Document:

Second Supplemental Indenture

 Exhibit 4.2 
 Execution Version 
 MAGELLAN MIDSTREAM PARTNERS, L.P. 
 as Issuer 
 and 
 U.S. BANK NATIONAL ASSOCIATION 
 as
Trustee 
 $250,000,000 
 6.400% SENIOR NOTES DUE 2018 
 SECOND SUPPLEMENTAL INDENTURE 
 Dated as of July 14, 2008 

 TABLE OF CONTENTS 
  

					
	ARTICLE I
	ESTABLISHMENT OF NEW SERIES
	 Section 1.01
	  	Establishment of New Series	  	1
	
	ARTICLE II
	DEFINITIONS AND INCORPORATION BY REFERENCE
			
	 Section 2.01
	  	Definitions	  	2
	
	ARTICLE III
	THE NOTES
			
	 Section 3.01
	  	Form	  	4
	 Section 3.02
	  	Issuance of Additional Notes	  	4
	 Section 3.03
	  	Transfer of Notes	  	4
	 Section 3.04
	  	Restrictive Legend	  	5
	
	ARTICLE IV
	REDEMPTION
			
	 Section 4.01
	  	Optional Redemption	  	5
	 Section 4.02
	  	Mandatory Redemption	  	5
	
	ARTICLE V
	COVENANT SUPPLEMENTS AND AMENDMENTS
			
	 Section 5.01
	  	Covenants of the Partnership	  	5
	
	ARTICLE VI
	ADDITIONAL EVENT OF DEFAULTS
			
	 Section 6.01
	  	Events of Default	  	8
	
	ARTICLE VII
	MISCELLANEOUS
			
	 Section 7.01
	  	Integral Part	  	9
	 Section 7.02
	  	Adoption, Ratification and Confirmation	  	9
	 Section 7.03
	  	Counterparts	  	9
	 Section 7.04
	  	Governing Law	  	9
	 Section 7.05
	  	Trustee Makes No Representation	  	9
			
	 EXHIBIT A:
	  	Form of Note	  	
			
	 EXHIBIT B:
	  	Form of Supplemental Indenture	  	

  

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 SECOND SUPPLEMENTAL INDENTURE dated as of July 14, 2008 (this “Second Supplemental
Indenture”) between Magellan Midstream Partners, L.P., a Delaware limited partnership (the “Partnership” or the “Issuer”), and U.S. Bank National Association, a national banking
association, as trustee (the “Trustee”). 
 W I T N E S S E T H: 
 WHEREAS, the Issuer has heretofore entered into an Indenture, dated as of April 19, 2007 (the “Original Indenture”), with
U.S. Bank National Association, as trustee; 
 WHEREAS, the Original Indenture, as supplemented pursuant to this Second Supplemental
Indenture, is herein called the “Indenture”; 
 WHEREAS, the Issuer proposes to create under the Indenture a new
series of Debt Securities; 
 WHEREAS, the Issuer having heretofore entered into the First Supplemental Indenture dated as of April 19,
2007, in order to create an initial series of Debt Securities, the 6.400% Senior Notes due 2037; 
 WHEREAS, additional Debt Securities of
other series hereafter established, except as may be limited in the Original Indenture as at the time supplemented and modified, may be issued from time to time pursuant to the Original Indenture as at the time supplemented and modified by a
supplemental indenture; and 
 WHEREAS, all conditions necessary to authorize the execution and delivery of this Second Supplemental
Indenture and to make it a valid and binding obligation of the Issuer have been done or performed; 
 NOW, THEREFORE, in consideration of the
agreements and obligations set forth herein and for other good and valuable consideration, the sufficiency of which is hereby acknowledged, the parties hereto hereby agree as follows: 
 ARTICLE I 
 ESTABLISHMENT OF NEW SERIES 
 Section 1.01 Establishment of New Series. (a) There is hereby established a new series of Notes to be issued under the Indenture,
to be designated as the Issuer’s 6.400% Senior Notes due 2018 (the “Notes”). 
 (b) There are to
be authenticated and delivered $250,000,000 principal amount of Notes on the Issue Date, and from time to time thereafter there may be authenticated and delivered an unlimited principal amount of Additional Notes. 
 (c) The Notes shall be issued initially in the form of one or more Global Securities in substantially the form set out in Exhibit A
hereto. The Depositary with respect to the Notes shall be The Depository Trust Company. 
  

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 (d) Initially, there shall be no Subsidiary Guarantors. Each Note shall be dated the date
of authentication thereof and shall bear interest as provided in paragraph 1 of the form of Note in Exhibit A hereto. 
 (e)
If and to the extent that the provisions of the Original Indenture are duplicative of, or in contradiction with, the provisions of this Second Supplemental Indenture, the provisions of this Second Supplemental Indenture shall govern. 
 ARTICLE II 
 DEFINITIONS AND
INCORPORATION BY REFERENCE 
 Section 2.01 Definitions. All capitalized terms used herein and not otherwise defined
below shall have the meanings ascribed thereto in the Original Indenture. The following are additional definitions used in this Second Supplemental Indenture: 
 “Additional Notes” has the meaning assigned to it in Section 3.02 hereof. 
 “Consolidated Net Tangible Assets” means, at any date of determination, the total amount of assets after deducting therefrom (1) all current liabilities (excluding (A) any current liabilities that by their
terms are extendible or renewable at the option of the obligor thereon to a time more than 12 months after the time as of which the amount thereof is being computed, and (B) current maturities of long-term debt), and (2) the amount (net of
any applicable reserves) of all goodwill, trade names, trademarks, patents and other like intangible assets, all as set forth on the consolidated balance sheet of the Partnership and its consolidated subsidiaries for the Partnership’s most
recently completed fiscal quarter, prepared in accordance with GAAP. 
 “Debt” means any obligation created or
assumed by any Person for the repayment of money borrowed, any purchase money obligation created or assumed by such Person and any guarantee of the foregoing. 
 “Funded Debt” means all Debt maturing one year or more from the date of the creation thereof, all Debt directly or indirectly renewable or extendible, at the option of the debtor, by its terms
or by the terms of any instrument or agreement relating thereto, to a date one year or more from the date of the creation thereof, and all Debt under a revolving credit or similar agreement obligating the lender or lenders to extend credit over a
period of one year or more. 
 “Issue Date” means the date on which the Notes are initially issued. 
 “Lien” means, as to any Person, any mortgage, lien, pledge, security interest or other encumbrance in or on, or adverse interest
or title of any vendor, lessor, lender or other secured party to or of such Person under conditional sale or other title retention agreement or capital lease with respect to, any property or asset of such Person. 
 “Notes” has the meaning assigned to it in Section 1.01(a) hereof. 
 “Permitted Liens” means (1) Liens upon rights-of-way for pipeline purposes; (2) any statutory or governmental Lien,
mechanics’, materialmen’s, carriers’ or similar Lien incurred in the ordinary course of business which is not yet due or which is being contested in good faith by 

  

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appropriate proceedings and any undetermined Lien which is incidental to construction; (3) the 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 or assets; (4) 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 of which is being contested at the time by the Partnership or any Restricted Subsidiary in good faith; (5) Liens arising under, or
to secure performance of, leases, other than capital leases; (6) any Lien upon, or deposits of, any assets in favor of any surety company or clerk of court for the purpose of obtaining indemnity or stay of judicial proceedings; (7) any
Lien upon property or assets acquired or sold by the Partnership or any Restricted Subsidiary resulting from the exercise of any rights arising out of defaults on receivables; (8) 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; (9) any Lien in
favor of the United States of America or any state thereof, or any other country, or any political subdivision of any of the foregoing, to secure partial, progress, advance or other payments pursuant to any contract or statute, or any Lien securing
industrial development, pollution control or similar revenue bonds; or (10) any easements, exceptions or reservations in any property or assets of the Partnership or any Restricted Subsidiary granted or reserved for the purpose of pipelines,
roads, the removal of oil, gas, coal or other minerals, and other like purposes, or for the joint or common use of real property, facilities and equipment, which are incidental to, and do not materially interfere with, the ordinary conduct of its
business or the business of the Partnership and its Subsidiaries, taken as a whole. 
 “Person” means any individual,
corporation, partnership, joint venture, limited liability company, association, joint-stock company, trust, other entity, unincorporated organization or government or other agency or political subdivision thereof. 
 “Principal Property” means any pipeline, terminal or terminal facility property or asset owned or leased by the Partnership or
any Subsidiary, including any related property or asset employed in the transportation (including vehicles that generate transportation revenues), distribution, terminalling, gathering, treating, processing, marketing or storage of crude oil or
refined petroleum products, natural gas, natural gas liquids, fuel additives, petrochemicals or ammonia, except, in the case of, (1) any property or asset consisting of inventories, furniture, office fixtures and equipment (including data
processing equipment), vehicles and equipment used on, or useful with, vehicles (but excluding vehicles that generate transportation revenues as provided above), and (2) any such property or asset, plant or terminal which, in the opinion of the
Board of Directors, is not material in relation to the activities of the Partnership and its Subsidiaries, taken as a whole. 
 “Ratings Affirmation” means, with respect to any particular action or proposed action, each of Standard & Poor’s Rating Services and Moody’s Investors Service, Inc. or, if either or both of such
ratings agencies do not then rate the Notes, such other nationally recognized statistical rating organization (as defined in the rules and regulations of the SEC) then having issued long-term debt ratings for the Notes, affirms that such long-term
debt ratings will not be lowered as a result of the taking of such action or proposed action. 
  

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 “Restricted Subsidiary” means any Subsidiary of the Partnership that owns or
leases, directly or indirectly through ownership of or an ownership interest in another Subsidiary, any Principal Property. 
 “Sale-Leaseback Transaction” means the sale or transfer by the Partnership or any Restricted Subsidiary of any Principal Property to a Person (other than the Partnership or a Restricted Subsidiary) and the taking
back by the Partnership or any Restricted Subsidiary, as the case may be, of a lease of such Principal Property. 
 “Subsidiary” means, with respect to any Person, 
 (1) any other Person of which more than 50% of the total
voting power of capital interests (without regard to any contingency to vote in the election of directors, managers, trustees, or equivalent persons), at the time of such determination, is owned or controlled, directly or indirectly, by such Person
or one or more of the Subsidiaries of such Person; 
 (2) in the case of a partnership, any Person of which more than 50% of the
partners’ capital interests (considering all partners’ capital interests as a single class), at the time of such determination, is owned or controlled, directly or indirectly, by such Person or one or more of the Subsidiaries of such
Person; or 
 (3) any other Person in which such Person or one or more of the Subsidiaries of such Person have the power to control, by
contract or otherwise, the board of directors, managers, trustees or equivalent governing body of, or otherwise control, such other Person. 
 ARTICLE III 
 THE NOTES 
 Section 3.01 Form. The Notes shall be issued in the form of one or more Global Securities, and the Notes and Trustee’s certificate of authentication shall be substantially in the form of
Exhibit A hereto, the terms of which are incorporated in and made a part of this Second Supplemental Indenture, and the Issuer and the Trustee, by their execution and delivery of this Second Supplemental Indenture, expressly agree to such terms and
provisions and to be bound thereby. 
 Section 3.02 Issuance of Additional Notes. The Issuer may, from time to time, issue
an unlimited amount of additional Notes (“Additional Notes”) under the Indenture, which shall be issued in the same form as the Notes issued on the Issue Date and which shall have identical terms as the Notes issued on the
Issue Date other than with respect to the issue date, issue price and first payment of interest. The Notes issued on the Issue Date shall be limited in aggregate principal amount to $250,000,000. The Notes issued on the Issue Date and any Additional
Notes subsequently issued shall be treated as a single series for purposes of giving of notices, consents, waivers, amendments and taking any other action permitted under the Indenture and for purposes of interest accrual and redemptions.

 Section 3.03 Transfer of Notes. When Notes are presented to the Registrar with the request to register the transfer of
such Notes or exchange such Notes for an equal principal amount of Notes of other authorized denominations, the Registrar shall register the transfer or make the exchange in accordance with Article II of the Original Indenture. 
  

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 Section 3.04 Restrictive Legend. Each security certificate evidencing the Global
Securities shall bear a legend substantially in the form set forth in Section 2.15(a) of the Original Indenture. 
 ARTICLE IV 

 REDEMPTION 
 Section 4.01 Optional Redemption. 
 (a) At its option, the Issuer may choose to redeem all or any portion of
the Notes, at once or from time to time. 
 (b) To redeem the Notes, the Issuer must pay a redemption price in an amount
determined in accordance with the provisions of paragraph number 5 of the form of Note in Exhibit A hereto, plus accrued and unpaid interest, if any, to the Redemption Date (subject to the right of Holders on the relevant record date to receive
interest due on the relevant interest payment date). 
 (c) Any redemption pursuant to this Section 4.01 shall be made
pursuant to the provisions of Sections 3.01 through 3.03 of the Original Indenture. The actual redemption price, calculated as provided in paragraph number 5 of the form of Note in Exhibit A hereto, shall be certified in writing to the Issuer and
the Trustee by the Independent Investment Banker (as defined in such paragraph 5) no later than two Business Days prior to each Redemption Date. 
 Section 4.02 Mandatory Redemption. The Issuer shall not be required to make mandatory redemption or sinking fund payments with respect to the Notes and shall have no obligation to repurchase any Notes at the option of the
Holders. 
 ARTICLE V 
 COVENANT SUPPLEMENTS AND AMENDMENTS 
 Section 5.01 Covenants of the Partnership. 
 (a) Article IV of the Original Indenture is hereby supplemented, but only in relation to the Notes, by the addition of the following new
Sections at the end of Article IV: 
 “Section 4.12. Subsidiary Guarantees. If any Subsidiary of the
Partnership that is not then a Subsidiary Guarantor becomes a guarantor or co-obligor of any Funded Debt of the Partnership, in either case after the Issue Date, then the Partnership shall cause such Subsidiary to promptly execute and deliver a
supplemental Indenture, substantially in the form of Exhibit B hereto, providing for the Guarantee of the payment of the Notes pursuant to Article XIV hereof. 
  

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 Section 4.13. Limitations on Liens. The Partnership will not, nor will it
permit any Subsidiary to, create, assume, incur or suffer to exist any Lien upon any Principal Property or upon any capital stock of any Restricted Subsidiary, whether owned or leased on the date of this Indenture or thereafter acquired, to secure
any Debt of the Partnership or any other Person (other than the Debt Securities issued hereunder), without in any such case making effective provision whereby all of the Debt Securities Outstanding hereunder shall be secured equally and ratably
with, or prior to, such Debt so long as such Debt shall be so secured. This restriction shall not apply to or prevent the creation or existence of: 
 (a) any Lien on any property or assets of the Partnership or any Restricted Subsidiary in existence on the Issue Date or created pursuant to an “after-acquired property” clause or similar term in existence
on the Issue Date in any mortgage, pledge agreement, security agreement or other similar instrument applicable to the Partnership or any Restricted Subsidiary and in existence on the Issue Date; 
 (b) any Lien on any property or assets created at the time of acquisition of such property or assets by the Partnership or any Restricted
Subsidiary 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 of
such acquisition; 
 (c) any Lien on any property or assets existing thereon at the time of the acquisition thereof by the
Partnership or any Restricted Subsidiary (whether or not the obligations secured thereby are assumed by the Partnership or any Restricted Subsidiary), provided that such Lien only encumbers the property or assets so acquired; 
 (d) any Lien on any property or assets of a Person existing thereon at the time such Person becomes a Restricted Subsidiary by
acquisition, merger or otherwise, provided that such Lien is not incurred in anticipation of such Person becoming a Restricted Subsidiary; 
 (e) any Lien on any property or assets to secure all or part of the cost of construction, development, repair or improvements thereon or to secure Debt 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; 
 (f) any Lien in favor of the Partnership or any Restricted Subsidiary; 
 (g) any Lien created or assumed by the Partnership or any Restricted Subsidiary in connection with the issuance of Debt the interest on
which is excludable from gross income of the holder of such Debt pursuant to the Internal Revenue Code of 1986, as amended, or any successor statute, for the purpose of financing, in whole or in part, the acquisition or construction of property or
assets to be used by the Partnership or any Subsidiary; 
 (h) Permitted Liens; 
  

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 (i) any Lien on any additions, improvements, replacements, repairs, fixtures,
appurtenances or component parts thereof, attaching to or required to be attached to property or assets pursuant to the terms of any mortgage, pledge agreement, security agreement or other similar instrument, creating a Lien upon such property or
assets permitted by Clauses (a) through (h), inclusive, of this Section; or 
 (j) any extension, renewal, refinancing,
refunding or replacement (or successive extensions, renewals, refinancings, refundings or replacements) of any Lien, in whole or in part, that is referred to in Clauses (a) through (i), inclusive, of this Section, or of any Debt secured
thereby; provided, however, that the principal amount of Debt secured thereby shall not exceed the greater of (1) the principal amount of Debt so secured at the time of such extension, renewal, refinancing, refunding or replacement (plus the
aggregate amount of premiums, other payments, costs and expenses required to be paid or incurred in connection with such extension, renewal, refinancing, refunding or replacement) and (2) the maximum committed principal amount of Debt so
secured at such time; provided further, however, that such extension, renewal, refinancing, refunding or replacement shall be limited to all or a part of the property or assets (including improvements, alterations and repairs on such property or
assets) subject to the Lien so extended, renewed, refinanced, refunded or replaced (plus improvements, alterations and repairs on such property or assets). 
 Notwithstanding the foregoing provisions of this Section, the Partnership may, and may permit any Subsidiary to, create, assume, incur or suffer to exist any Lien upon any Principal Property or capital stock of a
Restricted Subsidiary to secure Debt of the Partnership or any other Person (other than the Debt Securities) that is not excepted by Clauses (a) through (j), inclusive, of this Section without securing the Debt Securities issued hereunder,
provided that the aggregate principal amount of all Debt then outstanding secured by such Lien and all other Liens not excepted by Clauses (a) through (j), inclusive, of this Section, together with all net sale proceeds from Sale-Leaseback
Transactions (excluding Sale-Leaseback Transactions permitted by Clauses (a) through (d), inclusive, of Section 4.14), does not exceed at any one time 15% of Consolidated Net Tangible Assets. 
 Section 4.14. Restriction of Sale-Leaseback Transaction. The Partnership will not, nor will it permit any Restricted
Subsidiary to, engage in a Sale-Leaseback Transaction, unless: 
 (a) the Sale-Leaseback Transaction occurs within one year
from the date of acquisition of the Principal Property subject thereto or the date of the completion of construction or commencement of full operations on such Principal Property, whichever is later; 
 (b) the Sale-Leaseback Transaction involves a lease for a period, including renewals, of not more than three years; 
 (c) the Partnership or such Restricted Subsidiary would be entitled under Section 4.13 to incur Debt secured by a Lien on the
Principal Property subject to the 

  

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Sale-Leaseback Transaction in a principal amount equal to or exceeding the net sale proceeds from such Sale-Leaseback Transaction without equally and ratably
securing the Debt Securities; or 
 (d) the Partnership or such Restricted Subsidiary, within a one-year period after such
Sale-Leaseback Transaction, applies or causes to be applied an amount not less than the net sale proceeds from such Sale-Leaseback Transaction to (1) the prepayment, repayment, redemption or retirement of any unsubordinated Funded Debt of the
Partnership or any Funded Debt of a Subsidiary of the Partnership, or (2) investment in another Principal Property. 
 Notwithstanding the foregoing provisions of this Section, the Partnership may, and may permit any Restricted Subsidiary to, effect any Sale-Leaseback Transaction that is not excepted by Clauses (a) through (d), inclusive, of this
Section, provided that the net sale proceeds from such Sale-Leaseback Transaction, together with the aggregate principal amount of then outstanding Debt (other than the Debt Securities) secured by Liens upon Principal Properties not excepted by
Clauses (a) through (j), inclusive, of Section 4.13, do not exceed at any one time 15% of Consolidated Net Tangible Assets. 
 Section 4.15. Compliance with and Modification of Organizational Documents. The Partnership shall comply with the terms and provisions of Sections 2.9, 7.9 and 12.9 of its Fourth Amended and Restated
Agreement of Limited Partnership, dated as of April 13, 2005, as amended by that certain First Amendment to the Fourth Amended and Restated Agreement of Limited Partnership, dated as of February 15, 2006, that certain Second Amendment to
the Fourth Amended and Restated Agreement of Limited Partnership, dated as of February 9, 2006, that certain Third Amendment to the Fourth Amended and Restated Agreement of Limited Partnership, dated as of July 27, 2007, and that certain
Fourth Amendment to the Fourth Amended and Restated Agreement of Limited Partnership, dated April 15, 2008 and effective as of January 1, 2007, and shall not amend, supplement or otherwise modify (pursuant to a waiver or otherwise) any of
such Sections in a manner materially adverse to the interests of the Holders of the Notes unless both (i) Magellan Midstream Holdings, L.P. no longer owns an interest in the General Partner, and (ii) the Partnership obtains a Ratings
Affirmation in connection with any such amendment, supplement, modification or failure to comply.” 
 (b)
Section 14.04 of the Original Indenture is hereby amended, but only in relation to the Notes, by substituting the words “Funded Debt of the Partnership” for the words “Debt of the Partnership” in paragraph (a) thereof.

 ARTICLE VI 
 ADDITIONAL EVENT OF DEFAULTS 
 Section 6.01 Events of Default. With respect to the Notes only, the
following additional Events of Default are hereby added to Section 6.01(h) of the Original Indenture: 
 “(h-1)
default by the Partnership or any of its Subsidiaries in the payment at the Stated Maturity, after the expiration of any applicable grace period, of principal of, 

  

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premium, if any, or interest on any Debt then outstanding having a principal amount in excess of $50.0 million or acceleration of any Debt having a principal
amount in excess of such amount so that it becomes due and payable prior to its Stated Maturity and such acceleration is not rescinded within 30 days after the date on which written notice specifying such default shall have been given to the
Partnership by the Trustee or to the Partnership and the Trustee by the Holders of at least 25% in aggregate principal amount of the Notes at the time Outstanding; 
 (h-2) a final judgment or order for the payment of money in excess of $50.0 million (net of applicable insurance coverage) having been
rendered against the Partnership or any Subsidiary and such judgment or order shall continue unsatisfied and unstayed for a period of 30 days; and 
 (h-3) the failure of the General Partner to comply with the terms and provisions of Sections 2.08 and 7.10(c) of its Second Amended and Restated Limited Liability Company Agreement, dated October 20, 2005, as
amended by that certain First Amendment to Second Amended and Restated Limited Liability Company Agreement, dated July 31, 2007, or the amendment, supplementation or other modification of (pursuant to a waiver or otherwise) either of such
Sections in a manner materially adverse to the interests of the Holders of the Notes unless both (i) Magellan Midstream Holdings, L.P. no longer owns an interest in the General Partner, and (ii) the Partnership obtains a Ratings
Affirmation in connection with any such amendment or modification or failure to comply.” 
 ARTICLE VII 
 MISCELLANEOUS 
 Section 7.01
Integral Part. This Second Supplemental Indenture constitutes an integral part of the Indenture. 
 Section 7.02
Adoption, Ratification and Confirmation. The Original Indenture, as supplemented and amended by this Second Supplemental Indenture, is in all respects hereby adopted, ratified and confirmed. 
 Section 7.03 Counterparts. This Second Supplemental Indenture may be executed in any number of counterparts, each of which when so
executed shall be deemed an original; and all such counterparts shall together constitute but one and the same instrument. 
 Section 7.04 Governing Law. THIS SECOND SUPPLEMENTAL INDENTURE AND THE NOTES SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK. 
 Section 7.05 Trustee Makes No Representation. The Trustee makes no representation as to the validity or sufficiency of this Second
Supplemental Indenture. 
 [Signatures on following page] 
  

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 SIGNATURES 
  

			
	ISSUER:
	
	MAGELLAN MIDSTREAM PARTNERS, L.P.
		
	By:	 	Magellan GP, LLC, its General Partner
		
	By:	 	 /s/ John D. Chandler

	Name:	 	John D. Chandler
	Title:	 	 Chief Financial Officer and
 Treasurer

	
	TRUSTEE:
	
	U.S. BANK NATIONAL ASSOCIATION,
	as Trustee
		
	By:	 	 /s/ George Hogan

	Name:	 	George Hogan
	Title:	 	Vice President

 Signature Page to Second Supplemental Indenture 

 EXHIBIT A 
 (Form of Face of Note) 
 No.
                    
 CUSIP 559080AD8

 $                     
 ISIN US559080AD86 
 MAGELLAN MIDSTREAM
PARTNERS, L.P. 
 6.400% Senior Note due 2018 
 Magellan Midstream Partners, L.P., a Delaware limited partnership, promises to pay to
                            , or registered assigns, the principal sum of
                     Dollars [or such greater or lesser amount as may be endorsed on the Schedule attached hereto]1 on July 15, 2018. 
  

			
	Interest Payment Dates:	  	January 15 and July 15
	Record Dates:	  	January 1 and July 1

  

			
	MAGELLAN MIDSTREAM PARTNERS, L.P.
		
	By:	 	Magellan GP, LLC, its General Partner
		
	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
		
	Dated:	 	  

  

	 1
	 To be included only if the Note is issued in global form. 

  

 Exhibit A-1 

 (Form of Back of Note) 
 6.400% Senior Note due 2018 
 [UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), NEW YORK, NEW YORK, TO THE 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 IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO., OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR
OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL 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.]2 
 Capitalized terms used herein shall have the meanings assigned to them in the Indenture referred to below unless otherwise indicated. 
 1. Interest. Magellan Midstream Partners, L.P., a Delaware limited partnership (the “Partnership” or the “Issuer”), promises to pay interest on the principal amount of this Note at
6.400% per annum from July 14, 2008 until maturity. The Issuer shall pay interest semi-annually on January 15 and July 15 of each such year, or if any such day is not a Business Day, on the next succeeding Business Day (each an
“Interest Payment Date”). Interest on the Notes shall accrue from the most recent date to which interest has been paid or, if no interest has been paid, from the date of issuance; provided that if there is no existing Default
in the payment of interest, and if this Note is authenticated between a record date referred to on the face hereof and the next succeeding Interest Payment Date, interest shall accrue from such next succeeding Interest Payment Date; provided,
further, that the first Interest Payment Date shall be January 15, 2009. The Issuer shall pay interest (including post-petition interest in any proceeding under any Bankruptcy Law) on overdue principal and premium, if any, from time to time on
demand at the same rate; and it shall pay interest (including post-petition interest in any proceeding under any Bankruptcy Law) on overdue installments of interest (without regard to any applicable grace periods) from time to time on demand at the
same rate to the extent lawful. Interest shall be computed on the basis of a 360-day year of twelve 30-day months. 
 2. Method of
Payment. The Issuer shall pay interest on the Notes (except Defaulted Interest) to the Persons who are registered Holders of Notes at the close of business on the 
  

	2	To be included only if the Note is issued in global form. 

  

 Exhibit A-2 

 
January 1 or July 1 next preceding the Interest Payment Date, even if such Notes are canceled after such record date and on or before such Interest
Payment Date, except as provided in Section 2.17 of the Original Indenture with respect to Defaulted Interest, and the Issuer shall pay principal (and premium, if any) of the Notes upon surrender thereof to the Trustee or a paying agent on or
after the Stated Maturity thereof. The Notes shall be payable as to principal, premium, if any, and interest at the office or agency of the Trustee maintained for such purpose in New York, New York (which initially is 767 Third Avenue, 31st Floor,
New York, New York 10017 c/o Law Debenture Corporate Trust Services), or, at the option of the Issuer, payment of interest may be made by check mailed to the Holders at their addresses set forth in the Debt Security Register, and provided that
payment by wire transfer of immediately available funds shall be required with respect to principal of, and interest and premium, if any, on, (a) each Global Security and (b) all other Notes aggregating at least $1,000,000 in principal
amount the Holder of which shall have provided wire transfer instructions to the Issuer or the paying agent on or prior to the applicable record date. Such payment shall be in such coin or currency of the United States of America as at the time of
payment is legal tender for payment of public and private debts. 
 3. Paying Agent and Registrar. Initially, U.S. Bank National
Association, the Trustee under the Indenture, shall act as paying agent and Registrar. The Issuer may change any paying agent or Registrar without notice to any Holder. The Partnership may act in any such capacity. 
 4. Indenture. The Issuer issued the Notes under an Indenture dated as of April 19, 2007 (the “Original Indenture”),
as supplemented by the Second Supplemental Indenture, dated as of July 14, 2008 (the “Second Supplemental Indenture,” and, together with the Original Indenture, the “Indenture”) between the Issuer
and the Trustee. The terms of the Notes include those stated in the Indenture and those made part of the Indenture by reference to the Trust Indenture Act of 1939, as amended (15 U.S. Code §§ 77aaa-77bbbb). The Notes are subject to all
such terms, and Holders are referred to the Indenture and such Act for a statement of such terms. To the extent any provision of this Note conflicts with the express provisions of the Indenture, the provisions of the Indenture shall govern and be
controlling. The Notes are the obligation of the Issuer, initially in aggregate principal amount of $250 million. The Issuer may issue an unlimited aggregate principal amount of Additional Notes under the Indenture. Any such Additional Notes that
are actually issued shall be treated as issued and outstanding Notes (and as the same series (with identical terms other than with respect to the issue date, issue price and first payment of interest) as the initial Notes for the purposes indicated
in Section 3.02 of the Second Supplemental Indenture). Initially, the Notes are not guaranteed, but in the future they may be guaranteed by one or more Subsidiary Guarantors on the conditions and subject to the terms provided in
Section 4.12 and Article XIV of the Indenture. 
 5. Optional Redemption. (a) At its option, the Issuer may choose to redeem
all or any portion of the Notes, at once or from time to time. 
 (b) To redeem the Notes, the Issuer must pay a redemption price equal to
the greater of (i) 100% of the principal amount of the Notes to be redeemed and (ii) the sum of the present values of the remaining scheduled payments of principal and interest on the Notes to be redeemed (exclusive of interest accrued to
the Redemption Date) discounted to the Redemption 

  

 Exhibit A-3 

 
Date on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the Treasury Rate (as defined below) plus 40 basis points, plus,
in either case, accrued and unpaid interest, if any, to the Redemption Date (subject to the right of Holders on the relevant record date to receive interest due on the relevant Interest Payment Date). 
 For purposes of determining the redemption price, the following definitions shall apply: 
 “Comparable Treasury Issue” means the United States Treasury security or securities selected by the Independent Investment Banker
as having an actual or interpolated 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 a comparable maturity to the remaining term of the Notes to be redeemed. 
 “Comparable Treasury Price”
means, for any Redemption Date, (1) the average of four Reference Treasury Dealer Quotations for such Redemption Date, after excluding the highest and lowest such Reference Treasury Dealer Quotations, or (2) if the Independent Investment
Banker obtains fewer than four such Reference Treasury Dealer Quotations, the average of all such quotations. 
 “Independent
Investment Banker” means Wachovia Capital Markets, LLC or Banc of America Securities LLC, or any of their respective successor firms, or if such firm is unwilling or unable to select the Comparable Treasury Issue, an independent
investment banking institution of national standing appointed by the Trustee after consultation with the Partnership. 
 “Reference Treasury Dealer” means each of Wachovia Capital Markets, LLC and Banc of America Securities LLC, plus two other primary U.S. government securities dealers (in each case, or its affiliates and successors)
selected by the Trustee, provided that if any of the Reference Treasury Dealers resigns, its successor dealer shall be a primary U.S. government securities dealer selected by the Trustee. 
 “Reference Treasury Dealer Quotations” means, for each Reference Treasury Dealer and any Redemption Date, the average, as
determined by the Trustee, of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount) quoted in writing to the Trustee by such Reference Treasury Dealer at 3:30 p.m., New York City
time, on the third Business Day preceding such Redemption Date. 
 “Treasury Rate” means, with respect to any
Redemption Date, (1) 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 (if no maturity is within three months before or after the remaining term of the Notes to be redeemed, yields for the two published maturities most closely corresponding to the
Comparable Treasury Issue shall be determined and the Treasury Rate shall be interpolated or extrapolated from such yields on a straight line basis, rounding to the nearest 

  

 Exhibit A-4 

 
month) or (2) if such release (or any successor release) is not published during the week in which the calculation date falls (or in the immediately
preceding week if the calculation date falls on any day prior to the usual publication date for such release) or does not contain such yields, the rate per year equal to the semi-annual equivalent yield to maturity of the Comparable Treasury Issue,
calculated using a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the Comparable Treasury Price for such Redemption Date. The Treasury Rate shall be calculated on the third Business Day preceding
the Redemption Date. Any weekly average yields calculated by interpolation or extrapolation will be rounded to the nearest 1/100th of 1%, with any figure of 1/200th of 1% or above being rounded upward. 
 6. Mandatory Redemption. The Issuer shall not be required to make mandatory redemption or sinking fund payments with respect to the Notes or to
repurchase them at the option of the Holders. 
 7. Notice of Redemption. Notice of redemption shall be mailed by first class mail at
least 30 days but not more than 60 days before the Redemption Date to each Holder whose Notes are to be redeemed at its registered address. Notes in denominations larger than $1,000 may be redeemed in part but only in whole multiples of $1,000,
unless all of the Notes held by a Holder are to be redeemed. On and after the Redemption Date interest shall cease to accrue on Notes or portions thereof called for redemption and with respect to which the redemption price has been paid. 

8. Denominations, Transfer, Exchange. The Notes are in registered form without coupons in denominations of $1,000 and integral multiples of
$1,000. The transfer of Notes may be registered and Notes may be exchanged as provided in the Indenture. The Registrar and the Trustee may require a Holder, among other things, to furnish appropriate endorsements and transfer documents, and the
Issuer may require a Holder to pay any taxes or other governmental charges imposed in relation thereto. 
 9. Persons Deemed Owners.
The registered Holder of a Note shall be treated as its owner for all purposes. 
 10. Amendment, Supplement and Waiver. Subject to
certain exceptions, the Indenture may be amended or supplemented with the consent of the Holders of not less than a majority in aggregate principal amount of the then Outstanding Notes, and any existing default or compliance with any provision of
the Indenture relating to the Notes may be waived with the consent of the Holders of not less than a majority in aggregate principal amount of the then Outstanding Notes. Without the consent of any Holder of a Note, the Indenture may be amended or
supplemented for any of the purposes set forth in Section 9.01 of the Indenture, including to provide for the assumption of the Issuer’s obligations to Holders of the Notes in case of a merger or consolidation of the Issuer or sale of all
or substantially all of the Issuer’s assets, to add to the covenants of the Issuer or any Subsidiary Guarantor, to cure any ambiguity or omission or to correct any defect or inconsistency, to permit the qualification of the Indenture under the
TIA, to add or release Subsidiary Guarantors pursuant to the terms of the Indenture, to make any change that does not adversely affect the rights under the Indenture of any Holder of the Notes, to add to, change or eliminate any of the provisions of
the Indenture in respect of one or more series of Debt Securities in certain circumstances, to evidence or provide for the acceptance of appointment under the Indenture of a successor or separate Trustee or to establish the form or terms of any
other series of Debt Securities. 
  

 Exhibit A-5 

 11. Defaults and Remedies. Events of Default with respect to the Notes include: (i) default
for 30 days in the payment when due of interest on the Notes; (ii) default in payment when due of principal of or premium, if any, on the Notes when due at Stated Maturity, upon redemption or otherwise, (iii) failure by the Partnership or
any Subsidiary Guarantor to comply for 60 days after notice with any of its other covenants or agreements in the Indenture relating to the Notes; (iv) certain events of bankruptcy, insolvency or reorganization with respect to the Issuer or, if
and so long as the Notes are guaranteed by a Subsidiary Guarantor, such Subsidiary Guarantor; (v) any Guarantee ceasing to be in full force and effect or held in any judicial proceeding to be null and void, or any Subsidiary Guarantor denying
or disaffirming its obligations under the Indenture or its Guarantee; (vi) default by the Partnership or any of its Subsidiaries in the payment at the Stated Maturity, after the expiration of any applicable grace period, of principal of,
premium, if any, or interest on any Debt then outstanding having a principal amount in excess of $50.0 million, or acceleration of any Debt having a principal amount in excess of such amount so that it becomes due and payable prior to its Stated
Maturity and such acceleration is not rescinded within 30 days after notice; (vii) a final judgment or order for the payment of money in excess of $50.0 million (net of applicable insurance coverage) having been rendered against the Partnership
or any Subsidiary and such judgment or order continues unsatisfied and unstayed for a period of 30 days and (viii) the failure of the General Partner to comply with certain separateness and bankruptcy related provisions of its limited liability
company agreement or the amendment or modification of such provisions. If any Event of Default occurs and is continuing, the Trustee or the Holders of at least 25% in aggregate principal amount of the then Outstanding Notes may declare all the Notes
to be due and payable. Notwithstanding the foregoing, in the case of an Event of Default arising from certain events of bankruptcy or insolvency, all Outstanding Notes shall become due and payable without further action or notice. Holders may not
enforce the Indenture or the Notes except as provided in the Indenture. Subject to certain limitations, Holders of not less than a majority in aggregate principal amount of the then Outstanding Notes may direct the Trustee in its exercise of any
trust or power. The Trustee may withhold from Holders of the Notes notice of any continuing Default (except a Default relating to the payment of principal, premium, if any, or interest) if the Trustee determines in good faith that withholding notice
is in the Holders’ interests. The Holders of not less than a majority in aggregate principal amount of the Notes then Outstanding by notice to the Trustee may on behalf of the Holders of all of the Notes waive any past Default or Event of
Default and its consequences under the Indenture except a Default or Event of Default in the payment of interest on, the principal of, or premium, if any, on, the Notes or an Event of Default relating to a provision of the Indenture that cannot be
amended without the consent of each Holder affected thereby. The Partnership is required to deliver to the Trustee annually a statement regarding compliance with the Indenture, and the Partnership is required within 30 days after the occurrence of
any Default or Event of Default, to deliver to the Trustee a statement specifying such Default or Event of Default and certain additional information. 
 12. Trustee Dealings with Issuer. The Trustee, in its individual or any other capacity, may make loans to, accept deposits from, and perform services for the Issuer or its Affiliates, and may otherwise deal
with the Issuer or its Affiliates, as if it were not the Trustee. 
  

 Exhibit A-6 

 13. Authentication. This Note shall not be valid until authenticated by the manual signature of
the Trustee or an authenticating agent. 
 14. Abbreviations. Customary abbreviations may be used in the name of a Holder or an
assignee, such as: TEN COM (= tenants in common), TEN ENT (= tenants by the entireties), JT TEN (= joint tenants with right of survivorship and not as tenants in common), CUST (= Custodian), and U/G/M/A (= Uniform Gifts to Minors Act). 

15. CUSIP and ISIN Numbers. Pursuant to a recommendation promulgated by the Committee on Uniform Security Identification Procedures, the Issuer
has caused CUSIP and corresponding ISIN numbers to be printed on the Notes, and the Trustee may use CUSIP and corresponding ISIN numbers in notices of redemption as a convenience to Holders. No representation is made as to the accuracy of such
numbers either as printed on the Notes or as contained in any notice of redemption and reliance may be placed only on the other identification numbers placed thereon. 
 The Issuer shall furnish to any Holder upon written request and without charge a copy of the Indenture. Requests may be made to: 
 Magellan Midstream Partners, L.P. 
 P.O. Box 22186 
 Tulsa, Oklahoma 74121-2186 
 Attention:
General Counsel 
  

 Exhibit A-7 

 Assignment Form 
 To assign this Note, fill in the form below: (I) or (we) assign and transfer this Note to 
  
  
 (Insert assignee’s soc. sec. or tax I.D. no.)

  
  
  
  
  
  
 (Print or type assignee’s name, address and
zip code) 
 and irrevocably appoint 
  
  
 agent to transfer this Note on the books of the Issuer. The
agent may substitute another to act for him. 
  

			
	Date:	 	  

  

			
		
	Your Signature:	 	 
	
	(Sign exactly as your name appears on the face of this Note)

  

			
	 Signature Guarantee:
	  	  

		
		  	(Signature must be guaranteed by a financial institution that is a member of the Securities Transfer Agent Medallion Program (“STAMP”), the Stock Exchange Medallion
Program (“SEMP”), the New York Stock Exchange, Inc. Medallion Signature Program (“MSP”) or such other signature guarantee program as may be determined by the Registrar in addition to, or in
substitution for, STAMP, SEMP or MSP, all in accordance with the Securities Exchange Act of 1934, as amended.)

  

 Exhibit A-8 

 SCHEDULE OF INCREASES OR DECREASES IN THE GLOBAL
NOTE3 
 The original principal
amount of this Global Note is $250,000,000. The following increases or decreases in this Global Note have been made: 
  

									
	 Date of
 Exchange
	  	 Amount of decrease
 in
 Principal
Amount
	  	 Amount of increase
 in
 Principal
Amount
	  	 Principal Amount of
 this Global Note
 following such

 decrease
	  	 Signature of authorized signatory of
Trustee or
Note Custodian

		  		  		  		  	
		  		  		  		  	
		  		  		  		  	

  

	 3
	 To be included only if the Note is issued in global form. 

  

 Exhibit A-9 

 EXHIBIT B 
 FORM OF SUPPLEMENTAL INDENTURE 
 SUPPLEMENTAL INDENTURE (this “Supplemental
Indenture”), dated as of                             , among Magellan Midstream Partners,
L.P., a Delaware limited partnership (the “Partnership” or the “Issuer”),
                                     (the
“Subsidiary Guarantor”), a direct or indirect subsidiary of the Partnership, and U.S. Bank National Association, as trustee under the indenture referred to below (the “Trustee”), 
 W I T N E S S E T H: 
 WHEREAS, the
Issuer has heretofore executed and delivered to the Trustee an indenture (the “Original Indenture”), dated as of April 19, 2007, as supplemented by the Second Supplemental Indenture (the “Second Supplemental
Indenture” and, together with the Original Indenture, the “Indenture”) dated as of July 14, 2008, between the Issuer and the Trustee, providing for the issuance of the Issuer’s 6.400% Senior Notes due
2018 (the “Notes”); 
 WHEREAS, Section 4.12 of the Indenture provides that under certain circumstances the
Partnership is required to cause the Subsidiary Guarantor to execute and deliver to the Trustee a supplemental indenture pursuant to which the Subsidiary Guarantor shall unconditionally guarantee all of the Issuer’s obligations under the Notes
pursuant to a Guarantee on the terms and conditions set forth herein; and 
 WHEREAS, pursuant to Section 9.01(g) of the Original
Indenture, the Issuer, the Subsidiary Guarantor and the Trustee are authorized to execute and deliver this Supplemental Indenture; 
 NOW,
THEREFORE, in consideration of the foregoing and for other good and valuable consideration, the receipt of which is hereby acknowledged, the Issuer, the Subsidiary Guarantor and the Trustee mutually covenant and agree for the equal and ratable
benefit of the holders of the Notes as follows: 
 1. Definitions. (a) Capitalized terms used herein without definition shall have the
meanings assigned to them in the Indenture. 
 (b) For all purposes of this Supplemental Indenture, except as otherwise herein expressly
provided or unless the context otherwise requires: (i) the terms and expressions used herein shall have the same meanings as corresponding terms and expressions used in the Indenture; and (ii) the words “herein,”
“hereof” and “hereby” and other words of similar import used in this Supplemental Indenture refer to this Supplemental Indenture as a whole and not to any particular section hereof. 
 2. Agreement to Guarantee. The Subsidiary Guarantor hereby agrees, jointly and severally with any other Subsidiary Guarantors under the Indenture, to
guarantee the Issuer’s obligations under the Notes and all other amounts due and payable under the Indenture on the 

  

 Exhibit B-1 

 
terms and subject to the conditions set forth in Article XIV of the Original Indenture and to be bound by all other applicable provisions of the Indenture.
To further evidence the Guarantee set forth in Section 14.01 of the Original Indenture, the Subsidiary Guarantor is executing a notation relating to such Guarantee, substantially in the form attached to the Original Indenture as Annex A. Except
as expressly amended hereby, the Indenture is in all respects ratified and confirmed and all the terms, conditions and provisions thereof shall remain in full force and effect. This Supplemental Indenture shall form a part of the Indenture for all
purposes, and every holder of Notes heretofore or hereafter authenticated and delivered shall be bound hereby. 
 3. GOVERNING LAW.
THIS SUPPLEMENTAL INDENTURE SHALL BE DEEMED TO BE A NEW YORK CONTRACT, AND FOR ALL PURPOSES SHALL BE CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK. 
 4. Trustee Makes No Representation. The Trustee makes no representation as to the validity or sufficiency of this Supplemental Indenture. 
 5. Counterparts. The parties may sign any number of copies of this Supplemental Indenture. Each signed copy shall be an original, but all of them
together represent the same agreement. 
 6. Effect of Headings. The Section headings herein are for convenience only and shall not
effect the construction thereof. 
 IN WITNESS WHEREOF, the parties hereto have caused this Supplemental Indenture to be duly executed as of
the date first above written. 
  

			
	ISSUER:
	
	MAGELLAN MIDSTREAM PARTNERS, L.P.
		
	By:	 	Magellan GP, LLC, its General Partner
		
	By:	 	  

	Name:	 	  

	Title:	 	  

	
	[SUBSIDIARY GUARANTOR]
		
	By:	 	  

	Name:	 	  

	Title:	 	  

  

 Exhibit B-2 

			
	 U.S. BANK NATIONAL ASSOCIATION,
 as
Trustee

		
	By:	 	  

	Name:	 	  

	Title:	 	  

  

 Exhibit B-3Kewaunee Scientific Corporation Fiscal Year 2009 Incentive Bonus Plan

 Exhibit 10.1 
 KEWAUNEE SCIENTIFIC CORPORATION 
 FISCAL YEAR 2009 
 INCENTIVE BONUS PLAN 
 The Fiscal Year 2009 Incentive
Bonus Plan (the Plan) will provide for a bonus pool and bonus payouts based upon achievement of various levels of pre-tax earnings (after bonus accruals) for the year and other conditions described herein, as approved by the Company’s Board of
Directors. The Plan is proposed as a one-year plan for Fiscal Year 2009. 
 The provisions of the Plan are: 
  

	1.	Eligibility of Participants to Share in the Bonus Pool 

  

	 	a.	Eligible participants of the Plan will be nominated by the President and approved by the Board of Directors, upon recommendation by the Compensation Committee. The bonus potential
percentages for each participant in the Plan will also be approved by the Board of Directors, upon recommendation by the Compensation Committee. 

  

	 	b.	Each participant will be eligible to share in the pool up to the specified percentage of his or her fiscal year 2009 base salary. 

  

	 	c.	In addition to individuals reporting directly to the President, managers fulfilling the following criteria are eligible to participate in the Plan: 

  

	 	1.	Salary Grade 14 or above; 

  

	 	2.	Seniority of one year or more; 

  

	 	3.	Is not currently in another incentive plan (e.g., sales plan); 

  

	 	4.	Is a direct report to a direct report to the President; or 

  

	 	5.	Is a manager recommended by the President. 

  

	 	d.	Participants in the Plan and their applicable bonus potential percentages are shown on attached Charts IV-VII. 

  

	2.	Building of a Bonus Pool 

  

	 	a.	Operational Units  

  

	 	•	 	 The operational units (Statesville Operations, Technical Furniture, and International Operations) will start to accrue pools for potential bonus payouts once
pre-tax operating earnings of each operational unit reach the amounts shown as Start Point on Chart I, and maximum incentive bonus payouts will be accrued and available for payout based upon the guidelines shown on that schedule.

	 	b.	Corporate Pool 

  

	 	•	 	 A pool will start accumulating once pre-tax earnings reach the amounts shown as Start Point on Chart I, and maximum bonus payouts will be accrued and available for
payout based upon the guidelines shown on that schedule. 

  

	3.	Bonus Payout Conditions 

  

	 	a.	If the Company achieves pre-tax earnings less than the amounts shown as Start Point on Chart I, no awards will be paid to any corporate employee with that goal, except at the
discretion of the Board of Directors, upon recommendation by the Compensation Committee. 

  

	 	b.	If an operational unit achieves pre-tax earnings less than the amounts shown for it as Start Point on Chart I, no awards will be paid to its employees except at the discretion of
the Board of Directors, upon recommendation by the Compensation Committee. 

  

	 	c.	All participants will earn their awards dependent on their operational unit’s performance and their individual MBO performance. 

  

	 	d.	Beginning with the achievement of Start Point, the bonus potential percentage for each participant is linear between each goal with the corresponding increase in pre-tax earnings,
up to the individual’s maximum bonus potential percentage. 

  

	 	e.	Positive or negative financial adjustments outside the control of management (such as, but not limited to, proceeds from insurance claims, gains or losses from the sale of capital
assets, adoption of new generally accepted accounting pronouncements, etc.) will be assessed by the Board of Directors and the pre-tax earnings under the Plan may be adjusted for these items. 

  

	 	f.	Any portion of the bonus pool not awarded to participants will be retained by the Company. 

  

	 	g.	If a participant transfers between performance entities during the year, his or her incentive compensation will be based on the performance of the respective entities on a pro rata
basis from his or her transfer date as determined by the President. 

  

	 	h.	A participant must be an employee of the Company on the last day of the plan year (April 30) to be eligible to receive a bonus. In unusual circumstances, however, the Board of
Directors, upon recommendation by the Compensation Committee, may grant a discretionary bonus. 

  

	 	i.	The Board of Directors, upon recommendation by the Compensation Committee, may approve the pro rata participation of a participant who joins the Company or who is appointed to a key
position within the Company after the outset of the Plan year, with a pro rata increase in the bonus pool. 

  

	4.	Participant’s Bonus Potential 

 Each
participant’s bonus potential will be comprised of the following: 
  

	 	a.	A Fixed Bonus equal to 75% of each participant’s bonus potential will be based on achievement of corporate or divisional pre-tax earnings goals, as set forth in the Plan, and

	 	b.	A Discretionary Bonus up to the remaining 25% of each participant’s bonus potential will be calculated, taking into account the participant’s MBO achievements and other
relevant factors during the year. The discretionary portion of each participant’s bonus will take into account the participant’s achievement of management goals established, and weighted, in May 2008, and approved by the President. The
degree of achievement of these goals will be recommended by each participant’s manager immediately subsequent to April 30, 2009, and the discretionary bonus, if any, will then be determined and awarded at the discretion of the Board of
Directors, upon recommendation by the President and the Compensation Committee. 

  

	5.	The Plan may be amended at any time by the Board of Directors. 

  

	6.	Upon occurrence of a Change of Control, as such term is defined in the Company’s 2000 Key Employee Stock Option Plan, the Fiscal Year 2009 Incentive Bonus Plan will terminate
as of that date, and the performance bonus for each participant under such plan is calculated giving consideration to the level of year-to-date pretax earnings for the operational unit through the most recent month-end as compared to the operations
pretax earnings goals through the most recent month-end, with such bonus amount prorated based on the percentage of the performance period passed before the Change of Control and after giving consideration of each participant’s performance of
their individual MBOs as described in the Plan. The year-to-date pretax earnings shall exclude the positive or negative impact of any financial adjustments related to the Change of Control. A participant must be an employee of the Company as of the
date of the Change of Control, but need not be an employee of the Company on the last day of the Plan Year (April 30).

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