantor on each Note authenticated and delivered by the
Trustee and that this Indenture will be executed on behalf of such Guarantor by
one of its Officers.

         Each Guarantor hereby agrees that its Subsidiary Guarantee set forth in
Section 10.01 hereof will remain in full force and effect notwithstanding any
failure to endorse on each Note a notation of such Subsidiary Guarantee.

         If an Officer whose signature is on this Indenture or on the Subsidiary
Guarantee no longer holds that office at the time the Trustee authenticates the
Note on which a Subsidiary Guarantee is endorsed, the Subsidiary Guarantee will
be valid nevertheless.

         The delivery of any Note by the Trustee, after the authentication
thereof hereunder, will constitute due delivery of the Subsidiary Guarantee set
forth in this Indenture on behalf of the Guarantors.

         In the event that Suburban Propane or any of its Restricted
Subsidiaries creates or acquires any Domestic Subsidiary after the date of this
Indenture, if required by Section 4.17 hereof, the Issuers will cause such
Domestic Subsidiary to comply with the provisions of Section 4.17 hereof and
this Article 10, to the extent applicable.

                                       77
<PAGE>

Section 10.04. Guarantors May Consolidate, etc., on Certain Terms.

         Except as otherwise provided in Section 10.05 hereof, no Guarantor may
sell or otherwise dispose of all or substantially all of its assets to, or
consolidate with or merge with or into (whether or not such Guarantor is the
surviving Person) another Person, other than Suburban Propane or another
Guarantor, unless:

                  (1) immediately after giving effect to such transaction, no
         Default or Event of Default exists; and

                  (2) either:

                           (a) subject to Section 10.05 hereof, the Person
                  acquiring the property in any such sale or disposition or the
                  Person formed by or surviving any such consolidation or merger
                  unconditionally assumes all the obligations of that Guarantor,
                  pursuant to a supplemental indenture in form and substance
                  reasonably satisfactory to the Trustee, under this Indenture
                  and the Subsidiary Guarantee on the terms set forth herein or
                  therein; and

                           (b) the Net Proceeds of such sale or other
                  disposition are applied in accordance with the applicable
                  provisions of this Indenture, including without limitation,
                  Section 4.10 hereof.

         In case of any such consolidation, merger, sale or conveyance and upon
the assumption by the successor Person, by supplemental indenture, executed and
delivered to the Trustee and satisfactory in form to the Trustee, of the
Subsidiary Guarantee endorsed upon the Notes and the due and punctual
performance of all of the covenants and conditions of this Indenture to be
performed by the Guarantor, such successor Person will succeed to and be
substituted for the Guarantor with the same effect as if it had been named
herein as a Guarantor. Such successor Person thereupon may cause to be signed
any or all of the Subsidiary Guarantees to be endorsed upon all of the Notes
issuable hereunder which theretofore shall not have been signed by Suburban
Propane and delivered to the Trustee. All the Subsidiary Guarantees so issued
will in all respects have the same legal rank and benefit under this Indenture
as the Subsidiary Guarantees theretofore and thereafter issued in accordance
with the terms of this Indenture as though all of such Subsidiary Guarantees had
been issued at the date of the execution hereof.

         Except as set forth in Articles 4 and 5 hereof, and notwithstanding
clauses (a) and (b) above, nothing contained in this Indenture or in any of the
Notes will prevent any consolidation or merger of a Guarantor with or into
Suburban Propane or another Guarantor, or will prevent any sale or conveyance of
the property of a Guarantor as an entirety or substantially as an entirety to
Suburban Propane or another Guarantor.

Section 10.05. Releases.

         The Subsidiary Guarantee of a Guarantor will be automatically and
unconditionally released:

                  (1) in connection with any sale or other disposition of all or
         substantially all of the assets of that Guarantor (including by way of
         merger or consolidation) to a Person that is not (either before or
         after giving effect to such transaction) Suburban Propane or a
         Restricted Subsidiary of Suburban Propane, if the sale or other
         disposition does not violate Sections 3.10 or 4.10 of this Indenture;

                                       78
<PAGE>

                  (2) in connection with any sale or other disposition of all of
         the Capital Stock of that Guarantor to a Person that is not (either
         before or after giving effect to such transaction) Suburban Propane or
         a Restricted Subsidiary of Suburban Propane, if the sale or other
         disposition does not violate Sections 3.10 or 4.10 of this Indenture;

                  (3) if Suburban Propane designates any Restricted Subsidiary
         that is a Guarantor to be an Unrestricted Subsidiary in accordance with
         the applicable provisions of this Indenture;

                  (4) upon legal defeasance or satisfaction and discharge of the
         Notes as provided in Section 8.02 and Article 11 of this Indenture; or

                  (5) if such Guarantor is released from the underlying
         guarantee of Indebtedness giving rise to the execution of a Subsidiary
         Guarantee.

         Any Guarantor not released from its obligations under its Subsidiary
Guarantee as provided in this Section 10.05 will remain liable for the full
amount of principal of and interest on the Notes and for the other obligations
of any Guarantor under this Indenture as provided in this Article 10.

                                  ARTICLE 11.
                           SATISFACTION AND DISCHARGE

Section 11.01 Satisfaction and Discharge.

         This Indenture will be discharged and will cease to be of further
effect as to all Notes issued hereunder, when:

                  (1) either:

                           (a) all Notes that have been authenticated, except
         lost, stolen or destroyed Notes that have been replaced or paid and
         Notes for whose payment money has theretofore been deposited in trust
         and thereafter repaid to the Issuers, have been delivered to the
         Trustee for cancellation; or

                           (b) all Notes that have not been delivered to the
         Trustee for cancellation have become due and payable by reason of the
         mailing of a notice of redemption or otherwise or will become due and
         payable within one year, or are to be called for redemption within one
         year under arrangements reasonably satisfactory to the Trustee for the
         giving of notice of redemption by the Trustee in the name, and at the
         expense, of the Issuers, and the Issuers have irrevocably deposited or
         caused to be deposited with the trustee as trust funds in trust solely
         for the benefit of the Holders, cash in U.S. dollars, non-callable
         Government Securities, or a combination of cash in U.S. dollars and
         non-callable Government Securities, in amounts as will be sufficient,
         without consideration of any reinvestment of interest, to pay and
         discharge the entire Indebtedness on the Notes not delivered to the
         Trustee for cancellation for principal, premium and Liquidated Damages,
         if any, and accrued interest to the date of maturity or redemption;

                  (2) no Default or Event of Default has occurred and is
         continuing on the date of such deposit (other than a Default or Event
         of Default resulting from the borrowing of funds to be applied to such
         deposit) and the deposit will not result in a breach or violation of,
         or constitute a default under, any other instrument to which the
         Issuers are a party or by which the Issuers are bound;

                                       79
<PAGE>

                  (3) the Issuers have paid or caused to be paid all sums
         payable by it under this Indenture; and

                  (4) the Issuers have delivered irrevocable instructions to the
         Trustee under this Indenture to apply the deposited money toward the
         payment of the Notes at maturity or the redemption date, as the case
         may be.

In addition, the Issuers must deliver an Officers' Certificate and an Opinion of
Counsel to the Trustee stating that all conditions precedent to satisfaction and
discharge have been satisfied.

         Notwithstanding the satisfaction and discharge of this Indenture, if
money has been deposited with the Trustee pursuant to subclause (b) of clause
(1) of this Section, the provisions of Sections 11.02 and 8.06 will survive. In
addition, nothing in this Section 11.01 will be deemed to discharge those
provisions of Section 7.07 hereof, that, by their terms, survive the
satisfaction and discharge of this Indenture.

Section 11.02 Application of Trust Money.

         Subject to the provisions of Section 8.06 hereof, all money deposited
with the Trustee pursuant to Section 11.01 hereof shall be held in trust and
applied by it, in accordance with the provisions of the Notes and this
Indenture, to the payment, either directly or through any Paying Agent
(including Suburban Propane acting as its own Paying Agent) as the Trustee may
determine, to the Persons entitled thereto, of the principal (and premium, if
any) and interest for whose payment such money has been deposited with the
Trustee; but such money need not be segregated from other funds except to the
extent required by law.

         If the Trustee or Paying Agent is unable to apply any money or
Government Securities in accordance with Section 11.01 hereof by reason of any
legal proceeding or by reason of any order or judgment of any court or
governmental authority enjoining, restraining or otherwise prohibiting such
application, the Issuers' and any Guarantor's obligations under this Indenture
and the Notes shall be revived and reinstated as though no deposit had occurred
pursuant to Section 11.01 hereof; provided that if Suburban Propane has made any
payment of principal of, premium, if any, or interest on any Notes because of
the reinstatement of its obligations, Suburban Propane shall be subrogated to
the rights of the Holders of such Notes to receive such payment from the money
or Government Securities held by the Trustee or Paying Agent.

                                  ARTICLE 12.
                                  MISCELLANEOUS

Section 12.01 Trust Indenture Act Controls.

         If any provision of this Indenture limits, qualifies or conflicts with
the duties imposed by TIA ss.318(c), the imposed duties will control.

Section 12.02 Notices.

         Any notice or communication by the Issuers, any Guarantor or the
Trustee to the others is duly given if in writing and delivered in Person or
mailed by first class mail (registered or certified, return receipt requested),
telex, telecopier or overnight air courier guaranteeing next day delivery, to
the others' address:

                                       80
<PAGE>

         If to Suburban Propane and/or Finance Corp.:

         Suburban Propane Partners, L.P.
         One Suburban Plaza
         240 Route 10 West
         Whippany, New Jersey  07981
         Telecopier No.:  (973) 503-9395
         Attention:  A. Davin D'Ambrosio

         With a copy to:
         Cahill Gordon & Reindel LLP
         80 Pine Street
         New York, New York 10005
         Telecopier No.:  (212) 269-5420
         Attention:  John Schuster, Esq.

         If to the Trustee:
         The Bank of New York
         101 Barclay Street, Floor 8W
         New York, New York 10286
         Telecopier No.:  (212) 815-5445
         Attention: Corporate Trust Division

         The Issuers or the Trustee, by notice to the others, may designate
additional or different addresses for subsequent notices or communications.

         All notices and communications (other than those sent to Holders) will
be deemed to have been duly given: at the time delivered by hand, if personally
delivered; five Business Days after being deposited in the mail, postage
prepaid, if mailed; when answered back, if telexed; when receipt acknowledged,
if telecopied; and the next Business Day after timely delivery to the courier,
if sent by overnight air courier guaranteeing next day delivery.

         Any notice or communication to a Holder will be mailed by first class
mail, certified or registered, return receipt requested, or by overnight air
courier guaranteeing next day delivery to its address shown on the register kept
by the Registrar. Any notice or communication will also be so mailed to any
Person described in TIA ss. 313(c), to the extent required by the TIA. Failure
to mail a notice or communication to a Holder or any defect in it will not
affect its sufficiency with respect to other Holders.

         If a notice or communication is mailed in the manner provided above
within the time prescribed, it is duly given, whether or not the addressee
receives it.

         If Suburban Propane mails a notice or communication to Holders, it will
mail a copy to the Trustee and each Agent at the same time.

Section 12.03 Communication by Holders of Notes with Other Holders of Notes.

         Holders may communicate pursuant to TIA ss. 312(b) with other Holders
with respect to their rights under this Indenture or the Notes. Suburban
Propane, the Trustee, the Registrar and anyone else shall have the protection of
TIA ss. 312(c).

                                       81
<PAGE>

Section 12.04 Certificate and Opinion as to Conditions Precedent.

         Upon any request or application by Suburban Propane to the Trustee to
take any action under this Indenture, except upon the issuance of the Initial
Notes, Suburban Propane shall furnish to the Trustee:

                  (1) an Officers' Certificate in form and substance reasonably
         satisfactory to the Trustee (which must include the statements set
         forth in Section 12.05 hereof) stating that, in the opinion of the
         signers, all conditions precedent and covenants, if any, provided for
         in this Indenture relating to the proposed action have been satisfied;
         and

                  (2) an Opinion of Counsel in form and substance reasonably
         satisfactory to the Trustee (which must include the statements set
         forth in Section 12.05 hereof) stating that, in the opinion of such
         counsel, all such conditions precedent and covenants have been
         satisfied.

Section 12.05 Statements Required in Certificate or Opinion.

         Each certificate or opinion with respect to compliance with a condition
or covenant provided for in this Indenture (other than a certificate provided
pursuant to TIA ss. 314(a)(4)) must comply with the provisions of TIA ss. 314(e)
and must include:

                  (1) a statement that the Person making such certificate or
         opinion has read such covenant or condition;

                  (2) a brief statement as to the nature and scope of the
         examination or investigation upon which the statements or opinions
         contained in such certificate or opinion are based;

                  (3) a statement that, in the opinion of such Person, he or she
         has made such examination or investigation as is necessary to enable
         him or her to express an informed opinion as to whether or not such
         covenant or condition has been satisfied; and

                  (4) a statement as to whether or not, in the opinion of such
         Person, such condition or covenant has been satisfied.

Section 12.06 Rules by Trustee and Agents.

         The Trustee may make reasonable rules for action by or at a meeting of
Holders. The Registrar or Paying Agent may make reasonable rules and set
reasonable requirements for its functions.

Section 12.07 No Personal Liability of Limited Partners, Officers, Employees
and Unitholders.

         No past, present or future limited partner, officer, employee,
incorporator, unitholder, stockholder or Affiliate of the Issuers, as such, will
have any liability for any obligations of the Issuers under the Notes, this
Indenture or for any claim based on, in respect of, or by reason of, such
obligations or their creation. Each Holder of Notes by accepting a Note waives
and releases all such liability. The waiver and release are part of the
consideration for issuance of the Notes. The waiver may not be effective to
waive liabilities under the federal securities laws.

Section 12.08 Non-Recourse

         The Issuers' obligations under this Indenture are payable only out of
their cash flow and assets. The Issuers' obligations under this Indenture are
non-recourse to the limited partners of Suburban

                                       82
<PAGE>

Propane and are non-recourse to the Operating Partnership and its Subsidiaries.
The Trustee has, and each holder of a Note, by accepting a Note, is deemed to
have, agreed in this Indenture that the limited partners as well as the
Operating Partnership and its Subsidiaries will not be liable for any of our
obligations under this Indenture.

Section 12.09 Governing Law.

         THE INTERNAL LAW OF THE STATE OF NEW YORK WILL GOVERN AND BE USED TO
CONSTRUE THIS INDENTURE, THE NOTES AND THE SUBSIDIARY GUARANTEES WITHOUT GIVING
EFFECT TO APPLICABLE PRINCIPLES OF CONFLICTS OF LAW TO THE EXTENT THAT THE
APPLICATION OF THE LAWS OF ANOTHER JURISDICTION WOULD BE REQUIRED THEREBY.

Section 12.10 No Adverse Interpretation of Other Agreements.

         This Indenture may not be used to interpret any other indenture, loan
or debt agreement of Suburban Propane or its Subsidiaries or of any other
Person. Any such indenture, loan or debt agreement may not be used to interpret
this Indenture.

Section 12.11 Successors.

         All agreements of the Issuers in this Indenture and the Notes will bind
their successors. All agreements of the Trustee in this Indenture will bind its
successors. All agreements of each Guarantor in this Indenture will bind its
successors, except as otherwise provided in Section 10.05.

Section 12.12 Severability.

         In case any provision in this Indenture or in the Notes is invalid,
illegal or unenforceable, the validity, legality and enforceability of the
remaining provisions will not in any way be affected or impaired thereby.

Section 12.13 Counterpart Originals.

         The parties may sign any number of copies of this Indenture. Each
signed copy will be an original, but all of them together represent the same
agreement.

Section 12.14 Table of Contents, Headings, etc.

         The Table of Contents, Cross-Reference Table and Headings of the
Articles and Sections of this Indenture have been inserted for convenience of
reference only, are not to be considered a part of this Indenture and will in no
way modify or restrict any of the terms or provisions hereof.

                         [Signatures on following page]

                                       83
<PAGE>

                                   SIGNATURES

Dated as of December 23, 2003
                            SUBURBAN PROPANE PARTNERS, L.P.

                            By:  Michael J. Dunn, Jr.
                                 --------------------
                            Name: Michael J. Dunn, Jr.
                            Title: Senior Vice President - Corporate Development

                            SUBURBAN ENERGY FINANCE CORP.

                            By:  Micheal J. Dunn, Jr.
                                 --------------------
                            Name: Micheal J. Dunn, Jr.
                            Title: Senior Vice President - Corporate Development

                            THE BANK OF NEW YORK

                            By: /s/ Patricia Gallagher
                                ----------------------
                            Name: Patricia Gallagher
                            Title: Vice President

<PAGE>

                                                                      EXHIBIT A1
--------------------------------------------------------------------------------

                                 [Face of Note]
--------------------------------------------------------------------------------
                                                         CUSIP/CINS ____________

                          6.875% Senior Notes due 2013

No. ___                                                            $____________

                         SUBURBAN PROPANE PARTNERS, L.P.
                          SUBURBAN ENERGY FINANCE CORP.

promises to pay to ______________________________________ or registered assigns,

the principal sum of _____________________________ DOLLARS on __________, 20___.

Interest Payment Dates:  December 15 and June 15

Record Dates:  December 1 and June 1

Dated:  _______________, 200_

                                       SUBURBAN PROPANE PARTNERS, L.P.

                                       By:
                                           -------------------------------------
                                           Name:
                                           Title:

                                       SUBURBAN ENERGY FINANCE CORP.

                                       By:
                                           -------------------------------------
                                           Name:
                                           Title:

This is one of the Notes referred to
in the within-mentioned Indenture:

THE BANK OF NEW YORK,
  as Trustee

By:
    -----------------------------------
          Authorized Signatory

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

                                      A1-1
<PAGE>

                                 [Back of Note]
                          6.875% Senior Notes due 2013

[Insert the Global Note Legend, if applicable pursuant to the provisions of the
Indenture]

[Insert the Private Placement Legend, if applicable pursuant to the provisions
of the Indenture]

         Capitalized terms used herein have the meanings assigned to them in the
Indenture referred to below unless otherwise indicated.

                  (1) INTEREST. Suburban Propane Partners, L.P., a Delaware
         limited partnership ("Suburban Propane") and Suburban Energy Finance
         Corp., a Delaware corporation ("Finance Corp." and, together with
         Suburban Propane, the "Issuers"), promise to pay interest on the
         principal amount of this Note at 6.875% per annum from
         ________________, 20__ until maturity and shall pay the Liquidated
         Damages, if any, payable pursuant to Section 5 of the Registration
         Rights Agreement referred to below. The Issuers will pay interest and
         Liquidated Damages, if any, semi-annually in arrears on December 15 and
         June 15 of each year, or if any such day is not a Business Day, on the
         next succeeding Business Day (each, an "Interest Payment Date").
         Interest on the Notes will accrue from the most recent date to which
         interest has been paid or, if no interest has been paid, from the date
         of issuance; provided that if there is no existing Default in the
         payment of interest, and if this Note is authenticated between a record
         date referred to on the face hereof and the next succeeding Interest
         Payment Date, interest shall accrue from such next succeeding Interest
         Payment Date; provided further that the first Interest Payment Date
         shall be _____________, 20__. The Issuers will pay interest (including
         post-petition interest in any proceeding under any Bankruptcy Law) on
         overdue principal and premium, if any, from time to time on demand at a
         rate that is 1% per annum in excess of the rate then in effect; it will
         pay interest (including post-petition interest in any proceeding under
         any Bankruptcy Law) on overdue installments of interest and Liquidated
         Damages, if any, (without regard to any applicable grace periods) from
         time to time on demand at a rate that is 1% per annum in excess of the
         rate then in effect to the extent lawful. Interest will be computed on
         the basis of a 360-day year of twelve 30-day months.

                  (2) METHOD OF PAYMENT. The Issuers will pay interest on the
         Notes (except defaulted interest) and Liquidated Damages, if any, to
         the Persons who are registered Holders of Notes at the close of
         business on the December 1 or June 1 next preceding the Interest
         Payment Date, even if such Notes are canceled after such record date
         and on or before such Interest Payment Date, except as provided in
         Section 2.12 of the Indenture with respect to defaulted interest. The
         Notes will be payable as to principal, premium and Liquidated Damages,
         if any, and interest at the office or agency of the Issuers maintained
         for such purpose within or without the City and State of New York, or,
         at the option of the Issuers, payment of interest and Liquidated
         Damages, if any, may be made by check mailed to the Holders at their
         addresses set forth in the register of Holders; provided that payment
         by wire transfer of immediately available funds will be required with
         respect to principal of and interest, premium and Liquidated Damages,
         if any, on, all Global Notes and all other Notes the Holders of which
         will have provided wire transfer instructions to the Issuers or the
         Paying Agent. Such payment will be in such coin or currency of the
         United States of America as at the time of payment is legal tender for
         payment of public and private debts.

                  (3) PAYING AGENT AND REGISTRAR. Initially, The Bank of New
         York, the Trustee under the Indenture, will act as Paying Agent and
         Registrar. The Issuers may change any Paying Agent

                                      A1-2
<PAGE>

         or Registrar without notice to any Holder. The Issuers or any of their
         Subsidiaries may act in any such capacity.

                  (4) INDENTURE. The Issuers issued the Notes under an Indenture
         dated as of December 23, 2003 (the "Indenture") among the Issuers and
         the Trustee. The terms of the Notes include those stated in the
         Indenture and those made part of the Indenture by reference to the TIA
         (15 U.S. Code ss.ss. 77aaa-77bbbb). The Notes are subject to all such
         terms, and Holders are referred to the Indenture and such Act for a
         statement of such terms. To the extent any provision of this Note
         conflicts with the express provisions of the Indenture, the provisions
         of the Indenture shall govern and be controlling.

                  (5) OPTIONAL REDEMPTION.

         (a) [Reserved]

         (b) At any time prior to December 15, 2006, the Issuers may on any one
or more occasions redeem up to 35% of the aggregate principal amount of Notes
issued under this Indenture at a redemption price of 106.875% of the principal
amount thereof, plus accrued and unpaid interest and Liquidated Damages, if any,
to the redemption date, with the net cash proceeds of one or more Equity
Offerings; provided that:

                  (i) at least 65% of the aggregate principal amount of Notes
         originally issued under this Indenture (excluding Notes held by
         Suburban Propane and its Subsidiaries) remains outstanding immediately
         after the occurrence of such redemption; and

                  (ii) the redemption must occur within 90 days of the date of
         the closing of such Equity Offering.

         (c) On or after December 15, 2008, the Issuers may redeem all or a part
of the Notes upon not less than 30 nor more than 60 days notice, at the
redemption prices (expressed as percentages of principal amount) set forth below
plus accrued and unpaid interest and Liquidated Damages, if any, thereon, to the
applicable redemption date, if redeemed during the twelve-month period beginning
on December 15 of the years indicated below, subject to the rights of Holders on
the relevant record date to receive interest on the relevant interest payment
date:

        Year                                                   Percentage
        ----                                                   ----------
        2008................................................    103.4375%
        2009................................................    102.2917%
        2010................................................    101.1458%
        2011 and thereafter.................................    100.0000%

                  (6) MANDATORY REDEMPTION; SPECIAL REDEMPTION.

         The Issuers will not be required to make mandatory redemption payments
with respect to the Notes.

                  (7) REPURCHASE AT THE OPTION OF HOLDER.

                           (a) If there is a Change of Control, the Issuers will
         be required to make an offer (a "Change of Control Offer") to
         repurchase all or any part (equal to $1,000 or an integral multiple
         thereof) of each Holder's Notes at a purchase price equal to 101% of
         the aggregate

                                      A1-3
<PAGE>

         principal amount thereof plus accrued and unpaid interest and
         Liquidated Damages thereon, if any, to the date of purchase, subject to
         the rights of Holders on the relevant record date to receive interest
         due on the relevant interest payment date (the "Change of Control
         Payment"). Within 30 days following any Change of Control, the Issuers
         will mail a notice to each Holder setting forth the procedures
         governing the Change of Control Offer as required by the Indenture.

                           (b) If Suburban Propane or any of its Restricted
         Subsidiaries consummates any Asset Sales, when the aggregate amount of
         Excess Proceeds exceeds $15.0 million, the Issuers will commence an
         offer to all Holders of Notes and all holders of other Indebtedness
         that is pari passu with the Notes containing provisions similar to
         those set forth in the Indenture with respect to offers to purchase or
         redeem with the proceeds of sales of assets (an "Asset Sale Offer")
         pursuant to Section 3.10 of the Indenture to purchase the maximum
         principal amount of Notes (including any Additional Notes) and other
         pari passu Indebtedness that may be purchased out of the Excess
         Proceeds. The offer price in any Asset Sale Offer will be payable in
         cash and equal to 100% of the principal amount thereof plus accrued and
         unpaid interest and Liquidated Damages thereon, if any, to the date of
         purchase, in accordance with the procedures set forth in the Indenture.
         To the extent that the aggregate amount of Notes (including any
         Additional Notes) and other pari passu Indebtedness tendered pursuant
         to an Asset Sale Offer is less than the Excess Proceeds, the Issuers
         (or such Restricted Subsidiary) may use such deficiency for any purpose
         not otherwise prohibited by the Indenture. If the aggregate principal
         amount of Notes and other pari passu Indebtedness surrendered by
         holders thereof exceeds the amount of Excess Proceeds, the Trustee
         shall select the Notes and other pari passu Indebtedness to be
         purchased on a pro rata basis. Holders of Notes that are the subject of
         an offer to purchase will receive an Asset Sale Offer from the Issuers
         prior to any related purchase date and may elect to have such Notes
         purchased by completing the form entitled "Option of Holder to Elect
         Purchase" attached to the Notes.

                  (8) NOTICE OF REDEMPTION. Notice of redemption will be mailed
         at least 30 days but not more than 60 days before the redemption date
         to each Holder whose Notes are to be redeemed at its registered
         address, except that redemption notices may be mailed more than 60 days
         prior to a redemption date if the notice is issued in connection with a
         defeasance of the Notes or a satisfaction or discharge of the
         Indenture. Notes in denominations larger than $1,000 may be redeemed in
         part but only in whole multiples of $1,000, unless all of the Notes
         held by a Holder are to be redeemed. On and after the redemption date
         interest ceases to accrue on Notes or portions thereof called for
         redemption.

                  (9) DENOMINATIONS, TRANSFER, EXCHANGE. The Notes are in
         registered form without coupons in denominations of $1,000 and integral
         multiples of $1,000. The transfer of Notes may be registered and Notes
         may be exchanged as provided in the Indenture. The Registrar and the
         Trustee may require a Holder, among other things, to furnish
         appropriate endorsements and transfer documents and the Issuers may
         require a Holder to pay any taxes and fees required by law or permitted
         by the Indenture. The Issuers need not exchange or register the
         transfer of any Note or portion of a Note selected for redemption,
         except for the unredeemed portion of any Note being redeemed in part.
         Also, the Issuers need not exchange or register the transfer of any
         Notes for a period of 15 days before a selection of Notes to be
         redeemed or during the period between a record date and the
         corresponding Interest Payment Date.

                  (10) PERSONS DEEMED OWNERS. The registered Holder of a Note
         may be treated as its owner for all purposes.

                                      A1-4
<PAGE>

                  (11) AMENDMENT, SUPPLEMENT AND WAIVER. Subject to certain
         exceptions, the Indenture or the Notes may be amended or supplemented
         with the consent of the Holders of at least a majority in principal
         amount of the then outstanding Notes and Additional Notes, if any,
         voting as a single class, and any existing Default or Event of Default
         compliance with any provision of the Indenture or the Notes may be
         waived with the consent of the Holders of a majority in principal
         amount of the then outstanding Notes and Additional Notes, if any,
         voting as a single class. Without the consent of any Holder of a Note,
         the Indenture or the Notes may be amended or supplemented to cure any
         ambiguity, defect or inconsistency, to provide for uncertificated Notes
         in addition to or in place of certificated Notes, to provide for the
         assumption of the Issuers' obligations to Holders of the Notes in case
         of a merger or consolidation, to make any change that would provide any
         additional rights or benefits to the Holders of the Notes or that does
         not adversely affect the legal rights under the Indenture of any such
         Holder, to comply with the requirements of the Commission in order to
         effect or maintain the qualification of the Indenture under the TIA, to
         conform the text of the Indenture or the Notes to any provision of the
         "Description of Notes" section of the Issuers' Offering Memorandum
         dated December 18, 2003, relating to the initial offering of the Notes,
         to the extent that such provision in that "Description of Notes" was
         intended to be a verbatim recitation of a provision of the Indenture or
         the Notes; to provide for the Issuance of Additional Notes in
         accordance with the limitations set forth in the Indenture, or to allow
         any Guarantor to execute a supplemental indenture to the Indenture
         and/or a Subsidiary Guarantee with respect to the Notes.

                  (12) DEFAULTS AND REMEDIES. Events of Default include: (i)
         default for 30 days in the payment when due of interest or Liquidated
         Damages on the Notes; (ii) default in payment when due of principal of
         or premium, if any, on the Notes when the same becomes due and payable
         at maturity, upon redemption (including in connection with an offer to
         purchase) or otherwise, (iii) failure by the Issuers for 45 days after
         notice to the Issuers by the Trustee or the Holders of at least 25% in
         principal amount of the Notes then outstanding voting as a single class
         to comply with certain other agreements in the Indenture or the Notes;
         (iv) default under certain other agreements relating to certain
         Indebtedness of the Issuers which default results in the acceleration
         of such Indebtedness prior to its express maturity; (v) certain final
         judgments for the payment of money that remain undischarged for a
         period of 60 days; (vi) certain events of bankruptcy or insolvency with
         respect to the Issuers or any Significant Subsidiary of Suburban
         Propane. If any Event of Default occurs and is continuing, the Trustee
         or the Holders of at least 25% in principal amount of the then
         outstanding Notes may declare all the Notes to be due and payable.
         Notwithstanding the foregoing, in the case of an Event of Default
         arising from certain events of bankruptcy or insolvency, all
         outstanding Notes will become due and payable without further action or
         notice. Holders may not enforce the Indenture or the Notes except as
         provided in the Indenture. Subject to certain limitations, Holders of a
         majority in principal amount of the then outstanding Notes may direct
         the Trustee in its exercise of any trust or power. The Trustee may
         withhold from Holders of the Notes notice of any continuing Default or
         Event of Default (except a Default or Event of Default relating to the
         payment of principal or interest) if it determines that withholding
         notice is in their interest. The Holders of a majority in aggregate
         principal amount of the Notes then outstanding by notice to the Trustee
         may on behalf of the Holders of all of the Notes waive any existing
         Default or Event of Default and its consequences under the Indenture
         except a continuing Default or Event of Default in the payment of
         interest on, or the principal of, the Notes. The Issuers are required
         to deliver to the Trustee annually a statement regarding compliance
         with the Indenture, and the Issuers are required upon becoming aware of
         any Default or Event of Default, to deliver to the Trustee a statement
         specifying such Default or Event of Default.

                                      A1-5
<PAGE>

                  (13) TRUSTEE DEALINGS WITH ISSUERS. The Trustee, in its
         individual or any other capacity, may make loans to, accept deposits
         from, and perform services for the Issuers or their Affiliates, and may
         otherwise deal with the Issuers or their Affiliates, as if it were not
         the Trustee.

                  (14) NO RECOURSE AGAINST OTHERS. No past, present or future
         limited partner, officer, employee, incorporator, unitholder,
         stockholder or Affiliate of the Issuers, as such, will have any
         liability for any obligations of the Issuers under this Note, the
         Indenture or for any claim based on, in respect of, or by reason of,
         such obligations or their creation. Each Holder of Notes by accepting a
         Note waives and releases all such liability. The waiver and release are
         part of the consideration for issuance of the Notes. The waiver may not
         be effective to waive liabilities under the federal securities laws.

                  (15) AUTHENTICATION. This Note will not be valid until
         authenticated by the manual signature of the Trustee or an
         authenticating agent.

                  (16) ABBREVIATIONS. Customary abbreviations may be used in the
         name of a Holder or an assignee, such as: TEN COM (= tenants in
         common), TEN ENT (= tenants by the entireties), JT TEN (= joint tenants
         with right of survivorship and not as tenants in common), CUST (=
         Custodian), and U/G/M/A (= Uniform Gifts to Minors Act).

                  (17) ADDITIONAL RIGHTS OF HOLDERS OF RESTRICTED GLOBAL NOTES
         AND RESTRICTED DEFINITIVE NOTES. In addition to the rights provided to
         Holders of Notes under the Indenture, Holders of Restricted Global
         Notes and Restricted Definitive Notes will have all the rights set
         forth in the Registration Rights Agreement dated as of December 23,
         2003, among the Issuers and the other parties named on the signature
         pages thereof or, in the case of Additional Notes, Holders of
         Restricted Global Notes and Restricted Definitive Notes will have the
         rights set forth in one or more registration rights agreements, if any,
         among the Issuers and the other parties thereto, relating to rights
         given by the Issues to the purchasers of any Additional Notes
         (collectively, the "Registration Rights Agreement").

                  (18) CUSIP NUMBERS. Pursuant to a recommendation promulgated
         by the Committee on Uniform Security Identification Procedures, the
         Issuers have caused CUSIP numbers to be printed on the Notes and the
         Trustee may use CUSIP numbers in notices of redemption as a convenience
         to Holders. No representation is made as to the accuracy of such
         numbers either as printed on the Notes or as contained in any notice of
         redemption and reliance may be placed only on the other identification
         numbers placed thereon.

         The Issuers will furnish to any Holder upon written request and without
charge a copy of the Indenture and/or the Registration Rights Agreement.
Requests may be made to:

Suburban Propane Partners, L.P.
One Suburban Plaza
240 Route 10 West
Whippany, New Jersey 07981
Telecopier No.:  (973) 503-9395
Attention:  A. Davin D'Ambrosio

                                      A1-6
<PAGE>

                                 ASSIGNMENT FORM

         To assign this Note, fill in the form below:

(I) or (we) assign and transfer this Note to:
                                             -----------------------------------
                                               (Insert assignee's legal name)

--------------------------------------------------------------------------------
                  (Insert assignee's soc. sec. or tax I.D. no.)

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

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

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

--------------------------------------------------------------------------------
              (Print or type assignee's name, address and zip code)

and irrevocably appoint ________________________________________________________
to transfer this Note on the books of the Issuers. The agent may substitute
another to act for him.

Date:  _______________

                                 Your Signature:
                                                --------------------------------
                                              (Sign exactly as your name appears
                                                       on the face of this Note)

Signature Guarantee*:  _________________________

* Participant in a recognized Signature Guarantee Medallion Program (or other
signature guarantor acceptable to the Trustee).

                                      A1-7
<PAGE>

                       OPTION OF HOLDER TO ELECT PURCHASE

         If you want to elect to have this Note purchased by the Issuers
pursuant to Section 4.10 or 4.15 of the Indenture, check the appropriate box
below:

                [ ] Section 4.10     [ ] Section 4.15

         If you want to elect to have only part of the Note purchased by the
Issuers pursuant to Section 4.10 or Section 4.15 of the Indenture, state the
amount you elect to have purchased:

                                $---------------

Date:  _______________

                                 Your Signature:
                                                --------------------------------
                                              (Sign exactly as your name appears
                                                       on the face of this Note)

                                 Tax Identification No.:
                                                        ------------------------

Signature Guarantee*:  _________________________

* Participant in a recognized Signature Guarantee Medallion Program (or other
signature guarantor acceptable to the Trustee).

                                      A1-8
<PAGE>

             SCHEDULE OF EXCHANGES OF INTERESTS IN THE GLOBAL NOTE*

         The following exchanges of a part of this Global Note for an interest
in another Global Note or for a Definitive Note, or exchanges of a part of
another Global Note or Definitive Note for an interest in this Global Note, have
been made:

<TABLE>
<CAPTION>
                                                                           Principal Amount
                                                                          of this Global Note       Signature of
                           Amount of decrease    Amount of increase in      following such       authorized officer
                           in Principal Amount      Principal Amount           decrease             of Trustee or
    Date of Exchange       of this Global Note    of this Global Note        (or increase)            Custodian
    ----------------       -------------------    -------------------        -------------            ---------
<S>                       <C>                   <C>                      <C>                     <C>

</TABLE>

* This schedule should be included only if the Note is issued in global form.

                                      A1-9
<PAGE>

                                                                      EXHIBIT A2

                  [Face of Regulation S Temporary Global Note]
--------------------------------------------------------------------------------
                                                           CUSIP/CINS __________

                          6.875% Senior Notes due 2013

No. ___                                                             $__________

                         SUBURBAN PROPANE PARTNERS, L.P.
                          SUBURBAN ENERGY FINANCE CORP.

promises to pay to [CEDE & CO.] or registered assigns,

the principal sum of ____________________________ DOLLARS on ___________, 20___.

Interest Payment Dates:  December 15 and June 15

Record Dates:  December 1 and June 1

Dated:  _______________, 200_

                                       SUBURBAN PROPANE PARTNERS, L.P.

                                       By:
                                           -------------------------------------
                                           Name:
                                           Title:

                                       SUBURBAN ENERGY FINANCE CORP.

                                       By:
                                           -------------------------------------
                                           Name:
                                           Title:

This is one of the Notes referred to
in the within-mentioned Indenture:

THE BANK OF NEW YORK,
  as Trustee

By:
    -----------------------------------
           Authorized Signatory

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

                                      A2-1
<PAGE>

                  [Back of Regulation S Temporary Global Note]
                          6.875% Senior Notes due 2013

THE RIGHTS ATTACHING TO THIS REGULATION S TEMPORARY GLOBAL NOTE, AND THE
CONDITIONS AND PROCEDURES GOVERNING ITS EXCHANGE FOR CERTIFICATED NOTES, ARE AS
SPECIFIED IN THE INDENTURE (AS DEFINED HEREIN). NEITHER THE HOLDER NOR THE
BENEFICIAL OWNERS OF THIS REGULATION S TEMPORARY GLOBAL NOTE SHALL BE ENTITLED
TO RECEIVE PAYMENT OF INTEREST HEREON.

THIS GLOBAL NOTE IS HELD BY THE DEPOSITARY (AS DEFINED IN THE INDENTURE
GOVERNING THIS NOTE) OR ITS NOMINEE IN CUSTODY FOR THE BENEFIT OF THE BENEFICIAL
OWNERS HEREOF, AND IS NOT TRANSFERABLE TO ANY PERSON UNDER ANY CIRCUMSTANCES
EXCEPT THAT (1) THE TRUSTEE MAY MAKE SUCH NOTATIONS HEREON AS MAY BE REQUIRED
PURSUANT TO SECTION 2.06 OF THE INDENTURE, (2) THIS GLOBAL NOTE MAY BE EXCHANGED
IN WHOLE BUT NOT IN PART PURSUANT TO SECTION 2.06(a) OF THE INDENTURE, (3) THIS
GLOBAL NOTE MAY BE DELIVERED TO THE TRUSTEE FOR CANCELLATION PURSUANT TO SECTION
2.11 OF THE INDENTURE AND (4) THIS GLOBAL NOTE MAY BE TRANSFERRED TO A SUCCESSOR
DEPOSITARY WITH THE PRIOR WRITTEN CONSENT OF SUBURBAN PROPANE.

UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR NOTES IN DEFINITIVE
FORM, THIS NOTE MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITARY TO A
NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR
ANOTHER NOMINEE OF THE DEPOSITARY OR BY THE DEPOSITARY OR ANY SUCH NOMINEE TO A
SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY. UNLESS THIS
CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
COMPANY (55 WATER STREET, NEW YORK, NEW YORK) ("DTC"), TO THE ISSUERS OR THEIR
AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE
ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS MAY BE
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO
CEDE & CO. OR SUCH OTHER ENTITY AS MAY BE REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
HEREOF, [CEDE & CO.], HAS AN INTEREST HEREIN.

"THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933, AS
AMENDED (THE "SECURITIES ACT"), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD
WITHIN THE UNITED STATES OR TO, OR FOR THE ACCOUNT OR BENEFIT OF, U.S. PERSONS,
EXCEPT AS SET FORTH BELOW. BY ITS ACQUISITION HEREOF, THE HOLDER (1) REPRESENTS
THAT (A) IT IS A "QUALIFIED INSTITUTIONAL BUYER" (AS DEFINED IN RULE 144A UNDER
THE SECURITIES ACT), OR (B) IT IS NOT A U.S. PERSON AND IS ACQUIRING THIS
SECURITY IN AN OFFSHORE TRANSACTION IN COMPLIANCE WITH RULE 904 UNDER THE
SECURITIES ACT; (2) AGREES THAT IT WILL NOT WITHIN TWO YEARS AFTER THE ORIGINAL
ISSUANCE OF THIS SECURITY RESELL OR OTHERWISE TRANSFER THIS SECURITY EXCEPT (A)
TO THE ISSUERS OR ANY SUBSIDIARY THEREOF, (B) INSIDE THE UNITED STATES TO A
QUALIFIED INSTITUTIONAL BUYER IN COMPLIANCE WITH RULE 144A UNDER THE SECURITIES
ACT, (C) TO AN INSTITUTIONAL "ACCREDITED INVESTOR" (AS DEFINED IN RULE
501(a)(1), (2), (3) OR (7) UNDER THE SECURITIES ACT (AN "ACCREDITED INVESTOR")),
(D) OUTSIDE THE UNITED STATES IN

                                      A2-2
<PAGE>

AN OFFSHORE TRANSACTION IN COMPLIANCE WITH RULE 904 UNDER THE SECURITIES ACT,
(E) PURSUANT TO THE EXEMPTION FROM REGISTRATION PROVIDED BY RULE 144 UNDER THE
SECURITIES ACT (IF AVAILABLE), OR (F) PURSUANT TO AN EFFECTIVE REGISTRATION
STATEMENT UNDER THE SECURITIES ACT (AND BASED UPON AN OPINION OF COUNSEL IF THE
ISSUERS SO REQUEST) AND (3) AGREES THAT IT WILL GIVE TO EACH PERSON TO WHOM THIS
SECURITY IS TRANSFERRED A NOTICE SUBSTANTIALLY TO THE EFFECT OF THIS LEGEND. IN
CONNECTION WITH ANY TRANSFER OF THIS SECURITY WITHIN TWO YEARS AFTER THE
ORIGINAL ISSUANCE DATE, IF THE PROPOSED TRANSFEREE IS AN ACCREDITED INVESTOR,
THE HOLDER MUST, PRIOR TO SUCH TRANSFER, FURNISH TO THE TRUSTEE OR THE ISSUERS
SUCH CERTIFICATIONS, IF LESS THAN $100,000, AND LEGAL OPINIONS AS ANY OF THEM
MAY REASONABLY REQUIRE TO CONFIRM THAT SUCH TRANSFER IS BEING MADE PURSUANT TO
AN EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT. AS USED HEREIN, THE TERMS "OFFSHORE
TRANSACTION," "UNITED STATES" AND "U.S. PERSON" HAVE THE MEANING GIVEN TO THEM
BY REGULATION S UNDER THE SECURITIES ACT. THE INDENTURE CONTAINS A PROVISION
REQUIRING THE TRUSTEE TO REFUSE TO REGISTER ANY TRANSFER OF THIS SECURITY IN
VIOLATION OF THE FOREGOING RESTRICTIONS."

         Capitalized terms used herein have the meanings assigned to them in the
Indenture referred to below unless otherwise indicated.

                  (1) INTEREST. Suburban Propane Partners, L.P., a Delaware
         limited partnership ("Suburban Propane") and Suburban Energy Finance
         Corp., a Delaware corporation ("Finance Corp." and, together with
         Suburban Propane, the "Issuers"), promise to pay interest on the
         principal amount of this Note at 6.875% per annum from
         ________________, 20__ until maturity and shall pay the Liquidated
         Damages, if any, payable pursuant to Section 5 of the Registration
         Rights Agreement referred to below. The Issuers will pay interest and
         Liquidated Damages, if any, semi-annually in arrears on December 15 and
         June 15 of each year, or if any such day is not a Business Day, on the
         next succeeding Business Day (each, an "Interest Payment Date").
         Interest on the Notes will accrue from the most recent date to which
         interest has been paid or, if no interest has been paid, from the date
         of issuance; provided that if there is no existing Default in the
         payment of interest, and if this Note is authenticated between a record
         date referred to on the face hereof and the next succeeding Interest
         Payment Date, interest shall accrue from such next succeeding Interest
         Payment Date; provided further that the first Interest Payment Date
         shall be _____________, 20__. The Issuers will pay interest (including
         post-petition interest in any proceeding under any Bankruptcy Law) on
         overdue principal and premium, if any, from time to time on demand at a
         rate that is 1% per annum in excess of the rate then in effect; it will
         pay interest (including post-petition interest in any proceeding under
         any Bankruptcy Law) on overdue installments of interest and Liquidated
         Damages, if any, (without regard to any applicable grace periods) from
         time to time on demand at a rate that is 1% per annum in excess of the
         rate then in effect to the extent lawful. Interest will be computed on
         the basis of a 360-day year of twelve 30-day months.

                  (2) METHOD OF PAYMENT. The Issuers will pay interest on the
         Notes (except defaulted interest) and Liquidated Damages, if any, to
         the Persons who are registered Holders of Notes at the close of
         business on the December 1 or June 1 next preceding the Interest
         Payment Date, even if such Notes are canceled after such record date
         and on or before such Interest Payment Date, except as provided in
         Section 2.12 of the Indenture with respect to defaulted interest. The
         Notes will be payable as to principal, premium and Liquidated Damages,
         if any, and interest at the office or agency of the Issuers maintained
         for such purpose within or without the City and State

                                      A2-3
<PAGE>

         of New York, or, at the option of the Issuers, payment of interest and
         Liquidated Damages, if any, may be made by check mailed to the Holders
         at their addresses set forth in the register of Holders; provided that
         payment by wire transfer of immediately available funds will be
         required with respect to principal of and interest, premium and
         Liquidated Damages, if any, on, all Global Notes and all other Notes
         the Holders of which will have provided wire transfer instructions to
         the Issuers or the Paying Agent. Such payment will be in such coin or
         currency of the United States of America as at the time of payment is
         legal tender for payment of public and private debts.

                  (3) PAYING AGENT AND REGISTRAR. Initially, The Bank of New
         York, the Trustee under the Indenture, will act as Paying Agent and
         Registrar. The Issuers may change any Paying Agent or Registrar without
         notice to any Holder. The Issuers or any of their Subsidiaries may act
         in any such capacity.

                  (4) INDENTURE. The Issuers issued the Notes under an Indenture
         dated as of December 23, 2003 (the "Indenture") among the Issuers and
         the Trustee. The terms of the Notes include those stated in the
         Indenture and those made part of the Indenture by reference to the TIA
         (15 U.S. Code ss.ss. 77aaa-77bbbb). The Notes are subject to all such
         terms, and Holders are referred to the Indenture and such Act for a
         statement of such terms. To the extent any provision of this Note
         conflicts with the express provisions of the Indenture, the provisions
         of the Indenture shall govern and be controlling.

                  (5) OPTIONAL REDEMPTION.

         (a) [Reserved]

         (b) At any time prior to December 15, 2006, the Issuers may on any one
or more occasions redeem up to 35% of the aggregate principal amount of Notes
issued under this Indenture at a redemption price of 106.875% of the principal
amount thereof, plus accrued and unpaid interest and Liquidated Damages, if any,
to the redemption date, with the net cash proceeds of one or more Equity
Offerings; provided that:

                  (i) at least 65% of the aggregate principal amount of Notes
         originally issued under this Indenture (excluding Notes held by
         Suburban Propane and its Subsidiaries) remains outstanding immediately
         after the occurrence of such redemption; and

                  (ii) the redemption must occur within 90 days of the date of
         the closing of such Equity Offering.

         (c) On or after December 15, 2008, the Issuers may redeem all or a part
of the Notes upon not less than 30 nor more than 60 days notice, at the
redemption prices (expressed as percentages of principal amount) set forth below
plus accrued and unpaid interest and Liquidated Damages, if any, thereon, to the
applicable redemption date, if redeemed during the twelve-month period beginning
on December 15 of the years indicated below, subject to the rights of Holders on
the relevant record date to receive interest on the relevant interest payment
date:

        Year                                                    Percentage
        ----                                                    ----------
        2008................................................     103.4375%
        2009................................................     102.2917%
        2010................................................     101.1458%
        2011 and thereafter.................................     100.0000%

                                      A2-4
<PAGE>

                  (6) MANDATORY REDEMPTION; SPECIAL REDEMPTION.

         The Issuers will not be required to make mandatory redemption payments
with respect to the Notes.

                  (7) REPURCHASE AT THE OPTION OF HOLDER.

                           (a) If there is a Change of Control, the Issuers will
         be required to make an offer (a "Change of Control Offer") to
         repurchase all or any part (equal to $1,000 or an integral multiple
         thereof) of each Holder's Notes at a purchase price equal to 101% of
         the aggregate principal amount thereof plus accrued and unpaid interest
         and Liquidated Damages thereon, if any, to the date of purchase,
         subject to the rights of Holders on the relevant record date to receive
         interest due on the relevant interest payment date (the "Change of
         Control Payment"). Within 30 days following any Change of Control, the
         Issuers will mail a notice to each Holder setting forth the procedures
         governing the Change of Control Offer as required by the Indenture.

                           (b) If Suburban Propane or any of its Restricted
         Subsidiaries consummates any Asset Sales, when the aggregate amount of
         Excess Proceeds exceeds $15.0 million, the Issuers will commence an
         offer to all Holders of Notes and all holders of other Indebtedness
         that is pari passu with the Notes containing provisions similar to
         those set forth in the Indenture with respect to offers to purchase or
         redeem with the proceeds of sales of assets (an "Asset Sale Offer")
         pursuant to Section 3.10 of the Indenture to purchase the maximum
         principal amount of Notes (including any Additional Notes) and other
         pari passu Indebtedness that may be purchased out of the Excess
         Proceeds. The offer price in any Asset Sale Offer will be payable in
         cash and equal to 100% of the principal amount thereof plus accrued and
         unpaid interest and Liquidated Damages thereon, if any, to the date of
         purchase, in accordance with the procedures set forth in the Indenture.
         To the extent that the aggregate amount of Notes (including any
         Additional Notes) and other pari passu Indebtedness tendered pursuant
         to an Asset Sale Offer is less than the Excess Proceeds, the Issuers
         (or such Restricted Subsidiary) may use such deficiency for any purpose
         not otherwise prohibited by the Indenture. If the aggregate principal
         amount of Notes and other pari passu Indebtedness surrendered by
         holders thereof exceeds the amount of Excess Proceeds, the Trustee
         shall select the Notes and other pari passu Indebtedness to be
         purchased on a pro rata basis. Holders of Notes that are the subject of
         an offer to purchase will receive an Asset Sale Offer from the Issuers
         prior to any related purchase date and may elect to have such Notes
         purchased by completing the form entitled "Option of Holder to Elect
         Purchase" attached to the Notes.

                  (8) NOTICE OF REDEMPTION. Notice of redemption will be mailed
         at least 30 days but not more than 60 days before the redemption date
         to each Holder whose Notes are to be redeemed at its registered
         address, except that redemption notices may be mailed more than 60 days
         prior to a redemption date if the notice is issued in connection with a
         defeasance of the Notes or a satisfaction or discharge of the
         Indenture. Notes in denominations larger than $1,000 may be redeemed in
         part but only in whole multiples of $1,000, unless all of the Notes
         held by a Holder are to be redeemed. On and after the redemption date
         interest ceases to accrue on Notes or portions thereof called for
         redemption.

                  (9) DENOMINATIONS, TRANSFER, EXCHANGE. The Notes are in
         registered form without coupons in denominations of $1,000 and integral
         multiples of $1,000. The transfer of Notes may be registered and Notes
         may be exchanged as provided in the Indenture. The Registrar and the

                                      A2-5
<PAGE>

         Trustee may require a Holder, among other things, to furnish
         appropriate endorsements and transfer documents and the Issuers may
         require a Holder to pay any taxes and fees required by law or permitted
         by the Indenture. The Issuers need not exchange or register the
         transfer of any Note or portion of a Note selected for redemption,
         except for the unredeemed portion of any Note being redeemed in part.
         Also, the Issuers need not exchange or register the transfer of any
         Notes for a period of 15 days before a selection of Notes to be
         redeemed or during the period between a record date and the
         corresponding Interest Payment Date.

                  (10) PERSONS DEEMED OWNERS. The registered Holder of a Note
         may be treated as its owner for all purposes.

                  (11) AMENDMENT, SUPPLEMENT AND WAIVER. Subject to certain
         exceptions, the Indenture or the Notes may be amended or supplemented
         with the consent of the Holders of at least a majority in principal
         amount of the then outstanding Notes and Additional Notes, if any,
         voting as a single class, and any existing Default or Event of Default
         compliance with any provision of the Indenture or the Notes may be
         waived with the consent of the Holders of a majority in principal
         amount of the then outstanding Notes and Additional Notes, if any,
         voting as a single class. Without the consent of any Holder of a Note,
         the Indenture or the Notes may be amended or supplemented to cure any
         ambiguity, defect or inconsistency, to provide for uncertificated Notes
         in addition to or in place of certificated Notes, to provide for the
         assumption of the Issuers' obligations to Holders of the Notes in case
         of a merger or consolidation, to make any change that would provide any
         additional rights or benefits to the Holders of the Notes or that does
         not adversely affect the legal rights under the Indenture of any such
         Holder, to comply with the requirements of the Commission in order to
         effect or maintain the qualification of the Indenture under the TIA, to
         conform the text of the Indenture or the Notes to any provision of the
         "Description of Notes" section of the Issuers' Offering Memorandum
         dated December 18, 2003, relating to the initial offering of the Notes,
         to the extent that such provision in that "Description of Notes" was
         intended to be a verbatim recitation of a provision of the Indenture or
         the Notes; to provide for the Issuance of Additional Notes in
         accordance with the limitations set forth in the Indenture, or to allow
         any Guarantor to execute a supplemental indenture to the Indenture
         and/or a Subsidiary Guarantee with respect to the Notes.

                  (12) DEFAULTS AND REMEDIES. Events of Default include: (i)
         default for 30 days in the payment when due of interest or Liquidated
         Damages on the Notes; (ii) default in payment when due of principal of
         or premium, if any, on the Notes when the same becomes due and payable
         at maturity, upon redemption (including in connection with an offer to
         purchase) or otherwise, (iii) failure by the Issuers for 45 days after
         notice to the Issuers by the Trustee or the Holders of at least 25% in
         principal amount of the Notes then outstanding voting as a single class
         to comply with certain other agreements in the Indenture or the Notes;
         (iv) default under certain other agreements relating to certain
         Indebtedness of the Issuers which default results in the acceleration
         of such Indebtedness prior to its express maturity; (v) certain final
         judgments for the payment of money that remain undischarged for a
         period of 60 days; (vi) certain events of bankruptcy or insolvency with
         respect to the Issuers or any Significant Subsidiary of Suburban
         Propane. If any Event of Default occurs and is continuing, the Trustee
         or the Holders of at least 25% in principal amount of the then
         outstanding Notes may declare all the Notes to be due and payable.
         Notwithstanding the foregoing, in the case of an Event of Default
         arising from certain events of bankruptcy or insolvency, all
         outstanding Notes will become due and payable without further action or
         notice. Holders may not enforce the Indenture or the Notes except as
         provided in the Indenture. Subject to certain limitations, Holders of a
         majority in principal amount of the then outstanding Notes may direct
         the Trustee in its exercise of any trust or power. The Trustee may
         withhold from Holders of the Notes notice of any continuing Default or
         Event of Default (except

                                      A2-6
<PAGE>

         a Default or Event of Default relating to the payment of principal or
         interest) if it determines that withholding notice is in their
         interest. The Holders of a majority in aggregate principal amount of
         the Notes then outstanding by notice to the Trustee may on behalf of
         the Holders of all of the Notes waive any existing Default or Event of
         Default and its consequences under the Indenture except a continuing
         Default or Event of Default in the payment of interest on, or the
         principal of, the Notes. The Issuers are required to deliver to the
         Trustee annually a statement regarding compliance with the Indenture,
         and the Issuers are required upon becoming aware of any Default or
         Event of Default, to deliver to the Trustee a statement specifying such
         Default or Event of Default.

                  (13) TRUSTEE DEALINGS WITH ISSUERS. The Trustee, in its
         individual or any other capacity, may make loans to, accept deposits
         from, and perform services for the Issuers or their Affiliates, and may
         otherwise deal with the Issuers or their Affiliates, as if it were not
         the Trustee.

                  (14) NO RECOURSE AGAINST OTHERS. No past, present or future
         limited partner, officer, employee, incorporator, unitholder,
         stockholder or Affiliate of the Issuers, as such, will have any
         liability for any obligations of the Issuers under this Note, the
         Indenture or for any claim based on, in respect of, or by reason of,
         such obligations or their creation. Each Holder of Notes by accepting a
         Note waives and releases all such liability. The waiver and release are
         part of the consideration for issuance of the Notes. The waiver may not
         be effective to waive liabilities under the federal securities laws.

                  (15) AUTHENTICATION. This Note will not be valid until
         authenticated by the manual signature of the Trustee or an
         authenticating agent.

                  (16) ABBREVIATIONS. Customary abbreviations may be used in the
         name of a Holder or an assignee, such as: TEN COM (= tenants in
         common), TEN ENT (= tenants by the entireties), JT TEN (= joint tenants
         with right of survivorship and not as tenants in common), CUST (=
         Custodian), and U/G/M/A (= Uniform Gifts to Minors Act).

                  (17) ADDITIONAL RIGHTS OF HOLDERS OF RESTRICTED GLOBAL NOTES
         AND RESTRICTED DEFINITIVE NOTES. In addition to the rights provided to
         Holders of Notes under the Indenture, Holders of Restricted Global
         Notes and Restricted Definitive Notes will have all the rights set
         forth in the Registration Rights Agreement dated as of December 23,
         2003, among the Issuers and the other parties named on the signature
         pages thereof or, in the case of Additional Notes, Holders of
         Restricted Global Notes and Restricted Definitive Notes will have the
         rights set forth in one or more registration rights agreements, if any,
         among the Issuers and the other parties thereto, relating to rights
         given by the Issues to the purchasers of any Additional Notes
         (collectively, the "Registration Rights Agreement").

                  (18) CUSIP NUMBERS. Pursuant to a recommendation promulgated
         by the Committee on Uniform Security Identification Procedures, the
         Issuers have caused CUSIP numbers to be printed on the Notes and the
         Trustee may use CUSIP numbers in notices of redemption as a convenience
         to Holders. No representation is made as to the accuracy of such
         numbers either as printed on the Notes or as contained in any notice of
         redemption and reliance may be placed only on the other identification
         numbers placed thereon.

         The Issuers will furnish to any Holder upon written request and without
charge a copy of the Indenture and/or the Registration Rights Agreement.
Requests may be made to:

                                      A2-7
<PAGE>

Suburban Propane Partners, L.P.
One Suburban Plaza
240 Route 10 West
Whippany, New Jersey 07981
Telecopier No.:  (973) 503-9395
Attention:  A. Davin D'Ambrosio

                                      A2-8
<PAGE>

                                 ASSIGNMENT FORM

         To assign this Note, fill in the form below:

(I) or (we) assign and transfer this Note to: __________________________________
                                               (Insert assignee's legal name)

--------------------------------------------------------------------------------
                  (Insert assignee's soc. sec. or tax I.D. no.)

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

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

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

--------------------------------------------------------------------------------
              (Print or type assignee's name, address and zip code)

and irrevocably appoint ________________________________________________________
to transfer this Note on the books of the Issuers.  The agent may substitute
another to act for him.

Date:  _______________

                                 Your Signature:
                                                --------------------------------
                                              (Sign exactly as your name appears
                                                       on the face of this Note)

Signature Guarantee*:  _________________________

* Participant in a recognized Signature Guarantee Medallion Program (or other
signature guarantor acceptable to the Trustee).

                                      A2-9
<PAGE>

                       OPTION OF HOLDER TO ELECT PURCHASE

         If you want to elect to have this Note purchased by the Issuers
pursuant to Section 4.10 or 4.15 of the Indenture, check the appropriate box
below:

                    [ ] Section 4.10    [ ] Section 4.15

         If you want to elect to have only part of the Note purchased by the
Issuers pursuant to Section 4.10 or Section 4.15 of the Indenture, state the
amount you elect to have purchased:

                                $---------------

Date:  _______________

                                 Your Signature:
                                                --------------------------------
                                              (Sign exactly as your name appears
                                                       on the face of this Note)

                                 Tax Identification No.:
                                                        ------------------------

Signature Guarantee*:  _________________________

* Participant in a recognized Signature Guarantee Medallion Program (or other
signature guarantor acceptable to the Trustee).

                                     A2-10
<PAGE>

           SCHEDULE OF EXCHANGES OF REGULATION S TEMPORARY GLOBAL NOTE

         The following exchanges of a part of this Regulation S Temporary Global
Note for an interest in another Global Note, or exchanges in part of another
other Restricted Global Note for an interest in this Regulation S Temporary
Global Note, have been made:

<TABLE>
<CAPTION>
                                                                           Principal Amount
                                                                          of this Global Note       Signature of
                           Amount of decrease    Amount of increase in      following such       authorized officer
                           in Principal Amount      Principal Amount           decrease             of Trustee or
    Date of Exchange       of this Global Note    of this Global Note        (or increase)            Custodian
    ----------------       -------------------    -------------------        -------------            ---------
<S>                        <C>                  <C>                      <C>                    <C>

</TABLE>

                                     A2-11
<PAGE>

                                                                       EXHIBIT B

                         FORM OF CERTIFICATE OF TRANSFER

Suburban Propane Partners, L.P.
Suburban Energy Finance Corp.
240 Route 10 West
Whippany, New Jersey  07981
Telecopier No.:  (973) 503-9395
Attention:  A. Davin D'Ambrosio

The Bank of New York
101 Barclay Street, Fl. 8W
New York, New York 10286

         Re:      6.875% Senior Notes due 2013
                  ----------------------------

         Reference is hereby made to the Indenture, dated as of December 23,
2003 (the "Indenture"), among Suburban Propane Partners, L.P. ("Suburban
Propane"), Suburban Energy Finance Corp. ("Finance Corp." and together with
Suburban Propane, the "Issuers"), the Guarantors party thereto and The Bank of
New York, as trustee. Capitalized terms used but not defined herein shall have
the meanings given to them in the Indenture.

         ___________________, (the "Transferor") owns and proposes to transfer
the Note[s] or interest in such Note[s] specified in Annex A hereto, in the
principal amount of $___________ in such Note[s] or interests (the "Transfer"),
to ___________________________ (the "Transferee"), as further specified in Annex
A hereto. In connection with the Transfer, the Transferor hereby certifies that:

                             [CHECK ALL THAT APPLY]

         1. [ ] CHECK IF TRANSFEREE WILL TAKE DELIVERY OF A BENEFICIAL INTEREST
IN THE 144A GLOBAL NOTE OR A RESTRICTED DEFINITIVE NOTE PURSUANT TO RULE 144A.
The Transfer is being effected pursuant to and in accordance with Rule 144A
under the Securities Act of 1933, as amended (the "Securities Act"), and,
accordingly, the Transferor hereby further certifies that the beneficial
interest or Definitive Note is being transferred to a Person that the Transferor
reasonably believes is purchasing the beneficial interest or Definitive Note for
its own account, or for one or more accounts with respect to which such Person
exercises sole investment discretion, and such Person and each such account is a
"qualified institutional buyer" within the meaning of Rule 144A in a transaction
meeting the requirements of Rule 144A, and such Transfer is in compliance with
any applicable blue sky securities laws of any state of the United States. Upon
consummation of the proposed Transfer in accordance with the terms of the
Indenture, the transferred beneficial interest or Definitive Note will be
subject to the restrictions on transfer enumerated in the Private Placement
Legend printed on the 144A Global Note and/or the Restricted Definitive Note and
in the Indenture and the Securities Act.

         2. [ ] CHECK IF TRANSFEREE WILL TAKE DELIVERY OF A BENEFICIAL INTEREST
IN THE REGULATION S TEMPORARY GLOBAL NOTE, THE REGULATION S PERMANENT GLOBAL
NOTE OR A RESTRICTED DEFINITIVE NOTE PURSUANT TO REGULATION S. The Transfer is
being effected pursuant to and in accordance with Rule 903 or Rule 904 under the
Securities Act and, accordingly, the Transferor hereby further certifies that
(i) the Transfer is not being made to a Person in the United States and (x) at
the time the buy order was originated, the Transferee was outside the United
States or such Transferor and any Person acting on its behalf reasonably
believed and believes that the Transferee was outside the United States or (y)
the transaction was executed in, on or through the facilities of a designated
offshore securities market and neither such Transferor nor any Person acting on
its behalf knows that the transaction was prearranged

                                      B-1
<PAGE>

with a buyer in the United States, (ii) no directed selling efforts have been
made in contravention of the requirements of Rule 903(b) or Rule 904(b) of
Regulation S under the Securities Act, (iii) the transaction is not part of a
plan or scheme to evade the registration requirements of the Securities Act and
(iv) if the proposed transfer is being made prior to the expiration of the
Restricted Period, the transfer is not being made to a U.S. Person or for the
account or benefit of a U.S. Person (other than an Initial Purchaser). Upon
consummation of the proposed transfer in accordance with the terms of the
Indenture, the transferred beneficial interest or Definitive Note will be
subject to the restrictions on Transfer enumerated in the Private Placement
Legend printed on the Regulation S Permanent Global Note, the Regulation S
Temporary Global Note and/or the Restricted Definitive Note and in the Indenture
and the Securities Act.

         3. [ ] CHECK AND COMPLETE IF TRANSFEREE WILL TAKE DELIVERY OF A
BENEFICIAL INTEREST IN A RESTRICTED DEFINITIVE NOTE PURSUANT TO ANY PROVISION OF
THE SECURITIES ACT OTHER THAN RULE 144A OR REGULATION S. The Transfer is being
effected in compliance with the transfer restrictions applicable to beneficial
interests in Restricted Global Notes and Restricted Definitive Notes and
pursuant to and in accordance with the Securities Act and any applicable blue
sky securities laws of any state of the United States, and accordingly the
Transferor hereby further certifies that (check one):

                  (a) [ ] such Transfer is being effected pursuant to and in
         accordance with Rule 144 under the Securities Act;

                                       or

                  (b) [ ] such Transfer is being effected to the Issuers or a
         subsidiary thereof;

                                       or

                  (c) [ ] such Transfer is being effected pursuant to an
         effective registration statement under the Securities Act and in
         compliance with the prospectus delivery requirements of the Securities
         Act.

         4. [ ] CHECK IF TRANSFEREE WILL TAKE DELIVERY OF A BENEFICIAL INTEREST
IN AN UNRESTRICTED GLOBAL NOTE OR OF AN UNRESTRICTED DEFINITIVE NOTE.

         (a) [ ] CHECK IF TRANSFER IS PURSUANT TO RULE 144. (i) The Transfer is
being effected pursuant to and in accordance with Rule 144 under the Securities
Act and in compliance with the transfer restrictions contained in the Indenture
and any applicable blue sky securities laws of any state of the United States
and (ii) the restrictions on transfer contained in the Indenture and the Private
Placement Legend are not required in order to maintain compliance with the
Securities Act. Upon consummation of the proposed Transfer in accordance with
the terms of the Indenture, the transferred beneficial interest or Definitive
Note will no longer be subject to the restrictions on transfer enumerated in the
Private Placement Legend printed on the Restricted Global Notes, on Restricted
Definitive Notes and in the Indenture.

         (b) [ ] CHECK IF TRANSFER IS PURSUANT TO REGULATION S. (i) The Transfer
is being effected pursuant to and in accordance with Rule 903 or Rule 904 under
the Securities Act and in compliance with the transfer restrictions contained in
the Indenture and any applicable blue sky securities laws of any state of the
United States and (ii) the restrictions on transfer contained in the Indenture
and the Private Placement Legend are not required in order to maintain
compliance with the Securities Act. Upon consummation of the proposed Transfer
in accordance with the terms of the Indenture, the transferred beneficial
interest or Definitive Note will no longer be subject to the restrictions on
transfer enumerated in

                                      B-2
<PAGE>

the Private Placement Legend printed on the Restricted Global Notes, on
Restricted Definitive Notes and in the Indenture.

         (c) [ ] CHECK IF TRANSFER IS PURSUANT TO OTHER EXEMPTION. (i) The
Transfer is being effected pursuant to and in compliance with an exemption from
the registration requirements of the Securities Act other than Rule 144, Rule
903 or Rule 904 and in compliance with the transfer restrictions contained in
the Indenture and any applicable blue sky securities laws of any State of the
United States and (ii) the restrictions on transfer contained in the Indenture
and the Private Placement Legend are not required in order to maintain
compliance with the Securities Act. Upon consummation of the proposed Transfer
in accordance with the terms of the Indenture, the transferred beneficial
interest or Definitive Note will not be subject to the restrictions on transfer
enumerated in the Private Placement Legend printed on the Restricted Global
Notes or Restricted Definitive Notes and in the Indenture.

         This certificate and the statements contained herein are made for your
benefit and the benefit of the Issuers.

                                       -----------------------------------------
                                              [Insert Name of Transferor]

                                       By:
                                           -------------------------------------
                                           Name:
                                           Title:

         Dated:  _______________________

                                      B-3
<PAGE>

                       ANNEX A TO CERTIFICATE OF TRANSFER

         1. The Transferor owns and proposes to transfer the following:

                            [CHECK ONE OF (a) OR (b)]

                (a) [ ] a beneficial interest in the:

                       (i) [ ] 144A Global Note (CUSIP _________), or

                       (ii) [ ] Regulation S Global Note (CUSIP _________), or

                (b) [ ] a Restricted Definitive Note.

         2. After the Transfer the Transferee will hold:

                                   [CHECK ONE]

                (a) [ ] a beneficial interest in the:

                       (i) [ ] 144A Global Note (CUSIP _________), or

                       (ii) [ ] Regulation S Global Note (CUSIP _________), or

                       (iii) [ ] Unrestricted Global Note (CUSIP _________); or

                (b) a Restricted Definitive Note; or

                (c) an Unrestricted Definitive Note,

                in accordance with the terms of the Indenture.

                                      B-4
<PAGE>

                                                                       EXHIBIT C

                         FORM OF CERTIFICATE OF EXCHANGE

Suburban Propane Partners, L.P.
Suburban Energy Finance Corp.
240 Route 10 West
Whippany, New Jersey  07981
Telecopier No.:  (973) 503-9395
Attention:  A. Davin D'Ambrosio

The Bank of New York
101 Barclay Street, Fl. 8W
New York, New York 10286

         Re:      6.875% Senior Notes due 2013
                  ----------------------------

                              (CUSIP ____________)

         Reference is hereby made to the Indenture, dated as of December 23,
2003 (the "Indenture"), among Suburban Propane Partners, L.P. ("Suburban
Propane"), Suburban Energy Finance Corp. ("Finance Corp." and together with
Suburban Propane, the "Issuers"), the Guarantors party thereto and The Bank of
New York, as trustee. Capitalized terms used but not defined herein shall have
the meanings given to them in the Indenture.

         __________________________, (the "Owner") owns and proposes to exchange
the Note[s] or interest in such Note[s] specified herein, in the principal
amount of $____________ in such Note[s] or interests (the "Exchange"). In
connection with the Exchange, the Owner hereby certifies that:

         1. EXCHANGE OF RESTRICTED DEFINITIVE NOTES OR BENEFICIAL INTERESTS IN A
RESTRICTED GLOBAL NOTE FOR UNRESTRICTED DEFINITIVE NOTES OR BENEFICIAL INTERESTS
IN AN UNRESTRICTED GLOBAL NOTE

         (a) [ ] CHECK IF EXCHANGE IS FROM BENEFICIAL INTEREST IN A RESTRICTED
GLOBAL NOTE TO BENEFICIAL INTEREST IN AN UNRESTRICTED GLOBAL NOTE. In connection
with the Exchange of the Owner's beneficial interest in a Restricted Global Note
for a beneficial interest in an Unrestricted Global Note in an equal principal
amount, the Owner hereby certifies (i) the beneficial interest is being acquired
for the Owner's own account without transfer, (ii) such Exchange has been
effected in compliance with the transfer restrictions applicable to the Global
Notes and pursuant to and in accordance with the Securities Act of 1933, as
amended (the "Securities Act"), (iii) the restrictions on transfer contained in
the Indenture and the Private Placement Legend are not required in order to
maintain compliance with the Securities Act and (iv) the beneficial interest in
an Unrestricted Global Note is being acquired in compliance with any applicable
blue sky securities laws of any state of the United States.

         (b) [ ] CHECK IF EXCHANGE IS FROM BENEFICIAL INTEREST IN A RESTRICTED
GLOBAL NOTE TO UNRESTRICTED DEFINITIVE NOTE. In connection with the Exchange of
the Owner's beneficial interest in a Restricted Global Note for an Unrestricted
Definitive Note, the Owner hereby certifies (i) the Definitive Note is being
acquired for the Owner's own account without transfer, (ii) such Exchange has
been effected in compliance with the transfer restrictions applicable to the
Restricted Global Notes and pursuant to and in accordance with the Securities
Act, (iii) the restrictions on transfer contained in the Indenture and the
Private Placement Legend are not required in order to maintain compliance with
the

                                      C-1
<PAGE>

Securities Act and (iv) the Definitive Note is being acquired in compliance with
any applicable blue sky securities laws of any state of the United States.

         (c) [ ] CHECK IF EXCHANGE IS FROM RESTRICTED DEFINITIVE NOTE TO
BENEFICIAL INTEREST IN AN UNRESTRICTED GLOBAL NOTE. In connection with the
Owner's Exchange of a Restricted Definitive Note for a beneficial interest in an
Unrestricted Global Note, the Owner hereby certifies (i) the beneficial interest
is being acquired for the Owner's own account without transfer, (ii) such
Exchange has been effected in compliance with the transfer restrictions
applicable to Restricted Definitive Notes and pursuant to and in accordance with
the Securities Act, (iii) the restrictions on transfer contained in the
Indenture and the Private Placement Legend are not required in order to maintain
compliance with the Securities Act and (iv) the beneficial interest is being
acquired in compliance with any applicable blue sky securities laws of any state
of the United States.

         (d) [ ] CHECK IF EXCHANGE IS FROM RESTRICTED DEFINITIVE NOTE TO
UNRESTRICTED DEFINITIVE NOTE. In connection with the Owner's Exchange of a
Restricted Definitive Note for an Unrestricted Definitive Note, the Owner hereby
certifies (i) the Unrestricted Definitive Note is being acquired for the Owner's
own account without transfer, (ii) such Exchange has been effected in compliance
with the transfer restrictions applicable to Restricted Definitive Notes and
pursuant to and in accordance with the Securities Act, (iii) the restrictions on
transfer contained in the Indenture and the Private Placement Legend are not
required in order to maintain compliance with the Securities Act and (iv) the
Unrestricted Definitive Note is being acquired in compliance with any applicable
blue sky securities laws of any state of the United States.

         2. EXCHANGE OF RESTRICTED DEFINITIVE NOTES OR BENEFICIAL INTERESTS IN
RESTRICTED GLOBAL NOTES FOR RESTRICTED DEFINITIVE NOTES OR BENEFICIAL INTERESTS
IN RESTRICTED GLOBAL NOTES

         (a) [ ] CHECK IF EXCHANGE IS FROM BENEFICIAL INTEREST IN A RESTRICTED
GLOBAL NOTE TO RESTRICTED DEFINITIVE NOTE. In connection with the Exchange of
the Owner's beneficial interest in a Restricted Global Note for a Restricted
Definitive Note with an equal principal amount, the Owner hereby certifies that
the Restricted Definitive Note is being acquired for the Owner's own account
without transfer. Upon consummation of the proposed Exchange in accordance with
the terms of the Indenture, the Restricted Definitive Note issued will continue
to be subject to the restrictions on transfer enumerated in the Private
Placement Legend printed on the Restricted Definitive Note and in the Indenture
and the Securities Act.

         (b) [ ] CHECK IF EXCHANGE IS FROM RESTRICTED DEFINITIVE NOTE TO
BENEFICIAL INTEREST IN A RESTRICTED GLOBAL NOTE. In connection with the Exchange
of the Owner's Restricted Definitive Note for a beneficial interest in the
[CHECK ONE] 144A Global Note, Regulation S Global Note, with an equal principal
amount, the Owner hereby certifies (i) the beneficial interest is being acquired
for the Owner's own account without transfer and (ii) such Exchange has been
effected in compliance with the transfer restrictions applicable to the
Restricted Global Notes and pursuant to and in accordance with the Securities
Act, and in compliance with any applicable blue sky securities laws of any state
of the United States. Upon consummation of the proposed Exchange in accordance
with the terms of the Indenture, the beneficial interest issued will be subject
to the restrictions on transfer enumerated in the Private Placement Legend
printed on the relevant Restricted Global Note and in the Indenture and the
Securities Act.

         This certificate and the statements contained herein are made for your
benefit and the benefit of the Issuers.

                                      C-2
<PAGE>

                                       -----------------------------------------
                                              [Insert Name of Transferor]

                                       By:
                                          --------------------------------------
                                          Name:
                                          Title:

Dated:  ______________________

                                      C-3
<PAGE>

                                                                       EXHIBIT D

                            FORM OF CERTIFICATE FROM
                   ACQUIRING INSTITUTIONAL ACCREDITED INVESTOR

Suburban Propane Partners, L.P.
Suburban Energy Finance Corp.
240 Route 10 West
Whippany, New Jersey  07981
Telecopier No.:  (973) 503-9395
Attention:  A. Davin D'Ambrosio

The Bank of New York
101 Barclay Street, Fl. 8W
New York, New York 10286

         Re:  6.875% Senior Notes due 2013
              ----------------------------

         Reference is hereby made to the Indenture, dated as of December 23,
2003 (the "Indenture"), among Suburban Propane Partners, L.P. and Suburban
Energy Finance Corp., as issuers (the "Issuers"), and The Bank of New York, as
trustee. Capitalized terms used but not defined herein shall have the meanings
given to them in the Indenture.

         In connection with our proposed purchase of $____________ aggregate
principal amount of:

         (a) [ ] a beneficial interest in a Global Note, or

         (b) [ ] a Definitive Note,

         we confirm that:

         1. We understand that any subsequent transfer of the Notes or any
interest therein is subject to certain restrictions and conditions set forth in
the Indenture and the undersigned agrees to be bound by, and not to resell,
pledge or otherwise transfer the Notes or any interest therein except in
compliance with, such restrictions and conditions and the Securities Act of
1933, as amended (the "Securities Act").

         2. We understand that the offer and sale of the Notes have not been
registered under the Securities Act, and that the Notes and any interest therein
may not be offered or sold except as permitted in the following sentence. We
agree, on our own behalf and on behalf of any accounts for which we are acting
as hereinafter stated, that if we should sell the Notes or any interest therein,
we will do so only (A) to the Issuers or any subsidiary thereof, (B) in
accordance with Rule 144A under the Securities Act to a "qualified institutional
buyer" (as defined therein), (C) to an institutional "accredited investor" (as
defined below) that, prior to such transfer, furnishes (or has furnished on its
behalf by a U.S. broker-dealer) to you and to the Issuers a signed letter
substantially in the form of this letter and, if such transfer is in respect of
a principal amount of Notes, at the time of transfer of less than $100,000, an
Opinion of Counsel in form reasonably acceptable to the Issuers to the effect
that such transfer is in compliance with the Securities Act, (D) outside the
United States in accordance with Rule 904 of Regulation S under the Securities
Act, (E) pursuant to the provisions of Rule 144(k) under the Securities Act or
(F) pursuant to an effective registration statement under the Securities Act,
and we further agree to provide to any Person purchasing the Definitive Note or
beneficial interest in a Global Note from us in a transaction meeting the
requirements of clauses (A) through (E) of this paragraph a notice advising such
purchaser that resales thereof are restricted as stated herein.

                                      D-1
<PAGE>

         3. We understand that, on any proposed resale of the Notes or
beneficial interest therein, we will be required to furnish to you and the
Issuers such certifications, legal opinions and other information as you and the
Issuers may reasonably require to confirm that the proposed sale complies with
the foregoing restrictions. We further understand that the Notes purchased by us
will bear a legend to the foregoing effect.

         4. We are an institutional "accredited investor" (as defined in Rule
501(a)(1), (2), (3) or (7) of Regulation D under the Securities Act) and have
such knowledge and experience in financial and business matters as to be capable
of evaluating the merits and risks of our investment in the Notes, and we and
any accounts for which we are acting are each able to bear the economic risk of
our or its investment.

         5. We are acquiring the Notes or beneficial interest therein purchased
by us for our own account or for one or more accounts (each of which is an
institutional "accredited investor") as to each of which we exercise sole
investment discretion.

         You and the Issuers are entitled to rely upon this letter and are
irrevocably authorized to produce this letter or a copy hereof to any interested
party in any administrative or legal proceedings or official inquiry with
respect to the matters covered hereby.

                                       -----------------------------------------
                                          [Insert Name of Accredited Investor]

                                       By:
                                          --------------------------------------
                                          Name:
                                          Title:

Dated:  _______________________

                                      D-2
<PAGE>

                                                                       EXHIBIT E

                         [FORM OF NOTATION OF GUARANTEE]

         For value received, each Guarantor (which term includes any successor
Person under the Indenture) has, jointly and severally, unconditionally
guaranteed, to the extent set forth in the Indenture and subject to the
provisions in the Indenture dated as of December 23, 2003 (the "Indenture")
among Suburban Propane Partners, L.P. ("Suburban Propane"), Suburban Energy
Finance Corp. ("Finance Corp" and together with Suburban Propane, the
"Issuers"), the Guarantors party thereto and The Bank of New York, as trustee
(the "Trustee"), (a) the due and punctual payment of the principal of, premium
and Liquidated Damages, if any, and interest on, the Notes, whether at maturity,
by acceleration, redemption or otherwise, the due and punctual payment of
interest on overdue principal of and interest on the Notes, if any, if lawful,
and the due and punctual performance of all other obligations of the Issuers to
the Holders or the Trustee all in accordance with the terms of the Indenture and
(b) in case of any extension of time of payment or renewal of any Notes or any
of such other obligations, that the same will be promptly paid in full when due
or performed in accordance with the terms of the extension or renewal, whether
at stated maturity, by acceleration or otherwise. The obligations of the
Guarantors to the Holders of Notes and to the Trustee pursuant to the Subsidiary
Guarantee and the Indenture are expressly set forth in Article 10 of the
Indenture and reference is hereby made to the Indenture for the precise terms of
the Subsidiary Guarantee. Each Holder of a Note, by accepting the same, (a)
agrees to and shall be bound by such provisions (b) authorizes and directs the
Trustee, on behalf of such Holder, to take such action as may be necessary or
appropriate to effectuate the subordination as provided in the Indenture and (c)
appoints the Trustee attorney-in-fact of such Holder for such purpose.

         Capitalized terms used but not defined herein have the meanings given
to them in the Indenture.

                                       [NAME OF GUARANTOR(S)]

                                       By:
                                          --------------------------------------
                                       Name:
                                       Title:

                                      E-1
<PAGE>

                                                                       EXHIBIT F

                         [FORM OF SUPPLEMENTAL INDENTURE
                    TO BE DELIVERED BY SUBSEQUENT GUARANTORS]

         SUPPLEMENTAL INDENTURE (this "Supplemental Indenture"), dated as of
________________, 200__, among __________________ (the "Guaranteeing
Subsidiary"), a subsidiary of Suburban Propane Partners, L.P. (or its permitted
successor), a Delaware limited partnership ("Suburban Propane"), Suburban Energy
Finance Corp., a Delaware corporation ("Finance Corp." and together with
Suburban Propane, the "Issuers"), the other Guarantors (as defined in the
Indenture referred to herein) and The Bank of New York as trustee under the
Indenture referred to below (the "Trustee").

                               W I T N E S S E T H

         WHEREAS, the Issuers have heretofore executed and delivered to the
Trustee an indenture (the "Indenture"), dated as of December 23, 2003 providing
for the issuance of 6.875% Senior Notes due 2013 (the "Notes");

         WHEREAS, the Indenture provides that under certain circumstances the
Guaranteeing Subsidiary shall execute and deliver to the Trustee a supplemental
indenture pursuant to which the Guaranteeing Subsidiary shall unconditionally
guarantee all of the Issuers' Obligations under the Notes and the Indenture on
the terms and conditions set forth herein (the "Subsidiary Guarantee"); and

         WHEREAS, pursuant to Section 9.01 of the Indenture, the Trustee is
authorized to execute and deliver this Supplemental Indenture.

         NOW THEREFORE, in consideration of the foregoing and for other good and
valuable consideration, the receipt of which is hereby acknowledged, the
Guaranteeing Subsidiary and the Trustee mutually covenant and agree for the
equal and ratable benefit of the Holders of the Notes as follows:

         1. CAPITALIZED TERMS. Capitalized terms used herein without definition
shall have the meanings assigned to them in the Indenture.

         2. AGREEMENT TO GUARANTEE. The Guaranteeing Subsidiary hereby agrees to
provide an unconditional Guarantee on the terms and subject to the conditions
set forth in the Subsidiary Guarantee and in the indenture including but not
limited to Article 10 thereof.

         4. NO RECOURSE AGAINST OTHERS. No past, present or future director,
officer, employee, incorporator, stockholder or agent of the Guaranteeing
Subsidiary, as such, shall have any liability for any obligations of the Issuers
or any Guaranteeing Subsidiary under the Notes, any Subsidiary Guarantees, the
Indenture or this Supplemental Indenture or for any claim based on, in respect
of, or by reason of, such obligations or their creation. Each Holder of the
Notes by accepting a Note waives and releases all such liability. The waiver and
release are part of the consideration for issuance of the Notes. Such waiver may
not be effective to waive liabilities under the federal securities laws and it
is the view of the Commission that such a waiver is against public policy.

         5. NEW YORK LAW TO GOVERN. THE INTERNAL LAW OF THE STATE OF NEW YORK
SHALL GOVERN AND BE USED TO CONSTRUE THIS SUPPLEMENTAL INDENTURE BUT WITHOUT
GIVING EFFECT TO APPLICABLE PRINCIPLES OF CONFLICTS OF LAW TO THE EXTENT THAT
THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION WOULD BE REQUIRED THEREBY.

                                      F-1
<PAGE>

         6. COUNTERPARTS. The parties may sign any number of copies of this
Supplemental Indenture. Each signed copy shall be an original, but all of them
together represent the same agreement.

         7. EFFECT OF HEADINGS. The Section headings herein are for convenience
only and shall not affect the construction hereof.

         8. THE TRUSTEE. The Trustee shall not be responsible in any manner
whatsoever for or in respect of the validity or sufficiency of this Supplemental
Indenture or for or in respect of the recitals contained herein, all of which
recitals are made solely by the Guaranteeing Subsidiary and the Issuers.

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

         Dated:  _______________, 20___

                                       [GUARANTEEING SUBSIDIARY]

                                       By:  _______________________________
                                       Name:
                                       Title:

                                       SUBURBAN PROPANE PARTNERS, L.P.

                                       By:  _______________________________
                                       Name:
                                       Title:

                                       SUBURBAN ENERGY FINANCE CORP.

                                       By:  _______________________________
                                       Name:
                                       Title:

                                       [EXISTING GUARANTORS]

                                       By:  _______________________________
                                       Name:
                                       Title:

                                       THE BANK OF NEW YORK, as Trustee

                                       By:  _______________________________
                                            Authorized Signatory

                                      F-2exv10w68

 

Exhibit 10.68

CORINTHIAN COLLEGES, INC.

2003 PERFORMANCE AWARD PLAN

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Page
	 	1.	 	 	THE PLAN	 	 	1	 
	 	 	 	 	 	1.1	 	 	Purpose
	 	 	1	 
	 	 	 	 	 	1.2	 	 	Administration and Authorization; Power and Procedure
	 	 	1	 
	 	 	 	 	 	1.3	 	 	Participation
	 	 	3	 
	 	 	 	 	 	1.4	 	 	Shares Available for Awards; Share Limits
	 	 	4	 
	 	 	 	 	 	1.5	 	 	Grant of Awards
	 	 	5	 
	 	 	 	 	 	1.6	 	 	Award Period
	 	 	5	 
	 	 	 	 	 	1.7	 	 	Limitations on Exercise and Vesting of Awards
	 	 	6	 
	 	 	 	 	 	1.8	 	 	No Transferability; Limited Exception to Transfer Restrictions
	 	 	6	 
	 	 	 	 	 	1.9	 	 	Consideration for Common Stock or Awards
	 	 	7	 
	 	2.	 	 	OPTIONS	 	 	8	 
	 	 	 	 	 	2.1	 	 	Grants
	 	 	8	 
	 	 	 	 	 	2.2	 	 	Option Price
	 	 	8	 
	 	 	 	 	 	2.3	 	 	Limitations on Grant and Terms of Incentive Stock Options
	 	 	9	 
	 	3.	 	 	STOCK APPRECIATION RIGHTS (INCLUDING LIMITED STOCK APPRECIATION RIGHTS)	 	 	9	 
	 	 	 	 	 	3.1	 	 	Grants
	 	 	9	 
	 	 	 	 	 	3.2	 	 	Exercise of Stock Appreciation Rights
	 	 	10	 
	 	 	 	 	 	3.3	 	 	Payment
	 	 	10	 
	 	 	 	 	 	3.4	 	 	Limited Stock Appreciation Rights
	 	 	11	 
	 	4.	 	 	RESTRICTED STOCK AND STOCK UNIT AWARDS	 	 	11	 
	 	 	 	 	 	4.1	 	 	Grants
	 	 	11	 
	 	 	 	 	 	4.2	 	 	Restrictions
	 	 	12	 
	 	 	 	 	 	4.3	 	 	Return to the Corporation
	 	 	12	 
	 	5.	 	 	PERFORMANCE SHARE AWARDS AND STOCK BONUSES	 	 	12	 
	 	 	 	 	 	5.1	 	 	Grants of Performance Share Awards
	 	 	12	 
	 	 	 	 	 	5.2	 	 	Section 162(m) Performance-Based Awards
	 	 	13	 
	 	 	 	 	 	5.3	 	 	Grants of Stock Bonuses
	 	 	15	 
	 	 	 	 	 	5.4	 	 	Deferred Payments
	 	 	15	 
	 	 	 	 	 	5.5	 	 	Cash Bonus Awards
	 	 	15	 

-i-

 

TABLE OF CONTENTS

(continued)

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Page
	 	6.	 	 	OTHER PROVISIONS	 	 	15	 
	 	 	 	 	 	6.1	 	 	Rights of Eligible Persons, Participants and Beneficiaries
	 	 	15	 
	 	 	 	 	 	6.2	 	 	Effects of Termination of Employment; Termination of Subsidiary Status;
Discretionary Provisions
	 	 	16	 
	 	 	 	 	 	6.3	 	 	Adjustments; Acceleration
	 	 	18	 
	 	 	 	 	 	6.4	 	 	Compliance with Laws
	 	 	22	 
	 	 	 	 	 	6.5	 	 	Tax Withholding
	 	 	22	 
	 	 	 	 	 	6.6	 	 	Plan Amendment, Termination and Suspension
	 	 	22	 
	 	 	 	 	 	6.7	 	 	Privileges of Stock Ownership
	 	 	23	 
	 	 	 	 	 	6.8	 	 	Effective Date of the Plan
	 	 	23	 
	 	 	 	 	 	6.9	 	 	Term of the Plan
	 	 	23	 
	 	 	 	 	 	6.10	 	 	Governing Law/Construction/Severability
	 	 	24	 
	 	 	 	 	 	6.11	 	 	Captions
	 	 	24	 
	 	 	 	 	 	6.12	 	 	Non-Exclusivity of Plan
	 	 	24	 
	 	 	 	 	 	6.13	 	 	No Corporate Action Restriction
	 	 	25	 
	 	 	 	 	 	6.14	 	 	Other Company Benefit and Compensation Programs
	 	 	25	 
	 	 	 	 	 	6.15	 	 	Stock-Based Awards in Substitution for Stock Options or Awards Granted
by Other Corporation
	 	 	25	 
	 	7.	 	 	DEFINITIONS	 	 	26	 

-ii-

 

CORINTHIAN COLLEGES, INC.

2003 PERFORMANCE AWARD PLAN

	1.	 	The Plan.

	 	1.1 	 	Purpose. The purpose of this Plan is to promote the success of the
Company and the interests of its stockholders by attracting, motivating,
retaining and rewarding directors, officers, employees and other eligible
persons with awards and incentives for high levels of individual
performance and improved financial performance of the Company.
Capitalized terms used herein are defined in Section 7.

	 	1.2 	 	Administration and Authorization; Power and Procedure.

	 	1.2.1 	 	The Administrator. This Plan shall be administered by and all
Awards under this Plan shall be authorized by the Administrator. The
“Administrator” means the Board or one or more committees appointed by
the Board or another committee (within its delegated authority) to
administer all or certain aspects of this Plan. Any such committee
shall be comprised solely of one or more directors of the Corporation
or such number of directors as may be required under applicable law. A
committee may delegate some or all of its authority to another
committee so constituted. The Board or a committee comprised solely of
directors of the Corporation may also delegate, to the extent permitted
by Section 157(c) of the Delaware General Corporation Law and any other
applicable law, to one or more officers of the Corporation, its powers
under this Plan (a) to designate the officers and employees of the
Company who will receive grants of rights or options to purchase shares
of Common Stock, and (b) to determine the number of rights or options
to be received by them, pursuant to a resolution that specifies the
total number of rights or options that may be granted under the
delegation, provided that no officer may be delegated the power to
designate himself or herself as a recipient of such options or rights.
The Board may delegate different levels of authority to different
committees with administrative and grant authority under this Plan.
Unless otherwise provided in the Bylaws of the Corporation or the
applicable charter of any Administrator: (a) a majority of the members
of the acting Administrator shall constitute a quorum, and (b) the vote
of a majority of the members present assuming the presence of a quorum
or the unanimous written consent of the members of the Administrator
shall constitute action by the acting Administrator.

	 	 	 	With respect to awards intended to satisfy the requirements for
performance-based compensation under Section 162(m) of the Code, this
Plan shall be administered by a committee consisting solely of two or
more “outside directors” of the Corporation (as this requirement is
applied under Section 162(m) of the Code); provided, however, that the
failure to satisfy such requirement shall not affect the validity of
the action of any committee otherwise duly authorized and acting in
the matter. Award grants, and
transactions in or involving awards, intended to be exempt under Rule
16b-3 under

1

 

	 	 	 	the Exchange Act, must be duly and timely authorized by
the Board or a committee consisting solely of two or more
“non-employee directors” of the Corporation (as this requirement is
applied under Rule 16b-3 promulgated under the Exchange Act). To the
extent required by any applicable listing agency, this Plan shall be
administered by a committee composed entirely of independent directors
of the Corporation (within the meaning of the applicable listing
agency).

	 	1.2.2 	 	Plan Awards; Interpretation; Powers of Administrator. Subject to
the express provisions of this Plan and any express limitations on the
delegated authority of an Administrator, the Administrator will have
the authority to:

	 	(a)	 	determine eligibility and, from the group of Eligible
Persons, select the particular Eligible Persons who will receive
Awards under this Plan;

	 	(b)	 	grant Awards to Eligible Persons, determine the price at
which securities will be offered or awarded and the amount of
securities to be offered or awarded to any of such persons,
determine the other specific terms and conditions of such Awards
consistent with the express limits of this Plan, and establish the
installments (if any) in which such Awards will become exercisable
or will vest (which may include, without limitation, performance
and/or time-based schedules), or determine that no delayed
exercisability or vesting is required, establish any applicable
performance targets, and establish the events of termination or
reversion of such Awards;

	 	(c)	 	approve the forms of Award Agreements (which need not be
identical either as to type of Award or among Participants);

	 	(d)	 	construe and interpret this Plan and any agreements
defining the rights and obligations of the Company and Participants
under this Plan, further define the terms used in this Plan, and
prescribe, amend and rescind rules and regulations relating to the
administration of this Plan or the Awards granted under this Plan;

	 	(e)	 	cancel, modify, or waive the Corporation’s rights with
respect to, or modify, discontinue, suspend, or terminate any or
all outstanding Awards held by Eligible Persons, subject to any
required consent under Section 6.6 and any stockholder approval
required under Section 6.6.5;

	 	(f)	 	accelerate or extend the exercisability or extend the term
of any or all such outstanding Awards within the maximum ten-year
term of Awards under Section 1.6 in such circumstances as the
Administrator may deem appropriate (including, without limitation,
in connection with a termination of employment or services or other
events of a personal nature);

	 	(g)	 	determine the date of grant of an award, which may be a
designated date after but not before the date of the
Administrator’s action (unless otherwise designated by the Administrator, the date of grant of an award shall be the date
upon which the Administrator took the action granting an award);

2

 

	 	(h)	 	determine whether, and the extent to which, adjustments are
required pursuant to Section 6.3 hereof and authorize the
termination, conversion, substitution or succession of awards upon
the occurrence of an event of the type described in Section 6.3;

	 	(i)	 	acquire or settle (subject to Sections 6.3 and 6.6) rights
under awards in cash, stock of equivalent value, or other
consideration; and

	 	(j)	 	determine Fair Market Value for Plan purposes and make all
other determinations and take such other action as contemplated by
this Plan or as may be necessary or advisable for the
administration of this Plan and the effectuation of its purposes.

	 	1.2.3 	 	Binding Determinations. Any action taken by, or inaction of, the
Corporation, any Subsidiary, or the Administrator relating or pursuant
to this Plan and within its authority hereunder or under applicable law
shall be within the absolute discretion of that entity or body and
shall be conclusive and binding upon all persons. Neither the Board
nor any Board committee, nor any member thereof or person acting at the
direction thereof, shall be liable for any act, omission,
interpretation, construction or determination made in good faith in
connection with this Plan (or any Award made under this Plan), and all
such persons shall be entitled to indemnification and reimbursement by
the Company in respect of any claim, loss, damage or expense
(including, without limitation, attorneys’ fees) arising or resulting
therefrom to the fullest extent permitted by law and/or under any
directors and officers liability insurance coverage that may be in
effect from time to time.

	 	1.2.4 	 	Reliance on Experts. In making any determination or in taking or
not taking any action under this Plan, the Administrator or the Board,
as the case may be, may obtain and may rely upon the advice of experts,
including employees of and professional advisors to the Corporation.
No director, officer or agent of the Company will be liable for any
such action or determination taken or made or omitted in good faith.

	 	1.2.5 	 	Delegation. The Administrator may delegate ministerial,
non-discretionary functions to individuals who are officers or
employees of the Company.

	 	1.3 	 	Participation. Discretionary Awards may be granted by the Administrator
only to those persons that the Administrator determines to be Eligible
Persons. An Eligible Person who has been granted an Award may, if
otherwise eligible, be granted additional Awards if the Administrator so
determines.

3

 

	 	1.4 	 	Shares Available for Awards; Share Limits.

	 	1.4.1 	 	Shares Available. Subject to the provisions of Section 6.3, the
capital stock that may be delivered under this Plan will be shares of
the Corporation’s authorized but unissued Common Stock and any shares
of its Common Stock held as treasury shares. The shares may be
delivered for any lawful consideration.

	 	1.4.2 	 	Share Limits. The maximum number of shares of Common Stock that
may be delivered pursuant to Awards granted to Eligible Persons under
this Plan (the “Share Limit”) is equal to the sum of (a) 2,700,000
shares, plus (b) the number of any shares subject to stock options
granted under the Corporation’s 1998 Performance Award Plan (the “1998
Plan”) which expire, or for any reason are cancelled or terminated,
after the Effective Date (as defined in Section 8.6.1) without being
exercised. The following limits also apply with respect to awards
granted under this Plan:

	 	(a)	 	The maximum number of shares of Common Stock that may be
delivered pursuant to options qualified as incentive stock options
granted under this Plan is 2,700,000 shares.

	 	(b)	 	The maximum number of shares of Common Stock subject to
those Options and Stock Appreciation Rights that are granted during
any calendar year to any individual under this Plan is 500,000
shares.

	 	(c)	 	The maximum number of shares of Common Stock subject to all
Awards that are granted during any calendar year to any individual
under this Plan is 500,000 shares. This limit does not apply,
however, to shares delivered in respect of compensation earned but
deferred.

	 	(d)	 	The maximum number of shares of Common Stock that may be
delivered pursuant to awards granted to Non-Employee Directors in
the aggregate is 400,000 shares. This limit does not apply,
however, to shares delivered in respect of compensation earned but
deferred.

	 	(e)	 	The maximum number of shares of Common Stock that may be
delivered pursuant to awards granted under this Plan, other than in
the circumstances described in the next sentence, is 1,000,000
shares. This limit does not apply, however, to the following: (i)
shares delivered in respect of compensation earned but deferred,
and (ii) except as expressly provided in Section 2.2.1 or Section
3.3.1, as applicable (with respect to “discounted” Option or SAR
grants which shall count against this limit to the extent provided
in such Section), shares delivered pursuant to Option or SAR
grants.

	 	(f)	 	Additional limits with respect to Performance-Based Awards
are set forth in Section 5.2.

4

 

Each of the foregoing numerical limits is subject to adjustment as
contemplated by Section 1.4.3, Section 6.4, and Section 6.15.

	 	1.4.3 	 	Awards Settled in Cash, Reissue of Awards and Shares. To the
extent that an Award is settled in cash or a form other than shares of
Common Stock, the shares that would have been delivered had there been
no such cash or other settlement shall not be counted against the
shares available for issuance under this Plan. In the event that
shares are delivered in respect of a dividend equivalent, Stock
Appreciation Right, or other Award, only the actual number of shares
delivered with respect to the Award shall be counted against the share
limits of this Plan. Shares that are subject to or underlie Awards
which expire or for any reason are cancelled or terminated, are
forfeited, fail to vest, or for any other reason are not paid or
delivered under this Plan shall again be available for subsequent
Awards under this Plan. Shares that are exchanged by a Participant or
withheld by the Corporation as full or partial payment in connection
with any Award under this Plan or the 1998 Plan (with respect to such a
payment in connection with any award under the 1998 Plan, only to the
extent such transaction occurs after the Effective Date), as well as
any shares exchanged by a Participant or withheld by the Company to
satisfy the tax withholding obligations related to any award under this
Plan or the 1998 Plan (with respect to such an exchange or withholding
in connection with any award under the 1998 Plan, only to the extent
such transaction occurs after the Effective Date), shall be available
for subsequent awards under this Plan. Refer to Section 6.15 for
application of the foregoing share limits with respect to assumed
awards. The foregoing adjustments to the share limits of this Plan are
subject to any applicable limitations under Section 162(m) of the Code
with respect to awards intended as performance-based compensation
thereunder and are further subject to any applicable limitations under
Section 422 of the Code with respect to awards intended as Incentive
Stock Options.

	 	1.4.4 	 	Reservation of Shares. The Corporation shall at all times reserve
a number of shares of Common Stock sufficient to cover the
Corporation’s obligations and contingent obligations to deliver shares
with respect to Awards then outstanding under this Plan (exclusive of
any dividend equivalent obligations to the extent the Corporation has
the right to settle such rights in cash).

	 	1.5 	 	Grant of Awards. Subject to the express provisions of this Plan, the
Administrator will determine the number of shares of Common Stock subject
to each Award, the price (if any) to be paid for the shares or the Award
and, in the case of performance share awards, in addition to matters
addressed in Section 1.2.2, the specific objectives, goals and “business
criteria” as such term is used in Section 5.2 that further define the
terms of the performance share award. Each Award will be evidenced by an
Award Agreement signed by the Corporation and, if required by the
Administrator, by the Participant.

	 	1.6 	 	Award Period. Any Option, SAR, warrant or similar right shall expire and
any other Award shall either vest or be forfeited not more than 10 years
after the date of grant;
provided, however, that any payment of cash or delivery of stock pursuant to
an Award may be delayed until a future date if specifically authorized by
the Administrator in writing.

5

 

	 	1.7 	 	Limitations on Exercise and Vesting of Awards.

	 	1.7.1 	 	Provisions for Exercise. An Award will be exercisable or will
vest at the time or times provided by the Administrator in the
applicable Award Agreement, and once exercisable an Award will remain
exercisable until the expiration or earlier termination of the Award.

	 	1.7.2 	 	Procedure. Any exercisable Award will be deemed to be exercised
when the Corporation receives written notice of such exercise from the
Participant together with any required payment made in accordance with
Section 1.9.

	 	1.7.3 	 	Fractional Shares/Minimum Issue. Fractional share interests will
be disregarded, but may be accumulated. The Administrator, however, may
determine in the case of Eligible Persons that cash, other securities,
or other property will be paid or transferred in lieu of any fractional
share interests. No fewer than 100* shares may be purchased on
exercise of any Award at one time unless the number purchased is the
total number at the time available for purchase under the Award.

	 	1.8 	 	No Transferability; Limited Exception to Transfer Restrictions.

	 	1.8.1 	 	Limit On Exercise and Transfer. Unless otherwise expressly
provided in (or pursuant to) this Section 1.8, by applicable law and by
the Award Agreement, as the same may be amended, (i) all Awards are
non-transferable and will not be subject in any manner to sale,
transfer, anticipation, alienation, assignment, pledge, encumbrance or
charge; Awards will be exercised only by the Participant; and (ii)
amounts payable or shares issuable pursuant to an Award will be
delivered only to (or for the account of) the Participant.

	 	1.8.2 	 	Exceptions. The Administrator may permit Awards to be exercised
by and paid to certain persons or entities related to the Participant,
including but not limited to members of the Participant’s immediate
family, trusts or other entities controlled by or whose beneficiaries
or beneficial owners are the Participant and/or members of the
Participant’s immediate family, pursuant to such conditions and
procedures, including limitations on subsequent transfers, as the
Administrator may establish. Any permitted transfer shall be subject
to the condition that the Administrator receive evidence satisfactory
to it that the transfer (a) is being made for essentially donative,
estate and/or tax planning purposes on a gratuitous or donative basis
and without consideration (other than nominal consideration or in
exchange for an interest in a qualified transferee), and (b) will not
compromise the Corporation’s ability to register shares issuable under
this Plan on Form S-8 under the Securities Act. Notwithstanding the
foregoing or anything in Section 1.8.3, Incentive Stock Options and
Restricted Stock Awards shall be subject to any and all additional
transfer
restrictions under the Code to the extent necessary to maintain the
intended tax consequences of such awards.

6

 

	 	1.8.3 	 	Further Exceptions to Limits On Transfer. The exercise and
transfer restrictions in Section 1.8.1 will not apply to:

	 	(a)	 	transfers to the Corporation,

	 	(b)	 	the designation of a beneficiary to receive benefits if the
Participant dies or, if the Participant has died, transfers to or
exercises by the Participant’s Beneficiary, or, in the absence of a
validly designated Beneficiary, transfers by will or the laws of
descent and distribution,

	 	(c)	 	subject to any applicable limitations on Incentive Stock
Options, transfers to a family member (or former family member)
pursuant to a domestic relations order if approved or ratified by
the Administrator,

	 	(d)	 	if the Participant has suffered a disability, permitted
transfers or exercises on behalf of the Participant by the
Participant’s legal representative, or

	 	(e)	 	the authorization by the Administrator of “cashless
exercise” procedures with third parties who provide financing for
the purpose of (or who otherwise facilitate) the exercise of Awards
consistent with applicable laws and the express authorization of
the Administrator.

	 	1.9 	 	Consideration for Common Stock or Awards. The purchase price for any
Award granted under this Plan or the Common Stock to be delivered pursuant
to an Award, as applicable, may be paid by means of any lawful
consideration as determined by the Administrator, including, without
limitation, one or a combination of the following methods:

	 	•	 	services rendered by the recipient of such Award;

	 	•	 	cash, check payable to the order of the Corporation, or electronic funds transfer;

	 	•	 	notice and third party payment in such manner as may be authorized
by the Administrator;

	 	•	 	the delivery of previously owned shares of Common Stock;

	 	•	 	by a reduction in the number of shares otherwise deliverable pursuant to the Award; or

	 	•	 	subject to such procedures as the Administrator may adopt, pursuant
to a “cashless exercise” with a third party who provides financing for
the purposes of (or who otherwise facilitates) the purchase or exercise
of awards.

7

 

	 	 	 	In no event, however, shall any shares newly-issued by the Corporation be
issued for less than the minimum lawful consideration for such shares or for
consideration other than consideration permitted by applicable state law.
In the event that the Administrator allows a Participant to exercise an
Award by delivering shares of Common Stock previously owned by such
Participant and unless otherwise expressly provided by the Administrator,
any shares delivered which were initially acquired by the Participant from
the Corporation (upon exercise of an Option or otherwise) must have been
owned by the Participant at least six months as of the date of delivery.
Shares of Common Stock used to satisfy the exercise price of an Option shall
be valued at their Fair Market Value on the date of exercise. The
Corporation will not be obligated to deliver any shares unless and until it
receives full payment of the exercise or purchase price therefor and any
related withholding obligations under Section 6.5 and any other conditions
to exercise or purchase have been satisfied. Unless otherwise expressly
provided in the applicable Award Agreement, the Administrator may at any
time eliminate or limit a participant’s ability to pay the purchase or
exercise price of any Award or shares by any method other than cash payment
to the Corporation.

	2.	 	Options.

	 	2.1	 	 Grants. One or more Options may be granted under this Section 2 to any
Eligible Person. Each Option granted will be designated in the applicable
Award Agreement, by the Administrator, as either an Incentive Stock
Option, subject to Section 2.3, or a Nonqualified Stock Option.

	 	2.2 	 	Option Price.

	 	2.2.1 	 	Pricing Limits. The purchase price per share of the Common Stock
covered by each Option will be determined by the Administrator at the
time of the Award; provided that the purchase price per share of the
Common Stock covered by each Option will not be less than 100% of the
Fair Market Value of the Common Stock on the date of grant of the
Option except as follows: (a) in the case of an Option granted
retroactively in tandem with or as a substitution for another Award,
the per share exercise price may be no lower than the Fair Market Value
of a share of Common Stock on the date such other Award was granted (to
the extent consistent with Sections 422 and 424 of the Code in the case
of Options intended as Incentive Stock Options); and (b) in any other
circumstances, a Nonqualified Stock Option may be granted with a per
share exercise price that is less than the Fair Market Value of a share
of Common Stock on the date of grant, provided that any shares
delivered in respect of such Option shall be charged against the limit
of Section 1.4.2(e) (the limit on full-value awards) as well as any
other applicable limit under Section 1.4.2. In no case shall the
purchase price per share of the Common Stock covered by an Option be
less than the par value of such a share.

	 	2.2.2 	 	Payment Provisions. The purchase price of any shares purchased on
exercise of an Option granted under this Section 2 will be paid in full
at the time of each
purchase in one or a combination of the methods set forth in Section
1.9, as permitted or required by the Administrator.

8

 

	 	2.3 	 	Limitations on Grant and Terms of Incentive Stock Options.

	 	2.3.1 	 	$100,000 Limit. To the extent that the aggregate “Fair Market
Value” of stock with respect to which incentive stock options first
become exercisable by a Participant in any calendar year exceeds
$100,000, taking into account both Common Stock subject to Incentive
Stock Options under this Plan and stock subject to incentive stock
options under all other plans of the Company or any parent corporation,
such options will be treated as Nonqualified Stock Options. For this
purpose, the “Fair Market Value” of the stock subject to options will
be determined as of the date the options were awarded. In reducing the
number of options treated as incentive stock options to meet the
$100,000 limit, the most recently granted options will be reduced
first. To the extent a reduction of simultaneously granted options is
necessary to meet the $100,000 limit, the Administrator may, in the
manner and to the extent permitted by law, designate which shares of
Common Stock are to be treated as shares acquired pursuant to the
exercise of an Incentive Stock Option.

	 	2.3.2 	 	Option Period. Subject to Section 1.6, each Option and all rights
thereunder will expire no later than 10 years after the Award Date.

	 	2.3.3 	 	Other Code Limits. Incentive Stock Options may only be granted to
Eligible Employees of the Corporation or a Subsidiary that satisfies
the other eligibility requirements of the Code. There will be imposed
in any Award Agreement relating to Incentive Stock Options such other
terms and conditions as from time to time are required in order that
the Option be an “incentive stock option” as that term is defined in
Section 422 of the Code.

	 	2.3.4 	 	Limits on 10% Holders. No Incentive Stock Option may be granted
to any person who, at the time the Option is granted, owns (or is
deemed to own under Section 424(d) of the Code) shares of outstanding
Common Stock possessing more than 10% of the total combined voting
power of all classes of stock of the Corporation, unless the exercise
price of such Option is at least 110% of the Fair Market Value of the
stock subject to the Option and such Option by its terms is not
exercisable after the expiration of five years from the date such
Option is granted.

	3.	 	Stock Appreciation Rights (Including Limited Stock Appreciation Rights).

	 	3.1 	 	Grants. The Administrator may grant to any Eligible Person Stock
Appreciation Rights either concurrently with the grant of another Award or
in respect of an outstanding Award, in whole or in part, or independently
of any other Award. Any Stock Appreciation Right granted in connection
with an Incentive Stock Option will contain such terms as may be required
to comply with the provisions of Section 422 of the Code and the
regulations promulgated thereunder, unless the holder otherwise agrees.

9

 

	 	3.2 	 	Exercise of Stock Appreciation Rights.

	 	3.2.1 	 	Exercisability. Unless the Award Agreement or the Administrator
otherwise provides, a Stock Appreciation Right related to another Award
will be exercisable at such time or times, and to the extent, that the
related Award will be exercisable.

	 	3.2.2 	 	Stand-Alone SARs. A Stock Appreciation Right granted
independently of any other Award will be exercisable pursuant to the
terms of the Award Agreement but in no event earlier than six months
after the Award Date, except in the case of death or Total Disability.

	 	3.2.3 	 	Proportionate Reduction If an SAR extends to less than all the
shares covered by the related Award and if a portion of the related
Award is thereafter exercised, the number of shares subject to the
unexercised SAR shall be reduced only if and to the extent that the
remaining number of shares covered by such related Award is less than
the remaining number of shares subject to such SAR.

	 	3.3 	 	Payment.

	 	3.3.1 	 	Amount. Unless the Administrator otherwise provides, upon
exercise of a Stock Appreciation Right and the attendant surrender of
an exercisable portion of any related Award, the Participant will be
entitled to receive, subject to Section 6.5, payment of an amount
determined by multiplying:

	 	(a)	 	the difference (which shall not be less than zero) obtained
by subtracting the Base Price of the Stock Appreciation Right from
the Fair Market Value of a share of Common Stock on the date of
exercise of the Stock Appreciation Right, by

	 	(b)	 	the number of shares with respect to which the Stock
Appreciation Right has been exercised.

	 	 	 	The “Base Price” of a Stock Appreciation Right will be determined by
the Administrator at the time of the Award; provided that the Base
Price per Stock Appreciation Right will not be less than 100% of the
Fair Market Value of the Common Stock on the date of grant of the
Award except as follows: (a) in the case of a Stock Appreciation Right
granted retroactively in tandem with or as a substitution for another
Award, the Base Price may be no lower than the Fair Market Value of a
share of Common Stock on the date such other Award was granted; and
(b) in any other circumstances, a Stock Appreciation Right may be
granted with a Base Price that is less than the Fair Market Value of a
share of Common Stock on the date of grant, provided that any shares
delivered in respect of such Stock Appreciation Right shall be charged
against the limit of Section 1.4.2(e) (the limit on full-value awards)
as well as any other applicable limit under Section 1.4.2.

	 	3.3.2 	 	Form of Payment. The Administrator, in its sole discretion, will
determine the form in which payment will be made of the amount
determined under Section 3.3.1 above,

10

 

	 	 	 	either solely in cash, solely in shares of Common Stock (valued
at Fair Market Value on the date of exercise of the Stock Appreciation
Right), or partly in such shares and partly in cash, but the
Administrator will have determined that such exercise and payment are
consistent with applicable law. If the Administrator permits the
Participant to elect to receive cash or shares (or a combination
thereof) on such exercise, any such election will be subject to such
conditions as the Administrator may impose.

	 	3.4 	 	Limited Stock Appreciation Rights. The Administrator may grant to any
Eligible Person Stock Appreciation Rights exercisable only upon or in
respect of a change in control or any other specified event (“Limited
SARs”) and such Limited SARs may relate to or operate in tandem or
combination with, or substitution for, Options, other SARs or other Awards
(or any combination thereof), and may be payable in cash or shares based
on the spread between the base price of the SAR and a price based upon or
equal to the Fair Market Value of the Common Stock during a specified
period or at a specified time within a specified period before, after or
including the date of such event.

	4.	 	Restricted Stock and Stock Unit Awards.

	 	4.1 	 	Grants. Subject to any applicable limitations under Delaware law and to
such rules and procedures as the Administrator may establish from time to
time:

	 	4.1.1 	 	Restricted Stock. The Administrator may grant one or more
Restricted Stock Awards to any Eligible Person. Each Restricted Stock
Award Agreement will specify the number of shares of Common Stock to be
issued to the Participant, the date of such issuance, the consideration
for such shares (but not less than the minimum lawful consideration
under applicable state law) to be paid by the Participant, the extent
(if any) to which and the time (if ever) at which the Participant will
be entitled to dividends, voting and other rights in respect of the
shares prior to vesting, and the restrictions (which may be based on
performance criteria, passage of time or other factors or any
combination thereof) imposed on such shares and the conditions of
release or lapse of such restrictions. Such restrictions will not
lapse earlier than six months after the Award Date, except to the
extent the Administrator may otherwise provide. Stock certificates
evidencing shares of Restricted Stock pending the lapse of the
restrictions (“Restricted Shares”) will bear a legend making
appropriate reference to the restrictions imposed hereunder and will be
held by the Corporation or by a third party designated by the
Administrator until the restrictions on such shares have lapsed and the
shares have vested in accordance with the provisions of the Award and
Section 1.7. Upon issuance of the Restricted Stock Award, the
Participant may be required to provide such further assurances and
documents as the Administrator may require to enforce the restrictions.

	 	4.1.2 	 	Stock Units. The Administrator may authorize and grant to any
Eligible Person a Stock Unit Award, or the crediting of Stock Units for
services rendered or to be rendered or in lieu of other compensation,
consistent with other applicable terms of

11

 

	 	 	 	this Plan, may permit an Eligible Person to irrevocably elect to defer
by means of Stock Units or receive in Stock Units all or a portion of
any Award hereunder, or may grant Stock Units in lieu of, in exchange
for, in respect of, or in addition to any other compensation or Award
under this Plan. The specific terms, conditions, and provisions
relating to each Stock Unit grant or election, including the
applicable vesting and payout provisions of the Stock Units and the
form of payment to be made at or following the vesting thereof, shall
be set forth in or pursuant to the applicable Award Agreement or and
any relevant Company deferred compensation plan.

	 	4.2 	 	Restrictions.

	 	4.2.1 	 	Pre-Vesting Restraints. Except as provided in Sections 4.1 and
1.8, restricted shares comprising any Restricted Stock Award may not be
sold, assigned, transferred, pledged or otherwise disposed of or
encumbered, either voluntarily or involuntarily, until the restrictions
on such shares have lapsed and the shares have become vested.

	 	4.2.2 	 	Dividend and Voting Rights. Unless otherwise provided in the
applicable Award Agreement, a Participant receiving a Restricted Stock
Award will be entitled to cash dividend and voting rights for all
shares issued even though they are not vested, but such rights will
terminate immediately as to any Restricted Shares which cease to be
eligible for vesting.

	 	4.2.3 	 	Cash Payments. If the Participant has paid or received cash
(including any dividends) in connection with the Restricted Stock
Award, the Award Agreement will specify whether and to what extent such
cash will be returned (with or without an earnings factor) as to any
restricted shares that cease to be eligible for vesting.

	 	4.3 	 	Return to the Corporation. Unless the Administrator otherwise expressly
provides, Restricted Shares or Stock Units that remain subject to vesting
conditions at the time of termination of employment will not vest and will
be returned to the Corporation or cancelled, as the case may be, in such
manner and on such terms as the Administrator provides.

	5.	 	Performance Share Awards and Stock Bonuses.

	 	5.1 	 	Grants of Performance Share Awards. The Administrator may grant
Performance Share Awards to Eligible Employees based upon such factors as
the Administrator deems relevant in light of the specific type and terms
of the award. An Award Agreement will specify the maximum number of
shares of Common Stock (if any) subject to the Performance Share Award,
the consideration (but not less than the minimum lawful consideration) to
be paid for any such shares as may be issuable to the Participant, the
duration of the Award and the conditions upon which delivery of any shares
or cash to the Participant will be based. The amount of cash or shares or
other property that may be deliverable pursuant to such Award will be
based upon the degree of attainment over a specified period of not more
than 10 years (a “performance cycle”) as may be established
by the Administrator of such

12

 

	 	 	 	measure(s) of the performance of the Company
(or any part thereof) or the Participant as may be established by the
Administrator. The Administrator may provide for full or partial credit,
prior to completion of such performance cycle or the attainment of the
performance achievement specified in the Award, in the event of the
Participant’s death, Retirement, or Total Disability, a Change in Control
Event or in such other circumstances as the Administrator (consistent with
Section 6.10.3(b), if applicable) may determine.

	 	5.2 	 	Section 162(m) Performance-Based Awards. Without limiting the generality
of Section 5.1 or any other type of award otherwise authorized under this
Plan, any type of award authorized under this Plan may be, and Options and
Stock Appreciation Rights granted with an exercise or base price not less
than the Fair Market Value of a share of Common Stock at the date of grant
(“Qualifying Options” and “Qualifying SARS,” respectively) typically will
be, granted as awards intended to satisfy the requirements for
“performance-based compensation” within the meaning of Section 162(m) of
the Code (“Performance-Based Awards”). A Performance-Based Award may also
be granted as a cash award that is not related to shares of Common Stock.
The grant, vesting, exercisability or payment of Performance-Based Awards
may depend (or, in the case of Qualifying Options or Qualifying SARs, may
also depend) on the degree of achievement of one or more performance goals
relative to a pre-established targeted level or level using one or more of
the Business Criteria set forth below (on an absolute or relative basis)
for the Corporation on a consolidated basis or for one or more of the
Corporation’s subsidiaries, segments, divisions or business units, or any
combination of the foregoing. Any Qualifying Option or Qualifying SAR
shall be subject only to the requirements of Section 5.2.1 and 5.2.2 in
order for such award to satisfy the requirements for “performance-based
compensation” under Section 162(m) of the Award. Any other
Performance-Based Award shall be subject to all of the following
provisions of this Section 5.2.

	 	5.2.1 	 	Eligible Class. The eligible class of persons for
Performance-Based Awards under this Section 5.2 shall be officers and
employees of the Company. The Administrator approving
Performance-Based Awards or making any certification required pursuant
to Section 5.2.3 must be constituted as provided in Section 1.2.1 for
awards that are intended as performance-based compensation under
Section 162(m) of the Code.

	 	5.2.2 	 	Form of Payment; Maximum Performance-Based Award. Awards under
this Section 5.2 may be paid in cash or shares of Common Stock or any
combination thereof. Grants of Qualifying Options and Qualifying SARs
to any one Participant in any one calendar year shall be subject to the
limit set forth in Section 1.4.2(b). The maximum number of shares of
Common Stock which may be delivered pursuant to all Performance-Based
Awards, Qualifying Options and Qualifying SARs (other than cash awards
covered by the following sentence) that are granted to any one
Participant in any one calendar year, in the aggregate, shall be
subject to the limit set forth in Section 1.4.2(c). In addition, the
aggregate amount of compensation to be paid to any one Participant in
respect of all Performance-Based Awards payable only in cash and
not related to shares of Common Stock and granted to that Participant
in any one calendar year shall not exceed $2,000,000. Awards that are
cancelled during the year shall be counted against these limits to the
extent required by Section 162(m) of the Code.

13

 

	 	5.2.3 	 	Performance Goals. The specific performance goals for
Performance-Based Awards (other than Qualifying Options and Qualifying
SARs) shall be, on an absolute or relative basis, established based on
one or more of the following business criteria (“Business Criteria”) as
selected by the Administrator in its sole discretion: earnings per
share, cash flow (which means cash and cash equivalents derived from
either net cash flow from operations or net cash flow from operations,
financing and investing activities), stock appreciation, total
stockholder return, revenue, revenue growth, operating income (before
or after taxes), growth in operating income (before or after taxes),
earnings (before or after interest, taxes, depreciation and/or
amortization), earnings growth (before or after interest, taxes,
depreciation and/or amortization), return on equity or on assets or on
net investment, cost containment or reduction, or any combination
thereof. These terms are used as applied under generally accepted
accounting principles or in the Company’s financial reporting. To
qualify awards as performance-based under Section 162(m), the
applicable Business Criterion (or Business Criteria, as the case may
be) and specific performance goal or goals (“targets”) must be
established and approved by the Administrator during the first 90 days
of the performance period (and, in the case of performance periods of
less than one year, in no event more than 25% of the performance period
has elapsed) and while performance relating to such target(s) remains
substantially uncertain within the meaning of Section 162(m) of the
Code. Performance targets shall be adjusted to mitigate the unbudgeted
impact of material, unusual or nonrecurring gains and losses,
accounting changes or other extraordinary events not foreseen at the
time the targets were set unless the Administrator provides otherwise
at the time of establishing the targets. The applicable performance
measurement period may not be less than three months nor more than 10
years.

	 	5.2.4 	 	Administrator Certification. Before any Performance-Based Award
under this Section 5.2 (other than Qualifying Options and Qualifying
SARs) is paid and to the extent required to qualify the award as
performance-based compensation within the meaning of Section 162(m) of
the Code, the Administrator must certify in writing that the
performance target(s) and any other material terms of the
Performance-Based Award were in fact timely satisfied.

	 	5.2.5 	 	Administrator Discretion. The Administrator will have the
discretion to determine the restrictions or other limitations of the
individual Awards granted under this Section 5.2 including the
authority to reduce Awards, payouts or vesting or to pay no Awards, in
its sole discretion, if the Administrator expressly preserves such
authority at the time of grant by language to this effect in its
authorizing resolutions or otherwise.

	 	5.2.6 	 	Expiration of Grant Authority. As required pursuant to Section
162(m) of the Code and the regulations promulgated thereunder, the
Administrator’s authority to

14

 

	 	 	 	grant new awards that are intended to
qualify as performance-based compensation within the meaning of Section
162(m) of the Code (other than Qualifying Options and Qualifying SARs)
shall terminate upon the first meeting of the Corporation’s
stockholders that occurs in the fifth year following the year in which
the Corporation’s stockholders first approve this Plan.

	 	5.3 	 	Grants of Stock Bonuses. The Administrator may grant a Stock Bonus to
any Eligible Person to reward exceptional or special services,
contributions or achievements in the manner and on such terms and
conditions (including any restrictions on such shares) as determined from
time to time by the Administrator. The number of shares so awarded will
be determined by the Administrator. The Award may be granted
independently or in lieu of a cash bonus.

	 	5.4 	 	Deferred Payments. The Administrator may authorize for the benefit of
any Eligible Person the deferral of any payment of cash or shares that may
become due or of cash otherwise payable under this Plan, and provide for
accredited benefits thereon (such as the payment or crediting of interest
or other earnings on the deferral amounts, or the payment or crediting of
dividend equivalents where the deferred amounts are denominated in
shares), at the election or at the request of such Participant, subject to
the other terms of this Plan. Such deferral will be subject to such
further conditions, restrictions or requirements as the Administrator may
impose, subject to any then vested rights of Participants.

	 	5.5 	 	Cash Bonus Awards.

	 	5.5.1 	 	Performance Goals. The Administrator may establish a program of
annual incentive awards that are payable in cash to Eligible Persons
based upon the extent to which performance goals are met during the
performance period. The performance goals may depend upon the
performance of the Company on a consolidated, subsidiary division basis
with reference to any one or combination of the business criteria (as
such term is used in Section 5.2). In addition, the award may depend
upon the Eligible Person’s individual performance.

	 	5.5.2 	 	Payment in Restricted Stock. In lieu of cash payment of an Award,
the Administrator may require or allow all or a portion of the Award to
be paid in the form of stock, Restricted Stock, an Option or other
Award.

	6.	 	Other Provisions.

	 	6.1 	 	Rights of Eligible Persons, Participants and Beneficiaries.

	 	6.1.1 	 	Employment Status. Status as an Eligible Person will not be
construed as a commitment that any Award will be made under this Plan
to an Eligible Person or to Eligible Persons generally.

	 	6.1.2 	 	No Employment Contract. Nothing contained in this Plan (or in any
other documents related to this Plan or to any Award) will confer upon
any Eligible Person

15

 

	 	 	 	or other Participant any right to continue in the
employ or other service of the Company or constitute any contract or
agreement of employment or other service, nor will interfere in any way
with the right of the Company to otherwise change such person’s
compensation or other benefits or to terminate the employment or other
service of such person, with or without cause. Nothing in this Section
6.1.2, however, is intended to adversely affect any express independent
right of such person under a separate employment or service contract
other than an Award Agreement.

	 	6.1.3 	 	Plan Not Funded. Awards payable under this Plan will be payable
in shares or from the general assets of the Corporation, and (except
for any reservation of shares by the Corporation pursuant to Section as
provided in Section 1.4.4) no special or separate reserve, fund or
deposit will be made to assure payment of such Awards. No Participant,
Beneficiary or other person will have any right, title or interest in
any fund or in any specific asset (including shares of Common Stock,
except as expressly otherwise provided) of the Company by reason of any
Award hereunder. Neither the provisions of this Plan (or of any
related documents), nor the creation or adoption of this Plan, nor any
action taken pursuant to the provisions of this Plan will create, or be
construed to create, a trust of any kind or a fiduciary relationship
between the Company and any Participant, Beneficiary or other person.
To the extent that a Participant, Beneficiary or other person acquires
a right to receive payment pursuant to any Award hereunder, such right
will be no greater than the right of any unsecured general creditor of
the Company.

	 	6.1.4 	 	Charter Documents. The Articles of Incorporation and By-Laws of
the Corporation, as either of them may be amended from time to time,
may provide for additional restrictions and limitations with respect to
the Common Stock (including additional restrictions and limitations on
the transfer of shares). To the extent that these restrictions and
limitations are greater than those set forth in this Plan or any Award
Agreement, such restrictions and limitations shall apply to any shares
of Common Stock acquired pursuant to the exercise of Awards and are
incorporated herein by reference.

	 	6.2 	 	Effects of Termination of Employment; Termination of Subsidiary Status;
Discretionary Provisions.

	 	6.2.1 	 	Options — Resignation or Dismissal. Unless otherwise provided in
the Award Agreement and subject to earlier termination pursuant to or
as contemplated by Section 1.6 or 6.3, if the Participant’s employment
by (or other service specified in the Award Agreement to) the Company
terminates for any reason (the date of such termination being referred
to as the “Severance Date”) other than due to the Participant’s
Retirement, Total Disability or death, or a termination by the
Corporation or a Subsidiary “for cause” (as determined in the sole
discretion of the Administrator, unless a written employment agreement
by and between the Participant and the Corporation or a Subsidiary defines such term for
purposes of the Participant’s employment and such agreement is in
effect at the time of grant of the

16

 

	 	 	 	Award), the Participant will have
until the date which is three months after the Participant’s Severance
Date to exercise an Option to the extent that it is vested on the
Severance Date. In the case of a termination by the Corporation or a
Subsidiary “for cause” (as determined in the sole discretion of the
Administrator, unless a written employment agreement by and between
the Participant and the Corporation or a Subsidiary defines such term
for purposes of the Participant’s employment and such agreement is in
effect at the time of grant of the Award), the Option will terminate
on the Participant’s Severance Date (whether or not vested and/or
exercisable). In all cases, the Option, to the extent not vested on
the Participant’s Severance Date, will terminate on that date.

	 	6.2.2 	 	Options — Death or Disability. Unless otherwise provided in the
Award Agreement and subject to earlier termination pursuant to or as
contemplated by Section 1.6 or 6.3, if the Participant’s employment by
(or specified service to) the Company terminates as a result of the
Participant’s Total Disability or death, or the Participant suffers a
Total Disability or dies within 30 days after a termination described
in Section 6.2.1, the Participant, the Participant’s Personal
Representative or the Participant’s Beneficiary, as the case may be,
will have until the date which is twelve months after the Participant’s
Severance Date to exercise an Option to the extent that it is vested on
the Participant’s Severance Date. The Option, to the extent not vested
on the Participant’s Severance Date, will terminate on that date.

	 	6.2.3 	 	Options — Retirement. Unless otherwise provided in the Award
Agreement and subject to earlier termination pursuant to or as
contemplated by Section 1.6 or 6.3, if the Participant’s employment by
(or specified service to) the Company terminates as a result of the
Participant’s Retirement, the Participant, the Participant’s Personal
Representative or the Participant’s Beneficiary, as the case may be,
will have until the date which is twelve months after the Participant’s
Severance Date to exercise an Option to the extent that it is vested on
the Participant’s Severance Date. The Option, to the extent not vested
on the Participant’s Severance Date, will terminate on that date.

	 	6.2.4 	 	Certain SARs. Any SAR granted concurrently or in tandem with an
Option will have the same post-termination provisions and
exercisability periods as the Option to which it relates, unless the
Administrator otherwise provides.

	 	6.2.5 	 	Other Awards. The Administrator will establish in respect of each
other Award granted hereunder the Participant’s rights and benefits (if
any) if the Participant’s employment is terminated and in so doing may
make distinctions based upon the cause of termination and the nature of
the Award.

	 	6.2.6 	 	Administrator Discretion. Notwithstanding the foregoing
provisions of this Section 6.2, in the event of, or in anticipation of,
a termination of employment with
the Company for any reason, other than discharge for cause, the
Administrator may increase the portion of the Participant’s Award
available to the Participant, or

17

 

	 	 	 	Participant’s Beneficiary or Personal
Representative, as the case may be, or, subject to the provisions of
Section 1.6 and 6.3, extend the exercisability period upon such terms
as the Administrator determines and expressly sets forth in or by
amendment to the Award Agreement. If the Participant is not an
employee or director of the Company and provides other services to the
Company, the Administrator shall be the sole judge for purposes of
this Plan (unless a contract or the Award otherwise provides) of
whether the Participant continues to render services to the Company
and the date, if any, upon which such services shall be deemed to have
terminated.

	 	6.2.7 	 	Events Not Deemed Terminations of Service. Unless Company policy
or the Administrator otherwise provides, the employment relationship
shall not be considered terminated in the case of (a) sick leave, (b)
military leave, or (c) any other leave of absence authorized by the
Company or the Administrator; provided that unless reemployment upon
the expiration of such leave is guaranteed by contract or law, such
leave is for a period of not more than 90 days. In the case of any
employee of the Company on an approved leave of absence, continued
vesting of the Award while on leave from the employ of the Company may
be suspended until the employee returns to service, unless the
Administrator otherwise provides or applicable law otherwise requires.
In no event shall an Award be exercised after the expiration of the
term set forth in the Award Agreement.

	 	6.2.8 	 	Effect of Change of Subsidiary Status. For purposes of this Plan
and any Award, if an entity ceases to be a Subsidiary of the
Corporation a termination of employment or service shall be deemed to
have occurred with respect to each Eligible Person in respect of such
Subsidiary who does not continue as an Eligible Person in respect of
another entity within the Company after giving effect to the
Subsidiary’s change in status.

	 	6.3 	 	Adjustments; Acceleration.

	 	6.3.1 	 	Adjustments. The following provisions will apply if any
extraordinary dividend or other extraordinary distribution occurs in
respect of the Common Stock (whether in the form of cash, Common Stock,
other securities, or other property), or any reclassification,
recapitalization, stock split (including a stock split in the form of a
stock dividend), reverse stock split, reorganization, merger,
combination, consolidation, split-up, spin-off, combination,
repurchase, or exchange of Common Stock or other securities of the
Corporation, or any similar, unusual or extraordinary corporate
transaction (or event in respect of the Common Stock) or a sale of
substantially all the assets of the Corporation as an entirety occurs.
The Administrator will, in such manner and to such extent (if any) as
it deems appropriate and equitable

	 	(a)	 	proportionately adjust any or all of (i) the number and
type of shares of Common Stock (or other securities) that
thereafter may be made the subject of Awards
(including the specific maxima and numbers of shares set forth
elsewhere in this Plan), (ii) the number, amount and type of shares
of Common Stock (or other

18

 

	 	 	 	securities or property) subject to any or
all outstanding Awards, (iii) the grant, purchase, or exercise
price of any or all outstanding Awards, (iv) the securities, cash
or other property deliverable upon exercise of any outstanding
Awards, or (v) the performance standards appropriate to any
outstanding Awards, or

	 	(b)	 	in the case of an extraordinary dividend or other
distribution, recapitalization, reclassification, merger,
reorganization, consolidation, combination, sale of assets, split
up, exchange, or spin off, make provision for a cash payment or for
the substitution or exchange of any or all outstanding Awards or
the cash, securities or property deliverable to the holder of any
or all outstanding Awards based upon the distribution or
consideration payable to holders of the Common Stock upon or in
respect of such event.

	 	 	 	The Administrator may adopt such valuation methodologies for
outstanding Awards as it deems reasonable in the event of a cash or
property settlement and, in the case of Options, Stock Appreciation
Rights or similar rights, but without limitation on other
methodologies, may base such settlement solely upon the excess if any
of the per share amount payable upon or in respect of such event over
the exercise or base price of the Award. With respect to any award of
an Incentive Stock Option, the Administrator may make such an
adjustment that causes the option to cease to qualify as an Incentive
Stock Option without the consent of the affected Participant.

	 	 	 	In any of such events, the Administrator may take such action prior to
such event to the extent that the Administrator deems the action
necessary to permit the participant to realize the benefits intended
to be conveyed with respect to the underlying shares in the same
manner as is or will be available to stockholders generally. In the
case of any stock split or reverse stock split, if no action is taken
by the Administrator, the proportionate adjustments contemplated by
clause (a) above shall nevertheless be made.

	 	6.3.2 	 	Automatic Acceleration of Awards. Upon a dissolution of the
Corporation or other event described in Section 6.3 that the
Corporation does not survive (or does not survive as a public company
in respect of its Common Stock), then each then outstanding Option and
Stock Appreciation Right shall become fully vested, all shares of
Restricted Stock then outstanding shall fully vest free of
restrictions, and each other Award granted under this Plan that is then
outstanding shall become payable to the holder of such Award; provided
that such acceleration provision shall not apply, unless otherwise
expressly provided by the Administrator, with respect to any Award to
the extent that the Administrator has made a provision for the
substitution, assumption, exchange or other continuation or settlement
of the Award, or the Award would otherwise continue in accordance with
its terms, in the circumstances.

	 	6.3.3 	 	Possible Acceleration of Awards. Without limiting Section 6.3.2,
in the event of a Change in Control Event, the Administrator may, in
its discretion, provide that any outstanding Option or Stock
Appreciation Right shall become fully vested, that any

19

 

	 	 	 	share of Restricted Stock then outstanding shall fully vest free of
restrictions, and that any other Award granted under this Plan that is
then outstanding shall be payable to the holder of such Award. The
Administrator may take such action with respect to all Awards then
outstanding or only with respect to certain specific Awards identified
by the Administrator in the circumstances.

	 	6.3.4 	 	Early Termination of Awards. Any Award that has been accelerated
as required or contemplated by Section 6.3.2 or 6.3.3 (or would have
been so accelerated but for Section 6.3.5, 6.3.7, or 6.3.8) shall
terminate upon the related event referred to in Section 6.3.2 or 6.3.3,
as applicable, subject to any provision that has been expressly made by
the Administrator, through a plan of reorganization or otherwise, for
the survival, substitution, assumption, exchange or other continuation
or settlement of such Award and provided that, in the case of Options
and Stock Appreciation Rights that will not survive, be substituted
for, assumed, exchanged, or otherwise continued or settled in the
transaction, the holder of such Award shall be given reasonable advance
notice of the impending termination and a reasonable opportunity to
exercise his or her outstanding Options and Stock Appreciation Rights
in accordance with their terms before the termination of such Awards
(except that in no case shall more than ten days’ notice of accelerated
vesting and the impending termination be required and any acceleration
may be made contingent upon the actual occurrence of the event).

	 	6.3.5 	 	Other Acceleration Rules. Any acceleration of awards pursuant to
this Section 6.3 shall comply with applicable legal requirements and,
if necessary to accomplish the purposes of the acceleration or if the
circumstances require, may be deemed by the Administrator to occur a
limited period of time not greater than 30 days before the event.
Without limiting the generality of the foregoing, the Administrator may
deem an acceleration to occur immediately prior to the applicable event
and/or reinstate the original terms of an award if an event giving rise
to an acceleration does not occur. The Administrator may override the
provisions of Section 6.3.2, 6.3.3, 6.3.4 and/or 6.3.7 by express
provision in the Award Agreement and may accord any Eligible Person a
right to refuse any acceleration, whether pursuant to the Award
Agreement or otherwise, in such circumstances as the Administrator may
approve. The portion of any Incentive Stock Option accelerated in
connection with a Change in Control Event or any other action permitted
hereunder shall remain exercisable as an Incentive Stock Option only to
the extent the applicable $100,000 limitation on Incentive Stock
Options is not exceeded. To the extent exceeded, the accelerated
portion of the option shall be exercisable as a Nonqualified Stock
Option under the Code.

	 	6.3.6 	 	Possible Rescission of Acceleration. If the vesting of an Award
has been accelerated expressly in anticipation of an event or upon
stockholder approval of an
event and the Administrator later determines that the event will not
occur, the Administrator may rescind the effect of the acceleration as
to any then outstanding and unexercised or otherwise unvested Awards.

20

 

	 	6.3.7 	 	Golden Parachute Limitations. Notwithstanding anything else
contained in this Section 6.3 to the contrary, in no event shall an
Award be accelerated under this Plan to an extent or in a manner which
would not be fully deductible by the Company for federal income tax
purposes because of Section 280G of the Code, nor shall any payment
hereunder be accelerated to the extent any portion of such accelerated
payment would not be deductible by the Company because of Section 280G
of the Code. If a Participant would be entitled to benefits or
payments hereunder and under any other plan or program that would
constitute “parachute payments” as defined in Section 280G of the Code,
then the Participant may by written notice to the Company designate the
order in which such parachute payments will be reduced or modified so
that the Company is not denied federal income tax deductions for any
“parachute payments” because of Section 280G of the Code.
Notwithstanding the foregoing, if a Participant is a party to an
employment or other agreement with the Company, or is a participant in
a severance program sponsored by the Company, that contains express
provisions regarding Section 280G and/or Section 4999 of the Code (or
any similar successor provision), the Section 280G and/or Section 4999
provisions of such employment or other agreement or plan, as
applicable, shall control as to any Awards held by the Participant (for
example, and without limitation, a Participant may be a party to an
employment agreement with the Company that provides for a “gross-up” as
opposed to a “cut-back” in the event that the Section 280G thresholds
are reached or exceeded in connection with a change in control and, in
such event, the Section 280G and/or Section 4999 provisions of such
employment agreement shall control as to any Awards held by the
Participant).

	 	6.3.8 	 	Section 162(m) Limitations. To the extent limited by Section
162(m) of the Code in the case of an Award intended as
performance-based compensation thereunder and necessary to assure the
deductibility of the compensation payable under the Award, the
Administrator shall have no discretion under this Plan (a) to increase
the amount of compensation or the number of shares that would otherwise
be due upon the attainment of the applicable performance target or the
exercise of the Option or Stock Appreciation Right, or (b) to waive the
achievement of any applicable performance goal as a condition to
receiving a benefit or right under the Award.

21

 

	 	6.4 	 	Compliance with Laws. This Plan, the granting and vesting of Awards under
this Plan, the offer, issuance and delivery of shares of Common Stock,
and/or the payment of money under this Plan or under Awards are subject to
compliance with all applicable federal and state laws, rules and regulations
(including but not limited to state and federal securities law) and to such
approvals by any listing, regulatory or governmental authority as may, in
the opinion of counsel for the Company, be necessary or advisable in
connection therewith. The person acquiring any securities under this Plan
will, if requested by the Company, provide such assurances and
representations to the Company as the Administrator may deem necessary or
desirable to assure compliance with all applicable legal and accounting
requirements.

	 	6.5 	 	Tax Withholding. Upon any exercise, vesting, or payment of any Award or
upon the disposition of shares of Common Stock acquired pursuant to the
exercise of an Incentive Stock Option prior to satisfaction of the holding
period requirements of Section 422 of the Code, the Company shall have the
right at its option to:

	 	(a)	 	require the Participant (or the Participant’s Personal
Representative or Beneficiary, as the case may be) to pay or provide
for payment of at least the minimum amount of any taxes which the
Company may be required to withhold with respect to such award event
or payment; or

	 	(b)	 	deduct from any amount otherwise payable in cash to the
Participant (or the Participant’s Personal Representative or
Beneficiary, as the case may be) the minimum amount of any taxes
which the Company may be required to withhold with respect to such
cash payment.

	 	 	 	In any case where a tax is required to be withheld in connection with the
delivery of shares of Common Stock under this Plan, the Administrator may
in its sole discretion (subject to Section 6.4) grant (either at the time
of the Award or thereafter) to the Participant the right to elect,
pursuant to such rules and subject to such conditions as the
Administrator may establish, to have the Corporation reduce the number of
shares to be delivered by (or otherwise reacquire) the appropriate number
of shares, valued in a consistent manner at their Fair Market Value or at
the sales price in accordance with authorized procedures for cashless
exercises, necessary to satisfy the minimum applicable withholding
obligation on exercise, vesting or payment. In no event shall the shares
withheld exceed the minimum whole number of shares required for tax
withholding under applicable law.

	 	6.6 	 	Plan Amendment, Termination and Suspension.

	 	6.6.1 	 	Board Authorization. The Board may, at any time, terminate or,
from time to time, amend, modify or suspend this Plan, in whole or in
part. No Awards may be granted during any suspension of this Plan or
after termination of this Plan, but the Administrator will retain
jurisdiction as to Awards then outstanding in accordance with the terms
of this Plan.

22

 

	 	6.6.2 	 	Stockholder Approval. To the extent then required by applicable
law or any applicable listing agency or required under Sections 162,
422 or 424 of the Code to preserve the intended tax consequences of
this Plan, or deemed necessary or advisable by the Board, any amendment
to this Plan shall be subject to stockholder approval.

	 	6.6.3 	 	Amendments to Awards. Without limiting any other express
authority of the Administrator under but subject to the express limits
of this Plan and further subject to Section 6.6.5, the Administrator by
agreement or resolution may waive conditions of or limitations on
Awards to Eligible Persons that the Administrator in the prior exercise
of its discretion has imposed, without the consent of a Participant,
and may make other changes to the terms and conditions of Awards that
do not affect in any manner materially adverse to the Participant, the
Participant’s rights and benefits under an Award.

	 	6.6.4 	 	Limitations on Amendments to Plan and Awards. No amendment,
suspension or termination of this Plan or change of or affecting any
outstanding Award will, without written consent of the Participant,
affect in any manner materially adverse to the Participant any rights
or benefits of the Participant or obligations of the Corporation under
any Award granted under this Plan prior to the effective date of such
change. Changes, settlements and other actions contemplated by Section
6.3 will not be deemed to constitute changes or amendments for purposes
of this Section 6.6.

	 	6.6.5 	 	Stockholder Approval Required for a Repricing. Subject to Section
6.6.4, the Administrator may adjust the number of shares of Common
Stock subject to any Award and/or adjust the price of any or all
outstanding Awards in such circumstances as the Administrator may deem
appropriate; provided that in no case (except due to an adjustment
contemplated by Section 6.3 or any repricing that may be approved by
stockholders) shall such an adjustment constitute a repricing (by
amendment, cancellation and regrant, exchange or other means) of the
per share exercise or base price of any Option or Stock Appreciation
Right to a price that is less than the Fair Market Value of a share of
Common Stock on the date of the grant of the initial award.

	 	6.7 	 	Privileges of Stock Ownership. Except as otherwise expressly authorized
by the Administrator or this Plan, a Participant will not be entitled to
any privilege of stock ownership as to any shares of Common Stock not
actually delivered to and held of record by the Participant. No
adjustment will be made for dividends or other rights as a stockholder for
which a record date is prior to such date of delivery.

	 	6.8 	 	Effective Date of the Plan. This Plan is effective upon its approval by
the Board (the “Effective Date”), subject to approval by the stockholders
of the Corporation within twelve months after the date of such Board
approval.

	 	6.9 	 	Term of the Plan. Unless earlier terminated by the Board, this Plan will
terminate at the close of business on the day before the tenth anniversary
of the Effective Date (the

23

 

	 		 	"Termination Date”) and no Awards may be
granted under this Plan after that date. Unless otherwise expressly
provided in this Plan or in an applicable Award Agreement, any Award
granted prior to the termination date may extend beyond such date, and all
authority of the Administrator with respect to Awards hereunder, including
the authority to amend an Award, will continue during any suspension of
this Plan and in respect of Awards outstanding on the termination date.

	 	6.10 	 	Governing Law/Construction/Severability.

	 	6.10.1 	 	Choice of Law. This Plan, the Awards, all documents evidencing
Awards and all other related documents will be governed by, and
construed in accordance with, the laws of the state of Delaware.

	 	6.10.2 	 	Severability. If a court of competent jurisdiction holds any
provision invalid and unenforceable, the remaining provisions of this
Plan will continue in effect.

	 	6.10.3 	 	Plan Construction.

	 	(a)	 	Rule 16b-3. It is the intent of the Corporation that the
Awards and transactions permitted by Awards be interpreted in a
manner that, in the case of Participants who are or may be subject
to Section 16 of the Exchange Act, qualify, to the maximum extent
compatible with the express terms of the Award, for exemption from
matching liability under Rule 16b-3 promulgated under the Exchange
Act. Notwithstanding the foregoing, the Corporation shall have no
liability to any Participant or other person for Section 16
consequences of Awards or events under Awards if an Award or event
does not so qualify.

	 	(b)	 	Section 162(m). Awards under Section 5.2 to persons
described in Section 5.2.1 that are either granted or become vested,
exercisable or payable based on attainment of one or more
performance goals related to the Business Criteria, as well as
Qualifying Options and Qualifying SARs granted to persons described
in Section 5.2.1, that are approved by a committee composed solely
of two or more outside directors of the Corporation (as this
requirement is applied under Section 162(m) of the Code) shall be
deemed to be intended as performance-based compensation within the
meaning of Section 162(m) of the Code unless such committee provides
otherwise at the time of grant of the Award.

	 	6.11 	 	Captions. Captions and headings are given to the sections and
subsections of this Plan solely as a convenience to facilitate reference.
Such headings will not be deemed in any way material or relevant to the
construction or interpretation of this Plan or any provision thereof.

	 	6.12 	 	Non-Exclusivity of Plan. Nothing in this Plan will limit or be deemed to
limit the authority of the Board or the Administrator to grant awards or
authorize any other compensation, with or without reference to the Common
Stock, under any other plan or authority.

24

 

	 	6.13 	 	No Corporate Action Restriction. The existence of this Plan, the Award
Agreements and the Awards granted hereunder shall not limit, affect or
restrict in any way the right or power of the Board or the stockholders of
the Corporation to make or authorize: (a) any adjustment,
recapitalization, reorganization or other change in the capital structure
or business of the Corporation or any subsidiary, (b) any merger,
amalgamation, consolidation or change in the ownership of the Corporation
or any subsidiary, (c) any issue of bonds, debentures, capital, preferred
or prior preference stock ahead of or affecting the capital stock (or the
rights thereof) of the Corporation or any subsidiary, (d) any dissolution
or liquidation of the Corporation or any subsidiary, (e) any sale or
transfer of all or any part of the assets or business of the Corporation
or any subsidiary, or (f) any other corporate act or proceeding by the
Corporation or any subsidiary. No Participant, Beneficiary or any other
person shall have any claim under any Award or Award Agreement against any
member of the Board or the Administrator, or the Corporation or any
employees, officers or agents of the Corporation or any subsidiary, as a
result of any such action.

	 	6.14 	 	Other Company Benefit and Compensation Programs. Payments and other
benefits received by a Participant under an Award made pursuant to this
Plan shall not be deemed a part of a Participant’s compensation for
purposes of the determination of benefits under any other employee welfare
or benefit plans or arrangements, if any, provided by the Corporation or
any subsidiary, except where the Administrator expressly otherwise
provides or authorizes in writing. Awards under this Plan may be made in
addition to, in combination with, as alternatives to or in payment of
grants, awards or commitments under any other plans or arrangements of the
Company or its subsidiaries.

	 	6.15 	 	Stock-Based Awards in Substitution for Stock Options or Awards Granted by
Other Corporation. Awards may be granted to Eligible Persons under this
Plan in substitution for or in connection with an assumption of stock
options, stock appreciation rights, restricted stock or other stock-based
awards granted by other entities to persons who are or who will become
Eligible Persons in respect of the Company, in connection with a
distribution, merger or other reorganization by or with the granting
entity or an affiliated entity, or the acquisition by the Company,
directly or indirectly, of all or a substantial part of the stock or
assets of the employing entity. The awards so granted need not comply
with other specific terms of this Plan, provided the awards reflect only
adjustments giving effect to the assumption or substitution consistent
with the conversion applicable to the Common Stock in the transaction and
any change in the issuer of the security. Any shares that are delivered
and any awards that are granted by, or become obligations of, the
Corporation, as a result of the assumption by the Corporation of, or in
substitution for, outstanding awards previously granted by an acquired
company (or previously granted by a predecessor employer (or direct or
indirect parent thereof) in the case of persons that become employed by
the Company in connection with a business or asset acquisition or similar
transaction)
shall not be counted against the Share Limit or other limits on the number
of shares available for issuance under this Plan

25

 

	7.	 	Definitions.

"Award” means an award of any Option, Stock Appreciation Right, Restricted
Stock, Stock Bonus, Stock Unit, performance share award, dividend equivalent or
deferred payment right or other right or security that would constitute a
“derivative security” under Rule 16a-1(c) of the Exchange Act, or any
combination thereof, whether alternative or cumulative, authorized by and
granted under this Plan.

"Award Agreement” means any writing setting forth the terms of an Award that
has been authorized by the Administrator.

"Award Date” means the date upon which the Administrator took the action
granting an Award or such later date as the Administrator designates as the
Award Date at the time of the Award.

"Beneficiary” means the person, persons, trust or trusts designated by a
Participant, or, in the absence of a designation, entitled by will or the laws
of descent and distribution, to receive the benefits specified in the Award
Agreement and under this Plan if the Participant dies, and means the
Participant’s executor or administrator if no other Beneficiary is designated
and able to act under the circumstances.

"Board” means the Board of Directors of the Corporation.

"Change in Control Event” means any of the following:

	 	(a)	 	The acquisition by any individual, entity or group (within
the meaning of Section 13(d)(3) or 14(d)(2) of the Exchange Act (a
“Person”)) of beneficial ownership (within the meaning of Rule 13d-3
promulgated under the Exchange Act) of 30% or more of either (1) the
then-outstanding shares of common stock of the Corporation (the
“Outstanding Company Common Stock”) or (2) the combined voting power
of the then-outstanding voting securities of the Corporation
entitled to vote generally in the election of directors of the
Corporation (the “Outstanding Company Voting Securities”); provided,
however, that, for purposes of this definition, the following
acquisitions shall not constitute a Change in Control Event; (A) any
acquisition directly from the Corporation, (B) any acquisition by
the Corporation, (C) any acquisition by any employee benefit plan
(or related trust) sponsored or maintained by the Corporation or any
affiliate of the Corporation or a successor, or (D) any acquisition
by any entity pursuant to a transaction that complies with clauses
(c)(1), (2) and (3) below;

	 	(b)	 	Individuals who, as of the Effective Date, constitute the
Board (the “Incumbent Board”) cease for any reason to constitute at
least a majority of the Board; provided, however, that any
individual becoming a director of the Corporation
subsequent to the Effective Date whose election, or nomination for
election by the Corporation’s stockholders, was approved by a vote
of at least three-fourths of the directors of the Corporation then
comprising the Incumbent Board (including for

26

 

	 	 	 	these purposes, the
new members whose election or nomination was so approved, without
counting the member and his predecessor twice) shall be considered
as though such individual were a member of the Incumbent Board, but
excluding, for this purpose, any such individual whose initial
assumption of office occurs as a result of an actual or threatened
election contest with respect to the election or removal of
directors of the Corporation or other actual or threatened
solicitation of proxies or consents by or on behalf of a Person
other than the Board;

	 	(c)	 	Consummation of a reorganization, merger, statutory share
exchange or consolidation or similar corporate transaction involving
the Corporation or any of its Subsidiaries, a sale or other
disposition of all or substantially all of the assets of the
Corporation, or the acquisition of assets or stock of another entity
by the Corporation or any of its Subsidiaries (each, a “Business
Combination”), in each case unless, following such Business
Combination, (1) all or substantially all of the individuals and
entities that were the beneficial owners of the Outstanding Company
Common Stock and the Outstanding Company Voting Securities
immediately prior to such Business Combination beneficially own,
directly or indirectly, more than 50% of the then-outstanding shares
of common stock and the combined voting power of the
then-outstanding voting securities entitled to vote generally in the
election of directors, as the case may be, of the entity resulting
from such Business Combination (including, without limitation, an
entity that, as a result of such transaction, owns the Corporation
or all or substantially all of the Corporation’s assets directly or
through one or more subsidiaries (a “Parent”)) in substantially the
same proportions as their ownership immediately prior to such
Business Combination of the Outstanding Company Common Stock and the
Outstanding Company Voting Securities, as the case may be, (2) no
Person (excluding any entity resulting from such Business
Combination or a Parent or any employee benefit plan (or related
trust) of the Corporation or such entity resulting from such
Business Combination or Parent) beneficially owns, directly or
indirectly, 30% or more of, respectively, the then-outstanding
shares of common stock of the entity resulting from such Business
Combination or the combined voting power of the then-outstanding
voting securities of such entity, except to the extent that the
ownership in excess of 30% existed prior to the Business
Combination, and (3) at least a majority of the members of the board
of directors or trustees of the entity resulting from such Business
Combination or a Parent were members of the Incumbent Board at the
time of the execution of the initial agreement or of the action of
the Board providing for such Business Combination; or

	 	(d)	 	Approval by the stockholders of the Corporation of a complete
liquidation or dissolution of the Corporation other than in the
context of a transaction that does not constitute a Change in
Control Event under clause (c) above.

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

27

 

"Commission” means the Securities and Exchange Commission.

"Common Stock” means the Common Stock of the Corporation and such other
securities or property as may become the subject of Awards, or become subject
to Awards, pursuant to an adjustment made under Section 6.3 of this Plan.

"Company” means, collectively, the Corporation and its Subsidiaries.

"Corporation” means Corinthian Colleges, Inc., a Delaware corporation, and its
successors.

"Eligible Employee” means an officer (whether or not a director) or employee of
the Company.

"Eligible Person” means an Eligible Employee, or any Other Eligible Person, as
determined by the Administrator.

"Exchange Act” means the Securities Exchange Act of 1934, as amended from time
to time.

"Fair Market Value” on any date means (a) if the stock is listed or admitted to
trade on a national securities exchange, the closing price of the stock on the
Composite Tape, as published in the Western Edition of The Wall Street Journal,
of the principal national securities exchange on which the stock is so listed
or admitted to trade, on such date, or, if there is no trading of the stock on
such date, then the closing price of the stock as quoted on such Composite Tape
on the next preceding date on which there was trading in such shares; (b) if
the stock is not listed or admitted to trade on a national securities exchange,
the last/closing price for the stock on such date, as furnished by the National
Association of Securities Dealers, Inc. (“NASD”) through the NASDAQ National
Market Reporting System or a similar organization if the NASD is no longer
reporting such information; (c) if the stock is not listed or admitted to trade
on a national securities exchange and is not reported on the National Market
Reporting System, the mean between the bid and asked price for the stock on
such date, as furnished by the NASD or a similar organization; or (d) if the
stock is not listed or admitted to trade on a national securities exchange, is
not reported on the National Market Reporting System and if bid and asked
prices for the stock are not furnished by the NASD or a similar organization,
the value as established by the Administrator at such time for purposes of this
Plan. Any determination as to fair market value made pursuant to this Plan
shall be determined without regard to any restriction other than a restriction
which, by its terms, will never lapse, and shall be conclusive and binding on
all persons. The Administrator may, however, provide with respect to one or
more Awards that the Fair Market Value shall equal the last closing price of a
share of Common Stock as reported on the composite tape for securities listed
on a national securities exchange or as furnished by the NASD and available on
the date in question or the average of the high and low prices of a share of
Common Stock as reported on the composite tape for securities listed on a
national securities exchange or as furnished by the NASD for the date in
question or the most recent trading day. The Administrator also may adopt a
different methodology for determining Fair Market Value with respect to one or
more Awards if a different methodology is necessary or advisable to secure
any intended favorable tax, legal or other treatment for the particular
Award(s) (for example, and without limitation, the Administrator may provide
that Fair Market Value for purposes of one or more Awards will be based on an
average of closing prices (or the average of high and low daily trading prices)
for a specified period preceding the relevant date).

28

 

"Incentive Stock Option” means an Option that is designated and intended as an
incentive stock option within the meaning of Section 422 of the Code, the award
of that contains such provisions (including but not limited to the receipt of
stockholder approval of this Plan, if the award is made prior to such approval)
and is made under such circumstances and to such persons as may be necessary to
comply with that section.

"Nonqualified Stock Option” means an Option that is designated as a
Nonqualified Stock Option and will include any Option intended as an Incentive
Stock Option that fails to meet the applicable legal requirements thereof. Any
Option granted hereunder that is not designated as an incentive stock option
will be deemed to be designated a nonqualified stock option under this Plan and
not an incentive stock option under the Code.

"Non-Employee Director” means a member of the Board of Directors of the
Corporation who is not an officer or employee of the Company.

"Option” means an option to purchase Common Stock granted under this Plan. The
Administrator will designate any Option granted to an Eligible Person as a
Nonqualified Stock Option or an Incentive Stock Option.

"Other Eligible Person” means any individual consultant or advisor or agent who
renders or has rendered bona fide services (other than services in connection
with the offering or sale of securities of the Company in a capital raising
transaction) to the Company or any Non-Employee Director, and who (to the
extent provided in the next sentence) is selected to participate in this Plan
by the Administrator. A person who is neither an employee, officer, nor
director who provides bona fide services to the Company may be selected as an
Other Eligible Person only if such person’s participation in this Plan would
not adversely affect (a) the Corporation’s eligibility to use Form S-8 to
register under the Securities Act, the offering of shares issuable under this
Plan by the Company, or (b) the Corporation’s compliance with any other
applicable laws.

"Participant” means an Eligible Person who has been granted an Award under this
Plan.

"Performance Share Award” means an Award of a right to receive shares of Common
Stock under Section 5.1, or to receive shares of Common Stock or other
compensation (including cash) under Section 5.2, the issuance or payment of
which is contingent upon, among other conditions, the attainment of performance
objectives specified by the Administrator.

"Personal Representative” means the person or persons who, upon the disability
or incompetence of a Participant, has acquired on behalf of the Participant, by
legal proceeding or
otherwise, the power to exercise the rights or receive benefits under this Plan
by virtue of having become the legal representative of the Participant.

29

 

"Plan” means this Corinthian Colleges, Inc. 2003 Performance Award Plan, as it
may hereafter be amended from time to time.

"QDRO” means a qualified domestic relations order.

"Restricted Shares” or “Restricted Stock” means shares of Common Stock awarded
to a Participant under this Plan, subject to payment of such consideration, if
any, and such conditions on vesting (which may include, among others, the
passage of time, specified performance objectives or other factors) and such
transfer and other restrictions as are established in or pursuant to this Plan
and the related Award Agreement, for so long as such shares remain unvested
under the terms of the applicable Award Agreement.

"Retirement” means retirement with the consent of the Company or, from active
service as an employee or officer of the Company on or after attaining (a) age
55 with ten or more years of employment with the Company, or (b) age 65.

"Rule 16b-3” means Rule 16b-3 as promulgated by the Commission pursuant to the
Exchange Act, as amended from time to time.

"Section 16 Person” means a person subject to Section 16(a) of the Exchange
Act.

"Section 162(m)” means Section 162(m) of the Code and the regulations
promulgated thereunder.

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

"Stock Appreciation Right” or “SAR” means a right authorized under this Plan to
receive a number of shares of Common Stock or an amount of cash, or a
combination of shares and cash, the aggregate amount or value of which is
determined by reference to a change in the Fair Market Value of the Common
Stock.

"Stock Bonus” means an Award of shares of Common Stock granted under this Plan
for no consideration other than past services and without restriction other
than such transfer or other restrictions as the Administrator may deem
advisable to assure compliance with law.

"Stock Unit” means a bookkeeping entry which serves as a unit of measurement
relative to a share of Common Stock for purposes of determining the payment, in
Common Stock or cash, of an Award, including a deferred benefit or right under
this Plan. Stock Units are not outstanding shares and do not entitle a
Participant to any dividend, voting or other rights in respect of any Common
Stock represented thereby or acquirable thereunder. Stock Units, may, however,
by express provision in the applicable Award Agreement, entitle a Participant
to dividend equivalent rights, as determined by the Administrator.

"Subsidiary” means any corporation or other entity a majority of whose
outstanding voting stock or voting power is beneficially owned directly or
indirectly by the Corporation.

"Total Disability” means a “total and permanent disability” within the meaning
of Section 22(e)(3) of the Code and, with respect to Awards other than
Incentive Stock Options, such other disabilities, infirmities, afflictions, or
conditions as the Administrator may include.

30

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