Document:

exv10w8

 

Exhibit 10.8

EXECUTIVE EMPLOYMENT AGREEMENT

     This EXECUTIVE EMPLOYMENT AGREEMENT (“Agreement”) is made and entered into as of this 28th day
of June, 2007, by and between Bank of Birmingham, a Michigan state bank (“Bank”), and Lance N.
Krajacic, Jr., an individual resident of the State of Michigan (“Executive”).

     WHEREAS, the Bank and the Executive are parties to an employment agreement dated March 10,
2005 (the “Prior Agreement”) providing for the Executive to be employed as Executive Vice President
and Chief Lending Officer of the Bank, and Executive desires to accept employment, subject to and
on the terms and conditions set forth in this Agreement; and

     WHEREAS, the Bank and the Executive wish to clarify certain rights the Executive has upon the
change of control of the Bank’s parent corporation, Birmingham Bloomfield Bancshares, Inc. (the
“Holding Company”) and to amend and restate the Prior Agreement in order to do so; and

     WHEREAS, both the Bank and the Executive have read and understood the terms and provisions set
forth in this Agreement and have been afforded a reasonable opportunity to review this Agreement
with their respective legal counsel.

     NOW, THEREFORE, in consideration of the mutual promises and covenants set forth in this
Agreement, the Executive and the Bank agree as follows:

A. DURATION

     1. This Agreement shall become effective (the “Effective Date”) upon the date that the Bank
opens for business shall continue in full force and effect, subject to Paragraph 2 below, until the
third anniversary date of the Effective Date, unless earlier terminated as provided herein.

     2. The Bank and the Executive acknowledge and agree that the parties may agree to continue the
employment relationship upon such terms as they may mutually agree. Following the initial three
year term of this Agreement, the Agreement shall automatically renew annually for a term of one
year, unless either party elects to terminate this Agreement by sending written notice of
non-renewal at least thirty (30) calendar days prior to the expiration of the then current term.
If this Agreement expires as a result of non-renewal, the employment of the Executive shall
automatically terminate upon the expiration of the then current term.

B. COMPENSATION

     3. All payments of salary and other compensation to the Executive shall be payable in
accordance with the Bank’s ordinary payroll and other policies and procedures.

     a. During the term of this Agreement, the Bank agrees to pay Executive a base salary of
not less than $125,000 annually, appropriately prorated for partial months at the
commencement and end of the term of this Agreement.

     b. The Bank shall have the right to deduct from any payment of compensation to
Executive hereunder any federal, state or local taxes required by law to be withheld with
respect to such payments and any other amounts specifically authorized to be withheld or
deducted by Executive.

 

 

     c. During the term of this Agreement, it is anticipated that the Board of Directors or
a delegated committee thereof will adopt an executive incentive bonus plan based upon the
asset growth and profitability of the Bank. The Executive will be entitled to participate
in such plan. Executive shall also be entitled to participate in any benefit programs
applicable to all employees of the Bank or to executive employees of the Bank in accordance
with Bank policy and the provisions of said benefit programs.

     d. Executive shall receive options to purchase shares of common stock of the Holding
Company at an exercise price of $10.00 per share, the number of options to be equal to
25,000. The options shall have a term of ten years from the date of issuance, which shall
be the Effective Date, and to the extent permitted by law, shall be treated as incentive
stock options. The options shall be evidenced by a stock option agreement, which shall have
such terms as are consistent with those set forth above and such additional terms, including
with respect to vesting, as may be set forth in the stock option agreement or the stock
option plan pursuant to which the options are granted.

     4. The Bank shall provide the Executive with a cellular phone and laptop computer for use in
the performance of his duties and obligations under this Agreement. The Bank shall also reimburse
the Executive for all reasonable expenses, including, but not limited to, travel expenses, lodging
expenses, and meals and entertainment expenses, that the Executive may incur in the performance of
his duties and obligations under this Agreement; provided, however, that the Executive shall be
required to submit receipts or other acceptable documentation to the cashier of the Bank or such
other officer designated by the Board to verify such expenses prior to any reimbursements. In
addition to the reimbursement of expenses listed in this Paragraph, the Bank shall pay, or
reimburse Executive, for reasonable initiation fees for trade association memberships deemed to be
acceptable and appropriate by the Board of Directors.

     5. Subject to the provisions of Paragraph 9 of this Agreement, the Executive shall be entitled
to receive employee and dependent health insurance, dental insurance, paid sick leave and four (4)
weeks of paid vacation per year, and any additional benefits provided to all Bank employees all in
accordance with the Bank’s employment policies.

     6. The Bank shall also provide the Executive with a salary continuation plan, with such terms
as are approved by Executive and the Board of Directors of the Bank.

     7. The Bank shall also provide the Executive with term life insurance coverage in an initial
amount not to exceed 200% of Executive’s base salary, and having a term not less than ten years.
If, during the term of this Agreement, the Bank adopts a plan providing life insurance benefits to
other Bank employees and the maximum coverage under such plan exceeds the maximum permissible
coverage provided by this Paragraph, then notwithstanding the provisions of this Paragraph,
Executive shall be entitled to participate in the Bank’s life insurance benefit plan to the full
extent that it is available to other Bank employees.

     8. The Board of Directors or a delegated committee shall review the amount of Executive’s
compensation, including his base salary, not less than annually and shall increase such base salary
as a result of such review and to provide reasonable cost of living adjustments, all in the
discretion of the Board of Directors or such committee and consistent with safe and sound banking
practices; provided however that Executive’s base salary, bonuses, vacation and car allowance shall
not be less than the amounts set forth in Paragraphs 3, 4, and 5 at any time during the term of
this Agreement.

 

 

     9. All employee benefits provided to the Executive by the Bank incident to the Executive’s
employment shall be governed by the applicable plan documents, summary plan descriptions or
employment policies, and may be modified, suspended or revoked at any time, in accordance with the
terms and provisions of the applicable documents.

     10. The parties hereto acknowledge that the compensation set forth herein and the other
covenants and agreements of the Bank contained herein are fair and adequate compensation for
Executive’s services and for the covenants of Executive as set forth herein.

C. RESPONSIBILITIES

     11. The Executive shall be employed as Executive Vice President and Chief Lending Officer of
the Bank and shall faithfully devote his best efforts and his primary focus to his positions with
the Bank.

     12. The Executive acknowledges and agrees that the duties and responsibilities of the
Executive required by his position as Executive Vice President and Chief Lending Officer of the
Bank are wholly within the discretion of its Board of Directors, and may be modified, or new duties
and responsibilities imposed by the Board of Directors, at any time, without the approval or
consent of the Executive. However, these new duties and responsibilities may not constitute
immoral or unlawful acts. In addition, the new duties and responsibilities must be consistent with
the Executive’s role as Executive Vice President and Chief Lending Officer of a financial
institution.

     13. The Executive acknowledges and agrees that, during the term of this Agreement, he has a
fiduciary duty of loyalty to the Bank, and that he will not engage in any activity during the term
of this Agreement, which will or could, in any significant way, harm the business, business
interests, or reputation of the Bank or the reputation of the Board of Directors.

     14. The Executive shall not directly or indirectly engage in competition with the Bank at any
time during the existence of the employment relationship between the Bank and the Executive, and
the Executive will not on his own behalf, or as another’s agent or employee, engage in any of the
same or similar duties and/or Bank-related responsibilities required by the Executive’s position
with the Bank, other than as an employee of the Bank pursuant to this Agreement or as specifically
approved by the Board of Directors. In addition, without the prior written consent of the Board of
Directors, Executive shall not usurp for himself any corporate opportunity available to the Bank.

D. NONINTERFERENCE

     15. Executive acknowledges that, as part of his employment with the Bank, he will become
familiar with the salary, pay scale, capabilities, experiences, skill and desires of the Bank’s
employees. Executive agrees to maintain the confidentiality of such information. Executive
further covenants and agrees that, for a period of one year subsequent to the termination of this
Agreement, whether such termination occurs at the insistence of the Bank or the Executive, the
Executive shall not recruit, hire, or attempt to recruit or hire, directly or by assisting others,
any other employees of the Bank, nor shall the Executive contact or communicate with any other
employees of the Bank for the purpose of inducing other employees to terminate their employment
with the Bank. For purposes of this covenant, “other employees” shall refer to employees who are
still actively employed by or were employed by the Bank within the prior year, or doing business
with, the Bank at the time of the attempted recruiting or hiring.

     16. In his position of employment, the Executive will be exposed to confidential information
and trade secrets (hereafter “Proprietary Information”) pertaining to, or arising from, the
business of the

 

 

Bank and its affiliates (if any). The Executive hereby agrees and acknowledges that such
Proprietary Information is unique and valuable to the Bank’s business and that the Bank would
suffer irreparable injury if this information were publicly disclosed. Therefore, the Executive
agrees to keep in strict secrecy and confidence, both during and after the period of his
employment, any and all Proprietary Information which the Executive acquires, or to which the
Executive has access, during employment by the Bank, that has not been publicly disclosed by the
Bank. The Proprietary Information covered by this Agreement shall include, but shall not be
limited to: (i) the identities of the Bank’s existing and prospective customers or clients,
including names, addresses, credit status, and pricing levels; (ii) the buying and selling habits
and customs of the Bank’s existing and prospective customers or clients; (iii) financial
information about the Bank; (iv) product and systems specifications, concepts for new or improved
products and other product or systems data; (v) the identities of, and special skills possessed by,
the Bank’s employees; (vi) the identities of and pricing information about the Bank’s suppliers and
vendors; (vii) training programs developed by the Bank; (viii) pricing studies, information and
analyses; (ix) current and prospective products and inventories; (x) financial models, business
projections and market studies; (xi) the Bank’s financial results and business conditions; (xii)
business plans and strategies; (xiii) special processes, procedures, and services of the Bank and
its suppliers and vendors; and (xiv) computer programs and software developed by the Bank or its
consultants. The provisions and agreements entered into herein shall survive the term of the
Employee’s employment to the extent reasonably necessary to accomplish their purpose in protecting
the interests of the Bank in any Proprietary Information disclosed to, or learned by, the Executive
while employed.

     17. The Executive expressly represents that he has no agreements with, or obligations to, any
party which conflict, or may conflict, with the interests of the Bank or with the Executive’s
duties as an employee of the Bank.

     18. Executive acknowledges that the special relationship of trust and confidence between him,
the Bank, and its clients and customers creates a high risk and opportunity for Executive to
misappropriate the relationship and goodwill existing between the Bank and its clients and
customers. Executive further acknowledges and agrees that it is fair and reasonable for the Bank
to take steps to protect itself from the risk of such misappropriation. Executive further
acknowledges that, at the outset of his employment with the Bank and throughout his employment with
the Bank, Executive will be provided with access to and informed of Proprietary Information, which
will enable him to benefit from the Bank’s goodwill and know-how. Executive covenants and agrees
that, for a period of one year subsequent to the termination of this Agreement, whether such
termination occurs at the insistence of the Bank or the Executive, the Executive shall not attempt
to solicit, directly or by assisting others, any of the customers or clients of the Bank, nor shall
the Executive contact or communicate with any of the customers or clients of the Bank for the
purpose of attracting their business or to offer any product or service which would be in
competition or that conflicts with the Bank’s business or the business of any of its affiliates.

     19. Executive acknowledges that it would be inevitable in the performance of his duties as a
director, officer, employee, investor, agent or consultant of any person, association, entity, or
company which competes with the Bank, or which intends to or may compete with the Bank, to disclose
and/or use Proprietary Information, as well as to misappropriate the Bank’s goodwill and know-how,
to or for the benefit of such other person, association, entity, or company. Executive also
acknowledges that, in exchange for the execution of the non-solicitation restriction set forth in
these NONINTERFERENCE provisions, he has received substantial, valuable consideration, including:
(i) confidential trade secret and proprietary information relating to the identity and special
needs of the Bank’s current and prospective customers, the Bank’s current and prospective services,
the Bank’s business projections and market studies, the Bank’s business plans and strategies, the
Bank’s studies and information concerning special services unique to the Bank; (ii) employment; and
(iii) compensation and benefits as described in this

 

 

Agreement. Executive further acknowledges and agrees that this consideration constitutes fair
and adequate consideration for the execution of the non-solicitation restriction set forth herein.

     20. In consideration for the above-recited valuable consideration, as well as to protect the
vital interests described in these NONINTERFERENCE provisions, the Executive understands and agrees
that during the continuation of this Agreement and for a period of one year following the
termination of this Agreement by either party, for any reason (other than for termination of
Executive for circumstances described in Paragraph 25(e), below), the Executive will not be or
become engaged in any way (directly or indirectly), as an individual proprietor, beneficiary,
trustee, owner, partner, stockholder, officer, director, executive, investor, lender, sales
representative, or in any other capacity, whatsoever, in any activity or endeavor of any entity
headquartered within the Michigan cities/towns of Bloomfield, Bloomfield Hills, Beverly Hills,
Birmingham, Franklin, or Bingham Farms, which competes or conflicts with the Bank’s business or the
business of any of its affiliates (if any), as such business has been conducted during the years of
the Executive’s employment with the Bank. It is the parties’ desire that these restrictions be
enforced to the fullest extent allowed by law.

     21. Executive agrees that the restriction set forth above is ancillary to an otherwise
enforceable agreement, is supported by independent valuable consideration, and that the limitations
as to time, geographical area, and scope of activity to be restrained by Paragraph 20 are
reasonable and acceptable, and do not impose any greater restraint than is reasonably necessary to
protect the goodwill and other business interests of the Bank. This Section creates a narrowly
tailored advance approval requirement in order to avoid unfair competition and irreparable harm to
the Bank and is not intended or to be construed as a general restraint from engaging in a lawful
profession or a general covenant against competition. Nothing herein will prohibit (i) beneficial
ownership of less than 5% of the publicly traded capital stock of a corporation listed on a
national securities exchange so long as this is not a controlling interest, or (ii) ownership of
mutual fund investments. Executive agrees that if, at some later date, a court of competent
jurisdiction determines that the non-solicitation agreement set forth in this Section does not meet
the criteria set forth by applicable law, this Section may be reformed by the court and enforced to
the maximum extent permitted under applicable law. Executive understands that his obligations
under this Section shall not be assignable by him.

     22. Executive acknowledges that the covenants set forth in these NONINTERFERENCE provisions
are material conditions to the Bank’s willingness to execute and deliver this Agreement and to
provide Executive the compensation and benefits and other consideration provided hereunder. The
parties agree that the existence of any claim or cause of action of Executive against the Bank,
whether predicated on this Agreement or otherwise, will not constitute a defense to the enforcement
by the Bank of such covenants. It is specifically acknowledged that the periods following the
termination of employment stated in Paragraphs 15 and 20, during which the agreements and covenants
of Executive made in such Paragraphs are effective, are to be computed by excluding from such
computation any time during which Executive is in violation of any provision of Paragraph 15 or 20.
In addition, Executive’s obligations under these NONINTERFERENCE provisions shall survive the
termination of this Agreement and Executive’s employment with the Bank. Executive’s obligations
under these NONINTERFERENCE provisions are in addition to, and not in limitation or preemption of,
all other obligations of confidentiality which he may have to Bank under general legal or equitable
principles, or other the Bank policies. In the event of any conflict between or among the
NONINTERFERENCE provisions set forth in this Section D, the more restrictive of the provisions
shall control.

E. REMEDIES

     23. In the event that the Executive violates any of the provisions set forth in this Agreement
relating to NONINTERFERENCE, Executive acknowledges that the Bank would suffer immediate and

 

 

irreparable harm and would not have an adequate remedy at law for money damages. Accordingly,
Executive agrees that, without the necessity of proving actual damages or posting bond or other
security, the Bank shall be entitled to temporary or permanent injunction or injunctions to prevent
breaches of such performance and to specific enforcement of such covenants in addition to any other
remedy to which the Bank may be entitled, at law or in equity. In such a situation, the parties
agree that the Bank may pursue any remedy available, including declaratory relief, concurrently or
consecutively in any order as to any breach, violation, or threatened breach or violation of any of
the provisions set forth in this Agreement relating to NONINTERFERENCE, and the pursuit of any
particular remedy or remedies shall not be deemed an election of remedies or waiver of the right to
pursue any other remedy.

F. TERMINATION

     24. The Board of Directors shall be entitled to terminate this Agreement, for any reason, by
providing the Executive with thirty (30) days written notice of the termination. However, if this
Agreement is terminated by the Bank without Good Cause, as defined in this Agreement, the Bank
shall provide the Executive with the severance set forth in paragraph 34 of this Agreement.

     25. For purposes of this Agreement, “Good Cause” shall be defined as the occurrence of one of
the following events:

     a. The determination of the Board of Directors, in the exercise of its reasonable
judgment, that Executive has violated any provision of this Agreement or is grossly
negligent in the performance of his duties hereunder, and has failed to cure such violation
or the effects of such gross negligence within a reasonable period after written notice to
the Executive by the Bank specifying in reasonable detail the alleged violation;

     b. The determination of the Board of Directors, in the exercise of its reasonable
judgment, that (i) Executive has failed to follow the policies adopted by the Board of
Directors and has failed to cure such failure within a reasonable period after written
notice to the Executive by the Bank specifying in reasonable detail the alleged failure; or
(ii) Executive has engaged in such actions or omissions that would constitute unsafe or
unsound banking practices;

     c. The Executive is convicted of a misdemeanor involving moral turpitude or a felony;

     d. The determination of the Board of Directors, in the exercise of its reasonable
judgment, that the Executive has engaged in gross misconduct in the course and scope of his
employment with the Bank including indecency, immorality, gross insubordination, dishonesty,
unlawful harassment, use of illegal drugs, or fighting;

     e. The determination of the Board of Directors, in the exercise of its reasonable
judgment and in good faith, that the Executive’s job performance is substantially
unsatisfactory and that Executive has failed to cure such performance within a reasonable
period after written notice to the Executive by the Bank specifying in reasonable detail the
nature of the unsatisfactory performance; or

     f. The Executive is prohibited from engaging in the business of banking by any
governmental regulatory agency having jurisdiction over the Bank.

Notwithstanding anything in this Agreement to the contrary, Executive will not be in breach of this
Agreement and his action or failure to act shall not be a basis for termination for Good Cause if

 

 

Executive’s action or failure to act would constitute an unsafe or unsound banking practice or be
reasonably expected to have a material adverse effect on the financial or regulatory condition of
the Bank.

     26. Executive shall be entitled to terminate this Agreement at any time, for any reason, with
or without cause, by providing thirty (30) days written notice to the Bank. The effective date of
such resignation shall be the 30th calendar day following the date the notice is given
or such other later date as may be set forth in the notice. Upon Executive’s resignation,
Executive shall be entitled to receive any base salary which has been earned by him through the
effective date of such resignation.

     27. If Executive dies during the term of this Agreement and while in the employ of the Bank,
this Agreement will terminate automatically, without notice, on the date of the Executive’s death
and the Bank shall have any further obligation to Executive or his estate under this Agreement
(other than death benefits payable under any benefit plans to which Executive is a party), except
that the Bank shall pay Executive’s estate that portion of Executive’s base salary accrued through
the date on which Executive’s death occurred. To the maximum extent, and for the term, permitted
by the health benefit provisions of the Consolidated Omnibus Budget Reconciliation Act (COBRA) of
1986, if Executive dies during the term of this Agreement and while in the employ of the Bank, the
Bank shall provide or maintain health insurance benefits, at the Bank’s expense, for Executive’s
spouse.

     28. The Executive acknowledges and agrees that this Agreement will terminate immediately,
without notice, in the event the Executive becomes physically or mentally disabled, as defined by
29 C.F.R. § 1630.2(g)(1), and cannot perform the essential functions of his position, with or
without reasonable accommodation for the period designated by the Executive’s disability insurance
after which disability payments will begin. In the event of a termination pursuant to this
Section, the Bank shall be relieved of all its obligations under this Agreement, except that the
Bank shall pay to Executive, or his estate in the event of his subsequent death, Executive’s base
salary through the date on which such termination shall have occurred, reduced during such period
by the amount of any benefits received by Executive under any disability policy maintained by the
Bank.

     29. Executive acknowledges that all memoranda, notes, records, reports, manuals, books,
papers, letters, client and customer lists, contracts, software programs, information and records,
drafts of instructions, guides and manuals, and other documentation (whether in draft or final
form), and other sales or financial information and aids relating to the Bank’s business, and any
and all other documents containing confidential information furnished to Executive by any
representative of the Bank or otherwise acquired or developed by Executive in connection with his
duties under this Agreement (collectively, “Recipient Materials”) shall at all times be the
property of the Bank. Within three calendar days of the termination of this Agreement, Executive
shall return to the Bank, any Recipient Materials which are in his possession, custody or control.

     30. The provisions of provisions of Paragraphs 15, 16, 20-23, 29-34, 39, 42, 43 and 45 shall
survive the termination of this Agreement.

G. CHANGE IN CONTROL

     31. The parties acknowledge that the Executive has agreed to assume the position of Executive
Vice President and Chief Lending Officer and to enter into this Agreement based on his confidence
in the current owners of the Bank and the direction of the Bank provided by the current Board of
Directors. Upon a “Change of Control,” as defined below, the Executive may, at his option, notify
the Bank within sixty (60) days following such Change of Control that he intends to terminate this
Agreement based upon the Change of Control.

 

 

     In the event that Executive is terminated by the Bank within sixty (60) days following such
Change of Control for any reason other than for Good Cause, Executive shall be entitled to elect to
receive as severance the lump sum amount determined pursuant to Paragraph 32 upon written notice to
the Bank, in which case the severance provisions of Paragraph 34 shall not apply.

     32. In the event that the Executive elects to terminate this Agreement based upon the Change
in Control, the Bank shall pay to the Executive a cash lump sum payment equal to 199% of his Base
Amount as defined in section 280G(b)(3) of the Internal Revenue Code of 1986, as amended (“Code”)
within thirty (30) days of such notice.

     In the event that any compensation payable under this Agreement is determined to be a
“parachute payment” subject to the excise tax imposed by Section 4999 of the Code or any successor
provision (the “Excise Tax”), the Bank agrees to pay to the Executive an additional sum (the “Gross
Up”) in an amount such that the net amount retained by the Executive, after receiving both the
payment and the Gross Up and after paying: (i) any Excise Tax on the payment and the Gross Up, and
(ii) any federal, state, and local income taxes on the Gross Up, is equal to the amount of the
payment.

     For purposes of determining the Gross Up, the Executive shall be deemed to pay federal, state,
and local income taxes at the highest marginal rate of taxation in his filing status for the
calendar year in which the payment is to be made based upon the Executive’s domicile on the date of
the event that triggers the Excise Tax. The determination of whether such Excise Tax is payable
and the amount of such Excise Tax shall be based upon the opinion of tax counsel selected by the
Bank, subject to the reasonable approval of the Executive. If such opinion is not finally accepted
by the Internal Revenue Service, then appropriate adjustments shall be calculated (with additional
Gross Up determined based on the principals outlined in the previous paragraph, if applicable) by
such tax counsel based upon the final amount of Excise Tax so determined together with any
applicable penalties and interest. The final amount shall be paid, if applicable, within thirty
(30) days after such calculations are completed, but in no event later than April 1st of
the year following the event that triggers the Excise Tax. Such compensation shall be payable in
equal disbursements in accordance with the Bank’s ordinary payroll policies and procedures.

     33. As used in this Agreement, a “Change of Control” shall be deemed to have occurred in each
of the following instances:

     a. A reorganization, merger, consolidation or other corporate transaction involving
the Holding Company or the Bank, in each case, with respect to which the shareholders of
the Holding Company or the Bank, respectively, immediately prior to such transaction do
not, immediately after the transaction, own more than fifty percent (50%) of the combined
voting power of the reorganized, merged or consolidated company’s then outstanding voting
securities.

     b. The sale, transfer or assignment of all or substantially all of the assets of the
Holding Company or the Bank to any third party.

     c. The acquisition by any individual, entity or “group,” within the meaning of
Section 13(d)(3) or Section 14(d)(2) of the Exchange Act (other than the current members of
the boards of directors of the Company or the Bank or any of their descendants, the
Company, the Bank, or any savings, pension or other benefit plan for the benefit of the
employees of the Company or the Bank or subsidiaries thereof) (a “Person”), of beneficial
ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of voting
securities of the Holding Company or the Bank where such acquisition causes any such Person
to own fifty percent (50%)

 

 

or more of the combined voting power of the Holding Company’s or the Bank’s then
outstanding capital stock then entitled to vote generally in the election of directors.

     d. During any period of two consecutive years, the persons who were directors of the
Holding Company immediately before the beginning of the two year period (the “Incumbent
Directors”) shall cease to constitute at least a majority of the Board of Directors of the
Holding Company; provided that any individual becoming a director subsequent to the
beginning of such two year period whose election, or nomination for election by the Bank’s
shareholders, was approved by at least two-thirds of the directors then comprising the
Incumbent Directors shall be considered as though such individual were an Incumbent
Director unless such individual’s initial assumption of office occurs as a result of either
an actual or threatened election contest (as such terms are used in Rule 14a-11 of
Regulation 14A promulgated under the Exchange Act).

     e. A dissolution or liquidation of the Company or the Bank.

     f. Any other transaction or series of related transactions occurring which have
substantially the same effect as the transaction specified in clauses (a) through (f), as
determined by the Board of Directors of the Holding Company or the Bank.

     Notwithstanding anything contained herein to the contrary, if Executive’s employment is
terminated and he reasonably demonstrates that such termination was at the request of a third party
who has indicated an intention of taking steps reasonably calculated to effect a Change in Control
and who effects a Change in Control, or such termination otherwise occurred in connection with, or
in anticipation of, a Change in Control which actually occurs, then for all purposes hereof, a
Change in Control shall be deemed to have occurred on the day immediately prior to the date of such
termination of his employment.

H. SEVERANCE

     34. Except as otherwise expressly provided herein, if Bank terminates Executive’s employment
for any reason other than Good Cause (as defined in this Agreement) after the first anniversary
date of the Effective Date of this Agreement, then Executive shall be entitled to severance pay in
an amount not less than the base salary that would have been due the Executive had he remained
employed for six (6) months following termination. If Bank terminates Executive’s employment for
any reason other than Good Cause (as defined in this Agreement) after the second anniversary date
of the Effective Date of this Agreement, then Executive shall be entitled to severance pay in an
amount equal to the base salary that would have been due the Executive had he remained employed for
one year following termination. In the event that the Executive is entitled to any payment under
Section G, no payment shall be due under this Section H. Any severance pay due to Executive
pursuant to this Section H shall be paid in accordance with the terms of normal payroll procedure
of the Bank.

I. SEVERABILITY

     35. If any term or other provision of this Agreement is held to be illegal, invalid or
unenforceable by any rule of law or public policy, (A) such term or provision shall be fully
severable and this Agreement shall be construed and enforced as if such illegal, invalid or
unenforceable provision were not a part hereof; (B) the remaining provisions of this Agreement
shall remain in full force and effect and shall not be affected by such illegal, invalid or
unenforceable provision or by its severance from this Agreement; and (C) there shall be added
automatically as a part of this Agreement a provision as similar in terms to such illegal, invalid
or unenforceable provision as may be possible and still be legal, valid and enforceable. If any
provision of this Agreement is so broad as to be unenforceable, the provision shall be interpreted
to be only as broad as is enforceable.

 

 

J. WAIVER

     36. The parties acknowledge and agree that the failure of either to enforce any provision of
this Agreement shall not constitute a waiver of that particular provision, or of any other
provisions of this Agreement.

K. SUCCESSORS AND ASSIGNS

     37. The Executive acknowledges and agrees that, this Agreement may be assigned by the Bank to
any successor-in-interest and shall inure to the benefit of, and be fully enforceable by, any
successor and/or assignee; and this Agreement will be fully binding upon, and may be enforced by
the Executive against, any successor and/or assignee of the Bank. In the event of any conflict
between this Paragraph 37 and the Change in Control provisions set forth in Section G, above, the
terms of Section G shall control.

     38. The Executive acknowledges and agrees that his obligations, duties and responsibilities
under this Agreement are personal and shall not be assignable, and that this Agreement shall be
enforceable by the Executive only. In the event of the Executive’s death, this Agreement shall be
enforceable by the Executive’s estate, executors and/or legal representatives, only to the extent
provided herein.

L. CHOICE OF LAW

     39. THIS AGREEMENT SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, AND ALL QUESTIONS
CONCERNING THE CONSTRUCTION, VALIDITY, INTERPRETATION AND PERFORMANCE OF THIS AGREEMENT SHALL BE
GOVERNED BY, THE LAWS OF THE STATE OF MICHIGAN, WITHOUT GIVING EFFECT TO PROVISION THEREOF
REGARDING CONFLICT OF LAWS. IT IS STIPULATED THAT MICHIGAN HAS A COMPELLING STATE INTEREST IN THE
SUBJECT MATTER OF THIS AGREEMENT, AND THAT EXECUTIVE HAS OR WILL HAVE REGULAR CONTACT WITH THE
STATE OF MICHIGAN IN THE PERFORMANCE OF THIS AGREEMENT.

M. MODIFICATION

     40. The parties acknowledge and agree that this Agreement and the other agreements and plans
referenced herein constitute the complete and entire agreement between the parties; that each
executed this Agreement based upon the express terms and provisions set forth herein; that, in
accepting employment with the Bank, Executive has not relied on any representations, oral or
written, which are not set forth in this Agreement; that no previous agreement, either oral or
written, shall have any effect on the terms or provisions of this Agreement; and that all previous
agreements, either oral or written, are expressly superseded and revoked by this Agreement. Except
as otherwise expressly provided in this Agreement, no conditions, usage of trade, course of dealing
or performance, understanding or agreement purporting to modify, vary, explain or supplement the
terms or conditions of this Agreement unless hereafter made in writing and signed by the party to
be bound. No waiver shall be deemed a continuing waiver or a waiver of any subsequent breach or
default, either of a similar or different nature, unless expressly so stated in writing.

     41. Except as otherwise expressly provided in this Agreement, no conditions, usage of trade,
course of dealing or performance, understanding or agreement purporting to modify, vary, explain or
supplement the terms or conditions of this Agreement unless hereafter made (i) in writing, (ii)
referencing

 

 

an express provision in this Agreement, (iii) signed by the Executive, and (iv) approved by a
disinterested majority of the Board of Directors.

N. INDEMNIFICATION

     42. The Bank shall indemnify the Executive against all judgments, penalties, fines, amounts
paid in settlement and reasonable expenses (including, but not limited to, attorneys’ fees)
relating to his employment by the Bank to the fullest extent permissible under the law, including,
without limitation, federal and/or state banking laws and regulations, the Michigan Banking Code of
1999, as amended, the Michigan Business Corporation Act, as amended, and the Bank’s Articles of
Incorporation. To the extent permitted by law, the Bank may purchase such indemnification
insurance as the Board may from time to time determine.

O. ARBITRATION

     43. Any dispute, controversy, or claim arising out of or relating to this Agreement or breach
thereof, or arising out of or relating in any way to the employment of the Executive or the
termination thereof, shall be submitted to arbitration in accordance with the Employment Dispute
Arbitration Rules of the American Arbitration Association. Judgment upon the award rendered by the
arbitrator may be entered in any court of competent jurisdiction. In reaching his or her decision,
the arbitrator shall have no authority to ignore, change, modify, add to or delete from any
provision of this Agreement, but instead is limited to interpreting this Agreement.
Notwithstanding the arbitration provisions set forth in this Agreement, the Executive and the Bank
acknowledge and agree that nothing in this Agreement shall be construed to require the arbitration
of any claim or controversy arising under the NONINTERFERENCE provisions of this Agreement. These
provisions shall be enforceable by any court of competent jurisdiction and shall not be subject to
this Paragraph of the Agreement. The Executive and the Bank further acknowledge and agree that
nothing in this Agreement shall be construed to require arbitration of any claim for workers’
compensation or unemployment compensation.

P. LEGAL CONSULTATION

     44. Each party acknowledges that it has carefully read this agreement, that it has had an
opportunity to consult with his or its attorney concerning the meaning, import and legal
significance of this Agreement, that it understands the terms of the Agreement, that all
understandings and agreements between Executive and the Bank relating to the subjects covered in
this Agreement are contained in it, and that it has entered into the Agreement voluntarily and not
in reliance on any promises or representations by the other than those contained in this Agreement.

Q. MISCELLANEOUS

     45. The Executive shall make himself available, upon the request of the Bank, to testify or
otherwise assist in litigation, arbitration, or other disputes involving the Bank, or any of the
directors, officers, employees, subsidiaries, or parent corporations of either, at no additional
cost during the term of this Agreement and at any time following the termination of this Agreement.

     46. The Executive shall not be required to mitigate the amount of any payment provided for in
this Agreement by seeking other employment or otherwise, nor shall the amount of any payment
provided for in this Agreement be reduced by any compensation earned by the Executive as the result
of employment by another employer after the date of termination, or otherwise.

 

 

     47. In the event either party institutes arbitration or litigation to enforce or protect its
rights under this Agreement, the prevailing party in such arbitration or litigation shall be
entitled, in addition to all other relief, to reasonable attorneys fees, out-of-pocket costs,
disbursements, and arbitrator’s fees relating to such arbitration or litigation.

     48. This Agreement may be executed simultaneously in two or more counterparts, each of which
shall be deemed an original, but all of which shall together constitute one and the same Agreement.

     49. The Bank shall have no obligation to set aside, earmark or entrust any fund or money with
which to pay its obligations under this Agreement. The Executive or any successor-in-interest to
Executive shall be and remain simply a general creditor of the Bank in the same manner as any other
creditor having a general unsecured claim. For purposes of the Code, the Bank intends this
Agreement to be an unfunded, unsecured promise to pay on the part of the Bank. For purposes of
Employee Retirement Income Security Act of 1974, as amended (“ERISA”), the Bank intends that this
Agreement not be subject to ERISA. If it is deemed subject to ERISA, it is intended to be an
unfunded arrangement for the benefit of a select member of management, who is a highly compensated
employee of the Bank for the purpose of qualifying this Agreement for the “top hat” plan exception
under sections 201(2), 301(a)(3) and 401(a)(1) of ERISA. At no time shall the Executive have or be
deemed to have any lien nor right, title or interest in or to any specific investment or to any
assets of the Bank. If the Bank elects to invest in a life insurance, disability or annuity policy
upon the life of Executive, the Executive shall assist the Bank by freely submitting to a physical
examination and supplying such additional information necessary to obtain such insurance or
annuities.

     50. When a reference is made in this Agreement to a Paragraph, such reference shall be to a
Paragraph of this Agreement unless otherwise indicated. The headings contained in this Agreement
are for convenience of reference only and shall not affect in any way the meaning or interpretation
of this Agreement. Whenever the words “include”, “includes” or “including” are used in this
Agreement, they shall be deemed to be followed by the words “without limitation.” The words
“hereof”, “herein” and “hereunder” and words of similar import when used in this Agreement shall
refer to this Agreement as a whole and not to any particular provision in this Agreement. Each use
herein of the masculine, neuter or feminine gender shall be deemed to include the other genders.
Each use herein of the plural shall include the singular and vice versa, in each case as the
context requires or as is otherwise appropriate. The word “or” is used in the inclusive sense.
Any agreement or instrument defined or referred to herein or in any agreement or instrument that is
referred to herein means such agreement or instrument as from time to time amended, modified or
supplemented, including by waiver or consent. References to a person are also to its permitted
successors or assigns.

     51. Executive represents that his service as an employee of the Bank will not violate any
agreement: (i) he has made that prohibits him from disclosing any information he acquired prior to
his becoming employed by the Bank; or (ii) he has made that prohibits him from accepting employment
with the Bank or that will interfere with his compliance with the terms of this Agreement.
Executive further represents that he has not previously, and will not in the future, disclose to
Bank any proprietary information or trade secrets belonging to any previous employer. Executive
acknowledges that the Bank has instructed him not to disclose to it any proprietary information or
trade secrets belonging to any previous employer.

R. NOTICES

     52. All notices and other communications required or permitted to be given or delivered
hereunder or by reason of the provisions of this Agreement shall be in writing and shall be deemed
to have been properly given if (a) delivered personally, (b) delivered by a recognized overnight
courier

 

 

service, (c) sent by United States mail, or (d) sent by facsimile transmission followed by a
confirmation copy delivered by recognized overnight courier service the next day. Such notices,
requests, consents and other communications shall be sent to the respective parties as follows (or
at such other address for a party as shall be specified by like notice to the other party):

               If to the Bank:

               Bank of Birmingham

               33583 Woodward Avenue

               Birmingham, Michigan 48009

               Attention: Chairman

               If to Executive:

               Lance N. Krajacic, Jr.

               3398 McCluskey Dr.

               Pinckney, MI 48169

     53. Any notice or other communication given pursuant to this Agreement shall be effective (i)
in the case of personal delivery, telex or facsimile transmission, when received; (ii) in the case
of mail, upon the earlier of actual receipt or five (5) business days after deposit with the United
States Postal Service, first class certified or registered mail, postage prepaid, return receipt
requested; and (iii) in the case of a recognized overnight courier service, one (1) business day
after delivery to the courier service together with all appropriate fees or charges and
instructions for overnight delivery. Any and all notices of documents or other notices required to
be delivered under the terms of this Agreement shall be addressed to each party as follows:

[signature page follows]

 

 

[signature page to Employment Agreement]

EXECUTED ON THIS DATE FIRST WRITTEN ABOVE IN BIRMINGHAM, MICHIGAN.

	 	 	 	 	 	 	 
	 

	 	 
	 	EXECUTIVE
	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	/s/ Richard J. Miller

	 	 	 	/s/ Lance K. Krajacic, Jr.	 	 
	 

	 	 	 	 	 	 
	WITNESS

	 	 	 	Lance N. Krajacic, Jr.	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	BANK OF BIRMINGHAM	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	/s/ Richard J. Miller

	 	 	 	/s/ William Aikens	 	 
	 

	 	 	 	 	 	 
	WITNESS

	 	 	 	William Aikens                     , Chairmanexv4w2

 

EXECUTION VERSION

 

 

ENERGY TRANSFER PARTNERS, L.P.,

as Issuer,

and

U.S. BANK NATIONAL ASSOCIATION

(AS SUCCESSOR TO

WACHOVIA BANK, NATIONAL ASSOCIATION),

as Trustee

SIXTH SUPPLEMENTAL INDENTURE

Dated as of March 28, 2008

to
Indenture dated as of January 18, 2005

6.000% Senior Notes due 2013

6.700% Senior Notes due 2018

7.500% Senior Notes due 2038

 

 

 

Table of Contents

	 	 	 	 	 
	ARTICLE I

	DEFINITIONS

	 
	 	 	 	 
	SECTION 1.1 Generally
	 	 	1	 
	SECTION 1.2 Definition of Certain Terms
	 	 	2	 
	 
	 	 	 	 
	ARTICLE II

	GENERAL TERMS OF THE NOTES

	 
	 	 	 	 
	SECTION 2.1 Form
	 	 	6	 
	SECTION 2.2 Title, Amount and Payment of Principal and Interest
	 	 	7	 
	SECTION 2.3 Transfer and Exchange
	 	 	9	 
	 
	 	 	 	 
	ARTICLE III

	FUTURE SUBSIDIARY GUARANTEES

	 
	 	 	 	 
	SECTION 3.1 No Initial Guarantee of the Notes by Subsidiary Guarantors
	 	 	9	 
	SECTION 3.2 Future Subsidiary Guarantors
	 	 	9	 
	SECTION 3.3 Release of Guarantees
	 	 	9	 
	SECTION 3.4 Reinstatement of Guarantees
	 	 	9	 
	 
	 	 	 	 
	ARTICLE IV

	REDEMPTION

	 
	 	 	 	 
	SECTION 4.1 Redemption
	 	 	10	 
	 
	 	 	 	 
	ARTICLE V

	ADDITIONAL COVENANTS

	 
	 	 	 	 
	SECTION 5.1 Limitation on Liens
	 	 	11	 
	SECTION 5.2 Restriction on Sale-Leasebacks
	 	 	11	 
	 
	 	 	 	 
	ARTICLE VI

	ADDITIONAL EVENT OF DEFAULT

	 
	 	 	 	 
	SECTION 6.1 Additional Event of Default
	 	 	12	 
	 
	 	 	 	 
	ARTICLE VII

	MISCELLANEOUS PROVISIONS

	 
	 	 	 	 
	SECTION 7.1 Ratification of Base Indenture
	 	 	12	 
	SECTION 7.2 Trustee Not Responsible for Recitals
	 	 	12	 
	SECTION 7.3
Table of Contents, Headings, etc.
	 	 	13	 
	SECTION 7.4 Counterpart Originals
	 	 	13	 
	SECTION 7.5 Governing Law
	 	 	13	 

i

 

     THIS SIXTH SUPPLEMENTAL INDENTURE dated as of March 28, 2008 (the “Sixth Supplemental
Indenture”), is among Energy Transfer Partners, L.P., a Delaware limited partnership (the
“Partnership”), and U.S. Bank National Association, a national banking association, as successor to
Wachovia Bank, National Association, a national banking association, as trustee (the “Trustee”).

RECITALS:

     WHEREAS, the Partnership and certain Subsidiary Guarantors have executed and delivered to the
Trustee an Indenture, dated January 18, 2005 (the “Base Indenture” and as supplemented by this
Sixth Supplemental Indenture, the “Indenture”), providing for the issuance by the Partnership from
time to time of its debentures, notes, bonds or other evidences of indebtedness to be issued in one
or more series unlimited as to principal amount (the “Debt Securities”);

     WHEREAS, the Partnership has duly authorized and desires to cause to be established pursuant
to the Base Indenture and this Sixth Supplemental Indenture three new series of Debt Securities
designated the “6.000% Senior Notes due 2013” (the “2013 Notes”), the “6.700% Senior Notes due
2018” (the “2018 Notes”) and the “7.500% Senior Notes due 2038” (the “2038 Notes” and together with
the 2013 Notes and the 2018 Notes, the “Notes”);

     WHEREAS, Sections 2.01 and 2.04 of the Base Indenture permit the execution of indentures
supplemental thereto to establish the form and terms of Debt Securities of any series;

     WHEREAS, pursuant to Section 9.01 of the Base Indenture, the Partnership has requested that
the Trustee join in the execution of this Sixth Supplemental Indenture to establish the form and
terms of the Notes;

     WHEREAS, all things necessary have been done to make the Notes, when executed by the
Partnership and authenticated and delivered hereunder and under the Base Indenture and duly issued
by the Partnership, the valid obligations of the Partnership, and to make this Sixth Supplemental
Indenture a valid agreement of the Partnership enforceable in accordance with its terms.

     NOW, THEREFORE, the Partnership and the Trustee hereby agree that the following provisions
shall supplement the Base Indenture:

ARTICLE I

DEFINITIONS

SECTION 1.1 Generally.

     (a) Capitalized terms used herein and not otherwise defined herein shall have the respective
meanings ascribed thereto in the Base Indenture.

     (b) The rules of interpretation set forth in the Base Indenture shall be applied hereto as if
set forth in full herein.

1

 

SECTION 1.2 Definition of Certain Terms.

     For all purposes of this Sixth Supplemental Indenture, except as otherwise expressly provided
or unless the context otherwise requires, the following terms shall have the following respective
meanings:

     “Attributable Indebtedness,” when used with respect to any Sale-Leaseback Transaction (as
defined in Section 5.2 hereof), means, as at the time of determination, the present value
(discounted at the rate set forth or implicit in the terms of the lease included in such
transaction) of the total obligations of the lessee for rental payments (other than amounts
required to be paid on account of property taxes, maintenance, repairs, insurance, assessments,
utilities, operating and labor costs and other items that do not constitute payments for property
rights) during the remaining term of the lease included in such Sale-Leaseback Transaction
(including any period for which such lease has been extended). In the case of any lease that is
terminable by the lessee upon the payment of a penalty or other termination payment, such amount
shall be the lesser of the amount determined assuming termination upon the first date such lease
may be terminated (in which case the amount shall also include the amount of the penalty or
termination payment, 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 amount determined assuming
no such termination.

     “Comparable Treasury Issue” means the United States Treasury security selected by the
Independent Investment Banker as having a maturity comparable to the remaining term of the Notes to
be redeemed 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 the Notes to be redeemed; provided, however, that if no maturity is within
three months before or after the maturity date for such Notes, yields for the two published
maturities most closely corresponding to such United States Treasury security will be determined
and the treasury rate will be interpolated or extrapolated from those yields on a straight line
basis rounding to the nearest month.

     “Comparable Treasury Price” means, with respect to any Redemption Date, (a) the average of the
Reference Treasury Dealer Quotations for the Redemption Date, after excluding the highest and
lowest Reference Treasury Dealer Quotations, or (b) if the Independent Investment Banker obtains
fewer than four Reference Treasury Dealer Quotations, the average of all such quotations.

     “Consolidated Net Tangible Assets” means, at any date of determination, the total amount of
assets of the Partnership and its consolidated Subsidiaries after deducting therefrom:

     (1) all current liabilities (excluding (A) any current liabilities that by their terms are
extendable or renewable at the option of the obligor thereon to a time more than twelve months
after the time as of which the amount thereof is being computed, and (B) current maturities of
long-term debt); and

     (2) the value (net of any applicable reserves) of all goodwill, trade names, trademarks,
patents and other like intangible assets,

2

 

all as set forth, or on a pro forma basis would be set forth, on the consolidated balance sheet of
the Partnership and its consolidated Subsidiaries for the Partnership’s most recently completed
fiscal quarter for which financial statements have been filed with the SEC, prepared in accordance
with generally accepted accounting principles.

     “Credit Agreement” means the Amended and Restated Credit Agreement, dated as of July 20, 2007,
among the Partnership, Wachovia Bank, National Association, as Administrative Agent, and the other
agents and lenders party thereto and as further amended, restated, refinanced, replaced or refunded
from time to time.

     “Indebtedness” of any Person at any date means any obligation created or assumed by such
Person for the repayment of borrowed money or any guaranty thereof.

     “Independent Investment Banker” means Wachovia Capital Markets, LLC, Credit Suisse Securities
(USA) LLC, J.P. Morgan Securities Inc. or UBS Securities LLC (and their respective successors) or,
if any such firm is not willing and able to select the applicable Comparable Treasury Issue, an
independent investment banking institution of national standing appointed by the Trustee and
reasonably acceptable to the Partnership.

     “Permitted Liens” means:

     (1) liens upon rights-of-way for pipeline purposes;

     (2) easements, rights-of-way, restrictions and other similar encumbrances incurred in the
ordinary course of business and encumbrances consisting of zoning restrictions, easements,
licenses, restrictions on the use of real property or minor imperfections in title thereto and
which do not in the aggregate materially adversely affect the value of the properties encumbered
thereby or materially impair their use in the operation of the business of the Partnership and its
Subsidiaries;

     (3) rights reserved to or vested by any provision of law in any municipality or public
authority to control or regulate any of the properties of the Partnership or any Subsidiary or the
use thereof or the rights and interests of the Partnership or any Subsidiary therein, in any manner
under any and all laws;

     (4) rights reserved to the grantors of any properties of the Partnership or any Subsidiary,
and the restrictions, conditions, restrictive covenants and limitations, in respect thereto,
pursuant to the terms, conditions and provisions of any rights-of-way agreements, contracts or
other agreements therewith;

     (5) any statutory or governmental lien or lien arising by operation of law, or any mechanics’,
repairmen’s, materialmen’s, suppliers’, carriers’, landlords’, warehousemen’s or similar lien
incurred in the ordinary course of business which is not more than sixty (60) days past due or
which is being contested in good faith by appropriate proceedings and any undetermined lien which
is incidental to construction, development, improvement or repair;

3

 

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

     (7) liens for taxes and assessments which are (a) for the then current year, (b) not at the
time delinquent, or (c) delinquent but the validity or amount of which is being contested at the
time by the Partnership or any of its Subsidiaries in good faith by appropriate proceedings;

     (8) liens of, or to secure performance of, leases, other than capital leases;

     (9) any lien in favor of the Partnership or any Subsidiary;

     (10) any lien upon any property or assets of the Partnership or any Subsidiary in existence on
the date of the initial issuance of the Notes;

     (11) any lien 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;

     (12) liens in favor of any Person to secure obligations under provisions of any letters of
credit, bank guarantees, bonds or surety obligations required or requested by any governmental
authority in connection with any contract or statute, provided that such obligations do not
constitute Indebtedness; or any lien upon or deposits of any assets to secure performance of bids,
trade contracts, leases or statutory obligations, and other obligations of a like nature incurred
in the ordinary course of business;

     (13) any lien upon any property or assets created at the time of acquisition of such property
or assets by the Partnership or any of its Subsidiaries or within one year after such time to
secure all or a portion of the purchase price for such property or assets or debt incurred to
finance such purchase price, whether such debt was incurred prior to, at the time of or within one
year after the date of such acquisition;

     (14) any lien upon any property or assets to secure all or part of the cost of construction,
development, repair or improvements thereon or to secure Indebtedness incurred prior to, at the
time of, or within one year after completion of such construction, development, repair or
improvements or the commencement of full operations thereof (whichever is later), to provide funds
for any such purpose;

     (15) any lien upon any property or assets existing thereon at the time of the acquisition
thereof by the Partnership or any of its Subsidiaries and any lien upon any property or assets of a
Person existing thereon at the time such Person becomes a Subsidiary of the Partnership by
acquisition, merger or otherwise; provided that, in each case, such lien only encumbers the
property or assets so acquired or owned by such Person at the time such Person becomes a
Subsidiary;

     (16) liens imposed by law or order as a result of any proceeding before any court or
regulatory body that is being contested in good faith, and liens which secure a judgment or other

4

 

court-ordered award or settlement as to which the Partnership or the applicable Subsidiary has
not exhausted its appellate rights;

     (17) any extension, renewal, refinancing, refunding or replacement (or successive extensions,
renewals, refinancing, refunding or replacements) of liens, in whole or in part, referred to in
clauses (1) through (16) above; provided, however, that any such extension, renewal, refinancing,
refunding or replacement lien shall be limited to the property or assets covered by the lien
extended, renewed, refinanced, refunded or replaced and that the obligations secured by any such
extension, renewal, refinancing, refunding or replacement lien shall be in an amount not greater
than the amount of the obligations secured by the lien extended, renewed, refinanced, refunded or
replaced and any expenses of the Partnership or its Subsidiaries (including any premium) incurred
in connection with such extension, renewal, refinancing, refunding or replacement; or

     (18) any lien resulting from the deposit of moneys or evidence of indebtedness in trust for
the purpose of defeasing Indebtedness of the Partnership or any of its Subsidiaries.

     “Principal Property” means, whether owned or leased on the date hereof or thereafter acquired:

     (1) any 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, refined petroleum products, natural gas liquids and petrochemicals, that are located in the
United States of America or any territory or political subdivision thereof; and

     (2) any processing, compression, treating, blending or manufacturing plant or terminal owned
or leased by the Partnership or any of its Subsidiaries that is located in the United States or any
territory or political subdivision thereof, except in the case of either of the preceding clauses
(1) or (2):

     (a) any such assets consisting of inventories, furniture, office fixtures and equipment
(including data processing equipment), vehicles and equipment used on, or useful with,
vehicles;

     (b) any such assets which, in the opinion of the board of directors of the General
Partner are not material in relation to the activities of the Partnership and its
Subsidiaries taken as a whole; and

     (c) any assets used primarily in the conduct of the retail propane marketing business
conducted by Heritage Operating, L.P. and its Subsidiaries.

     “Reference Treasury Dealer” means (a) each of Wachovia Capital Markets, LLC, Credit Suisse
Securities (USA) LLC, J.P. Morgan Securities Inc., UBS Securities LLC (or its relevant affiliate)
and their respective successors, and (b) one other primary U.S. government securities dealer in the
United States selected by the Partnership (each, a “Primary Treasury Dealer”); provided, however,
that if any of the foregoing shall resign as a Reference Treasury Dealer or cease to be a U.S.
government securities dealer, the Partnership will substitute therefor another Primary Treasury
Dealer.

5

 

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

     “Restricted Subsidiary” means any Subsidiary owning or leasing, directly or indirectly through
ownership in another Subsidiary, any Principal Property.

     “Subsidiary Guarantor” means, with respect to the Notes and notwithstanding the definition
thereof in the Base Indenture, each Subsidiary of the Partnership that guarantees the Notes
pursuant to the terms of the Indenture, but only so long as such Subsidiary is a guarantor of the
Notes on the terms provided in the Indenture.

     “Treasury Yield” means, with respect to any Redemption Date applicable to the Notes, (a) 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 United States Treasury securities adjusted to constant
maturity under the caption “Treasury Constant Maturities,” for the maturity corresponding to the
Comparable Treasury Issue; or (b) if the release (or any successor release) is not published during
the week preceding the calculation date or does not contain these yields, the rate per annum equal
to the semi-annual equivalent yield to maturity (computed as of the third Business Day immediately
preceding such Redemption Date) of the Comparable Treasury Issue, assuming a price for the
Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the
applicable Comparable Treasury Price for such Redemption Date.

ARTICLE II

GENERAL TERMS OF THE NOTES

SECTION 2.1 Form.

     The 2013 Notes, the 2018 Notes and the 2038 Notes and the Trustee’s certificates of
authentication shall be substantially in the form of Exhibit A-1, Exhibit A-2 and Exhibit A-3,
respectively, to this Sixth Supplemental Indenture, which are hereby incorporated into this Sixth
Supplemental Indenture. The terms and provisions contained in the Notes shall constitute, and are
hereby expressly made, a part of this Sixth Supplemental Indenture and to the extent applicable,
the Partnership and the Trustee, by their execution and delivery of this Sixth Supplemental
Indenture, expressly agree to such terms and provisions and to be bound thereby.

     Each series of Notes shall be issued upon original issuance in whole in the form of one or
more Global Securities (the “Book-Entry Notes”). Each Book-Entry Note shall represent such of the
outstanding Notes as shall be specified therein and shall provide that it shall represent the
aggregate amount of outstanding Notes from time to time endorsed thereon and that the aggregate
amount of outstanding Notes represented thereby may from time to time be reduced or increased, as
appropriate, to reflect exchanges and redemptions.

6

 

     The Partnership initially appoints The Depository Trust Company to act as Depositary with
respect to the Book-Entry Notes.

SECTION 2.2 Title, Amount and Payment of Principal and Interest.

     (a) The 2013 Notes shall be entitled the “6.000% Senior Notes due 2013”. The Trustee shall
authenticate and deliver (i) the 2013 Notes for original issue on the date hereof (the “Original
2013 Notes”) in the aggregate principal amount of $350,000,000, and (ii) additional 2013 Notes for
original issue from time to time after the date hereof in such principal amounts as may be
specified in a Partnership Order described in this sentence, in each case upon a Partnership Order
for the authentication and delivery thereof and satisfaction of the other provisions of Section
2.04 of the Base Indenture. Such order shall specify the amount of the 2013 Notes to be
authenticated, the date on which the original issue of 2013 Notes is to be authenticated, and the
name or names of the initial Holder or Holders. The aggregate principal amount of 2013 Notes that
may be outstanding at any time may not exceed $350,000,000 plus such additional principal amounts
as may be issued and authenticated pursuant to clause (ii) of this paragraph (except as provided in
Section 2.09 of the Indenture). The Original 2013 Notes and any additional 2013 Notes issued and
authenticated pursuant to clause (ii) of this paragraph shall constitute a single series of Debt
Securities for all purposes under the Indenture.

     The principal amount of each 2013 Note shall be payable on July 1, 2013. Each 2013 Note shall
bear interest from the date of original issuance, or the most recent date to which interest has
been paid, at the fixed rate of 6.0% per annum. The dates on which interest on the 2013 Notes shall
be payable shall be January 1 and July 1 of each year, commencing July 1, 2008 (the “2013 Interest
Payment Dates”). The regular record date for interest payable on the 2013 Notes on any 2013
Interest Payment Date shall be December 15 or June 15, as the case may be, next preceding such 2013
Interest Payment Date.

     Payments of principal of, premium, if any, and interest due on the 2013 Notes representing
Book-Entry Notes on any 2013 Interest Payment Date or at maturity will be made available to the
Trustee by 10:00 a.m., New York City time, on such date, unless such date falls on a day which is
not a Business Day, in which case such payments will be made available to the Trustee by 10:00
a.m., New York City time, on the next Business Day. As soon as possible thereafter, the Trustee
will make such payments to the Depositary.

     (b) The 2018 Notes shall be entitled the “6.700% Senior Notes due 2018”. The Trustee shall
authenticate and deliver (i) the 2018 Notes for original issue on the date hereof (the “Original
2018 Notes”) in the aggregate principal amount of $600,000,000, and (ii) additional 2018 Notes for
original issue from time to time after the date hereof in such principal amounts as may be
specified in a Partnership Order described in this sentence, in each case upon a Partnership Order
for the authentication and delivery thereof and satisfaction of the other provisions of Section
2.04 of the Base Indenture. Such order shall specify the amount of the 2018 Notes to be
authenticated, the date on which the original issue of 2018 Notes is to be authenticated, and the
name or names of the initial Holder or Holders. The aggregate principal amount of 2018 Notes that
may be outstanding at any time may not exceed $600,000,000 plus such additional principal amounts
as may be issued and authenticated pursuant to clause (ii) of this paragraph (except as provided in
Section 2.09 of the Indenture). The Original 2018 Notes

7

 

and any additional 2018 Notes issued and authenticated pursuant to clause (ii) of this
paragraph shall constitute a single series of Debt Securities for all purposes under the Indenture.

     The principal amount of each 2018 Note shall be payable on July 1, 2018. Each 2018 Note shall
bear interest from the date of original issuance, or the most recent date to which interest has
been paid, at the fixed rate of 6.7% per annum. The dates on which interest on the 2018 Notes shall
be payable shall be January 1 and July 1 of each year, commencing July 1, 2008 (the “2018 Interest
Payment Dates”). The regular record date for interest payable on the 2018 Notes on any 2018
Interest Payment Date shall be December 15 or June 15, as the case may be, next preceding such 2018
Interest Payment Date.

     Payments of principal of, premium, if any, and interest due on the 2018 Notes representing
Book-Entry Notes on any 2018 Interest Payment Date or at maturity will be made available to the
Trustee by 10:00 a.m., New York City time, on such date, unless such date falls on a day which is
not a Business Day, in which case such payments will be made available to the Trustee by 10:00
a.m., New York City time, on the next Business Day. As soon as possible thereafter, the Trustee
will make such payments to the Depositary.

     (c) The 2038 Notes shall be entitled the “7.500% Senior Notes due 2038”. The Trustee shall
authenticate and deliver (i) the 2038 Notes for original issue on the date hereof (the “Original
2038 Notes”) in the aggregate principal amount of $550,000,000, and (ii) additional 2038 Notes for
original issue from time to time after the date hereof in such principal amounts as may be
specified in a Partnership Order described in this sentence, in each case upon a Partnership Order
for the authentication and delivery thereof and satisfaction of the other provisions of Section
2.04 of the Base Indenture. Such order shall specify the amount of the 2038 Notes to be
authenticated, the date on which the original issue of 2038 Notes is to be authenticated, and the
name or names of the initial Holder or Holders. The aggregate principal amount of 2038 Notes that
may be outstanding at any time may not exceed $550,000,000 plus such additional principal amounts
as may be issued and authenticated pursuant to clause (ii) of this paragraph (except as provided in
Section 2.09 of the Indenture). The Original 2038 Notes and any additional 2038 Notes issued and
authenticated pursuant to clause (ii) of this paragraph shall constitute a single series of Debt
Securities for all purposes under the Indenture.

     The principal amount of each 2038 Note shall be payable on July 1, 2038. Each 2038 Note shall
bear interest from the date of original issuance, or the most recent date to which interest has
been paid, at the fixed rate of 7.5% per annum. The dates on which interest on the 2038 Notes shall
be payable shall be January 1 and July 1 of each year, commencing July 1, 2008 (the “2038 Interest
Payment Dates”). The regular record date for interest payable on the 2038 Notes on any 2038
Interest Payment Date shall be December 15 or June 15, as the case may be, next preceding such 2038
Interest Payment Date.

     Payments of principal of, premium, if any, and interest due on the 2038 Notes representing
Book-Entry Notes on any 2038 Interest Payment Date or at maturity will be made available to the
Trustee by 10:00 a.m., New York City time, on such date, unless such date falls on a day which is
not a Business Day, in which case such payments will be made available to the Trustee by 10:00
a.m., New York City time, on the next Business Day. As soon as possible thereafter, the Trustee
will make such payments to the Depositary.

8

 

SECTION 2.3 Transfer and Exchange.

     (a) Transfer and Exchange of Global Notes. The transfer and exchange of Book-Entry Notes or
beneficial interests therein shall be effected through the Depositary, in accordance with Section
2.17 of the Base Indenture and Article II of this Sixth Supplemental Indenture (including the
restrictions on transfer set forth therein and herein) and the rules and procedures of the
Depositary therefor, which shall include restrictions on transfer comparable to those set forth
therein and herein to the extent required by the Securities Act of 1933, as amended.

ARTICLE III

FUTURE SUBSIDIARY GUARANTEES

SECTION 3.1 No Initial Guarantee of the Notes by Subsidiary Guarantors.

     The Notes initially shall not be entitled to the benefits of the Guarantee contemplated by
Article X of the Base Indenture.

SECTION 3.2 Future Subsidiary Guarantors.

     If any Subsidiary of the Partnership that is not then a Subsidiary Guarantor guarantees,
becomes a co-obligor with respect to or otherwise provides direct credit support for any
obligations of the Partnership or any of its other Subsidiaries under the Credit Agreement, then
the Partnership shall cause such Subsidiary to promptly execute and deliver to the Trustee a
supplemental indenture to the Indenture, in a form satisfactory to the Trustee, providing for the
Guarantee by such Subsidiary of the Partnership’s obligations under the Notes in accordance with
Article X of the Base Indenture.

SECTION 3.3 Release of Guarantees.

     In addition to the provisions of Section 10.04(a) of the Base Indenture, the Guarantee of the
Notes of any Subsidiary Guarantor shall be unconditionally released and discharged, following
delivery of written notice by the Partnership to the Trustee, upon the release and discharge of all
guarantees or other obligations of such Subsidiary Guarantor with respect to the obligations of the
Partnership or its Subsidiaries under the Credit Agreement.

SECTION 3.4 Reinstatement of Guarantees.

     If at any time following any release of the Guarantee of a Subsidiary Guarantor pursuant to
Section 3.3 above, such Subsidiary Guarantor again guarantees, becomes a co-obligor with respect to
or otherwise provides direct credit support for any obligations of the Partnership or any of its
Subsidiaries under the Credit Agreement, then such Subsidiary Guarantor shall again guarantee the
Partnership’s obligations under the Notes and the Partnership shall cause such Subsidiary Guarantor
to promptly execute and deliver a supplemental indenture to the Indenture, in a form satisfactory
to the Trustee, providing for the Guarantee by such Subsidiary Guarantor of the Partnership’s
obligations under the Notes in accordance with Article X of the Base Indenture.

9

 

ARTICLE IV

REDEMPTION

SECTION 4.1 Redemption.

     The Partnership shall have no obligation to redeem, purchase or repay the Notes pursuant to
any mandatory redemption, sinking fund or analogous provisions or at the option of a Holder
thereof.

     The 2013 Notes are redeemable, at the option of the Partnership, at any time in whole, or from
time to time in part, at a Redemption Price equal to the greater of: (i) 100% of the principal
amount of the 2013 Notes to be redeemed; or (ii) the sum of the present values of the remaining
scheduled payments of principal and interest (at the rate in effect on the date of calculation of
the Redemption Price) on the 2013 Notes to be redeemed that would be due after the related
Redemption Date but for such redemption (exclusive of interest accrued to the Redemption Date)
discounted to the Redemption Date on a semi-annual basis (assuming a 360-day year consisting of
twelve 30-day months) at the applicable Treasury Yield plus 50 basis points; plus, in either case,
accrued interest to the Redemption Date.

     The 2018 Notes are redeemable, at the option of the Partnership, at any time in whole, or from
time to time in part, at a Redemption Price equal to the greater of: (i) 100% of the principal
amount of the 2018 Notes to be redeemed; or (ii) the sum of the present values of the remaining
scheduled payments of principal and interest (at the rate in effect on the date of calculation of
the Redemption Price) on the 2018 Notes to be redeemed that would be due after the related
Redemption Date but for such redemption (exclusive of interest accrued to the Redemption Date)
discounted to the Redemption Date on a semi-annual basis (assuming a 360-day year consisting of
twelve 30-day months) at the applicable Treasury Yield plus 50 basis points; plus, in either case,
accrued interest to the Redemption Date.

     The 2038 Notes are redeemable, at the option of the Partnership, at any time in whole, or from
time to time in part, at a Redemption Price equal to the greater of: (i) 100% of the principal
amount of the 2038 Notes to be redeemed; or (ii) the sum of the present values of the remaining
scheduled payments of principal and interest (at the rate in effect on the date of calculation of
the Redemption Price) on the 2038 Notes to be redeemed that would be due after the related
Redemption Date but for such redemption (exclusive of interest accrued to the Redemption Date)
discounted to the Redemption Date on a semi-annual basis (assuming a 360-day year consisting of
twelve 30-day months) at the applicable Treasury Yield plus 50 basis points; plus, in either case,
accrued interest to the Redemption Date.

     The actual Redemption Price, calculated as provided above, shall be calculated and certified
to the Trustee and the Partnership by the Independent Investment Banker.

10

 

ARTICLE V

ADDITIONAL COVENANTS

     In addition to the covenants set forth in the Base Indenture, the Notes shall be entitled to
the benefit of the following covenants:

SECTION 5.1 Limitation on Liens.

     The Partnership shall not, nor shall it permit any of its Subsidiaries to, create, assume,
incur or suffer to exist any mortgage, lien, security interest, pledge, charge or other encumbrance
(“liens”) upon any Principal Property or upon any capital stock of any Restricted Subsidiary,
whether owned on the date hereof or thereafter acquired, to secure any Indebtedness of the
Partnership or any other Person (other than the Notes), without in any such case making effective
provisions whereby all of the outstanding Notes are secured equally and ratably with, or prior to,
such Indebtedness so long as such Indebtedness is so secured.

     Notwithstanding the foregoing, the Partnership may, and may permit any of its Subsidiaries to,
create, assume, incur, or suffer to exist without securing the Notes (a) any Permitted Lien, (b)
any lien upon any Principal Property or capital stock of a Restricted Subsidiary to secure
Indebtedness of the Partnership or any other Person, provided that the aggregate principal amount
of all Indebtedness then outstanding secured by such lien and all similar liens under this clause
(b), together with all Attributable Indebtedness from Sale-Leaseback Transactions (excluding
Sale-Leaseback Transactions permitted by clauses (1) through (4), inclusive, of Section 5.2
hereof), does not exceed 10% of Consolidated Net Tangible Assets or (c) any lien upon (i) any
Principal Property that was not owned by the Partnership or any of its Subsidiaries on the date
hereof or (ii) the capital stock of any Restricted Subsidiary that owns no Principal Property that
was owned by the Partnership or any of its Subsidiaries on the date hereof, in each case owned by a
Subsidiary of the Partnership (an “Excluded Subsidiary”) that (A) is not, and is not required to
be, a Subsidiary Guarantor and (B) has not granted any liens on any of its property securing
Indebtedness with recourse to the Partnership or any Subsidiary of the Partnership other than such
Excluded Subsidiary or any other Excluded Subsidiary.

SECTION 5.2 Restriction on Sale-Leasebacks.

     The Partnership will not, and will not permit any Subsidiary to, engage in the sale or
transfer by the Partnership or any of its Subsidiaries of any Principal Property to a Person (other
than the Partnership or a Subsidiary) and the taking back by the Partnership or its Subsidiary, as
the case may be, of a lease of such Principal Property (a “Sale-Leaseback Transaction”), unless:

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

     (2) the Sale-Leaseback Transaction involves a lease for a period, including renewals, of not
more than three years;

11

 

     (3) the Partnership or such Subsidiary would be entitled to incur Indebtedness secured by a
lien on the Principal Property subject thereto in a principal amount equal to or exceeding the
Attributable Indebtedness from such Sale-Leaseback Transaction without equally and ratably securing
the Notes; or

     (4) the Partnership or such Subsidiary, within a one-year period after such Sale-Leaseback
Transaction, applies or causes to be applied an amount not less than the Attributable Indebtedness
from such Sale-Leaseback Transaction to (a) the prepayment, repayment, redemption, reduction or
retirement of any Indebtedness of the Partnership or any of its Subsidiaries that is not
subordinated to the Notes or any Guarantee, or (b) the expenditure or expenditures for Principal
Property used or to be used in the ordinary course of business of Partnership or its Subsidiaries.

     Notwithstanding the foregoing, the Partnership may, and may permit any Subsidiary to, effect
any Sale-Leaseback Transaction that is not excepted by clauses (1) through (4), inclusive, of the
preceding paragraph provided that the Attributable Indebtedness from such Sale-Leaseback
Transaction, together with the aggregate principal amount of outstanding Indebtedness (other than
the Notes) secured by liens other than Permitted Liens upon Principal Properties, does not exceed
10% of Consolidated Net Tangible Assets.

ARTICLE VI

ADDITIONAL EVENT OF DEFAULT

SECTION 6.1 Additional Event of Default.

     In addition to the Events of Default specified in Section 6.01 of the Base Indenture, the
following shall be an Event of Default with respect to each series of the Notes: any Indebtedness
of the Partnership or any Subsidiary Guarantor is not paid within any applicable grace period after
final maturity or is accelerated by the holders thereof because of a default and the total amount
of such Indebtedness unpaid or accelerated exceeds $25,000,000.

ARTICLE VII

MISCELLANEOUS PROVISIONS

SECTION 7.1 Ratification of Base Indenture.

     The Base Indenture, as supplemented by this Sixth Supplemental Indenture, is in all respects
ratified and confirmed, and this Sixth Supplemental Indenture shall be deemed part of the Base
Indenture in the manner and to the extent herein and therein provided.

SECTION 7.2 Trustee Not Responsible for Recitals.

     The recitals contained herein and in the Notes, except with respect to the Trustee’s
certificates of authentication, shall be taken as the statements of the Partnership, and the
Trustee assumes no responsibility for the correctness of the same. The Trustee makes no
representations as to the validity or sufficiency of this Sixth Supplemental Indenture or of the
Notes.

12

 

SECTION 7.3 Table of Contents, Headings, etc.

     The table of contents and headings of the Articles and Sections of this Sixth Supplemental
Indenture have been inserted for convenience of reference only, are not to be considered a part
hereof and shall in no way modify or restrict any of the terms or provisions hereof.

SECTION 7.4 Counterpart Originals.

     The parties may sign any number of copies of this Sixth Supplemental Indenture. Each signed
copy shall be an original, but all of them together represent the same agreement.

SECTION 7.5 Governing Law.

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

[Signature Pages Follow]

13

 

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

	 	 	 	 	 	 	 
	 	 	ISSUER:	 	 
	 
	 	 	 	 	 	 
	 	 	ENERGY TRANSFER PARTNERS, L.P.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Energy Transfer Partners GP, L.P.,	 	 
	 

	 	Its:
	 	General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Energy Transfer Partners, L.L.C.	 	 
	 

	 	Its:
	 	General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	TRUSTEE:	 	 
	 
	 	 	 	 	 	 
	 	 	U.S. BANK NATIONAL ASSOCIATION	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:	 	 	 	 

Signature Page of Sixth Supplemental Indenture

 

 

Exhibit A-1

FORM OF NOTE

[FACE OF SECURITY]

     [UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
COMPANY (“DTC”) (55 WATER STREET, NEW YORK, NEW YORK 10041) TO THE PARTNERSHIP OR ITS AGENT FOR
REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME
OF CEDE & CO. OR SUCH OTHER NAME AS MAY BE REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND
ANY PAYMENT IS MADE TO CEDE & CO. OR SUCH OTHER ENTITY AS MAY BE REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO
ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
HEREIN.]*

     [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.]*

			
	 	 	 
	No.             
        
 	 	$                          

CUSIP                     

ENERGY TRANSFER PARTNERS, L.P.

6.000% SENIOR NOTES DUE 2013

     ENERGY TRANSFER PARTNERS, L.P., a Delaware limited partnership (the “Partnership,” which term
includes any successor under the Indenture hereinafter referred to), for value received, hereby
promises to pay to Cede & Co.* or its registered assigns, the principal sum
of                      U.S.
dollars ($                    ), [or such greater or lesser principal sum as is shown on the attached
Schedule of Increases and Decreases in Global Security]*, on July 1, 2013 in such
coin and currency of the United States of America as at the time of payment shall be legal tender
for the payment of public and private debts, and to pay interest thereon at an annual rate of 6.0%
payable on January 1 and July 1 of each year, to the person in whose name the Security is
registered at the close of business on the record date for such interest, which shall be the
preceding December 15 or June 15 (each, a “Regular Record Date”), respectively, payable

 

			
	*	 	To be included in a Book Entry Note.

A-1-2

 

commencing on July 1, 2008, with interest accruing from March 28, 2008, or the most recent
date to which interest shall have been paid.

     Reference is made to the further provisions of this Security set forth on the reverse hereof.
Such further provisions shall for all purposes have the same effect as though fully set forth at
this place.

     The statements in the legends set forth in this Security are an integral part of the terms of
this Security and by acceptance hereof the Holder of this Security agrees to be subject to, and
bound by, the terms and provisions set forth in each such legend.

     This Security is issued in respect of a series of Debt Securities of an initial aggregate of
$350,000,000 in principal amount designated as the 6.000% Senior Notes due 2013 of the Partnership
and is governed by the Indenture dated as of January 18, 2005 (the “Base Indenture”), duly executed
and delivered by the Partnership, as issuer, to Wachovia Bank, National Association, as trustee, as
supplemented by the Sixth Supplemental Indenture dated as of March 28, 2008, duly executed by the
Partnership and U.S. Bank National Association (the “Trustee”), as successor to Wachovia Bank,
National Association, (the “Sixth Supplemental Indenture”, and together with the Base Indenture,
the “Indenture”). The terms of the Indenture are incorporated herein by reference. This Security
shall in all respects be entitled to the same benefits as definitive Debt Securities under the
Indenture.

     If and to the extent any provision of the Indenture limits, qualifies or conflicts with any
other provision of the Indenture that is required to be included in the Indenture or is deemed
applicable to the Indenture by virtue of the provisions of the Trust Indenture Act of 1939, as
amended (the “TIA”), such required provision shall control.

     This Security shall not be valid or become obligatory for any purpose until the Trustee’s
Certificate of Authentication hereon shall have been manually signed by the Trustee under the
Indenture.

A-1-3

 

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

Dated:

	 	 	 	 	 	 	 
	 	 	ENERGY TRANSFER PARTNERS, L.P.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Energy Transfer Partners GP, L.P.	 	 
	 

	 	Its:
	 	General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Energy Transfer Partners, L.L.C.	 	 
	 

	 	Its:
	 	General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:	 	 	 	 

TRUSTEE’S CERTIFICATE OF AUTHENTICATION:

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

U.S. BANK NATIONAL ASSOCIATION,

as Trustee

	 	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

Authorized Signatory
	 	 

A-1-4

 

[REVERSE OF SECURITY]

ENERGY TRANSFER PARTNERS, L.P.

6.000% SENIOR NOTES DUE 2013

     This Security is one of a duly authorized issue of debentures, notes or other evidences of
indebtedness of the Partnership (the “Debt Securities”) of the series hereinafter specified, all
issued or to be issued under and pursuant to the Indenture, to which Indenture reference is hereby
made for a description of the rights, limitations of rights, obligations, duties and immunities
thereunder of the Trustee, the Partnership and the Holders of the Debt Securities. The Debt
Securities may be issued in one or more series, which different series may be issued in various
aggregate principal amounts, may mature at different times, may bear interest (if any) at different
rates, may be subject to different sinking, purchase or analogous funds (if any) and may otherwise
vary as provided in the Indenture. This Security is one of a series designated as the 6.000% Senior
Notes due 2013 of the Partnership, in initial aggregate principal amount of $350,000,000 (the
“Securities”).

	1.	 	Interest.

     The Partnership promises to pay interest on the principal amount of this Security at the rate
of 6.0% per annum.

     The Partnership will pay interest semi-annually on January 1 and July 1 of each year (each an
“Interest Payment Date”), commencing July 1, 2008. Interest on the Securities will accrue from the
most recent date to which interest has been paid or, if no interest has been paid on the
Securities, from March 28, 2008. Interest will be computed on the basis of a 360-day year
consisting of twelve 30-day months. The Partnership shall pay interest (including post-petition
interest in any proceeding under any applicable bankruptcy laws) on overdue installments of
interest (without regard to any applicable grace period) and on overdue principal and premium, if
any, from time to time on demand at the same rate per annum, in each case to the extent lawful.

	2.	 	Method of Payment.

     The Partnership shall pay interest on the Securities (except Defaulted Interest) to the
persons who are the registered Holders at the close of business on the Regular Record Date
immediately preceding the Interest Payment Date. Any such interest not so punctually paid or duly
provided for (“Defaulted Interest”) may be paid to the persons who are registered Holders at the
close of business on a special record date for the payment of such Defaulted Interest, or in any
other lawful manner not inconsistent with the requirements of any securities exchange on which such
Securities may then be listed if such manner of payment shall be deemed practicable by the Trustee,
as more fully provided in the Indenture. The Partnership shall pay principal, premium, if any, and
interest in such coin or currency of the United States of America as at the time of payment shall
be legal tender for payment of public and private debts. Payments in respect of a Global Security
(including principal, premium, if any, and interest) will be made by wire transfer of immediately
available funds to the accounts specified by the Depositary. Payments in respect of Securities in
definitive form (including principal, premium, if any, and interest) will be made at the office or
agency of the Partnership maintained for such purpose

A-1-5

 

within The City of New York, which initially will be at the corporate trust office of the
Trustee located at 100 Wall Street, Suite 1600, New York, New York 10005, Mail Station:
EX-NY-WALL, or, at the option of the Partnership, payment of interest may be made by check mailed
to the Holders on the relevant record date at their addresses set forth in the register of Holders
maintained by the Registrar or at the option of the Holder, payment of interest on Securities in
definitive form will be made by wire transfer of immediately available funds to any account
maintained in the United States, provided such Holder has requested such method of payment and
provided timely wire transfer instructions to the Paying Agent. The Holder must surrender this
Security to a Paying Agent to collect payment of principal.

	3.	 	Paying Agent and Registrar.

     Initially, U.S. Bank National Association will act as Paying Agent and Registrar. The
Partnership may change any Paying Agent or Registrar at any time upon notice to the Trustee and the
Holders. The Partnership may act as Paying Agent.

	4.	 	Indenture.

     This Security is one of a duly authorized issue of Debt Securities of the Partnership issued
and to be issued in one or more series under the Indenture.

     Capitalized terms herein are used as defined in the Indenture unless otherwise defined herein.
The terms of the Securities include those stated in the Base Indenture, those made part of the
Indenture by reference to the TIA, as in effect on the date of the Base Indenture, and those terms
stated in the Sixth Supplemental Indenture. The Securities are subject to all such terms, and
Holders of Securities are referred to the Base Indenture, the Sixth Supplemental Indenture and the
TIA for a statement of them. The Securities of this series are general unsecured obligations of the
Partnership limited to an initial aggregate principal amount of $350,000,000; provided, however,
that the authorized aggregate principal amount of such series may be increased from time to time as
provided in the Sixth Supplemental Indenture.

	5.	 	Redemption.

     The Securities are redeemable, at the option of the Partnership, at any time in whole, or from
time to time in part, at a Redemption Price equal to the greater of: (i) 100% of the principal
amount of the Securities to be redeemed; or (ii) the sum of the present values of the remaining
scheduled payments of principal and interest (at the rate in effect on the date of calculation of
the Redemption Price) on the Securities to be redeemed that would be due after the related
Redemption Date but for such redemption (exclusive of interest accrued to the Redemption Date)
discounted to the Redemption Date on a semi-annual basis (assuming a 360-day year consisting of
twelve 30-day months) at the applicable Treasury Yield plus 50 basis points; plus, in either case,
accrued interest to the Redemption Date.

     The actual Redemption Price, calculated as provided above, shall be calculated and certified
to the Trustee and the Partnership by the Independent Investment Banker.

     Except as set forth above, the Securities will not be redeemable prior to their Stated
Maturity and will not be entitled to the benefit of any sinking fund.

A-1-6

 

	6.	 	Denominations; Transfer; Exchange.

     The Securities are to be issued in registered form, without coupons, in denominations of
$1,000 and integral multiples of $1,000 in excess thereof. A Holder may register the transfer of,
or exchange, Securities in accordance with the Indenture. The Registrar may require a Holder, among
other things, to furnish appropriate endorsements and transfer documents and to pay any taxes and
fees required by law or permitted by the Indenture.

	7.	 	Person Deemed Owners.

     The registered Holder of a Security may be treated as the owner of it for all purposes.

	8.	 	Amendment; Supplement; Waiver.

     Subject to certain exceptions, the Indenture may be amended or supplemented, and any existing
Event of Default or compliance with any provision may be waived, with the consent of the Holders of
a majority in principal amount of the outstanding Debt Securities of each series affected. Without
consent of any Holder of a Security, the parties thereto may amend or supplement the Indenture to,
among other things, cure any ambiguity or omission, to correct any defect or inconsistency, or to
make any other change that does not adversely affect the rights of any Holder of a Security. Any
such consent or waiver by the Holder of this Security (unless revoked as provided in the Indenture)
shall be conclusive and binding upon such Holder and upon all future Holders and owners of this
Security and any Securities which may be issued in exchange or substitution herefor, irrespective
of whether or not any notation thereof is made upon this Security or such other Securities.

	9.	 	Defaults and Remedies.

     Certain events of bankruptcy or insolvency are Events of Default that will result in the
principal amount of the Securities, together with premium, if any, and accrued and unpaid interest
thereon, becoming due and payable immediately upon the occurrence of such Events of Default. If any
other Event of Default with respect to the Securities occurs and is continuing, then in every such
case the Trustee or the Holders of not less than 25% in aggregate principal amount of the
Securities then outstanding may declare the principal amount of all the Securities, together with
premium, if any, and accrued and unpaid interest thereon, to be due and payable immediately in the
manner and with the effect provided in the Indenture. Notwithstanding the preceding sentence,
however, if at any time after such a declaration of acceleration has been made, the Holders of a
majority in principal amount of the outstanding Securities, by written notice to the Trustee, may
rescind such declaration and annul its consequences if the rescission would not conflict with any
judgment or decree of a court already rendered and if all Events of Default with respect to the
Securities, other than the nonpayment of the principal, premium, if any, or interest which has
become due solely by such declaration acceleration, shall have been cured or shall have been
waived. No such rescission shall affect any subsequent default or shall impair any right consequent
thereon. Holders of Securities may not enforce the Indenture or the Securities except as provided
in the Indenture. The Trustee may require indemnity or security satisfactory to it before it
enforces the Indenture or the Securities. Subject to certain limitations,

A-1-7

 

Holders of a majority in aggregate principal amount of the Securities then outstanding may
direct the Trustee in its exercise of any trust or power.

	10.	 	Trustee Dealings with Partnership.

     The Trustee under the Indenture, in its individual or any other capacity, may make loans to,
accept deposits from, and perform services for the Partnership or its Affiliates, and may otherwise
deal with the Partnership or its Affiliates as if it were not the Trustee.

	11.	 	Authentication.

     This Security shall not be valid until the Trustee signs the certificate of authentication on
the other side of this Security.

	12.	 	Abbreviations and Defined Terms.

     Customary abbreviations may be used in the name of a Holder of a Security or an assignee, such
as: TEN COM (tenant in common), TEN ENT (tenants by the entireties), JT TEN (joint tenants with
right of survivorship and not as tenants in common), CUST (Custodian), and U/G/M/A (Uniform Gifts
to Minors Act).

	13.	 	CUSIP Numbers.

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

	14.	 	Absolute Obligation.

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

	15.	 	No Recourse.

     No director, officer, employee, limited partner or shareholder, as such, of the Partnership or
the General Partner shall have any personal liability in respect of the obligations of the
Partnership under the Securities, the Indenture or any Guarantee by reason of his, her or its
status. Each Holder by accepting the Securities waives and releases all such liability. The waiver
and release are part of the consideration for issuance of the Securities.

	16.	 	Governing Law.

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

A-1-8

 

ABBREVIATIONS

The following abbreviations, when used in the inscription on the face of this instrument, shall be
construed as though they were written out in full according to applicable laws or regulations:

	 	 	 
	TEN COM — as tenants in common

	 	UNIF GIFT MIN ACT -
(Cust.)
	 
	 	 
	TEN ENT — as tenants by entireties

	 	Custodian for: (Minor)
	 
	 	 
	JT TEN — as joint tenants with right
of survivorship and not as tenants in
common

	 	Under Uniform Gifts to Minors Act of
(State)

Additional abbreviations may also be used though not in the above list.

ASSIGNMENT

FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s) unto

PLEASE INSERT SOCIAL SECURITY OR OTHER

IDENTIFYING NUMBER OF ASSIGNEE

Please print or type name and address including postal zip code of assignee:

the within Security and all rights thereunder, hereby irrevocably constituting and appointing to
transfer said Security on the books of the Partnership, with full power of substitution in the
premises.

	 	 	 
	Dated

	 	Registered Holder

A-1-9

 

SCHEDULE OF INCREASES OR DECREASES

IN GLOBAL SECURITY*

     The following increases or decreases in this Global Security have been made:

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	Amount of Decrease	 	Amount of Increase	 	Principal Amount of	 	 
	 	 	in Principal Amount	 	in Principal Amount	 	this Global Security	 	Signature of
	 	 	of this Global	 	of this Global	 	following such	 	authorized officer of
	Date of Exchange	 	Security	 	Security	 	decrease (or increase)	 	Trustee or Depositary
	 

	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 

 

			
	*	 	To be included in a Book-Entry Note.

A-1-10

 

Exhibit A-2

FORM OF NOTE

[FACE OF SECURITY]

     [UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
COMPANY (“DTC”) (55 WATER STREET, NEW YORK, NEW YORK 10041) TO THE PARTNERSHIP OR ITS AGENT FOR
REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME
OF CEDE & CO. OR SUCH OTHER NAME AS MAY BE REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND
ANY PAYMENT IS MADE TO CEDE & CO. OR SUCH OTHER ENTITY AS MAY BE REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO
ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
HEREIN.]*

     [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.]*

			
	 	 	 
	No.
               
 	 	$                          

CUSIP                     

ENERGY TRANSFER PARTNERS, L.P.

6.700% SENIOR NOTES DUE 2018

     ENERGY TRANSFER PARTNERS, L.P., a Delaware limited partnership (the “Partnership,” which term
includes any successor under the Indenture hereinafter referred to), for value received, hereby
promises to pay to Cede & Co.* or its registered assigns, the principal sum

of                      U.S.
dollars ($                    ), [or such greater or lesser principal sum as is shown on the attached
Schedule of Increases and Decreases in Global Security]*, on July 1, 2018 in such
coin and currency of the United States of America as at the time of payment shall be legal tender
for the payment of public and private debts, and to pay interest thereon at an annual rate of 6.7%
payable on January 1 and July 1 of each year, to the person in whose name the Security is
registered at the close of business on the record date for such interest, which shall be the
preceding December 15 or June 15 (each, a “Regular Record Date”), respectively, payable

 

			
	*	 	To be included in Book Entry Note.

A-2-1

 

commencing on July 1, 2008, with interest accruing from March 28, 2008, or the most recent
date to which interest shall have been paid.

     Reference is made to the further provisions of this Security set forth on the reverse hereof.
Such further provisions shall for all purposes have the same effect as though fully set forth at
this place.

     The statements in the legends set forth in this Security are an integral part of the terms of
this Security and by acceptance hereof the Holder of this Security agrees to be subject to, and
bound by, the terms and provisions set forth in each such legend.

     This Security is issued in respect of a series of Debt Securities of an initial aggregate of
$600,000,000 in principal amount designated as the 6.700% Senior Notes due 2018 of the Partnership
and is governed by the Indenture dated as of January 18, 2005 (the “Base Indenture”), duly executed
and delivered by the Partnership, as issuer, to Wachovia Bank, National Association, as trustee, as
supplemented by the Sixth Supplemental Indenture dated as of March 28, 2008, duly executed by the
Partnership and U.S. Bank National Association (the “Trustee”), as successor to Wachovia Bank,
National Association, (the “Sixth Supplemental Indenture”, and together with the Base Indenture,
the “Indenture”). The terms of the Indenture are incorporated herein by reference. This Security
shall in all respects be entitled to the same benefits as definitive Debt Securities under the
Indenture.

     If and to the extent any provision of the Indenture limits, qualifies or conflicts with any
other provision of the Indenture that is required to be included in the Indenture or is deemed
applicable to the Indenture by virtue of the provisions of the Trust Indenture Act of 1939, as
amended (the “TIA”), such required provision shall control.

     This Security shall not be valid or become obligatory for any purpose until the Trustee’s
Certificate of Authentication hereon shall have been manually signed by the Trustee under the
Indenture.

A-2-2

 

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

Dated:

	 	 	 	 	 	 	 
	 	 	ENERGY TRANSFER PARTNERS, L.P.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Energy Transfer Partners GP, L.P.	 	 
	 

	 	Its:
	 	General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Energy Transfer Partners, L.L.C.	 	 
	 

	 	Its:
	 	General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:
	 	 

	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:
	 	 

	 	 
	 

	 	 	 	 

	 	 

TRUSTEE’S CERTIFICATE OF AUTHENTICATION:

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

U.S. BANK NATIONAL ASSOCIATION,

as Trustee

	 	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

Authorized Signatory
	 	 

A-2-3

 

[REVERSE OF SECURITY]

ENERGY TRANSFER PARTNERS, L.P.

6.700% SENIOR NOTES DUE 2018

     This Security is one of a duly authorized issue of debentures, notes or other evidences of
indebtedness of the Partnership (the “Debt Securities”) of the series hereinafter specified, all
issued or to be issued under and pursuant to the Indenture, to which Indenture reference is hereby
made for a description of the rights, limitations of rights, obligations, duties and immunities
thereunder of the Trustee, the Partnership and the Holders of the Debt Securities. The Debt
Securities may be issued in one or more series, which different series may be issued in various
aggregate principal amounts, may mature at different times, may bear interest (if any) at different
rates, may be subject to different sinking, purchase or analogous funds (if any) and may otherwise
vary as provided in the Indenture. This Security is one of a series designated as the 6.700% Senior
Notes due 2018 of the Partnership, in initial aggregate principal amount of $600,000,000 (the
“Securities”).

	1.	 	Interest.

     The Partnership promises to pay interest on the principal amount of this Security at the rate
of 6.7% per annum.

     The Partnership will pay interest semi-annually on January 1 and July 1 of each year (each an
“Interest Payment Date”), commencing July 1, 2008. Interest on the Securities will accrue from the
most recent date to which interest has been paid or, if no interest has been paid on the
Securities, from March 28, 2008. Interest will be computed on the basis of a 360-day year
consisting of twelve 30-day months. The Partnership shall pay interest (including post-petition
interest in any proceeding under any applicable bankruptcy laws) on overdue installments of
interest (without regard to any applicable grace period) and on overdue principal and premium, if
any, from time to time on demand at the same rate per annum, in each case to the extent lawful.

	2.	 	Method of Payment.

     The Partnership shall pay interest on the Securities (except Defaulted Interest) to the
persons who are the registered Holders at the close of business on the Regular Record Date
immediately preceding the Interest Payment Date. Any such interest not so punctually paid or duly
provided for (“Defaulted Interest”) may be paid to the persons who are registered Holders at the
close of business on a special record date for the payment of such Defaulted Interest, or in any
other lawful manner not inconsistent with the requirements of any securities exchange on which such
Securities may then be listed if such manner of payment shall be deemed practicable by the Trustee,
as more fully provided in the Indenture. The Partnership shall pay principal, premium, if any, and
interest in such coin or currency of the United States of America as at the time of payment shall
be legal tender for payment of public and private debts. Payments in respect of a Global Security
(including principal, premium, if any, and interest) will be made by wire transfer of immediately
available funds to the accounts specified by the Depositary. Payments in respect of Securities in
definitive form (including principal, premium, if any, and interest) will be made at the office or
agency of the Partnership maintained for such purpose

A-2-4

 

within The City of New York, which initially will be at the corporate trust office of the
Trustee located at 100 Wall Street, Suite 1600, New York, New York 10005, Mail Station:
EX-NY-WALL, or, at the option of the Partnership, payment of interest may be made by check mailed
to the Holders on the relevant record date at their addresses set forth in the register of Holders
maintained by the Registrar or at the option of the Holder, payment of interest on Securities in
definitive form will be made by wire transfer of immediately available funds to any account
maintained in the United States, provided such Holder has requested such method of payment and
provided timely wire transfer instructions to the Paying Agent. The Holder must surrender this
Security to a Paying Agent to collect payment of principal.

	3.	 	Paying Agent and Registrar.

     Initially, U.S. Bank National Association will act as Paying Agent and Registrar. The
Partnership may change any Paying Agent or Registrar at any time upon notice to the Trustee and the
Holders. The Partnership may act as Paying Agent.

	4.	 	Indenture.

     This Security is one of a duly authorized issue of Debt Securities of the Partnership issued
and to be issued in one or more series under the Indenture.

     Capitalized terms herein are used as defined in the Indenture unless otherwise defined herein.
The terms of the Securities include those stated in the Base Indenture, those made part of the
Indenture by reference to the TIA, as in effect on the date of the Base Indenture, and those terms
stated in the Sixth Supplemental Indenture. The Securities are subject to all such terms, and
Holders of Securities are referred to the Base Indenture, the Sixth Supplemental Indenture and the
TIA for a statement of them. The Securities of this series are general unsecured obligations of the
Partnership limited to an initial aggregate principal amount of $600,000,000; provided, however,
that the authorized aggregate principal amount of such series may be increased from time to time as
provided in the Sixth Supplemental Indenture.

	5.	 	Redemption.

     The Securities are redeemable, at the option of the Partnership, at any time in whole, or from
time to time in part, at a Redemption Price equal to the greater of: (i) 100% of the principal
amount of the Securities to be redeemed; or (ii) the sum of the present values of the remaining
scheduled payments of principal and interest (at the rate in effect on the date of calculation of
the Redemption Price) on the Securities to be redeemed that would be due after the related
Redemption Date but for such redemption (exclusive of interest accrued to the Redemption Date)
discounted to the Redemption Date on a semi-annual basis (assuming a 360-day year consisting of
twelve 30-day months) at the applicable Treasury Yield plus 50 basis points; plus, in either case,
accrued interest to the Redemption Date.

     The actual Redemption Price, calculated as provided above, shall be calculated and certified
to the Trustee and the Partnership by the Independent Investment Banker.

     Except as set forth above, the Securities will not be redeemable prior to their Stated
Maturity and will not be entitled to the benefit of any sinking fund.

A-2-5

 

	6.	 	Denominations; Transfer; Exchange.

     The Securities are to be issued in registered form, without coupons, in denominations of
$1,000 and integral multiples of $1,000 in excess thereof. A Holder may register the transfer of,
or exchange, Securities in accordance with the Indenture. The Registrar may require a Holder, among
other things, to furnish appropriate endorsements and transfer documents and to pay any taxes and
fees required by law or permitted by the Indenture.

	7.	 	Person Deemed Owners.

     The registered Holder of a Security may be treated as the owner of it for all purposes.

	8.	 	Amendment; Supplement; Waiver.

     Subject to certain exceptions, the Indenture may be amended or supplemented, and any existing
Event of Default or compliance with any provision may be waived, with the consent of the Holders of
a majority in principal amount of the outstanding Debt Securities of each series affected. Without
consent of any Holder of a Security, the parties thereto may amend or supplement the Indenture to,
among other things, cure any ambiguity or omission, to correct any defect or inconsistency, or to
make any other change that does not adversely affect the rights of any Holder of a Security. Any
such consent or waiver by the Holder of this Security (unless revoked as provided in the Indenture)
shall be conclusive and binding upon such Holder and upon all future Holders and owners of this
Security and any Securities which may be issued in exchange or substitution herefor, irrespective
of whether or not any notation thereof is made upon this Security or such other Securities.

	9.	 	Defaults and Remedies.

     Certain events of bankruptcy or insolvency are Events of Default that will result in the
principal amount of the Securities, together with premium, if any, and accrued and unpaid interest
thereon, becoming due and payable immediately upon the occurrence of such Events of Default. If any
other Event of Default with respect to the Securities occurs and is continuing, then in every such
case the Trustee or the Holders of not less than 25% in aggregate principal amount of the
Securities then outstanding may declare the principal amount of all the Securities, together with
premium, if any, and accrued and unpaid interest thereon, to be due and payable immediately in the
manner and with the effect provided in the Indenture. Notwithstanding the preceding sentence,
however, if at any time after such a declaration of acceleration has been made, the Holders of a
majority in principal amount of the outstanding Securities, by written notice to the Trustee, may
rescind such declaration and annul its consequences if the rescission would not conflict with any
judgment or decree of a court already rendered and if all Events of Default with respect to the
Securities, other than the nonpayment of the principal, premium, if any, or interest which has
become due solely by such declaration acceleration, shall have been cured or shall have been
waived. No such rescission shall affect any subsequent default or shall impair any right consequent
thereon. Holders of Securities may not enforce the Indenture or the Securities except as provided
in the Indenture. The Trustee may require indemnity or security satisfactory to it before it
enforces the Indenture or the Securities. Subject to certain limitations,

A-2-6

 

Holders of a majority in aggregate principal amount of the Securities then outstanding may
direct the Trustee in its exercise of any trust or power.

	10.	 	Trustee Dealings with Partnership.

     The Trustee under the Indenture, in its individual or any other capacity, may make loans to,
accept deposits from, and perform services for the Partnership or its Affiliates, and may otherwise
deal with the Partnership or its Affiliates as if it were not the Trustee.

	11.	 	Authentication.

     This Security shall not be valid until the Trustee signs the certificate of authentication on
the other side of this Security.

	12.	 	Abbreviations and Defined Terms.

     Customary abbreviations may be used in the name of a Holder of a Security or an assignee, such
as: TEN COM (tenant in common), TEN ENT (tenants by the entireties), JT TEN (joint tenants with
right of survivorship and not as tenants in common), CUST (Custodian), and U/G/M/A (Uniform Gifts
to Minors Act).

	13.	 	CUSIP Numbers.

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

	14.	 	Absolute Obligation.

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

	15.	 	No Recourse.

     No director, officer, employee, limited partner or shareholder, as such, of the Partnership or
the General Partner shall have any personal liability in respect of the obligations of the
Partnership under the Securities, the Indenture or any Guarantee by reason of his, her or its
status. Each Holder by accepting the Securities waives and releases all such liability. The waiver
and release are part of the consideration for issuance of the Securities.

	16.	 	Governing Law.

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

A-2-7

 

ABBREVIATIONS

The following abbreviations, when used in the inscription on the face of this instrument, shall be
construed as though they were written out in full according to applicable laws or regulations:

	 	 	 
	TEN COM — as tenants in common

	 	UNIF GIFT MIN ACT -
(Cust.)
	 
	 	 
	TEN ENT — as tenants by entireties

	 	Custodian for: (Minor)
	 
	 	 
	JT TEN — as joint tenants with right
of survivorship and not as tenants in
common

	 	Under Uniform Gifts to Minors Act of
(State)

Additional abbreviations may also be used though not in the above list.

ASSIGNMENT

FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s) unto

PLEASE INSERT SOCIAL SECURITY OR OTHER

IDENTIFYING NUMBER OF ASSIGNEE

	Please print or type name and address including postal zip code of assignee:

	the within Security and all rights thereunder, hereby irrevocably constituting and appointing to
transfer said Security on the books of the Partnership, with full power of substitution in the
premises.

	 	 	 
	Dated

	 	Registered Holder

A-2-8

 

SCHEDULE OF INCREASES OR DECREASES

IN GLOBAL SECURITY*

     The following increases or decreases in this Global Security have been made:

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	Amount of Decrease	 	Amount of Increase	 	Principal Amount of	 	 
	 	 	in Principal Amount	 	in Principal Amount	 	this Global Security	 	Signature of
	 	 	of this Global	 	of this Global	 	following such	 	authorized officer of
	Date of Exchange	 	Security	 	Security	 	decrease (or increase)	 	Trustee or Depositary
	 

	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 

 

			
	*	 	To be included in a Book-Entry Note.

A-2-9

 

Exhibit A-3

FORM OF NOTE

[FACE OF SECURITY]

     [UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
COMPANY (“DTC”) (55 WATER STREET, NEW YORK, NEW YORK 10041) TO THE PARTNERSHIP OR ITS AGENT FOR
REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME
OF CEDE & CO. OR SUCH OTHER NAME AS MAY BE REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND
ANY PAYMENT IS MADE TO CEDE & CO. OR SUCH OTHER ENTITY AS MAY BE REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO
ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
HEREIN.]*

     [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.]*

			
	 	 	 
	No.
 
	 	$                     

CUSIP                     

ENERGY TRANSFER PARTNERS, L.P.

7.500% SENIOR NOTES DUE 2038

     ENERGY TRANSFER PARTNERS, L.P., a Delaware limited partnership (the “Partnership,” which term
includes any successor under the Indenture hereinafter referred to), for value received, hereby
promises to pay to Cede &
Co.* or its registered assigns, the principal sum of
U.S. dollars ($ ), [or such greater or lesser principal sum as is shown on the attached Schedule
of Increases and Decreases in Global Security]*, on July 1, 2038 in such coin and currency of the
United States of America as at the time of payment shall be legal tender for the payment of public
and private debts, and to pay interest thereon at an annual rate of 7.5% payable on January 1 and
July 1 of each year, to the person in whose name the Security is registered at the close of
business on the record date for such interest, which shall be the preceding December 15 or June 15
(each, a “Regular Record Date”), respectively, payable commencing on July 1, 2008, with interest
accruing from March 28, 2008, or the most recent date to which interest shall have been paid.

 

			
	*	 	To be included in a Book Entry Note.

A-3-1

 

     Reference is made to the further provisions of this Security set forth on the reverse hereof.
Such further provisions shall for all purposes have the same effect as though fully set forth at
this place.

     The statements in the legends set forth in this Security are an integral part of the terms of
this Security and by acceptance hereof the Holder of this Security agrees to be subject to, and
bound by, the terms and provisions set forth in each such legend.

     This Security is issued in respect of a series of Debt Securities of an initial aggregate of
$550,000,000 in principal amount designated as the 7.500% Senior Notes due 2038 of the Partnership
and is governed by the Indenture dated as of January 18, 2005 (the “Base Indenture”), duly executed
and delivered by the Partnership, as issuer, to Wachovia Bank, National Association, as trustee, as
supplemented by the Sixth Supplemental Indenture dated as of March 28, 2008, duly executed by the
Partnership and U.S. Bank National Association (the “Trustee”), as successor to Wachovia Bank,
National Association, (the “Sixth Supplemental Indenture”, and together with the Base Indenture,
the “Indenture”). The terms of the Indenture are incorporated herein by reference. This Security
shall in all respects be entitled to the same benefits as definitive Debt Securities under the
Indenture.

     If and to the extent any provision of the Indenture limits, qualifies or conflicts with any
other provision of the Indenture that is required to be included in the Indenture or is deemed
applicable to the Indenture by virtue of the provisions of the Trust Indenture Act of 1939, as
amended (the “TIA”), such required provision shall control.

     This Security shall not be valid or become obligatory for any purpose until the Trustee’s
Certificate of Authentication hereon shall have been manually signed by the Trustee under the
Indenture.

A-3-2

 

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

Dated:

	 	 	 	 	 	 	 
	 	 	ENERGY TRANSFER PARTNERS, L.P.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Energy Transfer Partners GP, L.P.	 	 
	 

	 	Its:
	 	General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Energy Transfer Partners, L.L.C.	 	 
	 

	 	Its:
	 	General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:
	 	 

	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:
	 	 

	 	 
	 

	 	 	 	 

	 	 

TRUSTEE’S CERTIFICATE OF AUTHENTICATION:

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

U.S. BANK NATIONAL ASSOCIATION,

as Trustee

	 	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

Authorized Signatory
	 	 

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[REVERSE OF SECURITY]

ENERGY TRANSFER PARTNERS, L.P.

7.500% SENIOR NOTES DUE 2038 

     This Security is one of a duly authorized issue of debentures, notes or other evidences of
indebtedness of the Partnership (the “Debt Securities”) of the series hereinafter specified, all
issued or to be issued under and pursuant to the Indenture, to which Indenture reference is hereby
made for a description of the rights, limitations of rights, obligations, duties and immunities
thereunder of the Trustee, the Partnership and the Holders of the Debt Securities. The Debt
Securities may be issued in one or more series, which different series may be issued in various
aggregate principal amounts, may mature at different times, may bear interest (if any) at different
rates, may be subject to different sinking, purchase or analogous funds (if any) and may otherwise
vary as provided in the Indenture. This Security is one of a series designated as the 7.500% Senior
Notes due 2038 of the Partnership, in initial aggregate principal amount of $550,000,000 (the
“Securities”).

	1.	 	Interest.

     The Partnership promises to pay interest on the principal amount of this Security at the rate
of 7.5% per annum.

     The Partnership will pay interest semi-annually on January 1 and July 1 of each year (each an
“Interest Payment Date”), commencing July 1, 2008. Interest on the Securities will accrue from the
most recent date to which interest has been paid or, if no interest has been paid on the
Securities, from March 28, 2008. Interest will be computed on the basis of a 360-day year
consisting of twelve 30-day months. The Partnership shall pay interest (including post-petition
interest in any proceeding under any applicable bankruptcy laws) on overdue installments of
interest (without regard to any applicable grace period) and on overdue principal and premium, if
any, from time to time on demand at the same rate per annum, in each case to the extent lawful.

	2.	 	Method of Payment.

     The Partnership shall pay interest on the Securities (except Defaulted Interest) to the
persons who are the registered Holders at the close of business on the Regular Record Date
immediately preceding the Interest Payment Date. Any such interest not so punctually paid or duly
provided for (“Defaulted Interest”) may be paid to the persons who are registered Holders at the
close of business on a special record date for the payment of such Defaulted Interest, or in any
other lawful manner not inconsistent with the requirements of any securities exchange on which such
Securities may then be listed if such manner of payment shall be deemed practicable by the Trustee,
as more fully provided in the Indenture. The Partnership shall pay principal, premium, if any, and
interest in such coin or currency of the United States of America as at the time of payment shall
be legal tender for payment of public and private debts. Payments in respect of a Global Security
(including principal, premium, if any, and interest) will be made by wire transfer of immediately
available funds to the accounts specified by the Depositary. Payments in respect of Securities in
definitive form (including principal, premium, if any, and interest) will be made at the office or
agency of the Partnership maintained for such purpose

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within The City of New York, which initially will be at the corporate trust office of the
Trustee located at 100 Wall Street, Suite 1600, New York, New York 10005, Mail Station:
EX-NY-WALL, or, at the option of the Partnership, payment of interest may be made by check mailed
to the Holders on the relevant record date at their addresses set forth in the register of Holders
maintained by the Registrar or at the option of the Holder, payment of interest on Securities in
definitive form will be made by wire transfer of immediately available funds to any account
maintained in the United States, provided such Holder has requested such method of payment and
provided timely wire transfer instructions to the Paying Agent. The Holder must surrender this
Security to a Paying Agent to collect payment of principal.

	3.	 	Paying Agent and Registrar.

     Initially, U.S. Bank National Association will act as Paying Agent and Registrar. The
Partnership may change any Paying Agent or Registrar at any time upon notice to the Trustee and the
Holders. The Partnership may act as Paying Agent.

	4.	 	Indenture.

     This Security is one of a duly authorized issue of Debt Securities of the Partnership issued
and to be issued in one or more series under the Indenture.

     Capitalized terms herein are used as defined in the Indenture unless otherwise defined herein.
The terms of the Securities include those stated in the Base Indenture, those made part of the
Indenture by reference to the TIA, as in effect on the date of the Base Indenture, and those terms
stated in the Sixth Supplemental Indenture. The Securities are subject to all such terms, and
Holders of Securities are referred to the Base Indenture, the Sixth Supplemental Indenture and the
TIA for a statement of them. The Securities of this series are general unsecured obligations of the
Partnership limited to an initial aggregate principal amount of $550,000,000; provided, however,
that the authorized aggregate principal amount of such series may be increased from time to time as
provided in the Sixth Supplemental Indenture.

	5.	 	Redemption.

     The Securities are redeemable, at the option of the Partnership, at any time in whole, or from
time to time in part, at a Redemption Price equal to the greater of: (i) 100% of the principal
amount of the Securities to be redeemed; or (ii) the sum of the present values of the remaining
scheduled payments of principal and interest (at the rate in effect on the date of calculation of
the Redemption Price) on the Securities to be redeemed that would be due after the related
Redemption Date but for such redemption (exclusive of interest accrued to the Redemption Date)
discounted to the Redemption Date on a semi-annual basis (assuming a 360-day year consisting of
twelve 30-day months) at the applicable Treasury Yield plus 50 basis points; plus, in either case,
accrued interest to the Redemption Date.

     The actual Redemption Price, calculated as provided above, shall be calculated and certified
to the Trustee and the Partnership by the Independent Investment Banker.

     Except as set forth above, the Securities will not be redeemable prior to their Stated
Maturity and will not be entitled to the benefit of any sinking fund.

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	6.	 	Denominations; Transfer; Exchange.

     The Securities are to be issued in registered form, without coupons, in denominations of
$1,000 and integral multiples of $1,000 in excess thereof. A Holder may register the transfer of,
or exchange, Securities in accordance with the Indenture. The Registrar may require a Holder, among
other things, to furnish appropriate endorsements and transfer documents and to pay any taxes and
fees required by law or permitted by the Indenture.

	7.	 	Person Deemed Owners.

     The registered Holder of a Security may be treated as the owner of it for all purposes.

	8.	 	Amendment; Supplement; Waiver.

     Subject to certain exceptions, the Indenture may be amended or supplemented, and any existing
Event of Default or compliance with any provision may be waived, with the consent of the Holders of
a majority in principal amount of the outstanding Debt Securities of each series affected. Without
consent of any Holder of a Security, the parties thereto may amend or supplement the Indenture to,
among other things, cure any ambiguity or omission, to correct any defect or inconsistency, or to
make any other change that does not adversely affect the rights of any Holder of a Security. Any
such consent or waiver by the Holder of this Security (unless revoked as provided in the Indenture)
shall be conclusive and binding upon such Holder and upon all future Holders and owners of this
Security and any Securities which may be issued in exchange or substitution herefor, irrespective
of whether or not any notation thereof is made upon this Security or such other Securities.

	9.	 	Defaults and Remedies.

     Certain events of bankruptcy or insolvency are Events of Default that will result in the
principal amount of the Securities, together with premium, if any, and accrued and unpaid interest
thereon, becoming due and payable immediately upon the occurrence of such Events of Default. If any
other Event of Default with respect to the Securities occurs and is continuing, then in every such
case the Trustee or the Holders of not less than 25% in aggregate principal amount of the
Securities then outstanding may declare the principal amount of all the Securities, together with
premium, if any, and accrued and unpaid interest thereon, to be due and payable immediately in the
manner and with the effect provided in the Indenture. Notwithstanding the preceding sentence,
however, if at any time after such a declaration of acceleration has been made, the Holders of a
majority in principal amount of the outstanding Securities, by written notice to the Trustee, may
rescind such declaration and annul its consequences if the rescission would not conflict with any
judgment or decree of a court already rendered and if all Events of Default with respect to the
Securities, other than the nonpayment of the principal, premium, if any, or interest which has
become due solely by such declaration acceleration, shall have been cured or shall have been
waived. No such rescission shall affect any subsequent default or shall impair any right consequent
thereon. Holders of Securities may not enforce the Indenture or the Securities except as provided
in the Indenture. The Trustee may require indemnity or security satisfactory to it before it
enforces the Indenture or the Securities. Subject to certain limitations,

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Holders of a majority in aggregate principal amount of the Securities then outstanding may
direct the Trustee in its exercise of any trust or power.

	10.	 	Trustee Dealings with Partnership.

     The Trustee under the Indenture, in its individual or any other capacity, may make loans to,
accept deposits from, and perform services for the Partnership or its Affiliates, and may otherwise
deal with the Partnership or its Affiliates as if it were not the Trustee.

     11. Authentication.

     This Security shall not be valid until the Trustee signs the certificate of authentication on
the other side of this Security.

	12.	 	Abbreviations and Defined Terms.

     Customary abbreviations may be used in the name of a Holder of a Security or an assignee, such
as: TEN COM (tenant in common), TEN ENT (tenants by the entireties), JT TEN (joint tenants with
right of survivorship and not as tenants in common), CUST (Custodian), and U/G/M/A (Uniform Gifts
to Minors Act).

	13.	 	CUSIP Numbers.

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

	14.	 	Absolute Obligation.

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

	15.	 	No Recourse.

     No director, officer, employee, limited partner or shareholder, as such, of the Partnership or
the General Partner shall have any personal liability in respect of the obligations of the
Partnership under the Securities, the Indenture or any Guarantee by reason of his, her or its
status. Each Holder by accepting the Securities waives and releases all such liability. The waiver
and release are part of the consideration for issuance of the Securities.

	16.	 	Governing Law.

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

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ABBREVIATIONS

     The following abbreviations, when used in the inscription on the face of this instrument,
shall be construed as though they were written out in full according to applicable laws or
regulations:

	 	 	 
	TEN COM — as tenants in common

	 	UNIF GIFT MIN ACT -
(Cust.)
	 
	 	 
	TEN ENT — as tenants by entireties

	 	Custodian for: (Minor)
	 
	 	 
	JT TEN — as joint tenants with right
of survivorship and not as tenants in
common

	 	Under Uniform Gifts to Minors Act of
(State)

     Additional abbreviations may also be used though not in the above list.

ASSIGNMENT

FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s) unto

PLEASE INSERT SOCIAL SECURITY OR OTHER

IDENTIFYING NUMBER OF ASSIGNEE

Please print or type name and address including postal zip code of assignee:

the within Security and all rights thereunder, hereby irrevocably constituting and appointing to
transfer said Security on the books of the Partnership, with full power of substitution in the
premises.

	 	 	 
	Dated

	 	Registered Holder

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SCHEDULE OF INCREASES OR DECREASES

IN GLOBAL SECURITY*

     The following increases or decreases in this Global Security have been made:

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	Amount of Decrease	 	Amount of Increase	 	Principal Amount of	 	 
	 	 	in Principal Amount	 	in Principal Amount	 	this Global Security	 	Signature of
	 	 	of this Global	 	of this Global	 	following such	 	authorized officer of
	Date of Exchange	 	Security	 	Security	 	decrease (or increase)	 	Trustee or Depositary
	 

	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 

 

			
	*	 	To be included in a Book-Entry Note

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