Document:

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                                                                     EXHIBIT 4.7

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                          THIRD SUPPLEMENTAL INDENTURE

                                      AMONG

                              TEPPCO PARTNERS, L.P.

                                   AS ISSUER,

               TE PRODUCTS PIPELINE COMPANY, LIMITED PARTNERSHIP,

                                   TCTM, L.P.,

                        TEPPCO MIDSTREAM COMPANIES, L.P.,

                           JONAH GAS GATHERING COMPANY

                                       AND

                      VAL VERDE GAS GATHERING COMPANY, L.P.

                            AS SUBSIDIARY GUARANTORS,

                                       AND

                       WACHOVIA BANK, NATIONAL ASSOCIATION

                                   AS TRUSTEE

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

                                JANUARY 30, 2003

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

                          6.125% SENIOR NOTES DUE 2013

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                                TABLE OF CONTENTS

<TABLE>
<S>                                                                      <C>
ARTICLE 1 THE 2013 NOTES .............................................    2
   SECTION 1.1    Designation of the 2013 Notes; Establishment of Form    2
   SECTION 1.2    Amount .............................................    3
   SECTION 1.3    Redemption .........................................    3
   SECTION 1.4    Conversion .........................................    3
   SECTION 1.5    Maturity ...........................................    3
   SECTION 1.6    Place of Payment ...................................    3
   SECTION 1.7    Subsidiary Guarantors ..............................    3
   SECTION 1.8    Other Terms of 2013 Notes ..........................    4
ARTICLE 2 AMENDMENTS TO THE INDENTURE ................................    4
   SECTION 2.1    Definitions ........................................    4
   SECTION 2.2    Redemption .........................................    8
   SECTION 2.3    Covenants ..........................................    9
   SECTION 2.4    Events of Default ..................................   10
   SECTION 2.5    Administration of Trust ............................   10
ARTICLE 3 VAL VERDE GUARANTEE ........................................   11
   SECTION 3.1    Val Verde Guarantee ................................   11
ARTICLE 4 MISCELLANEOUS PROVISIONS ...................................   11
   SECTION 4.1    Integral Part ......................................   11
   SECTION 4.2    General Definitions ................................   11
   SECTION 4.3    Adoption, Ratification and Confirmation ............   11
   SECTION 4.4    Counterparts .......................................   11
   SECTION 4.5    Governing Law ......................................   11

EXHIBIT A         FORM OF 2013 NOTE ..................................   A-1
</TABLE>

                                       i
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                          THIRD SUPPLEMENTAL INDENTURE

      THIS THIRD SUPPLEMENTAL INDENTURE, dated as of January 30, 2003 (this
"Third Supplemental Indenture"), among TEPPCO Partners, L.P., a Delaware limited
partnership (the "Partnership"), TE Products Pipeline Company, Limited
Partnership, a Delaware limited partnership ("TE Products"), TCTM, L.P., a
Delaware limited partnership ("TCTM"), TEPPCO Midstream Companies, L.P., a
Delaware limited partnership ("TEPPCO Midstream"), Jonah Gas Gathering Company,
a Wyoming general partnership ("Jonah"), Val Verde Gas Gathering Company, L.P.,
a Delaware limited partnership ("Val Verde" and together with TE Products, TCTM,
TEPPCO Midstream and Jonah, the "Subsidiary Guarantors"), and Wachovia Bank,
National Association, a national banking association, as trustee (the
"Trustee").

                              W I T N E S S E T H:

      WHEREAS, TE Products, TCTM, TEPPCO Midstream and Jonah (collectively, the
"Original Subsidiary Guarantors") and the Partnership have heretofore executed
and delivered to the Trustee an Indenture dated as of February 20, 2002 (the
"Original Indenture" and, as amended and supplemented by this Third Supplemental
Indenture, the "Indenture"), providing for the issuance from time to time of one
or more series of the Partnership's Debt Securities, and the Guarantee by each
of the Subsidiary Guarantors (as defined therein) of the Debt Securities;

      WHEREAS, pursuant to Original Indenture, as amended and supplemented by
the First Supplemental Indenture dated as of February 20, 2002 among the
Partnership, the Original Subsidiary Guarantors and the Trustee, the Partnership
issued $500,000,000 aggregate principal amount of its 7.625% Senior Notes due
2012 (the "2012 Notes");

      WHEREAS, Sections 2.01 and 2.03 of the Indenture provide that, without the
approval of any Holder, the Partnership and the Subsidiary Guarantors may enter
into supplemental indentures to establish the form, terms and provisions of a
series of Debt Securities issued pursuant to the Indenture;

      WHEREAS, Section 9.01(k) of the Indenture provides that the Partnership
and the Subsidiary Guarantors and the Trustee may from time to time enter into
one or more indentures supplemental thereto, without the consent of any Holders,
to establish the form or terms of Debt Securities of a new series;

      WHEREAS, Section 9.01(b) of the Indenture permits the execution of
supplemental indentures without the consent of any Holders to add to the
covenants of the Partnership or the Subsidiary Guarantors for the benefit of,
and to add any additional Events of Default with respect to, all or any series
of Debt Securities;

      WHEREAS, Section 9.01(i) of the Indenture permits the execution of
supplemental indentures without the consent of any Holders to add to, change or
eliminate any of the provisions of the Indenture with respect to all or any
series of Debt Securities, provided that, among other things, such addition,
change or elimination does not apply to any outstanding Debt Security of any
series created prior to the execution of such supplemental indenture;

      WHEREAS, Section 9.01(i) of the Indenture permits the execution of
supplemental indentures without the consent of any Holders to add Subsidiary
Guarantors with respect to any or all of the Debt Securities;

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      WHEREAS, the Partnership desires to issue a series of its Debt Securities
under the Indenture, such series to be known as its 6.125% Senior Notes due 2013
(the "2013 Notes"), the issuance of which series was authorized by or pursuant
to resolution of the Board of Directors, and the Subsidiary Guarantors desire to
Guarantee the 2013 Notes as provided in Article XIV of the Indenture;

      WHEREAS, the Partnership, pursuant to the foregoing authority, proposes in
and by this Third Supplemental Indenture to supplement and amend the Original
Indenture insofar as it will apply only to the 2013 Notes;

      WHEREAS, Val Verde is executing and delivering this Third Supplemental
Indenture for the purpose of providing a Guarantee of the 2013 Notes, in
accordance with the provisions of the Original Indenture;

      WHEREAS, all things necessary have been done to make the 2013 Notes, when
duly issued by the Partnership and when executed on behalf of the Partnership
and authenticated and delivered in accordance with the Indenture, the valid
obligations of the Partnership, to make the Guarantee of the 2013 Notes the
valid obligation of each of the Subsidiary Guarantors, and to make this Third
Supplemental Indenture a valid agreement of the Partnership and the Subsidiary
Guarantors, in accordance with their and its terms;

      NOW, THEREFORE:

      In consideration of the premises provided for herein, the Partnership, the
Subsidiary Guarantors and the Trustee mutually covenant and agree for the equal
and proportionate benefit of all Holders of the 2013 Notes as follows:

                                   ARTICLE 1

                                 THE 2013 NOTES

      SECTION 1.1 Designation of the 2013 Notes; Establishment of Form.

      There shall be a series of Debt Securities designated "6.125% Senior Notes
due 2013" of the Partnership (the "2013 Notes"), and the form thereof (including
the notation of Guarantee thereof) shall be substantially as set forth in
Exhibit A hereto, which is incorporated into and shall be deemed a part of this
Third Supplemental Indenture, in each case with such appropriate insertions,
omissions, substitutions and other variations as are required or permitted by
the Indenture, and may have such letters, numbers or other marks of
identification and such legends or endorsements placed thereon as the
Partnership may deem appropriate or as may be required or appropriate to comply
with any laws or with any rules made pursuant thereto or with the rules of any
securities exchange on which the 2013 Notes may be listed, or to conform to
general usage, or as may, consistently with the Indenture, be determined by the
officers executing such 2013 Notes, as evidenced by their execution of the 2013
Notes.

      The 2013 Notes will initially be issued in permanent global form,
substantially in the form set forth in Exhibit A hereto, as a Global Security.

      The Partnership initially appoints the Trustee to act as paying agent and
Registrar with respect to the 2013 Notes.

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      SECTION 1.2 Amount.

      The Trustee shall authenticate and deliver 2013 Notes for original issue
in an aggregate principal amount of up to $200,000,000 upon Partnership Order
for the authentication and delivery of 2013 Notes. The authorized aggregate
principal amount of 2013 Notes may be increased at any time hereafter and the
series may be reopened for issuances of additional 2013 Notes, upon Partnership
Order without the consent of any Holder. The 2013 Notes issued on the date
hereof and any such additional 2013 Notes that may be issued hereafter shall be
part of the same series of Debt Securities.

      SECTION 1.3 Redemption.

            (a) There shall be no sinking fund for the retirement of the 2013
      Notes or other mandatory redemption obligation.

            (b) The Partnership, at its option, may redeem the 2013 Notes in
      accordance with the provisions of the 2013 Notes and the Indenture.

      SECTION 1.4 Conversion.

      The 2013 Notes shall not be convertible into any other securities.

      SECTION 1.5 Maturity.

      The Stated Maturity of the 2013 Notes shall be February 1, 2013.

      SECTION 1.6 Place of Payment.

      As long as any 2013 Notes are Outstanding, the Partnership shall maintain
in the Borough of Manhattan, The City of New York, an office or agency where the
2013 Notes may be surrendered for registration of transfer or for exchange, an
office or agency where the 2013 Notes may be presented for payment, and an
office or agency where notices and demands to or upon the Partnership in respect
of the 2013 Notes and the Indenture may be served. All of such offices or
agencies shall initially be the corporate trust office of the Trustee in the
Borough of Manhattan, The City of New York, which on the date of this Third
Supplemental Indenture, is located at 40 Broad Street, 5th Floor, New York, New
York 10004. The Partnership may also from time to time designate one or more
other offices or agencies where the 2013 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 shall in
any manner relieve the Partnership of its obligation to maintain an office or
agency in the Borough of Manhattan, The City of New York, for such purposes.

      SECTION 1.7 Subsidiary Guarantors.

      The 2013 Notes shall be entitled to the benefits of the Guarantee of each
of the Subsidiary Guarantors as provided in Article XIV of the Indenture.

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      SECTION 1.8 Other Terms of 2013 Notes.

      Without limiting the foregoing provisions of this Article 1, the terms of
the 2013 Notes shall be as provided in the form of 2013 Notes set forth in
Exhibit A hereto and as provided in the Indenture.

                                   ARTICLE 2

                           AMENDMENTS TO THE INDENTURE

      The amendments and supplements contained herein shall apply to 2013 Notes
only and not to any other series of Debt Securities issued under the Indenture
and any covenants provided herein are expressly being included solely for the
benefit of the 2013 Notes. These amendments and supplements shall be effective
for so long as there remains any 2013 Notes outstanding.

      SECTION 2.1 Definitions.

      Section 1.01 of the Original Indenture is amended and supplemented by
inserting or restating, as the case may be, in their appropriate alphabetical
position, the following definitions:

      "Attributable Indebtedness" means with respect to a Sale-Leaseback
Transaction, at the time of determination, the lesser of:

            (a) the fair market value (as determined in good faith by the Board
      of Directors) of the assets involved in the Sale-Leaseback Transaction;

            (b) the present value of the total net amount of rent required to be
      paid under the lease involved in such Sale-Leaseback Transaction during
      the remaining term thereof (including any renewal term exercisable at the
      lessee's option or period for which such lease has been extended),
      discounted at the rate of interest set forth or implicit in the terms of
      such lease or, if not practicable to determine such rate, the weighted
      average interest rate per annum borne by the 2013 Notes compounded
      semiannually; and

            (c) if the obligation with respect to the Sale-Leaseback Transaction
      constitutes an obligation that is required to be classified and accounted
      for as a Capital Lease Obligation for financial reporting purposes in
      accordance with GAAP, the amount equal to the capitalized amount of such
      obligation determined in accordance with GAAP and included in the
      financial statements of the lessee.

For purposes of the foregoing definition, rent will not include amounts required
to be paid by the lessee, whether or not designated as rent or additional rent,
on account of or contingent upon maintenance and repairs, insurance, taxes,
assessments, utilities, water rates, operating charges, labor costs and similar
charges. In the case of any lease that is terminable by the lessee upon the
payment of a penalty, such net amount shall be the lesser of the net amount
determined assuming termination upon the first date such lease may be terminated
(in which case the net amount shall also include the amount of the penalty, but
no rent shall be considered as required to be paid under such lease subsequent
to the first date upon which it may be so terminated) or the net amount
determined assuming no such termination.

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      "Capital Lease Obligation" means, at the time any determination thereof is
to be made, the amount of the liability in respect of a capital lease that would
at such time be required to be capitalized on a balance sheet in accordance with
GAAP.

      "Consolidated Net Tangible Assets" means, at any date of determination,
the aggregate amount of total assets included in the most recent consolidated
quarterly or annual balance sheet of the Partnership prepared in accordance with
GAAP, less applicable reserves reflected in such balance sheet, after deducting
the following amounts:

            (a) all current liabilities reflected in such balance sheet
      (excluding any current maturities of long-term debt or any current
      liabilities that by their terms are extendable or renewable at the option
      of the obligor to a time more than 12 months after the time as of which
      the amount is being computed); and

            (b) all goodwill, trade names, trademarks, patents, unamortized debt
      discount and expense and other like intangibles reflected in such balance
      sheet.

      "Funded Debt" means all Debt maturing one year or more from the date of
the incurrence, creation, assumption or guarantee thereof, all Debt directly or
indirectly renewable or extendible, at the option of the debtor, by its terms or
by the terms of the instrument or agreement relating thereto, to a date one year
or more from the date of the incurrence, creation, assumption or guarantee
thereof, and all Debt under a revolving credit or similar agreement obligating
the lender or lenders to extend credit over a period of one year or more.

      "Permitted Liens" include:

            (a) Liens existing at, or provided for under the terms of an
      "after-acquired property" clause or similar term of any agreement existing
      on the date of, the initial issuance of the 2013 Notes or the terms of any
      mortgage, pledge agreement or similar agreement existing on such date of
      initial issuance;

            (b) Liens on property, shares of stock, indebtedness or other assets
      of any Person (which is not a Subsidiary of the Partnership) existing at
      the time such Person becomes a Subsidiary of the Partnership or is merged
      into or consolidated with or into the Partnership or any of its
      Subsidiaries (whether or not the obligations secured thereby are assumed
      by the Partnership or any of its Subsidiaries), provided that such Liens
      are not incurred in anticipation of such Person becoming a Subsidiary of
      the Partnership, or Liens existing at the time of a sale, lease or other
      disposition of the properties of a Person as an entirety or substantially
      as an entirety to the Partnership or any of its Subsidiaries;

            (c) Liens on property, shares of stock, indebtedness or other assets
      existing at the time of acquisition thereof by the Partnership or any of
      its Subsidiaries (whether or not the obligations secured thereby are
      assumed by the Partnership or any of its Subsidiaries), or Liens thereon
      to secure the payment of all or any part of the purchase price thereof;

            (d) any Lien on property, shares of capital stock, indebtedness or
      other assets created at the time of the acquisition of same by the
      Partnership or any of its Subsidiaries or within 12 months after such
      acquisition to secure all or a portion of the purchase price of such
      property, capital stock, indebtedness or other assets or indebtedness
      incurred to finance such purchase price, whether such indebtedness is
      incurred prior to, at the time of or within one year after the date of
      such acquisition;

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            (e) Liens on property, shares of stock, indebtedness or other assets
      to secure any Debt incurred to pay the costs of construction, development,
      repair or improvements thereon, or incurred prior to, at the time of, or
      within 12 months after, the latest of the completion of construction, the
      completion of development, repair or improvements or the commencement of
      full commercial operation of such property for the purpose of financing
      all or any part of, such construction or the making of such development,
      repair or improvements;

            (f) Liens to secure indebtedness owing to the Partnership or any of
      its Subsidiaries;

            (g) Liens on any current assets that secure current liabilities or
      indebtedness incurred by the Partnership or any of its Subsidiaries;

            (h) Liens in favor of the United States of America or any state,
      territory or possession thereof (or the District of Columbia), or any
      department, agency, instrumentality or political subdivision of the United
      States of America or any state, territory or possession thereof (or the
      District of Columbia), to secure partial, progress, advance or other
      payments pursuant to any contract or statute or to secure any indebtedness
      incurred for the purpose of financing all or any part of the purchase
      price or the cost of constructing, developing, repairing or improving the
      property subject to such liens;

            (i) Liens arising or imposed by reason of any attachment, judgment,
      decree or order of any regulatory, governmental or court authority or
      proceeding, so long as any proceeding initiated to review same shall not
      have been terminated or the period within which such proceeding may be
      initiated shall not have expired, or such attachment, judgment, decree or
      order shall otherwise be effectively stayed;

            (j) Liens on any capital stock of any Subsidiary of the Partnership
      that owns an equity interest in a joint venture to secure indebtedness,
      provided that the proceeds of such indebtedness received by such
      Subsidiary are contributed or advanced to such joint venture;

            (k) the assumption by the Partnership or any of its Subsidiaries of
      obligations secured by any Lien on property, shares of stock, indebtedness
      or other assets, which Lien exists at the time of the acquisition by the
      Partnership or any of its Subsidiaries of such property, shares,
      indebtedness or other assets or at the time of the acquisition of the
      Person that owns such property or assets;

            (l) Liens on any property to secure bonds for the construction,
      installation or financing of pollution control or abatement facilities, or
      other forms of industrial revenue bond financing, or indebtedness issued
      or guaranteed by the United States, any state or any department, agency or
      instrumentality thereof;

            (m) Liens to secure any refinancing, refunding, extension, renewal
      or replacement (or successive refinancings, refundings, extensions,
      renewals or replacements) of any Lien referred to in clauses (a)-(l)
      above; provided, however, that any Liens permitted by the terms set forth
      under any of such clauses (a)-(l) shall not extend to or cover any

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      property of the Partnership or of any of its Subsidiaries, as the case may
      be, other than the property specified in such clauses and improvements
      thereto or proceeds therefrom;

            (n) Liens deemed to exist by reason of negative pledges in respect
      of indebtedness;

            (o) Liens upon rights-of-way for pipeline purposes;

            (p) any statutory or governmental Lien or a Lien arising by
      operation of law, or any mechanics', repairmen's, materialmen's,
      supplier's, carrier's, landlord's, warehousemen's or similar Lien incurred
      in the ordinary course of business which is not yet due or is being
      contested in good faith by appropriate proceedings and any undetermined
      Lien which is incidental to construction, development, improvement or
      repair;

            (q) the right reserved to, or vested in, any municipality or public
      authority by the terms of any right, power, franchise, license, permit or
      by any provision of law, to purchase or to recapture or to designate a
      purchaser of, any property;

            (r) Liens of taxes and assessments which are for the current year,
      and are not at the time delinquent or are delinquent but the validity of
      which are being contested at the time by the Partnership or any of its
      Subsidiaries in good faith;

            (s) Liens of, or to secure the performance of, leases;

            (t) Liens upon, or deposits of, any assets in favor of any surety
      company or clerk of court for the purpose of obtaining indemnity or stay
      of judicial proceedings;

            (u) Liens upon property or assets acquired or sold by the
      Partnership or any of its Subsidiaries resulting from the exercise of any
      rights arising out of defaults on receivables;

            (v) Liens incurred in the ordinary course of business in connection
      with workmen's compensation, unemployment insurance, temporary disability,
      social security, retiree health or similar laws or regulations or to
      secure obligations imposed by statute or governmental regulations;

            (w) Liens securing indebtedness of the Partnership or indebtedness
      of any Subsidiaries of the Partnership, all or a portion of the net
      proceeds of which are used, substantially concurrently with the funding
      thereof (and for purposes of determining "substantial concurrence," taking
      into consideration, among other things, required notices to be given to
      Holders of Outstanding Debt Securities under this Indenture (including the
      2013 Notes) in connection with such refunding, refinancing, repurchase,
      and the required durations thereof), to refund, refinance, or repurchase
      all Outstanding Debt Securities under this Indenture (including the 2013
      Notes) including all accrued interest thereon and reasonable fees and
      expenses and any premium incurred by the Partnership or its Subsidiaries
      in connection therewith; and

            (x) any Lien upon any property, shares of capital stock,
      indebtedness or other assets to secure indebtedness incurred by the
      Partnership or any of its Subsidiaries, the proceeds of which, in whole or
      in part, are used to defease, in a legal or a covenant

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      defeasance, the obligations of the Partnership on the 2013 Notes or any
      other series of Debt Securities.

      "Principal Property" means, whether owned or leased on the date of the
initial issuance of the 2013 Notes or acquired later:

            (a) pipeline assets of the Partnership or any of its Subsidiaries,
      including any related facilities employed in the gathering,
      transportation, distribution, storage or marketing of natural gas, natural
      gas liquids, refined petroleum products, liquefied petroleum gases, crude
      oil or petrochemicals, that are located in the United States of America or
      any territory or political subdivision thereof; and

            (b) any processing or manufacturing plant or terminal owned or
      leased by the Partnership or any of its Subsidiaries that is located in
      the United States of America or any territory or political subdivision
      thereof; except, in the case of either of the foregoing clauses (a) and
      (b), any such assets consisting of inventories, furniture, office fixtures
      and equipment (including data processing equipment), vehicles and
      equipment used on, or useful with, vehicles, and any such assets, plant or
      terminal which, in the opinion of the Board of Directors, is not material
      in relation to the activities of the Partnership or of the Partnership and
      its Subsidiaries, taken as a whole.

      "Sale-Leaseback Transaction" means any arrangement with any Person
providing for the leasing by the Partnership or any of its Subsidiaries of any
Principal Property, which Principal Property has been or is to be sold or
transferred by the Partnership or such Subsidiary to such Person, other than:

            (a) any such transaction involving a lease for a term (including
      renewals or extensions exercisable by the Partnership or any of its
      Subsidiaries) of not more than three years; or

            (b) any such transaction between the Partnership and any of its
      Subsidiaries or between any of its Subsidiaries.

      "2013 Notes" means the 6.125% Senior Notes due 2013 of the Partnership to
be issued pursuant to this Indenture. For purposes of this Indenture, the term
"2013 Notes" shall, except where the context otherwise requires, include the
Guarantee.

      SECTION 2.2 Redemption.

      Article III of the Original Indenture shall be amended and supplemented by
inserting the following new section in its entirety:

      "Section 3.06. Optional Redemption.

      The 2013 Notes may be redeemed at the option of the Partnership at any
time and from time to time at the redemption prices described in the 2013 Notes.
Any notice to Holders of 2013 Notes of such redemption shall include the
appropriate calculation of the redemption price, but need not include the
redemption price itself. The actual redemption price, calculated as provided in
the 2013 Notes, shall be set forth in an Officers' Certificate delivered to the
Trustee no later than two Business Days prior to the redemption date."

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      SECTION 2.3 Covenants.

      Article IV of the Original Indenture shall be amended and supplemented by
inserting the following new sections in their entirety:

      "Section 4.12. Limitation on Sale-Leaseback Transactions. The Partnership
shall not, and shall not permit any of its Subsidiaries to, enter into any
Sale-Leaseback Transaction unless:

            (a) such Sale-Leaseback Transaction occurs within 12 months from the
      date of completion of the acquisition of the Principal Property subject
      thereto or the date of the completion of construction, or development of,
      or substantial repair or improvement on, or commencement of full
      operations of, such Principal Property, whichever is later;

            (b) the Partnership or such Subsidiary, as the case may be, would be
      permitted, pursuant to the provisions of this Indenture, to incur Debt, in
      a principal amount equal to the Attributable Indebtedness with respect to
      such Sale-Leaseback Transaction, secured by a Lien on the Principal
      Property subject to such Sale-Leaseback Transaction pursuant to Section
      4.13 without equally and ratably securing the 2013 Notes pursuant to such
      Section; or

            (c) the Partnership or such Subsidiary, within a twelve-month period
      after the effective date of such Sale-Leaseback Transaction, applies or
      causes to be applied an amount equal to not less than the Attributable
      Indebtedness from such Sale-Leaseback Transaction either to (a) the
      voluntary defeasance or the prepayment, repayment, redemption or
      retirement of any 2013 Notes or other Funded Debt of the Partnership or
      any Subsidiary that is not subordinated to the Debt Securities, (b) the
      acquisition, construction, development or improvement of any Principal
      Property used or useful in the businesses of the Partnership (including
      the businesses of its Subsidiaries) or (c) any combination of applications
      referred to in the preceding clause (a) or (b).

      Notwithstanding the foregoing provisions of this Section, the Partnership
may, and may permit any Subsidiary to, effect any Sale-Leaseback Transaction
that is not excepted by clauses (a) through (c), inclusive, of this Section,
provided that the Attributable Indebtedness from such Sale-Leaseback
Transaction, together with the aggregate principal amount of (i) all other
Attributable Indebtedness deemed to be outstanding in respect of all
Sale-Leaseback Transactions (exclusive of any such Sale-Leaseback Transactions
otherwise permitted under clauses (a) and (c) of this Section) and (ii) all
outstanding Debt secured by Liens other than Permitted Liens on any Principal
Property or upon any shares of capital stock or indebtedness of any Subsidiary
owning or leasing any Principal Property, does not exceed 10% of Consolidated
Net Tangible Assets.

      Section 4.13. Limitation on Liens. The Partnership shall not, and shall
not permit any of its Subsidiaries to, incur, issue, create, assume or guarantee
any Lien, other than a Permitted Lien, on any Principal Property or upon any
shares of capital stock or indebtedness of any Subsidiary owning or leasing any
Principal Property, whether now existing or hereafter created or acquired by the
Partnership or such Subsidiary, to secure any Debt of the Partnership or any
other Person, without in any such case making effective provision whereby any
and all 2013 Notes then Outstanding will be secured by a Lien equally and
ratably with, or prior to, such Debt for so long as such Debt shall be so
secured. Notwithstanding the foregoing, the Partnership may, and may permit any
Subsidiary to, incur, issue, create, assume or guarantee any Lien (other

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than a Permitted Lien) on any Principal Property or upon any shares of capital
stock or indebtedness of any Subsidiary owning or leasing any Principal Property
to secure Debt of the Partnership or any other Person, without securing the 2013
Notes as provided in this Section, provided that the aggregate principal amount
of all Debt then outstanding secured by any such Lien together with the
aggregate amount of Attributable Indebtedness deemed to be outstanding in
respect of all Sale-Leaseback Transactions (exclusive of any such Sale-Leaseback
Transactions otherwise permitted under clauses (a) and (c) of Section 4.12),
does not exceed 10% of Consolidated Net Tangible Assets.

      Section 4.14. Additional Subsidiary Guarantors. If at any time after the
original issuance of the 2013 Notes, including following any release of a
Subsidiary Guarantor from its Guarantee under this Indenture, any Subsidiary of
the Partnership (including any future Subsidiary of the Partnership) guarantees
any Funded Debt of the Partnership, then the Partnership shall cause such
Subsidiary to guarantee the 2013 Notes and in connection with such guarantee, to
execute and deliver an Indenture supplemental hereto pursuant to Section 9.01(g)
simultaneously therewith. In order to further evidence its Guarantee, such
Subsidiary shall execute and deliver to the Trustee a notation relating to such
Guarantee in accordance with Section 14.02."

      SECTION 2.4 Events of Default.

      The following additional Event of Default shall be added to those in
clauses (a)-(g) of Section 6.01 of the Original Indenture in relation to the
2013 Notes:

      "(h) default in the payment by the Partnership or any of its Subsidiaries
at the Stated Maturity thereof, after the expiration of any applicable grace
period, of any principal of any Debt of the Partnership (other than the 2013
Notes) or any of its Subsidiaries (other than the Guarantee of the 2013 Notes)
outstanding in an aggregate principal amount in excess of $50,000,000, or the
occurrence of any other default thereunder (including, without limitation, the
failure to pay interest or any premium), the effect of which default is to cause
such Debt to become, or to be declared, due prior to its Stated Maturity and
such acceleration is not rescinded within 60 days after there has been given, by
registered or certified mail, to the Partnership and the Subsidiary Guarantors
by the Trustee or to the Partnership, the Subsidiary Guarantors and the Trustee
by the Holders of at least 25% in principal amount of the Outstanding 2013 Notes
a written notice specifying such default and requiring it to be remedied and
stating that such notice is a "Notice of Default" hereunder, and the receipt by
the Partnership and the Subsidiary Guarantors of such written notice."

      SECTION 2.5 Administration of Trust.

      Article VII of the Original Indenture shall be amended and supplemented by
inserting the following new section in its entirety:

      "Section 7.13. Administration of Trust.

      The Trustee shall administer the trust of the Indenture and shall perform
a substantial part of its obligations relating to the 2013 Notes and this
Indenture at its corporate trust office in The City of New York."

                                     - 10 -
<PAGE>

                                   ARTICLE 3

                               VAL VERDE GUARANTEE

      SECTION 3.1 Val Verde Guarantee.

      Val Verde hereby acknowledges and agrees that it is a Subsidiary Guarantor
with respect to the 2013 Notes and is executing and delivering this Third
Supplemental Indenture for the purpose of providing a Guarantee of the 2013
Notes, and accordingly, Val Verde's obligations as Subsidiary Guarantor of the
2013 Notes shall be governed by the Original Indenture, as amended and
supplemented by this Third Supplemental Indenture, as may be further amended and
supplemented from time to time.

                                   ARTICLE 4

                            MISCELLANEOUS PROVISIONS

      SECTION 4.1 Integral Part.

      This Third Supplemental Indenture constitutes an integral part of the
Indenture.

      SECTION 4.2 General Definitions.

      For all purposes of this Third Supplemental Indenture:

            (a) capitalized terms used herein without definition shall have the
      meanings specified in the Original Indenture; and

            (b) the terms "herein", "hereof", "hereunder" and other words of
      similar import refer to this Third Supplemental Indenture.

      SECTION 4.3 Adoption, Ratification and Confirmation.

      The Original Indenture, as supplemented and amended by this Third
Supplemental Indenture, is in all respects hereby adopted, ratified and
confirmed.

      SECTION 4.4 Counterparts.

      This Third Supplemental Indenture may be executed in any number of
counterparts, each of which when so executed shall be deemed an original; and
all such counterparts shall together constitute but one and the same instrument.

      SECTION 4.5 Governing Law.

      THIS THIRD SUPPLEMENTAL INDENTURE SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

                                     - 11 -
<PAGE>

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

                           TEPPCO PARTNERS, L.P.

                           By:      Texas Eastern Products Pipeline Company, LLC
                                    Its General Partner

                           By:      /s/ CHARLES H. LEONARD
                                    --------------------------------------------
                                    Charles H. Leonard
                                    Senior Vice President and Chief Financial
                                    Officer

                           TE PRODUCTS PIPELINE COMPANY,
                           LIMITED PARTNERSHIP

                           By:      TEPPCO GP, Inc.
                                    Its General Partner

                           By:      /s/ CHARLES H. LEONARD
                                    --------------------------------------------
                                    Charles H. Leonard
                                    Senior Vice President and Chief Financial
                                    Officer

                           TCTM, L.P.

                           By:      TEPPCO GP, Inc.
                                    Its General Partner

                           By:      /s/ CHARLES H. LEONARD
                                    --------------------------------------------
                                    Charles H. Leonard
                                    Senior Vice President and Chief Financial
                                    Officer

                           TEPPCO MIDSTREAM COMPANIES, L.P.

                           By:      TEPPCO GP, Inc.
                                    Its General Partner

                           By:      /s/ CHARLES H. LEONARD
                                    --------------------------------------------
                                    Charles H. Leonard
                                    Senior Vice President and Chief Financial
                                    Officer

                                     - 12 -
<PAGE>

                           JONAH GAS GATHERING COMPANY

                           By:      TEPPCO GP, Inc.
                                    Its Managing General Partner

                           By:      /s/ CHARLES H. LEONARD
                                    --------------------------------------------
                                    Charles H. Leonard
                                    Senior Vice President and Chief Financial
                                    Officer

                           VAL VERDE GAS GATHERING COMPANY, L.P.

                           By:      TEPPCO NGL Pipelines, LLC,
                                    Its General Partner

                           By:      /s/ CHARLES H. LEONARD
                                    --------------------------------------------
                                    Charles H. Leonard
                                    Senior Vice President

                           WACHOVIA BANK, NATIONAL ASSOCIATION, as Trustee

                           By:      /s/ KEVIN M. DOBRAVA
                                    --------------------------------------------
                           Name:    Kevin M. Dobrava
                           Title:   Vice President

                                     - 13 -
<PAGE>

                                                                       EXHIBIT A

                           [FORM OF FACE OF 2013 NOTE]

[UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), NEW YORK, NEW YORK, TO
THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND
ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER
NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS
MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS 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 SINCE THE REGISTERED OWNER HEREOF,
CEDE & CO., HAS AN INTEREST HEREIN.

TRANSFERS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS IN WHOLE, BUT
NOT IN PART, TO NOMINEES OF DTC OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR'S
NOMINEE AND TRANSFERS OF PORTIONS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO
TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS SET FORTH IN THE INDENTURE
REFERRED TO HEREIN.](1)

                              TEPPCO PARTNERS, L.P.
                           6.125% SENIOR NOTE DUE 2013

No. ___________                                                     $___________

                                                             CUSIP No. 872384AB8

      TEPPCO Partners, L.P., a Delaware limited partnership (herein called the
"Company," which term includes any successor Person under the Indenture
hereinafter referred to), for value received, hereby promises to pay to
______________________________ or registered assigns the principal sum of
_____________________________ Dollars on February 1, 2013 [or such greater or
lesser amount as is indicated on the Schedule of Exchanges of Securities
attached hereto](2), at the office or agency of the Company referred to below,
and to pay interest thereon, commencing on August 1, 2003 and continuing
semiannually thereafter, on February 1 and August 1 of each year, from January
30, 2003, or from the most recent Interest Payment Date to which interest has
been paid or duly provided for, at the rate of 6.125% per annum, until the
principal hereof is paid or duly provided for, and (to the extent lawful) to pay
on demand, interest on any overdue interest at the rate borne by the Securities
from the date on which such overdue interest becomes payable to the date payment
of such interest has been made or duly provided for. The interest so payable,
and punctually paid or duly provided for, on any Interest Payment Date (other
than at maturity) will, as provided in such Indenture, be paid to the Person in
whose name this Security (or one or more predecessor Securities) is registered
at the close of business on the Regular Record Date for such interest, which
shall be the January 15 or July 15 (whether or not a Business Day), as the case
may be, next preceding such Interest Payment Date. Any such interest not so
punctually paid or duly provided for shall forthwith cease to be payable to the
Holder on such Regular Record Date and may be paid to the Person in whose name
this Security (or one or more predecessor Securities) is registered at the close
of business on a special record date for the payment of such Defaulted Interest
to be fixed by the Trustee, notice whereof shall be given to Holders of
Securities of this series not less than 10 days prior to such special record
date, or may be paid at any time in any other lawful manner not inconsistent
with the requirements of any securities exchange on which the Securities of this
series may be listed, and upon such notice as may be required by such exchange,
all as more fully provided in said Indenture. Interest on the Securities of this
series shall be computed on the basis of a 360-day year comprised of twelve
30-day months.

      Payment of the principal of, premium, if any, and interest on this
Security will be made at the corporate trust office of the Trustee in New York,
New York, or at such other office or agency of the Company in the Borough of
Manhattan, The City of New York as may be maintained for such purpose, 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; provided however, that
payment of interest may be made (i) at the option of the Company by check mailed
to Holders at their respective addresses as shown in the Debt Security Register
or (ii) at the option of any Holder owning Securities in the principal amount of
$500,000 or more, by wire transfer to an account maintained by the Holder
located in the United States of America, as specified in a written notice to the
Trustee (received prior to the relevant record date) by any such Holder
requesting payment by wire transfer and specifying the account to which transfer
is requested.

----------
(1)   These paragraphs should be included only if the Debt Security is a Global
      Security.

(2)   This clause should be included only if the Debt Security is a Global
      Security.

                                      A-1
<PAGE>

      Notwithstanding the foregoing, so long as this Security is registered in
the name of a Depositary or its nominee, all payments hereon shall be made by
the Company or its agent by wire transfer of immediately available funds to the
account of such Depositary or its nominee. The Holder must surrender this
Security to a paying agent to collect payment of principal.

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

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

      IN WITNESS WHEREOF, the Company has caused this instrument to be duly
executed on its behalf by its sole General Partner.

     Dated:____________

                         TEPPCO PARTNERS, L.P.

                         By:   Texas Eastern Products Pipeline Company, LLC
                               Its General Partner

                         By:   _________________________________________________
                               Charles H. Leonard
                               Senior Vice President and Chief Financial Officer

                     TRUSTEE'S CERTIFICATE OF AUTHENTICATION

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

                          WACHOVIA BANK, NATIONAL ASSOCIATION,
Dated: ______________     As Trustee

                          By   _________________________________________________
                               Authorized Signatory

                                      A-2
<PAGE>

                         [FORM OF REVERSE OF 2013 NOTE]

      This Security is one of a duly authorized issue of the series of Debt
Securities of the Company designated as its 6.125% Senior Notes due 2013 (such
series being herein called the "Securities"), which is issued under, with
securities of one or more additional series that may be issued under, an
indenture dated as of February 20, 2002, among the Company, the Subsidiary
Guarantors and Wachovia Bank, National Association, as trustee (herein called
the "Trustee," which term includes any successor trustee under the Indenture),
as amended and supplemented by the Third Supplemental Indenture dated as of
January 30, 2003 (such Indenture, as so amended and supplemented, being called
the "Indenture"), to which Indenture and all future indentures supplemental
thereto reference is hereby made for a statement of the respective rights,
limitations of rights, duties, obligations and immunities thereunder of the
Company, the Subsidiary Guarantors, the Trustee and the Holders of the
Securities, and of the terms upon which the Securities are, and are to be,
authenticated and delivered.

      This Security is redeemable, in whole or in part, at any time and from
time to time, at the Company's option, upon at least 30 and not more than 60
days' prior notice as provided in the Indenture, at a redemption price equal to
the greater of (1) 100% of the principal amount of this Security then
Outstanding to be redeemed, or (2) the sum of the present values of the
remaining scheduled payments of principal and interest thereon (exclusive of
interest accrued to the redemption date) from the redemption date to February 1,
2013 computed by discounting such payments to the redemption date on a
semiannual basis (assuming a 360-day year consisting of twelve 30-day months) at
a rate equal to the sum of 35 basis points plus the Adjusted Treasury Rate on
the third Business Day prior to the redemption date, as calculated by an
Independent Investment Banker, plus accrued and unpaid interest, up to, but not
including, the redemption date.

      For purposes of determining any redemption price, the following
definitions are applicable:

      "Adjusted Treasury Rate" means, with respect to any redemption date, the
yield, under the heading which represents the average for the immediately
preceding week, appearing in the most recently published statistical release
designated "H.15(519)" or any successor publication which is published weekly by
the Board of Governors of the Federal Reserve System and which establishes
yields on actively traded U.S. Treasury securities adjusted to constant maturity
under the caption "Treasury Constant Maturities" for the maturity corresponding
to the Optional Redemption Comparable Treasury Issue (if no maturity is within
three months before or after the remaining term of this Security, yields for the
two published maturities most closely corresponding to the Optional Redemption
Comparable Treasury Issue will be determined and the Adjusted Treasury Rate will
be interpolated or extrapolated from such yields on a straight line basis,
rounding to the nearest month); or if such release (or any successor release) is
not published during the week preceding the calculation date or does not contain
such yields, the rate per annum equal to the semiannual equivalent yield to
maturity of the Optional Redemption Comparable Treasury Issue, calculated using
a price for the Optional Redemption Comparable Treasury Issue (expressed as a
percentage of its principal amount) equal to the Optional Redemption Comparable
Treasury Price for such redemption date.

      "Independent Investment Banker" means Wachovia Securities, Inc., or if
such firm is unwilling or unable to serve as such, an independent investment
banking institution of national standing appointed by the Company.

      "Optional Redemption Reference Treasury Dealer" means each of up to five
dealers to be selected by the Company and their respective successors; provided
that if any of the foregoing ceases to be, and has no affiliate that is, a
primary U.S. governmental securities dealer (a "Primary Treasury Dealer"), the
Company will substitute for it another Primary Treasury Dealer.

      "Optional Redemption Comparable Treasury Issue" means the U.S. Treasury
security selected by an Independent Investment Banker as having a maturity
comparable to the remaining term of this Security that would be utilized, at the
time of selection and in accordance with customary financial practice, in
pricing new issues of corporate debt securities of comparable maturity to the
remaining term of this Security, or, if, in the reasonable judgment of the
Independent Investment Banker, there is no such security, then the Optional
Redemption Comparable Treasury Issue will mean the U.S. Treasury security or
securities selected by the Independent Investment Banker as having an actual or
interpolated maturity or maturities comparable to the remaining term of this
Security.

      "Optional Redemption Comparable Treasury Price" means (1) the average of
five Optional Redemption Reference Treasury Dealer Quotations for the applicable
redemption date, after excluding the highest and lowest Optional Redemption
Reference Treasury Dealer Quotations, or (2) if the Independent Investment
Banker obtains

                                      A-3
<PAGE>

fewer than five such Optional Redemption Reference Treasury Dealer Quotations,
the average of all such quotations.

      "Optional Redemption Reference Treasury Dealer Quotations" means, with
respect to each Optional Redemption Reference Treasury Dealer and any Redemption
Date for this Security, the average, as determined by the Independent Investment
Banker, of the bid and asked prices for the Optional Redemption Comparable
Treasury Issue (expressed in each case as a percentage of its principal amount)
quoted in writing to the Independent Investment Banker and the Company at 5:00
p.m., New York City time, on the third Business Day preceding such Redemption
Date.

      In the case of any redemption of Securities, interest installments whose
stated maturity is on or prior to the redemption date will be payable to the
Holders of such Securities, or one or more predecessor Securities, of record at
the close of business on the relevant record date referred to on the face
hereof. Securities (or portions thereof) for whose redemption and payment
provision is made in accordance with the Indenture shall cease to bear interest
from and after the redemption date.

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

      The Securities do not have the benefit of any sinking fund obligations.

      As set forth in the Indenture, an Event of Default with respect to the
Securities is generally: (a) failure to pay principal upon Stated Maturity,
redemption or otherwise; (b) default for 30 days in payment of interest on any
of the Securities; (c) failure for 60 days after notice to comply with any other
covenants in the Indenture or the Securities; (d) certain payment defaults
under, or the acceleration prior to the Stated Maturity of, Debt of the Company
or any Subsidiary in an aggregate principal amount in excess of $50,000,000,
unless such acceleration is rescinded within 60 days after notice to the Company
and the Subsidiary Guarantors as provided in the Indenture; (e) the Guarantee of
the Securities by any of the Subsidiary Guarantors ceases to be in full force
and effect (except as otherwise provided in the Indenture); and (f) certain
events of bankruptcy, insolvency or reorganization of the Company or any
Subsidiary Guarantor.

      If an Event of Default described in clause (f) in the preceding paragraph
occurs, then the principal amount of all Outstanding Securities, premium, if
any, and interest thereon shall ipso facto be due and payable immediately. If
any other Event of Default with respect to the Securities occurs and is
continuing, the Trustee or the holders of at least 25% in aggregate principal
amount of the Outstanding Securities may declare the principal amount of all the
Securities, premium, if any, and accrued interest thereon to be due and payable
immediately. The Indenture provides that such declaration may be rescinded in
certain events by the Holders of a majority in principal amount of the
Outstanding Securities.

      No Holder of the Securities may pursue any remedy under the Indenture
unless the Trustee shall have failed to act after notice of an Event of Default
with respect to the Securities and written request by Holders of at least 25% in
principal amount of the Outstanding Securities, and the offer to the Trustee of
indemnity reasonably satisfactory to it; however, such provision does not affect
the right to sue for enforcement of any overdue payment on a Security by the
Holder thereof. Subject to certain limitations, Holders of a majority in
principal amount of the Outstanding Securities may direct the Trustee in its
exercise of any trust or power. The Trustee may withhold from Holders notice of
any continuing default (except default in payment of principal, premium or
interest) if it determines in good faith that withholding the notice is in the
interest of the Holders. The Company is required to file a report with the
Trustee each year as to the absence or existence of defaults.

      The Company's payment obligations under the Securities are jointly and
severally guaranteed by the Subsidiary Guarantors. Any Subsidiary Guarantor may
be released from its Guarantee of the Securities under the circumstances
described in the Indenture.

      The Indenture contains provisions for defeasance at any time of (i) the
entire indebtedness of the Company and Subsidiary Guarantors on this Security
and (ii) certain Events of Default, upon compliance by the Company with certain
conditions set forth therein, which provisions apply to this Security.

      The Indenture permits, with certain exceptions as therein provided, the
amendment thereof and the modification of the rights and obligations of the
Company or the Subsidiary Guarantors and the rights of the Holders of the

                                      A-4
<PAGE>

Securities under the Indenture at any time by the Company, the Subsidiary
Guarantors and the Trustee with the consent of the Holders of at least a
majority in aggregate principal amount of the Securities at the time
Outstanding. The Indenture also contains provisions permitting the Holders of at
least a majority in principal amount of the Securities at the time Outstanding,
on behalf of the Holders of all the Securities, to waive compliance by the
Company or the Subsidiary Guarantors with certain provisions of the Indenture
and certain past defaults under the Indenture and their consequences. Any such
consent or waiver by or on behalf of the Holder of this Security shall be
conclusive and binding upon such Holder and upon all future Holders of this
Security and of any Security issued upon the registration of transfer hereof or
in exchange herefor or in lieu hereof, whether or not notation of such consent
or waiver is made upon this Security. Without the consent of any Holder, the
Company, the Subsidiary Guarantors and the Trustee may amend or supplement the
Indenture or the Securities to cure any ambiguity, defect or inconsistency, to
make other changes that do not adversely affect the rights of any Holder and to
make certain other specified changes.

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

      As provided in the Indenture and subject to certain limitations therein
set forth, the transfer of this Security is registerable in the Debt Security
Register, upon surrender of this Security for registration of transfer at the
office or agency of the Company maintained for such purpose, duly endorsed by,
or accompanied by a written instrument of transfer in form satisfactory to the
Company and the Registrar duly executed by, the Holder hereof or his attorney
duly authorized in writing, and thereupon one or more new Securities, of
authorized denominations and for the same aggregate principal amount, will be
issued to the designated transferee or transferees.

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

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

      The General Partner and its directors, officers, employees, incorporators
and stockholders, as such, shall have no liability for any obligations of the
Subsidiary Guarantors or the Company under the Securities, the Indenture or the
Guarantee or for any claim based on, in respect of, or by reason of, such
obligations or their creation. Each Holder, by accepting this Security, waives
and releases all such liability. Such waiver and release are part of the
consideration for the issuance of this Security.

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

      All terms used in this Security which are defined in the Indenture shall
have the meanings assigned to them in the Indenture. The Company will furnish to
any Holder upon written request and without charge a copy of the Indenture.
Requests may be made to the Company, P. O. Box 2521, Houston, Texas 77252-2521.

      Pursuant to a recommendation promulgated by the Committee on Uniform
Security Identification Procedures, the Company has caused CUSIP numbers to be
printed on the Securities as a convenience to the Holders thereof. No
representation is made as to the accuracy of such numbers as printed on the
Securities and reliance may be placed only on the other identifying information
printed hereon.

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

                                      A-5
<PAGE>

                                 ASSIGNMENT FORM

(I) or (we) assign and transfer this Security to

________________________________________________________________________________
             (Insert assignee's social security or tax I.D. number)

________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
              (Print or type assignee's name, address and zip code)

and irrevocably appoint
__________________________________________________________ as agent to transfer
this Security on the Debt Security Register of the Company. The agent may
substitute another to act for him.

Dated:________________

                                   Signature: __________________________________
                                   (Sign exactly as name appears on the face
                                   of this Security)

                                   Name:________________________________________
                                   Address:_____________________________________

                                   Phone No.:___________________________________

Signature Guarantee

By: ____________________________
Signature guarantor must be an
eligible guarantor institution
- a bank or trust company or
broker or dealer which is a
member of a registered
exchange or the NASD.

                                      A-6
<PAGE>

                     SCHEDULE OF EXCHANGES OF SECURITIES(3)

The following exchanges, redemptions or repurchases of a part of this Global
Security have been made:

<TABLE>
<CAPTION>
       PRINCIPAL AMOUNT
   OF THIS GLOBAL SECURITY                AUTHORIZED                                                AMOUNT OF
        FOLLOWING SUCH                   SIGNATORY OF           AMOUNT OF DECREASE IN              INCREASE IN
        DECREASE DATE                TRUSTEE OR SECURITY           PRINCIPAL AMOUNT             PRINCIPAL AMOUNT
  OF EXCHANGE (OR INCREASE)               CUSTODIAN            OF THIS GLOBAL SECURITY       OF THIS GLOBAL SECURITY
-------------------------------     -----------------------    -------------------------    --------------------------
<S>                                 <C>                        <C>                          <C>

</TABLE>

----------
(3)   This schedule should be included only if the Debt Security is a Global
      Security.

                                      A-7
<PAGE>

                              NOTATION OF GUARANTEE

      Each of the Subsidiary Guarantors (which term includes any successor
Person under the Indenture), has fully, unconditionally and absolutely
guaranteed, to the extent set forth in the Indenture and subject to the
provisions in the Indenture, the due and punctual payment of the principal of,
and premium, if any, and interest on the Securities and all other amounts due
and payable under the Indenture and the Securities by the Partnership.

      The obligations of the Subsidiary Guarantors to the Holders of Securities
and to the Trustee pursuant to the Guarantee and the Indenture are expressly set
forth in Article XIV of the Indenture and reference is hereby made to the
Indenture for the precise terms of the Guarantee.

                           TE PRODUCTS PIPELINE COMPANY, LIMITED PARTNERSHIP

                           By: TEPPCO GP, Inc.
                               Its General Partner

                           By: _________________________________________________
                               Charles H. Leonard
                               Senior Vice President and Chief Financial Officer

                           TCTM, L.P.

                           By: TEPPCO GP, Inc.
                               Its General Partner

                           By: _________________________________________________
                               Charles H. Leonard
                               Senior Vice President and Chief Financial Officer

                           TEPPCO MIDSTREAM COMPANIES, L.P.

                           By: TEPPCO GP, Inc.
                               Its General Partner

                           By: _________________________________________________
                               Charles H. Leonard
                               Senior Vice President and Chief Financial Officer

                           JONAH GAS GATHERING COMPANY

                           By: TEPPCO GP, Inc.
                               Its Managing General Partner

                           By: _________________________________________________
                               Charles H. Leonard
                               Senior Vice President and Chief Financial Officer

                           VAL VERDE GAS GATHERING COMPANY, L.P.

                           By: TEPPCO NGL Pipelines, LLC,
                               Its General Partner

                           By: _________________________________________________
                               Charles H. Leonard
                               Senior Vice President

                                      A-8<PAGE>
                                                                   EXHIBIT 10.44

                        TEPPCO SUPPLEMENTAL BENEFIT PLAN

                           (AMENDMENT AND RESTATEMENT
                           EFFECTIVE NOVEMBER 1, 2002)

<PAGE>

                        TEPPCO SUPPLEMENTAL BENEFIT PLAN

      WHEREAS, Texas Eastern Products Pipeline Company, LLC, a Delaware limited
liability company ("TEPPCO"), established the TEPPCO Supplemental Benefit Plan
(the "Plan") to provide deferred compensation for a select group of management
or highly compensated employees so as to retain their loyalty and offer a
further incentive to them to contribute to the continued growth, development and
financial success of TEPPCO; and

      WHEREAS, it is intended that the Plan shall constitute a program described
in Department of Labor Regulation section 2520.104-23(a);

      WHEREAS, TEPPCO desires to amend and restate the Plan to provide
additional payment options and to make certain other technical changes;

      NOW, THEREFORE, the Plan is hereby amended and restated in its entirety to
provide as follows:
<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                SECTION
<S>                                                                             <C>
ARTICLE I - DEFINITIONS

         Accrued Benefit ....................................................      1.01
         Actual Retirement Date .............................................      1.02
         Actuarial Equivalent ...............................................      1.03
         Affiliate ..........................................................      1.04
         Beneficiary or Beneficiaries .......................................      1.05
         Board ..............................................................      1.06
         Cause ..............................................................      1.07
         Change of Control ..................................................      1.08
         Code ...............................................................      1.09
         Committee ..........................................................      1.10
         Disability .........................................................      1.11
         Early Retirement Date ..............................................      1.12
         Employer or Employers ..............................................      1.13
         Normal Retirement Age ..............................................      1.14
         Participant ........................................................      1.15
         Partnership ........................................................      1.16
         Plan ...............................................................      1.17
         Qualified Plan .....................................................      1.18
         Qualified Plan Benefit .............................................      1.19
         Separation From Service ............................................      1.20
         Spouse .............................................................      1.21
         TEPPCO .............................................................      1.22
         Unit ...............................................................      1.23
         Unlimited Qualified Plan Benefit ...................................      1.24
         Vesting Service ....................................................      1.25

ARTICLE II - PARTICIPATION

         Eligibility to Participate .........................................      2.01
         Reemployment .......................................................      2.02

ARTICLE III- RETIREMENT BENEFITS

         Amount of Retirement Benefit .......................................      3.01
         Time of Payment of Retirement Benefit ..............................      3.02
         Form of Payment of Retirement Benefit ..............................      3.03

ARTICLE IV- DEATH BENEFITS

         Amount of Death Benefit ............................................      4.01
         Time of Payment of Death Benefit ...................................      4.02
         Form of Payment of Death Benefit ...................................      4.03
</TABLE>

                                       i
<PAGE>

<TABLE>
<S>                                                                               <C>
         Designation of Beneficiary .........................................      4.04

ARTICLE V - VESTING

         General ............................................................      5.01
         Forfeiture Upon Separation From Service ............................      5.02
         Complete Forfeiture for Cause ......................................      5.03
         Accelerated Vesting Upon Change of Control .........................      5.04

ARTICLE VI - PLAN COMMITTEE PROCEDURE

         Committee ..........................................................      6.01
         General Rights, Powers and Duties of the Committee .................      6.02
         Rules and Decisions ................................................      6.03
         Committee Procedures ...............................................      6.04
         Authorization of Benefit Payments ..................................      6.05
         Application and Forms of Benefits ..................................      6.06
         Facility of Payment ................................................      6.07
         Claims Procedure ...................................................      6.08
         Responsibility .....................................................      6.09

ARTICLE VII - AMENDMENT AND TERMINATION

         Right to Amend the Plan ............................................      7.01
         Right to Terminate the Plan ........................................      7.02

ARTICLE VIII - FUNDING

         Payments Under the Plan Are the Obligation of the Employers ........      8.01
         Participants Must Rely Solely on the General Credit of the Employers      8.02
         Unfunded Arrangement ...............................................      8.03

ARTICLE IX - ADOPTION OF PLAN BY OTHER EMPLOYERS

         Adoption Procedure .................................................      9.01
         No Joint Venture Implied ...........................................      9.02
         Expenses to be Shared ..............................................      9.03
         Transfers Among Employers ..........................................      9.04
         Termination of Participation by an Affiliate .......................      9.05

ARTICLE X - MISCELLANEOUS

         Inalienability of Benefits .........................................     10.01
         No Implied Rights ..................................................     10.02
         Binding Effect .....................................................     10.03
         Number and Gender ..................................................     10.04
         Governing Law ......................................................     10.05
</TABLE>

                                       ii
<PAGE>

                                   ARTICLE I

                                   DEFINITIONS

      The terms defined in this Article 1 shall, for all purposes of the Plan,
have the meanings specified herein:

      1.01 "ACCRUED BENEFIT" means in the case of any Participant the result of
(a) minus (b) where (a) is the Participant's Unlimited Qualified Plan Benefit
and (b) is the Participant's Qualified Plan Benefit.

      1.02 "ACTUAL RETIREMENT DATE" means the first day of the month that
coincides with or next follows the date of the Participant's Separation of
Service.

      1.03 "ACTUARIAL EQUIVALENt" means a benefit of equivalent value computed
on the basis of the interest and mortality assumptions that would be used for
purposes of determining the value of the Participant's benefit under the
Qualified Plan if he elected to receive his benefit thereunder in the form of a
lump sum distribution.

      1.04 "AFFILIATE" means an entity that is treated as a single employer
together with TEPPCO for certain employee benefit purposes under section 414 of
the Code.

      1.05 "BENEFICIARY" or "BENEFICIARIES" means the person or persons, or the
trust or trusts created for the benefit of a natural person or persons or the
Participant's estate, designated by the Participant to receive the benefits
payable under the Plan upon his death in accordance with the beneficiary
designation procedures of Section 4.04, or the Participant's Spouse to the
extent that the Participant's Spouse is entitled to receive death benefits under
the Plan.

      1.06 "BOARD" means the Board of Directors of TEPPCO.

      1.07 "CAUSE" means (a) the willful and continued failure by the
Participant to substantially perform his duties with TEPPCO or its Affiliates
(other than such failure resulting from his incapacity due to physical or mental
illness) after demand for substantial performance is delivered to him by TEPPCO
which specifically identifies the manner in which TEPPCO believes the
Participant has not substantially performed his duties; (b) the willful engaging
by the Participant in gross misconduct materially and demonstrably injurious to
the property or business of TEPPCO or any of its Affiliates; or (c) the willful
material violation of any TEPPCO policies regarding the protection of
confidential and/or proprietary information or the material violation of any
non-compete agreement between the Participant and TEPPCO. For purposes of this
definition, no act or failure to act on the Participant's part will be
considered willful unless done, or omitted to be done, by him not in good faith
and without reasonable belief that his action or omission was in the best
interests of TEPPCO or its Affiliates or not opposed to the interests of TEPPCO
or its Affiliates.

                                      -1-
<PAGE>

      1.08 "CHANGE OF CONTROL" means:

      (i)   any person becomes the beneficial owner, directly or in- directly,
            of securities of the Partnership representing 66 percent or more of
            the Partnership's then outstanding Units; or

      (ii)  any person becomes the beneficial owner, directly or indirectly, of
            50 percent or more of the Units and TEPPCO delivers notice of
            withdrawal or is otherwise removed as the general partner of the
            Partnership; or

      (iii) the merger or consolidation of the Partnership with one or more
            corporations, business trusts, common law trusts or unincorporated
            businesses, including, without limitation, a general partnership, a
            limited partnership or a limited liability company, pursuant to a
            written agreement of merger or consolidation in accordance with
            Article 16 of the Third Amended and Restated Agreement of Limited
            Partnership of TEPPCO Partners, L.P., dated September 21, 2001, as
            it may be amended from time to time, and TEPPCO delivers notice of
            withdrawal or is otherwise removed as the general partner of the
            Partnership; or

      (iv)  any person is or becomes the beneficial owner, directly or
            indirectly, of securities of TEPPCO representing more than 50
            percent of the combined voting power of TEPPCO's then outstanding
            voting securities; or

      (v)   all or substantially all of the assets and business of TEPPCO, the
            Partnership, TE Products Pipeline Company, Limited Partnership, a
            Delaware limited partnership, TCTM, L.P., a Delaware limited
            partnership, or TEPPCO Midstream Companies, L.P., a Delaware limited
            partnership, are sold, transferred or assigned to, or otherwise
            acquired by, any person or persons; or

      (vi)  the dissolution or liquidation of the Partnership, TE Products
            Pipeline Company, Limited Partnership, TCTM, L.P., TEPPCO Midstream
            Companies, L.P., or TEPPCO; or

      (vii) the adoption by the Board of a resolution to the effect that any
            person has acquired effective control of the business and affairs of
            TEPPCO, the Partnership or TE Products Pipeline Company, Limited
            Partnership, TEPPCO Midstream Companies, L.P., or TCTM, L.P.

                                      -2-
<PAGE>

      For purposes of this definition, the term "beneficial owner" shall have
      the meaning set forth in Section 13(d) of the Securities Exchange Act of
      1934, as amended, and in the regulations promulgated thereunder. The term
      "person" shall mean an individual, corporation, partnership, trust,
      unincorporated organization, association or other entity provided that the
      term "person" shall not include (a) Duke Energy Corporation ("Duke"), (b)
      any affiliate of Duke, or (c) any employee benefit plan maintained by Duke
      or any affiliate of Duke. For purposes of this definition, the term
      "affiliate" or "affiliates" shall mean when used with respect to a
      specified person or entity, any other person or entity directly or
      indirectly controlled by, controlling, or under direct or indirect common
      control with the specified person or entity. For the purpose of this
      definition, "control" or "controlled" when used with respect to any
      specified person or entity means the power to direct the management and
      policies of that person or entity whether through the ownership of voting
      securities, membership interest or by contract.

      1.09 "CODE" means the Internal Revenue Code of 1986, as amended from time
to time.

      1.10 "COMMITTEE" means the members of the Compensation Committee of the
Board.

      1.11 "DISABILITY" means a medically determinable mental or physical
impairment which shall prevent the Participant from engaging in any substantial
gainful activity and which can be expected to result in death or which has
lasted or can be expected to last for a continuous period of not less than
twelve months and which (a) was not contracted, suffered or incurred while the
Participant was engaged in, or did not result from having engaged in, a
felonious criminal enterprise; (b) did not result from addiction to narcotics;
and (c) did not result from an intentionally self-inflicted injury.

      1.12 "EARLY RETIREMENT DATE" means the first day of the month that
coincides with or next follows a Participant's attainment of age 55.

      1.13 "EMPLOYER" or "EMPLOYERS" means TEPPCO and any other Affiliates that
adopt the Plan.

      1.14 "NORMAL RETIREMENT AGE" means age 65.

      1.15 "PARTICIPANT" means a common law employee of an Employer who is
selected by the Committee to participate in the Plan, and who meets the
requirements of Article II.

      1.16 "PARTNERSHIP" means TEPPCO Partners, L.P., a Delaware limited
partnership.

      1.17 "PLAN" means the TEPPCO Supplemental Benefit Plan.

      1.18 "QUALIFIED PLAN" means the TEPPCO Retirement Cash Balance Plan
maintained by TEPPCO.

      1.19 "QUALIFIED PLAN BENEFIT" means the aggregate of all benefits which
would be payable to a Participant from the Qualified Plan on the later of his
Early Retirement Date or his Actual Retirement Date. In calculating the amount
of the Qualified Plan Benefit, for the purposes of the Plan the following shall
apply:

                                      -3-
<PAGE>

            (a) If the normal form of benefit of the Qualified Plan is other
than a straight life annuity, the benefit shall be expressed in the form of a
straight life annuity by using the actuarial assumptions contained in the
Qualified Plan.

            (b) The amount of a Participant's Qualified Plan Benefit shall be
determined based on the provisions of the Qualified Plan as in effect on the
date his benefits under the Plan are determined.

            (c) The amount of a Participant's Qualified Plan Benefit shall be
determined by disregarding any offset for benefits payable under a retirement
plan that was previously maintained by TEPPCO or one of its Affiliates.

      1.20 "SEPARATION FROM SERVICE" means the termination of the employment
relationship between the Participant and TEPPCO and all Affiliates.

      1.21 "SPOUSE" means the person to whom the Participant is married under
local law.

      1.22 "TEPPCO" means Texas Eastern Products Pipeline Company, LLC, a
Delaware limited liability company.

      1.23 "UNIT" means a limited partnership unit in the Partnership.

      1.24 "UNLIMITED QUALIFIED PLAN BENEFIT" means the Qualified Plan Benefit
which would be payable to a Participant from the Qualified Plan on the later of
his Early Retirement Date or his Actual Retirement Date, calculated by (a)
disregarding the limitations set forth in sections 401(a)(17) and 415 of the
Code and (b) assuming that the Participant had not elected to defer any of his
compensation under the Duke Energy Field Services Executive Deferred
Compensation Plan or any other deferred compensation program maintained by
TEPPCO or an Affiliate.

      1.25 "VESTING SERVICE" means service for which the Participant receives
credit for vesting purposes under the Qualified Plan.

                                   ARTICLE II

                                  PARTICIPATION

      2.01 ELIGIBILITY TO PARTICIPATE. The individuals who shall be eligible to
participate in the Plan shall be those individuals who are members of a select
group of management or highly compensated employees of an Employer as the
Committee shall determine from time to time. An individual will become a
Participant when he is notified by the Committee that he is eligible to
participate in the Plan. Once an individual has become a Participant, he will
continue to participate in the Plan until he is no longer a common law employee
of any Employer or the Committee determines that he is no longer in a select
group of management or a highly compensated employee of any Employer.

      2.02 REEMPLOYMENT. Any person who incurs a Separation From Service shall
not be eligible to participate in the Plan upon his reemployment by an Employer
unless the Committee

                                      -4-
<PAGE>

so determines. In such event, the Committee shall specify whether and under what
conditions the person shall receive credit for all or any of his service
completed prior to reemployment.

                                  ARTICLE III

                               RETIREMENT BENEFITS

      3.01 AMOUNT OF RETIREMENT BENEFIT. Upon a Participant's Separation From
Service after he has earned a nonforfeitable interest in his Plan benefit under
Article V, the Participant shall be entitled to receive a retirement benefit
that is the Actuarial Equivalent of his Accrued Benefit payable at the time
payment of such benefit is to commence pursuant to Section 3.02 and in the form
specified in Section 3.03.

      3.02 TIME OF PAYMENT OF RETIREMENT BENEFIT. A Participant's retirement
benefit under the Plan, if any, shall be paid or commence to be paid as soon as
administratively feasible after the later of (a) the Participant's Actual
Retirement Date or (b) the Participant's Early Retirement Date.

      3.03 FORM OF PAYMENT OF RETIREMENT BENEFIT. A Participant's retirement
benefit under the Plan, if any, shall be paid in one of the following forms as
elected by the Participant pursuant to this Section 3.03:

            (a) A single lump sum payment in cash; or

            (b) 3, 10 or 15 (as elected by the Participant pursuant to this
            Section 3.03) annual installment payments.

            The amount of each installment payment shall be determined by
            dividing the Actuarial Equivalent of the Participant's Accrued
            Benefit on the date the Participant's benefit commences to be paid
            pursuant to Section 3.02 by the number of annual installments
            elected by the Participant pursuant to this Section 3.03(b). The
            Committee may satisfy the Plan's obligation to pay any retirement
            benefit hereunder in the form of installment payments by purchasing
            a commercial annuity contract and distributing such contract to the
            Participant or Beneficiary. Thereupon, the Plan shall have no
            further liability with respect to the amount used to purchase the
            annuity contract and such Participant or Beneficiary shall look
            solely to the company issuing such contract for such annuity
            payments. All certificates for commercial annuity benefits shall be
            nontransferable, except for surrender to the issuing company, and no
            benefit thereunder may be sold, assigned, discounted, or pledged
            (other than as collateral for a loan from the company issuing same).

      A Participant shall elect the form of benefit payment, as provided in this
Section 3.03, for his Accrued Benefit in an initial written election in the form
required by the Committee, signed by the Participant and filed with the
Committee. Such initial written election shall be filed with

                                      -5-
<PAGE>

the Committee (a) by February 1, 2003, and no later than 18 months before the
date the Participant's retirement benefit under the Plan is to be paid or
commence to be paid pursuant to Section 3.02, in the case of individuals who are
Participants on November 1, 2002 and (b) within thirty (30) days of the date an
individual is notified by the Committee that he is eligible to participate in
the Plan in the case of individuals who become Participants after November 1,
2002.

      A Participant may make one irrevocable election to change the form of
benefit payment he or she initially selects in accordance with procedures
established by the Committee. Any such change election must be made no later
than 18 months before the date the Participant's retirement benefit under the
Plan is to be paid or commence to be paid pursuant to Section 3.02. For purposes
of calculating the 18-month period with respect to the initial election in the
case of individuals who are Participants on November 1, 2002 and the irrevocable
change election, such period will commence on the first day of the month
immediately following the month in which the election is made.

      In the event a valid written election is not on file with the Committee at
the time the Participant's retirement benefit is to be paid or commence to be
paid pursuant to Section 3.02, the Participant shall be deemed to have elected a
single lump sum payment in cash.

                                   ARTICLE IV

                                 DEATH BENEFITS

      4.01 AMOUNT OF DEATH BENEFIT.

      (a) Participant Who Has A Vested Interest in His Plan Benefit.

      If a Participant dies after he has earned a nonforfeitable interest in his
Plan benefit under Article V, and before he has been paid his entire Plan
benefit, the Participant's Beneficiary shall be entitled to receive a death
benefit that is the Actuarial Equivalent of the Participant's Accrued Benefit
payable at the time in the form elected by the Participant pursuant to Sections
4.02 and 4.03.

      (b) Any Other Participant.

      If a Participant incurs his Separation From Service before he has earned a
nonforfeitable interest in his Plan benefit, or if the Participant has been paid
his retirement benefit under the Plan, there shall be no death benefit payable
with respect to the Participant.

      4.02 TIME OF PAYMENT OF DEATH BENEFIT. A Participant's death benefit under
the Plan, if any, shall be paid or commence to be paid to the Participant's
Beneficiary as soon as administratively feasible after the date on which the
Participant dies.

      4.03 FORM OF PAYMENT OF DEATH BENEFIT. The death benefit, if any, payable
to a Beneficiary under the Plan shall be paid in the form elected by the
Participant pursuant to Section 3.03.

                                      -6-
<PAGE>

      4.04 DESIGNATION OF BENEFICIARY. Each Participant who does not have a
Spouse has the right to designate and to revoke the designation of his
Beneficiary. Each designation or revocation must be evidenced by a written
document in the form required by the Committee, signed by the Participant and
filed with the Committee. If no designation is on file and the Participant is
not considered to be married under applicable local law at the time of his
death, the Participant's Beneficiary shall be the executor, administrator or
other personal representative of the Participant's estate. If a Participant is
considered to be married under applicable local law at the time of his death,
his Spouse shall be his Beneficiary, and his designation of any other
Beneficiary shall not be valid.

                                    ARTICLE V

                                     VESTING

      5.01 GENERAL. Subject to Sections 5.03 and 5.04, a Participant has a
nonforfeitable interest in his benefit under the Plan when he (a) completes five
full years of Vesting Service, (b) attains his Normal Retirement Age on or prior
to the date of his Separation From Service, (c) incurs a Disability prior to his
Separation From Service, or (d) incurs a Separation From Service due to death.
Prior to the occurrence of any of the foregoing four events, a Participant has
no vested interest in his Plan benefit and neither he nor his Spouse or
Beneficiary shall be entitled to any payment under the Plan upon or following
the Participant's Separation From Service.

      5.02 FORFEITURE UPON SEPARATION FROM SERVICE. If a Participant incurs a
Separation From Service at a time when he does not have a nonforfeitable
interest in his Plan benefit, his Plan benefit shall be immediately forfeited.

      5.03 COMPLETE FORFEITURE FOR CAUSE. Notwithstanding Section 5.01 of the
Plan, if the Committee finds by a majority vote after full consideration of the
facts that a Participant was discharged from the employ of TEPPCO or an
Affiliate for Cause, the Participant shall immediately forfeit his Plan benefit
to the extent he has not yet been paid his Plan benefit. The decision of the
Committee as to the cause of the Participant's discharge shall be final. No
decision of the Committee shall affect the finality of the discharge of the
Participant.

      5.04 ACCELERATED VESTING UPON CHANGE OF CONTROL. Notwithstanding any other
provisions of the Plan, if a Change of Control occurs prior to a Participant's
Separation From Service, such Participant shall have a fully nonforfeitable
interest in his Plan benefit.

                                   ARTICLE VI

                            PLAN COMMITTEE PROCEDURE

      6.01 COMMITTEE. The Plan shall be administered by the Committee.

      6.02 GENERAL RIGHTS, POWERS AND DUTIES OF THE COMMITTEE. The Committee
shall be responsible for the management, operation and administration of the
Plan. In addition to any powers, rights and duties set forth elsewhere in the
Plan, it shall have the following powers and duties:

                                      -7-
<PAGE>

            (a) to adopt such rules and regulations consistent with the
provisions of the Plan as it deems necessary for the proper and efficient
administration of the Plan;

            (b) to enforce the Plan in accordance with its terms and any rules
and regulations it establishes;

            (c) to maintain records concerning the Plan sufficient to prepare
reports, returns and other information required by the Plan or by law;

            (d) to construe and interpret the Plan and to resolve all questions
arising under the Plan;

            (e) to direct the Employers to pay benefits under the Plan, and to
give such other directions and instructions as may be necessary for the proper
administration of the Plan;

            (f) to employ or retain agents, attorneys, actuaries, accountants or
other persons, who may also be employed by or represent TEPPCO, and

            (g) to be responsible for the preparation, filing and disclosure on
behalf of the Plan of such documents and reports as are required by any
applicable federal or state law.

      The Committee shall have no power to add to, subtract from or modify any
      of the terms of the Plan, or to change or add to any benefits provided by
      the Plan, or to waive or fail to apply any requirements of eligibility for
      benefits under the Plan.

      6.03 RULES AND DECISIONS. The Committee may adopt such rules and actuarial
tables as it deems necessary, desirable or appropriate. All rules and decisions
of the Committee shall be uniformly and consistently applied to all Participants
in similar circumstances. When making a determination or calculation, the
Committee shall be entitled to rely upon information furnished to it by a
Participant, or Beneficiary, an Employer, or an Employer's actuary or
accountant.

      6.04 COMMITTEE PROCEDURES. The Committee may act at a meeting or in
writing without a meeting. The Committee shall elect one of its members as
chairman and appoint a secretary, who may or may not be a Committee member. The
Secretary shall keep a record of all meetings and forward all necessary
communications to the Employers. The Committee may adopt such bylaws and
regulations as it deems desirable for the conduct of its affairs. All decisions
of the Committee shall be made by the vote of the majority, including actions in
writing taken without a meeting. A dissenting Committee member who, within a
reasonable time after he has knowledge of any action or failure to act by the
majority, registers his dissent in writing delivered to the other Committee
members and TEPPCO, shall not, to the extent permitted by law, be responsible
for any such action or failure to act.

      6.05 AUTHORIZATION OF BENEFIT PAYMENTS. The Committee shall issue
directions to the Employers concerning all benefits which are to be paid by them
pursuant to the provisions of the Plan. The Employers shall furnish the
Committee such data and information as it may require. The records of the
Employers shall be determinative of each Participant's period of employment,
termination of employment and the reason therefor, leave of absence,
reemployment, and years

                                      -8-
<PAGE>

of Service. Participants and their beneficiaries shall furnish to the Committee
such evidence, data, or information, and execute such documents, as the
Committee requests.

      6.06 APPLICATION AND FORMS OF BENEFITS. The Committee may require a
Participant or former Participant to complete and file with the Committee an
application for retirement benefits and all other forms approved by the
Committee, and to furnish all pertinent information requested by the Committee.
The Committee may rely upon all such information so furnished it, including the
Participant's or former Participant's current mailing address.

      6.07 FACILITY OF PAYMENT. Whenever, in the Committee's opinion, a person
entitled to receive any payment of a benefit or installment thereof hereunder is
under a legal disability or is incapacitated in any way so as to be unable to
manage his financial affairs, the Committee may direct the Employer to make
payments to such person or to his legal representative or to a relative or
friend of such person for his benefit, or the Committee may direct the Employer
to apply the payment for the benefit of such person in such manner as the
Committee considers advisable. Any payment of a benefit or installment thereof
in accordance with the provisions of this Section shall be a complete discharge
of any liabilities for the making of such payment under the provisions of the
Plan.

      6.08 CLAIMS PROCEDURE. The Committee shall make all determinations as to
the right of any person to receive benefits under the Plan. Any denial by the
Committee of a claim for benefits under the Plan by a Participant or his Spouse
or Beneficiary (collectively referred to herein as "Claimant") shall be stated
in writing by the Committee and delivered or mailed to the Claimant on the 90th
day after receipt of the claim, unless special circumstances require an
extension of time for processing the claim. If such an extension of time is
required, written notice of the extension shall be furnished to the Claimant on
the 90th day after receipt of the claim and the claim shall thereafter be paid
on the 180th day after the date of receipt of the initial claim. Such notice
shall set forth the specific reasons for the denial, specific reference to
pertinent provisions of the Plan upon which the denial is based, a description
of any additional material or information necessary for the Claimant to perfect
his claim with an explanation of why such material or information is necessary,
and an explanation of claim review procedures under the Plan written to the best
of the Committee's ability in a manner that may be understood without legal or
actuarial counsel. A Claimant whose claim for benefits has been wholly or
partially denied by the Committee may, within 90 days following the date of such
denial, request a review of such denial in a writing addressed to the Committee.
The Claimant shall be entitled to submit such issues or comments, in writing or
otherwise, as he shall consider relevant to a determination of his claim, and
may include in his request a request for a hearing in person before the
Committee. Prior to submitting his request, the Claimant shall be entitled to
review such documents as the Committee shall agree are pertinent to his claim.
The Claimant may, at all stages of review, be represented by counsel, legal or
otherwise, of his choice, provided that the fees and expenses of such counsel
shall be borne by the Claimant. All requests for review shall be promptly
resolved. The Committee's decisions with respect to any such review shall be set
forth in writing and shall be mailed to the Claimant on the 60th day following
receipt by the Committee of the Claimant's request unless special circumstances,
such as the need to hold a hearing, require an extension of time for processing,
in which case the Committee's decision shall be so mailed on the 120th day after
receipt of such request.

                                      -9-
<PAGE>

      6.09 RESPONSIBILITY. No member of the Committee or of the Board shall be
liable to any person for any action taken or omitted in connection with the
administration of the Plan unless attributable to his own fraud or willful
misconduct; nor shall an Employer be liable to any person for any such action
unless attributable to fraud or willful misconduct on the part of a director,
officer or employee of such Employer.

                                      -10-
<PAGE>

                                   ARTICLE VII

                            AMENDMENT AND TERMINATION

      7.01 RIGHT TO AMEND THE PLAN. TEPPCO has the sole right to amend the Plan.
An amendment must be (1) in writing, (2) executed by an authorized officer of
TEPPCO, and (3) authorized by resolutions of the Board. Notice of any such
amendment shall be given in writing to the Committee and to each Participant,
former Participant, and Beneficiary of a deceased former Participant. No such
amendment, however, shall have the effect of reducing that portion of the
benefit the Participant or former Participant ultimately becomes entitled to
below that amount he would have received for service to the date of the
amendment under the formula set out in the Plan prior to the amendment.

      7.02 RIGHT TO TERMINATE THE PLAN. The Board reserves the right to
terminate the accrual or vesting of additional benefits under the Plan by any or
all Participants at any time by written notice to the Committee. The Committee
shall notify any Participant affected by such termination of such action and its
effective date. A Participant whose accrual of additional benefits is terminated
shall not lose any previously earned and vested benefits, and any such vested
benefits shall be payable at the time and in the manner provided in Articles III
and IV.

                                  ARTICLE VIII

                                     FUNDING

      8.01 PAYMENTS UNDER THE PLAN ARE THE OBLIGATION OF THE EMPLOYERS. Benefits
due under the Plan will be paid by the Employers.

      8.02 PARTICIPANTS MUST RELY SOLELY ON THE GENERAL CREDIT OF THE EMPLOYERS.
The Plan is only a general corporate commitment of the Employers and each
Participant must rely solely upon the general credit of his Employer for the
fulfillment of its obligations hereunder. Under all circumstances the rights of
the Participant to any asset held by the Employers will be no greater than the
rights expressed in the Plan. Nothing contained in the Plan will constitute a
guarantee by the Employers that the assets of the Employers will be sufficient
to pay any benefits under the Plan or would place the Participant in a secured
position ahead of general creditors of the Employers; the Participants are only
unsecured creditors of the Employers with respect to their Plan benefits and the
Plan constitutes a mere promise by the Employers to make benefit payments in the
future. No specific assets of the Employers have been or will be set aside, or
will be pledged in any way for the performance of the Employers' obligations
under the Plan which would remove such assets from being subject to the general
creditors of the Employers.

      8.03 UNFUNDED ARRANGEMENT. It is intended that the Plan shall be unfunded
for tax purposes and for purposes of Title of the Employee Retirement Income
Security Act of 1974, as amended.

                                      -11-
<PAGE>

                                   ARTICLE IX

                       ADOPTION OF PLAN BY OTHER EMPLOYERS

      9.01 ADOPTION PROCEDURE. Any Affiliate may, with the approval of the
Board, adopt the Plan by a certified resolution or consent of the board of
directors of the adopting Affiliate or an executed adoption instrument (approved
by the board of directors of the adopting Affiliate) agreeing to be bound as an
Employer by all the terms, conditions and limitations of the instrument and by
furnishing all information required by the Committee. The terms of the Plan will
apply separately to each Affiliate that adopts the Plan except that the powers
of the Board and the Committee under the Plan shall be exercised solely by the
Board and the Committee. TEPPCO and each Affiliate that adopts the Plan shall
bear the cost of providing Plan benefits for its own Participants. The
obligation of each Employer with respect to its Participants shall be the sole
obligation of the Employer that is employing the Participant and shall not bind
any other Employer.

      9.02 NO JOINT VENTURE IMPLIED. The adoption of the Plan by an Employer
shall not create a joint venture or partnership relation between it and any
other Employer. Any rights, duties, liabilities, and obligations assumed by an
Employer, imposed upon it or resulting from the terms of the Plan, shall relate
to that Employer alone.

      9.03 EXPENSES TO BE SHARED. Each Employer shall pay a proportionate part
of the cost of actuarial and other necessary expenses incurred in its
administration.

      9.04 TRANSFERS AMONG EMPLOYERS. If a Participant is employed by more than
one Employer during the term of his participation in the Plan, the costs of
providing Plan benefits for such Participant shall be apportioned among the
Employers as determined by the Committee based upon the years of service for
benefit accrual purposes under the Qualified Plan performed by the Participant
for each Employer and the compensation taken into account under the Plan paid to
such Participant by each Employer.

      9.05 TERMINATION OF PARTICIPATION BY AN AFFILIATE. Any Affiliate that
adopts the Plan may, by appropriate action of its board of directors, terminate
its participation in the Plan. The Committee may, in its discretion, also
terminate an Affiliate's participation in the Plan at any time. The termination
of the participation in the Plan by an Affiliate shall not, however, affect the
rights of any Participant who is working or has worked for the Affiliate as to
his amounts accrued under the Plan prior to the termination of participation.

                                   ARTICLE X

                                  MISCELLANEOUS

      10.01 INALIENABILITY OF BENEFITS. The right of any Participant, former
Participant or beneficiary to any benefit or payment under the Plan shall not be
subject to voluntary or involuntary transfer, alienation, pledge, assignment,
garnishment, sequestration or other legal or equitable process. Any attempt to
transfer, alienate, pledge, assign or otherwise dispose of such

                                      -12-
<PAGE>

right or any attempt to subject such right to attachment, execution,
garnishment, sequestration or other legal or equitable process shall be null and
void.

      10.02 NO IMPLIED RIGHTS. Neither the establishment of the Plan nor any
modification thereof shall be construed as giving any Participant, former
Participant, beneficiary or other person any legal or equitable right unless
such right shall be specifically provided for in the Plan or conferred by
affirmative action of TEPPCO in accordance with the terms and provisions of the
Plan.

      10.03 BINDING EFFECT. The provisions of the Plan shall be binding on the
Employers, the Committee, and all persons entitled to benefits under the Plan,
together with their respective heirs, legal representatives and successors in
interest.

      10.04 NUMBER AND GENDER. Wherever appropriate, the singular shall include
the plural, the plural shall include the singular, and the masculine shall
include the feminine or neuter.

      10.05 GOVERNING LAW. The Plan shall be construed and administered
according to the laws of the State of Texas.

                                      -13-
<PAGE>

      IN WITNESS WHEREOF, effective November 1, 2002, TEPPCO has adopted the
Plan as amended and restated herein on the 6th day of March, 2003.

                                  TEXAS EASTERN PRODUCTS PIPELINE
                                  COMPANY, LLC

                                  By:   /s/  BARRY R. PEARL
                                       ----------------------------------------
                                  Title:  President and Chief Executive Officer

                                      -14-

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